September 2020 SF Apartment Magazine by sfaa1917

SF APARTMENT magazine

THE PANDEMIC

PIVOT

HOW NEW COVID-19 LAWS ARE CHANGING OUR CITY

San Francisco Apartment Association September 2020 / $7.00

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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 magazine

SF APARTMENT

contents

Features

Smart Security

by EMILY LANDES

Proposition Opposition by DEBRA CARLTON

26 4

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

A Tough Spot

The Good, the Bad, and the Vacant

The News

Mighty Small

Market View

by JAY GREENBERG

No Quick Fix

Planning Ahead

by KILBY STENKAMP

The Long and Short of It

Calendar

Professional Services Directory

by M. BRETT GLADSTONE

Membership Application

Legal Q&A It’s in the Mail by VARIOUS AUTHORS

SF APARTMENT MAGAZINE | SEPTEMBER 2020

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SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112 Email sfaa@sfaa.org Web www.sfaa.org

SFAA Staff Executive Director Janan New

Deputy Director Vanessa Khaleel

Education Specialist Stephanie Alonzo Member Services Manager Maria Shea

Government and Community Affairs Charley Goss

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, Kent Mar, Neveo Mosser, J.J. Panzer,

VOLUME XXXIII, NUMBER 9 SEPTEMBER 2020 Published by Hippo Productions Publisher Vanessa Khaleel Editor Pam McElroy

Art Director Jéna Safai

Production Manager Cameron Shaw Tel 415-392-3770

Web www.sfaa.org SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California. POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is published monthly for $65 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 @2020 by SFAA.

Bert Polacci, Dave Wasserman

SF APARTMENT MAGAZINE | SEPTEMBER 2020

COLUMN

THE NEWS This included having members send more than 55,000 opposition messages to lawmakers. While the rent-reduction provision is out, AB 828 still included some problematic provisions such as: • Requiring very limited proof on the part of tenants that they faced a COVID-hardship in order to stay in the unit; • Protecting nuisance tenants by allowing them to initially ignore the unlawful detainer complaint and remain in the unit; • Mandating that rental property owners demonstrate an economic hard-

A Tough Spot

ship to collect the contracted rent in a timely manner.

COVID-19 has brought with it significant rental housing legislation.

In late July, just before the Legislature

Editor’s Note: State and Federal guide-

and where those proposals stood at the

hearing, rendering it dead for 2020.

lines and legislation are constantly

time of this writing in late July.

changing regarding the coronavirus

returned from its summer recess, CAA learned that this bill would not receive a

Assembly Bill 2406 by Assemblymember Buffy Wicks (D-Oakland): This bill

latest information, resources, financial

Bills Stopped by the California Apartment Association

aid, and forms, visit www.sfaa.org or

Assembly Bill 828 by Assemblymem-

registry and targeted landlords who’ve

www.caanet.org/coronavirus.

ber Phil Ting (D-San Francisco): As ini-

received government assistance in

tially written, the bill would have given

response to the coronavirus. The bill

The COVID-19 pandemic has changed

the courts the ability to reduce rent by

would have cost taxpayers more than

just about everything—the way people

25% when an eviction case is filed.

$20 million initially and then $10 million

and the shelter-in-place order. For the

per year to administer the database.

work, socialize, wait in line, and even the way they protest.

would have created a statewide rental

“While I understand that the COVID-19 pandemic has created a great deal of

CAA strongly opposed the bill, which

The examples go on and on. It’s no

uncertainty for many Californians,

would have required rental property

wonder, then, that California lawmak-

AB 828 will do nothing to address our

owners with five or more rental units

ers, wearing protective face masks all

housing challenges,” CAA’s message to

or who accept rental assistance pay-

the while, proposed a flood of legisla-

lawmakers said. “It will simply exacer-

ments from federal or state COVID-19

tion centered on the pandemic—and

bate divisions between landlords and

programs to submit a long list of infor-

how tenants, and to a much lesser de-

tenants while creating a great deal of

mation about their buildings and their

gree landlords—might stay afloat finan-

financial uncertainty and distress for

tenants to a state department. CAA also

cially during the crisis.

the entire rental housing industry.”

opposed a previous version of this bill

In the paragraphs that follow, you’ll

Ting removed that rent-cut provision

find summaries of some of the most

from the bill following a grassroots

significant rental housing legislation

opposition campaign spearheaded by

As with the earlier version of the bill,

that came in response to COVID-19

the California Apartment Association.

AB 2406 would have required affected

that would have applied to all landlords

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

with five units or more.

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SF APARTMENT MAGAZINE | SEPTEMBER 2020

owners, under penalty of perjury, to sub-

and not to evict the tenant for nonpay-

mit a yearly rental registry form, which

ment. The tenant also would need to sign

would include a variety of data, such as

the pact. Instead of collecting back rent

the number of bedrooms and bathrooms

from the resident, the landlord would be

in each unit, the number of evictions and

reimbursed through tax credits from Cali-

the reasons given for those terminations

fornia. The tenant, meanwhile, would be

DONATE TO THE SFAA LEGAL FUND TODAY During the legislative process,

over the past year, and the number of

liable for the unpaid rent and would ulti-

SFAA reaches out to members of

days a unit went vacant. The information

mately need to repay California for the tax

the Board of Supervisors to ad-

would be published on a public online

credits provided to the landlords.

dress points of concern, support, or opposition on any given legisla-

rental registry portal. Initially sponsored by the California This bill died in in early June in the Assem-

Apartment Association, SB 1410 previ-

bly Appropriations Committee.

ously sought to provide direct payments to landlords for the unpaid rent. With a $58

tive or policy proposal that impacts rental housing providers. On issues that are particularly harmful for property owners, like the COVID-19

Bills Still in Play

billion deficit facing California, those im-

Assembly Bill 1436 by Assemblyman David

mediate payments became unrealistic for

Chiu (D-San Francisco): This legislation

the Legislature to approve. Instead, the bill

would force rental property owners to

was converted by Senate leadership into

defer rent payments for tenants who are ei-

this tax credit proposal.

bers of City Hall.

ing during the COVID-19 pandemic. The

The bill will be heard in the Assembly

But oftentimes, especially in an

rent-deferral period would last until April

Judiciary Committee in mid-August. CAA

increasingly tenant-friendly city,

1, 2021 or until 90 days after the state’s CO-

did not continue in a sponsorship role but

these proposals get voted into

VID-19 state of emergency is lifted—which-

is working with the Senate on amend-

law anyway. During the legislative

ever comes first. In addition to collecting

ments for the bill. SB 1410 is the only

hearing on June 8, the Land Use

no rent during this time, landlords would

legislation that offers both tenant protec-

receive no funding under the bill to help

tions and financial assistance to land-

Committee heard from hundreds of

pay their taxes, mortgages, utilities, or staff.

lords. While the legislation is promising,

ther unable—or unwilling—to pay for hous-

CAA has concerns about the time frame “AB 1436 will make our housing crisis

in which landlords would get tax credits.

worse,” said Debra Carlton, the Califor-

CAA is working with the authors to create

nia Apartment Association’s executive

helpful amendments for the bill.

vice president for state public affairs. “It will put hundreds of rental owners into

For more up to date information

Tenant Protection Ordinance, we’ll mobilize our membership in a grassroots effort to engage mem-

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.

default, leading to mass foreclosures on

about these and other bills, go to

rental housing.”

www.caanet.org.

CAA expressed its concerns in a letter

The above content was provided by the

pervisors passes ordinances that

to the author.

California Apartment Association.

violate our members’ rights, we

“The bottom line is that tenants are not only protected from eviction, they are protected

Mandatory Soft-Story Retrofit Deadline

from any demand by the owner to pay rent

The September Tier-4 deadline for San

that is owed,” CAA said in its opposition let-

Francisco’s Mandatory Soft Story Program

ter. “This equates to free rent.”

(MSSP) is here. Failure to submit permits

SFAA established its legal fund in 1998, and when the Board of Su-

and plans to DBI by the deadline will

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.

Senate Bill 1410 by Senators Anna Cabal-

result in code enforcement action and

lero (D-Salinas) and Steven Bradford (D-

monetary penalties.

Please write a check to the “SFAA

a tax credit program to help landlords

Tier-Four Soft Story Property Owners—If

office at 265 Ivy Street, San Fran-

recoup rent that’s gone unpaid during

you are a property owner of a building

cisco, CA 94102 to support this ef-

the COVID-19 crisis. To qualify for the

containing educational, assembly, or resi-

fort and to help build the legal fund

credits, a rental owner would need to

dential care facility uses (Building Code

to function as a deterrent against

Gardena): This legislation would create

sign an agreement, pledging to defer rent that’s gone unpaid due to the coronavirus

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

The News… continued on page 53

Legal Fund” and mail it to the SFAA

future harmful proposals.

Adam Filly

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Apartments | Mixed-Use | Commercial

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Adam Filly Senior Vice President | 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 | SEPTEMBER 2020

COLUMN

MIGHTY SMALL

No Quick Fix

after the shelter-in-place order. Now

w r i t t e n b y K I L BY S T E N K A M P

Make thoughtful decisions and stay informed to keep afloat in an uncertain market.

options. There’s been a general shakeup and people are making large life changes. Some buyers are tired of paying rent for the same four walls when they can buy at historically low interest rates. Others are looking at investments

fter years of feet-on-the-

minute I turned into Henny Penny. Since

and second homes. There’s opportunity

ground experience as a

that meltdown moment, I buckled up

in any market.

renter, property manager,

and made the decision to move forward

property owner and re-

and deal with the problem head on.

