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
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Fax: 888.871.5229
socalrha.org
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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:
Looking Ahead to Fall
It’s hard to believe that the end of summer is near, and while I’ll miss the summer days, I’m looking forward to a busy Fall with SCRHA . The Education Calendar is packed with important classes, and the Events Calendar features several opportunities to connect with your rental housing colleagues in various locations
I’m excited to attend the 2024 Golf Classic on September 12 The Coronado Municipal Golf Course is a beautiful backdrop for a day of friendly competition and team building Foursomes are still available, so register today to build stronger relationships over a game of golf .
As we finalize the details of the Golf Classic, I’d like to take a moment to congratulate all of the accomplished 2024 Mark of Excellence Nominees Now that nominations are closed, the judging process is in full swing, and I know the competition will be fierce. I’m excited to celebrate with everyone at the Awards Ceremony on November 1 at Sycuan Casino Resort .
While the Mark of Excellence is one of my favorite events of the year, I’m even more excited to celebrate the 30th anniversary of this award That is 30 years of recognizing and honoring the dedication and efforts of rental housing professionals throughout Southern California
Whether you are a past nominee, winner, or event attendee, we invite you to submit your favorite photos to share on our social media channels . You can email scanned photos or digital files to info@socalrha.org! Tickets will open soon, so be sure to check your email . We expect the event to sell out; you won’t want to wait and risk missing the fun
I’m proud to lead an Association that provides robust programming for its members and the community . While these classes and events tackle different topics or occur in different locations, each is an opportunity to come together, learn about the industry, and build more robust networks with your rental housing colleagues
I hope to see you soon as we continue the work of creating a thriving rental housing community through advocacy, education, and collaboration .
Annual Meeting
SCRHA members are invited to the annual meeting held the week of October 14 Attendees will vote on the incoming 2025 board members . The meeting is free to all SCRHA members, and there is one vote per company
You must register to attend the meeting Please assign the person voting for your company before the meeting . Check socalrha .org for more details .
BOWLING TOURNAMENT
Alan Pentico, CAE
Executive Director
Southern California Rental Housing Association
Executive Director’s Message: San Diego County Board of Supervisors Update
The hard work of defending the rental housing industry never ends, and the recent passing of the “Fight Back Against Corporate Homebuyers and Wallstreet Landlords” by the San Diego County Board of Supervisors perfectly illustrates the never-ending assaults on our industry .
In late July, the San Diego County Board of Supervisors passed the “Fight Back Against Corporate Homebuyers and Wallstreet Landlords” in a 3-1 vote, with Supervisor Joel Anderson the staunch “NO” vote . As noted by Supervisor Anderson, this ordinance will do nothing to create new housing that Southern Californians so desperately need .
It’s a classic example of a solution in search of a problem . According to the California Research Bureau, less than 2% of single-family homes in California are owned by investors with ten or more properties . This is in stark contrast to the markets of Atlanta, Georgia, Charlotte, North Carolina, and Jacksonville, Florida, which consistently rank high in markets dominated by institutional investors . It’s incredibly alarming that this ordinance was proposed in reaction to headlines instead of facts .
Terra Lawson-Remer brought the item forward, and Monica Montgomery-Steppe seconded the motion . The proposal calls for an analysis of commercial ownership of single-family residential properties in San Diego County and opens the door to exploring affirmative litigation options and opportunities for new legislation affecting rental housing providers.
SCRHA was hopeful that Jim Desmond would vote against the proposal . Still, he supported the proposal with changes that would sequence the ordinance so
that analysis would occur prior to proceeding with the litigation and ordinance creation components . He also asked that staff look at owners of 25 properties or more and that additional property types be analyzed, requesting that ownership of condos and townhomes be included with single-family homes County staff will report back with their findings. Once that step is complete, the Board of Supervisors will then decide to proceed with recommendations that would include exploring affirmative litigation options against corporate BAD ACTORS and institutional investment firms and exploring opportunities for ordinances related to tenant harassment, price gouging, the use of revenue management systems, and possibly more
SCHOLARSHIP PROGRAM
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Your donation to the Rental Housing Scholarship is an investment in the future of our industry.
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Our concern is that this data analysis could lead to serious unintended consequences for rental housing providers Many individuals, families, and couples/ domestic partners structure their properties in LLCs, partnerships, and family trusts for tax and inheritance purposes. It is difficult to determine if the owner is a so-called ‘Wallstreet Landlord’ solely based on the property’s title being held by an LLC or partnership . This could lead to inaccurate targeting and potential
BROKER PROGRAM
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financial harm for rental housing providers who rely on their rental income to fund retirement or other financial goals.
Additionally, vilifying corporations and all revenue management systems is unfair and unproductive . As noted by Supervisor Anderson, if it weren’t for corporations, some projects (especially larger ones) would not get built . In chasing headlines, supporters seem to forget the many corporations that build and operate Affordable Housing, are spearheading transit-oriented development, and, ironically, are the very entities in which municipal and state retirements are invested . When it comes to revenue management systems, one company is under
scrutiny, and wrongdoing has yet to be established But even if it is, to throw all such platforms under the bus and restrict their usage in San Diego County could be devastating to the small, medium, and large management companies that rely on them . And what would it mean to the residents who have come to rely on these user-friendly applications?
