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EAST BAY
RENTAL HOUSING ASSOCIATION
Volume XXXXI Number 34 | Jan/Feb 2025
EBRHA OFFICE
3664 Grand Ave., Suite B, Oakland, CA 94610
TEL 510.893.9873 | FAX 510.893.2906
ebrha.com
CHIEF EXECUTIVE OFFICER
Derek Barnes
aemail@ebrha.com | 510.893.9873 ext. 407
COMMUNICATIONS AND MEDIA RELATIONS
Chris Tipton
communications@ebrha.com | 510.893.9873 ext. 404
ADVERTISING AND MEMBERSHIP SALES
Danielle Baxter
sales@ebrha.com | 510.893.9873 ext. 403
MEMBER SERVICES AND SUPPORT
membership@ebrha.com | 510.893.9873 ext. 414
BILLING AND ACCOUNTING
Ken Lam
accounting@ebrha.com | 510.893.9873 ext. 405
EBRHA OFFICERS
PRESIDENT Wayne C. Rowland
FIRST VICE PRESIDENT Luke Blacklidge
TREASURER Chris Moore
SECRETARY Fred Morse
EBRHA BOARD OF DIRECTORS
Francisco Acosta, Luke Blacklidge, Maya Clark, Carmen Madden, Chris Moore, Courtney Morse, Fred Morse, Joshua Polston, Wayne C. Rowland, Jack Schwartz, Maria Recht, Aaron Young
PUBLISHED BY East Bay Rental Housing Association
PUBLISHER Derek Barnes
EDITOR Michelle Gamble
ART DIRECTOR Bree Montanarello
Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 3664 Grand Ave., Suite B, Oakland, CA 94610.
Rental Housing is published bimonthly for $9.95 per issue by the East Bay Rental Housing Association (EBRHA), 3664 Grand Ave., Suite B, Oakland, CA 94610.
As we usher in 2025, the housing market presents a landscape rich with opportunity and complexity. The California Association of Realtors forecasts a 10%+ increase in existing single-family home sales statewide, reaching approximately 300k units, and the median home price is projected to rise by 4.6% to over $900,000. Additionally, we should expect interest rate cuts over the next 12 months with more subtle mortgage rate decreases.
It’s also worth noting that Alameda and Contra Costa counties’ population has dropped by more than 64k and 13k people, respectively, since 2020. The collective data indicates that we should expect more consumer movement in the housing market as renters trade up due to more supply and less demand in market rate and above units, as well as increased ownership opportunities for prospective homebuyers and rental property investors with more sales inventory available.
Looking ahead, the anticipated increase in home sales and prices underscores the importance of strategic engagement in the market. This environment offers opportunities for small rental property owners to enhance property value and grow rental income. However, it also necessitates business focus and savvy in navigating regulatory changes, utilizing new technologies and best practices, and understanding market dynamics.
Additionally, our focus as business owners in the community should also include consistently reporting illicit activities (call 911) and all infrastructure emergencies (call 311 for tree removal, flooding, sewer overflows, graffiti, potholes, failed street signals, abandoned vehicles, illegal dumping, etc.) that can occur around your property. Today, being a passive, unengaged, and under-informed rental property owner could cost you tens of thousands of dollars.
An optimistic economic outlook can be tempered by our persistent challenges, including below-market-rate housing shortages and affordability concerns. The East Bay
Rental Housing Association (EBRHA) remains steadfast in its mission to support rental property owners and managers, with emphasis on our smaller rental owners/operators, who are the backbone of our economic community. Preserving our legacy owners/operators and their properties is critical to ensuring we have enough affordable and below-market-rate housing.
We constantly remind municipal leaders and legislators in Alameda and Contra Costa counties that our small businesses provide a significant number of below-market-rate housing units in the East Bay. An estimated 65% of below-market-rate rental housing is operated by local, small independent rental owners (IROs). Sadly, this number is rapidly shrinking as more small rental owners are driven out of business by anti-housing legislation, flawed business policy, rising operating costs (including fees and taxes), population exodus, and persistent area crime. With new incoming legislators taking the reins at the city, state and federal levels, EBRHA and its 1,500 members can substantially impact redirecting legislative priorities to set a pro-housing agenda that serves all community stakeholders.
Vigilant activism, community collaboration, municipal partnership, and owner engagement are required to reverse these alarming trends. It’s one reason we were able to launch the Housing Provider Resource Center (HPRC) in October. This new program assists rental owners/operators in unincorporated areas of the county through a contract with the Alameda County Housing and Community Development Department. Services will be provided in a collaborative effort between EBRHA, the Rental Housing Association of Southern Alameda County (RHASAC) and the Berkeley Property Owners Association (BPOA).
Engaging community stakeholders really matters in the complex housing ecosystem. That’s why, for the first time, EBRHA will launch an Annual Housing Collaborative (AHC) event in partnership with over 15 East Bay housing organizations and municipal partners to showcase their programs and services. The event will be held on Saturday, February 8, at BLOC15 near Jack London Square. The ACH is open to the public, all rental property owners/managers, homeowners, and aspiring property owners. Mark your calendars. More event details are included in this edition of RH Magazine.
Derek Barnes
In 2024, with the support of EBRHA members and fellow housing groups, our advocacy and fundraising efforts (raising nearly $300k through fundraising last year) have yielded significant victories at the state and local levels that include the following:
• Defeated Prop 33, an attempt to repeal Costa Hawkins and impose statewide rent control
• Passed Prop 34 restricts healthcare entities that promote non-healthcare-related ballot measures like Prop 33 from using taxpayer money to fund federal drug programs.
• Withdrawal of Assembly Bill 2216, the “Pet Bill,” which would have mandated rental housing providers to accept pets.
• Helped Albany property owners defeat Measure R to add a supplemental business license tax on rental property owners.
• Helped Concord property owners unseat incumbent Mayor Edi Birsan, who ushered in a draconian new rent control/stabilization ordinance in early 2024.
• Supported property owners in Berkeley, East Palo Alto and San Jose in defeating new versions of the Tenant Opportunity to Purchase Act (TOPA).
• Settled an EBRHA-backed eight (8) year garbage contract lawsuit, “Zolly vs. The City of Oakland.” The new settlement will allow property owners to pass through waste management increases to renters and have property owners at the table when negotiating future waste management contracts.
We are expecting another extremely active legislative year in California, in addition to the fiscal pressures that will significantly impact cities like Oakland in delivering critical services. EBRHA is committed to providing the resources and support rental property owners/managers need to thrive in this evolving housing landscape. Our core services include city-specific education, property management best practices, a comprehensive library of rental forms, applicant screening tools, listing services, monthly networking events, and robust advocacy at the state and local levels.
We encourage all members to actively participate in our in-person events, webinars, committees, and advocacy initiatives. Your engagement and commitment are crucial in shaping policies that protect and promote the interests of housing providers. Together, we can ensure that the East Bay remains a vibrant and equitable community for housing providers and renters.
While 2025 presents promising opportunities, it also calls for continued diligence and proactive involvement from all EBRHA members. We are stronger together. EBRHA stands ready to support you in navigating these challenges and seizing the opportunities that lie ahead.
housing?
NEW MEMBER PROMO
New members receive a $40 account credit when they join.
REFERRAL PROMO
Existing members refer a new member to EBRHA and receive a $50 account credit.
FIND THE LATEST EBRHA EVENTS & REGISTER AT WEB.EBRHA.COM/EVENTS
Hayward Shoreline Interpretive Center
* JANUARY 1 New Year’s Day
JANUARY 8
5:30-7:00PM In-Office Mixer
JANUARY 9
3-4:30PM Form Updates New Lease Agreement, Pt. 1
Presented by Ron Kingston
JANUARY 14
2-3:30PM The Roundtable Presented by Wayne Rowland
JANUARY 16
2-3:30PM The Forum Presented by Dan Lieberman
* JANUARY 20
Martin Luther King’s Birthday
* JANUARY 20
Presidential Inauguration
JANUARY 23
3-4:30PM Form Updates New Lease Agreement, Pt. 2 Presented by Ron Kingston
* FEBRUARY 1
Black History Month
FEBRUARY 5
2-3:30PM Member Meeting
FEBRUARY 8 9:00AM-3:00PM Annual Housing Collaborative (In-Person NEW Signature Event)
FEBRUARY 11
2-3:30PM The Roundtable Presented by Wayne Rowland
* FEBRUARY 17
President’s Day
* NON-EBRHA EVENTS
If you would like to submit an event, please send an email to editor@ebrha.com
Out & About
EBRHA MEETINGS, SPECIAL EVENTS, AND MEMBER MIXERS
EBRHA Member and Guests in deep industry discussion. EBRHA Holiday Mixer
Michele & David Haubert, Alameda County D1 Supervisor Holiday Party at Pleasanton Fairgrounds
L TO R: Chadwick Spell, Gwynn Smith, Deleign Thompson, Derek Barnes, EBRHA CEO. EBRHA Legal Fundraiser.
