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Top 10 Investor & Landlord Concerns in California from the Recent Luncheon

Last year fall, an educational luncheon was hosted to address the concerns of California apartment owners and landlords.

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January 31, 2025

Last year fall, an educational luncheon was hosted to address the concerns of California apartment owners and landlords. It was attended by almost 250 multi-family investors and all came together to talk about the market challenges they face these days. Throughout the discussion, it was clear that people are still hopeful about real estate as a long-term investment. However, they also worry about changing rules, market trends, and tax issues that affect owning property.

The main goal of the luncheon was to exchange education and resources investors need to navigate these complexities. Here are the top 10 questions that were asked during the discussion. Have a look…

1. Rent Control Changes in California

Rent control is a big concern for landlords in California. During the discussion, many landlords were concerned about rent control getting stricter and the impact of Prop 33 being approved. The thing they were most anxious about was how these laws would affect their ability to raise rents. Apart from their income stream, they speculated that it will also impact property management. It is true that we can’t know for sure what new laws will come. Still, it’s important to stay informed and ready for all kinds of changes.

2. Eviction Law Expectations

This is one of the major concerns. Will the eviction laws be stricter? How to win in eviction court? And how long does the eviction process take? These were the questions asked by most landlords. Many were frustrated by the challenges of dealing with difficult tenants, especially those on Section 8 housing assistance. This situation may increasingly cause problems for property owners. After all, this makes it harder to remove tenants even if they don’t follow the rules. Eventually, this will impact their rental income.

3. Options Besides a 1031 Exchange

Many attendees wanted to know if there was any option other than the traditional 1031 Exchange. This is because most of them wanted to defer taxes without the hassle of buying another property. So, there were many popular options discussed, including:

Delaware Statutory Trusts (DSTs)
Seller financing

It’s clear that many investors are looking for simpler and easier ways to diversify investments.

4. Lowering Capital Gains Taxes When Selling

Tax strategies were a big topic of conversation because many wanted to know how to lower their capital gains taxes. This concern was majorly valid when selling properties that have increased in value. There are ways to defer taxes and lessen your overall tax bill, such as:

seller financing
installment sales
DSTs

The key takeaway is that planning for taxes is an important part of managing your wealth and protecting your financial future.

5. What Is the Future of the California Real Estate Market?

Nothing certain or definite was concluded regarding the future of the California real. Many of you were worried about whether it’s still a good idea to invest in the state. Some were thinking about selling their properties and investing in states that have easier regulations for landlords. Overall, most of them were cautious! Real estate usually holds its value over time. However, the strict rules are making it harder to earn profit. Because of this, many investors are looking at opportunities in other states while wondering whether to keep properties in CA or not.

6. Tenant Buyouts: Can “Cash for Keys” Still Work?

Cash for keys has risen in popularity – all because of the stricter eviction laws. Investors want to know if they can still negotiate buyouts in cities that have mandatory relocation fees. Besides, they want to know the best practices for tenant buyouts. Even with more restrictions, tenant buyouts can still be a good option. Still, you have to handle negotiations carefully while following local laws. If done correctly, buyouts can be an efficient way to take back control of your property.

7. Financing Upgrades of Aging Properties

Properties usually need repairs, and there were a lot of questions about how to finance the major ones. One of the hottest discussions was financing the renovation of old buildings. Some investors were concerned about the costs of these improvements compared to the potential increase in property value. The general feeling is one of cautious yet optimistic. Landlords know upgrades can boost property value and rental income. However, they know that they need to be careful when considering financing options to avoid taking on too much debt.

8. Putting Properties in an LLC for Protection

Landlords also wanted to know if there are any benefits of putting their property into a limited liability company (LLC). Clearly, they were interested in this method for protecting larger property portfolios against legal issues. Because lawsuits are more common now, investors feel that protecting assets is becoming more and more important. If you’re thinking about this option, it’s essential to talk to legal and tax experts to find the best setup for your situation. Want a quick suggestion? You can talk it out with Evelyn Baez. With her expertise in the real estate market, she’ll advise on you the right step to take.

9. How To Lower My Insurance Costs?

Many landlords are trying to find ways to lower their insurance premiums. This search and potential practice originated because of the insurance rates going up and the risk of policies being canceled. Options include:

Raising deductibles
Bundling multiple properties together
Working with specialized insurance brokers

The overall feeling among landlords is one of concern, as these costs eat into profits, especially in areas with rent control or slow rent growth.

10. Estate Planning & Deferring Taxes

Estate planning was also one of the major topics of discussion. Landlords were asking how to transfer their property to their beneficiaries without facing big tax bills. Options discussed to preserve wealth for the next generation included:

trusts
LLCs
gifting strategies

Most attendees agreed on long-term planning. Overall, many investors are looking beyond immediate profits and thinking about how to build and pass on wealth to their families.

Conclusion

The overall feeling at the luncheon was of caution and concern from a landlord’s perspective. Many investors are still dedicated to their properties in CA. However, many wonder if it’s still an ideal place to invest amid all the growing regulations, tax issues, and market uncertainty. On the bright side, there is also optimism—investors are looking for education, tax strategies, and legal ways to protect their assets and grow their portfolios.

Need help with investments, property selling, 1031 exchange, or any other real estate concern? Evelyn Baez is here to help. Contact today for expert advisory.

About the Author

Evelyn Baez Nguyen is a multi-family specialist at Lyon Stahl Investment Real Estate in El Segundo California.