SF Apartment Magazine December 2022

SF APARTMENT

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APARTMENT SF

Features 20

By Your Side

by CHARLEY GOSS 26 Dream Team by PAM MCELROY

SF APARTMENT magazine

San Francisco Apartment Association Office 265 Ivy Street

San Francisco, CA 94102

Tel 415-255-2288 Fax 415-255-1112

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

SFAA Staff

Executive Director Janan New Deputy Director Vanessa Khaleel Education Specialist Stephanie Alonzo Government and Community Affairs Charley Goss Marketing Lara Kisich

Member Services Gershay Castaneda Member Services Maria Shea Accountant Crystal Wang

SFAA Officers President Chris Bricker Vice President Robert Link Treasurer Jim Hurley

SFAA Directors

Eric Andresen, Honor Bulkley, Andre Ferrigno, David Gruber, Kent Mar, Neveo Mosser, J.J. Panzer, Bert Polacci, James Sangiacomo, Dave Wasserman

VOLUME XXXV, NUMBER 12 DECEMBER 2022

Published by San Francisco Apartment Association

Publisher Vanessa Khaleel

Editor Pam McElroy

Art Director Jéna Safai Production Manager Cameron Shaw Tel 415-255-2288 Web www.sfaa.org

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

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

The SF Apartment Magazine is published monthly for $84 per year by the San Francisco Apartment Association (SFAA), 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is not responsible for the return or loss of submissions or artwork. The magazine does not consider unsolicited articles. The opinions expressed in any signed article in the SF Apartment Magazine are those of the author and do not necessarily reflect the viewpoint of the SFAA or SF Apartment Magazine This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought. Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by the SFAA, express or implied, of the advertiser or any goods or services offered. Published monthly, the SF Apartment Magazine is distributed to the entire membership of the SFAA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Printing Partners Copyright @2022 by SFAA.

The More the Merrier

decrease in crime from November 20 through December 6 compared to the preceding 16-day period: 67% decrease in assault, 91% decrease in burglary, 82% decrease in larceny/theft, and 100% de crease in motor vehicle theft.

Compared to last year, the city has not seen the same elevation in crime going into this holiday season, largely at tributed to a scaled-up presence in the Union Square area, which has helped deter criminal activity. The goal of the Safe Shopper initiative is to continue these efforts.

Mayor Breed Kicks off Safe Shopper Initiative for the Holidays

The public safety initiative will focus on Union Square and other key tourist ar eas to support the city’s economic recov ery, building on the recent expansion of community ambassadors.

In November, Mayor Breed, Police Chief William Scott, District Attorney Brooke Jenkins, and business and commu nity leaders to kicked off the 2022 Safe Shopper initiative. The city will de ploy additional police and community ambassadors to the area for enhanced public safety to maintain a safe shop ping experience for visitors, workers, and residents.

“The safety of our residents, workers, and visitors is the City’s top priority, and I want to thank our public safety partners for taking every precautionary measure to ensure a successful holiday

season,” said Mayor Breed. “We are tak ing lessons learned from last year to in form this year’s safety strategy in Union Square and the surrounding areas. As we continue to work on our economic recovery, our public safety staff and community partners are focused on making sure everyone has a welcoming and positive experience supporting our local businesses.”

Following the 2021 mass organized retail theft incident in Union Square that brought felony charges to multiple people, Mayor Breed announced a new safety initiative in tandem with the San Francisco Police Department’s (SFPD) rollout of the Community Ambassador program (for more on this program, turn to page XX), which is comprised of civil ian retired police officers hired for their training and experience in community engagement. After the launch of this ef fort last year, SFPD reported a significant

Similar to last year, the city will work with SFPD to limit points of entry on Union Square with some street clo sures to automobile traffic as added safety measures. In addition to a ramped-up police presence in and around Union Square, the city plans to increase patrol in Union Square park ing garages by SFPD, the Park Rangers, and security personnel. More SFPD Community Ambassadors will be de ployed to Union Square as part of the Safe Shopper initiative.

Mayor Breed also announced the expansion of the community ambas sador program in downtown BART/ MUNI stations and key tourist areas, to include hiring more SFPD Community Ambassadors as part of ongoing work to address public safety incidents and revive San Francisco’s economic core. The expansion will include an increase to Ambassador presence throughout Union Square with an emphasis on add ing posts to Market Street between 4th and 5th streets.

Ellis Act Amendment

On July 18, 2022, Section 37.9A of the San Francisco Administrative Code was amended to impose more restrictions on owners’ rights to re-rent a with drawn unit.

The City’s safe shopper initiative will make holiday shopping safer for all.

Background

The Ellis Act (codified in Section 7060, et seq. of the California Government Code and implemented locally in San Francisco under Sections 37.9(a)(13) and 37.9A of the San Francisco Administrative Code) allows property owners to exit the residen tial rental market. However, it also creates limitations on an owner’s ability to re-rent withdrawn units. First, owners may not re-rent any unit for two years after the with drawal of that unit. Second, owners must give the displaced tenants a right of first refusal if the tenants’ unit is re-offered for rent within 10 years following the Ellis Act withdrawal. Third, the amount of rent that can be charged during the first five years following the withdrawal of the unit may not exceed the rent in effect at the time of the filing of the Ellis Act Notice of Intent to Withdraw (plus any increase authorized by the Rent Ordinance). Owners who do not comply with these rules face punitive dam ages equal to six months of the contract rent, as well as actual damages.

New Law

On January 1, 2020, the Legislature passed AB1399, amending the Ellis Act. One part of that amendment provides that an owner may not “decline to make a writ ten re-rental offer to any tenant or lessee who occupied a unit at the time when the owner” filed the Notice of Intent to With draw (owner-occupied units excepted). The amendment provides that the date of withdrawal for the entire property as a whole is the latest termination date of any unit at that property. This means that a claim by any one tenant to extend his/her termination date will extend the date of withdrawal for every unit at the property. These rules had not been implemented locally in San Francisco until the July 18, 2022 amendment to Section 37.9A.

