INSPIRE

Inspire DESIGN TRENDS

Dressed to Impress

Furbish brings the “wow” factor—and prospective renters—to a new complex of luxury townhomes.

Do you want your vacant rental property to stand out in a sea of competitors? If so, consider having it professionally staged and photographed. According to a 2020 Real Estate Staging Association survey, staged for-sale homes spent an average of 23 fewer days on the market, and 85% sold for 5%-23% over listing price. Anecdotally, those trends are similar among staged rental properties. Think about it: If you were looking for an apartment online (where most prospective renters start these days), would you be more likely to click on a shot of an empty room or one that looks like it was pulled from the pages of Dwell?

Furbish is a pro at getting properties camera-ready. Founded in 2012 by real estate developer Kathy Kuhner, the Bay Area-based company has staged more than 700 properties and grown to a full-time team of nine employees. Recently, Furbish designers Samantha Emily Weinberg and Danielle Schappell staged two rental units in the newly built West Oak Modern luxury townhome complex in Oakland (westoakmodern.com), including this two-bedroom artfully shot by Open Homes Photography Inc.

Weinberg shares their process: “With staging, it’s important to think about the person/s who will be moving in. Is it a family-oriented neighborhood or a hip urban space? This always helps us determine how to style the space, and build a narrative with the objects and art I’m selecting,” she explains. For this unit, she says, “we wanted to create a space that felt luxurious and drew inspiration from our favorite travels. The first bedroom we styled a bit more bohemian with a framed print of Joshua Tree and a collection of butterflies over the bed. The second bedroom was more about the texture of the space and how everything played together with the Hockney-inspired painting [hidden from view here]. While each room has a different inspiration, they are very similar, and you can almost imagine the two friends or the new couple who are interested in moving in had styled the space themselves.”

Of course, good staging does much more than catch the eye. “Empty homes appear smaller than furnished homes— obviously we want each property to feel as large as possible! Most people can’t walk into a room and immediately visualize how their furniture will fit, so staging gives them a frame of reference,” Weinberg explains. “It can also draw attention away from any undesirable features like awkward layouts or small rooms, and show renters how to utilize these spaces.” Conversely, in this living room, the staging strategically draws attention to appealing design elements, including a bold tiled wall and 10-foot ceilings.

This kind of expertise doesn’t come cheap. Furbish’s general manager, Melanie Leinweber, quotes prices starting at $3,000 for a one-bedroom apartment/condo and $5,000 and up for three-bedroom homes, depending on the square footage and type of property. Property owners/managers have to take many factors into consideration when determining whether that investment will pay off, including how competitive the local market is and whether the staging will help them rent out just one unit or many.

For West Oak Modern, the impact was almost immediate. Two units were rented within the first three weeks, which is quick in this environment, according to the general partner behind the project. Three weeks later there were still vacancies, but “the staging certainly helped us bring in people to view the units and begin renting,” he confirmed. Considering how inviting Furbish made these spaces look, we’re betting the remaining units won’t stay empty long.

FURBISH’S HIGH-IMPACT, LOW-COST DIY STAGING TIPS.

We can’t stress enough the importance of plants! They really create [a feeling] that the unit can be home. (Check out Target’s faux options.) Plants not your thing? Make the space cozy with a throw blanket or some trinkets you collected on vacation last year. Just be sure not to present personal photos. You want the space to feel like their home, not yours. 510.918.8243, furbishgroup@gmail.com, furbishgroup.com

move-in READY

Meet five Bay Area companies bringing cool prefab ADUs to backyards near you.

Accessory dwelling units (ADUs, aka backyard homes or granny flats) are all the buzz these days, and for good reason. ADUs can provide a source of rental income, increase property value, enable extended families to be near one another and expand affordable, accessible housing to people of all ages. Moreover, because they’re a relatively inexpensive housing option that requires no additional land or new major infrastructure, they’re frequently touted as a way to address California’s shortage of affordable housing. (For more on that topic, see our interview with Build It Green on p. 14.) Consequently, state and local agencies are making it increasingly easy to add an ADU—even two—to your property.

