Rental Housing Magazine: March/April 2023

About that RENT REGISTRY … Preventing PROPERTY DAMAGE Finding great RENTERS

Features

30 PREVENTING

PROPERTY DAMAGE

How to get ahead of potential property damage

34 WHAT ARE THE TOP CONCERNS OF PROPERTY OWNERS?

What keeps property owners up at night?

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Volume XXXII Number 25 | March/April 2023

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

FIRST VICE PRESIDENT Luke Blacklidge

TREASURER Chris Moore

SECRETARY Fred Morse

EBRHA BOARD OF DIRECTORS

Wayne C. Rowland, Luke Blacklidge, Maya Clark, Chris Cohn, Lazandra Dial, Carmen Madden, Chris Moore, Courtney Morse, Fred Morse, Deeana Owens Joshua Polston, Jack Schwartz, 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.

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 bimonthly, 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 Bay Central Printing Company. ©2023 by EBRHA. All rights reserved.

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Welcome

A LETTER FROM EBRHA CEO DEREK BARNES

n the iconic film Willy Wonka & The Chocolate Factory, Violet Beauregarde eagerly tries experimental chewing gum. Wonka advises against it. No one tested the treat, and he told her it could have unpredictable and dangerous consequences. Violet thinks she knows more than the confectioner. So, she grabs the gum anyway, chews it, and rapidly expands to turn into a giant blueberry that needs to be immediately juiced by Oompa-Loompas before she explodes.

In many ways, this timeless allegory is an essential lesson for us all. It reminds us to think about consequences and heed the advice of those wiser before we act. We can apply this lesson to the decisions and policies developed by lawmakers. For example, legislators quickly enacted a health emergency mandate (eviction moratorium) in response to Covid-19 that provided blanket renter protections (no proof of impact required) for rent nonpayment. There was little consideration for the far-reaching implications of rental debt that households would accumulate and not be able to pay back without significant financial support. The harm to property owners was largely dismissed and discounted. Owners would ultimately be stuck with hundreds of millions of dollars in unpaid rent.

Sources like The Urban Institute, National Low Income Housing Coalition and Bay Area Renters Coalition believe the current Bay Area (nine counties) unpaid rental debt is between $2.5 and $3.5 billion. Of this, Alameda County’s portion is $700 million to $1.1 billion. Oakland has approximately $360 to $640 million of the county’s number. Unfortunately, the mandates municipalities ratified in March

Iof 2020 have created ballooning rental debt that needs to be settled. Today, approximately one-in-four renters cannot pay the total balance of rent owed, which is about 180,000 Bay Area households. Some rental property owners have been providing income subsidies and shouldering the burden of relief for three (3) years – also driving massive wealth transference.

Since 2021, property owners and housing experts have warned and opined about the dire conditions the extended mandates created for owners and in the market. Small rental property owners lost income they desperately depended on for retirement, others were forced to sell their properties at decreased values, and some defaulted and lost their homes due to the loss of income since March 2020. The most vulnerable were elderly, BIPOC and immigrant housing providers.

Meanwhile, a massive unpaid rent debt bubble (our modern-day Violet) grew with no programmatic outlets to reconcile the crisis. Like the Wonka movie, we must find ways to deflate the ballooning debt before it grows, bursts and causes more irreparable damage to the Bay Area housing market and property owners.

For months, EBRHA has written to and has had discussions with County Supervisors, City Councilmembers and HCD staff to end and present alternatives to the eviction moratorium. We shared member survey summaries and communicated the stories and plight of many members impacted by nonpaying and noncomplying renters – primarily due to blanket protections the moratorium allowed. By the time this issue of Rental Housing Magazine is received, lawmakers will have either ended, amended or extended their local health emergency mandates. We are also likely to see some or all of EBRHA’s proposed amendments and provisions:

· Solely focus on renters who are genuinely and adversely affected by COVID-19 and have applied for ERAP without denial or ineligibility. Those not impacted must be accountable for the rental debt they accumulated due to nonpayment.

· Require renters to show proof

Derek Barnes

of impact – to qualify for past or continued protections.

· Create more assistance programs that provide immediate spot grants for renters who need assistance paying back rent owed and help small rental property owners, who are in default/foreclosure, keep their rental homes or support those who need assistance with repairs.

· Increase small claims court limits to cover the tens of thousands of dollars in back rent accumulated. Open the courts and educate judges on these laws so property owners may proceed with unlawful detainers for noncompliant renters who never applied or have no proof of applying for ERAP funds.

The moral of impulsive Violet in the movie is important – be humble enough to accept advice and to think about consequences before you act. There is also a more covert story about accountability in this debt catastrophe that will undoubtedly go unrealized as legislators and politicians quickly elude responsibility for the damage manufactured on their watch and by their policy decisions. Very few people are discussing or covering this debt crisis — not municipal leaders, lawmakers or media. Who should be held accountable for the damages incurred and for resolving these drastic consequences?

Prevailing wisdom suggests that those who created the problem and advised legislators in the first place should be responsible for creating the solutions to get us out of this mess. However, we shouldn’t just trust that they have the competence and expertise to develop the remedies we need to get us out of this crisis.

There’s strong evidence that housing staff and legislators were ill-advised and influenced by lobbying attorney organizations and tenant activists — people who have little experience investing in, developing, building, operating, and maintaining rental housing. At a minimum, they should be barred from creating or developing any future housing policies without rigorous oversight and proper stakeholder input. EBRHA and its members (1,500 strong) will continue demanding accountability and equitable solutions that strengthen our housing communities.

Calendar

FIND THE LATEST EBRHA EVENTS & REGISTER AT WEB.EBRHA.COM/EVENTS

APRIL 11

2-3:30PM

The Rountable

Presented by EBRHA Board President Wayne Rowland

APRIL 13

2-3:30PM

Soni Johnson

Presented by ACHHD

* APRIL 18

Tax Day

APRIL 18

8:30AM-1PM

Asset Protection

Open Forum

David Calderon & Paul Hitchcock

APRIL 20

MARCH 2

3-4:30PM

RPM 101

Presented by Joshua Polston

MARCH 7

3-4:30PM

Legislative Updates

Presented by Ron Kingston

MARCH 9

3-4:30PM

New Member Orientation

Presented by EBRHA Staff

MARCH 14

2-3:30PM

The Rountable

Presented by EBRHA Board

President Wayne Rowland

* MARCH 12 Daylight Saving Time Begins

MARCH 16

2-3:30PM

Habitability and Premises Liability

Presented by Steven Edrington

* MARCH 17

Saint Patrick’s Day

MARCH 21

3-4:30PM

Member Meeting and Property Management

Software/Legal Q&A Featuring JP Morgan Story

MARCH 23

5:30-7:30PM

In-Person Networking Mixer, at EBRHA Offices

MARCH 25

10:00AM-12:00PM

The Plant Exchange 11144 Golf Links Rd., Oakland, CA

MARCH 30

2-3:30PM

Snappt

* APRIL 1

April Fool’s Day

APRIL 6

2-3:30PM

RPM 101

Presented by Aaron Young

5:30-7:30PM

In-Person Mixer, at EBRHA Offices

APRIL 25

3-4:30PM

Member Meeting

APRIL 27

2-3:30PM

The Forum

Presented by Dan Lieberman

* NON-EBRHA EVENTS

If you would like to submit an event, please send an email to editor@ebrha.com .

Out & About

Presentation by BEHR Paints the at the Jan 26th Networking Mixer

Derek Barnes with Oakland City Council Member, District 7, Treva Reid

Staff member Chris Tipton with Steve Wilkinson (2 Year EBRHA Industry PartnerWilkinson Wealth Mgmnt)

EBRHA members enjoying appetizers & wine and the Jan 26th Networking Mixer

Percy Julian (46 year EBRHA member) with staff member Shani Brown

NATE MILEY RECEPTION AT SCOTT'S SEAFOOD & EBRHA NETWORKING MIXER

Derek Barnes with Alameda County Supervisor, District 4, Nate Miley

Velma Chavis (20 Year EBRHA member) at the Mixer

A captive audience and full house for Dist. 4 Supervisor Miley’s reception at Scott’s Seafood.

TED W. DANG, CPM/CCIM COMMONWEALTH MANAGEMENT, INC. MANAGING BROKER

SUPERVISING

PROPERTY MANAGER PROPERTY OWNER AND INVESTOR

MEMBER SPOTLIGHT

Spotlight Ted

Dang, a long-time property owner and investor, owns several apartment buildings throughout the East Bay. He recently encountered a situation involving an older, nice apartment building that sits right on Lake Merritt in Oakland. The eight-unit complex, which was built in the 1950s, operates smoothly. However, after the Ghostship fire, the City of Oakland and Oakland Fire Department began beefing up inspections and wanted Dang to make additional improvements.

The Fire Department had some concerns about fire safety related to lack of a central fire alarm system and having fire strobes and horns in every unit. Dang agreed with the suggested updates, as he lost a house during the Oakland firestorms of 1991 and cares deeply for the safety of his renters.

After inspectors went through the inspection process and reviewed plans, a concern arose over the emergency radio response system. When firefighters come to a building, they need to be able to communicate via radio. When anything in the building interferes with radio transmissions, the radio frequency capacity needs to be upgraded. In order to identify whether or not the radio system requires an upgrade, a special test that costs $1,200 needs to be performed to assess the situation. If the building passes the test, the owner doesn’t have to put in the new system.

Dang felt confused. He wondered why the city required him to test their radio system in his building alone? His objection wasn’t about fire safety or lack of

concern about it, his protest came from being singled out to test the radio system operated by the Fire Department. He questioned the logic and fairness that his building be subjected to the cost and effort while no other buildings in his neighborhood were required to do so.

He contracted with a third-party consultant to ensure the building complied with the fire code in every aspect of it. The contractor reported that the building met standards. At this point, Dang went to the Fire Marshal for assistance, as he didn’t feel obligated to pay for the radio test or to install a new system. The Fire Marshal didn’t seem to think it was that serious, but referred him to the Fire Chief. Dang wrote an email to the chief, but didn’t get a response.

The matter was ultimately referred to a retired assistant fire chief, as the fire department is still understaffed. The assistant fire chief met a fire truck and crew at the building, they tested their radios, and everything worked fine. Dang wouldn’t be required to put in a new radio system.