San Francisco’s local implementation provides that if any unit is re-offered for rent during the ten-year-period follow ing the withdrawal of the units, the entire property must be returned to the rental market. The two exceptions to that rule are: (i) a unit that was the principal place of residence of any owner or owner’s family member at the time of withdrawal,

provided that it continues to be that per son’s principal place of residence when the units are re-rented; or (ii) a unit that is the principal place of residence of an owner when the units are returned to the rental market, if it is the owner’s principal place of residence (or that of a relative) at the time of re-rental. In addition, if the owner vacates the unit within 10 years from the date of withdrawal, the owner shall, within 30 days of vacating the unit, offer to re-rent the unit if the foregoing exceptions do not apply.

This amendment is likely to generate disputes among owners of buildings owned as Tenancies-in-Common (TIC). Certain TIC owners keep their San Fran cisco property as a “pied-a-terre” or for the use of guests and family members. It is not unusual for owners to live abroad for extended periods of time while keep ing their San Francisco property vacant based on their intention to return to San Francisco. Put simply, some owners do not want to be landlords. These owners may now be compelled to re-rent their unit if any owner in their TIC building decides to return their unit to the rental market during the ten year-period follow ing an Ellis Act eviction. Therefore, TIC Agreements should be carefully drafted to address any agreed-upon limitation on re-rental rights following an Ellis Act evic tion. TIC buyers should carefully review the TIC Agreement before buying a TIC unit that was withdrawn from the rental market to confirm that the unit will meet their intended use.

Ironically, this new amendment will also likely further limit the number of rental units in the City. California added the amendment in response to the decision City of W. Hollywood v. Kihagi (2017) 16 Cal.App.5th 739, where a withdrawing landlord began offering withdrawn units for market rate rents as soon as the indi vidual constraints expired. Certain legis lators regarded the landlord as exploiting a loophole, but the effect of the amend ment is that more units will stay off of the market longer. Well-meaning though it

SFAA SURVEY RESULTS

Earlier this year, we asked our membership to complete a survey based on the services we provide. We heard you loud and clear. Below is a summary of the survey results and the steps we are taking to implement your feedback. Thank you for participating!

The SFAA Tenancy Agreement is the most valued service, and we’re happy to announce the updated 2023 version will be released in January 2023.

Operational advice was the next most valued service, and we’re glad our members are taking advantage of our email address (memberquestions@sfaa.org) to have their questions answered. Going forward, members can also make an in-person appointment.

As for monthly membership meet ings, they will not be offered both in-person and virtually during the upcoming year. The first in-person meeting will be March 15, 2023 at the Fort Mason Center. Continue to check the magazine and our web site (sfaa.org) for more details.

SF Apartment Magazine continues to be a high point of satisfaction and value for our members. And who could argue that—it’s a great publication! We’ll continue to of fer our magazine both in print and online for all to enjoy. On that note: Do you have an idea for an article or are you ready to advertise? Reach out to the magazine’s editor, Pam McElroy, at pam@sfaa.org.

As for our educational classes: We plan to increase the frequency of classes while covering a larger variety of topics. Does your com pany need a specialty class? Let us know, and we can arrange it!

We thank everyone who partici pated in our survey. We value your opinions and welcome you to share them at any time.

Sincerely, SFAA Staff

To Cash and to Hold

written by RENEE ENGELEN

As a professional property manager, I am committed to balancing the legal and ethi cal obligations to residents of rental dwelling units, and providing safe and habitable housing, while simul taneously serving the owners’ financial interests. When landlord and tenant opinions do not align, conflicts often oc cur—sometimes to a level of irreconcil able differences.

However, those conflicts can often be avoided through thoughtful commu nication and frequent dialogue. This article includes my observations and suggestions for fostering that communi cation and for finding balance, which is especially important during these finan cially challenging times.

Effects of Inflation on Dispositions of Security Deposits

In my area of management, wall dam age repair in a standard 750-squarefoot one-bedroom previously averaged $700. The same repair is now pushing upward—from $1,250 to $2,000—and that doesn’t include the arm twisting required to get your tradespeople to show up in a timely manner! Even un der ordinary circumstances, a vacating tenant might be outraged to find $700 charged against their security deposit, condemning the landlord and manager for the charges in what they will likely claim to be the surrender of a unit in better condition than when they moved in. By the time the security deposit dis position has been mailed, there is little

one can do but field angry calls and threats of lawsuits.

However, both landlords and tenants can benefit significantly by taking proac tive steps long before a vacancy, thereby mitigating unwelcome surprises.

Communicate

It is not a novel concept that good communication leads to good relation ships. Having open communication with your tenants is the best way to avoid conflict. The rental relationship begins with showing the dwelling, followed by the written lease. Set ting clear standards, communicating expectations, and not making undocu mented/verbal agreements is the best way to avoid disputes later.

At the time of the showing, listen to the questions a prospective tenant asks and do not be afraid to answer their ques tions directly. Common questions re gard mounting art or televisions to walls, changing the wall color, or adding cur tain rods and curtains. While wooing a prospective tenant, you may be tempted to gloss over certain policies. You are in salesperson mode and want them to sign a lease. However, be explicit about your policies and expectations from the start. This is crucial.

Sharing what certain repairs may cost is the best deterrent to unpleasant sur prises. Share with prospective renters what you find to be common damages at the time of move-out. Take copious

notes because, despite your best efforts, you won’t be able to recall every detail of your meeting after a couple of years of tenancy. During the showing, it’s also good to mention that before the tenant vacates, there will be an opportunity to have a “pre-exit” inspection to discuss how certain items will be addressed.

The Lease

Remember, everything is great … until it isn’t. Your lease is where you can combine your expectations and verbal discussions into written terms. To help mitigate disputes over damages, in advance, I include with all leases an ad dendum to explain some of the com mon differences between damages and ordinary wear-and-tear, because this is where conflict occurs. I outline general descriptions of some common damage disputes and tenant responsibilities, and relate referenced damages to average repair costs. By creating a written under standing, in advance and as part of the lease, I am best positioning the relation ship between landlord and tenant to minimize confusion and conflict at the termination of the tenancy.

Every property is different: If a stan dard lease doesn’t include some of the unique qualities and your expecta tions, add a document to your lease to explain the additional rules. Examples might include the use of a pool, garden, and the care of such, or even city-im posed watering restrictions.

A Picture Is Worth a Thousand Words

Conducting a detailed move-in re port with clear photographs of

How to mitigate escalating charges against tenant security deposits.