The next steps could open the door to costly litigation or additional burdensome legislation This could force more landlords to leave the industry entirely, adding to the housing crisis These aren’t necessary because these concerns are being addressed by Federal and State Governments. Duplicative efforts could be a cost burden to taxpayers without creating any new housing, and we must avoid this unnecessary strain on our industry
As this progresses, SCRHA is reaching out to County staff to ensure that the rental owners and managers have a voice in this process Thank you to all the members who attended the meeting, submitted eComment, and called in . Far more comments were received in opposition than in support That makes it even more unfortunate that some Supervisors ignored the warnings from landlords and industry representatives and instead focused on the one corporate landlord that tenants’ rights groups are targeting .
Be sure to subscribe to our emails and sign up for action alerts at www .socalrha .org to keep up with the latest updates Your support and engagement are crucial in this fight. We cannot let our voices be silenced on this critical issue, and we need you to stand with us .
newmanwindows
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
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
San Diego Region’s 2024 Annual Survey Records Major Increase in Vacancy Rates and Lower Rents
LEGISLATIVE REGIONALUPDATE
Southern California Rental Housing Association’s (SCRHA) 2024
Vacancy and Rental Rate Survey recorded a significant uptick in the availability of rental units At the same time, countywide, rents compared to last year have taken a considerable dip of slightly over 7% . Rents in just the City of San Diego have also declined by over 3% .
The San Diego Region saw an overall increase in the vacancy rate, ticking up to 6 36% compared to 3 9% in Spring 2023 The City of San Diego vacancy rate rose to 4 .22% from 2 .64% last year . Newer properties just brought online contributed somewhat to the higher vacancy numbers, but many older properties are also experiencing higher than normal vacancy rates .
The availability of more units is clearly reflected in rental rates . Region-wide rents decreased on average from $2,338 in 2023 to $2,170 in 2024 .The average City of San Diego rent recorded in the Spring of 2023 was $2,266 compared to $2,189 reported in Spring 2024 .
While the 2023 Spring Survey pointed to a leveling out of rents and maintained demand for rental units, the 2024 Spring Survey indicates what industry members have been telling SCRHA they are experiencing on the ground; higher vacancies and lower rents .
Southern California Rental Housing Association has used its Vacancy and Rental Rate Surveys to track rental and vacancy rate data in the San Diego
Region since the 1950s Surveys were mailed to approximately 6,000 San Diego rental property owners and managers this past March SCRHA received responses representing approximately 11,400 units Housing provider owners and managers were asked to record information about their rental units such as rental rates, the number of bedrooms, squarefootage, age, location of the property, if the property is a condominium, single-family or apartment unit, and if the unit was unoccupied on a specific date.
The data recorded from each Vacancy and Rental Rate Survey is unique and varies . The data from the surveys are dependent on the number of responses and information provided by SCRHA members and non-members. While it may be difficult for housing providers to determine market trends in the San Diego region’s rental housing market, SCRHA surveys remain vital resource providing information on all rental unit types in the region . The SCRHA recommends rental housing professionals review the data of nearby cities and zip codes in the current and past SCRHA and SDCAA surveys and use other rental housing resources to track rental and vacancy rates
The comprehensive Vacancy & Rental Rate Survey is available to SCRHA members at socalrha org Please log in to your account to access the complete survey Non-members can purchase the survey at socalrha org
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
3 Tips to Find the Perfect Security Partner for Your Property
By Jamine Moton, Founder and CEO of Skylar Security
When it comes to high-rise property management, whether you’re working with big or small properties, there will always be a need for security to avoid risks to the property or the people living inside it . As a property manager, it is your responsibility to have all areas of the property safe and under control for everyone involved From risks such as break-ins and theft to other issues like exterior damage and broken assets, the key is finding a security partner that can navigate them all
But given the unique complexities involved with highrise property management, how can you find a provider that’s right for you? After all, they must manage threats not only to the building itself but also to the residents and surrounding community . Even properties that have comprehensive digital security systems are still at risk of potentially dangerous situations . And vacant properties are often especially vulnerable to crimes like vandalism, squatting, and theft
A reputable security partner will demonstrate proactive approaches to identifying and mitigating these risks, with the goal of being adaptable when incidents occur as well as finding ways to prevent them in the first place. Effective communication and collaboration are
non-negotiable, as the provider should understand the intricacies of the property and align with the ethos of its management This ensures a clear understanding of responsibilities and accountabilities .
As you consider your options, look for a security partner who will engage with you and understand the building, along with the community you’re working with. The right provider will offer clear and open lines of communication, educate you on potential risks, and create a space for feedback . It’s important to find someone that you can create a relationship with beyond the contract and who demonstrates genuine concern for the safety of the property they are working to protect
While these security measures are indeed fundamental, they are just the tip of the iceberg Here are a few other aspects to pay attention to when choosing the security partner that’s right for you:
OPERATIONAL AUTONOMY AND EMERGENCY MANAGEMENT
A capable security partner should leverage their expertise for the benefit of the property. Implementing self-managing tools like sensors, alarms, and access controls within the building enhances tenant safety
when a guard isn’t present This comprehensive setup not only monitors access and restricted areas but also offers proactive security measures beyond mere surveillance . In times of emergency, the system can automatically trigger alerts, ensuring a timely response
By creating, implementing, and maintaining a meticulously designed security infrastructure, the property can improve incident response capabilities and prevent potential threats before serious harm occurs . With the building operating securely, the community within it can flourish without fear.