If you’re considering taking the plunge but have neither the time, budget nor desire to invest in a custom, stick-built structure, prefabricated may be the way to go. We’ve rounded up five local companies that aim to deliver well-built, competitively priced, attractive prefab ADUs quickly and seamlessly. Find out who they are, what they offer and, in their own words, why they think they deserve your business.

ABODU

WHO Abodu, founded in 2018 and based in Redwood City. WHERE Available throughout the Bay Area. HOW MANY Three models (studio, one- and two-bedroom) with multiple internal and external upgrade options, including furniture and solar panels. HOW MUCH Starting at $189,000 for the 340 sq. ft. Abodu Studio, which includes a site evaluation; a permitting consultation with an on-site contractor; the completed Abodu (including finishes and appliances); delivery from the Abodu factory to your site, including craning; and anticipated required site work from your contractor (Abodu can connect you with qualified, licensed contractors for this portion). WHY “We worked with world-class architects to develop designs that were built to be lived in and could be constructed to the highest quality. We build our ADUs using the highest standards of prefab construction, which allows us to complete projects fast and on a known budget. And we worked with local cities to remove the red tape from the process so that we could ultimately deliver projects in 12 weeks or less. All the while providing our ‘Abodu Concierge Service’ to homeowners who never have to wonder what they’re going to get.”—John Geary, co-founder (with Eric McInerney) and CEO at Abodu (source: abodu.com/blog) CONTACT 650.398.0158, abodu.com. A Redwood City showroom is available by appointment only.

TIP 1: The meaning of “all-in” varies from company to company. Make sure you’re comparing apples to apples when you assess your options.

ADORE HOMES

WHO ADORE Homes, founded in 2019 and based in San Jose, with factories across the West Coast. WHERE Serves all Bay Area counties. Four units are in the permitting process, two of them in Oakland. HOW MANY More than 40 models, plus nearly limitless customization. HOW MUCH $174,000 for a 438 sq. ft. unit to $279,000 for a 1,200 sq. ft. unit, “all-in.” WHY “First of all, it’s the level of service and speed of delivery coupled with the customization possibilities. Then, it’s the number of homes to choose from. We have more than 40. And Tom and I truly believe that what we are doing is all about service. ... [Plus,] from a unit standpoint, our pricing is very competitive, and our models include many upgraded features as the standard.” —Ken Balteriski, co-founder, ADORE Homes

“What we bring to the table and to the marketplace is certainty and transparency. We do our thorough diligence at the outset, not at the backend of the project. That’s how our price will never change once agreed with the client.” —Tom Ginsberg, co-founder, ADORE Homes. CONTACT 650.395.9882, adore-homes.com. In Sunnyvale, the company’s solar-powered outdoor living showroom/ “ADORE Homes outdoor village,” featuring four model ADU units and other backyard home features, is set to open during March.

TIP 2: A feasibility study can help you determine what kind of ADU is best for your property and understand your potential return on investment.

ASK THE EXPERT

Erik Preston, Habitat ADU

1. What factors should property owners take into consideration when deciding whether to buy an ADU for rental purposes? • Whether there will be any surprises up front onsite/ design premiums; • Your financing and how much leverage you can get in your situation; • How your renter will access the unit, and how you will navigate sharing your backyard; • Whether it would be more cost-effective to measure utilities separately or to get a new service; • Your city’s rent control laws and how they pertain to new ADU construction; • Whether you plan to resell your property immediately.

ADU valuations are volatile until the market has seasoned. Buy, hold, lease. 2. What are the advantages of installing a prefab ADU versus a Junior ADU (JADU) or conversion ADU for rental purposes? JADUs [which are within the primary dwelling and can share a shower/bathroom] are not really in play for rental property owners, actually. Owner occupancy of the primary residence is required in order to be able to rent out a JADU, so that won’t scale at all. Compared to a conversion ADU, with prefab, you get much lower relative costs for detached structures. Depending on your property, you also get more privacy and separation, half the build time and a quarter of the construction noise and inconvenience.

