April 2022 SF Apartment Magazine

SF APARTMENT magazine

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Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

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SF APA SF APARTMENT

contents

Features

20

Build to Boost

by MARK HOGAN

28

Registry Refresh

by ROBERT COLLINS with CHRISTINA VARNER

34

The Outsource Workforce

by DANA DUNFORD

20 4

Photo courtesy of

APRIL 2022 | SF APARTMENT MAGAZINE

LU K E M U M M E R T

PARTM Columns

Membership

8

38

Change of Space

At a Price

The News

14

Surreal Estate

Legal Q&A

by VARIOUS AUTHORS

44

Just Cause and Effect

Board Report

by JUSTIN E. GOODMAN

House in Order

18

by ERIC R. ANDRESEN

50

Calendar

52

Professional Services Directory

56

Membership Application

Sacramento Report On the Block

by DEBRA CARLTON & MIKE NEMETH

28

SF APARTMENT MAGAZINE | APRIL 2022

5

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6

APRIL 2022 | SF APARTMENT MAGAZINE

magazine

SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112

Email memberquestions@sfaa.org Web www.sfaa.org

SFAA Staff Executive Director Janan New

Deputy Director Vanessa Khaleel

Education Specialist Stephanie Alonzo

Government and Community Affairs Charley Goss

Marketing Lara Kisich

Member Services Manager Maria Shea Member Services Gershay Castaneda

Accountant Crystal Wang

SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

Secretary Mark Henderson

SFAA Directors Eric Andresen, Honor Bulkley, Andre Ferrigno, David Gruber,

VOLUME XXXV, NUMBER 4 APRIL 2022 Published by San Francisco Apartment Association Publisher Vanessa Khaleel Editor Pam McElroy

Art Director Jéna Safai

Production Manager Cameron Shaw Tel 415-392-3770 or 415-255-2288 Web www.sfaa.org

SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California and at additional mailing offices.

POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102.

The SF Apartment Magazine is published monthly for $84 per year by the San Francisco Apartment Association (SFAA), 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is not responsible for the return or loss of submissions or artwork.

The magazine does not consider unsolicited articles. The opinions expressed in any signed article in the SF Apartment Magazine are those of the author and do not necessarily reflect the viewpoint of the SFAA or SF Apartment Magazine. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought.

Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by the SFAA, express or implied, of the advertiser or any goods or services offered. Published monthly, the SF Apartment Magazine is distributed to the entire membership of the SFAA. The contents of this magazine may not be reproduced without permission.

Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright @2022 by SFAA.

Kent Mar, Neveo Mosser, J.J. Panzer, Bert Polacci, James Sangiacomo, Dave Wasserman

SF APARTMENT MAGAZINE | APRIL 2022

7

COLUMN

THE NEWS This 10-day warning does not apply to evictions based on an imminent health or safety issue or the non-payment of COVID-19 rental debt.

The ordinance was written by Supervisor Preston to help make pandemicrelated eviction protections more long-term. “It’s important that we take things that have worked in our pandemic response and look at making some of them permanent,” he said.

Potential Residential Vacancy Tax: Supervisor Preston is working on legisla-

Change of Space

From tenant unions to vacancy tax, read on for the list of rental housing legislation in the pipeline.

Legislative Update

tion that would tax owners of vacant units in San Francisco. According to a report put out by the City’s budget and legislative analyst, the tax could impact owners of more than 40,000 vacant units. Many feel this number is largely inflated, however. Executive Director of the Housing Action Coalition Todd Da-

attend some of their meetings upon re-

vid says the number of long-term vacant

COVID-19 Tenant Protections: An ordi-

quest. The law will apply to market-rate

units in the city is closer to 8,000.

nance, sponsored by Supervisor Dean

and rent-controlled buildings with five

Preston, amending the Administrative

or more units.

The tax would be imposed on any “residential unit” in a building that is

Code to retain the local COVID-19-related eviction moratorium has passed.

A rental property owner’s failure to

unused or vacant for half a year or more

The amendment prohibits landlords

allow organizing activities or comply

(182 days)—even if it is not half a year

from evicting residential tenants for

with their obligations as to tenant as-

consecutively. The tax depends on (1)

non-payment of rent that came due on

sociations may support a petition for a

the size of the unit in square feet, (2)

or after April 1, 2022 and was not paid

rent reduction. For example, a building

what year the tax is imposed (the rates

due to the COVID-19 pandemic; and

owner must not penalize tenants for

increase year-over-year until 2026), and

prohibits landlords from imposing late

knocking on doors to gather signatures.

(3) whether the unit remains vacant for multiple years in a row. It starts at

fees, penalties, or similar charges on Supervisor Aaron Peskin, author of

$2,500/unit in 2024 for the smallest va-

the legislation, called it, “the strongest

cant unit (< 1,000 square feet) and caps

Tenant Organizing: An ordinance that

tenant organizing legislation at the mu-

out at $20,000/unit for any unit over

requires residential landlords to allow

nicipal level in the history of this state

2,000 square feet that is taxed in 2026

tenant organizing activities to occur

and country.”

or later and that was vacant the year

such tenants.

before as well.

in common areas of the building was approved unanimously by the San

10-Day Written Notice Requirement:

Francisco Board of Supervisors. Tenant

The San Francisco Board of Supervi-

Funds collected would support

associations will become official when

sors voted unanimously to require that

rental subsidies and the acquisition,

residents in at least half of the units in

rental property owners and managers

rehabilitation, and operation of

the building sign to join.

give residents a 10-day written notice

affordable housing.

and an opportunity to cure before

8

The ordinance will require certain resi-

serving certain eviction notices. After

If enough signatures are collected to

dential landlords to recognize duly-es-

receiving the notice, residents will have

support the ordinance, San Francisco

tablished tenant associations, confer in

10 days to address the problematic is-

voters will have the final say on the

good faith with said associations, and

sue to avoid eviction.

November 22 ballot.

APRIL 2022 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | APRIL 2022

9

SFAA TRADE SHOW THURSDAY, MAY 12, 2022 Mark Thursday, May 12 on your calendar for the annual SFAA trade show.

The free event will take place in-person at the Fort Mason Conference Building, from 2:00 p.m. to 5:30 p.m.

Attendees will learn all about the latest trends, products, and services in the multifamily housing industry.

Consult with legal and management professionals, get to know service providers, improve your overall effectiveness with free educational classes, and meet peers in the San Francisco rental property market.

Please note that the trade show will replace the May member meeting. For more information or to sponsor the event, email vanessa@sfaa.org or turn to page 45.

For more details on the Registry, turn to the feature article by former Rent Board Director Robert Williams and Acting Rent Board Director Christine Varner on page 28.

Intermediate Length Occupancy (ILO) deadline June 22, 2022 The Planning Code was amended in June 2020 to regulate the leasing of residential units for less than one year (ILO units).

Intermediate Length Occupancy is defined as the leasing of a residential unit for a duration of more than 30 consecutive days but less than one year.

The ILO program limits the number of ILO units to be permitted in the City to 1,000.

Owners of eligible ILO units must submit an application no later than June 22, 2022.

A residential unit will not be eligible for this

Sprinkler Requirements for Existing High-

program if it is located in a building with

Rise Buildings: Supervisor Aaron Peskin

three or fewer units, if it’s subject to the In-

has introduced legislation amending the

clusionary Affordable Housing Program, or

existing fire code that would require sprin-

if it’s in a rent-controlled building, among

kler systems in existing high-rise buildings.

other disqualifiers.

Rent Board Registry Deadline July 1, 2022

To find out if your building qualifies or to

Legislation to create a housing inventory became effective on January 18, 2021. The

apply for a permit, visit sfplanning.org.

SFAA Updates

legislation requires owners of residential

2022 Residential Tenancy Agreement:

housing units in San Francisco to report

The SFAA 2022 lease is now available in

certain information about their units to

print and online. To access the lease, visit

the Rent Board by July 1, 2022. The Rent

sfaa.org.

RHINO

Board will use this information to create and maintain a “housing inventory” of all

SFAA Office Reopening Status: While the

units in San Francisco that are subject to

SFAA office remains closed to the public,

the Rent Ordinance.

SFAA staff is working round-the-clock to keep the nonprofit running. Timely

Owners must report the information each

payment of dues is necessary to help the

year, using a form prepared by the Rent

association help you. Email MemberQues-

Board. The Rent Board is developing a

tions@sfaa.org to have your questions

website, the Rent Board Portal(“the Por-

and concerns addressed.

tal”), which owners will use to submit the required information online. Once a prop-

SFAA Classes: Classes are available

erty owner initially reports information

online. SFAA is happy to announce that

about their units, the system will maintain

current CCRM students can continue their

what has already been submitted. In future

education right from home. We under-

years, owners will only have to update the

stand keeping up with education is crucial

information when changes occur during

and want to assist our members to stay up

the year, and then again for the required

to date. See the calendar on page 50 for a

annual reporting. Eventually, the Portal will

full list of classes.

also be used for other Rent Board filings, including petitions and documents.

10

APRIL 2022 | SF APARTMENT MAGAZINE

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Adam Filly m: 415.516.9843 | adam@adamfilly.com DRE 01354775 | www.AdamFilly.com Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed.

SF APARTMENT MAGAZINE | APRIL 2022

11

12

APRIL 2022 | SF APARTMENT MAGAZINE

DAN McGUE

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by Coldwell Real 2022 Estate LLC, dba Coldwell Banker Commercial Affiliates. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

13

COLUMN

SURREAL ESTATE

Just Cause and Effect w r i t t e n b y J U S T I N E . G O O DM A N

How relevant are local regulations in guiding landlord-tenant law?

O

pants despite these prohibitions.

While the amendment impaired con-

ne of the many benefits

market-rate increases when a tenant is

tracts, the Court of Appeal determined

of the SFAA community is

not. The situation became more com-

that the impairment wasn’t “substantial.”

our shared commitment

plicated when a master tenant vacated,

What difference did this make to a land-

to understanding the laws

leaving behind their subtenant. If the

lord’s ability to evict? Breaches always

that govern our industry, and incor-

sub-tenant could resist the increase,

had to be material to support the forfei-

porating them into our best practices.

they just became “tenant,” and another

ture of a tenancy. And while wanting to

Some of these laws have been on the

generation of rent control was assured.

protect vacancy decontrol is important,

books for decades, while some are new.

Landlords were forced into a proxy war

it does not, in itself, make this breach

Lately, it seems we face a new watershed

with a third party.

material. With or without the regulation, there should be compelling facts that go

change in law every year.

The Rent Ordinance has always defined

to the heart of the landlord-tenant rela-

Unfortunately, local laws seem to pit

“tenant” broadly to include subtenants

tionship to pursue an eviction for sublet-

landlords against tenants as if they’re

who were approved by the landlord.

ting (like if the number of occupants

adversaries. For instance, only a ten-

Early versions of the Rent Board rules

violates the housing code).

ant may rescind a buyout agreement

advised that if a landlord responds to

(regardless of whether they are more

a repair request from a subtenant, they

While not specifically about the right to

sophisticated or wealthy than their land-

just tacitly created a tenancy (never

sublet, the appellate division of the San

lord), and if a landlord fails to timely file

mind that the request itself triggers a

Francisco Superior Court recently af-

one with the Rent Board, a tenant can

duty under the warranty of habitability,

firmed the ability of a landlord to evict

strip out the parts they don’t like and file

so a landlord can’t ignore it).

subtenants for their master tenant’s non-payment, even though they tried to

that one instead.

In practice, this game-playing was a

cure the rent demand themselves. The

Do the City’s tenants need to be infan-

fight over vacancy decontrol—the abil-

court found that the landlord never ac-

tilized by regulation? Do landlords need

ity of San Francisco to maintain rent

cepted rent from (or even met) the sub-

to be observed and scrutinized? Overall,

caps on a unit once the original lessees

tenants, that state law did not require a

it depends on the particular people, but

have vacated. (The more people who

landlord to accept rent (and establish

the City propagates laws that apply gen-

live in a unit, the more people may

a landlord-tenant relationship) under

erally to all actors—good and bad alike.

usurp rent control through waiver by

these circumstances, and—more impor-

These choices can be overly punitive,

an unwary landlord.) The above rule

tantly—that she was within her rights

resulting in rigid and uncompromis-

didn’t survive the enactment of Costa-

to first offer a market rate lease before

ing practices. This column questions

Hawkins, but landlords have been

resorting to an eviction.

whether some of the more well-known

conditioned to be brusque and uncom-

regulations actually accomplish what

promising with subtenants.

To distill some principles: As always, landlords must be vigilant to avoid creat-

they purport to.

14

guarantee a specific number of occu-

The most elegant solution to this prob-

ing tenancies with subtenants, and this

Some context: Since its adoption in

lem was to strictly prohibit subletting in

firewall will allow a landlord to enforce

1979, San Francisco has protected “ten-

a lease and ignore/reject later requests.

valuable rights under pain of eviction.

ants in occupancy” from increases

However, if tenants couldn’t replace

But even when a landlord is on the

above inflation-adjusted rent levels.

their departing co-tenants, it worked a

precipice of litigating a forfeiture, she

“In occupancy” means “actually living

de facto rent increase, so San Francisco

would be wise (as this one attempted)

there,” so San Francisco has permitted

adopted the Leno amendment in 1999 to

to at least offer a new tenancy at a

APRIL 2022 | SF APARTMENT MAGAZINE

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15

©2022 Corcoran Global Living. All rights reserved. Each franchise is independently owned and operated. Corcoran Global Living fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. SF APARTMENT MAGAZINE | APRIL 2022 This is not intended as a solicitation if you’re working with another broker. Information is deemed reliable, but is not guaranteed.

decontrolled rate. (And the offer should

continued to decline (despite the persistent

be served, and a certain number of evic-

be genuine—the Court of Appeal recently

financial incentive).

tions will be litigated, regardless of market conditions and (dis)incentives.

upheld San Francisco’s “tenant harassment” provision, finding rent increases tortious if

Now, fault-based evictions did rise in

they coerce a (sub)tenant to vacate.)

tandem with the market in the first place.

