Hollywood Living
The Hollywood Hills are legendary—offering stunning views, secluded streets, and architectural gems that range from mid-century modern to contemporary luxury builds. But in a market where the average home price often exceeds $2 million, many buyers are priced out before they even begin looking.
Enter Tenancy in Common (TIC): a creative ownership model that’s gaining traction in LA’s most desirable neighborhoods, including the Hills. For buyers who want to live in this iconic enclave without breaking the bank—or for sellers who want to unlock more value from their parcels—SACO TICs (space-assignment co-ownerships) offer an intriguing opportunity.
But just like any real estate arrangement, TICs come with trade-offs. Below, we explore the top pros and cons of buying a TIC home in the Hollywood Hills—so you can decide if this ownership path aligns with your lifestyle and goals.
TICs often cost 15% to 30% less than comparable condos or single-family homes in the same neighborhood. Because TICs are structured on undivided parcels, they avoid the costly and time-consuming legal subdivision process.
For example, instead of buying a $2.5M single-family home, a buyer may purchase a TIC unit for $1.6M—with full access to the same views, neighborhood, and amenities.
Benefit: More buyers can access elite pockets of the Hills that were previously financially out of reach.
Unlike leasing or co-living models, TIC buyers gain actual real estate ownership—including equity growth, tax benefits, and resale potential. You’re not just a tenant—you’re a co-owner with full legal rights outlined in the TIC agreement.
In the Hills, where renters often pay $5,000+ per month for basic units, TICs offer a compelling path to equity.
Most TICs in the Hollywood Hills are structured as SACO TICs, which assign each co-owner exclusive rights to a particular unit. This setup mimics condo living:
Private entrances
Separate utility meters
Defined parking spots
Separate outdoor spaces
You’ll still share ownership of the land and some systems (like the roof), but your living experience feels independent and private.
TICs are often found in duplexes, triplexes, or larger hillside parcels that have been converted from single ownership into multiple units. Many of these homes retain character, custom design, and quirky features not found in new developments.
Think: mid-century gems with panoramic decks, hillside retreats with tiered patios, or rustic-modern homes with creative layouts.
For sellers, structuring a parcel as a SACO TIC allows them to sell multiple units individually, achieving greater value than selling a duplex or triplex as a whole.
For buyers, this means more inventory options—especially in areas with limited housing stock due to zoning restrictions.
TIC units require fractional loans, not traditional mortgages. Only a handful of lenders in California offer these, and underwriting can be stricter.
In the Hills, where prices and appraisals can vary widely, some TIC buyers face challenges securing competitive rates or fast closings.
Additionally, group loans (which tie owners together financially) should be avoided, but still exist in some older TICs.
With TICs, you’re not just buying a unit—you’re entering a legal relationship with other co-owners. This includes:
Sharing responsibility for roof, structure, and land
Making joint decisions about repairs or improvements
Abiding by rules in the TIC agreement
While SACO TICs create independence, there’s still shared liability. Disputes or lack of consensus can cause tension—especially in smaller buildings.
TICs are not yet mainstream in many buyer circles, and some agents avoid working with them due to unfamiliarity.
As a result:
Marketing your TIC may require buyer education
Appraisals may vary
Some buyers may hesitate due to perceived risk
Note: In emerging TIC markets like Hollywood Hills, working with agents and lenders who specialize in TICs is key.
Some buyers view TICs as a stepping stone to condo ownership. But in Los Angeles, legal subdivision of TICs is rare and tightly regulated.
Unless the parcel meets specific zoning, legal, and city planning criteria, conversion is not guaranteed. Buyers should view TICs as long-term co-ownership, not a temporary workaround.
Because TICs are less standardized, buyers should pay for:
Legal review of the TIC agreement
Individual HO-6 insurance policies
Possibly, additional coverage for earthquake or hillside risk
These are wise investments—but they can increase upfront and ongoing costs.
A TIC in the Hills is ideal for:
Buyers priced out of single-family homes but seeking long-term equity
Individuals comfortable with shared responsibilities and legal nuance
Clients who value character-rich properties over cookie-cutter builds
Agents and investors familiar with fractional financing and SACO TICs
It may not be right for:
Buyers who prioritize full autonomy and low maintenance obligations
Investors seeking to short-term rent or flip
Those with extremely limited lending options or need for conventional financing
OLIVER THORNTON
CO-CEO AND R.E AGENT | HOLLYWOOD ESTATES
PARTNER | THORNTON DEVELOPMENT GROUP
310.704.1794
[email protected]
DRE# 01969227
Stay up to date on the latest real estate trends.
Hollywood Living
Timing matters when selling a TIC unit in LA. Discover the best seasons and market conditions to list your Tenants in Common property for top dollar.
Hollywood Living
Learn how property taxes work in TICs, including how shares are assessed, billed, and paid by co-owners in California.
Hollywood Living
Buying a TIC unit? Learn what TIC insurance covers (and what it doesn’t) so you can protect your home and finances.
Hollywood Living
A luxury buyer’s guide to Tenants in Common in LA’s iconic hillside neighborhoods
Hollywood Living
Break down the most important sections of a Tenants in Common agreement
Hollywood Living
Before buying a TIC unit in California, ask these 10 critical questions. This guide helps you avoid costly mistakes and buy with confidence.
Hollywood Living
In the ever-evolving world of real estate, one trend has emerged with clarity: your next homebuyer is likely discovering your property on their smartphone. In a digita… Read more
Hollywood Living
In the world of luxury real estate, presentation isn’t just important—it’s everything. And in 2025, nothing presents a property more powerfully than video. From cinema… Read more
Hollywood Living
In the high-stakes world of luxury real estate, few places demand more from sellers than the Hollywood Hills. With its mix of legacy estates, modern new builds, and bu… Read more
Our agents are experienced with buying and selling properties in the Hollywood Hills and beyond. Consult with us today!