Southern California Rental Housing Association Rental Advisor Magazine - September 2024

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2024

EXECUTIVE OFFICERS

President

Aiesha Blevins, Greystar

President-Elect

Buck Buchanan, Buchanan Property Management Corp.

Vice President

Todd Henderson, Independent Owner

Secretary Matt Ruane, Liberty Military Housing

Treasurer Abigail Rex, American Assets Trust, Inc.

MAGAZINE STAFF

Publisher Apartment News Publications, Inc.

Design & Layout Travis Watson, Production Director Editorial Review Lindsey Lee, Marketing Manager

ASSOCIATION STAFF

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

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

Allison P ster, CPM®, ARM®,

Legislative Chair Greystar

Immediate Past President

Lucinda Lilley, CPM®, CAPS®, GRI®,

Bridging Influence

2024 DIRECTORS

Alex Winborn, H.G. Fenton Company

Eric Sutton, Creaser & Warwick, Inc.

Jennifer Ford, Douglas Allred Company

Kayla Roeder, CPM®, ARM®,

Cambridge Management Group, AMO®

Kimmi McBryde, Cushman Wakefield

Lisa Mason, Baldwin & Sons

Lorri Goldmann, Avenue 5 Residential

Mark Feinberg, Heinz & Feinberg

Patrick Kappel,

Molly Kirkland, mkirkland@socalrha.org 858.751.2200

Kim Zebroski, kzebroski@socalrha.org 858.751.2220

Lindsey Lee, PCM Digital Marketing, CDMP, Marketing Manager llee@socalrha.org 858.751.2218

Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070

Evan Prado, Events Coordinator eprado@socalrha.org 858.7521.2214

Scott Ledesma, Generation Contracting & Emergency Services, Inc.

Shannon Kelly, Independent Owner Kappel Real Estate

HONORARY LIFE ADVISOR

Wesley Harker

Our Address

Southern California Rental Housing Association

9655 Granite Ridge Drive, Suite 200 San Diego, CA 92123 San Diego O ce: 858.278.8070

Toll Free: 888.762.7313

Fax: 888.871.5229

socalrha.org

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

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

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

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OUR VISION

Reenvisioning quality housing for all

OUR MISSION

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

SCRHA Housing Provider & Resident Rights and Responsibilities

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

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

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

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

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

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

Adherence to housing quality and equity standards and regulations

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

Review and follow rental agreement terms, including timely rental payments

Maintain a clean and habitable home

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

Aiesha Blevins

2024 President Southern California Rental Housing Association

President’s Message:

Let’s Defeat Proposition 33

With the turn of the calendar to September, it is impossible to deny that we are in the full swing of a critical election year, and all of our attention must turn to defeating Proposition 33 . Proposition 33 is the third attempt by Michael Weinstein and the AIDS Healthcare Foundation to repeal Costa-Hawkins despite resounding defeats in 2018 (Proposition 10) and 2020 (Proposition 21 . Once again, we are working hard to defeat this latest attempt to repeal the Costa-Hawkins Act and open the door to rent control in Southern California and the entire state

If passed, Proposition 33 would remove the protections under the Costa-Hawkins Act and allow local jurisdictions to have the authority to impose or expand rent control and remove protections for single-family homes and condominiums currently provided under AB 1482 . Additionally, it would also prohibit rent increases upon vacancy

Our robust efforts to defeat Proposition 33 require the support of all of our members I invite you to join us for a Town Hall on September 13 from 10:00 AM to Noon at Pacific Southwest Association of Realtors® South. Register to attend to learn about this third attempt to repeal Costa-Hawkins protections at the statewide ballot box, how it could impact your investment and livelihood, and how you can help defeat this attack on your property rights .

As the election nears, please take the following steps to support our advocacy and help us defeat Proposition 33

1 Register to Vote – Register to vote and learn more at registertovote .ca .gov . Even if you’re already registered to vote, check your registration status and make sure that your address is up to date!

2 Subscribe to SCRHA Updates – SCRHA keeps you informed on the issues affecting housing providers. Sign up today at socalrha .org to receive weekly emails and updates on upcoming classes and events

3 Follow SoCalRHA on Social Media – Keep up with the latest news and happenings on your favorite social media platform . Be sure to follow @SoCalRHA on Twitter, Facebook, Instagram or LinkedIn

Once you have confirmed your voter registration status and subscribed to our communications, share the information you learn with your friends, family, and colleagues Proposition 33 has the potential to make the California housing crisis worse and impact the lives of every resident .

As President of SCRHA for these past two years, I have witnessed first-hand the power of the industry when we work together, and I have full faith that we can unite to defeat Proposition 33 .

Join us for a night of celebration and inspiration at the 30th Annual Mark of Excellence Awards Ceremony! Register early to secure your tickets at the best rate You won't want to miss your chance to be part of an unforgettable evening honoring outstanding achievements of the rental housing industry.

Early-Bird Registration through September 15

Individual: $200 Members | $275 Non-Members

Table of 10: $2,000 Members | $2,250 Non-Members

Registration from September 16 - October 15

Individual: $250 Members | $225 Non-Members

Table of 10: $2,500 Members | $2,750 Non-Members

Alan Pentico, CAE

Executive Director

Southern California Rental Housing Association

Executive Director’s Message:

Make the Most of Your SCRHA Membership

If you’ve visited the website recently, you will have noticed a new look! We’re excited to roll out these changes to make sure our website meets accessibility guidelines and provides an enhanced mobile experience . While there have been upgrades, how you log in to access your member benefits remains the same.

Another recent update is the scoring system that may pop-up when you visit the website . This pop-up is more than just a request for feedback. It’s a way to ensure we provide you with the support you need most . Your scores and comments are invaluable to us, guiding our efforts to enhance your experience. So, when you see this pop-up, we’d greatly appreciate you sharing your thoughts .

While there is a new look and survey feature, you will still log in to your account to access your Member Compass and register for classes and events Please take this opportunity to review your account and ensure your staff roster is current. Remember, your member benefits extend to your entire staff and team, but they will need an individual user account to give them access to our resources . If you have any questions, there are new tutorials available in your Member Compass or you can call us at 858 .278 .8070 for assistance .

Your Member Compass portal is the gateway for managing your membership and accessing the resources included with your membership . This is where you can pay outstanding invoices, add or remove staff members, and update your personal or company profile. You’ll also find quick access links to our rental forms on the Azibo platform and publications such as the Rental Advisor Magazine,

white papers, and the blog . If you’re looking for a Supplier or Property Management Company, our

BROKER PROGRAM

Helping a client close on their first rental property?

Get them started out right with a gift membership to the Southern California Rental Housing Association.

CALL 858.278.8070 or EMAIL MEMBERSHIP@ SOCALRHA.ORG

Support leaders in rental housing by contributing to our Rental Housing Scholarship program.

Your donation to the Rental Housing Scholarship is an investment in the future of our industry.