L TO R: Wayne Rowland, EBRHA Board President, Javier Gonzalas, Courtney Miller, Petra Brady. EBRHA November Mixer & Legal Fundraiser
L to R: Jorge Jimenes, EBRHA Board Member, Miguel & Alejandra Giraldo, Marcela Martinez. EBRHA Holiday Mixer
L to R: Patricia Wells, OHA CEO, Verna Julian, Percy Julian, Velma Chavis. EBRHA Holiday Mixer
L to R: Lateefah Simon, CA US RepElect, Mia Bonta, CA Assemblymember, Madlen Saddik, ACEA CEO. Women Leader’s Tea at Alameda Chamber Offices
L to R: Kiana Gums, Dist. Dir. for Rep. Barbara Lee Treva Reid, D7 Councilmember Larry Reid, Former D7 Councilmember. Reid Appreciation Luncheon at City of Refuge Church
L to R: Cathy D. Adams, OAACC President, Patricia Brooks, COS for CM Jenkins, Derek Barnes, EBRHA CEO. D6 Turkey Giveaway at Arroyo Viejo Rec. Ctr.
Legislation
EXAMINING AB 2747 AND ITS IMPACT ON RENTAL CREDIT REPORTING
BY RON KINGSTON
Let’s face it, many renters or would-be renters do have a history of paying rent. That information does not tend to show up on their credit reports and therefore does not impact their credit scores.
One bill that was signed into law may change these conclusions.
As a general rule, rent payments are not included in credit reports unless a renter defaults on rent and it goes in collections. This is remarkably different from mortgage holders who have on-time loan payments included in their credit scores. Positive rent reporting enables renters to proactively show their payment history, which could improve the renter’s creditworthiness. Renters and rental property owners do not report rental payments to the major consumer reporting agencies themselves as a rule. They do so through a third-party servicer or subscription with a consumer reporting agency.
AB 2747 (Haney) successfully introduced a bill this year that adopts the general framework of a bill that was signed into law in 2020, known as SB 1157 (Bradford) where that measure allowed permitted subsidized renters to pay up to $10 per month to rental property owners of those affordable housing units as an offset for costs associated with the owners who do report to the credit bureaus of on-time rent payments IF those renters so request and do pay the monthly fee. The Bradford bill does have safeguards such as eviction protection, so that non-payment for this program does not result in an eviction.
Why is positive rent payment included in the law? Unlike full-file reporting where all rental payments are reported regardless of whether they are on time, late or missed, this new law requires owners to offer only positive rent reporting. This means that the reports include only rent payments that the renter made and excludes missed payments. This is intentional. One common refrain
regarding the effects of the bill from 2020 full-file reporting was how difficult it was to overcome renter distrust of the initiative and communicating the “benefits” of on-time rent reporting. This is partially addressed in a HUD policy and research paper. By reporting the positive payments, the benefits to the renter are self-evident. However, note that the on-time rental payment program has a signif-
icant downside: if a renter does not request on-time credit reporting, does this imply that they are late in the payment of rent? Does this hurt the renter more than it helps the renter household? Hmm…
The bill does exclude owners of residential buildings that contain 15 or fewer units with a few exceptions. This exclusion does not hold if the owner owns more than one assisted housing
“As a general rule, rent payments are not included in credit reports unless a renter defaults on rent and it goes in collections.”
development, and the owner is a real estate investment trust, a corporation or a limited liability company in which at least one member is a corporation. The goal therefore of this exemption is to avoid placing a burdensome burden on small-scale, non-corporate owners who are likely to own these small rental properties.
Assembly Member Haney’s primary argument before the legislature was that many renters spend a majority of their income on rent (rent burdened if you will) and prioritize rent payments over most other expenses each month, and their on-time rent payments are never reflected on their credit scores, even when their missed rental payments are reported. This is unfair in the eyes of Mr. Haney and the supporters of the Haney bill. This they argue pushes (this is a highly subjective statement) into cycles of debt and poor financial health.
The provisions of AB 2747 as it is argued by the author and sponsors ensures that renters will benefit from paying their rent on time by requiring owners to report all positive rent payments to a credit bureau that gives renters a chance to see a direct financial benefit from choosing to rent and provide them a different credit path should the renter household elect to participate in this program and pay $10 per month to the owner in addition to any other financial obligation the renter may have to the owner.
The provisions of the bill affect leases entered on and after April 1, 2025. Owners must offer this program at least once annually thereafter to lessees and for leases outstanding as of January 1, 2025, the offer of positive rental payment information to be made no later than April 1, 2025, and at least once annually thereafter. Should a renter household elect to have positive rental payment history reported to a credit bureau to subsequently file a written request to stop that reporting and would require the owner to comply with that request. The new law also prohibits a renter who stops positive rental payments information reporting from electing reporting again for at least six months. Future rental property owners that see a rental applicant from stopping positive rental history reporting will unquestionably investigate reasoning or motivation behind the election to stop positive credit reporting.
Implementation and use of the terms of AB 2747 may not be as beneficial as one would think.
One must ask why would a renter pay $10 per month to ostensibly improve their credit score? Would it be to obtain an improved retail installment credit card? Would it be used to purchase or lease a different vehicle? In other words, as an Aesop Fable states: Be careful what you wish for. Ron Kingston is president of California Strategic Advisors.
Local Spotlight
HAYWARD
BY MICHELLE GAMBLE
Hayward, located in Alameda County, has a population of 162,954 and is the sixth largest city in the Bay Area. Its economy is based on manufacturing and features the corporate headquarters of many companies tied to Silicon Valley. Major manufacturers include Annabelle Candy, Columbus Salame, Shasta soft drink company, and PepsiCo distribution center.
Hayward has faced issues with crime and safety, however, many renters have described it recently in a positive light. One Reddit poster speaking about living in the area said, “Hayward is going to get nothing but better and better. It’s such a prime location to get anywhere, great weather, great diversity, and they do SO much. I have been working more and more with the city and community and am SO impressed with all the great things here.”
GOVERNMENT
The Mayor and six Council members represent the residents of Hayward, review public policy, and adopt policies responsive to the community.
The City Council meets the first, third and fourth Tuesdays of each month at
“Hayward is the sixth largest city in the Bay Area”
7 p.m. in Council Chambers, 2nd Floor of 777 B Street, Hayward, CA 94541.
Hayward also has appointed bodies. Property owners can participate in Hayward’s government processes. Commissions and Task Forces are established for the purpose of advising the City Council and providing ongoing input into policies and issues affecting the future of the City of Hayward. If there is a task force property owners would like to participate in, the city website explains the process. Volunteer service on any City Commission or Task Force provides an opportunity for residents to participate in the city’s decision-making process by advising the City Council and staff on a wide range of important topics. If you’re interested, visit: www.hayward-ca.gov/ your-government/appointed-bodies.
PROPERTY OWNERSHIP
The City of Hayward has some unique positions on property ownership. First, they have a strong Code Enforcement Division, which helps to protect general health and safety, neighborhood integrity, private prop-
erty, residential housing conditions, and enhance the quality of neighborhoods. It is an integral part of the city’s commitment to neighborhood improvement and sustainability. In partnership with residents, neighborhood associations, public service agencies, city departments, and local businesses, Code Enforcement strives to provide the most responsive and in-depth service available to keep our communities safe and clean.
Hayward also strongly supports small- to medium-size property owners, which represents the majority of the property owners in the East Bay. The city says, “We recognize and support the crucial role smaller, low-volume, ‘Mom and Pop’ owners and managers of rental properties with four or fewer units play in providing safe, secure and affordable rental housing opportunities. We support regional and municipal policies which enable these property owners and managers to sustainably function as housing providers.”
The city also works with property owners and other interests to overcome the regional homelessness problem. The city organized the Homelessness and Housing Task Force in 2019. Although current discussions suggest changing or eliminating the group, its mission is to “address a ‘time-limited’ task, the Task Force has been extended twice over the last five years, and been the starting point of some transformative polices: the Residential Rent Stabilization Ordinance (RRSO), Tenant Relocation Assistance, the Affordable Housing Ordinance, and a Rental Registry (still in the works).”
AVERAGE RENT
(1-2 Bedrooms): $2,076
Vacancy Rate: 4.5%
Rent Control: Yes*
Rent Registry: No
Just Cause Ordinance: Yes
*Specific restrictions based on the number of units.
DEMOGRAPHICS
(Source: City of Hayward) 18.1% White 8.7% Black/African American 0.9% American Indian and Alaska Native 2.6% Native Hawaiian & Other Pacific Islander
Asian Indian
Chinese
Filipino
Japanese
Korean
Vietnamese
Other Asian
Some other race
Two or more races
Mexican
Puerto Rican
Cuban
Other Hispanic or Latino
Ariel view of Hayward bay
Educate
BEST INTERIOR DESIGN BOOKS FOR PROPERTY OWNERS
We asked property owners and operators what are the best books for interior design and here are their responses.
