Rental
Housing EAST BAY RENTAL HOUSING ASSOCIATION | MARCH 2013
THE
TAX ISSUE
Experts provide landlords with advice to reduce tax liabilities.
PLUS: TURBOCHARGE YOUR TAXES: DO-IT-YOURSELF TIPS THE EAST BAY HOUSING MARKET ROARS BACK
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Contents
East Bay Rental Housing Association
MARCH 2013
Volume X, Number 3 March 2013 EBRHA OFFICE
360 22nd Street, Suite 240 Oakland, CA 94612 tel 510.893.9873 fax 510.893.2906 www.ebrha.com EBRHA STAFF EXECUTIVE DIRECTOR | Jill Broadhurst
jbroadhurst@ebrha.com | x3 DIRECTOR OF OPERATIONS | Cathy Hayden chayden@ebrha.com | x1 DIRECTOR OF ADVERTISING SALES | Tina Bocheff tbocheff@ebrha.com | x6
Features & Columns
PUBLICATIONS & COMMUNICATION PRODUCER
Esteban Cortez | ecortez@ebrha.com | x5 MEMBER SERVICES, EDUCATION & ACCOUNTING Danielle Walker | dwalker@ebrha.com | x2 MEMBERSHIP DEVELOPMENT COORDINATOR
Carrie Sinai | csinai@ebrha.com | x4 EBRHA OFFICERS PRESIDENT Wayne C. Rowland 1ST VICE PRESIDENT Irina Gelfenbeyn 2ND VICE PRESIDENT Luke Blacklidge TREASURER Conor Murphy SECRETARY Jack Schwartz EBRHA DIRECTORS
19
24
The 2013 Tax Game (And Your Rental Properties)
Turbocharge Your Taxes BY BILL BAGNELL
28
BY SCOTT M. ESTILL
14
30
NEWS
2013: Transition to Normal? THE PRESIDENT’S MESSAGE
Win-Win-Win
BY WAYNE C. ROWLAND
ON THE SMALL SCALE
Housing Market Roars Back BY GRANT CHAPPELL
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PRODUCED BY
EBRHA Communications Committee Tina Bocheff, Esteban Cortez, Irina Gelfenbeyn, Wayne C. Rowland EDITOR Tina Bocheff ART DIRECTOR & PRODUCTION Esteban Cortez ADVERTISING
ebrha.com
ESQ. & A
A Bedbug Dilemma BY VARIOUS AUTHORS
Events & Directory 34 THE GREEN SHEET 36 COMMUNITY CALENDAR 38 M EMBER DIRECTORY 42 M EMBERSHIP APPLICATION 42 A D INDEX
Rental Housing is published monthly for $36 per year by the East Bay Rental Housing Association (EBRHA), 360 22nd Street, Suite 240, Oakland, CA 94612. Rental Housing is not responsible for the return or loss of submissions or artwork. The magazine does not consider unsolicited articles. The opinions expressed in any signed article in Rental Housing are those of the author and do not necessarily reflect the viewpoint of EBRHA or Rental Housing. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought. Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by EBRHA, express or implied, of the advertiser or any goods or services offered. Published monthly, Rental Housing is distributed to the entire membership of EBRHA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright © 2013 by EBRHA. All rights reserved.
COVER PHOTO: JD HANCOCK / JDHANCOCK.COM
More
Wayne C. Rowland
Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 360 22nd Street, Suite 240, Oakland, CA 94612.
BY TERESA MOSS FLUEGEL
10
PUBLISHED BY
Tina Bocheff | 510.318.8303
1031 Exchanges: A Powerful Tax Tool
8
Bill Bagnell, Link Corkery, Reggie Hairston, Fred Morse, Rick Philips, Judy Shaw, Menna Tesfatsion, Mila Zelkha
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contributors
PROTECT YOUR BOTTOM LINE
SCOTT M. ESTILL Scott M. Estill serves in an “Of Counsel” role to his Denver-based law firm Estill and Long, LLC. He is a former IRS Senior Trial Attorney in Chicago and Judicial Clerk in the Illinois Appellate Court. He has also written several books on taxes such as “Tax This! An Insider’s Guide to Standing up to the IRS” and “The Tax Compliance Guide for Small Businesses.” He is the co-author of “The Real Estate Investor’s Tax Edge.” Scott is admitted to practice law before the Illinois and Colorado Supreme Courts, along with the United States Tax Court.
TERESA MOSS FLUEGEL Teresa Moss Fluegel is the Senior Vice President of Chicago Deferred Exchange Company (CDEC). Teresa is responsible for providing trust and consulting services to attorneys, accountants, and real estate and tax professionals. She has the expertise that comes from direct involvement with thousands of tax deferred exchanges for real and personal property and earned the professional designation of Certified Exchange Specialist from the Federation of Exchange Accommodators in 2004.
DANIEL BORNSTEIN Daniel Bornstein has over 15 years experience handling real estate/civil litigation related disputes and has successfully handled thousands of landlord/tenant disputes. He is an EBRHA board member, a member of the professional property managers’ association and has conducted numerous seminars throughout the Bay Area. He also regularly serves as an expert witness in litigation involving property management and real estate disputes.
GRANT CHAPPELL Grant Chappell is the vice president of NAI Northern California. Since 2005, Grant has focused on East Bay apartment opportunities for his clients. Grant also serves on the Board of CEI, the Center for Elders’ Independence, a local nonprofit providing PACE Care to seniors in Alameda County. In his free time, Grant enjoys skiing, golf, biking and traveling.
ONLINE TENANT SCREENING Call Today 510.893.9873 EBRHA provides members with low-cost online resident screening. Partnered with Contemporary Information Corp. (CIC), resident screening has one objective: to make sure your leasing decisions make the greatest possible contribution to your bottom line. As of April 2009, landlords can collect a maximum of $44.51 for an application fee. MEMBER PRICING Basic Report . . . . . . . . . . . . $13 Telecheck. . . . . . . . . . . . . . . . $6 Criminal and DMV checks are available, as well as social security traces.
Verbal and Fax Reports . . . . . . . . . Add $22
East Bay Rental Housing Association 510.893.9873 | FAX 510.893.2906 ebrha.com TEL
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news climate to act as a drag on growth this year with possible implications on the direction of the economy in the long term. As fiscal policy debates subside later in the spring, we expect to see some upward trend in economic activity, with growth accelerating moderately in the second half of the year. That momentum will find support in the form of continued, albeit slow, improvement in the housing sector. In the longer term, the gradual return of manufacturing to the U.S. and increasing domestic energy production will work together to accelerate economic growth. However, we anticipate overall growth in 2013 will remain below its potential, extending what has been a slow recovery.”
The Emeryville marina at night with Berkeley in the background
Is 2013 the Transition to “Normal”? but below-potential economic growth seen in 2012 is expected to carry over through 2013 and into 2014. This modest growth path combined with the real GDP growth rate during the recovery from 2009 to this point of 2.2% annualized give credence to claims that the recovery’s slow pace has become the “new normal,” according to Fannie Mae’s Economic & Strategic Research Group. The fiscal cliff and ongoing debt ceiling debate, which are likely to suppress consumer spending in the first half of 2013, continue to present potentially strong headwinds to meaningful growth activity. Overall, a 2% growth rate is forecasted for 2013, similar to the subdued pace of 2012. THE TREND OF GRADUAL
This is despite the fact that the housing sector, which has become a bright spot in the economy since home prices began to rebound in 2012, is expected to provide a rising contribution to GDP in 2013 and in coming years. Recent data indicate that the housing recovery has transitioned to a faster upward track, boosted by an improving labor market and low mort8 RENTAL HOUSING
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gage rates. Overall, home sales, home prices, and home building activity as well as homebuilder confidence appear to be on the upswing, having risen to multiyear highs. “What we view as sub-par economic growth may actually continue to be par for the course for the near term,” said Fannie Mae Chief Economist Doug Duncan . “We expect the fiscal policy
Pest Control Company Orkin announced earlier this year its top 50 bedbug cities for 2012. Last year, the company saw a nearly 33% increase in bedbug business compared to 2011. Among the top 50 cities, the San Francisco/Oakland/San Jose area came in at no. 14, down two spots from the previous year. The top three cities were Chicago, Detroit and Los Angeles. “This list shows that bedbugs continue to be a problem throughout the U.S.,” said Orkin entomologist and Technical Services Director Ron Harrison, Ph.D. “Based on the diversity of cities on the list, we all need to be very cautious when we travel — whether it is business or pleasure, or to visit family, friends or vacation. We need to be vigilant wherever we are and take the proper precautions.” The report stated that sanitation is not a factor when it comes to the development of bedbugs, and that aside from bedrooms, they can also be found in kitchens and bathrooms, as well as hospitals, movie theaters, planes and gyms. People may believe bedbugs transmit diseases, but according to the Journal of the American Medical Association, bed bugs can carry more than 30 different human pathogens, but there is no evidence that bedbugs can transmit diseases. New research from the University of Minnesota has also suggested bedbugs are attracted to dirty clothes, so it is recommended that they
PHOTO: INGRID TAYLAR
The SF Bay Area Ranks 14 Among the Top 50 Bedbug Cities in the U.S.
are kept in a sealed bag or container when traveling. Bedbugs can multiply quickly, so early detection is critical to preventing a larger infestation, the report stated. “Education and prevention are key,” said Dr. Harrison. “Inspect your bedroom regularly, and be cautious when traveling. Adult bedbugs resemble apple seeds in size and color, while newly-hatched babies can be about the size of a pinhead and pale in color. Check mattress seams, sheets and furniture, behind baseboards, electrical outlet plates and picture frames.”
Trulia Data Shows Asking Prices Rising, Rent Hikes Easing The data released recently from Trulia show that
asking prices for U.S. homes edged up 0.3% quarter over quarter last month, “despite the fact that prices typically fall during the wintertime.” At the same time, new construction has eased rising rents. Rent gains lagged asking price increases at the national level for the first time since the price recovery began in the spring of 2012. Rents in January increased 4.1% year over year nationally. Regionally, Trulia researchers note, rent gains cooled the most in San Francisco, rising just 2.4% compared to 11.5% in July 2012.
The 2013 NAA Education Conference & Exposition is Quickly Approaching Sir Richard Branson, business icon and leader in innovation and customer service will be the keynote speaker at the Opening General Session of the 2013 NAA Education Conference & Exposition in San Diego, June 19-22. Branson, international business magnate and founder of the Virgin Group — one of the world’s most recognized and respected brands — is well known for his entrepreneurial spirit, unrivaled network and transformational leadership style. Expect to hear insights into how he’s identified new markets, engaged stakeholders and how he’s challenged legacy players to win market share. Nowhere else will you find world renown and successful keynote speakers such as Richard Branson and Bert Jacobs along with more than 50 breakout sessions on all the hot industry topics. The benefits of attendance don’t end there—awaiting you in San Diego are practical, take-home tactics from general and breakout sessions, as well as the opportunity to explore cutting-edge products and services from multifamily supplier partners during the trade show. Don’t delay — registration for the 2013 NAA Education Conference & Exposition is open. To register for the expo and for more information, such as registration fees, packages and deadlines, visit educonf. naahq.org/emailregister. This gathering of more than 6,200 multifamily housing professionals is the biggest event in the industry and is hitting record-breaking attendance numbers year after year, proving that attendees and suppliers are getting an excellent return on their investment. RH
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come to San Diego for innovations, connections, and inspiration! Don’t miss out on: Sir Richard Branson, Founder, Virgin Group, and one of the most successful businessmen of this generation who will share insights from his experiences. More than 350 suppliers who will be demonstrating innovative gadgets, goods, and services on the market. 50 breakout sessions led by inspiring industry experts. Exciting networking events where you’ll connect with some of the 6,200 conference attendees.