As always, a savvy owner-user or investor won’t shy away from the 2-4-unit

altor, I’ve learned the hard way that sometimes you just have to go with the

I reached out to Tim Brown, an as-

market if the property makes sense. In

flow. There’s always a learning curve,

sociate and real estate investor, for his

anticipation of declining rents, many of

and the only thing you can count on

market perspective. Brown remains

Brown’s investment buyers are auto-

is change. I’ve spent years double-

positive, even though he’s dealing

matically padding their numbers with

guessing the market with moderate

with the same issues we’re all becom-

an 8% to 12% reduction on tenants pay-

success. The recent events have left me

ing familiar with. One of his proper-

ing market rent. They are also looking

pondering: Some days I feel general

ties has five of thirteen units vacant.

for property with build-out or build-up

malaise, not knowing what to think;

They’re smaller units without parking,

potential. Many properties offer the

other days I’m a powerhouse. We were

where the desirability of the neighbor-

possibility to add one or more axillary

already up against new statewide rent

hood declined as businesses closed,

dwelling units (ADUs).

control, and now we’re in the middle

creating a stressful living situation for

of a global pandemic. The million-

existing tenants. We’re seeing a slow

Because of our extraordinary situation,

dollar question I had for several inves-

absorption of vacant studios and one-

I ran numbers differently than I have

tors and property owners was, “Would

bedroom rentals as tenants move into

previously. We didn’t see the COVID-19

you buy in the current market?” Over-

larger flats. Brown is willing to lower

impact in March. Most of the sales that

whelmingly, the answer was, “yes.”

rents to re-create cash flow, knowing

closed in March went into contract

that tenants generally don’t stay for-

in January or February, prior to the

There’s no question the rental market

ever in smaller units and at some point

shelter-in-place order. The initial impact

has softened, and there’s no easy an-

the market will rebound. He was quick

of the SIP order brought just about

swer on what the future holds. There

to point out that smaller units without

everything to a screeching halt. So, I

is so much information out there, and

amenities are getting hit—some areas

ran numbers from April 1 to July 30 of

it changes daily. Stay informed and

harder than others. In his opinion, the

this year, comparing them to the same

make thoughtful decisions. Find good

migration to larger flats and cohabita-

timeline in 2019.

resources for accurate information. The

tion will no longer be a trend a few

San Francisco Apartment Association

years from now. But in the meantime,

In the 2-4-unit category, from April 1,

and local attorneys can guide you in the

don’t sit too long on a vacant unit. Find

2019 to July 30, 2019, there were 189

right direction. A good way to stay in-

out how to stay competitive to get your

sales, properties averaged 46 days

formed is through SFAA’s virtual Lunch

unit rented while not giving it away.

on market and sold for an average of 105.25% over asking price. The median

and Learn classes. Last week I joined a

they’ve had time to think and look at

class about changes to the SFAA lease

Brown has been through a number of

sales price was $2,099,000. In the 2-4-

that was taught by two local attorneys.

challenging markets: 20% interest rates,

unit category, from April 1, 2020 to July

It was extremely informative. Like most

the earthquake, the collapse of dotcom.

30, 2020, there were 57 sales. Properties

of you, I was recently faced with rent

Compared to other challenged markets,

averaged 40 days on market and sold for

forbearance, rent negotiations and no-

he says today’s pandemic buyer is fear-

an average of 103.26% over asking price.

tices to vacate, among other things. For a

less. People were paralyzed immediately

The median sales price was $2,120,000.

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

John Antonini

Daniel Foley

Multifamily + Mixed-Use + Add-Value

For Sale

Sold- Off Market

2526 Balboa Street

4 Units | Richmond District $457/ft, Golden Gate Bridge Views

Sold- Off Market

62 Oakwood

5 Units | Mission Dolores Under $450/ft

334 Noe Street

6 Units | Castro Soft Story Competed

All of these transactions occurred during COVID. Call or Email for Market Updates John Antonini

415.794.9510 john@antoninisf.com DRE 01842830

Daniel Foley

415.866.7997 daniel@danielfoley.com DRE 01866714 SF APARTMENT MAGAZINE | SEPTEMBER 2020

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 footage are approximate.

four ways

to connect

I was unable to show tenant-occupied properties, and so I anticipated that the sales volume would be down. I did not expect such a dramatic difference in the number of sales. What was even more interesting is there are currently 134 active listings in the 2-4-unit category. I was pleased to see days on market had slightly improved, percent of sales over asking adjusted slightly downward, and the median sales price went up. Predictions are almost impossible at this point, as we are moving in real time with the pandemic, softening rents, increased vacancies, new rules and ballot measures limiting a landlord’s options—many of which will be challenged in court. I spoke to another associate, Johnny Bayview, who owns property in… you guessed it: Bayview. He’s been a true pioneer, and it has paid off. The bulk of his portfolio is subsidized with Section 8 and Veterans Assistance. He has had only one request

During the pandemic, email SFAA at MemberQuestions@

for a rent reduction, no vacancies, and has

sfaa.org to have your questions and concerns promptly

forbearance. He has managed subsidized

addressed, or call the office at 415-255-2288. You can also

make it work for him. He has found that

follow the happenings of your fellow SFAA members and

received no notices or requests for rent property for years and has learned how to because so few landlords will accept Section 8 and subsidies, he has the ability to

find out the latest in the industry by connecting with SFAA

pick strong tenants. Some of his rents are

on Facebook. Search San Francisco Apartment Association

Historically, he has never had his rents

actually slightly above the current market.

and “Like” it to add it to your news feed. Follow SFAA on

rolled back. Subsidized tenants are not for

Twitter at www.twitter.com/SFAptAssoc.

ries over the years. It was nice to hear that

everyone, and he’s shared a few good stohe’s managing better than most of us. We will get through this, just as we’ve gotten through challenging markets in the past. Get involved and support organizations that look out for small property owners. Stay in touch and stay informed. Don’t forget to check out the SFAA Zoom classes (see page 42 for a schedule and class descriptions). San Francisco remains a great city and has always been resilient. When times get tough, we get going! Kilby Stenkamp is a realtor at Vanguard Properties. She can be reached at kilby@vanguardsf.com or 415-370-7582.

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | SEPTEMBER 2020

COLUMN

LEGAL Q&A

It’s in the Mail w r i t t e n b y VA R IOU S AU T HOR S

While most San Franciscans have kept up with rent during the pandemic (more than 90%), what should owners do when the checks stop coming? Q. Our tenant has not paid rent very strange began to emerge from

since March, claiming COVID-19 hardships. We believe he is still working. What are our options?

A. The COVID-19 crisis has forced us

1. Use every effort to negotiate with the tenant. We should have favored this route prior to COVID, but our UD infrastructure was such that it was oftentimes easier to call an attorney and have the legal paperwork served. With the UD courts

More than 90% of residential tenants

closed, try to work out a forbear-

remained current on their rent. Yes, the

ance agreement or some other reso-

vacancy rate has exploded and rents are

lution shy of litigation.

being reduced to adjust to more supply

as an industry to instantly reevaluate

than demand in this now deepening re-

how we do business. Once the pan-

cession, but the feared mass rent strikes

demic became pronounced in early

and gross tenant abuses for the most

March, both the city and state govern-

part never materialized. Not surpris-

ments issued moratoriums on almost all

ingly, though, there are some renters

commercial and residential evictions.

that are living each month with a total

The state’s Judicial Council, the policy-

disregard as to their obligation to pay

making body of the California court

rent. As this question insinuates, per-

system, also implemented an emergency

haps a few in this group enjoy full em-

order that prevented court clerks from

ployment and are taking advantage of a

issuing summons for eviction actions,

worldwide crisis for their selfish benefit.

or UDs, unless the tenant was commit-

What can be done?

threat to public health and safety. Thus,

For starters, no one knows when evic-

from March through August, and likely

tions will once again occupy our legal

beyond, California property owners

lexicon. With the layers of local, state,

have not had the ability to utilize the UD

and judicially imposed moratoriums in

laws to remove tenants. This is unprece-

place, “UDs as normal” may not com-

dented and substantially alters the prop-

mence until well into 2021. In addition,

erty management business model.

this time in history might just compel lawmakers to reconsider the idea

Suddenly, without the eviction courts

of ejecting tenants via the quick and

open for business, we have had to step

streamlined UD processes. Remember,

up and work with tenants that may not

UDs are not a constitutional right but

be able to pay rent as a result of the

rather a creation of statute that could be

national economy contracting by over

taken away or redefined by our legis-

30%. With UD mills shuttered, property

lators. For almost 100 years, we have

owners were quickly thrust into the

been able to bring UDs into court and

arena of having to negotiate payment

have them decided within a few short

plans and rent forbearance agreements.

months, whereas other civil disputes

Yet after more than five months of

usually take well over a year from start

threatened Armageddon, something

to finish.

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

are left with the following choices:

the wreckage of our eviction industry:

ting violence or otherwise posing a

Without the ability to pursue UDs, we

2. If the tenant is nonresponsive or unreasonable, you may file suit for breach of contract (the lease agreement) now. Many in social media have wrongly characterized local and state rent moratorium edicts as rent forgiveness. That is grossly incorrect. Rent is still contractually due each month, and owners are able to— and many have already—filed breach of contract claims. Unlike UDs, these actions take well over a year to litigate, but the losing tenant could face a judgment for back rent and attorney fees. Thus, in this case where the tenant is employed, a money judgment, which will not result in eviction, could nonetheless yield wage garnishment and bank account levies. Moreover, sometimes the filing and service of these lawsuits will convince tenants acting in bad faith to produce meaningful repayment plans especially when they have to hire a lawyer and are apprised of the credit risks associated with running up a large rent tab. 3. In addition to a breach of contract claim, you may sue the tenant for “ejectment.” Ejectment is also an Legal Q&A… continued on page 54

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sEaTTLE MuLTiFaMiLy dsT Minimum Investment: $50k

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**all offerings shown are Regulation d, Rule 506(c) offerings. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities. These testimonials may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results. These clients were not compensated for their SF APARTMENT MAGAZINE | SEPTEMBER 2020 17 testimonials. Please speak with your attorney and CPA before considering an investment.

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SEPTEMBER 2020 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | SEPTEMBER 2020

COLUMN

MARKET VIEW

The Good, the Bad and the Vacant w r i t t e n b y JAY GR E E N B E RG

Despite increasing vacancies and declining rents, the apartment sales market remains strong.

18.58 times gross in 2018 (the highest in a decade), and 14.83 times gross in 2019. In 2020, GRMs bumped back up to 16.65 times gross.

s anybody up for some good

For the past decade, we have seen

The average price per foot was $550 in

news during the pandemic of

rising prices per unit every year ex-

2017, $602 in 2018, and $552 in 2019. In

fear and economic destruction?

cept for 2017, when the cost per unit

2020, the price per square foot made

We’ve all had plenty of bad news,

slipped approximately $50,000 from

a strong comeback, with the mid-year

which is reflected in my report below,

the previous high in 2016. The aver-

average coming in at $616. The price per

but there has also been some good

age cost per unit dropped to $454,000

unit figures follow the same pattern as

news in the apartment sales market. I

in 2017 and rebounded to $506,000 in

price per foot with increases each year,

was amazed by the mid-year sales data,

2018, and it hovered there the follow-

except 2019. The average price per unit

which shows increases in every value

ing year. In 2020, the average price per

was $412,000 in 2017, $458,000 in 2018,

indicator in a year-over-year compari-

unit bumped up to $518,000.

and $432,000 in 2019. In 2020, the price per unit rebounded, with the mid-year

son with strong transaction levels. The bad news is that vacancy rates are rising

Dollar volume for the 5-9-unit sector

average at $487,000. Similar to the 5-9-

and rents are falling. On the political

was approximately $189 million in

unit sector, all value indicators have in-

front, politicians in the city and state

2017 and $188 million in 2018, before

creased on a year-over-year comparison.

capital continue their blitzkrieg on

dropping to $153 million in 2019 and

property owners. Buckle up as we head

$134 million in 2020. As for transac-

The number of transactions and dol-

into the second half of 2020.

tions, 2017 saw a new high with 70

lar volume figures are very impressive

sales. There were 57 closings in 2018

considering our current circumstances.

