Southern California Rental Housing Association Rental Advisor Magazine - November Issue

OURVISION

SCRHAHousingProvider&Resident RightsandResponsibilities

AsmembersoftheSouthernCaliforniaRentalHousing Association,wearepartnersincreatingathrivingcommunity byprovidingqualityrentalhousingforall.Wevalueour residents,ourfellowmembers,andourcommunityandare workingtosupportahealthyhousingecosystemthrough advocacy,education,andcollaboration.

Ashousingproviders,webelievewehavetheresponsibilityto provideCaliforniarenterswith:

Qualityhousingwithhabitableandhealthylivingconditions. Freedomfromarbitraryeviction,retaliation,or discriminationinlinewithallfederalandstatefairhousing laws.

OURMISSION

Fairandequalresidentprotectionsandpoliciesthatbalance theneedsofrenters,housingproviders,andthecommunity. Avoiceinhousingdecisionswithrespectandaccessequal tothatofhousingproviders.

Aninnovativeandcollaborativehousingecosystemwhere government,businesses,housingproviders,andrental advocatesworktogethertosolvetheregion’shousingissues byidentifyingtheunderlyingproblemsandcrafting balancedsolutions.

Adherencetohousingqualityandequitystandardsand regulations.

AllCaliforniarentersalsohavearesponsibilitytotheirhousing providerto:

Reviewandfollowrentalagreementterms,includingtimely rentalpayments.

Maintainacleanandhabitablehome. Beagoodneighborbyrespectingothers’peaceandquiet. Providetimelyreportingofanyissuesandnecessaryrepairs. Keepopenlinesofcommunicationwiththepropertyowner ormanager.

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2022 OFFICERS

President Lucinda Lilley, Bridging In uence

President Elect

Abigail Rex, American Assets Trust

Vice President

Todd Henderson, Independent Owner

Secretary

Shannon Kelly, Independent Owner

Treasurer Aiesha Blevins, Greystar

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ASSOCIATION STAFF

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

Lucinda Lilley

2022 President Southern California Rental Housing Association

Mark of Excellence Awards Ceremony

Allison P ster,

Legislative Chair Greystar

Immediate Past President

Kendra Bork, Cambridge Management Group, Inc.

2022 DIRECTORS

Buck Buchanan, Independent Owner

Jay Lopeman, AZP Multifamily

Jennifer Ford, Douglas Allred Company

John LaRaia, HG Fenton

Mark Feinberg, Heinz & Feinberg

Matt Ruane, Liberty Military Housing

Melissa Wickerd, Natasha Howell, Millcreek, WTS Trust

Scott Ledesma, Generation Contracting & Emergency Services Inc.

Tom Tamar, Independent Owner

HONORARY LIFE ADVISOR

G.Wesley Harker

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 Coordinator llee@socalrha.org 858.751.2218

Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070

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As I look forward to a night of celebration at the Mark of Excellence Awards Ceremony on December 2 and the passing of the torch at the Board Installation on December 15, I can’t help but reflect on where we were two years ago and where we are going as we head into 2023 and beyond.

When I first took my oath and was installed as President, COVID dominated both the news and our operations. It seemed like ordinances and legislation changed every day and our residents needed more support than ever. Day in and day out, I saw my team and SCRHA members balance the needs of their residents with the demands of quickly changing ordinances and legislation in response to the crisis.

In times of stress and challenge, it can be a helpful exercise to take a moment (or several) of reflection to see what opportunities may be hidden just under the surface. The past two years have presented MANY chances to reflect on hidden opportunities. One truth that became impossible for me to overlook was the essential nature of what we do as housing providers and how it ripples out into the community.

To this day, I am still so proud of how housing providers responded to a public health crisis that put unprecedented strain on all aspects of daily life from daily schedules and finances to personal and professional relationships. For me, it was incredible to watch our community of housing providers continue to go above and beyond to provide housing during such a tumultuous time. For me, it crystalized something I had known for a long time; housing providers are essential to the well-being of a community.

As that realization grew and became increasingly

apparent, it became a discussion point with the SCRHA Board of Directors. It was a motivating factor as we adopted a new mission, vision, and strategic plan. With this new direction, we boldly state to our members and the community that we are dedicated to providing quality housing for all and will work towards that goal with education, advocacy, and collaboration.

An important first step in strengthening our ecosystem is the adoption of the SCRHA Housing Provider and Resident Rights & Responsibilities. Living and operating by these guiding principles shows our residents and elected representatives that we care deeply about the health of the housing ecosystem. It also puts on to paper the extraordinary service that our members provide to create communities that people call home.

As I close this month’s message, I congratulate all the incredible Mark of Excellence Nominees. You strengthen the ecosystem and set the Mark of Excellence through all your efforts. It has not gone unnoticed and you are part of what makes living and working in Southern California so wonderful. I look forward to celebrating with you on December 2 at the Mark of Excellence Awards.

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

Alan Pentico, CAE

Executive Director Southern California Rental Housing Association

Advocating for the Rental Housing Industry

Southern California Rental Housing Association has a long history of advocating for the rental housing industry. From our founding in response to the People’s Ordinance of 1919, Southern California Rental Housing Association has spoken out for rental housing providers throughout the decades. Our advocacy efforts included the “No on O” rent control ballot initiative in 1980, No on Proposition 10 in 2018, and the defeat of Measure W in 2018, a local rent control measure in National City. Our robust advocacy efforts continue to this day at all levels of government.

One thing that has changed since our early days of fighting rent control in the 1980s is that fastmoving, emergency regulations are becoming more of the norm as elected officials struggle to respond to current events. These emergency regulations are often enacted with little notice from the politicians and often create unclear endpoints and divert critical resources from longer-lasting solutions.

You may have recently received a request to donate to the Industry Defense Fund, so I wanted to share what we do with the funds raised and how we use it to support the rental housing industry. The Southern California Rental Housing Association established the Industry Defense Fund in 2018 to give us the ability to respond quickly and effectively to challenges.

The Industry Defense Fund allows the Association to move quickly to do research, poll the community, hire consultants or experts, and much more when confronted with onerous regulation. The world of policy making is much more sophisticated than in years past and data driven, and the funds help us keep up. It also allows the Association to support

organizations and efforts that address housing supply and promote rental housing.

Right now, the rental housing community faces challenges from multiple jurisdictions as city councils respond to pressures from tenants’ rights groups with rushed legislation rife with unintended consequences. Your contributions to the Industry Defense Fund will give us the flexibility to respond to these challenges and ensure that the voice of our industry is heard loud and clear.

The Industry Defense Fund is what allows us to speak as one impactful voice for the rental housing industry. Please support our efforts not only through a donation but be sure to sign up for Action Alerts and share your perspective with our elected officials.

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.

Southern California Rental Housing Association has been a steadfast advocate for rental housing providers for more than 100 years, and we aren’t giving up the fight.

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.

Scan the QR code to contribute to the Industry Defense Fund.

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

San Diego

CAPITOL NEWS California

By Aaron Reed & Associates, SCRHA's Lobbyist

Governor Signs New Laws Impacting Rental Housing & Businesses

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.

Governor Newsom recently signed several rental housing and businessrelated bills into law. The laws take effect January 1 unless otherwise specified. Learn more about these new laws below.

AB 1738 (BOERNER HORVATH) – EV CHARGING STATIONS

AB 1738 requires mandatory building standards for the installation of electric vehicle charging stations within existing multifamily dwellings, hotels, and motels. While a direct mandate as introduced, SCRHA opposition caused the author to amend slightly to require the state to research and develop mandatory installation standards for future adoption, likely meaning costly retrofits for rental properties at some point.

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.

AB 2559 (WARD) – REUSABLE SCREENING REPORTS

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

As introduced, the bill created a process for acceptance by a landlord of a “reusable tenant screening report.” However, the bill was unclear as to whether it was voluntary. However, the author has amended the bill making clear that AB 2559 is voluntary and encourages tenants to post the reusable screening report to an independent third party on-line. The amendments eliminate notice requirements on the part of the landlord as well.

SB 1017 (EGGMAN) – DOMESTIC VIOLENCE

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.

This bill makes a landlord or agent liable to the tenant for actual damages and statutory damages of not less than $100 and not more than $5,000 in a civil action for violation of existing domestic violence laws. This bill also prohibits a landlord from terminating or failing to renew a tenancy based on an act of abuse or violence against a tenant, a tenant’s immediate family member or a tenant’s household member. The bill would make a landlord’s violation of those provisions an affirmative defense to a cause of action for unlawful detainer that is based upon an act of abuse or violence against a tenant, a tenant’s immediate family member, or a tenant’s household member.

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.

SB 1477 (WIECKOWSKI) – ENFORCEMENT OF JUDGMENTS: WAGE GARNISHMENT

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

SB 1477 will slash the allowable wage garnishment to 0% for $24.38/hr. or less wage earners, needlessly exempting them from any wage garnishment, and making them judgment proof. In $17/hr. minimum wage localities, $27.63/hr. wage earners would be completely exempt. This exemption is not need-based and would apply to all debtors based on individual pay, no questions asked. This exemption would apply to high-income tenants, including those tenants who did not pay the rent and who refused to apply for state assistance.

AB 2188 (QUIRK) – DISCRIMINATION IN EMPLOYMENT: USE OF CANNABIS

This bill, on and after January 1, 2024, will make it unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment, or otherwise penalize a person, if the discrimination is based upon the person’s use of cannabis off the job and away from the workplace, except for preemployment drug screening, as specified, or upon an employer-required drug screening test that has found the person to have nonpsychoactive cannabis metabolites in their hair, blood, urine, or other bodily fluids. The bill exempts certain applicants and employees from the bill’s provisions, including employees in the building and construction trades and applicants and employees in positions requiring a federal background investigation or clearance.