JUNe 19–22, 2013 I SaN DIeGo, ca RegisteR toDay at www.naahq.oRg/aDunits
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the president’s message
Hero grant competition. The proceeds of the prize were donated by her toward the establishment of the Short Line Pocket Park near Montclair Village. She took a leading role in the campaign to establish the Wildfire Prevention District and served on its advisory Board. She served on the Board of Keep Oakland Beautiful and she served on the Public Library Commission as Vice Chair. Clearly Jill was a great find for Meet Jill Broadhurst, EBRHA’s new Executive Director. EBRHA. Her promotion represents BY WAYNE ROWLAND a great vote of confidence in her by EBRHA’s Board of Directors and I look ing issues. In advocating on behalf of forward to being able to work with her the rental housing industry, she gave a as our Executive Director. strong voice to the concerns of rental Returning to this notion of the winowners and helped keep our concerns win transaction, it has always seemed far as part of the dialog. In the process, she from ideal to me that in a business transearned the respect of public officials and action, one party should come out ahead helped EBRHA develop better working and the other wind up a vanquished loser. relationships with them and their staffs. A transaction where both sides win by Beyond working with public officials, getting what they want out of the deal her efforts at building relationships have has always seemed like the best way to also resulted in better collaboration go, so my hat’s off to whoever invented between EBRHA and other civic orgathe win-win concept. nizations and trade associations such I’ve been feeling a little inventive as the Oakland Association of Realtors, myself lately and have thought of someOakland Builders Alliance, Oakland thing that is perhaps even better than the Chamber of Commerce and many EBRHA Executive Director Jill Broadhurst win-win: that is a transaction in which others for which building or housing am very pleased to announce the not only do the parties to the transaction related public policy are an important appointment of Jill Broadhurst as come out ahead as a win-win, but third part of their civic mission. Executive Director of the East Bay parties benefit as well. A great example of Before joining EBRHA, Jill already Rental Housing Association. Her prothis is something that many of our memhad plenty of practice in civic particimotion to this position represents one of pation. For several years, she has been bers do all the time. They buy a property those win-win situations that we hear so active in the Montclair area, where that, because of its poor condition or much about in the real estate business, other circumstances, is bringing down the she lives, through her participation where both sides to a transaction come quality of life in a neighborhood. They fix on the Montclair Safety and improveout as winners. In this case, Jill gains the ment Council (MSIC), which is also the the property up, they terminate any illegal opportunity to put her excellent skills to official Neighborhood Crime Prevenor anti-social activity, they landscape the higher use and EBRHA gains a talented property and return it to market for sale tion Council. She was Vice Chair at its new leader. or as a rental. In this case, the seller wins, founding in 2002 and currently serves By way of background, Jill is a the buyer wins and the entire community as Chair. graduate of Saint Mary’s College in wins. She established its Beautification Moraga where she earned a Bachelor of That’s a win-win-win situation. Committee and has chaired the commitScience degree in Business AdministraThe problem is that although many tee from its inception in 2004. Indeed, tion and Economics. She spent 10 years EBRHA members have been doing this the army of volunteers that are somein marketing, advertising and project for years with very little fanfare, we’ve times seen in Montclair cleaning up management in the food, brokerage, received scant credit for the countless the parks and ridding its scenic roads banking and online music industries. times we have been a and medians of trash Jill initially joined the staff of “Jill’s mission will positive force in improvand debris are a tangible EBRHA in 2011, as Director of Comcontinue to include ing neighborhoods. result of this committee’s munity Affairs and Advocacy. Durcollaborating with Indeed, some EBRHA efforts and a source of ing her tenure in this capacity, she elected officials and members have brought civic pride. represented EBRHA very effectively entire neighborhoods In 2004, Jill was nomi- community groups by collaborating with state and local in order to tell our back from the brink and nated for and won an elected officials regarding various housstory.” many are engaged in Oakland District 4 Local
Win-Win-Win
I
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ebrha.com
Legal Excellence and Dedication to Clients Fighting for Property Owners’ Rights
Landlord-Tenant Disputes & Evictions Rent Board Representation Commercial & Residential Transactions & Leasing Purchase & Sales Agreements Real Estate Litigation Land Use, Zoning & Building Permits Corporate, LLC & Entity Formation Probate, Wills & Trusts
480 9th Street Oakland, CA 94607 Tel 510-625-0100
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UPCOMING EBRHA WORKSHOPS & CLASSES Landlord 101 D ATE & TIME WEDNESDAY, MARCH 6; 1:00 P.M. - 2:30 P.M. SPEAKER Danielle Walker, EBRHA TOPICS • 2013 Laws, Tenant Screening, Evictions, Application
Process, Fair Housing, and more
Landlord 102 D ATE & TIME TUESDAY, MARCH 12;1:00 P.M. - 2:30 P.M. SPEAKER Danielle Walker, EBRHA TOPICS • Licenses and Fees, Lease Agreements, Deposits, Rent
Increases, Oakland RAP Form, Addendums, Legal Notices
How to Prepare for & Win in Small Claims Court D ATE & TIME TUESDAY, MARCH 19; 2:00 P.M. - 3:30 P.M. SPEAKER Clifford Fried, Fried & Williams LLP TOPICS • Filing the Complaint, Defending the Complaint and Filing
a Defendant’s Claim, Gathering Evidence/Trial Prepara tion, Trial Presentation
Tenant Screening & Introduction to EBRHA.com D ATE & TIME WEDNESDAY, MARCH 27; 2:00 P.M. - 3:00 P.M. SPEAKER Danielle Walker, EBRHA TOPICS • Introduction to CIC Portal, Downloading Operational & Termination Forms, Accessing Benefits & Discounts, Tenant Screening & Interpreting Credit Reports
All classes and workshops are held at the EBRHA Education Center 360 22nd St., Suite 240, Oakland Cost (per class/workshop) Members: free, Non-members: $49 Registration Danielle Walker, dwalker@ebrha.com, 510.318.8300
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such positive activities as I write this. While there are many positive stories of investor contributions to the quality of life in residential neighborhoods, unfortunately, the only thing that seems to stand out for public scrutiny are the negative newspaper stories about “slumlords” who won’t maintain their property or who allow tenants to engage in illegal activity. I cringe every time I come across these stories in the newspaper. Many bad and ineffective laws have been written to address the issues created by neglectful property owners that end up ensnaring responsible property owners instead. And this is not entirely the fault of lawmakers, as they can only make law based on the information that they have. We have to accept the fact that for too long our story has been missing in action. EBRHA is changing this. The first steps in doing so are already underway, and the selection of Jill Broadhurst as Executive Director is a part of that process. Her mission will continue to include collaborating with elected officials and community groups in order to tell our story. We want to make sure they understand that our participation with them or our presence in their neighborhoods — which are our neighborhoods too — make them the third win in the win-winwin transaction. RH Wayne C. Rowland is the President of EBRHA and is an avid representative of issues in the community. He has over 30 years of real estate investment experience. He is a graduate of San Francisco State University with a degree in finance.
JOBS ARE WAITING ON EVERY FLOOR. 300,000.
That’s the enormous number of new jobs the apartment industry will create this year. Jobs in construction, operations, leasing, management and skilled trades make this the welcome good news that directly impacts your community. After all, every 100 apartments built mean, on average, 116 new full-time jobs. $5.5 million in wages. And $3.3 million in combined federal, state and local tax revenue and fees. Bring this success home. Up to half of all new households this decade will be renters – not necessarily because they have to,
but because they want to. In fact, 86 percent of household growth over the next three decades will be those without children – young professionals and empty nesters, the people most likely to choose apartment living. With your help, the apartment industry stands ready to meet the demand of people in your community who want apartments – and the people who want the local jobs from building them. It’s time to rethink our public policy. It’s time to support apartments, and the jobs they generate, in our communities.
www.nmhc.org
www.naahq.org
APARTMENTS CREATE JOBS THAT LIVE HERE.
on the small scale
Housing Market Roars Back
Low rates, rent appreciation and high demand make the healthiest housing market the East Bay has seen in a while. BY GRANT CHAPPELL
T
he 4th quarter historically trends down both on number of deals and often on price in the East Bay. Last year was different, however, and in the five years of writing this column, I’ve never been so taken by the figures you will read about here. Growth Worth Celebrating Oakland achieved five consecutive quarters of growth in average sales price, representing the longest span since 2003 14 RENTAL HOUSING
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to 2004 when we saw eight consecutive quarters. This is quite an accomplishment to celebrate in reflecting on the eight consecutive declining quarters starting in Q2 of 2007 to Q2 of 2009. After that, we fluctuated in the low $200 to high $200k’s on average price before finally passing an average of $300k in Q3 of 2012. On top of that, we missed passing the $400k mark by $701. Joining Oakland, nearby Berkeley
ebrha.com
similarly achieved an average price of $739,564, the highest in four years. When I first started reporting in early 2007, I used to comment on the anomalies, or sales in excess of $1,000,000 that potentially skewed the numbers. We will get to those shortly. Almost all three cities generated increases in the number of transactions, both in comparing year to year and from the previous quarter, with Berkeley the only exception quarter to quarter with one transaction lower. Rents also continue to make headlines on both sides of the bay. San Francisco continues to post double digit increases in rents year to year, including a whopping 22% according to RealFacts spanning November 2011 to November 2012. RealFacts also noted that rents tapered off by a negligible 1% at the end of the year in San Francisco. The East Bay has followed suit, as many tenants seek comparable housing in a less competitive environment (and dare I say better weather?). The Fed voted recently to keep interest rates unchanged and further quantitative easing, essentially maintaining their policy enacted since the financial collapse of 2008. With unemployment still high nationally, I do not see this policy changing in the near future. On the state level, California’s “Homeowner Bill of Rights” went into effect on January 1, 2013. This only applies to owner occupied properties, so I would expect minimal effect on the local 2 to 4 unit market. Furthermore, the days in which more than 80% of the transactions in Oakland were distressed in some capacity appear to be behind us. Nationally, foreclosures are down almost 20% from a year ago, a vastly different figure from previous years in which they increased by a similar amount. The Numbers In Oakland, the number of transactions increased by 14% from 98 in Q4 of 2011 to 112 in Q4 of 2012. The average price also skyrocketed by an astonishing 66% from $238,581 to $399,299 over the same time period, an unprecedented achievement year to year. From Q3 of 2012 to Q4 of 2012, Oakland saw a
PHOTO: ESTEBAN CORTEZ
COLUMN
sales price 20% increase in price from $333,831 and a 9% increase in transactions from 102. I admit that I was shocked to see the figures. Out of curiosity, I checked on how 2 to 4 unit properties had traded North of $1.2 million in Oakland over the last 10 years. The answer is 29. In December, a fourplex located at 6415 Snake Road traded for $1.875 Million at approx 13.6 GRM and in the high $300/ft. range. Rent control exempt and with condo map in place, it traded just $25,000 less than the asking price. This actually does not sound that high when looking at a small number of 5+ unit apartment buildings that have sold for more than $300/ft. and similar GRM’s in Oakland over the last year. Berkeley saw a 50% increase in the number of transactions from 14 to 21 year to year for a 20% increase in average price from $613,062 to $739,564. While the number of transactions decreased by one deal compared to Q3 of 2012, the average price substantially improved by 33% from $554,522 to $739,564. I checked how many 2 to 4 unit properties had traded North of 1.2 Million over the last 10 years in Berkeley and was not surprised to see that 33 sold, just four more than Oakland. Furthermore, 1418 Spruce, a landmarked Victorian fourplex traded for $1.6 million in December. While it sold for $250k less than the asking price, it skews the average price higher along with a number of other properties selling very close to $1 million. In Alameda, the number of deals increased from Q4 of 2011 to Q4 of 2012 by 7% from 13 to 14, while the average price decreased 8% from $586,615 to $536,277. Quarter to quarter, Alameda saw a larger drop in price of 11% from $603,942 and slightly larger increase of 16% in the number of transactions from 12 to 14. I also checked on the number of transactions trading for more than $1.2 million in the last 10 years and discovered that six have sold, the last one in 2008. To be fair, I am trying to conclude that Alameda is less prone to larger swings in price than Oakland and Berkeley. With few units and no rent control, the number of transactions each quarter rarely comes close to or surpasses Berkeley.