To that end, the recent “ten-day cure” or-

But the sudden downward trend appears

dinance seems ill-fated—both in relevance

The trend here is that landlords are encour-

to have been prompted by a sudden jump

and lawfulness. The new ordinance re-

aged to respect the right of occupancy even

in net housing creation (which increased

quires a landlord to serve a ten-day notice

of “unapproved” subtenants. A landlord

about 50% by volume in 2013 and about

to cure a violation before the fault-based

should only resort to a fault-based eviction

80% in 2014, according to Planning De-

“just causes” apply. State law is clear that a

when their reasonable attempts to keep

partment data), not by a regulation that ar-

tenant defaulting in rent or other contract

a tenant in their unit are rejected. Limit-

bitrarily heightened the landlord’s burden

obligation gets three days to cure—not ten

ing subletting evictions is in line with the

for proving nuisance and breach. Fault-

days and then three. Other tenant faults,

policy of rent control generally (which was

based eviction notices have effectively lev-

like failure to allow access or failure to

to maintain housing costs for tenants in

eled off since then, while the net housing

renew a lease, have less of a time com-

occupancy, so long as at least some of those

production numbers continue at or above

ponent, but a landlord would be hasty to

tenants remained). Trying to evict despite

the ten-year average.

rush into court without a well-developed paper trail—one that establishes she had

these policies is difficult, and so these reguThat is, until the pandemic. For most of

no option than to ask the jurors for relief.

2020, fault-based eviction notices ceased,

Ironically, this ordinance may suggest that a

Other violations are different. Severe

except those based on imminent health

ten-day period is sufficient when landlords

breaches and nuisance often affect

and safety concerns. Yet, at the same time

might otherwise have spent more time me-

whether the rental unit is damaged or

San Francisco rents plummeted, the num-

diating the dispute.

other tenants can enjoy their housing.

ber of nuisance eviction notices was almost

The 2015 “Jane Kim amendment” sought

identical to that in 2019 and slightly above

Local regulations increasingly seek to

to elevate the standard so that breaches

the previous peak. This suggests that a

interfere with all evictions for the benefit

be “substantial” and nuisances be “severe,

certain number of fault-based evictions will

of those that shouldn’t go forward. Best

continuing or recurring in nature” before a

likely persist, regardless of the potential for

practices treat evictions as a last resort

landlord may evict.

an increase in rents on the other side.

while pursuing only those that need to go

This ordinance was again motivated by

The real deterrent is the expense of re-

major changes in the Rent Ordinance have

vacancy decontrol: Costa-Hawkins permits

taining a lawyer to litigate. Proposition F

merely tracked the practical approaches

market-rate rent following a fault-based

(2018) now provides full-scope representa-

to these problems. In the fog of the pan-

eviction, so tenants’ rights advocates view

tion to residential tenants facing eviction.

demic, San Francisco showed that it will

these evictions as a pretext for higher rent.

These days, landlords are “fighting City

seek to stop all evictions if it can, though

Landlords, though, appreciate the legal

Hall” against an annual budget that has in-

hopefully that imbalance is forever behind

costs involved and would prefer to focus

creased from approximately $6 million to

us and state law holds firm on the most im-

on their core business rather than the part-

$17 million (largely during a pandemic, no

portant limits, like vacancy decontrol and

time job of litigating.

less). Access to counsel is crucial. But the

eviction procedures.

lations simply codified best practices.

forward. But for the most part, many of the

provision of free attorneys in these cases This story can be told in many ways, but

often finds tenants “over-litigating” their

some data points are helpful. In the last

defenses. (Rather than waging a measured

business cycle following the Great Reces-

battle of attrition, this is delay and ex-

sion, average rents peaked between Q3

pense for the sake of delay and expense.)

2015 and Q2 2016 (according to data collected by Zumper). The number of fault-

Is this a deterrent to evictions? It really just

based eviction notices filed with the Rent

means that the ones who go forward are

Board, however, peaked in 2014. While

the ones who need to. It diverts question-

fault-based notices declined more than 12%

able cases to buyout negotiations (where

in 2015, the Jane Kim amendment didn’t

the conflict is resolved without a winner or

take effect until November of that year,

loser). And where pre-trial settlement isn’t

suggesting it made little difference. And

possible, it encourages landlords to thor-

while market rents continued to increase

oughly develop their case for fault-based

for the three quarters following the amend-

evictions before testing it in court. A certain

ment, the number of fault-based notices

number of fault-based eviction notices will

16

APRIL 2022 | SF APARTMENT MAGAZINE

Justin E. Goodman is with Zacks, Freedman & Patterson and can be reached at 415-956-8100.

Mike Stack

Real Estate Advisor

Call or email me today for a free & private analysis of your property’s value.

415.580.9095

mikestack@vanguardsf.com MikeStackSF.com

D R E# 0193228 0

NEWEST LISTING BY THE BONN/WEBB TEAM

901 - 903 PINE STREET

RECENTLY SOLD

36 Units in Downtown San Francisco Across the Street from the Mark Hopkins Hotel First Time on the Market in Over 25 Years Potential to Boost Income

Mark Bonn

Mirella Webb

Managing Director

Senior Investment Advisor

415.225.8658 mark.bonn@compass.com lic.: 01008844

415.640.4133 mirella.webb@compass.com lic.: 01409540 www.bonnwebbteam.com

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice.

No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

SF APARTMENT MAGAZINE | APRIL 2022

COMMERCIAL

Call us for a FREE and confidential valuation of your property or to consult about your real estate needs.

17

COLUMN

SACRAMENTO REPORT

On the Block

• The rent was unaffordable to those

w r i t t e n b y DE B R A C A R LT O N A N D M I K E N E M E T H

CAA stops two bills targeting rental housing.

of low or moderate income; • Removal of the units would not adversely affect the city’s housing supply; and

AB 845, the “Stay in Business Forever” Act

Background Information The Ellis Act was passed by the legisla-

a reasonable return on his or

The California Apartment Association

ture in 1985 to expressly prohibit a local

her investment.

(CAA) and its members have defeated

jurisdiction from enforcing local laws

a bill targeting the right of landlords to

that prevent landlords from terminating

Jerome Nash, a landlord, “became

leave the rental housing business—oth-

tenancies to remove rental housing from

disenchanted . . . with operating rental

erwise known as the Ellis Act.

the marketplace. The Ellis Act does,

housing.” Nash elected to demolish his

• The landlord could not make

however, allow jurisdictions to impose

building. When Nash realized he would

Thanks to the association members’

certain limited procedural requirements

not be granted a permit by the City to

advocacy efforts at the Capitol, Assem-

and allows for any rent control provi-

demolish his rental units, he challenged

blymember Alex Lee (D-San Jose) was

sions to apply if the owner returns the

the City’s ordinance.

not successful in moving his bill—AB

rental units to the marketplace in a juris-

854—off the Assembly Floor, rendering

diction that controls the price of rents.

Although Nash prevailed in the trial

the bill dead for 2022.

Apart from those limited requirements

court and on appeal, the California

and provisions found in the Ellis Act, the

Supreme Court found that the burdens

AB 854 would have prohibited rental

Act prohibits local ordinances that pro-

imposed on Nash’s liberty interests

housing providers from using the Ellis

hibit a landlord’s right to go out of the

were minimal and that the City’s permit

Act to terminate tenancies and exit the

rental business.

requirements were reasonably related to the City’s goal of protecting its scarce

rental market until all owners of the

rental housing supply.

property have held their ownership

The legislation came as a direct re-

interest for five years or more. It also

sponse to a California Supreme Court

would have prohibited owners from at-

decision in Nash v. City of Santa Monica.

In direct response to the Nash decision,

tempting to ever remove a second build-

In Nash, the Court considered an or-

Senator Jim Ellis introduced, and the

ing from the market.

dinance adopted in the City of Santa

Governor signed, the legislation known

Monica in the late 1970s. That ordinance

as the Ellis Act. The Act expressly pro-

Furthermore, the bill would have pre-

was adopted in response to a 15-month

vides that it is “the intent of the Legisla-

vented new owners of a rental property

period described as “Demolition Derby.”

ture to supersede any holding or portion

from using the Ellis Act to convert the

During that period, more than 1,300

of any holding in Nash v. City of Santa

property and move into it. At the same

rental units were razed and many more

Monica . . . so as to permit landlords to

time, longtime owners, including those

converted to condominiums. The city’s

go out of business.”

needing to exit the business because of

voters responded to the widespread

financial distress, would have had dif-

loss of rental units by passing a measure

Over the years, some California legisla-

ficulty selling to potential buyers who

that included a provision that required

tors have attempted to amend the Ellis

want to move into the property.

landlords to obtain a permit before they

Act. Just like with Assemblymember

could remove units from the rental hous-

Lee’s latest attempt, CAA members have

Over the past weeks, CAA members

ing stock. Permits could be issued by the

successfully stopped the most egre-

have sent thousands of emails to Assem-

city only if all of the following condi-

gious attempts to amend the law. CAA

bly members urging them to reject AB

tions were met:

stands ready to fight back any additional

854. These emails truly made a difference. The defeat of AB 854 shows how important your voice is at the Capitol.

18

APRIL 2022 | SF APARTMENT MAGAZINE

• The unit was not occupied by a person of low or moderate income;

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SF APARTMENT MAGAZINE | APRIL 2022

19

Build to Boost Wr i t t e n b y

M A R K HO G A N

With creative planning and patience, ADUs bring higher rents, increase property value, and add to our housing supply.

People have been talking a lot about Accessory Dwelling Units (ADUs) in California—especially since new state laws went into effect in 2020 that allow apartment owners to add additional units to properties. In San Francisco, multifamily ADUs have been legal for years and take many forms. Let’s look at a few different scenarios for adding units to an existing urban multifamily property.

Market Street ADUs Ground Floor Parking Conversion Our office added six units to a 26-unit apartment building in the Castro District by converting existing garages and storage spaces into apartments. The site is on Market Street, within view of the iconic rainbow flag at the intersection of Market and Castro. It is within walking distance from multiple bus lines and a light rail station, meaning most neighborhood residents get around by foot or public transit.

When the owner bought the property, a few of the parking spaces were unused, making a conversion of this space an obvious choice. During our review, we also saw an opportunity to create outdoor open space, which would make the units on the side of the building facing a driveway more desirable. While a few people were using the garages facing Market Street, the owner was able to relocate these cars to the common garage on the other side of the building. This allowed us to build out units in the street-facing garages, each with its own front door.

Private entrances in a building like this are a big selling point in the current market— after two years of the pandemic, many tenants like the idea of having their own front door and not needing to go in and out of shared elevators, lobbies, and hallways.

The renovation also provided the opportunity for an upgraded secure bike storage area, which can be accessed easily on the ground floor. This is an excellent alternative to carrying bikes upstairs or in elevators.

20

APRIL 2022 | SF APARTMENT MAGAZINE

The living room of an ADU in a converted carport on Union Street.

Photography by Hewitt Photography.

SF APARTMENT MAGAZINE | APRIL 2022

21

Project Highlights: • The unit count of this building was boosted from 26 to 32 units.

• The units facing Market Street have front doors on the sidewalk, creating a much more welcoming streetscape than the large garage doors that used to line this side of the building.

• Each unit has a small planter area to buffer the windows from the street.

• The two units that face what was formerly a driveway on the side of the building have shaded, landscaped patios, which potential residents find appealing.

We collaborated with landscape architect Site Studio on the design of the outdoor areas.

• The project improved bicycle storage for existing residents by creating a secure indoor bike parking area near the laundry room and trash facilities.

Union Street ADUs Parking Repurposed into Units Around a Shared Yard At this multifamily property on Union Street, we converted a carport and garages in the back of the building into five new units, bringing the property’s unit count from 12 to 17 units.

The property had a driveway under the building, leading to a paved rear yard with additional parking spaces under the apartments, and a freestanding carport along the rear property line. Similar to the project on Market Street, there was a huge opportunity for creating modern units with individual access, and in this case, each unit was given a private patio.

Because we removed the parking from the back of the building, the driveway was repurposed into an open-air passageway to the new units, and a secure trash area was built out for residents.

We converted the rear carport into a duplex that offers two private one-bedroom units with skylights and outdoor space. Units like these are scarce in the Marina District, especially with new finishes and modern HVAC (including air conditioning via highly efficient mini-split heat pumps).

The outdoor space was crucial to making this garage conversion a successful project.

Again, working with Site Studio, we created a balance of public and private outdoor spaces as an added amenity for both existing and new residents. We separated the private patios from the rest of the courtyard by creating a slight change in grade or with strategically placed plantings. Previously a turning area for cars, the courtyard is now a vibrant outdoor space for tenants to enjoy.

Project Highlights: • By adding three units to the twelve in the front building and then adding two detached units in the existing garage, we increased the unit count from 12 to 17.

• The HVAC is all-electric, with heating and cooling provided by mini-split heat pumps. This significantly reduces construction costs compared to using natural

22

APRIL 2022 | SF APARTMENT MAGAZINE

The living room of an ADU in a converted garage on Market Street.

Photography by Hewitt Photography.

SF APARTMENT MAGAZINE | APRIL 2022

23

gas, and it provides higher quality temperature control for residents.

• Hot water comes from the existing system in the front building and a shared electric heat pump water heater in the rear building.

• Finishes are simple but high-quality: engineered wood floors, fiberglass windows, quartz counters, and tile showers.

Successful ADU Projects Over the last five years, we’ve designed hundreds of ADUs in a variety of buildings in San Francisco. The most successful projects typically have these items in common: Know what you’re getting into: If the units require large amounts of excavation or a total structural rebuild of the ground floor, this is going to increase costs. Ask your architect for feedback early in the process and talk with a knowledgeable contractor.