BRANDING AS A CUSTOMER EXPERIENCE
Now more than ever, it’s important for security guards to blend into the background at places like highrise commercial and residential buildings, where the customer experience matters . Security personnel must maintain a vigilant watch without imposing an intrusive or unwelcoming atmosphere upon residents . Moreover, these team members effectively become an extension of your brand identity As a result, the way security personnel present themselves should be thoughtful and intentional The provider might give you the option to customize the guards’ physical presence to a reasonable extent, from the uniforms they wear to the cars they drive, to help them align with the desired image of your brand .
Having a trusted security partner not only ensures the physical safety of the property and its residents but also the seamless integration into the community .
When residents see the robust safety measures in place, they feel more supported, thereby enhancing the perceived reliability of your brand
COMMUNICATION AND FEEDBACK
Effective communication with your security partner is the cornerstone of success at every level When it comes to security, emotional intelligence plays a pivotal role in the way the guards engage with your stakeholders It’s about building trust through transparency and responsiveness, ensuring that decision-makers are informed and involved in the security strategy that protects their interests . Your security provider should go the extra mile to maintain open and frequent dialogue with staff, residents, and leadership. They should be available to answer questions and address concerns, and should tailor their communication to what works best for you, whether it’s monthly updates or policies that aid in disseminating important safety protocols .
Selecting a security partner is a strategic decision with far-reaching implications, especially for property managers As you evaluate potential providers, consider these factors as non-negotiables for a relationship that will stand the test of time through the many challenges of property management . By doing so, you will lay the foundation for a partnership that not only protects your property but also nurtures a community that trusts your brand to keep them safe .
CALENDAR Register at socalrha.org
Register for events and classes online at socalrha.org. Please note, that all in-person classes
Questions? Contact us at events@socalrha.org or 858.278.8070
August 8
Small Claims Court Luncheon
Marina Village
12:00P - 2:00P
Join us for a luncheon discussion delving into the intricacies of the small claims court process tailored for landlords We’ll explore the step-by-step procedures from filing a claim to presenting evidence and provide insights to help you efficiently navigate legal complexities. Whether you’re a seasoned landlord or new to the field, this session promises practical knowledge to bolster your confidence in pursuing legal recourse effectively.
August 21
North County Lunch & Learn
Shadow Ridge Golf Course
August 15
Fair Housing Part I & II
Webinar
11:30A - 2:00P ICON KEY
9:00A - 4:00P
A staple in the property management industry, this two-part series provides an in-depth look for individuals looking for refresher training or for a company looking to train new and seasoned employees Register today and understand how you can learn valuable tips from a risk management perspective ICON KEY
Join us for our upcoming North County Lunch and Learn focused on risk management for rental housing providers from Jessica Knowles, R A Snyder Properties, Inc . This informative session will provide practical strategies to mitigate risks in your rental properties
ICON KEY
August 22
10:00A - 11:00A
The Screening Deep Dive: Detecting Deception in Rental Applications
Join us for an illuminating webinar where we explore the intricacies of detecting fraudulent information in rental applications In the realm of property management, ensuring the reliability and honesty of prospective residents is paramount
This session will delve into the best practices for employment, tenant, and income verifications as critical components of a thorough screening process .
ICON KEY
UPCOMING EVENTS:
September
9/04: Supplier Council
9/12: Golf Classic
9/16: 9/18: Certified Apartment Leasing Professional (CALP)
9/18: New Member Orientation
October
10/15: Take Charge:Master YOUR Day, Don’t Let It Master You!
10/22: Independent Rental Owner Council
10/23: NextGen Bowling Tournament
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
President Biden Has Proposed Tax Increases. Here Are 6 Of Them
By Robert W. Wood
President Joe Biden is thinking big when it comes to his budget and the taxes that are needed to pay for it The president’s FY 2025 budget is a whopper at $7 .3 trillion, and the budget floats some serious tax increases, too As you might predict, much of the focus is on getting higher income taxpayers to pay more
HIGHER RATES
Currently, the top federal rate on ordinary income is 37% . Biden has proposed increasing it to 39 6%, which was the top rate back in 2017 . Starting in 2018, President Donald Trump signed into law the Tax Cuts and Jobs Act that made many cuts, including the 2 .6% cut to the top ordinary income tax rate . Notably, though, the new 39 6% rate is only supposed to apply to taxpayers making $400,000 or more .
CAPITAL GAIN TAX INCREASE
If you sell your stock, property or crypto and you’ve held it for more than one year, you get a classic tax break Long-term capital gains are taxed at lower rates than ordinary income . But how much lower depends on your income If your taxable income is $47,025 or less, you pay zero tax on your long-term capital gain. If your taxable income is from $47,026 to $518,900, you’ll pay 15% on your long-term capital gain
If your taxable income is more than $518,900, you pay 20% on your long-term capital gain . Under current law, even if you have millions in long term gains, your top capital gains tax is 20% But before we discuss Biden’s proposal, it’s important to note that many long-term capital gains are also subject to the net investment income tax, sometimes called the Obamacare tax .
That is another 3 .8%, bringing the typical top tax rate on long-term capital gains to 23 8% This 3 8% net investment income tax applies if you have modified adjusted gross income above $250,000 if you are married and filing taxes jointly. If you are single, the threshold is $200,000 .
