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A TRULY SURPRISING EAST BAY REAL ESTATE MARKET 21ST CENTURY PROPERTY MANAGEMENT: TECH IS COMING TO MAIN STREET
Contents
East Bay Rental Housing Association
SEPTEMBER 2016
Volume XIII, Number 9 September 2016 EBRHA OFFICE
3664 Grand Ave., Suite B Oakland, CA 94610 tel 510.893.9873 | fax 510.893.2906 www.ebrha.com EBRHA STAFF EXECUTIVE DIRECTOR
Jill Broadhurst | jbroadhurst@ebrha.com DIRECTOR OF STRATEGIC PARTNERSHIPS
Tina Bocheff | tbocheff@ebrha.com PUBLICATIONS & COMMUNICATION PRODUCER
Esteban Cortez | ecortez@ebrha.com
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16
Make Your Information Security Great Again
A Truly Surprising Market
BY GRANT CHAPPELL
BY BILL BAGNELL
26
ACCOUNTING MANAGER
Cathy Hayden | chayden@ebrha.com MEMBERSHIP ASSISTANT
Monica Wong | mwong@ebrha.com EBRHA OFFICERS PRESIDENT Wayne C. Rowland VICE PRESIDENT Luke Blacklidge VICE PRESIDENT Jack Schwartz TREASURER Abbe Sultan SECRETARY Fred Morse EBRHA DIRECTORS
Mark Almeida, Symon Chang, Reggie Hairston, Carmen Madden, Conor Murphy, Michael Pallas, Rick Philips, Sarah Picker, Judy Shaw PUBLISHED BY
21st Century Property Management BY DOUG BRIEN
East Bay Rental Housing Association PUBLISHER
Wayne C. Rowland MANAGING EDITOR Jill Broadhurst EDITOR Tina Bocheff
ADVERTISING
Tina Bocheff | 510.318.8303
Features & Columns 6
NEWS
Registration Now Open for EBRHA’s 10th Annual Trade Expo on September 28 8
Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at 34 ESQ&A Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 3664 Grand Ave., Suite B, Oakland, No Parking
LOCAL LEGISLATIVE UPDATES
Ballot Updates by City
Events & Directory
BY JILL BROADHURST
10 MEMBER SPOTLIGHT Meet Local Housing Providers
BY EBRHA
32
GOVERNMENT AFFAIRS
An Incredible Year for Grassroots Advocacy
BY VARIOUS AUTHORS
BY GREG BROWN
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36 COMMUNITY CALENDAR 38 M EMBER DIRECTORY 42 M EMBERSHIP INFORMATION 42 A D INDEX
CA 94610.
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 © 2016 by EBRHA. All rights reserved.
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contributors
TRASH & RECYCLING RATES GOING UP AGAIN!
BILL BAGNELL Bill Bagnell is past Board President of the East Bay Rental Housing Association. He lives in Oakland with his wife, dog and cat, and owns and manages rental property in the East Bay and Pennsylvania. He has been a Rolls-Royce mechanic, managed auto service departments, worked in IT as a programmer, system architect, and in software marketing. He is trying to retire from doing major building remodeling, having just finished building a large deck at his house, so he can spend more time cycling, cooking, writing and doing photography.
DOUG BRIEN Doug Brien is a former NFL placekicker turned real estate entrepreneur and public REIT CEO. After playing in the NFL for twelve years he co-founded Waypoint Homes, which ultimately became the second largest public single family REIT (Starwood Waypoint Homes) that owned and managed over 17,000 single family homes nationwide. Today, Doug is the Co-CEO and Co-Founder of Mynd (www.Mynd.co), which is focused on making property management more trustworthy, profitable and simple.
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.
STEVEN C. WILLIAMS Steven C. Williams of Fried & Williams LLP received his bachelor’s degree in Law and Society from the University of California, Santa Barbara. He received his law degree from Golden Gate University. He has been representing property owners in the Bay Area since passing the California bar exam in 1999. Steven’s experience includes counseling property owners in many areas of the law, including landlord/tenant, co-ownership and neighbor disputes, and purchase/sales transactions.
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A year after hitting owners with trash and recycling fee increases of as much as 500%, the City of Oakland has agreed to ANOTHER hike that will PUNISH property owners even more! For 1-4 Unit Buildings • Curbside and backyard compost collection — increasing more than 7% • Curbside recycling collection — new separate fee of $12.56 per cart • 2-4 units: Per-unit surcharge — increasing 19% • Single-family home curbside and backyard trash collection — increasing 8-10% • Contamination fees — $25-$50 per incident For 5+ Unit Buildings • Trash and compost rates — increasing more than 7% • Curbside recycling rates — increasing nearly 20% • Push/pull fees — increasing 5% • StopWaste Benchmark fee increasing • Contamination fees — $25-$50 per incident The City approved more outrageous increases, proving once again that they don’t care about the rights of property owners! Before signing this unfair deal, city officials said that rate increases under the new contract would not exceed 40%. Instead, more than two-thirds of EBRHA members surveyed saw hikes of 40-100%, and a third saw increases of 101-525%! In response, EBRHA filed a landmark lawsuit in June to expose the increases as an illegal tax. The lawsuit also calls into question the $30 million dollar annual franchise fee that the City collects. In order to win this case, the EBRHA Legal Fund must be wellsupported, as it is common practice for cities to use legal tactics that prolong a case in order to deplete the plaintiff’s resources. We look to all EBRHA members for your support. Please donate to the legal action fund today.
Go to ebrha.com/legal-fund
FREE INDOOR FOOD SCRAP BINS
Composting is mandatory for most multi-family properties in Alameda County.* To make separating food scraps, food-soiled paper, and plant debris easier, the Alameda County Waste Management Authority is offering free indoor green containers and lids to multi-family properties with 5+ units, up to $500 per approved site.
APPLY ONLINE NOW
www.RecyclingRulesAC.org/containers Kitchen pails for residents are available free of charge in most cities. Contact your service provider to request pails for in-unit use and utilize the $500 allocation as needed for common areas. Oakland Properties: request kitchen pails, recycling caddies, and other tools at: www.EBRHA.com/zero-waste.
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www.RecyclingRulesAC.org
| (510) 891-6575
* Alameda, Albany, Berkeley, Castro Valley, Emeryville, Hayward, Livermore, Oakland, Piedmont, San Leandro
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title newshere
Oakland Garbage/ Recycling Lawsuit Update Oakland officials had until July 29 to
Registration Now Open for EBRHA’s 10th Annual Trade Expo on September 28 will be held on Wednesday, September 28 from 3:00 p.m. to 7:00 p.m. at the Greek Orthodox Church in Oakland. This year’s Expo will be bigger and better than ever before, featuring more than 50 top local vendors, complimentary food and drink at an Oktoberfest-themed reception, and timely educational workshops. EBRHA President Wayne Rowland, EBRHA Executive Director Jill Broadhurst, and EBRHA State Lobbyist Ron Kingston will present “Don’t Lose Your Property Rights To Government Overreach!,” a relevant and informative workshop that will address legislative issues and teach rental property owners how to proactively engage with the political process. In addition, EBRHA Board members, along with experienced attorneys and property managers, will present “Legal Q&A With a Property Management Perspective.” Registration is now open, and attendance is free to pre-registered members and up to two (2) pre-registered guests, and only $20 for pre-registered non-members. To register or exhibit, go to www.ebrha.com/expo or see the back cover of this issue for more details. EBRHA’S 8TH ANNUAL TRADE EXPO
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respond to the lawsuit EBRHA is sponsoring against the city regarding outrageous garbage and recycling fee increases. On July 29, EBRHA learned that the City has hired outside counsel. As expected, the City has filed a demurrer to our complaint. EBRHA will be opposing their demurrer, to which the City will reply. The hearing on the motion is set for midSeptember. We will keep you informed as the case develops. In order to win this case, the EBRHA Legal Fund must be well funded, as it is common practice for cities to use legal tactics specifically designed to prolong a case in order to deplete plaintiff’s resources. We look to all EBRHA members for your support. Go to ebrha.com/legal-fund to donate today. In addition, if you have not shared your stories of excessive garbage/recycling rate increases (above 30%), reduction in services, late fees, liens and negative customer service experiences, EBRHA urges you to do so now. This includes customer service interactions with Oakland Recycles (city agency overseeing program), Waste Management (garbage and compost hauler), or California Waste Solutions (recycling hauler). Please fill out the EBRHA on Your Side form on our website with a summary of your situation, copies of your bills and correspondence with these agencies. EBRHA continues to compile this important data as part of an ongoing investigation in what will likely be a lengthy battle.
Oakland Puts $600 Million Bond on November Ballot Oakland voters will decide the fate of
a $600 million bond measure to improve city streets, add more affordable housing and upgrade some facilities. If approved in November, the bond would annually cost property owners an average $69 per $100,000 assessed value. “Housing has been the No. 1 issue in the poll that
was done in deciding whether or not to do this measure,” Councilwoman Desley Brooks said in opposing the measure, which would earmark $100 million of the $600 million for affordable housing. “The amount of money that we’re putting into housing, that we say is a crisis in this city, I don’t think is sufficient,” she said. The council approved the measure by a 7-1 vote July 19, with Brooks voting no. Councilman Abel Guillen noted the proposal cites $2.5 billion in unfunded city capital needs and said he has a 20-page, single-spaced list of potholes in his district alone that need fixing. “The voters should have the opportunity to decide,” he said. “It may not seem like a lot of money,” Brooks said of the amount the proposed bond would cost property owners, “but when you put that on top of the garbage bill and the county bond measure and the school district measure and whatever other measures are going to go on, it is a lot for my constituents,” she said. “They are suffering under the burden of all these taxes that we’re putting on them,” Brooks said. Alameda County also has a $580 million affordable housing bond on the November ballot. If approved, that would cost property owners an average $12 to $14 per $100,000 of assessed value. Oakland Unified is asking November voters to approve a $120 annual parcel tax. Surveys commissioned by the city found that residents supported the Oakland bond by more than the two-thirds level required for it to pass. The measure had 74 percent approval in February, a city-commissioned survey found. In June, a follow-up survey found support had grown to 79 percent. In addition to the $100 million for affordable housing, Oakland’s proposed 2016 Infrastructure Bond would allocate $40 million each for fire and police facilities. An additional $35 million would be earmarked for parks, recreation and senior centers; $20 million for water, energy and seismic improvements; and $15 million for libraries. The biggest piece of the bond measure, $350 million, would go toward street paving and reconstruction and bicycle and pedestrian improvements,
including bikeways, sidewalks, paths, stairs, streetscape, curb ramps and traffic calming measures. The council would set project priorities, but it is required to establish a citizens oversight commission, or assign the task to an existing commission. The county bond measure, if voters approve it, “would provide an estimated $89 million for the construction of new affordable housing and other eligible uses in Oakland,” Assistant City Administrator Claudia Cappio told the council. If
Oakland and Alameda County’s bond measures both pass, the city would use the county money for new construction and its own bond funds for affordable housing preservation and rehabilitation and to “bring other existing housing stock under affordability protection,” Cappio said. Source: Mare Hedin, “Oakland puts $600 million bond on November ballot”, August 11, 2016, East Bay Times RH
CALL FOR NOMINEES TO EBRHA BOARD OF DIRECTORS EBRHA is looking for nominees to join our Board of Directors. Are you energetic and interested in building a stronger association that serves the needs and protects the rights of rental property owners? Do you have public affairs, marketing or outreach experience? If so, we’d like you to join our Board of Directors. Terms are three years, and members elected this year will serve on the Board from January 1, 2017 to December 31, 2019. Elections take place at the November 19 member meeting. Go to www.ebrha.com/board-application for an EBRHA Board Application Form, due October 15. Note: your application will be posted online and sent by e-news to all EBRHA members.
