SEPTEMBER 2021 RHA UPDATE NEWSLETTER

September 2021

A monthly newsletter published by the Rental Housing Alliance Oregon

rha est. 1927

www.rhaoregon.org

In this issue:

RHA Calendar of Events............................................page 2 Executive Directors Message.......................................page 3 Dear Maintenance Men.......page 4 How to Reduce Taxable Income & Increase Depreciation with 1031 DST Replacement Property.......................................page 5 RHA By-Law Changes...........page 8 TVFR-Kitchen Fire Safety....back cover

Back to schoolSee page 2 for RHA’s classes

Rental Housing Alliance Events & Classes

Join us for RHA Oregon’s Membership Meeting

• • • •

Where: via Zoom When: Wednesday September 15, 2021 at 6pm Price: FREE Speaker is Taylor Smiley Wolfe, Director of Policy and Planning for Home Forward

• What is the Landlord Guarantee Program? The Landlord Guarantee Program (LGP) reimburses landlords for eligible nonpayment costs incurred during the “safe harbor” period required by Senate Bill 278. You may be eligible for funds if you have a tenant with back-owed rent and/or non-payment charges and you did not issue a termination notice or initiate or continue an action for possession as required by the “safe harbor” tenant protections (Senate Bill 278).

• "We understand tenants aren’t the only ones who have been hit hard due to the pandemic crisis. If you are a landlord and you have tenants with back owed rent, learn how the Landlord Guarantee Program can help you."

LOCATION

TIME

DATE

EVENT

09/06

Labor Day

09/09

Board Meeting

Zoom

4:00pm

09/18

Mentor Round Table

Zoom

11:00am

10/13

Board Meeting

Zoom

4:00pm

Mentor Round Table

Zoom

10/28

INFORMATION

Office will be Closed

6:00pm

DATE

CLASSES

LOCATION

TIME

INSTRUCTORS

09/07

Improve Your Chances of Collecting Covid-Era Rent

Joim.me

7:00pm

Robert Collier with LandlordReference.com

09/09 What You Need to Know About SB 282, SB 278, and SB 291

RHA Annex

6:30pm

Ron Garcia Executive Director of RHA Oregon

09/14

Online Tenant Screening Class

WebEX

11:00am Marcia Gohman w/National Tenant Network

09/15

Improve Your Chances of Collecting Covid-Era Rent

WebEX

7:00pm

09/16

Online Tenant Screening Class

WebEX

11:00am Marcia Gohman w/National Tenant Network

09/16

A Guide to Oregon Rental Ordinances Beyond COVID-19

Zoom

11:30am

Kurt Lane with Chroma Property Management

09/21

Important Rental Owners, the Biden Tax Plan and 1031 Exchanges

RHA Annex

6:30pm

Richard Gann, 1031 Capital Solutions

09/23

Improve Your Chances of Collecting Covid-Era Rent

Joim.me

7:00pm

Robert Collier with LandlordReference.com

09/28

Online Tenant Screening Class

WebEX

7:00pm

Amber Clark w/The Garcia Group

09/30

Online Tenant Screening Class

WebEX

11:00am Marcia Gohman w/National Tenant Network

10/05

Improve Your Chances of Collecting Covid-Era Rent

Join.me

7:00pm

10/05

Online Tenant Screening Class

WebEx

11:00am Marcia Gohman w/National Tenant Network

10/07

Online Tenant Screening Class

WebEx

7:00pm

Marcia Gohman w/National Tenant Network

10/13

Improve Your Chances of Collecting Covid-Era Rent

Joim.me

7:00pm

Robert Collier with LandlordReference.com

10/21

Improve Your Chances of Collecting Covid-Era Rent

Joim.me

7:00pm

Robert Collier with LandlordReference.com

10/21

Ending the Tenancy The Right Way: No Cause and For Cause – What’s the Difference

Zoom

11:30am

Dan Hayes with Real Property Management Solutions

10/26

Online Tenant Screening Class

WebEx

7:00pm

Marcia Gohman w/National Tenant Network

10/28

Online Tenant Screening Class

WebEx

11:00am Marcia Gohman w/National Tenant Network

10/29

Improve Your Chances of Collecting Covid-Era Rent

Joim.me

7:00pm

Robert Collier with LandlordReference.com

Robert Collier with LandlordReference.com

Robert Collier with LandlordReference.com

For additional class/event information visit: https://rhaoregon.org/education 2

RENTAL ALLIANCE UPDATE September 2021

www.rhaoregon.org

From the desk of the Executive Director Ron Garcia, RHA Oregon Executive Director

During old summer road trips my mom would try to stop us kids from complaining. She’d say “Time flies when you’re having fun”. We never really bought it though. Just like now, for instance.

