CC 2020-01-28_08j Residential Lease for 202 East Le Point St_PP PresentationApproval of a Residential Lease between the City of Arroyo Grande as the landlord and Jena Simmons and Chad Jackson as the tenants for the house located at 202 East Le Point Street.
2/4/2020
Item 8.j.
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The lease terms include payment of $1,200 per month for February increasing to $1,320 per month starting in March for rent of the residence with all utilities paid by the tenants.
There is a “Possessory Tax” ($230.76) charged by the assessor’s office:
- Real property is owned by a government agency and leased to a private party.
Standard rental tenants do not pay possessory tax, this is a special circumstance since it’s a government agency who is renting the property.
Part of lease agreement
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Item 8. j.- Lease Renewal for 202 E. Le Point Street
Market Value approx. $1,500 to $1,600 per month
Tenants have lives in house for several years
House built in around the 1940’s
Site
N. Mason
Le Point
E. Branch
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Rational behind the increase in rent for this annual lease renewal and increase from the existing $1,000.00 monthly rental fee to $1,100:
Increase in rent by 10% ($1,310.00) to move closer to “Market Value” of approximately $1,600.00
Other considerations :
- in the Village Core but in the middle of a City owned Parking Lot
- approx. 800 sf 2 bedroom 1 bath, older structure built in the 1940s
- structure has not been updated (i.e. some replacement windows and some older single pain windows, kitchen appliances and finishes are older) - newer wall heater installation done
recently
- no private yard and car traffic throughout the night
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Comparative living units to the approx. 800 sf Single Family Residence:
1.) 271 S. Halcyon Rd. Villa Azul Apartments, AG
2 bedroom 1 bath - 725 sf = $1,625
2.) 271 S. Halcyon Rd. Villa Azul Apartments, AG
1 bedroom 1 bath – 650 sf = $1,425
3.) 314 S Mason St. APT B, AG
bedroom 1 bath 754 sf = $1,350
4.) 562 N. 16th St., GB
2 bedroom 1 bath approx. 850 sf = $2,100 front yard and backyard in a neighborhood
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