Rental Housing Magazine: May/June 2024

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EAST BAY

RENTAL HOUSING ASSOCIATION

Volume XXXVII Number 30 | May/June 2024

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

COMMUNICATIONS

ADVERTISING AND MEMBERSHIP

EBRHA OFFICERS

PRESIDENT Wayne C. Rowland

FIRST VICE PRESIDENT Luke Blacklidge

TREASURER Chris Moore

SECRETARY Fred Morse

EBRHA BOARD OF DIRECTORS

Francisco Acosta, Luke Blacklidge, Maya Clark, Carmen Madden, Chris Moore, Courtney Morse, Fred Morse, Joshua Polston, Wayne C. Rowland, Jack Schwartz, Maria Recht, Aaron Young

PUBLISHED BY East Bay Rental Housing Association

PUBLISHER Derek Barnes

EDITOR Michelle Gamble

ART DIRECTOR Bree Montanarello

Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 3664 Grand Ave., Suite B, Oakland, CA 94610.

Rental Housing is published bimonthly for $9.95 per issue by the East Bay Rental Housing Association (EBRHA), 3664 Grand Ave., Suite B, Oakland, CA 94610.

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 Sundance Press. ©2024 by EBRHA. All rights reserved.

Help Stop the Repeal of Costa-Hawkins 2024 Contribution Campaign

UNDER ATTACK ... AGAIN

To help stop the so-called "Justice for Renters" initiative, which will be a proposition on the ballot in 2024, the East Bay Rental Housing Association is asking for your support. We need to fight this third attempt to repeal Costa-Hawkins, led by the same anti-housing activists who failed twice with Propositions 10 and 21 in 2018 and 2020. We are helping our state affiliate, CalRHA, raise $5 million towards this campaign, so we are all in this together.

Protect Vacancy Decontrol

Protect New Construction, Single-Family Homes, and Condos from Rent Control

WHAT IS COSTA-HAWKINS?

The Costa-Hawkins Rental Housing Act is a California state law that It also protects VACANCY DECONTROL - a policy that allows rental housing providers to reset the rental rate on any rent-controlled apartment after a renter moves out. Costa-Hawkins is extremely important because it exempts single-family homes, condominiums, and new construction built after 1995 from RENT CONTROL.

To help raise money to fight the repeal, EBRHA members will receive a special assessment notification and invoice. If you have any questions, please contact us at 510.893.9873 or membership@ebrha.com.

We are all in this together

Welcome

A LETTER FROM EBRHA CEO DEREK BARNES

It’s nearly halftime in 2024 and the months continue to whittle away from our calendars. As if rental property owners didn’t already have enough on their plates this year with non-paying renters, backlog in court proceedings, rising operating costs, canceled insurance policies, and legislation that creates more imbalanced renter protections, we now have the rise of more squatters who unlawfully lay claim to properties they do not own. Like title theft, property hijacking scams have increased exponentially over the last few years. Rental housing providers and homeowners are finding ways to fight back and retain ownership of their properties.

Squatting in the United States has a complicated history intertwined with property rights issues, homelessness and economic disparities. Historically, squatting has roots in indigenous land use practices and urban movements of the 20th century, particularly during periods of financial hardship such as the Great Depression. In the 1960s and 1970s, squatters’ rights became associated with countercultural movements and urban activism, with squatters occupying abandoned buildings as a form of protest against housing inequality and urban decay.

In recent years, the occurrences of squatting have increased for several reasons. Economic instability, rising housing costs, and gentrification have left many individuals and families unable to afford traditional housing, leading them to seek alternative living arrangements. Some estimates suggest that residential vacancies may be as high as 20,000 units across Alameda County. These homes are vacant or abandoned for various reasons, and the prevalence of empty units in some areas has created opportunities for more trespassing and squatting.

Some housing activists have even used the practice for political gain. In the fall of 2019, a prospect for Oakland City Council District 3, Carroll Fife, organized the takeover of a vacant property in West Oakland by a group of unhoused mothers who occupied the home for months as squatters. As

one of the key architects of the pseudo movement known as Moms 4 Housing, Fife seized the opportunity for political gain to exploit the economic realities of communities of color at the center of the housing crises.

How do squatters get away with this today? The practice has become more sophisticated over the years, making it difficult for property owners to remove trespassers. Squatters may utilize legal loopholes, such as adverse possession laws, to claim ownership of abandoned properties over time. They may also employ tactics to make it appear as though the property is occupied, such as installing makeshift utilities or posting signs indicating occupancy. Today, owners must remain diligent in monitoring their assets.

Furthermore, distinguishing squatters from renters with legal protections can be challenging for law enforcement. Squatters may present false documentation or claim to be renters, making it difficult to determine their legal status. In some cases, squatters may even forge rental agreements or utility bills to support their tenancy claims. The legal process for removing squatters can be lengthy and complicated, requiring property owners to navigate eviction proceedings and legal disputes. Squatters may also use renter protection laws, which vary by jurisdiction, to delay or challenge eviction efforts.

Overall, the increase in squatting in the U.S. reflects broader societal issues related to housing affordability, homelessness, urban development, and a growing sense of entitlement. As economic disparities persist and housing costs continue to rise, squatting will likely remain a contentious issue, requiring policymakers, property owners and communities to explore solutions that address the root causes of housing instability while respecting the rights of property owners and renters alike.

California’s Penal Code includes provisions related to trespassing and unlawful entry onto property. Law enforcement agencies have the authority to enforce these laws and act against individuals who are trespassing or squatting. The passage of Assembly Bill 38 (AB38) in 2020 aimed to streamline the process for property owners to remove squatters through civil action. AB38 allows property owners to obtain a temporary restraining order against squatters, expediting the process of removing them from the property. Additionally, the law imposes penalties on squatters who refuse to vacate the property after being served with an eviction notice. However, these laws don’t go far enough.

Derek Barnes

“Overall, the increase in squatting in the U.S. reflects broader societal issues related to housing affordability, homelessness, urban development, and a growing sense of entitlement.”

While specific cases of success in removing squatters from properties in California vary, there have been ongoing efforts by lawmakers and law enforcement agencies to address the issue of trespassing and squatting. This past April, during our annual Lobby Day in Sacramento, EBRHA brought up the issue of increased trespassing and squatting to several legislators who were interested in supporting a bill to thwart this activity. CalRHA and its nine affiliate associations (including EBRHA) will introduce legislation that provides more owner protections similar to those passed recently in New York and Florida to combat this growing problem.

In the meantime, we all encourage rental property owners and homeowners to proactively engage in several activities to ensure your vacant properties aren’t hijacked by squatters:

• Routine physical inspections and monitoring

• Alarms, security and remote surveillance/detection

• Simulated occupancy – automated lights, mail pickup, moving trash, parked vehicle, property/yard maintenance, etc.

• Neighborhood watch

Here are a few examples of common strategies that property owners have used to successfully remove squatters in California:

• Legal Eviction Process

• Temporary Restraining Orders

• Police Trespassing Intervention

• Ownership Documentation and Utility Evidence

• Community Support and Advocacy

Addressing squatting and trespassing remains a complex and ongoing challenge in the state and other local jurisdictions. As such, lawmakers, community organizations like EBRHA, and stakeholders continue to explore legislative and policy solutions to address the root causes of squatting while balancing the rights of property owners and legitimate renters.

EBRHA’s pro-housing stance hasn’t wavered. We continue to advocate for more production of below-market-rate affordable housing, financial support services for individuals and households experiencing economic challenges or emergencies, creating incentives to preserve our legacy rental owner businesses while maintaining their older properties, and increased education for rental property owners and renters to ensure all parties know their rights.

rental housing?

NEW MEMBER PROMO

New members receive a $40 account credit when they join.

REFERRAL PROMO

Existing members refer a new member to EBRHA and receive a $50 account credit.

May is Asian Pacific American Heritage Month

* MAY 1

Asian Pacific Heritage Month begins

* MAY 5

Cinco de Mayo

MAY 9

5:30-7:30PM

Legal Fundraiser Presented by Chris Moore

* MAY 14 Mother’s Day

MAY 14

2-3:30PM The Roundtable

MAY 21

3-4:30PM Member Meeting Presentation by Aireserv

MAY 23

2-3:30PM

Rental Marketing Workshop: Creating a Listing that Works Presented by Intellirent

MAY 23

5:30-7:30PM Networking Mixer at EBRHA's Office

* MAY 27

Memorial DayOffice Closure

JUNE 1 Pride Month Begins

JUNE 8

8:00AM-4:00PM Technology and Innovation Conference Lafayette Veterans Memorial Hall

JUNE 11

2-3:30PM The Roundtable Presented by Wayne Rowland

JUNE 14 Flag Day

* JUNE 18 Father’s Day

JUNE 18

3-4:40PM Member Meeting

* JUNE 19

JuneteenthOffice Closure

JUNE 27

2-3:30PM The Forum Presented by Dan Lieberman

JUNE 27

5:30-7:30PM EBRHA Networking Mixer -- Location TBD

* NON-EBRHA EVENTS

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

Out & About

EBRHA MEETINGS, SPECIAL EVENTS, AND MEMBER MIXERS

March Networking Mixer at the EBRHA office with a presentation by Marichal's Pest Control.

EBRHA members, staff, and board in Sacramento for Lobby Day on April 10th to meet state Assembly Members and Senators to discuss bills that impact rental housing providers.

Staff, board members, and

Contra Costa property owners at EBRHA networking event, Sauced BBQ in Walnut Creek.

The Urban League Monthly Honors event. Pictured: Alameda County Supervisor, Lena Tam and Urban League Bay Area President, Kenneth Maxey.

EBRHA CEO, Derek Barnes and Communications Mgr Chris Tipton with Congressman Mark DeSaulnier's Birthday celebration in Concord, CA.

Derek Barnes, EBRHA member Kelly Lux, and Wachira Group COO, Chadwick Spell at the State of the City, Alameda Chamber event.

David Cordero (AAOC), Christine LaMarca (CalRHA board member), Derek Barnes (EBRHA) and Dan Lieberman (EBRHA member) at Lobby Day mixer in Sacramento.

Spotlight

EBRHA MEMBER

SPOTLIGHT: REBECCA E. MÖLLER WITH SYMBIHOM

SYMBiHOM’s innovation simplifies ADU design and construction, offering faster builds, increased predictability, and higher quality for property owners.

