Southern California Rental Housing Association Rental Advisor Magazine - June 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 In uence

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 Wake eld

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

Braden Haycock, Education Manager bhaycock@socalrha.org 858.751.2219

Evan Prado, Events Coordinator eprado@socalrha.org 858.7521.2214

Scott Ledesma, Generation Contracting & Emergency Services, Inc.

Shannon Kelly, Independent Owner Dandy Lion 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.

Advertising - We do not guarantee or endorse the products or services of any of the advertisers, but and respect for one another. Information provided in the advertisements are the sole responsibility of the advertiser. For concerns please contact the advertiser directly.

CONTRIBUTE: Educational articles in Rental Advisor Magazine must be between 500-800 the 10th of the month before publication. Submit to socalrha@aptnewsinc.com.

ADVERTISE: Contact the team at Apartment News Publications, Inc. at 714-893-3971 or email scrha@aptnewsinc.com for advertising information, including rates, production

P.O. Box 3089 Seal Beach, CA 90740 www.aptnewsinc.com (714) 893-3971

FOUNDER : Don Smeallie, Sr.

PRESIDENT: Don Smeallie, Jr.

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OURVISION

Reenvisioningquality housingforall OURMISSION

Tocreateathriving rentalhousing communitythrough advocacy,education, andcollaboration

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

Ashousingproviders,webelievewehavetheresponsibilityto provideCaliforniarenterswith:

Qualityhousingwithhabitableandhealthylivingconditions. Freedomfromarbitraryeviction,retaliation,or discriminationinlinewithallfederalandstatefairhousing laws.

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.

SAiesha Blevins

2024 President Southern California Rental Housing Association

President’s Message:

The Fight Against Rent Control

ummer is now in full swing, and while many of us are planning vacations or finalizing camp schedules, the fight against rent control is heating up.

The so-called “Justice for Renters” is on the ballot for the November 2024 election If it sounds familiar, it’s because this is a third attempt to repeal the Costa-Hawkins Act and if passed would give local jurisdictions the ability to impose and expand rent control.

The rental housing industry successfully defeated attempts in 2018 and 2020, and this upcoming fight will require the same energy and effort, and then some, to defeat the 2024 ballot initiative.

I understand that your time is valuable and there are many competing demands, but this issue is too crucial to overlook. Your participation in the free Town Hall on June 28 is not just important, it’s essential This is your opportunity to learn more about the potential impact of the ballot initiative and how you can contribute to its defeat Find the details online at socalrha.org and be sure to register and share with

your rental housing colleagues.

We cannot afford to waste any time. If this ballot initiative passes in November, this is what it will mean for you:

It will prohibit rent increases upon vacancy by eliminating the owner’s ability to charge the market rate when a tenant vacates the unit.

Imposes rent control on all properties, including singlefamily homes and condominiums, by eliminating AB 1482 protections.

Rental housing providers in Chula Vista and the City of San Diego are already grappling with new regulations outlined in the recently passed Tenant Protection Ordinances If the ballot initiative passes in November 2024, rental housing providers throughout the state can expect a significant decline in rental income and property value This is not a scenario we can afford to let unfold.

I urge you to stand with us in this fight against rent control. Your voice and your actions matter Join us for the free Town Hall on June 26, and let’s work together to protect our rental income and property value.

JUNE26,2024|5:00PM-7:30PM|CIVITARECREATIONCENTER

HelpuskickofftheawardsseasonduringtheMark ofExcellenceRallyonJune26atCivitaRecreation Center!Thiseventisyourchancetolearnmore aboutwhatitmeanstobenominatedandinsights tohelpyounavigatethejudgingprocess.

Whetheryou'renewtotheindustryoraprevious nominee,weinviteyoutoenjoyanafternoonwith yourrentalhousingcolleagues.We'llsharetipsfor completingyourpacketandenjoyanafternoonof funand gameswithdeliciousfoodandbeverages.

ALLATTENDEESMUSTREGISTER! Thisfreeeventis opentoanyonewhowantstolearnmoreabout whatitmeanstowinaMarkofExcellenceAward andthenominationprocessfromstartto finish.

ASSOCIATIONWIDESPONSORS

2024AWARDCATEGORIES

AssistantPropertyManageroftheYear 1-100Units|101-300Units|301+Units IndustryPartneroftheYear Company|Individual LeasingProfessionaloftheYear 1-100Units|101-300Units|301+Unit Multi-SiteManageroftheYear 1-300Units|301+Units MaintenanceSupervisoroftheYear 1-300Units|301+Units MaintenanceTechoftheYear 1-300Units|301+Units PorteroftheYear 1-100Units|101-300 Units|301+Units PropertyManageroftheYear 1-100Units|101-300Units|301+Units RepositionedPropertyoftheYear 1-300Units|301+Units PropertyoftheYear 1-29Units|30-100Units|101-300Units|301+Units PropertyManagementCompanyoftheYear NextGenCategorytoBeAnnounced NEW! CommunityRelationsManageroftheYear NEW!

TAlan Pentico, CAE

Executive Director

Southern California Rental Housing Association

Executive Director’s Message:

Don’t Miss the Town Hall on June 26

he Justice for Renters Act is slated to be on the ballot in November. This ballot initiative is the third attempt to gut protections provided by the Costa-Hawkins Act and will give local jurisdictions free rein to impose and expand rent control.

This ballot initiative is even more dangerous than previous attempts in 2018 and 2020

To be clear, this will affect all rental housing providers throughout California.

Don’t get complacent because San Diego and the surrounding areas don’t currently have rent control The proponents of the so-called “Justice for Renters Act” are working to erode your rents as a rental housing provider and bring rent control measures throughout the state.

If this ballot initiative passes in November, this is what it will mean for you:

•It 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 and condominiums, by eliminating AB 1482 protections.

•These changes would cause your rental income and property value to decline.

Efforts are underway to fight this damaging initiative and we urge you to join us for a free Town Hall on June 26. Don’t miss this opportunity to hear from

advocates on the front line of the fight and learn what you can do to support our efforts.

You must understand what is at stake and how you can help save the rental housing industry.

Details on the Town Hall are available online at socalrha.org Register today and invite your rental housing colleagues It will take all of us working together to defeat rent control.

O2025 BOARD OF DIRECTORS

APPLICATIONS

ur vision is to re-envision quality housing for all, while our mission is to create a thriving rental housing community through advocacy, education, and collaboration The SCRHA is a strong focus-driven organization that works diligently to represent the rental housing industry in San Diego, Imperial, and southern Riverside counties. We utilize strategic planning and purposeful directives to ensure we remain a high value to our members, provide strong advocacy, and outreach to our community.

We focus on bringing the right skills to the Board to ensure we reach our goals This type of thinking has ensured our excellence for over one hundred years, leading the rental housing.

At this time, the Board is seeking experienced owners and property managers with strengths in collaboration and community building, bringing value to the membership with transformative, innovative ideas, and an interest in advocacy.

The Nominating Committee is accepting applications from owners, property managers and associate/ supplier member candidates for consideration to serve on the Board of Directors for a two-year term. Candidates must complete an online application and skills questionnaire to be considered Complete applications must be received by June 28, 2024.