APPLICATIONS ARE DUE OCTOBER 15 FOR FURTHER INFORMATION, GO TO EBRHA.COM/BOARD-APPLICATION ebrha.com
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local legislative updates
Ballot Updates by City What rental property owners should know about the proposed laws in Alameda, Oakland and Richmond. BY EBRHA
N
ow more than ever, it’s important to stay up to date on existing and proposed ordinances throughout East Bay cities. Many cities have responded with new rental laws or proposed ordinances, including ballot measures that will affect your rental business. The following are summaries of proposed measures in Alameda, Oakland and Richmond. Alameda This proposed City Charter amendment would replace that structure with a new, voter‐elected regulatory body empowered to manage a rent control program. Candidates for the five‐member Rent Control Board do not have to be landlords or tenants, only Alameda voters. The Board would budget for, hire and manage its own staff; establish rents; issue regulations; conduct investigations and hearings; impose fees on landlords; and impose penalties for non‐compliance. Based on the experience of other California cities with rent control, the cost for the Board and its staff to operate would be approximately $3.3 million annually. Landlords would be assessed fees to pay for the program (estimated to be $235/unit). The City’s General Fund would be required to pay for the Board and programs until adequate fees are available. The amendment would “roll back” rents to the amount charged for a unit on May 5, 2015. That maximum allowable rent could be increased by no more than 65% of the percentage increase in the Consumer Price Index each year. 8 RENTAL HOUSING
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the experience of other California cities with rent control, the City will continue to require City staff to address rent issues and to incur costs of potential legal challenges naming the City. There are potential legal issues with the amendment as drafted. If passed, and a legal challenge is successful, the courts could void some or all of the amendment provisions. Oakland A ballot measure for November 2016 will move forward, voted unanimously by city council. The final version has not yet been posted on the City’s website, but critical points include: Owners must pre-petition for all increases above the annual allowable increase (CPI, currently 2%); No pre-petitioning for banking; Just Cause will now include properties built before December 31,1995 (currently set at 1980). EBRHA estimates that this will affect 1500 units in Oakland; The Rent Board will supposedly have more transparency and reporting requirements; and Substantial rehabilitation has more restrictive requirements. EBRHA will post updates here, including the final proposed ballot measure, as they become available.
(For 2016, rent could be increased 1.7% over the May 2015 rent). Landlords could petition the Board for a larger rent increase. A landlord could terminate a tenancy only for the following reasons: (1) failure to pay rent; (2) breach of the lease; (3) damage to the unit or nuisance; (4) refusing access; (5) a “move‐in” to the unit by the owner or immediate family as the person’s primary residence; (6) substantial repairs; (7) withdrawal of the unit from the rental market. A landlord who terminates a tenancy for reasons (5), (6) or (7) would Richmond be required to make relocation payThis measure proposes to amend the ments, ranging from $7,300 to $18,300 City of Richmond’s Municipal Code to depending on the tenancy length and add a new ordinance that would set a whether the tenant is over 62, disabled, maximum allowable rent charged on or has a minor child. rent controlled residential units in the Tenants may sue landlords for City of Richmond. The measure would attorneys’ fees, damages and penalties also prohibit landlords from terminating equal to three times the amount of the tenancies for reasons that are not specifiunlawful rent. cally listed in the proposed ordinance. In The fiscal impact of the amendaddition, certain temporary rentals, small ment on the City is uncertain. Once second units, and rental of certain rooms, passed, the City must hold a special as further described in the ordinance, election in early 2017 to elect members would be exempt from requirements of of the Board at a cost the ordinance. of over $500,000. Until The proposed ordi“There are potential the Board establishes nance would set maxilegal issues with and implements another mum allowable annual the [Alameda] revenue source, the City’s rental increases for all amendment as General Fund is required residential units except drafted. If passed, to fund the program and a legal challenge for certain exempt including Board‐hired units. Units exempt is successful, the staff and lawyers with no from rent control would courts could void budgetary control by the include, for example, some or all of City Manager and/or City the amendment units that are exempt Council. Also, based on from rent control under provisions.”
ebrha.com
the Costa-Hawkins Rental Housing Act and certain small second dwelling units. The maximum allowable annual rent increase would be 100% of the percentage increase in the Consumer Price Index. The ordinance would also establish a Richmond Rent Board composed of five members appointed by the City Council. No more than two Board members would be permitted to own or manage rental property or be realtors. Landlords and tenants would be permitted to petition the Rent Board for an upward or downward adjustment of the maximum allowable rent. In making a downward adjustment, the Board could consider decreases in living space, substantial deterioration of the rental unit, or failure of the housing to comply with housing, health and safety codes. Upward adjustments could be made by the Board only if the landlord demonstrates that such adjustments are necessary to provide the landlord with a fair return on investment, as defined in the ordinance. The ordinance provides that the Board’s decision may be challenged in court, and that a landlord could be liable in a civil action for damages, reasonable attorneys’ fees and costs as determined by the court, and a civil penalty. A landlord who violates the ordinance would be guilty of a misdemeanor under the proposed ordinance. Under the ordinance, a landlord could only terminate a tenancy for one of the following reasons: 1) if the tenant fails to pay rent; breaches the lease; commits or permits a nuisance; or fails to give the landlord access to the premises in certain situations; or 2) if the landlord needs to undertake substantial repairs to the unit; seeks to use the unit as a primary residence by the landlord, or the landlord’s spouse, children, parents or grandparents; or the landlord seeks to withdraw all units of an entire property from the rental market. The ordinance requires relocation payments to be made under certain circumstances in an amount to be determined by the City Council through a Relocation Ordinance to be adopted by the Council. RH
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The information contained in this article is general in nature. Contact your city clerk for specific information. For updates, go to www. ebrha.com/ballot-updates-by-city. ebrha.com
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RENTAL HOUSING 9
member spotlight
COLUMN
Meet Local Hou Want to share your story? Email tbocheff@ebrha.com to share your experience as a rental property owner.
“The proposed initiatives are a violation of our rights as property owners, put forth by a legislative body without adequate analysis and without Oakland’s future correctly considered. Rent control and restricted evictions have done nothing to increase the supply of housing in Oakland. In fact, rent control has only lead to less supply, greater economic disparity and higher asking rents.”
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using Providers Nathan & Amanda, housing providers since 2013 HOW MANY UNITS DO YOU OWN? Four
units in Adams Point IS THE BUILDING OWNER OCCUPIED? Yes WHAT DO YOU LIKE MOST ABOUT OWNING PROPERTY IN OAKLAND? It is a great
pride and joy to own property in my hometown. Owning our property is a key to our plans, goals and future. Amanda and I love Oakland, and Adams Point is our home. HOW WOULD YOU DESCRIBE YOUR RELATIONSHIP WITH YOUR RENTERS? The recent
renters have been very friendly, respectful, and communicative. We are on excellent terms. The long-term renters of 20 and 30 years generally act like they own the place, and seem to have trouble complying with any requests from their owner-neighbors. Their approach seems to be based on an expectation of indefinite free reign on the property, to which they may have been previously accustomed. Given their extremely low rents, based on 1987 and 1998 starting rents, it is very difficult to remain patient, but we must. WHAT CONCERNS YOU MOST ABOUT THE RENTERPROPOSED INITIATIVES BEING CONSIDERED IN OAKLAND? They are a violation of our rights as
property owners, put forth by a legislative body without adequate analysis and without Oakland’s future correctly considered. Rent control and restricted evictions have done nothing to increase the supply of housing in Oakland. In fact, rent control has only lead to less supply, greater economic disparity and higher asking rents. WHAT IS THE MOST DIFFICULT PART ABOUT BEING A PROPERTY OWNER IN THE CITY? The City Coun-
cil and Rent Board and courts have a bias towards renters, and are creating a situation that is imbalanced and unsustainable. Property owners are small businesses that deserve city support. There is too much political misinformation about how tightening rent control is going to improve outcomes for those that need affordable housing, which is simply untrue. Many rent control properties are not occupied by people who need this form of subsidy, but by those who have realized the financial benefit of staying in place. The focus should be on increasing the supply of housing available. ANY OTHER COMMENTS? Choosing to buy, and then feeling that you are married to the property and can’t take the next steps, now heavily burdened by longdeferred repairs and upgrades; the feeling that you may have to sell and/or get out of Oakland because it is too expensive. RH
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market outlook
Q2 Analysis: A Truly Surprising Market Investors continue to purchase despite decline in rents and pending legislation. BY GRANT CHAPPELL
Photo: Kalle Nemvalts / Flickr Creative Commons
O
ften I’m asked “Are we near the end of the cycle?” or “Is there a real estate bubble in the Bay Area?” Some investors acknowledge it’s a great time to unload the least desirable assets in your portfolio. Buyer demand continues to outpace supply. Long term investors are simply priced out of the market while new entrants from San Francisco, other parts of the Bay Area and overseas are snatching up buildings with little signs of slow down. A lot can change in a year. This is especially true in an election year with representatives up for election and new measures on the ballot. Locally, cities are going to see more restrictions on rent control, higher taxes and fees, and for some cities, new rent control ordinances. As you’ll see in the data, 12 RENTAL HOUSING
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in the Bay Area are beginning to decline. While one-bedroom rents in Oakland are up 11.6% on the year, they’ve dropped 2.6% in the last month, making Oakland the fifth most expensive rental market behind San Jose and Boston. Similarly, San Francisco dropped another 1.6% in July after a 2.2% drop in June. While San Francisco still leads NYC by $260 for median one-bedroom rent, the gap is closing. Political Scene As we discussed last quarter, the hostile political scene facing rental property owners continues to spread to other cities in the Bay Area. The cities of Alameda, Oakland, Richmond, Concord, Burlingame, San Mateo and Mountain View are considering or have placed rent control measures on the ballot. This will do little to address housing affordability as housing demands vastly outpace new supply. One of the few silver linings in this crisis comes from the governor’s office. In late May, Governor Brown proposed legislation to fast track projects that meet zoning guidelines and have some allocation (5% - 20%) of affordable units in the project. While this is welcome news to developers and property owners seeking to entitle a site, it’s probably too little too late. Fees for new development projects are going up in Oakland in September. As mentioned in my last article, the “thousands of units in the pipeline” can be partially explained by groups rushing to pull permits to avoid the increase in fees.