How would the capital gains tax change under Biden’s FY 2025 budget proposal? For high income taxpayers, the long-term capital gains tax could nearly double to 39 .6% . That proposed capital gains rate increase would apply to investors who make at least $1 million a year . In fact, it is possible to go even higher, as high as 44 6% Portions of the General Explanations of the Administration’s FY 2025 Revenue Proposals note that for some taxpayers, if you add several proposals together, they could increase the top marginal rate on long-term capital gains and qualified dividends to 44 6% It seems unlikely that this major capital gains tax change will be enacted, but time will tell .
MEDICARE TAX
President Biden is proposing a tax increase for people making more than $400,000 a year to help finance Medicare The increase would hike the Medicare tax rate from 3 8% to 5%
1031 EXCHANGES
Section 1031 is one of the few sections of the tax code everyone seems to know It is even routinely used as a verb . Under 1031, if you exchange real estate for likekind real estate, the gain is postponed until you sell your replacement property . Properties are of like-kind if they are of the same nature of character, whether they’re improved or unimproved . For example, an
apartment building would generally be like-kind to another apartment building Starting in 2018, swaps of Bitcoin 0 .0% for Ethereum 0 .0%, exchanges of private aircraft, paintings, or coin collections don’t qualify Only real estate qualifies, and it must be of like-kind. It has to be business or investment property, not your personal residence
Still, improved real estate can be exchanged for unimproved real estate . And city real estate can be exchanged for a ranch or farm . The real estate industry has counted on this provision for generations, but President Biden’s FY 2025 budget would repeal this code section The White House has said that it “amounts to an indefinite interest-free loan from the government.”
NO MORE CARRIED INTEREST LOOPHOLE
Some fund managers are able to treat certain types of carried interests as a long-term capital gain, even though they receive the interest as part of their pay This provision of the law has long been criticized, and the Biden budget proposal would treat these interests as ordinary income for federal income tax purposes
BILLIONAIRE TAX
President Biden also wants to impose a minimum tax on billionaires The provision is controversial in part because it is a type of wealth tax rather than a traditional income tax Despite the billionaire label on the proposal, this new tax would also apply to people who are wealthy but a long way from being a billionaire . If passed, the billionaire tax would be a minimum of 25% for households with net worth exceeding $100 million
Robert Wood handles tax matters across the U .S . and abroad (www .WoodLLP.com), addressing tax problems, tax disputes, writing tax opinions, tax advice on legal settlements, transactions, crypto, and many other matters . Wood LLP is a nationally recognized tax law firm representing clients worldwide in tax matters. We give tax advice and handle tax controversies about lawsuit settlements, transactions, cryptocurrency, tax residency, litigation finance, and more. We write formal tax opinions and handle audits, appeals and tax litigation Please email Wood@WoodLLP com for more information
CalRHA Policy Update
LEGISLATIVE UPDATE
The Legislature is now on summer recess until August 5th when they will reconvene to finish their final month of session . Before adjourning for summer recess, we had several favorable outcomes First, the author of our top priority bill, AB 2216 (Haney, D-San Francisco), mandating pets in rental units, decided to no longer move his bill this year This is a huge win for the industry Additionally, two bills that we were opposing, AB 2584 (Lee, D-Milpitas) - Corporate Owned Single-Family Homes and SB 1201 (Durazo) - Beneficial Owners were pulled from their policy committee hearings by the authors because they did not have the votes to pass . Both bills are dead for the year . Finally, we had been negotiating with the author’s office on SB 611 (Menjivar, D-San Fernando) - Rental Advertising Fees, which was significantly amended to remove the onerous section of the bill so CalRHA was able to go neutral
Other updates on key legislation that is still moving can be found below:
● AB 2278 (Carillo, D-Los Angeles) - Publishing Rental Rates - Would have the Attorney General publish the maximum allowable annual rent by July 1st of each year . AB 2278 is on the Senate Appropriations Suspense file and will be acted upon in August . - SPONSOR
● 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 . AB 2347 passed the Senate Judiciary Committee and heads now to the Senate Floor . - OPPOSE
● AB 2498 (Zbur) - Rent Relief - Establishes 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, 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 Senate Appropriations Committee - SUPPORT
● AB 2747 (Haney) - Credit Reporting - Requires specified landlords to offer each tenant obligated on a lease the option of having the tenant’s positive rental payment information reported to at least one nationwide consumer reporting agency AB 2747 is on the Senate Floor - OPPOSE
● AB 2801 (Friedman) - Security Deposits - As introduced, the bill would have prevented using security deposits for professional carpet cleaning However, the bill has been significantly amended and is less onerous AB 2801 has been amended to carve out small owners and is pending on the Senate Floor
The legislative calendar for 2024 is as follows: July 4 - August 4 - Summer Recess
August 16 - Last day for fiscal committees to meet and pass bills
August 23 - Last day to amend bills on the Floor
August 31 - Last day for each house to pass bills
September 30 - Last day for the Governor to sign or veto bills
INITIATIVE UPDATE
November 5, 2024 Ballot Measure numbers have been formally assigned by the Secretary of State for the ten measures, including:
● Prop. 2 – AB 247 (Muratsuchi) – $10 billion bond to fund construction and modernization of public education facilities .
