This shows the difference between landlords who live in the neighborhood vs landlords who are investment companies. One is healthy the other is destructive.
Yeah investment companies literally bleed dry towns and cities. Just a few spaces and thats hundreds of thousands leaving the area. If the landlords lived there they would spur the economy. But instead its going to finance bros for their cocaine and strippers
@@TheTanglyHen1026 no. I just think capitalism works best when owners are held accountable and cannot be absentees, and when industries can't be outsourced and when companies aren't being stripped of whatever parts of them are unprofitable to maximize profitability at all costs.
The difference is that landlord more than likely doesn't owe the bank a dime on these properties so his expenses are far lower than ones with high debt. It is completely pointless to rent your property out for a lower rate if it doesn't even cover your expenses.
This is exactly how we managed our residential rentals--we sold recently, and never had a vacancy in 22 years of ownership. Kudos to this landlord he is truly participating in the business of business.
I worked for a landlord in San Jose decades back. He got high rent but once in? It stayed the same. Loved that old man. He was batshit crazy. Lol. Especially to work for. But I still loved him
In the 1970s, I was living in Los Angeles. The *_Los Angeles Times_* ran an article about the resident/landlord an apartment building in Santa Monica. When a tenant moved in, the landlord set a high market rate but never raised the rent. IIRC, one tenant had been renting a one bedroom apartment since the 1950s and 20 years later, was paying $55 a month. I was renting a studio apartment in the Silverlake area for $90 a month.
@@jrs4ex I don't think it would make much difference as the price is usually based off comps, not off of your current rental income. That said, LA recently passed laws making it hard to evict existing tenants, and I could see that shaving $10-20k per unit off the value of the property.
My landlord did that when I rented before owning a house, and then I did the same when I rented out 2 rooms. It just doesn’t make sense to squeeze ppl for more money.
It is a physics problem, really: take good care of the foundation and the keystone holds the arch up. Deplete the foundation and the whole contraption comes down. Unfortunately, most of economists and financiers don't understand physics.
I’m no real estate magnet but the whole 61 steps, 11 agencies, and 17 fees to open a new restaurant might be part of the problem. The city ain’t helping small businesses by making it “a difficult and expensive process” to start one.
Yeah, I heard that and thought it would be good for the city to streamline the process. Restaurants are common and many don't last long so a city would be expected to have a steady flow of new operators looking to open. Common businesses should not be that complicated to start. If you want to open an underground gasoline powered go-cart race track that serves beer... that you could expect a challenge. A restaurant should be simple.
@@GondolaParadiso yeah, but if you could get the permits for a business gem like that it’d be worth the time and money. I’d be the first in line on opening day
Everything that’s wrong with San Francisco, and California 61 steps through 11 agencies along with 17 fees to open a restaurant California officially hates any business, they will tax the hell out of business owners and landlords and will have a revolving door policy on jail or prison. Booked and released within a few hours with few or no conditions and they’ll hit up another store.
You would think that it wouldn't be that hard in this day and age to produce a computer program that amalgamated the different forms so a prospective shopkeeper just filled in the common information once, and then routed you to the next appropriate question for each specialized form. And then had a "joint task force" of bureaucrats from different agencies to administer the process, and amalgamate the different inspections required. I'm sure that there's good reasons for each of these steps - health inspections, fire regulations etc but I'm pretty sure that if you looked at it from the ground up you could find duplication of requirements.
My nephew gave his SF landlord notice to vacate his apartment. When the landlord found out he was moving he offered to lower his rent $200 a month. My nephew declined and the landlord offered to lower it $300 a month and sign a 2 year lease. He told the landlord he should have lowered it 2 years ago.
People like your nephew don’t understand that landlords must cover for risk and maintenance. Do you think your nephew is paying for a $15,000 broke AC unit or a $2500 water heater?
Landlords are able to huge rent for commercial space at high volume people traffic areas. More people traffic = more potential walk-in customers. It’s a risk vs. reward thing you need to analyze with your business planning before deciding to open a store in an area.
He can afford to lower rents because he bought a long time ago and his taxes are low with prop 13. His heirs will have to raise everything later due to prop 19. He's also a nice guy.
Finally a landlord that has a moral compass. Kudos to that landlord. He really care about America and Americans. Thank you for making America great again.
It's also smart business though. You can't make money as a landlord if small businesses can't afford to rent your commercial properties, and empty store fronts make neighbourhoods feel unsafe, so people are also less likely to want to rent residential units.
When I was living in New York City, my two longest stays in an apartment were about seven years each. The first time, my landlord raised the rent once, and only by $25. The second time, never raised my rent because I always paid on time and the landlord knew that I would want to move sometime in the future and would be saving money. I can understand an occasional slight increase, but some places are just crazy.
Wow 61 steps with 11 agencies to get permits plus 17 government fees. You can move to a good landlord but the government red tape will take years to open.
SF don’t protect businesses, yet will tax landlords for not filling commercial vacancies? Why don’t the people tax the city for not protecting it’s citizens!
How does having a $15,000 a month storefront sit empty, because no business can afford it, help the City? Lower the rent and somebody will take it. That is what helps the City.