investors are not holding back on purchases in spite of all the “anti-landlord” rhetoric from politicians. 2 – 4 Units The Federal Reserve left interest rates Oakland witnessed another spike in mostly unchanged due to overall weak activity with 100 sales for a new record economic growth, sluggish employment of $685,000 per transaction, eclipsing data and weakness in overseas marthe previous record by $50,000 set in kets. Yields on 10-year treasuries have Q2 2015. This was surprising as prices remained below 2% for most of the were expected to level off as they had year and were trading close to 1.5% in the previous four quarters. Furthermore, August. With borrowing costs hovering we’re back at the 100 quarterly transacnear historic lows and rents peaking in tion range for Oakland, the Bay Area, these two “Despite a modest further signs of a strong factors create a perfect slowdown in rents in and vibrant market. storm for record-setting San Francisco and Berkeley recorded real estate sales. Oakland, people are 23 sales for an average buying and locking price of $1.173 million, Decline in Rents just $5,000 off of the According to a recent rent in low interest rates while available.” record set in the previsurvey by Zumper, rents
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MAISEL PROPERTY MANAGEMENT, Inc. ous quarter in which only nine properties sold. Similar to Oakland, we saw both an increase in activity and strong pricing quarter to quarter. Alameda is behind these two cites on both activity and pricing as five properties sold last quarter for an average of $888,000, an improvement from the three properties that sold for $850,000 in the previous quarter. 5 + Units In Alameda, one property sold last quarter: a 7-unit building for $1.5 million on Bay Street. My colleague, Shivu Srinivasan, and I handled the sale off market in a manner that satisfied 1031 Exchange for both parties. Historically, we’ve seen a couple quarters where no 5+ unit sales happen in Alameda, as it’s a smaller market. Oakland posted an exceptional, near record breaking quarter with $106 million in sales and a nearly $3 million average sales price. It’s also record breaking at $238 per square foot and $188,000 per unit. Furthermore, a sale at 6465 San Pablo was excluded in the data as it’s a newer, non-rent-controlled property that sold for more than $15 million—an “anomaly” that would skew the data a bit as we try to focus on non-institutional properties. While we do not track cap rates for this article, many deals are selling in the low 3% cap range near Lake Merritt and certain Oakland neighborhoods. Berkeley also performed well with $22.5 million in sales and more than $2 million per transaction. At a record breaking $260,000 per unit and nearly record tying $355 per square foot, investors are willing to pay top dollar for quality assets in solid locations. An 8-unit property built in the early ‘60s—located at 2537 Fulton—sold in July for $3.825 million—a new record for rent-controlled buildings. Granted, it’s the third time the property has sold in the last four years and was completely renovated and seismically retrofitted in 2012 and 2013, it shows a “flight to quality” investors have for quality, turn-key assets. Conclusion In summary, the East Bay market continues to lure new investors as strong rents
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transactions (2-4 units)
average sales price (2-4 units)
Source: NAI Northern California
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total volume (5+ units) and low threat of new housing inventory keep values buoyant and rising. Despite a modest slowdown in rents in San Francisco and Oakland, people are buying and locking in low interest rates while available. And with sky high real estate value and rents, political pressure to further restrict rent increases and increase taxes and fees on rental property owners is too tempting. Historically, one would expect this type of threat from the ballot to scare away investors and lure more sellers to the table. This market is truly surprising. RH
price per sq. foot (5+ units)
Grant Chappell is the Senior Vice President of NAI Northern California. After graduating from California Polytechnic State University in San Luis Obispo in 2003 with a degree in Business Administration and a minor in Spanish, Grant has worked exclusively in Real Estate. He can be reached at grant@nainorcal.com or 510-3364721.
ENOUGH IS ENOUGH! price per unit (5+ units)
Protect Your Rental Property Rights and Ownership: Contribute to the EBRHA Legal Fund Today!
GO TO EBRHA.COM/LEGAL-FUND TO LEARN MORE Source: NAI Northern California 14 RENTAL HOUSING
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FEATURE
Make Your Inform Great Again Protect the information vital to your rental business and residents’ privacy. BY BILL BAGNELL
PHOTO: BLUECOAT.COM / FLICKR CREATIVE COMMONS
mation Security W
e all have vital information belonging to us, our rental business, our tenants, our applicants, and perhaps to others. As the stewards and guardians of this information, we need to secure it, keep it from the legions of cybercrooks operating around the world. How we keep sensitive information private, store it so that we don’t lose it and can access it easily, and comply with legal requirements and contractual obligations is both critically necessary and technologically challenging.
Access to Information
Let’s consider what we mean by information. When a prospective tenant fills out a rental application, they enter data (a datum) into each of the provided spaces. Taken alone, the contents of a single entry—name, address, phone number, employer, date of birth, even social security number—may not be useful. But all the data on the application provides us with information that allows us to gather more data—credit history, verification of employment, landlord references—all of which finally gives us enough information to accept or reject the applicant. Another example is credit card data: account number, expiration date, name, billing zip code, and security code. One or two of these will not let someone process a charge to the card, but a combination of some will provide enough information to allow a charge to go through. Here’s where it gets scary. Many pieces of data about us are floating around and are easily accessible. You may be asked for the last four digits of your social security number as verification when you make a phone transaction. The agent on the other end probably can’t see your whole social security number on their screen, but they can see your name and address. Suppose that they google you and find out your birth date and birth city. Researchers have shown that with these three pieces of data they can, with some degree of accuracy, acquire your whole social security number. Now this nefarious person has
your social security number, your name, your address, can find out almost anything about you and could open credit accounts in your name to their benefit. This is just a hypothetical: there are many other ways in which individual bits of data can be assembled into actionable information.
Is Your Information Secure?
Given this, is it possible to make our information security great? A better question might be, was our information security ever great? In most cases it was likely never great and maybe not even adequate. Google someone—for safety start with yourself—and you’ll find all sorts of data in the results. Look at the social networks (Facebook, Twitter, YouTube, LinkedIn). Pay a few bucks for access to one of the data aggregators (Intelius.com, for example). Now put together the pieces of data you’ve found and you have a lot of information about a person. Not so great, perhaps. Given that all this data has already leaked out, what can we do about it? You might ask the same question about why we lock our doors when it is so easy to pick a lock, kick a door in, or break a window. We lock our doors and secure our information for the same reasons— to indicate that what is secured is private and access is not permitted, and to make it difficult enough to access so that the malefactor is incented to look elsewhere. A reasonable effort to secure our data should keep the cyber criminals away as long as they don’t think the value of the contents is worth the effort of stealing it. But there is no absolute security. Over the past few years, credit card data has been stolen from major retailers, data from an adulterous dating site has been posted online, passwords for websites have been collected, government databases have been hacked, political campaign emails have been exposed, and individuals and companies have had their data locked up with a ransom demand. Unresolved is the divide between information privacy advocates, ebrha.com
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any personal or financial information. Let that email address collect all the marketing and spam emails instead of sending it to your primary inbox. 2. Create another, more secure, unique password for each email account, online shopping site, and financial institution. When buying online, use PayPal if possible, otherwise have a separate credit card that you only use for online shopping. If it is compromised, it won’t impact the card you carry in your wallet. 3. If available, enable two factor authentification (2FA) for email, finance and other critical websites. 2FA will send a text or voice code to your phone when you attempt to logon from an unfamiliar location or device. This ensures that even with your password, someone else can’t use your logon, at least if you have your phone in your possession. 4. Most financial institutions will lock you out after three failed attempts to logon, so as long as you didn’t use the same password on another site where it was compromised, and you didn’t use obvious passwords (password, 123456, etc.), you should be ok. 5. Now that you have all these passwords, how do you remember them? The best way to store and recall your multiple passwords is a password manager, where you create one very secure master password (surely, you can memorize one of these) that gives you automatic access to all your passwords. Dashlane, LastPass and Sticky Password are highly rated. They encrypt all your passwords and store them online so you can use them on any device. Warning—they can’t give you back your passwords if you forget the master password. As far as I can tell, these companies are safe since the encryption occurs on your end, before the passwords are uploaded. However, there are ways that cybercrooks have circumvented strong passwords, 2FA, and other protections. There are other steps you should take to make your information security great.
“Most people find it hard to remember more than a few passwords, so they tend to use the same one for everything. Worse than that, they use simple words or personal information for their passwords, or they leave them where they can be found.” who want secure, unbreakable encryption of data, and governments and law enforcement, who want “back door” access to encrypted data. Don’t give up. This is not a case of Dante’s “Lasciate ogne speranza, voi ch’intrate.” There are reasonable things you can do.
Passwords
On the Dark Web you can buy almost anything: stolen credit cards, bank account numbers, drugs, perhaps body parts. One thing that is traded there in bulk is logon credentials. According to LogDog, an account monitoring company, Yahoo and Google Mail user names and password combinations go for $0.70 to $1.20 each, Walmart for $2.50 each, and PayPal for $1.00 to $80.00 each. These are easily acquired because many people reuse user names—often their email address—and passwords for many sites. If you use the same name and password for your bank or PayPal that you use for one of the many hacked websites that stored passwords in plain text—not encrypted in any way—then access to your financial data can be, and likely has been, purchased for very little. Most people find it hard to remember more than a few passwords, so they tend to use the same one for everything. Worse than that, they use simple words or personal information for their passwords, or they leave them where they can be found. Here are several examples: One person I worked with (I suspect he may read this article) used his street number and his favorite TV show for two of his passwords. While I never tried, I suspect he used one of these for his ATM PIN and bank website password. Years ago, I needed some information from my supervisor at that unnamed large bank where I worked. He was on vacation, but no problem, I walked into his office, saw a Post-It stuck to his computer that said “HerbCaen”, typed it in, and gained access to all his files. The bank’s rule was that you had to change your password every month—clearly he had changed it and was afraid of forgetting it.
Creating Strong Passwords
You can make your passwords great with these guidelines: 1. Create a throwaway email address and password for all the web sites that want you to create a logon but don’t collect 18 RENTAL HOUSING
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Malware Attacks
Malware is a general term for malicious software that ends up on your computer or phone. It’s a general term that includes computer viruses, worms and other infectious nasties. It can take many forms, from malware that turns your computer into a zombie—acting as an agent that infects other computers—to the most widely seen variety today: ransomware. If you are infected with ransomware, it can encrypt all your files, making them unreadable by anyone. The only way to get your files back unencrypted is to pay a ransom, usually in bitcoins, and generally in the hundreds of dollars. There have been recent cases where hospitals have been hit by ransomware and were asked to pay large amounts to get their data decrypted. Other malware attacks might just steal the data on your computer without your knowledge. Remember, your computer may have more than just your personal and financial data, it may also have your tenants’ and your applicants’ private data.
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Computer Security
First, remember that desktop computers, laptops, tablets and smartphones are all computers, and they can all access the web and store sensitive information. Second, in reverse order, they are all easy to lose or have stolen. Third, there are ways to bypass the operating systems and, in most cases, the hardware, password. Lastly, information can be extracted from the hard drives or flash memory without removing any passwords, as long as the person has access to the computer. There are a number of steps that we can take to ensure that information is secure across these multiple devices: 1. Limit the devices on which you store sensitive information. Don’t store anything sensitive, such as passwords and personal information, on your tablets and smartphones—keep these for social networking, reading, emailing, watching videos, listening to music, and making phone calls. 2. It may be safe to use your mobile device—tablet or smartphone—to access banks and other financial websites, but researchers have determined that some of these mobile banking apps store sensitive information on the device without encryption. Because the apps are updated frequently, it’s hard to say what is safe at any given time. It’s “user beware.” 3. Laptops are the most vulnerable because they are easy to lose or have stolen and may contain all sorts of information. Most government agencies and large companies require that all sensitive information on laptops be encrypted; however, the news is full of stories about missing laptops with unencrypted sensitive information belonging to hundreds of thousands of people. 4. Although you aren’t likely to lose your desktop computer, it can be stolen if your office or house is broken into. There are devices to attach your computer to a desk or the floor; this may be enough to make it a secure place for sensitive information. 5. Remember that erasing a file on your device doesn’t remove it; it only makes it so you don’t see it. Over time the file may be overwritten by new files, but you have no control over this. There are utilities that can ensure that files are overwritten and can’t be recovered (Google “permanently delete files”). Cleaning up your hard drive with such a utility is a good idea if you think there is any chance that you may lose control of your computer. 6. Encrypting your files is the most secure approach you can take to information security. Some versions of Windows (not the “home” versions) and Mac have built-in processes for encrypting files. Perhaps the best approach for Windows encryption is TrueCrypt (truecrypt.org). It’s open source, free, and not hard to use. At one time, encryption slowed down file access, but on modern computers it isn’t a problem. 7. Logoff or lock all your devices when they are not in use. While the logon prompt on a computer can be circumvented, it still protects data from someone just sitting down and trying to use it. Smartphones are much harder to crack—witness the recent FBI attempt—but phones are more likely to be stolen or lost and need to be secured.