Source: NAI Northern California
transactions - alameda & berkeley
transactions - oakland
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The nation’s #1 multifamily lender is lending in your backyard.
Conclusion Moving forward, I do not see a formula for similar price appreciation this year. Low rates, rent appreciation and high demand for housing in a strong local job market, it’s hard to see how we can continue to see such high appreciation in price. We are still way off the peak years as Oakland used to record average prices in the $600k’s, Berkeley in the $700k and $800k’s and Alameda in a similar range. Frankly, I hope we do not get back to those prices unless wages and affordability justify those levels. We all know the outcome when the bubble pops. On a positive note, this is the healthiest the housing market has felt in a while and the biggest gripe I hear from fellow brokers and clients: there is no product out there. RH Grant Chappell is the Vice President of NAI Northern California. He can be contacted at 510972-4941.
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WWW.CRANEMANAGEMENT.NET Lic#01791769
Spring Social Mixer Come mix, mingle and network with EBRHA members, board, staff and industry partners at our next social mixer. DATE WEDNESDAY, MARCH 6 L OCATION LORING CAFE 37 GRAND AVE. OAKLAND TIME 5:30 P.M. – 8:00 P.M.
UPCOMING 2013 MIXER DATES Wednesday, June 5, 5:30 P.M. - 8:00 P.M. Thursday, September 5, 5:30 P.M. - 8:00 P.M. Wednesday, December 4, 5:30 P.M. - 8:00 P.M. For more information, contact the EBRHA office at (510) 893-9873. We hope to see you there!
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FEATURE
Bill Bagnell is EBRHA’s immediate past President and owns property in the Bay Area 18 RENTAL HOUSING | MARCH 2013 | ebrha.com and Pennsylvania. He has been doing his own taxes since he received his first paycheck.
Turbocharge YOUR TAXES Author’s disclaimer: I’m not a tax accountant, a tax attorney, a registered tax preparer, or in any other way certified, registered, or licensed to give specific tax advice. Just as Champagne bottles say, “Caution – contents under pressure;” paper cups of coffee say, “Caution – hot coffee can burn you;” or gyms suggest you check with your doctor before starting an exercise program; you should understand that the contents of this article may be under pressure, scalding hot, or cause a heart attack if used unwisely.
M
any of us — myself included — have been successful in our rental housing business by doing our maintenance, repairs, and remodels ourselves, rather than hiring firms or individuals to do it for us. The reason is simple: why pay a plumber $100 or more to fix a leaky faucet when we can change a washer in 10 minutes? Some of us seem to have been born with the ability to make small and large repairs, and others have learned how one way or another. I suspect that all of us who do some or all of our own work get some sort of pleasure and sense of accomplishment from doing these jobs,
partially from being able to do the work and partially from the money we save. On the other hand, others hire professionals to do everything. If that is you, then this article may not interest you. Just continue to pay your tax accountant and tax attorney and consider the money well spent. After all, changing a faucet washer is a complex, daunting task, just like filing income tax returns. Both are best left to the experts. The faucet you fix may fail and ruin the carpet, just as the tax return you prepare may be audited and ruin your bank account. I started fixing faucets and much more complex things around the house as a kid. I started filling out my income tax return when I received my first paycheck. Now, many years later, I continue to do my own tax returns, which now involve my personal returns with Form 1040 plus Schedules C and E, and Form 1065 for three partnerships. I no longer use a pen, a calculator, paper forms, federal and state instructions, and a tax guidebook. I use TurboTax Premier for the personal return and TurboTax Business for the partnerships. To me, it’s as easy as fixing faucets, and I don’t get my hands dirty. ebrha.com
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PHOTO: BILL BAGNELL
Doing your own taxes may be ideal for those who enjoy saving money and the satisfaction of conquering challenges. BY BILL BAGNELL
“Doing your own taxes is not for everyone, but if you are fixing your apartment faucets or making other do-it-yourself repairs, you are already someone who believes in saving money and enjoys the satisfaction of conquering another challenge.” Is it Better to Use a Professional?
The dubious may say that their taxes are too complicated, and the risk of paying too much tax or being audited is too great, to not use a professional. For years, Money Magazine did a test by creating a hypothetical family and submitting their finances to a collection of tax preparers, CPAs, tax attorneys, and so on. As you might expect, the results were all over the map. Some returns had outright errors, some preparers found many more deductions than others, and there was general disagreement over aspects of the tax code. There’s a risk even with professionals. When I retired from a salaried job and started working full time with my rental properties, I talked with a tax accountant to make sure I understood the deduction limitations for passive activities relating to rental real estate and how that is affected if you qualify as a real estate professional. I ended up strongly disagreeing with the accountant on this issue. As it turns out, my reading of the IRS rules was correct and the accountant’s was dead wrong. I don’t want to discuss the details of the IRS rules — most of you are quite aware of this area already — but it confirmed my belief that I could read and interpret the rules as well as anyone. Having confirmed the rightness of my approach, I continued to use TurboTax. There are other tax software products, but TurboTax is the most popular and the product I’m familiar with.
TurboTax Versions
These versions of TurboTax do not support rental properties: Online, Tablet, Basic and Deluxe. If you are filing a personal return with a Schedule E for your rental properties, use TurboTax Premier. Premier also supports other investment income and personal tax situations. TurboTax Home & Business provides all the features of Premier, plus support for a single-owner LLC and other business income you need to report on Schedule C. TurboTax Business can be used if you are filing for a multiowner LLC, a partnership or a corporation. You will also need TurboTax Premier or Home & Business for your personal taxes. TurboTax Premier or Home & Business include one state return in addition to the federal return. If you have property or businesses in more than one state, you can purchase additional state modules. You will have to purchase state modules as needed with TurboTax Business. For a small additional fee you can purchase Audit Defense. If 20 RENTAL HOUSING
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you are audited, TurboTax’s tax professionals will review your return, defend your return with the IRS, and handle all correspondence involved, meaning you won’t have to meet with the IRS in person.
What TurboTax Produces
TurboTax Premier or Home & Business produces individual returns – Form 1040 and all supporting forms and schedules. The state modules will produce the appropriate state forms. TurboTax Business produces Form 1065 for filing, Schedule K-1 for partners and investors, and all supporting forms and schedules. You will use your Schedule K-1 in TurboTax Premier or Home & Business and send K-1s to your other partners or investors. The state modules will produce the appropriate state forms. TurboTax Business also creates W-2s for your employees and 1099-MISC for contractors. However, these forms have to be sent before the end of January, so doing them in TurboTax Business is something to consider for next year, not this year. E-filing is sending your return to the taxing agency electronically, without printing and mailing all the forms. All versions of TurboTax will e-file your federal returns and will e-file returns for states that accept e-filing (most do, but as of last year, Pennsylvania required that I mail my PA-65, the state version of the federal 1065). When I used to print out my returns and all supporting documents, I ended up with a stack of paper an inch thick. TurboTax can save your returns as PDFs so you never need to print that stack of paper.
What You Need to Get Started
Prior year tax returns: To complete your 2012 return you will need information (accumulated depreciation, carry-forward losses, etc) from your previous returns. If you used TurboTax in previous years, you can transfer this information into your current return. If this is your first year using TurboTax, you will need to manually enter the data by referring to your previous returns. Your personal and business records from 2012: If you use Quicken, QuickBooks, Mint or some other products, you can import your 2012 data into TurboTax Premier or Home and Business. TurboTax Business can import data from QuickBooks but not Quicken. Your tax documents: You likely have received tax documents (W-2, 1098, 1099, etc.) from your employer, social security, banks, housing authorities, and other sources. TurboTax can import many of these documents directly from employers, banks and other sources. Doing this is easy and eliminates data entry errors.
Doing It
Every time you start a TurboTax program, the software will check to see if there are any updates. Let it install these updates as tax forms and instructions often change in the early part of the year. The programs will walk you through several optional
approaches to completing your taxes. If you are not sure of all the steps, you can chose a path that will guide you. If you are more comfortable with your tax situation, you can skip the guided steps and go directly to the areas you need to address. If you have been keeping your rental property operating expenses in categories that match Schedule E or Form 1065, then your job will be easier than if you use some other expense scheme. It makes sense to look at these forms and see if you can rearrange your bookkeeping system to match. When you get toward the end, TurboTax will check your return for errors, recommend possible missed deductions, compare your results to national averages, estimate how likely you are to face an audit, and otherwise ensure that you have created an accurate return. However, TurboTax can’t make some decisions for you. For example, if you replaced or repaired a roof, you need to decide if this is a capital improvement that has to be depreciated over time, or a repair that should be expensed in the current tax year. Once you decide which way to go, TurboTax will guide you in choosing the correct depreciation schedule and compute the annual depreciation. If you don’t have a good computer backup process, now is the time to take care of that. After all, you don’t want to do all that work and then lose it with a computer failure. Consider one of the automatic off-site (in the cloud) backup products. Because it is automatic, you’ll never forget to back up, and if
your computer is harmed or crashes, you can easily restore all your data to a new computer.
In Summary
I’ve saved thousands of dollars over the years by doing my own taxes, but I got into it by “cooking a frog.” If you drop a frog in boiling water, it’ll just jump out. But if you put a frog in cold water and slowly increase the temperature, the frog will be cooked. I started simply by just doing basic tax returns. They increased in complexity, first with investments, then with my own rental properties, and finally with the partnerships. You might consider doing the same thing. Start with TurboTax for your personal return this year and graduate to TurboTax Business for your multi-owner LLCs after you become comfortable with the process. Doing your own taxes is not for everyone, but if you are fixing your apartment faucets or making other do-it-yourself repairs, you are already someone who believes in saving money and enjoys the satisfaction of conquering another challenge. RH
The information contained in this article is general in nature. Consult the advice of a professional for any specific problem. Bill Bagnell is the immediate past president of EBRHA’s Board of Directors. He owns and manages rental property in Oakland, California and Easton, Pennsylvania. He can be reached at bill@bbagnell.com or 510-504-5401.