Why are Accessory Dwelling Units (ADUs) becoming more popular?

ADU laws started in 2019 in California. ADUs are becoming more popular because of AB 1033 going into effect January 1, 2024 that allows the sale of an ADU whereas before a restriction used to disallow the sale. What this means is the ADU is now a ‘sellable’ asset, not just a rentable asset for those building as a means of additional income. It has now become a long-term asset in addition to a solution for aging in place with income, multi-generational living and rental income. SYMBiHOM’s building standard is similar to a commercial condominium making it a superior asset for long-term hold and especially for sale as a stand-alone housing product for sale.

If a property owner is interested in building or creating an ADU, how do they get started?

SYMBiHOM starts with a virtual interview process to first learn the intended use and the property owner’s budget/funding sources. Once the budget is known then an assessment

of the property is made with building data points and aerial views of the property to determine opportunities for conversion, addition or stand-alone ADU. The available square feet leads to a layout of a studio, one bedroom, two bedroom, etc., generally first budget then the property’s accommodation. For instance, the owner has an overall budget of $200,000 which is to include site and building drawings, permits, construction, finishes, and appliances; that points to a conversion, not a standalone structure or a partial addition to the existing.

Can ADUs help solve the California housing crisis?

It can if we have a scalable solution. Funding sources have been an impediment to progress and for sure the high interest rates make a return on investment not possible. A cash buyer or mostly cash can make the return. Also building departments can make is infamously difficult and slow if they are not on board with the added housing. When founding SYMBiHOM the scalability excited our company; creating a CA HCD modular solution that fits inside an existing structure or stand-alone where the inspections are performed in the factory allows speed for installation without local officials inside the walls; they are already inspected. My vision was a scalable insert that is typical yet customizable to any structure. For instance, in a ‘garage to residential living unit’ the building code classifies the conversion as a ‘change of use’ with predicates that everything be brought up to the current code. My prefabricated insert solution is created to current code, can be built while waiting for permit process to conclude because

I know it meets code, and then the structure is prepared with seismic improvements and the system is clipped in place. In a conversion, we are allowed to use gas, so increasing the service size is unnecessary.

Do ADUs work best for short-or longterm rentals?

Short-term rentals less than 30 days are not allowed, but 30-day rentals can provide a higher income for traveling nurses as an example. But now that they have become a sellable asset, it is more of a long-term investment if you are a property owner. With each ADU, a property owner has gained another sellable asset that includes land, that makes an investment return 100-percent gain compared to the build cost. Moderate-income rents will keep good renters as the revenue to cover the investment costs, and in the long run the value of the ADU has the potential grow exponentially in sales value.

What can more cities do to promote or accept the construction of more ADUs?

The state mandates in California force local municipalities to adopt the ADU laws. Building codes for conversion of office and retail spaces are under consideration for changes to allow more affordable solutions with safety always in the forefront, which in many cases makes a conversion cost prohibitive requiring seismic reinforcement, added stair tower, larger elevator cab/shaft for a gurney as examples. This is a huge area of need to revitalize underutilized building types. Building codes are here to stay. For SYMBiHOM the solution lay in simplifying the build so that the local agencies have less ability to slow the building process.

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• Complete retrofit if you have engineered plans (Tier 1 or Tier 2) Soft Story Apartment Buildings:

• 5 units or more

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• Built before 1978 CONTACT US FOR A CONSULTATION 510.271.0950 | info@wcpc-inc.com

& Construction All Under One Company! www.wcpc-inc.com | 510-271-0950 | License: B797467 Is Your Soft Story Rental Property in Compliance with Oakland’s Mandatory Seismic Retrofit?

Legislation

LEGISLATIVE REVIEW

BY RON KINGSTON

To say nothing is saying something. You must denounce things you are against, or one might believe that you support things you really do not. - Germany Kent

Certain members of the California State Legislature have declared all-out war with residential rental property owners … at least that is what many would conclude. Now, let’s see if you agree with that conclusion following a description of the bills that are featured in this article.

EBRHA is an association that exists, among many reasons to represent the best interests of property owners who rent their properties. Rental property owners/agents and affiliates businesses become members to learn how to preserve their best interests and to serve the rental housing industry. But years of laws adversely affecting property owners now requires action, not just learning. We have become the proverbial frog in boiled water. You see – individual pieces of legislation have been crafted over the years to slowly turn up the heat on restrictions and prohibitions; generally individual bills are sometimes ignored by the rental property industry as a whole if the bills do not pertain to an individual owner, but the construction of these

individual pieces when put together results in a large puzzle that has connected individuals to a whole unit, which is the residential rental property industry. While some may not be immediately affected in the same way others are –for now – it will affect members in the long run.

So, when asked as a member of our association to advocate for or against bills that have been introduced to the legislature, show your support because it is in the best interest of your future and your core.

Out of the many bills that have been introduced this year relating to the rental housing industry, this article is going to focus on the top seven extremely problematic bills.

Assembly Bill 2216, authored by Assemblymember Matt Haney. Pets in all Rental Properties. AB 2216 requires property owners to accept pets in their rentals without charging any additional refundable or non-refundable fees. This measure, if successful, would be the first in the nation to require property owners to accept pets in their rental properties without imposing any additional pet rents or security deposits. The bill requires all owners/agents to allow renters to own or maintain pets in their units and prohibits the owner/ agent from charging a non-refundable pet fee.

Following watching the very brief QR code, it just may motivate you to contact your state senator and assemblymember and share the QR code below and urge them to protect properties from destruction and the health, safety, and habitability of renters residing in multi-family housing by voting NO on AB 2216.

Assembly Bill 2187, authored by Assemblymember Isaac Bryan. Establishing a State-Level Renter Rights Office. AB 2187 proposes to establish the Office of Renters’ Rights and Protections (“Office”) and administered by a director appointed by the governor within the Civil Rights Department, which is tasked with establishing and maintaining an up-to-date list of statewide renters’ rights and protection laws. It would also mandate that the list be made available in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. The measure intends to centralize, distill and translate the large (and growing) body of law regarding renters’ rights and protections in one place by creating more bureaucracy. There are several state departments that already offer accessible information for renters and have done so for many years.

Currently, our judicial branch of California provides many avenues of assistance for renters who have questions or seek help with the myriad of laws relating to property owner and renter. The California courts, for example, publish a self-help guide, the state Judicial Council publishes forms relating to this area of law, the state publishes a guide that describes the laws on property owner and renter, the state Civil Right Department exists to protect renters from discrimination, the Department of Housing and Community Development maintains a number of renter assistance programs, the courts provide renter assistance centers, and so goes the list. And in many metropolitan areas, local governments have adopted hundreds of laws to assist renters.

Additionally, California Department of Real Estate (DRE) currently publishes a booklet for California renters, which is accessible online. The DRE first published the “guide to residential renters’ and property owners’ rights and responsibilities in 1998. The booklet has been updated eight times since 2000, with the last update taking place in 2022. The booklet is a comprehensive 124-page guide to rights and responsibili-

ties of both property owners and renters.

The state bar of California offers resources to individuals requiring assistance with housing-related issues.

To establish a new office whose sole purpose is to publish a list of state laws is clearly overkill. Arguably, it will not come close to listing the local government laws relating to this issue. So, is the renter going to be well served or confused should this legislative measure become law?

Assembly Bill 2347, authored by Assemblymember Ash Kalra. Is the UD Process Broken? AB 2347 proposes to extend a defendant’s time to respond to an unlawful detainer action from five court days to 10 court days. Additionally, a proof of service of summons and complaint shall be filed promptly, and a copy must also be sent to the defendant. Furthermore, a default cannot be entered by the clerk no sooner than three days following the filing of the proof of service of summons and complaint.

Among our reasons to oppose Mr. Kalra’s bill:

Although this bill more than doubles the amount of time for a defendant to respond to an unlawful detainer while remaining in possession of the rental unit at issue, it does not address the core issue pertaining to timely judgment relating to unlawful detainer litigation.

Currently, the average length of time of unlawful detainer (UD) litigation through judgment on contested UD cases is three to four months. The current litigation process actually harms renters losing possession on a residential rental unit by incurring rental debt for four to five months, as opposed to one or two MONTHS, which creates an impossible financial burden on renters who are being evicted for non-payment of rent.

Because finalization of the litigation process takes so long, a property owner is forced to pass on a previous renter’s failure to pay rent (for months) on to a subsequent

renter when rental rates must be increased to the maximum allowable amount pursuant to law due financial loss created by a renter and exacerbated by the courts.

Assembly Bill 2801, authored by Assemblymember Laura Friedman. AB 2801 proposes to limit the use of a security deposit to material and supplies necessary to make reasonable replacement or repairs and prohibits the use of professional cleaning services, including carpet cleaning. AB 2801 also leaves a gap of time between a pre-move out inspection and when renters fully vacate the dwelling that exposes property owners or their agents to liability for damage caused by renters and prohibiting recovery from renters. Among the reasons to oppose are as follows:

Professional cleaning is a service that ensures proper cleanliness of unsanitary conditions resulting from damage willfully caused by renters. The cleaning invoice must be paid for by the renter that caused the necessity to clean the premises . . . . otherwise, departing renters will have no reason to clean up after themselves. Consider:

• Improper carpet cleaning creates unnecessary liability for property owners and their agents to habitability complaints from subsequent renters.

• Replacing carpet after each tenancy is unnecessary and costly if proper professional carpet cleaning is an adequate measure to maintain a dwelling unit’s habitability.

• When renters move into a multi-family residence, there is a uniform expectation that their new home is clean and sanitary. A convincing argument cannot be made that renters choose to move into a new home that reeks of foul odor or enjoy the thought of living in someone else’s “filth”.

Penalizing a property owner and/or their agent for using a professional cleaning service to ensure habitability for a subsequent renter is punitive.

Some forms of damage caused by a renter during tenancy could require professional services and the renter should always be required to pay for cleaning and damage. Issues arise during tenancy including:

• Mold resulting from damage requires professional evaluation and cleaning.

• Damage resulting in lead exposure requires professional evaluation and cleaning.

• Biohazardous waste requires professional evaluation and cleaning.

• Fire resulting in exposure to particulate matter, asbestos fibers, or chemicals from illicit drugs require professional evaluation and cleaning.