● Prop. 3 – ACA 5 (Low) – Repeal Proposition 8 and establish the right to marry
● Prop. 4 – SB 867 (Allen) – $10 billion bond to fund state and local parks, environmental protection projects, water infrastructure projects, energy projects, and flood protection.
● Prop. 5 – ACA 1 (Aguiar-Curry) – Local government financing, affordable housing and public infrastructure voter approval lowered to 55% from the current ⅔ requirement
● Prop. 6 – ACA 8 (Wilson) – Prohibits involuntary servitude as punishment for a crime
● Prop. 32 – Raises minimum wage to $18.
● Prop. 33 – RENT CONTROL - Costa Hawkins repeal. Expands local governments’ authority to enact rent control on residential property.
● Prop. 34 – Restricts spending by health care providers meeting specified criteria (ex. AIDS Healthcare Foundation) .
●Prop. 35 – Provides permanent funding for MediCal health care services via MCO tax
●Prop. 36 – Changes Prop 47. Allows felony charges and increases sentences for certain drug and theft crimes
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.
WHY EARTHQUAKE RETROFITS ARE AS ESSENTIAL AS SEATBELTS?
by Ali Sahabi, Optimum Seismic
The Northridge earthquake of 1994 is often cited when discussing seismic disasters because it is a shared experience for many. The 6.7-magnitude quake shook Southern California for just 10 to 20 seconds but caused $67 billion in damage. However, seismologists warn that the next “Big One” could be much more severe, potentially reaching a magnitude of 7.5 or higher and causing an average displacement of 9 feet along the fault.
KNOW THE RISKS AND BE PREPARED
The U .S . Geological Survey and other agencies estimate that a temblor of that size would kill more than 1,800 people, injure 50,000 and cause $200 billion in damage with long-lasting social and economic impacts. Those residual impacts – as witnessed from past hurricanes, earthquakes, tornadoes and other natural disasters around the nation – test the resiliency of individuals, families, businesses, neighborhoods, lending institutions, and local, state, even federal governments
A lot has been learned from earthquake models since the Northridge quake . We now understand much more
about seismicity, ground motion and engineering, and these advances in technology have allowed us to identify threats based not only on geography – i.e., proximity to fault lines and soil composition – but also by building characteristics
Seismic retrofitting of these vulnerable structures is critical to reducing risk, the Federal Emergency Management Agency study found, along with a growing number of cities now requiring retrofits of these structures .
COST BENEFITS TO BUILDING OWNERS
Researchers at Caltech recently determined that for every dollar spent in retrofitting soft-story structures, property owners could expect to save up to seven dollars, and that study didn’t factor in loss to contents, alternate living expenses or deaths and injuries – all of which would have significantly increased the cost-tobenefit ratios.
FEMA found similar cost benefits in a two-year analysis of seismic retrofit scenarios applied to a
NORTH COUNTY LUNCH & LEARN
August 21, 2024 | 11:30 AM - 2:00 PM | Shadowridge Golf Course
Join us for our upcoming North County Lunch and Learn focused on risk management for rental housing providers
This informative session led by Jessica Knowles, R A Snyder Properties, Inc , will provide valuable insights and practical strategies to effectively manage and mitigate risks in your rental properties. There will be a short Q & A session at the end.
Jessica Knowles and guest speakers will present after lunch.
Pre-registration is required for this event, so sign up today to reserve your seat.
Registration:
Owner and Property Management Members:
$45 Individual Tickets or $80 for Two
Non-Members:
$65 Individual Tickets
Thank You to Our Associationwide Sponsors
BECOME A SPONSOR TO CONNECT WITH OWNERS & PROPERTY MANAGERS
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variety of building types in locations throughout the United States. The study found high benefit-to-cost ratios for California, including a scenario of a tilt-up warehouse building in Hayward . “In this example,” the study found, “the benefit/cost ratio is about 10 without the value of life and about 12 with the value of life. The benefit/cost analysis suggests that retrofit is strongly justified economically, even without including the value of life .” That return on investment was even higher for tilt-ups with a higher occupancy, such as light industry, the study found .
Researchers at Caltech determined that seismic retrofits are cost-effective when expected annualized loss would be reduced by 50 percent or more at a cost that would equal no more than 10 percent of the replacement cost of a building
Apart from the structural losses associated with earthquake damage, these other factors are important points to consider when weighing the cost benefits of a seismic retrofit:
• Liability associated with damage, death and injury
• Loss of income when a building gets redtagged
• Financial obligations tied to the original mortgage loan
• Demolition costs including abatement of asbestos and lead
• Reconstruction costs and cost overruns
EDUCATE YOURSELF ABOUT YOUR BUILDING RISKS
A scene in the movie “L .A . Story” shows Steve Martin dining with friends when a massive earthquake starts shaking wildly . Glasses rattle, tables scoot across the floor. An ice sculpture swan takes a nose dive into a platter of fruit Yet everyone continues their conversation unfazed – as if nothing is happening. It’s all business as usual
Clearly, Californians live in earthquake denial . We laugh it off, ignore its ever-present threat to our lives and our livelihood . But this is an issue that should be in the forefront of everyone’s minds Are we prepared at home, in our place of business, in our hospitals, schools and community? How quickly could we recover from that looming 7 5-magnitude earthquake, and how severely would economic disaster in California ripple throughout the rest of the nation?