What if you’re a landlord and waiting for a check from the government for your rental assistance?

Not so much fun… and in fact, time seems to be slowly dragging on and on and on for both landlords and tenants these days. And we are all complaining!

There is currently a lot of press about all the various government rent-relief assistance programs that are available to both rental providers and tenants who have been impacted by the eviction moratorium. There’s also been as much press about the delays that the state and county agencies are experiencing in actually paying out rental assistance dollars.

In the midst of all this talk, there is also a growing crescendo of worry about the pending wave of evictions due to nonpayment of rent caused by the continued regulations allowing rent to go unpaid.

Tenants have a right to be concerned. They are most often portrayed as the victims of circumstance as their fate lies in the hands of landlords who are pining for dollars. But while everyone is waiting for the funds to arrive, regulations continue to create increased obstacles that slow down the efforts of landlords to demand payment for delinquent rent.

Many landlords are struggling and leaving the business by selling their properties. Other landlords are struggling to hold on - filing for forbearance or refinancing their property with higher debt to unlock the cash just to stay afloat.

Tensions are high.

The Oregon House of Representatives passed HB 4401 last December extending the eviction moratorium until June 2021, and they created the Landlord Compensation Fund. Astoundingly, nine months later – even after the extended deadlines - the money is still not fully paid to landlords; only 48% of the $150 million has made it out the door as of the end of August.

The Oregon Senate passed HB 282 in March extending the repayment of delinquent rent to February 2022 to allow time for the Emergency Rental Assistance Program to deliver on it’s promises of paying $280 million of tenants’ back-owed rent. As of Aug 26th, of over 40,000 applications submitted, only 3,200 were paid.

In June 2021 the Oregon Senate also passed HB 278 creating the “Safe Harbor” plan to give tenants a ban on evictions for 60 days (90 in Multnomah County), through February 28, 2022. This bill invented a third source of rent assistance called the Landlord Guarantee Fund, which just opened up this week. It allows landlords to be reimbursed for up to 60 days of rent to recoup their losses for delayed court proceedings. Because the other two rent assistance plans have been slow on delivery, there is an increased scrutiny on this one, and its administrators are rightfully apprehensive that it may not go as smooth as they anticipated.

With those same concerns, the Oregon Supreme Court has also become a contributor to this slowing down process.

Convinced that eviction courts will see a large uptick in activity, Chief Justice Waters initiated an executive order in August which delays the first appearance for an eviction due to non-payment of rent, from 10 days to 20-28 days, thus allowing tenants more time to apply and/or obtain rental assistance while forcing landlords to wait longer - without being paid.

While the common narrative of the current rental housing crisis sheds the bulk of sympathy on the tenants, the financial destruction caused by the eviction moratorium has been devastating to landlords. Consider that while restaurants have been forced to close due to government policies reacting to the pandemic, they have not also been forced to continue to feed people. Yet rental property providers are required by law to continue to house non-paying residents even while they are also forced to maintain the property without income, thus subsidizing the households at (continued on page 10) www.rhaoregon.org

RENTAL ALLIANCE UPDATE September 2021

3

Dear Maintenance Men

by Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: Our rental has a non-standard size sliding glass door that we’d like to replace. We would like to get a whole new door and track. How easy is that? We have siding on the house.

What should we expect in the way of wall damage or ability to get a larger standard door frame into the space? What questions do we need to ask the installer?