DONATE AT SOCALRHA.ORG SCHOLARSHIP PROGRAM

SOUTHERN CALIFORNIA RENTAL HOUSING
LICENSE #570472

SPONSOR THE MARK OF EXCELLENCE AWARDS

Diamond Sponsorship

$8,500 SCRHA Members | $10,500 Non-Members

One Table of 10

Opportunity to Set Up “Nominee Merch Giveaway” Table

Two Sponsor Reps in the Awards Presentation Script

Early Access to SCRHA Room Block

Sponsoring Mark of Excellence elevates your brand visibility in the rental housing community and provides unparalleled access to industry leaders and decisionmakers.

Expected Attendance: ~600

Event Historically Sells Out

Complimentary Group Photo

Ruby Sponsorship

$6,500 SCRHA Members | $7,500 Non-Members

Six (6) Complimentary Tickets

Purchase 4 Additional Tickets to Reserve a Table

Special Recognition at No-Host Bars

Two Sponsor Reps in the Awards Presentation Script

Sapphire Sponsorship

$5,500 SCRHA Members | $6,500 Non-Members

Four (4) Complimentary Tickets

Purchase 6 Additional Tickets to Reserve a Table

Two Sponsor Reps in the Awards Presentation Script

Emerald Sponsorship

$3,250 SCRHA Members | $4,000 Non-Members

Three (3) Complimentary Tickets

Purchase 7 Additional Tickets to Reserve a Table

Two Sponsor Reps Included in the Awards Presentation

Script

Crystal Sponsorship

$1,500 SCRHA Members | $2,500 Non-Members

Two (2) Complimentary Tickets

Purchase 8 Additional Tickets to Reserve a Table

Two Sponsor Reps in the Awards Presentation Script

Recognition at Event & on Event Website

Pearl Sponsorship

$1,000 SCRHA Members | $1,500 Non-Members

Two (2) Complimentary Tickets

Purchase 8 Additional Tickets to Reserve a Table

Two Sponsor Reps in the Awards Presentation Script Recognition on Event Website

CE LE B R ATIN G

CE LE B R ATIN G

Entrada | Greystar

Gail Greer Company

El Pedregal | Cirrus

Yvonne Coover-Stone Company

Otto Emme Company

Wilma H. Healey Company

BWY Development Company

Limoncello

Hitching Post Motels, Inc.

Sara E Siebrand Company

Whalen Properties

CE LE B R ATIN G

Jack Zolezzi Trust

Stella Weil Company

GTF Properties

Dick Martin Company

Donna Webber Company

John Belanich Company

Stephen and Janice Boner

Creaser & Warwick, Inc.

Sully-Jones Roofing

DNC Limited Partnership

Joseph Greeno Company

The Kevane Company, Inc.

Elinor van den Akker Company

Gunter and Christa Zittel

RG Investment Real Estate Services

Caesar Oriol Company

Robinson & Associates

Fred and Shirley Salzer

Marilyn Mehr Company

Fleetwood Properties

Robert Bell Company

Rolf Steeve Company

Kenneth Rundlett Company

Gregory West Company

Laurence and Carolyn Kaiser

Brian Smith Company

Errol Tonsky Company

Gregory Robinson Company

William Howland & Assoc ., Inc .

Richard Hancock Company

Sierra Mar Properties LLC - Paul Hasley

Mike Harness Company

Mary Ann Tarantino Company

Centre City Apartments

Terry Moore, CCIM, Inc.

Elizabeth Dreisbach Company

Jerry Conway Company

IHA Partners Inc.

John Veskerna Company

Jeffrey Malik Company

Chicano Federation

G. Beit-Ishoo / SeaDate

George and Celida Haddad

Karl H Nester Company

Al Smithson Company

Longley Family Trust - Nancy Longley Trustee

Sunrise Management Company AMO

Waltwood Properties

Lia Shen Company

Marilynn Nemeroff Company

Nancy Mullins Company

NLJ, LLC

Brothers II

Pacific Rim Investment

T1 PropertiesE

Legar Management

Veuger-Bissonnette

M. C. Contracting Service

Josephine Cree Company

Belvue Terrace

RJW Properties, Inc.

Canyon Rim| Fairfield Residential

Laura Sperry Company

Wakeland Housing & Development

Susan McDonald Nance Company

ATI Restoration, LLC

Stephan Hegyi Company

David Olson Company

James Lybarger Company

Muraoka Enterprises Inc.

People Helping Others Prop. Mgmt.

Steve Veach/Louise Torio

Law Offices of Andrew C. Laubach

Oscar and Catharina Herrera

Walz Properties| Fortuna Investment Group

Mark Marshall Company

Robert Hansen Company

Elizabeth Dammassa-Uglik Company

REC Properties| Peasquitos Point Apts.

W Joe and Marianne McLean

Dennis & Tina Daneri

Matt Andersen and Brett Andersen

Mira Bella Apartments | Simpson Property Group

BNM Investments LLC

Araz Yacoubian Company

Sherry Bird Company

Eric Lunde-Lunde Family Trust

Sciuto Properties

Robert and Marilyn Kingsley

Tom Brady Company

Axiom Real Estate

Carolyn E . Scheidel

Barry Treahy Company

Dennis and Marian Pierce

Susan Cotsirilos Company

Jesus and Yolanda Arroyo

Tricia Langill Company

Betty Bark Company

David M. Pierce

Maya Linda Apartments

Tamra Fuller Fountas

Victor A and Colleen F Maalouf

Buchanan Property Management Corp.

Brian Steer Company

Anna Thompson Company

Eagle Property Management

Arbors at California Oaks Apartment Homes

Welcome New Members

PROPERTY MANAGERS

Beard Property Management

INDEPENDENT OWNERS

Anne-Marie Shafer

Blake Peterson

Bruce Sato Company

Chris Shern Company

Coldwell Banker Realty

Donway Partners

SUPPLIERS

Greta Inc

John Prues & Troy Turner

La Jolla Colony Properties LLC

Polk Street Partners

Windsor Ranch Penasquitos | Windsor Communities

Dnuevo Design, Inc Knight Commercial

Governor, Legislature And Supreme Court Collude To Crush Tax Reform

In a shocking exercise of raw political power that comes with one-party rule, the California Supreme Court has removed the Taxpayer Protection and Government Accountability Act, a qualified initiative, from the November ballot . Doing the bidding of Gov Gavin Newsom and the state’s supermajority legislative leaders, they have ignored the rights of more than 1 4 million California voters who signed petitions to put the initiative on the ballot .

The Taxpayer Protection Act, or TPA, is the latest battle in the 46-year war over whether it will or will not be easier to raise taxes in California TPA was sponsored by the Howard Jarvis Taxpayers Association, the California Business Roundtable, and the California Business Properties Association It had broad support among hundreds of business associations, chambers of commerce and virtually every taxpayer association in California all concerned with the preservation of Propositions 13 and 218

Proposition 13, adopted by voters in 1978, cut property taxes and capped annual increases in taxable value It requires a two-thirds vote of each house of the legislature to increase taxes at the state level and imposes voter approval requirements for local taxes. Proposition 218

solidified the right to vote on all local taxes and set rules for fees on property so that they could not be imposed as an end-run around Proposition 13’s property tax rate cap .