Retrofitting your building to protect against damages in a quake not only helps to guard against death, injury or damage – and the potential for subsequent liability or loss of income – it helps to safeguard the value of your investment .
How many of us insist that our children wear seatbelts while driving? Why wouldn’t we want the same safety precautions for our buildings?
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
Financial advisory You Should Take Your Social Security Distributions as Soon as You Can
BY CHRISTOPHER MILLER, MBA SPECIALIZED WEALTH MANAGEMENT
Ireceived my Social Security Statement today and learned that I am eligible to start receiving monthly social security checks at age 62 If I wait until age 70 to start getting checks, however, my checks will be 79% larger
As an investment advisor, I am well aware of the first law of the time value of money: Cash flows coming sooner are more valuable than those coming later. Also, I have been subsidizing retirees all my life with social security withdrawals from my earnings and am eager to start seeing some benefit for myself
I have already decided that I’m taking the money as soon as I can . Is this a wise financial decision? I created an Excel spreadsheet, did some research, and did some calculations to evaluate the situation . This month, we will review my findings .
WHAT KIND OF BENEFIT CAN I EXPECT?
According to the Social Security Administration, in December of 2023, the average monthly check for a benefit recipient was $1,767 That’s not enough to live on here in Southern California, but it is certainly a nice boost: everyone would like an extra $1,700 per month .
For my calculations, I’ve chosen a sample investor who was born in 1964 and is 60 years old . If he
begins taking his social security benefits in at 62 in 2026, he will receive $1,400 monthly . If he waits until age 63, he’ll receive $1,500 Receiving nothing until 64 will get him $1,600, $1,720 at 65 and $1,850 at 66 The Social Security Administration calls 67 “full retirement age,” and he would start at $2,000 monthly then As an incentive to wait longer, our investor is offered $2,120 at 68, $2,280 at 69, or $2,470 at age 70 – the age when he MUST begin taking distributions.
Remember that an extra $1,000 per month sounds nice, but that you’ll need to give up 8 years of monthly checks to get there . During those 8 years, your monthly checks will increase annually as well .
ANNUAL CPI INCREASES FOR SOCIAL SECURITY BENEFITS
Back in 1975, Social Security began applying annual cost-of-living (or COLA) adjustments to benefit checks . These COLA adjustments aren’t as large as I expected: Since 1975, they have averaged 3 . 8% annually . The average increase between 2000 and 2020 was 2 .1%, and 2021 to 2023 saw a 5 9% average For my calculations, I have used the historical average of 3 .8% .
These annual increases are very important in our calculations: If I start taking my distributions at 62,
Please turn to page 38
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.
my amount will very likely rise every year . This will decrease any benefit we see from waiting longer for a bigger payout For example: payments beginning at $1,400 at age 62, escalated by 3 .8% annually, will become $1,566 by age 65 If our investor waited until then to begin payments, he’d be receiving $1,720 per month Was the three-year wait worth the extra $154 / mo. of income? I don’t think so – particularly as he has missed out on $52,300 of income in the three years he was waiting
The opportunity cost of waiting for higher distributions is a lot of missed income . If our investor waits until age 70, he can collect $2,470 per month: over $1,000 per month more than if he began 8 years prior The 8 years of income he has missed, however, would total $153,700!
THE BREAK EVEN POINTS FROM WAITING MAY BE LATER
THAN YOU THINK
A retiree waiting until 70 for that higher payment may do so because he feels that he’ll earn more income by living longer and collecting the higher amount . This could be true, but he may find that it is taking longer than expected . If our senior delays receiving his benefits until age 70, he will reach the break even point of $680,000 total benefits during his 86th year . According to the Brookings Institute, college-educated Americans have a life expectancy of 83 years . I would argue that this applies to my readers, since the term “college-educated” is more a measure of wealth than a measure of time spent in classrooms . Therefore – age 86 is certainly a possibility for us. We did not, however, seek to “break even” as investors – so we wouldn’t want to on social security either . By age 95, our collections from 33 years of social security would total $1,129,110 if we began at age 62 and $1,276,960 at 70 A total of $147,000 extra after 25 years ($5,880 per year) really isn’t a substantial amount .
WHAT IS THE NET PRESENT VALUE OF THESE CASH FLOWS?
My “you should take Social Security as soon as you can” closing argument hinges on the Net Present Value calculation . The New Present Value is a financial metric that allows us to value a series of cash flows by using a “discount rate ” The discount rate should be the long-term return that you expect on your investments I like to plan conservatively, so first I’ll run the numbers using an 8% return .
If our investor is 62 today, the Net Present Value of his distributions to 80 years old is $211,740 if he starts taking distributions today, $174,220 if he starts at 67 and $134,814 if he starts at age 70 . At age 90, the numbers are $273,382, $238,795 and $215,514 At 100, they are $314,841, $291,580 and $269,789 .
The NPV Values are higher in each case if our investor begins his distributions at 62 . This tells us what I already suspected: a series of cash flows – even if it is a smaller amount - is more valuable if there are more cash flows and if they begin sooner .
If an investor gets 12% consistently from his investments, then a series of cash flows is worth even more to them the sooner it starts . At age 62, the cash flows to 80 years of age would be worth $156,561 if he starts taking distributions today, $117,056 if he starts at 67 and $82,734 if he starts at age 70 .
TAKE THE MONEY AS SOON AS YOU CAN!