Landlords don't have a lqrge day to day cost and can just price whatever they want. If no one does anything the landlords will increase the rent until everyone leaves.
@@EmperorNefarious1 Hello , lets talk about the world of security back commercial loans. It s the real reason why these places sit empty. IF the rent is lowered the build is worth less. Then they have to make up the loss equity at once. security back commercial loan nullifies the law of supply and demands
I am a land lord, and I would never in a million years think about buying investment property in San Francisco, that guy with 14 properties there must be crazy
There's a massive storefront on Atlantic Ave. in Bixby Knolls neighborhood in Long Beach that has sat empty for 25 years, the faded neon sign from the previous business still towering above it. Directly across the street was an all you can eat buffet that had been in business for 40 years, when Chase bank took over the Washington Mutual attached to it and the restaurant's lease. They tried to double the rent, shutting down a 40 year established business with their greed. Then the restaurant sat vacant for at least a decade, before it was remodeled into office buildings that sat vacant for many more years. The neighborhood really resented corporate America pushing out our beloved mom & pop businesses.
I think the fines/ taxes should come for these corporations and they should escalate in magnitude until the banks are forced to actually get renters or sell. Even if they sell property back to the city. Anything is better than wasting land
Would love to see this much more! It sucks having to walk by empty storefronts or see businesses leave because some of these landlords refuse to make a little less; it's delusional and makes neighborhoods worse.
There’s a method to the madness or they wouldn’t do it. All they need is one or two high end stores to put up with the rents and it makes up for the vacant units. It’s a bad situation for the rest of society.
@@DellikkilleD Overbbuilding doesn't help but greedy investment companies and owners with no attachment to the actual neighborhood are the real threat to a stable neighborhood economy. Outsiders do not care a red cent about how well a neighborhood fairs out when they build or rent.
Create more small commercial space in proximity to populations too. Because right now, there ain't a lot of them to allow small business owners to launch their affair.
❤❤❤❤❤❤❤❤❤❤❤❤❤❤ thank you for not being greedy and a decent human being. The reason is he’s not a greedy poor European who want to pretend to be European royalty on non Europeans lands. Hence the word landlord. Thank you again for treating people with humanity.❤❤❤❤❤❤❤❤❤❤
It's better when hurts the grifter's pockets. But rent caps would be better than giving the city money to plunder, instead of for removing the homeless
Thirty-five years ago, I lived and worked in the Inner Sunset District. The Dudum family owned numerous rental properties, ranging from commercial buildings to residential structures. The Dudum family has been an institution in the Sunset Dist. for many many years.
He's a rare gem in a world of greed. We can only hope that if/when he passes, his children decide to honor his legacy and keep these practices the same.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
'Rebecca Nassar Dunne’, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I'm a residential landlord in CA with several homes I rent. I give my tenants 2 year leases and have always kept increases no more than $100 a month just to cover my increased insurance and taxes costs. I want to keep my long term tenants even if I make less money. I could raise the rent $300 a month peryear if I wanted.
Same here, I am a landlord in the Bay Area (not too far from the inner sunset) and the rent I charge to my tenants (2 bedroom and 2 bathroom unit) is 50%less than the neighborhood ($3500). Also, the rent increase is about every 2 years for $50. I could really use the CMRV since my two kids started college last year, but tenants are nice folk, respectful, and are not late on rent. Since they have been renting from me for about 8 years we haven’t had issues, which I would like to keep it that way.
Good tenants are diamonds. I did not raise rent for 3 years on my good tenant. My other tenant however disappeared and left the unit infested with roaches.
Sounds like it’s not only rent costs. The city, county and state need to do some self work to help small businesses and stop kissing the butt of corporations. Seventeen different agency fees is ridiculous!
3:10 is the key piece of information *"having owned for so long, is tax base is also relatively low..."* Other landlords who recently bought property are paying higher tax. Effectively, their cost for holding the property is higher, so they're looking for higher rents. This guy has lower taxes, allowing him to make profit more easily even with lower rents.
It is really rare and for several different reasons. While some landowners might be motivated by greed, it's important to consider that the purchasing power of currency decreases over time. For example, food prices have risen by about 5.8% in the past year. If the cost of living rises, it affects rent too, but wages should ideally keep pace with inflation. The real issue, in my humble opinion, isn't just landlords raising rents, but that wages haven't increased in line with inflation. Today, an hour of the average person's work buys much less in terms of rent and other necessities than it did for previous generations.
It doesn't make sense, raising rents so high it forces tenants out leads to you owning an empty store that's not paying you anything. And there is no guarantee a new tenant is coming in that's willing to pay your exorbitant rent... so now you are babysitting a vacant property.
@@internetpointsbank It's an added risk and responsibility. Where I live in Salt Lake City, a land owner, who owned 4 vacant properties on the same block had two of the buildings burned down in multiple fires started by transients in the span of a month. Vacant buildings attract crime and endanger neighboring properties. Your right to have a tax write off for your vacant building should not supercede your neighbor's right to have a safe, crime-free property. The fact that SF charges fees for buildings left vacant too long is fantastic. It forces landlords to either lower the rent to get someone in there or take responsibility for a vacant property that attracts crime.