KWT Dear KWT: Replacing a sliding glass door and frame as a DIY job is not for the faint of heart! It is not really that difficult as it is unwieldy and the doors are large and heavy. You state the door is a non-standard size; this might be a good time to standardize your glass door. Start by removing the door, bottom track and frame. This will expose the rough opening in your door way. Measure the rough opening for a standard sliding door of your choice. It is sometimes easier to enlarge the rough opening to accommodate the new door. The reason for a larger opening is because you will not need to find or install new outside siding or stucco nor patch the inside drywall. “Rough opening” refers to the dimensions inside the trimmer studs and between the floor and the bottom header. This opening will be slightly larger than the patio doorframe. The extra space allows a little fudge room for squaring the frame with shims. If you decide to have a contractor install the new sliding door, have the installer explain in detail what the job will entail, what the finish will look like and how long the job will take. Make sure they are set up for dust control as a job like this can cause a considerable amount of dust during the construction if the opening is enlarged.

Dear Maintenance Men: My apartment building was built in the 1950 and has no insulation in the walls or ceiling. What do you recommend as the most cost effective method of insulating the building?

Sam Dear Sam: It is very common for older buildings to have no insulation whatsoever. As for where the best bang for your buck is concerned; ceiling insulation is the winner. The insulation ratio is 70% ceiling, 30% walls and 10% floors. This is the typical ration for helping decide where to put the insulations. For single story or top story units, ceiling insulation is very easy and inexpensive to install. Wall insulation is much harder and involves a more invasive approach. To illustrate the differences; ceiling insulation 4

RENTAL ALLIANCE UPDATE September 2021

can be either batt insulation or loose fill insulation. The batt method is a bit more labor intensive and is less effective than loose fill. If you decide to use loose fill, be careful not to block ventilation holes or cover any through the ceiling light fixtures. Insulating existing walls typically involves drilling holes just below any fire blocks and blowing loose fill insulation into the wall cavity. Repairs to walls will be needed after the work is completed. The best of all worlds would be to do both wall and attic insulation. But if you must choose one over the other, we recommend doing the attic first as we have found this to be the most effective at cutting heating and cooling costs. You may want to check with your city or utility supplier; they often have low cost energy saving programs, or rebates. walls will be needed after the work is completed.

The best of all worlds would be to do both wall and attic insulation. But if you must choose one over the other, we recommend doing the attic first as we have found this to be the most effective at cutting heating and cooling costs. You may want to check with your city or utility supplier; they often have low cost energy saving programs, or rebates.

Dear Maintenance Men: I have a bathroom sink that is slow draining. I have already snaked the drain and found no stoppage. When I remove the pop-up assembly and have an open drain, water whooshes down with no problem. However, with the pop-up in place, water backs up into the sink and drains very slowly.

Paul Dear Paul: Most bathroom sinks have an overflow hole near the top edge of the sink. This hole serves two purposes; 1: Acts as a safety drain to keep the sink from overflowing should the water rise above a certain level in the sink. 2: The overflow hole also serves as an air vent for the sink when the water levels are above the pop-up plug. The overflow hole allows air to escape through the drain and the water to evacuate more efficiently.

What has happened is hair, toothpaste, grime etc. have built-up and sealed off the overflow drain where it exits just below the pop-up assembly plug. Most snakes are too big to go through the overflow drain. Alternatively, a speedometer cable will work great or even a long zip tie will work. Push the cable or zip tie down through the overflow hole at the top of the sink and push any gunk out into the drain. Use water to help push the debris out the overflow drain, a funnel works great to direct a good flow of water. If you cannot get the overflow to drain, exit. Once the overflow drain has good airflow, the sink should drain a bit faster.

If this does not solve the problem completely, look at restricting the water flow coming out of the faucet. Use a restrictive aerator to cut down on the (continued on page 5) www.rhaoregon.org

Maintenance Men Cont.

CONTINUED FROM PAGE 4

GPM of the faucet.

WE NEED Maintenance Questions!!! If you would like to see your maintenance question in the “Dear Maintenance Men:” column, please send in your questions to: DearMaintenanceMen@gmail.com Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Frank Alvarez is licensed contractor and the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 30 years. Frankie is President of the Apartment Association of Orange County and a lecturer, educational instructor and Chair of the Education Committee of the AAOC. He is also Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance. com For more info please go to: www.BuffaloMaintenance.com Jerry L’Ecuyer is a real estate broker. He is currently a Director Emeritus and Past President of the Apartment Association of Orange County and past Chairman of the association’s Education Committee. Jerry has been involved with apartments as a professional since 1988.