In conclusion, the time value of money concept shows us that it is best to start receiving social security distributions as soon as you are eligible Why wait until you are 70 for an extra $580 per month? The government has been taking money from your paychecks and giving it directly to seniors for your entire life . You should start enjoying those benefits as soon as possible My office number is (877) 3131868 .
San Diego
THE BIG SWITCH
By Jon Coupal, Howard Jarvis Taxpayers Association
Proponents of the anti-Proposition 13 ballot measure Assembly Constitutional Amendment 1 (ACA1) are planning to amend the measure and replace it with another threat to taxpayers that only targets property owners
As currently submitted and approved for the ballot, ACA 1 repeals the two-thirds vote protection for both local tax increases and bonds in order to pay for “infrastructure,” a term so expansive that local governments would be able to raise taxes for almost any purpose with a vote of just 55% of the electorate . This would make it far too easy to raise local taxes that are currently subject to the higher threshold .
But the problem for supporters of ACA 1 has been the popularity of Proposition 13 . Since it was enacted in 1978, voters have continued to support the important two-thirds vote protection as evidenced by numerous polls over the years
Various iterations of ACA 1 have been introduced in the Legislature over the last two decades but last year was the first time that legislative leadership – including the bill’s author and chief cheerleader, Assembly member Cecilia Aguiar-Curry – was able to jam it through both houses with the requisite two-thirds vote of each house But a funny thing happened on the way to the ballot . Proponents of ACA 1 learned what taxpayer advocates
have been telling them for over forty years – that direct attacks on Proposition 13 would result in severe opposition at the ballot box . Their own polling indicated that ACA 1 would fail in a statewide vote
“Recent voter surveys have indicated a lack of support for the special taxes portion of the constitutional amendment,” according to agenda documents from a recent meeting of the Metropolitan Transportation Commission and Association of Bay Area Governments Joint Legislation Committee
Proponents of the anti-Proposition 13 ballot measure Assembly Constitutional Amendment 1 (ACA1) are planning to amend the measure and replace it with another threat to taxpayers that only targets property owners .
As currently submitted and approved for the ballot, ACA 1 repeals the two-thirds vote protection for both local tax increases and bonds in order to pay for “infrastructure,” a term so expansive that local governments would be able to raise taxes for almost any purpose with a vote of just 55% of the electorate This would make it far too easy to raise local taxes that are currently subject to the higher threshold
But the problem for supporters of ACA 1 has been the popularity of Proposition 13 Since it was enacted in
Continued from page 43
1978, voters have continued to support the important two-thirds vote protection as evidenced by numerous polls over the years
Various iterations of ACA 1 have been introduced in the Legislature over the last two decades but last year was the first time that legislative leadership – including the bill’s author and chief cheerleader, Assembly member Cecilia Aguiar-Curry – was able to jam it through both houses with the requisite two-thirds vote of each house
But a funny thing happened on the way to the ballot . Proponents of ACA 1 learned what taxpayer advocates have been telling them for over forty years – that direct attacks on Proposition 13 would result in severe opposition at the ballot box . Their own polling indicated that ACA 1 would fail in a statewide vote .
“Recent voter surveys have indicated a lack of support for the special taxes portion of the constitutional amendment,” according to agenda documents from a recent meeting of the Metropolitan Transportation
Commission and Association of Bay Area Governments Joint Legislation Committee .
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.”
Even if ACA 1 is amended to remove the provision related to special taxes, it remains an unacceptable threat to all property owners Here’s how: All those special interests who were counting on the passage of ACA 1 so they could more easily impose special taxes aren’t simply going to go away Rather, they will quickly begin to recast their tax hike proposals as local bonds, attempting to saddle local residents with 30 years of debt for their spending desires .
While anything can happen in the current chaotic political environment, all measures slated for the November ballot must be finalized by June 27th, just a few days away .
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.
Taxpayers can rest assured that the Howard Jarvis Taxpayers Association is following this very carefully and will keep our members and other supporters informed
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
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
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
Landlord Legal Questions &Answers
by Kimball, Tirey & St. John LLP
AQuestion: Are email communications between tenant and landlord admissible in court?
nswer: Yes, emails can be admitted into evidence (if all rules of evidence are met), but email should not be used to serve notices (other than as specifically allowed by law) . Email is not recognized as a valid form of service generally speaking
Question: When a month-to-month resident decides to vacate without any notice, do the owners have the right to charge for thirty days after the move-out to comply with their month-tomonth agreement?
Answer: Yes, you can charge up to the time the premises are relet or thirty days from the date of their departure, whichever occurs first, so long as you make diligent attempts to relet the property
Question: Our tenant gave a Thirty Day Notice of Termination, intending to move out on the 10th of next month Since the rent was due on the first of the month, can we require the tenant to have given thirty days’ notice on the first of the month?
Answer: Once you are on a month-to-month tenancy, either party can terminate it by serving a Thirty Day Notice at any time . They are, however, responsible for the rent up to the date the Thirty Day Notice expires, so they would owe pro rata rent for the following month . This would mean you could only accept 10 days of rent from next month
Question: I had to go through an eviction to regain possession of one of my rentals . I also received a judgment for the rent, court costs and my attorneys’ fees How can I collect on this judgment? Do I have to go back to court?