Dang shared his story to create awareness about fire safety requirements and certain building safety improvements imposed on property owners. The fact that Dang had to press forward for what he felt was fair to avoid a costly, unnecessary upgrade, doesn’t reflect well on the system. Property owners shouldn’t have to bear the burden of testing the radio system used by the Fire Department. Reform needs to be made in this area – if for no other reason than fairness to all property owners and not just to single one out.

Legislation

THE REAL COST OF CLEAN ENERGY, PART 2

BY RON KINGSTON

This second part of the two-part series focuses on the Legislature’s efforts, costs, and the reality of “electrifying” California’s transportation system with a special focus on the impact and potential impact upon the multi-family housing industry

For the past two decades, California’s electrical grid has suffered from many a heat stroke during the summer months; in fact, the last two summers in California have had close calls in keeping power on, as the supply of resources serving our electrical grid struggled to match demand. Last July, for example, during an extreme heatwave across California, a major transmission line at the California-Oregon border was impacted due to a nearby wildfire, bringing the California Independent System Operator precariously close to calling for rotating outages. This past summer, a western-wide heatwave drove temperatures into the triple digits throughout the state. Such heat not only drives demand on the system— in large part due to more air conditioning use—but impacts our supply through both a reduction in our imports as well as a reduction in output from older, in-state resources that become inefficient in higher temperatures.

Rotating power outages are the last, worst tool available to electrical grid operators and energy planners to manage any supply and demand imbalance. They are the tool everyone seeks to avoid, as outages can have devastating economic and health impacts, compounded under extreme weather events like heatwaves or fires. In California, these larger climate events are occurring alongside ambitious

renewable energy integration and anticipated large increases in demand. These changes could lead to more prevalent and complex challenges beyond what was experienced in the summers of 2020 and 2021.

Recognizing this need and the insufficient pace at which new resources were being developed, the California Public Utilities Commission (CPUC) issued historic procurement orders in June 2021, requiring utilities that they regulate to purchase 11,500 megawatts of new electricity resources to come online between 2023 and 2026. These orders are meant to be fulfilled with preferred resources, such as distributed energy resources, renewables and zero-emission sources. The procurement orders represent the largest capacity procurement ordered at a single time by the CPUC. This past summer’s electrical capacity concerns initiated an urgent “gut and amend” of Senate Bill 846, which, up until August 2022, was a bill dealing with the sale of alcoholic beverages, but instead changed into an extension of the operation of the Diablo Canyon Power Plant.

The power plant is California’s only remaining operating nuclear power plant that was scheduled to retire operation of both its units by 2025. Diablo Canyon sits on approximately 900 acres adjacent to the Pacific Ocean in San Luis Obispo County and generates about 16,500 gigawatt hours annually, which is tantamount to approximately 8.5% of California’s in-state electric generation, and approximately 17% of California’s GHG-free electricity, with a capacity of over 2 gigawatts of baseload energy regardless of weather or time of day.

The Legislature has intended that

the Department of Water Resources loan PG&E up to $1.4 billion to facilitate the extension of the operating period through October 1, 2030. The Legislature also passed funding for a Strategic Reliability Reserve, wherein the June budget appropriated over $2 billion to this fund to assist with the updated energy forecasts and additional $550 million to support distributed backup and utility-scale assets to support reliability.

Diablo Canyon Power Plant is California’s last-ditch effort to bridge the gap between actual energy consumption and our ability to rely on renewable clean sourced electricity. The Governor is leaning quite heavily on Diablo’s energy production until renewable energy equipment is constructed and installed to take its place.

For reference, it takes 3.125 million 320-watt photovoltaic panels, or 333 utility-scale wind turbines to generate only 1 gigawatt. On the flipside, 1 gigawatt can simultaneously illuminate 100 million LEDs, provide steady consumption of energy use in about 725,000 homes (not including EV charging), or almost give Doc Brown’s DeLorean enough power for he and Marty McFly to travel through time (it actually took 1.21 gigawatts).

There are approximately one million kilowatts in 1 gigawatt. There are 1,000 megawatts in 1 gigawatt. According to windustry.org the typical cost to build and install one utility-scale wind turbine is between $3-$4 million. And

while photovoltaic panels have been the normal, new “monocrystalline” panels are being advertised as more efficient because they are cut from a single source of silicon, whereas its predecessors are solar cells with a blend of multiple silicon sources. And, yes … of course, monocrystalline panels are more expensive (about double the cost) than photovoltaic panels. So, what changes can we expect to face as technology advances and requires updated equipment?

In February 2022, Governor Gavin Newsom reported that California surpassed 1 million electric vehicles sold. As electric vehicles become more popular among California drivers, their charging requirements add more stress to an already overwhelmed electrical grid. In order to meet the demands, the Legislature has placed on our state departments to create renewable and/ zero emission energy, California would have to install one utility-scale wind turbine almost every day for the next two years in order to provide a capacity of over 2 gigawatts of baseload energy –to match Diablo’s capabilities.

All in all, has California put the cart before the horse by placing demands on an electrical grid that is incapable of meeting the State’s current demands, while enforcing expectations that will force the procurement of exurbanite expenditures? If it takes roughly 1.3 million horses to generate 1 gigawatt of power, it might be safe to say that the cart is surely to be trampled.

“As electric vehicles become more popular among California drivers, their charging requirements add more stress to an already overwhelmed electrical grid.”

OAKLAND’S RENT REGISTRY: YOU DO THE WORK AND PAY THE CITY

BY MICHELLE GAMBLE

The Oakland City Council voted to establish a rent registry on June 21, 2022. The law requires owners of residential rental units subject to the Rent Adjustment Program (RAP) fee will be required to provide rental information for each covered unit on an annual basis. Rental property owners must fill out the registry online and register their units with the RAP for the first time by July 1, 2023 and then update it annually by March 1 each year.

Late last year in 2022, the discussion of the rental registry information being requested and the way the registry got developed lacked fair analysis. Based on information requested through the Freedom of Information Act (FOIA), the City Council seemed to arbitrarily decide on what information to request without doing proper due diligence to determine whether or not the requirements would place an imposition on the property owners. Since the registry must be filled out in order for property owners to increase rents or give rent increases, property owners will have no other choice than to adhere to it.

Property owners, who don’t have the resources to fill out the information for perhaps dozens of properties, face the demand of inputting that data into the rent registry. The City Council gave no consideration to how much effort would be needed to not only gather that information, but also upload it. They issued the requirements and the deadline and left the rest up to the property owners to figure out.

It’s not that a rent registry isn’t a valuable tool. Many experts support the creation of a rent registry. “A rent registry can have various values depending on its function and purpose,”

said Yusaf Khan, head of business development at Startups Anonymous. “In general, a rent registry can help ensure that rental properties are registered and monitored, which can help improve rental conditions and protect renters. Furthermore, a rent registry can help property owners and renters identify and resolve any rental issues.” That description sounds acceptable, however, who benefits the most from it? Rent registries benefit city government the most. According to Ying He, a San Francisco Realtor, who is familiar with the rental registry program being implemented in San Francisco, “Most city governments have been under a tremendous amount of fiscal pressure due to COVID in the last a few years.

The number one goal for any city government was to increase revenue and balance the budget. The rent registry is considered a revenue-generating program. A quick Google search says Oakland has 94,693 rental units. At $101 per unit (per City of Oakland website), that is $9.6 million in RAP fees per year for the city of Oakland. That is recurring revenue.”

He goes on to describe the other benefits – all of which add value to city government while not appearing to give property owners any significant benefit. “The stated value of rent registry include better visibility of rental inventory for the city government and better control/tracking of rent increases. The city will have up-to-date rent and

occupancy information as well. It does provide real value to the city government in reporting and governance. There is obviously value associated with a rental registry. What does not make sense is that property owners not only have to do the work but also pay the city a fee for the work.”

Whether it is fair to require property owners to do all of this work depends on the specific requirements of the rent registry program and the benefits it provides. It’s also important to note that rent registry programs are usually mandatory, whether fair or not, as they are established by the government. Let’s emphasize: owners do the work and pay for it too. City government collects information and insight from the

property owners’ provided data while at the same time collecting money from them and enlisting their labor to accomplish the task. Does that sound fair and equitable? Most people would agree it does not.

Why wouldn’t city government like that deal? Property owners do the work, they pay for it, and the city uses it to their advantage. The City Council probably thought it was a great deal … for them!

City staff didn't consider a work or time study to fully understand data collection and management needs. They have little perspective of the resources and costs needed to maintain the system. How would the City Council, where the majority of the members don’t own property, know whether or not what information being requested is difficult to obtain and upload? Unless they do own property, the council members wouldn’t have any real-world experience in this area to make any accurate assessment of its requirements.

No other industry gets taken advantage of in this way. What kind of thinking went into this decision-making process? It’s called entitled thinking. The nature of entitlement when it comes to policy-making never bodes well, whether it be in public or private sectors. When leaders feel entitled then they have no qualms about placing unfair demands on property owners while also making them pay for it. That is like inviting your friend to dinner and then having that person pay for the whole meal while you order dessert without thanking them. Most people would call that behavior rude.

Restrictive housing policies and laws that have not been vetted or studied to determine impact, invariably lead

to unintended consequences. The response is that small rental property owners take more rental units off the market — further exacerbating the shortage of housing and tax revenue. When people feel entitled to something, they lose compassion and understanding. An unvetted rent registry developed by entitled thinkers won't lead to positive outcomes.

Michelle Gamble is the editor of Rental Housing Magazine.

FEB 8TH

According to the San Francisco Chronicle, "A cyberattack hit Oakland’s government offices, preventing residents from filing police reports and paying taxes, with city officials remaining tight-lipped about the cause.

"The city had shut down parts of its network while its Information Technology Department worked to investigate ‘the scope and severity’ of the digital attack, according to a statement posted on the city website.

"The city said ransomware was to blame for the digital breach. The software is frequently used to extort money from governments and other targets by threatening to publish confidential data or block access to files, with attacks on the rise in recent years."

This attack makes it imperative the property owners who participate in the rent registry should minimize their exposure by being conservative with information.

Educate

TAX PREPARATION FOR PROPERTY OWNERS

BY THOMAS E. MASSON II, ESQ.