Limiting a property owner from charging for “materials or supplies related to repairs ...to those necessary ...” will result in owners accounting for the amount of product used in bottles, cans, and other necessary supplies is unreasonable and unjustified.

Requiring a property owner to provide photographs justifying the cost of repairs is extremely limiting and unjustified. Photographs are one of many different ways to account for damage or repairs to the dwelling unit.

AB 2801 is an attempt to redefine the definition of a “security deposit” by severely limiting the ways in which a property owner may provide a clean and sanitary unit to a subsequent renter following damage caused by a former renter without violating California State Habitability Laws. 801 sends a message to renters that they may willfully cause damage to a temporary residence without consequence; and that said willful damage is the, “cost of doing business,” as a property owner in California.

Assembly Bill 2785, authored by Assemblymember Lori Wilson. AB 2785 updates when and at what amount an application screening fee can be collected, and updates protocols relating to security deposits paid by renters. More importantly, this bill caps the amount of the application screening fee that can be charged at $50 per applicant. Furthermore, the bill requires an owner or their agent to return any amount of the application screening fee to the applicant within 21 days of when the fee was collected, if:

a) The owner or their agent does not perform a personal reference check or does not obtain a consumer credit report; b) The owner or their agent does not select the applicant for tenancy; or (c) The fee collected exceeds the amount permitted by law and requires the owner or their agent to include in all renter application forms a clear provision that notifies prospective applicants of the refund policy, as specified.

Skepticism has been placed on this bill regarding a very serious concern that property owners will bear the brunt of this financial burden. In fact, it is being argued that a possible solution to this may be adopting a standard reusable screening report with a one-time fee that can be used to apply to multiple listings. Additionally, it has been advised to the author that there be consideration to add an alternative

option to the $50 screening fee — acceptance of the reusable screening report pegged to CPI. This would permit owners or their agents to better recover their costs, while giving the renter the ability to incur only a one-time fee to submit an application that could be used to apply for multiple units.

Assembly Bill 2493, authored by Assemblymember Gail Pellerin. AB 2493 would prevent property owners or property management companies from charging a rental applicant a screening and application fee more than once if the applicant has applied to rent more than one property owned by that property owner or property management company within 30 days. There is no business need to screen applicants more than once. All the charges for credit and background reports and staff time would be paid for with the first application fee. And it is very unlikely that anything would change in the consumer's credit or background check with in the 30-day period that the application fee is good for.

AB 2493 will also prevent an owner or their agent from charging a potential applicant a fee to be entered onto a waiting list for a rental unit if no rental unit is available at the time or will be available in a reasonable amount of time. By prohibiting such fees, the bill ensures transparency and prevents applicants from being financially exploited when there is no immediate prospect of securing a rental unit. This does not apply to waiting lists for subsidized housing or Section 8.

Some owners or their agents utilize more than one management company, and therefore would not know that an applicant applied at their different buildings. Also, practical challenges with implementing centralized screening software that could accurately track who applied and when to ensure that they comply with the bill’s mandates. These logistical considerations pose a challenge but should not be insurmountable.

Prohibiting law abiding property owners and their agents from collecting screening application fees so an applicant may be placed on a waiting list creates a disadvantage to property owners by causing a residential rental unit to sit vacant for longer than necessary. Conversely, prohibiting a willing applicant to be charged screening fees while maintaining status on a waiting list creates additional burden for the applicant to find housing at the exact period of time the applicant needs housing.

Assembly Constitutional Amendment 10, authored by Assemblymember Matt Haney. ACA 10 establishes that the state recognizes the fundamental human right to adequate housing for everyone in California. This right is a shared obligation of state and local jurisdictions to respect, protect and fulfill this right, on a non-discriminatory and equitable basis, with a view to progressively achieve the full

realization of the right, by all appropriate means, including the adoption and amendment of legislative measures, to the maximum of available resources.

Should a right to housing be added to the California Constitution, local and state governments would have an obligation to proactively ensure that people have access to adequate housing. This could include land-use policies that remove barriers to housing production by zoning for more housing, expediting approval of affordable housing, and adopting polices that further fair housing. This could also include enacting renter protections, regulating the housing market, building, preserving public housing, providing housing subsidies, and implementing progressive tax policies. If a right to housing is added to the state Constitution, a state or local government could be sued to enforce the right to housing and the court could direct the state or local government to take actions to fulfill the right to adequate housing.

ACA 10 establishes the right to housing as a shared obligation of state and local governments and requires the realization of the right by all appropriate means to the maximum of available resources. The language requires the local and state governments to work “progressively” toward fulfillment of the right. This is based on recognition that the state and local government does not have all of the necessary financial resources available to resolve homelessness or the lack of affordable housing.

In summary: If rental property owners/managers/and affiliate businesses do not get involved with the fight, your livelihood is at stake, your sanity is at stake, your future is at stake.

Educate

FROM VACANCY TO OCCUPANCY: HOW SMS MARKETING STREAMLINES

RENTAL PROPERTY MANAGEMENT BY PHIL PORTMAN

In the competitive rental property market, effective management is key for maximizing income and renter satisfaction. Short Messaging Services (SMS) or text message marketing offers a solution by improving communication, streamlining vacancies, and enhancing the renter experience. This article discusses rental management challenges and how SMS can address them along with its benefits and best practices.

CHALLENGES IN RENTAL PROPERTY MANAGEMENT AND HOW SMS MARKETING CAN HELP

1

HIGH COMPETITION FOR RENTERS

Challenge: In a competitive market, property owners often struggle to attract quality renters amidst numerous rental options.

Solution: A property owner offering a rental property in a competitive market sends out an SMS campaign highlighting the property’s unique features, such as a newly renovated kitchen or proximity to public transportation. The SMS includes a link to schedule a viewing or request more

information, immediately engaging potential renters.

“Looking for your next home? Check out our newly renovated two-bedroom apartment with a view! Schedule a viewing now: [Link].”

2 COMMUNICATION GAPS WITH RENTERS

Challenge: Miscommunication or delayed communication can lead to misunderstandings, conflicts, and renter dissatisfaction.

Solution: A property manager uses SMS to send automated reminders to renters about upcoming maintenance schedules. The SMS includes a brief description of the maintenance work and a link to confirm or reschedule the appointment, ensuring clear communication and reducing the likelihood of missed appointments.

“Hi [Renter’s Name], just a friendly reminder about the upcoming maintenance schedule for your unit. Click here to confirm or reschedule: [Link].”

3 EFFICIENT MANAGEMENT OF PROPERTY VACANCIES

Challenge: Vacant properties result in lost revenue and increased costs for property owners.

Solution: A property owner with a vacant property sends out an SMS blast to a list of potential renters who have previously expressed interest in similar properties. The SMS includes photos of the vacant property, a brief description highlighting its key features, and a link to schedule a viewing or submit an application, quickly filling the vacancy.

“Exciting news! We have a newly available one-bedroom apartment in your desired location. Schedule a viewing today: [Link].”

4 TIMELY RENT COLLECTION AND REMINDERS

Challenge: Tracking rent payments from multiple renters and ensuring timely collections can be challenging and time-consuming.

Solution: A property management company sends out automated rent payment reminders to renters a few days before rent is due. The SMS includes a link to a secure online payment portal, making it easy for renters to pay rent on time and reducing the administrative burden on the property manager.

“Hi [Renter’s Name], just a friendly reminder that your rent is due in 3 days. Pay now to avoid late fees: [Link].”

BENEFITS OF USING SMS MARKETING FOR PROPERTY MANAGEMENT

Using SMS marketing for property management offers several benefits that can significantly enhance renter communication, streamline operations, and improve overall efficiency. Here are some key advantages:

1. Instant Communication: SMS allows property managers to communicate with renters instantly, ensuring that important messages are received and acted upon promptly. This is particularly valuable for emergency notifications or time-sensitive announcements.

2. High Open and Response Rates: SMS messages typically have high open rates compared to other forms of communication, ensuring that messages reach the intended audience. Additionally, SMS responses are often quicker, enabling faster resolution of issues or inquiries.

3. Cost-Effective: SMS marketing is a cost-effective communication channel compared to traditional methods such as postal mail or phone calls. It requires minimal investment in time and resources while delivering significant reach and engagement.

4. Convenience for Renters: SMS offers a convenient communication channel for renters, allowing them to receive important updates, make inquiries, or submit maintenance requests directly from their mobile devices, regardless of their location.

5. Automated Reminders and Notifications: Property managers can automate SMS reminders for rent payments, lease renewals, maintenance appointments, and other important deadlines. This helps reduce late payments, improve renter compliance, and streamline administrative tasks.

6. Enhanced Renter Engagement: SMS marketing facilitates two-way communication between property managers and renters, fostering a sense of engagement and community. Renters are more likely to respond to SMS messages, providing valuable feedback and insights.

7. Targeted Marketing Campaigns: Property managers can use SMS to send targeted marketing messages to specific groups of renters based on their preferences, demographics or rental history. This allows for personalized communication and tailored offers, increasing the likelihood of renter engagement.

8. Trackable Metrics: SMS marketing platforms often provide analytics and reporting features that allow

“SMS marketing offers a solution by improving communication, streamlining vacancies, and enhancing the renter experience.”

property managers to track the performance of their campaigns in real time. They can monitor delivery rates, open rates, response rates, and other key metrics to measure the effectiveness of their communication efforts.

BEST PRACTICES FOR IMPLEMENTING SMS MARKETING FOR RENTAL PROPERTY MANAGEMENT

• Obtaining Renter Consent and Compliance

• Begin by obtaining explicit consent from renters to receive SMS communications. Ensure compliance with relevant regulations, such as obtaining opt-in consent and providing clear opt-out instructions. This builds trust with renters and ensures legal compliance.

• Personalizing Messages Based on Renter Preferences

• Segment your renter database based on preferences, interests and rental history. Use this information to personalize SMS messages, addressing renters by name and offering relevant content, such as maintenance tips or event invitations. Personalization increases engagement and fosters a stronger renter relationship.

• Integrating SMS Marketing with Other Tools

• Integrate your SMS marketing platform with other property management tools, such as CRM systems or email marketing platforms. This

integration enables seamless communication and allows you to track renter interactions across different channels. For example, you can send an SMS reminder about an upcoming open house and follow up with an email containing more details.