Our vision is to re-envision quality housing for all,

while our mission is to create a thriving rental housing community through advocacy, education, and collaboration. The SCRHA is a strong focus-driven organization that works diligently to represent the rental housing industry in San Diego, Imperial, and southern Riverside counties. We utilize strategic planning and purposeful directives to ensure we remain a high value to our members, provide strong advocacy, and outreach to our community.

We focus on bringing the right skills to the Board to ensure we reach our goals. This type of thinking has ensured our excellence for over one hundred years, leading the rental housing.

At this time, the Board is seeking experienced owners and property managers with strengths in collaboration and community building, bringing value to the membership with transformative, innovative ideas, and an interest in advocacy.

The Nominating Committee is accepting applications from owners, property managers and associate/ supplier member candidates for consideration to serve on the Board of Directors for a two-year term Candidates must complete this online application and skills questionnaire to be considered Complete applications must be received by June 28, 2024.

Apply online at socalrha org or contact Alan Pentico, SCRHA Executive Director, at 858.278.8070 for more information.

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CALIFORNIA RENTAL

LICENSE #570472

Social

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Donna Webber Company

John Belanich Company

Creaser & Warwick, Inc.

DNC Limited Partnership

RJW Properties, Inc.

Laura Sperry Company

Wakeland Housing & Development

ATI Restoration, LLC

CE LE BRATIN G an ANNIVERSARY

The Kevane Company, Inc.

Elinor van den Akker Company

RG Investment Real Estate Services Inc.

Teryl Springstead & Rita Possehl, Co-Trustees

David Olson Company

Muraoka Enterprises Inc.

People Helping Others Prop. Mgmt.

Law Offices of Andrew C. Laubach

L. Clark Ritter Company

Jacqueline Mathews Company

Caesar Oriol Company

William Pollock Company

Fred and Shirley Salzer

Barber G. Lewis

Fleetwood Properties

Rolf Steeve Company

Charles & Marilyn McKerlie & Margaret Schock

Donald and Sandra Jackel

Kenneth Rundlett Company

Lamden Property Management, Inc.

Laurence and Carolyn Kaiser

Allison Logan Company

Errol Tonsky Company

Gregory Robinson Company

Nancy Parks CASAVIDA

Richard Hancock Company

Phil Salvato, Owner

Sierra Mar Properties LLC - Paul Hasley

Richard Jenkins Company

Angela Merrill Company

Mary Ann Tarantino Company

Carla Mercer Company

Terry Moore, CCIM, Inc.

William and Susan Moore

Jerry Conway Company

Carol T. Crossman

Lloyd Pest Control

IHA Partners Inc.

Jeffrey Malik Company

Joseph and Mary Berardino, Owner-Managers

Sandra Clarkin & Brian Calvano

G. Beit-Ishoo / SeaDate

Alcasid

George and Celida Haddad

Kim Conant Company

Al Smithson Company

Joe & Irina Siemienowski

Jungman Investments

Longley Family Trust - Nancy Longley Trustee

Waltwood Properties

McPheeters Trust

Marilynn Nemeroff Company

Spero Tzathas Company

Richard E & Diane P Martin

Nancy Mullins Company

Triple T, LP

NLJ, LLC

Molloy Properties

Brothers II

Harvey Investment Properties

Bill Winans Company

account, or were taken under new ownership, the member will not appear

contact the publications department at publications@socalrha.org

Brentwood Management Co.

Walz Properties| Fortuna Investment Group

Alvarado Property Management

Mark Marshall Company

Brycorp, Inc.

Elizabeth Dammassa-Uglik Company

REC Properties| Peasquitos Point Apts.

Steve Rayner Company

Kristen Webb Company

Dennis & Tina Daneri

Nobel Prize Properties

Mira Bella Apartments | Simpson Property Group

Ronald Stone and Faith Maybury

Shawn & Lily Smith, Owners

Araz Yacoubian Company

John Meyer and Jeff Lancaster

Sherry Bird Company

Park Hill Investments

Sciuto Properties

Cambridge Management Group, AMO

Tom Brady Company

Karen Blumenshine Company

Axiom Real Estate

Randon J. & Jane A. Strick

Barry Treahy Company

S. D. Chula Vista Properties, LLC

Dennis and Marian Pierce

Roberta G. Eklund

Jesus and Yolanda Arroyo

Mark & Diane Nesbit

Betty Bark Company

Janet R. Hammer

Woodward Associates

David M. Pierce

Adam S. Leeds

Tamra Fuller Fountas

Lawrence C. Barry

Buchanan Property Management Corp.

Phillip Morgan Company

SENTRE, Inc

Brian Steer Company

Eagle Property Management

Peace, LLC

Arbors at California Oaks Apartment Homes

Tom Cartier Company

Jonathan C. Moore

JDS Security

R & B Wholesale Distributors, Inc.

Silverado Apartments (RCMI)

Temecula Ridge (RCMI)

SatisFacts Research

Strata | UDR

Village Apartments | Cushman & Wakefield

account, or were taken under new ownership, the member will not appear here. If you feel that your

be

this

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

Welcome New Members

PROPERTY MANAGERS

LSD Enterprises DBA SD Real Estate Toscana at Rancho del Rey Homes| ConAm

INDEPENDENT OWNERS

Dundee

2911 Adams | Greystar

AVANTI PROPERTY MANAGEMENT INC

Brande LaHaye

Coastline Equity

CS 4 fun

Elena B. Rodriguez Company

Kristine Anderson Co.

La Jolla Pacific Consultants

LCD Investors LLC

McDonough Consulting

Mellmanor Apartments

SUPPLIERS

Mike & Carol Baker Company

Mitchel Dilorenzo

P. Halsey-Munroe

Paul Contreras Company

Prashanti Reddy Company

Robert Creech Company

SCHA

SD Beach & Bay Properties

Stacey Salm Company

Suzy Shamsky Company

2024 EXPO Highlights

TheSouthernCaliforniaRentalHousingAssociationpartnerswith industryleaderstoprovidevalue-addedproductsandservices. Thesebusinessesofferspecialdiscounts,rates,andservicesto membersoftheSouthernCaliforniaRentalHousingAssociation.

APPLICANT FRAUD UNCOVERED:

HOW TO PROTECT YOUR COMMUNITIES

by Daniel Berlind, CEO of Snappt

In recent years, the multifamily sector has experienced a notable increase in applicant fraud, which poses a crucial challenge for property managers striving to protect their properties . With advanced technology and digital tools making document forgery easier than ever, fraudulent applications have become more prevalent and sophisticated.

So, how are applicants committing fraud, and how can property managers tackle this issue?

HOW APPLICANTS ARE COMMITTING FRAUD

Applicant fraud is when an individual provides fake or misleading information to gain access to a property and secure a lease Applicants typically resort to this when their legitimate credentials are

insufficient to get approved for the property they want

The most common forms of applicant fraud include:

● Fake Employment: Citing non-existent employers or giving fake job verification

● False Income Statements: Prospective tenants may alter pay stubs or bank statements to exaggerate their income

● Misrepresented Rental History: Including false references or forging eviction histories to appear as suitable renters

● Identity Fraud & Theft: Taking another individual’s identity, commonly via fake IDs

and stolen Social Security numbers, to apply for rental units

BUT HOW ARE THEY DOING IT?

● Text Insertion: Editing an income document to falsely increase their financial standing.

● Pay Stub and Bank Statement Templates: Online templates made to look like popular payroll and bank providers.