As we turn the page on yet another year, watching the fireworks and celebrating with family and friends, there might be a few at the celebrations turning their thoughts to filing their taxes – well maybe not on New Year’s Eve, but definitely early on in January. Each year presents opportunities for new acquisitions as well as making capital improvements and conducting regular maintenance on current real

estate holdings, all with an eye on maximizing cash flow and increasing value while minimizing taxes. Proper tax planning begins with being properly informed. I hope that what follows will serve as a guide for property owners in their tax preparation. Please note that each owner's specific circumstances are unique – I highly recommend consultation with a tax professional on how best to file your tax returns.

For property owners, the tax journey

begins at acquisition. This includes keeping a copy of your closing statement and title insurance policy readily accessible. These documents will form the foundation for all future tax considerations, as the purchase price establishes your basis in real property. It is also important to have the costs and expenses of acquisition, including those associated with any financing, available for future planning and tax purposes. Keeping good records for

each and every property, beginning with the closing statement, is critical for tax reporting and planning.

Ongoing recordkeeping should include paperwork showing revenue and expenditures, on a per-property basis. Revenue sources could include the following:

• Rent Receipts

• Advance Rental Payments

• Non-refundable Security Deposits

• Expenses paid by renters in exchange for rents – repairs or materials

• Services performed in exchange for rents

While rents are the primary income source, it is important to remember any and all alternative revenue sources connected with each property such as parking, laundry machines and/or vending machines.

REAL ESTATE EXPENDITURES COULD INCLUDE THE FOLLOWING:

• Travel, including accurate, written mileage logs

• Meals associated with travel

• Maintenance, repairs and cleaning (as distinguished from capital improvements, i.e., remodeling, alterations, additions, upgrades, that are deductible as part of the property depreciation).

• Landscaping and pest control

• Utilities

• Secured Loan Interest

• Property Insurance

• Property Taxes and HOA Dues

• Advertising

• Property Management Fees

• Legal or Professional Fees

• Depreciation (allocation of the cost

of a tangible or physical asset over its useful life. For real estate, residential rental properties are depreciated over a useful life of 27.5-years. Commercial rental properties are deductible over a useful life of 39 years. Depreciation represents how much of an asset’s value has been consumed, in the form of an annual deduction, including the building and any capital improvements such as a room addition; bathroom or kitchen remodeling; new windows; roofing replacement, without inclusion of the actual land value).

The key is to develop and maintain a recordkeeping system that works for you. A file folder with copies of paid repair invoices and rent receipts along with records of the other expenses and income sources will work. Alternatively, there are electronic “file folders” in the form of apps on our smart phones to cloud-based accounting systems for our computers. No matter what route you choose to collect and keep this information, commit to “your system,” as it is critical to have these records for purposes of assessing cashflow and profitability and for tax planning. Having excellent records will help to facilitate the filing of the appropriate tax return. At the federal level, the two most common returns for property owners are the Individual Form 1040 or the Partnership Form 1065. The due dates for these returns should be added to your calendar to avoid a late filing and the possible assessment of tax penalties.

INDIVIDUAL – FORM 1040

For a calendar year tax filer, the date to file your return and pay the tax calculated on your return is usually April

15 of the year following the recently ended calendar year (April 18, 2023 for the 2022 tax year). For a tax filer using a fiscal year (a year ending on the last day of any month except December), the date to file your return and pay the tax calculated on your return is three months and 15 days after the close of the applicable fiscal year.

PARTNERSHIP FORM 1065

Typically a domestic partnership must file Form 1065 by the 15th day of the 3rd month following the date its tax year ended. For calendar year partnerships, the due date is March 15 (March 15, 2023 for the 2022 tax year).

If the due date falls on a weekend or on a U.S. legal holiday, the due date for your return will be the next business day. In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return.

All that remains is to gather your property records and to make time to prepare your tax returns. Cheers and best wishes for another successful year as a property owner.

Thomas E. Masson II, Esq. specializes in tax strategies for property owners.

“For property owners, the tax journey begins at acquisition. This includes keeping a copy of your closing statement and title insurance policy readily accessible.”

Educate

BRANDING TO CREATE CREDIBILITY AND CONFIDENCE

BY MICHELLE GAMBLE

of itself can play an important role in business growth, and it is strategic to implement a branding campaign for future prosperity, especially when the competition may have already done so. Just creating a slick and professional brand can give your business that extra edge over your competitors.

“Your brand becomes your unique selling proposition,” said Hardy Selo of Property Guru. “It sets you apart from the hundreds of other property owners in your neighborhood and defines who you are. You make your property special, and renters will be willing to buy into that.” Branding also increases the perceived value of the properties by establishing the business as an industry leader.

sion-making habits of your targeted demographics and create and execute a campaign accordingly.

“When creating a brand for your rental property business, it is important to think carefully about how you want people to perceive your business,” said Leonard Ang, CEO of iProperty Management. “Do research into what other successful rental property businesses are doing, gather feedback from customers and other professionals in the field, and use elements of design that reflect the advantages of renting with you.”

Most property ownership and related businesses understand the value of creating and differentiating their brands. An effective branding campaign builds credibility and defines “messages” about the business that makes it stand out from the competition. The right kind of market positioning (your business’ identity communicated to the public) can attract high-quality renters just because they like what they see and feel about your brand. Lack of branding and an amateur-looking image can do the opposite, which can make the business appear unprofessional, less trustworthy, and seem second-rate.

Larger property owners who have bigger budgets and larger revenue streams tend to invest in their branding campaigns. Smaller owners sometimes put their funds into other areas and don’t give branding credence to help them grow their businesses. Branding, though, in and

GETTING STARTED

So, how do you go about creating and or even re-imagining your current brand and updating it? First, consider your position in the market (e.g., apartments versus houses). For example, if your primary audience are middle- to-upper-class renters, then your look and feel of items like your logo, your company colors, and choice of imagery need to reflect what appeals to this audience segment while communicating your values and mission.

If you don’t understand how to approach it, hire a branding specialist versus a graphic artist or copy writer to do your work. A qualified marketing brand expert understands the impression of imagery, color and words. Marketers, who have already researched the marketplace, will come to the table and deliver what is called a Creative Brief designed to communicate their ideas and suggestions. They should already understand the reactions and deci-

“The priorities for a rental business when creating a brand should be clarity, relevance and consistency,” said William Hogsett, owner at Essential Home and Garden “The brand should clearly convey the business’ values and the benefits of the properties, be relevant to the target audience, and be consistent across all platforms to ensure a clear, recognizable image.”

Everything in what the brand’s logo, colors and messages needs to be broken down and analyzed for its impact on the audience’s perception of that brand. What kind of fonts do you want for the logo? Different fonts speak to contemporary, old-fashioned or classic looks. Serif, sans-serif or script fonts look unique and communicate different impressions. Perhaps your rentals are primarily older homes or even historical properties. Then you might select an old-fashioned look and feel that implies those are the types of properties you rent.

Your color choices should follow suit. Different color choices send different impressions and symbolism. Color creates feelings. In marketing, for example, the color red conveys passion, love or anger. Orange sug-

gests energy, happiness and vitality. Yellow conveys happiness, hope or deceit. Green can transmit new beginnings, abundance or nature. And blue communicates calm, responsible or sadness. The same concept applies to any imagery added to that logo. The look and feel needs to align with the message you’re trying to project.

“When it came to designing a brand for my rental/property management business, my top priorities were making sure that the logo was eye-catching and memorable; coming up with a tagline that captures the essence of what is offered; selecting colors and fonts that represent the company’s mission and values; and creating visuals (such as photographs) that evoke positive emotions in viewers,” said Cody Neumann, real estate entrepreneur at Turbo Cash Home Buyer.

“The biggest thing you want to do with your branding is to help yourself stand out,” said Jarrett McCraw, co-founder and CEO of Mighty Branding. “You want to be different and really ‘pop’ while among a crowd of others, so doing that is what you are trying to do. After a while, and as you continue to build your brand, you hope your brand will take a life of its own and grow. You want your brand to be connected to things like logos, colors and fonts, but you also want your brand to be connected to specific qualities like ‘reliable’, ‘trusted’, or ‘high-quality’.”

“One of the key components of effective branding is consistency, which is defined as the even application of concepts or beliefs,” said Sheila Stafford, CEO at TeamSense. “Businesses should make sure that all marketing materials link to the company’s main message to develop a recognizable brand. Your

target audience will be reached through a consistent real estate brand, which will also convey the company’s essential principles. Utilizing the same logo on all marketing materials, selecting a company voice, and connecting all promotions to the organization’s primary objective are a few straightforward (but essential) steps to building a consistent brand. When developing your company’s brand, keep in mind that consistency should never be a justification for using the same marketing tactics repeatedly.”

“To communicate my brand to prospects and current renters, I make sure to use consistent visuals across all marketing materials such as website design, print ads, email campaigns, and social media posts,” said Neumann. “Additionally, I always strive to use messaging that reflects what makes me stand out from the competition – such as offering personalized customer service or flexible payment options – in order to create an emotional connection between potential clients and the company. Finally, I do everything in my power to ensure that my existing customer base is aware of updates or changes made to the brand so they can feel confident in their continued patronage.”

Once you’ve cemented your brand and consistently delivered and communicated it to your audience (renters), you’ll discover its effectiveness. Your business will begin to grow, but only if you stay on it. An old marketing saying says, “Outflow gets inflow,” and the more you communicate your brand, the more likely you will see responses from the marketplace.

Michelle Gamble is the editor of Rental Housing Magazine and wrote the book A Smart Girl’s Guide to Marketing and PR.

EBRHA REBRANDING

We are very excited to release the new EBRHA logo! Why change it? Well, we felt it was important to update the look and feel of the East Bay Rental Housing Association so that it truly represents our mission.

Immediately you can see the hand at the bottom of the new logo, which was a perfect addition to represent the support that EBRHA provides to its members, and the focus our members have providing services that benefit the housing community at large.

We are a “people-centric” organization that cares about more than just rental properties. Our members provide tens of thousands of homes in the East Bay and we are here to support their needs and concerns. So, we felt the new logo had to include that human element. EBRHA supports all sized rental communities, but we recognize that in many cases the smaller owner operators are our strongest focus, and the ones with the most needs. We wanted to reflect that in our new logo to make sure that all our members, from the large providers down to even the single-family home owner, is given all the tools and protections necessary to thrive.

We are very excited about the New Year! You are not alone as a rental housing provider at EBRHA. We will continue to be your essential rental housing resource.