• Monitoring and Analyzing Campaign Performance

Regularly monitor the performance of your SMS campaigns using metrics like delivery rates, open rates, and click-through rates. Analyze this data to identify trends and insights, such as which messages resonate most with renters or the optimal timing for sending messages. Use these insights to refine your SMS strategy and improve campaign effectiveness over time.

EXPLORE SMS MARKETING

In a nutshell, we encourage property owners and property managers to explore the possibilities of SMS marketing for their rental properties. By leveraging the power of SMS, you can increase renter communication, improve operational efficiency, and ultimately, drive better results for your property management business. Philip Portman is the Founder/CEO of Textdrip, a business texting platform for E-Commerce, Insurance, Hotels & Hospitality, Real Estate, and Healthcare. He has created several startups from the ground up like; landlineremover.com, argosautomation.com, and recruitdrip.com. He is a leading expert in SMS marketing and automation in digital marketing.

Educate

THE DOS AND DON’TS WHEN USING DRONES

BY BREA HARPER

Drones, unmanned aerial crafts, came into vogue for filming properties a little after 2015 when people began using them for recreational purposes. The real estate industry jumped in and started flying drones to give prospective buyers or renters an opportunity to see an aerial overview of the entire property. This technique spawned other areas to apply drone usage, but user beware. You cannot arbitrarily fly drones in neighborhoods without awareness about air space and rules regarding privacy. So, what do you need to know before using a drone?

Traditionally drones were originally used for property shots and things like landscape planning, which could be applied to marketing materials. Then property owners got more interested in using drones to do remote property inspections, but wait! It’s not like owners can acquire drones and then use them to fly over properties whenever they want. Also, owners cannot use drones to monitor renters and violate their privacy.

Matt Morgan, a licensed California Real Estate salesperson, said, “In the context of commercial real estate, drones can be incredibly useful tools beyond just surveillance. For instance, they’re excellent for high-quality aerial photography and videography that can significantly enhance marketing materials for property listings. Additionally, drones can perform roof inspections or site surveys, providing valuable data without the risk and expense of traditional methods. In each scenario, my approach has always been to weigh the benefits against privacy concerns and regulatory compliance, ensuring that

our use of technology like drones adds real value while adhering to ethical standards and laws.”

“As an individual, I have indeed utilized drones to inspect my properties, finding them incredibly useful for gaining aerial perspectives of adjacent and current rental properties,” said Julianna Lang, a drone tech expert with Xdroneshop.com. “I have found drones to be invaluable tools for property inspection, allowing me to assess property conditions, identify potential

issues, and capture stunning aerial imagery for marketing purposes. They provide a comprehensive view that is often difficult to achieve from the ground.”

However, before you decide to jump in and use drones. You need to ensure you understand the rules and regulations that control drone usage, especially in urban and suburban areas. “You have to be very careful with drone usage,” said Seamus Nally, CEO, TurboTenant. “Things like air rights

and privacy are tricky considerations to navigate, and you don’t want to go about them the wrong way. One of the best uses for drones with rental properties is to create footage for listing purposes – footage shots when the property isn’t occupied. People like drone footage when looking for homes, so it can be a helpful tool.”

And while it may seem a bit extreme, because we learned as children we could fly remote-controlled airplanes without consequences, property own-

“You have to be very careful with drone usage,” said Seamus Nally, CEO, TurboTenant. “Things like air rights and privacy are tricky considerations to navigate, and you don’t want to go about them the wrong way.”

ers cannot use drones whenever they want. It may sound like you’re trying to fly an actual airplane, but before you can fly a drone, you must file a flight plan, “wait for clearance for takeoff from a local air traffic control tower, and stay under 400 feet in altitude,” explained Martin Orefice, CEO of Rent To Own Labs.

However, before you file such a plan, realize what is permissible when it comes to drone use. “Understanding and adhering to rules and regulations governing airspace over housing is crucial,” said Lang. “These regulations typically include restrictions on flying drones near airports, over crowds, or above certain heights. Additionally, local ordinances or homeowner association rules may dictate drone usage in residential areas.”

Privacy laws drive drone usage the most. “Respecting privacy is paramount when using drones,” continued Lang. “To ensure compliance, I am mindful of privacy laws and regulations, avoiding flying drones over neighboring properties without permission and refraining from capturing images or videos that could infringe on individuals’ privacy rights.”

“It is not against the law to fly over someone’s home, just as long as the pilot stays above the tree top-level,” said Donald Williams, founder of Aerial Imaging Services. “The FAA maintains

that the area above the tree tops is navigable airspace and not controlled by any other entity. If the property is close to an airport, the pilot may have to get airspace authorization via the LAANC system to let manned aircraft and other authorities know that there is a drone flying in the area.”

“The FAA sets broad guidelines for drone use, which include not operating drones in a manner that invades someone’s privacy under the national airspace system” explained Morgan. “Additionally, California has its own set of privacy laws that can impact drone surveillance, mandating a cautious approach to ensure that any drone operation doesn’t inadvertently breach renter confidentiality or privacy. These regulations form a framework within which we assess the potential for using drones in property management, always prioritizing legal compliance and respect for privacy. In the context of commercial real estate, drones could be incredibly useful tools beyond just surveillance.”

“My approach has always been to weigh the benefits against privacy concerns and regulatory compliance, ensuring that our use of technology like drones adds real value while adhering to ethical standards and laws,” added Morgan.

Brea Harper is a regional Bay Area writer.

Local Spotlight

ILONA CLARK PROPERTY OWNER

Richmond, CA

I’ve been an ICU nurse for almost 20 years. I took over management of my dad’s five-unit building in 2012 to help support him. I have been on a steep learning curve ever since. In 2013, my husband and I bought a duplex in Richmond (not yet rent controlled at that time). When rent control was voted as law in Richmond, I was in the unusual position of being a Richmond housing provider with some experience in rent control. We have tried to work with our rent board staff to craft regulations that are more balanced than regulations have been in other jurisdictions. Our aim was to avoid past mistakes. While the process was educational, the outcome was disappointing. While rent control in Richmond is the reality, we are hoping the present system may be changed to something less conflict-oriented, less litigious, less expensive. Regulations should support both renters and housing providers and help bring people together to hash out issues before they rise to the level of paying lawyers. These same laws should protect both “sides” from abuse. We believe we are in this together, only together, can we succeed.

Describe your property owner goals for your business...

I’m a bit of an exception to the rule in that I do not depend on my properties for income. I manage one property for my dad to support him in old age and my husband and I bought the property in Richmond to diversify our portfolio for retirement and to potentially add flexibility for our (now grown) children in terms of flexibility for them.

What is the current state of property ownership in Richmond, meaning either supportive or unsupportive of owner/operators?

As of 2015 when Richmond rent control went into effect, the vast majority of properties in Richmond were small. Less than five units owned by a single owner. I believe that was about 80 percent according to our own rent adjustment program's statistics. As far as owners being supportive or unsupportive of their renters, I think that’s really all over the map. There are some pretty bad abusive property owners in Richmond, and I think many just want to be able to do their business and provide decent housing and have a sane life.

RICHMOND/ SAN PABLO

Population: 220,892

Vacancy Rate: 4.5%

Number of Rentals: 99,737 Rent Control: Yes

Percentage of residents who rent: 48%

Average rent for 1 to 2 bedroom housing: $2313

What are some of the biggest issues property owners in your region have to overcome or manage?

The regulations change very quickly and it is very difficult to control or even contribute to the public narrative. There’s a lot of disinformation and misinformation and outright lies that affect who gets elected. Right now we have an extremely “progressive“ city Council who will vote for any nonsense put before them.

What do you do to make your business a success?

I am on a first name basis with all of my renters from the outset. I try to

ILONA CLARK, PROPERTY OWNER, RICHMOND

CHRIS TIPTON

be completely honest with them right from the beginning. For example, “This apartment is rent-controlled, that means your rent will go up every year, but not by very much.” I am very responsive to them when they have a question or an issue. I do not nickel and dime. No coin-op laundry nor I do charge extra for their parking/garage space, and I’m always appreciative, even when they bring up problems.

What makes Richmond such a great place to own properties?

When we were looking for properties, I specifically did not look in rent-controlled areas. Having had experience

in Oakland with that sort of politics, I was not anxious to repeat it. Especially since it’s very hard to know what the finances are going to be like the first few years of owning a property. Now that Richmond has enacted rent control, the rent control staff did not accept our (Association of United Richmond housing Providers) efforts to make regulations that could have been quite balanced when they were being fleshed out after the measure was passed. I would not say that it is a great place to own properties. If not for city politics and rent control,  Richmond has a lot to offer. It has a lot of shoreline and a lot of history,

including the Rosie the Riveter museum and the Red Oak Victory being just the beginning. The public school system is spotty but it has a good dual immersion program for English and Spanish learners starting in kindergarten that my kids went through.There is also the Richmond ferry for commuting to San Francisco without having to deal with bridges and traffic.

There are also many gifts that are not in Richmond proper but are very close – Contra Costa College, Point Isabel and Point Pinole Parks, access to wildcat Canyon Park that connects with Tilden and all the way down to Lake Chabot along the hills.

Brickyard Landing in Richmond

Inform

PREVENT LAWSUITS AND DISCRIMINATORY PRACTICES

BY LYNN KREHER

How much can a property owner end up paying in legal fees if a renter sues?

The average attorney, who represents property owners, can charge more than $250 an hour. What does that translate to in your business? Small- to medium-sized property owners often don’t net huge profits. So, when they get sued by renters, it can not only ding profitability, but extreme cases can put a property owner right out of business. These potential legal problems behoove the average property owner to ensure he/she doesn’t inadvertently bring the legal problems (excuse the pun) home.

The state of California has strict laws, rules and regulations when it comes to discriminatory practices of property owners toward renters. The Civil Rights Department (CRD) of California states the following: “California’s Fair Employment and Housing Act

(also known as FEHA) applies to most providers of housing and services related to housing such as property owners, renter screening companies, real estate agents, home sellers, builders, mortgage lenders, and housing authorities. This law prohibits people or entities that provide housing from discriminating against or harassing renters, homeowners, residents, their guests, housing or mortgage applicants, home buyers, and others. In addition, another law, the Unruh Civil Rights Act, applies to housing providers that qualify as a business establishment from discriminating against customers on the basis of protected characteristics.”