Tax-and-spend interests have sought to destroy Propositions 13 and 218 ever since, persuading courts to carve loopholes in their constitutional protections and invent new ways for government agencies to raise revenue . Taxpayer advocates, often led by the Howard Jarvis Taxpayers Association, have come back time and again with new initiatives to close those loopholes .

That’s exactly what the Taxpayer Protection and Government Accountability Act was written to accomplish — it restored, not revised, the state constitution .

But the California Supreme Court, in defiance of reality, declared that the TPA was a “revision” of the constitution, something that can only be launched by the legislature through a constitutional convention .

A close look at the decision reveals that the court has now devolved into just another tool of the progressive

power structure in California Ignoring over 100 years of case law recognizing the court’s duty to “jealously guard” the initiative power, the court now sees no value in the right of the sovereign people to control their government . Hiram Johnson must be spinning in his grave

Now, the threat to Proposition 13 has never been greater . The Legislature has placed two proposed constitutional amendments on the November ballot that would make it easier to raise taxes and make it harder for taxpayers to ever again do anything about it .

Assembly Constitutional Amendment 1 (having been amended into what is now ACA 10) would eliminate the two-thirds vote rule for local bonds – which are repaid only by property owners . This two-thirds voter requirement has been a part of the California Constitution since 1879 and its elimination would open the door to virtually unlimited property taxes . Moreover, the tax increment that comes with these bonds creates a lien on real estate, and the failure to satisfy the obligation can result in foreclosure

Just as bad if not worse is Assembly Constitutional Amendment 13 Throughout California’s history, all constitutional amendments have needed a simple majority vote of the electorate to pass ACA 13 would increase this threshold selectively; citizens’ initiatives that require a two-thirds vote to raise taxes or borrow money would require a two-thirds vote to pass. Even Proposition 13 would have narrowly missed that mark as would all previous constitutional revisions and virtually every initiative since the early 1900’s .

Today, TPA proponents are justifiably angry and disappointed . But like so many instances when progressives overplay their hand, there is a swift and ferocious reaction . Here, the extraordinary coalition of hundreds of taxpayer, business, and property rights organizations – as well as their thousands of members – aren’t going to give up . We all are committed to saving California, no matter how long the battle lasts

Jon Coupal is the President of the Howard Jarvis Taxpayers Association (HJTA). HJTA, with offices in both Los Angeles and Sacramento, is the largest taxpayers association in California with a membership of over 200,000 . Founded by the late Howard Jarvis, the author of Proposition 13, HJTA’s name is synonymous with tax relief and the uncompromising defense of the California homeowner .

JOIN SCRHA

Trusted Resource Hub

Southern California Rental Housing Association is the trusted source of support for rental housing providers in San Diego, Imperial, and southern Riverside Counties.

SCRHA Membership gives you access to a comprehensive resource hub so you can confidently face regulatory challenges and operational issues with expert guidance.

ADVOCACY REPRESENTATION

SCRHA is a strong and effective advocate for rental housing providers. We fight for favorable policies and laws at all levels of government

RENTAL FORMS & WHITE PAPERS

Ensure compliance with our comprehensive library of rental forms, notices, contracts, and white papers

OPERATIONAL ADVICE

Navigate landlord-tenant issues with confidence when you consult our seasoned professionals for expert guidance and advice

EDUCATIONAL RESOURCES

Keep informed on industry trends and best practices with classes and webinars that enhance your knowledge and skills

NETWORK OF PROFESSIONALS

Do business with professionals who support the industry with our trusted network of Suppliers available online

DON’T FORCE SAN DIEGO LANDLORDS TO BECOME THE ‘SMOKING POLICE’

No one likes secondhand smoke .

But is it really a good idea to turn landlords into the “smoking police” in apartment buildings?

The Carlsbad City Council seems to think so with their recent vote to ban all types of smoking inside and outside multi-unit apartment and condo buildings . While this might seem like a step towards healthier living environments, it is a misguided decision that fails to address this complex issue and creates a host of new problems

First, this ordinance would force landlords to take on a city enforcement role, cracking down on any use of tobacco and cannabis — both legal in California — in private homes . That’s impractical and unfair .

Second, it’s a legal minefield for landlords, who could face lawsuits from tenants or third parties claiming insufficient enforcement or wrongful eviction due to smoking violations .

There’s a better way to address smoking that bothers a smoker’s neighbors, and it’s already happening through rental agreements at voluntarily smoke-free properties . After all, most apartment properties have already banned smoking because of market demand — an increasing number of people want to live in smoke-free environments .

This trend has been in place for over a decade, supported by resources and guidelines from industry associations like the Southern California Rental Housing Association and legislation such as California’s Senate Bill 332

The notion that a local ordinance will somehow prevent smoking more effectively than existing policies is flawed.

Advocates for multifamily smoking bans often overlook the fact that cities and counties that pass these laws do little to nothing to enforce them The police will not respond to smoking complaints, and

Continued from page 20

the onus falls completely on the housing provider to enforce the law. It is very challenging to enforce a smoking ban within multi-unit housing. Even with explicit rules in the rental agreement, supported by state law, humans will still be humans and skirt the rules.

Additionally, there is the delicate balance that applies to medical marijuana smokers, where housing providers must balance lease violations with reasonable accommodations.

Sadly, the Carlsbad City Council’s action will likely lead to more evictions. The process for dealing with tenants who violate smoking bans remains complicated. Evicting a tenant for smoking is a long and difficult process that can take many months.

Renters also need to understand that apartment owners and managers might be doing all they can to prevent smoking or remove a smoker, but this is balanced with tenant protection laws and due process rights.

With all the efforts underway throughout the region and state to prevent displacement, keep people housed, and prevent homelessness, is forcing people out of their homes due to smoking the best path forward?

There are steps many housing providers already take to stop smoking at their properties, and it starts with the rental agreement and the choice by a renter to seek out a nonsmoking multifamily property. “No Smoking” signs on the property can help. Our association can provide best practices to help property owners and managers transition properties to non-smoking.

Again, landlords should not be forced to become the smoking police. The complexities and enforcement challenges make it clear that voluntary policies, supported by clear guidelines and market demand, are the most effective way forward.

Alan Pentico, CAE, is the executive director of the Southern California Rental Housing Association.