Inform

STRATEGIC TAX TIPS FOR PROPERTY OWNERS

GERALDINE SERRANO TAX ADVISOR TAX VERACITY

For the past nine years, Geraldine Serrano has been helping real estate investors, renters and CPAs use a strategic tax planning tool called cost segregation that allows companies and individuals who have constructed, purchased, expanded, or remodeled any kind of real estate to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.

Q. How does cost segregation work?

A. Cost segregation is the process of breaking down a building into its component parts and reclassifying them for tax purposes. The benefit from cost segregation is accelerated depreciation, which will help reduce taxable income in the near term. The amount of accelerated depreciation a real estate investor can take via cost segregation depends on a multitude of factors, including whether the building is new construction or an existing building, the date it was placed in service, the condition of the building, and even where the building is located. An experienced cost segregation provider, like myself, will be able to assist the real estate investor in navigating the complexities of a cost segregation study.

Q. What property-related tax changes are on the horizon for 2023, and how should real estate investors prepare for them?

A. I wish so badly that I owned a crystal ball and could see the future of tax legislation. Unfortunately, all we can do is watch and wait. We have heard

about many new tax proposals from the new administration. No one knows if any of them will become law. Since the U.S. Senate is evenly divided, it’s unlikely that any extreme tax increase measure would be able to pass. Since we have so little clarity on what’s going to happen from a tax standpoint, we need to make sure that we take advantage of the very generous existing laws surrounding real estate investments. My advice to real estate owners for 2023 would be to buy more properties before Congress can figure out how to eliminate the positive changes that were included the 2017 Tax Cuts and Jobs Act. For example, 80 percent additional first-year depreciation deduction, which was part of the TCJA, with the percentage being reduced to 60 percent in 2024, then 40 percent in 2025, and so on until it gets to zero. So, there is no better time than now to get into that next real estate investment. If you’re waiting to see what’s going to happen from a tax perspective, don’t! Buy now and take advantage of the most generous depreciation expense environment in history before it fades away.

Maximizing Your Rental Portfolio with DSCR Loans: A Guide for Real Estate Investors

Expanding your rental portfolio can be a lucrative way to increase your income and secure your financial future. However, with the rising cost of real estate, obtaining financing through traditional banking channels can be a challenge. Fortunately, real estate investors have an alternative option: Debt Service Coverage Ratio (DSCR) loans.

DSCR loans are designed for real estate investors, taking into account the potential income from the rental property. This type of loan is based on the ability of the property to generate enough income to cover its debt obligations. This makes it easier for investors to secure financing for expanding their rental portfolio.

Private money lenders are a great place to find DSCR loans. These lenders

specialize in lending for real estate investments, providing more flexible terms and quicker approval times than traditional banks. They also tend to be more lenient with borrowers who may not meet the strict criteria of large banks.

For example, let’s say you’re interested in purchasing a rental property that has a monthly rental income of $3,000 and a monthly mortgage payment of $2,000. In this scenario, the DSCR would be 1.5, meaning that the property generates 50 percent more income than the monthly mortgage payment. A lender would consider this property to be a good investment and would be more likely to approve a loan for it.

Another advantage of working with private lenders over large banks is the personalized attention and customized financing options that they offer. For

instance, a private lender may be willing to provide a loan for a property with lower DSCR if the investor has a proven track record of successful real estate investments.

In conclusion, DSCR loans and private money lending can be powerful tools for expanding your rental portfolio. By taking advantage of the income-focused criteria and personalized attention offered by these options, you can secure the financing you need to grow your rental portfolio and achieve your financial goals. By choosing private lending over traditional banking channels, real estate investors can benefit from more flexible and tailored financing solutions.

Article provided by Arena Commercial Capital.

Connect

LEGALLY SPEAKING: WHAT NOT TO DO IN 2023

Every January, we all sit down to reflect on the year behind us and look forward with resolutions for what we all will do in the future. While this is a helpful and time-trusted exercise, it is just as important for property owners to think about what they should not do in the coming year. Here are a few resolutions for owners and property managers to consider, as they move into 2023, to maximize their returns and minimize their liability:

First and foremost: don’t get cute about it. In most aspects of our lives, we are rewarded for our creativity and ingenuity. For property owners, that behavior often has the opposite effect. Rules setting limits for rents, on available causes for eviction, and on provision of housing services exist for a reason. While we may question those reasons, and those rules, we do not improve the situation by attempting to circumvent them. It is not a good idea, for example, to attempt to avoid a moratorium on rent-based evictions by inducing a renter to leave by reducing or altering housing services. Nor is it wise to do so as a means of avoiding limits on what rent can be charged.

Second, in a similar regard, don’t cut corners. Renters are entitled to basic housing services, as defined by law. This entitlement does not change if a renter has become a nuisance or is late in paying rent. Owners have remedies for each of those things independently and should pursue them. The answer is not to help ourselves to a seemingly more expedient resolution by reducing services or taking steps to induce a renter to leave “on his or her own.”

Third, don’t assume the worst in people. Crime dramas often remind

BY SCOTT FREEDMAN

us that our justice system is founded on the principle that we are all innocent until proven guilty. This principle should be similarly adopted in our dealings with renters. Unfortunately, some renters have seen fit to take advantage of COVID-era protections that were designed to help protect those in need. Property owners should not, however, treat their renters as though they have or are doing so, unless and until it is established with hard evidence. Even then, how a property owner uses such evidence can be a sticky proposition. But before that evidence is obtained, property owners should assume that those seeking out the protection of these rules have a legitimate need for it and act and respond accordingly.

Fourth, don’t assume that yesterday’s rules still apply. Property owners and managers may feel as though there has been a near-daily evolution in what they are allowed to do and not allowed to do for the past few years. And they’d be right about that! What this means for 2023 and beyond is that using last year’s lease or rent-increase notice or three- or 10-day notice, is not wise. Using an out-of-date form or document can have disastrous effects during a legal proceeding and can cause considerable delay before or after one begins.

Fifth, don’t wait until a claim comes in to confirm you have proper insurance coverage. Just as owners should not assume that yesterday’s notice is a good notice, they should not assume that yesterday’s insurance policy is any better. Changes in ownership structure, use of a property, or who interacts with the building’s occupants can all have impact on whether a policy’s coverage will be triggered in the event of a claim. Having proper insurance cover-

age ahead of time and putting it in place for the proper people and/or entities, is key to minimizing personal liability for renter claims. The old adage, “you get what you pay for,” is equally applicable here – and property owners are wise to compare their options and spend a bit more for better or more coverage.

Lastly, while not specifically a “thing to do to avoid getting sued in 2023,” owners should not ignore the good and positive relationships they have with

their existing renters. We have all heard horror stories these past few years, largely about those who have manipulated and abused rules designed for

a very different purpose. But for every one of those stories, there are stories of good, honest and hard-working renters (some of whom have recently needed some assistance too) who continue to pay their rent on time and honor their obligation. There are rules and regulations that limit what property owners can’t do, and often little can be done about them. However, there is no prohibition on being thankful for the good ones out there, and property own-

ers would be wise in 2023 to do what they can to preserve their relationships with them. That’s something we’re all allowed to do, and it may just lead to a better year ahead.

Scott Freedman is the managing shareholder of Zacks, Freedman & Patterson, PC, a full-service real estate law firm representing property owners throughout California, with offices in San Francisco, Oakland and Soquel (www.zfplaw.com).

“...owners should not ignore the good and positive relationships they have with their existing renters.”

Inspire

INNOVATIVE TECHNIQUES TO FIND GOOD RENTERS

BY MICHELLE GAMBLE

Good renters are the lifeblood of property ownership success. A good renter pays rent on time, follows the terms of their rental agreements, maintains the property with care and concern as if it were their own, and makes a great neighbor by acting respectful toward others. When property owners have good renters in their homes or units, they worry less and can keep their attention on running the business to improve services, which renters appreciate. The problem is that it’s not always easy to find high-quality renters. So, what can property owners do to find good, reliable renters?

“When you find good renters, you want to hang on to them for as long as possible,” said Nick Mueller, director of operations for HawaiianIslands.com. “Building a relationship with your renters is important. They need to know that you’ll come to their aid when needed and that you’re willing to fix whatever needs to be fixed as quickly as you can.”

CAST A WIDE NET

When trying to find good renters, you want a large pool of prospects to choose from. This means you will want to cast a wide net and not just use the most common online tools like Zillow, Trulia or Apartment.com. Extend your search by using every avenue possible, such as Rentometer or Facebook Marketplace. “I recommend joining local Facebook groups,” said Brandon Mackie, co-Founder and CRO at Pickleheads. “Mid-to-large city Facebook groups can have upwards of 50K members where you can post an advertisement and be guaranteed interest in your comment section. Facebook is a

great medium to communicate with potential renters and to get a small look into their personalities and lifestyles.”

“Realtor.com is my top suggestion,” said Steven Holmes, senior investment advisor at iCash. “You can use this website for advertising your rental home for free. They even have a mobile app, which is currently what most renters choose to utilize. Realtor. com can handle both rentals and home sales for you if you would like. Cozy. co, which is my second recommendation, is free to use. Cozy combines several elements into a single platform for property management. These elements include a lease, listings, rental applications, credit, background checks, and rent collection.”

Also, don’t underestimate the value of word of mouth. Tell your coworkers, colleagues, associates, and friends about your properties. “Personal referrals from existing good renters are an excellent way to bring more good renters to your property,” said Leonard Ang, CEO of iPropertyManagement Leasing. “Consider offering a referral incentive to your better renters.”

THOROUGH RENTER SCREENING

Next, you will want to create and manage an excellent renter screening process. Remember to follow the rules and regulations in your city, county or state since specific laws apply to prevent discrimination. Neglecting to follow the rules can lead to legal problems and lawsuits.

“Strategically creating a rental application form is the first step in

screening potential renters,” said Holmes. “All of your renters should be aware of the regulations and expectations in the application. Additionally, try to find out the applicant’s job situation and previous rental experiences. Verify one or more of their previous addresses first. Contact the property owners and inquire about their experiences in detail.”

“It also important to verify the accuracy of their information with third-party sources,” said Michael Branson, CEO of All Reverse Mortgage, Inc. “Additionally, you may want to require background checks for all prospective renters as well as ask for references from previous property owners and employers.”