HABITAT ADU

WHO Habitat ADU, founded in 2019 and based in San Francisco and Burbank. In partnership with a major national manufacturer, Habitat ADU’s proprietary designs are built in several factories in California. WHERE All of the greater Bay Area, plus projects in Sacramento, L.A. and Orange counties. Habitat ADU has additional projects in Santa Barbara and San Diego, though it’s not formally “live” there. HOW MANY Nine design models, with nine more coming out soon. Its 750 sq. ft., two-bedroom model is its most popular. HOW MUCH $179,000-$269,000 “all-in,” which includes permits, units, site work, foundations, utilities, finishes and fixtures, warranty, etc. “We offer a max price guarantee, which is unheard of, so that customers can get a refund after permits if the true price came in higher than our proposal.” WHY “We will not lose on price for a high-quality, comparably sized unit, period. We also offer a super convenient and streamlined turnkey service, meaning we are actually the GC of record on our projects, not handing it off to a third party contractor with no accountability. We also build to HUD Code for cost efficiencies and permitting streamlining.” —Erik Preston, Head of Business Development, Habitat ADU CONTACT 415.968.1625, habitatadu.com

SONDERPODS

WHO SonderPods, founded in May 2018 (formal operations began in March 2020), with a factory in Riverside, California. WHERE Serves all of California. In the East Bay, a unit has been installed in Pleasanton, and one is in the permit process for a project in Alamo. HOW MANY Three, plus and the i Series, which is available now in a limited release, and an LX model launching around June. Multiple interior and exterior finish options. HOW MUCH $115,000 for the 434 sq. ft., one-bedroom, onebath SP430 model (est. $156,500-$167,000 “all-in” price to complete) to 741 sq. ft, two-bedroom, one-bath SP750 (est. $199,000-$230,000 to complete). “All-in” includes everything, such as solar, decking, installation, permits, etc. WHY “We build to the same code as custom stick-built houses, we don’t do manufactured/mobile homes. So what is different about us is that we build to the highest code, including T24 net-zero energy requirements, but do it much faster and are generally 20%-40% better value for money than a general contractor. Most of our competitors in the ADU space build to the HUD manufactured home code, which is not as onerous as the T24 California standards. It might sound like a nuance, but it’s a very important thing for people to consider when it comes to long-term and resale value. We are truly full-service and handle every aspect of your project to make everything as easy as possible for you.” —Ed Stevenson, founder, SonderPods CONTACT 415.223.8680, sonderpods.com. Factory tours in Riverside are available.

ADU LEGISLATIVE UPDATES

by EBRHA Board Member Joshua Polston

With the passage of numerous bills in the California State Legislature during the 2019-2020 session, multifamily properties may now construct ADUs without any design review or local requirements that are more stringent than the state’s.

Highlights of these provisions include: • Two detached ADUs by right, regardless of zoning, lot coverage or other limitations • No requirement to create new or replacement parking (if ADU is created in former parking areas) • Exemption from a number of development and utility impact fees

EBRHA has advocated for additional cleanup and enhancements to the ADU legislation. Unfortunately, a bill to exempt ADUs from Title 24 (energy) requirements, including solar roof installation, died during the past legislative session. A new bill in this session promoted by CalRHA aims to make three significant changes. This bill has been adopted by Assemblymember Rudy Salas and includes the following provisions: 1. Increases the height of ADUs to 20’ by right (to allow for two-story development) 2. Defines a detached ADU as only sharing one wall with the main structure and allowing two ADUs under one roof 3. Allows current units to add bedrooms by right (with only ministerial approval)

Polston is a small rental property provider and assists with multifamily property ADU development.

WHO Veev, founded in 2008 and based in San Mateo. Components and walls (with all mechanical, electrical and plumbing built in) are made at its Union City fabrication facility, then assembled at the construction site. WHERE In the Bay Area and the surrounding area. East Bay in-development projects include homes in eight cities in Contra Costa and Alameda counties. HOW MANY One 568 sq. ft., one-bedroom, one-bath ADU. Customizations are not currently offered. HOW MUCH Veev’s full-service, “all-in” ADU list price is $249,000, which includes site compatibility assessment, permitting, land/topography survey, geotechnical report, site preparation, interconnection/trenching, foundation, crane, panelized system build, on-site assembly, solar PV installation, utility connections, furniture, solar installation, landscaping with irrigation and all inspections. WHY “Veev’s ADUs are thoughtfully designed and efficiently manufactured with superior quality. The design and engineering teams have developed an algorithm and proprietary design software that allows them to automate 70% of building design, and any waste created during the build process is 99% reusable or recyclable. Walls are manufactured with a fully closed and cladded panel system, allowing them to be assembled on-site at record speed. Once constructed, Veev ADUs become energy-positive with rooftop solar panels— they produce more power than their inhabitants will ever use. This even allows owners to repurpose their energy surplus for their home, increasing their energy savings. With no detail overlooked, the team ensures a modern, timeless design, outfitting ADUs with the latest smart tech that can be monitored and adjusted via Veev’s smartphone app.” —Kelly Hampton, V.P., Marketing & Sustainability, Veev CONTACT 866.833.8238, adu.veev.com. A backyard model in Palo Alto is open for tours; a unit in Veev’s Union City fabrication facility and a backyard model in San Jose will be available for tours within the next few months.

