Southern California Rental Housing Association Rental Advisor Magazine - February 2023

LICENSE #570472

2023 EXECUTIVE OFFICERS

President

Vice President

Todd Henderson, Independent Owner

Secretary

Natasha Howell, Independent Owner

Treasurer

Buck Buchanan, Independent Owner

Legislative Chair Greystar

Immediate Past President

Lucinda Lilley, CPM®, CAPS®, GRI®, Bridging In uence

2023 DIRECTORS

Abigail Rex, CPM®, ARM®, American Assets Trusts

Alex Winborn, H.G. Fenton Company

Jay Lopeman, CAS®, AZP Multifamily

Jennifer Ford, Douglas Allred Company

Kimmi McBryde, Cushman & Wake eld

Mark Feinberg, Heinz & Feinberg

Matt Ruane, Liberty Military Housing

Natasha Howell, Millcreek, WTS

Shannon Kelly, Independent Owner

Todd Henderson, Independent Owner

HONORARY LIFE ADVISOR

Wesley Harker

Our Address Southern California Rental Housing Association

Toll Free: 888.762.7313

Fax: 888.871.5229 socalrha.org

MAGAZINE STAFF

Publisher Apartment News Publications, Inc.

Design & Layout Travis Watson, Production Director

Editorial Review Lindsey Lee, Marketing Manager

ASSOCIATION STAFF

Alan Pentico, CAE, Executive Director apentico@socalrha.org 858.278.8070

Olivia Galvez, Director of Business Operations/Operational Advice ogalvez@socalrha.org 858.751.2217

Molly Kirkland, mkirkland@socalrha.org 858.751.2200

Kim Zebroski, kzebroski@socalrha.org 858.751.2220

Lorna R. Kindred, Education Manager lkindred@socalrha.org 858.751.2219

Lindsey Lee, Marketing Manager llee@socalrha.org 858.751.2218

Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070

Southern California Rental Housing Association Rental Advisor Magazine is published by the San Diego Multi-Housing Corporation (SDMHC) a wholly owned subsidiary of the Southern

the author's views and do not necessarily represent those of the Southern California Rental Housing Association or SDMHC.

All rights reserved. Materials may not be reproduced or translated without prior written permission by the publisher. Contact the Southern California Rental Housing Association at 858.278.8070 or visit socalrha.org for more information.

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CREATIVE DIRECTOR:

OUR VISION

Reenvisioning quality housing for all OUR MISSION

To create a thriving rental housing community through advocacy, education, and collaboration

SCRHA Housing Provider & Resident Rights and Responsibilities

As members of the Southern California Rental Housing Association, we are partners in creating a thriving community by providing quality rental housing for all We value our residents, our fellow members, and our community and are working to support a healthy housing ecosystem through advocacy, education, and collaboration.

As housing providers, we believe we have the responsibility to provide California renters with:

Quality housing with habitable and healthy living conditions. Freedom from arbitrary eviction, retaliation, or discrimination in line with all federal and state fair housing laws

Fair and equal resident protections and policies that balance the needs of renters, housing providers, and the community

A voice in housing decisions with respect and access equal to that of housing providers

An innovative and collaborative housing ecosystem where government, businesses, housing providers, and rental advocates work together to solve the region’s housing issues by identifying the underlying problems and crafting balanced solutions

Adherence to housing quality and equity standards and regulations

All California renters also have a responsibility to their housing provider to:

Review and follow rental agreement terms, including timely rental payments

Maintain a clean and habitable home

Be a good neighbor by respecting others’ peace and quiet. Provide timely reporting of any issues and necessary repairs. Keep open lines of communication with the property owner or manager

Aiesha Blevins

One Voice for the Industry

Idon’t know about you, but 2023 started with a bang and shows no signs of slowing down! I’m honored to lead the Southern California Rental Housing Association at this critical juncture As you well know, our industry is facing many challenges at all levels of government, and rental housing providers are often expected to shoulder the burden of the housing crisis alone

I want you to know and understand that you are not alone in this fight. Southern California Rental Housing Association is the voice of the industry, and we are fighting for you. We are busy behind the scenes, building relationships with elected officials to ensure that the perspective and experience of our members are considered when crafting legislation We have a seat at the table and do not take that responsibility lightly .

To help us better represent you, please get involved with the Association . There are many ways for you to volunteer your time and expertise as we work together to enhance the industry . Our committees are a wonderful way to connect with colleagues while guiding the direction of the industry . If your passion is education, events, legislative affairs, or even the next generation of leadership, we have a space for you!

Even if you don’t have the time or energy to serve on a committee, SCRHA has plenty of ways for you to get involved Our 2023 calendar is full of educational seminars and networking events throughout the region . Be sure to bookmark the calendar so you don’t miss out on any of the fun

Whether you’re ready to take your career to the next level by earning a credential or designation or just need to earn your continuing education credits, our wide range of classes will help you succeed To get the most out of our educational opportunities, be sure to register early for the Innovations Rental Housing Conference & EXPO on April 27, 2023 . Use promo code EARLYBIRD for $5

off your ticket and earn two (2) CECs for attending! Sign up early; this offer expires on February 28.

If you are ready to get out of the office and the classroom, join us for one of our many great events, such as the NextGen Bowling Tournament in San Diego on March 16 or the Golf Classic on June 2!

Remember, Southern California Rental Housing Association is a member-driven organization and welcomes your feedback If you have an idea for a class or event, please let us know . We want to hear from you as we work together to provide quality housing for all

2023 President Southern California Rental Housing Association

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Alan Pentico, CAE

Executive Director

Southern California Rental Housing Association

The

Strength of the Industry

We are only one month into the new year, and the rental housing industry is already under attack from all levels of government In late January, SCRHA members read headlines that the City of San Diego declared housing a human right in a resolution that was unanimously approved on the same day that the Biden Administration previewed a “Residents’ Bill of Rights . ”

The news out of San Diego and Washington, DC ., make it clear that we must stay engaged to ensure our local, state, and federal representatives hear our message . By joining Southern California Rental Housing Association, you have taken the first step to support the industry .

Your support enables our success . I cannot stress to you how important it is that you stay engaged and amplify our message The perspective of housing providers must be heard and understood throughout the community and legislative process

We understand that you are busy, so we will do our best to make it simple for you to make your voice heard . One simple way that only takes a few minutes of your day is to add socalrha org to your safe senders in your email to stay up to date with the latest news and respond to Call-to-Action alerts These alerts are an easy and effective way to share your experience as a housing provider with your elected officials and personal network of family, friends, and community members .

Another critical way to support our advocacy efforts is contributing to the SCRHA Industry Defense Fund . The Industry Defense Fund allows SCRHA to engage in emerging policy issues with research and data, public affairs and crisis communications support, political strategists, and more .

With your support, we have already seen results . As shared previously, the City of San Diego Mayor and Council President released a framework for a Tenant Protection Ordinance this past December The new framework is vastly different from what was originally proposed last October, and THAT

IS A DIRECT RESULT OF SCRHA’S ADVOCACY

Families Fund, for the purpose of spending these tax dollars on rental assistance, homelessness, affordable housing, and housing counseling services.

Further, AB 1199 would require a qualified entity, currently defined as a limited liability company or limited partnership, owning multifamily or singlefamily rental homes, to report specified information about the property each year to the Secretary of State’s Office. That office would have to create a searchable database on its website.

What is the definition of insanity according to Einstein? “Doing the same thing over and over and expecting different results.” Well, here we go again. Assembly Member Buffy Wicks has proposed legislation for the third year-in-a-row that would force rental housing providers to register their properties with the government.

These advocacy efforts included all members who attended the October hearing, called in, and sent messages to their councilmember(s). Members of the council heard rental housing providers loud and clear and reiterated the importance of including the industry’s viewpoint when crafting the ordinance and avoiding unintended consequences . Having met with each council office, exasperated by the homelessness crisis, all of them want to go much further than state law . The SCRHA has pushed back with facts, demonstrating where existing laws already accomplish most of their desires . The ordinance is currently being drafted, and SCRHA remains a key stakeholder in that discussion .

Since the bill is an urgency measure, meaning that if passed, it would take effect immediately, it will require a 2/3rds vote. Usually a high bar, however, with Democrats enjoying more than a 2/3rds majority, it will be difficult to stop. It is hard to believe that someone would introduce a bill to tax property owners for the “privilege” of providing rental housing, especially considering all that has been piled on property owners over the last few years. We would like to see this bill just go away. Very far away.

AB 1188 would require cities and counties to create and administer a rental registry with an online portal designed to receive specified information from landlords who own or operate five or more rental dwellings. The bill would require landlords to provide a variety of information regarding the location of rental property, its ownership, and its occupancy, among other things. It also would prohibit a landlord from issuing various notices to increase the rent or terminate a tenancy unless the landlord has submitted a form on the online portal.

The SCRHA opposed the prior bills and assisted in killing them. We will work toward the same result in 2021 for AB 1188.

We know what it takes to succeed, and to continue our mission of providing quality housing for all, we will need every member’s participation to show our industry’s full strength .

I n Ca s e You Mi s sed I t !