“I recommend The Business of Apartment Hacking by David Tilney. Even though this is not exactly an interior design book, it has a blend of design and insights in terms of strategic management of the property. It is useful especially because it gives strategies on how to make spaces look appealing and suitable for occupied rental and on a low budget as well. For instance, Tilney recommends the use of strong materials that are easy to maintain. I think that is very useful where people have to frequently rotate renters. Another aspect he discusses is how to layout spaces that are relatively smaller and in rental properties it is ideal for making them warm and attractive and allowing flexible design.” ~ Yosef Adde, owner I Buy Houses
“One interior design book I’ve found highly valuable for rental units is Styled by Emily Henderson. It excels at combining aesthetics with functionality, which is crucial for rental properties to attract and retain renters. The book’s practical advice on using existing elements to create universally appealing spaces helps improve the property’s value without significant investment. In my role coaching real estate agents, I’ve seen how upgrading interiors can significantly impact rental income. For instance, utilizing Henderson’s approach to blending
cost-effective decor with personalized touches can lead to quicker renter turnover and higher satisfaction. This strategy provides an efficient return on investment by increasing the rental’s appeal without a complete makeover. From my experience leading growth initiatives at WeWork and Sotheby’s International Realty, I’ve observed that well-designed spaces foster positive client experiences and business growth. Styled offers the kind of actionable guidance that aligns with industry trends, making it a valuable resource for property owners looking to lift their rental units’ appeal and marketability.” ~ Ashley Gawley, Vice President of Strategic Growth, WeWork Sotheby’s International Realty
“One interior design book I’ve found indispensable is The Interior Design Handbook by Frida Ramstedt. It provides detailed guidance on the principles of design, which is especially crucial for creating harmonious rental spaces. This book helped me improve the marketability of rental units by focusing on balance, rhythm, and proportion in room layouts. From my experience managing ADU projects, the book’s emphasis on effective space utilization was transformative. For instance, I applied its strategies to create multifunctional areas in ADUs, allowing renters to enjoy flexible living environments that cater to work and leisure, ultimately increasing renter satisfaction. In the Pacific NW, I’ve seen the impact of thoughtfully designed spaces on property value firsthand. A well-planned interior not only appeals to potential renters but also sustains long-term occupancy. Frida Ramstedt’s book offers practical
insights that align perfectly with the demands of modern property owners looking to make a lasting impression.”
~ Richard Garrett, RG Construction
“I recommend The Business of Home by Andrew Joseph. This book outlines concrete design approaches that seek to achieve aesthetically appealing, functional yet cost-efficient spaces, which is perfect for owners of rental properties. Joseph suggests robust color combinations, textures and spatial arrangements to enhance the leasing experience, great for clients wanting to feel as though they are living in a premium unit. This is especially beneficial for rental units, as it is important to contain the expense while not compromising the appeal to the renters.” ~ David Milo, owner of Independent Lending
tones and sustainable materials not only lifted the space’s charm but also aligned with eco-conscious trends that renters value. Utilizing Liess’ guidance, I’ve helped transform underused spaces by harmonizing thoughtful design with structural elements. This book aids property owners in crafting spaces that resonate with both modern and vintage touches, leading to faster tenant acquisition and increased rental satisfaction.” ~ Ryan Norman, founder of Norman Builders
“One interior design book that has been a valuable resource for enhancing my rental units is The Business of Design: Balancing Creativity and Profitability by Keith Granet. I enjoyed Granet’s book because it has been able to combine the artistic beauty of architecture and design with commer-
“...I’ve seen the impact of thoughtfully designed spaces on property value firsthand.”
“One interior design book I’ve found incredibly beneficial for property owners looking to improve their rental units is Habitat: The Field Guide to Decorating by Lauren Liess. Given my background in construction and real estate, I find Liess’ holistic approach to integrating natural elements and practical design tips particularly useful for creating timeless and appealing rental spaces. I’ve often applied the principles from Habitat in my renovation projects, extending beyond aesthetic appeal to emphasize functionality and sustainability, which can noticeably increase a property’s desirability. For instance, in one kitchen remodel, incorporating natural wood
cial practicality quite well. It provides advice regarding design elements and features of the space that would appeal to renters as well as give cost-effective alternatives. Following Granet’s advice, I have implemented some very impressive design changes which enhance the quality of renters, reduce management times, and increase rent returns. My view of a rental space design changed after reading Granet’s book. It is not only about the luxury of the design and style but how everything is put together to create a warm and contemporary designed environment that will definitely increase demand and have prospective renters pleased.” ~ Bubba Peek, owner Bubba Land Company
Inform
CALIFORNIA NEEDS CREATIVE STRATEGIES TO SOLVE HOUSING CRISIS
BY LYNN KREHER
It has been reported that California is three million homes short, and in the San Francisco Bay Area, these cities and counties are 700,000 houses short. With such a tremendous deficit in available housing, it has created an ongoing crisis, especially when you consider the homeless issue on top of it. Why has it come to such a level where people often can’t either afford to live near
their jobs or can’t find somewhere to live? The answer is new policies, rules and regulations need to be more flexible, creative and inviting for property investors to build more homes.
“Building homes in California feels like trying to run a marathon through a maze,” said Martin Boonzaayer, The Trusted Home Buyer. “Costs for labor and materials are some of the highest in the country, and skilled workers
are in short supply. Then there’s the paperwork – approvals can take years. Even when builders do get the greenlight, they often prioritize luxury units because that’s where the profit is. Affordable housing gets left behind, which is what most people need. Add in neighborhood resistance – people worried about losing their ‘character’ or dealing with more traffic – and many projects stall before they start.”
According to property owner Sir Michael, who owns rentals throughout the US and Canada, the answer boils down to issues that many property owners universally agree cause the most barriers. “The reasons are clear: long and complicated permit processes, soaring costs for land, labor and materials, and restrictive zoning laws that favor single-family homes over higher-density options. On top of that, community resistance to new developments and outdated regulations like CEQA often delay or block projects.”
Among the top-cited issues are zoning restrictions. “New homes and multi-unit complexes struggle to keep up with demand in California due to regulatory hurdles, high construction costs, and limited available land,” said Matiah “Ty” Fischer, founder, TotalSoCalHomes.com. “Zoning restrictions often prioritize single-family homes, making it difficult to develop higher-density housing. Lengthy approval processes and community opposition further delay projects.”
Another area of concern involves environmental regulations that can often stop or delay construction of new homes on open land. “California’s housing crisis is rooted in deeply entrenched issues like restrictive zoning, especially in urban areas where single-family zoning dominates” said Shirley Mueller, senior vice president of Mortgage Lending at CrossCountry Mortgage, LLC. ”Environmental regulations, while essential, add another layer of complexity and cost to the building process. Furthermore, the state’s high land costs discourage builders from pursuing projects with lower profit margins, such as affordable
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housing. Even when land is available, local opposition can halt or significantly delay developments that might otherwise address housing shortages.”
INNOVATIVE IDEAS
At the fundamental level, cities and counties need to address policy and regulations that impact housing, but also leaders need to be open minded about trying new ways to create homes. Thinking outside of the proverbial “box” can create innovative solutions.
We need fresh ideas to meet this challenge,” said Boonzaayer. “Modular homes and prefab construction can cut down building times and costs, making it easier to scale up quickly. There’s also a huge opportunity in repurposing unused spaces, like converting old offices or big-box stores into apartments. Tiny home communities, which are compact but fully livable, can provide an affordable option for individuals or small families. And why not explore co-housing, where people share communal spaces like kitchens and gardens but still have their private living areas? These models create a sense of community and use land efficiently.”
“Property owners can play a crucial role in addressing the housing shortage by adopting more flexibility
in land use,” said Nathan Richardson, founder of CashForHome.com. “They can consider repurposing underutilized commercial spaces or large properties into residential units, including offering portions of their homes for rental. Encouraging the development of accessory dwelling units (ADUs) on existing properties is another practical step, as these smaller homes can provide immediate relief to the housing supply. By working with urban planners, property owners can also identify strategic areas for high-density housing, ensuring developments are thoughtfully integrated into the community fabric.”
“Property owners have more power than they think to make a difference,” explained Boonzaayer. “For starters, they could embrace zoning changes that allow for duplexes or small apartment buildings in traditionally single-family neighborhoods. If they have space, they might consider adding an ADU – a backyard cottage or garage conversion. These can provide housing for extended family, renters or even low-income renters. Property owners can also support housing initiatives at the local level by showing up to city council meetings and speaking out in favor of new developments
instead of opposing them.”
Another emerging trend is to erect prefabricated homes, like the ones offered by Tesla or Amazon. Tesla prefabricated homes start at $10,000 and offer a quick fix, especially to house the homeless. “Modular homes and prefab construction can cut down building times and costs, making it easier to scale up quickly,” continued Boonzaayer. “There’s also a huge opportunity in repurposing unused spaces, like converting old offices or big-box stores into apartments. Tiny home communities, which are compact but fully livable, can provide an affordable option for individuals or small families.”