Branson continued, “Be sure to have a written lease agreement in place for all renters that clearly outlines their responsibilities and your expectations as the property owner. This should include details about payment due dates, late fees and eviction policy if applicable. The lease agreement should also include specific language about property damage including the consequences of any destruction or neglectfulness of the property by the renter such as repair costs or replacement value if applicable.”

RENTER RETENTION

Once you’ve attracted high-value renters, time to do your part to keep them happy. If you don’t treat good renters with respect, courtesy, responsiveness, and care, you’ll lose them and will have wasted valuable time and effort to

attract them in the first place.

“There are a few steps you can take to maintain good relations with your renters,” said Branson. “First, be clear to renters about expectations and rules related to their lease agreement prior to signing the contract. This helps set the stage for a positive property owner-renter relationship.

“Second, be open and communicative throughout the renter’s experience,” he continued. “Respond promptly when they have questions or issues that need addressing so they feel heard and respected. Third, provide essential amenities that make living in your rental more comfortable, such as timely repairs and regular maintenance checks. Finally, show appreciation for rent payments on time by sending thank-you cards or offering small rewards like discounts on rent or other services associated with their stay. These measures can go a long way in cultivating strong renter relationships over time.”

“Maintaining good renter relations is all about open and honest communication,” said Henry Weinstock, licensed real estate salesperson at Compass. com. “Real estate is a relationship business and needs to be treated as such. You must build a rapport with your clients by being hardworking, communicative, and up to date on the market conditions. If you are not trustworthy, your client will not feel that you have their best interests in mind. One big tip is also to not take yourself too seriously! Make the process lighthearted for your renter while still maintaining a professional relationship, and they will be so thankful they used you.”

Michelle Gamble is the editor of Rental Housing Magazine.

“When you find good renters, you want to hang on to them for as long as possible”

Real Estate

REAL ESTATE MARKET: 2023 UPDATE AND ANALYSIS

BY GRANT CHAPPELL

On the heels of a soggy start to the year and the highest Sierra snowpack in 28 years, the Real Estate market’s sluggish momentum and waning demand as we ease into the spring season is cause for concern. The Federal Reserve’s interest rate hikes commencing in March 2022 put a damper that has many buyers on pause and sellers grappling with whether to sell in this environment or hold off. At the time of submission of this article, the Fed raised another 0.25 percent with hints at additional increases to come as inflation remains high, despite a solid jobs report in January. “Too little, too late” comes to mind when looking back at the spring 2020 Fed decision to lower rates to zero.

Locally, the ongoing eviction moratorium, property tax hikes, and increased costs to operate properties further undermines buyer’s willingness to step into the arena. As the data shows, sales are down and prices have softened more heavily in Oakland than Berkeley and Alameda. Ten-thirty-one buyers make a larger percentage of the buyer pool these days as groups backed by institutional capital partners are pulling back on new purchases given the higher cost of debt and low Cap Rates (high prices) available for on-market properties.

With the new year comes new opportunities and challenges, especially after a turbulent election season and further fallout in the tech and crypto industries. The Federal Reserve’s

aggressive moves toward inflation saw the largest weekly increase in mortgage rates since 1987 in June 2022. That trend continued throughout the year, but it takes time to impact the market given a typical 60- to 90-day rate lock on investment property financing. For example, deals we closed in Q2 with a five-year fixed rate of 3.5 percent had jumped to 5.5 percent with the same lender by Q4, which dramatically reduced loan dollars and widened the gap between buyer and seller price expectations.

The ongoing eviction moratorium is the elephant in the room in Alameda county, especially in Oakland and Berkeley. Even Los Angeles passed a “just cause” ordinance designed to protect renters post-COVID, as their eviction moratorium was expiring soon. Investors we engage with would prefer a surrounding non-rent controlled city in Alameda County or are pursuing opportunities in surrounding Bay Area counties/Sacramento. Berkeley’s student housing demand has helped prop up property values and rental rates in the vicinity of campus, but the city also has several thousand units in the development pipeline that could put downward pressure on rents and property values once those projects come online.

With near weekly headlines in the news about layoffs from the largest and mid-sized tech firms, fear percolated that apartment demand would be negatively impacted. While shocking to hear of tech layoffs nearly

three years into COVID, other media reports that a majority of the large tech firms still retain more employees than pre-COVID levels. COVID workfrom-home policies allocated investor capital to companies and services that support remote work/learning. Tech companies also expanded head counts in other states, partially explaining why Oakland dropped out of the top 10 most expensive rental markets in the country.

Companies’ work-from-home policies appear to be shifting. Though not widely reported at the time of submission of this article, some reporting in the Biz Times and other media suggests a dramatic change to require at minimum, two to four days back in the office. As we recall the prior tech bubble of the early 2000s, apartment and office rents took years to recover, though apartment rents remain buoyant. According to a recent Cushman and Wakefield Office Report, San Francisco and Oakland office markets are two of the least occupied in the country with vacancy rates north of 20 percent.

According to Zumper’s most recent rental report, all three major Bay Area markets (Oakland, San Jose and San Francisco) are still in positive territory for year-over-year rent growth, but only San Jose is positive month to month. Oakland now ranks as 11th priciest market nationally, falling out of the top 10 to cities such as Jersey City, Miami, San Diego, DC, and Arlington, Va. We reported in late 2019 and early 2020 that Oakland had moved as high

“ The ongoing eviction moratorium is the elephant in the room in Alameda county, especially in Oakland and Berkeley.”

as fifth most expensive market in the nation, up there with NYC, Boston, SF, and San Jose.

We often hear fears about new supply negatively impacting rents on rent-controlled properties but have yet to see it in our rent figures. It’s worth noting that downtown Oakland added 6,500 units from 2015 to 2021, a nearly 50 percent increase in supply. After SB-330’s 2019 passage, an influx of proposed projects near public transit came online, as it allowed for greater density in exchange for more affordable units. The Brooklyn Basin Development is expected to add 3,100 Units over the next 10 years, so it’s logical to expect rents on existing rent-controlled buildings to decrease down the road.

Danny Winkler’s excellent article in the January issue hit on several key issues negatively impacting small property owners: tax and compliance outcomes can materially impact the bottom line . He also mentioned higher interest rates pushing Cap Rates higher and dragging values down with it and ultimately creating an environment in which deeper-pocketed, larger investors would be able to snap up properties. While that seemed evident in the second half of last year, we see evidence that groups with larger/institutional equity partners are scaling back on purchases and offering well below Cap Rate/pricing targets of Q1 and Q2 2022.

2-4 UNITS

As the data shows, both sales volume and average prices have cooled considerably since Q2 2022. In Oakland average prices on the sale of two- to

four-unit properties dropped below $1,000,000 for the first time since Q1 2021. Sales in Oakland also dropped by nearly 40 percent from 132 deals in Q4 2021 to 75 in Q4 2022.

Alameda and Berkeley have also witnessed a similar drop in sales volume compared to Oakland, though average transaction prices remain consistent through 2021 and 2022. Average sales prices in Berkeley and Alameda perform at similar levels consistent with 2021 pricing, though overall sales volume is down more than 50 percent in each city compared to Q4 2021.

5+ UNITS

Oakland sales dropped to their lowest levels since the beginning of the pandemic when just $40,000,000 sold in Q2 2020. With $62,000,000 in sales volume in Q4 22, Oakland is down 50 percent year to year, yet only 10 percent lower than the prior quarter. Oakland also posted its strongest quarter in Q2 22 $177,000,000 in sales, though a significant portion of that volume was part of a $70,000,000 portfolio sale of 13 properties in Oakland and Berkeley. Regardless, the drop in sales volume is staggering and reflects the higher interest rate environment that reduces the buyer’s purchasing power.

Berkeley actually saw a slight increase in sales with $35M in Q4 compared to $28M in Q3, though sales volume is down 50 percent compared to Q4 21. Student housing is a bright spot in Alameda county as UC Berkeley plans to increase enrollment from ~40K students to ~45K by 2030 (according the UC Office of the President 2030

growth plan), yet also has a mandate to hit housing targets as required under a new state law, SB 330. Consequently, there are now thousands of units in the development pipeline in Berkeley since the law allows for greater density in exchange for providing more “affordable units” in new projects.

Alameda city sales totaled $9.5M in Q4, a modest decrease from $11.1M in Q3, yet higher than the $7M that traded hands in Q4 21. Given the lower overall housing stock in Alameda compared to Oakland and Berkeley, it’s historically been a slower market. We handled two sales in Alameda last year and found buyers who wanted to own, or already owned, property in Alameda and find it a more pleasant city to own property, even though rents are not as strong as Oakland and Berkeley.

In summary, the sales trends show reductions in volume and average prices that mostly reflect the goals of the Fed, which are to tame inflation and slow the economy down without damaging the established relationships within markets. With more layoffs announced in tech, fear about the strength of the Bay Area real estate market persists given the heavy reliance on the tech sector and whether more companies will create jobs out of state. As the Fed takes an extended break from policy changes, our outlook is opportunistic caution: keep some powder dry for obvious buying opportunities and be ready for additional headwinds as the ripple effects of tighter credit markets set in.

Grant Chappell is a principal at NAI Norcal.

As the Fed takes an extended break from policy changes, our outlook is opportunistic caution

SAVE THE DATE!

Conference tickets available at www.Ebrha.Com

Our second annual EBRHA NEXT INNOVATION & TECHNOLOGY CONFERENCE!

LOCATION

Oakstop, 2323 Broadway, Oakland

WHEN Thursday, May 2, 10am-3pm

OUR SPONSORS TM

ABOUT EBRHA

EBRHA is a full-service nonprofit trade organization dedicated to promoting fair, safe, and wellmaintained residential rental housing compliant with local ordinances and state/federal laws. We serve property owners/ managers, residents, and local businesses in the communities of Alameda and Contra Costa counties.

Join us at EBRHA Next, our 2023 technology conference, as we harness the power of technology to elevate your rental housing business.

CONFERENCE HIGHLIGHTS

Cutting-edge presentations, panel discussions, and networking opportunities with the industry's top technology players.

TOPIC AREAS

Renter screening, property management, energy conservation, surveillance, and smart home technology services.