“Be very careful with attachments to emails and links in emails. If someone sends you an attachment that you didn’t ask for or didn’t know was being sent, don’t open it. ” You have a responsibility to protect this data, especially if you are performing online background checks.
Protecting Against Malware
There are a number of basic steps you need to take to protect against malware. 1. Keep everything on your system updated. This means your operating system, all your programs, your anti-virus or Internet security software, your browsers, and all the browser plug-ins such as Flash. Software vendors have ongoing efforts to identify security holes in their products, including paying independent security researchers for finding problems. When weak points are found, and they are constantly being discovered, the vendor issues an update or patch to fix the problem, hopefully before the cybercrooks find and exploit it. 2. Use an anti-virus or internet security product. Google “pcmag.com antivirus” to get a list and review of the top products. Some are free, some you pay for or get more features if you pay. In a way, this may be redundant since Windows and Macintosh both have built-in antivirus capabilities, but the extra layer of protection isn’t a bad idea. 3. Be very careful with attachments to emails and links in emails. If someone sends you an attachment that you didn’t ask for or didn’t know was being sent, even if you recognize the sender, don’t open it. Check with the sender to see if they actually sent it. Many email accounts have been compromised and the contact lists harvested for the purpose of sending attachments with malware payloads. I get some of these every day. They appear to be reports, invoices, resumes, and all sorts of other things that are supposed to entice me to open them. I also get emails from people I know with a message like, “I thought you’d like to see this,” and a link to some strange website. They are all dangerous in some way. Avoid them. 4. Backup your data frequently, once a day or more, to a detached external device or location. By detached I mean someplace that doesn’t appear in your file explorer all the time. If you backup to a USB memory stick or an external hard drive, remove it when the backup finishes. If you backup to Google Drive or another remote storage location, that location may remain accessible from your computer where it can be encrypted by ransomware. In my view, the best backup solution is an online service that automatically runs on a schedule. Google “pcmag.com online backup services” for a list and reviews. 20 RENTAL HOUSING
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Cloud Storage
UPCOMING WORKSHOPS Applicant Screening Dos & Don’ts D ATE & TIME SPEAKER PRICE TOPICS
THURSDAY, SEPTEMBER 8; 2:00 P.M. - 3:30 P.M.
Dan Firestone, CIC Members: $39; Non-members: $69 Tenant Screening Dos and Don’ts, Interpreting Credit Report, EBRHA Tenant Screening Services, and more
Lunch-n-Learn: Ins & Outs of Maximizing IRA Investments D ATE & TIME SPEAKER PRICE DETAILS
TUESDAY, SEPTEMBER 13; NOON - 1:30 P.M.
Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors $20 (Members only) Lunch is provided and available at 11:45 a.m. Seating is limited, Registration deadline is September 12.
Rental Property Owner 101 D ATE & TIME M ODERATOR PRICE TOPICS
THURSDAY, SEPTEMBER 15; 2:00 P.M. - 3:30 P.M.
Jill Broadhurst, CCRM, EBRHA Members: Free; Non-members: $69 Tenant Screening, the Application Process, Fair Housing, Measure EE and Rent Control, and more
Managing Challenging Tenancies D ATE & TIME SPEAKER PRICE TOPICS
TUESDAY, SEPTEMBER 20; 2:00 P.M. - 3:30 P.M.
Michael Shepherd, The Shepherd Law Group Members: $39; Non-members: $69 Effectively Handling Nuisance Complaints, Proper Procedures, Serving Notices, and more
FREE!
Lunch-n-Learn: Emergency Preparedness D ATE & TIME SPEAKER PRICE DETAILS
THURSDAY, SEPTEMBER 22; NOON - 1:30 P.M.
Ryan Rusler, HARBRO Emergency Services & Restoration Free (Members only) Lunch is provided and available at 11:45 a.m. Seating is limited, Registration deadline is September 12.
Unless noted, all events are held at:
3664 Grand Avenue • Suite B Oakland, CA 94610 TO REGISTER, GO TO EBRHA.COM/EVENTS OR CALL 510-893-9873. PRE-REGISTRATION REQUIRED 22 RENTAL HOUSING
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Cloud computing and cloud storage are terms that have come into popular usage recently, although I first encountered the term when I was doing system architecture at the aforementioned large bank in the mid 1980s. The “cloud” in this sense isn’t the fluffy thing you see in the sky. Instead, it means that you are using computer services that are in multiple remote locations, and that you neither know where the processing and storage take place, nor have to concern yourself with it. In a sense, using a website is a form of cloud computing since all your computer, tablet, or smartphone does is capture your input and deliver the visual and audio output of the website. Only limited processing occurs on your device. In a bigger sense, cloud computing means moving programs—word processing, spreadsheet, accounting—to remote servers. The benefits are that you don’t have to maintain the programs, keep them updated, or in many cases, even pay for them. The downsides are that performance can be impacted if you don’t have a fast Internet connection, and if you lose your connection, the programs are not accessible. From the standpoint of information security, however, cloud storage is a sensible approach. Emailing sensitive information is not secure, and shouldn’t be done. Suppose an applicant wants to send you a completed application to rent an apartment. They could save it as a PDF (Adobe Acrobat) file, add a password, attach it to an email, send it to you, and call you with the password. If it ended up going to the wrong address, was intercepted, or your or the applicant’s email were hacked, the password-protected PDF file could be unlocked with a $25 utility (PDFKey Pro) and easily read. Cloud storage solves this problem and provides other benefits. Although there are other options, Dropbox and Google Drive are two of the best. All you do is create a shared folder, give the applicant access, and have them upload the PDF to the shared folder. You can read it and print it. Once you have the file, you can transfer it to a private folder in the cloud (still in Dropbox or Google Drive) for safe storage. If you are using a very
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ENOUGH IS ENOUGH! Protect Your Rental Property Rights and Ownership: Contribute to the EBRHA Legal Fund Today! Rental owners are facing devastating policy changes, including stricter rent control ordinances, rent board fee increases, limits on capital improvement pass-throughs, increased utility fees, fines, garbage and recycling rates, and mandated costly inspections. While Oakland has been the recent focus, Alameda, Richmond, Concord and other cities are not far behind. Currently, EBRHA Legal Fund contributions are supporting a lawsuit against the City of Oakland filed in June on behalf of Oakland rental property owners who have experienced increases of up to 500% in garbage and recycling fees. In addition, November rent ordinance changes will hit voters in Alameda, Oakland and Richmond. We ask all EBRHA members to consider contributing today!
Thank you for donating now at ebrha.com/legal-fund ebrha.com
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UPCOMING EVENTS Oakland Rent Board Roundtable D ATE & TIME M ODERATOR PRICE TOPICS
WEDNESDAY, SEPTEMBER 7; 10:00 A.M. - 11:00 A.M.
Jill Broadhurst, CCRM, EBRHA Free to members only An informal discussion for members that have or had a rent board hearing
Rental Property Owners Roundtable D ATE & TIME M ODERATOR PRICE TOPICS
MONDAY, SEPTEMBER 12; 10:00 A.M. - 11:00 A.M. Jill Broadhurst, CCRM, EBRHA Free to members only An informal discussion on management issues & solutions
CRITICAL!
Membership Meeting D ATE & TIME SATURDAY, SEPTEMBER 17; 10:00 A.M. - NOON TOPICS Public Affairs Update: Our Successes, Challenges & Strategies Moving Forward. We need your voice! Presented by EBRHA Board & Public Affairs Committee PRICE Free to Members Only
City of Alameda Rent Stabilization Regulations D ATE & TIME SPEAKER PRICE TOPICS
WEDNESDAY, SEPTEMBER 21; 2:00 P.M. - 3:30 P.M.
Housing Authority of the City of Alameda Free to Members Only Proper procedures for valid rent increases and termination of tenancies under the new regulations.
strong password for your cloud account, this is as secure a way to store your sensitive information as you can find. Further, any file stored in the cloud is instantly accessible on any device—you can put a file in the cloud from your computer and read it on your tablet or smartphone. One point to remember about cloud storage: if you read a file that is stored in the cloud on your local computer, a temporary copy is created locally. These copies can be hard to find and hard to get rid of. Look for options to delete temporary files, and if you want real security, use a utility to permanently delete files so that these temporary files are fully deleted. An interesting example of what cloud storage really means is that Dropbox actually runs on Amazon’s servers—yes, the Amazon that sells books and everything else also sells computing and storage facilities to many other companies. But you don’t need to know that, which is the benefit of using cloud computing and storage. It’s all taken care of for you.
Conclusion
Hopefully, you haven’t found this tour of information security too overwhelming. It’s hard to cover subjects such as this for a diverse audience without making it too simple for some and too complex for others. Should you want to discuss any aspect of this subject, don’t hesitate to contact me by email or phone. RH Bill Bagnell is 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.
PRE-REGISTRATION REQUIRED
EBRHA 10th Annual Trade Expo D ATE & TIME LOCATION PRICE DETAILS
WEDNESDAY, SEPTEMBER 28; 3 P.M. - 7:00 P.M. Greek Orthodox Church, 4700 Lincoln Ave., Oakland Free to pre-registered members and up to 2 pre-registered guests Register at ebrha.com/expo. See back cover for more details.