More units equal lower costs per unit: The more units you add, the more units you have to spread over the project’s fixed costs. It’s not uncommon for small oneunit ADU projects to cost $300,000 (or more), while larger projects can come in at $200,000 or less per unit.

Work with experienced professionals: Be sure that the professionals you work with (in particular, the architect, engineer, and contractor) are familiar with the challenges of multifamily ADUs and have experience working in San Francisco.

There are complicated building codes and construction challenges in San Francisco, making ADU construction more challenging than a typical unit remodel or singlefamily home renovation.

Plan, plan, plan: Getting the design right up-front will lead to a better finished product, which, in turn, leads to higher rents and a more valuable building. Ask your Top Two: Private patios were separated from the courtyard and street with slight grade changes or strategically placed plantings for the Union Street ADU project.

architect for 3D views of the project to understand the design better. Be ready and

Photography by Hewitt Photography.

Bottom: The “before” photo of the rear building where the Union Street ADU was constructed.

Photography by OpenScope Studio.

24

APRIL 2022 | SF APARTMENT MAGAZINE

Build to Boost… continued on page 64

Adding or legalizing a unit?

Don't get started without the right team on your side.

AFTER

We remove doubt from the ADU process: • • • • • •

Feasibility Studies Financial Analysis Licensed Architect Inspection Services Multi-Family Specialists Rent and Eviction Control Experts

BEFORE

Visit adaptdwellings.com/sfaa today for a sample Feasibility Study and ADU Guide (510) 319-9045 info@adaptdwellings.com adaptdwellings.com/sfaa An Edrington & Associates Company Member, SFAA and CAA SF APARTMENT MAGAZINE | APRIL 2022

25

NOPA | Mixed-Use | $2,300,000

SOLD

FOR SALE

Valencia Street | 10 Units | $5,250,000 In association with Dan McGivern

SOLD

PENDING

Lower Pacific Heights | 11 Units | $4,000,000 In association with Matt Healy

Marina District | 9 Units | $4,400,000 In association with Gino Franco

Fantastic Buildings. Unique Transactions.

There is a unique story for each of these properties. For detailed information on these buildings, market conditions, soft story issues, or an estimate of value for your property, please call. We look forward to speaking with you.

Offices Throughout the U.S. and Canada

26

APRIL 2022 | SF APARTMENT MAGAZINE

www.MarcusMillichap.com

Specialization • Expertise • Results

FOR SALE

Twin Peaks | 6 Units | $2,850,000

FOR SALE

Marina District | 18 Units | $13,000,000

In association with Matt Healy

In association with Gino Franco & Vince Schwab

PENDING

Outer Sunset | 37 Units | $9,950,000

FOR SALE

Marina District | 18 Units | $9,600,000

In association with Nick Bonn

In association with Gino Franco & Vince Schwab

To access the investment market, contact the market leader.

Sanford Skeie

Senior Vice President Investments National Multi Housing Group (415) 625-2153 sandy.skeie@marcusmillichap.com License: CA: 00982336

Clinton Textor

Senior Vice President Investments National Multi Housing Group (415) 625-2157 clinton.textor@marcusmillichap.com License: CA: 01318639

www.MarcusMillichap.com

SF APARTMENT MAGAZINE | APRIL 2022

27

Registry Refresh

28

APRIL 2022 | SF APARTMENT MAGAZINE

Photo by Kafui Yevu on Unsplash

Wr i t t e n b y ROB E R T C OL L I N S w i t h C H R I S T I N A VA R N E R

Everything owners of residential housing units need to know before reporting unit information to the Rent Board on July 1, 2022.

SF APARTMENT MAGAZINE | APRIL 2022

29

Legislation to create a housing inventory

of the property manager, if any, des-

30 days of any change in the owner or

was passed by the Board of Supervisors

ignated by the owner(s) to address

designated property manager’s name or

and became effective on January 18, 2021.

habitability issues;

business contact information.

The legislation requires owners of residential housing units in San Francisco to begin reporting certain information about their

• The business registration number for the unit, if any;

cant part of the Rent Board’s operations going forward. Thus, there will be some

units to the Rent Board by July 1, 2022. The Rent Board will use this information to cre-

These new changes will become a signifi-

• The approximate square footage and

important changes at the Rent Board in

ate and maintain a “housing inventory” of

number of bedrooms and bathrooms

the years ahead, including some changes

all units in San Francisco that are subject to

in the unit (to the best of the owner’s or

that will probably prove helpful to rental

the Rent Ordinance.

manager’s knowledge);

property owners.

Owners will be required to report the infor-

• Whether the unit is vacant or occu-

The Rent Board will increase staffing, in-

mation each year, using a form prepared by

pied, and the date the vacancy or

cluding two information technology (IT)

the Rent Board. The Rent Board is develop-

occupancy commenced;

positions. We are now collaborating with the City’s 311 Customer Service Center,

ing a website, the Rent Board Portal (“the Portal”), which owners will use to submit

• The start and end dates of any other

which will assist with public inquiries

the required information online. Once a

vacancies or occupancies that have oc-

related to the housing inventory on a 24/7

property owner initially reports informa-

curred during the previous 12 months;

basis. 311 will help owners navigate the Portal, answer questions regarding filing, and

tion about their units, the system will maintain the information that has already been

• For tenant-occupied units, the base

explain requirements. This will allow the

submitted. In future years, owners will only

rent reported in $250 increments, and

Rent Board to utilize its existing call center

have to edit the information when changes

whether the base rent includes pay-

to manage complex questions and more

occur with the property during the year,

ment of utilities by the landlord (e.g.,

deeply assist the public.

and then again for the required annual

water/sewer, refuse/recycling, natural

reporting. Eventually, the Portal will also be

gas, electricity, etc.); and;

petitions and documents.

As explained earlier, the Rent Board is in the process of developing its Portal to al-

used for other Rent Board filings, including • Any other information that the Rent

low landlords to easily report information

Board deems appropriate following

about their units. With careful consider-

The legislation requires owners to obtain

a noticed public meeting in order

ation, we are developing the Portal to be

a license from the Rent Board before

to effectuate the purposes of the

functional and accessible, thinking toward

imposing any annual and/or banked

Rent Ordinance.

both present and future use. After the housing inventory portion of the Portal is

rent increases upon tenants. This license will only be issued when the owner is in

The Rent Board will use the information

designed and in production, the goal is to

substantial compliance with the housing

provided to generate reports and sur-

move forward with the development of a

inventory’s reporting requirements. If the

veys, investigate and analyze rents and

full-service system that will allow landlords

landlord does not provide the required

vacancies, monitor compliance with the

and tenants to file their petitions, appeals,

information to the Rent Board, the owner’s

Rent Ordinance, and assist landlords and

documents, eviction notices, and other

license to impose annual and/or banked

tenants and other City departments as

passthroughs entirely online. This should

rent increases will be suspended for the

needed. The Rent Board may not use the

make the process of managing properties a

period of noncompliance.

information to operate a “rental registry”

little bit easier.

within the meaning of California Civil If the owner informs the Rent Board that

Code Sections 1947.7 – 1947.8.

Imagine being able to see a petition decision that was filed and decided years

the unit is occupied by an owner and is not rented at any time, then no further informa-

For units (other than condominium units)

earlier, while at the same time gaining

tion will need to be reported about the unit.

in buildings of ten units or more, own-

access to tools to help calculate a fu-

If a unit is not owner-occupied because it is

ers are required to begin reporting this

ture passthrough, and then filing that

either vacant, tenant-occupied, or used for

information to the Rent Board by July 1,

passthrough online using the same web-

some other purpose, the owner will need

2022, with updates due on March 1, 2023

site—all simply wrapped up with a digital

to disclose the following additional infor-

and every March 1 thereafter. For con-

signature. The Portal can also become

mation about the unit to the Rent Board:

dominium units and units in buildings

a tool to assist landlords with calculat-

with fewer than ten units, reporting will

ing the correct petition amounts. Those

begin on March 1, 2023, with updates due

petitions and other documents will have

information (address, phone number,

every March 1 thereafter. Owners are also

instant confirmation of receipt by the Rent

email address) of the owner(s), or

required to inform the Rent Board within

Board. A confirmed copy of submissions

• The name and business contact

30

APRIL 2022 | SF APARTMENT MAGAZINE

Another Good One—Done!

SOLD

1935-1943 Hayes St Panhandle, San Francisco

$3,710,000

13 UNITS MIXED USE

LIST PRICE $4,300,000 REPRESENTED BUYER

PRICE / UNIT

$285,385 C A P R AT E

GRM

PRICE / SQ FT

$363 SQ FT

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3.89% 14.19 10,230 SF APARTMENT MAGAZINE | APRIL 2022 655 Montgomery Street, Suite 1705, San Francisco, California 94111

31

will be immediately available, and copies of submissions will be available for future use. Likewise, if the Rent Board determines that a petition is incomplete, a landlord will be able to supplement the petition online in the same way. Owners who recently acquired a property may benefit from accessing petitions and notices filed by the prior owner. These are some of the many ways the Portal will be useful to both landlords and tenants in the years to come.

We realize that this legislation creates significant new requirements for both owners and the Rent Board. We are committed to working with owners, property managers, tenants, and other members of our community to ensure that we develop our online presence in a way that is helpful to those same stakeholders. While the initial goal of the Rent Board’s new online

Ways to Connect.

Portal is the implementation of the housing inventory, our mission is to develop technological tools that are helpful to owners in managing their units, to tenants in making the Rent Board accessible, and

Email SFAA at MemberQuestions@sfaa.org to

to the agency itself in delivering services

have your questions and concerns promptly addressed,

us that it is time we moved forward and

or call the office at 415-255-2288. You can also follow the happenings of your fellow SFAA members and find out the latest in the industry by connecting with SFAA on Facebook. Search “San Francisco Apartment Association” and “Like” it to add it to your news feed.

Follow SFAA on Twitter at twitter.com/SFAptAssoc •

Email SFAA at MemberQuestions@sfaa.org

•

Connect with SFAA on Facebook

•

Follow SFAA on Twitter at twitter.com/SFAptAssoc

more efficiently. The pandemic has taught advance technological solutions at the Rent Board to catch up with what you have expected for a long time.

Stay tuned for the housing inventory phase I reporting go-live date later this spring.

Our website will be updated with further information before the legislation becomes operative on July 1, 2022 and March 1, 2023.

Please visit us at sfrb.org.

Robert Collins is the former director of the San Francisco Rent Board. Christina Varner is the acting director of the San Francisco Rent Board.

Know Your Numbers!

Turn to page 51 for updated information on allowable rent increases, security deposit interest and more.

32

APRIL 2022 | SF APARTMENT MAGAZINE

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33

The Outsource Workforce written by DA N A DU N F OR D

The emerging shift to flexible property management.

Most landlords select one of two traditional models to manage rentals. Historically, there were only two options to manage rental properties: do it all yourself (DIY) or hire a full-service property management company. While these two options have their advantages and disadvantages, many landlords find themselves defaulting to the DIY model. In fact, 72% of rental properties are self-managed in the United States today.

I’ve connected with many of these DIY landlords, and I hear the same thing over and over again: they wish a property management professional could take some things off their plates, but they still want to have an active role in managing their properties.

Most other service industries provide flexible options that fall somewhere between DIY and full service. Take, for example, the food industry. A consumer doesn’t have to choose between cooking at home or eating out at a restaurant. They can choose takeout, food delivery boxes, or an at-home chef, to name just a few options.

The good news for property management is that those types of flexible alternatives are starting to come to market, providing landlords with more options to work with licensed professionals while also retaining control of their valuable assets.

Choosing a management solution for your rental property can be a very personal decision. The best solution will probably have more to do with your personality than the type of rental property you own.

Flexible Property Management Solution Simply stated, flexible property management is holding on to the services you prefer to do, while hiring licensed professionals for everything else. Some landlords are general contractors, while others are accountants. The general contractors may want to manage rental repairs, while the accountants might be more comfortable managing rent collection and financials. Flexibility will give you the power to oversee anything you do well, while getting professionals to help with everything else.

34

APRIL 2022 | SF APARTMENT MAGAZINE

Photo by Mark Pecar on Unsplash

SF APARTMENT MAGAZINE | APRIL 2022

35

Setting Up a Flexible Management Solution

better prepared you will be for a passive

list and note the areas that you prefer to control:

Before you jump into fully optimizing

tion. SFAA also provides excellent educa-

your property management through a

tion via webinars for owners who manage

• coordinating turnover

flexible solution, make sure you have the

property specifically in San Francisco. Turn

• advertising the rental property

basics down.

to the calendar on page 50 for a schedule of

As an exercise, go through the following

• managing tenant inquiries • showing the rental property • collecting and reviewing rental applications • performing inspections • collecting rent • managing expenses

and flexible property management solu-

upcoming webinars.

First, start by adding a layer of profesThis includes everything from creating

The Top Three Things that Landlords (Should) Outsource

an LLC for your rental property to hav-

After signing a couple of leases, landlords

ing an email address and phone number

usually realize that they were overzeal-

(even a free Google voice line) for tenant

ous in regard to what they could handle,

correspondence.

and they start to seek ways to eliminate

sionalism to your property management.

headaches. In some cases, landlords jump Next, make sure that your tenants know

out of the game entirely, selling their rent-

• coordinating repairs

when and why to call you. For example, if

als. But landlords who are smart enough

• corresponding on lease questions

you opt to perform repair coordination,

to stay in the game find the necessary sup-

• renewing leases

make sure they have your professional

port to offload what they no longer want

phone number. Or, if you decide to have an-

or are capable of doing well.