CALENDAR Register at socalrha.org

Register for events and classes online at socalrha.org. Please note, that all in-person classes

September 10

Solar Savvy:

Questions? Contact us at events@socalrha.org or 858.278.8070

10:00A - 11:00A

Lowering Your Bills in a High-Rate World Webinar

Looking to protect yourself from rising electricity costs without a significant upfront investment? Join our educational session on solar energy to learn more about solar funded systems and navigating utility price increases

September 18

New Member Orientation

Webinar

September 13

Rent Control Ballot Measure Town Hall 10:00A - 12:00P

PSAR South

Don’t miss this opportunity to learn how the passage of Prop 33 might impact you and what you can do to help SCRHA fight back against this measure The event will feature a panel of speakers who will go over the various impacts of expanded rent control on the housing market ICON KEY

10:30A - 11:15A ICON KEY

Our New Member Orientation is your gateway to understanding what makes SCRHA special This orientation is designed to introduce you to SCRHA mission, values, and the various ways you can get more involved in the SCRHA . Free for members to attend

ICON KEY

September 19

NextGen Leadership Professional Development Mentorship Roundtable

3:00P - 6:00P

Don’t miss this unique opportunity to expand your professional network, broaden your horizons, and acquire invaluable insights from renowned mentors, as you navigate your path to success in property management

ICON KEY Metro Apartments

UPCOMING EVENTS:

10/22: Independent Rental Owner Council 10/23: NextGen Bowling Tournament October

11/01: Mark of Excellence Awards Ceremony

11/07: Fair Housing Part I

11/14: Fair Housing Part II

11/19: Rental Marketing Workshop: Creating a Listing That Works November

Financial advisory

The Long Term Plan for Partial Interest Properties

Since 2001, I have worked in the partial-interest real estate industry, helping investors complete taxdeferred (potentially forever) 1031 Exchanges from their individually owned properties to partial interests in larger institutional properties across the United States. A common question I hear is “If I buy part of this (for example) 300-unit apartment property in Dallas, what happens when it sells some time in the future?” This month’s article will answer that question.

Properties Bought According to Business Plans

I work with a group of management companies that I have known for many years When these companies send their latest property to me, I will perform my own due diligence review on those individual offerings. If

I like what I see, I will then share that deal with my clients . I prefer properties that come with business plans – conservative ones I have found that any property can look great on paper if future income is projected too aggressively: Anybody can say they will raise rents 10% every year forever, but few can deliver on that promise A complete and thoughtful business plan will always include an exit plan . How long does the manager plan to hold this property, collecting potential income for investors, before selling for a potential profit? I think a hold period for any real estate of “7-10 years” is conservative

When Property Sells at the End of the Business Plan

Since I have been in this business for 23 years and have completed over 525 1031 Exchanges for clients, so I have seen a lot of properties go “full cycle” and

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 five hundred twenty-five 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

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.

sell When your partial interest property sells, you will be in the same position that you were in before you bought it . You can take the cash and pay taxes, (the IRS would never want to stop you from doing that), or you can complete another 1031 Exchange to defer (potentially forever) your taxes again . If you choose to do another 1031 Exchange, you’ll be able to buy any type of investment property that you want: another partial interest property, or a property on your own . I have had some investors do all three of these from the same property sale: 1 Take a bit of cash and pay taxes on just that amount, 2 . Exchange some of their equity into a partial-interest DST property and 3. Purchase a property on their own

A 1031 Exchange Case Study

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

Back in 2007, I helped a client purchase a TIC interest in a property as part of a 1031 Exchange . (A DST can be considered a modern, improved advancement in technology compared to the TIC structure .) This property was very successful, and in 2012 he received $800,000 of sales proceeds . He received $200,000 of this as cash boot (he needed to pay tax on this amount), exchanged $250,000 into a DST property and spent the remaining $350,000

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.

as a down payment on a single-family investment property in Palm Springs that he intended to rent to short-term tourists on AirBNB . He later decided that the short-term rental business wasn’t for him and sold that property to exchange into another DST .

Partial Interest Properties Provide Great Flexibility

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.

*Statistics pulled from Yello

Many of my clients are looking to de-complicate their lives by gradually exiting from the active management of their real estate holdings. The flexibility mentioned in the previous paragraph allows them to sell one of their properties and “try it out .” If partial ownership isn’t for them, they can then exchange back into “traditional real estate ” Most of my investors do like their partial interest properties and will follow their first purchase with additional acquisitions from more sales and 1031 Exchanges Are partial interest properties something that you’re interested in trying?

They Want an Offer, and They Want it NOW

My toll-free office number is (877) 313-1868.

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

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.

Your Nominating Committee’s Slate of Officers 2025

At the request of Nominating Chair

Lucinda Lilley and President Aiesha Blevins, I am sending this letter to report on leadership planning and the Nominating Committee process as well as to announce the 2024 Nominating Committee’s 2025 slate of Officers and Directors.

The following is the nominating process as outlined by the Southern California Rental Housing Associations Bylaws and Board Policy, which demonstrate the important separation of the Board of Directors and the nominating process for the greater benefit of the SCRHA’s members

THE BOARD EXECUTIVE TERMS

Each Board member is eligible for three two-year terms on the Board . That time can be extended by as much as three years if they are appointed PresidentElect in the sixth year and subsequently move on to President and then Immediate Past President

THE NOMINATING COMMITTEE

To ensure there is no undue influence from the Board on the nominating process, the Nominating Committee operates independently of the Board of Directors, chaired by the Immediate Past President The current President appoints at least three additional volunteers to participate in the committee along with the Executive Director (All committees and task forces must have a staff person present. Executive session is the only exception)

2024 NOMINATING COMMITTEE

Lucinda Lilley, Immediate Past President/Chairperson

Aiesha Blevins, President

Buck Buchanan, President Elect

Matt Ruane, Secretary

Jennifer Ford

Scott Ledesma

Staff Liaisons: Alan Pentico, Executive Director

THE PROCESS

The Nominating Committee’s work starts anew every year . Their task is to review the best industry leaders for the Association at that point in time and make their best recommendations for the future Executive Committee that will fulfill the current needs of the Association . As much as it seems that there has been advancement of Executive Committee members over the years, in reality, there is a regular ebb and flow of Executive members, on and off the committee, for varying reasons

MEMBERSHIP APPROVAL AT THE ANNUAL MEETING

The results of the Nominating Committee’s work, including the slate of Executive Officers for the following year, Returning Directors, and New Board Directors are presented to the SCRHA Membership at the Annual Meeting of the members . Only the general membership can approve the slate by vote

BOARD ENDORSEMENTS

From time to time, the slate has been presented to the SCRHA Board of Directors, and the Board has chosen to give their endorsement of the slate . By no means does this give the Board the authority to return a slate to the Nominating Committee The discussion and approval of the slate is to occur by, and in full view of, the SCRHA Membership at the Annual Meeting

An example, if the Board of Directors chose to have a vote to endorse the slate of candidates and the slate was not approved by the Board, that information is to be provided to the members at the annual meeting where the Members vote on the slate .

THIS YEAR’S SLATE

This cycle we have the Executive Committee, which adds three new individuals, five new Board members, three renewing members of the Board, and 10 returning (mid-term) members of the Board . Aiesha Blevins will extend her term due to her position as Immediate Past President There will be 19 board members in total

YOUR NOMINATING COMMITTEE’S SLATE OF OFFICERS FOR 2025

Recommendation: The Nominating Committee is recommending the following slate of Executive Officers and Directors for the 2025 Southern California Rental Housing Association Board of Directors .

EXECUTIVE OFFICERS

President: Buck Buchanan, Buchanan Property Management Corp .

