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Question:

I have obtained a duplex through a foreclosure proceeding. The property is located in Los Angeles and would be subject to rent control. The tenants are paying very low rent. Since I took ownership through a foreclosure, am I subject to rent control limitations? I would like to raise the rent to market level.

Answer:

Unfortunately the tenants are protected under rent control. You can only raise the rent in accordance with rent ordinance. I have seen cases where an owner, who is going through foreclosure, purposefully make a “sweetheart” deal with a tenant. If you are buying a foreclosure in a rent control area, you should be very cautious.

Author
~Dennis Block: Source

This entry was posted on Monday, May 19th, 2008 at 12:26 pm and is filed under Questions & Answers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.