SPECIAL THANKS TO THE SFAA VOLUNTEER ATTORNEY PANEL

SFAA would like to extend sincere gratitude to our volunteer attorney panel, who, after several months of review, is finalizing SFAA’s 2023 Tenancy Agreement. Because of their time and expertise, SFAA’s Residential Tenancy Agreement is the most reliable and effective tool for San Francisco rental property owners. You can expect the new lease by January 2023. For a fee, SFAA members can access, email, and print the SFAA Residential Tenancy Agreement online. Visit sfaa.org and click “Resources.”

conditions—both good and bad—is an essential step to guard against security de posit deduction disputes. After a few years of residency, neither landlord nor tenant will be able to clearly remember the scratch on the hardwood floor as a prior condi tion without a clear record. If you end up in court, you must have proof of the condition when the tenant took possession.

After carefully comparing before-and-after conditions, landlords should notify the ten ant in advance of any deductions. Commu nicating what a tenant can expect before the disposition check is mailed may help to avoid an angered response when a check arrives that is less than what they paid in security deposit. A written explanation of why there are charges, and what steps the landlord took to remedy the situation, is always helpful.

Getting contractors to return calls and reasonably repair items is challenging these days. If a repair expense is large, get at least two estimates for the work in the event you end up in small claims court. The judge might look upon you unfavor ably if your only repair receipt is from your cousin Vinny, even if Vinny gave you a sweetheart deal.

During the Tenancy

Remind tenants that they should not un dertake measures to repair or alter your

property without your advance written approval during their tenancy. Even the most well-intentioned tenants can cause damage to a building. I have often seen even the most conscientious tenants create more damage in their attempts to correct a condition. A typical example is improperly spackled holes, with too much spackle to “patch” small nail holes. The result is more work to correct the repair.

Another common mistake is when a lease calls for professional carpet cleaning at termination. Tenants often think they can do it themselves using a drugstore ma chine, only to discover they have damaged the fibers. Drugstore machines use a lot of water, which will mat the fibers. An adden dum that restricts a tenant from conducting repairs without prior approval and requires them to use a professionally licensed and bonded company will help to prevent them from making such mistakes.

Landlords can create dialogue throughout the tenancy by conducting annual inspections of the dwelling to ensure it is maintained in a clean and safe condi tion. While conducting a routine safety inspection, you might observe poten tially costly repair matters that can be addressed with your tenant while they are in occupancy. Failing to clean windowsills of soot and dust can erode paint, leading to costly damages down the road. If you see the fireplace is being used, point out that use of candles and fireplaces leave a sooty residue that can lead to costly cleaning and repainting of interiors. Refrigerator coils should remain free of dust buildup to avoid strain on condensers, as this can shorten the appli ance’s lifespan. Drippy faucets can drive up your utility bills but also lead to rust stains on porcelain surfaces.

Failure to have regular conversations with your tenants about such matters will only lead to arguments at the end of their lease over who is responsible for the repair.

Annual checks of smoke and carbon mon oxide detectors, plumbing, appliances, doors, and windows will not only ensure your building is cared for and your tenants

safe, but it will help to avoid more costly repairs for you both down the road.

Right to an Initial Inspection

California Civil Code 1950.5(f), requires a landlord (or their agent) to provide a writ ten notice informing a tenant of their rights to an initial inspection. This notice must be provided to a tenant when you receive a Notice to Vacate by the tenant or if you serve a Notice to Vacate upon the tenant. Failure to provide written notice forfeits the right to recover damages against a security deposit to the vacating unit.

(AB 2330 requires you to offer this “initial move-out inspection” within two weeks—and not before—of the actual move-out date.)

Although it is optional, tenants should always be encouraged to opt in for the inspection, as it is the best way to respon sibly avoid security deposit deductions and disputes. There is no requirement that the tenant be present. It is the role of a responsible landlord to communicate to the vacating tenant that it is the last oppor tunity for them to make repairs, and that once the unit is surrendered, they will no longer be allowed to enter the property or initiate repairs. During the inspection, or after reviewing the results, you will have the opportunity to discuss with the tenants the obligations under their lease, such as cleaning requirements, damages that were visible during the inspection.

I generally begin my inspection process by explaining the limitations of my inspection and ask if there is anything they are aware of that changed during their tenancy so we can discuss the responsibility and mea sures needed to repair it. We have all had an impulse at one time or another to rear range our furniture to hide a carpet stain when expecting company. Naturally, we all want to put our best foot forward. Your ten ants are no different.

If the dwelling is still furnished or there are piles of moving boxes stacked through out the unit, be sure to point out that a

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Adjust or Bust

written by JAY GREENBERG

2022 has seen significant economic headwinds effecting all business and markets. The apartment market contin ues to adjust to volatile and unsettled market conditions that will continue through the end of year.

Below is 2022 third quarter statistics for the 5-9-unit and 10-plus-unit sectors of the market. The 5-9-unit sector has been very active with prices holding steady. Meanwhile, the 10-plus-unit sector continues a slow decline from our peak pricing of 2018. Interest rates have doubled since the beginning of the year, and we expect rates to rise through year’s end. We had positive momentum in the rental market through the sum mer months, but it seems to be fizzling out ahead of the holiday season. I am hoping for some positive change as November election day is fast approach ing (as of the time of this writing), and we will see if local Government in San Francisco could have a positive impact on city residents and visitors.

The following are 2022 first through third quarter (January – September) statistics for the 5-9-unit sector and the 10-plus-unit sector versus the same pe riod for 2017, 2018, 2019, 2020, and 2021.

5-9 Units

The average price per square foot has bounced around from $521 in 2017, $553 in 2018, $549 in 2019, and $570 in 2020. The price per square foot dipped 7.5% to $527 in 2021, and it dipped an other 3.3% to $510 per foot in 2022.

Gross Rent Multipliers (GRMs) were on the rise from 2009 through 2015, when we hit the high mark of 21.48. Since 2015, GRMs had slowly been retreating, but the trend is reversing this year. GRMs were 18.32 in 2017 and then dipped slightly to 18.3 in 2018 and 17.22 in 2019. 2020 saw a bigger drop, with GRMs coming in at 16.01. There was another 7.5% drop to 14.79 in 2021. In 2022, GRMs are taking a turn in the other direction, increasing to 15.05.