President Elect: Allison Pfister, Legislative Chair Appointment, Greystar Residential

Vice President: Alex Winborn, H G Fenton Company

Secretary: Jennifer Ford, Douglas Allred Company

Treasurer: Matt Ruane, Liberty Military Housing

Legislative Chair: Lisa Mason, Baldwin & Sons

Immediate Past President: Aiesha Blevins, Greystar Residential

DIRECTORS STARTING NEW (RETURNING) TWOYEAR TERMS

• Alicia Banister, The Nash, NEW

• David Antczak, David Antczak Co., NEW

• Daniel Hernandez, Sunrise Management Company AMO, NEW

• Blair Madrid, American Assets Trust, Inc., NEW

• Robert Shapiro, Onyx Property Management, NEW

• Alex Winborn, H.G. Fenton Company, 2nd Term

• Kimmi McBryde, Cushman Wakefield, 2nd Term

• Mark Feinberg, Heinz & Feinberg, 3rd Term

FYI, MID-TERM DIRECTORS

These are Directors that will return next year to complete their current two-year term. No vote required.

• Dr. Lorri Goldmann, Avenue5 Residential, 1st Term

• Lisa Mason, Baldwin & Sons, 1st Term

• Kayla Roeder, Cambridge Management Group, AMO, 1st Term

• Patrick Kappel, Kappel Realty Group, 1st Term

• Eric Sutton, Creaser & Warwick, Inc., 1st Term

• Scott Ledesma, Generation Contracting & Emergency Services, Inc , 3rd Term

• Jennifer Ford, Douglas Allred Company, 2nd Term

• Buck Buchanan, Buchanan Property Management Corp , 3rd Term

• Matt Ruane, Liberty Military Housing, 2nd Term

• Aiesha Blevins, Greystar Residential, 3rd Term

EXTENDED TERMS

Aiesha Blevins, President, Immediate Past President

If you should have any questions about the process, please feel free to contact Alan Pentico, Executive Director. Please remember that, for the benefit of the Membership, the Nominating Committee’s work is absolutely confidential, and independent of the Board of Directors. Please respect that confidentiality as it strengthens the resolve of the Association .

Did you know that Proposition 33 eliminates vacancy decontrol?

DECONTROL vs. CONTROL Vacancy

San Diego County

Vacancy decontrol allows property owners to bring rents to fair market rates when a tenant moves out.

A 2024 ballot initiative seeks to ban vacancy decontrol and instead allow local governments to limit the rent that property owners can set for move-ins (vacancy control). For those who have owned their properties for many years, rents are often 30% to 40% below market for long term renters. Under vacancy control, owners who are renting below market may never catch up, as shown in the example below.

Ex. A tenant first rents a 2-bedroom apartment in 2020 at $1,909 per month. Assuming a local rent cap of 3% per year, the rent is $2,086 in 2023 when the tenant vacates the unit.

What is the rent you can set upon vacancy and the financial impact of vacancy decontrol vs. control? Over a five-year period, you could lose $27,297 for each 2-bedroom rental unit.

Decontrol

Owner is allowed to set monthly

Control

Owner is prohibited from raising rent to fair market and is restricted to $2,086.

MYTHS ABOUT EARTHQUAKES AND RETROFITS DISPELLED

Earthquakes have confused and terrified people throughout human history

In ancient times, many people believed earthquakes were the result of angry gods, giants and huge animals .

The Japanese believed a giant catfish living at the bottom of the ocean would shake the Earth when he moved . The Greeks blamed Poseidon, the god of the sea. Mexican folklore explained quakes as acts of El Diablo, himself Legend said he made huge crevices in the earth from which he and his helpers could emerge to stir up trouble

SCIENCE, NOT STORYTELLING

We now understand the science of plate tectonics and the cause of these sudden movements of the earth’s crust .

A study by CoreLogic estimates that a full rupture of the San Andreas Fault could result in simultaneous earthquake damage to both Northern and Southern California and cause $289 billion in destruction and

damage 3 .5 million homes . What’s not calculated in that figure is the residual economic loss from broken infrastructure, shuttered businesses and public services, widespread homelessness, and general chaos .

It’s human nature to dismiss frightening or uncomfortable topics . There is a lot of misunderstanding about earthquakes and seismic retrofits. Let’s clear up a few of these myths .

MYTH NO. 1: IT IS TOO EXPENSIVE.

The University of California at San Diego, home to the world’s largest outdoor shake table, has found that seismic retrofits are quite effective in helping to control or even prevent damage to buildings

Today, the economics of retrofits and resilience work. The costs of seismic retrofits are relatively affordable, resulting in a high return on investment The National Institute of Building Sciences found that retrofitting existing residential building stock can produce up to $16 dollars in benefit for every dollar spent.

MYTH NO. 2: TENANTS MUST BE RELOCATED DURING RETROFITS

In most instances, earthquake retrofit construction can take place without having to relocate any tenants

It’s important to look for a seismic engineering and construction company that can accommodate tenants while doing the work . Much of that entails their construction schedule, and whether they cover and clean up their work to avoid disrupting tenants during non-business hours .

MYTH NO. 3: I WILL LOSE PARKING SPACES FROM A RETROFIT

Seismic retrofits of soft-story structures focus on stabilizing the building at the ground-floor level where the parking is located . But that doesn’t mean parking spaces will be lost Cars can be moved out temporarily

while construction is done, but can return to their spaces at 5 p .m . each day .

Proper engineering studies identify the most effective and economical option for each individual property . When the engineering is done right, projects can be done with minimal impact to the structure and its residents It also avoids permitting delays and/or the need for costly revisions in the future

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.”

If your apartment building is a soft-story structure at risk of failure in an earthquake, call Optimum Seismic today at (833) 978-7664 or visit optimumseismic com to arrange a complimentary evaluation of your building to find out precisely what risks and liabilities you may be facing

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

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

They Want an Offer, and Want it NOW

The Optimum Seismic team has been making California cities safer since 1984 by providing full-service earthquake engineering, steel fabrication and construction services for multifamily residential, commercial and industrial buildings

With more than 4,000 earthquake retrofit and renovation projects completed, Optimum Seismic’s work includes softstory multifamily apartments, tilt-up, non-ductile concrete, steel moment frame and unreinforced masonry (URM) buildings. To arrange a complimentary assessment of your building’s earthquake resilience, contact Optimum Seismic at (833) 978-7664 or visit optimumseismic .com .

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

Standard HR procedures it difficult to establish a committee and follow the protocol when extending Gen Z wants no part of

How To Jump Ahead With All-In-One Self Storage Software

Stop us if you’ve heard this before: “Today, efficient, cost-effective and streamlined operations are more crucial than ever . ”

You know that it’s true, but in a way, hasn’t it always been true? So, what does it mean to stand out in 2024 that’s different than what it meant to stand out in 2020 or 2015?

As it turns out, a lot For one, you’d have been hardpressed to find all-in-one self storage software for small businesses back in 2015 . The tech has even come leaps and bounds from where it was in 2020

Let’s get to the point This article lays out the case for all-in-one self storage software and how it can help facilities thrive right now, in any market

ALL-IN-ONE SIMPLICITY + POWERFUL CAPABILITY

Until recently, there haven’t been cloud-based platforms that offer a full suite of self storage management features including internet listings, online leasing, accounting, facility management, electronic payments, maintenance tracking and tenant and owner portals — at least, not in one easy-to-use system Let’s look at how centralizing these tasks is key to streamlining your workflows, improving the tenant experience and boosting revenue .