AB 1949 (LOW) – EMPLOYEES: BEREAVEMENT LEAVE

Requires private employers with five or more employees and public sector employers to provide employees with at least 30 days of service up to five unpaid days of bereavement leave upon the death of a family member. If an employer has an existing leave policy providing for less than five days of paid

bereavement leave, the employee shall be entitled to no less than a total of five days of bereavement leave, consisting of the number of days of paid leave under the existing policy, and the remainder of days of leave may be, but are not required to be, unpaid.

ACCESSORY DWELLING UNITS

SCRHA supported AB 916 (Salas), a bill sponsored by our statewide partner, CalRHA, as well as two other Accessory Dwelling Unit (ADU) bills, SB 897 (Wieckowski) and AB 2221 (Quirk Silva). The bills will help streamline the ADU approval process.

USE OF THE TERM LANDLORD

SCRHA supported a bill sponsored by our sister association in Orange County that seeks to address the use of the term “landlord” in state code. AB 2503 (Garcia), if signed by the Governor, will require the California Law Revision Commission to, on or before December 31, 2024, deliver to the Legislature a study regarding the establishment of consistent terminology across the California codes to describe the parties to an agreement, lease, or other contract for the rental of residential real property.

Visit socalrha.org/news for future updates!

The California Air Resources Board (CARB) in September unanimously voted to prohibit the sale of natural gas-fueled water heaters and furnaces for homes and buildings by 2030. The rule does not apply to gas stoves or cooktops.

California is the first state in the US to impose such a rule for new homes. Already 50 cities in California have adopted similar bans on gas furnaces or water heaters. CARB believes the policy will help California meet its goal of having a carbon-free electrical grid by 2045.

The City of Encinitas adopted its green building ordinance in 2021 prohibiting most new construction from using fossil-fuel to power heating and electricity systems and requiring new buildings to install photovoltaic systems. The City of San Diego announced in August as a part of its Climate Action Plan that it will introduce an ordinance next year that will require all new and existing homes and buildings to install carbon-free heating and electric systems by 2035.

RIVERSIDE STATE ASSEMBLY AND SENATE CANDIDATES DISCUSS ISSUES AT FORUM

The Murrieta-Wildomar Chamber of Commerce and the

Southwest Riverside County Association of Realtors (SRCAR) cohosted a candidate forum on September 27. The forum included candidates running for the 63rd and 71st Assembly Districts and the 32nd Senate District.

All of California’s local, state, and federal districts were changed significantly because of the 2020 Census and California’s redistricting process. The 63rd Assembly District (AD-63) now covers the cities of central and western Riverside County like Norco, Corona, Temescal Valley, Lake Elsinore, and Menifee and the unincorporated areas of El Sobrante, March Air Force Base, Lake Mathews, Lakeland Village, Woodcrest, and Warm Springs. The 71st Assembly District (AD-71) is a new district created by CA’s Redistricting Commission. AD-71 covers South Central Orange County cities of Trabuco Canyon, Mission Viejo, Cota de Caza, and Rancho Mission Viejo and covers the Southwest Riverside County cities of Wildomar, Murrieta, Temecula, and the Temecula Valley Wine Country. California’s 32nd Senate District (SD-32) is geographically one of the largest districts in the state stretching from Orange County deep into San Diego’s East County and the deserts. SD-32 northern boundary includes the cities of Brea, Chino Hills, Yorba Linda, and Woodcrest going south and east covering the cities Lake Elsinore,

Wildomar, Murrieta, Menifee, and Temecula into eastern and southern San Diego County covering Borrego Springs, Julian, and surrounding unincorporated areas. The final maps for state Assembly, state Senate and Congressional Districts can be accessed here, https:// www.wedrawthelinesca.org/final_maps

Candidates who attended the forum included AD63 candidates Bill Essayli and Fauzia Rivzi, SD-32 candidates Brian Nash and Kelly Seyarto, and AD71 candidate Matt Rahn attended, competitor Kate Sanchez did not participate in the forum. Candidates did not debate but were asked questions about their background, why they were running for state office, and what were their top priorities and positions on issues affecting business and housing affordability.

AD-63 Republican candidate Bill Essayli is a former county and federal prosecutor and small business owner and is the son of Lebanese parents who immigrated to the United States. Essayli alleged California state government as corrupt and too large. His priorities are returning control to local governments, restoring public safety, tackling crime, and giving parents more authority in school board decisions. Democrat candidate Fauzia Rivzi is an engineer and a Board member of the Western Water Municipal District and Riverside Community College District. Rivzi immigrated to the US from Pakistan in her teens and operates a non-profit food bank in the Corona area.

Essayli and Rizvi held opposite views on the role of government, small business issues, and organized labor. Rizvi supported AB 5 regarding independent contractors but would support some reforms to help small businesses. Rizvi supported AB 257 requiring large fast-food chains and franchises to pay their employees $22/hour because large companies need to pay employees a living wage. Rizvi viewed labors unions as a positive influence in the state. Essayli opposes AB 5 and AB 257 stating the laws as examples why businesses are struggling in California. Essayli believe labor unions have too much influence in California and that Democrat representatives are beholden to unions.

AD-71 Republican candidate Matt Rahn is Temecula’s current Mayor and has been a city councilmember since 2014. Rahn has several graduate college degrees and a law degree. Rahn is presently working with firefighting agencies on wildfire protection and prevention. Kate Sanchez, also a Republican, is an executive for a local non-profit based in Orange County and worked for former Congressmember Ed Royce and the California Policy Center. Sanchez did not participate in the forum.

Rahn stated that California is overtaxing taxing its businesses and residents and taking too much control away from local governments and placing too many burdensome regulations on small businesses. Rahn added that California is not being innovative in tackling problems such as housing supply and affordability by adopting one size, fits policies on all local governments.

SD-32 Republican candidate Kelly Seyarto is currently an Assemblymember of CA 67th District. Seyarto previously served as Murrieta Mayor and City Councilmember for thirteen years. Seyarto is a career firefighter and serving as Battalion Chief for Los Angeles County. Brian Nash moved to Menifee from outside of California more than a year ago and presently working in banking and finance. Seyarto stated that California government is out of touch with ordinary Californians and not doing enough to solve fundamental problems affecting the state such as water, housing, and education. Seyarto agreed that state needs reduce regulations on business and housing, return control to local cities, and stop overtaxing residents and businesses. Democrat candidate Brian Nash stated his top priority is education and ensuring California remains competitive in green energy. Nash stated that labor unions play a positive role for all workers and in the economy. Nash stated that he would have voted for AB 5 and AB 257 if he were an elected representative. The SCRHA endorsed Kelly Seyarto for SD-32 earlier this year.

There was some consensus among the candidates that California needs to do more about housing supply and affordability, need for California’s Environmental Quality Act (CEQA) reform, and that California return more control to local governments in zoning and land use decisions. Candidates did agree that education and protecting local cities from wildfire are among their top priorities.

In addressing affordability and supply, the candidates generally agreed that CEQA needs to be reformed to allow for more housing and infrastructure to accommodate more housing. They also agreed that California should be more flexible and tone down its top-down approach requiring local governments to build more housing. There was disagreement between Republican and Democrat candidates regarding new state legislation that would allow builders to convert commercial/retails centers into housing. Republican candidates opposed the legislation saying that it should not be a requirement for all cities to convert commercial/ retail space into housing because that space help cities generate sales tax revenue. Republican candidates favored reducing or eliminating requirements on new

AssistantPropertyManageroftheYear1-100

Units

KalaniBrinkoetter|UrbanaRentalFlats&TRU

BankersHill

AssistantPropertyManageroftheYear101-300

Units

EricLindsey|7th&G

Alexandra Villa |Imperial Beach Gardens and

Mariner’sPoint

AlexisSmith|PulseMillenia

AlmaTrejo|TownCenterVilla

AngelaMarino|AlexanGallerie

DannikaCondon|Seagate

JackieCasaletto|CreekviewCondominums

KellyEngbring|AquateraApartmentHomes

KerianneNoonan|BLVDNorthParkApartments

MitchellBenbrook|SolanaHighlandsApartments

TatianaCastro|NobelCourt

TaylorHoth|RiverFrontCondominiums

ZoePoissot|ViciLuxuryRentals

AssistantPropertyManageroftheYear301+

Units

AlexMcCarty|PortofinoApartmentHomes

AmeerahBhatti|Rowan,Alcove,andHaven76

AndiiGutsch|TierrasantaRidgeApartmentHomes

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TaylorGilbert|BoardwalkatMillenia

IndustryPartneroftheYear-Company

CityWideCleaningServices

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Domuso,Inc.

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Congratulations to all Mark of Excellence 2022 Nominees. You are the true “Mark of Excellence” in our industry, and we are proud to recognize your accomplishments.