Preventing Property DAMAGE

BY MICHELLE GAMBLE

As of this writing, California experienced its highest rainfall in years that caused massive flooding. Back-to-back storms rolled through the Bay Area that in some cases turned streets into rivers and flooded homes and businesses. Natural disasters like flooding, earthquakes, fire, hurricanes, wind and hail, can cause costly property damage. However, property owners don’t have to take a wait-and-see approach to property damage, but rather become proactive. Getting out ahead of potential damage in the long run not only reduces damage, it preserves the property and more importantly safeguards renters.

“By keeping our eyes on our properties regularly, we are aware of maintenance items before they become an expensive problem,” said Robert Taylor, who is known as The Real Estate Solutions Guy. “The most frequent causes of property damage come from a lack of maintenance,” added Lauren Schade, digital marketing specialist at Real FiG Advertising + Marketing.

“Without regular upkeep, small issues can start or go unnoticed, growing into major repairs,” continued Schade. “Property owners should regularly inspect their roofs and exterior as best they can from the ground and clear away debris. Checking up on your property is a must, especially after a storm, and most local contractors offer free inspections to help. Storm damage is unavoidable, but staying proactive about maintenance is the biggest way to stay ahead of issues, since most damage from renters comes from ignoring the property and warning signs.”

“It is important to keep accurate records of all inspections and repairs. Also, have a regular schedule of preventive maintenance,” said Cassie Alongi, real estate broker, CEO and founder of We Buy Any House in California. “This will help you stay on top of potential issues and address them before they cause major damage.”

START WITH THE LANDSCAPING

Start with the outside and what can be done to prevent certain problems before it impacts the property. Begin with an evaluation of the landscape and structures (e.g., awnings and fencing). Inspecting and assessing these areas for weaknesses and potential hazards not only safeguards renters, but also prevents potential, costly damages that can run into the thousands of dollars to repair. The cost to prevent damage before it happens is much less expensive than having to repair or even replace things like roof or structure destruction by things like trees falling over.

“We personally clean our rental properties’ gutters each year,” said Taylor. “This gives us just one more opportunity to look for repairs on the exterior of the home and see our renters face to face. One of the biggest natural causes of damage to rental properties comes from the weather, specifically the sun and rain. Most materials break down after prolonged periods of being exposed to the sun and rain. By keeping our eyes on our properties regularly, we are aware of maintenance items before they become an expensive problem.”

Send a landscape expert to properties to examine things like trees, overgrowth, dead plants and bushes, clogged drainage or gutters, and any unsound decorative items that can be blown over. Old growth or mature trees need to be monitored. The recent storm that passed through the Bay Area brought down many trees due to the high winds and rain. Fallen trees can damage parked cars and smash through roofs and interiors. In some cases, loss of life can be blamed on trees crashing into the structure.

Signs a tree is about to go down include: trees starting to lean one direction or the other, multiple tree trunks that don’t give the tree solid grounding, large hollows in the tree, branches just dropping for no apparent reason, mushrooms

growing underneath it, and other nearby trees recently fallen. You don’t need to hire an arborist to visually inspect for these things. Upon inspection, you are better off to have the tree safely removed than wait and see if it falls. It costs much less to cut down a tree then to repair a destroyed roof or damaged structure.

WATER DAMAGE TOPS THE LIST

Water damage causes untold costs, especially when it involves roof leaks that seep into the ceiling, which creates water stains, promotes mold growth (toxic mold can cause problems for renters), and damages the structure. Water also promotes dry rot on the structure, which can be extremely expensive to repair, as it can eat into entire walls.

“Properties are damaged mainly through calamities or disasters,” said Samantha Odo, Licenced Real Estate Expert at Precondo. “There’s wind-related causes and then there’s water damages. If your property is not waterproofed, then there are possibilities that there will be leakage inside your property. Like from the ceilings, walls and even floors. When there is leakage in the walls, the walls tend to crack and it ruins the paint and plasters. Sometimes, the walls also come in contact with fungus. You will see a grey or blackish film on your wall. That’s not dust but fungus. And it is bad for your health as well.”

“Leaks and flooding are by far the most frequent causes of property damage,” explained Joe Tolzmann, CEO of Rocketplan. “It’s often said that ‘water is a home’s biggest enemy,’ and for good reason. Even the smallest leak can cause significant damage, since it can go unnoticed. If it’s leaking behind a wall, it can lead to black mold, rotting studs, and can weaken a home’s support structure. When a home experiences a flood,

either through a burst pipe or mother nature, damage can be extensive – depending on how long the flood waters remain.”

You can take preventative measures to safeguard your property. “To reduce the risk of water damage, property owners should inspect their home for any signs of water leaks or weak spots in their roof and make necessary repairs as soon as possible,” said Alex Capozzolo, co-founder SD House Guys.

Tolzman added, “During the cold season, prevent pipes from freezing by disconnecting hoses and drain pipes that lead to the outside. Turn off the supply to any outdoor faucets. If you’re going away, shut off the water to the entire home. Keeps drains and gutters clear to prevent damming. And inspect your appliances regularly to make sure water supply lines are in good condition.”

“Leaks and flooding are by far the most frequent causes of property damage...”

“The easiest way to prevent water damage is to keep an eye out and make sure water is draining properly,” said Mason Edwards, owner of Edwards Gutter Cleaning. “Whether this is from your roof or through French drains or even coming down the street. If water is not draining in the proper location and building up in areas that it should not, bigger issues can and will arise.”

PREVENTING RENTER DAMAGE

When it comes to the property’s interior, renters can either intentionally or unwittingly do the most harm. “Renters are typically responsible for any property damage that is caused by their own negligence or misuse of the property,” said Capozzolo. “This includes damage caused by not following safety protocols, such as smoking indoors. Natural forces, such as floods or storms, can cause extensive damage to a property regardless of who is living there. It is important for renters and property owners alike to ensure that they are adequately insured in the event of a natural disaster. Additionally, renters should take preventive measures to help protect their possessions, such as installing smoke detectors or purchasing flood insurance.”

“One major concern for property owners while renting out their property is whether their property is in safe hands,” said Yarl Christie, managing director and founder at Stories Flooring. “There are several steps property owners can take to prevent damage to their properties, one of them is to screen renters thoroughly before renting to them. This includes checking their credit, income and rental history. By including a detailed inventory in the agreement too, property owners can reduce the risk of damage to their rental properties and protect their investments.”

Damage mitigation needs to start during the leasing process. “Property owners can cooperate with renters to safeguard their rental properties by explicitly defining their obligations in the lease agreement, performing routine property inspections, and requiring renters to have renter’s insurance,” said Carl Fanaro, owner of Nolabuyshouses.com. “A stringent protocol for handling any damages brought on by renters can also help ensure that the property is safeguarded.”

Clear identification of who is responsible for what and clearly drawn expectations can be described in the lease agreement. “Creating a lease agreement is key to keeping your rental in good shape,” said David Bitton, co-founder and CMO at DoorLoop. “Make clear rules and clauses to keep property damage to a minimum. For instance, you can make specific guidelines for reporting property problems so that you or your property manager can fix them immediately. You can also impose restrictions on potentially harmful activities,

such as smoking or candle lighting. You can specify expectations regarding the property’s cleanliness as well. A clearly laid-out agreement will guarantee that you and your renters are on the same page regarding the unit’s maintenance.”

“The final cause of property damage is daily wear and tear,” said Laura Gunn, a real estate expert at USAInsuranceAgents. com. “Some damage is expected, but you can mitigate bigger issues by talking to renters about a few things. First, encourage renters to use moving blankets during move-in and moveout procedures. If the property has hardwood or laminate floors, consider asking renters to use rugs or furniture pads to help minimize scratching and scuffing.”

However, Bitton emphasized, “Property damage should not be confused with wear and tear. Faded paint, minor scratches and holes can result from typical wear and tear. On the other hand, damage can involve major issues such as broken doors, huge holes in the wall, and burn stains on the floor, to name a few. When the problem requires significant repair work, it’s already categorized as damage.

• Large holes in walls are often caused by renters carelessly drilling or hammering through drywall. Installation of certain hardware can also leave significant holes once it’s removed from the wall.

• Flooring and carpets may get burned, ripped, or badly stained due to accidents or renters’ carelessness.

• Although common for floors, major stains, burns, and scratches can also be a serious problem in other areas or items, such as countertops and window treatments.

• Cigarette smoke can also cause damage and stains to curtains, drapes, walls, and ceilings.

• Damage can also be caused by natural occurrences: floods, hail, wind, and fire.”

Not all property damage is preventable. Acts of nature and unexpected disasters can wreak havoc no matter how much preliminary maintenance property owners perform or even renters being vigilant. This reality makes it all the more important to ensure both owners and renters have proper insurance, which is ideally the most one can do to be covered in case of an emergency.

Michelle Gamble is the editor of Rental Housing Magazine

“It is important for renters and property owners alike to ensure that they are adequately insured in the event of a natural disaster.”

What are the top concerns of

PROPERTY OWNERS

BY MICHELLE GAMBLE

The property ownership and investment industry have gone through a lot of changes in the last few years, some of which have been driven by the pandemic. When asked what are current concerns for 2023, many of the same answers seemed to commonly top the list. The following responses were provided by some of the top experts on the subject.

RENTERS PAYING RENT ON TIME

Without question, every property owner cited rent payments as the number one worry. “My first concern when renting to renters is: ‘Will they pay the rent on time each month?’ No property owners want to go through evictions – they’re expensive and time-consuming,” said Brian Davis, a property owner and founder at SparkRental.com.

Davis continued by highlighting some of his solutions. “Aggressive renter screening helps, going beyond pulling credit reports to calling employers and former property owners. As much as it helps to speak with their current property owner/ manager, make sure you also speak with at least one former property owner as well. Current property owners have a vested interest and may give a glowing recommendation just to get rid of a bad renter. If you have any doubts or questions about a renter making every single payment on time, pass on them and wait for a renter you have full confidence will pay.”

Property owners can also put an eviction clause in their contracts; however, make sure to follow all of the rules and regulations required in your region.

Owners can also set up management systems designed to encourage on-time payments. Property owners need to utilize technology such as property management software or rent collection tools. These tools will help improve their processes and decrease overhead costs. “To manage this, owners can implement systems such as automatic payments and reminders to ensure that renters remain on track with their payments,” said Henffrey M. Muthama, head of marketing at LedAsk. Further, owners who offer online payments need to make the systems user friendly so that renters don’t get frustrated and rent payments become difficult to make. The course of least resistance encourages on-time payments.

