It's been almost a year since you posted for advice on how to increase your rent if you bought the property. I'd love to hear how it all worked out in the end. Would you care to share your story with us? We learn everyday...
You have to be careful when it comes to income property in Hollywood because it falls in the city of Los Angeles and you might be dealing with rent control. Keith gave an excellent answer. Ideally you'll want to work with an agent who knows the rent control ordinances, and the area. I sell a TON of income property in Hollywood and I can help you with the intricacies of buying in this area. Call me anytime!
Keller Williams Realty
Wow, you've got some interesting answers. You should do your own research or talk with an agent that has worked in income property in Los Angeles.
Here are the facts:
The city of Los Angeles has a rent control ordinance (see link).
I called the RSO office, and Hollywood IS part of the City of Los Angeles (West Hollywood is a separate city), so you are looking at the potential for rent control.
The ordinance applies to only properties of a specific age
To be subject to the RSO of the City of Los Angeles, a property must meet the following three criteria:
1. The property must be within the City of Los Angeles; and
2. There must be two or more units on the lot; and
3. The building must have a Certificate of Occupancy issued on or before October 1, 1978. (In the case of mobile homes and mobile home pads, the park must have been issued a permit to operate before February 10, 1986).
In order to raise rents above the permitted rate there are very strict regulations, which basically prohibit you from evicting tenants solely to increase rent rates.
Another way to say this is that if the building was built before 1978 the rents WILL be under market, by definition, and there is absolutely nothing you can do.
If you are serious about investment property I'd be happy to discuss your plans and see if I can help you.
Pay tenants to relocate? What do you mean? I thought you wanted them to pay market rates?
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I am a broker/ realtor to many investors. Contact me If I can help