As a result, property owners must know these laws in order to prevent legal problems. The department goes on to outline discriminatory practices to be avoided. Examples of actions that could be discriminatory if based on a person’s protected characteristic include:

• Refusal to sell, rent, or lease rooms, apartments, mobile homes, condos, or houses.

• Refusal to negotiate for the sale, rental, or lease of housing.

• Informing someone that an apartment is not available for inspection, sale, or rental when it is in fact available.

• Denial of a home loan or homeowner’s insurance.

• Cancellation or termination of a sale or rental agreement.

• Refusal to permit, at a disabled renter’s expense, reasonable modifications – such as adding a ramp, widening a doorway, or installing a safety bar in a shower – when necessary to accommodate a disability.

• Refusal to make reasonable accommodations in housing rules, policies, practices, or services where necessary to provide a disabled person equal opportunity to use and enjoy a dwelling.

• Rules that restrict only on families with children, such as a prohibition against children using an on-site pool or playing in common areas of an apartment complex.

• Refusing to rent to a renter with a section 8 voucher.

• Not complying with the requirements of a rental assistance or subsidy program (such as section 8) by refusing to complete required forms, sign documents, or allow inspections.

• Refusing to rent to anyone with a criminal history.

• Screening prospective renters –including when done by a third-party such as a renter screening company

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in a way that discriminates based on a protected characteristic.

• Retaliation against someone because they filed a complaint with CRD, requested a reasonable accommodation for a disability, or otherwise tried to protect their rights to be free from housing discrimination

PREVENTING PROBLEMS

What can property owners do to be proactive and ensure they don’t violate the laws? Knowledge and education offer the first line of defense. Some of the biggest legal mistakes don’t get intentionally made, but rather accidentally done out of unawareness. “As a caring property owner, I understand the importance of self-reflection and ongoing education to prevent personal biases from affecting my decisions. I regularly examine my own beliefs and attitudes to ensure they don’t interfere with my commitment to fairness and inclusivity,” said Cam Dowski, the CEO and founder at WeBuyHousesChicago.

“The Fair Housing Act has a list of protected classes that property owners must know about in order to prevent discriminatory practices,” explained Seamus Nally, CEO, TurboTenant.

“These classes include race, color, religion, national origin, sex, disability, and familial status. It’s important for property owners to fully understand all that is protected under each class. One that people may have misconceptions about is disability – the assumption may be that this only includes physical

disability. The FHA adheres to federal nondiscrimination laws which have broader parameters for what is considered a disability, and beyond physical impairments, it includes things like mental illness and even various forms of addiction (if being addressed through a recovery program).”

Dowski added, “One thing that property owners should know is that discrimination laws also cover familial status. This means property owners can’t discriminate against families with kids under 18, including pregnant women or those in the process of adopting. This applies to both the rental application process and the terms and conditions of tenancy.”

Dowski also discussed some of the little known information that property owners need to familiarize themselves with. “Sometimes, property owners unintentionally create barriers that discriminate against certain groups. For example, only accepting rental applications during regular business hours can disadvantage those who work non-traditional hours or have other obligations. To address this, owners can offer alternative methods for submitting applications, like online submissions or extended hours. By removing these barriers, they ensure equal opportunity for all renters.”

This issue of Rental Housing Magazine under Advocate, discusses pet-related laws. Ben Michael, attorney, Michael and Associates, clarified something significant that most prop-

erty owners don’t realize. “Under the Fair Housing Act, emotional support animals are viewed the same way as service animals,” he said. “So, a person cannot face housing discrimination if they have an emotional support animal. However there may be different state laws depending on where you live revolving around emotional support animals and rentals. For example, many states require that applicants disclose their emotional support animal when applying for a rental property. It’s important to be aware of your state’s specific laws regarding emotional support animals and rental properties in order to prevent discriminatory practices.”

The CDR describes emotional support animals as: “An ESA is an animal that provides emotional, cognitive, or other similar support to a person with a disability to assist them in managing the symptoms of their disability. ESAs are also referred to as comfort animals or support animals.”

Some tips to prevent discrimination: one, know the law; and two, create an organized business model that implements standard practices and parameters that prevent the problem. “To prevent discrimination in my renting process, I’ve standardized application and screening procedures for all applicants,” said Matt Morgan, a licensed California Real Estate Salesperson. “This includes using a consistent set of criteria for credit checks, income verification and references for every applicant. This systematic approach ensures that decisions are made based on objective data rather than subjective judgment, minimizing personal biases.

“If faced with a discrimination claim, the first step is to consult with a legal expert to understand the situation better and to respond appropriately,” continued Morgan. “Open communication with the aggrieved party to understand their concerns and seek a mutual resolution is also critical. Documentation of every step of the rental process can provide essential evidence to support non-discriminatory practices.”

Lynn Kreher is a Bay Area writer.

Inspire

WHEN SHOULD YOU REMODEL YOUR RENTAL

BY JOHN CARONNA

When is it time to consider remodeling your rental properties? It’s important to consider the financial benefits of remodeling, which could produce more rental income and increase property values. So, what are some other factors to consider when determining whether or not it’s time to remodel your properties?

The best way to determine if you should remodel a unit, and if it’s worth it, would be to look at current vacancies on Craigslist or Zillow, and then look at the pictures. Compare that information with what the rent would be if your current unit is not updated. Now look at what the rent would be if you

updated the unit.

Next, do the math. The best calculation is to determine if you can get the cost of the remodel back over the next 48 months with the higher rent you’ll receive versus if you rented it without remodeling it. For example, if you can get $400 more per month on your unit and your cost is going to be about $15,000, then you will quickly realize return on investment. You will get that back in the next 40 to 48 months. So, that is a no-brainer and that $5,000 of extra gross rental income per year makes it profitable. Also, it increases your building’s worth $50,000 to $60,000 more than it would be if you didn’t remodel it.

BEST TIME

Timing wise, what is the best plan of action to take? Consider these remodeling tactics to move forward.

COMMON AREAS FIRST

The first step when considering the timing of the remodel and where to start is to consider the exterior of the building and make sure common areas look really great. Your common areas make your first impressions.

INDIVIDUAL UNITS SECOND

Next, turn your attention to consider when to update the individual unit. A good time to do it is when you notice someone is going to vacate the unit.

If you were in a rent-control market, the only time you want to update unit is when the unit is vacant and you can rent out at market rent.

DETERMINE YOUR UPGRADES

When it comes to the actual choices of what to upgrade, consider the following:

LIGHTING

Replace old lighting with in-ceiling lighting that you can cut through the ceilings to put in flush lighting – that makes the place look very bright and modernized.

Again, remodeling can be recouped in 36 to 48 months, increase your investment’s value, and grow cash flow. Remodeling can also make excellent

first impressions, especially when redoing common areas, which are often the first thing prospective renters see. An inviting property makes renters want to say, “I would love to live here.”

TILES

Consider replacing all bathroom and kitchen tiles if they’re not in great shape. A lot of renters love the classic tiles, but they have to be really clean and in great condition. Then if you have older faucets in the bathroom and in the kitchen, that’s a pretty easy update-just replace those with newer ones.

HARDWOOD VS. CARPET

Number one, renters love hardwood floors versus carpet. And as an owner,

carpet takes a lot of maintenance each time a renter moves in or out versus a hardwood floor which maintains itself better. If the renters take decent care of hardwood floors, you don’t have to redo them for potentially eight to 10 years.

APPLIANCES

The second number would be update the appliances: refrigerator, stove or dishwasher. One of the requests asks, “Is the stove electric or gas?” Renters always prefer a gas stove.

John Caronna is an East Bay multiunit owner for 24 years and a Real Estate Multi-Unit Specialist. He can be reached at 425.531.5225 or via email at j.caronna@sbcglobal.net

Advocate

We are a nation of pet lovers. In the U.S., according to Forbes Advisor, 66 percent of U.S. households own pets, which is 86.9 million homes. Now consider the statistics for how many rental properties allow pets. According to an article titled “California Bill Would Require Landlords to Accept Pets” by Vanessa Rancaño, “Haney’s staff analyzed Zillow apartment listings and found that 20% of San Francisco apartments allowed cats and dogs of all sizes, while 18% of those in Sacramento and 26% in Los Angeles did. Survey research finds that two in three households own pets nationwide, and 72% of renters report that pet-friendly housing is hard to find.”

Now the California State Legislature has proposed AB 2216, a new bill authored by Democratic Assembly member Matt Haney that intends to bar property owners from asking about pets on applications, prohibit additional monthly fees for pet owners — or “pet rent” — and limit pet deposits. Sponsored by the Humane Society, “The bill would prohibit a property owner from preventing a renter from owning or otherwise maintaining a common household pet without reasonable justification. The bill would provide that this provision does not limit or otherwise affect a property owner’s ability to impose reasonable conditions on household pets, and does not apply to a rental agreement that prohibits the ownership or otherwise maintenance of a common household pet that was entered into before January 1, 2025.”

This bill will have pet owners thrilled and relieved that they don’t

A “RIGHT” TO PETS?

BY MICHELLE GAMBLE

have to give up their beloved pets to find housing. Owners do need to understand, and especially those property owners who love their animals will get it, that pets become our family members. When strict policies exist that prohibit pet ownership, it sometimes forces renters to have to choose between their “family member” and proper housing. Some renters would rather live in their cars than give up their beloved pets – and that exacerbates an already existing homelessness problem. Further, pet owners will also sneak their animals into their homes and not inform the property owner, which makes the problem even worse.

Property owners’ anti-pet policies seem reasonable when you consider the amount and cause of damage small animals, cats and dogs can cause. This bill would remove pet deposits and pet rent, too. This means often expensive damage caused by animals won’t necessarily be covered and end up destroying property assets like hardwood floors (animals not having their claws clipped scrape and tear up floors), interior or exterior walls that dogs can chew up, or pet urine in carpets (cat urine is difficult to remove) that create unpleasant odors. Also, it may make the unit difficult to re-rent, as some people are allergic to cat or

dog dander. Without the protection of extra money being paid to cover negative consequences, property owners could end up spending potentially thousands of dollars to make repairs.

Middle ground needs to be reached with some kind of compromise. Most pet and property owners do understand that renters don’t want to sacrifice their pets just to find a place to live. A flat-out law that denies owners the ability to collect pet deposit and rents doesn’t make sense either and is unfair to housing providers. On the flipside, when property owners deny all pet owners opportunities to rent based on pet ownership, that also isn’t

reasonable.