INTEGRATED MARKETING TOOLS

Help operators manage internet listings, fill vacancies quickly with qualified tenants and track campaign performance . Prospects can easily find units that

Please turn to page 36

September 12, 2024 | 10:30 AM - 6:00 PM

Coronado Municipal Golf Course

The SCRHA Golf Classic brings together rental housing professionals for a day of golf and prizes on a beautiful championship course. Register early for this popular event!

What to Expect

Full Golf Tournament: Using the scramble format with Peoria scoring, the Golf Classic makes it easy for golfers of all abilities to enjoy a day on the links. Shotgun start at noon,

Skill Contests: Show off your skills and win prizes for the longest drive, closest to the pin, and the putting contest

Prize Giveaways: Attend and win! Sponsor giveaways and opportunity drawings throughout the day give you more opportunities to win!

Register A Foursome

$1,150 Members | $1,585 Non-Members

Player ticket includes lunch voucher, sleeve of balls, free range balls, and opportunity drawing entries! Rental clubs are offered subject to availability

meet their unique needs by searching by location, size, price, amenity and type including climatecontrolled, car, boat and RV storage

ONLINE LEASING

Streamline the process for tenants to select storage units, complete the screening process, sign leases electronically and move in their belongings without physical paperwork or in-person meetings . This not only saves time but also broadens the reach to potential customers who prefer digital transactions

ONLINE PAYMENTS

Enable tenants to pay their rent online, reducing the administrative burden of handling cash or checks and ensuring timely payments Automated reminders and recurring payment options further enhance the convenience for both tenants and storage operators .

TENANT & OWNER PORTALS

Provide a secure, centralized location for communication and management Tenants can access their accounts, view payment history and submit maintenance requests. Owners can access financial reports, monitor property performance and monitor their portfolios in real time

SELF STORAGE MANAGEMENT

Organize everything you need to effectively manage your facilities . Tracking property, unit and tenant level data while managing maintenance, auctions, discounts, amenities, move-ins/move-outs, retail inventory and sales in one place makes facility management that much easier

BUILT-IN ACCOUNTING

Ensure your AP, AR and GL functions are in order and your financial data is accurate and up to date . You can track property and corporate ledgers, maintain escrow and trust accounts, track job costs and

generate financials at a click of a button

OWNER STATEMENTS AND REPORTS

Quickly generate and customize reports for specific needs, reducing the need for manual data entry and minimizing errors Owners with multiple properties benefit from consolidated reports that provide a 360-degree overview of the portfolio

REAP THE BENEFITS - REDUCE COSTS

Consolidating all your self storage functions into one platform will eliminate the need for multiple software systems . This is a significant contributor to cost savings

The self-storage sector faced higher marketing and property insurance expenses in the first quarter of 2024 . Implementing all-in-one software can help offset these costs by reducing the need for multiple software subscriptions .

When street rates are in decline, owners and operators may need to operate their business without the promise of additional resources . In times like these, affordable all-in-one technology that consolidates processes and automates routine operations can be a business saver

WORK FROM ANYWHERE, ANYTIME

An all-in-one SaaS solution that requires only an internet connection and a smart device to operate means you can manage all your facilities when and where it works for you All-in-one also saves time by eliminating the need for constant switching among different apps and systems

STREAMLINE & AUTOMATE EVERYTHING

Modern self storage software automates and streamlines many of the tasks that used to

Please turn to page 38

Continued from page 36

be done manually These include marketing and leasing units, tracking unit types and amenities, managing discounts, collecting rent, paying vendors, maintaining facilities, overseeing auctions, tracking retail sales and centralizing communications with prospects, tenants and owners

Staff will also benefit from a system that allows them to be more productive, letting them focus on more important tasks . Tenants benefit from a better customer experience from the start .

While the shift to online management has long been underway in the residential sector, there has been a more recent, notably post-pandemic, shift in self storage . There has been a rapid shift toward automation and centralization due to the positive impacts on time and money saved .

KEEP SECURE, ACCURATE, REAL-TIME DATA

Another benefit of all-in-one software is real-time data on everything from occupancy rates, open AR and AP, maintenance project status, tenant behavior and financial performance, enabling owners and operators to make informed decisions quickly. By working with reputable cloud providers and software with advanced security permissions, data is kept safe and accessible only to those who should have access .

ENHANCE THE CUSTOMER EXPERIENCE

Features such as online account management, online payments, automated reminders and 24/7 access to information improve tenant satisfaction and retention rates

CONCLUSION: ALL-IN-ONE INCREASES REVENUE POTENTIAL

If nothing else, you need to know that the tech you invest in and take time to learn is going to pay off . A robust all-in-one platform helps your business maximize its operational efficiency and revenue potential with the following:

• Dynamic pricing: Implementing dynamic pricing based on real-time analysis helps optimize rental rates and increase revenue

• Efficient resource allocation: Centralized management of multiple facilities keeps resources such as staff and equipment allocated where they are most needed, reducing downtime and improving service quality.

• Scalable operations: As businesses grow, self storage software allows for seamless integration of new locations and services without more overhead .

• Competitive edge: By adopting all-in-one self storage software, businesses can stay ahead of the curve in a competitive landscape .

The best self storage software offers a robust allin-one solution for businesses looking to cut costs, save time and streamline routine tasks that are prone to human error . In doing so, savvy storage operators position themselves for success in 2024 and beyond

The integration of industry data and advanced features lets operators navigate potential setbacks and challenges with ease, helping them emerge bigger and more profitable than ever .

Max Glassburg is a senior marketing writer at Yardi He is usually found writing blog content for Yardi Breeze and especially enjoys connecting with clients and sharing their successes with the real estate community In his spare time, he is probably working it on the guitar
San Diego

Landlord Legal Questions &Answers

Question: I have an ongoing unlawful detainer against one of my tenant’s but he is continuing to create a disturbance at the property . Is there any way that the unlawful detainer can be expedited?

Answer: Unfortunately, no However, a restraining order may be available in certain situations . If the tenant is engaging in a serious or criminal disturbance, call the police

Question: My tenant was just evicted and the majority of their items are still in the unit . Do I need to give them another notice to retrieve their belongings?

Answer: If you went through the court eviction process and the Sheriff conducted a lockout, the Sheriff notified your tenant of their rights to their personal property . Contact your attorney for more information about the specific process to follow in connection with the tenant’s abandoned personal property .

Question: One of my tenants attempted to tape record our conversation explaining that they have a right to do this for legal purposes . Is that true?

Answer: Your tenant has no legal right to tape record you without your express consent in conversations wherein you have an

expectation of privacy . Further, surreptitious tape recording meaning tape recordings without your knowledge, when you have an expectation of privacy – is a misdemeanor under California state law .

Question: We have a limited number of parking spots in our apartment community so we decided to limit the parking to residents only . Is this legal?