• dealing with legal questions

other team support you with 24/7 repair coordination, make sure the tenants have that

We work with over 15,000 landlords na-

number and know when to call it. Setting

tionwide and follow the trends on what

these expectations is straightforward with a

property management tasks are the most

A flexible property management solution

strong lease and documented notices. (The

burdensome for rental property owners.

will take care of the tasks you prefer not

SFAA 2022 residential tenancy agreement

to do.

is now available. To access it, visit sfaa.org.

Repairs and Maintenance: The first thing

For information on 2022 Lease Review we-

Is Flexible Property Management Right for You?

that owners seek to outsource is repairs

binars, turn to the calendar on page 50.)

and maintenance. After a tenant moves out

Certain landlords have absolutely no time

Next, you’ll need to build out your team.

most landlords want to do is get on the

and do not want to be involved with their

Whether you live in San Francisco or are

ground to scrub the bathroom tiles. But,

rental properties. For those landlords, it’s a

a distant landlord, you can manage your

more importantly, it’s difficult to determine

relatively easy choice to select a full-service

rental property from anywhere with other

the cost of a tenant chargeback for cleaning

property management company. If this

professionals supporting you. Firstly, you

when the landlord doesn’t have a third-

sounds like you, make sure you do proper

should use software to help automate any-

party receipt. For various reasons, from

diligence up front, as giving up control and

thing technology does better than humans.

chargebacks to providing a professional ex-

visibility can be risky if you put the keys

Then, you’ll need to build a team of profes-

perience, most landlords look to outsource

into the wrong property manager’s hands.

sionals to support you in the tasks that you

repair and maintenance work.

• evictions

without cleaning the rental, the last thing

will not perform. For example, you may Are there any other situations where a

want a leasing agent to help find and place

Perhaps even more helpful is outsourc-

landlord should always select a full-service

tenants, or a seasoned call center to trouble-

ing the entire repair coordination process.

property manager? Yes. Suppose a rental

shoot repair requests and coordinate ser-

Landlords have found that they close 7%

property owner is unwilling to educate

vice professionals on your behalf. If you’d

more requests, before sending out a con-

themselves on tenant-landlord law or to

like more control over the cost of repairs,

tractor, by having a third-party repair coor-

learn best practices for property manage-

you should vet contractors to understand

dinator troubleshoot the issues reported by

ment. In that case, they’re exposing them-

their standard fee structure (hourly rate,

tenants. When a tenant and coordinator can

selves to risk when controlling those parts

additional fees for after-hours, markup on

get the issue fixed via a phone call or by

of the process.

repairs, etc.).

simply purchasing a new part, it saves time

We’ve found that the type of rental prop-

Finally, you will want general education

erty (e.g., size, location, etc.) does not

on property management. The Hemlane

Rental property owners also choose to

matter, as you can succeed with a flexible

Academy (resources.hemlane.com) has

outsource repair coordination because

property management solution with any

some great free tips and tools to get you

rental property.

started. The more you educate yourself, the

and money for everyone.

36

APRIL 2022 | SF APARTMENT MAGAZINE

The Outsource Workforce… continued on pg. 60

Multi-family residential property sales among top 7 brokers in San Francisco in units sold over 5 quarters* 300 250 200 150 100 50 0 — Other San Francisco Brokerages — * Unit sales volume, transaction-side sales reported to SFARMLS, 1/1/20 –3/31/21, per Broker Metrics as of 4/4/21. Sales reported to MLS: Not all sales are reported.

5+ Unit multi-family property sales in units sold over 5 quarters* among top 7 brokers in San Francisco 60 50 40 30 20 10 0 — Other San Francisco Brokerages — * Unit sales volume, transaction-side sales reported to SFARMLS, 1/1/20 – 3/31/21, per Broker Metrics as of 4/4/21. Sales reported to MLS: Not all sales are reported.

SF APARTMENT MAGAZINE | APRIL 2022

37

COLUMN

LEGAL Q&A

At a Price

incentive once the market picks up. In-

w r i t t e n b y VA R IOU S AU T HOR S

deed, if you offer a month’s free rent for

An owner who grants a rent reduction due to market conditions makes that reduction permanent.

Q. Our tenant asked us to lower market, or to entice new tenants to

a one-year term, the Rent Board will say

his rent. Rather than reduce the amount, locking us into the lower rate, we’d like to offer him a free month. Is this advisable?

A. The law is very clear on this sub-

ortized over the 12-month period of the initial one-year term, which then lowers the base rent for all future months by that amount. As one judge put it, you cannot evade rent control by setting up a lease with a starting rent higher than

sign up at an unattractive rent. About

what the current market would justify

25 years ago, a large apartment opera-

to entice tenants to sign the lease. Other

tor in San Francisco offered incoming

incentives, like substantial gift certifi-

tenants “rent coupons” for use each

cates, may draw a similar ire.

month to lessen their rental obligations.

For instance, Tenant A’s lease states

The Rent Board policy is therefore quite

ject and has recently been re-circulated

that rent is $1,200 per month, although

clear. Rent rebates or reductions may

by the Rent Board in light of the now

similar apartments were not renting at

only be lawfully rescinded, canceled,

ending COVID-19 crisis: An owner

that level. To induce Tenant A to sign

or withdrawn if the rebate or reduction

who grants a rent reduction due to

the lease at this amount, the housing

is given because of a tenant’s particular

market conditions makes that reduc-

provider offered $1,200 worth of cou-

economic need or hardship. A soft rental

tion permanent. This means that future

pons for the first year of the tenancy.

market is never a justification for a tem-

rent increases must be based on the

Consequently, Tenant A could submit a

porary reduction in rent. So, if you do

lowered amount, which automatically

$100 coupon with each monthly rental

grant a reduction or offer an incentive to

becomes the new base rent. In addition,

payment, thereby only paying $1,100

attract new tenants or keep an existing

the property owner is likely precluded

out-of-pocket per month during Year 1.

tenant from moving due to a change in the marketplace, you risk making that

from withdrawing or canceling the reduction at a later time.

This operator subsequently discon-

reduction or the value of the incentive a

tinued the coupon program when the

permanent component of base rent.

A rent reduction may only be rescinded

rental market improved. Hundreds of

or canceled if the resident has re-

affected tenants then pursued massive

quested a temporary adjustment based

litigation in protest. The Rent Board

upon an economic hardship specific to

held that, using this example of Tenant

that resident’s personal or household

A, initial base rent was legally $1,100

situation. For example, such legitimate

per month for every year of the tenancy

hardships may include the tenant being

because the discount afforded by the

laid off of work, falling ill, or encoun-

coupon incentive was to be perma-

tering unexpected expenses to care

nently built into the rental obligation

for a member of the tenant’s home. In

and could not be legally withdrawn.

those instances, the owner and resident

Accordingly, all subsequently imposed

of the type of harassment the master

should clearly document the hardship

rent increases were invalidated because

tenant is committing. If the complaints

and spell out, in a signed writing, the

they were computed off of an incor-

are not severe, you may encourage the

amount of the reduction, why the re-

rectly calculated rent.

parties to participate in some form of

duction is being granted, and the length

—Dave Wasserman

Q.

Subtenants—whom I haven’t yet had contact with— have sent emails saying the master tenant is harassing them.

I’m at a loss for what do to.

A. From your question, I am unsure

dispute resolution, such as mediation.

Other property owners have been held

If the conduct persists or is egregious,

liable when they offer a free month of

you may suggest the subtenants call

Rebates and incentives are also very

rent or engage in other gimmicks to

law enforcement or seek a restrain-

dangerous when given to dissuade

lower the resident’s initial rent ob-

ing order. Since you have been made

tenants from leaving in a weak rental

ligation, only to later take away the

aware of the circumstances, you may

of time for the reduction.

38

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need to interfere with a more formal warning notice and possibly file a lawsuit.

San Francisco’s (SF’s) Just Cause Ordinance Section § 37.9 states that you can evict a

Q.

If a long-term, rent-controlled tenant vacates when anti-pricegouging laws are in effect, how do the rules apply to re-letting?

just the same as during a wildfire or earthquake emergency.

Violations of Penal Code Section 396 can be prosecuted as a misdemeanor criminal

tenant if the tenant is committing or per-

A. Penal Code Section 396, the Califor-

mitting nuisance to exist or is creating a

nia Anti-Price Gouging law, was updated

a $10,000 fine, or both. The law also allows

substantial interference with the comfort,

in 2020 after historic wildfires to give bet-

a tenant to sue the landlord for unlawful

safety, or enjoyment of the landlord or ten-

ter guidance about how to properly price

business practices and unfair competition.

ants in the building.

housing and supplies during an emer-

offense, punishable by up to a year in jail,

gency. When the law is in effect, housing

If you are considering a large rent in-

Under SF Just Cause Ordinance, tenant is

providers should not increase the “rental

crease on an occupied or recently vacated

broadly defined to mean a person entitled

price” of units more than 10%. Unfortu-

unit, consult with an attorney and review

by written or oral agreement, sub-tenancy

nately, the new definitions of “rental price”

the below unofficial list of emergency

approved by the landlord, or by sufferance,

are not always easy to understand.

exclusion of others.

events to see if an increase may be prohibited: caloes.ca.gov/cal-oes-divisions/

to occupy a residential dwelling unit to the In this case, the apartment was occupied

legal-affairs/price-gouging.

during the emergency, and was vacated Even if you have no had direct contact

while the anti-price gouging law was in ef-

with the subtenants, if you are aware

fect. Penal Code Section 396 says that the

the subtenants have been occupying the

“rental price” would depend on whether

rental unit and are now aware of the cir-

the unit is covered by rent control or not. If

cumstances with the master tenant, the

it is, then the rent can be increased by 10%

subtenants may have dragged you into

over the greater of either the vacating ten-

the middle of this dispute. Under these

ant’s rent, OR 160% of the fair market rent

circumstances, you should take steps to

established by the United States Depart-

minimize potential liability.

ment of Housing and Urban Development (HUD) plus 5% for fully furnished units

If mediation or other dispute resolution

not previously rented fully furnished.

does not resolve the parties’ differences,

—Matthew Quiring

Q.

A tenant’s car was broken into, and he hasn’t addressed it. The vandalized car is still there, with shattered glass fragments all over the sidewalk and street. Can I ask him to clean it up?

A. Yes, you certainly should ask the resident to clean it up. He may or may not do it, but this question raises a broader

you should investigate the complaints and

For example, if the vacating tenant was

point that ought to be addressed with the

determine if the allegations are even true.

paying $3,000 for a two-bedroom unit, the

membership in these trying times. Stated

You may need to demand the master tenant

increase would be the greater of $3,300,

succinctly, if the resident fails to promptly

stop such conduct.

or 160% of the HUD Fair Market Rent plus

clean it, you must.

10%. According to HUD, the fair market When preparing such notice, look to the

rent for a two-bedroom unit in the San

Apartment operators are reminded of the

terms of the rental agreement to see if

Francisco metro area in 2022 is $3,198, so

rule here that private property owners are

the master tenant is violating any terms

160% of that would be $5,116.80, and a 10%

legally responsible for sidewalk cleanli-

of the lease. Tenants are entitled to live in

increase would be $5,628.48.

ness in front of their property. With the

conditions that do not interfere with their comfort, safety, or enjoyment.

City in pretty bad shape these days, this Therefore, a rent-controlled two-bedroom

task has become quite burdensome but is

unit in San Francisco vacated during an

nevertheless imperative. Shattered glass

If the master tenant is violating terms of

emergency could have its rent increased

from never-ending car break-ins is just

the rental agreement or the right to quiet

up to $5,628.48 without violating the

one component of what often awaits us

enjoyment, the property owner should

anti-price gouging statute. If the unit was

each morning. Litter, debris, and yes, hu-

provide the master tenant written notice

previously unfurnished, the limit would

man urine, animal/human defecation, and

of the violations and allow the master

be $5,884.32 if rented fully furnished.

needles now regularly show up in front

tenant the opportunity to cure the breach.

of our buildings on a regular basis. This

The notice should describe the breach

It is worth remembering that Penal Code

author and apartment operator believes

and how it can be cured. Before taking

Section 396 is activated automatically

that we have not just a legal obligation to

action, consult with an attorney to deter-

whenever an emergency is declared,

remove this rubbish but also a moral com-

mine the best way to address

whether or not it has any obvious or im-

pulsion as well. For starters, our tenants

this situation.

mediate impact on rental housing. That

should have a clean and safe entrance into

means that rental housing price gouging

their homes, and we certainly do not want

is prohibited during a drought emergency

them tracking in glass fragments or other

—Angelica Sandoval

40

APRIL 2022 | SF APARTMENT MAGAZINE

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Prevent Fires.

unsafe particulates. Likewise, neighboring property owners should not have to view an eyesore. Indeed, if everyone on the block does their part in maintaining sidewalk cleanliness, the neighborhood stands a chance to become or remain presentable despite the amount of people who live unhoused in our community, the record crime now plaguing the city, and the carelessness of some citizens who refuse to properly dispose of their throwaways.

According to the city’s Streets and Sidewalk Maintenance Standards Manual, property owners are responsible to ensure that sidewalks are 100% free from graffiti, 100% free from illegal dumping, 90% free from grime, leaks, and spills, and 100% free from feces, needles, glass, and condoms. You need a system in place to remove these items, regardless of where they came from.

So, please live up to your obligation to maintain the sidewalk areas in front of your buildings. Clean the glass shards promptly

Tape and Bag Lithium Batteries What should you do with old lithium batteries? A big part of the answer is clear tape. Old lithium batteries may no longer have the power to run devices, but they can still release energy though their contact points. Lithium batteries that are not taped can cause fires in collection trucks and recycling facilities, and harm workers.

• • •

Place clear tape over the contact points of used lithium batteries.

Put taped lithium batteries in a clear plastic bag, and seal it shut.

Place the bag on top of your landfill bin. Recology will collect the bag, sort the batteries, and safely ship them to companies that specialize in battery recycling.

if the tenant refuses or is otherwise nonresponsive. Admittedly, sweeping up glass is far easier than addressing human waste, graffiti, or large trash items.