Answer: The law provides for a variety of ways to collect the judgment . Recording an abstract of judgment, wage garnishments, bank levies, attachment of personal property and judgment debtor examinations are formal ways to collect monetary judgments Receiving accurate information on the rental application allows optimal opportunity to collect .
Question: One of my tenants vacated the property and left his roommate behind Both signed the rental agreement and now the tenant who vacated is demanding his share of the security deposit be returned to him Is he right? What should I do?
Answer: You are not required to return or account for the use of the security deposit until you regain possession of the property after all of the tenants have vacated . California requires the deposit be accounted for in writing and sent to the last known address of the tenants no later than 21 days following the return of possession unless the lease requires an earlier time frame The tenant who vacated early should work out an arrangement with his former roommate You are under no obligation to account for the deposit .
AQuestion: A tenant has left a lot of personal property after vacating . How do I know the value of the items left behind?
nswer: You can call a third-party appraiser . Alternatively, you can research what comparable items sell for in the community . Research the replacement value, not the cost of purchasing a new item . Remember if the total value is over $700, the property should be sold at auction
Question: My company policy is to have the computer system print notices to pay rent or quit that just state who is to receive payment, but there is no blue ink signature Does this make them invalid?
Answer: California law requires that a person be named as agent for receiving payment in person on the notice, the address, telephone number, and hours/days of availability of this person be provided, but there is no requirement that this person sign the notice . However, it is a good idea that the notice be signed to give it the personal touch and show the tenant that the information has been reviewed and is accurate
Question: I have a resident that has not been paying for their parking space . I sent them several notices and letters Finally, I had the vehicle towed . I feel that I gave them ample warning . Should it have been handled differently?
Answer: It would depend on what the lease stated and what their rights were If it was made clear that the vehicle was no longer authorized to be on the property due to non-payment, you could utilize California Vehicle Code § 22658 which authorizes property owners and managers to remove unauthorized or abandoned vehicles from private property provided that specific conditions exist, and certain procedures are followed
Question: Can we insist that a tenant produce insurance showing that an ESA animal is covered on their policy if the animal happens to bite? Can this be a requirement for pets and ESA animals?
Answer: Generally, you can ask assistance animals to meet the same standards that you require for all animals on your properties, except you cannot require or demand they obtain insurance . If the animal’s behavior becomes problematic (e g , biting), the owner may be held liable to cover repair and damage costs . You might seek an agreement for insurance or other mitigating assurances, but this should be done with the guidance of a fair housing attorney
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
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 858 793 8899
F Fairgrove Property Management 714 541 0288
Five Peaks Property Management 619 814 7505
Flats LLC 248 860 8845
Foothills at Old Town | Sentinel Corp 951 .676 .7545
Unit #3 had been vacant for about 8 days. We were just finishing the “make over” process, ads were running, and we had begun accepting applications. While at the property, we happened to notice that someone was parking in the space intended for unit 3. It was highly probable that one of our tenants was using that space. As no current tenant was being inconvenienced at this time, we did not need to act in haste. We will resolve this, but we will do it thoughtfully.
We are in the customer-service business. Towing is one of the most AGGRESSIVE actions a property owner can take against a tenant. The tenant’s car may be his or her most valuable possession, and the means to their livelihood. Towing will necessarily cost the tenant personal time, aggravation, and financially. Remember that these are the people we also expect to pay us rent (in full, and on time) each month, so we want their “good will”. We want them to appreciate us. Towing could also result in damage to a car belonging to one of our tenants, potentially involving the owner in litigation. Towing should be considered as a “last resort”, to be used only when other reasonable steps have failed.
We do not tow unless adequate/appropriate signs have been posted. We do not tow unless the car is in clear violation of our parking rules. If we think that a car may have been abandoned by a prior tenant, we post the
vehicle with our intentions, attempt to notify the prior tenant, wait for 15 days (or until there is a replacement tenant) then have the car towed. Whenever we “post” a notice on a car, we take a picture of the posted note on the car, we take a picture of the car, and of the license plate. As such, we have dated photo-proof of our posting.
Unless we are ABSOLUTELY SURE who the car belongs to, and that specific tenant has been notified, we would send a courtesy letter to all tenants advising them of our plans to tow the car unless it is moved. If the vehicle still has not been moved after 5 days, we would tow if, in our judgement, towing is necessary. We try to be thoughtful before acting, to consider unintended consequences, and to remember that we are in a customer-service business.
Any owner we work for can have more strict rules, but we would be sure that that a reminder of such parking rules is delivered to all tenants before towing is considered.
Dear Readers: This article is the 248th 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
HandyTrac Systems 800 665 9994 JDS Security 619 781 8694
Signal Security .
SEISMIC RETROFIT
619 .363 .7233
Optimum Seismic 562 298 6395 SMART TECHNOLOGY
Ivy Energy 801 318 7803
Submetering / Billing Services
HELP STOP RENT CONTROL INITIATIVE
2024 BALLOT INITIATIVE WHAT IT DOES
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.
Proposition
33 Repeals the Costa-Hawkins Rental Housing Act and Expands Rent Control
PROPERTY OWNERS WHY IT MATTERS
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.
Contributions to the SCRHA Issues PAC (ID#1468498) will go towards the initiative fight. To make a contribution, please click here or scanthe 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.
DEDICATED FUNDS
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.
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VALUE
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The ultimate resource for all things related to rental housing.
ADVOCACY
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