“One potential solution is to require rental payments by direct deposit, which provides a secure and reliable way for the property owner to receive payments on time,” said Alex Capozzolo, co-founder of SD House Guys. “The property owner can also set up automated reminders or payment schedules to ensure that payment deadlines are met. Additionally, the property owner can require all renters to set up automatic payments so that their rent is paid automatically each month.”

Also, consider going to monthly leases versus annual ones. “If and when issues do arise, you can simply choose not to renew the lease and immediately start eviction proceedings if required,” added Melanie Hartmann, owner of Creo Home Buyers based in Maryland.

Property owners might even want to consider providing incentives. “An easy solution to this problem is to offer early payment discounts,” said Scott Rubzin, CEO of Tiffany Property Investments LLC. “You need to give renters an incentive to pay on time. An early bird discount works best here. Knock $50 off the rent if a renter pays on time. In no time, every renter will hear about this – and they’ll all flock with their payments.”

PROPERTY DAMAGE

Property owners need to protect their investments and ensure insurance coverage is adequate. “Property damage from natural disasters and renters can be costly,” reported Value Penguin in an article titled “Estimated $29.4 Billion in Property Damage from Severe Weather Not Covered by Insurance in Past 5 Years” by Maggie Davis. “Between 2017 and 2021, severe weather caused $121.4 billion in property damages in the U.S. That averages to $940 per household and business. We estimate that more than three-quarters (75.8%) of these weather-related damages were covered by insurance, for a total of $92.0 billion. That leaves an estimated $29.4 billion not covered by property insurance.” (For more information on natural disaster property damage, refer to the article in this issue titled “Preventing Property Damage.”)

In terms of renters damaging property, proactive steps taken right from the beginning of rental relationships will mitigate future problems. “A good practice is to require renters to pay a security deposit upon move-in, and this can be used to cover any damage that may occur during the renter’s stay,” said Capozzolo. “The property owner can also conduct regular inspections of the rental and document any existing damage in order to have a record should any disputes arise. Furthermore, the property owner can include clear clauses in their lease agreement that outlines expectations for renter behavior with regard to caring for the property.”

“Owners should create a detailed checklist of the property’s condition upon move-in and move-out to make sure that it is kept in good condition throughout the entire renter agreement,” said Muthama.

“I want renters who will treat it like their own property, with kid gloves,” added Davis. “If they have a pet, I charge both a pet deposit and monthly pet rent. Pets put more wear and tear on properties, period. I also include protective clauses in my lease agreement. For example, I require renters to put felt pads on the feet of all their furniture to reduce damage to my flooring. I prohibit renters from mounting TVs on the wall. In single-family homes, I require them to replace the air filter every three months, and I do semi-annual inspections to check these things as well as to look for any needed repairs or maintenance.

“Property owners should also try to ‘renter-proof’ the property itself as much as possible,” continued Davis. “That

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includes using more robust flooring, such as luxury vinyl tile or bamboo flooring as appropriate, rather than hardwood or carpets. I mount all towel racks and other hooks into studs, so they can handle a lot of weight. I install door stoppers behind all doors. Expect renters to treat your property poorly, and take every precaution to prevent them from damaging it.”

MAINTENANCE

Property owners expect renters to take good care of their properties and maintain them in a safe and orderly condition. However, not all maintenance goes to the renter. Owners have to provide ongoing maintenance for things like HVAC, plumbing, appliances, and structural issues that pose safety hazards that are unrelated to renter wear and tear, but rather decay and breakage. Legal issues arise when property owners fail to maintain what falls under their purview of responsibility.

Maintenance needs to be engendered through good renter relations. Make it clear to renters that it’s expected that they report maintenance issues through whatever system has been set up to do so. “Renters not reporting serious issues that can lead to more costly repairs, such as a small leak in the basement,” said Melanie Hartmann, owner of Creo Home Buyers 2. “One way to mitigate this is to have frequent walk-throughs of your rental properties. You can choose to do monthly, quarterly, or twice yearly checks on your properties.”

“As a property owner, you should ask the renter to set aside a fixed deposit that would be used to take care of and conduct maintenance around the property,” said Eli Pasternak, a licensed real estate agent and investor at Liberty Housing Buying Group. “This way, you can ensure that your house stays neat and tidy.”

RENTER NUISANCE

Another concern involves renter disturbances. Property owners worry that their renters may not be respectful of the noise limits in place. Noise (e.g., loud music, parties, yelling) can disrupt entire complexes and even neighborhood peace. Property owners can reduce this liability by doing some preliminary management. “Check the history of the occupants and find out whether they have had similar issues in the past,” advised Carter Crowley of CB Home Solutions.

“The property owner can include a clause in the lease agreement that outlines acceptable noise levels and specific restrictions or requirements, such as quiet hours after 10 p.m.,” said Capozzolo. “Additionally, the property owner can clearly communicate any expectations for renter behavior with regard to noise levels and provide educational materials to renters about how to be respectful of their neighbor’s noise limits. Moreover, the property owner should also encourage renters to report any noise issues they hear from their neighbors in order to ensure that these are addressed quickly and effectively.”

It’s important to address renter conflicts as well. During the pandemic many people began working from home and have remained remote workers. This situation gives rise to more potential renter disputes among neighbors. “Renter conflicts in multiunit apartments are not entirely avoidable,” said David Bitton, co-founder and CMO at Doorloop, a property management software company. “These conflicts likely increased during the lockdowns when everybody was staying at home. However, these conflicts can be avoided if renters clearly understand expectations around noise and pets and, thus, the right to a quiet environment and habitability. These expectations must also be enumerated in the lease agreement.”

ISSUES FROM THE PANDEMIC

The pandemic has impacted the property industry and changed owner’s and operator’s lists of concerns. Health and safety consideration are top priorities among owners and operators.

“Not only are they worried about finding renters who will be able to pay their rent, but they are also concerned with the safety of their renters, especially with cases of the virus still rising,” said Muthama. “Property owners must now take precautions to ensure that the property and its occupants are protected from potential spread of the virus. This includes implementing measures such as contactless checkin, deep cleaning between tenancies, and providing renters with access to additional resources such as hand sanitizer and masks.”

MOVING FORWARD

Overall, the solution for most problems and concerns seems to be a well-thought-out, air-tight lease agreement. While it’s not the cure-all for every property management issue, it certainly provides a place to start. Legally speaking the same principle applies. If property managers have solid lease agreements and do thorough renter screening, the majority of issues can be effectively prevented.

Michelle Gamble is the editor of Rental Housing Magazine.

“During the pandemic many people began working from home and have remained remote workers.”

Suppliers

ACCESSORY DWELLING UNITS

Adapt Dwellings, Inc.

Chris Paizis | 510.319.9045

Housable

Patrick Collins | 415.525.6873 housable.com

ACCOUNTING & TAX

Martin Friedrich, CPA 510.895.8310 besttaxcpa.com

AFFILIATIONS

ALN Apartment Data 800.643.6416 alndata.com

APPRAISERS

Watts, Cohn & Partners, Inc. Mark Watts | 415.777.2666

ASSOCIATIONS

Concord Chamber of Commerce

925.685.1181 concordchamber.com

Hamilton Families Mayo Lunt | 415.321.2612

ATTORNEYS — EVICTIONS/ PROPERTY OWNER DEFENSE

Bornstein Law

Daniel Bornstein | 415.409.7611 bornstein.law

Burnham Brown

Charles Alfonzo | 510.835.6825 burnhambrown.com

The Law Offices of Alan J. Horwitz

Alan J. Horwitz | 510.839.2074 alanhorwitzlaw.com

The Shepherd Law Group

Michael Shepherd | 510.531.0129 theshepherdlawgroup.com

Zacks, Freedman & Patterson, PC 415.956.8100 zfplaw.com

ATTORNEYS — REAL ESTATE/CORP.

Barth Calderon LLP

714.704.4828 barthattorneys.com

Burnham Brown

Charles Alfonzo | 510.835.6825 burnhambrown.com

BANKING/LENDING

Arena Commercial Capital

Jason Bowden | 510.224.3894 arenacommercialcapital.com

First Foundation Bank

Michelle Li | 510.250.8133 ff.inc.com

Pacific Western Bank

Kara Mooney | 301.272.6628

Story by J.P. Morgan

Shane Nebbia | 201.961.4022 story.jpmorgan.com

BUILDING SUPPLIES & REMODELING

APT Maintenance

Keith Berry | 510.747.9713 aptmaintenanceinc.com

BEHR®

Kristen Fuller | 415.416.0994 kfuller@behr.com | behr.com

Home Depot

Brian Aguirre | 770.681.1675 brian_aguirre@homedepot. com | homedepot.com/c/ Pro_Xtra

CONSTRUCTION

APT Maintenance

Keith Berry | 510.747.9713 aptmaintenanceinc.com

Precision Concrete Cutting

650.867.8657 pccnorcal.com

CONTRACTORS & RESTORATION

Applied Waterproofing Systems

510.887.8894 appliedwaterproofing.com

DOORS & GATES

R & S Overhead Garage Door

Sean Boatright | 510.483.9700, x14 rsdoors.com

ENERGY CONSERVATION: Ok2Charge

Kornelijus Dauksas | 850.652.2414 ok2charge.com

FINANCIAL PLANNING

First Republic Bank

415.262.2440

firstrepublic.com

Wilkinson Wealth Management

Steven Wilkinson | 510.625.1400 WilkinsonWealthManagement. com

GOVERNMENT AGENCIES

City of OaklandHousing and Community Development

510.788.0462 oaklandca.gov/rap

Oakland Housing Authority

Leased Housing | 510.874.1500 oakha.org

Oakland Rent Adjustment Program (RAP)