How to Reduce Taxable Income & Increase Depreciation with 1031 DST Replacement Property

by Austin Bowlin, CPA – Partner at Real Estate Transition Solutions

One of the tax benefits associated with owning investment property is being able to deduct depreciation. However, an investment property that has been owned for several decades will eventually become fully depreciated and can no longer be deducted to help offset taxable income. One reason real estate investors utilize 1031 Exchanges is to increase their depreciable basis by exchanging into leveraged replacement property. However, securing a loan on replacement property can be cumbersome and may not be possible without sufficient earned income. Delaware Statutory Trust replacement property allows owners to increase their leverage and thus their annual depreciation with low-cost non-recourse debt, leading to a greater portion of their rental income being sheltered from state and federal income tax.

Let's take a look at how Real Estate Transition Solutions helped Howard and Lee Anne lower their taxable income and increase their depreciation by performing a 1031 Exchange into DST real estate.

Howard & Lee Anne's Apartment Building Exchange Howard and Lee Anne own a 10-unit apartment building in Seattle, which they acquired in 1992 for $850,000.

In 2019, Howard and Lee Anne decided to retire and sell their apartment building, which was valued at $3,200,000 with a 3.4% return on equity, had no debt, and produced a net income of $110,000 per year. Howard and Lee Anne www.rhaoregon.org

listed their property for sale and contacted Real Estate Transition Solutions to help them perform a 1031 Exchange.

Their Exchange Objectives Like most investment property owners, Howard and Lee Anne had multiple reasons for performing a 1031 Exchange. However, because their apartment building would be fully depreciated by June 30, 2019, their primary objective was to establish a new depreciation shelter to lower their annual taxable income.

Howard & Lee's Relinquished Property • Their 10-unit apartment building was purchased

in 1992 for $850,000.

• Ninety percent (90%) of the value of the $850,000

purchase price was allocated to the physical

structure ($765,000), and 10% was allocated to

the value of the land ($85,000), which is not

depreciable.

• No capitalized improvements were made to the

property.

• Soon-to-expire depreciation allowed for Howard

and Lee to benefit from $27,818 of annual

depreciation for the last 27.5 years.

• By 2019, their apartment building was valued at

$3,200,000, had no debt, and was producing a net

income of $110,000 per year (continued on page 6) RENTAL ALLIANCE UPDATE September 2021

5

How to Reduce Taxable Income Cont.

CONTINUED FROM PAGE 5

•

with a return on equity of 3.4%.

The net sale proceeds are estimated at $3,008,000.

Their 1031 Exchange Tax-Deferral Savings One of the first things we do when working with a client is to help them understand their gains tax liability and 1031 tax-deferral savings. Tax liability from the sale of investment real estate is not just about federal capital gains tax – it is the total aggregate amount of tax owed when an investment property is sold. Not only are investment property owners responsible for Federal Capital Gains Tax (15% – 20%), but investors may also have to pay State Capital Gains Tax (0-13.3%), Depreciation Recapture Tax (25%), and Net Investment Income Tax (3.8%). For Howard and Lee Anne, a 1031 Exchange helped them avoid paying $733,924 in gains tax.

• • • • • •

Net Proceeds from Selling Property: $3,008,000 Original Tax Basis: $850,000 Estimated Taxable Gains: $2,158,000 Estimated Capital Gains Tax: $513,604 Depreciation Recapture Tax: $220,320 Total Taxes Deferred: $733,924

The Exchange Strategy: Increase Depreciation by Exchanging into DST Real Estate Because Howard and Lee Anne were retiring and needed to lower their taxable income, Real Estate Transition Solutions recommended a 1031 Exchange into a portfolio of management-free DST real estate designed to provide the potential for monthly income and increase their depreciation.

Depreciable basis can only be increased by the acquisition of a higher value investment property. Without contributing additional equity to a purchase, this can be accomplished by acquiring real estate that has a higher loan-tovalue than the property to be sold and Exchanged (the relinquished property). Adding debt may not be possible for an owner who is retired and may not qualify for a loan on an investment property even if they own a substantial real estate portfolio.