@@fairywingsonroses I don't know, it doesn't seem to be working. Many of the landlords in SF are rich enough to eat the taxes. I think instead of taxing more and pushing even more revenue into the bloated and ineffective SF government, they should positively incentivize land use. Even better would be if they tried to support a organically growing economy by decreasing the cost of doing business instead of using top down control.
I think some smaller local landlords have been doing this all over. Larger nationals are letting it sit empty, or taking on corporate franchises or vape shops. Capitalism will decrease, violence will increase, and those that can afford to leave will.
@@chaoticallysay2625most land and buildings are owned by a small percentage of corporate landlords. But the smaller percentage of real estate that is owned by mom and pop landlords are probably faring well because they don’t abuse their power with ridiculous rent hikes.
Just remember people who think they are rich because they think they are better at number than other people never account for the value of actual economic activity
The govt also needs to contribute and lower/eliminate all these ridiculous fees during the application process to start a business. After all, landlords are business owners just like their tenants.
I have 4 rental properties and was fortunate enough that all my tenants could afford to pay their rents on time through the Pandemic. I was able to secure 2.5% rate through refinance for all my properties. In return, I lowered rent. After paying rental management, maintenance and mortgage, I get $200 profit from each property for a total of $800 each month. Pretty much all of them agree to sign my 2 years lease.
Will be sweet when that mortgage is paid off. And you can sell to take care of senior needs someday if necessary. Maybe these tenants will want to buy them.
Most restaurants take a year to open, that’s with a remodel. I’ve opened over 5 places at this point as a chef. 10 years ago a good place cost 2-3 million for the build out and the up front costs to open, usually rent about 20-30k and overhead of a 125k a month. Those numbers have Doubled easily, costs have doubled in every way, running a high volume high grossing restaurant is like a huge gamble.
my landlord dun doubled our rent since the pandemic, infact he just raised rent my 800 more, we now pay 6K per month in just rent. but it's not just rent, card processing fees have also doubled, we use to pay 1,500-2K a month now its 4K$ per month to just to process card transaction, then my bank charges us a "cash processing fee" of 250$ a month if we go over a certain amount of CASH we deposit. then u have water and electric rates that keep increasing, then the insurance (every year te insurance has gone up 1K since the pandemic), then the alarm company, the phone company, the internet provider, the pest control, the maintenance service contract ALL increases. it's effin hard to run a business, i raise the prices by 50 cents and some costumers start a full out argument and ask WHY i raised the price by 50 cents... my cost have increased by thousands per month, i up a plate from 7.50 to 8$ and all hell breaks loose, if you can't afford to pay 8$ for a lunch plate, u CAN'T afford to eat out...
In Singapore it requires 7 steps, 6 of those being different liscensing requirements for food, beverage, import and liquor licenses + registering the business itself.
This is a SF policy I agree with if you fail to get a tenant cause of horrid rental price you should be taxed more cause you are holding onto inventory and wasting people’s time.
Hey, now, corporations are people, too! Both political parties at every level are entirely on board with corporations buying up as much as they like. I know it's not easy, but we should accept our place in the pecking order. We give our "leaders" a couple hundred thousand a year to represent us. That's chump change compared to the lobbyists giving them much more than we do. If you're a politician, are you going to bang your head against the wall trying to please the masses, many of whom are narrow-minded and ignorant, or are you going to listen to a small group of people feeding you big money. You can please some of the people all of the time, but you can't please all of the people all of the time. Considering that few politicians have values, morals, or ethics, they'd be dumb not to pledge allegiance to the small group of professionals who feed them money from deep pockets. Open-market competition is so yesterday. Monopolies and duopolies are where it's at. Welcome to unbridled capitalism. The own-nothing subscription model is where the smart money is. It's a new era. I present to you, Maximum Extraction!! We're just getting started, so buckle up. Cool, hey. All hail the mighty corporations Disregard their words; look at their actions. The mismatch can't be overstated. They are smart. They've got us feuding over issues they should have solved, while they feed on the deights the government trough offers. "Flood the Zone" in politics pre-dates Steve Bannon and Trump. We've been in it for generations.
This only works if the owner/landlord bought the property decades ago. So their cost basis is lower. But if the owner just bought the property in the last few years, the property would be in the negative if collecting these 2014-level rents. And if the property is in the negative, then it cannot be maintained.
Good to see at least one property owner who understands that unrealistic rents equal empty storefronts and works to keep businesses in his neighborhood open and thriving.
Remember kids, being a landlord isn't a business and being approved for a mortgage doesn't make you an entrepreneur no matter what some 20 year old on social media tries to claim. Retail estate is a LONG TERM investment that does not realise yield for decades. Rents are only supposed to partially supplement expenses associated with ownership, not generation enduring profit from day one. The sooner everyone can remember that, the sooner we can get the market back to normal and accommodation back to affordable
They're going to drive down costs for the surrounding area, no doubt. If there's cheaper rent for businesses to go to, then the expensive rents are going to miss out on getting any money at all. What's better: zero rent from an empty overpriced unit, or some money from a filled unit.