R ece n t U pd a t es from SCRH A

San Diego’s Mayor Signs Executive Order to Streamline Affordable Housing Approval

Mayor Todd Gloria announced during his State of the City Address that just prior to the event, he signed an Executive Order that will require the Development Services Department to approve “any proposed subsidized housing project that meets all requirements.” The Mayor briefly touched on the new framework for tenant protections. New housing and addressing homelessness were major talking points, with other topics such as crime, sidewalk maintenance, and more also discussed.

A recent Voice of San Diego article on homelessness ties the issue directly to the lack of housing. This is important since some leaders and advocacy groups have recently tried to tie the issue to evictions and the need for strict renter protections.

San Diego Council Committee Takes First Step to Require Childcare Disclosure in Rental Agreement

The San Diego City Council Economic Development and Intergovernmental Relations Committee heard a recommendation from Councilmember Raul Campillo to explore requiring language in rental agreements regarding the right of a resident to operate a family childcare business. SCRHA spoke to the committee, requesting that the Association be a key stakeholder in the creation of an ordinance. While disclosures are often added to the rental agreement from different levels of government, SCRHA is monitoring the issue to ensure this doesn’t become a burdensome requirement. Moreover, many resources already exist for renters to learn about their rights and what is considered discrimination. SCRHA spoke of the need for better education and outreach, and coordination of resources so that all parties better understand their rights and responsibilities.

that SCRHA has been updating members on regularly Updates will be provided as more information becomes available.

Temecula Seeks Additional Time to Implement SB 9 Requirements

The City of Temecula has a temporary moratorium in place on housing development and lot splits permitted under state law. split or duplex, but homeowners must comply with local planning one year, to create a local ordinance. One major issue plaguing the city is how to deal with properties in HOAs, which is not addressed in SB 9. The city will hold public hearings and workshops for residents to weigh in on the topic.

Rent Control Initiative Submitted to the Attor ney General for Title & Summary

Just days before Christmas, petitioners submitted initiative language entitled “Justice for Renters Act” to begin the process of qualifying an initiative for statewide voter approval. The proposed language would repeal certain rental housing provider protections under the Costa-Hawkins Act, and nullify the State’s bars the State from limiting the “right of any city, county, or city and county to maintain, enact, or expand residential rent control.”

SCRHA and our statewide partner CalRHA are closely watching these developments to take necessary steps to protect housing providers.

SCRHA Member Featured in San Diego Union Tribune

SCRHA Member Brian Smith was the feature of a story in the Union Tribune, which was on the front page of the Local Section on Monday, December 19, 2022. We encourage you to read the story and post a supportive comment, and/or share our social media posts about the article. Visit our blog at socalrha.org for links to the story!

Mayor Todd Gloria and City Council President Sean Elo-Rivera Unveiled New Framework

In December, Mayor Todd Gloria and City Council President Sean Elo-Rivera unveiled a new framework of local protections for tenants. The new framework is the result of weeks of negotiations, at which SCRHA has had a key seat at the table.

From the onset, we were determined to change the narrative between the City, renters, and rental housing providers, demonstrating that true collaboration is not only possible, but essential to bringing forth positive change for both San Diegans and the rental housing market.

EDUCATION SEMINARS

Attendees Receive 2 CECs!

Legislative Update

Presented by Molly Kirkland, Director of Public Affairs and Pat Moran, Aaron Read & Associates

Back to Basics: Risk Management Panel

Facilitated by Alex Winborn, H.G. Fenton Company

Homeless Outreach Team

Lieutenant Michael P. Stirk, Neighborhood Policing Division

San Diego Apartment Market Overview

Presented by Josh Ohl, Director of Market Analytics for San Diego with the CoStar Group

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CAPITOL NEWS California

By Aaron Reed & Associates, SCRHA's Lobbyist

As the Legislature moves into full gear the SCRHA continues to review legislation and take positions on bills important to the industry. The SCRHA also continues to participate in the discussion surrounding the state’s rental repayment program and is working on clean-up legislation to SB 91, the COVID-19 Tenant Relief Act. While the focus has been on SB 91 and its implementation (and rightfully so) other bills are being introduced that impact the rental housing industry.

The Legislature has returned for the 2023-24 legislative session and it hasn’t taken long for members to start introducing housing bills, nor did it take long for AIDS Healthcare Foundation (AHF) to submit another initiative to repeal Costa Hawkins . The request for Title and Summary has been submitted with the Attorney General’s office and, if approved, would be titled the “Justice for Renters Act ” This is just the first step in getting the measure qualified for the 2024 ballot

AB 854 (Lee, D-San Jose) is another Ellis Act bill (one of many we have seen over the last few years) that would prohibit rental housing providers in rent control jurisdictions from using the Ellis Act to terminate tenancies and exit the rental market until all owners of the property have held their ownership interest for five years or more.

The bill would also prohibit an owner from using the Ellis Act if the owner subsequently purchases a property within 10-years of filing the notice of intent to withdraw the property from the market. Moreover, it would require an owner to identify all persons or entities with an ownership interest in the property when the owner plans to withdraw

The goal is straight forward, repeal of the CoastHawkins Rental Housing Act Costa- Hawkins prohibits cities from applying rent control ordinances to condominiums, single family homes or new construction — anything built after 1995 or after a city first established rent control. It also bans what is known as “vacancy control,” which means capping a landlord’s ability to hike the rent after a tenant moves out and another moves in The initiative would also prohibit the state from limiting the right of local governments to maintain, enact or expand residential rent control .

This isn’t the first time AHF has attempted to repel Costa-Hawkins . Past attempts have been roundly rejected by voters and SCRHA will work diligently to see that history repeats itself .

accommodations from the market. Finally, AB 854 would add penalties for violations of the law — $2,000 for each violation and attorney’s fees and costs in an amount fixed by the court.

Governor Newsom proposed a $297 billion state budget focused on protecting prior investments amidst a revenue shortfall The Administration is projecting a $22.5 billion budget deficit, which it largely proposes to address with a mix of spending delays, clawing back certain planned spending, and pausing some new spending .

According to the author, the bill is aimed at stopping speculators from buying rent-controlled properties and then using the Ellis Act to remove the residents. The young legislator does not understand that his bill would tie all rental housing providers, including small owners, to money-losing ventures.

You may recall that Senator Mark Leno proposed a similar bill in 2015 which was defeated by the SCRHA and other rental housing organizations. We will try to do the same to this one.

In comparison to the 2022 Budget Act, there is a $1 billion increase in budgetary reserves ($34.6 billion for 2022-23), with $22.4 billion reserved for the Rainy-Day Fund (up $1.5 billion from last year). There are few new programs and funding commitments proposed, in stark contrast to the Governor’s previous annual budget proposals The bulk of the Administration’s narrative highlights investments approved in previous years’ budgets that are being “preserved” in this proposal

BUDGET

Legislation introduced last week aims to tax property owners for the “privilege” of providing rental homes and create a searchable database of certain rental properties. AB 1199 (Gipson, D-Los Angeles) would impose an annual excise tax upon a person or entity owning 10 or more multifamily or single-family rental properties. The tax rate would be based on the gross receipts of the rental income, an amount yet undefined. The bill also would create a Homes for

The Governor, in his January 10 budget summary, characterizes his major proposals to close the estimated $22 .5 billion General Fund budget gap as follows:

• Funding Delays ($7.4 billion). The Governor proposes delaying funding for multiple items from the 2021-22 through 2023-24 fiscal years, spreading this funding across future

Please turn to page 16

401(K) PLANS

DENTAL INSURANCE

MEDICAL INSURANCE

WORKERS COMPENSATION

LIABILITY BENEFITS

VOLUNTARY BENEFITS

L I F E I N S U R A N C E

years without reducing the total amount of funding planned over the entire period .

• Reductions and “Pullbacks” ($5.7 billion). The Governor proposes reducing spending for various items from the 2021-22 through 202324 fiscal years, including pulling back certain items included in the 2022 state budget plan that provided additional budget resilience . Significant items in this category are reported to be a $3 billion “inflation reserve” previously included in multiyear state budget projections and a $750 million optional payment to the unemployment insurance trust fund in 202324

• Fund Shifts ($4.3 billion). The Governor proposes shifting certain spending in the 2022-23 and 2023-24 fiscal years from the General Fund to other funds These include shifting various California State University capital projects to university - issued debt (with the state providing support for the debt service), reverting certain projects funded by cash in 2022 back to bonds, and shifting some zero-emission vehicle funding to the Greenhouse Gas Reduction Fund

• “Trigger Reductions” ($3.9 billion). The Governor proposes reducing funding for certain items in the 2020-21 through 202324 budgets, placing them in a new “trigger,” whereby these reductions would be restored in 2024 if sufficient funds are available. According to the Governor’s budget summary, these items are primarily expenditures in climate and transportation ($3.1 billion), housing ($600 million), parks ($106 million), and workforce training ($55 million).

• Managed Care Organization (MCO) Tax and Borrowing ($1.2 billion). The Governor proposes to augmentGeneral Fund resources in 2023-24 with targeted borrowing from state special funds and by renewing the MCO tax, which the state has routinely extended in recent years to boost funding for health care purposes .