Answer: Yes, you may restrict parking at your apartment complex to residents only Make sure you have complied with the requirements of Vehicle Code Section 22658 so that unauthorized vehicles can be towed according to the rules of the code section Also, be sure that your lease or rules have been appropriately modified so that this policy is enforceable as a condition of tenancy . You may also want to review funding for the building to see if there were any promises made with respect to parking

Question : I have an applicant who wants to bring her cat with her to the apartment . Can I require her to de-claw the cat before bringing it onto my rental property?

Answer: No California law prohibits a landlord from requiring a resident to have a pet declawed or de-vocalized as a condition of occupancy

Question: I have had numerous problems with residents who smoke tobacco, including complaints from neighbors, damage to the rental unit, etc Can I institute a policy that my rental property is smoke-free?

Answer: Generally, yes . California law permits a landlord to designate their property as smokefree Further, some areas may limit smoking in multi-family units by law . But seek legal advice if you want to change smoking rules in a unit for an existing tenant protected by just cause or rent control, or who occupies property under a term lease .

AQuestion : Am I entitled to use a deceased tenant’s security deposit?

nswer: You are entitled to use a deceased tenant’s security deposit to cover unpaid rent, pay for damage beyond normal wear and tear, and to perform necessary cleaning to the unit .

Question: We evicted one of our tenants and obtained a monetary judgment Now we find that they have moved to Arizona . Can I collect against them since they moved out of state?

Answer: If you have a judgment against a former tenant and they move out of state, you can have the judgment recognized by that state as a valid judgment which would allow you to proceed to levy against their bank accounts or garnish their wages in the state they now live

AQuestion : Can an owner/property manager require that a tenant secure renters insurance?

nswer: Generally, yes, to protect the property and assets, landlords can require the tenant obtain renters insurance as a covenant and condition of the lease Be sure to seek attorney advice for subsidized housing, or if changing the terms of a tenant protected by just cause or rent control

Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only. While KTS provides clients with information on legislative changes, our courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. Our legal alerts are provided on selected topics and should not be relied upon as a complete report of all new changes of local, state, and federal laws affecting property owners and managers. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers and Legal Articles, please consult the resource section of our website. © 2024

Kimball, Tirey and St. John LLP

Legislative Update

LEGISLATIVE UPDATE

STATE LEGISLATIVE UPDATE – AUGUST 2024

At the time of writing this, the Legislature had just weeks to go before the end of session date, August 31 By the time you read this, any bills passed will be on the Governors desk to be signed or vetoed The Governor has until September 30 to sign or veto legislation Here are some of the bills that were still high on SCRHA’s radar…

AB 2347 (Kalra) - Eviction Delay – The bill would make various procedural changes to landlord-tenant law, including specified extensions of time for tenants to respond to notices and eviction papers While AB 2347 extends the time for the defendant’s response to be filed from five court days to 10 court days after the unlawful detainer complaint and summons is served on the defendant, SCRHA advocacy secured the removal of language that would have created more significant delays in the eviction process and added language that limits time delays tactics often used in Unlawful Detainer cases . With these changes to the bill, SCRHA has taken a neutral stance .

AB 2493 (Pellerin) - Rental Application Fees – If enacted, a landlord would only be able to charge a lease applicant for a residential property an application screening fee if the landlord offers an application

screening process that considers applications in the order in which they are received, or that provides any applicant who is not selected for tenancy with a refund or credit for the application screening fee SCRHA remains opposed as rental housing providers already consider applications in the order in which they are received and because it is unfair to require a refund for something the housing provider must pay for .

AB 2579 (Quirk-Silva) - Balcony Bill – Extends the deadline for performing inspections of exterior elevated elements (balcony) in all buildings containing three or more multifamily dwelling units, thereby delaying the inspection deadline from January 1, 2025, to January 1, 2026 . SCRHA supports additional time for housing providers to comply with the inspection requirement.

AB 2278 (Carillo) - Publishing Rental Rates –Sponsored by our statewide coalition partner, CalRHA, and supported by SCRHA, the bill would have required the Attorney General to publish the maximum allowable annual rent increase by July 1 of each year . Despite the bill having no opposition and posing only minimal costs, the bill was held in the Senate Appropriations Committee .

AB 2498 (Zbur) - Rent Relief – This bill would have established the California Housing Security Program

(the Program) to provide counties with funding to administer a housing subsidy to eligible persons to reduce housing insecurity and help Californians meet their basic housing needs The bill would create a 2-year pilot in eight counties, including Los Angeles, Orange, and San Diego Unfortunately, the bill was held in the Senate Appropriations Committee

AB 2801 (Friedman) - Security Deposits – This bill remains a major concern for SCRHA. It specifies that claims by the landlord against a tenant or the deposit

We’re Taking a Load Of f of A par t ment Ow ners and Property Managers.

for materials or supplies, and for work performed by a contractor, must be limited to a reasonable amount necessary to restore the premises back to the condition it was in before the tenancy, except for ordinary wear and tear. It will also require that, beginning April 1, 2025, a landlord must take photographs of the unit before a tenancy and within a reasonable time after the possession of the unit is returned to the landlord, but before any repairs or cleanings for which the landlord will deduct from the deposit are completed, and that the landlord take photographs of the unit within a reasonable time after the repairs or cleanings are completed . SCRHA is concerned not only with the significant administrative burden, but also with the likelihood of tenants challenging security deposit refunds over the required photos. It is impossible for a housing provider to anticipate which areas of a rental unit will be damaged Photos after a tenant moves out are typically isolated to damaged areas . It is unlikely there will be a corresponding photo taken prior to tenancy which makes this law unworkable and vulnerable to fraudulent claims .

AB 2747 (Haney) - Positive Rental Credit Reporting – If passed and signed, this bill will require housing providers of buildings of 15 units or more to offer each tenant obligated on a lease the option of having their positive rental payment information reported to at least one nationwide consumer reporting agency While SCRHA remains opposed to the bill, our advocacy triggered amendments to allow housing providers to pass any associated costs along to the tenant and limit the ability to opt in and out repeatedly

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION -

A

AMK Property Management 619 546 0015

Abode Communities 213 225 2868

All Points Real Estate 619 298 7724

Alliance Investment Corp 858 597 4900

AltaCima Apartment Homes

. 858 .565 .8333

American Assets Trust, Inc 858 350 2564

Antelope Ridge (Sentinel Real Estate) 951 672 8181

Arbor Terrace | Westlake Housing 619 293 3612

Arbors at California Oaks Apartment Homes 951 461 3264

Asset Property Management 858 560 9363

B

Bob Cota Realty 619 465 9934

Brennan And Associates Inc 619 475 2470

Brentwood Management Co 619 220 8595

Bridge Property Management

801 .716 .5795

Buchanan Property Management Corp 619 269 0276

C

CFI

858 .200 .4260

Cambridge Management Group, AMO 619 497 0771

Campus Village 1, 2 & 3 | 6 Star Properties 619 583 3339

Cardinal Group Management

Chase Pacific Property Management and Real Estate Services 858 271 8841

Cirrus Asset Management, Inc

. . . 818 .222 .4840

City View Apartments|Greystar 619 234 0134

Core Property Group 619 399 7279

Cushman & Wakefield 949 224 2929

D Delta Property Management 619 465 5851

Douglas Allred Company 858 793 0202

Dwell Management Co . .