SFAA has a list of associate members who can assist with professional sidewalk cleaning as well as removal of dangerous or hazardous substances (see the Preferred Vendors directory on page 52). In addition, the Department of Public Works (DPW) maintains a 311 call-in service to report illegal dumping, human waste, and other improperly disposed of items. A DPW service truck should respond to your call-in request for removal within a few days.

In sum, this is your problem and your responsibility, so you need to have a response and maintenance system in place to address what sadly has become an all-toocommon occurence in our beloved town.

—Dave Wasserman The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Dave Wasserman is with Wasserman Offices and can be reached at 415-567-9600. Angelica Sandoval and Matthew Quiring are real-estate attorneys with Fried, Williams, & Grice Conner LLP and can be reached at 510-625-0100.

42

APRIL 2022 | SF APARTMENT MAGAZINE

NEED MORE RENTAL ASSISTANCE? COVID-19 RENTAL ASSISTANCE DOESN’T HAVE TO BE A ONE-AND-DONE PROPOSITION. Q. How do I apply for additional rental assistance if I previously completed an application and received rental assistance payments, but the tenant has not recertified for additional assistance?

A. Do not submit a new application. Reapplying will slow down processing and may result in an inconsistent application status. Instead, take the following steps: Contact the Emergency Rental Assistance Program (ERAP) call center at 833-430-2122 and select “landlord” from the menu.

Ask the agent to open your application, and that the pages called “tenant information” and “submit” be reopened. If you need to update the landlord information, too, request to have that page opened as well. Log in to your account to update any information on the tenant information page—including updated rent rolls and tenant contact information. While logged in to your application, go to the “submit” page, read through the certifications, and check the appropriate boxes. Sign the application and submit.

Once this process is completed, the new submittal will act just like a new application and will trigger all the appropriate notifications.

Q. How do I apply for additional rental assistance if I did not previously complete an application, but received a rental assistance payment because the tenant applied and received the payment directly, but the tenant has not recertified for additional assistance?

A. In this situation, complete a new application for rental assistance as follows: Register for the program and initiate a new application at housing.ca.gov Complete the landlord section of the application. Under A.16, “Have you or do you intend to file for eviction against this tenant for nonpayment of rents during COVID-19?” select “Yes.” Enter the number of units for which you are potentially seeking eviction. If this is a single application for a single unit, the number will be one.

Under “tenant name,” enter the name of each tenant you are potentially seeking to evict. Enter the case ID next to the name for every tenant where you know there is a pre-existing tenant application. You are strongly encouraged to ask your tenants for case IDs to assist in this process. Entering case IDs will help administrators prevent duplicate applications and will speed up processing.

Complete the remainder of the “tenant information” section and then complete the “submit” section and submit the application.

The submittal will trigger the appropriate notifications to the tenant and the program. Although you will not be paid directly under this circumstance, you will have some insight into the application status and processing as the application moves through the process.

Q. What is the process for a tenant to recertify?

A. The tenant will receive an automated email notification informing them that it is time to recertify if additional assistance is needed. The tenant then completes and submits the recertification application.

If you participated in the original application, a program administrator will reach out to you for updated rent rolls. Payments made under this scenario will go directly to you. If you did not participate in the original application, approved payments will be made directly to the tenant. The tenant is required by law to pay the rental assistance they receive to you.

Q. What if a tenant claims a different amount owed than what I claimed on my application?

A. Program administrators will likely defer to your rent roll when evaluating the amount of rent owed. Please ensure that your records are accurate and easy for administrators to understand.

Q. How long will recertification take?

A. This is unclear, however, fewer recertification applications are pending than initial applications, so the recertification process should be shorter than the initial waiting period.

Q. Does the recertification process require the tenant to participate?

A. Yes. The federal program is based on tenant eligibility, so the tenant must participate for your reapplication to move forward.

So, if you have applied, continue to share information about the program with your tenant and encourage them to apply. Here are some suggestions: The Housing Is Key website ( housing.ca.gov ) templates for emails and letters you can share with your tenant. These materials can be found under “Renter & Landlord Resources.”

If the tenant is not responding, you could contact a Local Partner Network organization (appointment line: 833-687-0967) and explain that you need help with tenant outreach. They will try to speak to the tenant on your behalf, to build trust and confidence in the process. The Local Partner Network serves both landlords and tenants, and either may request assistance.

The above information was written by Embert P. Madison, Jr., State Advocacy and Compliance Counsel, and originally published by the California Apartment Association. Reprinted with permission.

SF APARTMENT MAGAZINE | APRIL 2022

43

COLUMN

BOARD REPORT

House in Order w r i t t e n b y E R IC R . A N DR E S E N

The power and importance of good organization.

W

purposes—but it’s just as important to keep good records to build paper trails to protect yourself. For example, if a tenant suggests that you didn’t complete

e spend so much time

Something as basic as being able to eas-

a maintenance request in a timely man-

nowadays looking

ily look up when an improvement was

ner, the surefire way to defend yourself

ahead, planning for

made (and by whom) or the last time

is to show a timeline of the tenant-land-

what may happen, and

someone inspected the fire extinguish-

lord communication, and estimates, re-

trying our best to protect ourselves from

ers can save you time, money, and po-

ceipts, or invoices to show you oversaw

the unknown. “Be prepared” has be-

tential headaches.

the project completion.

us could have imagined, and it seems to

We’re probably all already doing a few

The above is the absolute minimum.

become more important every day.

things to prepare for the worst, such as

come an adage well beyond what any of

having appropriate insurance coverage or watching the roof for leaks or signs of

cans and others around the state as an

age. And many of us set aside rainy-day

Some of us also take part in the politi-

industry leader for decades now. As a

funds as we look ahead to significant

cal, legislative, and regulatory actions

local property manager responsible for

projects or routine upgrades. We inspect

that our Association undertakes in San

almost two hundred properties, pre-

our properties so that we’re aware of

Francisco, Sacramento, other parts of

paredness has become a priority. Trying

and can plan for future projects and nec-

California, and even at the federal level.

to think ahead and predict what could

essary expenditures.

The ability to know in advance what our representatives are considering, and,

happen can be the source of nightmares. I’ve found that the best way to

The thing is, just knowing some of this

hopefully, having an impact on the po-

get prepared—and stress less about it—is

information isn’t enough. Information

tential outcome is invaluable.

to be organized. If your ducks are in a

needs to be organized to be helpful.

row, it will be that much easier for you to

Important dates need to be kept in a

Not everyone has the time or energy

handle whatever might come up.

way that you can easily and quickly ac-

to personally get involved, though.

cess them when you need them. Vendor

Donating to SFAA’s Political Action

I’ve learned it’s almost impossible

information—including the type of work

Committee (SFAA PAC) and the Califor-

to adequately prepare when I’m not

they perform and the details of your

nia Apartment Association committee

organized. When an issue arises at a

last project together—is crucial to have

(CAA PAC) are other important ways

property I manage, I need to quickly

readily available. Insurance policy data,

to prepare, because donations support

find the appropriate contacts, an emer-

especially renewal dates, must be kept

organizations that impact potential

gency vendor, and essential data. If this

organized, too. To accidentally miss a

legislation and regulation. Political

information isn’t readily available and

renewal date could be devastating down

activism is paramount nowadays; local

I have to scramble, a challenging situ-

the road—and is entirely preventable.

leadership has been throwing us tremendous challenges.

ation becomes even more challenging and stressful.

44

I urge you to go even further.

I’ve been representing San Francis-

We’re all remembering the need for accurate record-keeping right now, since

The same is true of our legal funds

The rule of preparing and organizing

it’s tax time. Sure, it’s imperative to

both at SFAA and CAA. Our best chance

applies to routine maintenance, too.

keep good records for financial and tax

of protecting our properties from

APRIL 2022 | SF APARTMENT MAGAZINE

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excessive regulatory hurdles is through the courts, and both SFAA and CAA have exceptional legal counsel and committees ready to take action when necessary.

Supporting SFAA also helps the organization provide its members with education and resources. Take advantage of all of the classes and webinars SFAA offers (see calendar on page 50) and attend the trade show (see page 45). Better yet, sponsor the trade show! The annual SFAA trade show is a fantastic event where local vendors, real estate attorneys, and rental property owners can network and make connections.

With the knowledge gained at these events, we can be in compliance, understand and prepare for future challenges, and protect ourselves and our investments.

When I have a trusted vendor for just about every possible emergency, I’m much more inclined to get a better sleep at night, too.

Many of you reading this article are licensed property managers yourselves or you’ve hired a property manager at some point to care for your property. I have been on the receiving end of that fateful audit call from the Department of Real Estate, announcing that they’ll soon be in to inspect our records. Believe me, it is not a fun process. I can’t even imagine how much worse it could be without having kept good and organized records.

The bottom line: being prepared and organized, to the best of our ability under the current circumstances, is critical. Our industry is held to very high standards, and we are expected to have answers and accurate data available on a moment’s notice. Each little step we take today, whether that’s keeping our files organized, attending SFAA classes and events, or making sure our industry representatives have what they need to support us, will make a huge difference down the line.

Eric R Andresen is a long-time member and a past president of both the SFAA and CAA boards of directors. He owns both West Coast Property Management and West Coast Property Maintenance companies in San Francisco. He can be reached at eric@wcpm.com.

48

APRIL 2022 | SF APARTMENT MAGAZINE

DONATE TO THE SFAA LEGAL FUND TODAY During the legislative process, SFAA reaches out to members of the Board of Supervisors to address points of concern, support, or opposition regarding any given legislative or policy proposal that impacts rental housing providers. On issues that are particularly harmful for property owners, like the COVID-19 Tenant Protection Ordinance, we’ll mobilize our membership in a grassroots effort to engage members of City Hall.

But oftentimes, especially in an increasingly tenant-friendly city, these proposals get voted into law anyway. During the legislative hearing on June 8, the Land Use Committee heard from hundreds of small property owners. In the legislative file, there are 6,000 pages of comments from San Franciscans, almost all from housing providers opposed to the legislation. And yet, the ordinance was approved by a vote of 10-1.

SFAA established its legal fund in 1998, and when the Board of Supervisors passes ordinances that violate our members’ rights, we have no choice but to file litigation against the city. In recent years, we’ve seen a pattern of laws being passed that don’t consider or address the perspectives of housing providers. We ask that you donate to the SFAA Legal Fund today.

Please write a check to the “SFAA Legal Fund” and mail it to the SFAA office at 265 Ivy Street, San Francisco, CA 94102 to support this effort and to help build the legal fund to function as a deterrent against future harmful proposals.

Passthroughs

PAY! Take advantage of the Rent Board rules that benefit you.

We prepare petitions for • Soft Story/Voluntary Seismic • General Capital Improvements • Operating and Maintenance and also • Annual Increase letters • General and Water Bond Passthroughs We have 18 years of experience and have filed hundreds of successful passthroughs.

Call us today at

415-333-8005

to find out how you can benefit.

extra extra

READ ALL ABOUT IT

In San Francisco, managing and owning rental property can be a tough business. Keep your manager up to date with the latest news, legislation, trends and analysis of the industry. SFAA members can now send their managers or friends SF Apartment Magazine for only $84 a year.

Subscriptions must be registered and billed to an SFAA member.

Sign up today!

Online: sfaa.org/membership Phone: 415-255-2288

SF APARTMENT MAGAZINE | APRIL 2022

49

sfaa 2 2022calendar

sfaa

April

MONDAY, APRIL 4 Board of Directors Mtg. 11:30 a.m.

TUESDAY, APRIL 5 Estate Planning Webinar Zoom Webinar System 1:00 p.m. to. 2:00 p.m.

Members $45 Non Members $65

WEDNESDAY, APRIL 6 SFAA Online Lease Demonstration Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Free for Members

WEDNESDAY, APRIL 6 Lunch & Learn Application & Screening Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

THURSDAY, APRIL 7 Intellirent Demonstration Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Free for Members

FRIDAY, APRIL 8 New Rent Control Laws Webinar Zoom Webinar System 10:00 a.m. to. 12:00 p.m.

Members $45 Non Members $65

WEDNESDAY, APRIL 13 Lunch & Learn Offers, Concessions, ADA Law & Section 8 Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

THURSDAY, APRIL 14 Asset Protection for Properties Webinar Zoom Webinar System 1:00 p.m. to. 2:00 p.m.

Members $45 Non Members $65

WEDNESDAY, APRIL 20 Virtual Member Meeting Tenant Attorney Panel 9:00 a.m.

WEDNESDAY, APRIL 20 Lunch & Learn Notices Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

THURSDAY, APRIL 21 Managing Tenants to Avoid Liability Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $65 Non Members $95

WEDNESDAY, APRIL 27 Lunch & Learn Lease Review Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

SFAA offices will be closed on May 31st in observance of Memorial Day.

FRIDAY, APRIL 29 New Unit Registration & Licensing Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Members $45 Non Members $65

May MONDAY, MAY 2 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, MAY 4 Lunch & Learn Addendas Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

FRIDAY, MAY 6 Evictions Update Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Members $45 Non Members $65

WEDNESDAY, MAY 11 Lunch & Learn Move In Checklist Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

TUESDAY, MAY 17 Buying Property in Your IRA Webinar Zoom Webinar System 11:00 a.m. to. 12:00 a.m.

Members $45 Non Members $65

WEDNESDAY, MAY 18 SFAA Online Lease Demonstration Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Free for Members

WEDNESDAY, MAY 18 Lunch & Learn Annual Increases Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

WEDNESDAY, MAY 25 Lunch & Learn Capital Improvements Webinar Zoom Webinar System 12:00 p.m. to. 1:00 p.m.

Members $45 Non Members $65

FRIDAY, MAY 27 New Unit Registration & Licensing Webinar Zoom Webinar System 10:00 a.m. to. 11:00 a.m.