“Innovative housing solutions offer promise in alleviating California’s housing crisis,” said Richardson. “Prefabricated homes and modular construction present a cost-effective and time-efficient method of building homes. These techniques reduce construction times and material waste, enabling quicker responses to housing needs.
“Furthermore, co-housing developments and communal living spaces can maximize land use while fostering community interaction. Cities could also explore urban infill projects, using vacant lots within city limits to add housing without sprawl. Leveraging technology and creative architectural designs can lead to sustainable, high-density urban housing solutions that address both current and future housing needs efficiently.”
It’s going to take a cooperative strategy between policymakers and property owners to resolve the housing crisis, not only effectively but efficiently. We have people going without proper shelter in one of the most diverse and beautiful states in the nation. No one should not be able to find housing when they need it due to restrictive regulations and policies getting in the way of solutions.
Lynn Kreher is a Bay Area Writer.
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Inform
DISCOVER THE ANNUAL HOUSING COLLABORATIVE: A NEW HUB FOR HOUSING RESOURCES
BY CHRIS TIPTOM
Navigating the complexities of rental housing in the East Bay has long been a challenge for rental housing providers and renters alike. With countless non-profit organizations and municipal services offering crucial resources, finding the right support often feels like a daunting task. Realizing that there must be an easier way to introduce these services, the East Bay Rental Housing Association (EBRHA) is proud to announce a groundbreaking new event: the Annual Housing Collaborative. This premier gathering aims to unite the housing community under one roof to simplify access to vital resources and foster meaningful connections.
Mark your calendars for February 8, 2025, and join us at BLOC15, Oakland’s premier event venue space, for this inaugural event. From 10 am to 3 pm, attendees will have the unique opportunity to explore a wide array of services, engage with industry experts, and enjoy lunch, all while discovering how the Collaborative is working to make housing in the East Bay more accessible, safe, and compliant.
For years, EBRHA’s team has dreamed of creating an event where rental housing providers and renters can easily access the many resources available to them. The Annual Housing Collaborative is the realization of that vision. This event brings together a diverse network of non-profit organizations, municipal agencies, and housing professionals, all dedicated to supporting the rental housing ecosystem in Alameda County. Here’s what to expect at the Collaborative:
“Together, let’s make the East Bay a place where housing works for everyone.”
Centralized Access to Resources
Trying to navigate the maze of local services can be overwhelming for housing providers and renters. The Collaborative eliminates this confusion by bringing all the key players together in one location. Whether you’re looking for renter mediation services, housing placement services, property management education programs, or assistance with housing compliance, you’ll find it here.
Building Connections and Community The Collaborative is more than just an event; it’s a hub for building relationships. By connecting rental housing providers, renters, and support organizations, we’re fostering a stronger, more informed community. This network is essential for tackling the unique challenges of the East Bay housing market and ensuring that everyone involved has access to the tools and knowledge they need to succeed.
Empowering the Housing Ecosystem The Collaborative underscores EBRHA’s commitment to empowering its members and the broader housing community. By facilitating access to education, resources, and advocacy, this event supports our shared goal of creating a housing community that is fair, equitable, and sustainable for all.
Engage with Leading Organizations Attendees will have the chance to meet representatives from dozens of non-profit organizations and municipal agencies. These groups provide a wide range of services, from renter support and eviction prevention to
rental owner compliance guidance. It’s a rare opportunity to learn about these resources firsthand and make connections that can benefit you for years to come.
Networking Opportunities
Whether you’re a rental housing provider, a renter, or a housing advocate, the Collaborative is the perfect place to expand your network. Exchange ideas, share experiences, and connect with others who are passionate about creating a thriving housing community.
The Annual Housing Collaborative represents a pivotal moment for the East Bay housing community. By bringing together the organizations and individuals who make housing accessible, safe, and compliant, this event lays the groundwork for lasting change. Whether you’re a seasoned housing provider, a renter aspiring to own, or someone seeking to better understand the resources available in Alameda County, the Collaborative is designed with you in mind.
This event is open to EBRHA members, non-members, and renters, reflecting our belief that collaboration is the key to addressing the complex challenges of housing in our region. We encourage you to spread the word to colleagues, neighbors, and friends who may benefit from attending.Join us on February 8, 2025, at BLOC15 in Oakland for a day of discovery, connection, and inspiration. Together, let’s make the East Bay a place where housing works for everyone.
Date: February 8th, 2024
Time: 9:00 AM - 3:00 PM
Location: Bloc15 252 2nd Street Oakland, California 94607
Join us for this FREE event designed to connect property owners and renters with a wide range of support programs available in Alameda County. This newly created housing event will feature over 20 community partners offering an array of resources for aspiring real estate investors, homeowners, and rental owners/operators
SCAN TO REGISTER
EVENT HIGHLIGHTS:
Grants & Assistance Programs
Energy Savings Rebates
Home Repair Subsidies
Fair Housing Education
Affordable Housing & Section 8
First Time Buying Programs
WHY ATTEND?
. Learn about the programs available for renters and property owners
Discover resources that will help you start or continue your journey in real estate investment
Access expert guidance from partners who specialize in housing, subsidies, rebates, and support services
The rental housing industry in the East Bay generates an impressive economy surrounding it. According to Chris Tipton, who wrote an article in the November Rentrospect, the rental housing business “stimulates a diverse workforce and the broader housing market, playing a significant role in the community’s overall sustainability. According to a recent Bay Area Census and rental data from Zumper, the rental housing economy in the city of Oakland alone generates an estimated $2.5 billion to $3 billion in annual revenue based on the current median rent and the estimated number of rental units in the city.”
The numbers show the significant financial contributions this industry
provides to its communities of interest. However, the property industry also gets plagued by government over-regulation that leads owners to constantly spend millions of dollars to protect its own interests. The industry also has to continually challenge and fend off destructive legislation that often protects renters more than property owners (e.g., squatters’ rights).
Breaking this subject down to the first issue, over-regulation; owners find their business interests tied to helping to solve a major housing shortage in California while finding their hands tied because of too many restrictions to launch new housing. In an earlier article in this edition of the magazine where owners were inter-
viewed about this shortage, almost all responded that over-regulation and too much government oversight highlighted their number one concern.
“California’s failure to meet the housing demand, especially in places like the San Francisco Bay Area, has many intertwined causes,” said Nathan Richardson, founder of CashforHome. “To begin with, the laws and policies are a big obstacle. Stringent zoning laws, lengthy approval processes, and environmental regulations often slow down the construction of new homes and multi-unit complexes. These policies, though aimed at promoting responsible growth, instead create obstacles that postpone the realization of schemes and raise ex-
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penses. Moreover, a limited workforce and expensive construction materials make matters worse, inhibiting developers from producing enough stock of housing to cater to the growing needs.”
Now consider the continual threat to implement strict rent control throughout California with the introduction (and failure) of Prop 33 (aka Costa-Hawkins). Prop 33, according to the ballot description, would have expanded local governments’ authority to enact rent control on residential property. Initiative statute. Current state law (the Costa-Hawkins Rental Housing Act of 1995) generally prevents cities and counties from limiting the initial rental rate that property owners may charge to new renters in all types of housing, and from limiting rent increases for existing renters in (1) residential properties that were first occupied after February 1, 1995; (2) single-family homes; and (3) condominiums. This measure would repeal that state law and would prohibit the state from limiting the right of cities and counties to maintain, enact or expand residential rent-control ordinances.
The proposition got voted down, but it keeps coming up during elections and simply uses slightly different language to push its goal. How does it impact property owners and have a negative impact on the economy of rental housing? The answer involves the ongoing costs to stave off these kinds of regulatory legislative bills and propositions.
According to LA Public Press, “More than $220 million has been funneled into California’s competing ballot measures Prop 33 and Prop 34, and most of that money has come from property owner interests, who have put up $157.5 million to date in a bid to thwart efforts to strengthen rent control laws in cities across the state.”
Consider how much money was spent on related issues during the election that also got allocated toward defeating other measures. It’s even more than $220 million. Imagine for a moment, if property owners could take that money and reinvest it in their properties. More investment ripples out to related industries, generates more income, and expands opportunities. Renters enjoy improved
housing features and amenities.
It’s a win-win. Owners have more money to invest. Other related industries enjoy more opportunities and business. Renters get nicer housing.
State and local governments need to be better partners to this industry versus introducing nonstop legislation to require the industry to continually spend money to fight off problems. In 2024, over 2,000 housing-related pieces of legislation got introduced. How much money did property owners use to stave off this over-regulation? Money that could have been spent so much more effectively on something else.
Let’s aim to engender cooperation and understanding among different stakeholders to solve this expensive problem. Real private-public partnerships where understanding of the real needs of the property owners matter just as much as those of renters. It requires a switch from adversarial relationships to cooperative collaborators to make the housing industry and overall better place.
Michelle Gamble is the editor of Rental Housing Magazine.