I'm not a business owner or a landlord, just a guy who lives in a city and shops. Ive seen SO MANY rentals just sit empty in otherwise thriving areas. It boggles the mind how much money is being missed by landlords while these places sit empty. P.S. Pet peeve: On more than one occasion I've been driving in an area new to me and saw "Pizza," "Record Store," or "Thrift Store" for excited, parked and found out that the store was permanently closed, and on closer inspection also looked like it had been closed for years! The landlord doesn't have a responsibility to stop this FALSE ADVERTISING?!?! Take down the damn sign!!!
I love the Bay and moved there after the tech boom, I'm happy landlords like this exist. It's what makes some neighborhoods so charming and others sad and empty
I’m a property owner and when I’m ready to rent I’d rather have a tenant who takes really good care of my property and plants than squeeze as much as possible out of someone. Having quality reliable tenants is worth it.
Local businesses are what make town beloved. Unfortunately there aren’t many landlords these days, it’s a lot of huge companies that raise rents exactly what they’re legally allowed to without exception.
I used come to San Francisco it has really gone down hill.
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A shop by me shut because the landlord put the rent up significantly. After several months closed the shop was open again with the original shop owner and the original rent.
That’s just simply not true. To be accurate, your comment would need to be “if he can do it, than everyone with a similar cost basis in a similar area can”. You can look up the tax basis (it’s public data) for his properties, and see they are literally a 10th of what the basis is for other properties which have sold in the last 5-10 years. Meaning rent would be 10x to maintain a same margin.
![BOWKYLION - วิงวอน (ex-change) [Official MV]](http://i.ytimg.com/vi/cLdnZWDaO-w/mqdefault.jpg)
This shows the difference between landlords who live in the neighborhood vs landlords who are investment companies. One is healthy the other is destructive.
Yeah investment companies literally bleed dry towns and cities. Just a few spaces and thats hundreds of thousands leaving the area. If the landlords lived there they would spur the economy. But instead its going to finance bros for their cocaine and strippers
True. Its almost as if it should be mandated.
@@krunkle5136what r u some kind of socialist 😂😂
@@TheTanglyHen1026 no.
I just think capitalism works best when owners are held accountable and cannot be absentees, and when industries can't be outsourced and when companies aren't being stripped of whatever parts of them are unprofitable to maximize profitability at all costs.
The difference is that landlord more than likely doesn't owe the bank a dime on these properties so his expenses are far lower than ones with high debt. It is completely pointless to rent your property out for a lower rate if it doesn't even cover your expenses.
This is exactly how we managed our residential rentals--we sold recently, and never had a vacancy in 22 years of ownership. Kudos to this landlord he is truly participating in the business of business.
I worked for a landlord in San Jose decades back. He got high rent but once in? It stayed the same. Loved that old man. He was batshit crazy. Lol. Especially to work for. But I still loved him
In the 1970s, I was living in Los Angeles. The *_Los Angeles Times_* ran an article about the resident/landlord an apartment building in Santa Monica. When a tenant moved in, the landlord set a high market rate but never raised the rent. IIRC, one tenant had been renting a one bedroom apartment since the 1950s and 20 years later, was paying $55 a month. I was renting a studio apartment in the Silverlake area for $90 a month.
Did being below market price have an impact on the value of the properties when you sold?
@@jrs4ex
I don't think it would make much difference as the price is usually based off comps, not off of your current rental income.
That said, LA recently passed laws making it hard to evict existing tenants, and I could see that shaving $10-20k per unit off the value of the property.
My landlord did that when I rented before owning a house, and then I did the same when I rented out 2 rooms. It just doesn’t make sense to squeeze ppl for more money.
This owner deserves an award.
Y’all voted 🗳️ for all this nonsense, so live with it and quit complaining
@mayorBreedlove @GovenorCA
@@chuckxu5910 make us
Stupid
The big corps and franchises don't know or care for community spirit. Support these shops, restaurants and neighborhood!
Myself a landlord, I don't push my tenants to bankruptcy, I try to act as a business partner. It's been working quite well for the last 30 years.
It is a physics problem, really: take good care of the foundation and the keystone holds the arch up. Deplete the foundation and the whole contraption comes down. Unfortunately, most of economists and financiers don't understand physics.
Good on you sir. Continue to be great.
You are smart.
I’m no real estate magnet but the whole 61 steps, 11 agencies, and 17 fees to open a new restaurant might be part of the problem. The city ain’t helping small businesses by making it “a difficult and expensive process” to start one.
Yeah, I heard that and thought it would be good for the city to streamline the process. Restaurants are common and many don't last long so a city would be expected to have a steady flow of new operators looking to open. Common businesses should not be that complicated to start. If you want to open an underground gasoline powered go-cart race track that serves beer... that you could expect a challenge. A restaurant should be simple.
@@GondolaParadiso yeah, but if you could get the permits for a business gem like that it’d be worth the time and money. I’d be the first in line on opening day
Absolutely the case. Regulations and tax should scale way down with business size and perhaps even age.
Everything that’s wrong with San Francisco, and California 61 steps through 11 agencies along with 17 fees to open a restaurant California officially hates any business, they will tax the hell out of business owners and landlords and will have a revolving door policy on jail or prison. Booked and released within a few hours with few or no conditions and they’ll hit up another store.