Members $45 Non Members $65

50

APRIL 2022 | SF APARTMENT MAGAZINE

SFAA MEMBER MEETINGS ARE HELD VIRTUALLY DUE TO COVID-19. FOR TOPICS AND SCHEDULES, VISIT SFAA.ORG.

join online at sfaa.org or call 415.255.2288

2022 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$29.50

Chapter 37A of San Francisco’s Administrative Code allows the city to collect a per-unit fee for each residential dwelling unit that is subject to the San Francisco Rent Ordinance. This fee defrays the entire cost of operation of the Rent Board.

This fee is billed to the landlord each year on the property tax statement sent in November, but the law permits landlords to collect a portion of the Rent Board fee from those tenants in occupancy as of November 1 of each year. A landlord is allowed to collect 50% of the cost of the fee from the tenant. If you have not collected Rent Board fees in the past, you can collect back to 1999.

ALLOWABLE RENT BOARD FEE COLLECTABLE FROM TENANTS 2021-2022

$29.50

CAPITAL IMPROVEMENTS

SFAA’S

TENANT SCREENING SERVICE

The capital improvement interest rates for 3/1/21 through 2/28/22 are listed below:

THROUGH INTELLIRENT STEP 1:

Create a free account at sfaa. myintellirent.com/agent-signup.

STEP 2:

Invite an applicant to apply via an online application customized to SFAA’s criteria.

You can also publish your available rental on Intellirent across mulitple ILSs. RATES

Intellirent is your free, online rental application and property marketing tool, partnered with Transunion to instantly return complete credit reports and nationwide eviction notices.

Renters pay the $40 application fee, which covers your costs.

For more information, simply create your free account or go to sfaa.org and choose the “Resources” tab. Then select “Tenant Screening.”

Please note that the maximum you can charge a tenant for screening services is $49.12.

AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

0.8%

.01225

10 YEARS

1.0%

.00876

15 YEARS

1.2%

.00607

20 YEARS

1.4%

.00478

INTEREST ON DEPOSITS Deposits include all tenant monies that the owner holds, regardless of what they are called. At the landlord’s option, the payment may be made directly to the tenant or by allowing the tenant to deduct the amount of interest due from the rental payment.

INTEREST ON DEPOSITS PERIOD

AMOUNT

03/01/22 - 02/28/23

0.1%

03/01/21 - 02/28/22

0.6%

03/01/20 - 02/28/21

2.2%

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

2020-2021

$25.00

2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

03/01/17 - 02/28/18

0.6%

$18.00

03/01/16 - 02/28/17

0.2%

03/01/15 - 02/29/16

0.1%

03/01/14 - 02/28/15

0.3%

03/01/13 - 02/28/14

0.4%

03/01/12 - 02/28/13

0.4%

03/01/11 - 02/29/12

0.4%

2014-2015 2013-2014

$14.50

2012-2013

$14.50

CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

2011-2012

$14.50

2010-2011

$14.50

2009-2010

$14.50

03/01/10 - 02/28/11

0.9%

2008-2009

$14.50

03/01/09 - 02/28/10

3.1%

2007-2008

$13.00

03/01/08 - 02/28/09

5.2%

2006-2007

$11.00

03/01/07 - 02/29/08

5.2%

2005-2006

$10.00

2004-2005

$11.00

2003-2004

$21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

ALLOWABLE RENT INCREASES

2022 – 2023: 2.3%

Effective March 1, 2022, through February 28, 2023, the allowable annual rent increase is 2.3 %.

This amount is based on 60% of the increase in the Consumer Price Index for all urban consumers in the Bay Area. A history of all allowable increases and their effective periods is provided.

ALLOWABLE RENT INCREASES PERIOD

AMOUNT

03/01/22 - 02/28/23

2.3%

03/01/21 - 02/28/22

.7%

03/01/20 - 02/28/21

1.8%

03/01/19 - 02/29/20

2.6%

03/01/18 - 02/28/19

1.6%

03/01/17 - 02/28/18

2.2%

03/01/16 - 02/29/17

1.6%

03/01/15 - 02/29/16

1.9%

03/01/14 - 02/28/15

1.0%

03/01/13 - 02/28/14

1.9%

03/01/12 - 02/28/13

1.9%

03/01/11 - 02/29/12

0.5%

03/01/10 - 02/28/11

0.1%

03/01/09 - 02/28/10

2.2%

03/01/08 - 02/28/09

2.0%

03/01/07 - 02/29/08

1.5%

03/01/06 - 02/28/07

1.7%

SAN FRANCISCO RENT BOARD 25 Van Ness Avenue #320 San Francisco, CA 94102 415-252-4600 www.sfgov.org/rentboard

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

& information SF APARTMENT MAGAZINE | APRIL 2022

51

SFAA Professional Services Directory

1031 TAX DEFERRED EXCHANGE SERVICES

LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com SEQUENT Eric Scaff (415) 834-1031 sequent-rewm.com escaff@sequent-rewm.com

ACCOUNTANTS

SHWIFF, LEVY & POLO LLP Elizabeth Shwiff 415-291-8600 x232 www.slpconsults.com

ALARM COMPANY

AEC ALARMS Stephanie Chen 408-298-8888 Ext: 121 sc36@aec-alarms.com

ARCHITECTURE

OPENSCOPE STUDIO ARCHITECTS Mark Hogan 415-891-0954 www.openscopestudio.com Q ARCHITECTURE Dawn Ma www.que-arch.com

415-695-2700

ASSOCIATIONS

PROFESSIONAL PROPERTY MANAGEMENT ASSOCIATION Renee A. Engelen www.ppmaofsf.org renee@hrhrealestate.com

ATTORNEYS

415-861-8800

ILENE M. HOCHSTEIN, ATTORNEY AT LAW Ilene Hochstein (650) 877-8288 ilene@hochsteinlaw.net KAUFMAN, DOLOWICH, VOLUCK Ashley Klein 415-926-7612 aklein@kdvlaw.com LAW OFFICES OF FRANCISCO GUTIERREZ Francisco Gutierrez 415-805-6508 francisco@gtzlegal.com LAW OFFICE OF MICHAEL HEATH Michael Heath 415-931-4207 Mheath_law@sbcglobal.net LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net LAW OFFICE OF JULIANA E. PISANI Juliana Pisani 415-800-7562 Juliana@jpisanilaw.com LAW OFFICES OF LAWRENCE M. SCANCARELLI Lawrence M. Scancarelli 415-398-1644 www.sfrealestatelaw.com THE LAW OFFICE OF ED SINGER Edward Singer 650-393-5862 www.edsinger.net

BARTH CALDERON, LLP Paul Hitchcock Paul@barthattorneys.com

415-577-4685

LAW OFFICE OF KEVIN P. GREENQUIST Kevin Greenquist 415-977-0444x234 www.ztalaw.com

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law

415-409-7611

MASTROMONACO REAL PROPERTY LAW GROUP Leonard Mastromonaco 415-354-2702 len@mastrolawgroup.com

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070 KIMBALL, TIREY & ST. JOHN LLP Kelli Dodson 800-525-1690 kelli.dodson@kts-law.com www.kts-law.com FRIED, WILLIAMS & GRICE CONNOR Clifford E. Fried 415-421-0100 www.friedwilliams.com HAAS NAJARIAN LLP Eric Murphy (415) 788-6330 emurphy@hnattorneys.com

52

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

APRIL 2022 | SF APARTMENT MAGAZINE

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com NIVEN & SMITH Leo M. LaRocca leo@nivensmith.com

415-981-5451

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com

STEVEN ADAIR MACDONALD & ASSOCIATES, PC Steven Adair MacDonald (415) 956-6488 www.samlaw.net sam@samlaw.net WASSERMAN Dave Wasserman 415-567-9600 Dave@wassermanoffices.com www.davewassermansf.com WIEGEL LAW GROUP Andrew J. Wiegel www.wiegellawgroup.com

415-552-8230

ZACKS, FREEDMAN & PATTERSON, P.C. Andrew M. Zacks 415-956-8100 www.zfplaw.com ZANGHI TORRES ARSHAWSKY, LLP John P. Zanghi 415-977-0444 www.zatlaw.com

BEDBUG DETECTION

CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com PREMIER CANINE DETECTION Jordan Garcia 415-612-6645 www.premiercaninedectection.com

COMMERCIAL/RETAIL LEASING SERVICES BLATTEIS REALTY CO. David Blastteis www.sfretail.net

415-981-2844

CONSULTANTS: PERMITS & PLANNING

EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

CORPORATE RENTALS AMSI Robb Fleischer www.amsires.com

415-447-2020

GOROVERGO Laura Ericson 832-977-6830 laura.ericson@echemail.com www.gorovergo.com

CREDIT REPORTING

INTELLIRENT Cassandra Joachim www.myintellirent.com

415-849-4400

DRAIN SERVICES

PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com

ENVIRONMENTAL CONSULTING

P.W. STEPHENS ENVIRONMENTAL Sheri Buenz 510-651-9506 sherib@pwsei.com

FIRE ESCAPE INSPECTION & MAINTENANCE

BAY AREA CHIMNEY & FIRE ESCAPE INSPECTIONS Jerry Charton 415-333-5509 jerrycharton11@gmail.com ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

GREAT ESCAPE SERVICES Rich Henderson 415-566-1479 www.greatescapeservice.com

FIRE PROTECTION CONTRACTORS AEC ALARMS

408-298-8888 Ext: 121 SFfire@aec-alarms.com BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com EMERGENCY SYSTEMS, INC. Eric Hagerman (415) 564-0400 esmfire@earthlink.net MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com

GARBAGE COLLECTION SERVICES

RECOLOGY GOLDEN GATE RECYCLING Minna Tao 415-575-2423 recologysf.com RECOLOGY SUNSET SCAVENGER Dan Negron 415-330-2911 recologysf.com

INSURANCE COMPANIES

GORDON ASSOCIATES INSURANCE SERVICES Dave Gordon, CLU 650-654-5555x6972 David.gordon@gordoninsurance.com

INTERNET SERVICES PROVIDERS

COMCAST/XFINITY Michael Juliano www.xfinity.com

LENDING / FINANCIAL SERVICES FIRST FOUNDATION BANK Michelle Li www.ff-inc.com

415-794-2176

LENDING / FULL SERVICE BANKS

LUTHER BURBANK SAVINGS Gabriel Basso 510-601-2400 www.lutherburbanksavings.com

LENDING / INSTITUTIONS

CHASE APARTMENT LENDING Andre C. Ferrigno 415-644-2171 CHASE COMMERCIAL TERM LENDING Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking CHASE COMMERCIAL LENDING Ingrid Marlow 650-737-6212

LOCKSMITHS

CROWN LOCK & HARDWARE Joe Schoepp 415-221-9086 WARMAN SECURITY Peter Badertscher www.warmansecurity.com

415-775-8513

MAINTENANCE REPAIR SERVICE

MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

MEDIATION

FETCH Dan Beary 978-503-9540 dbeary@fetchpackage.com

PAINTING CONTRACTORS KRUITPAINTING, INC. Pieter Kruit www.kruitpainting.com

415-254-7818

PAC WEST PAINTING INC. Brian Beaulieu 415-457-0724 www.pacwestpaintinginc.com PETERS PAINTING SERVICES Peter Pantazelos 415-647-4722 www.peterspainting.com TARA PRO PAINTING INC. Brian Layden www.tarapropainting.com

415-334-3277

PAINTING SUPPLIES

DUNN-EDWARDS PAINTS Daniela Franco 415-656-9951 daniela.franco@dunnedwards.com

PEST CONTROL

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com THERMAL SOLUTIONS Jeremy Bedford (925) 381-6426 office@thermalsolutionspc.com

PLUMBING & HEATING

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com R & L Plumbing R & L PLUMBING Larry Bustillos 415- 651-4977 larry@rl.plumbing www.rlplumbingsanfrancisco.com

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Scott Goering 415-782-8940 sgoering@sfbar.org

URGENT ROOTER AND PLUMBING INC. Albert Lee 415-387-8163 urgentrtr@sbcglobal.net

ONLINE PAYMENT SERVICES

CREATIVE WEALTH CAPITAL MichaelGallin mike@creativewealthcapital.com

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com

IMANAGE RENTS Hatef Maoghimi hatef@imanagerent.com wwwimanagerent.com

BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com

ROOST Chanin Balance chanin@joinroost.com

COMMERCIAL COVERAGE INSURANCE AGENCY Paul Tradelius 415-436-9800 www.comcov.com

925-495-9922

PACKAGE SERVICE

415-547-0049

(503) 888-2528

PROJECT MANAGEMENT PROPERTY MANAGEMENT

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com ALEXANDERSON PROPERTIES Eric Alexanderson 415-285-3737 www.alexandersonproperties.com

SF APARTMENT MAGAZINE | APRIL 2022

53

AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com AYS MANAGEMENT Kevin Newsome 510-708-0165 ayspropertymanager@gmail.com BEAM PROPERTIES, INC. Darius Chan darius@sfbeam.com

415-254-8679

BORN PROPERTY MANAGEMENT Jason Born 650-271-7048 x 111 Jason@bornpm.com BERENDT PROPERTIES Craig Berendt craig.berendt@gmail.com

415-608-3050

BROOKFIELD PROPERTY GROUPPRESIDIO LANDMARK Jon King 855-327-5376 jon.king@brookfieldproperties.com

EMBC Nancy Wong www.ebmc.com nancywong@ebmc.com

CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com

EQUITY ONE Brenda M. Obra www.equity1sf.com

CREATIVE WEALTH CAPTIAL Michael Gallin 415-779-6241 mike@creativewealthcapital.com

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com

DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com

415-221-2032

GEORGE GOODWIN REALTY, INC. Chris Galassi 415-681-1265 www.goodwin-realty.com

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

GREENTREE PROPERTY MANAGEMENT Scott Moore 415-828-8757 www.greentreepmco.com

property management The following members are SFAA Property Management Members. They fully support the organization and are dedicated to SFAA’s goals. For more information about the benefits of becoming a Property Management Member, contact Maria Shea at maria@sfaa.org or 415-255-2288 x 10.