Oakland, California Lake Merritt waterfront buildings at sunset
Connect
BECOME A PROPERTY OWNER “INFLUENCER” IN LOCAL GOVERNMENT
BY LYNN KREHER
Do you feel stuck at the mercy of local and state lawmakers who may or may not understand the nuances and challenges of being a property owner/operator? Does it make you feel powerless to see rules and regulations proposed and passed even when it doesn’t make sense to your business? Do you feel frustrated at the often expensive and sometimes unfair rules and regulations you have to adhere to when you feel it’s unjust? So, what can you do about it?
ical to being seen as a valuable contributor to the policymaking process.”
GETTING STARTED
“Building relationships with policy makers involves consistent and genuine engagement...”
Become a government “influencer.”
No, that doesn’t mean singing and dancing on TikTok or making political statements on X or Instagram. It means taking a proactive role in local government to affect change and be proactive to at least try to have a voice in these decisions.
Building relationships with policymakers requires consistent engagement,” said Zev Freidus, president of ZFC Real Estate. “Attending town halls, scheduling meetings with local representatives, and participating in housing-focused events are all excellent ways to establish rapport. Many policymakers in Florida value insights from experienced property owners because rental housing plays a critical role in the state’s economy.
“By maintaining open, constructive dialogue, I’ve been able to discuss issues like property tax assessments and property owner-renter laws,” added Freidus. “Offering solutions, rather than just highlighting problems, is crit-
One of the most direct ways to get involved in local government decision-making and planning is to go to City or County government council or supervisor meetings. Find out not only the names and affiliations of the members, but also research their stances on property ownership and the housing industry. Discover who is in charge of what area of representation, then go to a few meetings to watch and observe. Get to know who is on your proverbial team and who may pose issues you don’t agree with.
“Building relationships with policy makers involves consistent and genuine engagement,” said David Greiner, Esq., Greiner Law Corp. “During my time as president of Greiner Buick GMC, engaging with local government and community organizations was key to sustaining business and influencing beneficial changes. Property owners should absolutely band together to amplify their influence, as collective voices often carry more weight in policy discussions.”
“Many property owners get involved in local government through committees like housing advisory boards or community redevelopment agencies (CRAs),” said Freidus, “These groups influence housing policy, zoning, and development priorities.”
“Sometimes the best way to start is by attending local council meetings,”
said Adam Hamilton, CEO, REI Hub. “These meetings are open to the public and can be your primary entrance point to learning about how decisions are made and what kind of impact people seem to have on those decisions. Also, these can be excellent opportunities for networking. You can get to know other property owners who are also at these meetings, and you can also learn who the council members are.”
“To innovate and get involved in policy creation, I focus on staying informed about local issues and being proactive in addressing them,” said Greiner. “Hosting forums, like the High Desert Senior Forum, provides a platform for discussing pressing issues and directly influencing policy by bringing together stakeholders and decision-makers.”
“We’re in the business of simplifying legal form creation, making it easy and affordable for people to draft various contracts and agreements with our online tools,” said Mike Chappell, co-founder and CEO of FormsPal. “Having built FormsPal from the ground up, I understand the importance of engaging at the local level.
In areas like this, joining key local committees, such as housing advisory boards or rent control task forces, can be incredibly impactful. These groups provide property owners a voice in shaping regulations affecting rental housing, giving us a chance to share firsthand insights and make sure the policies are balanced.”
When it comes to politics in the East Bay Area, property owner Aymane Ababoussayr said, “In the East Bay Area, I’m definitely engaging with the Housing Advisory Commission to influence rental housing policies locally.
Inspire
FLUFFY-FRIENDLY RENTALS
BY MICHELLE GAMBLE
Property owners are pet owners, too. While concerns exist that pets destroy properties and recent failed attempts to mandate pets be allowed into all rentals, reality is many owners fully value and understand why creating pet-friendly spaces ranks high on the list of keeping vacancies low. People don’t just love their pets, but those animals become their family members. Restricting pets can actually deter renters from leasing pet-restricted properties.
Savvy owners, who also adore their own pets, would never think to prohibit animals in their rentals. They understand how renters feel about their beloved dogs, cats or even small animals like hamsters or birds. Other owners, who don’t have pets, often recognize the value of allowing animals into their properties. As a result, some property owners proactively design and rent properties specifically created to attract pet owners.
“I’m pet-friendly because I am a pet owner myself,” said Adam Hamilton, CEO of REI Hub. “I have also been a renter with pets in the past, so I know how important pet-friendly properties can be for people to find. I still charge a pet fee, but it’s lower than what you’ll usually find. I also make sure that my properties are secure and as pet damage-proof as possible.”
“The properties that I own are all pet friendly,” said Seamus Nally, CEO, TurboTenant. “I am simply such a big pet-lover myself that I know the benefits of owning a pet outweigh the potential risks of problems like property damage. I also know from experience that tons of renters specif-
ically look for pet-friendly properties, so by having pet-friendly properties, I can often attract renters even more easily. All of my properties have great, secure fencing so that dogs can run freely in the backyards without the renters having to worry about them escaping. Some of them even have pet doors.” “Pet-friendly properties can indeed access an untapped emotional market,” said Jason Huang, urban rental manager. “Renters benefit from enhanced well-being when they know their beloved pets are allowed in their homes, which in turn results in prolonged tenancy. Properties with specialized pet features record up to 50 percent lower turnover ratios at least. It is widely known and agreed that when renters feel cared for and respected, they are more likely to make the place their home for longer periods of time.”
SWEETENING THE PET AMENITIES
So, what can a property owner do to attract more pet owners and even create a buzz among renters that your properties are the places to rent based on those extra amenities? Some pet-friendly techniques are based on the kinds of flooring and space choices and others are based on actual physical amenities designed to be conducive for pet ownership.
“Many property owners turn to pet liability insurance, highlighting a mutual interest in accommodating pet owners,” said Paul Schneider, insurance provider. “We advise clients to incorporate practical solutions like easy-to-clean materials and durable furnishings, reducing wear and tear
from pets and simultaneously enhancing curb appeal.”
“To attract pet owners, I’ve seen effective strategies such as incorporating specialized cleaning protocols in common areas where pets are allowed,” said Austin Jones, CEO of Millennium Facility Services. “Specific pet-friendly cleaning products are used that ensure safety for animals while maintaining space hygiene. Such steps not only improve the living experience for pet owners but also maintain property standards, vital for retaining renters.
“These efforts have been directly linked to increased satisfaction among renters, contributing to higher retention rates. Facilities under our management have seen greater renter
loyalty when pet-friendly amenities are provided and properly maintained.”
Physical amenities and structures, especially when designing a new house or multi-unit complex, can be imagined specifically to accommodate animals. “To stand out, I incorporated features that solve real pain points for pet owners,” explained Silvia Lupone, owner, Stingray Villa. “One standout is a ‘pet pantry’ stocked with essentials like emergency waste bags, treats and first-aid items accessible 24/7. Noise-dampening insulation between units addresses common concerns about barking or scratching, creating harmony for all renters. Outside, we added a seasonal dog splash pad for summer fun, alongside a dog park with
shaded seating. In units, claw-resistant flooring and pet-safe paint reduce damage worries.”
Lupone continued, “These efforts have paid off with incredible renter loyalty. Pet owners often refer friends, drastically lowering marketing expenses. Renter retention has improved, with many citing the convenience and care extended to their pets. Even renters without pets appreciate the vibrant, community-oriented atmosphere. By addressing renters’ needs and creating a pet-inclusive environment, we’ve built a property where everyone, human or furry, wants to stay.”
“I encourage property owners to go beyond standard features,” said Dr. Mark McCalla, a licensed veterinarian
dedicated to promoting pet-friendly communities. “Installing filtered pet hydration stations in common areas ensures pets stay healthy, especially during warm months. Creating quiet zones where older or anxious pets can unwind provides a thoughtful touch many renters appreciate. Hosting free pet behavior workshops for new renters not only helps them settle in but also reduces conflicts, making the community more harmonious. These unique amenities signal that you care about pets and their well-being.”
And here’s a unique idea: hosting the Pet Olympics. “What about the unusual Pet Olympics, hosted at innovative pet resorts? Those could be interesting events to make some loud noise around,” said James White, property consultant. “Featuring the fantastic on-site facilities for some fun agility classes or even a pet fancy dress contest. And do not forget silent pet therapy, one of which enables a pet owner to sit with a qualified therapist, and with their dog within an eye sight so that relaxation exercises get done smoothly. Sure this is not for everyone, but yes it helps in strengthening the community bonds along with mental wellbeing.
“Such pet friendly policies have resulted in some of my clients achieving up to 70 percent better renter satisfaction rates,” continued White. “As renters see their pet-friendly policies getting adopted and applauded, they love renewing their leases (and spreading the news).”
Michelle Gamble is the editor of Rental Housing Magazine and author of the new book Kitty Wisdom.