The average cost per unit has moved up and down during the reported period. The average cost per unit was $466,000 in 2017, $494,000 in 2018, and $491,000 in 2019. This number reached $500,000 in 2020, hitting a high mark, but then it fell 10% to $447,000 in 2021, and main tained in 2022 at $448,000.

Dollar volume for the 5-9-unit sector has been very strong since 2017 (apart from 2020). Prior to 2016, the highest dollar volume we had recorded was $178 million in 2014. Since 2016, we’ve topped $200 million each year through the end of the third quarter—2020 being the exception. 2017 and 2018 boasted a strong dollar volume of $244 million, and we saw another banner year with in 2019 with dollar volume reaching $265 million. We dipped to $188 million in sales volume in 2020 before rebounding to $211 million in 2021. In 2022, we reached a decade high of $270 million by the end of the third quarter, a 28% increase in a yearover-year comparison.

The number of transactions have re mained steady for the 5-9-unit sector since 2017, except for 2020. There were 87 closings in 2017, 77 closings in 2018, and 81 closings in 2019. In 2020, the number of transactions dipped to 60 by the end of the third quarter, a fiveyear low. In 2021, we saw a bound with 74 closings. 2022 has been excellent for recorded transactions so far, with 96 sales by the end of the third quarter, the highest transaction level in a de cade and a 30% increase in a year-overyear comparison.

10-Plus Units

The average price per square foot has been trending down since the high point in 2018. The average price per foot was $548 in 2017, $633 in 2018, and $600 in 2019. In 2020, the price per foot dropped to $569 and retreated approximately 9.5% in 2021 to $514. The downward slide continued this year, with an average price per square foot of $443, a 14% decrease in a yearover-year comparison.

Gross rent multipliers followed a similar pattern. The average GRM was 17.06 in 2017, 18.31 in 2018, 16.05 in 2019, and 15.72 in 2020. In 2021, the average GRM retreated about 12% to 13.85 and stayed close to the same in 2022 at 13.42.

The average cost per unit had been mostly trending upward before revers ing course last year. The average cost per unit was $394,000 in 2017, $460,000 in 2018, $440,000 in 2019, and $424,000 in 2020. In 2021, the average cost per unit decreased 11.5% to $375,000, and in 2022, this number saw another 9% decrease to $341,000.

While the 5-9-unit sales market is holding steady, the 10-plus-unit market is continuing its slow decline.

Dollar volume for the 10-plus-unit sector had a record high in 2018 and had been declining ever since, until now. Dollar volume reached $445 million in 2017 be fore increasing to a record-breaking $919 million in 2018. This number returned to $436 million in 2019 and retreated further to $325 million in 2020, and $318 million in 2021. Dollar volume jumped 22% to $407 million in 2022.

There were 64 closed transactions by the end of the third quarter in 2017, climbing to 81 closings in 2018 (the highest number of closing at this point in the year since 2012). In 2019, the number of transactions dropped to 50 and we reached a new low of 37 recorded closings in 2020. In 2021 and 2022, closings jumped 40 precent, with 52 sales by the end of third quarter.

The source of the numbers reported come from Jay Greenberg & Vitaly Rutus Com pass Commercial, San Francisco Multiple Listing Service, and Costar Comps.

My Two Cents

2017 and 2018 were our peak pricing points, and all value indicators have been slowly declining since. In 2022, the 5-9-unit sector has been the main attraction, with pricing holding steady and record-high transaction levels. The price point for most sales in this sector are in the $2 million- to $4 million- range, and the buying pool is dominated by individual investors.

Currently, individual investors have access to more favorable financing terms com pared to the institutional buyers who are typically buying larger buildings at higher price points. Most individual investors who obtain financing for apartment transactions in San Francisco use a small pool of lenders like First Republic and Chase. Currently, the rates offered by these lenders are in the mid-5%- to- low-6% range, and the loans are recourse, meaning they are personally guaranteed by the borrower.

The larger institutional buyers currently have a pricing disadvantage because they have a different debt structure and use a

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By Your Side

Written by CHARLEY GOSS

San Francisco’s rental housing providers have been on a rollercoaster ride since the COVID-19 pandemic and shelter-in-place orders took effect in March 2020. With tons of legislation passed in late 2021 and 2022—at both the state and local level— four San Francisco elections in this calendar year alone, and a number of lawsuits sponsored by the SFAA Legal Fund, it’s been a dizzying experience trying to stay on top of everything that has been going on since the pandemic’s early days. Let alone comply with everything.

With the Governor declaring an end to California’s state of emergency come February 28, 2023, the light at the end of the tunnel is beginning to peek through for the industry. As we prepare for the new year, we’ll recap SFAA’s activities and accomplishments that have taken place over the last year or so.

Four Local Elections

Looking at how the rental housing industry has been scapegoated and targeted with legislation by San Francisco’s Board of Supervisors (BOS) during the pan demic, SFAA members can recognize that our elected officials at the BOS heavily lean tenant-friendly and, more often than not, are not amenable to hearing the perspective of an industry that the City and County relies on for a huge chunk of its budget via your property taxes.

In a city where more than two-thirds of the population rents their home, and where a significant portion of the remaining one-third own and occupy a single-family home or condominium, it can be challenging to make meaningful headway during election season in a way that benefits the city’s rental housing providers. With every elected official in San Francisco officially registered as a Democrat, and a discussion of tenants’ rights and rent control amendments dominating the airwaves and politi cal talking points, your choices at the ballot box may not always seem like they have your best interests as a rental property owner at heart.

SFAA has been working hard to protect your property rights and keep you informed. Read on for a recap of what SFAA has accomplished in recent years.

However, San Francisco’s politics are historically defined by a moderate/progressive divide, with more business-friendly moderates battling against the City’s progressive and socialist advocates. With voters growing increasingly unhappy with the direction of the City’s future, 2022 has been notable for the mo mentum that San Francisco’s moderates have built throughout the calendar year. While ballots for November’s crucial election have not been counted as of the writing of this article, the 2022 elections have gone remarkably well for the City’s moderate brand of Democrats, who are largely more reasonable and less antagonistic toward property owners. Here, we’ll provide an overview of 2022’s elections.

