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What is Proposition 33 by Jason Tuvia Pg. 16
About Earthquakes And Retrofits Dispelled by Ali Sahabi Pg. 30
www.sos.ca.gov/elections
October 21, 2024
Last day to register to vote for the General Election on November 5
All California active registered voters will receive a vote-by-mail ballot for the November 5, 2024, General Election
Your county elections office will begin mailing ballots by October 7, 2024
October 8, 2024
Ballot drop-off locations open.
Vote-by-mail ballots can be returned by mail, at a drop-off location, or your county elections office.
October 26, 2024
Vote centers open for early in-person voting in all Voter’s Choice Act counties.
November 5, 2024
Election Day! Vote-by-mail ballots must be postmarked on or before Election Day and received by November 12, 2024
SOCALRHA.ORG | 858.278.8070
Aiesha Blevins
2024 President Southern California Rental Housing Association
President’s Message: Election
Countdown is Underway
The countdown to the 2024 election is underway . If you haven’t already done so, now is the time to confirm your voter profile and ensure your address and information is current . Whether you need to register to vote or update your information, you can find statewide resources for voters at www.sos. ca .gov/electionsor by calling (800) 345-VOTE .
Key Dates for the 2024 General Election Include:
• 10/08 - Ballot Drop-Off Locations Open
• 10/21 - Last Day to Register to Vote in the General Election on 11/05
• 10/26 - Early, In-Person Voting Begins
• 11/05 - General Election
While every election is important, rental housing professionals must get out the vote to defeat Proposition 33 this year . Southern California Rental Housing Association has hosted numerous town halls to share the possible impacts of Proposition 33 for rental housing providers, and our communities as a whole We thank everyone who attended these events and are deeply grateful for all the guest speakers who generously shared their time and expertise with our members
If you missed the Town Hall on September 13, be sure to read the detailed recap on page 29 We were honored to have a strong lineup of speakers including Jordan Marks, San Diego County Assessor-RecorderClerk, Rich D’Ascoli, CEO of the Pacific Southwest Association of Realtors®, Lori Holt Pfeiler, CEO of the Building Industry Association of San Diego,
and Christine La Marca, CalRHA and SCRHA Past President, with moderator Molly Kirkland, SCRHA Director of Public Affairs.
Before you head to the polls, be sure to review the SCRHA endorsements so that you can vote for the candidates who best support the rental housing industry While we tirelessly work around the year to represent our members at all levels of government, this election is your opportunity to make your voice heard Your vote for candidates who support the industry sends a strong message that rental housing providers are essential to thriving communities .
Our investment and very livelihoods are on the line with this election, and we cannot afford to let Proposition 33 erase our Costa-Hawkins protections, opening the door to draconian rental housing measures enacted by local jurisdictions Thank you for your continued support, and we’ll see you at the polls!
Join us for a night of celebration and inspiration at the 30th Annual Mark of Excellence Awards Ceremony! Register early to secure your tickets at the best rate. You won't want to miss your chance to be part of an unforgettable evening honoring outstanding achievements of the rental housing industry.
Registration from September 16 - October 15
Individual: $250 Members | $225 Non-Members
Show Your Support
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
EVENT SPONSORS
Diamond Sponsorship
Table of 10: $2,500 Members | $2,750 Non-Members ASSOCIATIONWIDE SPONSORS
$8,500 SCRHA Members | $10,500 Non-Members
One Table of 10
Two Reps in the Awards Presentation Script
Early Access to SCRHA Room Block
Complimentary Group Photo
Ruby Sponsorship
$6,500 SCRHA Members | $7,500 Non-Members
Six (6) Complimentary Tickets
Special Recognition at No-Host Bars
Sapphire Sponsorship
$5,500 SCRHA Members | $6,500 Non-Members
Four (4) Complimentary Tickets
Emerald Sponsorship
$3,250 SCRHA Members | $4,000 Non-Members
Three (3) Complimentary Tickets
Crystal Sponsorship
$1,500 SCRHA Members | $2,500 Non-Members
Two (2) Complimentary Tickets
Pearl Sponsorship
$1,000 SCRHA Members | $1,500 Non-Members
Two (2) Complimentary Tickets
Alan Pentico, CAE
Executive Director
Southern California Rental Housing Association
Executive Director’s Message: Reflecting on a Successful 2024
It’s hard to believe that we are in the fourth quarter of 2024 and wrapping up an eventful year at the Association . Now is the time of year when we reflect on our success and plan for the next year . As I prepare to give my annual report at the Meeting of the Membership on October 16, I’m very proud of everything that SCRHA and our members have accomplished this year .
Going into this year, we knew that it would be filled with challenges posed by local efforts to pass and/or expand Tenant Protection Ordinances (TPO) and the statewide effort to pass Proposition 33, which would open the door to expanded rent control throughout the state, and not to mention the countless bills that moved through the Legislature this year .
Our advocates and lobbyists stayed busy to make sure that your voice, the voice of the rental housing community, was heard at all levels of the government These efforts were often successful thanks to the swift action of our members, who would take action when alerts were shared Thank you to everyone who took the time to respond to an action alert, attend a meeting, or contact your representatives to share your concerns and your perspective as a housing provider in Southern California .
Even though the Legislative session has ended and the election is less than a month away, we’re not slowing down at SCRHA If you haven’t made plans to join us on October 16, I hope you can join us for the annual Meeting of the Membership During the meeting, members will vote on the 2025 Slate of Officers and a detailed report of the state of the Association . Following the meeting, we’ll have a luncheon where attendees will hear the latest on Proposition 33 and the fight against the spread of Rent Control from
SCRHA’s Director of Public Affairs, Molly Kirkland, as well as a “State of Property Insurance” from Cameron Stewart of Crest Insurance Group, who will share insights on the insurance market and what steps you can take now to protect your property .
BROKER PROGRAM
Helping a client close on their first rental property?
Get them started out right with a gift membership to the Southern California Rental Housing Association.
CALL 858.278.8070 or EMAIL MEMBERSHIP@ SOCALRHA.ORG
Support leaders in rental housing by contributing to our Rental Housing Scholarship program.
Your donation to the Rental Housing Scholarship is an investment in the future of our industry.
DONATE AT SOCALRHA.ORG SCHOLARSHIP
CE LE B R ATIN G
Entrada | Greystar
WASH Multifamily Laundry Systems
Yvonne Coover-Stone Company
Union & Juniper | R A Snyder
Sun An Sea Property Mgmt .
El Pedregal | Cirrus
Alliance Investment Corp .
Limoncello
Hitching Post Motels, Inc.
Edward R Mateer Company
Judith Folsom Company
Whalen Properties
Chris Espineli Company
Vernon and Judith Au
Jack Zolezzi Trust
Laura Waligorski Company
GTF Properties
CULTR 1, LP
Donna Webber Company
Professional Real Estate Management
John Belanich Company
Gary Gentile Company
Josie Rhodes Company
Creaser & Warwick, Inc.
DNC Limited Partnership
R A Snyder Properties, Inc
40th Street | R A Snyder Properties
The Kevane Company, Inc.
4110-4114 1/2 Arizona Street| R A Snyder Properties
Elinor van den Akker Company
4768 Arizona| R A Snyder Properties, Inc
RG Investment Real Estate Services Inc.
7th Avenue| R A Snyder Properties, Inc
8th Avenue| Spanish Court| R A Snyder Properties
Caesar Oriol Company
Alabama Street| R . A . Snyder Properties Inc .