HOUSING

Seismic Retrofitting Program for Soft Story Multifamily Housing

In 2022, SB 189 (Committee on Budget and Fiscal Review), Chapter 48, Statutes of 2022, established the

Seismic Retrofitting Program for Soft Story Multifamily Housing and included legislative intent language to appropriate $250 million in the 2023-24 budget

The proposed budget does not include the intended appropriation, citing the state’s fiscal outlook and projected decline in General Fund revenues .

Includes $350 million in reductions to housing programs that were included in the 2022 Budget Act as follows:

• Reduces the California Dream for All by $200 million of the $500 million one-time in the 2023-24 Budget .

• Removes $100 million one-time General Fund in 2023-24 out of the $350 million proposed in the 2022 Budget Act

• Reverts the entire $50 million from the Accessory Dwelling Unit Program for 202223

The Administration is also seeking waivers from the federal government to use funding for housing purposes . They include:

• California Behavioral Health Program (CBHP) – the waiver would free up funds to cover the cost of rent for up to 6-months for certain populations participating in CBHP programs .

• CalAIM – this would require a Medicaid waiver from the federal government freeing up funds to provide rental assistance as it would then fit the definition of “care support.” It would cover 6 months of rent for certain populations covered by CalAIM .

• There will be a 5th round of HHAP grant funding; $1 billion total which can be used for rental assistance

HOMELESSNESS

Does not include any changes to funding for homelessness programs included in the 2022 Budget Act . Proposes to work with the Legislature on outcomes and accountability .

LEGISLATION

Bills are being introduced and SCRHA is reviewing and taking positions on legislation impacting the industry . The bill introduction deadline in February 17, 2023, and we will have a list of bills to report on after the bill introduction deadline We expect it to be a very busy year .

FEMA SHOWS SAN DIEGO QUAKE VULNERABILITIES

REGION’S COASTAL AND OLDER URBAN AREAS SEEN AS MOST VULNERABLE

by Ali Sahabi, Optimum Seismic

What are the odds a major earthquake will damage your San Diego apartment building, other commercial structure or even your home?

The Federal Emergency Management Agency’s Hazus modeling shows 120,000 buildings could suffer moderate to complete damage – with 8,000 beyond repair – and another 36,000 households could be displaced .

HOW DOES THAT BREAK DOWN IN TERMS OF BUILDING TYPE?

Here in San Diego, damage is projected to be severe and widespread, particularly in the heavily populated coastal and older urban areas, according to a report

by the Earthquake Engineering Research Institute, San Diego Chapter The “San Diego Earthquake Planning Scenario,” calculating the impact of a 6 .9 magnitude earthquake along the Rose Canyon Fault, was developed by a multidisciplinary team of geoscience, structural engineering, and social science professionals and researchers with the goal of raising awareness of the region’s earthquake risks .

“A major earthquake on the Rose Canyon Fault Zone will impact every aspect of the San Diego region’s social, economic, and physical systems,” the report states . “Damages will cause business interruptions across most economic sectors, estimated at $5 2 billion dollars in lost income throughout San Diego County . Additionally, the earthquake will damage a large percentage of the housing stock in the San Diego region, further exacerbating housing affordability issues particularly for more vulnerable

Recently appointed to Los Angeles Mayor Karen Bass’ Transition Team, Ali Sahabi, previously received the California Governor’s Environmental and Economic Leadership Award for taking a sustainable approach toward community development and environmental restoration in the 543-acre Dos Lagos mixed-use development in Corona, CA A licensed General Engineering Contractor (GEC), Sahabi is an expert in building resilience and sustainability. He is Co-Founder and Chief Operating Officer of Optimum Seismic, Inc ., which has completed

more than 3,500 structural retrofit and adaptive reuse projects for multifamily residential, commercial, and industrial buildings throughout California .

Continued from page 18

populations such as low-income residents ”

The 2020 Hazus study estimated total economic losses to the San Diego region to be $38 billion – about 10% of the total value of buildings and infrastructure $24 3 billion of that total is based on building damage, including lost wages and business income, but not including indirect losses resulting from the incident itself .

Most newer buildings, particularly single-family residences, can be expected to survive that scenario 6 9 earthquake with repairable damage But many larger and older buildings are at risk of severe damage that may render them unsalvageable

Special studies conducted by local engineering groups estimate that there are between 2,850 and 8,100 total seismically vulnerable structures in San Diego County These include unreinforced masonry, older nonductile concrete and infill frame, poorly anchored tilt-up concrete buildings, tuck-under parking (soft-story) residential structures, older steel frame buildings, and older cripple wall and hillside residential structures

Among single-family homes, 0 3 percent of single-

family homes would be irreparably damaged, (mostly homes on raised foundations), compared to 4% of multifamily housing, (with wood-framed, soft-story structures most at risk). About 7% of commercial structures would be unsalvagable, along with another 4% of industrial buildings .

What are the most vulnerable types of construction in San Diego? The report lists the following:

• Unreinforced masonry constructed before 1933

• Soft-story residential and commercial built before 1978

• Unbraced cripple wall residential constructed before 1979

• Nonductile concrete constructed before 1977

• Tilt-up concrete built before 1980

Does your apartment building fall under one of these categories? If so, your odds of experiencing hardship after a major quake are much higher . Call Optimum Seismic at 833 978-7664 for more information and a free evaluation,

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Welcome New Members

C E L E B R ATI N G

INDEPENDENT OWNERS

an ANNIVERSARY This Month 10+ years of membership

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George Alspaugh Company

Ikeda Corporation

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Paul Mankin Co.

R.C.Hampton, Inc.

Rick Barsh Company

River Oaks Management, Inc.

The Carlyle Group

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PROPERTY MANAGERS

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Banc of California

Cabinets And More

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Servpro San Diego SW

Taxable Wealth

Legislative Update

February 15

IROC: Tenant Screening

10:00A - 11:00A | SCRHA

Learn how to safely and confidently use background checks while navigating upcoming legislation during this in-person class.

February 16

Solution Series: California Balcony & Deck Inspection Class

Join us for an informative class on SB 721 & 326, which requires inspection of applicable, elevated exterior elements due by 2025.

February 22

Homeless Issues on the Property

Learn what steps to take and what resources are available if you have homeless individuals entering and spending the night at your property.

February 23

Join

February 23

Supplier Council

Share your experience, knowledge, and best practices with colleagues in the rental housing industry while having candid conversations with property managers.

February 27

10:00A - 11:00A | SCRHA 8:30A - 5:00P | SCRHA

EPA 608 Certification

This course will cover all four sections of the EPA 608 Certification and all training will be conducted in the classroom. At the end of this course student will test for the universal certification.

Pref e rre d Pa rt n er s

CE LE B R ATIN G

Kay Mark, Inc.

Wexford Enterprises, Inc.

John Tyndall Company

Janet Griffin Company

Gerald Morris Company

Marie DeSanti Company

Quate Properties LLC

Thomas & Marilyn Tindel

Michael Hinners Company

Shannon Cutsinger Company

Heartland Associates Inc.

Tom Ranz Company

Robert Peterson Company

Michael Keller Company

Biggins Property Management

John Colclough Company

Lauren Peterson Company

Orchard Beach Properties

Pro-Tech Painting Company

Jewel Foundation, Inc.

Narragansett Plaza

ACI Apartments Office

Harold West Company

Cable, Pipe & Leak Detection, Inc.

Ashcraft Investment Co., Inc.

Mary Anne Stevens Company

H.G. Fenton Company

Dunn-Edwards Corporation

Yardi Systems

an ANNIVERSARY This Month

10+ years of membership

Terry G Anderson Company

Westbrook Apartments| Fairfield Residential

Christina Boller Company

Mark Tarpin Company

Robert Vinck and Mary Ann Gleason-Vinck

All Valley Washer Service

B.A.G. Properties

Robert Ruane & Joe Rood

Brian Ferguson Company

Hilary Bilodeau, Owner

Pepperhill Apartments

Ray Adams Company

Roberto Cavallaro Company

Gary Mellom Company

Tom Bobczynski Company

Ed Mulhern Company

Dorothy Barrett Company

Juan Betancort Company

Ogden Holding Co. L. P.

CG Harmon Investments, LLC

Susan F. Botts

Daniel J. Marks

The Bregantic Family Trust

Chris Bushard Company

City View Community

Sherwin-Williams Co.

Tricia Langill Company

Charles Schaffer Company

Security First

account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please contact the publications department at publications@socalrha.org

account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this contact the publications department at publications@socalrha.org

account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this contact the publications department at publications@socalrha.org

• Potential for monthly cash flow and capital appreciation

• Potential to defer capital gains taxes

• Potential close in as little as 3-4 days

• Help build a diversified portfolio

• Invest in “out-of-state” properties

1031capitalsolutions

• No need to obtain a loan

• Low minimum investment amounts

• Institutional asset and property management

• Pass through tax benefits

• No escrow

My mission is to provide expert advice that helps investors escape the burdens of traditional rental property ownership, and 1031 exchange into potentially 100% passive income DST properties.”