However, any debt held in a DST is held at the trust level and is fully secured by the underlying real estate, as opposed to guaranteed by the owners of the property ("nonrecourse"). Because the debt is held at the trust level, it does not appear on the balance sheet of the owners, but it 6

RENTAL ALLIANCE UPDATE September 2021

does provide DST owners depreciation benefits.

Their 1031 Replacement Property Portfolio Real Estate Transition Solutions worked with Howard and Lee Anne to design a portfolio of 5 DST property offerings consisting of 31 properties, diversified among ten different states, for their net sales proceeds of $3,008,000 (the sales price of the property, less closing costs). The portfolio included an allocation of: • •

•

$1,008,000 to apartment buildings (3 DSTs) $1,000,000 to value-add apartment buildings (1 DST) $1,000,000 to a diversified portfolio of 24 single- tenant net-lease properties (1 DST)

The portfolio had a total loan-to-value of 55%. All the debt was 10-year fixed-rate debt that was non-recourse with interest rates ranging from 2.84% – 3.85%, depending on the offering. The $3,008,000 of exchange proceeds acquired $6,844,444 of replacement property and thus $3,764,444 of new basis for depreciation. Ninety percent (90%) of the new basis could be depreciated.

1031 Exchange Goals Achieved By performing a 1031 Exchange into DST real estate, Howard and Lee Anne were able to sell their investment property with full tax deferral while achieving their objectives – they eliminated active property management, improved the potential for stable monthly income, and increased depreciation to lower their taxable income.

Howard and Lee Anne's portfolio of DST real estate produced $172,200 of annual income (a 5.59% return on equity). A 64% increase over their previous income. What's more, the new depreciation attributed to an increased value of their portfolio – instead of zero depreciation after June 30, 2019, their portfolio produced $111,405 in annual depreciation. This means that while Howard and Lee Anne's cash flow was 64% higher, their taxable income was only $60,795 – a decrease of 26%.

The Bottom Line 1031 DST real estate has become increasingly popular because of their many benefits and provide investors with flexible options to help meet their objectives. If you are considering a 1031 Exchange and would like to learn more about 1031 DST replacement

(continued on page 10)

www.rhaoregon.org

www.rhaoregon.org

RENTAL ALLIANCE UPDATE September 2021

7

ATTENTION MEMBERS!!!

The following are changes to the RHA Oregon By-Laws;

of units managed that constitute their Designation Members.

ARTICLE III – QUALIFICATIONS FOR MEMBERSHIP, FEES, DUES AND PRIVILEGES

(CURRENT BY LAW) ACTIVE-AFFILIATE Membership shall include those individuals, firms or organizations, which both own or operate rentals and provide goods or services to owners or operators. This class of membership shall enjoy all the benefits of Active Membership and all the benefits of Affiliate Membership. Dues shall be charged according to current schedules for both memberships, not to exceed the maximum for either Active or Affiliate dues.

Section 1.

(2022 CHANGES)CLASSES: There shall be four total classifications of membership in the association; three shall be regular members and one shall be a limited member. Regular members are called: Active Membership, Vendor Membership, and Professional Membership.

Limited members are called Designation Membership.

(CURRENT BY LAW)CLASSES: There shall be three classifications of membership in the association. Active Membership (Regular), Affiliate Membership, and ActiveAffiliate (Dual) Membership.

Section 2.

(2022 CHANGES)ACTIVE Membership shall include owners/operators of any residential property which is rented or leased (aka landlords or residential housing providers).

(CURRENT BY LAW) ACTIVE Membership shall include owners and/or operators of any residential property, which is rented or leased.

Section 3.

(2022 CHANGES)VENDOR Membership shall include any person, firm (except property management), or organization, which provides goods or services that would be of benefit to the owners or operators of rental housing. Vendor Members shall be provided opportunities to make their goods and services known to Regular and Professional Members.

(CURRENT BY LAW) AFFLIATE Membership shall include any person, firm (except property management), or organization, which provides goods or services that would be of benefit to the owners or operators of rental housing.