Fred and Shirley Salzer
Apache Village | R .A .Snyder Properties
Fleetwood Properties
Balboa Plaza | R .A . Snyder Properties
Rolf Steeve Company
Campus Avenue| R A Snyder Properties, Inc
Canyon Breeze| R A Snyder Properties, Inc
Kenneth Rundlett Company
Capri Villa | R A Snyder Properties, Inc
Casa Escondida| R A Snyder Properties, Inc
Laurence and Carolyn Kaiser
Chateau Vue| R A Snyder Properties, Inc
Errol Tonsky Company
Cleveland House| R A Snyder Properties, Inc
Gregory Robinson Company
Colonial House| R . A . Snyder Properties, Inc .
Richard Hancock Company
Hamilton Street (CSP)| R .A . Snyder Properties Inc .
Hilltop Terrace| R A Snyder Properties, Inc
Sierra Mar Properties LLC - Paul Hasley
Mary Ann Tarantino Company
Lincoln Heights| R A Snyder Properties, Inc
Terry Moore, CCIM, Inc.
Linda Vista Village| R A Snyder Properties, Inc
London Terrace| R A Snyder Properties, Inc
Monterey Apartments| R A Snyder Properties, Inc
Jerry Conway Company
IHA Partners Inc.
Oak Creek| R A Snyder Properties, Inc
Jeffrey Malik Company
Oliver I |R A Snyder Properties, Inc
Oliver II |R . A . Snyder Properties, Inc .
G. Beit-Ishoo / SeaDate
Park Blvd & Polk Ave| R . A . Snyder Properties, Inc .
Pennsylvania Avenue| R A Snyder Properties, Inc
George and Celida Haddad
Shadow Glen| R A Snyder Properties, Inc
Al Smithson Company
Longley Family Trust - Nancy Longley Trustee
Summit Park| R A Snyder Properties, Inc
Taft Avenue | R A Snyder Properties
Waltwood Properties
The Village at Rancho San Diego | R A Snyder Properties, Inc
Marilynn Nemeroff Company
Nancy Mullins Company
NLJ, LLC
Brothers II
Utah Street Apartments | R A Snyder Properties
Wilma H. Healey Company
T1 PropertiesE
Vista Del Mar | R A Snyder Properties
West Street | R A Snyder Properties
Legar Management
Windsong Apartments | R A Snyder Properties
M. C. Contracting Service
Aspen Park | R A Snyder
Don Riggs Company
Josephine Cree Company
600 Front Investments, L . P.
RJW Properties, Inc.
Judy Simeroth Company
Laura Sperry Company
ABB Management
Wakeland Housing & Development
Wintercrest Village
Evelyn Shea Company
ATI Restoration, LLC
David Olson Company
Susan Tucker Company
SEA Property Management Co AMO
Muraoka Enterprises Inc.
Kennedy Electric
People Helping Others Prop. Mgmt.
Richard Schneider Company
Law Offices of Andrew C. Laubach
Megan Court Apartments
Walz Properties| Fortuna Investment Group
Onyx Property Management
J & C Carpet Company
Rodgers Professional Service
Mark Marshall Company
Lee Carver Company
Elizabeth Dammassa-Uglik Company
Debra E Adams
REC Properties| Peasquitos Point Apts.
Hammett Properties
Dennis & Tina Daneri
Robert Curtis Company
Mira Bella Apartments | Simpson Property Group
Albert C . Myrick, Jr .
Araz Yacoubian Company
Betty Star Company
Sherry Bird Company
Keith Mulfinger Company
Francisco Real Company
Sciuto Properties
Barbara Immonen Company
Sofi Poway | Cushman & Wakefield
Tom Brady Company
Kenneth W Ralph Company
Axiom Real Estate
Lagarda Enterprises, LLC
Barry Treahy Company
Barry S Spooner Company
Dennis and Marian Pierce
Cleanology Housekeeping Personnel Service
Jesus and Yolanda Arroyo
McMillin Contracting Services
Todd A . Brisco & Associates, APC
Betty Bark Company
Delta Southern Properties Corp
David M. Pierce
Vivian Rich Company
Tamra Fuller Fountas
Green Acre Properties, LLC
Kathryn Nielsen Company
Buchanan Property Management Corp.
Vincent Gonzalez Company
Brian Steer Company
Lee Cooley Company
Eagle Property Management
Gisella Falossi
Arbors at California Oaks Apartment Homes
LICENSE #570472
Congratulations to all of our 2024 Mark of Excellence nominees. You are the true “Mark of Excellence” in our industry, and we are proud to recognize your accomplishments.
Assistant Property Manager of the Year 1-100 Units
Bella Vista Apartments, Sunrise Management Company
Cameron’s Mobile Estates, Cameron Brothers Company
LLC
Casoleil Living, Greystar
Circa 37, Sudberry Properties, Inc.
Club River Run, H.G. Fenton Company
El Dorado Hills, H.G. Fenton Company
Pacific Ridge Apartments, American Assets Trust, Inc.
Portofino, H.G. Fenton Company
VICI, H.G. Fenton Company
Repositioned Property of the Year 1-300 Units
Ascend 2300, Greystar
Cedar Shores, Sunrise Management Company AMO
Imperial Beach Gardens, American Assets Trust, Inc.
Point Loma Palms, Sunrise Management Company AMO
Softwind Point Apartments, Greystar
Property Management Company of the Year
American Assets Trust, Inc.
Cameron Brothers Company LLC
H.G. Fenton Company
Sudberry Properties, Inc.
Sunrise Management Company AMO
Urban Coast Properties, Inc.
PM - 9:30 PM
AMO
Welcome New Members
INDEPENDENT OWNERS
Daniel
Darius Ghandhy Company
Elizabeth Kemp
Kevin and Olga Koeppen
The Prime Company
Windsor at Aviara | Windsor Communities
SUPPLIERS
McCarthy Transfer & Storage TASORO
TRUBuild Solutions
WHAT IS PROPOSITION 33: JUSTICE FOR RENTERS ACT??
by Jason Tuvia, Senior Managing Director Investments at Marcus & Millichap
FOR THE THIRD TIME IN THE PAST DECADE, CALIFORNIA VOTERS WILL VOTE DURING THE GENERAL ELECTION ON A REPEAL OF COSTAHAWKINS, TRIGGERING VACANCY CONTROL ON ALL APARTMENTS IN SELECT CITIES SUCH AS LOS ANGELES.
Proposition 33, the so-called “Justice for Renters Act” is just 23 words: “The state may not limit the right of any city, county, or city and county to maintain, enact or expand residential rent control .” It would remove California’s statewide rent control ban and give local communities the right to stabilize rents and make apartments more affordable for low-income and middleincome renters . ”
and newly constructed rental properties from rent control and allows landlords to charge market rate rents for units upon tenant turnover (known as “vacancy de-control”) .