Jason McMurtry, MBA Managing Partner

To learn more, visit 1031CapitalSolutions.com or call us at (800) 445-5908

DST 1031 properties are only available to accredited investors (typically defined as having a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years; or have an active Series 7, Series 82, or Series 65. Individuals holding a Series 66 do not fall under this definition) 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. This is for informational purposes only, does not constitute as individual investment advice, and should not be relied upon as tax or legal advice. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax concepts, therefore you should consult your legal or tax professional regarding the specifics of your particular situation. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment advisor. 1031 Capital Solutions is independent of CIS, CAM and CIA.

Rent-Control Regulations: Help or Hindrance to Housing Supply?

By Jeremy Green, National Association of REALTORS®

Across the country, renters and housing providers alike are facing the effects of severely limited housing supply . Rising construction costs, labor shortages, supply chain disruptions and burdensome zoning regulations are hindering the development of new, affordable units in urban, rural and suburban areas. As a result, renters are facing higher monthly payments as a housing shortage persists .

In an attempt to slow rising rents, some policymakers have turned to rent control . Proponents of rent control ordinances blame rising rents on the actions of corporate landlords and large property owners . While institutional investors and private equity firms are purchasing segments of housing stock in some targeted areas, it isn’t a nationwide problem and not the root cause of rising rents

Rent control regulations more adversely impact mom-and-pop housing providers—defined as those who own four units or less Mom-and-pop housing providers play a vital role in every community and supply two-fifths of all rental housing in the U.S. Misguided rent control laws place arbitrary “caps” on how much property owners are allowed to charge for their properties on the open market, forcing some to offer units below market value while still having to stay current with their own mortgage, property taxes and general upkeep

Right now, the United States is facing an immediate shortage of 600,000 apartments . To meet demand, 4 .3 million apartments need to be built by 2035 . The significant underproduction of housing has resulted in a decline of 4.7 million affordable units between 2015 – 2020, according to a report from the National Multifamily Housing Council and the National Apartment Association Rent control regulations, while well-intended, will make these alarming statistics

worse When states and localities place barriers and caps on the rent owners can charge, they are disincentivized from investing in property, or remove their units from the market and transform them into condominiums . Rent control forces local investors to leave their communities for neighboring markets with less strict regulations, allowing large-scale investors to establish high-end apartments, eliminating a “missing middle” that so many renters rely on

This scenario recently played out in Saint Paul, Minnesota, where policymakers were forced to scale back an attempted rent control plan when housing developers began abandoning the city for nearby Minneapolis . The National Association of REALTORS® (NAR) is a strong supporter of common sense solutions to alleviate rising rents, like updating zoning regulations that place barriers on the construction of multi-family developments and manufactured housing, and eliminating red tape so housing development can keep up with demand

Policymakers should explore solutions like the lowincome housing tax credit, which would encourage the development of affordable housing. NAR is also dedicated to improving the housing-choice voucher program, a federal program that provides stable housing to hundreds of thousands of tenants nationwide . Rather than placing the undue and unfair burdens of the housing supply crisis on mom-and-pop housing providers, government entities should look toward solutions that treat both owners and renters fairly For more information visit https://www nar realtor/ .

Written by Jeremy Green, Federal Housing Policy Representative, National Association of REALTORS®

SIX POTENTIAL BENEFITS OF EXCHANGING INTO DELAWARE STATUTORY TRUST PROPERTIES

BY DWIGHT KAY Kay Properties and Investments, LLC

There are a number of potential benefits associated with exchanging into a Delaware Statutory Trust (DST) 1031 property .

However, it is important to note that these potential benefits should also always be carefully weighed with the potential risks that are possible with DST investments, and as with all real estate investments, investors should consult their tax attorney and or Certified Public Account before investing in DSTs .

Still, DSTs continue to grow in popularity especially among aging baby boomers who are tired of managing their own properties and are looking for a way to transition into a passive income stream . DST

investments not only provide investors the potential for passive income, but also the following six benefits as well:

BENEFIT ONE:

Tax deferral using the 1031 exchange

Many real estate investors have wanted to sell their apartments, rentals and commercial properties for years but haven’t been able to find a property to exchange into and just can’t stomach the tax bill after adding up federal capital gains tax, state capital gains tax, depreciation recapture tax and the Medicare surtax . The DST 1031 property solution provides investors an ability to move from an active to a passive role of real estate ownership on a taxdeferred basis

Dwight Kay is the Founder and CEO of Kay Properties and Investments, LLC . Dwight is a published author with multiple published white papers and articles on 1031 exchanges, Delaware Statutory Trust (DST) properties and real estate securities. He has been interviewed on local and nationally syndicated radio stations on the matters of 1031 exchanges and replacement properties. He also is the author of the published book “Delaware Statutory Trust (DST) Properties: An Introduction to DST Properties for 1031 Exchange Investors ” Dwight began his career in commercial real estate working for a national commercial real estate brokerage firm focusing on multifamily and commercial real estate

BENEFIT TWO: Eliminating the day-to-day headaches of property management

Because many DST investors are at or near retirement, they are simply tired of the hassles that real estate ownership and management often bring . They are tired of the tenants, toilets and trash and are wanting to move away from actively managing properties The DST 1031 property provides a passive ownership structure, allowing them to enjoy retirement, grandkids, travel and leisure, as well as to focus on other things that they are more passionate about instead of property management headaches .

BENEFIT THREE: Increased cash flow potential

Many investors are receiving a lower amount of cash flow on their current properties than they could be, due to their properties having under-market rents, properties that have multiple vacancies and/or that are raw or vacant land sitting idle DST 1031 exchange properties provide an opportunity for investors to potentially increase their cash flow on their real estate holdings via a tax deferred 1031 exchange

BENEFIT FOUR: Portfolio diversification by geography and property types

Oftentimes, 1031 investors are selling a property that comprises a substantial amount of their net worth They want to reduce their potential risk and instead of buying one property (such as another apartment building) or one NNN building (such as a Walgreens pharmacy or Taco Bell restaurant) they decide that investing into a diversified portfolio of DST 1031 properties with multiple locations, asset classes (property types) and tenants is a better fit for their goals and objectives

This is similar to how investors tend to invest retirement funds in mutual funds and Exchange Traded Funds (ETFs), as opposed to placing their entire retirement savings into the stock of one particular company . However, it is important to note that there are no assurances that diversification will produce profits or guarantee against loss .

BENEFIT FIVE: Long-term non-recourse financing locked and in place to satisfy debt replacement requirements of the 1031 exchange

One of the requirements for a 1031 exchange is to take on “equal or greater debt” in the replacement

property to what you had in the relinquished property (the property you are selling). In today’s lending environment, it is often hard for investors to obtain non-recourse financing at an acceptable interest rate and terms . Due to the DST 1031 properties’ sponsors typically having strong lending relationships, they are able to secure non-recourse financing at some of the best terms available in the marketplace The DST 1031 investors are the direct recipient of these financing terms that they would otherwise often not be able to obtain on their own

BENEFIT SIX:

Access to Institutional Grade Real Estate

DST 1031 properties provide access to large, institutional-grade real estate that is often otherwise outside of an individual investor’s price point With the typical minimum investment of $100,000, investors are still able to purchase an ownership interest in large $20 million-plus apartment communities, $5 million-plus pharmacies or $15 million grocery stores, for example This allows investors access to a level of real estate that they just would not have been able to exchange into before

That being said, we also have had many clients with very large 1031 exchanges opt to invest in DST 1031 properties because they did not want to place “all their eggs into one basket” by purchasing one single, large investment property .

For more information about Kay Properties or to review a current list of 1031 Exchange eligible properties please visit kayamag.com, call (855) 8783421, or scan the QR code below to receive your FREE 1031 Exchange toolkit

Kay Properties & Investments is a national Delaware Statutory Trust (DST) investment firm. The Kay Properties platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 400 years of real estate experience, are licensed in all 50 states, and have participated in over $30 Billion of DST 1031 investments.

Disclaimer: This material is not to be considered tax or legal advice. Please speak with your own CPA and attorney for all tax and legal advice prior to considering an investment. All real estate and DST properties contain risk. Securities offered through FNEX Capital, member FINRA, SIPC.

Prop Tech: The Secret to the Multifamily Industry’s Resilience Against Recession

By: Sylvia Crawford, Senior Director, Marketing Strategy and Planning at Arize

(Editor’s Note: “Proptech” – short for property technology - is the broad range of products, services, and systems that use technology to enhance or streamline the ways people interact with a residential or commercial property. The goal of Proptech is to rethink how people live and work in buildings, and it leverages technology to improve those processes.)

With the price of gasoline holding at around $5 to $7 per gallon, the Federal Reserve Bank raising the benchmark interest rate by 75 basis points (or more), and inflation remaining at a steady 8% or so, all signs point toward a looming recession Many industries are cutting costs to prepare for the hard times and reduced profits ahead.

The multifamily industry has persisted through five recessions in the last four decades . Most recently, it survived a global pandemic, something that has crippled other industries we thought were recession-proof But why is multifamily sector so resilient? How are owners and operators able to tap into new streams of revenue to secure their prospects during a recession? Let’s look at how multifamily owners and operators withstand these severe economic downturns

RECESSION PROPELS MULTIFAMILY INTO THE LAND OF PROP TECH

What does the future look like for a multifamily property industry with a recession on the horizon? For multifamily property owners and operators, the future isn’t quite so bleak Sure, there’s going to be some cost-cutting and belt-tightening, but a recession is also an opportunity to secure long-term growth and sustainability .