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FEATURE
WELCOME NEW INDUSTRY PARTNERS
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FEATURE
24 RENTAL HOUSING
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THE 2013
TAX GAME (AND YOUR RENTAL PROPERTIES)
Tax benefits available to rental property owners can be maximized with proper tax planning. BY SCOTT M. ESTILL
A
recent report from the Tax Policy Center estimated that 77.1% of all American taxpayers would be paying higher taxes in 2013 over 2012. The average tax increase is estimated to be $1,257. And real estate investors and professionals are right in the crosshairs of these new tax provisions. Here is what to lookout for in 2013 concerning tax planning and changes for real estate investors: NEW TAX BRACKETS AND CHANGES Congress made numerous changes for all taxpayers for 2013. The first change involves a new tax bracket (39.6%) for all taxpayers who earn in excess of $400,000 (single) or $450,000 (married filing joint). In addition, those earning in excess of $200,000 (single) or $250,000 (married filing joint) will see reductions in the amounts of personal itemized deductions and exemptions (for self, spouse and other dependents). In addition, all employees will pay an additional 2% on payroll taxes in 2013, as the 2% reduction in place for 2011 and 2012 was allowed to expire. NEW RENTAL INCOME TAXES As a part of the Affordable Care Act —
the health care law that was passed in 2010 — there is a 3.8% surtax in effect beginning this year on any net rental income. This surtax applies only to those taxpayers who earn more than $200,000 (single) or $250,000 (married filing joint). If you fit into this income category, you will need to make certain that all expenses are claimed for your rental properties. If you have a net profit on your rental property activity and are a “high” income earner, you will be faced with paying income taxes on your net rental income at whatever tax bracket you are in (up to 39.6%), along with State income taxes (California is the country’s highest with a potential maximum state income tax of 13.3%) and the investment surtax of 3.8%. Without proper tax planning and an attention to details, it is very possible for a “wealthy” California real estate investor to be paying in excess of 50% in tax on any net rental income. Thus, it is critical in 2013 to make sure you are capturing all tax deductions, including maximizing your depreciation deductions. For instance, many rental property owners use a “cost-segregation” analysis with respect to depreciation. A “costsegregation” analysis (sometimes called ebrha.com
Photo: Alan Cleaver
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“component depreciation”) allows taxpayers who purchase a parcel of real estate with personal property to accelerate the depreciation of certain items of personal property. For example, if you purchased a $200,000 condominium, you would be allowed a depreciation deduction of about $7,272 per year, assuming no value to the land and using a 27.5-year depreciation period. If that same condominium came with $20,000 of personal property — such as a refrigerator, washer, dryer and other appliances — the depreciation deduction in the first year would be $10,545. This translates to $4,000 for the appliances and $6,545 for the condominium using a basis of $180,000 — an increase of $3,273 in tax deductions over a tax return which did not use this cost-segregation analysis. Furthermore, with “bonus” depreciation in play again for 2013, the amount of the deduction may be even higher, as some personal property purchases will qualify for an immediate 50% depreciation deduction. Thus, 2013 is shaping up to be a good year from a tax perspective to purchase some new appliances and other personal property for your rental properties. CAPITAL GAINS TAXES ON SALE OF RENTAL PROPERTIES As if the increases in income taxes are not enough, Congress also saw fit to raise the capital gains taxes on certain real estate and other investors. Beginning this year, all taxpayers who are in the 39.6% tax bracket will be paying an additional 5% on their long-term capital gains in 2013 and future years (from 15% to 20%). A long-term capital gain is considered to be any gain from an asset that was held at least one year and one day before it was sold. In addition, the 3.8% surtax can also apply in these situations for an added tax increase. Here is an example of just how much tax liabilities the sale of a rental property can create without any tax planning: Property purchased June 1, 2010: $200,000 Property sold February 1, 2013: $250,000 Depreciation claimed: $15,000 If the taxpayer who sold this property was in the top tax bracket, he or she would owe capital gains taxes of $10,000 (20% of the $50,000 gain) to the IRS, along with a 3.8% surtax on the gain ($1,900), along with State income taxes as well ($6,650 if taxed under California’s top tax rate). Finally, the depreciation claimed in the past ($15,000) can be taxed at a rate up to 25% (or $3,750 in this case). If you are not happy with these tax rules on the sale of your rental property, you thankfully have some options. First, you are permitted to do a like-kind exchange under the tax rules. This is also called a “1031 exchange” and was named for the Section 1031 of the Internal Revenue Code. Basically, the like-kind exchange rules permit you to “trade” your piece of real estate for other real estate and defer any capital gains. If you wish to utilize this very favorable tax provision, you must understand all rules concerning the timing of the purchase and sale transactions and it is strongly recommended that experi26 RENTAL HOUSING
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enced tax counsel be engaged to make sure that no mistakes are made. If the like-kind exchanges are not to your liking, you are also permitted to do an installment sale (an “owner carry” sale) in which you sell the property and hold the note. In this situation, you are only taxed on the income you receive each year, thus spreading out the tax liabilities over a number of years. Please be aware that the tax rates in the year that the income is received controls. Thus, if tax rates increase in the future, the installment sale income received in future years will also be taxed at higher rates. MANAGE YOUR PASSIVE ACTIVITY LOSSES Not all rental property owners get to claim losses from their rental properties on their tax returns. This is the case because rental properties are considered to be “passive activities.” The rules are generally straight-forward here: if you earn less than $100,000 per year, you can claim a maximum loss from your rentals of $25,000 per year. This maximum loss is then reduced by $1 for every $2 your income exceeds $100,000, until it is lost in full once your income reaches $150,000 per year. The only way to get around this rule concerning losses is to qualify as a real estate professional. ARE YOU A REAL ESTATE PROFESSIONAL? All real estate investors want to qualify as a real estate professional for tax purposes, as there are major tax advantages in doing so, including the ability to claim all rental property losses, no matter the amount. However, it is somewhat difficult to qualify and the IRS is auditing many who claim to be a real estate professional. There are two requirements and you must satisfy both of them in order to qualify: 1) more than ½ of the time you spent on all business activities was spent on real estate activities; and 2) you worked at least 750 hours during the year in real estate activities in which you materially participated. For example, if you have a part-time job in retail (i.e. not in real estate) and you work 1,000 hours during the year, you would need to work at least 1,001 hours on real estate in order to be able to claim the “real estate professional” status. If you do not qualify as a real estate professional, all is not lost. First, you may be able to qualify for a reduced loss, depending upon your overall income. Second, even if your income is “too high” to claim the losses in the current year to deduct against other taxable income, you still can retain the losses and carry them forward until a year in which they can be used. In most cases, this is the year in which the real estate is sold, as all suspended losses can be used when the property is sold (and will thus reduce any capital gains or income taxes owed on the gains associated with the sale). KEEP YOUR MONEY! There are many tax benefits available to rental property owners and these can be maximized with proper tax planning. However, it requires some work. In my opinion, it is imperative for all rental property owners to understand their own financial plan (i.e. are the rental properties being held for quick cash via
a “flip” versus long-term holds versus cash flow, etc.) and then craft a tax plan based upon the financial plan. The tax plan should include appropriate entities to hold title, record-keeping issues, maximization of tax deductions via repairs versus improvements and other tax strategies, and understanding the options available when you want to sell the investment. If you understand the rules of the tax game and work with knowledgeable tax professionals, there is no reason that you cannot win the tax game with your rental properties and pay the least amount in taxes that the laws require. RH
The information contained in this article is general in nature. Consult the advice of a professional for any specific problem. Scott M. Estill serves in an “Of Counsel” role to his Denver-based law firm Estill and Long, LLC. He is a former IRS Senior Trial Attorney in Chicago and Judicial Clerk in the Illinois Appellate Court. He has also written several books on taxes such as “Tax This! An Insider’s Guide to Standing up to the IRS” and “The Tax Compliance Guide for Small Businesses.”
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1031 exchanges
They argued their investment intent was evidenced by their request in the purchase and sale agreement that the seller of the property apply to the local municipality to use the property as a “bed and breakfast” at buyer’s expense. Taxpayers did not submit evidence that such request or application was made, and their acquisition of the property was not contingent upon the request being made. The court found the contractual language to be a trivial addition inserted into the contract in order to procure non-recognition treatment for the exchange. The exchange was disallowed. Second, the properties must be likekind to each other. With real estate as a backdrop, the definition of like-kind Meeting the deadlines and formal requirements of is generous: vacant land is like-kind to industrial, which is like-kind to office, a 1031 Exchange can be a challenge, but it remains which is like-kind to retail, which is likea powerful tax deferral tool for investors. kind to multi-family. If you’re exchanging BY TERESA MOSS FLUEGEL other property — depreciable, tangible, personal property held for investment cannot escape the pervasive drumbeat of (e.g., classic cars or artwork) or for use in the 1031 exchange or Starker exchange a trade or business (e.g., farm equipment, (the latter referring to the 9th Circuit over-the-road tractor trailers) — the Court case of 1975 that paved the way properties must be of a like class to one for the delayed exchange). another. The assets are of a like class if In its few short words, Section 1031 they fall within the same category in the lays out three general requirements that North American Industry Classification a taxpayer must meet to achieve taxSystem (NAICS) or within the same Gendeferral. eral Business Asset Class as defined under First, the properties that are sold Rev. Proc. 87-56. and purchased in the exchange must Third, the transaction must be strucbe properties that are held for investtured as an exchange of properties. Perment or for use in a trade or business. haps the most formal requirement of this The property cannot be personal use section, the exchange requirement, can be property or a principal residence. The Teresa Moss Fluegel achieved by using one or more of the safe inquiry will turn on whether a taxpayer nternal Revenue Code Section 1031 harbors defined at Treasury Regulation can demonstrate that their intent was to contains a mere 1,421 words — a 1.1031(k)-1. Most taxpayers are familiar hold the property for investment — and fraction of the more than 3.4 milwith the Qualified Intermediary safe harwhether their actions evidenced that lion words contained in all of Title 26 bor wherein a third party facilitates the intent. If it’s clear by your actions that of the Code — yet the significance and exchange by “acquiring and transferring” you’ve acquired the property strictly for the impact of those words cannot be both the taxpayer’s old property (the re-sale, to hold as dealer property, or for overemphasized. Investors have enjoyed relinquished property) and the taxpayer’s personal use, check with your CPA or the advantages offered by Section 1031 new property (the replacement property). tax advisor before attempting to assert since 1921. The overriding principle The Qualified Intermediary needs to be tax-deferral. is relatively simple and has changed an unrelated party to the A recent tax court little since the code was first enacted. “The breadth and taxpayer and cannot have cases highlight this Continuity of investment (exchanging reach of 1031 is acted as an employee, issue. In Yates v. Comone relatively illiquid asset for another striking. Real estate attorney, accountant, missioner (T.C. Memo illiquid asset) should not result in curinvestors cannot investment banker or bro2013-28), taxpayrent recognition of gain. escape the pervaker, or real estate agent or ers moved into their The breadth and reach of 1031 is sive drumbeat of the broker within two years of replacement propstriking. Real estate investors at every 1031 exchange or the taxpayer’s transfer of erty three days after level and in every area of the country Starker exchange.” relinquished property. acquiring the property.