Unless noted, all events are held at:
3664 Grand Avenue • Suite B Oakland, CA 94610
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East Bay Rental Housing Association 3664 Grand Ave, Suite B Oakland, CA 94610 TEL 510.893.9873 | FAX 510.893.2906 www.ebrha.com
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FEATURE
21st Century Prop Technology is coming to Main Street. BY DOUG BRIEN
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perty Management
PHOTO: BILL SMITH / FLICKR CREATIVE COMMONS
I
have a confession. I am addicted to real estate. I started investing in real estate while I was playing football and began working in the industry on a fulltime basis when I retired from the NFL in 2005. I invest in real estate because I believe it is the best way to build wealth and tax-efficient income. Over the coming years my primary investment strategy will be to continue to accumulate investment properties. A few years back I realized that the only way I could realistically continue to acquire investment properties was to find a better property management solution. I interviewed many of the traditional property management companies in the San Francisco Bay Area and found them all completely inadequate. I simply care too much about performance, fees, accurate reporting and trust to hire them. They charged too much and didn’t add any value. Even more fundamentally, I found their offerings stuck in the 20th Century, given what I knew about how real estate should and could be managed. In my time as the CEO of Starwood Waypoint Homes (NYSE: SWAY), I learned about how technology and scale are transforming the property management business and experienced the benefits firsthand. I believe that great technology is meant to make our lives easier not more complicated and allow us to create value for both our investors and residents. It is also the key element to enable scale, which can also provide a lot of cost and value benefits. Given my busy work schedule and demanding family life (I have three kids and an attorney for a wife), I knew that managing my properties myself was not an option. If I was going to keep my dream of growing my portfolio alive, I was going to have to do something more radical. In 2016, after Starwood Waypoint Homes merged with Colony American Homes, I decided to move on. My partner from Waypoint Homes, Colin Wiel, and I wanted to build the company that the real estate industry needed most: a 21st Century property management company for individual inves-
tors. We had built our last company to help “Wall Street” investors make money in real estate, and this time felt like we could help “Main Street” investors. In the context of residential property management, I believe 21st Century technology-based solutions can add a lot of value for Main Street investors. Here are some of the things that I believe technology can do for property management companies:
1.) Enhance Labor Performance
Property management can be a very people-intensive business. Management companies need good people to manage because they have to deal with a lot of difficult resident and property issues. At Waypoint Homes we addressed this problem in two ways: we hired an all-star team of real estate professionals to execute our operation and then enabled them with tools to do their jobs even better. We found this to be a winning formula that allowed us to produce the best operating metrics in the single family industry. There are a number of different technologybased tools that can enhance a management team’s performance. Property management professionals can be most effective if they have easily digestible information at their fingertips. For example, when a resident contacted us about a work order, we found it to be very helpful for our team to receive the notice electronically in a format that connected to the resident’s account. By means of an electronic notice we could view related resident files, all related work order communications, and the history of the homes, which include all past work orders. This allowed our team to be proactive and respond quickly and intelligently. We learned that our residents actually preferred contacting us via a text message or by sending us a message through our Resident Portal because communication was faster and easier and they knew we were highly responsive. There are so many other ways in which technology can make property management professionals better, but the point is that as we continued to equip our team with technology-based tools, their perebrha.com
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formance improved. As an owner of real estate, I would never entrust my properties to any company that didn’t leverage technology in this way.
2.) Create Transparency With an Operating Platform and Dashboards
GET INVOLVED! Did you know that hundreds of bills and ordinances are presented each year that could negatively impact your business? EBRHA lobbies on behalf of our members at the state and local level, and we are looking for members who would like to actively engage with efforts to support the industry. Your voice matters. Go to our website to: • Donate to the EBRHA Legal Funds and PAC • Become a face of EBRHA and tell your story • Learn about EBRHA and CalRHA’s efforts in Sacramento • Learn about upcoming council meetings and events
Why can’t owning real estate be more like owning a stock? With my stock portfolio I can go online at any point and see how my investments are doing. Why can’t it be like that for Main Street real estate investors? At Waypoint our management team had that same type of transparency into our real estate portfolio, so I know it is possible and extremely valuable. To an owner or manager of real estate, accurate and timely information is everything. One of the big questions when we entered the single family rental market in 2009 was around our ability to efficiently manage a large pool of distributed rental homes. The fundamental issue was whether we could build a system that gave us visibility into the metrics we needed to manage efficiently. This need for transparency was a challenge that we took head-on. At Waypoint, we built a proprietary management platform that we called Compass. We used this management platform to capture data from our team, residents, and third parties, which gave us a great deal of valuable insights into how our operation was performing. The Compass dashboards provided a viewport of all metrics we needed to efficiently manage our homes and deliver results to our investors. With all of the great technology-based tools available today, it makes no sense to own or manage real estate without a high degree of transparency. Personally, I would never hire anyone to manage my real estate investments if they weren’t using these types of tools to manage and provide accurate and timely reporting to me.
3.) Enable a More Efficient Marketing and Leasing Process
GO TO EBRHA.COM/GET-INVOLVED TODAY! 28 RENTAL HOUSING
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At Waypoint we spent a lot of time focused on driving down vacancy as much as possible. We quickly learned that the key is to make the marketing and leasing process seamless and easy for prospective renters. This pushed us
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The Mynd Owner’s App
to focus intensely on the way we measured and managed every phase of the marketing and leasing cycle. We discovered that in many parts of the leasing cycle we lost potential renters because our process was not streamlined and efficient enough. For example, when we tried to schedule showings, we often lost prospects because our leasing team couldn’t set up a convenient time to do a showing. We also lost prospects playing phone tag during the application, screening, deposit, and lease signing phases. To eliminate this leakage we built and leveraged technology that allowed self-showings where after some light screening we gave prospective renters a unique access code that allowed them to view homes when it was convenient for them. Once these prospective renters saw a home they liked, they could use their mobile phones to apply, to get screened and to sign a lease quickly and efficiently. This technology-enabled leasing process allowed our sales team to manage more prospective renters and move them through the pipeline more efficiently, which allowed us to fill vacancies faster and our portfolio to produce better returns. At the same time, prospective renters were happy as well, because we simplified their lives by allowing them to more easily find a high quality home.
4.) Achieve Economies of Scale
The final point I want to make about the benefit of technology in property management relates to scale, or experiencing the benefits associated with a large company vs. a small company. Historically, residential property management at scale for individual owners has not existed. It hasn’t happened until recently because no one thought it was possible until we did it in the single family rental space. Managing efficiently at scale is only possible by leveraging technology, systems and data, which is a 30 RENTAL HOUSING
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very new concept in our industry. Main Street investors have been disadvantaged because they did not have the option of choosing a large property management company. Wall Street investors benefit from the value that large management companies can offer, so why shouldn’t Main Street benefit too? By the way, to me a large property management company is one that manages 10,000 to 20,000 or more units, which is enough size to justify investing in technology, command better pricing, have enough inventory to allow a “one stop shop” experience for renters, and hire talent that can deliver better results. I know there are some that feel that hiring a large property management company is a bad idea, but that is not the case. Large companies can gain certain efficiencies, which allow them to charge less and deliver more. At Waypoint we saw that the incremental cost of managing 1 additional house on a portfolio of 2,000 in a specific city was very low because we were already operating at a large scale. Because the cost to manage is lower to a large company, they can charge less. Small traditional property managers charge too much because they don’t have the benefit of scale. Also, property management companies that achieve scale in a market can attract and retain a captive audience of high quality vendors that will respond quickly, deliver high quality work, and charge less. Vendors only do this when a company is large enough to give them sufficient volume to build their business around. At Waypoint we achieved this level of scale and the associated benefits of great pricing and great service. Hiring a large sophisticated property management company can create this benefit for individual investors too.
Technology in Real Estate
In the 21st century, technology has been changing the business landscape in every industry and every part of the world. For some reason real estate and in particular the property management industry has been slow to adapt technology. Wall Street investors have benefited from these advancement for years, however, the offerings for Main Street investors are few and far between. It is now undeniable that technology is coming to the real estate industry, and I believe in the next several years we will see meaningful improvements in how residential rental real estate is owned and managed. As an individual investor, you need to decide whether you want to participate and benefit from these advancements or watch from the sidelines. As I look to continue to grow my real estate portfolio, I know that I will not be sitting and waiting, because I believe the company we are building next can solve all of these problems for me and for others. My addiction to real estate is alive and well. RH Doug Brien is a former NFL placekicker turned real estate entrepreneur and public REIT CEO. Today, Doug is the Co-CEO and Co-Founder of Mynd (www.Mynd.co), which is focused on making property management more trustworthy, profitable and simple. He can be reached at doug@mynd.co or 925-984-1180.
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government affairs
address a genuine ADA design deficiency. The legislation preserves the goals of the ADA while providing owners 120 days to correct any deficiency before litigation can begin. Thanks to strong advocacy efforts, this bipartisan legislation passed out of the House Judiciary Committee with the support of Republicans and Democrats. This is a critical step that increases the chances of final action before the end of the year. Finally, legislation to expand private market flood insurance coverage options Updates from NAA’s Sr. Vice President is halfway towards passage by the Congress. The “Flood Insurance Market of Government Affairs. BY GREG BROWN Parity and Modernization Act” would record-breaking Capitol Conference, help address the limited – and typically drawing more than 700 attendees to expensive – sources of flood coverage in Washington, D.C., to advocate on the private marketplace. Most imporSection 8 Housing Choice Vouchers, tantly, it would increase the protection of Flood Insurance and Americans with apartment communities across different Disabilities Act (ADA) litigation. More markets and whenever it is needed. The than 500 advocates went to Capitol Hill bill passed the House of Representatives sharing our perspective and pressing our unanimously and is now in the hands of case for action in these areas. The work the Senate. Based on our experience with at the Capitol Conference and follow up Section 8 voucher reform, such a strong grassroots outreach later in the spring bipartisan showing in the House dramatihas generated real results in all areas. cally increases our chances of positive In July Congress passed and sent action in the Senate. to the President’s desk the “Housing As you can see, this year has been Opportunity through Modernization marked by strong advocacy performance Act.” Top among this legislation’s key by ourselves as advocates on reasonable, components is a reform of the inspece’ve reached the mid-point targeted and bipartisan policy initiatives. tion process for apartment homes to of the second session of But our work is not over. There are many be rented by someone using a Section the 114th Congress, but more policy concerns for us to tackle 8 voucher. Now, units that have been in many ways it feels like the end of both this year and when the new Coninspected in the previous 24 months do the session. Most of the heavy legislagress and Administration arrives in 2017. not have to be inspected again before tive lifting that can get done before And speaking of 2017: Make sure to a voucher holder moves in. This will the elections has been completed. The mark your calendars for the 2017 Capitol eliminate weeks of delay for low- and campaign for the White House and 435 Conference and Lobby Day on March moderate-income families trying to find public service jobs in the House and 7 – 8. Our goal is to create another a home and thousands of dollars of 34 in the Senate has taken every bit of record-breaking event, bringing in more lost revenue for apartment owners and oxygen in the room. There are only a advocates to reach all 535 members of operators. handful of legislative days left in the Congress. Registration Reform of the ADA year during which only the red-label “More than 500 opens in early Novemlitigation process also tasks will get accomplished. There will, advocates went to ber. of course, be a flurry of legislative activ- made significant progress Capitol Hill sharing Thanks for readity during the post-election “lame-duck” during the first half of our perspective and ing. Talk with you next 2016. The “ADA Educaperiod before Congress adjourns sine pressing our case month. RH die, but that almost feels like an entirely tion and Reform Act of for action in these 2015” would address a different legislative session since whatareas. The work at Greg Brown is the Senior growing trend of “driveever happens is dependent upon the the Capitol ConferVice President of Govby” lawsuits against outcome of the election. Regardless, for ence and follow up ernment Affairs with the owners of commercial the apartment housing industry this has grassroots outreach National Apartment Association. He can be reached and residential real estate been an incredible year for grassroots later in the spring at 703-797-0615 or greg@ intended to generate fee advocacy. has generated real naahq.org. settlements rather than In March, NAA hosted another results in all areas.”
An Incredible Year for Grassroots Advocacy
W
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esq. & a 2011 through June 30, 2012 is 2.0%. For other rent increase justifications, the owner should refer to EBRHA, the Ordinance or consult with an attorney. —STEVEN C. WILLIAMS
No Parking
How does Oakland’s Ordinance put the brakes on parking fees? BY STEVEN C. WILLIAMS
Q
Last week, I found an electrical cord running from my tenants’ window to the electrical socket of the laundry room. I pay for the laundry room utilities. The police informed me that the tenants are stealing from me and not the utilities company. Which notice should I give and what laws exactly have my tenants violated?