What seems fair would be for owners to be required to allow pets, but under certain scrutiny and screening that can be written into leases. The position of most owners is that pets should be screened just like people. The pet owner should have adequate insurance to cover potential property damages and personal injury.

Strict rules regarding things like twice annual “pet inspections” can be put in place that outline pet ownership guidelines and requirements. Leases and rental agreements can stipulate the regulations and rules that would apply and “fines” that can be levied if,

say, Fido or Kitty destroys something. If anything, a law should be drafted that explicitly identifies guidelines on pet ownership and gives property owners methods of recourse.

It doesn’t have to be an all-or-nothing proposition. Pet owners shouldn’t have to make a choice between their pets and housing nor should property owners have to pay the costs of damages. Strict rules and regulations would provide a solution that leaves everyone happy, including Doggy and Kitty.

Michelle Gamble is the editor of Rental Housing Magazine and author of Kitty Wisdom: A Guide to Adopting and Caring for Cats.

Housing Innovation & Technology Conference

Harness the power of technology to elevate your rental housing business. Be prepared for a day of expert presentations, panel discussions, and networking opportunities with the industry's top technology players!

Includes Lunch & Refreshments

8 th

Conference Sessions & Panelists

We have invited some of the top professionals in our industry to provide their expert insight on housing innovation & technology.

Safety & Surveillance Products to Protect Your Renters & Property

ADU Conversion, Compliance, Requirements & Versatility

Techniques/Trends

Win Prizes

All attendees of the EBRHA Next: Innovation & Technology Conference will have an opportunity to win the the following prizes:

Getting Started with ADUs

BY STEVE EDRINGTON

If you are a property owner in California, chances are you’ve entertained adding anaccessory dwelling unit (ADU) to your property. And for good reason. ADUs have become increasingly popular, not only as a means of adding property value but also as a way to help ease the housing crisis in California.

Sometimes known as guesthouses, granny flats, in-law units, or casitas, ADUs have helped major population centers like the San Francisco Bay Area, Los Angeles and San Diego build new construction where it had previously been extremely limited to do so.

The state of California controls the building code and usually adopts the International Building Code, adding California requirements to it every three years. Your local jurisdiction can make some more restrictive local changes. Mostly, your local building department inspector is enforcing the California Building Code.

Zoning is a different animal; your local jurisdiction controls how high a building can be, setbacks from other properties, parking, open space, design, and even in some places, what color you have to paint the building.

ADU laws are a state overlay to local zoning laws. If you follow the state ADU checklist, your local planning department has to say yes in 60 days. They can’t send you to the Planning Commission and hold up your project for years. The ADU laws are Anti-NIMBY (not in my backyard) laws meant to force local jurisdictions into providing more housing.

Adding to the recent success of ADUs, California passed Assembly Bill 1033 in October 2023, allowing ADUs to be sold separately from the primary dwellings they are associated with, provided that your local jurisdiction approves and writes an opt-in ordinance.

With the ADU world booming, now is a great time to join the action. Today, we’re going to take a deep dive into the world of ADUs and answer all your questions about how to get started with ADUs.

WHY INVEST IN AN ADU?

Whether you are a private homeowner or an investor with multiple properties in your portfolio, there are a number of benefits to building an ADU. Some key benefits of ADUs are:

INCREASED PROPERTY VALUE

Adding new livable space to your property will immediately boost your property value and make it more attractive to prospective buyers (should you decide to sell it later). Since ADUs can now be potentially sold independently from the primary residence, you could potentially sell a detached ADU later for a profit while still keeping your primary residence.

ADDING RENTAL INCOME STREAMS

Adding ADUs is the fastest legal way to increase the rent roll on a property. Especially converting unhabitable spaces such as garages and basements into additional cash flow or permitting unpermitted or illegal units. Building multiple ADUs on a property further increases the potential for new revenue that translates into increased net operating income and a higher-valued property.

PROVIDING A SPACE FOR FAMILY

Many owners choose to build ADUs so that elderly family members or adult children can have a worry-free place to stay. ADUs can also be used as personal office space, or simply a guest house for visitors, giving them great flexibility.

TYPES OF ADUS

ADUs come in a variety of shapes and sizes. ADUs fall into several categories, depending on the available space for building on a property.

CONVERSION ADUS

This form of ADU takes advantage of unused space within the main home on a property. Garage conversions are among the most common types because their structure can easily be converted into another living space.

NEW CONSTRUCTION ADUS

New construction ADUs come in two forms: attached and detached.

Attached ADUs are physically constructed as an extension of an existing primary structure. They may be built as an extension of the rear or side of a home or on top of a garage. An attached ADU may help with a larger unit in a small yard.

Detached ADUs are built out of free space in a backyard and are not physically attached to the primary structure. This option can be attractive, as it allows for more privacy for the occupants and greater design flexibility.

JUNIOR ADUS

Junior ADUs are only available in single-family homes and within the envelope of the primary dwelling. They can be as small as 150 square feet and can share a bathroom with the primary dwelling. An additional 150 square feet can be added to the structure for a separate entrance.

A junior ADU can be subdivided out of the habitable space of the home, with some jurisdictions limiting their size to 500 square feet. Other jurisdictions don’t impose such restrictions. The local municipal jurisdiction will make the owner sign an owner-occupancy restriction that we are recorded on the title. Junior ADUs with a shared bathroom are rare. A single-family home can have a regular ADU and a Junior ADU for two ADUs.

Adapt Dwellings, exterior shot of their Pacific ADU model

Adapt Dwellings, exterior shot of their Claremont ADU model

SINGLE-FAMILY LOTS VS. MULTI-FAMILY LOTS

On a state level, the options for building an ADU depend on the type of lot used: single-family or multifamily.

OPTIONS FOR SINGLE-FAMILY LOTS

Single-family lots have four options for adding an ADU, each with specific restrictions for building.

1. Building a New Attached Structure – New construction physically attached to the main home cannot exceed 50% of the primary dwelling if over 800 sq.ft.

2. Building a New Detached Structure – A maximum size of 1200 sq.ft. is allowed for construction that is not attached to the primary dwelling (unless a smaller size is specified by local ordinance).

3. Conversion of Unhabitable Existing Space – An existing space (such as a garage) can be converted into an ADU with no maximum square footage requirement. Expansion is permitted to allow for entry. Owners can add a JADU and a detached ADU on their property, but this depends on local ordinances.

4. Subdivide Habitable Space – Single-family homes can be subdivided. For example, a three-bedroom, two-bath home can be split into a two-bedroom, one-bath primary dwelling and a one-bedroom, one-bath ADU.

OPTIONS FOR MULTI-FAMILY LOTS

Regarding existing multi-family lots, properties that already have two or more units can convert a non-habitable space into an ADU, or they may add up to two detached ADUs. In some jurisdictions, a multifamily property may be allowed both options.

1. Conversion of a Non-habitable Space – State regulations allow at least one conversion ADU for properties with two or more existing units. Larger properties can have 1 conversion ADU for every 4 currently existing units.

2. Build up to two new detached ADUs – All properties with two or more units may build up to two new detached ADUs, with a maximum size of 1200 sq.ft. unless otherwise defined by local ordinance.

3. Conversion + New Construction – Some jurisdictions, such as Oakland, allow one conversion unit per four units and two new construction units. A 12-unit apartment building could potentially add three conversion units in the basement, and two new construction units in the rear, for 17 total units. Other jurisdictions, such as San Francisco, have a local ADU program that allows for more units than the state program, provided the owner agrees to have the units subject to the local rent control ordinance.

4. Multi-family Buildings – Existing units cannot be subdivided into multiple units.

OTHER CONSIDERATIONS FOR BUILDING AN ADU IN CALIFORNIA

There are a few other considerations to consider when building an ADU.

• Recent changes to state law have relaxed owner-occupancy requirements, meaning that those with single-family homes can build a regular ADU without requiring the owner to live in the primary residence.

• Parking requirements vary by local municipalities, but no dedicated parking is required if an ADU is located within half-a-mile walking distance of public transportation.

Adapt Dwellings, interior shot of their Bayview ADU model

“There’s a lot to like about adding an ADU to your property or portfolio.”

• There are no impact fees charged if an ADU is under 750 sq.ft.

• Homeowner associations cannot prohibit or restrict ADUs that meet standards of government code.

THE PROCESS OF BUILDING AN ADU

Here’s a quick look at the process:

FEASIBILITY STUDY

(1-2 WEEKS)

A feasibility study is where all the homework is done before starting the ADU process. The feasibility study will conduct the zoning research needed to determine what type of construction is permitted on your property. It will determine what form of ADU construction will best fit your specific property and look at building code requirements for converting non-habitable space. Feasibility studies typically also include a financial analysis that will help set a budget so that you can begin to seek funding for the project.

DESIGN AND PERMITTING (4-6 MONTHS)

In the design phase, a qualified architect is brought in to create a custom design for your project. In this phase, you will need to apply for the permits needed to begin construction, as well as finalize your funding. You’ll also select the materials and finishes for the project.

CONSTRUCTION PHASE (4 MONTHS TO 1 YEAR)

Once the permits and funding have been secured, work can begin. The site will be prepared for construction, and your new ADU will come to life piece by piece. This is the longest

and most expensive phase of the ADU process and will require several visits from city inspectors. Once construction is completed, utilities can be connected and a certificate of occupancy can be obtained.

FINANCING YOUR ADU

There are various ways to get funding for your project, from cash-out refinances, lines of credit, specific renovation loans for one to four properties, and commercial construction loans. If the rate of return for your ADU is higher than the bank’s debt cost, you want to leverage the bank’s money.

CONCLUSION

There’s a lot to like about adding an ADU to your property or portfolio. Not only can an ADU increase your property value and provide additional income, but it can also help solve a long-standing problem in the California housing market.

When you’re ready to enter the ADU market, you need an experienced partner to guide you. We possess the knowledge and experience at Adapt Dwellings to help you navigate the ADU process.

Contact Adapt Dwellings today at www.adaptdwellings. com or email us at info@adaptdwellings.com for a consultation. Let us show you how adding an ADU can unlock your property’s potential.

Steve Edrington is the president of Adapt Dwellings. He is a Certified Commercial Investment Member and a Certified Property Manager and was the EBRHA’s Executive Director from 2002 to 2010.