The following are 2020 second quarter

and 47 closings in 2019. In 2020, mid-

There were 44 transactions by mid-year

statistics ( January – June) for the 5-9-

year sales dipped again, closing the

in 2017, 36 in 2018, and 27 in 2019. This

unit sector and the 10-plus-unit sector

second quarter with 41 sales.

year, there were 31 completed transactions as of mid-year. Dollar volume has

versus the same time period for 2017 While both number of transactions and

also held up very well despite the coro-

dollar volume have declined on a year-

navirus. Dollar volume was $343 million

5-9 Units

over-year comparison, these are strong

in 2017 and $337 million in 2018. There

The average price per square foot

indicators of activity levels occurring

was a significant drop in 2019 to $226

jumped from $511 in 2017, to $572 in

during the craziest of times. In addi-

million, and by mid-year 2020, dollar vol-

2018, and $551 in 2019. In 2020, the

tion to the activity levels, we have rising

ume rebounded to $304 million.

price per square foot reached a new

value indicators for multipliers, price per

high of $593 at the mid-year mark.

square foot, and price per unit.

through 2019.

How’s that for some good news? Gross

GRMs were 17.62 times gross in 2017,

The source of the numbers reported come from Jay Greenberg, Trigg

Rent Multipliers (GRM) hit their peak

10-Plus Units

Splenda, San Francisco Multiple Listing

in 2018 and have been slowly trending

The value indicators for the 10-plus-

Service, and Costar Comps.

back since that time. The average GRM

unit sector have held up pretty well

was 18.32 times gross in 2017, 18.51

since 2017. We have seen a decline in

In Summary

times gross in 2018, and then 15.9 times

multipliers for the past few years and

I was amazed when I saw the second

gross in 2019. In 2020, the GRM has

cost per foot and cost per unit have

quarter sales figures. I’d been expecting

inched upward with the average multi-

slowly inched upward for the same

plier coming in at 16.02 times gross.

time period.

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

Market View… continued on page 38

SF APARTMENT MAGAZINE | SEPTEMBER 2020

Smart Security written by

E M I LY L A N DE S

ADT is synonymous with home security. Now it’s branching out into the smart amenities sector as well. For decades, ADT has been known for its suite of security services—everything from alarm systems and monitoring to surveillance cameras. But relatively recently, the company has branched out into providing amenities for the multifamily market, and security is just one of the many tools in their tenant-attracting arsenal. “We call them smart amenities,” said Chris Martin, ADT’s national account manager for the multifamily sector. “Smart locks, smart thermostats, leak detection in the unit and smart lights are really the focus in multifamily.” That’s “smart” as in controlled by a smartphone, which Martin says is very attractive to all renters, particularly younger residents who have grown up with the ability to access everything they need in the palm of their hand. He cited a National Multifamily Housing Council Survey that shows 54 percent of renters are interested in smart locks, 66 percent are interested in smart thermostats and 59 percent are interested in smart lighting. He believes those numbers have only gone up since the 2017 survey. “We're seeing a huge amount of renters wanting the technology,” Martin said. “Being able to control the home through your smartphone is very important nowadays, whether you rent or own. Everybody has their phone on them 24/7.” These tech-minded tenants are perfectly happy to give up physical keys and the hassles that come with them. Martin said if property managers still want to hold onto physical keys, ADT is happy to provide them. But he sees the industry going completely keyless in the years ahead. He estimates that, currently, for every thousand units that sign up with ADT Multifamily, about 100 have no physical keys at all. It’s easy for tenants to see the appeal of a code over a key. No more lockouts or lost key charges. The ability to let dog walkers or cleaning staff in from afar and check to make sure these service providers came at the appointed times. This smart monitoring isn’t just attractive to tenants but to property managers and owners as well. Contractors and maintenance staff can all be given personalized entry codes with notifications to make sure they arrive and leave when they claim. Plus, with ADT’s “set it and forget it” technology, vacant units stay at pre-set temperatures

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | SEPTEMBER 2020

that can’t be raised or lowered by contrac-

me go ahead and set that up with you on

payment. It’s all about personal preference.

tors servicing the unit for turnover.

the phone right now,’” said Martin.

Some owners like to put down a larger

These operational efficiencies and tenant-

Self-guided tours also protect leasing

throughout the contract term. Others prefer

attracting services have gotten huge players

agents from unnecessary exposure,

to pay a larger amount monthly with fewer

in the apartment industry on board with

which is a critical way to keep staff safe.

upfront costs. Fees also rise or fall depend-

ADT Multifamily. “As leaders in property

Plus, the built-in notification serves to

ing on how many smart systems owners

management, we know that our ability to

quiet the concerns of tenants who might

want to offer, with smart locks and thermo-

bring innovation to the multifamily living

be wary about how many people have

stats being the most popular choices.

experience and offer tenants access to the

been touring the unit before them. After

latest in smart technology and convenience

the apartment is viewed, managers are

Martin can also offer phased-in billing over

from their fingertips is important,” said

notified and can send out a cleaning crew

the first year. So, in the first quarter of a

Joanna Zabriskie, president of BH Manage-

to disinfect the unit before the next pro-

new contract, ADT only charges 25 percent

ment, the ninth-largest property manage-

spective tenant arrives.

of the total monthly cost. Every quarter that

upfront payment and have lower costs

monthly rate goes up so that the owner is

ment firm in the U.S. “The partnership with ADT also provides extensive efficiency on

With these safety measures in place, Martin

paying the full amount by the end of the

the management side to better manage and

believes self-guided tours will fill vacan-

first year. “We understand that you have to

respond to maintenance requests quickly

cies more efficiently than photos or virtual

have turns and new leases come in order to

and regulate non-inhabited units to ensure

tours. “I would never rent a property off of

raise the rents,” he said.

they are well-kept and efficient.”

pictures alone,” said Martin. “Most people

A System for Self-Sufficiency

are going to want to go and actually see it

Martin believes that the systems more than

before signing a lease for 12 months.”

pay for themselves, especially in tech-heavy San Francisco. “Think about the high tech-

With more turnovers than usual recently due to the economic uncertainty brought

Once tenants are in the units, the ADT tech-

nology area that we’re in,” he said. “As long

on by COVID-19, Martin says owners and

nology connects to devices they already

as your apartment community is up to date,

leasing agents have been loving the sys-

use, like Amazon’s Echo and Apple’s Home-

you should be able to add around $75 to

tem’s ability to allow for self-guided tours.

Pod. Tenants can even set certain lighting

your asking rent for this amenity.”

“That’s something that’s been a big hit

scenes and say something like, “Hey, Alexa,

since COVID,” said Martin. “It was surfac-

it’s movie time” to change the vibe from

Techies also appreciate that ADT does not

ing more and more before that, but COVID

“working from home” to “Netflix and chill”

sell user data and does not use highly hack-

blew it out of the water.”

without ever getting off the couch.

able WIFI relying on a stronger cellular system instead. “Our system has army-level

Prospective tenants must submit a photo

Martin added that leasing agents and their

encryption, so you can’t hack into it and

ID and credit card for liability purposes.

managers love that the ADT Multifamily

pop a door open,” Martin said. “Plus, if

But then, for a set period of time, they can

system is already integrated with all major

we're talking about 20 units in a property—

have access to not only the unit they are

property management software, like Yardi

on a WIFI network, if you hack into one,

interested in, but also building amenities

and Real Page. “We don’t want them to have

you can get all 20. With cellular, you can't

that would typically require key access.

to learn another dashboard,” he said. “It’s

just go in there and pop 20 doors open.”

“We don't just get them in one specific door.

one less thing they have to be trained on.” So, in the end, with ADT even when it’s all

Especially in larger apartment communities, there's also one or two other doors that

Plus, ADT’s leak detection system can let

about amenities, it’s also all about protec-

they have to get into,” Martin said. “So, we

managers or owners know immediately

tion. “You’ve got to look at the name ADT

can actually get them from the front gate all

when something isn’t right in a unit. It’s a

and think security,” Martin said.

the way through each door—gym, laundry

big help for fixing small leaks fast, since

room, everything—and make it seamless.”

tenants don’t always report them, and it’s essential when a major leak can mean

The self-guided tour system is also great

10,000 gallons of water down the drain.

for leasing agents because it allows them to

BH Management said that if they had just

permit access if they are working remotely

had ADT before their last major leak it

or have left the office for the day. “Let’s

would have paid for the cost of the system

say the tenant can't get in until 8 p.m. and

on that property.

there's no leasing agent on staff. The leasing agent can say, ‘Hey look, unfortunately, I'm

Your Price Point Is Personal

not going to be here, but I do have a self-

Martin has a payment plan to fit every price

guided tour available for you at 8 p.m. Let

point—even some that require zero down

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

Emily Landes is a freelance writer and former editor of SF Apartment Magazine.

DAN MCGUE

S A N F R A N C I S C O ’ S L E A D I N G A PA RT M E N T B R O K E R M U LT I FA M I LY P R O P E RT I E S F O R S A L E

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NRT

© 2019 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker 2020 Commercial Affiliates. SF APARTMENT MAGAZINE | SEPTEMBER Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

PROPOSITION OPPOSITION written by

DE B R A C A R LT O N

The passage of Proposition 21 this November would bring extreme forms of rent control to San Francisco. On the November 3, 2020 statewide ballot, California voters will find Proposition 21, a proposal that attacks California’s CostaHawkins Rental Housing Act. The measure would welcome back the extreme forms of rent control that proliferated in California in the 1970s. Anti-housing activist Michael Weinstein is bankrolling the campaign to pass Prop. 21, using funds from the nonprofit AIDS Healthcare Foundation, of which he is president. Until July, Weinstein’s radical rent control measure was often referred to as “Proposition 10 2.0” for its similarities to his previous statewide rent control measure. At the heart of Proposition 21, like its predecessor Proposition 10, is a crusade to dismantle Costa-Hawkins—the single most vital California law for rental housing providers. For 25 years, Costa-Hawkins has prohibited local governments from regulating the price of rents on rental units built after 1995. Costa-Hawkins also prohibits a local government from regulating rents on single-family homes, individually owned condominiums and townhouses. Moreover, the act requires all rent control ordinances to allow a rental property owner to set the rent at market rate once an existing tenant moves out and a new tenant moves in, a policy known as vacancy decontrol. Proposition 21 is really a warmed-over version of Proposition 10, which went down in dramatic defeat in the fall of 2018. Thanks largely to a campaign led by the California Apartment Association, roughly 60% of voters said no to the radical rent control prescribed in Prop. 10 and its outright repeal of Costa-Hawkins. CAA and its campaign committee, Californians for Responsible Housing, warned voters that doing away with Costa-Hawkins would lead investors to abandon housing projects in California, exacerbating the state’s housing shortfall and further placing housing out of reach for working families. Moreover, CAA and the “No on Prop. 10” campaign helped voters understand that the measure would eat into the existing housing stock, with landlords converting apartments into owner-occupied housing, replacing them with condos or renting them out on platforms like Airbnb. Although Prop. 10 failed by an overwhelming margin, the honeymoon for the rental housing industry didn’t last long. Even before the ballots were counted, organizers on the “Yes on Prop. 10” side already were talking about floating another initiative in 2020. Weinstein made good on that threat. In April 2019, less than six months after Proposition 10 went down in crushing defeat, Weinstein was back with a convoluted proposal dubbed the Rental Affordability Act. Although not a complete repeal of

SF APARTMENT MAGAZINE | SEPTEMBER 2020

Costa-Hawkins, Proposition 21 would

the state’s multifamily housing stock. The

control law—it presently limits rent in-

eliminate important portions of the 1995

law also applies “just cause” eviction poli-

creases to 1.8% annually—to more single-

law with much of the same effects.

cies to qualified housing across Califor-

family homes than are permitted under

nia. For the most part, AB 1482’s rent cap

AB 1482.