You would think that it wouldn't be that hard in this day and age to produce a computer program that amalgamated the different forms so a prospective shopkeeper just filled in the common information once, and then routed you to the next appropriate question for each specialized form. And then had a "joint task force" of bureaucrats from different agencies to administer the process, and amalgamate the different inspections required. I'm sure that there's good reasons for each of these steps - health inspections, fire regulations etc but I'm pretty sure that if you looked at it from the ground up you could find duplication of requirements.
That landlord is a true LOCAL hero. He wants his neighborhood to survive and thrive. Glad I can call this area of town, home!
My nephew gave his SF landlord notice to vacate his apartment. When the landlord found out he was moving he offered to lower his rent $200 a month. My nephew declined and the landlord offered to lower it $300 a month and sign a 2 year lease. He told the landlord he should have lowered it 2 years ago.
I am a landlord. I rolled back the last rent increase early on in Covid. Just put it back a few months ago. But then, I am from SF. 💗
Its horrible everywhere for small businesses renting small storefronts and even with regular tenants too.
Your nephew is a sissy
People like your nephew don’t understand that landlords must cover for risk and maintenance. Do you think your nephew is paying for a $15,000 broke AC unit or a $2500 water heater?
@@andayaman yes all tenants pay for broken appliances it's called raising the rent bubba
$15,000 per month to rent a small building is ridiculous
Landlords are able to huge rent for commercial space at high volume people traffic areas. More people traffic = more potential walk-in customers. It’s a risk vs. reward thing you need to analyze with your business planning before deciding to open a store in an area.
It’s San Francisco. I use to work at pier 39 and our rent was $22,000 a month…… that was 22 years ago! Can’t even imagine what it is now. 🤯
@funkychicken2119 that's because the mafia runs the pier.
@@eua3762 what mafia
@joshuaharper4439 Maybe in your little town.
The man has a vested interest in his community, heartwarming.
He can afford to lower rents because he bought a long time ago and his taxes are low with prop 13. His heirs will have to raise everything later due to prop 19. He's also a nice guy.
I'm happy to see that I'm not the only one who caught they didn't mention that...👍
Too much red tape. The heirs will sell to a bigger company. I hope he lives to 110 years old.
I was gonna say. The dude bought these properties like 50 years ago, and his kids are gonna be fighting over everything.
Prop 13 and prop 19 is the issue once again. 😢
So at the end of days...it is the govt that screw over people.
Finally a landlord that has a moral compass. Kudos to that landlord. He really care about America and Americans. Thank you for making America great again.
People behind magGa would’ve raised the rent. Took my thumbs up on your comment back when i got to the last line 👎
@@xasalinasx omg yeah, that last line gave me whiplash.
It's also smart business though. You can't make money as a landlord if small businesses can't afford to rent your commercial properties, and empty store fronts make neighbourhoods feel unsafe, so people are also less likely to want to rent residential units.
When I was living in New York City, my two longest stays in an apartment were about seven years each. The first time, my landlord raised the rent once, and only by $25. The second time, never raised my rent because I always paid on time and the landlord knew that I would want to move sometime in the future and would be saving money. I can understand an occasional slight increase, but some places are just crazy.
Dudum is a hero! Thank you sir!!
Resisting greed and caring for a neighborhoods well-being is now considered a heroic ad. We need to keep things local for the sake of decency.
Wow 61 steps with 11 agencies to get permits plus 17 government fees. You can move to a good landlord but the government red tape will take years to open.
It's great when businesses survive for decades.
Yep, Pasquale's pizza on Irving street in the inner sunset district has been there since the late 50's!!!!! 👍🍕🍷
This is the way to be! It does have a huge impact!
SF don’t protect businesses, yet will tax landlords for not filling commercial vacancies? Why don’t the people tax the city for not protecting it’s citizens!
How does having a $15,000 a month storefront sit empty, because no business can afford it, help the City? Lower the rent and somebody will take it. That is what helps the City.
Landlords don't have a lqrge day to day cost and can just price whatever they want. If no one does anything the landlords will increase the rent until everyone leaves.
@@EmperorNefarious1 Hello , lets talk about the world of security back commercial loans. It
s the real reason why these places sit empty. IF the rent is lowered the build is worth less. Then they have to make up the loss equity at once. security back commercial loan nullifies the law of supply and demands
I am a land lord, and I would never in a million years think about buying investment property in San Francisco, that guy with 14 properties there must be crazy
Why not? It’s one of the most wealthy regions in the country.
Excellent example of how smart business practices beat greedy business practices.
Greedy government practices don’t help either.
There's a massive storefront on Atlantic Ave. in Bixby Knolls neighborhood in Long Beach that has sat empty for 25 years, the faded neon sign from the previous business still towering above it. Directly across the street was an all you can eat buffet that had been in business for 40 years, when Chase bank took over the Washington Mutual attached to it and the restaurant's lease. They tried to double the rent, shutting down a 40 year established business with their greed. Then the restaurant sat vacant for at least a decade, before it was remodeled into office buildings that sat vacant for many more years. The neighborhood really resented corporate America pushing out our beloved mom & pop businesses.