Achieving market rate rent upon a tenant vacancy is absolutely essential to encourage investment in housing, to allow rental property owners to keep pace with ever-increasing costs, and to maintain a balance in the housing market . The “Justice for Renters Act” threatens to introduce vacancy control, thereby capping rents after a tenant vacates This would lead to a decrease in property values and would disincentivize future investment in property improvements and maintenance, and ultimately reduce the available supply of rental housing as investors can no longer keep up with rising costs. In effect, Proposition 33 is a “bankruptcy bill” that would force many rental property owners out of business Ironically, Proposition 33, does not require or guarantee that even one new unit of housing will be built upon it’s passage
CASE IN POINT: NEW YORK CITY
Housing Shortage Worse PROP VOTE NO ON
This very vague language put together by the AIDS Healthcare Foundation which owns very poorly run apartments with countless housing violations in Los Angeles . The inaptly named, proposed “Justice for Renters Act” will be on the November 2024 ballot, and if passed, it would overturn the Costa-Hawkins Rental Housing Act of 1995 (“Costa Hawkins”), an important state law that exempts certain types of properties from local rent control and prevents local governments from imposing price controls on vacant units
Flawed Initiative That Will Make
In California, Proposition 33 has sparked significant concern among owners of rental housing throughout the state . Originally enacted in 1995, Costa-Hawkins is currently the standard across California’s rental housing policy . It exempts single-family, condominium
New York City works well as a case study Vacancy control was passed in 2019, capping allowable rental rates upon tenant turnover to 20% of the previous tenant’s rent This is now widely acknowledged as the main cause for current reduction in available and quality of the city’s housing supply .
Five years later New York City has a vacancy rate of 1 4%, and estimated 40,000 units deliberately
Ad paid for by Issues PAC of Apar tmen
Continued from page 18
vacant as the landlord is unable to earn a fair return on their investment in renovating those vacant units . One notable Multi-housing News article from 2020 discussed the consequences of vacancy control, demonstrating that it alters the investment landscape by shifting investor sentiment from property appreciation to in-place cash flow, causing a significant drop in property prices as the valueadd component diminishes . This shift would have a profound impact on California’s housing market, mirroring the consequences faced in New York In New York City, rental property values have declined as much as approximately 40% as a direct result of vacancy controls
The difference from the last time the vacancy control vote was on the ballot in 2018 (Proposition 10) and 2020 (Proposition 21) has been a significant voter shift in California to the far left focusing on social justice issues Liberal cities in California such as Los Angeles, Santa Monica, and West Hollywood have already decided they will institute vacancy control should proposition 33 pass this November
Los Angeles apartment buildings historically have sold at cap rates less than the rest of the country as investors priced in rental “upside potential” and willingness to take a lower initial return If proposition 33 passes, cap rates will go up significantly and a deterioration in value in the 15% - 35% range depending on how close the individual property rents are to market rents . Lenders will also pull back lending throughout the state as bank owned foreclosures will increase
NOW, LET’S TAKE LOS ANGELES AS AN EXAMPLE
Here is an example - Assume a 10-unit apartment building in Los Angeles:
• Rents: $1,000 on average
• Net Operating Income: $72,000
• Estimated Value: $1,371,000 (Based on a 5.25% cap rate)
Should Proposition 33 pass this November, rental upside would be meaningless so the cap rate would need to be above the cost of debt and well above treasury yields to justify risk, so let’s call it a 6 75% cap rate . The value overnight would change to
$1,066,667. The building value just dropped 22%. The main issue is with “flat top-level” revenue of rents along with increased expenses through higher utilities costs, plus doubling or tripling of insurance that continues to lower net operating income, is that this will force some owners to sell at a large loss .
The sad part of a Costa-Hawkins repeal is no one really benefits. For example, if a tenant moves out of an apartment rented for $800, the new allowable rent may be $875. However that rental unit needs to be fully renovated and may cost at a minimum $30,000. Obviously, no landlord will fork over $30,000 to earn a miniscule $900 increase in annual rent. The landlord, like many landlords in New York City, will keep that unit vacant because they just cannot afford to renovate the very dated unit . This will mean the housing stock will decrease, causing market rents for units that don’t fall under rent control to skyrocket and, therefore, hurting not only tenants that need affordable housing but also the smaller landlord that cannot afford to keep the apartment building since they are not earning a return on their investment and may even be operating at a loss!
CONCLUDING THOUGHTS
The long-term effects on Proposition 33 are quite obvious for anyone who has studied economics Institutional owners will “redline” Los Angeles and other liberal cities in California that enact vacancy control which will create less new units Units will deliberately be held vacant after long term renters vacate creating an even smaller housing stock when we desperately need many more units throughout Los Angeles and the state .
Please contribute to the opposition campaign against Proposition 33 at socalrha .info/scrhaissuespac . You can also mail a check payable to the SCRHA Issues PAC at Southern California Rental Housing Association, 9655 Granite Ridge Drive, Suite 200, San Diego, CA 92123
California. He has received multiple awards at the firm including the National Achievement Award (NAA), which is awarded to the top agents in the firm. Mr. Tuvia has closed over $1 billion in commercial real estate sales over his career. He graduated from California State University at Northridge with dual degrees in Finance and Real Estate. For more information, contact Jason at (818) 212-2735 or jason. tuvia@marcusmillichap.com
Jason Tuvia is Senior Managing Director Investments at Marcus & Millichap in Encino,
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SCRHA Membership gives you access to a comprehensive resource hub so you can confidently face regulatory challenges and operational issues with expert guidance.
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LANDLORDS STRUGGLE TO KEEP UP WITH CHANGING CALIFORNIA RULES
by Alan Pentico, CAE
Ican’t help but laugh when I see videos and memes about “getting rich with real estate ”
Whether it’s on Instagram, TikTok or X, it’s a common topic: How homeowners can supposedly make easy money by renting out an accessory dwelling ynit, one half of a duplex, a room or even a garage .
I’ve even heard rentals described as a “passive” investment — meaning there’s not much work involved
This is 100% wrong
Let’s get one thing straight: managing rental properties requires work, whether you own just one or two properties or hundreds . Landscaping the grounds and maintaining buildings are just a few components of the job . The biggest challenge, though, is compliance with ever-changing rules — and in California, we have many laws
I have some news for anyone who plans to rent out a home in California: If you are not actively engaged and following the recent legislation, you are probably breaking the law
That’s because the rules and laws are changing rapidly As one example, if you have a rental application form you used last year, it might be outdated by now due to recent laws at the state and local level
In recent years, because of an inadequate supply of homes, the rental market has become more competitive — a significant challenge for Californians. As living costs soar, legislative bodies are stepping forward with laws aimed at regulating the rental process, preventing tenant displacement, and ensuring healthier living conditions .
These well-intentioned legislative efforts are changing the landscape not just for renters but also for landlords, who play a vital role as housing providers within the community .
Landlords are working hard to adapt and comply, but especially for smaller property owners, it’s not an easy task .
Here’s one example . A local property manager recently took over management of a San Diego rental home property Once she received copies of the leases and other paperwork, the manager discovered a big problem — the property was in violation of San Diego’s Tenant Protection Ordinance that went into effect in 2023. The tenants had not been served the mandatory notification and 16-page Tenant Protection Guide required by the city — placing the owner in legal jeopardy
Cities like San Diego and Chula Vista recently updated their Tenant Protection Ordinances to align with a new California State Law, Senate Bill 657
This law, which took effect April 1, aims to eliminate supposed “loopholes” that previously allowed for tenant evictions for major renovations or for a family member to move into the property .
Landlords are now tasked with providing detailed notices that include specific information about the remodeling work, permits obtained, and the tenant’s right to reoccupy the unit . These changes demand a greater level of transparency and accountability from landlords — and a whole set of new forms and checklists .
Again, these rules apply to everyone, except for specific exceptions. If you’re renting out a home, they probably apply to you
And that’s not all More new rules are ahead
The introduction of a California state law limiting security deposits to one month’s rent, effective July 1, is another change .