Yes, recessions do affect rental income. Even today, after experiencing record-breaking growth for almost two years, rent increases have begun to flatten. Because of this, owners need to find ways to recoup their lost NOI Innovating and modernizing by investing in smart property technology is one of the most reliable methods to do so, as evidenced by the uptick in smart amenity investments during the pandemic

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forward-thinking. Now, Gen Z is not as concerned with recreation or downtime at the office, rather a financial investment in their future. However, stock options and a standard 401(k) won’t cut it when they are actually searching for “student loan assistance, tuition reimbursement, and maternity and paternity benefits.” This generation values a work-life balance and is highly optimistic for the future, so these types of benefits will not only attract but also encourage them to stay and take advantage of these opportunities.

While once considered a ‘nice-to-have,’ smart tech is now the cost of doing business, especially when the economy begins to contract 83% of multifamily builders prioritize smart home technology that integrates with their property management software 65% of those same builders consider smart tech a differentiator and value-add. When it comes to residents, 82% are interested in at least one smart device and would pay $38 per month on average to add it to their homes Smart tech also elevates retention . Recent studies done by various companies nationwide have concluded that 56% of residents, on average, express a desire to renew because of the smart tech in their units .

PROPTECH DELIVERS CONTROL DURING VOLATILITY

Gen Z job seekers cite a company’s commitment to diversity as an important factor in deciding whether or not to accept an offer.” Here it is very important for a company to talk the talk and walk the walk. Diversity and inclusion cannot just be a phrase in your company’s mission statement or a committee that meets once a quarter. This dedication needs to be seen in initiatives like asking one’s pronoun preference, adequate accommodations for those who are differently-abled, policies to ensure fair and equal pay, etc.

They Want to See Diversity and Inclusion

This highly educated, highly diverse generation is craving a passion and dedication to diversity and inclusion from their employers. As a result, “86% of

Inflation was one of the main driving forces behind the market’s volatility this past year, in large part due to a series of events from the past few years . In 2020, the world went through a pandemic that brought the economy and supply chains to a screeching halt . As a result, the Fed lowered interest rates to record low percentages as a response to COVID-19 in efforts to increase spending . In 2021, the government provided much-needed stimulus payments, which allowed

They Want an Offer, and They Want it NOW

Standard HR procedures make it difficult to establish a hiring committee and follow the correct protocol when extending an offer. Gen Z wants no part of that. They

feel if it’s a right fit, the offer should be made. “Nearly one in five Gen Zers expect a job offer one week from the initial phone screen. The majority expect an offer within two weeks.” Whether this expectation is realistic or not, companies that make an actionable change to speed up their hiring process will win top Gen Z talent.

renters to afford rents that had climbed by 13.5%. Yet while spending was booming, supply chains continued to struggle to meet demand, causing an increase in the prices of goods and services .

Despite the gloomy economic outlook, multifamily properties have remained a favorite asset class of investors And the industry’s performance during the last five recessions serves to alleviate the concerns of both owners and investors, at least in the short term Yes, rents will stagnate during a recession . However, the long-term impact smart tech has on retention, NOI, and operational efficiencies will far outweigh the adverse effects owners feel from short-term rent drops. Multifamily owners can ride out periods of volatility and uncertainty by securing tighter control over their portfolio’s performance with smart technology Smart tech creates operational efficiencies, lowers overhead costs, and leads to higher returns on investment (ROI) and net operating income (NOI). Higher retention, lower turnover, enhanced operational performance, reduced staff overages, minimal payroll… these NOIgenerating outcomes all result from adding smart tech-enabled automation to a given property .

*Statistics pulled from Yello

Take staffing issues, for example. Over 62% of property

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Continued from page 37 managers consider optimizing their operations to gain efficiencies one of the top three professional challenges they face, according to survey data from the National Apartment Association’s Apartmentalize 2022 conference Additionally, 74% of owners said that human resources and staffing are the most difficult areas of their business to optimize .

Smart apartment technology streamlines employees’ day-to-day responsibilities. When property staff leverage smart tech to oversee repair issues, for example, they decrease the number of maintenance tickets they handle by 66%, saving their staff time and lowering what they have to pay for maintenance personnel

RECESSION EQUALS OPPORTUNITY FOR OWNERS AND OPERATORS

Eric Bolton Jr., Chairman and Chief Executive Officer of Mid-America Apartment Communities, has stated that thanks to smart technologies, he will be able to reduce positions in his leasing department over the course of 2022 and is on track to optimize even further in 2023 . As a result, he is also on track to expand his assets’ NOI by $28 million

There are two upcoming trends that multifamily owners and operators can look to take advantage of . The first is the retrofitting of legacy buildings with smart technology As the cost of borrowing money continues to rise with every Federal Reserve Bank rate increase, owners will be looking for cost-effective ways to upgrade their properties and reduce inefficiencies via automation and increase their retention and acquisition rates -- all while enhancing their portfolio assets . Thanks to smart tech, the industry is at the beginning of an increase in modernization Implementing smart tech offers a nonintrusive way to upgrade a building without having to take down any drywall or rip out any studs. This provides owners with an affordable turnkey solution to their day-to-day challenges

Another major bonus to owners is the emerging trend of Hardware-as-a-Service (HaaS) from companies like Arize Owners can capitalize on predictable and affordable overhead with a guarantee to never have obsolete technology Hardware-as-a-Service follows a similar process as purchasing cellphones today, where cell phone owners don’t own the products outright, instead paying a monthly fee that allows them to upgrade tech to the latest model when it becomes available A HaaS subscription service enables owners to control the cost of smart home technology, and these savings can be further maximized when strategically partnering with providers that help owners at every step of the process . Additionally, HaaS subscriptions can allow owners to collect rebates for energy efficiency and increase overall annual return on investment (ROI) and annual net operating income (NOI). This trend lets owners invest in solutions that meet their needs today and year after year

PRACTICAL BEATS PRETTY

While some multifamily residents might think a dog washing station or yoga studio is cool and attractive, data shows that modern renters are far more enticed by practicality . We live in an experiential economy which is why smart technology “checks the boxes” for today’s renters . Owners that have implemented smart property technology boast about the ease of managing their assets along with the increase in resident retention and acquisition rates across their portfolio . No matter the market landscape, smart technology automation will continue to provide owners with controlled costs and greater bottom-line revenue

Arize is an all-inclusive platform that provides convenient, connected, and secure living for properties of all kinds . From traditional apartment upgrades to new upscale luxury apartment builds, we help your community thrive effortlessly with cutting-edge technology. For more information, go to www arizehub com

griswold

Demand For RV & Boat Storage Facilities On The Rise

by Yardi breeze

RV and boat sales are on the rise In fact, they have been for years, quietly fueling an increase in suitable storage facilities . The pandemic further contributed to a surge in RV and boat purchases, which in turn caused a dramatic spike in the demand for storage . Today, more people are using RV and boat storage facilities than at any point since 2012 — and quite possibly at any point on record . But is the industry ready to accommodate the sudden surge?

QUICK HITS

• Demand for RV and boat storage facilities has increased due to a surge in RV and boat purchases

• There are approximately 800 completed RV and boat storage properties in the U .S .

• RV and boat sales hit new highs in 2021, with $157 7 million in RV/boat exclusive facilities sold

• Wholesale shipments of RVs increased 39 .5% from 2020 to 2021

• RV ownership has increased by more than 62% in the last 20 years, with a record 11 2 million households now owning RVs

INCREASED DEVELOPMENT & SALES

According to data from Yardi Matrix, which tracks self storage properties in the U . S . , the popularity of recreational vehicles (RVs) and boats soared in recent years At the peak of the pandemic in 202021, many people sought out ways to travel and enjoy themselves outdoors while avoiding crowds This led to an increase in demand for storage facilities, specifically designed for RVs and boats Now, there are approximately 800 RV and boat exclusive storage properties in the country, with more in the development pipeline

A LOOK AT THE RV STORAGE MARKET

In 2020 and 2021, RV and boat sales hit new highs . In 2021 alone, wholesale shipments of RVs reached a record 600,240, a 39 .5% year-over-year increase . To match the rising demand for storage, $157 7 million in RV/boat exclusive facilities were sold in that twoyear span . This is almost triple the previous record, which occurred in 2017 at $55 8 million

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A study by the Recreational Vehicle Industry Association (RVIA) found that RV ownership has increased by more than 62% over the last 20 years, with a record 11 .2 million households now owning RVs The study also found that 31% of respondents were first-time owners, indicating significant growth in the industry .

RV usage is no longer limited to older Americans, as a growing number of millennials and Gen Z are participating in the activity . The survey also found that 84% of 18-to-34-year-olds plan to buy another RV, with 78% preferring to buy a new model

A LOOK AT THE BOAT STORAGE MARKET

According to the National Marine Manufacturers Association (NMMA), new powerboat retail unit sales were expected to surpass 300,000 units for the second consecutive year in 2021 While these predictions were slightly lower than the record-high sales in 2020, they were still 7% above the five-year average The NMMA predicts that 2022 sales will surpass 2021 totals by as much as 3% .