A Powerful Tax Tool
I
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In addition to acquiring and transferring the properties, the Qualified Intermediary, through a trust or escrow account or other exchange fund, will hold the proceeds of sale until replacement property is acquired. The taxpayer’s rights to receive the sale proceeds must be limited to certain specific instances (referred to as the (g)(6) restrictions) in order for the taxpayer to avoid being deemed to have constructive receipt of the cash, and as a result, be deemed to have sold the property and not exchanged it. The Qualified Intermediary will generally supply the taxpayer with a standard set of documents and will assist its customers in navigating through the transaction. Section 1031 was modified as part of the 1984 Tax Reform Act to include strict time limits to identify and acquire replacement property. The 45-day identification period requires that the taxpayer identify a limited number of potential new properties within 45 days from the date the relinquished property is transferred [§1031(a)(3)(A)]. The 180-day exchange period requires that the taxpayer acquire one or more of the identified properties by the earlier of 180 days from the date the relinquished property is transferred, or the due date (determined with regard to extensions) of the taxpayer’s return for the taxable year of the exchange [1031(a)(3)(B)]. Meeting the time deadlines and the formal requirements of the safe harbors can be challenging. Taxpayers are well served by discussing issues with their legal and tax advisors in advance of closing and with their Qualified Intermediary throughout the process. With capital gains rates levels higher than they’ve been in many years and the new 3.8% surtax on net investment income, in addition to state taxes, Section 1031 remains a powerful tax deferral tool for all types of investors. RH
The information contained in this article is general in nature. Consult the advice of a professional for any specific problem. Teresa Moss Fluegel is the Senior Vice President of Chicago Deferred Exchange Company (CDEC). Teresa is responsible for providing trust and consulting services to attorneys, accountants, and real estate and tax professionals.
UPDATE! IN AN ONGOING EFFORT TO KEEP MEMBERSHIP DUES LOW, STARTING IN APRIL EBRHA WILL BEGIN CHARGING A FEE FOR SPECIALIZED WORKSHOPS. Landlord 101 & 102, and Intro to Website & Tenant Screening will continue to be free. Other workshops will have fees, starting at $39.00 for members and $69.00 for nonmembers. These fees will allow us to continue to offer indepth, advanced workshops that keep you at the forefront of the industry. FOR MORE INFORMATION, CONTACT US AT: NEWS@EBRHA.COM OR CALL (510) 893-9873.
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esq. & a
A Bedbug Dilemma
Blaming a tenant for a bedbug infestation may be a lot harder than expected. BY VARIOUS AUTHORS
However, if the landlord is able to demonstrate that the source of the infestation is, in fact, the tenant complaining, and there is no other explanation for how the bedbug infestation occurred (no bedbugs in any other unit in the building), then you would have a more likely chance of successfully requiring the tenant to pay for the inspection and remediation costs. The best approach would be to deduct from the security deposit after the tenant vacates (if possible). This would alleviate the potential conflict that often arises when a tenant disputes the demand for reimbursement for out of pocket costs for landlord repairs/pest remediation. —DANIEL BORNSTEIN
Q
A potential tenant left a holding deposit for one of my units, but he didn’t show up to sign the lease as scheduled and won’t return my calls. What is advisable in this situation?
Q
My tenant informed me that her rental unit has bedbugs. She signed an addendum at the beginning of the lease agreement stating that the unit is free of bedbugs. She would like for me to cure this issue. Can I charge her the cost of the inspection and work done after I resolve this?
A
The answer depends upon whether you have identified the source of the bedbug infestation. If the bedbugs 30 RENTAL HOUSING
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migrated from another unit into the current tenant’s unit, it may prove difficult for you to justify charging the tenant the cost of the inspection and subsequent remediation work. The tenant may not have caused the infestation but may merely be a victim of the infestation. Since the landlord has the ultimate responsibility for ensuring that there is no vermin infestation within the building and to remedy it (warranty of habitability), it would be inappropriate to assess the charge onto the tenant.
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A holding deposit is a deposit paid by a prospective tenant to hold a rental unit for a stated period of time. During this period, the landlord should not rent the rental unit to anyone else. Once the period expires, then the landlord can rent the unit to someone else. So in your situation, it should be okay to rent the unit to someone else since the prospective tenant failed to rent the unit within the scheduled and agreed time. But then what do you do with the deposit? In general, it is a good idea to put any agreement to hold a rental unit in exchange for a deposit in writing. The written agreement should clearly set forth all of the terms and conditions regarding the arrangement. Here are some terms and conditions that may be considered in such an agreement: 1) the amount of the holding deposit 2) the time period that the rental unit will be held 3) what the prospective tenant must do to rent the unit within the time period (i.e. sign a rental agreement, pay the first month’s rent, pay the security deposit, etc.) 4) what happens if the tenant does not rent the unit within the time period (i.e. landlord may rent to another prospective tenant, landlord may keep all or a por-
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Do you need help with these Rent Adjustment issues? n Responding to tenant petitions n Preparing landlord petitions n Hearings or mediations Assistance is available to qualified low-income landlords through the Alameda County Bar Association Volunteer Legal Services, Mon. - Fri., 8:30 a.m. to 5 p.m. Eligibility is based on 75% of median income for Alameda County.
Lic. #686707
(510) 302-2222
Bay Area Contract Carpets, Inc. Competitive Pricing Family Owned and Operated for Over 30 years Free Estimates Property Management Specialists 100’s of Rolls of Carpet and Vinyl in Stock Licensed, Bonded, and Insured 15,000 sq foot showroom and warehouse Fast, Professional, Guaranteed Installation www.bayareacontractcarpets.com
(510) 613-0300
Not Your tYpical attorNeY
is What Sets Our Law ➥This Firm Apart from the Rest: • Affordable attorney with landlord/tenant expertise. • We will work with you to devise a workable solution to solve tenant issues. • Dependable, skillful and caring approach to tenant problems.
➥
Additional Discounts for RHA Members
The Shepherd Law Group Call and Hear the Difference
Michael Shepherd 4100-10 Redwood Road, Suite 155 Oakland, California 94619
Voice: (510) 531-0129 Fax: (510) 530-5931
theshepherdlawgroup@netzero.com ebrha.com
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RENTAL HOUSING 31
MAISEL PROPERTY MANAGEMENT, Inc. Serving Oakland • Level of service and fees tailored to your needs. • We can locate qualified tenants for your vacancies. 5942 MacArthur Blvd. • Experienced with Section 8 tenants. Oakland, CA 94605 • Over 35 years of experience. • Residential-Property Management in Oakland.
MPM
EAST OAKLAND
Specialist!
510-562-8600
UPCOMING EBRHA MEETINGS & EVENTS
Political Affairs Meeting DATE TUESDAY, MARCH 5 TIME 10:00 A.M. LOCATION EBRHA EDUCATION CENTER 360 22 ND ST., SUITE 240, OAKLAND INFO CALL JILL BROADHURST FOR MORE INFO @ 510-893-9873
tion of the deposit, etc.) 5) whether the holding deposit will be applied toward the first month’s rent If there is no such agreement and you have not incurred any additional expenses by holding the unit for the prospective tenant, then you should return the entire holding deposit. However, if you have incurred additional unnecessary expenses and have a clear written agreement authorizing you to do so, then you may consider deducting those expenses from the deposit and returning any balance of the deposit with a written explanation of the deductions. —STEVEN C. WILLIAMS
The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Daniel Bornstein is an attorney with Bornstein & Bornstein and can be reached at 510-836-0110 x1007 or www.bornsteinandbornstein.com. Steve Williams is an attorney with Fried & Williams LLP and can be reached at 510-625-0100 or www.friedwilliams.com.
Spring Social Mixer DATE WEDNESDAY, MARCH 6 TIME 5:30 P.M. - 8:00 P.M. LOCATION LORING CAFE 37 GRAND AVE. @ BROADWAY INFO CALL EBRHA OFFICE FOR MORE INFO @ 510-893-9873
General Membership Meeting DATE TIME LOCATION TOPICS
SATURDAY, MARCH 16 10:00 A.M. - NOON EBRHA EDUCATION CENTER 360 22 ND ST., SUITE 240, OAKLAND PARKING PROVIDED
• Legal Q & A, Clifford Fried, Fried & Williams LLP • ADA Compliance & Discrimination, Chad Lupia, Sullivan, Curtis & Monroe • Pest Challenges & Rental Properties, Bob Sater, Terminix
Lic. #414359
RESIDENTIAL & COMMERCIAL *Plumbing Repairs *Fixtures Installations *Water Service Replacements *Sewer Diagnostic Videos *Trenchless Sewer Replacements *Automatic Seismic Gas Valves Installations *Drain Cleaning and Diagnostics *Tankless Hot Water Heaters
The Plumber Referred by Your Friends!
(510)843-6904 www.albertnahmanplumbing.com 32 RENTAL HOUSING
| MARCH 2013 |
ebrha.com
Investment ProPerty Loans • Financing from $100,000 to $700,000 • Up to 30 year Amortization
DP Heating and Air Heating and A/C Repairs 7 Days a Week
510-532-2043
CoNTACT ByroN PhILLIPs TodAy: (510) 647-2131 BPhILLIPs@CooPFCU.org
Lic. # 636826
Serving the East Bay
APPLIED WATERPROOFING SYSTEMS
• Initial fixed rate for 5 years • No Pre-Payment penalty • Max LTV 80% • Personal guarantee is required
Providing Waterproofing Services Since 1985 2001 Ashby Avenue, Berkeley, CA 94703 www.coopfcu.org
Rates and terms are subject to change without notice. Loan margin, rates and terms are based on the amount of the loan and an analysis of the specific characteristics of the property, such as its type, location, operating history, use, age, and construction, as well as the borrower’s financial strength and management experience. This information is provided to assist real estate professionals only, and is not intended for distribution to or for use by the general public. Annual Percentage Rate (APR)figures are not calculated and is not intended nor should it be construed as an advertisement to promote consumer credit as defined by Title 12 Code of Federal Regulations. Sections 226.2 710_736_AD
Commercial & Residential Buildings Balconies Walkways Garage Coatings
Decks Patios Driveways
Call Neal Golding
(510) 452-3666
nlgolding@pacbell.net LIC#552820
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www.appliedwaterproofing.com
MARCH 2013
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RENTAL HOUSING 33
COLUMN
the green sheet
information & resources RECYCLING & DISCARDS MANAGEMENT
Survey Reveals Solar Energy and Green is In nine in ten (89%) U.S. adults agree that renewable energy sources, such as solar energy, should be a bigger part of America’s energy supply in the future, according to a new Ipsos poll conducted on behalf of Sungevity, a solar electricity company in Oakland. The survey shows that America’s commitment to solar is strong, with 80 percent of respondents expecting their elected officials to support solar energy initiatives and 81 percent believing, regardless of who is in office, the White House and other official federal and state residences should use solar energy. IN A RECENT SURVEY ON CLEAN ENERGY,
“The continued uptake of solar power can drive considerable economic growth for the American economy and provide critical long-term benefits to the environment,” said Danny Kennedy , co-founder of Sungevity and author of new book, Rooftop Revolution, How Solar Power Can Save Our Economy – and Planet – From Dirty Energy. “It’s clear that Americans support and see the bottom-line benefits of solar power. I’d encourage anybody with an interest in saving money, creating jobs and powering their home with clean energy to discover the ease and affordability of incorporating solar energy into their daily lives.” Results of the Sungevity Solar Survey show many respondents see the economic and environmental benefits associated with the wider adoption of renewable energy, with 81 percent agreeing that reducing our dependency on coal, oil, nuclear energy and gas is the right thing to do for the environ34 RENTAL HOUSING
| MARCH 2013 |
ment and the economy. Other key survey findings include: Financial Benefits Are Top Reason for Public Support: Seven in ten (72%) say jobs created in the solar energy industry are better for our economy and our environment than jobs created in the coal, oil, nuclear and gas industries. The majority of Americans (four out of five) believe that the increased use of solar power will reduce household energy costs and will help create local jobs. American Solar Energy Policies Would Lead to Household Savings: Eight in ten (80%) adults agree that the biggest benefits that would encourage support for solar energy are financial in nature, such as reduced energy costs (60%), decreased dependence on the fluctuating cost of fossil fuels (26%), federal/ state tax credits (21%) and increased home value (12%). RH
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City of Alameda 510.749.5840 Albany 510.528.5766 Berkeley 1 - 9 UNITS 510.527.5555 10+ UNITS 510.981.7270 www.ci.berkeley.ca.us/pw/swm.html Emeryville 510.613.8710 Oakland 510.238.SAVE (7283) www.oaklandrecycles.com Household Hazardous Waste 800.606.6606 www.household-hazwaste.org REBATE PROGRAMS
EBMUD 866.403.2683 | www.ebmud.com PG&E 800.933.9555 | www.pge.com/res/rebates LOCAL GREEN ORGANIZATIONS
B.A. Green Business Program 510.567.6770 | www.greenbiz.ca.gov Build It Green 510.845.0472 | www.builditgreen.org Recology 415.875.1000 | www.recology.com StopWaste.Org 877.786.7927 FREE WEATHERIZATION PROGRAMS
Rising Sun Energy 510.665.1501 x17 Spectrum Community Services 510.889.0921 BO - Enterprises 408.354.1900
EBRHA.COM | 510.893.9873
Our Voice Matters! The political efforts of EBRHA come from its Political Action Committee. The EBRHA-PAC is a nonprofit and nonpartisan committee, the purpose of which is to support local ballot measures and candidates that have a positive impact on the rental housing industry.