In February of 2022, San Franciscans resoundingly voted to recall three members of the San Francisco Unified School District’s Board of Education after several personal and professional controversies, including the decision to prioritize renaming dozens of schools citywide instead of getting kids physically back in our schools. The overwhelming results of the school board recall, endorsed and supported by SFAA’s Political Action Committee and many, many others, was the first evidence of the changing political tides for moderate San Francisco voters who want to see real results from elected officials instead of performative politics.

Just two months later, in April 2022, voters again spoke resound ingly, this time voting to recommend the SFAA-endorsed District 6 Supervisor Matt Haney to the State Assembly in his primary race against former Mission District Supervisor David Campos by an al most 2:1 spread. While Haney isn’t necessarily an ally of the indus try, his policies and approach are generally less antagonistic toward rental property owners than Campos’s would have been.

In June, San Francisco residents affirmed their decision to send Matt Haney to Sacramento and, more importantly, resoundingly recalled District Attorney Chesa Boudin (another SFAA-endorsed position.) Lack of enforcement against property crime and qualityof-life issues, have been a major concern for our members and their tenants, and while it may be hard to discern a notable difference in some neighborhoods, appointed District Attorney Brooke Jenkins appears to take the concern much more seriously. SFAA-endorsed DA Jenkins is running to retain her seat in our fourth election of the year this November.

While the November election results are not available as of the writing of this article, SF’s Moderate democrats will look to build on their electoral successes of 2022 as residents will vote to choose our DA, five members of the Board of Supervisors, and crucially to SFAA members, whether or not we’ll approve two new taxes on property owners in Propositions M and O.

State Legislation

As you probably know, your SFAA membership also includes a California Apartment Association (CAA) membership, and sup ports CAA’s political and legislative agenda at the State Capitol in Sacramento. In 2022, CAA’s legislative and government affairs

team was as busy as ever: 2,353 bills were introduced in the state legislature in 2022, of which 1,273 bills were signed into law. Of those, CAA took a position on 166 bills that directly impacted our industry, of which 52 were signed into law by the Governor. Here, we’ll cover a few of CAA’s legislative successes and CAA bills that did not become state law.

As required in the state legislature, CAA’s legislative work was proactive and defensive. CAA successfully stopped AB 1771 (As semblymember Ward), which would have imposed a 25% tax on a property owner’s net capital gain from the sale or exchange of a rental building. CAA successfully prevented SB 1324 (Senator Du razo) from becoming law; this bill would have required property owners who attempted to collect rental debt to register as debt col lectors with the state. Additionally, CAA stopped bills that imposed a $500 per apartment unit tax on residential units, and a bill that would have prevented owners from using credit reports in tenant screening. Unfortunately, one of CAA’s priority-sponsored bills for the legislative session was unsuccessful. AB 847 would have pro vided much-needed rent relief for property owners whose tenants had vacated or who refused to apply for rent relief. The bill was held up without a vote in the state Senate’s Appropriations Commit tee on one of the last days of the legislative session.

A harbinger of the pandemic was the ongoing extension of various eviction moratoriums and special rules put in place to protect rent ers who were out of work or could not pay rent due to the effects of COVID-19. In Sacramento in mid-late 2021, CAA’s legislative team worked tirelessly to represent the industry and to broker as good a deal as possible for building owners in the state’s COVID-19 Tenant Relief Act, as well as the California Rental Housing Recovery Act. CAA worked to end COVID protections as California’s job market rebounded and tenants returned to work, while supporting the California COVID-19 Rent Relief Program. During its negotiation at the capital, CAA successfully secured a preemption that prohibited cities and counties from continuing to extend local moratoriums on an ongoing basis.

California COVID-19 Rent Relief

Throughout 2021 and into 2022, SFAA served as a primary liaison to help property owners and tenants navigate the California CO VID-19 Rent Relief program. SFAA held free informational classes and workshops, offered in-person and online appointments, and provided free counseling and advice to help housing providers and tenants apply to the program online. SFAA also conducted out reach to reluctant property owners and tenants to ensure as many people as possible could access the available rent relief funds.

Local Legislation

Truth be told, it was a difficult legislative year for San Francisco’s rental housing providers. Supervisor Dean Preston introduced an onslaught of legislation that regulated land use and created new landlord-tenant law that was often passed by the increasingly extreme San Francisco Board of Supervisors. Ordinances ranged from a local eviction moratorium for rent due on or after July 1,

2022, to a law that codified a tenant’s right to organize, and these were passed almost unanimously. Other proposals amended the Ellis Act, while another ordinance required tenants to be sent a 10-day warning before property owners could issue a 3-day notice. Fortunately, this ordinance, discussed further below, was struck down in part after SFAA sponsored a lawsuit challenging it.

In May of 2022, SFAA sponsored legislation to extend the deadline for building owners to upgrade their fire alarm systems to July 1, 2023. SFAA also secured amendments to the legislation that will make it easier for housing providers to pull permits and complete building renovations without triggering an immediate upgrade of the fire alarm system. The legislation, which applies to all buildings that are required to have a fire alarm system under Fire Code Sec tion 1103.7.6, was passed unanimously.

As 2022 is coming to a close, the City has just started to convene a year-long working group with SFAA and other community stake holders to develop a legislative plan and timeline to seismically retrofit certain concrete ductile buildings. While many of these buildings citywide are commercial buildings (e.g., your average Walgreens), there will be up to several hundred concrete ductile apartment buildings that will be required to undergo seismic retrofit over the next several years. SFAA will work to represent its members and to keep you apprised about the working group’s progress in 2023.

The SFAA Legal Fund

The SFAA Legal Fund, primarily funded by SFAA members’ annual dues payments, has remained as active as ever during the pan demic and through 2022. While we’ve seen increased politiciza tion in the Courts in recent years, the SFAA Legal Fund serves as a crucial backstop when San Francisco legislators push through laws that infringe on your rights as property owners.

In January of this year, the California Court of Appeal rejected a challenge to a law passed several years ago, which punishes own ers for issuing Costa-Hawkins rent increases that tenants could argue were “too high” and forced them to move. SFAA argued that this legislation offends the protections of Costa-Hawkins, which permits unlimited rent increases under certain circumstances, but the Court of Appeal upheld the law, and the state Supreme Court refused to take the case.