“The pandemic created shifts in how Americans prioritize their time, and boating is an activity they’re doing with family and friends to escape from stresses on land, all while creating fun and adventure,” said NMMA president Frank Hugelmeyer

BRINGING IN THE BUSINESS

Now that we’ve reviewed the data, let’s look at some ways self storage operators can attract the business of RV and boat owners . We’ll focus on customer service, amenities, security and facility location

CUSTOMER SERVICE IS KEY FOR RV & BOAT FACILITY MANAGERS

It’s always important to provide a high level of service, and it matters even more for customers with large, expensive boats and RVs . Customers might want to have a look around your facility before entrusting you with their vehicle . So, take them on a friendly tour and prove that your service is second to none . In the offseason, you want to be top of mind when prospects and potential return customers are thinking again about storage

FACILITY MANAGERS NEED AMENITIES RV & BOAT OWNERS WANT

RVs and boats require special care If people can keep and maintain their vehicles on-site at your storage facility, you’re more likely to attract them as customers For RVs, consider amenities that you’d find at most RV campgrounds or mobile home lots. These include climate controls (especially for cold-weather storage), electrical hookups, waste management systems, a wash station, heavy-duty jacks for tire changes and basic on-site maintenance, etc . Some boats may be able to use those amenities as well, in addition to specialty boat lifts for cleaning and routine service .

PUT SECURITY MEASURES ON DISPLAY

Invite prospects to tour the facility and show them how you protect their possessions . While you’re at it, show off the property management software you use to stay connected with your customers They’ll appreciate the ability to easily contact you with questions, complete the leasing process and pay rent online .

Many storage facilities have adopted 24/7 selfservice access . With the right security measures in place, such as CCTV cameras, thermal sensors, smart locks, motion detectors and traceable keys, you can ensure a high level of security and privacy after hours .

BOAT STORAGE LOCATION MATTERS (BEST NEAR THE WATER)

The closer you are to water, the easier it will be for customers to haul their vehicle out of storage and set sail Obviously, you can’t just move your property waterside on a whim, but the boat scene has grown such that it might make sense to expand nearer to water, if expansion is in your plans .

Even if adding or changing locations isn’t possible, you can still adapt your marketing to meet the clients’ needs On your website in your listings, include maps and directions to nearby docks . Just make it clear that you’re engaged with the boating community and can cater to their needs

Yardi Breeze is property management software designed for you Our refreshingly simple platform puts you in charge of marketing and managing your entire portfolio, with support for residential, commercial, affordable, self storage, HOA/condo and manufactured properties Rest easy knowing your reports are accurate with Yardi’s trusted, built-in accounting system to track your revenue and expenses . And since Breeze is in the cloud, you can work from anywhere and get fantastic support when you need it .

NEW CALIFORNIA TENANT SCREENING LAW: HERE’S WHAT IT MEANS FOR LANDLORDS AND RENTERS

By Ian Riley for Contemporary Information Corp.

Anew year comes with a multitude of new things, and the rental housing industry is no exception With the passing of California’s Assembly Bill No . 2559, effective January 1st, 2023, an existing consumer report ordered by a landlord on a prospective tenant can now be redefined as a reusable tenant screening report . So, what exactly does this mean?

Simply put, an applicant’s report can be reused for the application process within 30 days of purchase The furnished report must comply with all state and federal laws pertaining to the use and disclosure of information used in the tenant screening process and must include all specified information as outlined, including, but not limited to: full legal name, verification of employment/income, previous addresses and last known address, the

results of a housing record history check (consistent to applicable law), any records that may exist of the applicant’s criminal history, etc .

The benefits of reusable tenant screening reports are not one-sided .

• First and foremost, the acceptance of a reusable tenant screening report by the landlord is entirely optional, and the landlord must be opted in if proceeding with a reusable tenant screening report . Opting in is not a requirement for the tenant screening process

• Use of a reusable tenant screening report expedites the tenant screening and application process if the applicant is applying to multiple properties and mitigates the expense of the tenant paying multiple fees per property applied for .

• While the initial cost of obtaining the report from a consumer reporting agency is at the request and expense of the applicant, the option for reuse comes at no additional cost to the landlord or applicant, and the landlord is prohibited from charging an application fee to access or view the report .

• The 30-day reuse period allows for the most up-to-date and current information on the applicant if the timeframe is exceeded while the applicant is still applying to properties This also gives agency and incentive to the applicant to complete the process in a timely manner

• Reusable tenant screening reports must still contain all prescribed information required for the application, the same as any consumer report ordered for the purposes of renting a property

• For convenience, reusable tenant screening reports can be ordered and provided through third-party screening providers, which regularly engages in the business of providing a reusable tenant screening report

While the list of pros is substantial, existing landlords considering proceeding with reusable tenant screening reports may be wondering – “Are there any cons I should be aware of before opting in and accepting a report this way? And what should I be prepared for?”

Like any bill newly signed into law, any unintended consequences associated with Assembly Bill 2559 remain to be seen For instance, one could ascertain that a byproduct of prohibiting the charge of additional fees by a landlord who traditionally imposes an application/processing fee to cover any

additional expenses other than the cost of obtaining the report means forfeiting the landlord’s autonomy to impose such a fee, and that additional cash flow as well . Landlords who opt in will need to amend their screening process to remove said fees .

Section F of the bill also asserts that if an ordinance, resolution, regulation, administrative action, initiative, or other policy adopted by a city, county, or city and county conflicts with this section, the policy that provides greater protections to applicants shall apply In some cities and counties, these local laws can prohibit rental owners from considering their applicant’s criminal report, even if it’s on a reusable report Landlords will also have to accept different formats of the report, as not all screening companies were created the same – one might source their data differently than another with different accuracy rates, primarily use FICO instead of VantageScore in credit reporting and vice versa, etc .

As more landlords and property managers accept reusable tenant screening reports, we’ll be able to see more definitively how and if that changes the leasing process in California While the provisions in Assembly Bill 2559 are optional now, it’s important to keep your eyes peeled for legislation that could aim to make it required

Ian Riley is the Content Strategist at Contemporary Information Corp. (CIC). When he’s not working, Ian can usually be found recording and producing music, playing video games, spending time with his daughter, and continuing his never-ending search for the strongest coffee in town. This article has been contributed by CIC. CIC and ApplyConnect are the preferred tenant screening service providers of the Apartment Association of Greater Los Angeles . For more information, go to https://aagla . org/cic-apply-connect .

5 WAYS TO TARGET UTILITIES TO DRIVE DOWN MULTIFAMILY OPERATING COSTS

How can you get your tenants to use utilities more responsibly and reduce your property’s expenses? As a building owner or property manager, you can take steps to facilitate smarter utility use on your properties, and get your tenants involved in utility saving . Here’s how .

REPLACE OLD, INEFFICIENT APPLIANCES

There are simple changes you can make on your properties that will reduce utility bills . According to the Department of Energy, the average household saves about $225 in energy costs per year just by using LED lighting . It’s reported by the EPA that the average family can save $130 in a year by replacing inefficient toilets at home with WaterSense labeled models .

SHARE CONSERVATION TIPS WITH YOUR TENANTS

Education is a powerful tool in conservation . Let your tenants know about the everyday actions that they can take to save water and energy . As the EPA noted, just one person turning off the tap while they brush their teeth and shave (assuming they brush twice a day and shave 5 times a week) could save 5,700 gallons of water per year!

ALLOW TENANTS TO TRACK THEIR UTILITY USE

When tenants are aware of monthly utility costs, they are better informed as they make decisions on their utility usage . As a result, they are further motivated to conserve utilities and they end up using water and electricity more carefully This motivation extends

to reporting faulty appliances that waste utilities like leaking toilets . This is no small feat since in a week alone, the average household wastes 180 gallons of water just through leaks .

INVEST IN SMART TECHNOLOGY

Don’t be scared off by the word ‘invest’, smart devices and systems are not always expensive and they can be incredibly quick and easy to implement . Take Livable’s Net Zero billing program for example It’s a system that allows tenants to see the costs associated with their utility consumption, even when utilities are included in their rent . This system is able to detect and immediately notify clients of water usage spikes, and has helped identify numerous water leaks

BILLING IS BEST. OFFSET YOUR COSTS WITH RUBS

Billing residents is perhaps the greatest incentive for tenants to conserve utilities . With a ratio utility billing system (RUBS), property owners can reduce tenant water use and energy consumption while passing the costs of utilities used by residents to the residents Alliance for Water Efficiency reported that utilities who installed meters observed a 15 to 30% reduction in water consumption Separately, a CBRE study found that an effective submetering program generates energy savings of up to 21% At Livable, we’ve observed that housing providers that implement RUBS regain close to 90% of their water and energy costs . It’s important to work with billing experts to ensure that you comply with any and all guidelines in place, and get the most out of whatever billing system you choose

Livable is a full-service residential & commercial real estate billing partner Focusing on bulk amenity/utility billing, our mission is to promote savings and conservation through education Our suite of cloud services and end-to-end solutions helps to reduce monthly consumption, overall expenses and adds more money to your bottom line . To learn more, visit livable .com .