Adapt Dwellings, interior shot of their Bridgeview ADU model

Sunrise at UC Berkeley

LONG-OR SHORT-TERM RENTALS

The Best East Bay Area Cities to Invest in

BY MICHELLE GAMBLE

The East Bay Area offers a number of opportunities to invest in rental properties – be it to use those properties to rent for short- versus long-term rentals. Investments in these regions can set yourself up for financial success, so it’s important to consider (a) the type of investment property you want to purchase and (b) for what purposes (short- or long-term rentals). Property investors need to analyze each city, town or area on the basis of how they intend to rent the property. Requirements for short-term rentals vary from the needs of long-term rentals. These differences need to be the focus of your decision-making process.

SELECTING REGIONS FOR LONG-TERM RENTALS

How do you determine the best way to identify great locations for long-term rentals? Consider factors similar to any home buyer searching for that perfect house or residence. The following matters apply when determining what cities or towns make secure investments.

Neighborhood – is the property near UC Berkeley? How about Hayward State University or San Francisco State? Then consider that many renters will be students who come and go determined by the school year. As a result, your properties might be vacant between semesters. Is the area known for high crime rates (the city of Oakland, according to Neighborhood Scout suggests your chance of being a victim of violent crime in Oakland is one in 65 and property crime is one in 15), then your insurance rates will be higher. Many factors must be considered when determining neighbors that attract certain types of renters and how that impacts your bottom line.

Property Taxes – not all regions have the same tax rates, which isn’t always a bad thing. Some great Bay Area cities that attract long-term renters don’t always have expensive property tax rates. According to SmartAssets, “Residents of Alameda County, where the median home value is $825,300, pay an average effective property tax rate of 0.88% for a median tax bill of $7,287.” Meanwhile according to JVM lending, Contra Costa’s tax rate “ends up being around 1.3% of a home’s assessed value.” Do your homework per region of your choice to understand what taxes will cost.

Schools – when investing in single-family homes, consider the importance of local schools. No good schools in the area won’t necessarily impact your revenue – that is, until you go to sell your investment property. Families generally look at the regional schools as a big part of their decision to buy one property over another one.

Crime – unfortunately for the city of Oakland, it has continually been ranked as one of the worst crime areas in California. Even adjacent or nearby cities like Alameda get affected by these issues that can bleed over city lines. You have to consider your liabilities and weigh pros and cons of these investments.

Job Market – fortunately in the Bay Area a high percentage of workers are white collar, which generally has higher income. According to Point2Homes, “White-collar workers make up 84.22% of the working population in Alameda County, while blue-collar employees account for 15.78%.”

According to Investopedia, “It’s perceived that white-collar workers have a higher status because they may earn more and may be better educated.” These factors translate into more income, increased probability of those renters paying on time, and more stability when it comes to vacancies.

Amenities – what does the whole neighborhood have to offer? Amenities like nearby parks, easy access to mass transportation, town squares and centers with excellent restaurants and shopping, and more, attract renters who intend to make a life in the area. And once again, these same factors make it easier to sell those investments when you’re ready.

Vacancy Rates – you need to understand your liabilities. Vacancies, if not filled efficiently, cost money. So what are the regional vacancy rates? For example, Oakland’s vacancy rate in 2023 was 9.4% (Source: Reddit) while the average vacancy rate in Alameda County is 6.45% (Source: BestNeighborhood.org).

Average Rents – another important factor that reflects whether or not you’ll be able to command a certain figure for rent (and you want to ensure your rent covers the mortgage and returns a profit). For example, Walnut Creek’s average rent for 1 or 2 bedroom housing is $2,577 while Concord’s average rent for 1 or 2 bedroom housing is $2,281. As you can note, that’s a considerable difference in rent values.

Natural Disasters – California is infamous for earthquakes (particularly in the Bay Area), flooding, and fires. In recent years, insurance companies have started pulling out of insuring California properties, which made rates rise. Consider insurance rates for the areas you want to buy in.

Sunrise from Jack London Square

SELECTING REGIONS FOR SHORT-TERM RENTALS

“Deciding upon which cities and regions make great investments for short-term rental requires an entirely different set of criteria,” said Corrie Duffy, chef and food blogger who owns short-term rentals. “Short-term rental success is influenced by factors like proximity to cities, transportation options, and dining choices for urban areas, and natural beauty, outdoor activities, and family attractions for nature-inspired vacation spots. Effective marketing entails highlighting local culture and events for Airbnb, and scenic beauty and family amenities for VRBO. Adhering to local regulations, providing excellent service, and engaging guests with personalized recommendations are key for success.”

The following are some concerns you should consider when deciding upon which areas to provide short-term rentals.

Rate of Return on Investment (ROI) – you have to be especially mindful on this issue, as it can determine profitability. According to AirDNA, “Whether you’re evaluating cash on cash, annual rate of return, cap rate, or another calculation model, what a property can make needs to be higher than the cost to buy and maintain it if you want to be profitable. Conservative estimates say that 8-12% ROI is good (though shortterm vacation rentals can earn significantly more). Finding a market with a high return is easier if you’re not tied to one particular location.

Location – do your homework and make sure that your city or town of choice doesn’t ban or restrict short-term rentals. Some cities are even currently considering putting tight restrictions on short-term rentals (e.g., West Marin County has been debating restrictions). Oakland and San Francisco have some of the strictest short-term rental rules and regulations than other East Bay areas. If you don’t know the rules and buy anyway, you will find your plans either thwarted or completely abandoned.

“Investments in these regions can set yourself up for financial success...”

Supply of Available Renters – is the property going to rent to professionals like traveling nurses or construction workers that require a place to rent for perhaps weeks or months at a time? Is the property near any tourist areas or attractions? Vacancy rates for tourist areas within a matter of summer vacation and holidays can make up to 300% on the rent prices during high seasons, which can mitigate vacancies during low seasons. Properties rented for months at a time can become profitable if the vacancy rate remains low between renters, which can be accomplished with good property management marketing and organizational skills. Some excellent places to provide short-term rentals include Oakland near the airport where owners can capture some of the traveling market. Close to the Bay Area, oceanside towns like Half Moon Bay or Santa Cruz offer tourist opportunities.

Amenities – When it comes to short-term renters staying somewhere for months to live versus renters coming for vacations, different amenities can attract more renters. Longterm renters may want bigger spaces to set up their offices or want things like wi-fi to be built into the rent so they don’t have to set it up on their own. They may want a fully stocked kitchen with plenty of basic supplies. Fully furnished matters when travelers leave another residence behind to move temporarily to your property. Vacationers and holiday goers will be more interested in things like proximity to local attractions, extra things like pool toys if there is a community or private pool. They’ll look for amenities like in-house hot tubs and other fun things to relax and enjoy.

Avoid Areas With Professional Hosts – According to AirDNA, “We define professional hosts as individuals with more than 21 properties. A high percentage of professional hosts in an area means you’ll be competing against more seasoned, well-resourced property managers. In Colorado ski towns like Steamboat Springs and Telluride, more than 50% of hosts are professionals. Standards for guest communication, cleaning and operations are subsequently very high. Meanwhile, college towns like Madison, WI, State College, PA, and Eugene, OR, have fewer than 5% of professionally-run listings. Investing in these kinds of locations let you make a bigger splash.”

MIX IT UP FOR SUCCESS

If you want to diversify your portfolio, you can invest in both short- and long-term rental properties. Just keep in mind that short-term property management can be more time intensive in terms of marketing and keeping those units full. Long-term rentals may require more attention to maintenance and ongoing relationship building with renters. Either way, you can build a profitable business just by understanding the demographics and qualities of cities you wish to invest in rental properties. Michelle Gamble is the editor of Rental Housing Magazine.

Industry Partners

ACCESSORY

DWELLING UNITS

Adapt Dwellings, Inc.

510.749.4880

adaptdwellings.com

Perpetual Homes ADU

925.980.2351 perpetualhomesadu@gmail.com

SYMBIHOM LLC

510.930.8900 symbihom.com

ACCOUNTING & TAX

Hunter Tax Associates

925.362.1350 huntertaxassociates.com

ACCOUNTING SOFTWARE

Balanced Asset Solutions

805.284.1950

balancedassetsolutions.com

AFFILIATIONS

ALN Apartment Data

800.643.6416 alndata.com

ATTORNEYS

Barth Calderon LLP

714.704.4828 barthattorneys.com

Bornstein Law

415.409.7611

daniel@bornstein.law

Burnham Brown

510.444.6800 burnhambrown.com

California Strategic Advisors 916.447.7229 calstrategic.com

Law Office of John Gutierrez 510.647.0600 jgutierrezlaw.com

McKeown & Associates 510.710.1325 frank@mckeownlaw.com

Shepherd Law Group 510.531.0129 theshepherdlawgroup.com

The Law Offices of Alan J. Horwitz alanhorwitzlaw.com

Zacks, Freedman & Patterson, PC 415.956.8100 zfplaw.com

BRAND PROMOTION MATERIALS

Ohana Brand Promos 949.463.0605 ohanabrandpromos.com

BUILDING SUPPLIES & REMODELING BEHR® 415.416.0994 behr.com/consumer Home Depot 770.681.1675 homedepot.com

