Hi everyone and happy Monday to you all,
I need advice… I have a potential multi-unit that I would love to own/live in. However, it is in a rent controlled area. Currently, the rents are way below market and some tenants have been there for 20 years! Even raising the rent at 3% a year as allowed, I will not come close to market rents.
I have heard that Trusts were a way “out” of rent control. According to this “expert”, I should request that the property be sold vacant. Then, once I own it, convert it to a Trust. Then, instead of putting out “for rent” signs and language to that effect, get people into the apartments through language like, “$900 for a 1 bed. 1 bath” and never ever say rent. Does this make sense?
Of course I would not want to kick out little old ladies! But, I have to live and this may be the only way to at least not be in the hole so much with a mortgage. Has anyone done this before or know enough about Trusts to make sense of this?
Any suggestions on manuvering around the dreaded rent control would be greatly appreciated!!!