Contributed by the Livable Content Team

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Holland Partner Group ....... . ...... . (360)940-0251

Homes Management, ATS Homes, Inc (760)432-4663

Horizon Properties Management Service(619)482-3054

Humphreys Residential . . . . . . . . . . . . . . (619)865-0389

IPI Property Management (858)277-2700

Iconic on Alvarado | BH Management Services (619)286-3990

(951)461-3264

(858)560-9363

(206)582-3333

(619)471-1755

(619)855-5241

(619)892-8722

(619)465-9934

(619)475-2470

(619)220-8595

(801)716-5795

(619)920-7174

Income Property Advisors Inc (858)279-1500

Interfaith Housing Assistance Corporation(619)668-1532

J

JHB California Properties, LLC (760)722-6421

Jensen Properties (858)449-7294

Johnston Property Management, Inc. (760)944-0703

K

KFR STAR Realty (619)293-7653 L

Leonero Properties (619)273-4350

Liberty Military Housing (858)874-8100

People Helping Others Prop. Mgmt (619)282-5400

Pierside North | Greystar (949)202-3991

Pierside South | Greystar (760)433-3500

Premier Real Estate Management, Inc (619)632-6852

Professional Real Estate Management (619)297-7736

Providence Real Estate Management Corporation (760)525-8705

R

R A Snyder Properties, Inc (619)297-0274

REC Properties| Peasquitos Point Apts (858)484-5047

RG Investment Real Estate Services Inc (858)268-5004

Real Property Management (760)434-1791

Rehmann Realty Group (619)440-5669

Richman Property Services (813)262-0401

River Oaks |Waterton Residential (760)721-8585

Rohn Properties Management (619)990-7433

Rolling Hills Gardens | Greystar... . . . . . (619)482-7583

S

SD Rent Pros (619)884-0906

STYL Residential ....... . ....... .. . . . (678)478-7707

San Diego Housing Commission (619)578-7531

San Diego Realty Services (619)713-1044

Sardo Properties . . . . . . . . . . . . . . . . . . . . (619)405-9418

Scott Management Company (310)370-2696

ScottWay Capital (619)209-3544

Sea West Property Management . . . . . . (760)787-6035

Shapell Properties, Inc (323)988-7590

Skyline Management Group, Inc (310)246-4750x818

South Bay Community Services.. . . . . . (619)420-3620

Southwest Equity Partners (760)419-5300

Stafford Property Group (619)957-7326

Sudberry Properties, Inc......... . . . . . . (858)546-3000

Summit Realty and Management (619)423-3023

Sun An Sea Property Mgmt. ..... . . . . . (619)298-4160

SunRidge Properties, Inc (858)578-3600

Sunrise Management Company AMO (858)751-1768

Buchanan Property Management Corp

(619)269-0276 C

CASAVIDA

(858)454-8857

Cambridge Management Group, AMO (619)497-0771

Campus Village 1, 2 & 3 | 6 Star Properties . .. ... . . . ..... . .. .. . .. . .. .... .. ... .

(619)583-3339

Chase Pacific Property Management and Real Estate Services

(858)271-8841

Choice Properties / Point Loma Real Estate

(619)223-4075

Cirrus Asset Management, Inc.... . ... . (818)222-4840

City View Apartments|Greystar

Community Research Foundation, Inc.

Core Property Group

(619)234-0134

(619)275-0822

(619)399-7279

Cushman & Wakefield . .. . ........ . . . (949)224-2929

D

Delta Property Management .... . .... .

Douglas Allred Company

(619)465-5851

(858)793-0202

E Eagle Glen Apartments | Greystar (951)461-4565

Elevate SD Properties

Elite Property Management

Logan Property Management ........ . (619)260-5562

Lyon Living (949)838-1274 M

MG Properties ....... . .......... . . . . (858)658-0500

Maya Linda Apartments (858)566-5350

Melroy Asset Management (858)483-5111

Mira Bella Apartments | Simpson Property Group (858)560-5720

Modera San Diego | Mill Creek Residential .... . ... . .......... . .... . . . .... . .. . (619)500-8509 N

Nick Pappageorgio Company (858)357-9472

Noah Realty (858)504-0416

Ocean Breeze Apartments|Greystar (619)428-3369

Olympus Property (858)268-8858

P

(619)535-8112

(619)823-3712

Pacific Commercial Management, Inc (858)450-6886

Parkdale Apartments | Norco Mgmt. Corp .... . ... . .......... . .... . . . .... . .. . (760)737-9017

Pasas Properties, Inc (619)607-7560

Paul Langley Company (415)431-9104

Team Bourda Incorporated (619)851-3784

Thatcher Properties, Inc (619)286-4250

The Dylan | Afton Properties . . . . . . . . . . (760)439-2752

The Helm Management (619)589-6222

The Phillips Group- Property Management (619)407-8729

The Premiere Residential, LLC (858)455-7711

The Rey Apartments | Berkshire Communities ........ . .......... . .... . . . .. . . . . . . (408)614-5587

Torrey Pines Property Management (858)454-4200

Urban Coast Properties, Inc. ..... . . . . . (619)797-6733

Valentina by Alta (619)391-2700

Valor Property Management . . . . . . . . . . (619)771-2600

VandenBerghe Properties (925)819-1009

Whispering Oaks Apartments | Greystar (760)471-1262

Willin Properties (619)298-0500

Z Zimmerman Property Management. . . . (619)546-5361

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Apartment News Publications

Effortless Ads ....................... (214)952-9862

APARTMENT BROKERAGE/SALES

Doug Taber CCIM - Rental Housing Broker ................................... (619)483-1031

CARPET SALES & FLOORING

America’s Finest Carpet Company (800)888-1568

J & C Carpet Company (619)498-1424

Sid’s Carpet Barn, Inc. (619)477-7000

KJ Carpet Wholesale (909)455-0180

CLEANING & JANITORIAL SERVICES

Cleanology Housekeeping Personnel Service

(619)281-2532

Atlas Property Service (858)386-4578

DAPA Janitorial Services Inc. “Customized Cleaning

Soultions” (619)221-9292

Pacific Coast Cleaning, Inc. (858)565-1603

SD Construction Cleaning & Janitorial LLC

(619)534-1189

Professional Maintenance Systems, Inc. (619)276-1150

COIN-OPERATED LAUNDRY EQUIPMENT

All Valley Washer Service ............. (800)247-1100

WASH Multifamily Laundry Systems (858)279-1234

Washtek, Inc. (760)735-2495

PWS Laundry/Alliance (323)490-1868

COLLECTIONS

Kimball, Tirey & St. John LLP (619)234-1690

COMMUNITY SERVICES

BRILLIANT CORNERS............... (213)232-0134

CONSTRUCTION MANAGEMENT

Southern Cross Property Consultants (858)945-2629

CONSTRUCTION & REMODELING

Larry O’Dell Construction............. (619)501-5252

Matrix Construction Services (951)493-0100

Workright Property Services Inc (858)751-6312

Dexcore Restoration ................. (619)993-3417

ASPHALT & ASPHALT MAINTENANCE

AMS Paving, Inc.....................

ATTORNEYS-AT-LAW

Heinz & Feinberg

Todd A. Brisco & Associates, APC .....

Kimball, Tirey & St. John LLP

BACKFLOW TESTING

Pacific Backflow Company, Inc.

San Diego Backflow Testing, Inc.

BALCONY INSPECTIONS

Pacific InterWest

BANKS

Banc of California

(858)880-6133

(619)238-5454

(714)634-2814

(619)234-1690

(760)639-4000

(877)363-8378

657-276-1629

(858)320-8410

BATHROOM REMODELING & REFINISHING

American Bathtub Refinishers......... (619)265-9200

BROKERAGE

Doug Taber CCIM - Rental Housing Broker

CABINET AND COUNTERTOPS

Grand Design Kitchens

Cabinets And More

CARPET CLEANING

(619)483-1031

(760)789-0992

(858)231-8532

Cleanology Housekeeping Personnel Service

(619)281-2532

Cambridge Maintenance and Property Services, Inc. (619)320-8334

Chameleon Contractors Inc.