● Social Engineering: A scammer provides tips to an individual on how to alter documents, or they provide workarounds to try to avoid a fraud detection system altogether.

The effect of fraud can be catastrophic, often leading to property damage, financial losses, tarnished reputation, and legal issues

HOW BIG IS THE PROBLEM?

According to a 2024 National Multifamily Housing Council survey of property owners and property managers, there was an estimated 40% increase in fraudulent applications in their portfolio in the past 12 months compared to the previous 12 months

Here are some additional eye-opening statistics:

● A TransUnion 2023 survey of property managers noted that 60% had fallen prey to fraud in the last two years — with altered documentation being the main challenge for 84% of survey participants

● A 2020 Snappt survey revealed that approximately 53% of property managers encountered fraudulent rental applications, a dramatic increase from previous years

While AI technology helps property managers catch fraud, it has also made it easier to craft convincing counterfeit documents. Identity theft and synthetic identity fraud – a situation in which real and fake information is combined to create a new identity –are exceptionally challenging for property managers to catch without appropriate measures in place.

Additionally, worried applicants may feel extra pressure to exaggerate their qualifications to stand out in a sea of competition, leading to a surge in fraudulent applications. Some property managers in large metropolitan areas have reported higher incidence rates, especially in large urban areas where the rental market is incredibly competitive.

Please turn to page22

Fraudsters hoping to secure high-value rental housing might also more often target properties with higher rental rates (or even luxury amenities).

New forms of fraud continue to emerge regularly, with the latest being deemed “Inception Fraud .” Discovered earlier this year by the Snappt team, this occurs when an applicant provides a legitimate pay stub from a legitimate company, even though they don’t actually work there or receive a salary from them. This malicious type of fraud is impossible to detect without qualified fraud detection technology and extensive training.

TIPS FOR IDENTIFYING FRAUD AND WHAT TO LOOK OUT FOR

Property managers can significantly reduce the chances of being duped by untrustworthy applicants by taking proactive measures Here are a few considerations to keep in mind:

1. EDUCATE YOURSELF

Familiarizing yourself with typical fraudulent document practices can aid in identifying warning signs . Research common fraudulent renter tactics, such as providing fake contact information for references Also, stay current on the latest industry trends in document fraud to help protect your investment

3. VERIFY, VERIFY, VERIFY

When reviewing renter applications and related documents, always take your time and verify renter information. Confirm that the application details— like employment history, income, and previous residences—align with the provided documents . These can include bank statements, paycheck stubs, and references. Disparities in any of these documents can be a red flag.

4. IMPLEMENT FRAUD DETECTION

“According to a 2024 National Multifamily Housing Council survey of property owners and property managers, there was an estimated 40% increase in fraudulent applications in their portfolio in the past 12 months compared to the previous 12 months.”

2. THOROUGHLY SCREEN YOUR APPLICANTS

The first line of protection against fraudulent documents is to use a comprehensive tenant screening strategy and process . This should include detailed background checks, credit checks, and job verification When renters know you require a meticulous screening process, they are less likely to engage in fraudulent behavior Also, ensure your rental application clearly describes your requirements for proper documentation and background checks.

Implementing comprehensive fraud detection is the best way to safeguard your property. Effective fraud detection software can identify inconsistencies or suspicious details in rental applications and income documents, such as verifying the authenticity of IDs, pay stubs, and bank statements The strongest defense will include document fraud detection, ID verification, and income verification. Better yet, find a fraud detection provider that not only has the technology to catch these fraudsters but also proactively researches new trends and tactics used to commit fraud.

PROTECT YOUR COMMUNITIES

Fraudulent rental applications are becoming more widespread, requiring property managers to take robust and adaptive measures

Busy property managers shouldn’t have to suddenly become forensic experts during the screening process to identify fraudulent behavior. For optimal efficiency and ease, it is recommended to collaborate with a fraud detection company.

By employing a combination of fraud detection and thorough screening, property managers can stay vigilant, better protect their communities, and maintain the integrity of their rental properties.

Daniel Berlind is the visionary CEO behind Snappt, a game-changing AI-enabled fraud detection software that’s revolutionizing the multifamily housing industry Daniel co-founded Snappt in 2019 after witnessing firsthand the pervasive issue of fraud within the multifamily rental market during his time running his own property management company. Snappt not only simplifies and streamlines the application process but also tackles bad debt head-on, boosts asset value, and drastically reduces the time it takes to review applications. In addition to Snappt, Daniel serves as the President of Berlind Properties and oversees the portfolio management and daily operations.

CALENDAR Register at socalrha.org

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

June 10

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

12:00P - 1:00P

Customer Service for Maintenance Success

“Our residents’ experience with maintenance repairs is one of the most important factors in their happiness with where they live and whether or not they choose to renew

In this course, Kendra Bork, Cambridge Management, Inc will lead a discussion on the different aspects of customer service that go into our residents’ maintenance experience and how to ensure that their experience is a good one.”

ICON KEY

June 14

What You Should Know! SB 267: Government Rental Assistance & Credit Checks

There is a big change coming for those receiving Government Rental Assistance!, join us to find out what you should know! Attorney Tracey Merrell, Kimball, Tirey & St John LLP will lead this essential seminar. Register today to understand this critical change in rental law.

June 21

Swing Away Sports! Networking Mixer

9:30A - 10:30A

ICON KEY

4:30P - 6:30P

Want to enjoy some virtual sports? Think you “still got it”? Well come take a swing on June 21 at the Golf Bar Mixer in Clairemont Mesa, San Diego SCRHA Owners and Property Managers will take over the virtual golf and sporting simulators and enjoy taking a swing at their favorite sport while creating connections with other service industry providers. Register today to join the fun. Food and drinks will be provided.

Not a golfer? Not a problem! Each simulator has other virtual sports available, or you can sit back and watch people swing away! Playing is NOT mandatory, but networking is!

ICON KEY

June 26

Mark of Excellence Kickoff Rally

Take the first step on your journey to excellence during the Mark of Excellence Kickoff Rally on June 26 at the Civita Recreation Center! This event is your golden ticket to dive deep into the world of award nominations. Discover what it truly means to be in the running and gain insider tips to master the judging process. Best of all, it’s free!

July 9

June 26

June 27

Every Real

Marina Village - Terrace Room

Efforts are underway to fight this damaging initiative and we urge you to join us for a free Town Hall on June 28. Don’t miss this opportunity to hear from advocates on the front line of the fight and learn what you can do to support our efforts. 10:00A - 12:30P

Wealth Through Real Estate -

Estate Investor

While many individuals and families invest in real estate, few understand the basic financials around efficiently building wealth through real estate. This all encompassing real estate course will be taught by Patrick Kappel, CEO of the Kappel Realty Group

SB 721: CA Balcony & Other Elevated Element Inspection Requirements

With the January 1st, 2025, deadline fast approaching, learn what you need to do to make sure you and your properties are in compliance with SB 721 before it’s too late!

ICON KEY

Rent Control Ballot Measure Town Hall

Must Know 12:00P - 1:00P 5:00P - 7:30P 9:00A - 10:00A 4:00P - 6:30P

July 10

NextGen Social Scavenger Hunt

Get Ready to unlock the secrets of Liberty Station at the NextGen Scavenger Hunt! This isn’t just any scavenger hunt but an adventure designed for the sharpest minds in rental housing. Put on your detective hats, build your best team, and wear your most comfortable shoes. You will be deciphering clues, meeting with industry suppliers, and tackling clues that will help you uncover some of the best photo ops at Liberty Station.