At present, Costa-Hawkins bans rent

affects properties that are 15 years of age

control on apartments built after 1995,

or older, contain two units or more, and

While AB 1482 only applies its rent cap

although cities that had rent control prior

are not already subject to local rent control

to single-family homes owned by large

to Costa-Hawkins have earlier cutoff dates.

ordinances under Costa-Hawkins. AB 1482

corporations, Prop. 21 would apply to any

In San Francisco, for example, locally im-

exempts single-family homes, townhouses

single-family home owned as a partnership,

posed rent control is prohibited on apart-

and condos, except when owned by cor-

family trust or otherwise, or if the owner

ments built after 1979, the year that rent

porations or real estate investment trusts.

also owns three homes.

control arrived in the city. Prop. 21 would

It also exempts duplexes when one unit is

grant local governments the authority to

occupied by the owner.

These provisions will drive down property values and bring the construction of

impose rent control on housing when it With AB 1482, local rent control laws are

housing to a halt, exacerbating Califor-

carrying on as usual, without interference

nia’s chronic housing shortage—a deficit

Under Costa-Hawkins, cities may not im-

from the new law; Costa-Hawkins contin-

only worsened by the economic fallout

pose vacancy controls—meaning cities may

ues to limit their application to apartments

of COVID-19.

not cap rents between tenancies. Prop. 21

built before 1995, or earlier dates in some

would change that, limiting rent increases

cities, like San Francisco.

turns 15 years old.

To defeat Proposition 21, the California Apartment Association tapped the same

to 15% over the first three years of a new tenancy. After that, the local rent cap would

In such jurisdictions, AB 1482 applies only

campaign committee that pummeled Prop-

apply in full.

to housing that both qualifies for the state-

osition 10 two years prior—Californians for

wide rent cap and has been excluded from

Responsible Housing.

Prop. 21 would also do away with the

local rent control under Costa-Hawkins. In July, Secretary of State Alex Padilla

Costa-Hawkins prohibition on local rent controls for many single-family homes and

In San Francisco, for example, the city’s rent

selected Californians for Responsible

condominiums. Under the proposition, lo-

control ordinance still covers multifamily

Housing to provide the ballot arguments

cal rent controls would apply to these types

housing built before June 1979, a date regu-

against Prop. 21. These arguments, which

of housing whenever the landlord owns

lated under Costa-Hawkins, while apart-

will appear in the statewide voter guide,

three or more homes—no matter how title

ments and corporate owned single-family

describe several ways Prop. 21 would

is held. Local rent controls also would be

homes built between June 1979 and 2005

make things worse in California, par-

permitted for anyone who owns a home in

fall under AB 1482’s rent cap. Apartments

ticularly by opening the door to vacancy

trust, no matter the number of homes.

and corporate owned single-family homes

control, the policy that prevents rents from

built after 2005 have no rent cap until they

returning to market rates, even between

turn 15 years old and qualify for AB 1482.

tenancies. Moreover, the measure would

While Prop. 21 is similar to Prop. 10, the

drive down home values by up to 20%

world has changed significantly since 2018. Chief among the changes are the statewide

If Proposition 21 passes, San Francisco’s

and exacerbate the state’s chronic housing

rent control bill, Assembly Bill 1482, and the

already-complicated mix of local and

shortage during an unprecedented eco-

financial fallout of the COVID-19 pandemic.

state rent control policies will get even

nomic and public health crisis.

more messy. “If Prop. 21 seems familiar, it’s because

In October 2019, Governor Gavin Newsom signed Assembly Bill 1482, landmark leg-

The Board of Supervisors, which now

nearly 60% of California voters rejected the

islation that placed an annual cap on rent

includes the former executive director of

same flawed scheme in 2018,” the ballot ar-

increases and created new standards for

the renter activist group Tenants Together,

gument from Californians for Responsible

evictions across California. The signing of

would almost surely apply San Francisco’s

Housing points out.

AB 1482, officially the Tenant Protection Act

strict rent control policies to housing built

of 2019, marked the most significant policy

between 1979 and 2005—a segment of the

Also in July, the state’s highly respected,

change for California’s rental housing

rental market now covered by AB 1482’s

non-partisan Legislative Analyst’s Office

owners and tenants since Costa-Hawkins

5% plus CPI rent cap, rendering the state’s

reported that Prop. 21 could result in “a po-

became law a quarter century before.

significant statewide tenant protection law

tential reduction in state and local revenues

meaningless in the city.

in the high tens of millions of dollars per year over time.”

The law, which took effect on January 1 of this year, limits annual rent increases at

Prop. 21 also would allow San Francisco

5% plus the rate of inflation for much of

supervisors to expand their strict rent

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

Proposition Opposition… continued on page 44

Jeremy Williams No Listing or Purchase is Too Complex with the Right Representation AVA I L A B L E

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– List in gs & Bu yer Re pres e n t a t i o n s

6 Units | Inner Mission Buyer Represented Fire Dmgd.; Exchange Buyer

11 Units Mixed-Use | Inner Mission Seller & Buyer | Off-Market Non-Profit Buyer; 1031 Exchange

6 Units | Alamo Square Seller & Buyer | Probate Trustee Sale; Exchange Buyer

9 Units Mixed-Use | Inner Mission Buyer Represented | Off-Market Non-Profit Buyer

5 Units | North Panhandle Seller & Buyer | Probate Trustee Sale; Tech Buyer

3 Units | Nob Hill Buyer Represented ALL-CASH Buyer

3 Units | Anza Vista Buyer Represented ALL-CASH Buyer

5 Units | Hayes Valley Buyer Rep. | Off-Market ALL-CASH Buyer

Call or e-mail Jeremy for a free and confidential property valuation.

Jeremy Williams 415.932.9846

Multi-Unit & Commercial Sales Specialist jwilliams@CorcoranGL.com | License: 01952598 SFApartmentBroker.com

SF APARTMENT MAGAZINE | SEPTEMBER 2020

COLUMN

PLANNING AHEAD

The Long and Short of It

Intermediate Length Occupancy (“ILO”)

w r i t t e n b y M . B R E T T GL A D S T O N E , E S Q.

cupancy by a natural person for an ini-

Owners renting apartments for lengths of 30 days to 1 year must register to avoid new restrictions.

“I

units as residential units “offered for octial stay for a duration of greater than 30 consecutive days but less than one year,” and by adopting a new Section 202.10 to the city’s Administrative Code, capping the total number of ILO units in the City at 1,000. The new San Francisco law

ntermediate-length occu-

example of note is the leasing by Sonder

specifically authorizes a maximum of

pancy housing” is defined by

of an entire new building built by devel-

1,000 ILO units in the city, but disquali-

individuals in the industry as

oper Brian Spiers at 2100 Market Street.

fies units which are: (1) below market-

furnished and serviced hous-

When this came to light, it stirred some

rate with rents regulated by the city; (2)

ing units that are available to rent on a

controversy as local elected officials felt

currently under SF Rent Control; (3) in

temporary basis with rental contracts

that new housing should not be used for

buildings of three or fewer units; or (4)

that are typically for more than 30 days,

quasi-corporate rentals; they also felt

in buildings which have received a No-

but less than a year. The national aver-

that new housing should be reserved

tice of Violation from a City Department.

age length of stay in such housing was

for existing San Francisco residents who

Student housing, residential hotels, and

78 nights in 2017, according to the Cor-

need permanent housing.

buildings owned by nonprofits are exempt from the 1,000-unit cap.

porate Housing Providers Association, a trade organization. Based on input from

Since many affordable housing activists

industry providers and analysts, the San

view these rentals as competing with

For eligible buildings of four to nine

Francisco Budget and Legislative Ana-

long-term housing for San Francisco

units, no Planning Commission approval

lyst reported to the San Francisco Board

residents, they lined up at the Plan-

will be needed to rent up to one-quarter

of Supervisors in February 2020 that

ning Commission last fall to protest.

of the units in a particular building as

there are between 2,000 and 2,700 hous-

The Board of Supervisors considered

ILOs. If a building has ten or more dwell-

ing units in San Francisco being used for

banning such intermediate-length oc-

ings, ILO rentals will require advance

intermediate-length occupancy housing.

cupancies because statistics show that

approval by the Planning Commission,

the nightly rate to renters is excessively

subject to the following restrictions:

Many providers in the city have been

high, and because housing for perma-

(1) no more than 20% of the building’s

in the business for decades. However,

nent local residents should be a prior-

units may be classified as ILOs; (2) two-

since 2010, a number of newer compa-

ity. However, testimony made it clear

thirds or more of the allowed 1,000 ILO

nies have entered the marketplace, such

that this kind of housing appropriately

units are in the “downtown core” (a term

as Sonder. Many of these companies are

serves workers in higher education,

the city has not defined), with the policy

distinguished from the older compa-

healthcare, theater, and other indus-

goal of ”keeping such uses near cor-

nies by master-leasing an inventory of

tries, many of whom are in town too

responding hotel and tourism districts

housing units from a building owner,

long to stay in a traditional hotel but

and job centers”; and (3) no more than

furnishing them, and managing all as-

who do not need a full one-year lease.

one-third of the city’s total allowable

pects of marketing, leasing, and servic-

These units also provide housing for

ILO units are found in “Census Tracts in

ing. The newer market entrants are also

long-term family visitors, such as grand-

Sensitive Communities,” as defined in

distinguished by making greater use of

parents visiting newborns or relatives

the UC Berkeley Urban Displacement

information technology for marketing

caring for a sick family.