McMillin Contracting Services......... (619)401-7000

DECK COATING

Life Deck Coating Installations (619)262-8600

General Coatings Corporation . . . . . . . . (619)707-2639

DRAWERS & DRAWER PULLS

TASORO (310)882-9747

ELECTRICAL CONTRACTORS

Kennedy Electric .................... (619)582-6568

EMERGENCY SERVICE FLOOD/ FIRE

ATI Restoration, LLC (619)318-2807

ENERGY EFFICIENCY CONSULTING

ICF ................................ (703)218-2652

ENVIRONMENTAL: ASBESTOS/ LEAD/ MOLD

BELFOR Property Restoration (858)847-9886

Alliance Environmental Group, LLC . . . . (626)633-3500

EVICTIONS

Kimball, Tirey & St. John LLP (619)234-1690

FINANCIAL SERVICES

Taxable Wealth...................... (858)221-7521

FIRE EQUIPMENT SALES & SERVICE

Symons Fire Protection (619)588-6364

Standard Electronics (619)596-9950

CVA Security (619)585-9111

Time and Alarm Systems (951)685-1761

FITNESS EQUIPMENT & SALES

Advanced Exercise (303)996-0048

Opti-Fit (888)601-4350

FLOOD DAMAGE

BELFOR Property Restoration . . . . . . . . (858)847-9886

Citiwide Restoration . . . . . . . . . . . . . . . . . (858)231-2801

FLOOR COVERINGS

Redi Carpet Sales of California , LLC (858)576-8400

Star Flooring & Remodeling 619-282-4000

FURNITURE RENTALS

Cort Furniture Rental (858)549-0800

GENERAL CONTRACTORS

McMillin Contracting Services (619)401-7000

BELFOR Property Restoration (858)847-9886

BluSky Restoration Contractors, LLC (619)398-0200

Camp Construction Services . . . . . . . . . (713)413-2267

FSI Construction . . . . . . . . . . . . . . . . . . . . 713-690-5330

M. C. Contracting Service (619)282-3083

HEATING & AIR CONDITIONING

Sam’s Heating and Air Conditioning, Inc.(619)697-9824

INSURANCE

Farmers Insurance McWhirter Agency (619)463-7320

Snapp & Associates Insurance Services, Inc. (619)908-3100x165

LeaseLock (310)906-2900

State Farm Insurance Kathy Jurgensen (619)847-8306

Pro Specialty Insurance Services ...... (888)558-4776

INTERIOR FINISHES

Four Pillars Lighting, Plumbing & Furniture(619)990-1921

INTERNET ADVERTISING SERVICE

RAPIDSOFT SOLUTIONS (619)752-4929

INTERNET SERVICE PROVIDER

Cox (858)836-7582

Dish Fiber (951)201-3544

Quantum Fiber (360)931-9864

KITCHEN REMODELING

Kitchen Tune-Up of North San Diego (858)206-9602

McMillin Contracting Services......... (619)401-7000

LANDSCAPE MAINTENANCE & SERVICE

MSE Landscape Professionals, Inc. (442)257-4229

New Way Landscape and Tree Service (858)505-8300

Pacific Green Landscape, Inc. (619)820-6614

LEAK DETECTION

Cable, Pipe & Leak Detection, Inc. (619)873-1530

LENDERS

Luther Burbank Savings (310)616-0356

MAINTENANCE & REPAIR

PCC Trip Hazard Removal............ (760)658-6116

Surface Experts Central San Diego . . . . (858)926-4041

MAINTENANCE SUPPLY

HD Supply (800)431-3000

AZP Multifamily (888)924-7278

MARKET RESEARCH

ALN Apartment Data (800)643-6416

MOLD INSPECTIONS & REMEDIATION

BELFOR Property Restoration

MUSIC LICENSING

BMI

ODOR CONTROL

Aire-Master of Coastal California

(858)847-9886

(410)527-1076

(858)342-5353

PAINT MANUFACTURERS & SUPPLIES

Dunn-Edwards Corporation

Sherwin-Williams Co.

PAINTING

General Coatings Corporation

Pro-Tech Painting Company ..........

(619)884-3866

(714)404-8212

(619)707-2639

(858)527-0200

PARKING MANAGEMENT SOFTWARE

Reliant Parking Solutions .............

PAVING MAINTENANCE

Eagle Paving

PEST CONTROL

Lloyd Pest Control

Kilter Termite and Pest Control

ATCO Pest Control

PLUMBING SUPPLIES

Lixil Water Technology Americas

PROPERTY MANAGEMENT

Wakeland Housing & Development

Rowland Realty

(888)977-6848

(858)486-6400

(800)570-2847

(714)348-0488

(415)898-2282

(760)215-5803

(619)235-2296

(619)540-2727

PROPERTY MANAGEMENT PERSONNEL

BG Multifamily

InterSolutions

The Phoenix Staffing Company

(619)785-3164

(619)804-2554

(855)222-4136

PROPERTY MANAGEMENT SOFTWARE

AppFolio ...........................

(866)648-1536

Yardi Systems (805)699-2040

SafeRent Solutions

REAL ESTATE

(419)367-7615

ACI Apartments Office ............... (619)299-3000

Voit Real Estate Services . . . . . . . . . . . . . (858)453-0505

Lee & Associates Commercial RE (760)929-7845

Covest Properties Inc. (760)214-9240

RENOVATIONS & REMODELING

McMillin Contracting Services

REPIPING

(619)401-7000

National Renovations, LLC - DBA Repipe Specialists, Inc (703)801-8269

RESIDENT RETENTION

Parcel Pending ................ (949)490-6987

RESIDENT SURVEYS

SatisFacts Research (866)655-1490

ROOFING

Commercial & Industrial Roofing (619)465-3737

Sully-Jones Roofing (800)611-3110

A-1 All American Roofing Company (858)537-5177

SECURITY GUARD PATROL

Security First ....................... (619)243-3992

Securitas Mobile Guarding ........... (619)214-4919

SECURITY SERVICES

California Safety Agency (866)996-6990

City Wide Protection Services, Inc (619)938-2333

JDS Security (619)781-8694

Stealth Monitoring (760)399-7194

SEISMIC RETROFIT

Optimum Seismic ................... (562)298-6395

SMART TECHNOLOGY

ADT Smart Communities (714)858-1344

Ivy Energy (801)318-7803

Hotwire Communications (954)809-9577

Armada Power (909)730-6509

SUBMETERING / BILLING SERVICES

Conservice Utility Billing & Mgmt . . . . . . (602)481-7440

TOWING SERVICES

Western Towing (619)297-8697

TRAUMA SCENE CLEAN UP

BELFOR Property Restoration (858)847-9886

TREE SERVICES

Four Seasons Tree Care.............. (760)705-7751

WASTE MANAGEMENT

WasteXperts, Inc (206)496-9289

Strategic Sanitation Services.......... (877)271-7909

WATER DAMAGE RESTORATION

Commercial Restoration Company (720)427-2932

BELFOR Property Restoration . . . . . . . . (858)847-9886

Generation Contracting & Emergency Services, Inc. (858)679-9928

Restoration Management Company ... (858)935-1170

Hometown Restoration (858)663-8330

First Onsite (858)880-5419

Servpro San Diego SW . . . . . . . . . . . . . . (619)643-2145

WATERPROOFING

General Coatings Corporation (619)707-2639

WINDOWS

Newman Windows and Doors (760)809-8113

SECURE RENTAL FORMS

SECURE RENTAL FORMS

Worried about signing rental documents when you can't meet in person? SCRHA has several ways to electronically share and sign our forms.

Worried about signing rental documents when you can't meet in person? SCRHA has several ways to electronically share and sign our forms.

BlueInk

BlueInk

This gives you access to SCRHA forms in a digital format with electronic signature capabilities.

This gives you access to SCRHA forms in a digital format with electronic signature capabilities.

CIC information about your applicant, while keeping you compliant with all legal requirements.

CIC information about your applicant, while keeping you compliant with all legal requirements.

socalrha.org

socalrha.org

FAMOUS FOR

Professional Delivery, Installation, & Haul Away

Property Management & Commercial Accounts Welcome

100’S

MODELS

CHECK OUT THE OPEN BOXES, DISPLAY MODELS, AND DISCONTINUED ITEMS FOR FAMOUS SAVINGS!

Famous for Customer Value since 1974!

Trusted for “On Time” service for 37 Years!

Providing the Multi-Unit Housing community with value and service

Experienced Associates to assist you with: Brand name products, sales, selection, and service

The Right Product, for the Right Application to Rent that empty unit, or complete your home’s remodel!

Most items available for same- day will call, or order by noon-have it delivered the next day!

4070 Kearny Mesa Road, San Diego, CA 92111

Phone: (619) 236-0616 (ask for Joan)

E-Mail:Joan@aztecappliance.com

Mon.-Fri. 8:30am-5:30pm

Sat. 10am-4pm

LAUNDRY ROOM, REFRIGERATORS & FREEZERS, MATTRESS SETS, COIN-OPERATED WASHERS, DRYERS, DISHWASHERS, DISPOSERS, TRASH COMPACTORS, RANGES, OVENS, COOKTOPS, VENTILATION, OUTDOOR APPLIANCES, WATER HEATERS & ACCESSORIES

VALUE OUTREACH ADVOCACY

VALUE

Recognized resource hub that inspires diverse membership growth & engagement from all sectors of rental housing

The ultimate resource for all things related to rental housing

ADVOCACY

Rental housing friendly public policy & elected and appointed officials

OUR VISION

Reenvisioning quality housing for all

OUR MISSION

To create a thriving rental housing community through advocacy, education, and collaboration

Robust funding for rental housing policy creation

Character & integrity that negates need for regulation

OUTREACH

People coming to SCRHA for opinion, advice, knowledge, & expertise

Rental housing providers are recognized as valuable & essential members of the community

STRATEGIES

Presence in the community

Resource hub

Product and program diversification

STRATEGIES

Strategic alliances

Fundraising

Set strategic priorities

STRATEGIES

Visibility & prominence

Collaboration