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I am a senior citizen housing provider (7 unit North Park) in San Diego, California. I am getting out of the business with a P/S Agreement set to close August 30. My purchaser is planning to add additional units by either adding units (he is also purchasing the next door single family) or by scraping and building new. Either way, more units will be created in a City in desperate need of more housing. My goal in my 20 years of being a housing provider was to provide somewhat below market rental opportunity to a very select clientele: The young (generally), employed with excellent credit but without the financial resources to as yet, purchase. Many of my tenants have used my property as a springboard to ownership. I recognize this is a niche and that there are many that would not qualify using my strict credit criteria. It is however, a niche that needs to be serviced for a vibrant economy. My housing was built in 1929 and I have endeavored, with every vacancy to make the property the best it could be within the constraints of its age and space limitations. My business model is being challenged by insurance (insurer is moving out of California) regulations and tenant protections. If I cannot evict a bad tenant, all tenants suffer. As an example: I rented to a young woman who met all my Criteria. Turns out she had just recently become addicted to heroin thanks to a boyfriend whom she also moved in contrary to the lease. Her father came from the east coast to rescue her but left the boyfriend in place. It took 4 month and high cost (and no rent) to get rid of him. Meanwhile, the other tenants were subject to daily and nightly traffic from undesirables dealing in drugs. It is purely unacceptable to make it so hard to evict.
By making it so hard for “mom and pop” operations to carry out this business efficiently, you will see more and more properties “going corporate”. This will increase rents and eliminate affordable housing stock. Please don’t do this as it is not in the interest of tenants or anyone else. Work to keep “mom and pop” operations in place so they can continue to provide affordable housing.