Similarly, new legislation is being proposed that would force landlords to allow pets
With all these rules affecting landlords, it’s easy to
forget that tenants have responsibilities, too . Tenants should familiarize themselves with their lease rules about smoking, pets, noise and other rules specific to the property . They have a responsibility to notify landlords of items needing repair and seek permission to make significant changes to the property.
Landlords, as integral members of the housing community, are engaging with these legislative changes constructively They are committed to following the law and upholding the rights and wellbeing of their tenants .
As these laws and ordinances come into effect, landlords are focused on continuing to provide safe, affordable, and healthy housing options for the community .
For everyone navigating the rental market, staying informed and prepared for these changes is not just beneficial — it’s crucial for building a thriving, supportive community .
And that takes work .
Alan Pentico, CAE, is the executive director of the Southern California Rental Housing Association.
September 12, 2024 | 10:30 AM - 6:00 PM Coronado Municipal
hanks to everyone who participated in the 2024 Golf Classic on September 12 at Coronado Municipal Golf Course.
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! 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 Register A Foursome
#1 Low Gross: Kevin Fay, Jay Zunich, Greg Gorsuch, Brian Maguire
Player ticket includes lunch voucher, sleeve of balls, free range balls, and opportunity drawing entries! Rental clubs are offered subject to availability
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
October 16
Meeting of the Membership
Hilton Garden Inn Mission Valley
10:00A - 1:00P
At the Meeting of the Membership, attendees will vote on the incoming 2025 Slate of Officers. The meeting is free to all SCRHA members, and there is one vote per company Immediately following the meeting, SCRHA will host a lively discussion on the fight to defeat Proposition 33 and the state of property insurance in California There is a fee for this portion of the event, which includes lunch
October 17
Apartment Perspective: Finding Opportunity During a Market Correction
Marriott Mission Valley
Is the current market correction in the real estate sector an obstacle—or could it be your next big opportunity? During the Apartment Perspective, our panel will explore how these market changes, coupled with evolving tenant laws and regulatory pressures, are reshaping the landscape
October 22
Share your experience, knowledge, and best practices with colleagues in the rental housing industry This session is free to all independent owner members and will focus on rental forms available in the SCRHA library of forms . 2:30P - 3:30P
October 23
Independent Rental Owner Council (IROC)
NextGen Bowling Tournament
Tavern + Bowl East Village
Join the SCRHA NextGen Committee, for a night of friendly competition at our Bowling Tournament! Network with on-site colleagues and see if your team has what it takes to strike big Register today, lanes will fill up quickly! 4:30P - 6:30P
ICON KEY
November 1
Mark of Excellence Awards Ceremony
Sycuan Casino Resort
Join us for a night of celebration and inspiration at the 30th Annual Mark of Excellence Awards Ceremony! Register early to secure your tickets at the best rate . You won’t want to miss your chance to be part of an unforgettable evening honoring outstanding achievements of the rental housing industry on the fun, and register early for the best rate!
11/19: Rental Marketing Workshop: Creating a Listing That Works
ICON KEY
RUBS CAN HELP YOU FIND SAVINGS... IN THE TRASH!
Contributed by the Livable Content Team
Most apartment communities aren’t seeing the potential savings right in their own backyard . One of the ways apartment housing providers choose to manage their utility costs is through a Ratio Utility Billing System (RUBS) RUBS is a system that allows housing providers to share costs with residents by allocating billing amounts based on unit occupancy, square footage, or a similar metric . By dividing the cost between owner and residents, housing providers can increase their net operating income and encourage saving resources .
Many housing providers know that RUBS can be used with utilities such as water, sewage, electricity, gas and trash to recover costs and increase net operating income . It is commonly understood that trash utility costs include the trash hauler fees, often provided by the local municipality . But many professional property management teams are aware there is much more to managing trash than
simply hauling it away . Trash management includes the extras that keep your community looking (and smelling) its absolute best:
• Large item removals
• Cleaning and tidying of trash and recycling areas
• Doorstep valet pick-up
• Pressure washing of trash and recycling areas
• Odor and fly control
The little-known secret of RUBS savings is that these trash management services are also considered utilities and can therefore be shared with residents as utility costs . By incorporating other trash management costs, such as tidying, bulky item removal, valet pick-up, and more in RUBS, housing providers can minimize their utility costs as operating expenses for their multifamily properties even further In other words, there is money to be found in the trash .
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.
Strategic Sanitation Services, Inc is a premium trash management provider to Southern California apartment communities whose service fees can be distributed using a RUBS model . Strategic’s president Kenneth Reyes commented, “The combination of Strategic’s trash management solution and a Livable’s bill-back service creates an opportunity for housing providers to improve the curb appeal of their communities and their operating profits at the same time ” RUBS with trash management has the potential for significant savings
As an experiment in the relationship between RUBS and net operating savings, Strategic partnered with Multifamily Utility Service Providers (MUMSPs) and management companies to conduct an analysis of the annual Profit and Loss statements for a random Southern California multifamily portfolio
They Want to See Diversity and Inclusion
This highly educated, highly diverse generation is craving a passion and dedication to diversity and inclusion from their employers. As a result, “86% of
Gen Z job seekers cite a company’s commitment to diversity as an important factor in deciding whether or not to accept an offer.” Here it is very important for a company to talk the talk and walk the walk. Diversity and inclusion cannot just be a phrase in your company’s mission statement or a committee that meets once a quarter. This dedication needs to be seen in initiatives like asking one’s pronoun preference, adequate accommodations for those who are differently-abled, policies to ensure fair and equal pay, etc.
They
The results revealed an average annual utility cost of $1,054 per unit. However, Strategic found that only 44% of this cost was being recovered through RUBS . Livable estimates that most communities can recover 90% of utility costs using RUBS . For this portfolio, a 90% recovery rate would mean recovering additional $491 per unit using a RUBS strategy. Combining the per unit utility cost with a 90% recovery rate at a community of 150 units results in a potential net
operating increase of $73,650 annually. This analysis presents a significant revenue opportunity for housing providers, suggesting that tens of thousands of dollars can be saved simply by using RUBS to its full potential while also boosting rental prices and desirability of the community
feel if it’s a right fit, the offer should be made. “Nearly one in five Gen Zers expect a job offer one week from the initial phone screen. The majority expect an offer within two weeks.” Whether this expectation is realistic or not, companies that make an actionable change to speed up their hiring process will win top Gen Z talent.
In short, by utilizing RUBS to share the costs of comprehensive trash management and other utilities with residents, housing providers have an opportunity to significantly increase their savings and help curb excess utility usage . What most management companies don’t know? These savings just might be found in the trash .
*Statistics pulled from Yello
What are you waiting for? Sign up with Livable today and start recovering rising utility costs including water, trash and sewer Want to find out how much you can save? Visit livable .com/apn to book a call with a member of our team before signing up!
Want an Offer, and They Want it NOW
Standard HR procedures make it difficult to establish a hiring committee and follow the correct protocol when extending an offer. Gen Z wants no part of that. They
Livable is dedicated to conserving water and other natural resources while helping independent rental owners get more from their investments To learn more about Livable’s innovative cost recovery solutions and educational initiatives for residents, visit livable .com/apn .