Inspire
TRENDS IN KITCHEN AND BATHROOM DESIGNS
BY BREA HARPER
If you want to increase your rental property’s value and attract droves of prospective renters, then consider improving or remodeling your kitchens and/ or bathrooms. These areas of the home are where people spend the majority of important events, from breaking bread over special moments to cleaning and grooming. Upgrading these areas of a house or multi-unit complex will lower renter turnover rates and increase the property’s attractiveness and value.
“In the private homes that we’ve helped clean and organize, I would say that those with reduced vacancy rates have specifically paid attention to the kitchen and bathrooms,” said Joseph Passalacqua, owner and CEO of Maid Sailors. “As these are the most essential and busiest areas, these are also often the first to show signs of wear and tear. Hence, these should be more than meets the eye to potential renters.
“To add to the appeal and elevate the property’s value, I suggest upgrading with functional designs, efficient storage solutions, and modern fixtures that would give your property a fresh, vibrant, and up-to-date character,” explained Passalacqua. “Taking the extra mile would bring you to a competitive edge, especially with more flexible options in renting now. Overall, remodels work not just to impress, but to gain the confidence and trust of potential renters that your property would be worth turning into a home.”
Be advised that kitchen and bath remodels will be the most expensive upgrades; however, the return on investment (ROI) makes it worthwhile. “A full remodel of kitchens and bathrooms is time-consuming,”
said Darren D, interior designer and home remodeling expert, ElmWood Flooring. “Anticipate a day of vacancy for every $1,000 spent, once the work commences. Organizational efforts could add another half-month. Viewed in this context, a remodel costing $25,000 to $50,000 could result in 30 to 60-plus days off the market. With a monthly rental rate of $2,500, this equates to a potential loss of $5,000 to $7,500 in rental income, approximately. These costs and days will vary from project to project.”
KITCHEN TRENDS
An investment kitchen remodels or new designs should avoid fad trends and focus more on classic styles that don’t date your units. Choosing classic designs ensures your investment goes a long way toward paying off. Fad choices lead to those styles going out of trend and require another remodel sooner than later. So, be strategic in overall choices to get the most out of the expense to do it.
Many current designs for kitchens adopt minimalist or natural, spa-like designs. These design styles also apply to bathroom designs. People enjoy the relaxing and soothing feel of these remodels, which matters when people live hectic lives and want to come home to serenity. However, kitchen designs that create a lively focal point in a home have recently come into style.
“Kitchens today are evolving into multifunctional spaces that serve as the heart of the home,” said Josh Qian, COO and co-founder, Best Online Cabinet. “There’s a strong trend toward open-concept designs that facilitate social interaction while cooking.
A CHECKLIST OF RECENT KITCHEN DESIGN TRENDS
SOURCE DARREN D.
Vibrant hues to the kitchen island or butler’s pantry for a pop of color.
Granite countertops: Use bold colors, textured finishes, or natural stone mosaics to make a statement.
Open shelving: This stylish storage solution allows for the display of dishes and decor, creating a kitchen focal point.
Back kitchens: These secondary spaces, situated behind the main kitchen, offer additional prep areas.
Contemporary kitchen design: Embrace cooler color schemes, often highlighted by bright whites or grays.
Double islands: In smaller kitchens, a pair of islands can enhance the flow of movement.
Bold colors, especially deep hues like emerald green and navy, are being embraced to create dramatic focal points. The mix of textures is crucial. Pairing different materials like wood, metal, and stone adds depth and character.” When it comes to kitchens, Yosef Adde, owner, I Buy Houses Torrance, said, “More people are aspiring to appear trendy but practical, and I have added functional islands depicting a butcher block countertop for an elegant flair for aesthetics along with
energy saving microwave-type devices to the contemporary kitchen designs I’ve revamped.”
“For kitchens, open concepts, smart appliances, and sustainable materials are leading trends” said Jason Lamprey, owner of Lamprey Construction. “At Square One Contracting, we’ve implemented these by integrating energy-efficient appliances and using bamboo flooring, helping create stylish and eco-friendly kitchen spaces.”
BATHROOM TRENDS
The bathroom is the most intimate place in the house. Renters spend their most private time in the bathroom, and it’s especially inviting when it’s designed to soothe and rejuvenate occupants. Consider time spent doing things like relaxing in a big bathtub to wind down after a busy day. So, renters place a high value on a nice bathroom, especially when it’s connected to the master bedroom.
Qian said, “Today’s bathroom design trends prioritize a spa-like experience,
focusing on creating an oasis of relaxation. Natural materials, such as wood and stone, are favored for their ability to bring a calming, earthy feel into the space. Matte finishes are gaining popularity, moving away from glossy surfaces to create a more sophisticated and understated ambiance. The use of large-format tiles in both flooring and walls allows for fewer grout lines, making spaces feel more expansive and streamlined. Features like rainfall showers and soaking tubs are becoming focal points, encouraging a retreat-like atmosphere.
“We have integrated these trends by focusing on high-quality materials that reflect the current desire for a natural aesthetic,” continued Qian. “Our custom cabinets can be designed with warm wood finishes, offering a beautiful contrast to cool stone countertops. We also emphasize functionality by incorporating features like built-in shelving for toiletries and floating vanities that enhance floor space. By staying attuned to these
A CHECKLIST OF RECENT BATHROOM DESIGN TRENDS
SOURCE: MARIA BATRYN, CO-FOUNDER OF HASTEN AND TANTIFY Clean, minimalist designs with neutral color palettes
• Large-format tiles or luxury vinyl flooring
• Updated fixtures in matte black or brushed gold finishes
• Glass shower enclosures where space permits
• Strategic lighting, particularly around mirrors
• Floating vanities that create a sense of space
• Plants and natural elements for a spa-like atmosphere
• Clean, spa-like aesthetics with high-end shower curtains or glass shower enclosures
trends, we ensure that our renovations meet contemporary tastes and provide lasting value and comfort.”
So, you can see the results can lead to the success of your property business. Upgrading properties might cost money upfront but in the long run, it offers a viable ROI and business success.
Brea Harper is a Bay Area writer.
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RENTAL MARKET
Predictions for 2025
With the election behind us, yielding mostly positive local and state success for the real estate industry, the holidays allow some to reflect and take a pause from the grind. The nonstop political ads and text messages have finally come to a halt. We can all look forward to smoother waters in 2025 as Prop 33 overwhelmingly failed and 34 narrowly passed, right? Similar to stubbornly high inflation and interest rates, other issues plaguing the housing market for the last three years will continue to put downward pressure on rents, values and profitability.
Having survived 2023 and 2024, the highest interest rate environment we’ve experienced in 20 years, few predict interest rates will ease down to levels we saw in the pandemic. If anything, 2025 will likely be another volatile year with swings in interest rates and a shift in national policies from a new congress and presidency. Economists and policy experts are starting to weigh in on how proposed changes with taxes, tariffs, immigration, and budgets/deficits will impact the housing market. Amidst global turmoil in the Middle East, Eastern Europe and Asia, US treasuries tend to sell at lower yields in times of uncertainty, regardless of what action the Federal Reserve takes on short-term interest rates.
From a policy standpoint, it’s likely we will see an extension of the tax cuts. On the one hand, this has a stimulatory effect on the economy, but it also carries the risk of higher deficits without a reduction in government spending. Aside from the surplus late in Clinton’s tenure, we rarely approach anything that resembles a balanced budget. California also faces a massive deficit due to heavier reliance on income and capital gains taxes. I have not seen any credible threats/repeal to 1031 exchange as we have under Congress/presidencies.
Locally, many hope a new Oakland mayor and Alameda county DA will help improve on crime, safety and quality-of -life issues, but economic issues continue to reduce City and County budgets. The Federal COVID money to states has dried up, exposing major shortfalls in revenue. Oakland’s credit rating was reduced in December, further increasing borrowing costs. As we will detail later in the article, when
major companies vacate the market, it reduces local business, payroll and property taxes to the city, further inhibiting their ability to provide essential services.
SAN FRANCISCO VS. OAKLAND
In Q4, both Kaiser and Wells Fargo announced they will be further reducing their office footprint. For Wells Fargo, they plan to list their 400,000 sq ft headquarters in SF and consolidate in another space they lease at 333 Market Street. The December Biz Times article highlighted that this recent decision by Wells Fargo, along with prior decisions to not renew leases in SF, will lead to a 52% reduction in office space in SF compared to pre-pandemic figures. There’s speculation that eventually they will move their headquarters out of state, especially as none of their executives live in the Bay Area.
For Kaiser, the announcement they would be reducing their office footprint at their National Headquarters at 1 Kaiser Plaza, sent the property loan into special servicing as the lender and owner understood the property would not debt service without Kaiser’s lease. While it’s not clear how much space will be shed, it’s a major blow to the Oakland office market. As I reported in previous articles, rarely a week goes by with a massive office or hotel property returning to their lender or selling post foreclosure. So far, we have only seen a few multifamily properties in the East Bay go back to the lender, but we are still less than three years into the higher interest rate environment with rents declining in the East Bay and flat/moderately in San Francisco.