Project Sensitive Communities Map.

ant services. For example, one can book

In June 2020, the San Francisco Board

Some owners of ILO units testified that

a space and request certain services

of Supervisors took a middle ground by

they might wish to change back and

on one’s cell phone. The most recent

amending the Planning Code to define

forth from long-term rentals to ILO use,

and leasing, and for the provision of ten-

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and that by allowing occupancies of one

renting for periods of between 30 days

year or more, they did not want to lose the

and one year. Currently, the Planning

right to revert later to intermediate-length

Department has no funding for enforce-

use. The new law offers this flexibility, but

ment, so for now, ILO enforcement will

states that authorized ILO use will be con-

likely remain complaint-based, as with

sidered permanently “abandoned” under

most other Planning Code enforcement

the Planning Code’s definition of “abandon-

activities. Such complaints will likely

ment” (e.g., cessation of a particular use for

come from tenants, former tenants and

a period of three or more years).

housing nonprofits.

The legislation does not affect residential

The new law also requires all owners and

hotels and student housing, both of which

operators of ILO units to submit by March 1

are exempt from Section 202.10 of the

of each year an Annual Unit Usage Report

Planning Code, nor does it affect housing

for the prior calendar year, providing the

owned by a 501(c)(3) organizations that

city with details about the ILO units they

have as a primary mission the provision of

control. With little public awareness of this

housing to the public.

new law, however, compliance across the city is likely to be spotty.

Besides prohibiting ILOs in in 1-3-unit buildings, in below market units regulated by city law, and in units currently under rent control, ILOs are also prohibited (at

The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. M. Brett Gladstone, Esq. is an attorney at Goldstein, Gellman, Melbostad, Harris & McSparran, LLP.

least for the next two years) in buildings built after June 22, 2020.

occupancy units to register for inclusion

to be grandfathered under the law. That means that the first owners who register ILO units under the program will be the owners whose units are first approved. Once the 1,000 ILO unit maximum is reached, all the remaining units will have to revert to a use other than intermediate length occupancy, creating a “race” among buildings to apply first. By the end of this year, the city intends to publish procedures for evaluating requests to establish ILO units. The owner or operator of each building must submit a complete application within 24 months of the effective date of the law (June 22, 2020). The new law has not received much public attention. It is expected that once 1,000 ILO units are approved (which may occur in the next six to twelve months)

SFAA needs

you.

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sfaa.org/Public/Fundraising/ Give_Now to find out more.

many property owners—even single-family homeowners—will be quite surprised when the city begins to send out notifications telling them that they must cease

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

Get Answers. Confused about local and state-

advantage of SFAA’s legal informa-

period for existing intermediate length

these existing ILO units are not likely

?’s

wide rental housing laws? Take

The clock is now ticking on a 24-month

in the maximum 1,000 ILOs allowed;

Legal

*SFAA Legal Fund donations are tax deductible.

tion network. Before every SFAA General Membership Meeting, a diverse panel of San Francisco landlord attorneys answers your questions about your property, your tenants and the Francisco Rent Ordinance. SFAA monthly meetings and legal panels are a benefit just for members, so make sure you are getting the most out of your membership and be sure to attend the next meeting.

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SEPTEMBER 2020 | SF APARTMENT MAGAZINE

5/20/11 1:16 PM

sf.0219.rentals-in-sf.pdf

2/6/19

7:16 AM

Landlord & Leasing Agent, A Winning Combo. C

CMY

Having over 25 rental units of her own, Jackie brings first-hand experience as a landlord to all of our Rentals In S.F. clients. Every day, our team endeavors to find qualified tenants for our clients. With an expert understanding of the ever changing San Francisco rental market, we have made it our priority to fill your vacant unit quickly, effortlessly, at market rent and with your ideal tenant! With just one phone call, Jackie will come over to access your needs, appraise your unit, and do all the marketing, prospecting and screening. We then present you with a qualified tenant ready to move in. Call Jackie at Rentals In S.F. to fill your vacancy. It will be one of the best calls you’ll ever make. Just ask all our clients!

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SF APARTMENT MAGAZINE | SEPTEMBER 2020

Price Per Sq. Ft.

Market View… continued from page 20

$700 $600

to see low sales figures and declines in all

$500

value indicators. Instead, we have strong transaction levels and rising value indica-

$400

tors. First quarter stats were strong, and

$300 $200 $100

5-9 Units

we had positive momentum heading into

10+ Units

mid-March when San Francisco slammed on the brakes and everything came to a

2016

2017

2018

2019

screeching halt. The shelter-in-place man-

2020 Q2

Source: CoStar Comps

date took effect mid-March, and in-progress apartment transactions either proceeded, renegotiated, or were cancelled. Properties that were in the marketing stage went on hold since it was no longer possible to

Price Per Unit

enter units. This continued through most of

$600,000

May. By June, apartment offerings started re-entering the marketplace, and as of late

$500,000

July, we are back at it.

$400,000 $300,000

The process has changed and we are doing

$200,000 $100,000

5-9 Units

our best to minimize entry into occupied

10+ Units

units and navigating the situation as best

2016

2017

2018

2019

2020 Q2

Source: CoStar Comps

as possible. My personal experience with tenants has been very positive to date. Back in April and early May, I did not attempt to access tenant-occupied units. By late May, I started feeling out the process. I have not been denied access to any units in any of

the buildings I have been marketing. The

Transactions

first half of 2020 has outperformed most

expectations and our industry can certainly

YTD 5-9 Units

enjoy this good news.

YTD 10+ Units

50 40

I had a couple units that vacated at the end

of June and subsequently had received

notice from vacating tenants at the end of

May. I posted ads and rented both units

2016

2017

2018

2019

very quickly in early June with minimal to

2020 Q2

Source: CoStar Comps

no decline in rent. I received approximately 25 inquiries within a few days and noticed all inquiries were current San Francisco residents looking to upgrade into a better

$400

neighborhood and unit.

Volume

$350

Around mid-June, postings for rental units

Millions

$300

YTD 5-9 Units

$250

YTD 10+ Units

started increasing daily and then quickly skyrocketed. The trend continues as there has been mass migration from parts of the

$200

city and from the city altogether. There

$150

were many things to love about our city and

$100

the city lifestyle. However, now residents

$50 $0

2016

2017

2018

Source: CoStar Comps

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

2019

2020 Through Q1

cannot go to shows, museums, concerts, street fairs, restaurants, and nightlife—people are holed up and stir crazy.

Help Us, Help You. Sign up for SFAA’s Advocacy Team.

The SFAA Advocacy Team was created to defend the rights of San Francisco property owners. We are looking for volunteers to join our advocacy team. Volunteers will receive training and be tasked with advocating for local building owners, speaking at legislative hearings and writing to legislators to share personal experiences. We can change the conversation at City Hall! With your help, we can rewrite the landlord-tenant narrative and show how bad policy hurts small property owners. For more info contact Charley Goss at 415-255-2288 x14 or charley@sfaa.org.

sfaa’s 2020

TROPHY AWARDS Nominations Coming Soon

For More Information visit www.sfaa.org or contact Vanessa Khaleel at 415.255.2288 or vanessa@sfaa.org St. Regis, SF 125 3rd Street I 6-7 pm Cocktail Hour I 7-9 pm Formal Dinner & Award Presentation

SF APARTMENT MAGAZINE | SEPTEMBER 2020

Current vacancy rates are at all-time highs and rents continue to decline. High-end properties have been most discounted; they face rising competition from new supply and a slower leasing environment. New developments are often leased by incoming job takers, and these proper-

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itself. I moved to the city approximately 30 years ago from the Midwest. I came to San Francisco for quality of life. I was attracted by a spirit in the people and the city. All great empires have crumbled, and it is not because the citizens could not control their spending habits and govern their lives successfully. Empires crumble because government cannot govern themselves. San Francisco could be one of the richest cities in the world, yet the city has squandered its fortune. Instead of paving the streets with gold, they are littered with needles and worse. Local and state politicians continue to propose and pass legislation that attacks property owners. The November election is quickly approaching, which represents one

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sfaa’s Lunch & Learn

30 Day Notice of Intent to Vacate Webinar LUNCH & LEARN 30 DAY NOTICE OF INTENT TO VACATE WEBINAR

Do you know all the ins and outs of processing a 30 Day Notice of Intent to Vacate? Want to learn about what your responsibilities as a landlord? Come and learn on your lunch the process of how to deal with a 30 day notice of intent to vacate from your tenant. This class will be taught by Michelle Horneff-Cohen of Property Management Systems. Upon registration, you will receive the Zoom webinar instructions. DATE & TIME:

Tuesday, September 1, 2020 12:00 p.m. to 1:00 p.m. LOCATION:

Jewish Community Center 3200 California Street Beit Midrash Room 209

REGISTRATION:

For more information contact Stephanie Alonzo at: 415.255.2288 x13 or stephanie@sfaa.org Credit Card payment required for Non-Members

COSTS:

Members: $25 Non-Members:$40

sfaa’s Lunch & Learn

Capital Improvements Passthroughs Webinar PASSTHROUGHS 101 CLASS

Looking of ways to recoup some of the costs for your unit? What are the things you can claim for a Capital Improvement? Come and learn what documentation is required to be sent, how to perform a Capital Improvement on your lunch. This class will be taught by Michelle Horneff-Cohen of Property Management Systems. Upon registration, you will receive the Zoom webinar instructions. DATE & TIME:

Wednesday, September 9, 2020 12:00 p.m. to 1:00 p.m. LOCATION:

Jewish Community Center 3200 California Street Beit Midrash Room 209

REGISTRATION:

For more information contact Stephanie Alonzo at: 415.255.2288 x13 or stephanie@sfaa.org Credit Card payment required for Non-Members

COSTS:

Members: $25 Non-Members:$40

SF APARTMENT MAGAZINE | SEPTEMBER 2020

sfaa 2 2020calendar

sfaa

September

TUESDAY, SEPTEMBER 1

THURSDAY, SEPTEMBER 3

MONDAY, SEPTEMBER 7

TUESDAY, SEPTEMBER 8

30 Notice of Intent to Vacate

Zoom Webinar System

11:30 a.m.

Final Move-Out/SDR

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Lunch & Learn Initial Inspection 12:00 p.m. to. 1:00 p.m.

Board of Directors Mtg.

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

THURSDAY, SEPTEMBER 10

THURSDAY, SEPTEMBER 17

MONDAY, SEPTEMBER 24

Zoom Webinar System

Capital Improvement

Zoom Webinar System

1:00 p.m.