YOUR ULTIMATE GUIDE TO LEASING SEASON: HOW TO MAXIMIZE OCCUPANCY AND EFFICIENCY

By Brittany Benz

For residential property management, leasing season runs from May through September, with July and August typically seeing the most volume To maximize your occupancy rates and see greater levels of success during this critical time, property management teams need to be ready long before the season begins . In addition, resources need to be fully committed and optimized during peak times in order to meet high prospect demand and expectations.

Keep reading to discover leasing season strategies that will give your team a competitive edge and boost efficiency before and during leasing season.

BEFORE LEASING SEASON: SET A FOUNDATION FOR SUCCESS

1.) PROPERLY PREP YOUR TEAMS

A well-prepared team can make all the difference, especially during the busy months . Help them thrive during the demands of leasing season by supporting them before it begins.

• Increase training budgets and access: Leasing season isn’t the time to cut back on training budgets. Instead, make sure all team members have access to technology and

Please turn to page29

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

Control

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

Continued from page27 training before the season’s surge.

• Properly onboard and cross-train team members: If you’re short-staffed, invest in hiring new team members or cross-training existing team members. Either way, everyone needs ample time to get fully ramped up.

• Ensure high-demand teams are available and up to date: Review maintenance team procedures to ensure tools, supplies, and adequate team members are available and ready to respond . If possible, consider extending leasing agents’ hours during peak rental season — the extra investment can really pay off in leads.

•Don’t forget about remote and off-site team members: If any of your team members work remotely or are distributed across a large region, implement sound strategies that focus on improving engagement, boosting productivity, and reducing turnover.

2.) PUT YOUR PROPERTY’S BEST FACE FORWARD

According to the 2022 NMHC/Grace Hill Renter Preference Report, 51% of renters said overall property appearance would be very important in their future leasing decision . Be sure to spruce up your property since traffic from prospective residents is likely to increase significantly.

• Perform a property-wide freshen-up: Walk the property from a prospective resident’s point of view. Check for and implement small cosmetic improvements that can make a big difference in your community’s appeal.

• Address maintenance issues: Take care of all preventive maintenance, and check your roofing, gutters, and downspouts . Make sure common areas are clean and maintained.

• Consider investing in new amenities or spaces that add value: Take note of what added-value upgrades prospects seek when inquiring about your properties For example, the 2022 NMHC/Grace Hill Renter Preferences Report revealed that 73% of renters are interested in having 24/7 selfservice package access, 69% are interested

in having a property-wide recycling program, and 58% are interested in having an outdoor communal barbeque space.

3.) CREATE DESCRIPTIVE AND ENTICING LISTINGS

Great listings lead to more prospects and increase the likelihood that you’ll fill your property vacancies as quickly as possible. Here’s how to stand out in the right ways.

• Make listings as polished and thorough as possible: Provide robust unit descriptions, photos, and videos . Consider hiring a professional photographer to ensure your properties’ images and videos are compelling; and leverage AI tools to autogenerate detailed descriptions for your units and properties, saving your team time and increasing accuracy.

• Leverage your website and third-party listings: Make all listing information available to prospective renters on your own website, in addition to third-party listing sites. Based on the 2022 NMHC/Grace Hill Renter Preferences Report, 83% of renters visited a property management’s website and 73% of renters visited rental listing sites when searching for their most recent rental home.

4.) EMBRACE VIRTUAL LEASING TOOLS

Meet prospective renters’ expectations for convenience and self-service with technology that enables virtual leasing options, such as virtual showings and video walkthroughs. These options can save renters time and reduce friction since they can view the unit at their leisure Virtual tools also benefit your team since they can speed up the leasing process.

For qualified renters, offering self-guided tours with access to the property via a lockbox is another great option.

5.) LEVERAGE ONLINE APPLICATIONS

If you don’t currently offer online rental applications, you could be missing out Besides being a convenient application option for prospective renters, online leasing solutions streamline the rental process from beginning to end by removing manual, error-prone paperwork and creating a better experience for everyone involved.

6.) UPDATE SCREENING PROCESSES

To comply with fair housing laws, create a set of objective criteria to define qualified applicants, such as credit score or previous rent payment history Be aware that legally this list cannot include protected statuses like race, gender, marital or familial status, sexual orientation, or religion.

To speed up time-consuming screening processes, look for technology that helps accurately and objectively screen tenants This will allow you to make quicker and more informed decisions about applicants, especially during peak leasing season time.

7.) REVIEW LEASING AND ADDENDA LANGUAGE

Regulations for housing change every year, and you may need to adjust your leasing and addenda language to account for new Fair Housing Laws or updated local or state requirements Failure to comply with regulations can result in a possible lawsuit, so always check federal and state resources online or consult an attorney if you’re unsure about what needs to be revised.

DURING LEASING SEASON: FOCUS ON EFFORTS THAT MAKE AN IMPACT

8.) STAY ON TOP OF PRICING

If your properties are priced too high, you run the risk of losing to the competition But if they’re priced too low, your ROI will suffer. This is why a smart pricing strategy is one of the best ways to both fill vacancies faster and grow your business during leasing season.

Many property managers still call around for rental comparisons within their area; this activity can be time-consuming but highly informative . Just remember to only compare your units to similar units in the area Additionally, your pricing should reflect current market conditions, property amenities, nearby attractions, and any updates you’ve made in the past year.

9.) DON’T FORGET ABOUT RENEWALS

The nationwide average cost to a property owner for every resident that vacates is approximately $3,900 Resident retention should be your number one priority — especially during leasing season — since it has a direct impact on your cash flow and property asset value.

To determine your actual resident loss cost and see just how much retention can impact your leasing season success, check out the Multifamily Insiders Apartment Turnover Cost Calculator.

10.) KEEP AN EYE ON ROI

When allocating your marketing budget for each property, be intentional about where you spend and track whether those marketing channels attract renters Generally, it’s best to invest more heavily in marketing channels that have led to successfully signed leases in the past and cut down on channels that haven’t yielded as many conversions.

For more tips on how you can better market your business, read our top tips on how to attract more leads with marketing.

11.) RESPOND QUICKLY TO INCOMING LEADS

Leasing season can leave your team feeling overwhelmed with emails and calls, but if you don’t respond to renters within 24 hours, you’re likely to lose them to your competition.

Speed up response times by leveraging smart technology, such as artificial intelligence (AI) and automated messaging, to help prospects feel acknowledged. The time saved can free your team to focus on providing higher levels of service in other more impactful ways.

Leasing season is a vital time for residential property management, and it’s never too early to prep your team or too late to optimize your processes. With these tips, your rental properties and team members will be fully prepared for peak leasing season and ready to answer when prospective residents come knocking at your door.