Chula
LEGISLATIVE REGIONALUPDATE
Vista
Council Hears Report on TPO, Asks City Staff to Consult Industry on Hardships
On Tuesday, September 10, the Chula Vista City Council received a report on the Residential Tenant Protection Ordinance (TPO), originally approved in late 2022 . The update from city staff provided the numbers of no-fault termination notices received by the city and shared that no fines have been issued to property owners to date SCRHA was well-represented by Board member
cost at least $40/sq ft in order to meet the definition. This formula limits the ability of housing providers to improve older housing stock Mr Sutton also pointed to the relocation requirement and the required use of the HUD Small Area Fair Market Rent when providing relocation payments versus contract rent He provided councilmembers with a spreadsheet for an older 6-unit rental property in need of substantial remodel which highlighted the massive cost savings that could
MYTHS ABOUT EARTHQUAKES AND RETROFITS DISPELLED
by Ali Sahabi, Optimum Seismic
In 2019, California saw a dramatic rise in homelessness, with over 21,300 additional people living without shelter—a 16 4% increase, surpassing the combined total of all other states, according to the U S Department of Housing and Urban Development . By January 2020, this number had climbed another 7%, bringing the total homeless population to 161,000 .
Think of how those numbers would grow if a major earthquake struck the area . Estimates are up to 36,000 households would be displaced The impacts could be devastating, especially given many of our region’s most vulnerable structures are also home to our most at-risk populations .
Arizona in 2018 conducted a full-scale earthquake drill to deal with an anticipated influx of 400,000 Southern California evacuees going there to seek shelter following massive earthquake devastation . The reason for this anticipated wave of nearly a half million refugees is simple . The majority of buildings identified as at risk of failure in an earthquake are older, more affordable apartments, as well as commercial buildings that house a wide variety of businesses providing jobs .
The loss of these structures would bring severe economic disruption with many thousands left without a roof over their heads or a job to provide for their families .
It’s a dire situation, particularly in more densely populated areas, the Association of Bay Area Governments determined
If many of a region’s affordable housing units are lost in an earthquake, “a constrained market may drive up the cost of housing even further . Loss or damage of housing that results in increased costs… will likely increase the number of permanently displaced Bay Area residents ”
SOCIO-ECONOMIC IMBALANCE
When it comes to earthquakes, older structures make up most of California’s dangerous building stock Much of that building supply is used for housing and lowerwage commercial operations such as manufacturing, logistics and service-related industries
These structures, because of their age, are more affordable to rent. But many apartment buildings constructed in the mid-1970s or earlier – are typically soft-story apartments built over open parking areas These buildings – constructed under outdated building
codes — frequently have structural deficiencies putting them at risk in a major earthquake
That puts lower-income residents – seniors, working families and minorities — living in these structures at greater risk of death and injuries in a quake .
It also increases the risk of these vulnerable populations being left homeless in a disaster without the resources necessary to recover quickly from the loss of their homes .
Should a major earthquake strike again in the Long Beach area as it did in 1933 – and we all know that will happen someday – many of these structures could be lost or seriously damaged . If these buildings are left as they stand now without being seismically retrofitted to withstand earthquakes, we could see serious economic loss in the Long Beach area as potentially
thousands of people could be left without a roof over their heads or a job to provide for their families Would they be forced to leave the area, to double-up with extended family or friends, live in transitional housing, or find a place somewhere on the streets? Time will tell .
Building safety benefits everyone and should not be limited to those who can most easily afford it. I encourage local leaders to seek out options to help owners make their buildings safer in order to protect apartments and local businesses before the next major earthquake strikes .
The Optimum Seismic team has the technical knowledge and professional experience necessary to do your balcony inspection or earthquake retrofit right. Visit optimumseismic .com or call 833-978-7664 to arrange a complimentary assessment of your building
The Optimum Seismic team has been making California cities safer since 1984 by providing full-service earthquake engineering, steel fabrication and construction services for multifamily residential, commercial and industrial buildings With more than 4,000 earthquake retrofit and renovation projects completed, Optimum Seismic’s work includes softstory multifamily apartments, tilt-up, non-ductile concrete, steel moment frame and unreinforced masonry (URM) buildings To arrange a complimentary assessment of your building’s earthquake resilience, contact Optimum Seismic at (833) 978-7664 or visit optimumseismic com
Did you know that Proposition 33 eliminates vacancy decontrol?
DECONTROL vs. CONTROL Vacancy
San Diego County
Vacancy decontrol allows property owners to bring rents to fair market rates when a tenant moves out.
A 2024 ballot initiative seeks to ban vacancy decontrol and instead allow local governments to limit the rent that property owners can set for move-ins (vacancy control). For those who have owned their properties for many years, rents are often 30% to 40% below market for long term renters. Under vacancy control, owners who are renting below market may never catch up, as shown in the example below.
Ex. A tenant first rents a 2-bedroom apartment in 2020 at $1,909 per month. Assuming a local rent cap of 3% per year, the rent is $2,086 in 2023 when the tenant vacates the unit.
What is the rent you can set upon vacancy and the financial impact of vacancy decontrol vs. control? Over a five-year period, you could lose $27,297 for each 2-bedroom rental unit.
Decontrol
Owner is allowed to set monthly
Control
Owner is prohibited from raising rent to fair market and is restricted to $2,086.
Navigate Uncertainty: Economic Insights For Property Managers
by Max glassburg, Yardi breeze
In 2024, the economic landscape is as confusing as ever . Are we entering a period of stability and prosperity, or is this a peak before a crippling recession? Or maybe something in between that’s harder to define? We asked Jeff Adler, vice president of Yardi Matrix, who has made a distinguished career for himself spanning over three decades across various sectors of the real estate industry .
Jeff’s expertise is grounded in his leadership roles — from revitalizing operations at AIMCO to pioneering strategies in multifamily, commercial real estate, student housing and more . His academic prowess, marked by degrees from Yale and the Wharton School, complements his practical experience All of us at Yardi Breeze, not to mention the property managers who utilize Yardi Matrix for its unparalleled market intelligence, rely on him for the latest market trends
affecting real estate . As we delve into the complexities of economic cycles, let his perspective help you navigate economic uncertainty
ONE OF THE CURIOUS THINGS ABOUT ECONOMIC OUTLOOKS IS THAT WE ALWAYS SEEM TO BE ON THE VERGE OF A RECESSION. WHAT’S GOING ON HERE?
I’ll start by acknowledging that there’s a cyclical nature to economic activity This understanding comes from reading a lot of history, which reveals the cycles of economic activity and financial cycles . These cycles are driven by the creation and destruction of credit Personally, I’ve experienced numerous cycles since 1973, spanning over 50 years To truly grasp these economic cycles, one might need to look back 500 years, as the major cycles typically occur every 80 to 100 years Currently, we’re still feeling the effects of the Great Financial Crisis of 2008-2009, an event the
likes of which hadn’t been seen since the 1929-1933 period . It’s important to recognize that the full impact of the 1929 crisis wasn’t resolved until 1945 .