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VictorSantillan|CityWideProtectionServices

LeasingProfessionaloftheYear1-100Units

AndreiLechert-Kelly|TRUBankersHill

AshlieCastrellon|BreezeHill

ElizabethCoyle|H.G. Fenton Company

LaurynFarris|BellaDelMar

LeasingProfessionaloftheYear101-300Units

AlenorChapman|Current

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LeasingProfessionaloftheYear301+Units

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CarlosAviles|BLVDNorthParkApartments

DannyPerez|Seagate

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Jonathan Villa |Imperial Beach Gardens and

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MaintenanceTechnicianoftheYear101-300

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MaintenanceTechnicianoftheYear301+Units

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Multi-SiteManageroftheYear1-300Units

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Multi-SiteManageroftheYear301+Units

ChrisRamirez | H.G. Fenton Company

KimberlyDiaz|LomaPalisadesApartments

PorteroftheYear1-300Units

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ClaudiaEscobar|PacificRidgeApartments

CorinJulio|LomaPalisadesApartments

DanielCuevas|ClubRiverRunApartmentHomes

FranciscoGodinez| ElDorado Hills Apartment Homes

PropertyManagementCompanyoftheYear

AmericanAssetsTrust H.G.FentonCompany

PropertyManagementTeamoftheYear

The DistrictManagement Team |TheDistrict Apartments

TheOrchardTeam|TheOrchard

PropertyManageroftheYear1-100Units

AnthonyPaxton|ParkDiplomat

CynthiaSandoval|AngelinaTerrace

IsaacSterman|BellaDelMar

RosemaryKrolik|MissionArbor

SusanaMorales|ShirleyHeights

TaraSlayton|FanitaMeadows

ZornistaGeorgieva|GardensApartments

PropertyManageroftheYear101-300

AddyHayes|10th&G

MichaelaDraper|AV8

TraciRivera|AlexanGallerie

AlexisMott|BLVDNorthParkApartments

AvonteKing-Henry|AzulNorthParkandAzul ChulaVista

CarolinaVillavicencio|TownCenterVilla

CarolinePeczkowicz|RiverFrontCondominiums

GuadalupeNevarez-Vaca|VillageApartments

HeatherKing|SignaturePoint

Jeremy Moore| Tierrasanta RidgeApartmentHomes

Jessie Lucero| ImperialBeachGardensand

Mariner’sPoint

JillSteeves|OceanBreezeSeniorVillage

JonPerea|Casa’sbytheSea

JustyTevid|BroadstoneLittleItaly

KatarinaSchmidt|Seagate

KatherineOrtizReyes|VillaMorrocco

LianaVillar|BroadstoneMakersQuarter

MarieBerg|VistadelCoronado

MarilynMartin|TheHub

PatrickHoffman|Current

ReginaWhitesell|CreekwoodVillas

SaraFulcher|EveningCreekCondoRentals

TimGraves|SolanaHighlandsApartments

OsirisGomezRomero|BoardwalkatMillenia

RachelleMerlo|Circa37

ChristopherJohnson|MissionsatRioVista

LauraGaffneyVargas|MetroMissionValley

TerryBest|Diega

PropertyoftheYear1-100Units

StoneArbor

BellaDelMar

TRUBankersHill

UrbanaEast VillageRentalFlats

PropertyoftheYear101-300Units

AlexanGallerie

SignaturePoint

AquateraApartmentHomes

AzulNorthPark

BLVDNorthParkApartments

BroadstoneLittleItaly

Casa’sbytheSea

CreekViewApartmentHomes

EveningCreek CondoRentals

Mariposa

PulseMillenia

RiverFrontCondominiums

ScrippsLanding

Seagate

SolanaHighlandsApartments

Solterra

TheHub

ViciLuxuryRentals

PropertyoftheYear301+Units

TheDistrictApartments

BoardwalkatMillenia Circa37

ClubRiverRunApartmentHomes

Diega

ElDoradoHillsApartmentHomes

PacificRidgeApartments

Portofino

Purl RiverEdgeTerrace

TierrasantaRidgeApartmentHomes

RepositionedPropertyoftheYear1-300 ParkVillasApartments

PointLomaPalms

Surfcaster

IndustryPartneroftheYear-Individual

AlexRodriguez|ThePhoenixStaffing

Hojjat“Tom”Tamar sec ivreSnoitcetorPediWytiC|

JayLopeman|BGMultifamily

JessicaHays|ThePhoenixStaffing

RobertPreciado|CityWideProtectionServices

NicoleLiverpool|PacificRidgeApartments

TenteKaluly|SolanaatGrand

ToniHoyt|PortofinoApartmentHomes

VanessaHernandez|Purl

VanessaMarquez|Casoleil

YeseniaMacias|RiverEdgeTerrace

JoeyMartinez|RoyalOaksSeniorApartments

JonathanAlmendarez|ImperialBeachGardens

andMariner’sPoint

JuanValencia|RiverFrontCondominiums

Kevin Villa|TheHub

MannyAvalos|CreekwoodVillas

MariaAvitia|RiverFrontCondominiums

Raquel Rubio |Imperial Beach Gardensand Mariner’sPoint

PorteroftheYear301+Units

CarminaBaza|SolanaatGrand

PropertyManageroftheYear301+Units

CandaceHollinbeck|PortofinoApartmentHomes

DannyCahill|ClubRiverRunApartmentHomes

GenevieveGundogar|Purl

JoseSoto|TierrasantaRidgeApartmentHomes

LauraCastillo|CanyonRimApartments

RepositionedPropertyoftheYear301+Units

LomaPalisadesApartments

TheDistrictApartments

housing to improve affordability such as removing green building requirements and eliminating prevailing wage and union labor requirements on affordable housing projects. Democrat candidates believed the state should continue adopting green building standards and more requirements to build subsidized affordable housing.

SCRHA members are encouraged to visit the candidate websites for more information about their policy platform and positions. SCRHA urges all members to register to vote or have their voter information updated before the General election on Tuesday, November 8. Please visit the SCRHA website to review the SCRHA Voter Guide of candidate endorsements and more information about voter registration at socalrha.org.

SAN DIEGO WATER RATES COULD INCREASE AGAIN IF REPORT MOVES FORWARD

City of San Diego officials announced in September that they will be finishing its Cost-of-Service Study on the city’s water system. The study was to be completed two years ago, but the city is waiting for a state appellate court to rule on its appeal. The city’s study has been delayed due in part of litigation challenging the city’s rates tiers affecting customers who use water.

The city’s last cost study was in 2015, the study’s analysis initiated a 40 percent, multi-year, increase in its water rates to pay for aging water infrastructure and its Pure Water advanced water purification system. Cities are required under law to initiate a cost-of-service study by an independent consultant to analyze the present and future needs of city services, like water, and determine the cost and rates for providing that service in the future.

A class-action was filed against the city’s current study arguing San Diego’s multiple tier rate structure is illegal under the state’s Proposition 218. In 2021, a Superior Court judge court ruled in favor of the lawsuit agreeing San Diego City’s tier rate structure was illegal and that local governments’ rates cannot exceed the cost of service by placing water customers into different rate tiers. San Diego officials appealed the ruling to an appellate court waiting for its decision. San Diego officials insist its tier rate structure is legal and that water customers who use more water should have to pay based on their tier and usage.

If the appellate court denies the city’s appeal, it could force San Diego to combine all water customers into

12 | Southern California Rental Housing AssociationRental Advisor April 2022

one tier and potentially customers who use less water could pay more. The case could affect water agencies in the state that incorporate rate tiers into their rate design. The SCRHA reported in September that the San Diego City Council approved a 3 percent increase in water rates due to the rising cost of imported and desalinated water. City officials are hoping it will win the appeal, so it does not have to remove its tier rate structure and redo its study.

PALM SPRINGS TO CONSIDER CAP ON SHORTTERM RENTALS

The Palm Springs City Council in late September discussed a recommendation suggested by the city’s Vacation Rental Work Group. Last March, Palm Springs established an 11-member work group to analyze the city’s short-term vacation rental rules and decide if more rules or changes are warranted. The group had five study sessions to review city ordinances governing vacation rentals.

The 11 members were appointed representing various constituencies and groups representing rental operators, property owners, and tenants. City staff issued a report on the work group’s recommendation that the city set a maximum cap of 2,500 short-term units limiting the number of units in each neighborhood to 10 percent of homes.

The city’s report noted that at least 12 neighborhoods had 17 percent listed as vacation rentals with other neighborhoods in the 20 to 30 percent range. In December 2017, there were 1,188 registered vacation rentals in the city; the number of vacation rentals rose to 2,445 as of July 2022.

Vacation rentals have been a controversial topic throughout Southern California. Recently, the Riverside County Board of Supervisors issued a 45day moratorium on vacation rentals in the mountain communities of Idyllwild and Mountain Center. Cities such as Temecula issued a citywide ban on all vacation rentals and cities like Murrieta restrict rentals to certain residential zones.

On September 29, the City Council held a hearing to discuss capping the number of rentals. The council listened to a city staff presentation and asked staff about the recommendation and how the work group came to form its recommendation. After several hours, the city council agreed that it would be open to the recommendation, but it would need more analysis before it could make a vote. The council did not determine when it will consider the recommendation again.

UPDATE:

RISING TEAM VOTED TO REDEVELOP SPORTS ARENA PROJECT

MIDWAY

The SCRHA in October reported on San Diego Mayor Todd Gloria’s recommendation of a development team to revitalize the San Diego Sports Arena site. The city council voted to accept Mayor Gloria’s choice of the Midway Rising Team.

The City’s Real Estate Department, with the assistance of an independent consultant, drafted a study analyzing the proposals of three development teams that would redevelop the Sports Arena properties. The study recommended the Midway Rising Development.

The Sports Arena’s redevelopment will be built over ten years in different phases at a cost of $2.5 billion. The project proposes to build 2,000 deed-restricted apartments for households earning 80 percent or less of San Diego’s Area Median Income and another 2,250 units will be built at market rate. The project includes construction of a 16,000-seat arena and entertainment complex, a 200-room hotel, and 250,000 square feet of commercial space with a public plaza.

In another positive step for the Sports Arena project, the state’s Department of Housing Community and Development (HCD) announced that it accepted the city’s process and team selection. The Midway Rising and city officials will negotiate the project. Once an agreement is reached by both parties, the city will draft a ballot measure for voter approval.

SHORT-TERM RENTALS IN SAN DIEGO MUST APPLY FOR LICENSES

The City of San Diego opened its license portal on October 3 for those who want to operate a short-term vacation rental in the city. San Diego’s Short-Term Occupancy Ordinance will require all short-term rentals to have a Short-Term Residential Occupancy (STRO) license beginning May 1, 2023.

Beginning October 3, San Diego started accepting applications for STRO licenses for persons who want to operate Part-Time, Home-Sharing, Whole-Home, or a Mission Beach Whole Home short-term rental. Applicants must have a current Transient Occupancy Tax (TOT) Certificate and must have their Rental Unit Business Taxes Paid. The STRO will limit the number of short-term rentals allowed in each community or neighborhood in the city. For more information about the STRO licenses, application process, deadlines to submit applications, and how to apply, visit https:// www.sandiego.gov/treasurer/short-term-residentialoccupancy.

