What is the impact of Berkeley's tenant eviction law on resale value of small multiunit properties?

Asked by HappyHome, 94704 Fri Jul 18, 2008

Based on Berkeley's law related to only 1 tenant can ever be evicted for a family member to move in, in the entire history of a multiunit property, that really limits resale potential of small multiunit places like duplexes that you might buy to move in yourself with family? I'm curious to hear Berkeley realtor experience with this. And is Oakland and Emeryville the same?

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Jeff Woo, Other Pro, San Francisco, CA
Mon Apr 13, 2009
This rule is essentially the same in Berkeley, Oakland and San Francisco (Emeryville as no eviction control). More specifically, the rule provides that once an OMI is done, that unit is the only unit in which an OMI can be done in the future.

For owners who need to recover multiple units, the Ellis Act may be used to clear the entire building of tenants, but it creates a restriction on the building such that the building may not be used as a residential rental property for the next five (5) years. But the restriction only limits this one use and you are free to use the property in any other lawful manner, such as having other owners live in the premises.

Jeff Woo,Esq.
Follow me on Twitter @jefferywoo
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Liz Stevens, , Berkeley, CA
Thu Jul 24, 2008
Berkeley and Oakland have virtually the same "Just Cause Eviction" ordinance in place, with Oakland being a bit more stringent. Yes, the rent ordinance that saddles a property forever if there has been one owner eviction move in has affected the value of that property going forward. You are much better off offering the tenant a buyout. Unfortunately, in Berkeley, tenants are savvy enough to insist of tens of thousands of dollars. We try to work around having to do an owner eviction on small units in order to allow them to hold their value. Values on the market now for all units is up, even with these stringent measures.
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