TO GET INVOLVED OR TO DONATE TO THE EBRHA-PAC, CONTACT JILL BROADHURST:
LEFTOVERS?
Pass Them On. Or Come Shop. Tenants leave things? We receive discards and sell them for reuse. No promises before seeing. We also pick up. 3 acres, well organized.
URBAN RE To End the Age of Waste
JBROADHURST@EBRHA.COM OR VISIT WWW.EBRHA.COM/PAC
900 Murray St nr Ashby/7th, Berkeley 360 days/yr until 7:00PM. Receiving closes 5:00PM. 510-841-SAVE
http://urbanore.com
Beacon Properties
A quick, efficient, reasonable service for apartment owners since 1975
East Bay Property Management & Brokerage Services Since 1990
• We add value to buildings • Experienced and informed • Fully computerized • Integrity and care
Carlon Tanner, Owner/Broker
(510) 839-2067
466 40th Street Oakland, CA 94609 Tel 510-428-1864 Fax 510-601-1917 beacprop@pacbell.net
Jack London Square 510 Third Street, Suite 101, Oakland, California 94607 rh.0110.evictors.indd 1
12/23/09 10:16:33 AM
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community calendar EVENTS & CLASSES
march S
april M
T
W
T
F
S
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
S
M
T
TUESDAY, APRIL 2
Political Affairs Meeting
Political Affairs Meeting
10:00 a.m.
10:00 a.m.
F
WEDNESDAY, APRIL 3
Landlord 101
Landlord 101
Members: Free; Non-Members: $49
Members: Free; Non-Members: $49
1:00 p.m. – 2:30 p.m.
2:00 p.m. – 3:30 p.m.
WEDNESDAY, MARCH 6
WEDNESDAY, APRIL 10
Spring Social Mixer @ The Loring Café
Landlord 102
37 Grand Ave at Broadway
Members: Free; Non-Members: $49
5:30 p.m. – 8:00 p.m.
2:00 p.m. – 3:30 p.m.
TUESDAY, MARCH 12
THURSDAY, APRIL 11
Landlord 102
Oakland Rent Board Meeting
Members: Free; Non-Members: $49 1:00 p.m. – 2:30 p.m.
Oakland City Hall, Hearing Room 1 1 Frank H. Ogawa Plaza, Oakland
THURSDAY, MARCH 14
7:00 p.m.
Oakland Rent Board Meeting
SATURDAY, APRIL 20
Oakland City Hall, Hearing Room 1 1 Frank H. Ogawa Plaza, Oakland 7:00 p.m. SATURDAY, MARCH 16
EBRHA General Membership Meeting 10:00 a.m. - Noon Topics: • Legal Q & A: Clifford Fried, Fried & Williams LLP • ADA Compliance & Discrimination: Chad Lupia, SCM Insurance Services, LLC
T
• Pest Challenges and Rental Properties: Bob Sater, Terminix
EBRHA General Membership Meeting 10:00 a.m. - Noon Topics: • Legal Q & A: TBD • Animal Services: Officer Elena Hackings, Oakland Animal Services • Topic and Speaker TBD WEDNESDAY, APRIL 24
Megan’s Law & Its Challenges in Your Rental Business: Clifford Fried, Fried & Williams LLP Members: $39; Non-Members: $69
TUESDAY, MARCH 19
2:00 p.m. – 3:30 p.m.
How to Prepare for and Win in Small Claims Court:
THURSDAY, APRIL 25
Clifford Fried, Fried & Williams LLP
Oakland Rent Board Meeting
Members: Free; Non-Members: $49
Oakland City Hall, Hearing Room 1
2:00 p.m. – 3:30 p.m.
1 Frank H. Ogawa Plaza, Oakland
WEDNESDAY, MARCH 27
Tenant Screening & Introduction to EBRHA.com:
7:00 p.m.
Danielle Walker, EBRHA Members Only; Free 2:00 p.m. – 3:00 p.m. THURSDAY, MARCH 28
Oakland Rent Board Meeting Oakland City Hall, Hearing Room 1 1 Frank H. Ogawa Plaza, Oakland 7:00 p.m.
Unless otherwise noted, all classes and events are held at the EBRHA Education Center, 360 22nd St., Suite 240, Oakland 36 RENTAL HOUSING
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S
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30
TUESDAY, MARCH 5
WEDNESDAY, MARCH 6
W
Oakland
2012-13 (3.0%)
ANNUAL ALLOWABLE RENT INCREASE
A CPI increase of 3% became
PER I O D
effective on July 1, 2012. Tenants may
JULY 1 ‘12 - JUNE 30 ‘13 . . . . . . . . . 3.0
JAN. 1 ‘02 - JUN. 30 ‘02 . . . . . . . . . . . . 3
only receive one increase in any
JULY 1 ‘11 - JUNE 30 ‘12 . . . . . . . . . 2.0
JAN. 1 ‘01 - DEC. 31 ‘01 . . . . . . . . . . . . 3
12-month period, and the rent increase
JULY 1 ‘10 - JUNE 30 ‘11 . . . . . . . . . 2.7
JAN. 1 ‘00 - DEC. 31 ‘00 . . . . . . . . . . . . 3
JULY 1 ‘09 - JUNE 30 ‘10 . . . . . . . . . 0.7
JAN. 1 ‘99 - DEC. 31 ‘99 . . . . . . . . . . . . 3
California law requires that for tenancies
JULY 1 ‘08 - JUNE 30 ‘09 . . . . . . . . . 3.2
JAN. 1 ‘98 - DEC. 31 ‘98 . . . . . . . . . . . . 3
receiving greater than a 10% increase,
JULY 1 ‘07 - JUNE 30 ‘08 . . . . . . . . . 3.3
JAN. 1 ‘97 - DEC. 31 ‘97 . . . . . . . . . . . . 3
a 60-day notice is required; if the
MAY 1 ‘06 - JUNE 30 ‘07. . . . . . . . . . 3.3
JAN. 1 ‘96 - DEC. 31 ‘96 . . . . . . . . . . . . 3
increase is 10% or less, a 30-day
MAY 1 ‘05 - APRIL 30 ‘06 . . . . . . . . . 1.9
MAR. 1 ‘95 - DEC. 31 ‘95 . . . . . . . . . . . 3
JUNE 1 ‘04 - APRIL 30 ‘05. . . . . . . . . 0.7
JAN. 1 ‘95 - FEB. 28 ‘95. . . . . . . . . . . . . 6
to three times the current annual
JUNE 1 ‘03 - MAY 31 ‘04. . . . . . . . . . 3.6
JAN. 1 ‘94 - DEC. 31 ‘94 . . . . . . . . . . . . 6
allowable rent increase rate.
JULY 1 ‘02 - MAY 31 ‘03. . . . . . . . . . 0.6
cannot take effect earlier than the tenant’s anniversary date. In addition,
notice is required. Owners can only impose “banked” rent increases equal
A MOUN T ( %)
PERI OD
AM O U N T ( % )
FOR FURTHER INFORMATION CONTACT:
Oakland Rent Board | 250 Frank H. Ogawa Plaza | Suite 5313 | Oakland, CA | 94612 510.238.3721 | www.oaklandnet.com
Berkeley 2013 (1.7%) ANNUAL ALLOWABLE RENT INCREASE
P E R IOD A MO UNT
PER I O D A MOUN T
PERI OD AM O U N T
2013. . . . . . . . . . . . . . . . . . . . . . . . 1.7%
2001* $10
1990. . . . . . . . . . . . . . . . . . . . . . . . . $16
2012. . . . . . . . . . . . . . . . . . . . . . . . 1.6%
2000. . . . . . . . . . . . . . . . . . . . . . . . . . $6
1989*. . . . . . . . . . . . . . . . . . . . . . . . 3%
1999. . . . . . . . . . . . 1% (NOT TO EXCEED $8)
1988. . . . . . . . . . . . . . . . . . . . . . . . . $25
1998. . . . . . . . . . . . . . . . . . . . . . . . 0.8%
1987. . . . . . . . . . . . . . . . . . . . . . . . 3.5%
2008. . . . . . . . . . . . . . . . . . . . . . . . 2.2%
1997. . . . . . . . . . . . . . . . . . . . . . . 1.15%
1986. . . . . . . . . . . . . . . . . . 3%, + $2.50
2007. . . . . . . . . . . . . . . . . . . . . . . . 2.6%
1996. . . . . . . . . . . . . . . . . . . . . . . . . 1%
1985. . . . . . . . . . . . . . . . . . . . . . . . . 2%
2006. . . . . . . . . . . . . . . . . . . . . . . . 0.7%
1995. . . . . . . . . . . . . . . . . . . . . . . . 1.5%
1984. . . . . . . . . . . . . . . . . . . . . . . . . 0%
2005. . . . . . . . . . . . . . . . . . . . . . . . 0.9%
1994. . . . . . . . . . . . . . . . . . . . . . . . . $18
1983*. . . . . . . . . . . . . . . . . . . . . . 4.75%
2004. . . . . . . . . . . . . . . . . . . 1.5%, + $3
1993. . . . . . . . . . . . . . . . . . . . . . . . . $20
1981*. . . . . . . . . . . . . . . . . . . . . . . . 5%
1992. . . . . . . . . . . . . . . . . . . . . . . . . $26
*ADDITIONAL ADJUSTMENTS ARE ALLOWED IF AN OWNER PAID FOR ELECTRICITY OR HEAT.
2011. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2010. . . . . . . . . . . . . . . . . . . . . . . . 0.1% 2009. . . . . . . . . . . . . . . . . . . . . . . . 2.7%
(1% + $3 IF TENANCY CREATED AFTER JAN. 1999)
2003. . . . . . . . . . . . . . . . . . . . . . . . . 0% 2002*. . . . . . . . . 3.5% (NOT TO EXCEED $30)
1991. . . . 4% OR $17 (WHICHEVER IS HIGHER)
Beginning in 1998, adjustments are not allowed for the year following a tenant’s initial occupancy. To obtain the maximum amount for a specific address, please use the “Rent Ceiling Database” calculator on Berkeley’s Rent Board website.