Welcome New Members

INDEPENDENT OWNERS

Belsalute LLC

JBX Group LLC

Jacob Mendelson Company

Azul Chula Vista | Greystar

Blake Peterson

Charles Peterson Company

Core SVA San Diego Cajon LLC

Esprit Luxury Villas | Cypress View Prop

Jaime Chestnut Company

Karen Trapane Company

Oceanview Terrace | Greystar

Paradise Properties

Park Pointe | Greystar

Patty Villegas Company

Paul Vajdi Polk Street Partners

Regents La Jolla | Greystar

Susan Easton Company

Vista Promenade

Whispering Pines LLC

SUPPLIERS

AZP Multifamily Zillow Rentals

Atlas Property Service

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

Armada Power National Renovations, LLC - DBA Repipe Specialists, Inc Parcel Pending

Pref e rre d Pa rt n er s

CE LE BRATIN

John F. Cihak Company

Betty Kern Company

Vaclav Koci Company

G

CE LE BRATIN G

Irene Jackson Company

NB Properties, Inc.

Cameron Brothers Company LLC

Diamond Apartments

Lyon & Lyon, Inc.

Susie and Jim Uribe, Owners

R & V Management

Rohn Properties Management

Karen Virtue Company

La Paloma Apts.

Rodney Smith Company

Fred and Jan Fogerty

Wood/Saukkonen

Mary Jane Dunn Company

Blossom Court Apartment

Dean Freeman Company

Matthew and Sheila Gleason

Pedro Ferreira Company

Michael Boardman Company

Washtek, Inc.

Stefan Hoffer Company

Robert Neill Company

an ANNIVERSARY This Month

an ANNIVERSARY This Month

10+

10+

1969 1970 1974 1975 1975 1977 1977 1977 1977 1980 1980 1984 1986 1986 1987 1987 1989 1991 1991 1991 1991 1993 1995 1995 1996

CE LE BRATIN G

years

of

Robert and Linda Lofgren

D.L.B. Realty, Inc.

Patrick F. McMillin, CPM

membership

years of membership

Simplicio C. Villanueva Company

Herbert Baker Jr. Company

an ANNIVERSARY This Month

Villa Pacific Properties

Steve Schmidt & Company

10+ years of

membership

Joyce Peterson Company

Baldwin Moore Realty

Mike Spears Company

Frances Harvey Company

AJ Properties

IMT Sorrento Valley

John B. Harris

Tamara Kabban-Miller

Gurley N. Sellers, III Company

Michael Weinrick Company

Hobrock Enterprises LLC

Serge Decorte Company

Pierce Education Properties

UDR, Inc.

Trinity Property Consultants

Tim Budniewski Company

C & A Family, LLC

Saxony Village Partnership

Voices of the Industry

1996 1996 1997 1998 1998 1999 1999 1999 2000 2000 2001 2002 2003 2005 2005 2006 2008 2009 2009 2011 2011 2011 2011 2011 2011

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 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 list and is not, please contact the publications department at publications@socalrha.org

SAN DIEGO GAS & ELECTRIC & 211 PARTNERING FOR YOUR SAFETY

We all need a little help sometimes. During wildfire season, some of us need a little more help. That’s why SDG&E® is working with 211 San Diego to help provide additional customer assistance if a Public Safety Power Shutoff is necessary.

To get connected to community, health, social and disaster services, please call 211 or visit 211sandiego.org.

Contribute Your Knowledge and Expertise!

Call for Presenters – SCRHA 2023 Educational Seminars

The SCRHA Education Committee is seeking volunteer speakers for its 2023 educational session. We would like to invite all SCRHA members and industry partners who are outstanding speakers and interested in presenting to submit a proposal.

The SCRHA education program covers a range of topics and is targeted to meet the multi-housing industry and independent owner’s needs. Our students look for real-world solutions to real-world problems.

We are focused on delivering programs that delve into timely issues impacting the industry now.

Potential topics include:

• Updating/rehabbing aging apartment buildings

•Property manager vendor relations

•Managing properties with low-income housing tax credits

•Conflict Resolution – improve employee engagement/keeping employees happy

•Takeover Challenges

•How to identify a fake ID

•Diversity, Equity, and Inclusion

If you are interested in presenting a topic/seminar, please submit a proposal via email.

Please include the following information in the proposal:

•The topic (s) and outline(s)

•Length of presentation

•Attendance – If the registration numbers are low, is there an attendance minimum that needs to be met before the offering is cancelled?

•Are you comfortable presenting virtually and with being recorded.

•Can they be customized for any additional needs?

Please be aware that the Association usually charges a fee for educational sessions and that they are recorded for future use. All education offerings must be strictly educational and informational.

Session Proposals can be submitted 24/7 year-round to the Education department by e-mail to lkindred@ socalrha.org.

All proposals are reviewed by the Education Committee and upon approval added to our annual schedule.

We depend on our speakers to create a valuable educational experience for our members so thank you in advance for your desire to share your experience and knowledge!

Is Your Building’s Balcony Safe With Dry Rot?

California’s Senate Bills 721 and 326 Mandate Inspections by Statutory Deadlines

By Omid Ghanadiof, EEEAdvisor Engineering

s the deadline for the California Balcony Laws Senate Bills 721 and 326 comes closer and

leading California-based engineering inspection company, EEEAdvisor Engineering, offers advice on dealing with inspections of

WHAT MUST BE INSPECTED? EXTERIOR ELEVATED ELEMENTS (EEES)

The two state laws are designed for buildings that contain three or more dwelling units. Senate Bill 326 is for condominiums, and Senate Bill 721 is for apartment buildings. The laws require that inspections be made to any elevated elements of multifamily properties.

Exterior Elevated Elements are building elements that are constructed of wood, have a walking surface, have any portion sitting 6-feet above the ground, and that

extend outside of the four walls of a building. Exterior Elevated Elements include balconies, outside decks, porches, exterior stairways, and exterior walkways that have a walking surface that is elevated more than six feet above ground level according to these ordinances. Required inspection includes waterproofing system supports and railings, and load bearing component.

Rotted materials are weak. If dry rot is allowed to grow unchecked for years, it can make an apartment building or home uninhabitable and unhealthy. “Deck and Balcony Inspection Bill,” Senate Bill 721 went into effect in California on January 1, 2019. It was passed in response to a balcony collapse that occurred in Berkeley, California at the Liberty Gardens Apartments that resulted in multiple deaths and serious injuries. The worst-case scenario for a structural failure like the balcony in Berkeley is irreversible structural damage that often results both severe legal liability and expensive repairs or demolition of a property. No one wants that! The sooner the mold is identified, and its

OF DRY ROT

Dry rot has a four-stage life cycle:

1. Dry rot begins with dormant spores until moisture content exceeds 20% in a piece of timber, and a poor airflow situation presents itself.

2. Hyphae or thread-like appendages grow and expand outwards, absorbing moisture.

3. The thread or mycelial growth continues until it looks like cotton or wool. Sometimes the fibrous growth has a gray, yellowish, or light purple tint.

4. The fungal life cycle ends as spores are produced as the fungus’ food source is depleted. The fungus dries out, turns into a white powder, and a foul odor develops in its proximity. The cycle starts again when conditions are optimal.

HOW DO YOU REPAIR DRY ROT DAMAGE?

Many have asked us, how can dry rot damage be repaired? The most straightforward answer is—”it depends.” That might sound overly simplified or a ‘brush-off,” but it is true. Some types of damage are easier to mitigate and repair due to the extent of mold’s progress through a wooden structure. Dry rot can spread like wildfire under the right circumstances, and as a result, remediation measures will look very

different from one project to another. For example, an apartment building may have different needs than a hotel, business office, or historic home.

The first step in developing a custom remediation program involves hiring the right professionals. An expert inspector will be able to identify problem areas quickly and evaluate the severity of dry rot, and then make the appropriate recommendations to stabilize or replace damaged timbers. This person(s) can help property owners find crews to complete the necessary work. Property owners must be forewarned; program suggestions could be considerable and costprohibitive, especially for historic buildings.

Apartment owners and homeowners can also have their properties regularly inspected for water damage or leaks. Routine inspections of balcony, walkway, deck, stairways, will help prevent future issues or help identify them quickly. A systematic and preventative approach like ones described in Senate Bills 721 and 326 will save money and diminish costly repairs in the long run. Apartment owners, tenants, and homeowners can sleep better not worrying if a silent monster, dry rot, is creeping in the walls and eaves of their building at night.

We have always recommended to our clients to hire a professional engineer early before getting closer to the inspection deadline. Not only is it necessary to protect your tenant’s safety and avoid liability, but you also save a lot on the cost of repair and construction. For both of the senate bills, the deadline to comply to both laws is December 31, 2024.

Omid Ghanadiof is a co-founder of EEEadvisor Engineering, a specialized engineering structural inspection firm active located in Southern California. EEEadvisor Engineering assists rental property owners and homeowners associations (HOAs) with compliance with state mandated balcony inspections per Senate Bills 721 and 326. EEEadvisor Engineering is a leading engineering inspection company that assists clients in meeting the January 1, 2025 deadline for compliance with Senate Bills 721 and 326. For more information, contact Mr. Ghanadiof at (805) 312-8513 or info@ EEEadvisor.com.

REAL ESTATE DSTS: A HAVEN IN A 1031 TAX-CHANGE STORM?

In The Face Of The Tax Policy Uncertainty, The Question Is How To Think About Current Real Estate Investments And Future Investment Plans.

BY CHAY LAPIN Kay Properties and Investments, LLC

Washington-watchers, including many of us in the real estate industry, are waiting to see if and how federal policymakers change the tax treatment of capital gains and 1031 likekind exchanges this year.

The capital gains tax rate affects the flow of capital into every investment class, including but not just real estate. Operating companies and operators of hard assets including real estate count on capital and liquidity to be productive. I’m hopeful the current capital gains tax rate will be maintained versus raised as has been proposed.