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TATTENTION! PLEASE READ IMMEDIATELY

he industry is facing the single largest threat to Residential Housing Owners, a decision point battle this year with the “Justice for Renters Act” initiative, on the ballot this November. AIDS Healthcare Foundation President Michael Weinstein is financing a statewide ballot initiative to strip you of your property rights. This will be the third time, in 6 years, a ballot initiative for Rent Control will show up. This has been defeated twice with sizeable victories (Prop 10 in 2018, 60 to 40 and Prop 21 in 2020, 59 to 41), despite him spending over $64 million on the two previous campaigns. To beat this again, we need to fund a campaign with a margin sizeable enough to make it clear that Weinstein should not waste his time and try it again!

“Justice for Renters Act”- What it does:

• Eliminates the Costa-Hawkins Rental Housing Act which currently prevents local government from expanding rent control to include single family homes, condominiums, and muchneeded new development.

• Eliminates rent increases upon vacancy, (a.k.a. “vacancy decontrol”) by eliminating your ability to charge market rates on vacant units

The Board decision: The SCRHA Board of directors has implemented a Voluntary Political Action Committee donation on all membership dues statements in the amount of $7.39 per unit. Funds will go to the SCRHA Issues PAC and the rent control effort. SCRHA created this new political action committee for this vital effort and to be better prepared for future rent control and property tax measures Our statewide coalition, the California Rental Housing Association (CalRHA) is working to raise $5 million to defeat Mr Weinstein To achieve this, CalRHA equally divided the total number of units in the CalRHA network, to ensure everyone plays an equal part in our campaign for victory. $5 million is needed to inform voters of the true consequences of these policies through television, digital and print media campaigns

Please note, this is separate and in addition to the SCRHA PAC – your standard annual political effort used primarily to support candidates who understand your business.

IF we lose, here is how YOU are going to be impacted:

San Diego, Riverside, and the Imperial Counties currently do not have rent control. If we lose, draconian policies that once only impacted rent-controlled communities will impact every rental unit in the state.

• Rent Control Boards: You will lose all control and will answer to a Rent Control board Local boards made of tenant advocates will dictate how you run your investment properties to include if you can raise rents, when you can raise rents, if and when you can evict a tenant, and how much you must pay the tenants to vacate, when you can make improvement as well as whether you can pass repairs costs on to tenants. And you pay for these boards too.

• Vacancy Control: You will be prohibited from raising rents to fair market value when your unit becomes vacant. Say goodbye to fair yields, despite the ongoing increase in operating expenses, your returns face diminishment. See insert Vacancy Control vs Decontrol in San Diego.

The list goes on and on with additional impacts unknown. You own investment properties for a reason; do NOT let Rent Control Boards dictate how you should run your investments. We strongly urge you to pay the voluntary Issues PAC assessment of $7.39 per unit along with your other dues to protect your property rights.

Statewide Rent Control initiatives have been beaten twice. WE must beat it again We cannot stress this enough; this is critical to your business. Never have we faced a crisis as large and important as what we are facing in 2024! PLEASE PAY YOUR DUES & ALL VOLUNTARY ASSESSMENTS AS WE DEFEND THE INDUSTRY.

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This Probably Never Happened to You, But...

By C. Finley Beven

The tenant from #3 called to report that personal items were missing from the storage locker above her car She said that the hasp assembly had been pried out of the wood, thus making entry possible. The tone of her call was quite pleasant, but she made it clear that she expected us to “make good” her losses, and that she would be submitting an itemized list of the items lost.

Understanding the emotional state she must be in, just as any of us would be, I tried to talk her through the situation rather than out-right refusing her request

My first question was whether she had called the police. I had to ask, as (believe it or not) some people will make claims for losses that did not actually occur She said that she had not yet called the police, but said that she would. I suggested that a call to the police would be a good idea, as her personal property insurance carrier would expect a police report in order to process her claim

This observation took her back a bit, as she said that she had no personal property insurance I then reminded her that having Renters’ Insurance, on her personal possessions was required under her lease with us.

Silence

She then repeated her intent to submit a claim to us, and to ask for reimbursement. Her feeling was that as we had provided the storage locker, and therefore it should have been more secure

I then asked her if she still had a copy of her lease. She said that she did, and she asked me to wait a minute until she could get it Once she had the lease, I asked her to look at paragraph 6, which reads: “… STORAGE LOCKERS in garages/carports are not secure and may not be watertight. These lockers should not be used for storage of valuable possessions.”

I knew that this conversation was not going make her happy, but she did admit that we had done everything we could to warn her of the potential risks inherent in leaving valuable possession in a locker that is only protected by ½” of plywood, and hinges held on by ½” screws Our lease is designed to protect us, but it is also written to help tenants avoid foreseeable harm. If they will just read and follow

Please keep in mind that under current California law, if a tenant fails to get or maintain the renters insurance, this may not be grounds for an evictionrelated complaint against a tenant Courts may not view this as a “substantial breach”, enough to warrant an eviction. Check with your attorney for confirmation on this This approach has worked well for us

Dear Readers: This article is the 246th 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 everchanging 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

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

SCRHA State Legislative Update

Pat Moran, Aaron Read and Associates

BUDGET UPDATE

As Governor Newsom prepares to unveil his updated 2024-25 California state budget proposal — commonly referred to as the May Revision or May Revise — we anticipate new insights into the state’s economic forecast and revenue projections. It is due to be released on May 14, however, we are hearing it will be out as soon as May 10. The revised proposal will delineate the governor’s strategy for navigating the substantial deficit while maintaining a balanced budget.

May is the time when the Governor updates the budget based on the latest revenues and expenditures. Estimates of the budget shortfall have been between $38 and $73 billion and back down to $68 billion since January. Either way, a significant deficit. To date, the Governor has been resistant to increasing revenue in the form of tax reform, but whether that holds true remains to be seen

The Legislative Analyst’s Office has released a report proposing several tax reform measures including eliminating the capital gains step-up basis on inherited assets, the mortgage interest deduction for second homes, and tax subsidies for oil and gas companies. Once the Governor presents updated estimates, the magnitude of the shortfall will be known and will

significantly influence the forthcoming 2024-25 budget negotiations, serving as a deciding factor in shaping the state’s spending priorities for the coming fiscal year

LEGISLATIVE UPDATE

The deadline for bills to pass the Appropriations Committees is May 17 After that time, the focus will be on the Floor. Below is an update on several key pieces of legislation that we have been engaged in this year.

PRIORITY BILLS

AB 2216 (Haney) - Household Pets - Requires landlords to accept pets in their rentals without charging any additional refundable or non-refundable fee. As such, rental property providers would not be allowed to charge pet security deposits or prohibit common household pets in residential tenancies. This bill is pending a vote on the Assembly Floor. OPPOSE

AB 2347 (Kalra) - Evictions - Would make various procedural changes to landlord-tenant law, including specified extensions of time for tenants to respond to notices and eviction papers 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 It also prohibits the clerk from entering default in an unlawful detainer action less than three court days after the plaintiff files the proof of service of the summons

AB 2785 (Wilson) - Security Deposits - Would require a landlord to, within 30 days of receiving a tenant’s security, deposit the sum into an account of a bank or other financial institution regulated by the state or federal government. If it is deposited in an interestbearing account, any interest accrued on that balance would be payable to the tenant. The bill also caps screening fees and sets parameters for reimbursement, including if the tenant doesn’t qualify. We have been actively meeting with the author’s office on suggested amendments. - OPPOSE