Affiliate members shall be provided opportunities to make their goods and service known to Active members Section 4.

(2022 CHANGES)PROFESSIONAL MEMBERSHIP Shall include those individuals, firms or organizations that provide fee-based management services to owners or operators of rental housing (aka property managers and property management companies). This class of membership shall enjoy all the benefits of Active Membership and Vendor Membership, along with those benefits of Designation Membership. Dues shall be charged according to current schedules for Regular Membership not to exceed the maximum annual amount based on the number 8

RENTAL ALLIANCE UPDATE September 2021

Section 5.

(2022 CHANGES)DESIGNATION membership Shall Include clients of Professional Members (property managers) who have limited access to association benefits, including: legislative advocacy, designated classes, legal updates, and events (provided they are registered in advance by their designated Professional Member).

Sections 5, 6 and 7 to be changed to 6, 7 and 8 respectively.

(All references in the By-Laws to Active- Affiliate and or Affiliate classifications to be updated to Vendor or Professional Member as appropriate).

Section 8.

(2022 CHANGES)PRIVILEGES: Members of all classes shall be entitled to receive all benefits as presented in the current association Value Proposition established at the time of member’s application. The Board of Directors shall approve separate privileges of membership or changes to the Value Proposition for each of the four classes no later than September 30 each year to be effective on January 1 of the following calendar year. Nothing contained in these by-laws will prevent more than one individual of a single paid membership from participating in the corresponding activities attached to that specific membership.

(CURRENT BY LAW) PRIVILEGES: Members of all classes shall be entitled to receive all bulletins and association publications, the right to purchase and use forms sold by the association, to attend all regular and special meetings of the association, and to receive membership cards attesting to affiliation with the association without additional cost. The Board of Directors shall approve separate privileges of membership for each of the four classes no later than September 30 each year to be effective on January 1 of the following calendar year. Nothing contained in these by-laws will prevent more than one individual of a single paid membership from participating in the activities of the association

(continued on page 9)

www.rhaoregon.org

By-Law Changes Cont.

CONTINUED FROM PAGE 8

ARTICLE IV – VOTING RIGHTS, ELIGIBILTY Section 1.

Only Regular, Vendor or Professional Members shall be equally eligible to hold elective office and the President and President-Elect shall be from the Active or Professional membership classification, and except that the majority of members of the Board of Directors shall be Active or Professional members.

Section 2.

All members from the four classes of membership shall be equally eligible to vote. Each paid membership shall be eligible to cast one vote at general membership meetings and if so elected, at Board of Director meetings.

ARTICLE V – OFFICERS AND BOARD OF DIRECTORS Section 1.

OFFICERS: The officers of this association shall be President, President-Elect, Vice President, Treasurer, Secretary, and Immediate Past President. Officers, except for the Immediate Past President, shall be elected at the general meeting of members in November and shall serve for a period of two years beginning on the first day of January following the election.

Section 12. There shall be at least 15 and not more than 20 members of the Board of Directors which shall include all of the elected officers, the Immediate Past President, and at least one Vendor Member and no more than six Vendor members.

ARTICLE VI – COMMITTEES Section 7.

The MEMBERSHIP COMMITTEE shall be responsible for attracting new members and retaining existing members. It shall have a Vendor subcommittee whose responsibilities are directed toward gaining Vendor members. It shall have a Welcoming subcommittee whose responsibilities are directed toward assisting new members in getting acquainted with association activities and welcoming all members at the door at general membership meetings.

to nominate a replacement if a vacancy occurs among any of the officers or other members of the Board of Directors.

ARTICLE X – AMENDMENTS (2022 CHANGES)These By-Laws may be altered or repealed by other By-Laws adopted by a majority vote of the Board of Directors and then approved at a general membership meeting. A copy of the proposed changes shall be posted on the RHA Oregon website and sent via mail or email to the general membership no less than once a month for two consecutive months prior to a general membership vote.

(CURRENT BY LAW) These By-Laws may be altered or repealed or other By-Laws adopted by a majority vote of the Board of Directors and then approved at a general membership meeting. A copy of proposed changes shall be published in the OAA/RHAGP trade journal two months before the general membership votes.