Meantime, while no one is suggesting that 1031 exchanges of investment property be eliminated,

the Biden Administration’s proposed budget for the coming fiscal year would significantly curtail them by limiting the amount of capital gains from investment property sales that could be deferred to $500,000 per year for individuals and $1 million per year for married couples.

1031 exchanges allow property investors to defer capital gains and other tax on investment gains when they reinvest the proceeds into other likekind properties, which means they must be held for investment or business purposes (meaning you cannot 1031-exchange into a home that you will utilize as your primary residence). Today there is no limit on the amount of capital gains from the sale of investment real estate that can be deferred using 1031 exchanges.

Please turn to page 37

Chay Lapin, 2012 London Olympic Athlete, started his career working with a Los Angeles based multifamily apartment brokerage firm, gaining valuable experience as a real estate analyst within the acquisition and disposition teams. From there he took a position with a large real estate owner, responsible for project management, asset management, and leasing. With knowledge concerning multifamily and commercial real estate, DST, TIC, and fractional NNN Properties, Chay offers insight to our clients nationwide. Chay is responsible for developing new business and managing the companies’ existing 1031 clients. Chay holds the Series 7 and 63 securities licenses, as well as a real estate license.

HEADACHES OF RENTAL PROPERTY?

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•

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Continued from page 35

SHOULD YOU SELL INVESTMENT PROPERTY NOW?

In the face of the tax policy uncertainty, the question is how to think about current real estate investments and future investment plans. First and foremost, the times call for calm. The fact is, real estate has been an attractive alternative investment class and it may continue to be - there are virtually always appealing investment opportunities, be they short or long term. Second, with regard to any change in the capital gains tax rate, it would likely affect all asset classes - not just real estate - so any impact likely would be proportionate, or relatively so.

If you’re holding investment property, should you sell? That’s a question on the minds of many now.

It depends. If you think you’ve realized the full upside potential of the investment and you need the proceeds, it may make sense for you to sell, depending on your personal financial goals and your liquidity.

In contrast, if you’re waiting on an important milestone in your investment’s life, such as some significant improvements to be made, rent increases to be fully realized, or the signing of a major tenant, it may make sense to hold the investment longer. Everyone’s situation is different … there is no single right answer. You’ll have to weigh the fundamentals, including the potential for further appreciation and cash flow from the real estate, versus any immediate change in the tax consequences. Consult your tax and legal advisor, to be sure.

HOW TO INVEST IN REAL ESTATE GIVEN POSSIBLE LIMITS ON 1031 EXCHANGES

The flipside question of “Do I sell now?” is “How to invest in real estate?” in the current environment.

If the use of 1031 exchanges becomes limited, one real estate ownership structure likely to be even more attractive is the Delaware Statutory Trust (DST). DSTs area form of fractional ownership that can be a great way to make passive investments in real estate and achieve diversification across multiple assets.

DSTs also happen to be 1031-exchange eligible. In other words, you can sell another investment property and reinvest the proceeds into one or more DSTs in order to defer capital gains tax on the prior gain, and you can sell DST investments and exchange into other investment properties, with capital gains tax deferred, in the future.

DST interests can be divided to be relatively modest investment amounts, so corresponding future gains, if there are gains, would likely be below any thresholds that may be set to qualify for 1031 treatment under the tax code. Similarly, each individual property held in a DST may be sold at different points in time over a number of years, so if an investor diversifies their exchange dollars into small enough allocations, gains in any one year would potentially not exceed whatever limit may be imposed in order to qualify for 1031 treatment.

Many individuals, married couples and family offices invest in real estate DSTs already. Others are looking at the investment type now for the first time as a potential haven in a tax-policy storm. Here’s an example of how a DST investment could work as part of a 1031 tax- deferral strategy right now:

Lisa has a $5,000,000 apartment property that she decides to sell in 2021. There is a $2,000,000 gain on the sale.

She invests the $5,000,000 in 10 different DST investments in $500,000 increments, thus deferring capital gains tax on the original gain. The investments also set her up to potentially defer taxes on future gains, since gains from DSTs are 1031-exchange eligible.

In making the new DST investments, she diversifies her portfolio across different property types and geographies. She also inquires about the holding periods for each of the investments, determining there’s a reasonable likelihood they will be liquidated, with potential gains realized, in different tax years. So she will be in the potential position - in the future - of remaining below any new federal tax cap on the amount of gain that can be deferred in any one year through 1031 exchanges.

There’s no such thing as a crystal ball, so no way to know what Congress will or won’t do this year on tax policy. It’s left to us, including investment property owners and investors, to stay calm and make the best decisions today given what we know now. That applies to the timing of investment property sales, and decisions about how to invest proceeds or cash in commercial and multifamily real estate going forward. Personally, I’m no less excited about real estate investing today than I was last year, and just as excited as I expect to be next year. The appeal of real estate as an investment class is likely to remain. The challenge, as always, is to make the most of opportunities.

Jason McMurtry, MBA Managing Partner

FOUR STEPS TO SELECTING YOUR EARTHQUAKE RETROFIT COMPANY

by

Growing alarm over the threat of earthquakes up and down the Pacific coast has sparked an influx of inexperienced companies hoping to get a piece of a new business opportunity. In this atmosphere, how can you tell who’s legitimate and who’s not?

Here are four easy steps to ensure you are selecting a reputable firm to do the work, and that the process followed will bring you the best results for the safety of your tenants and protection of your building.

DO A BACKGROUND CHECK

First and foremost, be sure that the engineer, architect or contractor you plan to hire is licensed.

The State Board for Professional Engineers, Land Surveyors and Geologists maintains a database of the names of individuals with professional licenses with the state. Visit www.bpelsg.ca.gov for more information. If the name you’re searching for isn’t there, you can call 1-866-780-5370 to make sure the omission is not due to a clerical error.

The California Architects Board lists licensed

architects at www.cab.ca.gov.

The California Contractors State License Board keeps a database of all licensed and insured contractors at www.cslb.ca.gov.

CHECK ON REFERENCES AND EXPERIENCE

Make sure your contractor has done at least five projects in the past year and verify the work by contacting the building owner or manager, and arrange to visit the site. Check out the finished work to see if it blends well with the original paint, stucco and other building elements. Inspect the placement of structural elements and the impact of the retrofit on the use of the building. Did they lose a parking space in the process?

RESEARCH THE FIRM’S ABILITY TO WORK WITH TENANTS

When checking a contractor’s references, be sure to follow up on how the firm deals with tenants during the construction process. Some questions to ask include:

• Whether tenants needed to be relocated, and why

Please turn to page 41

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Midea 8,000 BTU (115v): $48900 $39900 Midea 12,000 BTU: $57600 $49900 LG 12,000 BTU: $62600 $54900 Midea 18,500 BTU: $71900 $61900

Ali Sahabi, Optimum Seismic

Ali Sahabi, a licensed General Engineering Contractor (GEC), is an expert in seismic resilience and sustainability. He is Co-Founder and Chief Operating Officer of Optimum Seismic, Inc., which has completed more than 3,500 seismic retrofit engineering and construction projects, including adaptive reuse and renovation projects, for multifamily residential, commercial, and industrial buildings throughout California.

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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.”

• Were the grounds kept clean and hazards such as tools and construction material contained

Gen Z job seekers cite a company’s commitment to diversity as an important factor in deciding whether or not to accept an offer.”

OBTAIN PROPER INSURANCE DOCUMENTATION

Worker’s compensation and professional and general liability insurance are needed to protect you and your property in the event something goes wrong. Never assume a contractor has liability coverage and insist that you be provided a certificate of insurance to verify their coverage.

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.

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

Some companies may present you with a certificate of worker’s compensation, but it’s important to check their status with the CCSLB. Go to www.cslb.ca.gov, click on “check a contractor license,” search for the business name, click on the appropriate license number, then scroll down to the section dealing with workers’ compensation. Click on “workers’ compensation history.”

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.

If the posting states “exempt” click on the word for an explanation. Typically, this means that the company owner lists himself as the sole employee,

and that no workers are insured under worker’s compensation. That puts you – the building owner –at risk in the event of any jobsite accidents or injuries.

Without worker’s compensation, apartment owners may also find themselves on the hook for:

• Liabilities associated with death or injuries of subcontractors or workers hired under the table.

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.

• Financial liens filed against your property in the event that the general contractor does not pay his subcontractors or laborers.

*Statistics pulled from Yello

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

Generation NameBirth Years

Baby Boomers1946-1964

Remember that general liability for contractors is based on a specific trade classification. Be sure that the company you hire is insured specifically for seismic retrofit work. If not, insurance companies may try to reject claims of injury or death, and liability could be passed on to you.

Gen X 1965-1980 Millennials1981-1996

Finally, as a part of your written contract, make sure you are named as additionally insured and have your insurance agent and/or legal representative review the additional insured endorsement before signing the contract.

Gen Z 1997-2012

FINANCIAL ADVISORY

Retail Real Estate –

Is it Doomed by Change?

BY CHRISTOPHER MILLER, MBA SPECIALIZED WEALTH MANAGEMENT

In recent years, we have heard a lot about the “death of retail.” A popular belief is that the Internet is driving traditional “brick and mortar” retailers out of business as consumers do more of their shopping online and have everything delivered to them. As gasoline powered cars are gradually replaced by electric ones, what effect will this have on the retail market?

This month, we’ll look at some of the facts.

THREAT FROM ONLINE SALES

According to the US Census’ Monthly Retail Sales Report, Internet sales in 2000 comprised 1% of total Core retail sales. By 2015, that number was 7%, and it rose to 16.4% in 2020 during the height of the COVID lockdowns. (all sales excluding automobiles, gasoline, building materials and food services) in this country. Over the last 2 years, that number has declined a bit to 14.5%- but note that is has more than doubled since 2015 – just seven years! These numbers represent a percentage of “total retail sales” so that it includes things that typically are not bought online such as automobiles, gasoline, building materials and food services (restaurants). So – the impact on your local department store is probably even greater. Statista, the market and consumer data

firm, predicts that this number will hit 21.9% by 2025. This declining market share is certain to affect retail real estate all over the country.