FOR FURTHER INFORMATION CONTACT:
Berkeley Rent Board | 2125 Milvia Street | Berkeley, CA | 94704 510.981.7368 | www.ci.berkeley.ca.us/rent
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RENTAL HOUSING 37
member directory
CONTACTS, PRODUCTS & SERVICES 1031 EXCHANGE INTERMEDIARIES
Chicago Deferred Exchange Co. Teresa Moss Fluegel 877-448-1031 www.cdec1031.com ABATEMENT SERVICES
P.W. Stephens Environmental Kimberly MacFarlane 510-651-9506 www.pwsei.com APPLIANCE SALES & PARTS
Appliance Parts Distributor Mike De Fazio 510-357-8200 www.apdappliance.com Appliance Warehouse of America David Jepsen 510-921-1071 www.appliancewhse.com Ferguson Enterprises, Inc. Randy Casteel 888-334-0004 www.ferguson.com Sincere Home Decor Keith Chan 510-832-2838, x108 www.sincerehomedecor.com APPRAISERS
Access Appraisal: Apartment Specialists Joe Spallone 510-601-1466 www.accessappraisal.com Mark Watts Commercial Appraiser Mark A. Watts 415-990-0025 www.markwattscommercialappraisal. com ARCHITECTURE
InsideOut Design Pennell Phillips 510-655-1198 www.aboutinsideout.com ASPHALT/CONCRETE
American Asphalt & Concrete Joe McSweeney 510-723-0280, x28 www.americanasphalt.com ASSOCIATIONS
ATTORNEYS - LAND USE/CONDO CONVERSION
BATHROOM & KITCHEN REMODELING
Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 www.jgutierrezlaw.com Law Offices of Ann Rankin Ann Rankin 510-653-8886 www.annrankin.com Law Offices of Marc L. TerBeek Susy Meyer 510-689-0140 www.terbeeklaw.com Richards Law John Richards 925-231-8104 www.richards-legal.com
Burnham & Brown Jack Schwartz 510-444-6800 www.burnhambrown.com Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 www.jgutierrezlaw.com Law Offices of Marc L. TerBeek Susy Meyer 510-689-0140 www.terbeeklaw.com Richards Law John Richards 925-231-8104 www.richards-legal.com Tubman Law Group Amy Kelley 510-379-8839, x700 www.tubmanlawgroup.com
ATTORNEYS - EVICTIONS
Bornstein & Bornstein Daniel Bornstein 510-836-0110, x1007 www.bornsteinandbornstein.com
| MARCH 2013 |
AUTOMOTIVE
ATTORNEYS - REAL ESTATE/ CORPORATION
BOMA Oakland/East Bay Roberto O. Robledo 510-893-8780 www.bomaoeb.org Oakland Association of Realtors Patricia Bouie Hinds 510-836-3000 www.oar.org Oakland Builders Alliance Beverly Rivas 510-735-8849, x101 www.oaklandbuilders.net Oakland Chamber of Commerce Joseph Haraburda 510-874-4808 www.oaklandchamber.com
38 RENTAL HOUSING
Fried & Williams LLP Clifford Fried 510-625-0100 www.friedwilliams.com Law Offices of Elaine Lee Elaine Lee 510-848-9528 eleeattorney@aol.com Law Offices of Leon H. Rountree III Leon H. Rountree III 510-343-6299 www.leonrountree.com Law Offices of Marc L. TerBeek Susy Meyer 510-689-0140 www.terbeeklaw.com Richards Law John Richards 925-231-8104 www.richards-legal.com The Evictors Ed Nagy 510-839-2074 The Shepherd Law Group Michael Shepherd 510-531-0129 www.theshepherdlawgroup.com Tubman Law Group Amy Kelley 510-379-8839, x700 www.tubmanlawgroup.com
ebrha.com
Ken Betts Towing Services Ayub Azam 510-532-5000 www.kenbettscompany.com BANKING/LENDING
Chase Commercial Josh Milnes 510-891-4545 josh.milnes@chase.com Chase Commercial Ted Levenson 415-945-5430 ted.levenson@chase.com Cooperative Center Federal Credit Union Byron Phillips 510-647-2131 bphillips@coopfcu.org Intervest Mortgage Marc Lipsett 510-622-8515 www.intervest-mortgage.com Luther Burbank Savings Larry Miller 925-627-2790 www.lutherburbanksavings.com Torrey Pines Bank Jeff Becker 510-899-7569 www.torreypinesbank.com American Bath Enterprises, Inc. Larry Arcadi 510-785-2600 www.americanbathind.com Ashby Lumber Emily Brown 510-843-4832 www.ashbylumber.com Bathfitter Justin Starnino 510-969-3905 www.bathfitter.com KMK Contracting & Property Mgmt Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Markus Supply/Ace Hardware Dan Altwarg 510-832-6532 www.markussupply.com SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Sincere Home Decor Keith Chan 510-832-2838, x108 www.sincerehomedecor.com BLINDS & DRAPES
American Draperies & Blinds, Inc. Paul Russo 800-972-0660 www.americandrapery.com BUILDING MATERIALS/HARDWARE
Ashby Lumber Emily Brown 510-843-4832 www.ashbylumber.com
James Hardie Building Products Ellen Dowd 800-426-4051 www.jameshardiecommercial.com Markus Supply/Ace Hardware Dan Altwarg 510-832-6532 www.markussupply.com ReStore/Habitat for Humanity Rose Stubberfield 510-777-1447 www.habitateb.org/restore CARPET CLEANING
Cleaner Carpets Ron Russell 510-522-1344 cleanercarpet@juno.com CODE COMPLIANCE
Armstrong Development Barbara Armstrong 510-337-1998 barbaraarmstrong@comcast.net COLLECTION AGENCIES
Rent Recovery Service Robbie Cronrod 800-845-1086 www.rentrecoveryservice.com CONDO CONVERSION
Armstrong Development Barbara Armstrong 510-337-1998 barbaraarmstrong@comcast.net CONSTRUCTION
KMK Contracting & Property Mgmt Services Kevin Knobles 925-292-8667 www.kmkcontracting.com SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com Vasona Construction, Inc. Dan Scharnow 510-413-0091, x203 www.vasonaconstruction.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com CONTRACTORS/RESTORATION
ARC Water Damage Nina Lauffer 510-835-3073 www.arc-ca.com Belfor Property Restoration Lisa Schwichtenberg 888-543-3473 www.belforusa.com Har-Bro Restoration Ryan Rusler 510-887-8500 www.harbro.com SERVPRO of San Leandro Clayton Barry 510-352-2480 www.servprosanleandro.com DEVELOPMENT
Armstrong Development Barbara Armstrong
510-337-1998 barbaraarmstrong@comcast.net DOORS & GATES
Community Controls Tim Bruske 800-284-2837 www.communitycontrols.com R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com ELECTRICAL SUPPLIES
Ferguson Enterprises, Inc. Randy Casteel 888-334-0004 www.ferguson.com ELECTRICIANS
Ally Electric & Solar, Inc. Metin Saglam 510-559-7700 www.allyelectrical.com City Bay Electric Reggie Stevenson 510-847-1544 www.citybayelectric.com Thomas Electric Co. (TEC) Thomas Hurtubise 510-814-9387 www.tecelectric.net ELEVATOR REPAIRS
Paramount Elevator Corp. Mark Pipoly 510-835-0770 www.paramountelevator.com ENVIRONMENTAL TESTING SERVICES
Essel Environmental Consulting Nik Lahiri 925-413-5511 www.esseltek.com FIRE PROTECTION
Battalion One Fire Protection Mike Herbert 510-653-8075 www.battaliononefire.com Bay Alarm Limor Margalit 510-639-2652 www.bayalarm.com Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com Sentry Alert David Ingham 510-549-0306 www.sentryalert.com FLOOR COVERINGS
Bay Area Contract Carpets, Inc. Kerry Plain or Ken Scott 510-613-0300 www.bayareacontractcarpets.com Dick’s Carpet One Dan Biles 510-633-9533 www.dickscarpetoneoakland.com
Tradeway Carpet Outlet Darryl Johnson 510-233-3350 www.tradewaystores.com GARAGE DOORS
R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com GOVERNMENT AGENCIES
Housing Authority of the City of Alameda Mike Pucci 510-747-4325 www.alamedahsg.org Oakland Housing Authority Leased Housing 510-874-1500 www.oakha.org HANDYMAN SERVICES
Halcyon Properties Roger Shane 510-847-7075 rbshane@aol.com KMK Contracting & Property Mgmt Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Start to Finish Christopher Bailey 510-727-9128 cpmbailey@sbcglobal.net HAULING SERVICES
Junk King Paul Bains 510-982-9650 paulb@junk-king.com KMK Contracting & Property Mgmt Services Kevin Knobles 925-292-8667 www.kmkcontracting.com HEATING & AIR CONDITIONING
88HVAC Matt Jung 855-884-8228 www.88hvac.com Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com Atlas Heating & Air Conditioning Lisa Tuck 510-893-1343 www.atlasheating.com DP Heating & AC Daryl Price 510-532-2043 dpheatingandair@sbcglobal.net HEATING & AIR CONDITIONING SUPPLIES
Ferguson Enterprises, Inc. Randy Casteel 888-334-0004 www.ferguson.com INSPECTIONS
SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com ebrha.com
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INSURANCE
LOCKSMITH EVICTION SERVICES
Aon Rent Protect Bryan Kinsey 801-559-9594 www.aonrentprotect.com Capital Insurance Group George Cushing 800-732-6770 www.ciginsurance.com Commercial Coverage Insurance Paul Tradelius 415-436-9800 www.comcov.com Ruben Leon - Farmers Insurance Group Ruben Leon 510-525-6540 rleoncorrea@farmersagent.com NorthStar Risk Management & Insurance Services Pat Lowther 925-975-4686 www.northstar-ins.com PFN Insurance Services Nicholas Penland 510-483-6667 www.pfninsurance.com Ruth Stroup Insurance Agency Ruth Stroup 510-874-5700 www.stroupinsurance.com Stone Creek Insurance Agency Tom Lynch 925-297-4202 www.stonecreekinsurance.com
Golden Gate Locksmith Co Ralph Scott 510-654-2677 kgglocksmith@yahoo.com
INTERCOMS & ACCESS CONTROLS
Community Controls Tim Bruske 800-284-2837 www.communitycontrols.com R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com Sound Communication Systems Jerry Dean 510-595-8111 scs4208@yahoo.com
PAINTERS
JB Painting Josue Landa 510-282-1431 jbpainting001@yahoo.com RDM Painting & Decorating Roberto Diaz 510-421-1908 rdmpainting1@yahoo.com Steve’s Painting & Renovating Steve Fagrey 510-910-6997 www.welovetopaint.net Universe Painting, Inc. William McKenzie 866-666-6761 www.universepainting.com PEST & VECTOR CONTROL
Terminix Robert Sater 510-489-8689 www.terminix.com Alameda Co. Dept. of Environmental Health Vector Control Services Daniel Wilson 510-567-6826 daniel.wilson@acgov.org Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com Ethan’s Service Plumbing Ethan Elkins 510-390-4185 ethansplumbing@gmail.com Pacific Drain & Rooter Service Nasir Jalil 510-452-4606 nasirjalil80@gmail.com Roto-Rooter Martin Alvarez 510-755-1262 sanactma@aol.com
