SAN DIEGO (KGTV) — A prime spot in the Bankers Hill area, a 100-year-old building on First Avenue, is being converted into five apartments.
"Where we are standing right now - this was a year project. I wish it could have gone faster," said owner Nathan Abbo.
Abbo said he has spent hundreds of thousands of dollars on holding costs and complying with city regulations. He is also putting in high-quality fixtures, an investment he believes will pay off.
"The demand is there. People like nice things and they will pay for it," Abbo said.
However, something his tenants won’t have to pay is more than one month's rent as a security deposit. According to the new law, Assembly Bill 12, landlords who own three or more properties can only charge one month's rent as a security deposit.
"If I can only get a one month deposit, I am going to be more strict on their credit," Abbo said. "I think that people with less than good credit are going to be pushed to the back of the line."
Previously, Abbo allowed tenants with poor credit to rent if they provided a two-month deposit.
Assembly Member Matt Haney of San Francisco sponsored the bill.
Haney said the law stops landlords from charging two or even three times the monthly rent as a security deposit.
California now joins eleven other states in limiting security deposits to one month's rent.
Meanwhile, Abbo is hoping to finish construction in about a month. He said all the rentals in his other buildings are occupied.