A LOCAL LOOK – WHAT THE GREATER LOS ANGELES RETAIL MARKET LOOKS LIKE

The Greater Los Angeles retail market has a 6% vacant rate. This is boosted by stronger performance in larger markets that makes up for dismal performance in smaller ones. For example, the West Los Angeles market and Greater Downtown are showing 13% and 12% vacancy rates, respectively, as of 2nd Quarter 2022. This has been a sudden decline – vacancy rates in these areas were 7.6% and 4..4% in the First Quarter of 2021. The MidWilshire District has stayed steady at 10% vacancy.

I was surprised to learn that the largest retail market in Los Angeles, with over 20 million square feet of inventory, is the San Gabriel Valley. LA’s largest market had a 5.7% vacancy rate while it’s second largest, the South Bay, boasted a 3.6% vacancy rate.

Although I think that I see more retail vacancy than in the past, the data I’ve reviewed doesn’t say the same thing. Will things continue to look rosy for retail in

Please turn to page 45

Christopher Miller is a Managing Director with Specialized Wealth Management and specializes in tax-advantaged investments including 1031 replacement properties. Chris’ real estate experience includes work in commercial appraisal, in institutional acquisitions for a national real estate syndicator and as an advisor helping clients through over four hundred and fifty 1031 Exchanges. Chris has been featured as an expert in several industry publications and on television and earned an undergraduate business degree and an MBA emphasizing Real Estate Finance from the University of Southern California. Chris began his real estate career in 1998. Call him toll-free at (877) 313 – 1868.

griswold

Response

TheSafe&Simpleway toCollectandReport RentPayments

Continued from page 42

the Los Angeles area? I believe that the continued growth of online sales will negatively impact retail real estate in the long term.

MORE IMPORTANT THAN WHERE YOU BUY IS WHAT PROPERTIES YOU BUY

“Retail Real Estate,” of course, is a term that broadly describes many different property types. Competition with the Internet may affect different product types differently, so let’s look at a few specific groups:

NEIGHBORHOOD RETAIL CENTERS

Neighborhood Strip Centers, or “strip centers,” (so named due to the “strip” of neighboring stores built next to a parking lot) describe the type of property where your local grocery store or pharmacy is. The rest of the property is then populated by smaller stores called “in-line tenants:” sandwich shops, dry cleaners, Hallmark stores, donut shops, etc. The larger tenants, like Vons or the Drug store, are referred to as “anchor tenants.” The landlord’s goal is to have anchor tenants that drive traffic to their in-line tenants. If these anchor tenants close, traffic to the center slows and the smaller in-line tenants will begin to close as well.

Owners of retail centers anchored by a Mervyn’s, a Toys ‘R Us, or a Circuit City know that last part all too well. Once Mervyn’s moves out, so too does the donut shop and the Hallmark store. While “Big Box” retailers are suffering - so, too, are traditional in-line tenants. A popular fixture in a strip center just 20 years ago was a video store. Book stores and record stores are becoming endangered as well.

In the future, if vacancies rise due to competition from Internet sales, landlords could be faced with more empty spaces and less potential tenants to fill those spaces. I don’t have a crystal ball, and there could be great opportunity in multi-tenant retail, but I wouldn’t invest in it personally unless I could stand losing my entire investment.

SINGLE TENANT, NECESSITY RETAIL

As the higher prices indicate, a great amount of investor equity is flowing into the Single-Tenant, Triple Net Leased retail space. These investments are popular for many reasons. First, their “single tenant” nature avoids the “waterfall effect” of vacancies should the main tenant close. If your main tenant closes, you’ll have one space to re-lease rather than potentially 10. Next, if you focus on long-term leases

to credit-rated tenants, you can feel more confident that your lessee will stay in business to continue paying you rent. Third, many of these tenants are “necessity retail:” they are stores that stayed open even during the COVID shut downs: Grocery stores, auto parts stores, dollar stores and banks are popular tenants in this asset class.

AUTO RELATED RETAIL

Other retail properties such as gas stations and automotive service locations may see huge changes over the next 10-20 years, and not necessarily due to Internet competition. As certain states are moving to ban the sale of gasoline-powered cars and automakers are moving towards electric vehicles, how many of the cars on the road won’t need gas stations 10 years from now? 20 years from now? How will this affect sales?

Electric cars will still need new tires, alignment, and shocks periodically. These cars will also need to be serviced as components break. In fact, I recall that most of the repairs done to my modern cars involve electronic components that have malfunctioned. Will electric cars need more repair work than gasoline cars? Less work? The same? We’ll wait and see –and the answer will have a huge impact on the values of these properties in the future.

Gas stations and oil change only retailers, however, certainly will see their business decline as the percentage of electric cars on the road increase. Will gas stations be turned into “quick charge stations?” What will Econo – Lubes be re-developed to? There could be an opportunity in buying these assets – but future renovations or redevelopments will take extra capital.

WHAT RETAIL PROPERTIES ARE APPEALING?

What sort of retail real estate is attractive today? As with any real estate investment, we’ll want to evaluate potential deals individually? Is our potential purchase in a favorable Location? Is it available at an attractive price? Am I buying it with good timing? If the property lacks a long-term lease with a good credit tenant, it’s future could be uncertain. My office phone number is (877) 313-1868.

Securities offered through Emerson Equity LLC, member FINRA/SIPC. Emerson Equity LLC and Specialized Wealth Management are not affiliated. All investing involves risk. Always discuss potential investments with your tax and/or investment professional prior to investing. Hypothetical scenarios herein are provided to illustrate mathematical principals only, and they are not a promise of performance. There can be no assurance that any investment strategy will achieve its objectives.

by Yardi breeze

The Yardi Breeze team stumbled across a question on a popular multifamily discussion group. It was a simple question, but it set off a flurry of responses. A property manager discovered one of her residents had been keeping an unauthorized dog in the community. They confronted the resident, who said, “This is my partner’s emotional support animal.” The resident’s partner, as you might have guessed, was not on the lease.

So, does the resident’s partner’s assistance animal have a right to be on the property? Or is the property management office within their rights to deny the guest’s animal? After all unauthorized pets

are not allowed on-site and the guest is not on the lease.

HOW WE GOT OUR ANSWER

Given that an emotional support animal (ESA) is not classified as a pet, it’s all too easy for a property manager to respond to this situation the wrong way. Luckily, we were able to get in touch with Victoria Cowart, Director of Outreach and Education at PetScreening, CPM and NAAEI faculty member. A well-known thought leader in the industry, she’s an expert for anything and everything you want to know about assistance animals.

She tells us exactly what this property manager should do. Her answer comes from 42 U.S. Code § 3604 – Discrimination in the sale or rental of housing and other prohibited practices. The relevant excerpt reads as follows:

As made applicable by section 3603 of this title and except as exempted by sections 3603(b) and 3607 of this title, it shall be unlawful:

(f) (1) To discriminate in the sale or rental, or to otherwise make unavailable or deny, a dwelling to any buyer or renter because of a handicap of —

(C) any person associated with that buyer or renter.

DOES A GUEST’S ESA NEED TO BE ON THE LEASE TO ENTER A RESIDENT’S APARTMENT?

As for a guest’s assistance animal, it’s the guest’s association with the renter that matters. The resident asking about their partner’s animal should make a request for reasonable accommodation on behalf of that other person. Remember, residents on a lease can make a request for reasonable accommodation for themselves or their guests.

In a perfect world, the request for accommodation would be made prior to the guest visiting the property with their animal. But we know the way this industry works is in reverse. We usually come across the problem first, then we have to address it. Ultimately, residents are allowed to make a request for reasonable accommodation on behalf of their guests.

CAN A PROPERTY MANAGER DENY SOMEONE’S ASSISTANCE ANIMAL WHEN THAT PERSON ISN’T EVEN ON THE LEASE?

I used to think the same thing when I was in operations. But when you look at the Fair Housing Act, it covers any person associated with the resident. [Note the aforementioned legal citation.]

Many such cases have been adjudicated. One particular case stands out in my memory. There was a mother living in a community, and she wanted her daughter, who has a disability, to be able to bring her assistance animal with her. The property manager felt the FHA only applied to assistance animals belonging to the resident, not guests. The court ruled in the mother’s favor.

DOES THE FAIR HOUSING ACT APPLY EQUALLY TO SERVICE AND EMOTIONAL SUPPORT ANIMALS IN THESE CASES?

Yes, the FHA applies equally to both service and support animals, jointly referred to as assistance animals. In the case I just mentioned about the mother and her daughter’s assistance animal, it’s the mother’s fair housing rights that matter. It’s worth noting that this is not an ADA issue. Because if we were looking at ADA, only common areas open to the public and service animals would be covered. But what we’re talking about is the Fair Housing Act, which covers all assistance animals: service and support animals.

SCOTUS WEIGHS IN ON A CASE THAT IS RELEVANT TO DISPUTES THAT ARISE BETWEEN LANDLORDS AND RESIDENT MANAGERS

By Daniel Bornstein, Esq.

U.S. Supreme Court deals a blow to PAGA, ruling that arbitration agreements governed by federal law may require arbitration of PAGA claims on an individual basis only.

Bornstein Law has said many times and in many ways that if landlords do not take care of their tenants or do not follow the law, a six-figure lawsuit can follow. Most of the time, the defendants are not bad landlords or bad people, but simply have an ignorance of the law. But what about taking care of resident managers?

There is no quicker way to destroy a rental business than having a dispute arise with a resident manager and you are not in compliance with a myriad of laws related to employment.

During the heart of the pandemic, we said that landlords wore many hats. More than housing providers, landlords became de facto credit counselors and social workers by educating tenants on their rights and seeking rental assistance funds. Make no mistake that when a resident manager is hired, the landlord wears the hat of an employer and must act as such.

