On one of our buildings, insurance is now 21% of total annual expenses, and that’s after spending nearly $50K upgrading the electrical. Go figure. Used to be closer to 10% Now LA City Council is set to vote on reducing allowable rent increases for RSO buildings. Right now the annual increase is 3%. They clearly don’t grasp what it costs to keep these buildings safe and compliant! Balcony requirements, Seismic / soft story requirements, electrical upgrades etc etc. Hundreds of thousands of capital needed. If City Council pushes this through, a lot of small mom & pop owners are going to be cornered into deferring upgrades or selling out. That’s bad for everyone tenants, owners & the city itself. The only winners will be the attorneys.