I think the fines/ taxes should come for these corporations and they should escalate in magnitude until the banks are forced to actually get renters or sell. Even if they sell property back to the city. Anything is better than wasting land
What's the storefront called?
Would love to see this much more! It sucks having to walk by empty storefronts or see businesses leave because some of these landlords refuse to make a little less; it's delusional and makes neighborhoods worse.
Stop voting for democrats they are the cause of this problem not landlords
lmfao, no, it doesnt. If a place cant survive in an area, it doesnt belong there. its the natural result of over building.
There’s a method to the madness or they wouldn’t do it. All they need is one or two high end stores to put up with the rents and it makes up for the vacant units. It’s a bad situation for the rest of society.
@@rebelroar78 great perspective
@@DellikkilleD Overbbuilding doesn't help but greedy investment companies and owners with no attachment to the actual neighborhood are the real threat to a stable neighborhood economy. Outsiders do not care a red cent about how well a neighborhood fairs out when they build or rent.
Stop the unnecessary government fees. That’s one way to help small businesses
Create more small commercial space in proximity to populations too. Because right now, there ain't a lot of them to allow small business owners to launch their affair.
❤❤❤❤❤❤❤❤❤❤❤❤❤❤ thank you for not being greedy and a decent human being. The reason is he’s not a greedy poor European who want to pretend to be European royalty on non Europeans lands. Hence the word landlord. Thank you again for treating people with humanity.❤❤❤❤❤❤❤❤❤❤
There is still hope for the world. People like him are the ones that need to be elected in office.
The only hope for this world is Jesus Christ
this is a great landlord, God bless him.
Greed hurts everyone.
It's better when hurts the grifter's pockets. But rent caps would be better than giving the city money to plunder, instead of for removing the homeless
Thirty-five years ago, I lived and worked in the Inner Sunset District. The Dudum family owned numerous rental properties, ranging from commercial buildings to residential structures. The Dudum family has been an institution in the Sunset Dist. for many many years.
He's a rare gem in a world of greed. We can only hope that if/when he passes, his children decide to honor his legacy and keep these practices the same.
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy, or not?
Stocks with yields that outperform the market should be on your radar, as should shares that at least lag the market over the long term. But if you want a long-term strategy that works, I advise you to consult a broker or financial advisor.
Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.
Could you possibly recommend a CFA you've consulted with?
'Rebecca Nassar Dunne’, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I'm a residential landlord in CA with several homes I rent. I give my tenants 2 year leases and have always kept increases no more than $100 a month just to cover my increased insurance and taxes costs. I want to keep my long term tenants even if I make less money. I could raise the rent $300 a month peryear if I wanted.
Thats just swell. You want to exploit people and get congratulated on TH-cam. What a sad human. Go buy some white paint.
Sadly start collecting the extra to relocate a long term tenant. We all pay for these ridiculous laws said to protect people.
Sadly In CA, a long term tenant you know is good is much better than a tenant that ends up squatting for years. There is pros and cons to dverything🤔.
Same here, I am a landlord in the Bay Area (not too far from the inner sunset) and the rent I charge to my tenants (2 bedroom and 2 bathroom unit) is 50%less than the neighborhood ($3500). Also, the rent increase is about every 2 years for $50. I could really use the CMRV since my two kids started college last year, but tenants are nice folk, respectful, and are not late on rent. Since they have been renting from me for about 8 years we haven’t had issues, which I would like to keep it that way.
Good tenants are diamonds. I did not raise rent for 3 years on my good tenant. My other tenant however disappeared and left the unit infested with roaches.
Sounds like it’s not only rent costs. The city, county and state need to do some self work to help small businesses and stop kissing the butt of corporations. Seventeen different agency fees is ridiculous!
Keep in mind that the government is run by Teflon people who never take responsibility. I'm in the minority who keeps trying to vote them out.
3:10 is the key piece of information *"having owned for so long, is tax base is also relatively low..."*
Other landlords who recently bought property are paying higher tax. Effectively, their cost for holding the property is higher, so they're looking for higher rents. This guy has lower taxes, allowing him to make profit more easily even with lower rents.
I wish more landlords shared his mindset..
For those newer landlords they can’t afford to do what a long term landlord is doing. Salute to him
God forbid they reduce rents
It is really rare and for several different reasons. While some landowners might be motivated by greed, it's important to consider that the purchasing power of currency decreases over time. For example, food prices have risen by about 5.8% in the past year. If the cost of living rises, it affects rent too, but wages should ideally keep pace with inflation. The real issue, in my humble opinion, isn't just landlords raising rents, but that wages haven't increased in line with inflation. Today, an hour of the average person's work buys much less in terms of rent and other necessities than it did for previous generations.
It doesn't make sense, raising rents so high it forces tenants out leads to you owning an empty store that's not paying you anything. And there is no guarantee a new tenant is coming in that's willing to pay your exorbitant rent... so now you are babysitting a vacant property.
Empty unit is a tax write off.