Martinez Real Estate Investment Jose Martinez 510-769-0436 LAUNDRY EQUIPMENT
Coinmach Greg Blednyh 510-429-0900, x54435 www.coinmach.com
PLUMBING SUPPLIES
LEAD PREVENTION
A.C. Lead Poisoning Prevention Program Julie Twichell 510-567-8252 www.aclppp.org LIGHTING SUPPLIES
Ferguson Enterprises, Inc. Randy Casteel 888-334-0004 www.ferguson.com PROMOTIONAL PRODUCTS
Aspire Business Consulting Natalie Koffler 510-919-0914 www.aspirebizconsult.com
Ferguson Enterprises, Inc. Randy Casteel 888-334-0004 www.ferguson.com
PROPERTY MAINTENANCE
LITIGATION SUPPORT SERVICES
KMK Contracting & Property Mgmt Services Kevin Knobles 925-292-8667 www.kmkcontracting.com
SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com
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Dunn-Edwards Paints Megan Mutimer 415-755-0685 www.dunnedwards.com
PLUMBING - WATER HEATERS
INVESTMENT OPPORTUNITIES
40 RENTAL HOUSING
PAINT SUPPLIERS
ebrha.com
The Garza Company, Inc. Manuel Garza 510-763-9500 garza@garzaco.com PROPERTY MAINTENANCE SUPPLIES
Ferguson Enterprises, Inc. Randy Casteel 888-334-0004 www.ferguson.com PROPERTY MANAGEMENT
ACRE Property Management Drew Humphrey 510-527-8700 www.acrebayarea.com Advent Properties, Inc. Benjamin Scott 510-250-7918 www.adventpropertiesinc.com Bay Property Group Robert Goldman 510-836-0110 www.baypropertygroup.com Beacon Properties Carlon Tanner 510-428-1864 www.beaconprop.com Caldecott Property Management Services Ronald Reece 510-594-2400, x226 www.caldecott.com Canyon Pacific Management Tom Scripps 415-495-4739 www.canyonpacific.com Cedar Properties Jonathan Weldon 510-834-0782 www.cedarproperties.com Crane Management Kit Crane 510-918-2306 www.cranemanagment.net East Bay Asian Local Development Co. Frances Rosario 510-287-5353 www.ebaldc.org The Enterprise Company William McLetchie 510-444-0876 ERI Property Management Sasha Bermudez 510-883-7017 www.erirentals.com Lapham Company Jon Shahoian 510-594-7600 www.laphamcompany.com Marquardt Property Management Karen or Judi Marquardt 510-530-2050 www.mpmoakland.com OMM Inc./Mason Management Janice Mason 510-522-8074 www.ommhomes.com Premium Properties Sam Sorokin 510-594-0794 www.premiumpd.com
Shaw Properties Liz Hart 510-654-1920 www.shawprop.com
Marcus & Millichap David Wolfe 510-379-1200 www.marcusmillichap.com
Sentry Alert David Ingham 510-549-0306 www.sentryalert.com
Sphinx Property Management Jon Goree 510-798-9299 www.sphinxpm.com
NAI Kilpatrick & Company Grant Chappell 510-972-4941 www.naikilpatrick.com
SEISMIC CONSTRUCTION
Wellington Property Company Jillian Loh 510-338-0588 www.wellingtonpropertyco.com
Property Counselors Link Corkery, Inc. Link Corkery 510-886-1212 www.pclclink.com Woodminster Real Estate Co Inc. Nicholas Drobocky 510-336-0202 www.woodminsterrealty.com
Western Management Property, Inc. Vinnie Mistry 510-451-7317 www.westernmpinc.com Woodminster Property Management Nicholas Drobocky 510-336-0202 www.woodminstermanagement.com PROPERTY MANAGEMENT SOFTWARE
Buildium Sam Clarke 888-414-1933 x152 sam@buildium.com RAIN GUTTERS
R.C. Gutter Services Ramiro Cornejo 510-331-4425 Sunshine Gutters Tammar Hadiri 510-525-0880 www.sunshinegutters.com REAL ESTATE BROKERS & AGENTS
Advent Properties, Inc. Benjamin Scott 510-250-7918 www.adventpropertiesinc.com Caldecott Properties Andy Read 510-594-2400 www.caldecott.com Coldwell Banker – Apartment Specialist John Caronna 925-253-4648 www.eastbayIREA.com Coldwell Banker Commercial Henry Ohlmeyer 925-831-3390 www.coldwellbanker.com Davide Pio 510-815-2000 info@iliveinthebayarea.com Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com Home & Investment Realty George Vassiliades 510-710-6826 www.propertiesbygeorge.com Lapham Company Tsegab Assefa 510-594-0643 www.laphamcompany.com Litton/Fuller Group Luke Blacklidge 510-548-4801, x130 www.littonfullergroup.com
RECYCLING/REUSE
DR3 Mattress Recycling Robert Jaco 510-798-3734 www.mattressrecycling.us ReStore/Habitat for Humanity Rose Stubberfield 510-777-1447 www.habitateb.org/restore RENT CONTROL CONSULTANTS
Alan K. Beales 510-339-9776 Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com RENTAL SERVICES
Cal Rentals Elaine Perkins 510-642-3644 www.calrentals.housing.berkeley.edu Eden I & R Ollie Arnold 510-537-2710 www.edenir.org ROOFERS
Fidelity Roof Company Steve Parry 510-547-6330 www.fidelityroof.com Frank Fiala Roofing Frank Fiala 510-582-6929 www.ffialaroofing.com General Roofing Company Michael Wakerling 510-536-3356 www.generalroof.com SECURITY/SURVEILLANCE
Bay Alarm Limor Margalit 510-639-2652 www.bayalarm.com Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com Golden Gate Locksmith Co Ralph Scott 510-654-2677 kgglocksmith@yahoo.com R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com
West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com SEISMIC ENGINEERING
Earthquake & Structures, Inc. B.K. Paul 510-601-1065 www.esiengineers.com SIDING
James Hardie Building Products Ellen Dowd 800-426-4051 www.jameshardiecommercial.com SOLAR POWER
Ally Electric & Solar, Inc. Metin Saglam 510-559-7700 www.allyelectrical.com Belenus Renewable Energy David Nolan 415-244-6383 www.belenussolar.com TENANT SCREENING SERVICE
Contemporary Information Corp. (CIC) Dan Firestone 888-232-3822 www.continfo.com TOWING SERVICE
Ken Betts Towing Services Ayub Azam 510-532-5000 www.kenbettscompany.com TREE SERVICE
Coastal Tree Service Hans Waller 510-693-4631 www.coastaltreeservice.com WASTE & WASTE HANDLING EQUIPMENT
DR3 Mattress Recycling Robert Jaco 510-798-3734 www.mattressrecycling.us Junk King Paul Bains 510-982-9650 paulb@junk-king.com Waste Management Company David Tucker 510-430-8509 www.wastemanagement.com WINDOWS
SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com The Window Specialist Tom From 510-923-1000 www.window-specialist.com ebrha.com
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RENTAL HOUSING 41
ad index
PRODUCTS & SERVICES
EAST BAY RENTAL HOUSING ASSOCIATION
Membership Application for Property Owners and Managers
APPLIANCE PARTS & SALES
Appliance Parts Distributor. . . . . . . . . . . . . . 5 ASSOCIATIONS
National Apartment Association . . . . . . 9, 14 ATTORNEYS
JOIN TODAY AND RECEIVE BENEFITS SUCH AS:
Bornstein & Bornstein. . . . . . . . . . . . . . . . . . 43 The Evictors. . . . . . . . . . . . . . . . . . . . . . . . . . 35 Fried & Williams LLP. . . . . . . . . . . . . . . . . . . . 11 The Shepherd Law Group . . . . . . . . . . . . . . 31
FREE RENTAL FORMS MONTHLY MEMBERSHIP MEETINGS LEGAL REFERRALS
BUILDING MATERIALS
EDUCATIONAL CLASSES FREE SUBSCRIPTION TO RENTAL HOUSING MAGAZINE RENTAL SURVEYS
Urban Ore. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 CARPETING & FLOORING
Bay Area Contract Carpets, Inc.. . . . . . . . . 31
MANAGEMENT ASSISTANCE
CONSTRUCTION
SEMINARS & WORKSHOPS
West Coast Premier Construction. . . . . . . 29 ENGINEERS
TENANT SCREENING SERVICE
Earthquake and Structures, Inc.. . . . . . . . . 27 HEATING & AIR CONDITIONING
88HVAC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 DP Heating & Air. . . . . . . . . . . . . . . . . . . . . . 33
NAME
INSURANCE COMPANIES
CIG Insurance. . . . . . . . . . . . . . . . . . . . . . . . . 23 NorthStar Risk Management. . . . . . . . . . . . . 11
COMPANY
LANDLORD RESOURCES
ECHO Housing.. . . . . . . . . . . . . . . . . . . . . . . . 17 Alameda County Bar Association Volunteer Legal Services. . . . . . . . . . . . . . . . . . . . . . 31
ADDRESS
CITY
STATE ZIP
LENDERS
Cooperative Center FCU.. . . . . . . . . . . . . . . 33 JPMorgan Chase Bank. . . . . . . . . . . . . . . . . 16
PHONE EMAIL
LOCKSMITH EVICTION SERVICES
Golden Gate Locksmith Co. . . . . . . . . . . . . 33
RENTAL PROPERTY LOCATION
PEST CONTROL
ANNUAL MEMBERSHIP DUES (TAX DEDUCTIBLE):
Team Too. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1-2 UNITS = $249.00
PLUMBING
3-4 UNITS = $269.00
5-8 UNITS = $289.00
Albert Nahman Plumbing . . . . . . . . . . . . . . 32
9-16 UNITS = $299.00
17+ UNITS = $299.00 + $5.00 PER UNIT
CHECK (PAYABLE TO EBRHA)
PROPERTY MAINTENANCE SUPPLIES
Ferguson. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 PROPERTY MANAGEMENT
TOTAL DUE:
$
MASTERCARD
VISA
CARD NUMBER
AMERICAN EXPRESS
EXPIRATION DATE
ACRE Property Management . . . . . . . . . . . 27 Crane Management. . . . . . . . . . . . . . . . . . . . 16 Maisel Property Management. . . . . . . . . . . 32 Western Management Properties, Inc.. . . . 22 PROPERTY MANAGEMENT & SALES
Bay Property Group . . . . . . . . . . . . . . . . . . . 43 Beacon Properties. . . . . . . . . . . . . . . . . . . . . 35
NAME ON CARD
REALTORS
Coldwell Banker. . . . . . . . . . . . . . . . . . . . . . . 21 SIGNATURE
ROOFING SERVICES
DETACH THIS FORM AND FAX OR MAIL TO THE ADDRESS BELOW East Bay Rental Housing Association 360 22nd Street, Suite 240 Oakland, CA 94612 TEL
| MARCH 2013 |
ebrha.com
WATERPROOFING
Applied Waterproofing Systems . . . . . . . . 33 WINDOWS, DOORS & SIDING
SGK Solutions.. . . . . . . . . . . . . . . . . . . . . . . . 44
510.893.9873 | FAX 510.893.2906
ebrha.com
42 RENTAL HOUSING
Frank Fiala Roofing. . . . . . . . . . . . . . . . . . . . 31 General Roofing Co. . . . . . . . . . . . . . . . . . . . 33
Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by EBRHA, express or implied, of the advertiser or any goods or services offered.
Non Payment of Rent Evictions Nuisance Evictions Owner Move-In Evictions Rent Board Petitions General Landlord-Tenant Litigation
With Offices in San Francisco and Oakland
CALL US: 510-836-0110
www.baypropertygroup.com
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