More than a practitioner in landlord-tenant law, Daniel Bornstein is the Broker of Record for Bay Property Group, a property management company that protects and optimizes the investments of landlords. He is also renowned for his educational seminars and is called upon as an expert witness in complex real estate litigation matters. To avoid or resolve friction within rental units and cauterize risk, Daniel is happy to dispense informed advice to owners, property managers, and other real estate professionals looking to survive and thrive in today’s challenging and litigious rental housing market. Call 415-409-7611 or email daniel@bornstein.law.

As a refresher, “A manager, janitor, housekeeper, or other responsible person shall reside upon the premises and shall have charge of every apartment house in which there are 16 or more apartments, and of every hotel in which there are 12 or more guest rooms, in the event that the owner of an apartment house or hotel does not reside upon said premises. Only one caretaker would be required for all structures under one ownership and on one contiguous parcel of land.”

Cal. Code Regs. tit. 25 § 42

Under California’s employment laws, a resident manager is an employee who must be compensated for their services. Keep in mind that as an employer, landlords must comply with rules related to minimum wage, the maximum rent that may be charged, and the amount of rent that can be credited toward the minimum wages owed. Further complications arise when resident managers are subsequently asked to do handyman work and in this capacity, the resident manager is working outside their scope of duties and works more hours than is offset by the rent reduction.

Resident managers asked to do handyman work and not being compensated properly may have a wage and hour claim against their landlord for minimum wages, overtime, meal and rest break premiums, itemized wage statements, and sick leave.

Other issues abound.

INTRODUCING THE PRIVATE ATTORNEYS GENERAL ACT (PAGA)

Enacted in 2004, PAGA authorizes aggrieved employees to file lawsuits to recover civil penalties for Labor Code violations not only for themselves but on behalf of other employees and the State of California. That’s right - workers can pursue civil penalties as if they were a state agency. The law was written because the besieged Labor Workforce Development Agency(LWDA) did not have enough resources to enforce many labor law violations. PAGA empowers individual employees, such as resident managers, to act as an agent or proxies for the state’s labor law enforcement.

Let’s say an aggrieved resident manager sues his or her employer in order to recover unpaid wages and

penalties. It doesn’t stop there. They can also sue to recover civil penalties on behalf of all the other similarly situated resident managers who were hired in other buildings.

ENTERPRISING ATTORNEYS ARE ALL-TOOWILLING TO FILE THESE LAWSUITS

The litigation does not have to meet class action lawsuit requirements, which means they are much easier to proceed with, and monetary awards that can be levied against the employer can be a staggering amount. Many attorneys salivate over PAGA actions because a lucrative paycheck awaits them.

Even if the employer has Employment Practices Liability Insurance (EPLI), these types of policies may not cover the defense costs associated with disputes over wages and hours, forcing the employer to pay legal fees and any award or settlement out-of-pocket. These threatened penalties often compel employers to choose between settling the case or risking six or even seven figures to litigate the case.

U.S. SUPREME COURT DEALS A BLOW TO PAGA, RULING THAT ARBITRATION AGREEMENTS GOVERNED BY FEDERAL LAW MAY REQUIRE ARBITRATION OF PAGA CLAIMS ON AN INDIVIDUAL BASIS ONLY

When a divided nation set its sites on Roe v. Wade, Bornstein Law was anticipating a decision in Viking River Cruises, Inc. v. Moriana, a case that seemingly resolves some issues that have vexed landlords throughout California.

The law is always cleaner on the page than it is in real life, and for nearly two decades, there have been many questions surrounding PAGA that had to be aired in court.

ONE QUESTION THAT MADE IT ALL OF THE WAY TO THE U.S SUPREME COURT: DOES THE FEDERAL ARBITRATION ACT (FAA) REQUIRE ENFORCEMENT OF A BILATERAL ARBITRATION AGREEMENT WITH RESPECT TO AN INDIVIDUAL CLAIM UNDER PAGA? THE HIGH COURT’S ANSWER WAS YES

This is a victory for California employers that will likely lead to the enforcement of arbitration agreements, compelling individual PAGA claims to arbitration. The court reasoned in Iskanian v. CLS

Transportation Los Angeles that the FAA preempts California state law, which mandated the joinder of non-individual PAGA claims with individual PAGA claims, resulting in incompatibility with the FAA.

The court’s analysis, however, suggests that whether courts will compel arbitration of individual PAGA claims may turn on the specific language of the arbitration agreement at issue. There can be no wholesale waiver of PAGA claims.

If the landlord provides a sweeping arbitration clause that waives the right of the resident manager to bring representative PAGA claims on behalf of the state and all other similarly situated aggrieved employees, this provision is invalid if it is construed to be a wholesale waiver of PAGA claims.

We hasten to say that if there is a severability clause in the agreement that provides that if the waiver provision is invalid in some respect, any “portion” of the waiver that remains valid must still be enforceable in arbitration - the employer is entitled to enforce the agreement insofar as it manded arbitration of the employee’s individual PAGA claim. This is because the U.S. Supreme Court held that federal law preempts the state rule that PAGA actions cannot be divided into individual and non-individual claims.

It would follow that the landlord can enforce the arbitration agreement insofar as it mandates arbitration of a resident manager’s individual PAGA claim, yet the employee would lack statutory standing to continue his or her non-individual PAGA claims in court. Why? Because their individual PAGA claims would have already been adjudicated in a separate proceeding.

Put differently by the court in Moriana, “ When an employee’s own dispute is pared away from the

PAGA action, the employee is no different from a member of the general public, and PAGA does not allow such persons to maintain suit.”

OUR RECOMMENDATIONS FOR LANDLORDS WITH RESIDENT MANAGERS

First and foremost, you must take care of your resident managers and familiarize yourself with the obligations of being an employer. We want to avoid any disputes down the road, but if they occur, we want to rely on ironclad, written agreements with all of your resident managers.

In light of recent case law, take a hard look at your arbitration clause with careful attention to a severability clause.

A recurring theme of our practice is landlords using stale or templated documents from the Internet that do not take into account changing laws. Please review any existing agreements you have entered into with your resident managers with competent counsel.

Keep a meticulous accounting of the hours worked by the manager, and it is prudent to have the employee add up the total hours he or she worked in the course of a month and submit a written certification to the landlord. This will prevent disgruntled resident managers from claiming they worked more hours than they actually did.

Finally, reach out to Bornstein Law, a firm that handles landlord-tenant disputes on a daily basis. If the matter is a bit more convoluted, we can refer you to a qualified attorney who specializes in the nuances of employment law.

WHAT MANAGERS TOLD US ABOUT FIGHTING APARTMENT APPLICATION FRAUD

By Daniel Berlind, Chief Executive Officer of Snappt and President of Berlind Properties.

Rental application fraud prevention has become the scourge of the multifamily industry in the wake of the COVID-19 pandemic. After scanning more than 1 million apartment rental application financial documents, Snappt found that 121,876 had been fraudulently altered, or one out of every eight. The problem is only getting worse. Before the pandemic, 66% of property managers said they’d been hit by application fraud. After the onset of COVID-19, that number skyrocketed to 85%.

Most instances come in the form of altered bank statements, credit reports, personal data, fake pay stubs, and documents that are easily obtained online or via the dark web today but hard to spot with the naked eye. The consequences of letting those fakes through are preventable evictions when the bad actors or fraudster stops paying rent.

Nationally, the typical eviction costs $7,685. The current 12.5% rate of fraudulent applications being submitted to property managers translates into an avoidable expense of $2.8 million per year for a 3,000-unit portfolio. To gain insight into how managers tackle these application screening challenges and scams today and get a handle on their most significant pain points, Snappt surveyed

230 institutional property managers nationally.

Dallas-based Eleven Market Research talked with some of the largest apartment operators in the U.S.; 40% of respondents manage more than 10,000 units. They all focus on the application process and vetting as part of their jobs, with most (84%) leading teams of professionals qualifying rental applications themselves.

Our “2022 Snappt State of Apartment Tenant Screening Survey” shines a spotlight on exactly how large the problem is, what property managers can do to combat it, and the tools, such as artificial intelligence, knowledge-based authentication (KBA), machine learning algorithms, and real-time behavioral biometrics and analytics, to fight this ever-escalating war.

APPLICATION VETTING GOALS AND CHALLENGES

Nearly 9 out of every 10 (89%) survey respondents said making sure applicants can afford the rent and avoiding future payment issues and evictions were significant goals of their application vetting process. But the challenges of hitting those goals today are daunting due to digital fraud and the ease with which bank statements and pay stubs can be altered. Altered documentation was the biggest problem identified in the survey, with 84% of respondents saying it was a

somewhat or highly significant challenge.

Given these issues, property managers do what they can to stop fraud losses before it gets in the front door, including:

Asking for statements from financial institutions such as pay stubs and bank statements (78%)

Using tenant screening software (66%)

Running credit checks (61%)

Implementing identity verification (59%)

Using a solution to detect fraudulent docs (59%)

Checking references (56%)

Fingerprinting and running a criminal background check (56%)

Checking prior convictions (56%)

Linking bank accounts to avoid payment issues (33%)

But even after taking these steps, managers said that all types of fraud in its many forms, bust out fraud, first-party fraud, third-party fraud, and synthetic identity fraud, are still slipping through the cracks.

More than three-quarters of respondents -- 78% -- said the fact that their process wasn’t spotting bad applicants was a somewhat or highly significant challenge. In comparison, 75% put screening reports that contain incorrect information in the same tranche. Finally, the staff time it takes to vet applicants was among the most significant challenges for 69% of respondents. (Previous surveys indicate property staff spends between four and 10 hours on the vetting process for each applicant.)

