BiggerPockets Daily LA Fires: What to Do as a Landlord
Jan 16, 2025
The podcast dives into the aftermath of the LA Fires, focusing on the devastating effects on landlords and the housing market. With damages in the billions, the discussion covers insurance complexities and legal responsibilities amid recovery. Listeners learn about ethical obligations to support displaced tenants and strategies like Accessory Dwelling Units. The conversation also highlights the potential for rent increases and shifts in the real estate landscape, offering vital insights for landlords and investors in fire-prone areas.
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Impact of LA Fires and Insurance Crisis
- The LA fires caused billions in damages, reshaping the real estate market, especially in expensive areas like Pacific Palisades.
- Insurance is a major problem, with insurers pulling out of high-risk areas, leaving landlords with limited, costly options like the FAIR Plan.
Landlord Obligations and Ethics
- Understand California’s price gouging laws, limiting rent increases to 10% after emergencies.
- Be a good person and help your tenant in any way you can.
Housing Market Repercussions
- Displaced homeowners will increase rental demand, potentially driving up prices, especially for high-end properties.
- The fires worsen the affordability crisis for middle and working-class renters, creating a devastating situation.