OTHER BILLS OF IMPORTANCE

AB 2187 (Bryan) - Office of Tenants’ Rights and Protections - Would establish the Office of Tenants’ Rights and Protections, which is duplicative and costly Although there are multiple existing government agencies that provide services and education in this area, including the Business, Consumer Services, and Housing Agency and the Department of Justice, this bill seeks to add another resource for renters within the Civil Rights Department (CRD) CRD is currently responsible for enforcing, among other things, the state’s housing discrimination laws This bill is set for a

hearing in the Assembly Appropriations Committee on May 8. - OPPOSE

AB 2278 (Carillo) - Publishing Rental Rates - This is a CalRHA sponsored bill regarding the publication of the maximum allowable annual rent increase by the Attorney General . The bill has already passed the Assembly and is in the Senate, where it has been referred to the Senate Judiciary Committee.SUPPORT

AB 2498 (Zbur) - Rent Relief - Establishes the California Housing Security 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, subject to an appropriation. The bill would create a 2-year pilot in eight counties, including Los Angeles, Orange, and San Diego. The bill is pending a hearing in the Assembly Appropriations Committee. - SUPPORT

AB 2584 (Lee) - Corporate Owned Single-Family Homes - Would prohibit owners of more than 1,000 homes from buying more single-family properties. This bill was sent to the Suspense File in the Assembly Appropriations Committee, due to the cost We will know whether it is held or passed by the May deadline.

SCRHA Forms Update

SCRHA is pleased to announce that several forms have been updated so that members can continue to comply with state and local laws. Members may access the latest forms via their Azibo account

SB 267 which went into effect on January 1, 2024, requires that housing providers allow applicants with government rent subsidies the opportunity to provide alternative evidence of their ability to pay versus having their credit report run as part of screening SCRHA’s Application to Rent now reflects this option.

SB 567, effective April 1, 2024, changes the rules and requirements when terminating tenancy for No-Fault Cause, specifically for Owner/Family Member Move-In and Substantial Remodel/Demolition. These rules were also adopted into the Tenant Protection Ordinances (TPO) of the cities of Chula Vista and San Diego Forms specific to those local ordinances have been updated, as has the form for jurisdictions that fall under statewide Just Cause. Visit socalrha.org for additional information on SB 567 and compliance

List of Updated Forms

• Form 110 Application to Rent – Updated to include credit screening options for individuals receiving housing assistance through Section 8 or other government subsidies

• Form 418 Chula Vista Termination of Tenancy –Residential Rental Complex (3+ Units) - Updated to include required fields for Owner/Family Member Move-In and Substantial Remodel. This form is for 3+ Unit properties that are not exempt from the TPO

• Form 419 Chula Vista Termination of Tenancy 2 or Fewer Units – Updated to include required fields for Owner/Family Member Move-In and Substantial Remodel This form is for properties of 2 or fewer units that are not exempt from the TPO.

• Form 420 City of San Diego Termination of Tenancy (Just Cause) – Updated to include required fields for Owner/Family Member MoveIn and Substantial Remodel This form is for properties of any size that are not exempt from the TPO Please note that the City of San Diego requires an additional explanation in a termination notice of why the remodel work will take longer than 30 days

• Form 421 Sixty Day Notice Termination of Tenancy Statewide Just Cause – Updated to include required fields for Owner/Family Member Move-In and Substantial Remodel This form is used for all other jurisdictions which fall under the Tenant Protection Act (AB 1482).

THE BUILD-TO-RENT HOUSING BOOM:

NEW SINGLE-FAMILY RENTALS REACH ALL-TIME

HIGH, WITH ANOTHER 45,000 ON THE WAY

By Alexandra Both

New homes built for the purpose of renting are having a resounding moment, rising high on the shoulders of hybrid work and Millennials who are reaching their prime nesting years, but who are also finding homebuying challenging. Combine renter demand with interest from institutional investors and wellestablished builders and it’s safe to say we’re witnessing this niche at its historical peak.

10-YEAR EVOLUTION OF NEW BUILD-TO-RENT HOMES

In 2023, nearly 27,500 build-to-rent houses were completed, an all-time high. What’s more, this was 75% more than the year before and triple the number in 2021. Of course, the appeal of living in a house with a private backyard (albeit a small yard, in many cases) seemed even more irresistible after the pandemic. As a result, the number of single-family homes for rent built every year jumped from an average of 6,600 in the pre-pandemic years to tens of thousands of new units each year after that

*Only completed build-to-rent units. Source: RentCafe analysis of Yardi Matrix data

This momentum has led to more than 45,400 buildto-rent houses now under construction that are expected to welcome renters in the next couple of years While the bulk of these should open their doors in 2025, we anticipate a moderation of this fast-paced construction rush

So, which areas are seeing the largest numbers of new build-to-rent homes? The Phoenix metro area led the

way by far with more than 4,000 units completed in 2023, followed by Dallas and Atlanta. Then, Austin, TX, and Charlotte, NC, rounded out the top five metro areas with the highest numbers of houses for rent that opened their doors last year.

However, this adaptation of the American Dream is expanding beyond the traditional Southwestern markets and into Florida and even the Bay Area In fact, nearly 8,300 rental homes are currently underway throughout Florida, while another 2,400 are under construction in California.

BUILD-TO-RENT BOOM: 14 OF 20 TOP METROS ACHIEVED 10-YEAR HIGHS

After 2022 marked a record year for build-to-rent development, 2023 exceeded expectations with close to 27,500 rental homes completed nationwide. And, more than half of these homes are in the top 20 metros with the largest number of units added last year, 14 of which achieved 10-year highs.

Phoenix is the reigning metro with 4,030 singlefamily homes for rent opening their doors in 2023, a 10-year high and an impressive 164% growth compared to 2022. Granted, Phoenix is blessed with the opportunity of building out, rather than up (like in major coastal locations), so this desert city continues leveraging the popularity of build-to-rent homes. Plus, the area is also one of the fastest growing in the country when it comes to population, which also helps new communities fill up before their official openings

Next, Dallas followed with roughly 2,700 rental homes built in 2023, a slight decrease compared to the year before, but still its second-best year for build-torent construction in a decade For context, Texas was the leading state for build-to-rent development in 2023 with nearly 4,800 houses for rent completed . The Dallas metro accounted for more than half of these units.

TOP 20 METROS FOR BUILDTO-RENT COMPLETIONS IN 2023

than 3,500 single-family homes for rent built between 2019 and 2023 versus just 217 between 2014 and 2018

Next up were Austin and Charlotte with 840 and 714 houses for rent, respectively, added in 2023 While the Texas metro saw a 159% rise in new units compared to 2022, the North Carolina renter hotspot marked a 13% increase in that same timeframe.

The Midwest was also well-represented on our list thanks to Kansas City, MO; Columbus, OH; Akron, OH; and Indianapolis Seventh on our list, the Kansas City metro deserves a special mention after managing to ramp up its build-to-rent activity and open 636 new units in 2023 — a particularly notable jump compared to just 80 houses that were finished here in 2022.

On another note, Texas (4,800 units), Arizona (4,000 units), Florida (2,800 units), Georgia (2,181 units) and South Carolina (1,909 units) were the top five states for build-to-rent activity in 2023.