Marvin Nettles | 510.238.6246 mnettles@oaklandca.gov oaklandca.gov/RAP

StopWaste.Org

510.891.6558

HANDYMAN SERVICES

Start to Finish

510.727.9128

INSPECTIONS

Edrington & Associates

Steve Edrington | 510.749.4880 edringtonandassociates.com

INSURANCE

Commercial Coverage

Paul Tradelius | 415.436.9800 comcov.com

Foxen

Pete Gherson | 805.729.5393 pghersen@foxen.com

Jain L. WilliamsState Farm Insurance

Jain Williams | 510.530.3222 jain@jainwilliams.com

Kelly Lux — State Farm Insurance

Kelly Lux | 510.521.1222 Kelly.lux.gjcg@statefarm.com

Pacific Diversified Insurance

Richard Callaway | 925.788.5558 rcallaway@pdins.com

PFN Insurance Services

510.483.6667 pfninsurance.com

INTERCOMS & ACCESS CONTROLS

R & S Overhead Garage Door

Sean Boatright | 510.483.9700, x14 rsdoors.com

LAUNDRY EQUIPMENT WASH Multifamily

Laundry Systems, LLC 800.421.6897 wash.com/contact-us/

LEAD, MOLD & PEST MANAGEMENT

Alameda County Healthy Homes Dept. 510.567.8282 aclppp.org

LITIGATION

SUPPORT SERVICES

Edrington & Associates

Steve Edrington | 510.749.4880 edringtonandassociates.com

PROPERTY MAINTENANCE

APT Maintenance

Keith Berry | 510.747.9713 aptmaintenanceinc.com

PROPERTY MANAGEMENT

Advent Properties Inc. Darryl Glass | 510.500.7531 adventpropertiesinc.com dglass@adventpropertiesinc.com

Bay Property Group 510.836.0330 baypropertygroup.com

Beacon Properties

Aaron Young | 510.428.1864 beaconbayarea.com

Kasa Properties

Natasha Kapoor-Acuna 510-280-5050

natasha@kasaproperties.com kasaproperties.com

Lapham Company

Jon M. Shahoian | 510.594.7600 laphamcompany.com

Openworld Properties 510.681.7771 openworldproperties.com

Seville Property Management

Maya Clark | 510.244.1289 sevillepropertymanagement.com

City of Oakland Rent Adjustment Program

RAP Fee

Owners of rental units covered by the RAP Ordinance or the Just Cause for Eviction Ordinance must pay an annual fee of $101/unit. All fees are payable on or after January 1st and are delinquent if paid after March 1st. Owners who timely pay the annual RAP fee are allowed to pass on half of the fee to tenants for the current year.

Questions? Contact the Business Tax Office at (510) 238-3704 or BtWebSupport@oaklandca.gov.

Oakland's Emergency Moratorium

Oakland’s Emergency Moratorium continues to prohibit most evictions, rent increases beyond the CPI of 3% (including banking), and late fees on covered units until the City Council lifts the local emergency.

For questions about Oakland's Emergency Moratorium, contact a RAP Housing Counselor at 510-238-3721 or rap@oaklandca.gov.

Upcoming Workshops

Rent Registry Workshop

March 8, 2023, 5:30 pm- 7:00 pm

Small Property Owner Workshop

March 15, 2023, 5:30 pm- 7:00 pm

Rent Registry Workshop (Mandarin)

March 22, 2023, 5:30 pm- 7:00 pm

Rent Registry Workshop

April 19, 2023, 5:30 pm- 7:00 pm

To stay updated on the 2023 Workshop Calendar, please visit our website at http://www.oaklandca.gov/RAP & join the RAP listserv at tinyurl.com/rapsignup.

Specialized Property Management Inc.

510.225.9224 specializedhomesforrent.com

PROPERTY MANAGEMENT

SOFTWARE

AppFolio

John Hogg | 866.648.1536

Azibo

408.890.1094 | azibo.com

Buildium, a RealPage Company

Lauren Barry | 877.396.7876

Snappt

Kyle Nelson | 310.383.5465 snappt.com

Story by J.P. Morgan

Shane Nebbia | 201.961.4022

Yardi Systems

800.866.1124 yardi.com

REAL ESTATE

BROKERS & AGENTS

Advent Properties Inc.

Darryl Glass | 510.289.1184 dglass@adventpropertiesinc.com

CBRE

Keith Manson | 510.874.1919 cbre.com

Edrington & Associates

Steve Edrington | 510.749.4880 edringtonandassociates.com

Kite Hill Real Estate

Jatin Mehta | 949.929.9562 teamkitehill.com

Lapham Company

Tsegab Assefa | 510.594.0643 laphamcompany.com

Litton / Fuller Group

510.693.5444 littonfullergroup.com

NAI Northern California

Grant Chappell | 510.336.4721 nainorcal.com

Owens Real Estate

Deeana Owens | 510.225.5810 owensrealestate.com

Pacific Coast Real Estate

510.915.9721 | pacificcoastre.com

The Pinza Group

Steven Pinza | 510.725.4775 pinzagroup.com

The Prescott Company

David Weglarz | 510.398.1027 theprescottcompany.com

Walker & Dunlop

415.233.3945

walkerdunlop.com

RENTAL SERVICES

ReLISTO

Eric Baird | 415-237-1819 relisto.com

ROOFERS

Fidelity Roof Company Doug Kellor | 510.547.6330 fidelityroof.com

Frank Fiala Roofing Frank Fiala | 510.582.6929 ffialaroofing.com

General Roofing Company

Michael Wakerling 510.536.3356 generalroof.com

SEISMIC ENGINEERING & CONSTRUCTION

Quake Brace Manufacturing Company 510.495.1575 quakebracing.com

West Coast Premier Construction, Inc.

Homy Sikaroudi | 510.271.0950 wcpc.inc.com

TENANT SCREENING SERVICE

Intellirent

Cassandra Joachim 415.849.4400 myintellirent.com

UTILITY BILLING & MANAGEMENT Livable

877.789.6027

comesave@livable.com livable.com

MCE

925.230.2759

tbrown@mceCleanEnergy.org mcecleanenergy.org

WASTE & RECYCLING MAINTENANCE

Bay Area Bin Support

Nancy Fiame | 888.920.BINS bayareabinsupport.com

Green Glove Heroes

510.862.6061

greengloveheroes.com

WASTE MANAGEMENT

Sewer Master

510.599.3691 sewerninja.com

Waste Management of Alameda County

510.430.850

Last Look

PET ODOR AND STAIN REMOVER PRODUCTS

The following pet odor and stain remover products are rated from 1 to 5 stars based on effectiveness and overall quality of product.

LIFT

RATING: ✪✪✪✪

Lift is an all-natural, multi-surface concentrated cleaner that excels at removing grime and grit both indoors and outdoors. The non-toxic formula is plant-derived, free of harmful chemicals, and gentle on the skin. Lift’s cleaner requires little water and is made to be used at home, in commercial spaces, on auto equipment, boats and more. It definitely effectively cleaned up a difficult-to-remove stain. It smells almost odorless but it does have a slight chemical smell, which is why it lost a star. The smell wasn’t unpleasant, but it wasn’t pleasing either. Lift starts at $17.99 per bottle, and will be available for purchase via Amazon and at vwholesalersllc.com

BEGLEY’S

RATING: ✪✪✪✪

This line of eco-friendly products was created by actor Ed Begley, Jr. A portion of sales benefits various non-profit organizations that help the planet and its inhabitants as chosen by the Begley Family Foundation. The powerful enzyme action of the carpet stain remover pet cleaner for carpet, breaks down organic proteins causing lingering odors and stubborn stains that encourage pets to repeat their actions rather than covering them up. The enzyme cleaner for dog urine and poop eliminates evidence of household “accidents” effectively discouraging pets from repeating their actions. It had a pleasant citrus-like smell and thoroughly erased the odor and stain on the carpet. No downsides with this product. It’s available from Amazon.com and Walmart.com and prices vary according to product. For more information on BEGLEY'S Earth Responsible Products go to BEGLEYLIVING.com

PUPFORD – OOPS ERASER

RATING: ✪✪✪✪

Pupford is an all-natural stain and odor remover that erases stains and odors from urine, vomit and fecal matter. It is considered an enzymatic cleaner that works on most surfaces, including wood and carpets. It has a pleasing citrus smell that covers up the unpleasant odors while it neutralizes them. As an added bonus, Pupford sends great emails and updates on dog ownership in general. It’s a dog-specific product, but it worked on cat odors, too. For more information, go to pupford.com.

HEPPER

RATING: ✪✪✪✪✪

Hepper is an enzymatic cleaner that is formulated to remove smells and stains at the molecular level. Although it eliminates pet odors, urine, vomit, or feces from surfaces, carpets, furniture, fabric and more, it does work for general clean up as well. It doesn’t use chemical fragrances to cover up the smell. However, the smell is subtle and vague and not offensive, but not great. It did easily scrub out stains with little effort in accomplishing the job. Users don’t have to scrub hard or go down on hands and knees to get things clean. It’s available on Amazon.

THE DUTY MITT: PET GROOMING MITT

RATING: ✪✪

The Pet Grooming Mitt is a pet grooming product. It is a single-use, disposable wipe that offers a cleansing formula and mild deodorizer, which is essential for maintaining a clean and healthy fur coat. The non-toxic ingredients control pet odors and reduce allergy-causing dander. This product wasn't well received by either the pet owner or pet. It's like a wet wipe that you use to clean the animal's fur. It didn't smell too great, and it seemed like applying artificial chemicals to your pet's fur. It retails for $11.94 and is available on Amazon.

BANKING/LENDING

Story by J.P. Morgan p. 37

PROPERTY MANAGEMENT SOFTWARE

Yardi Breeze Inside Front Cover INSURANCE

Pacific

does not necessarily constitute any

by this

or recommendation by

express or implied, of the advertiser or any goods or services offered.

LOCAL KNOWLEDGE, LOCAL ADVOCACY, LOCAL SUPPORT, WHEN YOU NEED IT.

EAST BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing owners and managers of apartments, condominiums, duplexes, singlefamily 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.

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.

ADVOCACY

• Committees organized around our efforts and mission

• Legal & Political Action Funds

• Rallies, designated lobbyist efforts, and active bill tracking

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

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

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?

8.

Are you unsure who’s defending your business interests?

Are you concerned about the health of your rental housing business in 2023?

Why not join EBRHA?

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?

California: Alameda County

California: Contra Costa County

Population: 1,510,000 Area: 821 Seat: Oakland

Founded: March 25, 1853

Founded: February 18, 1850

Population: 1,050,000 Area: 804 Seat: Martinez

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Your bins and containers are pulled out and staged at the curb - all ready for garbage, recycle or compost collection services - with minimal time at the curb.

Once the bins have been emptied, we return them to their original storage location –usually within a few short hours.

We help you keep dumpster areas clean and free of excess garbage and debris.

Enjoy a lower trash bill each month with reduced distance fees.