Landlord 101 Part I Webinar 10:00 a.m. to. 1:00 p.m.

Members $65 Non Members $85

Lunch & Learn

Landlord 101 Part II Webinar 10:00 a.m. to. 1:00 p.m.

Passthroughs

SFAA Annual Virtual Trade Show

Members $65 Non Members $85

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40 TUESDAY, SEPTEMBER 22

FRIDAY, SEPTEMBER 25

and Eviction Control Overview

Webinar

AB1482 Statewide Rent Control Zoom Webinar System

10:00 a.m. to. 11:30 a.m.

Members $45 Non Members $55

Understanding Costa Hawkins Zoom Webinar System

10:00 a.m. to. 12:00 p.m.

Members $45 Non Members $55

SFAA MEMBER MEETINGS WILL BE HELD VIRTUALLY UNTIL FURTHER NOTICE DUE TO COVID-19. FOR TOPICS AND SCHEDULES, TURN TO PAGE 56 OR VISIT SFAA.ORG.

October MONDAY, OCTOBER 5

THURSDAY, OCTOBER 8

FRIDAY, OCTOBER 16

MONDAY, OCTOBER 19

11:30 a.m.

of Notice Webinar

Zoom Webinar System

TBD

Board of Directors Mtg.

How to Serve Every Kind Zoom Webinar System

10:00 a.m. to. 11:00 a.m.

Members $40 Non Members $50

Covid-19 Legal Discussion 10:00 a.m. to. 11:00 a.m.

Members $45 Non Members $55

Virtual Member Meeting 1:00 p.m.

FRIDAY, OCTOBER 30

SFAA 2020 Lease Review Zoom Webinar System

10:00 a.m. to. 12:00 p.m.

Members $45 Non Members $55

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

join online at sfaa.org or call 415.255.2288

2020 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$25.00

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 2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

SFAA’S

TENANT SCREENING SERVICE 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. CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

CAPITAL IMPROVEMENTS

The capital improvement interest rates for 3/1/19 through 2/29/20 are listed below: AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

2.8%

.01312

10 YEARS

2.9%

.00961

15 YEARS

3.0%

.00691

20 YEARS

3.0%

.00555

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

03/01/20 - 02/29/21

2.2%

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

03/01/17 - 02/28/18

0.6%

2014-2015

$18.00

03/01/16 - 02/28/17

0.2%

2013-2014

$14.50

03/01/15 - 02/29/16

0.1%

2012-2013

$14.50

03/01/14 - 02/28/15

0.3%

2011-2012

$14.50

03/01/13 - 02/28/14

0.4%

2010-2011

$14.50

03/01/12 - 02/28/13

0.4%

2009-2010

$14.50

03/01/11 - 02/29/12

0.4%

2008-2009

$14.50

03/01/10 - 02/28/11

0.9%

2007-2008

$13.00

2006-2007

03/01/09 - 02/28/10

3.1%

03/01/08 - 02/28/09

5.2%

$11.00

03/01/07 - 02/29/08

5.2%

2005-2006

$10.00

03/01/06 - 02/28/07

3.7%

2004-2005

$11.00

2003-2004

$21.50

2002-2003

$21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

ALLOWABLE RENT INCREASES

2020 – 2021: 1.8%

Effective March 1, 2020, through February 28, 2021, the allowable annual rent increase is 1.6%. 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

03/01/20 - 02/29/21

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

415-252-4600

& information

sfgov.org/rentboard

SF APARTMENT MAGAZINE | SEPTEMBER 2020

On the

list ... Is finding a great

service provider on

How

to connect As SFAA pivots to provide you services during the pandemic, there is a new way to con-

out the Professional

nect with SFAA. Email Mem-

Services Directory for

berQuestions@sfaa.org to have

industry professionals.

starts on page

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

“Californians can’t afford Proposition 21. Just like the version of this ballot measure California voters rejected less than two years ago, Proposition 21 would be a disaster for our schools and our communities,” said Steven Maviglio, spokesman for Californians for Responsible Housing. “Passage would likely mean our cities, already struggling because of COVID-19, would be forced to make even greater cuts in services and/or raise taxes. Meanwhile, homeowners would see the value of their properties drop and renters would have fewer housing options.”

your To-do List? Check

experienced apartment

Proposition Opposition… continued from pg. 28

To learn more about the campaign to defeat Proposition 21 and ways you can help, visit the Californians for Responsible Housing website: NoOnProp21.vote. Debra Carlton is the executive vice president of state public affairs for the California Apartment Association. She can be reached at DCarlton@ caanet.org.

SLP_SFApt_Ad_0813_Shwiff_SFaptAd_0813 8/19/13 3:

your questions and concerns promptly addressed.

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You can also follow the happenings of your fellow SFAA members and find out the lat-

Shwiff, Levy & Polo, LLP Certified Public Accountants and Management Consultants

est in the industry by connect-

EXPERIENCED, RESPONSIVE REAL ESTATE ADVISORS

ing with SFAA on Facebook. ■

Search San Francisco Apartment Association and “Like” it to add it to your news feed. Follow SFAA on Twitter at www.twitter.com/SFAptAssoc.

■

■ ■

Real Estate Tax Matters Specialists QuickBooks for Property & Business Accounting 1031 Exchange Guidance & Tax Law Explanation Estate Planning with Real Estate Assets Tax Returns with Audit Risk Reduction for Investors 433 California St., Suite 1000 San Francisco, CA 94104 (415) 291-8600 ■ info@yoursrvc.com www.slpconsults.com

2020 Summer CCRM Webinar 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

7/28/2020

1PM-3PM

$85.00

$100.00

PMR101

Renting the Property

7/30/2020

1PM-3PM

$85.00

$100.00

PMR102

Beginning and Maintaining the Tenancy

8/11/2020

1PM-3PM

$85.00

$100.00

PMR103

Renewal of Tenancy and Ending the Tenancy

8/13/2020

1PM-3PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining the Property

8/18/2020

1PM-3PM

$85.00

$100.00

PMR105

Liability & Risk Management

8/20/2020

1PM-3PM

$85.00

$100.00

PMR106

Budget Development and Implementation

8/25/2020

1PM-3PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

8/27/2020

1PM-3PM

$85.00

$100.00

PMR108

Professional Skills for Supervisors

9/1/2020

1PM-3PM

$85.00

$100.00

EXAM

CCRM Final Exam

9/3/2020

1PM-3PM

FREE

Class Location Zoom Webinar System Upon registration the Zoom link will be emailed to the student Class is every Tuesday and Thursday

See schedule below

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x.13 Email: stephanie@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. CCRM Certification Renewal Policy: In order to keep the certification active, CCRMs must complete twelve hours of continuing education credits & submit a renewal application along with a renewal fee every other year (2 hours of these credits must be in Fair Housing)

caanet.org events@caanet.org 800.967.4222 • 980 Ninth Street, Suite 1430 • Sacramento, CA 95814

SF APARTMENT MAGAZINE | SEPTEMBER 2020

sfaa professional

services directory 1031 TAX DEFERRED EXCHANGE SERVICES

FIRST AMERICAN EXCHANGE COMPANY 415-244-1339 www./firstexchange.com/ HERITAGE CAPITAL ADVISORS Eric Scaff 415-834-1031 www.heritagecap.com LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com

ACCOUNTANTS

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

ALARM COMPANY

AEC ALARMS Michelle Rogers 408-298-8888 x123 www.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 J.J. Panzer www.ppmaofsf.org

ATTORNEYS

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law CHONG LAW Dolores Chong DENNIS C. HYDE Dennis C. Hyde hydelaw@pacbell.net

415-490-9020

THE LAW OFFICE OF ED SINGER Edward Singer 650-393-5862 www.edsinger.net

FRIED & WILLIAMS LLP Clifford E. Fried www.friedwilliams.com

415-421-0100

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

GOLDFARB & LIPMAN LLP Erica Williams 510-836-6336 eorcharton@goldfarblipman.com goldfarblipman.com

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

GOLDSTEIN, GELLMAN, ET AL, LLP Brett Gladstone 415-673-5600 x 238 www.g3mh.com

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com

415-861-8800

JACOBSON LAW PC Isaac@jacobsonlawsf.com 415-421-0100 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 THE LAW OFFICES OF KIMBALL, TIREY & ST. JOHN LLP Daniel Kimball 800-525-1690 www.kts-law.com LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com

415-409-7611

LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com

415-438-7807

LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net

415-753-3811

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070

FISHER & PHILLIPS, LLP Jason Gellar www.fisherphillips.com

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

LAW OFFICE OF JULIANA E. PISANI 415-800-7562 Juliana Pisani Juliana@jpisanilaw.com LAW OFFICES OF LAWRENCE M. SCANCARELLI Lawrence M. Scancarelli 415-398-1644 www.sfrealestatelaw.com

NICHOLAS GOLDMAN LAW Nicholas Goldman 415-350-8740 nicholas@nicholasgoldmanlaw.com O’GRADY LAW GROUP John O’Grady john@ogradylaw.com www.ogradylaw.com

415-986-8500

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com TOUR-SARKISSIAN LAW OFFICES Christine Tour-Sarkissian 415-626-7744 www.tslo.com TRN LAW ASSOCIATES Tiffany Norman tiffany@trnlaw.com

415-823-4566

WASSERMAN-STERN David Wasserman 415-567-9600 www.wassermanstern.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 SOLUTIONSPREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com www.crownandshieldpestsolutions.com SCENT TEK Brent & Kevin Youngblood 415-933-0879 www.scent-tek.com

CLEANING SERVICES

OPTIMUS BUILDING SERVICES Claudia Giraldo 650-290-4607 optimusbuildingservices.com

CONSULTANTS: PERMITS & PLANNING

CENTER FOR SUSTAINABLE ENERGY Sarah Bliss 858-633-8099 sarah.bliss@energycenter.org EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

CONTRACTORS

AGUILEAR CONSTRUCTION COMPANY Javier Aguilear 707-495-3932 javier@aguileraco.com SKYLIGHT REMODLING Josh Levitan contact@skylight.com www.skylight.com

800-961-2580

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

ENERGY SERVICES / GAS & ELECTRIC

PACIFIC GAS & ELECTRIC COMPANY Sebastian Conn 415-972-5201 www.pge.com

ENVIRONMENTAL CONSULTING

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

FIRE ESCAPE INSPECTION & MAINTENANCE ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

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

FIRE PROTECTION CONTRACTORS

BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com

FIRST FOUNDATION BANK Michelle Li www.ff-inc.com

415-794-2176

LENDING / FULL SERVICE BANKS

BELL FIRE AND LIFE SAFETY Marc Belluomin 650-580-5306 bellfire365@gmail.com

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

COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com

LENDING / INSTITUTIONS

MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.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

