State Rent Control: The New State Law that can have an impact on rental properties ranging from Single Family Residences and Condominiums through multi-unit apartment buildings.
Rent Control- A New State Law
In California, rent control has been a local jurisdiction issue, typically approved by a city’s or county’s voters. There is a state-wide rent control ordinance enacted in 2020 that covers all jurisdictions not currently affected by local rent control and also impacts those jurisdictions with existing rent control ordinances. This is a significant change that has a direct impact on the evaluation and analysis of residential (one-unit and multi-unit) rental properties. Denis DeSaix, MAI, SRA, will provide an overview of the new law and the potential impact it will have in appraising residential rental properties. Points of discussion will include:
- An overview of the new regulations
- What’s exempt and what’s not
- How a market with existing rent control can be affected
- Valuing a rent-controlled property
- Analyzing Physical Characteristics vs. Economic Characteristics
- Understand the relationship between GRMs/Cap Rates and Market or Below Market Rents
- 1-4 unit appraisal impact of rent control- it does matter!
Whether you are a commercial or residential appraiser, the new rent control laws will affect your appraisal analysis if the property is an apartment building, a 2-4 residential income property, and possibly a SFR or Condominium rental property. Come join us for this informative presentation and be prepared as this new law takes effect.
Our instructor is Denis DeSaix, MAI, SRA. Denis has over 25 years of appraisal experience and is a Principal and Chief Appraiser at Metrocal Appraisal located in the San Francisco Bay Area. Valuation services include commercial and residential property appraisals, consulting and expert witness services. Denis is also a contract commercial and residential reviewer for several community banks. Denis DeSaix holds the MAI and SRA designations awarded by the Appraisal Institute. He has been published in Appraisal Today magazine and quoted by the San Francisco Chronical and Valuation Magazine. Denis is a past President of the East Bay Chapter of the Real Estate Appraiser Association and an active CE instructor for that organization. He co-authored a study funded by PG&E and sponsored by Built It Green on the value impact of green certified homes and the valuation challenges such properties present. Denis develops and teaches appraisal continuing education classes, and is proud to have served as a United States Marine.
This class is approved for two hours of remote continuing education by the California Bureau of Real Estate Appraisers (approval# 19CP986603109) under emergency Covid-19 permission.
Cost of the class is $20 for members and $30 for non-members. You must have a free account on the REAA website to receiving continuing education credit.
Click here if you need instructions creating a free REAA website account.
Registration closes on Monday, August 24 at 5PM.
Attendance will be capped at 100. First come, first served.
To receive CE credit, BREA is requiring that attendees provide photographic evidence of taking the class confirming their identification. You need to email a selfie with your driver's license visible to REAASacramento@gmail.com. During class, you will be required to respond to questions periodically in Zoom. These steps are requried to meet the emgergency BREA guidelines granting continuing education credit. You are welcome to attend the class and not receive CE.
You will receive a link to the class materials the day before class starts. This class is a joint effort by the Central Valley, East Bay, and Sacramento REAA chapters.