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com

PAUL LANGLEY COMPANY Misha Langley 415-431-9104 x 301 misha@plco.net

AMERICAN MARKETING SYSTEMS INC. Robb Fleischer 415-447-2020 www.amsires.com

PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

CECCHINI REALTY CO. Dante Cecchini, CCRM www.cecchinirealty.com

PROGRESSIVE PROPERTY GROUP Dace Dislere & Joe Gillach 415-515-4329

415-550-8855

CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF William Talmage www.dewolfsf.com

415-221-2032

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com GREENTREE PROPERTY MANAGEMENT 415-828-8757 www.greentreepmco.com HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456 LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

54

415-648-1516

415-441-1200

GM GREEN REAL ESTATE INC. George Green 415-608-6485 ggreen@gmgreen.com www.gmgreen.com GORDON CLIFFORD PROPERTIES, INC. Patrick Clifford 415-613-7694 patrick@gcpropertiessf.com HOGAN & VEST INC. Simon Wong hoganvest.com

415-421-7116

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JACKSON GROUP PROPERTY MANGEMENT, INC. Raymond Scarabosio 415-608-8300 ray@jacksongroup.net JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net

JD MANAGEMENT GROUP, INC. Jonathan Davis 510-387-7792 jonathan.davis@jdmginc.com

REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com

LINGSCH REALTY Natalie M. Dress www.lingschrealty.com

415-648-1516

S&L REALTY Robert Link www.slrealty-sf.com

MERIDIAN MANAGEMENT GROUP Randall Chapman 415-434-9700 www.mmgprop.com

415-386-3111

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.sutroproperties.com VERTEX PROPERTY GROUP Craig Berendt 415-608-3050 vertexsf.com WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

members APRIL 2022 | SF APARTMENT MAGAZINE

(707) 584-5123

MICSPACES, INC. Naeem Farhokhnia naeem@mlcspaces.com

818-404-8996

MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com OPEN WORLD PROPERTIES Jonathan Daryl Fleming 510-250-0946 jonathan@openworldproperties.com www.Openworldproperties.Com PAUL LANGLEY COMPANY Misha Langley 415-431-9104 x 301 misha@plco.net PILLAR CAPITAL REAL ESTATE Jonathan Ng (415) 885-9584 jonathan@thepillarcapital.com

PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

WOOD PARTNERS Melissa Rankin 628-251-1101 melissa.rankin@woodpartners.com

PRIME METROPOLIS PROPERTIES, INC. Tom Chan 415-731-0303 tomchan@pmp1988.com

YMPG Yelena Gelzer 415-260-6325 yglezer@ympg-management.com

PROEQUITYAM Frank Bumbalo frank@proequityam.com

PROPERTY MANAGEMENT SOFTWARE

415-531-2669

PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com ROCKAWAY RESIDENTIAL MANAGEMENT Kristine Abbey 650-290-3084 www.rockawayresidential.com ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com RNB PROPERTY MANAGEMENT GOLDEN GATE Kaveh Gorgani 415-413-3827 kaveh@rnbemail.com www.rnbgoldengate.com SAN FRANCISCO RENTAL CONCIERGE Danielle Mahoney 415-532-0041 danielle@sfrentalconcierge.com www.sfrentalconcierge.com SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com SIGNATURE REALTY PROPERTY MANAGEMENT Paul Montalvo 650-364-3167 paul@paulmontalvo.com SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com SKYLINE PMG, INC. Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.SutroProperties.com THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.com W. PROPERTY MANAGEMENT Gary Petrison 707-545-6187 gary@wpropertymanagement.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com WEST & PRASZKER REALTORS Michael Klestoff 415-699-3266 www.wprealtors.com

APPFOLIO Mindy Sorenson 805-364-6098 mindy.sorenson@appfolio.com HEMLANE, INC. Dana Dunford dana@hemlane.com

385-355-4361

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

REAL ESTATE APPRAISALS MARK WATTS COMMERCIAL APPRAISAL Mark Watts 415-990-0025 www.markwattscommercialappraisal.com

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BERKSHIRE HATHAWAY FRANCISCAN PROPERTIES Edward Milestone 415-994-5969 MilestoneRealEstateSF@gmail.com BIG TREE PROPERTIES Evan Matteo 415-305-4931 evan@bigtreeproperties.com COLDWELL BANKER COMMERCIAL NRT Steven Caravelli 415-229-1367 steven.caravelli@cbnorcal.com COLLIERS INTERNATIONAL- JAMES DEVINCENTI James Devincenti 415-288-7848 www.THEDLTEAM.com

EXP COMMERICAL Jeremy Williams 415-932-9846 jeremy@jeremywilliams.com www.sfcommercialrealty.com FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com ICON REAL ESTATE INC. Jason Quashnofsky jason@iconsf.com

(415) 370-7077

KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582 LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

415-717-8709

MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com MORGAN REAL ESTATE ADVISORS, INC. Laurence Morgan 415-300-6503 laurence@morganrealestateadvisor.com www.morganrealestateadvisor.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com W. REAL ESTATE Tim Mueller 415-961-6531 timothymueller@hotmail.com WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com

COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad

VANGUARD COMMERCIAL Allison Chapleau 415-516-0648 allison@allisonchapleau.com www.allisonchapleau.com

COMPASS COMMERCIAL BROKERAGE John Antonini 415-794-9510 john@antoninisf.com

ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

COMPASS COMMERCIAL BROKERAGE Chris J. Connor chris.oconnor@compass.com

REAL ESTATE INVESTMENTS

COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com COMPASS COMMERCIAL BROKERAGE John Kirkpatrick (425) 412-0559 john.kirkpatrick@compass.com www.johnkirkpatrick.com COMPASS COMMERCIAL BROKERAGE Jay Greenberg (415) 378-6755 jay@jayhgreenberg.com CORCORAN GLOBAL LIVING COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com

COMPASS COMMERCIAL BROKERAGE Trigg Splenda 415-593-8616

MARCUS MILLICHAP Clinton C. Textor III 415-425-9123 www.marcusmillichap.com

REFINISHING / RESURFACING SERVICE

MIRACLE METHOD OF SAN FRANCISCO Claire Gray 415-673-4211 www.miraclemethod.com

RENT BOARD PETITIONS

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net

SF APARTMENT MAGAZINE | APRIL 2022

55

sfaa sfaa 2022 membership application

Thank you for joining the San Francisco Apartment Association. SFAA is dedicated to educating, advocating for and supporting the Rental Housing Community so that its members operate ethically, fairly and profitably. Please consult a tax preparer in advance to determine deductibility for your tax situation. Membership fees are subject to change.

MEMBERSHIP LEVEL & COST

Units

Base Fee

Units Fee

$425 +

$7 per unit =

23 +

$380 +

$9 per unit =

TOTAL UNIT AMOUNT:

TOTAL AMOUNT:

Base Fee

1-22

$525 +

$4.50 per unit =

$480 +

$6.50 per unit =

TOTAL UNIT AMOUNT:

(844) 459-1495

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

949-702-1508

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com GORDON CLIFFORD PROPERTIES, INC. PatrickClifford 415-613-7694 patrick@gcpropertiessf.com

TOTAL AMOUNT:

ASSOCIATE MEMBER DUES: $499

HAMILTON FAMILY CENTER Mayo Lunt 510-763-8540 x230 www.hamiltonfamiles.org

CONTACT INFORMATION Contact Person

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

Company/Title Address City

State

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

Zip

Mobile Phone Email Address

Amex

MC

Visa

415-509-3456

KENNEY AND EVEREST REAL ESTATE, INC. Maureen Kenney 415-929-0717 maureen@kenneyrealestate.com

Website PAYMENT METHOD

Check

COSTAR Aj Herlitz www.costargroup.com aherlitz@costar.com

RESIDENTIAL LEASING

Unit Fee

23 +

RENTAL LISTING SERVICES

ZUMPER, INC. Connor Hodges connor@zumper.com www.zumper.com

MANAGEMENT COMPANY DUES Units

RENT BOARD PASSTHROUGHS Kim Boyd Bermingham 415-333-8005 www.rentboardpass.com

REALPAGE Stacey Blackwell 972-820-3015 stacey.blackwell@realpage.com www.realpage.com

REGULAR MEMBER DUES

1-22

REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com

3 Digit Security Code

Card #

Expiration Date

Cardholder Name

Billing Zip Code

Authorized Signature

Date HOW DID YOU HEAR ABOUT US?

Referral From

Postcard/Mailer

Magazine

Website

Rent Board

Other

LINGSCH REALTY Natalie M. Drees www.lingschrealty.com RELISTO Eric Baird www.relisto.com eric@relisto.com

415-648-1516

415-236-6116, x101

RENTALS IN S.F. Jackie Tom www.rentalsinsf.com

415-409-3263

RENTSFNOW Claussen kclaussen@veritasinv.com

415-762-0213

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

SECURITY

San Francisco Apartment Association 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

56

APRIL 2022 | SF APARTMENT MAGAZINE

ADT SECURITY MULTIFAMILY Jeanette Mendez (817) 776-0301 jjmendez@adt.com TRKA AMERICAS Isabella Restrepo irestrepo@trakausa.com

407-735-1728

SECURITY DEPOSIT ALTERNATIVES THE GUARANTORS Jules Thetford jules@theguarantors.com

214-403-2792

SEISMIC RETROFIT & STRUCTURAL ENGINEERING THE GUARANTORS Jules Thetford jules@theguarantors.com

214-403-2792

BAI CONSTRUCTION Behnam Afshar 510-595-1994, x101 www.baiconstruction.com W. CHARLES PERRY Charles Perry www.wcharlesperry.com

650-638-9546

WEST COAST PREMIER CONSTRUCTION, INC. Homy Sikaroudi, PhD, PE 510-271-0950 www.wcpc-inc.com

SUBMETERS

LIVABLE Daniel Sharabi www.livable.com

415-937-7283

TENANT PLACEMENT & LISTING

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

WATER CONSERVATION SERVICE

SF PUBLIC UTILITIES COMMISSION Chandra Johnson 415-554-0704 www.conserve.sfwater.org

WATER DAMAGE SERVICE

FIRE AND WATER DAMAGE RECOVERY Maria Neumann 800-886-1801 www.waterdamagerecovery.net

WATERPROOFING

KELLEY PAINTING AND WATERPROOFING Mitchell Kelley 415-847-7883 www.kelleypaintingandwaterproofing.com

ad index NEED A PROFESSIONAL

CONTRACTOR OR VENDOR?

ALARM COMPANIES

AEC Alarms

ARCHITECTURE & DESIGN SERVICES

Adapt Dwellings Openscope Studio ATTORNEYS

Dowling & Marquez, LLP Fried, Williams & Grace Conner LLP Kaufman, Dolowich & Voluck Rhino Process Serving, LLC Zacks, Freedman & Patterson, PC BANKING & LENDING SERVICES

Luther Burbank Savings CONTRACTORS

Pribuss Engineering FIRE ESCAPE CONTRACTORS

Great Escape Fire Escape LOCKSMITHS

Crown Lock & Safe Warman Security PAINTING CONTRACTORS

Colores Painting Pac West Painting Tara Pro Painting

PETITION SERVICES

Rent Board Passthroughs

West Coast Property Management 41

PROPERTY MANAGEMENT SOFTWARE

Yardi Breeze 25 46 61 59 58 10 47 49 65 64

10 65 64

19

REAL ESTATE BROKERS

Amore Real Estate 61 Coldwell Banker Commercial / McGue 13 Colliers / Devincenti 2 Compass / Antonini 67 Compass / Bonn & Webb 17 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Pugh 41 Corcoran / The Jones Team 15 HRH Real Estate 62 Kay Properties 33 Marcus & Millichap 26-27 Newmark / Sheridan 31 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 32 UTILITIES BILLING SERVICES

Livable 48 65

62

59

Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by SFAA, express or implied, of the advertiser or any goods or services offered. Advertisers in red are Associate Members of SFAA.

32

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Gaetani Real Estate, Inc. Maven Maintenance Real Management Company Rentals in SF Structure Properties Vertex Properties

68 39 47 46 12 6

SF APARTMENT MAGAZINE | APRIL 2022

57

Sacramento Report… continued from page 18

attempts to change a law important to owners in strict rent control communities.

AB 2527 CAA stopped AB 2527, legislation that

Founded 35 years ago, Kaufman, Dolowich & Voluck is an internationally recognized litigation firm, meeting the diverse demands of our clients.

The Bay Area’s complicated and fast-moving real estate industry presents property owners with exceptional opportunities and challenges. KDV’s real estate practice provides a full spectrum of services, allowing clients to rely on one firm for all of their real estate needs.

would have prohibited landlords from using credit reports as part of the tenantscreening process. At the request of CAA, Assemblymember Sharon Quirk-Silva (DFullerton) agreed to shelve the proposal.

AB 2527 would have prohibited property owners from asking about anything that would be included in a report, such as payment history or evictions.

Ashley E. Klein

“A credit report is the primary tool a rental

Managing Partner of San Francisco Office Co-Chair of Real Estate Practice Group

property owner has to make the most ob-

Ashley E. Klein represents clients ranging from real estate investment trusts, homeowners in wrongful eviction defense, unlawful detainer, and property management matters. She counsels Bay Area homeowners about their rights and options under the SF Rent Ordinance, statewide rent control regulations and the Costa-Hawkins Rental Housing Act.

opposition letter.