NEWEST BUILD-TO-RENT HOUSES ARE AVAILABLE IN TEXAS, FLORIDA AND EVEN CALIFORNIA

In addition to privacy and extra space, renters are also drawn to single-family homes for rent because they’re new and decked out in up-to-date amenities In fact, 41% of the total number of build-to-rent homes were built in the last five years. That’s about 68,000 rental homes

Then, the Atlanta metro was third in our top 20 with almost 2,000 single-family homes for rent completed in 2023 for another 10-year high Here, too (like in most metros in our top 20), the build-to-rent construction trend really took off in the last five years This translated into more

Source: RentCafe analysis of Yardi Matrix data

When it comes to the metros with the largest numbers of new houses for rent that were built in the last five

Please turn to page46

years, Phoenix was again at the top with more than 9,300 units. Specifically, the Valley managed to quadruple its supply between 2019 and 2023: Close to 80% of the total number of houses for rent in Phoenix were added in this timeframe

TOP 20 METROS FOR NEW BUILD-TO-RENT HOMES IN THE LAST 5 YEARS

Texas had four metros in our top 20, starting with Dallas at #2 with more than 6,500 singlefamily homes for rent built in the last five years That’s 62% of all homes for rent in the metro. Next were Houston at #4 with 2,400 units and Austin at #7 with 1,700 units Not far behind was San Antonio, which came in ninth on our list with 1,300 houses for rent built between 2019 and 2023.

Source: RentCafe analysis of Yardi Matrix data

That said, Atlanta (third) and Charlotte (sixth) each deserve a mention for the most significant increases in their build-to-rent supply. Atlanta’s rose seven times in the last five years to a total of nearly 4,100 houses for rent, while Charlotte’s skyrocketed from just 185 units to more than 2,200 in that same timeframe. To that end, 92% of Charlotte’s single-family homes for rent opened their doors between 2019 and 2023.

Sunny California and Florida metros also ranked high on our list. More precisely, Jacksonville, FL, was 10th with close to 1,300 single-family homes for rent completed since 2019 while Tampa tripled its number of build-to-rent houses by adding 1,100 units in that same period Out on the West Coast, the Riverside, CA, metro completed more than 1,000 houses for rent in the last five years to bring its total supply to more than 4,400 units.

EMERGING METROS FOR SINGLE-FAMILY HOUSES FOR RENT ARE IN FLORIDA, NORTH CAROLINA

Nationwide, there are 32 metros with their entire build-to-rent supply completed in the last five years. However, more than half don’t have any new projects underway For this reason, we selected the ones that had the largest numbers of built houses for rent and significant developments underway to highlight them as emerging build-to-rent markets.

First is Florida’s North Port metro with its 749 rental homes built between 2019 and 2023 and 994 currently underway Next are Raleigh in North Carolina with 743 fresh homes and 355 more under construction, as well as Lakeland in Florida with 489 units already built and 317 more coming up.

Also in the South is Savannah, GA, which has 400 newly built houses for rent and 1,000 underway. Not to be outdone, Michigan’s Ann Arbor is also a new buildto-rent market with 267 rental homes opened between 2019 and 2023 and 632 more under construction That said, none of these get even close to Huntsville in Alabama, which is getting ready to add almost 2,500 new houses for rent to its existing 262 units Accordingly, the city is gearing up to become the largest in the state with the Port of Huntsville seeing immense growth, creating jobs and attracting new residents.

TEXAS HAS MOST BUILD-TO-RENT UNITS UNDER CONSTRUCTION, PHOENIX IS TOP METRO FOR PROJECTS UNDERWAY

After years of record completions, the wave of buildto-rent projects peaks this year with nearly 45,500 new houses under construction The top five metros with the largest numbers of units underway — Phoenix, Dallas, Houston, Huntsville and Charlotte — account for half of the total volume

Phoenix — the largest build-to-rent market in the country — will add more than 7,200 new houses for

rent to its current portfolio of 12,400 units, further solidifying its status. Similarly, Texas metros Dallas (#2) and Houston (#3) are working on 6,500 and 4,800 new single-family homes for rent, respectively, by 2026. These will pile upon the current 15,600 units in the Lone Star State — the state with the most significant build-to-rent supply.

TOP 20 METROS WITH MOST BUILD-TO-RENT UNITS UNDER CONSTRUCTION

Source: RentCafe analysis of Yardi Matrix data

Clearly, construction activity picked up significantly in the post-pandemic era. Even so, predictions outline a slight moderation in the pace of deliveries in the years to come.

METHODOLOGY

RentCafe com is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States

Speaking of productive states, Florida stands out with four locations in our top 20 metros for build-to-rent homes underway Specifically, Jacksonville, Tampa, Orlando and North Port have a total of 5,300 houses expected to welcome renters in the next couple of years Also on our list, Salt Lake City; Nashville, TN; Columbus; and Savannah each have more than 1,000 new rental homes underway

Meanwhile, sunny California is also well represented in our ranking with Riverside and Sacramento at #18 and #19, respectively, each with around 900 homes under construction And, in the Mountain region, we have Denver, which is 20th on our list with nearly 800 single-family homes for rent to be delivered in the next two years, a significant jump compared to the 174 new homes added in 2023. As a matter of fact, nearly all of Denver’s total 1,300 units were built in the last five years.

This study is exclusively based on data related to build-to-rent communities containing at least 50 single-family rental units.

This analysis was performed by RentCafe using data provided by our sister company, Yardi Matrix The data includes only properties defined as single-family homes for rent that are located in build-to-rent, professionally managed communities in the markets covered by Yardi Matrix research Data for some markets may not be available and data for the locations included in the analysis may be subject to change This analysis does not include other types of single-family rentals that are not located in build-to-rent communities.

Build-to-rent communities are defined by Yardi Matrix as communities where at least 50% of the units fit one of the following criteria: (1) They do not share any walls with other units, or (2) they have shared walls, but do not have neighbors above/below or have a directaccess garage.

For the purposes of this study, we considered as “completed in 2023” only units that received a certificate of occupancy by the end of December 2023. Units under construction either have not yet received an official certificate of occupancy or are currently being built. Under construction data may be incomplete and is subject to change

Alexandra Both is a senior creative writer with RentCafe com She has more than six years of real estate writing experience as a senior editor with Commercial Property Executive and Multi-Housing News She is a seasoned journalist, who has previously worked in print, online and broadcast media Alexandra has a B.A. in Journalism and an M.A. in Community Development.

A

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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..................... . 619.884.0906

J

Johnston Property Management, Inc 760 944 0703

K

KFR STAR Realty 619 293 7653

L

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 Residential619 500 8509

Oakleaf Apartments | Management Works760 433 9510

Ocean Breeze Apartments|Greystar 619 428 3369

GINA KOENEN

NMLS #613320

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.