In late 2021, SFAA filed suit challenging an ordinance adopted by the Board of Supervisors, which purported to alter the defense of contractual “impossibility” to allow the cancellation of delinquent commercial rents that were unpaid due to COVID-19 closures. In re sponse to the lawsuit, the City agreed to a settlement that clarified that state law continues to govern the defense and that the tenant continues to have the burden of proof.

In February 2022, the San Francisco Board of Supervisors passed legislation to require a 10-day warning notice to be sent before an owner could serve a 3-day notice. The new 10-day warning

procedure was legislatively created because of a concern that some residents might not have enough time to cure objectionable con duct or may otherwise be confused about when a lease violation must stop. In response, this 10-day “cure period” was implemented to, in the words of the Supervisors, “provide clarity around what constitutes just cause” to terminate a tenancy and to avoid a poten tial housing displacement.

The 10-day rule applied to the following “just causes” under the San Francisco Rent Ordinance: failure to pay rent, breach of a lease covenant, creating a nuisance, using the apartment for an illegal purpose, refusing to renew an expiring lease term, and denying the landlord lawful access to the residence. The housing industry and the SFAA Legal Fund objected to the fact that the 10-day notice period substantially elongated the rent collection process. Con sequently, SFAA filed a legal challenge to this portion of the law, represented by Zacks, Freedman, and Patterson.

In late July, the lawsuit was found successful in part, and San Fran cisco Superior Court granted SFAA’s request to strike the nonpay ment of rent ground from the 10-day requirement, meaning no 10-day warning needs to be issued for nonpayment of rent de mands. Rather, you may simply send out a 3-day notice to pay rent or quit should your tenant fail to remit monthly rent on time. Ad ditionally, the Court ruled that the 10-day rule does not apply when the tenant is causing or creating an imminent risk of physical harm to persons or property. In the months since, the City has decided to appeal the decision.

Please Note: This is not an exhaustive list of SFAA’s litigation activ ity in 2022. (There is so much more we do behind the scenes.)

Looking Toward Next Year

It’s difficult to predict what next year will bring for the rental hous ing industry at the local and state levels, but for the first time in a while, property owners can begin to put the flurry of COVID-era emergency moratoria and legislation behind them. Additionally, after February 2023, the California State of Emergency will be over after several years, taking with it the ambiguities related to rent increases and price-gouging rules. As of the writing of this article, it’s possible that San Francisco’s Board of Supervisors will have a different makeup than the current Board, that the District Attorney will have a full term to enact new policies to prevent crime and ensure resident safety, and with a little luck, that the City’s economy and downtown core will begin a full recovery. SFAA will continue to work on your behalf as we head into 2023.

Charley Goss is the Director of Government Affairs at the San Francisco Apartment Association. He can be reached at 415-255-2288.

Dream Team

Written by PAM MCELROY

This October, we gathered outdoors on the St. Regis terrace with libations and hors d’oeuvres to celebrate the rental housing industry and the people who make it all happen.

This year’s winners were chosen for their positivity, creative problem solving, and dedication. But they also had another thing in common: they recognize the importance of clear communication, working on a team, and mutual support. Read on to learn more about the winners.

From all of us at the San Francisco Apartment Association—and the industry as a whole—Thank You!

Onsite Community Manager

Katherine Lara Greystar

Katherine was “over the moon” when she heard her name called as the winner of best onsite manager. She’s been in the industry for quite some time now, having started as a leasing coordinator in 2013, making her way to a senior community manager who oversees two assets. This is Katherine’s second Trophy Award (she won her first in 2019).

Katherine’s favorite part of the job is getting to work with “so many amazing people.” In her everyday work, she gets to meet new residents and host residents, which allows her to “create rapport and build a solid sense of community.” She says the key to success in this role is hard work, motivation, and teamwork. “I believe being fully present and engaging with your team can make all the difference in the world.”

Best Amenities

Fifteen Fifty Related Management

Fifteen Fifty—at the corner of South Van Ness and Mission Streets, where Hayes Valley meets the Mission—offers resort-style amenities and services along with their brand new luxury rentals. The indoor and outdoor amenities span 40,000 square feet and are focused on high-design, entertainment, health, and wellness. Some of the most notable perks include private access to Equinox Van Mission, and access to the building’s rooftop pool and hot tub with views of San Francisco’s skyline, a landscaped sun deck, lounge seating, and pool house.

Residents always have what they need with Life Simplified by Related and Hello Alfred, 24/hour virtual assistance. The building’s 5,600-square-foot landscaped rooftop dog park, 24/hour valet parking, EV charging stations, private bike storage, and package delivery room keep life simple for residents.

Those who love to entertain will find an oasis at Fifteen Fifty with its private landscaped park with grilling stations, dining areas, and fire pits; sports lounge with six TVs, pool table, and bar with a kegerator; and the Penthouse Club complete with a private dining area, entertainment lounge, and outdoor terrace. And residents looking for some downtime are also quite at home with the building’s library and curated book collection; private screening room; and business lounge with complimentary coffee and WIFI-enabled printing.

To create and maintain dream homes, you need a dream team.

Best New Development Chorus

Align Residential

Congratulations to Chorus for winning SFAA’s coveted Best New Development Trophy Award. The luxury building is located at 30 Otis Street, a “Walker’s Paradise,” nearby Hayes Valley, the Mission, and the Castro.

The units are full of modern appliances and amenities, like retroinspired SMEG appliances, wide-plank hardwood floors, quartz countertops, and smart-home features. The floor-to-ceiling win dows provide stunning city views and bring the units “an abun dance of natural light.”

However, the building’s claim to fame is the “American Ninja War rior-inspired training course” that’s outfitted with an eight-foot warped wall and an octagon-shaped arena for performance train ing with former San Francisco 49er linebacker, Corey Lemonier. Lemonier also leads eleven rotating complimentary group classes at the building’s fitness center each week.

According to Melissa Rankin, the Director of Leasing at Chorus, an important factor that led to Chorus winning this special award is their teamwork and people. “The community at Chorus is incredibly unique, one that we are proud of. So much hard work goes into designing, developing, and managing a building like Chorus, and I believe our team’s ability to work together to en hance the residential experience is what sets us apart.”

And finally, Melissa invites you all to enjoy a cocktail at Reception, Chorus’s lobby cocktail bar or attend a performance at City Ballet and Chorus Hall, their 224-seat venue for the performing arts adja cent to the building.