Revision date will change to January 1, 2022

FIND EVICTIONS STRESSFUL?

503-­‐242-­‐2312

Full FED Service First Appearances evict@landlord-­‐solutions.com Small Claims

ARTICLE VII – ELECTION OF OFFICERS AND DIRECTORS Section 1.

The NOMINATING COMMITTEE shall consist of a Past President who shall chair the committee and who shall select two Active Members from the current Board of Directors and two other Active or Vendor members. The Nominating Committee shall remain on call during the calendar year and shall convene as needed www.rhaoregon.org

RENTAL ALLIANCE UPDATE September 2021

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How to Reduce Taxable Income Cont.

CONTINUED FROM PAGE 6

property, contact Real Estate Transition Solutions and speak to one of our licensed 1031 Exchange Advisors. Call us at 503-832-6463 or visit www.re-transition.com/rhaor.

Austin Bowlin, CPA - Chief Exchange Strategist & Partner at Real Estate Transition Solutions As Chief Exchange Strategist, Austin leads the firm's team of licensed 1031 Exchange advisors & analysts and provides consultation on tax liability, deferral strategies, legal entity structuring, co-ownership arrangements, 1031 replacement property options, and Delaware Statutory Trust investments.

Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC. Advisory services offered through Secure Asset Management, LLC (SAM), a registered investment advisor. ASI and SAM are affiliated companies.

Real Estate Transition Solutions (RETS) is independent of ASI and SAM.

About Real Estate Transition Solutions Real Estate Transition Solutions is a consulting firm specializing in tax-deferred 1031 Exchange strategies and Delaware Statutory Trust investments. For over 26 years, we have helped investment property owners perform strategic 1031 Exchanges by developing and implementing wellplanned, tax-efficient transition plans carefully designed to meet their objectives. Our team of licensed 1031 Exchange Advisors will guide you through the entire Exchange process and help you select 1031 replacement properties best suited to meet your goals. To learn more about Real Estate Transition Solutions, call 503-832-6463 or visit our website at www.re-transition.com/rhaor.

IMPORTANT INFORMATION The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsor's Private Placement Memorandum (PPM), which is solely available to accredited investors and accredited entities. Case studies and examples are for illustrative purposes and not representative of future results. There are risks associated with investing in real estate properties, including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies, and illiquidity. Because investor situations and objectives vary, this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your situation. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.

10

RENTAL ALLIANCE UPDATE September 2021

Executive Director Cont.

CONTINUED FROM PAGE 3

their personal expense.

In reflection, it seems like an ironic twist of fate that the yet-to-be fulfilled promises for government bailout funds has united the concerns of landlords and tenants, sorrowfully bringing them together as never before. It reminds me of when my parents forced two fighting siblings to share the same room, to figure out how much we need each other in life. Well, that image brings back a lot of memories of some really long, long, long hours putting up with an older brother… and wow, that wasn’t much fun back then either!

RHA Oregon Executive Director Ron Garcia

www.rhaoregon.org

www.rhaoregon.org

RENTAL ALLIANCE UPDATE September 2021

11

www.tvfr.com

Monthly Fire Safety Tip for Multi-Family Housing Issue: Kitchen Fires—How can you protect yourself?

A motorist captured this moment in time.

Smoke billowing from an apartment building.

The cause? A kitchen fire! The resident wanted to boil water for tea but accidentally turned on the wrong burner and didn’t realize it.

Shortly after she turned the stove on, her pet dog got outside and she left the apartment to retrieve it. When she returned with her dog the smoke alarm was alerting and she saw flames spreading from her stovetop to the cabinets above.

Six apartment units suffered heavy smoke and fire damage causing $450,000+ in loss to the property and contents. Luckily, no one was injured and the resident had renters insurance.

Cooking remains the leading cause of fire and civilian injuries in the United States.

Here are some helpful tips for residents:  Keep your stovetop clear and clean  Never leave your cooking unattended  Protect your valuables with renters insurance.

For more information about fire safety visit www.tvfr.com

Remains of the burned out kitchen

TUALATIN VALLEY FIRE & RESCUE 503-649.8577 TVF&R — Safety, Performance, Customer Service, and Professionalism