THREE CORE COMPONENTS OF APPLICATION VETTING

The length and complexity of the process speak to the severity of the challenge property managers face. But just three of these steps were viewed as the most critical by managers, with high percentages rating them as somewhat or extremely important. They were:

• Vetting an applicant’s identity (92%)

• Verifying the accuracy of a pay stub (90%)

• Authenticating bank statements (89%)

While multiple identification verification platforms are available on the market today, only Snappt targets pay stubs and bank issuer statement verification. By unmasking the “digital DNA” behind those documents to ensure they have not been altered, we are able to help managers win the war against application fraud in minutes instead of hours while avoiding high, preventable eviction expenses. Snappt is the only platform that can minimize the risk of tenant fraud and bad debt with revolutionary data-driven fraud detection software.

Snappt, a Los Angeles based real estate technology company, provides a quick and inexpensive data-driven fraud detection service that can accurately spot fraudulent documentation. Snappt is used by four of the top five property management firms in the U.S.

JERRY FURLONG

NMLS #1951320

Vice President, Commercial Loan Officer (949) 940-5950 | JFurlong@myprovident.com

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.

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

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.

CARPET SALES & FLOORING

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.

ADVERTISING & MARKETING

*Statistics pulled from Yello

Apartments.com

Zillow Rentals (206)757-2714

Rent. (626)660-4583

SOCi, Inc. (858)335-2185

Generation NameBirth Years

Zumper (415)361-1351

Financial Designs, Ltd. (858)597-1980

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

Baby Boomers1946-1964

Innovative Building Materials .......... (813)997-3152

Rent Dynamics . . . . . . . . . . . . . . . (435)669-4628

Gen X 1965-1980

Apartment News Publications......................

APARTMENT BROKERAGE/SALES

Millennials1981-1996

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

Gen Z 1997-2012

APPLIANCE PARTS & REPAIR

Appliance Parts Company (480)755-5540

APPLIANCE SALES

R & B Wholesale Distributors, Inc. (909)230-5400

ASPHALT & ASPHALT MAINTENANCE

AMS Paving, Inc.

ATTORNEYS-AT-LAW

Heinz & Feinberg (619)238-5454

Todd A. Brisco & Associates, APC (714)634-2814

Kimball, Tirey & St. John LLP

BACKFLOW TESTING

Pacific Backflow Company, Inc. (760)639-4000

San Diego Backflow Testing, Inc. (619)916-8054

BANKS

Chase Commercial Term Lending (619)464-1597

BATHROOM REFINISHING

Pacific Bathtub Refinishers Inc......... (619)772-2535

TASORO ........................... (330)429-1389

BATHROOM REMODELING & REFINISHING

American Bathtub Refinishers......... (619)265-8126

BROKERAGE

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

CABINET AND COUNTERTOPS

Grand Design Kitchens (760)789-0992

TASORO (330)429-1389

CARPET CLEANING

Cleanology Housekeeping Personnel Service (619)281-2532

America’s Finest Carpet Company

J & C Carpet Company

Sid’s Carpet Barn, Inc.

KJ Carpet Wholesale (909)455-0180

CLEANING & JANITORIAL SERVICES

Atlas Property Service ............... (858)386-4578

DAPA Janitorial Services Inc. “Customized Cleaning Soultions” (619)221-9292

Pacific Coast Cleaning, Inc.

SD Construction Cleaning & Janitorial LLC

................................... (619)534-1189

Professional Maintenance Systems, Inc. (619)549-1821

COIN-OPERATED LAUNDRY EQUIPMENT

All Valley Washer Service

WASH Multifamily Laundry Systems (800)421-6897

Washtek, Inc.

PWS Laundry/Alliance ............... (323)490-1868

CONSTRUCTION MANAGEMENT

Southern Cross Property Consultants (858)945-2629

CONSTRUCTION & REMODELING

Larry O’Dell Construction

Matrix Construction Services

TASORO ........................... (330)429-1389

Workright Property Services Inc ....... (858)751-6312

Dexcore Restoration (619)993-3417

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

McMillin Contracting Services (619)401-7000

DECK COATING

Life Deck Coating Installations . . . . (619)262-8600

DRAWERS & DRAWER PULLS

TASORO (330)429-1389

ELECTRICAL CONTRACTORS

Kennedy Electric (858)922-3218

EMERGENCY SERVICE FLOOD/ FIRE

Commercial Restoration Company (858)847-9886

BELFOR Property Restoration (619)318-2807

ATI Restoration, LLC (951)744-0057

ENERGY EFFICIENCY CONSULTING

ICF (503)816-6002

ENVIRONMENTAL: ASBESTOS/ LEAD/ MOLD

Superior Abatement Services, Inc. (619)458-1763

Alliance Environmental Group, Inc. (619)668-1958

FINANCIAL SERVICES

MyPoint Credit Union (858)268-7203

FIRE EQUIPMENT SALES & SERVICE

Symons Fire Protection . . . . . . . . . (619)588-6364

Bay Alarm Company (858)205-7223

A-Tech Systems (909)444-9695

Standard Electronics (619)596-9950

CVA Security (619)726-8200

Time and Alarm Systems (858)245-1188

FITNESS EQUIPMENT & SALES

Advanced Exercise (303)996-0048

Opti-Fit . . . . . . . . . . . . . . . . . . . (619)822-7370

FLOOD DAMAGE

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

BluSky Restoration Contractors, LLC (858)336-9695

Camp Construction Services (713)413-2267

FSI Construction (713)690-5330

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

McMillin Contracting Services (619)401-7000

HEATING & AIR CONDITIONING

Sam’s Heating and Air Conditioning, Inc.

INSURANCE

Farmers Insurance McWhirter Agency (619)463-7320

Snapp & Associates Insurance Services, Inc. (619)254-9478

LeaseLock (310)906-2900

State Farm Insurance Kathy Jurgensen (951)225-4940

Pro Specialty Insurance Services (503)799-6449

INTERIOR FINISHES

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

INTERNET ADVERTISING SERVICE

RAPIDSOFT SOLUTIONS (619)752-4929

INTERNET SERVICE PROVIDER

Cox (949)563-8176

Dish Fiber .......................... (951)201-3544

Quantum Fiber

KITCHEN REMODELING

McMillin Contracting Services (619)401-7000

LANDSCAPE MAINTENANCE & SERVICE

MSE Landscape Professionals, Inc. (760)579-2574

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

Pacific Green Landscape, Inc. (619)390-9962

LEAK DETECTION

Cable, Pipe & Leak Detection, Inc.

LENDERS

Luther Burbank Savings (858)436-1819

LIGHTING

TASORO (330)429-1389

MAINTENANCE & REPAIR

PCC Trip Hazard Removal (760)658-6116

Pacific InterWest . . . . . . . . . . . . . . . (657)276-1629

MAINTENANCE SUPPLY

AZP Multifamily

MARKET RESEARCH

ALN Apartment Data (800)643-6416x218

ODOR CONTROL

Aire-Master of Coastal California (858)342-5353

PAINT MANUFACTURERS & SUPPLIES

Dunn-Edwards Corporation . . . . . . . (619)884-3866

Sherwin-Williams Co. (714)404-8212

PAINTING

Pro-Tech Painting Company

PARKING MANAGEMENT SOFTWARE

Reliant Parking Solutions

PAVING MAINTENANCE

Eagle Paving ....................... (858)486-6400

PEST CONTROL

Kilter Termite and Pest Control (714)348-0488

Lloyd Pest Control................... (619)668-1958

ATCO Pest Control (760)418-4573

PLUMBING SUPPLIES

Lixil Water Technology Americas . . . . (760)215-5803

PROPERTY MANAGEMENT

Wakeland Housing & Development (619)326-6213

Rowland Realty ..................... (619)223-1621

PROPERTY MANAGEMENT PERSONNEL

BG Multifamily

The Phoenix Staffing Company ....................

InterSolutions (858)381-4378

PROPERTY MANAGEMENT SOFTWARE

AppFolio ........................... (805)308-6274

Yardi Systems (805)699-2040

Domuso (469)286-9619

SafeRent Solutions .................. (419)367-7615

REAL ESTATE

ACI Apartments Office (619)299-3000

Voit Real Estate Services . . . . . . . . . . (858)458-3337

Lee & Associates Commercial RE (760)929-7846

Covest Properties Inc. (760)214-9240

RENOVATIONS & REMODELING

McMillin Contracting Services (619)401-7000

TASORO (330)429-1389

REPIPING

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

RESIDENT SURVEYS

SatisFacts Research . . . . . . . .(866)655-1490

RESIDENT RETENTION

Parcel Pending (949)490-6987

ROOFING

AMS Construction (949)388-0289

Commercial & Industrial Roofing

Sully-Jones Roofing . . . . . . . . . . . . . (800)611-3110

A-1 All American Roofing Company (858)539-9113

Guardian Roofs (714)633-3619

SECURITY GUARD PATROL

Security First (619)243-3992

Securitas Mobile Guarding (619)214-4919

SECURITY SERVICES

City Wide Protection Services, Inc (619)929-2628 California Safety Agency

JDS Security ....................... (619)781-8694

Stealth Monitoring ................... (214)341-0123

SEISMIC RETROFIT

Optimum Seismic (818)625-2908

SMART TECHNOLOGY

ADT Smart Communities (562)712-7504

Ivy Energy (858)682-3489

Hotwire Communications (954)809-9577

Armada Power (909)730-6509

SUBMETERING / BILLING SERVICES

Conservice Utility Billing & Mgmt

TENANT SCREENING

KCB Screening LLC ................. (714)384-7047

TOWING SERVICES

Western Towing ..................... (619)997-0904

TRAUMA SCENE CLEAN UP

BIO-ONE of Poway (858)261-4527

TREE SERVICES

Four Seasons Tree Care (760)822-0309

WASTE MANAGEMENT

WasteXperts, Inc

WATER DAMAGE RESTORATION

Generation Contracting & Emergency Services, Inc. (858)705-1501

Restoration Management Company (858)935-1170

Hometown Restoration . . . . . . . . . . (858)663-8330

First Onsite ......................... (858)880-5419

WINDOWS

Newman Windows and Doors (760)438-8080

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

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

BlueInk 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. socalrha.org

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