Industry Professional Sabrina Palma

R&L Plumbing

Of all of Sabrina’s career accomplishments—and there are many— she is most proud of winning her SFAA Trophy Award. She’s also extremely proud and grateful for her choice to accept a position at R&L Plumbing four years ago, calling the decision, “the best career path I’ve ever been on.”

Her favorite part of the job is that it keeps her on her toes. “I love that every day varies, putting me in different scenarios, interacting with different people.” She’s a dedicated team player, and she felt “honored and excited” to be recognized for her hard work.

Specialty Services Provider Margarita Salazar

The Avery, Related Management

In addition to being recognized with an SFAA Trophy Award, Mar garita was also recently promoted to Head Porter. And while she has many talents and skills, her “ability to focus, work ethic, and passion for details” are major factors to her success.

Her favorite part of the job is “getting to interact with lots of people and making them happy” through her work. Her Trophy Award is in the center of her living room where everyone can see it.

Maintenance Technician, Fewer than 5,000 Units

Reynaldo Padila TrinitySF

According to Reynaldo, the most challenging part of being a maintenance technician is finding enough time, so his “strong organizational and time management skills” definitely come in handy. They are also what led to his being nominated for and winning a Trophy Award. These skills have also helped him with other career achievements, like earning a pool operator certifi cate and the SFFD-CCSF High Rise Fire Director certificate.

Reynaldo’s favorite thing about his job is that it allows him to serve and assist his colleagues and residents. He brought his Trophy Award to his home to inspire his kids.

Maintenance Technician, More than 5,000 Units

Kevin Jimenez Veritas

Kevin’s wide breadth of expertise—including plumbing, carpentry, and electrical--have made him an invaluable and much-appreciated employee at Veritas. And if tasked with something outside of his wheelhouse, his ability to learn quickly helps him get the job done.

His favorite part of the job is solving problems that others deem im possible. “I love making people’s problems go away,” he explains. He was “extremely proud” and “grateful” to win an SFAA Trophy Award and to have been recently promoted. He displayed his Tro phy Award in his living room where everyone can see it.

Administrative Professional Malcolm Lacey Greystar

Malcolm was thrilled to learn that his colleagues feel his contribu tions help “with everyday challenges and overall efficiency.” Spe cifically, his streamlined approach to everyday tasks and tenacity for relationship-building are his superpowers.

He knows how important it is for residents to find a place to call home; and how important it is for the business that residents hap pily renew their leases. And luckily, creating this type of environ ment is a favorite part of his job. “I love being the knowledge base for residents, teammates, and those new to the industry. It’s the team’s responsibility to enhance people’s living experience.”

General Manager

Vida Emami

Mosser Company

Vida is an excellent leader, which is why she was nominated for and won an SFAA Trophy Award. Specifically, she was recognized for her ability to build a strong team, set realistic examples, and lead by example.

Vida felt “proud and overwhelmed” when she heard her name called at the event. She feels “good about the effort and time” she has invested in her work, but her favorite parts of the job are the culture and daily challenges.

Accounting Professional, Fewer than 3,000 Units

Aspen Ginthum West Coast Property Management & Maintenance Companies

When Aspen found out she won an SFAA Trophy Award, she was “stunned nearly speechless.” She won this award for many reasons, but her high standards for accountability, honesty, pro ductivity, and accuracy have a lot to do with it. Years working at a real estate office and as an executive assistant and bookkeeper for an organizational consulting firm gave her the experience she needs to succeed today.

Aspen loves working with others and sharing what she’s learned. “It is so rewarding to see the light bulb illuminate in someone else’s eyes when they truly understand something and feel successful at what they are doing.” Aspen is also a certified PiYo instructor and coach for Girls on the Run.

Accounting Professional, More than 3,000 Units

Eleanor Wong Gaetani Real Estate

Winning an SFAA Trophy Award is the professional achievement Eleanor is most proud of so far. According to Eleanor, her trustwor thiness is what makes her such an asset at Gaetani Real Estate, as well as the fact that believes work should be done “efficiently, accu rately, and exceptionally.”

Her colleagues know that Eleanor can be counted on when it matters most. “I always make sure our clients, owners, tenants, and vendors feel confident in the services we provide,” she ex plained. She also prioritizes time management: taking care of daily tasks, meeting deadlines, and eliminating distractions.

Maintenance Manager, Fewer than 5,000 Units

Joseph Wheeler

TrinitySF

Joseph believes that his team was an integral part in his SFAA Trophy Award win. “I’m only as good as my team,” he explains. He was “surprised and excited” when his name was announced, and his Trophy Award is proudly displayed in his living room.

The most challenging part of the job is the computer side of things—and he’s tackling the challenge with tenacity as usual. “I’m learning and getting better every day.”

Maintenance Manager, More than 5,000 Units Eric Hernandez Veritas

In addition to perseverance and hard work, a valuable strength of Eric’s is “helping crew members develop on the job site.” His

colleagues nominated him because he’s always willing to help to anyone who needs it. “I feel honored when my crew has career growth,” he explained.

Another thing Eric loves about his job is completing projects so “tenants and resident managers are happy.” He is grateful for Greentree and Veritas for giving him the opportunity to grow in his career.

Customer Service Professional Melia Suryadi Related Management

Melia is known at Related Management for the personal touch she brings to the job. “I quickly learn residents’ names and how they like to be treated.” And while this can be a daunting task, Melia has no problem at all--getting to know and building relationships with residents is one of the things she enjoys most about her career.

Highlights of her career so far have been all the positive feedback residents give her and winning an SFAA Trophy Award, of course

Onsite Leasing Agent Jason Sypult Related Management

Jason was “suprised and emotional” to have won an SFAA Trophy Award. “Since leasing is my primary job function, the affirmation of being recognized for doing something I love to do tells me I’m at the right party,” he said. What he loves most about his job as a leas ing agent is finding people their next home.

When it comes to being a successful leasing agent, Jason explained that the ability to really listen to people is a necessary skill to have. “Listening to a potential resident’s story and picking up on the clues about what is most important to them—and then remembering to recall those things in follow-up conversations,” is the best way to make strong connections.

In addition to his Trophy Award, Jason is most proud of his closing ratio, five-star reviews, survey feedback, and renewal percentages.