Now, moving on to the post-Great Financial Crisis era, we observed a period of slow economic growth and low inflation, influenced by demographic changes, regulatory constraints and other factors . In 2017, tax cuts led to an acceleration of economic growth . However, by 2019, we began to see signs of a potential economic slowdown, indicated by a yield curve inversion These indicators, such as yield curve inversions and changes in the money supply, typically precede recessions or expansions by 12 to 18 months, as it takes time for their effects to permeate through the economy
For operators facing challenges, the emphasis is on finding cost-cutting measures and improving processes rather than succumbing to pessimism
Automation and operational enhancements are ways to adapt and thrive
The COVID-19 pandemic and its subsequent handling were unprecedented For the first time in history, the global economy was voluntarily shut down, accompanied by a massive injection of liquidity to mitigate the economic fallout This led to a shift in demand from services to goods, creating supply chain issues and a significant rebalancing of the economy In 2020, there was a 40% surge in the money supply, the effects of which began to materialize with a lag
By early 2021, it was evident that measures needed to be taken to address the economic impacts, including supply shocks and changes in consumer behavior due to lockdowns and remote work . Demographic shifts and a significant migration pattern emerged, with people moving to areas with a lower cost of living, thereby increasing demand and driving up rents by 20-30%, especially for new rentals due to a fixed supply of housing . This massive movement of people and influx of money supply led to notable inflation
in rent and other areas, highlighting the ongoing challenges in managing the economy through these shocks
DID ANYONE PREDICT A MOVEMENT OF PEOPLE ON SUCH A SCALE?
Absolutely not The size and manner of this movement were completely unprecedented, something we hadn’t seen before In 2021, we saw housing costs increase However, those relocating didn’t mind the higher costs since they were moving from more expensive areas, and there was plenty of money in circulation . It’s important to note that inflation doesn’t manifest immediately; it takes about a year to filter through the economy . By the latter half of 2021, inflation surged, prompting the Federal Reserve to start increasing interest rates in early 2022 . This adjustment takes time to affect the economy, especially when rates were aggressively raised from 0% to 5 25% The yield curve inversion in the fall of 2022 indicated a potential recession about a year and a half away
The Federal Reserve’s actions, including raising interest rates and quantitative tightening, aimed to curb inflation and reduce excessive demand amidst a labor shortage The labor market in 2021 was robust, marked by dislocations across industries and significant shifts as people sought better opportunities, leading to wage and rent increases These dynamics are gradually resolving, but it’s a slow process .
As these adjustments take hold, inflation has peaked and is now decelerating, although it remains above the 2% target Recent reports suggest it’s around 3 5%, but removing housing from this calculation, which is a lagging indicator due to the way housing costs are measured, shows a potential decrease The surge in new supply in many markets is leading to declining rents for new leases, though renewal rates are still increasing but at a slower pace .
Please turn to page 36
The labor market is adjusting, with recent job growth concentrated in low-wage sectors such as hospitality and healthcare, while high-value sectors like tech and finance remain stagnant Despite some job cuts and layoffs, especially in tech, unemployment claims remain low, though continuing claims suggest a longer duration for finding new employment, indicating a loosening job market . Wage growth expectations are adjusting, with potential normalization to levels consistent with a 2% to 3% inflation rate, reflecting broader economic shifts including the war in Ukraine and demographic changes affecting labor force participation rates .
The economy is experiencing a period of transition, influenced by monetary policy adjustments, labor market dynamics and changes in work flexibility These factors contribute to a complex and evolving economic landscape, where precise predictions are challenging but the general direction of slowing economic growth and adjustments in the job market and inflation rates can be predicted
ARE WE RETURNING TO A NORMAL ECONOMIC CYCLE?
It’s important to consider everything that’s happened
since 2020 Inflation has significantly impacted the economy, leading to periods where real wages decreased as prices increased before wages could catch up However, wages did eventually adjust
The current deceleration in wage growth is linked to the overall slowing of the economy and other prices decelerating, reducing market power and the urgency of shortages, thus diminishing the ability to enforce significant price increases .
We are indeed moving towards a period of normalcy as the economy rebalances This doesn’t necessarily mean wages or prices will decrease unless there’s a significant reduction in the money supply and credit . The Federal Reserve’s goal, thus far achieved successfully, is to carefully deflate the economy’s inflationary pressures without causing a collapse, akin to avoiding the severe deflation experienced from 1930 to 1933 when the money supply contracted by 30%, leading to economic shrinkage and numerous problems
The strategy aims to slow the rate of economic growth without inducing an absolute decline in price levels, which would introduce a new set of challenges . Consequently, while wage growth is slowing, wages themselves are not decreasing, indicating a cautious approach to returning to economic normalcy without triggering adverse effects
GIVEN OUR MEASURABLY STRONG ECONOMY, WHY ARE SO MANY PEOPLE PESSIMISTIC?
Many people feel pessimistic due to specific challenges that disproportionately affect them . For individuals trying to buy a home without previously owning one, the high price levels of real estate combined with elevated interest rates can make this goal seem unattainable . This situation contrasts sharply with those who have refinanced their mortgages at low rates around 3%, bought cars before or during the early stages of COVID-19 when interest rates were low or have not seen a significant increase in their fixed costs . These individuals may have a considerable amount of disposable income due to rising wages without corresponding increases in most of their expenses, leading to a better financial situation
However, the reluctance to openly discuss financial well-being can contribute to a skewed perception of the economy . For those attempting to enter the housing market, the situation is particularly tough In booming regions of the Southeast, for instance, rents have surged has high as 9% since 2022 without a matching increase in wages Many find themselves squeezed financially . Senior living got hit . Renters
have felt it Anyone who had to buy a car knows what I’m talking about . Additionally, the cost of living has increased for many, with the price of transportation and vehicles rising due to shortages and interest rate hikes, further compounded by periods of high gas prices
Inflation impacts people unevenly, hitting those at lower income levels hardest as a larger proportion of their income goes towards essentials like food, rent and transportation . Homeowners and those who are not faced with these rising costs may not feel the effects of inflation as acutely . Conversely, individuals in lower economic strata, especially those working in person-to-person industries, miss out on the benefits of remote work, such as reduced commuting costs and increased flexibility . They’re bearing the brunt of these economic shifts .
Here’s another thing to keep in mind . The overall statistics may not fully capture these disparities Well-educated workers with stable costs for transportation and housing, who have benefited from the shift to remote work, represent a minority Their increased flexibility and reduced need for travel and daily expenses have significantly improved their quality of life, unlike the majority who face heightened financial pressures This divergence in experiences contributes to the pervasive sense of pessimism despite the strong economy, highlighting the need to consider individual circumstances and the unequal impacts of economic conditions IS THERE AN OPPORTUNITY COST TO OVERPREPARING FOR A RECESSION, SUCH AS LOST EXPANSION OR INVESTMENT OPPORTUNITIES?
Our focus is to empower our clients by highlighting what they can do rather than what they can’t . Yardi Matrix in particular exists to help businesses effectively navigate cyclical economic challenges . I would argue that it’s crucial to provide an accurate assessment of
the current situation: explain what’s happening, why it’s happening and what’s likely to happen next, along with actionable advice for our clients For instance, in the transaction market, buying assets as before might not be feasible due to unworkable deals . However, there are alternatives like exploring growing markets, considering assumable debt or looking for distressed situations to deploy capital
For operators facing challenges, the emphasis is on finding cost-cutting measures and improving processes rather than succumbing to pessimism . Automation and operational enhancements are ways to adapt and thrive We consistently focus on
actionable strategies in all our webinars, believing that it’s straightforward to list limitations but more valuable to identify opportunities .
Given the current economic climate, certain markets in the U .S . are experiencing a slowdown in rent increases due to an influx of supply This situation is temporary, and over time, as these cities absorb the new supply, we anticipate a normalization of living costs and future rent growth . A potential issue arises from the current slowdown in project development due to increased costs and financing challenges, suggesting a shortage of supply in the future, say around 2025-2027, which could lead to rent increases once again
Small businesses must continue to focus on delivering exceptional services despite these obstacles, preparing for increased costs in insurance, taxes and other operational expenses .