TIP 3: The California Department of Housing and Community Development’s ADU page (hcd. ca.gov/policy-research/ accessorydwellingunits. shtml) provides a wealth of information and materials, including details about new ADU legislation for 2021 and potential state grants, as well as a handbook that answers frequently asked MARCH+APRIL 2021questions. / EBRHA.COM 27

SEEING GREEN

Investing in environmentally friendly upgrades reaps rewards for the planet as well as your wallet.

The need to protect and restore our natural resources is indisputable. Given that the residential sector accounts for about 21% of total U.S. energy consumption and the average American family uses more than 300 gallons of water per day at home, the potential for the rental housing industry to play a leading role in that effort is significant. Fortunately, being green isn’t just good for the Earth; it can also be good for a property owner’s bottom line.

A smart first step toward realizing the benefits of going green is to connect with the Bay Area Regional Energy Network (BayREN; bayren.org), a group of local governments that deliver targeted, integrated and regional-scale climate solutions focused on energy and water efficiency. Represented by the Department of Conservation and Development in Contra Costa County and StopWaste (stopwaste.org) in Alameda County, BayREN offers programs that incentivize and streamline the process of upgrading inefficient systems for rental property owners.

BayREN’s nationally recognized Bay Area Multifamily Building Enhancements program, or BAMBE, is open to five-plus-unit multifamily properties in any of the Bay Area’s nine counties, with small properties (under 100 units) and deed-restricted or naturally occurring affordable housing receiving priority. Offering free, no-strings-attached consultations and $750 per unit in rebates, the program is designed to save 15% or more of a building’s energy and water usage through upgrades to water heating systems (which account for 43% of the average multifamily building’s energy use), heating and cooling systems, windows, appliances and the like. Last year, multifamily property owners began receiving additional incentives to switch from gas-fueled appliances to cleaner, highly efficient electric alternatives. Owners can hire their own contractor, the property manager can oversee the entire process, and there’s no need for resident sign-off.

Case studies conducted by BayREN illustrate the economic benefits of enrolling. For example, after an energy and water usage analysis and site visit from a BAMBE consultant, the 18,410-square-foot, 46-unit Theater Apartments in Oakland’s Laurel District installed insulation in the attic and floors and new, energy efficient vinyl windows. New LED lighting brightened interior and exterior common areas, and within the units, energy-efficient refrigerators replaced older models. In addition to improving residents’ comfort and safety, the upgrades resulted in $34,500 in rebates and a 19% overall energy savings. Moreover, since the century-old building’s utility costs are included in the rents, the owner’s ongoing costs were significantly reduced.

BayREN offers a scaled-down program to benefit owners of one- to four-unit single-family detached homes built in 2016 or earlier: Home+. This program offers up to $5,000 per unit in rebates for “a la carte” energy-saving measures. (Note: Participants must use a Home+ Participating Contractor, except for electrification appliance measures, and need approval from every resident.) BayREN also works with renters directly to help them save energy, water and money through a variety of free resources.

These programs don’t cover clean energy technologies such as solar and battery backup systems, which confer the added benefits of providing power in the event of power outages and rolling blackouts and can actually allow

homeowners to make a profit by selling energy back to the grid. However, BayREN works in tandem with local clean electricity providers MCE in Contra Costa County and EBCE in Alameda County, which have programs that do. Visit ebce.org to learn more about EBCE’s Resilient Home program, which provides quotes and pre-negotiated pricing in partnership with Sunrun, and mcecleanenergy.org for a host of information about solar installation, including rebates for single- and multifamily property owners.