E

619 .469 .3000

Eagle Glen Apartments | Greystar 951 461 4565

Elite Property Management 619 823 3712

Euston Management

F

Foothills at Old Town | Sentinel Corp 951 676 .7545

G

Gables Oak Creek 951 600 9696

Gables Point Loma 619 223 6577

Gables at Alta Murrieta . . . . . . . . . . . 951 698 .0628

Griffis Mission Valley 619 220 0530

Griswold Real Estate Mgmt , Inc 858 597 6100

H

H G Fenton Company 619 400 0120

Hanken, Cono, Assad & Co 619 698 4770

Heartland Associates Inc 619 462 2082

HeetWave Properties . . . . . . . . . . . 888 557 .4338

Holland Partner Group 360 694 7888

Horizon Properties Management Service

. 619 482 .3054

Humphreys Residential 619 865 0389

I

IPI Property Management 858 277 2700

Iconic on Alvarado | BH Management Services 619 286 3990

Income Property Advisors Inc 858 279 1500

Investment Safe .

J

. . . 619 884 .0906

Johnston Property Management, Inc 760 944 0703

K

KFR STAR Realty

L

. . . 619 293 .7653

LSD Enterprises DBA SD Real Estate 858 717 3353

Leonero Properties . . . . . . . . . . . . . 619 273 .4350

Liberty Military Housing 858 874 8100

Logan Property Management 619 260 5562

Lyon Living 949 838 1274

M

MG Properties 858 658 0500

Maya Linda Apartments 858 566 5350

Mira Bella Apartments | Simpson Property Group 858 560 5720

Modera San Diego | Mill Creek Residential 619 500 8509

N

NAI San Diego Property Management 619 497 2255

Noah Realty 858 504 0416

O

Oakleaf Apartments | Management Works760 433 9510

Ocean Breeze Apartments|Greystar 619 428 3369

Olympus Property 858 268 8858

P

Pacific Commercial Management, Inc 858 450 6886

Parkdale Apartments | Norco Mgmt Corp

. . . . . 760 737 .9017

Pasas Properties, Inc 619 607 7560

Professional Real Estate Management 619 297 7736

Providence

858 .793 .8899

Fairgrove Property Management 714 541 0288

Five Peaks Property Management .

. . 619 .814 .7505

Flats LLC 248 860 8845

REC Properties| Penasquitos Point Apts. 858 484 5047

Paul Langley Company 415 431 9104

Pemberley Realty 619 778 0577

People Helping Others Prop . Mgmt . . . . 619 282 .5400

Pierside North | Greystar 949 202 3991

Pierside South | Greystar 760 433 3500

This Probably Never Happened to You, But...

The tenant from #3 called in early this morning to report that her shower drain was clogged. We sent out a handy-man, and he cleared the drain for her. It was a common tub-shower, with no screen over the drain as you might find in a stall shower.

For most of our time in this business, we typically give a tenant one free drain cleaning, as it was never clear who actually caused the problem…this tenant or the prior tenant. The exception to this was where there was a clear sign of negligence, such as a diaper or toy flushed down a toilet which then jammed. In situations like this, we would expect our vendors to make a note on their invoice that indicates the cause of the clog, which would give us reasonable evidence of tenant negligence. This in turn would give us what we need to “back charge” the tenant for the cost of clearing the drain.

Well, we still charge for such clear cases of neglect, but we are re-thinking our approach to other situations where drain clogs are more likely a combination of two things: the tenant using the drain in exactly the way that it was intended to be used (i.e., showering, and washing hair in the shower), and older drain pipes. It’s a simple fact that over time all sorts of “crud” gets built up in the drain lines at our properties. This necessarily slows down the water flow, and makes clogged drains from normal usage more likely.

The other, and more important aspect here, is customer service. I tried to imagine myself in a decent hotel or

motel, and discovering on the third night that the sink or tub was not draining properly. I tried to imagine how I would feel about that hotel if they then informed me that a small extra charge would be added to my bill for that repair. I would be livid. I would recognize this as a very bad business decision, and I would be inclined to go elsewhere the next time.

Remember, it’s just business. Good business requires satisfied customers, and satisfied customers are more likely to take better care of the property you have entrusted to them.

In my judgment, the response is simply to make a note of the situation. If it recurs in that particular unit, and not in others, then you might get a sense that somehow there is abuse. But rather than directly charging the tenant, I would recommend making the assumption that maintenance for this particular unit will be slightly higher than for the rest, and basing future rents for this tenant just enough higher each month (maybe $5) to cover that difference over time. It just makes business sense.

Dear Readers: This article is the 249th in a series based on the lessons we have learned the hard way. The contents of these articles are merely opinions of the writer. They are not intended as specific legal advice and should not be relied upon for that purpose. Our practice is in constant refinement as we adjust the way we operate to an ever- changing market. I appreciate your questions, comments, suggestions, and solutions. Contact C. Finley Beven, JD, CPM, CCAM, 99 S. Lake Avenue, Pasadena. (626) 243-4145. Fin.Beven@ BevenandBrock.com www.BevenandBrock.com.

C. Finley Beven has been involved in real estate, property maintenance and property management since 1975. He is a Certified Property Manager (CPM), Institute of real estate Management since 1987. He is also a Certified Community Association Manager (CCAM) and is a member of the California Association of Community Managers. He has a brokers License #00696626 in the State of California. He has a BA, USC; JD, Southwestern University Beven & Brock Property Management Co., Inc. 99 S. Lake Avenue, Pasadena. (626) 243-4145 Fin.Beven@BevenandBrock.com - www.BevenandBrock.com

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HELP STOP RENT CONTROL INITIATIVE

2024 BALLOT INITIATIVE WHAT IT DOES

Proposition 33 Repeals the Costa-Hawkins Rental Housing Act and Expands Rent Control

PROPERTY OWNERS WHY IT MATTERS

Local jurisdictions will have free rein to impose and expand rent control.

Will prohibit rent increases upon vacancy (also known as vacancy de-control) by eliminating the owner's ability to charge the market rate when a tenant vacates the unit.

Imposes rent control on all properties including single-family homes by eliminating AB 1482 protections.

Your rental income and property value will decline.

If you are renting your units below market, you may never catch up because the initiative allows local jurisdictions to cap how much you may increase rent following a vacancy.

Rent caps would apply to single-family homes and condominiums.

To stop Proposition 33, CalRHA and its affiliates are asking for your support and contribution to fight this third attempt by the same anti-housing activists behind Propositions 10 and 21 from 2018 and 2020. CalRHA and its regional associations collectively need to raise a minimum $5 million dollars, so we're all in this together.

All funds raised will go toward the initiative fight. To make a contribution, please scan the QR code. Thank you for your generosity.

$5 MILLION TARGET

The last rent control fight cost the broader housing industry $80 million dollars. This one will cost even more.

Funds will be deposited into a dedicated account specifically for fighting the initiative. DEDICATED FUNDS

We defeated both the 2018 and 2020 rent control initiatives. With your support, we can do it again. SUCCESS

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