A
Q
If parking is included in the rent (as opposed to being covered by a separate lease agreement), how can I increase parking fees?
A
Under the Oakland Rent Ordinance, “rent” means the total consideration charged in exchange for the use of the residential rental unit, including all housing services provided to the tenant. “Housing services” means all services provided by the owner related to the use or occupancy of the rental unit, including parking. So when the rental property owner provides parking to a tenant who rents a residential rental unit that is covered under the Oakland Rent Ordinance, any fee or charge for the parking is considered rent. This is true whether the park34 RENTAL HOUSING
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Running an electrical cord from a window to a laundry room may violate applicable building codes and create health and safety hazards, such as fire, electrocution and tripping hazards. In addition, the tenants are doing this at your expense. The right to break the law, create a hazard and use your electricity is not a housing service provided in connection with the tenancy. So you should immediately do something about it. You are generally within your rights to simply unplug the extension cord and warn the tenant not to do this again in the future. But there may be facts or circumstances that you do not know about that would dictate a different course of action. For instance, perhaps the electrical outlets inside the unit are not functioning is included in the rent or whether it is ing properly. Perhaps the tenants believe covered by a separate parking agreement. that they have permission to do this. Or And, just like the rent for the rental unit, perhaps the electrical cord is powering the rent for the parking something that will be would be controlled by “When the owner damaged if unplugged the Oakland Rent Ordiprovides parking to without notice. nance. a tenant who rents Because of this, it To increase the rent a residential rental may be advisable to for the rental unit and all unit that is covered first deliver the tenants housing services provided, under the Oakland a written letter instructincluding parking, the Rent Ordinance, any ing them to promptly owner must comply with fee or charge for and permanently unplug the Oakland Rent Ordithe parking is conthe extension cord and nance. The most common sidered rent. This warning them that you rent increase justification is true whether the will unplug it if they do under the Ordinance is parking is included not. You should also the annual allowable CPI in the rent or confirm that all of their rent increase. The annual whether it is covered electrical outlets are CPI increase rate in effect by a separate parkfunctioning properly. for the period July 1, ing agreement.” If the tenants con-
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tinue to use the extension cord or plug it back in after you have removed it, then you may consider serving them with a Notice to Cease, which is the first step toward possibly evicting them. There are a few potential grounds under Oakland’s Just Cause Ordinance for giving a Notice to Cease, such as nuisance, illegal use, and/or lease violation. But before doing this, you should consult with an attorney to assess which grounds, if any, might warrant giving the tenants a Notice to Cease. —STEVEN C. WILLIAMS
The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Steven C. Williams is an attorney with Fried & Williams LLP. They can be reached at (510) 625-0100, swilliams@friedwilliams.com or cfried@ friedwilliams.com.
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community calendar EVENTS & CLASSES
september
october
WEDNESDAY, SEPTEMBER 7 Oakland Rent Board Roundtable An informal discussion on rent board hearings Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.
MONDAY, OCTOBER 3 Oakland Rent Board Roundtable An informal discussion on rent board hearings Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.
THURSDAY, SEPTEMBER 8 Applicant Screening Workshop Presented by Dan Firestone, CIC Free to members only, 2:00 p.m. - 3:30 p.m.
THURSDAY, OCTOBER 6 Rental Property Owners 101 (RPO 101) Presented By Jill Broadhurst, CCRM, EBRHA Members: Free; Non-members: $69 2:00 p.m. - 3:30 p.m.
MONDAY, SEPTEMBER 12 Small Rental Owners Roundtable An informal discussion on management issues and solutions Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m. TUESDAY, SEPTEMBER 13 Lunch-n-Learn: In’s & Out’s of Maximizing IRA Investments Presented by Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors Members only: $20; Lunch is provided at 11:45 a.m. Noon - 1:30 p.m. THURSDAY, SEPTEMBER 15 Rental Property Owners 101 (RPO 101) Presented By Jill Broadhurst, CCRM, EBRHA Members: Free; Non-members: $69 2:00 p.m. - 3:30 p.m. SATURDAY, SEPTEMBER 17 EBRHA Member Meeting Public Affairs Update: Our Successes, Challenges & Strategies Moving Forward. We need your voice! Presented by EBRHA Board & Public Affairs Committee 10:00 a.m. - Noon TUESDAY, SEPTEMBER 20 Managing Challenging Tenancies Presented by Michael Shepherd, The Shepherd Law Group Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m. TUESDAY, SEPTEMBER 20 Managing Challenging Tenancies Presented by Michael Shepherd, The Shepherd Law Group Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.
MONDAY, OCTOBER 11 Small Rental Owners Roundtable An informal discussion on management issues and solutions Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m. MONDAY, OCTOBER 11 Everything You Need to Know About Owners’ Insurance Presented by Jain Williams—State Farm Insurance Members: $39; Non-members: $69 2:00 p.m. - 3:30 p.m. THURSDAY, OCTOBER 13 Lunch-n-Learn: Financial Planning Basics Presented by Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors Members only: $20; Lunch is provided at 11:45 a.m. Noon - 1:30 p.m. SATURDAY, OCTOBER 15 EBRHA Member Meeting (Speakers & Topics TBD) 10:00 a.m. - Noon TUESDAY, OCTOBER 18 Public Affairs Meeting Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m. WEDNESDAY, OCTOBER 19 How to Handle Subtenants, Assignees & Visitors Presented by Clifford Fried, Fried & Williams LLP Members: $39; Non-members: $69 6:30 p.m. - 8:00 p.m.
WEDNESDAY, SEPTEMBER 21 City of Alameda Rent Stabilization Regulations Presented by Jonathan Standifer Free to members only, 2:00 p.m. - 3:30 p.m.
THURSDAY, OCTOBER 20 Lunch-n-Learn: Asset Protection Presented by Harry Barth, Barth Calderon Attorneys Members only: $20; Lunch is provided at 11:45 a.m. Seating is limited; Advanced registration required Registration deadline is Wednesday, September 21 Noon - 1:30 p.m.
THURSDAY, SEPTEMBER 22 Lunch-n-Learn: Emergency Prepardness Presented by Ryan Rusler, HARBRO Emergency Services & Restoration Free to members only; Lunch is provided at 11:45 a.m. Noon - 1:30 p.m.
THURSDAY, OCTOBER 27 Meet & Greet w/ Elected State Assemblymember Bill Quirk Representing Southern Alameda County, all members are encouraged to come meet Assemblymember Bill Quirk and learn about the state agenda Free to members only, 1:00 p.m. - 2:00 p.m.
WEDNESDAY, SEPTEMBER 28 EBRHA 10th Annual Trade Expo Greek Orthodox Church, 4700 Lincoln Ave., Oakland Register at ebrha.com/expo or see back cover for details 3:00 p.m. - 7:00 p.m. No Refunds on no shows; Online advanced registration required! To register and pay, visit ebrha.com/calendar or call (510) 893-9873. Unless noted, all classes and events are held at the EBRHA Education Center, 3664 Grand Ave., Suite B in Oakland. 36 RENTAL HOUSING
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Oakland RENT ADJUSTMENT PROGRAM FEE
Annual fees are $30 per unit and are due March 1. Owners are allowed to pass through $15 to tenants. BUSINESS TAXES & REGISTRATION
Registration fee is $60 and is due March 1. Tax is based on annual gross rental income at a rate of $13.95 per $1,000 of gross rental income. Tax renewal declarations are mailed at the beginning of the year. LANDLORD PETITION FOR EXEMPTIONS
Claims covered include new construction, substantial rehabilitation, and single-family homes or condominiums.
ANNUAL ALLOWABLE RENT INCREASE
2016-17 (2.0%) A CPI increase of 2.0% becomes effective on July 1, 2016. Tenants may only receive one increase in any 12-month period, and the rent increase cannot take effect earlier than the tenant’s anniversary date. In addition, California law requires that for tenancies receiving greater than a 10% increase, a 60-day notice is required; if the increase is 10% or less, a 30-day notice is required. Owners can only impose “banked” rent increases equal to three times the current annual allowable rent increase rate. See schedule at right.
PERI OD
AM O U N T ( % )
JULY 1 ‘16 - JUNE 30 ‘17 . . . . . . . . . 2.0 JULY 1 ‘15 - JUNE 30 ‘16 . . . . . . . . . 1.7 JULY 1 ‘14 - JUNE 30 ‘15 . . . . . . . . . 1.9 JULY 1 ‘13 - JUNE 30 ‘14 . . . . . . . . . 2.1 JULY 1 ‘12 - JUNE 30 ‘13 . . . . . . . . . 3.0 JULY 1 ‘11 - JUNE 30 ‘12 . . . . . . . . . 2.0 JULY 1 ‘10 - JUNE 30 ‘11 . . . . . . . . . 2.7 JULY 1 ‘09 - JUNE 30 ‘10 . . . . . . . . . 0.7 JULY 1 ‘08 - JUNE 30 ‘09 . . . . . . . . . 3.2 JULY 1 ‘07 - JUNE 30 ‘08 . . . . . . . . . 3.3 MAY 1 ‘06 - JUNE 30 ‘07. . . . . . . . . . 3.3 MAY 1 ‘05 - MAY 30 ‘06 . . . . . . . . . . 1.9 Visit www.ebrha.com/members to see previous adjustments.
CAPITAL IMPROVEMENTS INCREASE FORMULA
FOR FURTHER INFORMATION CONTACT:
Oakland Rent Board 250 Frank H. Ogawa Plaza, Ste. 5313 Oakland, CA, 94612 510.238.3721 | www.oaklandnet.com
(70 % of Improvement Costs ÷ Number of Units) 60 months or 5 years REFER TO ORDINANCE FOR NOTICING, QUALIFICATIONS AND AMORTIZATION PERIODS.
Berkeley RENT STABILIZATION BOARD FEES
Annual fees are $213 per unit and are due July 1. Owners are allowed to pass through $4 to tenants. RATES OF ANNUAL PAYMENT OF SECURITY DEPOSIT INTEREST P E R I OD A MO UN T FEDERAL RESERVE RATES
DEC. 2014. . . . . . . . . . . . . . . . . . . . . N/A DEC. 2013. . . . . . . . . . . . . . . . . . . 0.3% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.5% DEC. 2011. . . . . 0.4% (CORRECTED 11/3/2011) DEC. 2010. . . . . . . . . . . . . . . . . . . 0.4% DEC. 2009. . . . . . . . . . . . . . . . . . . 1.1% DEC. 2008. . . . . . . . . . . . . . . . . . . 3.4% DEC. 2007. . . . . . . . . . . . . . . . . . . 5.3% DEC. 2006. . . . . . . . . . . . . . . . . . . 5.1% DEC. 2005. . . . . . . . . . . . . . . . . . . 3.4%
ANNUAL ALLOWABLE RENT INCREASE
2016 (1.5%) PERI OD AM O U N T
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. Visit www.ebrha.com/members to see previous adjustments.