Interest rates and debt costs continue to widen the gap between buyers and sellers. Historically investors target properties with a Cap Rate in excess of their cost of debt for cashflow/leverage purposes, but to also allow for revenue growth before the loan comes due. This fundamental has especially impacted Oakland negatively as the buyer pool for larger properties remains elusive. In a recent conversation with Al Stephens, a broker and local property owner, he relayed, “We are in the midst of a great reset of Oakland property values. Barring a major reduction in interest rates or a dramatic uptick in local job growth, we are looking at anoth-
er year or two of slower transaction volume.” He also noted that some owners are electing to 1031 from C to B locations, for example, due to persistent issues in managing in tougher parts of Oakland.
Rents continue to drop in Oakland according to a recent Zumper report. Oakland, along with Santa Ana and San Diego, were the only major cities in CA to see a drop in rents. Of course, there is a seasonal slowdown element this time of year, so we take some data with a grain of sale. Oakland median 1-bedroom rents fell 4.3% this year, putting Oakland at the 15th most expensive market right behind Santa Ana and Anaheim.
San Francisco holds the number three spot behind Jersey City and New York at a median 1-bedroom rent of $3,020, up 1.7% this year and down 3.3% in the fall. These metrics are identical to NYC and often reflect the slower leasing season in the fall and winter.
The Zumper report noted that national rents are up about 2.3% annually for 1-bedrooms and 2.5% for 2-bedrooms, almost in line with the 2.6% annual inflation data. This is positive news as housing makes up a sizable portion of a household budget, giving the Fed more ammo to push for more rate cuts in 2025. The report also noted that four of the seven swing states that voted red had annual rent increases in excess of the national average (Georgia at 2.8%, Wisconsin at 2.9%, Pennsylvania at 3.5%, and Michigan at 6.2%). Nevada, Arizona and North Carolina came in at 1.3%, 1.5% and 2.1%, yet the report noted record supply of new housing was delivered this year, reflecting the high demand and migration to lower tax states.
Insurance premiums show no sign of easing for properties pre-1980, even impacting 1960s/70s construction as well. While states like Florida and Louisiana face higher premiums relative to price of housing, apartment owners have been hit particularly hard with premiums increasing by as much as 300%. According to a survey from the CA Association of Realtors, as many as 13% of agents have had insurance issues that led to cancellation over the last year.
Insurance is one area that Affordable Housing Developers and Non-Profits can relate to rent-controlled housing providers in that both groups are restricted from passing on increases in operating costs to their renters. Cal Matters, the LA Times and other publications have reported on insurance issues for multi-family given California’s lower home ownership rate/larger renter population compared to most of the country. Given California’s budgetary woes, a political solution with financial backing from the State may be tough. While I do not envision a 2008-like meltdown of the system, elevated debt costs will continue to put downward pressure on prices and create difficult scenarios for property owners when a fixed-rate loan moves to a variable loan. With declining rents and increase in overall operating costs due to inflation/insurance, it’s a perfect storm that will force some owners to make tough decisions to hold on or sell. Persistent
“Rents continue to drop in Oakland according to a recent Zumper report.”
deficit spending could push interest rates higher next year as bond investors expect higher yields when the deficits and debt represent a larger portion of the GDP.
Tim Warren, a broker in our Walnut Creek office, commented, “Oakland has faced significant challenges over the last two years, ranging from a surge in insurance rates, crime and leadership failure. However, interest-rate relief, along with the recalls of the Mayor and DA, should help Oakland turn a corner. Despite Oakland’s struggles, the future looks bright for investors who take advantage of the current pricing levels.”
Similar to low inventory in the SFR market, the supply of reasonably priced properties in the Greater Bay area does not necessarily match up with the operational costs/distress and high interest rates. In some ways, there appears to be a “flight to quality” for stable/clean properties in A locations. At times, we will search heavily for 1031 properties in different markets of the Bay, largely to end up disappointed since it’s tough to find a decent Cap Rate in areas without rent control and eviction ordinances. Off-market deals can be tough to come by. In late October, I closed an off-market sale with Jatin Mehta of Kitehill Realty. He had reached out on other listings we had, but they did not quite fit what his buyer wanted – and we sourced a deal that checked all the boxes.
We sold around a 12 GRM and a 5% Cap Rate for a turnkey deal about five blocks from UC Berkeley. This article has focused more on SF and Oakland, but Berkeley continues to shine given the stable flow of students seeking housing close to campus. Similar to Oakland, a steady supply of new construction is coming to market over the next two years, but the projected rents on new construction are not affordable for the vast majority of undergrads who simply want the cheapest option in the best location.
In summary, witnessing the market “heal and reset” similar to 2008-2011 brings optimism for the Bay Area. The COVID policies decimated small biz, local property owners and now we are seeing the effect on institutional-sized office, hotel, retail and multifamily assets. Given the inherent larger buyer pool for smaller/lower priced deals, we have yet to witness high cap rates, or at least well in excess of cost of debt, for small-to mid-size deals. Loan rate adjustments will likely force some buyers to sell if they do not qualify to refinance and cannot afford to pay down the existing principal balance. We are in the midst of a “great reset” of property values, likely keeping some buyers on the sidelines with the expectation of better deals down the road, ideally in a lower interest rate environment. The next six months will be exciting and pivotal to witness in our market.
Grant Chappell is principal of NAI NorCal.
Unique Strategies to
R ETAIN RENTERS
BY MICHELLE GAMBLE
If you want to increase your property’s long-term profitability and create a stable, viable business, then focusing on renter retention is a must. When property owners successfully develop and apply renter retention programs, they reduce turnover costs, minimize vacancy losses, and maintain stable, connected communities where renters love to live and feel comfortable. To create effective renter retention programs, property owners need to think outside of the conventional ideas and apply unique strategies as their secret weapons for success.
CREATE CO-COMMUNITIES
Cohousing is an intentional, self-governing, cooperative community where residents live in private homes often clustered around shared space. These communities can be gated housing where everything is self-contained includ-
ing shared spaces like recreation centers, swimming pools, parks, shared office spaces, and more.
Matt Morgan, a licensed California Real Estate Salesperson, said, “One unique strategy is creating a co-working community within office properties. By utilizing shared amenities and hosting networking events, renters feel part of a larger business community. This improves their business operations and promotes collaboration, leading to higher renter satisfaction.”
Morgan continued by citing statistics in renter retention that support the value of co-communities. “In one property, after implementing the co-working community strategy, we saw a decrease in vacancy rates from 12 percent to five percent over six months. This was coupled with positive feedback from renters who felt more engaged and supported in their professional endeavors.
“These techniques are effective because they create value beyond just physical space, offering a sense of belonging and professional support. Implementation involves regular renter feedback sessions to tailor offerings and ensure programs align with renter needs and aspirations.”
PERSONAL SERVICE MATCHING PROGRAMS
A successful and unique strategy involves something called a “personal service matching” program. These customized matches align renters with service providers designed to meet their specific needs based on their interests and lifestyle.
Bubba Peek, a real estate investor and owner of Bubba Land Management, said, “For example, a renter who is a commuter will be matched with a car-wash service, a pet owner will be provided with pet services, while another renter who is a fitness fan will get exercise classes. This concern for personal needs proves to our renters that we are not treating them merely as occupants of the space. We have observed that this is a differentiating factor for renters who appreciate convenience and attention to detail.
Additionally, we conduct organized community events, where residents initiate and tend to their favorite activities such as gardening, sports leagues, crafting nights and many more, allowing other residents to propose and host them. This not only enhances the bonds of the community but also makes the residents more attached to the property. Thus, vacancy rates have continued to consistently hover around two percent across a multitude of properties, with a corresponding rise in the number of lease renewals in areas with good attendance of community events.
“In the same vein, another victorious strategy has been the setting up of ‘enhancement suggestion bonuses.’ A renter has the right to put across his ideas to improve the property and should we adopt their suggestion then he is given a discount on his rent or a bonus. This proactive engagement lets the renters see themselves as stakeholders in their dwelling which promotes loyalty. This program has led to a five percent improvement in the company’s annual renewal rates as residents appreciate that their opinions are taken into account.”
LIST OF RENTER RETENTION IDEAS
Not all renter retention programs are as elaborate as described above. Simple, effective techniques exist, too. Here are some quick ideas property owners can easily apply.