Landlord-Tenant Disputes

A. Jeanne Grove

Managing Partner of Sonoma Office Co-Chair of Real Estate Practice Group HOA Disputes

A. Jeanne Grove focuses her practice on real estate and business litigation, including HOA and co-ownership issues, purchase/sale disputes and nondisclosure claims, and boundary, title, development, and construction matters. She has 15 years of experience in mediation and arbitration, as well as all phases of civil litigation, from the pleading stage to trial and post-trial proceedings.

Laura L. Campbell Attorney

Land Use Disputes Laura L. Campbell has extensive experience in landlordtenant litigation. She represents clients in breach of contract matters, quiet title actions, unlawful detainer lawsuits, tenant buy-out negotiations, and property management resolutions.

She specializes in SF Rent Board matters, and routinely handles lot splits, mergers public hearings, zoning issues and ADU permitting.

jective determination about the ability of a potential tenant to pay the rent,” says a CAA

While AB 2527 is off the table, two other bills that take aim at using credit reports during tenant screening remain at play: AB 2203 by Assemblymember Luz Rivas (D-San Fernando Valley), and SB 1335 by Senator Susan Eggman (D-Stockton). These bills, however, would be limited to instances involving a government rent subsidy. Stay tuned for updates on these proposals and ways you can help CAA’s opposition.

For more information, visist caanet.org Debra Carlton is the Executive Vice President of State Government Affairs and Compliance at the California Apartment Association. Mike Nemeth is the Director of Communications at the California Apartment Association.

Go Online!

San Francisco, CA Office 425 California Street, Suite 2100 • San Francisco, CA 94104 (415) 926-7600 • aklein@kdvlaw.com Sonoma, CA Office 19327 Sonoma Highway, Suite 100 • Sonoma, CA 95476 (707) 509-5260 • jgrove@kdvlaw.com • lcampbell@kdvlaw.com

58

APRIL 2022 | SF APARTMENT MAGAZINE

Find more information on SFAA classes, apartment industry news & excerpts from SF Apartment Magazine at www.sfaa.org

If Only Your ADU Could Bill Itself...

Now it can!

Join Livable and never worry about pro-rata utility billing again.

Go to: www.livable.com/SFAA to Learn More!

SF APARTMENT MAGAZINE | APRIL 2022

59

sfaa sfaa 2022 What You Need to Know

The Outsource Workforce… cont. from pg. 36

of the 24/7 nature of emergencies. When an emergency arises, the tenant calls the fire department, police department, or the landlord. A tenant calls the landlord when the emergency relates to a home repair, such as an active water leak or no air conditioning in sweltering weather. As much as a landlord can avoid being available 24/7, the better. A repair coordina-

2022 SFAA UPDATES

VIRTUAL MEMBER MEETING WEDNESDAY, APRIL 20 9:00 A.M.

tion team will provide around-the-clock professional support.

Rental Showings: The second task that landlords seek to outsource is rental showings to prospective tenants. Many rental property owners have limited time, and visiting a property multiple times in a week can be disruptive, especially when tenants

ANNUAL SPRING TRADE SHOW “In Person” THURSDAY, MAY 12 2:00 P.M. TO 5:30PM Fort Mason Center 2 Marina Blvd, Gallery 308

reschedule or cancel showings. For this reason, landlords seek to find a leasing agent or a safe keyless entry system (designed for tenant properties). This cuts down on lost time and inefficiencies of misaligned calendars. It’s important to note that many landlords still like to meet the qualified tenants who have been accepted into their rental, but they don’t have to host every in-

UPCOMING CLASSES During the pandemic, the monthly SFAA member meetings and classes will be held virtually. For member meeting topics and schedules, go to www.sfaa.org. For a list of virtual SFAA classes, turn to the calendar on page 50.

person showing.

Evictions: The final task that landlords outsource is evictions. The eviction process is incredibly emotional and can cause immense anxiety. Some landlords use a process server to post their notices, reducing

SFAA OFFICE CLOSURE While the SFAA office remains closed to the public, staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you. Email MemberQuestions@sfaa.org to have your questions and concerns promptly addressed.

overall fees, while other landlords use an attorney to help them through the entire process. This is a time when a landlord is not getting their passive income and dealing with a situation where their asset may be damaged. While it’s important to avoid this situation through proper screening measures and communication, it’s best to outsource the necessary proceedings in the rare instance that you are dealing with an eviction.

About Hemlane Hemlane, a San Francisco company, launched in 2015. We offer flexible prop-

San Francisco Apartment Association 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

erty management solutions for owners to find and place tenants and manage tenant relationships. Hemlane provides a plugand-play service to give landlords freedom

60

APRIL 2022 | SF APARTMENT MAGAZINE

from the day-to-day of their rental properties while giving transparency and control back to the landlord.

The Hemlane platform has software, access to leasing agents, repair coordination services, and other helpful resources. Hemlane’s software automates everything from advertising rentals to troubleshooting repair requests. Our leasing agent network is the largest in the United States. We provide owners with a list of vetted leasing profes-

FOR ALL YOUR REAL ESTATE NEEDS

sionals to help with showings and other tenant-placement needs. Our in-house

SERVING SAN FRANCISCO PROPERTY OWNERS FOR OVER 60 YEARS

repair coordination team is 24/7, giving landlords peace of mind.

SALES INVESTMENTS PROPERTY MANAGEMENT

A fellow SFAA member recently shared that Hemlane was “The only platform that we felt truly protected on, as landlords who are conscious about legal concerns around allowing online payments… We greatly appreciate that the software is easy to use for our tenants, and so far, they re-

3001 LAGUNA STREET, SAN FRANCISCO CA 94123 (415) 567-4800 www.amoresf.com

ally appreciate the functionality of it! It’s made communication and processes so much more seamless!”

Hemlane is affordable, starting at $30/ month, and 5-star rated. Rental property owners also receive a 30-day risk-free trial to discover first-hand the latest innovations in property management technology.

Dana Dunford is the CEO and co-founder of Hemlane.

Be On Your A Game.

4

Sign up for SFAA classes at www.sfaa.org or by calling 415-255-2288.

SF APARTMENT MAGAZINE | APRIL 2022

61

40 YEARS OF EFFECTIVE, HANDS ON EXPERIENCE!

Give 10 Get 10!

Give us 10 minutes of your time, learn how we can increase your bottom line and get a Starbucks gift card on Us!

Renee A. Engelen, DRE 01879547

(415) 810-6020 INFO@HRHREALESTATE.COM

62

APRIL 2022 | SF APARTMENT MAGAZINE

PROVEN EXPERTISE IN: PROPERTY MANAGEMENT PROPERTY LEASING SALES & ACQUISITIONS CONSULTING PROJECT MANAGEMENT CONTRACT NEGOTIATIONS

PRESIDENT Professional Property Managers Association of San Francisco

sfaa’s

New Rent Control Laws Come learn about the new and very aggressive laws that our local Board of Supervisors has recently passed. For example, did you know that commercial tenants who were legally required to shut down due to COVID-19 may be excused from ever having to pay rent that came due during the shutdown? In addition, despite state legislation to the contrary, you may be forever restricted from evicting residential tenants for nonpayment of rent if they paid at least 25% of the rent owed even if you were not reimbursed by the rent relief fund. With the Sheriff ’s Office refusing to enforce most eviction judgments and the state laws governing tenant rent relief undergoing major changes in mid-June, you may want to learn how to navigate your property operations during these unprecedentedly challenging times.

INSTRUCTORS: Dave

Wasserman, Wasserman San Francisco, and Curtis Dowling, Dowling & Marquez LLP

DATE & TIME:

Friday April 8, 2022 10:00 a.m. to 12:00 p.m.

COSTS:

Members: $45 Non-Members:$65

REGISTRATION:

Webinar: Once you complete registration you will be sent a separate link to register for the Zoom system.

For more information, contact Stephanie Alonzo at 415.255.2288 x113 or stephanie@sfaa.org

sfaa’s Managing Tenants to Avoid Liability Webinar MANAGING TENANTS TO AVOID LIABILITY

Dealing with unforeseen liability involves proper legal asset protection and proactive tenant management. Top attorneys Brad Barth and Steve Williams join forces to bring you this eyeopening webinar full of actionable tools and strategies to protect yourself. You will learn about inside vs outside liability, how to handle a tenant complaint, dealing with Covid related liability issues and much more.

INSTRUCTOR: Brad

Barth, Barth-Calderon; and Steve Williams,

Fried & Williams

DATE & TIME:

WEBINAR:

COSTS:

For more information, contact Stephanie Alonzo at 415-2552288 x113 or stephanie@sfaa.org.

Thursday April 21, 2022 12:00 p.m. to 1:00 p.m.

Members: $45 Non-Members:$65

Once you complete registration you will be sent a separate link to register for the Zoom system.

SF APARTMENT MAGAZINE | APRIL 2022

63

Build to Boost… continued from page 24

open to providing functionality feedback or concerns from your experience as a property owner.

Decrease in services: Your project should not remove any tenant amenities, including but not limited to laundry, parking spaces leased to current residents, or bike rooms.

Amenities can be relocated within the building, and unoccupied parking can be removed. Parking leased to non-occupants of the building can also be removed. Contact an attorney if you have additional questions about this.

Have patience: Permit approval often takes longer than expected. Be patient.

While state law says ADU permits need to be reviewed within a prescribed timeline, most permits in San Francisco are reviewed through the local ADU program, which doesn’t have a timeline attached.

There have been many successful ADU projects in San Francisco, and the right project starts with setting the right expectations. While construction costs are high, it is still possible to build ADUs at a significantly lower cost than the value of the units in many buildings. It’s also a great way to make other improvements to the building that will increase the long-term marketability of the existing units in the building.

Mark Hogan AIA is an architect and a principal at OpenScope Studio in San Francisco. OpenScope Studio wrote the Accessory Dwelling Unit (ADU) Handbook for the San Francisco Planning Department and has worked on designing ADUs for over 50 apartment buildings in San Francisco.

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APRIL 2022 | SF APARTMENT MAGAZINE

SFAA Needs You.

Support SFAA’s legal challenges to unjust legislation by donating to the SFAA Legal Fund. SFAA needs to stay relevant to remain effective. Help to further grow the legal fund. It will make a difference. Check out sfaa.org/Public/Fundraising/Give_Now to find out more. *SFAA Legal Fund donations are tax deductible.

Follow SFAA on Twitter at www.twitter.com/SFAptAssoc.

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415.775.8513 SF APARTMENT MAGAZINE | APRIL 2022

65

2022 Spring CCRM Webinar Night Series Schedule & Registration Course Course Name #

Date

PRICE

Time

Member

# of NonTotal Member Attendees

Series

Full CCRM Series (Value Savings)

PMR100

Introduction to Ethical Property Management

4/12/2022

6PM-9PM

$85.00

$100.00

PMR101

Renting the Property

4/19/2022

6PM-9PM

$85.00

$100.00

PMR102

Beginning and Maintaining the Tenancy

4/26/2022

6PM-9PM

$85.00

$100.00

PMR103

Renewal of Tenancy and Ending the Tenancy

5/3/2022

6PM-9PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining the Property

5/10/2022

6PM-9PM

$85.00

$100.00

PMR105

Liability & Risk Management

5/17/2022

6PM-9PM

$85.00

$100.00

PMR106

Budget Development and Implementation

5/24/2022

6PM-9PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

5/31/2022

6PM-9PM

$85.00

$100.00

PMR108

Professional Skills for Supervisors

6/7/2022

6PM-9PM

$85.00

$100.00

EXAM

CCRM Final Exam

6/14/2022

6PM-9PM

FREE

See schedule below

Class Location Zoom Webinar System Upon registration the Zoom link will be emailed to the student Class is every Tuesday Instructor: Ryan Patrick, Wiegel Law Group

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x110 Email: maria@sfaa.org

(includes 9th Edition Managing Rental Housing textbook, CCRM binder and Welcome Packet; does not include the $75 CCRM application fee)

Attendee Information: o Member

Attendee Name:

Title:

Company Name:

Address

City:

Phone:

Fax:

E-Mail:

Local Association ID Number:

Payment Information: o Credit Card

Zip:

o Mailing Check o Series Invoicing (members only benefit)

Credit card number: Signature:

o Non Member

Exp. Date Name printed:

Cancellation Policy: Cancellations must be made 72 hours in advance for a refund. SFAA does not provide refunds for No-Shows. Non-members must pay by credit card only!!!

*Students requesting CalBRE Continuing Education Credits must show picture ID, immediately before admittance to the live offering.

66

caanet.org events@caanet.org

APRIL 2022 | SF• APARTMENT MAGAZINE 800.967.4222 980 Ninth Street, Suite 1430 • Sacramento, CA 95814

JOHN ANTONINI + DANIEL FOLEY MULTIFAMILY + MIXED-USE + ADD-VALUE "A ship is safe in the harbor, but that's not what ships are for." - John Shedd

FO R SA L E 2074-2078 Bush Street Classic Victorian located in Lower Pacific Heights Three Units, Two Vacant One block from Fillmore St + Japantown Well Maintained Original Charm

2301 Webster Street Six Unit Mixed-Use Building Pacific Heights Neighborhood Four Residential Units + Two Commercial Units One block from Fillmore Shopping & Restaurants John Antonini

Daniel Foley

415.794.9510

415.866.7997

john@antoninisf.com

daniel@danielfoley.com

www.antoninisf.com

www.danielfoley.com

DRE 01842830

DRE 01866714

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed

SF APARTMENT MAGAZINE | APRIL 2022

reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate.

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TO MOST PEOPLE, THIS BUILDING’S KEY FEATURE IS ITS IMPRESSIVE FACADE

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TO YOU, IT’S THE FOUNDATION FOR A SECURE RETIREMENT. We know the properties we manage mean more to owners like you than meets the eye. That’s why, for over 70 years and across three generations of our own family, we’ve taken the long view -- building great working relationships as we build value. Because when it comes to taking care of your investment, we definitely see eye-to-eye.

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