2016. . . . . . . . . . . . . . . . . . . . . . . . 1.5% 2015. . . . . . . . . . . . . . . . . . . . . . . . 2.0% 2014. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2013. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2012. . . . . . . . . . . . . . . . . . . . . . . . 1.6% 2011. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2010. . . . . . . . . . . . . . . . . . . . . . . . 0.1% 2009. . . . . . . . . . . . . . . . . . . . . . . . 2.7% 2008. . . . . . . . . . . . . . . . . . . . . . . . 2.2% 2007. . . . . . . . . . . . . . . . . . . . . . . . 2.6% 2006. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2005. . . . . . . . . . . . . . . . . . . . . . . . 0.9% 2004. . . . . . . . . . . . . . . . . . . 1.5%, + $3 (1% + $3 IF TENANCY CREATED AFTER JAN. 1999) *ADDITIONAL ADJUSTMENTS ARE ALLOWED IF AN OWNER PAID FOR ELECTRICITY OR HEAT.
BERKELEY RATES
FOR FURTHER INFORMATION CONTACT:
DEC. 2014. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2013. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.2% DEC. 2011. . . . . . . . . . . . . . . . . . . 0.3%
Berkeley Rent Board 2125 Milvia Street Berkeley, CA 94704 510.981.7368 | www.ci.berkeley.ca.us/rent ebrha.com
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vendor directory — CONTACTS, PRODUCTS & SERVICES Law Offices of Brent Kernan Brent Kernan 510-712-2900 bkernan@aol.com Law Offices of Elaine Lee Elaine Lee 510-848-9528 www.elaineleeattorney.com Richards Law John Richards 925-231-8104 www.richards-legal.com The Evictors Alan J. Horwitz 510-839-2074 The Shepherd Law Group Michael Shepherd 510-531-0129 www.theshepherdlawgroup.com
ACCOUNTING & TAX
Collins, Mason & Company LLP Teresa Mason 510-891-9000 www.cmcaccountants.com The Lee Accountancy Group, Inc. Jong H. Lee, CPA 510-836-7400 jhlee@theleeaccountancy.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 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 ASSOCIATIONS
ATTORNEYS - LAND USE/CONDO CONVERSION
Law Offices of Bill Ford Bill Ford 415-306-7840 www.billfordlaw.com Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 www.jgutierrezlaw.com Richards Law John Richards 925-231-8104 www.richards-legal.com ATTORNEYS - REAL ESTATE/ CORP.
Beckman Blair LLP BOMA Oakland/East Bay Nancy Ly Julie Taylor, CAE 415-871-0070 510-893-8780 www.beckmanblairllp.com www.bomaoeb.org Kaplan, Feller & Chang Oakland/Berkeley Association of Realtors Buresh, Fred Feller Davina Lara 510-548-7474 510-836-3000 www.bureshkaplan.com oaklandberkeleyaor.com Ericksen Arbuthnot Oakland Chamber of Commerce Jason Mauck Barbara Leslie 510-832-7770 510-874-4808 www.ericksenarbuthnot.com www.oaklandchamber.com Fried & Williams LLP ATTORNEYS - EVICTIONS/PROPERTY Clifford Fried OWNER DEFENSE 510-625-0100 Beckman Blair LLP www.friedwilliams.com Nancy Ly Jack Schwartz, Attorney at Law 415-871-0070 Jack Schwartz www.beckmanblairllp.com 650-863-5823 Bornstein & Bornstein jwsjr1220@comcast.net Daniel Bornstein Law Offices of John Gutierrez 510-836-0110, x1007 John Gutierrez www.bornsteinandbornstein.com 510-647-0600, x2 Buresh, Kaplan, Feller & Chang www.jgutierrezlaw.com Fred Feller Miller Property Law 510-548-7474 Inga Miller www.bureshkaplan.com 925-402-2192 Ericksen Arbuthnot www.millerpropertylaw.com Jason Mauck Richards Law 510-832-7770 John Richards www.ericksenarbuthnot.com 925-231-8104 Fried & Williams LLP www.richards-legal.com Clifford Fried AUTOMOTIVE 510-625-0100 Ken Betts Towing Services www.friedwilliams.com Ayub Azam Law Offices of Bill Ford 510-532-5000 Bill Ford www.kenbettscompany.com 415-306-7840 www.billfordlaw.com BANKING/ LENDING 38 RENTAL HOUSING
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ebrha.com
Chase Commercial Josh Milnes 510-891-4545 josh.milnes@chase.com Chase Commercial Ted Levenson 415-945-5430 ted.levenson@chase.com First Foundation Bank Michelle Li 510-250-8133 www.ff-inc.com Intervest Mortgage Marc Lipsett 510-332-6964 www.intervest-mortgage.com Luther Burbank Savings Larry Miller 925-627-2790 www.lutherburbanksavings.com Pacific Western Bank Marc Lipsett 510-332-6964 www.pacificwesternbank.com SF Fire Credit Union Herman White, Jr. 415-674-4808 www.sffirecu.org Torrey Pines Bank Dale Marie Golden 510-899-7536 dgolden@torreypinesbank.com BATHROOM/KITCHEN REMODELING & BUILDING SUPPLIES
American Bath Enterprises, Inc. Larry Arcadi 510-785-2600 www.americanbathind.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com Ashby Lumber Paul Heiser 510-843-4832 www.ashbylumber.com Bathfitter Rod Mills 510-969-3905 www.bathfitter.com D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 www.dwhamiltonconstruction.com Home Depot Allan Jocson 510-375-5237 www.homedepot.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Sincere Home Decor Hei Chan 510-835-9988 www.sincerehomedecor.com SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com
vendor directory CABINETS & COUNTERTOPS
Elegant Stone & Cabinets Linh Duong 925-954-8845 www.elegantstoneandcabinets.com CARPET CLEANING
Cleaner Carpets Ron Russell 510-522-1344 cleanercarpet@juno.com CONCRETE
Mauri Concrete Construction Co. Marcelo Mauri 510-541-5260 www.mauriconcrete.com CONSTRUCTION
A-One Construction Shari Alexander 510-347-5400 www.a-oneconstruction.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 www.dwhamiltonconstruction.com Going Green Dan Antonioli 510-652-7593 www.going-green.co KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Schafer Construction, Inc. Mike Barker 510-568-7200 www.schaferconstructioninc.com SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com W. Charles Perry & Associates W. Charles Perry 650-638-9546 www.wcharlesperry.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com CONTRACTORS/RESTORATION
ARC Water Damage Nina Lauffer 510-223-1279 or 877-437-9225 (toll free) www.bayareafloodrepair.com Har-Bro Restoration Inc. Sonia Fuetsch 650-670-2364 www.harbro.com P.W. Stephens Environmental Kimberly MacFarlane 510-651-9506 www.pwsei.com Servpro of Lafayette/Moraga/Orinda Jenny Villena 925-299-1323 servpro9542@sbcglobal.net Water Damage Recovery Rick Walker 800-886-1801 www.waterdamagerecovery.net
DOORS & GATES
HAULING SERVICES
KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Urban Ore Marylou Van 510-841-7283 www.urbanore.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 ELECTRIC VEHICLE CHARGING
HEATING & AIR CONDITIONING
NRG EVgo Mehr Kouhkan 310-954-2930 www.nrgevgo.com
Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com San Francisco Heating and Cooling Pablo Richards 415-286-2540 sfheatingandcooling@yahoo.com
ELECTRICIANS
Thomas Electric Co. (TEC) Thomas Hurtubise 510-814-9387 www.tecelectric.net ELEVATOR REPAIRS
HOME WARRANTIES
Paramount Elevator Corp. Mark Pipoly 510-835-0770 www.paramountelevator.com
First American Home Warranty Megan Cormier 707-596-5334 mcormier@firstam.com
FINANCIAL PLANNING
HOUSING SERVICES
David White & Associates Miguel Delgado 925-277-2635 www.dwassociates.com Enhance Wealth Advisors Terry Allen, CFP®, AWMA SM 925-932-8609 info@enhancewa.com
Hamilton Family Center – First Avenues Mayo Lunt 510-763-8540 www.hamiltonfamilycenter.org HUMAN RESOURCES MANAGEMENT
FIRE EXTINGUISHER SALES & SERVICES
Best Equipment Co. LLC Denise Haughin 510-655-8882 bestfireequipment@att.net
Avitus Group Lance Harris 925-827-0680 www.avitusgroup.com INSPECTIONS
SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com
FIRE PROTECTION
Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com
INSURANCE
FLOOR COVERINGS
Bay Area Contract Carpets, Inc. Ken Scott 510-613-0300 www.bayareacontractcarpets.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
APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com Halcyon Properties Roger Shane 510-847-7075 rbshane@aol.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Start to Finish Christopher Bailey 510-727-9128 cpmbailey@sbcglobal.net
Bulloch Insurance Brokers, Inc. Curt Bulloch 925-640-0485 www.curtbulloch.com Commercial Coverage Insurance Paul Tradelius 415-436-9800 www.comcov.com Gordon Insurance Pamela Hutchins 877-877-7755 www.gordoninsurance.com The Greenspan Co./Adjusters Int’l. Rich Hallock 866-331-4790 www.greenspan-ai.com Jain L. Williams - State Farm Insurance Jain L. Williams 510-530-3222 www.jainwilliams.com Kelly Lux – State Farm Insurance Kelly Lux 510-521-1222 Kelly.lux.gjcg@statefarm.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
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vendor directory Yonas Hagos - Farmers Insurance Yonas Hagos 510-763-1030 www.farmersagent.com/yhagos
Times Up Termite Mike Barker 510-568-7200 www.timesuptermite.com
INTERCOMS & ACCESS CONTROLS
PLUMBING/WATER HEATERS
R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com
Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com Frank Bonetti Plumbing Dan Bonetti 510-582-0934 www.bonettiplumbing.com L. J. Kruse Co. Janell Yates 510-644-0260 www.ljkruse.com Roto-Rooter Martin Alvarez 510-755-1262 sanactma@aol.com
INVESTMENT OPPORTUNITIES
Martinez Real Estate Investment Jose Martinez 510-769-0436 LAUNDRY EQUIPMENT
CSC ServiceWorks Stacy Weaver 800-954-9000 Ext. 54313 www.cscsw.com Excalibur Laundries Richard Lisowski 510-872-1664 www.excaliburlaundries.com Innovative Coin Cheri Guffey 510-259-1494 www.innovativelaundry.com
PROPERTY MAINTENANCE
LEAD, MOLD & PEST MANAGEMENT
Alameda County Healthy Homes Dept. Larry Brooks 510-567-8282 or larry.brooks@acgov.org www.aclppp.org LIGHTING
Eco Electric James Young 415-384-8526 www.ecopwr.net
PROPERTY MAINTENANCE SOFTWARE
LITIGATION SUPPORT SERVICES
SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com LOCKSMITH EVICTION SERVICES
Golden Gate Locksmith Co Ralph Scott 510-654-2677 kgglocksmith@yahoo.com MARKET RESEARCH
Axiometrics Inc. Amy Wolff Sorter 469-621-9669 asorter@axiometrics.com PAINT
BEHR Paint Nick Mounts 415-416-0994 www.behr.com The Sherwin-Williams Co. Sean Callahan 925-932-3363 x134 www.sherwin-williams.com PEST & VECTOR CONTROL
Alameda Co. Vector Control Services Daniel Wilson 510-567-6826 daniel.wilson@acgov.org California American Exterminator Tami Stuparich 831-338-4800 www.calamericanext.com Terminix Robert Sater 510-489-8689 www.terminix.com 40 RENTAL HOUSING
A-One Construction Shari Alexander 510-347-5400 www.a-oneconstruction.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com