Stargazing Events: One unique strategy we use is hosting exclusive stargazing events for repeat guests, complete with local astronomers. This creates a VIP experience that guests can’t find elsewhere and fosters loyalty. Our vacancy rates have dropped significantly, with a 15 percent increase in repeat bookings since implementing these events. ~ Jonas Zook Jr, Airbnb Host
Green Living Initiative: One particularly successful strategy is our “Green Living Initiative.” We provide eco-friendly pest control supplies and tips for renters to manage minor pest concerns sustainably. This approach not only empowers renters but also aligns with current environmental priorities, fostering a deeper renter connection. Our collaborations have yielded positive results, evidenced by a 20 percent reduction in renter turnover in properties where these programs are implemented. These techniques work
because they offer tangible benefits to renters, improving their daily lives and making them feel appreciated and invested in, thus promoting loyalty. ~ Peter Rania, President & CEO of Waltham Pest Control
Home Upgrade Credits: Residents who renew for another lease term receive a “Home Upgrade Credit” they can use toward select improvements within their apartment, such as installing a ceiling fan, updating kitchen fixtures, or adding smart home devices. This makes their home feel more personalized and new, which can encourage them to renew and enjoy the refreshed space. ~ Mitchell G. David, Founder, Beach Life Premier Team
Pre-screen All Renters: It’s not enough to be the best property manager that can be to keep renters. It’s also important to pick the right renters and be sure they mean well. Ask them how long they want to rent the home and look at their credit score and past addresses. Getting renters who only want to stay for six months is a quarter of the national average, which will have a big effect on the cost of keeping renters. ~ Mitchell G. David, Founder, Beach Life Premier Team
One-Time Housing Cleaning Credit: A unique renter retention, or lease renewal, strategy that I’ve offered before is a one-time house cleaning service. I will offer this incentive in hopes of helping convince my renters to renew their lease, and it’s been a pretty popular incentive. People appreciate having their homes deep-cleaned – and not having to be the ones to do it! ~ Seamus Nally, CEO, TurboTenant
Michelle Gamble is the editor of Rental Housing Magazine.
WINNING RETENTION STRATEGIES
BY DAVID MILO, OWNER INDEPENDENT LENDING
Here are some winning renter retention strategies offered by David Milo:
Gifts with clients’ interests: rather than sending advertisements during holidays, our clients send anniversary gifts based on the interests and lifestyles of renters that makes each renter different. It may be a gift certificate to a sushi bar, a novel by an adored author, or tickets to a local game. That is the custom that renters enjoy expecting more of such loyalty.
Renter-Centric Workshops: Giving home budgeting, wellness and even home styling workshops that renters will enjoy gets renters more out of it than the regular rental. This makes renters change their minds and want their properties to be more than just roofs over their heads.
Scheduled Cover for renter’s peace of mind: instead of waiting for renters to notify them of what needs fixing, they can just ask for a scheduled cover every month. This ensures renters do not have to wait for services to be delivered. Rather services are delivered when required.
RESULTS
Properties that adopted these strategies have experienced a drop in vacancy rates of between 10% to 15% within one year, with some lease extensions more than 18 months. These strategies help maintain vacancy levels that are always 8% to 10% lower than regional averages.
WHY IT WORKS
These approaches are successful, as they are centered on basic, but important, renter concerns. It is gifts, educational acquisition and maintenance of the property that show renters spending money on more than just rent. These programs are not costly to implement but have huge impacts. For example, there is an existing schedule for quarterly inspections that are included in the current maintenance schedule; and there are local partners who are willing to work on the workshops on a volunteer or cost-sharing basis.
Industry Partners
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City of Oakland Rent Adjustment Program
Rent Registration in Oakland
The City of Oakland requires property owners to register their rental units annually. The deadline to renew rent registration is March 3, 2025. For more information on rent registration renewal, go to RAP’s website at www.oaklandca.gov/RAP and click on "Rent Registry” .
Questions? Contact RAP's Rent Registration staff at 510-237-3721, or rentregistry@oaklandca.gov.
Banking
"Banking" is any CPI-based rent increase that the owner delays, which can be imposed at a later date. Owners may bank up to ten (10) years of rent increases. Banked rent increases cannot exceed 3x the current 2.3% CPI. Banking is capped at 6.9%.
The RAP Notice
Every rent increase notice must include the "Notice to Tenants of the Residential Rent Adjustment Program" form (i.e., "RAP Notice").
Questions? Contemplating a rent increase? Contact a RAP Housing Counselor at 510-2383721 or rap@oaklandca.gov.
Upcoming Workshops
Rent Registry Workshop: How to Register January 15, 2025, 5:30 pm- 7:00 pm
Rent Registry Workshop: How to Register January 29, 2025, 5:30 pm- 7:00 pm
Rent Registry Workshop: How to Register February 5, 2025, 5:30 pm- 7:00 pm
Rent Registry Workshop: How to Register February 19, 2025, 5:30 pm- 7:00 pm
Rent Registry Workshop: How to Register February 26, 2025, 5:30 pm- 7:00 pm
Small Property Owner Workshop March 5, 2025, 5:30 pm- 7:00 pm
To stay updated on the 2025 Workshop Calendar, please visit our website at www.oaklandca.gov/RAP & join the RAP listserv at tinyurl.com/rapsignup.
Last Look
COMMUNITY-BUILDING PROJECTS
Community-building offers property owners the opportunity to connect with renters and bond those same renters with their fellow neighbors. When property owners create community-connecting projects, they increase resident satisfaction and retention. Vacancy rates decrease and communities become safer and more secure. Neighbors know each other and become almost like community watchdogs to protect the whole group. It bolsters social interaction, increases spirit, and strengthens bonds. Here are some community-building ideas and projects.
COMMUNITY WORKSHOPS
Educational workshops held at places like community centers can offer renters guidance on vital issues, such as what kind of insurance they need. Renters can share insights on insurance providers and who to use to protect their property and assets. Issues related to safety and security can be explored. The results of such workshops can lead to residents doing more with security systems, which can also impact insurance rates in the region when crime reduces. These activities can produce safer, more secure and stable renter bases.
COMMUNITY EVENTS
Many property owners facilitate community events to engender a sense of belonging and build relationships among community members. Events can include neighborhood parties and BBQs, holiday gatherings, neighborhood meetings, and even clean-up events to beautify the surroundings. These events have positive outcomes, such as improved property values, greater renter satisfaction, and enhancing and creating harmonious and stable living environments.
COMMUNITY ENGAGEMENT
An innovative approach involves renters being asked for input on things like shared spaces. A specific example of a positive outcome is where renters had a hand in design aspects of shared spaces. This engagement invites resident participation and prompted a sense of ownership, which led to reduced property damage and disputes. When residents are engaged, they take pride in their environment, creating a harmonious living situation that benefits everyone.
MULTI-PURPOSE SPACES
Through projects like building multi-purpose rooms with versatile furniture, spaces can be transformed into hubs for movie nights, book clubs and crafting sessions. These activities nurture relationships and foster a sense of belonging. The positive outcomes from such initiatives are substantial, leading to increased resident satisfaction and retention. One property owner reported, developing a shared garden space saw residents pooling resources and knowledge, leading to successful harvests and vibrant community events. Community-driven projects contribute to a welcoming environment and lift the quality of life for everyone involved.
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LOCAL KNOWLEDGE, LOCAL SUPPORT, LOCAL ADVOCACY, WHEN YOU NEED IT.
BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing rental owners and managers of apartment buildings and communities, small multi-unit properties (2-4 homes), condominiums, and single family homes. EBRHA members range in size from small investors with just one property to large property management companies that own or manage hundreds of units. Our membership consists of more than 1,500 rental housing owners, property managers, attorneys and other service contractors. Altogether, EBRHA represents over 43,000 rental units and serves over 25 cities throughout Alameda and Contra Costa counties.
EDUCATION, NETWORKING, & EVENTS:
• Monthly Mixers to meet other housing providers in our community
• Annual in-person events to learn about industry resources and trends
• Open Q+A sessions with board members, industry experts, and other seasoned providers
• Weekly Webinars featuring new services, products, laws, forms, and more!
INDUSTRY UPDATES:
• Subscription to bi-monthly Rental Housing magazine, monthly Rentrospect newsletter, and weekly digest.
• Newsflash, Red Alerts, and more virtual message updates from EBRHA
COMPLIANCE
• EBRHA RPM Certification Courses included with membership
• 1:1 support to help you navigate current laws
• The latest Rental Forms with optional 1:1 consultations (available 24/7 through our digital library)
• Reliable renter screening services through Intellirent
ADVOCACY
• Committees organized around our efforts and mission
• Legal & Political Action Funds
• Rallies, designated lobbyist efforts, and active bill tracking
WHY SHOULD YOU RENEW YOUR EBRHA MEMBERSHIP? ASK YOURSELF:
Has managing rental property expectations/ relationships been a challenge in recent months? Are there unit vacancies you need to fill right now?
Is it difficult to constantly navigate all the housing legislative changes?
Are you worried about the protection of your property rights?
Do you have at-risk renters who have been paying rent reliably this year? Have any of your renters not paid rent OR are they paying reduced rent?
Are you unsure who’s defending your business interests?
8. Why not join EBRHA?
Are you concerned about the health of your rental housing business in 2023?
If you answered “YES” to any of the questions above, then EBRHA is a partner that you can’t afford to be without. Membership provides endless benefits!
DID YOU KNOW? EBRHA SERVES ALAMEDA AND CONTRA COSTA COUNTIES