HARDWARE GRAINGER Mark D. Sheddon

800-472-4643

INSURANCE COMPANIES

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com BIDDLE-SHAW INSURANCE SERVICES, INC Greg Holl 415-586-7200 www.biddleshaw.com COMMERCIAL COVERAGE INSURANCE AGENCY Paul Tradelius 415-436-9800 www.comcov.com GORDON ASSOCIATES INSURANCE SERVICES Dave Gordon, CLU 650-654-5555x6972 David.gordon@gordoninsurance.com

INTERNET SERVICES PROVIDERS

COMCAST/XFINITY Michael Juliano www.xfinity.com

925-495-9922

LAUNDRY EQUIPMENT

WASH MULTIFAMILY LAUNDRY SYSTEMS Cathy Barsotti 650-340-8054 www.weblaundry.com

LENDING / FINANCIAL SERVICES

COUNTERPOINTE SRE David Snow 855-431-4000 www.counterpointeSRE.com

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

CITY REPAIR SERVICES Fernando Fonesca 415-602-6524 contact@citycarerepair.com MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com ONE STOP MAINTENANCE & PROPERTY SERVICES Lupe Villaloblos 408-829-0727 www.sf1stop.com WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

MEDIATION

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Matthew Tom 415-782-8940 mtom@sfbar.org

MORTGAGE BROKER THE RINCON GROUP Casey Wright

415-622-7450

ORGANIC WASTE SOLUTIONS

ECOSAFE ZERO WASTE, INC. Daniel Redick 310-569-0624 ecosafezerowaste.com Daniel@EcoSafeZeroWaste.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

SF APARTMENT MAGAZINE | SEPTEMBER 2020

PETERS PAINTING SERVICES Peter Pantazelos 415-647-4722 www.peterspainting.com TARA PRO PAINTING INC. Brian Layden www.tarapropainting.com

415-334-3277

CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com

PLUMBING SERVICES

PROPERTY MANAGEMENT

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

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com

ALEXANDERSON PROPERTIES Eric Alexanderson 415-285-3737 www.alexandersonproperties.com

415-576-1043

R & L PLUMBING Larry Bustillos 415- 651-4977 larry@rl.plumbing www.rlplumbingsanfrancisco.com

AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com

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

PAINTING SUPPLIES SHERWIN-WILLIAMS Khuat Hoang Sw7276362@Sherwin.com

PEST CONTROL

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

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

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

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

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com 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

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com S&L REALTY Robert Link www.slrealty-sf.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

J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456

WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com

LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

415-648-1516

members SEPTEMBER 2020 | SF APARTMENT MAGAZINE

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 CHANDLER PROPERTIES Carolyn Chandler 415-921-5733 www.chandlerproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com

415-221-2032

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

EQUITY ONE Brenda M. Obra www.equity1sf.com

415-441-1200

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com GEORGE GOODWIN REALTY, INC. Chris Galassi 415-681-1265 www.goodwin-realty.com GREENTREE PROPERTY MANAGEMENT Mike McCamish 415-828-8757 www.greentreepmco.com GM GREEN REAL ESTATE INC. George Green (415) 608-6485 ggreen@gmgreen.com www.gmgreen.com HANFORD•FREUND & CO. J. Timothy Falvey www.hanfordfreund.com

415-981-5780

HOGAN & VEST INC. Simon Wong simon@wongsf.com

415-237-6240

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com JD MANAGEMENT GROUP, INC. Jonathan Davis 510-387-7792 jonathan.davis@jdmginc.com

415-648-1516

THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.com/

COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com

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

W. PROPERTY MANAGEMENT Gary Petrison 707-545-6187 gary@wpropertymanagement.com

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

MW PROPERTY GROUP Marc Wilson 415-640-5807 marc@mwpropertygroupco.com

WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co

WEST & PRASZKER REALTORS Michael Klestoff 415-699-3266 www.wprealtors.com

CORCORAN COMMERCIAL Jeremy Williams (415) 932-9846 jwilliams@CorcoranGL.com www.sfcommercialreal

NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com

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

PACIFIC UNION INTERNATIONAL PROPERTY MANAGEMENT Susan Lucas 415-722-4724 www.pacunionpm.com

PROPERTY MANAGEMENT SOFTWARE

LINGSCH REALTY Natalie M. Dress www.lingschrealty.com

PILLAR CAPITAL REAL ESTATE Jonathan Ng (415) 885-9584 jonathan@thepillarcapital.com PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com PRIME METROPOLIS PROPERTIES, INC. Tom Chan 415-731-0303 tomchan@pmp1988.com 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 KristineAbbey 650-290-3084 kristine@rockawayresidential.com ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com SC PROPERTY MANAGEMENT Robert Guglielmi 650-342-3030 bob.guglielmi@scpropsm.com SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.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 salman@sutroproperties.com

CORCORAN GLOBAL LIVING COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582

HEMLANE, INC. Dana Dunford dana@hemlane.com

385-355-4361

STESSA Victor Perez www.stessa.com

626-524-4931

LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

MARCUS & MILLICHAP David Nelson 415-312-2245 dnelson@MarcusMillichap.com

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

REAL ESTATE APPRAISALS HARPER & ASSOCIATES Jay Harper JHARPSF@att.net

415-674-9243

415-717-8709

MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com PACIFIC UNION COMMERCIAL Stephen Pugh spugh@pacunion.com

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

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

REAL ESTATE BROKERS & AGENTS

SHAMROCK REAL ESTATE COMPANY Trent Moore 415-359-2400 www.shamrocksf.com

ALAIN PINEL INVESTMENT GROUP Mark Bonn 415-614-4354 mbonn@apr.com ALAIN PINEL INVESTMENT GROUP Jay Greenberg 415-593-8615 www.aprinvestmentgroup.com ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BAY AREA PREMIER PROPERTIES Peter Fisler 415-606-6621 www.bayareapremierproperties.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 COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad

415-386-3111

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com VANGUARD COMMERCIAL BROKERAGE Allison Chapleau 415-516-0648 www.allisonchapleau.com WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

REAL ESTATE INVESTMENTS ALAIN PINEL INVESTMENT GROUP Trigg Splenda 415-593-8616

MARCUS MILLICHAP Clinton C. Textor III 415-425-9123 www.marcusmillichap.com URBAN GROUP REAL ESTATE Louis Cornejo 415-863-1775 louis@urbangroupsf.com

SF APARTMENT MAGAZINE | SEPTEMBER 2020

sfaa sfaa 2020 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

REGULAR MEMBER DUES

Base Fee

Units Fee

1-50

$385 +

$6.45 per unit =

51-250

$475 +

$6.45 per unit =

251-500

$675 +

$6.45 per unit =

501-1,000

$875 +

$6.45 per unit =

1,001

$1,375 +

$6.45 per unit =

Units

Base Fee

Unit Fee

1-50

$485 +

$3.95 per unit =

51-250

$575 +

$3.95 per unit =

251-500

$775 +

$3.95 per unit =

501-1,000

$975 +

$3.95 per unit =

1,001

$1,475 +

$3.95 per unit =

Contact Person Company/Title Address Zip

Mobile Phone Email Address

Website PAYMENT METHOD MC

Visa

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

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

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

(415) 279-2791

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

CONTACT INFORMATION

Amex

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

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com

ASSOCIATE MEMBER DUES: $495

Check

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

RESIDENTIAL LEASING

TOTAL AMOUNT:

State

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

MAZAL55 PROPERTIES Oren S. Bordo orenb55@gmail.com

MANAGEMENT COMPANY DUES

City

RENT BOARD PETITIONS

APARTMENT LIST Alex Mashburn 678-467-0411 amashburn@apartmentlist.com

TOTAL AMOUNT:

TOTAL UNIT AMOUNT:

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

RENTAL LISTING SERVICES

Units

TOTAL UNIT AMOUNT:

REFINISHING / RESURFACING SERVICE

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

415-509-3456

LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

415-648-1516

RELISTO Eric Baird www.relisto.com

415-236-6116

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

415-409-3263

RENTSFNOW Kathy Claussen kclaussen@veritasinv.com

415-762-0213

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

SECURITY

ADT-MULTI FAMILY Jeanette Mendez jjmendez@adt.com www.adt.com/smart-

562-712-7504

MARINA SECURITY SERVICES, INC. Sam Tadesse 415-722-1168 stadesse@marinasecurities.com www.marinasecurities.com

SEISMIC RETROFIT & STRUCTURAL ENGINEERING BAI CONSTRUCTION Behnam Afshar www.baiconstruction.com

510-595-1994

SGDM, LLC George Mak www.sgdmllc.com

415-462-0619

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 REALPAGE Stacy Blackwell www.realpage.com

972-820-3015

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com ZUMPER INC. Diana James diana@zumper.com

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Openscope Studio ACCOUNTANTS

Shwiff, Levy & Polo, LLP ATTORNEYS

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Luther Burbank Savings

One Stop Maintenance W. Charles Perry West Coast Premier Construction FIRE ESCAPE SERVICE

Great Escape Fire Escape Services LOCKSMITHS

WATER DAMAGE SERVICE

PAINTING CONTRACTORS

Crown Lock & Safe Warman Security

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

Kruit Painting Pac West Painting Peter’s Painting Service Tara Pro Painting

WATERPROOFING

PETITION SERVICES

Please note that acceptance of associate membership does not necessarily constitute any endorsement or recommendation, express or implied, of the associate member or any goods or services offered.

Rent Board Passthroughs

34 40 58 55 53 52 40 52 40 54 55 40

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Berendt Properties Gaetani Real Estate, Inc.

Maven Maintenance Real Management Company Rentals in SF Structure Properties West Coast Property Management

35 58 37 21 37

REAL ESTATE BROKERS

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

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

Amore Real Estate 52 Coldwell Banker Commercial / McGue 25 Colliers / DeVincenti 2 Compass / Antonini 13 Compass / Bonn & Webb 33 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Pugh 31 Corcoran / Williams 29 Kay Properties & Investments, LLC 17 Kenney & Everest Real Estate 53 Marcus & Millichap 18-19 Newmark Knight Frank / Sheridan & Boersma 59 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 56 Vanguard Properties / Kilby Stenkamp 54 Zephyr / Terrence Jones 15 UTILITIES BILLING SERVICES

Livable 35 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.

6 60

SF APARTMENT MAGAZINE | SEPTEMBER 2020

Legal Questions FOR ALL YOUR REAL ESTATE NEEDS SERVING SAN FRANCISCO PROPERTY OWNERS FOR OVER 50 YEARS

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

Many years of experience with property management companies and property owners.