Vice President, Commercial Loan Officer (951) 403-0567 | gkoenen@myprovident.com

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 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

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

1031 EXCHANGE & TRUST SERVICES

Exeter 1031 Exchange Services, LLC (619)239-3091

ADVERTISING & MARKETING

Apartment News Publications 714 893 3971

Apartments.com ..................... 888.658.7368

Financial Designs, Ltd 858 597 1980

Realtor.com ......................... 805.223.9413

Rent 858 220 8521

Zillow Rentals 206 516 2263

AIR CONDITIONING

Aquinas HVAC 619 410 3154

APARTMENT BROKERAGE/SALES

Doug Taber CCIM - Rental Property Broker 619 483 1031

APPLIANCE MAINTENANCE & REPAIR

Mr Appliance of Ramona 760 896 4994

APPLIANCE SALES

R & B Wholesale Distributors, Inc 909 230 5400

Western State Design, Inc 510 931 7099

ATTORNEYS-AT-LAW

Andrew Griffin 619 440 5000

Heinz & Feinberg 619 238 5454

Kimball, Tirey & St John LLP 619 234 1690

Todd A Brisco & Associates, APC 714 634 2814

BACKFLOW TESTING

Pacific Backflow Company, Inc 760 639 4000

San Diego Backflow Testing, Inc 877 363 8378

BANKS

Chase Commercial Term Lending 619 464 0573

BATHROOM REMODELING & REFINISHING

American Bathtub Refinishers 619 265 9200

CABINET AND COUNTERTOPS

Grand Design Kitchens 760 789 0992

Qwikkit ............................. 844.484.3548

Surface Experts Central San Diego 858 926 4041

CARPET CLEANING

Cleanology Housekeeping Personnel Service ................................... . 619.281.2532

CARPET SALES & FLOORING

America’s Finest Carpet Company..... . 800.888.1568

C R FLOORING COMPANY 619 748 0015

J & C Carpet Company 619 498 1424

KJ Carpet Wholesale ................. 909.455.0180

Sid’s Carpet Barn, Inc. ............... . 619.477.7000

CLEANING & JANITORIAL SERVICES

Atlas Property Service 858 386 4578

Bar-B-Clean San Diego South 858 988 7966

Cleanology Housekeeping Personnel Service 619 281 2532

DAPA Services Inc. .................. . 619.221.9292

Pacific Coast Cleaning, Inc............ . 858.565.1603

Sea Crest Services, Inc 949 477 4961

TWS Facility Services 888 883 1915

COIN-OPERATED LAUNDRY EQUIPMENT

All Valley Washer Service 800 247 1100

WASH Multifamily Laundry Systems 858 279 1234

COLLECTIONS

BuzzCRS, Inc....................... . 816.341.8887

Kimball, Tirey & St John LLP 619 234 1690

CONSTRUCTION AND REMODELING

Cambridge Maintenance and Property Services, Inc 619 320 8334

CHC Construction 858 228 7036

Dexcore Restoration 619 993 3417

Larry O’Dell Construction............. . 619.501.5252

McMillin Contracting Services......... . 619.401.7000

Southern Cross Property Consultants 858 945 2629

DECK COATING

General Coatings Corporation 619 707 2639

Life Deck Coating Installations 619 262 8600

ELECTRICAL CONTRACTORS

Kennedy Electric .................... . 619.582.6568

EMERGENCY SERVICE FLOOD/ FIRE

All Dry Services of San Diego 858 353 1646

ATI Restoration, LLC 619 318 2807

BELFOR Property Restoration 858 847 9886

Generation Contracting & Emergency Services, Inc 858 679 9928

Pinnacle Services 877 673 9049

RAMM Restoration .................. . 760.807.8743

EMPLOYMENT AGENCY

Go-Staff 858 518 0326

Legacy Apartment Staffing 619 387 5530

The Liberty Group 951 744 0057

ENERGY EFFICIENCY CONSULTING

ESA Multifamily Energy Savings Program ................................... . 310.899.5382

Statewide Reach

PACKAGE/PARCEL MANAGEMENT SERVICES

Parcel Pending 949 490 6987

PAINT MANUFACTURERS & SUPPLIES

Dunn-Edwards Corporation 619 884 3866

PAINTING

Executive Coatings & Contracting 888 300 6786

Primus Paint Worx, Inc 619 738 8022

PARKING MANAGEMENT SOFTWARE

Reliant Parking Solutions 888 977 6848

PAVING MAINTENANCE

Eagle Paving 858 486 6400

PEST CONTROL

Accurate Termite and Pest control ..... . 949.994.0758

ATCO Pest Control ................... 415.898.2282

BugMizer Termite and Pest Inc ........ . 760.855.2847

Kilter Termite and Pest Control ......... 714.348.0488

Lloyd Pest Control................... . 800.570.2847

PLUMBING

BioAir Mechanical & Plumbing 858 348 9248

Pfister 720 660 2883

PROPERTY MANAGEMENT PERSONNEL

BG Multifamily 619 785 3164

InterSolutions 619 804 2554

PROPERTY MANAGEMENT SOFTWARE

Domuso 985 210 3473

REAL ESTATE

Doug Taber CCIM - Rental Property Broker 619 483 1031

Voit Real Estate Services 858 453 0505

RENT GUARANTOR

TheGuarantors 212 266 0020 REPIPING

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

RESIDENT RETENTION

WithMe 714 476 6059

RESIDENT SURVEYS

SatisFacts Research 866 655 1490

ROOFING

A-1 All American Roofing Company 858 537 5177

Commercial & Industrial Roofing 619 465 3737

Gorman Roofing Services 602 262 2423

Sully-Jones Roofing 800 611 3110

SECURITY GUARD PATROL

Securitas Mobile Guarding 619 214 4919

Security First ....................... . 619.243.3992

SECURITY SERVICES

Bald Eagle Security Services, Inc....... 619.230.0022

JDS Security 619 781 8694 Signal Security 619 363 7233

SEISMIC RETROFIT

Optimum Seismic 562 298 6395

SMART TECHNOLOGY

Ivy Energy 801 318 7803

880 5419 Generation Contracting & Emergency Services, Inc

858 663 8330

applyconnect

HELP STOP RENT CONTROL INITIATIVE

A new

rent

control initiative will be on the November 2024 ballot.

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

Your rental income and property value will decline.

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 i ncluding single-family homes and condominiums by eliminating AB 1482 protections.

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 this so-called "Justice for Renters" initiative in 2024, 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.

To make a contribution, please scan the QR code. Thank you for your generosity.

$80 million dollars. This next fight will cost even more. $5 MILLION TARGET

The last rent control fight cost the broader housing industry

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

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

SAN DIEGO GAS

FAMOUS FOR VALUE

Huge Clearance Center

Largest Selection in San Diego

Famous quality and value since 1974

Professional Delivery, Installation, & Haul Away

Property Management & Commercial Accounts Welcome

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

Famous for Customer Value since 1974!

Trusted for “On Time” service for 37 Years!

Providing the Multi-Unit Housing community with value and service

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

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

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

VALUE OUTREACH ADVOCACY

OURVISION

Reenvisioningquality housingforall

VALUE

Recognizedresourcehubthatinspires diversemembershipgrowth& engagementfromallsectorsofrental housing.

Theultimateresourceforallthings relatedtorentalhousing.

ADVOCACY

Rentalhousingfriendlypublic policy&electedandappointed officials

Robustfundingforrentalhousing policycreation

Character&integritythatnegates needforregulation

OUTREACH

OURMISSION

Tocreateathriving rentalhousing communitythrough advocacy,education, andcollaboration

PeoplecomingtoSCRHAforopinion, advice,knowledge,&expertise

Rentalhousingprovidersare recognizedasvaluable&essential membersofthecommunity

Presenceinthe community

Resourcehub

Productandprogram diversification

Fundraising

Collaboration STRATEGIES STRATEGIES

Strategicalliances

Setstrategicpriorities STRATEGIES

Visibility&prominence