Admittedly, going the green route can be more expensive at the outset than simply meeting the minimum efficiency requirements. However, rebates like those offered by BayREN offset higher up-front costs, and local and national green-financing opportunities are available, both via local agencies and government-sponsored Freddie Mac and Fannie Mae. Moreover, the benefits accrue. In addition to increasing their NOI (net operating income) through rebates and reduced utility bills for central systems and common areas, property owners who invest in efficiency retrofits can anticipate less equipment downtime, better indoor air quality, fewer resident complaints and improved resident retention. Touting your efficiency in marketing materials may reduce vacancy rates, to boot: According to a RENTCafé report, 69% of renters surveyed were interested in living in an energy-efficient or green building. And down the road, owners who take measures to improve efficiency now will be prepared for increasing energy and water costs and mandatory efficiency requirements associated with California’s ambitious carbon-free-by-2045 clean energy goals.

REGENERATIVE LANDSCAPING

When we think of green upgrades, it’s easy to forget about the literal green on our properties: our landscaping. In fact, according to the California Department of Water Resources, about half of urban water is used for landscape irrigation in California despite DWR’s Water Efficient Landscape

Ordinance (MWELO), which sets standards for new development and retrofitted landscape projects with the intent to reduce water usage.

Lawns are particularly pernicious. As landscape architect Sarah Sutton writes in her award-winning book The New American Backyard: Kiss Your Grass Goodbye (kissyourgrassgoodbye.com), using traditional maintenance practices, turf not only wastes water, but also depletes the soil of microorganisms and nutrients, acts as a conduit of toxic pollutants into our air and waterways, generates excessive waste and requires noisy and polluting maintenance (along with a host of other nasty deeds).

So what’s the alternative? According to Sutton, it’s no longer enough to create a sustainable landscape—it has to be regenerative. “We’ve past the tipping point on sustaining our planet, and we must aggressively adopt regenerative practices in our landscapes and our life choices to curb the negative impacts of ongoing climate change,” she says.

The goal is for landscapes to foster soil health, sequester carbon, conserve water and protect habitat and resources while reducing waste and preventing pollution in our communities and watersheds: eight principles that underlie the practices of the nonprofit organization ReScape (rescapeca.org). ReScape (for which Sutton is a consultant) is a great resource for housing providers ready to kick their turf habit. Among other services, the organization provides training for designers and maintenance contractors in regenerative landscaping practices and maintains a directory of local professionals who have completed the program.

What does a regenerative landscape look like? “Healthy, living soil is literally the foundation,” Sutton says. Appropriately sized native plants that thrive without artificial fertilizers are fundamental, too. “If plants are grown where they won’t get larger than the space available, then you don’t need people out there hedging and creating green waste. The maintenance becomes very straightforward,” she adds. “Do it right, and the landscapes practically take care of themselves.” A healthy landscape will also naturally attract and support local wildlife, including birds, butterflies and bees.

The financial upside of regenerative landscaping also can be substantial. While rolling out sod may be cheaper initially, the cumulative long-term cost of a lawn can be much higher per acre than a naturalized landscape, given the water use and frequent labor required for repeated mowing and edging. One multifamily complex reported an annual savings in maintenance costs of nearly $50,000 after replacing 80% of a large decorative landscape water feature and lawn areas with an attractive cobbled dry stream bed and a colorful, water-conserving landscape. Water savings for simply replacing a 5,000-square-foot lawn with a drought-tolerant landscape can be as much as 190,000 gallons per year.

Understandably, rental property owners facing COVID-19 related financial challenges may feel apprehensive about investing in capital improvement projects right now, but in light of the global climate crisis, the ramifications of doing nothing are also daunting. With support from programs like those described above, owners needn’t choose between their principles and their profits: going green results in seeing green. That’s what you call a win-win.

GREEN SCORECARDS

Build It Green’s GreenPoint Rated program trains and educates building professionals and offers an easy-tofollow system to incorporate best practices into new construction or remodels. To date, the program has certified over 80,000 GreenPoint Rated homes (builditgreen.org). ReScape offers a similar program, ReScape Rated, for landscapes. A notable benefit: Studies show that green ratings translate to higher rents and occupancy rates.