Real estate is inherently cyclical, involving cycles of economy, financing and development . Ignoring these cycles can lead to insufficient supply when demand spikes, often managed through regulatory means that can stifle supply or price adjustments This has been evident in California, where housing restrictions have led to high rents and significant outmigration as people and companies seek more favorable environments
Historically, economic growth has been concentrated in a few cities, leading to disparities However, a shift occurred as people chose to relocate for better opportunities, demonstrating the impact of individual and collective decisions in response to economic pressures . COVID-19 accelerated this trend of outmigration from states like California, New York and Illinois . Though it has since returned to pre-pandemic levels, the movement continues but at a slower pace
ANY FINAL WORDS OF ECONOMIC WISDOM FOR SMALL BUSINESSES?
For small businesses, it’s crucial to recognize the importance of the local economy and how it influences your operations With varying economic conditions across the country, areas like the Midwest are experiencing stability and growth, showcasing that challenges are not uniform nationwide . It’s a reminder that while some regions thrive, others face difficulties, underscoring the need to adapt based on local market conditions .
Operating in the current environment presents its set of challenges, from rising expenses to the need for labor-saving technologies The cost of funds is higher, and while some costs may not decrease significantly, finding ways to optimize operations remains essential . This includes embracing technology to reduce labor dependence, as the labor market remains tight .
Small businesses must continue to focus on delivering exceptional services despite these obstacles, preparing for increased costs in insurance, taxes and other operational expenses . The real estate sector, often seen as a path to wealth accumulation, requires patience and adherence to fundamental practices of offering quality housing at reasonable prices . While quick riches are occasionally possible, the norm is gradual wealth-building through diligent management and long-term strategies .
We’re navigating a period marked by significant shifts . These factors will continue to shape the economic landscape, requiring businesses to adjust and plan with these long-term trends in mind . Adaptation, resilience and a focus on core business principles are key to navigating the complexities of today’s economic environment .
San Diego
Landlord Legal Questions &Answers
by Kimball, Tirey & St. John LLP
Question: I have a unit that is subject to just cause It is relatively new to me and I want to know if I can just non-renew my tenant since it is not working out .
Answer: Unfortunately, no you cannot nonrenew When a unit is subject to any form of just cause, whether it be local or the Tenant Protection Act, you must have a legal reason to terminate the tenancy The contract ending is not a valid reason . Generally speaking, you would have to offer them a new lease of similar terms and duration or allow them to roll month to month . You cannot however tell them to leave at the end of the contract .
Question: Can I accept rent after serving a notice for an issue other than payment? For example: after service of an unauthorized occupant notice
Answer: You should always check with a knowledgeable attorney to determine whether you should accept rent or not if the notice served was for something other than payment Accepting rent after serving a notice may waive the notice
AQuestion: At what point does my property require an onsite resident manager?
nswer: If your property has 16 units or more, you are required to have an on-site “responsible person ”
Question: A resident at my property was taken to the hospital and passed away . Since the lease requires a 30-day notice, what is the law as far as reimbursement of the deposit?
Answer: When a tenant passes, a month-tomonth tenancy is terminated 30 days from the date of the decedent’s last rent payment . Therefore, you have 21 days from the termination date to account for the security deposit (assuming that you have regained possession of the unit) If anyone else claims a right to possession, you may need to go through the eviction process Consult with an attorney if the tenant is a term tenant .
Q
uestion: I served my resident a 30-Day Notice of Termination of Tenancy on the 15th of the month My resident says I have to wait until the end of the month to serve the notice, is that correct?
Answer: No . Under California law, either party can serve a Notice of Termination of Tenancy any day of the month . Make sure you do not accept rent beyond the expiration date of the Notice of Termination of Tenancy
Question: I served a 60-day notice that expires on the 15th of the month . How much rent should I accept for the month in which the notice expires?
Answer: You can only accept 15 days of rent for that particular month .
Question: I recently purchased a triplex, and the escrow will be closing in a couple of days The tenants are currently on a monthto-month rental agreement . Do I have to wait until the end of the month, or can I serve a notice of termination as soon as I take possession of the property?
Answer: You can serve a notice of termination of tenancy any day of the month; it is not required to expire at the end of the month You are also entitled to rent until the notice expires .
Question: I have heard five different answers from five different people Please, tell me what I can legally deduct from my tenant’s security deposit .
Answer: Rights and obligations regarding a residential tenants’ security deposit are governed by California Civil Code § 1950 .5 . Allowable uses are cleaning, delinquent rent and damages above ordinary wear and tear What is considered ordinary “wear and tear” is subject to a variety of opinions by judges Move-in and move-out records of the condition of the apartment, pictures, receipts and opinions from those who did the work can establish damage beyond ordinary wear and tear .
Question: Our tenant gave us a thirty (30)-day written notice to terminate her tenancy . She moved out 10 days after serving the notice and claims she only owes rent up to the day she moved out
Answer: She is liable up the date the thirty (30)day notice expires, minus amounts that you can collect by making reasonable efforts to rent the unit to a replacement tenant . However, note that a person terminating a tenancy based upon domestic violence is only liable for 14 days of rent .
Question: I recently received an application from a young married couple He is twenty but she is only seventeen . I told her she was too young to sign the rental agreement and he had to qualify on his own even thought she was working . She said because she was married, she was qualified to sign I never heard of this law Is she right?
Answer: California recognizes an individual’s right to enter into binding contracts if they are eighteen years of age or older, in active duty in the military, married, or are emancipated by order of the court . You therefore should treat her the same way as you would any other adult applicant
Question: A couple recently applied for one of our vacant units . They have jobs but do not quite qualify for the unit (they need to make three times the amount of the rent) . They said that his father would be willing to co-sign as a guarantor in order to qualify How should I work this arrangement on the lease?
Answer: Use a separate, well drafted guaranty form .
Question: One of my two tenants on the lease moved out due to a job transfer The remaining tenant would like to stay and pay the entire amount Do I need to write up a new lease or simply prepare an addendum stating the remaining tenant is solely responsible?
Answer: You can amend the lease to remove the vacating tenant or keep the current lease in place without amendment (in which case the vacating resident may remain rent responsible) or terminate the existing lease and enter into a new lease with the remaining resident .
Prop. 33 would repeal Costa-Hawkins and expand rent control. What it means for you.
Thank you to everyone who attended the Rent Control Town Hall on Friday, Sept . 13 to discuss Proposition 33 on the November ballot The event, our third town hall this election cycle, was graciously hosted by the Pacific Southwest Association of REALTORS® at their office in Chula Vista
As a reminder, Prop . 33 would repeal Costa-Hawkins and expand rent control
What it means for you:
• 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 and condominiums by eliminating AB 1482 protections . It would also allow rent control on newly constructed housing
Here’s a recap of the key points discussed by our speakers:
Jordan Marks, San Diego County Assessor-RecorderClerk, emphasized the massive threat to property values and public services if Costa-Hawkins is repealed With over 770,000 single-family homes and condos in San Diego County, and 40% not owneroccupied, Marks explained that removing CostaHawkins could jeopardize a third of the county’s property tax base, leading to significant cuts in essential services like police and fire departments . Marks also noted that rental rates have increased by 4% across the county, partially due to uncertainty
surrounding the measure . Some housing providers are even choosing to keep units vacant, waiting for market conditions to stabilize .