| SEPTEMBER 2016 |
SYNCrew John Cranston 415-968-1593 www.syncrew.com PROPERTY MAINTENANCE SUPPLIES
Ferguson Enterprises, Inc. Jermane Griffin 916-752-7608 jermane.griffin@ferguson.com PROPERTY MANAGEMENT
Advent Properties, Inc. Benjamin Scott 510-289-1184 www.adventpropertiesinc.com Bay Property Group Daniel Bornstein 510-836-0110 www.baypropertygroup.com Beacon Properties Carlon Tanner 510-428-1864 www.beaconprop.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 The Enterprise Company William McLetchie 510-444-0876 ebrha.com
ERI Property Management Terrence Sims 510-883-7070 www.erirentals.com Lapham Company Jon M. Shahoian 510-594-7600 www.laphamcompany.com Marquardt Property Management Karen or Judi Marquardt 510-530-2050 www.mpmoakland.com Mynd Stacy Winship 408-761-2424 www.mynd.co OMM Inc./Mason Management Janice Mason 510-522-8074 www.ommhomes.com Premium Properties Sam Sorokin 510-594-0794 www.premiumpd.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com Shaw Properties Judy Shaw 510-665-4350 www.shawprop.com Sphinx Property Management Jon Goree 510-798-9299 www.sphinxpm.com Wellington Property Company Jillian Loh 510-338-0588 www.wellingtonpropertyco.com Woodminster Property Management Nicholas Drobocky 510-336-0202 www.woodminstermanagement.com PROPERTY MANAGEMENT SOFTWARE
NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com On-Site Janis Rossi 408-795-4167 www.on-site.com REAL ESTATE BROKERS & AGENTS
Advent Properties, Inc. Benjamin Scott 510-289-1184 www.adventpropertiesinc.com ARA Pacific Mike Colhoun 415-273-2177 www.arausa.com Better Homes Realty Rene Mendieta 510-388-4092 rmendieta@att.net Caldecott Properties Andy Read 510-594-2400 www.caldecott.com CBRE Keith Manson 510-874-1919 www.cbre.com
vendor directory Coldwell Banker – Apartment Specialist John Caronna 925-253-4648 www.eastbayIREA.com Coldwell Banker Commercial Henry Ohlmeyer 925-831-3390 www.coldwellbanker.com Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com Lapham Company Tsegab Assefa 510-594-0643 www.laphamcompany.com Litton/Fuller Group Luke Blacklidge 510-548-4801, x130 www.littonfullergroup.com Marcus & Millichap Eli Davidson 510-379-1280 eli.davidson@marcusmillichap.com Marcus & Millichap David Wolfe 510-379-1200 www.marcusmillichap.com NAI Northern California Grant Chappell 510-336-4721 www.naikilpatrick.com The Pinza Group Steven Pinza 510-725-4775 www.pinzagroup.com Property Counselors Link Corkery, Inc. Link Corkery 510-886-1212 www.pclclink.com Red Oak Realty Vanessa Bergmark 510-292-2000 vanessa@redoakrealty.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com Six Degrees Realty Stephanie Christmas 510-461-4663 www.stephaniechristmas.com Woodminster Real Estate Co Inc. Nicholas Drobocky 510-336-0202 www.woodminsterrealty.com RECYCLING/REUSE
Urban Ore Marylou Van 510-841-7283 www.urbanore.com RENT CONTROL CONSULTANTS
Bay Property Group Cristian Villarreal 510-474-7404 cristian@baypropertygroup.com Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com Liz Hart 510-813-5440 liz.hart1801@gmail.com
RENTAL SERVICES
TENANT SCREENING SERVICE
Hamilton Properties Bay Area Delesha Hamilton 404-606-2141 www.hamiltonpropertiesbayarea.com Caldecott Properties Julie Keys 510-225-9244 www.caldecott.com ROOFERS
A-One Construction Shari Alexander 510-347-5400 www.a-oneconstruction.com Fidelity Roof Company Doug Kellor 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
Bartlett Tree Experts Tony DeMola 925-934-6306 www.bartlett.com Coastal Tree Service Hans Waller 510-693-4631 www.coastaltreeservice.com TUB, TILE & COUNTERTOP REFINISHING
Discovery Coatings Gargie Balarbar 415-971-8207 www.discoverycoatings.com
ADT Security Systems Bobby Augusto 925-222-8034 www.adt.com Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com
UTILITY MANAGEMENT
NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com VETERANS SERVICE ORGANIZATION
SEISMIC CONSTRUCTION
Adobe Soil & Structures Mark Almeida 510-919-1880 www.adobesoils.com B.A.S.S. Seismic Retrofit D.W. Hamilton 510-919-0046 www.bassseismicretrofit.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com SEISMIC ENGINEERING
SOLAR ENERGY
Eco Electric James Young 415-384-8526 www.ecopwr.net Sun Light & Power Martin Morehouse 510-809-3686 martin@sunlightandpower.com SUBMETERING
NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com
TOWING SERVICE
Ken Betts Towing Services Ayub Azam 510-532-5000 www.kenbettscompany.com PPI Towing Stephanie Gipson 510-533-9600 www.ppitowing.net TREE SERVICE
SECURITY/SURVEILLANCE
Earthquake & Structures, Inc. B.K. Paul 510-601-1065 www.esiengineers.com W. Charles Perry & Associates W. Charles Perry 650-638-9546 www.wcharlesperry.com
Contemporary Information Corp. (CIC) Dan Firestone 888-232-3822 www.continfo.com
Swords to Plowshares Norman Thomas 510-844-7500 www.swords-to-plowshares.org WASTE & COMPOST COLLECTION
Bay Area Bin Support Nancy Fiame 888-920-BINS www.bayareabinsupport.com Bay Area Waste Services Peter Gella 510-788-0462 www.bawaste.com Waste Management Company Karen Stern 510-430-8509 www.wastemanagement.com WATER HEATERS
Water Heaters Only, Inc. Yana Carpenter 800-835-5946 www.waterheatersonly.com WATER MANAGEMENT
HydroPoint Data Systems Dominique Perry 707-285-3233 www.hydropoint.com WINDOWS
SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com ebrha.com
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ad index
PRODUCTS & SERVICES APPLIANCE PARTS & SALES
Appliance Parts Distributor. . . . . . . . . . . . . 43
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Bornstein & Bornstein. . . . . . . . . . . . . . . . . . 31 The Evictors. . . . . . . . . . . . . . . . . . . . . . . . . . 35 Fried & Williams LLP. . . . . . . . . . . . . . . . . . . 23 The Shepherd Law Group . . . . . . . . . . . . . . 25 BUILDING MATERIALS/HARDWARE
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EAST BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing owners and managers of apartments, condominiums, duplexes, single-family homes and other types of rental housing. EBRHA members range in size from small investors with just one property to large property management companies that own or manage hundreds of units.
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Our membership consists of more than 1,400 rental housing owners, property managers, attorneys and other service contractors. Altogether, EBRHA represents over 20,000 rental units, and serves over 25 cities throughout Alameda and Contra Costa counties.
Jain Williams—State Farm. . . . . . . . . . . . . . 24 KITCHENS AND BATHROOMS
Sincere Home Decor. . . . . . . . . . . . . . . . . . . . 3 LAUNDRY
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n Property management advice by phone or in person n Tenant screening service (application/report fees apply) n Annually updated legal forms, including forms online 24/7 n Monthly workshops on new laws, rental agreements, security deposits, legal notices, fair housing, rent control, and more n Vendor directory of local businesses that offer exclusive member discounts n Annual trade expo and networking mixers n Monthly educational membership meetings n Community outreach and education n Local and state lobbying n An active and growing Legal Action Fund and Political Action Committee n Subscription to Rental Housing and units n Membership with the National Apartment Association and CalRHA
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JPMorgan Chase Bank. . . . . . . . . . . . . . . . . . 9 PLUMBING
Albert Nahman Plumbing . . . . . . . . . . . . . . 33 PROPERTY MANAGEMENT
Maisel Property Management. . . . . . . . . . . 13 PROPERTY MANAGEMENT & SALES
Bay Property Group . . . . . . . . . . . . . . . . . . . 31 Beacon Properties. . . . . . . . . . . . . . . . . . . . . 29 RECYCLING
Oakland Recycles . . . . . . . . . . . . . . . . . . . . . . 5 RENT BOARD CONSULTANTS
Liz Hart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ROOFING SERVICES
Frank Fiala Roofing. . . . . . . . . . . . . . . . . . . . 33 General Roofing Co. . . . . . . . . . . . . . . . . . . . 29 WATERPROOFING
Applied Waterproofing Systems . . . . . . . . 33 WASTE, RECYCLING & COMPOST COLLECTION
Bay Area Bin Support. . . . . . . . . . . . . . . . . . 19 WINDOWS, DOORS & SIDING
JOIN TODAY! CALL 510-893-9873 OR GO TO WWW.EBRHA.COM/JOIN 42 RENTAL HOUSING
| SEPTEMBER 2016 |
ebrha.com
SGK Solutions.. . . . . . . . . . . . . . . . . . . . . . . . 15 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.
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THE BAY AREA EXPO FOR RESIDENTIAL RENTAL PROPERTY OWNERS & MANAGERS
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Pre-registered EBRHA Members & Up to 2 Pre-registered Guests: Free Pre-registered Non-Members: $20 (fee can be applied to new membership)
RECEP T ION
HOUSING IS THE HOT TOPIC NATIONWIDE, making front page news daily. Locally, drastic changes to rent laws have taken place and more are on the way. Rental property owners rely on EBRHA to keep up to date and in compliance, and this event is where they gather to: • Learn how to protect investment property rights • Network with rental housing experts • Meet top local vendors to assist with maintenance, management, legal and financial services P L AT I N U M S P O N S O R S V E N D O R FA I R • E D U C AT I O N • C O M P L I M E N TA R Y F O O D & D R I N K • F R E E P A R K I N G
WORKSHOPS INCLUDE • 4:00 - 5:00 PM — DON’T LOSE YOUR PROPERTY RIGHTS TO GOVERNMENT OVERREACH!
Presented by Jill Broadhurst, Wayne Rowland & Ron Kingston
GOLD SPONSORS
• 5:30 - 6:30 PM —LEGAL Q&A WITH A PROPERTY MANAGEMENT PERSPECTIVE
Moderated by Luke Blacklidge; Presented by Daniel Bornstein, Lisa Fowler, Clifford Fried & Mimi Johnson-Jacobs
Luke Blacklidge
Lisa Fowler
Daniel Bornstein
Mimi Johnson-Jacobs
Clifford Fried
Ron Kingston
Vice President, EBRHA Broker, Litton Fuller Group
SPEAKERS Wayne Rowland President EBRHA & CalRHA
Jill Broadhurst Executive Director EBRHA
Attorney/Founder Bay Property Group
Attorney Fried & Williams LLP
Senior Property Manager Gallagher & Lindsey
Owner Black Oak Properties
EBRHA State Lobbyist President, CPCG
PA R T N E R S
To exhibit, contact Tina Bocheff at 510-318-8303 or tbocheff@ebrha.com
PRE-REGISTER TODAY AT WWW.EBRHA.COM/EXPO OR 510-893-9873