Pacific Home Decor 510.732.8668 pacifichomedecor.com

CLEANING & MAINTENANCE

Alameda Enterprises 510.504.0822 alamedaenterprises.com

CONSTRUCTION & RESTORATION

BluSky Restoration Contractors 415.678.7800 goblusky.com

West Coast Premier Construction, Inc 510.271.0950

wcpc-inc.com

DOORS & GATES

R & S Overhead Garage Door 510.755.2717

rsdoors.com

ENERGY CONSERVATION

Ecology Action 831.515.1341

dennis.lynch@ecoact.org

Google Fiber 415.770.2766 gfiber.com

GoPowerEV 415.298.8315 gopowerev.com

Macano Tech 337.387.2940

norman@macanotech.com

GOVERNMENT AGENCIES

City of Oakland Housing and Community Development 510.788.0462

oaklandca.gov/rap

Oakland Housing Authority 510.587.2110 oakha.org

Oakland Rent Adjustment Program (RAP) 510.238.6246

oaklandca.gov/boardscommissions/housing-residentialrent-and-relocation-board

HVAC

AireServ 925.217.7618

pleasanton.owner@aireserv.com

INSURANCE

Acrisure 925.788.5558 pdins.com

Commercial Coverage 415.436.9800

comcov.com

Foxen 419.560.7909 foxen.com

Continued from page 38

State Farm Insurance –

Kelly Lux

510.521.1222 kellylux.com

Toggle Insurance, a Farmers Company

818.679.4516 partners.gettoggle.com/signup

LAUNDRY EQUIPMENT

WASH Multifamily Laundry Systems, LLC

800.421.6897 wash.com

LEAD & MOLD

Alameda County Healthy Homes Department

510.567.8282 achhd.org

NON-PROFIT ORGANIZATIONS

Michelson Found Animals Foundation

503.407.6689

r.barker@foundanimals.org

PESTS & TERMITES

Marichals Pest Control

510.388.3644

marichalgilbert7@gmail.com

PROPERTY MANAGEMENT

Aventis Property Management 925.319.4600 aventismanagement.com

Bay Property Group 415.409.7611

Beacon Properties 510.428.1864 beaconprop.com

Lapham Company 510.594.7600

Openworld Properties 510.681.7771 openworldproperties.com

ReLISTO 415.237.1819 relisto.com

Seville Property Management 510.244.1289 sevillepropertymanagement.com

SKM Property Management 925.820.3921

PROPERTY MANAGEMENT SOFTWARE

Azibo

408.890.1094 azibo.com

Beekin 312.320.0110 beekin.co/solutions/ebby

DoorLoop

786.373.5842 doorloop.com/demo?utm_ source=ebrha Rent.com

510.206.9403 rent.com

Renter Insight 303.586.4420 renterinsight.com Snappt 310.383.5465 snappt.com

Story by J.P. Morgan 201.961.4022 story.jpmorgan.com Yardi Systems 800.866.1124 yardi.com

REAL ESTATE BROKERS & AGENTS

NAI Northern California –Grant Chappell

510.336.4721

nainnorcal.com

Owens Real Estate

510.225.5810 owensrealestate.com

Pacific Coast Real Estate pacificcoastre.com

The Pinza Group 510.725.4775 pinzagroup.com

The Prescott Company –David Weglarz 510.398.1027 theprescottcompany.com

Winkler Real Estate Group 510.528.2200

RENTAL SERVICES

Intellirent 415.849.4400 myintellirent.com

ROOFERS Fidelity Roof Company

510.547.6330 fidelityroof.com

General Roofing Company 510.536.3356

generalroof.com

SAFETY & SECURITY

ADT Multifamily 714.277.2586 adt.com/multifamilysolutions

SEISMIC ENGINEERING

Quake Brace Manufacturing Company 510.495.1575 quakebracing.com

WASTE & RECYCLING

Bay Area Bin Support 888.920.2467

bayareabinsupport.com

Thermostat Care 510.224.5086

thermostatcare.org

WEALTH MANAGEMENT

Bay Area Mortgage Group 925.719.0660

lendersteve@gmail.com

First Foundation Bank 510.250.8133 firstfoundationinc.com

Investment Property Capital 415.215.5590

mark@ipcap.net

King Hou Lam, Home Mortgage 510.517.3253 kinglamloans.com

City of Oakland Rent Adjustment Program

Rent Registration in Oakland

The City of Oakland is requiring property owners to register their rental units this year by July 1, 2024, and annually thereafter by March 1. For more information on Oakland’s new rent registration requirements, go to RAP’s website at www.oaklandca.gov/RAP and click on "Rent Registry” .

Questions? Contact RAP's Rent Registration staff at 510-237-3721, option 2, or rentregistry@oaklandca.gov.

Rent Increase Moratorium

Oakland's Emergency Moratorium on rent increases ends June 30, 2024. Banked and petition-based rent increases will resume July 1, 2024. Banked rent increases are capped at 7.5% through July 31, 2024.

CPI Announcement

Effective August 1, 2023, to July 31, 2024, the CPI is 2.5%

Questions about the Emergency Moratorium? Contemplating a rent increase? Contact a RAP Housing Counselor at 510-238-3721 or rap@oaklandca.gov.

Upcoming Workshops

Rent Registry Workshop: How to Register May 15, 2024, 5:30 pm- 7:00 pm

The Moratorium Workshop (Owner Focused) May 22, 2024, 5:30 pm- 7:00 pm

Rent Registry Workshop: How to Register May 29, 2024, 5:30 pm- 7:00 pm

Rent Registry Workshop: How to Register June 5, 2024, 5:30 pm- 7:00 pm

Rent Registry Workshop: How to Register June 12, 2024, 5:30 pm- 7:00 pm

Security Deposits Workshop July 10, 2024, 5:30 pm- 7:00 pm

To stay updated on the 2024 Workshop Calendar, please visit our website at www.oaklandca.gov/RAP & join the RAP listserv at tinyurl.com/rapsignup.

Last Look

SEVEN TIPS TO MAKE YOUR RENTALS MORE DESIRABLE

Even in an “owner’s market” where it’s not as challenging to rent your houses or units, you still want to attract high-quality renters. And if you want to attract reliable, responsible and respectable renters then you need to ensure those types of renters will want to apply for your housing opportunities. Attracting the opposite, low-end renters, can actually hurt your rental property business when these types of renters don’t pay on time or respect your properties and damage them instead.

So, property owners need to apply certain techniques to make their properties more attractive to the high-end, responsible renters. How do you accomplish that goal? Use the following tactics:

Excellent security – if you have properties in highcrime areas, the best way to attract renters, especially those people concerned about their safety, is to create secure premises, whether in how the overall complex is protected or the individual rental property that features an excellent security system. Single women, in particular, want to feel safe in their homes. External and internal safety measures

and technology (smart homes) make this demographic feel more secure. According to the Financial Samurai, women are more dependable by 60/40 percent to pay their rent; so, it stands out that women, who feel safer in their homes, are more likely to rent your properties.

Complaints – on the flipside, men tend to solve their own maintenance problems more than women do. It’s complex in these situations. Women may not have the knowledge to resolve quick-fixes like unclogging drains; however, men often take care of routine maintenance like these issues on their own. But, if you want to attract more women to your rentals, be prepared to be decisive with your maintenance programs. When you fail to resolve maintenance issues, word spreads that you’re a ‘slum lord,’ and that label degrades your brand/business.

Wear and tear – property owners have to oversee and respond to issues, especially after a renter vacates, to prepare their properties for the next renters. It is common knowledge that men don’t always tend to cleanliness of properties. Women historically, and especially if you recognize the differences between men and women’s spaces,

“When you fail to resolve maintenance issues, word spreads that you’re a “slum lord,” and that label degrades your brand/business.”

keep their domiciles cleaner. This assertion leads us back to the idea of why women renters may be more desirable. Competitive rents that make sense – if you consider strictly dollars versus long-term investment, than many property owners just want the highest return on investment. But, this mentality begs the question: what if your high rent leaves your property vacant for too long a period of time? You’re not making money when your property is vacant. Doesn’t it make more sense to keep your rent competitive to retain and attract desirable renters who pay on time? Do the math and you’ll quickly realize expensive, non-competitive rents leave longer vacancy rates, which cost owners a lot money to cover.

Be a good custodian of maintenance – you can’t get around property maintenance. Some issues, especially those problems surrounding heating and air conditioning, can cost you in terms of liability than just ensuring you’re fixing maintenance issues. No one wants to spend extra money on space heaters just because you failed to repair the heating system. Legally speaking, you cannot afford to fail in these areas lest your business be open for lawsuits. Reduce clutter, garbage and unsightful distractions – your property in a strange way reflects your own values. If you leave garbage disposal areas looking unappealing, then expect your renters or prospective renters to be turned off. No one wants to live in a community where litter, debris, and unkept landscapes are commonplace. Even in lowrent properties, renters want to feel a sense of pride about where they live; it’s your job to maintain your properties and ensure cleanliness.

Upgrade the essential spaces – kitchens and bathrooms can make or break your property’s desirability. People value upgrades the most in these spaces. Don’t remodel common areas like living rooms or bedrooms, as those spaces can be easily decorated by the renters; but, kitchens and bathrooms cannot be easily remodeled and without these upgrades, older spaces make a place look dated and unattractive. So, if you’re going to spend investment dollars, apply those funds to these areas to make your property more competitive.

EAST

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

BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing rental owners and managers of apartment buildings and communities, small multi-unit properties (2-4 homes), condominiums, and single family homes. EBRHA members range in size from small investors with just one property to large property management companies that own or manage hundreds of units. Our membership consists of more than 1,500 rental housing owners, property managers, attorneys and other service contractors. Altogether, EBRHA represents over 43,000 rental units and serves over 25 cities throughout Alameda and Contra Costa counties.

EDUCATION, NETWORKING, & EVENTS:

• Monthly Mixers to meet other housing providers in our community

• Annual in-person events to learn about industry resources and trends

• Open Q+A sessions with board members, industry experts, and other seasoned providers

• Weekly Webinars featuring new services, products, laws, forms, and more!

INDUSTRY UPDATES:

• Subscription to bi-monthly Rental Housing magazine, monthly Rentrospect newsletter, and weekly digest.

• Newsflash, Red Alerts, and more virtual message updates from EBRHA

COMPLIANCE

• EBRHA RPM Certification Courses included with membership

• 1:1 support to help you navigate current laws

• The latest Rental Forms with optional 1:1 consultations (available 24/7 through our digital library)

• Reliable renter screening services through Intellirent

ADVOCACY

• Committees organized around our efforts and mission

• Legal & Political Action Funds

• Rallies, designated lobbyist efforts, and active bill tracking

WHY SHOULD YOU RENEW YOUR EBRHA MEMBERSHIP? ASK YOURSELF:

Has managing rental property expectations/ relationships been a challenge in recent months? Are there unit vacancies you need to fill right now?

Is it difficult to constantly navigate all the housing legislative changes?

Are you worried about the protection of your property rights?

Do you have at-risk renters who have been paying rent reliably this year? Have any of your renters not paid rent OR are they paying reduced rent?

Are you unsure who’s defending your business interests?

8. Why not join EBRHA?

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

If you answered “YES” to any of the questions above, then EBRHA is a partner that you can’t afford to be without. Membership provides endless benefits!

DID YOU KNOW? EBRHA SERVES ALAMEDA AND CONTRA COSTA COUNTIES

California: Alameda County

Founded: March 25, 1853

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

California: Contra Costa County

Founded: February 18, 1850

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