Rich D’Ascoli, CEO of the Pacific Southwest Association of Realtors®, discussed how rent control and vacancy decontrol would negatively impact property owners . He noted that as one example, many Navy personnel rent out their home while they are deployed, while fully intending to return to San Diego With Prop . 33 allowing jurisdictions to impose rent control and restrict evictions on single family homes, this measure threatens a military servicemember’s ability to return and live in the house that they own, he said .
D’Ascoli warned that as demonstrated in markets like New York, rent control leads to tenants staying in homes for decades – preventing those in need from accessing affordable housing .
He also noted that the campaign to defeat a proposed rent control measure in National City was expensive –an estimated $50 per voter – and despite that, it was still a close vote . If Prop . 33 passes, we could see measures like this pop up in local cities – requiring more expensive fights, he said
Lori Holt Pfeiler, CEO of the Building Industry Association of San Diego, stressed that a healthy housing market is crucial for healthy communities, and rent control only disrupts this balance With capital already difficult to secure in the region, rent control would further discourage new construction This would ultimately reduce the availability of affordable housing, including naturally occurring affordable housing, she said .
The BIA PAC has voted to oppose Prop 33, she said Christine La Marca, CalRHA and SCRHA Past
48
President, highlighted the significant financial risks to owners if Costa-Hawkins is repealed She pointed out that cities would be likely to consider local rent control measures – echoing D’Ascoli’s comments that such measures would be costly to fight if they were expanded to the properties currently exempt under Costa-Hawkins .
La Marca explained how repealing Costa-Hawkins would restrict property owners’ rights to reset rents or evict tenants, making it harder to maintain and renovate rental units . Some investment dollars are already shifting to other markets, even as far as Canada, due to California’s increasingly restrictive housing policies, she said .
La Marca also introduced a special calculator on the CALRHA website that helps property owners learn how much they would lose if vacancy decontrol is eliminated . She warned that the longer units remain occupied at lower rents, the harder it becomes to raise rents to market levels when tenants eventually move out
Molly Kirkland, SCRHA Director of Public Affairs, moderated the event She discussed the costly nature
of these rent control battles and the importance of raising funds to fight back . Kirkland emphasized the need for ongoing financial support to continue the campaign to defeat Prop . 33 .
In closing, we urge you to contribute to the SCRHA Issues PAC* . Your financial support is critical in helping us protect property rights and fight against the dangerous rent control measure, Prop . 33 . You can mail a check to our office payable to the SCRHA Issues PAC or click here to donate .
Thank you for your continued support and engagement in this critical issue .
NO ON PROP 33 YARD SIGNS ARE NOW AVAILABLE!
Signs may be picked up Monday through Friday between 9:00 AM and 4:00 PM at 8480 La Mesa Boulevard, La Mesa, CA 91942 . Signs are limited to one per property (including your personal residence) . Yard signs will be available for pick in other parts of the region (South Bay, Central SD, North County) in the coming weeks SCRHA will communicate other pick-up locations in future emails .
Providence Real Estate Management Corporation 760 525 8705 R R . A Snyder Properties, Inc . . . . . . . . . 619 .297 .0274
REC Properties| Penasquitos Point Apts 858 484 5047
RG Investment Real Estate Services Inc 858 268 5004
Red Tail Residential 951 234 5204
Rehmann Realty Group 619 440 5669
Richman Property Services . . . . . . . . .
NAVIGATING APARTMENT INSURANCE NON-RENEWALS
by Cameron Stewart, Crest Insurance
If you are an owner of an apartment property that has been non-renewed by an insurance carrier for any reason, you’re likely being faced with an increase in insurance costs you would not know to prepare for without the guidance of an independent insurance broker . You may also be faced with an inability to maintain the insurance protection you would desire We are providing this article to help you navigate this process to the best of your ability by answering the following common questions being asked of us
HOW DID WE GET HERE?
Without dwelling too long on why the insurance market is changing so drastically, we will share it is largely attributable to the impact on the insurance industry of “social inflation” as well as inflation of the true cost to rebuild commercial properties, which has driven up claims costs and is what insurance is actually rated by .
HOW DO I GO ABOUT FINDING A NEW CARRIER?
We recommend selecting only (1) independent insurance broker to represent you in the insurance marketplace Insurance companies only allow (1) insurance broker to represent a client . Having multiple brokers representing you reflects negatively on you and indicates to insurers you may not be familiar with how to manage insurance for your properties If you can compare this process of buying a new insurance policy to buying a new property, it would not make sense to submit an offer for a property from two different real estate brokers. Pretend in this case an insurance carrier is a potential new property you are searching for and rely on a broker you trust to submit your risk profile to the insurance carrier.
HOW DO I KNOW A BROKER IS GOING TO COME THROUGH FOR US AND FIND US REPLACEMENT
INSURANCE?
Our suggestion is to ask the broker going to the market for you for a full list of insurance companies they are going to approach on your behalf You can then share that list with a secondary insurance broker and ask if the first broker missed any potential insurance sources you should be considering We provide this list with consistent updates to all our clients .
WHAT INFORMATION IS NEEDED TO GET QUOTES?
Other than very basic information about the property such as square footage, number of units, rental income, below is what is most crucial to always keep on file to maintain the best insurance options, moving forward
1. (If Year Built Prior to 1980) Confirmation of the brand of the current electrical panels main and sub panels . We recommend taking a picture up close of the label of the electrical panel which should display the brand .
2 (If Year Built Prior to 2000) Descriptions and receipts for all updates made to Roofing, Electrical, Plumbing, and HVAC
3 . Hard Copy Currently Valued Loss Runs from the current insurer, regardless of whether you have had any claims .
If you find yourself in this situation, it’s important to find honest feedback and expectations from an insurance professional
Bald Eagle Security Services, Inc 619 230 0022 Brothers in Arms Security 844 458 1021
HandyTrac Systems 800 665 9994 JDS Security 619 781 8694
SEISMIC RETROFIT
Optimum Seismic 562 298 6395
SMART TECHNOLOGY
WASTE MANAGEMENT
Contracting &
858 933
HELP STOP RENT CONTROL INITIATIVE
2024 BALLOT INITIATIVE WHAT IT DOES
Proposition 33 Repeals the Costa-Hawkins Rental Housing Act and Expands Rent Control
PROPERTY OWNERS WHY IT MATTERS
Local jurisdictions will have free rein to impose and expand rent control.
Will prohibit rent increases upon vacancy (also known as vacancy de-control) by eliminating the owner's ability to charge the market rate when a tenant vacates the unit.
Imposes rent control on all properties including single-family homes by eliminating AB 1482 protections.
Your rental income and property value will decline.
If you are renting your units below market, you may never catch up because the initiative allows local jurisdictions to cap how much you may increase rent following a vacancy.
Rent caps would apply to single-family homes and condominiums.
To stop Proposition 33, CalRHA and its affiliates are asking for your support and contribution to fight this third attempt by the same anti-housing activists behind Propositions 10 and 21 from 2018 and 2020. CalRHA and its regional associations collectively need to raise a minimum $5 million dollars, so we're all in this together.
All funds raised will go toward the initiative fight. To make a contribution, please scan the QR code. Thank you for your generosity.
$5 MILLION TARGET
The last rent control fight cost the broader housing industry $80 million dollars. This one will cost even more.
Funds will be deposited into a dedicated account specifically for fighting the initiative. DEDICATED FUNDS
We defeated both the 2018 and 2020 rent control initiatives. With your support, we can do it again. SUCCESS
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