@@internetpointsbank It's an added risk and responsibility. Where I live in Salt Lake City, a land owner, who owned 4 vacant properties on the same block had two of the buildings burned down in multiple fires started by transients in the span of a month. Vacant buildings attract crime and endanger neighboring properties. Your right to have a tax write off for your vacant building should not supercede your neighbor's right to have a safe, crime-free property. The fact that SF charges fees for buildings left vacant too long is fantastic. It forces landlords to either lower the rent to get someone in there or take responsibility for a vacant property that attracts crime.
@@fairywingsonroses I don't know, it doesn't seem to be working. Many of the landlords in SF are rich enough to eat the taxes. I think instead of taxing more and pushing even more revenue into the bloated and ineffective SF government, they should positively incentivize land use. Even better would be if they tried to support a organically growing economy by decreasing the cost of doing business instead of using top down control.
Empty buildings don't pay rent. Better to get 50% of something than 100% of nothing
Buildings that are Owner-Occupied show Care about their community. Bravo to the heroically motivated. ❤❤❤
I think some smaller local landlords have been doing this all over. Larger nationals are letting it sit empty, or taking on corporate franchises or vape shops. Capitalism will decrease, violence will increase, and those that can afford to leave will.
Do good for who?! Maybe for you?! I've seen a lot of places closed all over CA. Its horrible times we facing and coming.
@@chaoticallysay2625most land and buildings are owned by a small percentage of corporate landlords. But the smaller percentage of real estate that is owned by mom and pop landlords are probably faring well because they don’t abuse their power with ridiculous rent hikes.
This is why i call sunset my little mayberry. ❤❤
Just remember people who think they are rich because they think they are better at number than other people never account for the value of actual economic activity
The govt also needs to contribute and lower/eliminate all these ridiculous fees during the application process to start a business. After all, landlords are business owners just like their tenants.
Blessings and good luck for all businesses in this area of San Francisco.
I used to live on 9th and Irving… great to see the community spirit is still strong
I have 4 rental properties and was fortunate enough that all my tenants could afford to pay their rents on time through the Pandemic. I was able to secure 2.5% rate through refinance for all my properties. In return, I lowered rent. After paying rental management, maintenance and mortgage, I get $200 profit from each property for a total of $800 each month. Pretty much all of them agree to sign my 2 years lease.
Will be sweet when that mortgage is paid off. And you can sell to take care of senior needs someday if necessary. Maybe these tenants will want to buy them.
Most restaurants take a year to open, that’s with a remodel. I’ve opened over 5 places at this point as a chef. 10 years ago a good place cost 2-3 million for the build out and the up front costs to open, usually rent about 20-30k and overhead of a 125k a month. Those numbers have Doubled easily, costs have doubled in every way, running a high volume high grossing restaurant is like a huge gamble.
My neighborhood is FULL of greedy landlords and the empty storefronts scream it!
How many different permits do you really need to operate? the state and the city need to loosen up regulations!
No. I dont want dangerous idiots serving food.
The guy has the view of the community is more important than myself. A quality of a natural born leader and a positive member of society!
my landlord dun doubled our rent since the pandemic, infact he just raised rent my 800 more, we now pay 6K per month in just rent.
but it's not just rent, card processing fees have also doubled, we use to pay 1,500-2K a month now its 4K$ per month to just to process card transaction, then my bank charges us a "cash processing fee" of 250$ a month if we go over a certain amount of CASH we deposit.
then u have water and electric rates that keep increasing, then the insurance (every year te insurance has gone up 1K since the pandemic), then the alarm company, the phone company, the internet provider, the pest control, the maintenance service contract ALL increases.
it's effin hard to run a business, i raise the prices by 50 cents and some costumers start a full out argument and ask WHY i raised the price by 50 cents...
my cost have increased by thousands per month, i up a plate from 7.50 to 8$ and all hell breaks loose, if you can't afford to pay 8$ for a lunch plate, u CAN'T afford to eat out...
Change your bank and go to a credit union 😂 charging to process your CASH is crazy.
Makes me even more proud to be an Inner Sunset resident. Favorite place to live in my life!
In Singapore it requires 7 steps, 6 of those being different liscensing requirements for food, beverage, import and liquor licenses + registering the business itself.
only need one permit in Australia. around a couple $100
Great reporting 👏👏👏
This is a SF policy I agree with if you fail to get a tenant cause of horrid rental price you should be taxed more cause you are holding onto inventory and wasting people’s time.
Corporate landlord keep raising rent. They have no soul.
Hey, now, corporations are people, too!
Both political parties at every level are entirely on board with corporations buying up as much as they like. I know it's not easy, but we should accept our place in the pecking order. We give our "leaders" a couple hundred thousand a year to represent us. That's chump change compared to the lobbyists giving them much more than we do. If you're a politician, are you going to bang your head against the wall trying to please the masses, many of whom are narrow-minded and ignorant, or are you going to listen to a small group of people feeding you big money. You can please some of the people all of the time, but you can't please all of the people all of the time.
