Navigating the Changing Landscape of Multifamily Property Ownership: Insights from Mike Brennan
As multifamily property owners, we’ve all felt the weight of increasing regulations, rent control laws, and tenant protections that have changed the way we operate. In a recent interview on The Apartment Dealer Show, I had the privilege of sitting down with Mike Brennan, a leading eviction attorney in Southern California, to discuss the current state of tenant-landlord law and the evolving challenges multifamily investors face today.
The Shifting Legal Landscape for Landlords
Owning multifamily properties has never been more complex. What used to be a relatively straightforward investment has now become a legal maze, where failing to stay updated on local laws could cost you both time and money. Mike emphasized that today’s landlords need to be more intentional than ever in managing their properties, especially with city-specific ordinances continually evolving. For instance, in Los Angeles County, the introduction of “right to counsel” means that low-income tenants now have a right to a free attorney in eviction cases. This has extended eviction timelines and increased costs for landlords, turning what used to be a routine process into a drawn-out battle.
Mike also pointed out that across California, cities are stepping in with layers of tenant protections that most landlords aren’t even aware of. Rent control, just cause ordinances, and local laws are putting immense pressure on multifamily property owners, not only in terms of compliance but also profitability. As landlords, it’s no longer just about collecting rent. The landscape is shifting in favor of tenant rights, and with that comes the need for greater due diligence and understanding of the specific ordinances affecting your property.
Why Due Diligence is Critical
One of the key takeaways from my conversation with Mike was the importance of doing your homework. It’s not enough to be a passive investor anymore. Today’s multifamily owners need to be deeply familiar with the ordinances and legal requirements that apply to their properties, whether it’s a local rent control law or specific tenant protections. For example, many cities now have requirements that landlords must send copies of any notice served to tenants to the city, or else face serious consequences in eviction cases.
Mike shared a real-world example where a landlord in Montebello, a city without a traditional just cause ordinance, ran into legal trouble because of an “urgency ordinance.” The ordinance required landlords to notify the city of any eviction notices served, and failure to do so resulted in the dismissal of the eviction case. This underscores the critical need for landlords to stay informed about local laws, no matter how small or obscure the city may seem.
Staying Ahead of the Curve
So, what can landlords do to protect themselves? According to Mike, the first step is to review your lease agreements. A common mistake is having uncapped attorney’s fees provisions, which can leave you vulnerable to high legal costs if a tenant’s attorney decides to take advantage. By capping attorney’s fees in your lease, you can reduce your exposure to excessive legal expenses. Additionally, landlords must understand the ordinances specific to their properties, regularly update their knowledge of local laws, and ensure they’re in strict compliance. Failure to do so can lead to costly legal battles that could have been avoided.
Another important piece of advice is to be proactive in managing your properties. This means regularly attending city council meetings, staying up to date on local legislation, and engaging with legal professionals who can help you navigate the complexities of today’s multifamily market. Mike’s closing thoughts were clear: property ownership isn’t what it used to be, and landlords who want to succeed must take an active, informed approach.
Conclusion
Owning and managing multifamily properties in today’s environment is no small feat. With increased tenant protections, rent control laws, and the ever-present threat of costly legal battles, landlords must be intentional, proactive, and informed. Whether it’s reviewing leases, understanding local ordinances, or simply staying engaged in the legal process, there are steps you can take to protect your investments.
If you’re feeling overwhelmed by the changes in tenant-landlord law or unsure of how to navigate this complex environment, you’re not alone. This is a time to build a solid team of professionals around you—whether it’s an experienced real estate attorney like Mike Brennan or other industry experts—to ensure your business continues to thrive despite the challenges.
For more insights and tips on navigating the multifamily market, be sure to check out The Apartment Dealer Show. Stay informed, stay proactive, and protect your investments in this ever-changing landscape.
Contact:
Mike Brennan
Brennan Law Firm
626.294.0500
https://mbrennanlaw.com/