Kruit Painting Inc. 415.254.7818 COMMERCIAL & RESIDENTIAL APARTMENT BUILDING SPECIALIST INTERIORS & EXTERIORS EXCELLENT REFERRALS FREE ESTIMATE 87 Loomis St., San Francisco CA 94124 www.kruitpainting.com • License No. 846351

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

Get Answers. Confused about local and statewide rental housing laws? Take advantage of SFAA’s legal information network. Before every SFAA General Membership Meeting, a diverse panel of San Francisco landlord attorneys answers your questions about your property, your tenants and the San Francisco Rent Ordinance. SFAA monthly meetings and legal panels are a benefit just for members, so make sure you are getting the most out of your membership and be sure to attend the next meeting.

The News… continued from page 10

Acquisitions & Sales • Commercial & Residential Leasing

Occupancy E, A, R2.1, R3.1, or R4), your completion of work and issuance of certificate of final completion is due September 15, 2020.

●

Commercial Leasing

●

Residential Leasing

●

Property Acquisitions

●

Property Sales

For more information, visit www.sfdbi.org.

SFAA Updates The SFAA office will remain closed during the pandemic. However, SFAA staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you.

Everest Mwamba, Realtor® BRE #01717299 (415) 377-2177 cell

As SFAA pivots to provide you services dur-

everest@everestmwamba.com

ing the coronavirus crisis, there is a new way to connect with SFAA. Email MemberQuestions@sfaa.org to have your questions and concerns promptly addressed.

1569 Leavenworth Street San Francisco, CA 94109 Corporate BRE #01984640 (415) 929-0717 office everestmwamba.com

The annual SFAA Trade Show will be virtual this year (more information coming

BRE #01984640

soon). At the September 24 event, attend-

sf.0319.great.escape.pdf

ees will learn all about the latest trends,

3/3/19

6:34 PM

products and services in the multifamily housing industry. The event is free and open to the general public, so invite your friends. For more information on the trade show or to become a sponsor, con-

Keeping The San Francisco Bay Area Safe Since 1988

tact vanessa@sfaa.org. The SFAA Rent Forbearance Form and information on temporary rent reductions are available at www.sfaa.org. C

SFAA classes will be available online dur-

ing the coronavirus crisis. The San Fran-

cisco Apartment Association is happy to

announce that current CCRM students can

continue their education during the pandemic right from home. We understand keeping up education is crucial and want

FIRE ESCAPE SERVICE & MAINTENANCE

CMY

to assist our members to stay up to date. Thus we will be setting up more webinars

Safety is our Top Priority

in the future. See the calendar on page 42 for a full list of classes.

FREE ESTIMATES

(415) 566-1479 www.greatescapeinc.com SF APARTMENT MAGAZINE | SEPTEMBER 2020

Legal Q&A… continued from page 16

TALENT. COLLABORATION. SUCCESS.

eviction action, and, believe it or not, you may also pursue it now. However, unlike the fast-paced UD, ejectments follow the same slow path as the breach of contract claim, meaning you will be waiting in line for at least a year before your tenant is removed by the Sheriff. Ejectment and breach of contract lawsuits can be combined into one proceeding, and, incidentally, California also permits you to add a UD action into this litigation so in the event UDs are once again permitted you might be able to drop the ejectment and breach of contract claims in order to speed along as a UD. So these are the basic options, but like all

KILBY STENKAMP

major historical events that promote social

kilby@vanguardsf.com

of things to come. Consider a California

change, view the UD hiatus as a harbinger

415.370.7582

where there may not be UDs, or the use

DRE# 01208585

of UDs might just be more restrictive. For decades, housing rights activists have highvanguardproperties.com

lighted the socioeconomic costs of tenant displacements. The legislature even passed statewide eviction control last October to combat evictions. Thus, maybe now is the moment to adjust the property manage-

• RESTORATION • WATERPROOFING • ENVIRONMENTAL • COLOR

• COMMERCIAL • RESIDENTIAL • EXTERIOR • INTERIOR

ment business model by exploring alternatives to the fast-tracked UDs. Just a thought for these challenging times. —Dave Wasserman

Exterior security footage leads me to believe that a long-time tenant has moved out of a studio apartment, and multiple subtenants have moved in. I’d prefer to start a new lease or to at least know what’s going on. Is the guideline still to turn a blind eye?

A. Different practitioners have different opinions on the “blind eye” approach. The strategy emerged after the adoption of the Rent Ordinance (in 1979) but before the Costa-Hawkins Rental Housing Act (in 1995). Before Costa-Hawkins, San Francisco imposed “moderate” vacancy control, which otherwise allowed landlords to set market prices for vacant units and “partially vacant units” (where the last rent-controlled

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

tenant vacated). But it also cautioned several examples of when a landlord waived their vacancy decontrol rights. Many in our industry are familiar with the titular “6.14 notice” (named for rent board rule 6.14), which identifies subsequent occupants and reserves the right to increase their rent when their master tenant vacates. These days, a waiver of rent increase rights under rule 6.14 requires either an express waiver by the landlord or the failure to timely reserve rights to a later increase, once the master tenant reveals the sublessee to the landlord. However, waiver used to be much more insidious. A subtenant was deemed a “tenant” if they resided in a rental unit with the “permission, toleration, or passive consent” of the landlord. And if that standard weren’t relaxed enough, former rule 6.14 imputed acceptance if a landlord merely “acquired knowledge” of the occupant after they made a request for repairs. (This put a landlord in a precarious position, given their obligation to provide repairs, and their dwindling ability to preserve their vacancy decontrol rights by evicting for violation of a subletting provision. The 1999 Leno Amendment guaranteed the right of master tenants to make one-for-

License No. 797467

one roommate replacements, and the 2015 Jane Kim Amendment allowed an increase in occupancy up to an arbitrary personper-bedroom minimum.) Costa-Hawkins preserved certain existing rights of pre-1996 subtenants, but otherwise dictated market rate increases when the last original occupant no longer permanently resided in the rental unit. The “blind eye” approach was no longer necessary, provided the landlord did not create a direct contractual relationship with the subtenant. That said, even if you may not be punished down the road, merely because you have well-founded suspicions, your basis for an

Seismic & General Contractors

www.wcpc-inc.com Tel: (510) 271-0950

Conform To New Soft Story Apartment Building Seismic Ordinance San Francisco, Alameda, Oakland & Berkeley • Successful track record of seismic retrofitting numerous soft-story apartment buildings in the Bay Area. • Years of experience in cost-effective seismic retrofit design and construction—all under one company. • Guaranteed approval of engineering and construction in conformance to Soft Story Ordinance. • Screening, evaluation, engineering, construction, final city sign-off.

increase exists now, given the vacating of the rent-controlled master tenant. In other words, it is the absence of the master tenant, not the presence of the subsequent oc-

For inquiries, please contact Homy Sikaroudi, PhD, PE

cupant, that justifies the increase, and your sf.1013.west.coast.premier.indd 1

9/18/13 2020 12:32 55 PM SF APARTMENT MAGAZINE | SEPTEMBER

sfaa sfaa 2020 What You Need to Know

delay alone may constitute a waiver of your vacancy decontrol rights. Nonetheless, the exercise of those rights is complicated these days. The COVID-19 pandemic may compel landlords to settle for lesser rents in lieu of vacancy. Further, SFAA members have been following the Association’s challenge to a regulation that finds tenant harassment if a Costa-Hawkins increase “coerces” a tenant to vacate. SFAA sued the City of San Francisco in February

2020 SFAA UPDATES

VIRTUAL MEMBER MEETINGS

of 2019 to overturn this regulation, but the hearing has been continued half a dozen times. While the hearing is currently set for August 20, we quickly approach the

September 24, 2020: SFFA Annual Trade Show (see page 53).

November election, where Proposition 21

October 9, 2020: Candidates and Issues

gone, you should exercise your opportu-

seeks to repeal Costa-Hawkins. In other words, if the last original occupant is really nity to increase the rent yesterday.

November 16, 2020: CAA Legislative Update

UPCOMING CLASSES During shelter-in-place, 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 48.

—Justin Goodman The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. David Wasserman is with Wasserman-Stern Law Offices and can be reached at 415-567-9600. Justin A. Goodman is with Zacks, Freedman & Patterson, P.C. 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.

SFAA OFFICE CLOSURE The SFFA office will remain closed during the shelter-in-place mandate. However, SFAA staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is

SFAA TRADE SHOW WILL BE VIRTUAL The annual SFAA Trade Show will be held virtually on September 24, 2020. For more information, turn to page 53. To sponsor the event,email Vanessa Khaleel at vanessa@sfaa.org.

San Francisco Apartment Association

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

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

415.580.9095 mikestack@vanguardsf.com MikeStackSF.com

A game.

DRE# 01932 2 8 0

Be on your

sfaa 2020 officer & director nomination Request for Consideration

Please tear out and complete this page. Then fax it to the SFAA office (by Tuesday, October 13, 2020) at 415-255-1112, or mail it to Chair, Nominating Committee, SFAA at 265 Ivy Street, San Francisco, CA 94102. Thank You! Please feel free to attach a resume to your application. CONTACT INFORMATION Name: Member #: Member since: Address: City:

State:

Business phone:

Home phone:

Email address:

Website:

Zip:

Units owned or managed: Local apartment association activities (if any):

State apartment association activities (if any):

Community interests:

Current or previous board experience:

Reference 1:

Reference 2:

Phone:

Relationship:

Reference 3: Phone:

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

SF APARTMENT MAGAZINE | SEPTEMBER 2020

VALUE-ADDED DEVELOPMENT

Contact : charles@wcharlesperry.com 415.509.2956

W. CHARLES PERRY & ASSOCIATES I N V E S T M E N T, D E S I G N A N D C O N S T R U C T I O N

SEPTEMBER 2020 | SF APARTMENT MAGAZINE

2418 VAN NESS AVE - 12 UNITS - $6,250,000

Another Good One — Just Listed! Large, well-maintained 12-unit apartment building

• Prime Russian Hill Apartment Building

situated on the west slope of Russian Hill. Located

• 3 Vacant Units

just one block from Upper Polk Street, the property

• Unit Upgrade Opportunities

is centrally located and provides residents with easy

• Low Expenses; Decommissioned Boiler

access to downtown by foot. The building consists

• Seismic Completed

of 1 studio, 7 one-bedrooms and 4 two-bedrooms units (three units are currently vacant). Nearly all units come with a side porch, which permits easy installation for in-unit washer and dryers.

www.2418vanness.com

• 1 Block from Upper Polk Street • Easy Opportunity to Add In-Unit W/D

MATTHEW C. SHERIDAN

415.273.2179 License 01390209 matthew.sheridan@ngkf.com

aptGroup

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

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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