Considering that few politicians have values, morals, or ethics, they'd be dumb not to pledge allegiance to the small group of professionals who feed them money from deep pockets. Open-market competition is so yesterday. Monopolies and duopolies are where it's at. Welcome to unbridled capitalism. The own-nothing subscription model is where the smart money is. It's a new era. I present to you, Maximum Extraction!! We're just getting started, so buckle up. Cool, hey. All hail the mighty corporations
Disregard their words; look at their actions. The mismatch can't be overstated. They are smart. They've got us feuding over issues they should have solved, while they feed on the deights the government trough offers. "Flood the Zone" in politics pre-dates Steve Bannon and Trump. We've been in it for generations.
This only works if the owner/landlord bought the property decades ago. So their cost basis is lower. But if the owner just bought the property in the last few years, the property would be in the negative if collecting these 2014-level rents. And if the property is in the negative, then it cannot be maintained.
Dude Willow on the Green in the Sunset is in the interview 🤣🤣🤣
How refreshing! Thank you sir! And the rest who do the same.
What an amazing landlord.More people should be like him.
Good to see at least one property owner who understands that unrealistic rents equal empty storefronts and works to keep businesses in his neighborhood open and thriving.
Love this. Thank you kind landlords!
Remember kids, being a landlord isn't a business and being approved for a mortgage doesn't make you an entrepreneur no matter what some 20 year old on social media tries to claim.
Retail estate is a LONG TERM investment that does not realise yield for decades. Rents are only supposed to partially supplement expenses associated with ownership, not generation enduring profit from day one.
The sooner everyone can remember that, the sooner we can get the market back to normal and accommodation back to affordable
My business landlord does this. It is a whole family and they are wonderful.
I grew up in SF during the early 60s...what made us great were the neighborhood communities..ahhh..the good ole days!
What a beautiful human.
GOD BLESS HIM!! we need more people like him!
I HOPE THIS AN EYE OPENER TO OTHERS LAND LORDS BRAVO TO THIS KIND LANDLORD FOR NOT RAISING THE RENT
They're going to drive down costs for the surrounding area, no doubt. If there's cheaper rent for businesses to go to, then the expensive rents are going to miss out on getting any money at all. What's better: zero rent from an empty overpriced unit, or some money from a filled unit.
Bless the landlord. Let’s keep the mom and pops stores open for years to come.
Need more landlords like him 👍🏿
I'm not a business owner or a landlord, just a guy who lives in a city and shops. Ive seen SO MANY rentals just sit empty in otherwise thriving areas. It boggles the mind how much money is being missed by landlords while these places sit empty.
P.S. Pet peeve: On more than one occasion I've been driving in an area new to me and saw "Pizza," "Record Store," or "Thrift Store" for excited, parked and found out that the store was permanently closed, and on closer inspection also looked like it had been closed for years! The landlord doesn't have a responsibility to stop this FALSE ADVERTISING?!?! Take down the damn sign!!!
Yes. Tax the empty stores. Rents are too high. The people pay the cost.
I love the Bay and moved there after the tech boom, I'm happy landlords like this exist. It's what makes some neighborhoods so charming and others sad and empty
The state and city officials destroying SF
Increasing taxes and penalties on vacant spaces is stupid
How can the owner pay taxes if there is no income
THis only works if they own the property with no loans
this city govt is a joke
Dudum is a class act, and he and his will be blessed
I’m a property owner and when I’m ready to rent I’d rather have a tenant who takes really good care of my property and plants than squeeze as much as possible out of someone.
Having quality reliable tenants is worth it.
Need more people like this landlord. Too many greedy ones
That Rexall I've been to since 1990, when it was down hill from the old Yellow Submarine! And the Old UCSF campus
Real estate profiting has become out of control, the only answer is to build more with less burdensome government regulation.
GoD Bless this man!
God bless you Mr. Dudum.
@@mei6044 did you just assume they them’s gender sounds pretty ist and ism of you
Great idea 💡 👍
Great story. Hopeful. I feared we were seeing the end of shops and street shopping.
Durum is god gifted to the community!
Newsom, take note!
Good man in a heartless city.
Thank god for good people.
tldr: too much bureaucracy, inflation.
Landlords are important community members that have a big responsibility outside of making personal wealth.
Local businesses are what make town beloved. Unfortunately there aren’t many landlords these days, it’s a lot of huge companies that raise rents exactly what they’re legally allowed to without exception.
This will piss off the other lords
So what!
we need more landlords like him in NYC
I used come to San Francisco it has really gone down hill.
A shop by me shut because the landlord put the rent up significantly. After several months closed the shop was open again with the original shop owner and the original rent.
Sir if a big store like T-Mobile won't pay your price for rent, you need to rethink some things....ijs 😂
That proves that this isnt inflation, but companies raisinh prices to feed their greed. Sick 😡
If he can do it, then everyone can. This high rent is a scam.
That’s just simply not true. To be accurate, your comment would need to be “if he can do it, than everyone with a similar cost basis in a similar area can”. You can look up the tax basis (it’s public data) for his properties, and see they are literally a 10th of what the basis is for other properties which have sold in the last 5-10 years. Meaning rent would be 10x to maintain a same margin.
What a good guy !
glad to see not all property owners in sf are scalpers. that man is a hero to a lot of poeple for making it possible for them to pursue their dreams.
We need more man like Abid.
Key word: MORALLY!