Leasing Agent

Gina Ocamp AMSI

According to Gina’s colleagues, her “energy flows where attention goes,” and that is a great way to approach the demands of the rental housing industry. Additionally, Gina says her “overall positive out look in life and trust that everything will come together,” are also what has led to her career success.

What Gina loves most about her job is getting to meet so many new people. “It gives me deep satisfaction knowing that I helped create a perfect match for tenants and an owner.” This is espe cially true in a volatile housing market. She also loves touring properties and finding hidden gems all over the city. She plans to keep her Trophy Award front and center on her desk as a re minder that all will be well.

Leasing Manager

Nikki Resch

Gaetani Real Estate

Having been in the industry for quite some time now, Nikki knows what it takes to be a successful leasing manager: empathy. “Empathy is crucial in property management. The ability to connect with and understand clients and colleagues will influence an overall experience and the company you represent.”

Getting to share in the excitement clients feel when they’ve been approved for a new apartment is one of the reasons she strives to succeed every day. “It’s a great feeling knowing that I get to play a role in that.”

Resident Manager

Maurice Howell Veritas

According to “Reece,” the best part about working in property man agement is the variety. “Every person is different. Every want, need, and desire is different,” he explains. He works diligently every day to meet each resident’s unique needs.

He’s “excited to be a part of a company as great as Veritas/Green tree,” and grateful that they’ve supported him over the years. He plans to keep his Trophy Award on his desk until, he jokingly adds, “he can get it fitted for a necklace.”

Assistant Manager Jaimie Kirby TrinitySF

“I definitely, definitely felt like celebrating!” is how Jaimie describes the moment she found out she won an SFAA Trophy Award. She also felt “acknowledged, supported, excited, and grateful.”

Jaimie says the “people aspect” will always be the highlight of her career in property management. Her career, so far, has been “fluid, an eclectic collection of diverse experiences” that has made her an asset in the industry. “We are intertwined with people’s sanctuaries, with life occurrences that throw them. It’s a “recipe for hurdles and heightened emotion,” which Jaimie says creates challenges but is also the most rewarding.

Property Manager, Fewer than 250 Units

Meghan Tazir

California Property Services

“I would not be where I am now without the support of ‘my people’.” Meghan credits her established relationships with prop erty owners and industry leaders as a major factor for her success. “These relationships will undoubtedly last the duration of my ca reer and beyond,” she said.

Positive relationships alone are not only why Meghan has achieved so much professionally. She’s a hard and dedicated worker and an advocate for property owners. She makes sure to set herself up for success by, “Proactively working with a set of goals each day geared

toward maintaining property owners’ values as well as my own standards while providing the highest quality of service to prop erty owners, vendors, colleagues and residents.”

Property Manager, 250-500 Units

Andrew Bryson

Vertex Property Group Andrew was “ecstatic” when he heard his name called at the event. “It is a true privilege and an honor to be recognized by SFAA,” he added. What he loves most about his career with Vertex is getting to interact with so many people, being a part of a “fantastic team,” and working with “great mentors.” What Vertex values most in An drew is his ability to keep things running smoothly with creative problem solving.

After nine years at Vertex, his advice others in the industry is as follows: “Some tenants are easier to work with than others, but I always treat everyone as I would want to be treated.”

Property Manager, More than 500 Units Valentina Vethencourt Related Management

To succeed in this business, you need grit—and Valentina has plenty of it. “I don’t give up,” she explains. Valentina loves her job, though, which makes putting in the hard work so much easier. Her favorite part? “Making people feel at home—and all the dogs, of course!”

In addition to her day-to-day responsibilities, Valentina is the cochair of the Related Cares NorCal chapter and the company-wide LGBTQ+ resource group. She has her SFAA Trophy Award proudly displayed in her home.

Property Management Company Lingsch Realty

“You don’t have to be big to be good,” Natalie Drees, President of Lingsch Realty, says of her small firm. She credits her productive employees and long-term relationships with her clients for the com pany’s success. And this is reflected in her clients, some of whom have been with the company since Natalie’s grandfather owned the business in the 1970s, while others have been with Lingsch for at least twenty years. “The fact that in all those years, those clients have not felt a need to move their business elsewhere is a testament to Lingsch Realty’s great customer service and continued evolution into a premier leasing and property management company.”

While Lingsch Realty handles all aspects of property management and leasing, Natalie’s favorite part of the process is working on apartment turnover, offering suggestions and maximizing rental in come for clients. “Knowing that our landlords and tenants are both happy makes us proud of what we do.”

Pam McElroy is the editor of SF Apartment Magazine.

The Best Defense

written by VARIOUS AUTHORS

Q. I own a fourplex and live in one unit while renting out the others. One tenant and I have never gotten along, but I keep my distance. Lately, he’s started to call me offensive names when he sees me in public, and I’m start ing to feel unsafe. Is there any thing I can do?

A. Yes, there is certainly action you can take. This kind of problem is af fecting more landlords than usual. We have experienced a marked increase in nuisance behavior since more people started working from home during the pandemic. According to the U.S. Census Bureau, between 2019 and 2021 the number of people working mostly from home tripled, from 5.7% (about 9 million people) to 17.9% (about 27.6 million people).

It is important to begin a written log not ing the dates, times, and details of the name calling. This will be useful if legal action is required. Next, you have the option of applying for a civil harassment restraining order, commonly referred to as a “TRO.” These are available not just in cases involving violence or threats of violence, but also when there is a “know ing and willful course of conduct di rected at a specific person that seriously alarms, annoys, or harasses the person, and that serves no legitimate purpose.”

The Court is much more likely to grant your request and issue a restraining or der if you have one or more witnesses to the misconduct. Such an order typically prohibits the offender from contacting the protected party, and a violation of the order can result in a criminal charge.

Also, under San Francisco law, commit ting a nuisance after a written notice to cease is a just-cause ground for eviction. The nuisance must create a “substantial interference with the comfort, safety or enjoyment of the landlord or tenants in the building,” and must be “severe, con tinuing or recurring in nature.”

First, the owner must serve the tenant with a 10-Day Warning Notice on a form published by the Rent Board. This notice has specific requirements, including a detailed statement of the nuisance be havior and how the tenant can comply with the notice. Then, if the nuisance behavior continues after the 10th day af ter service of the notice, the owner must serve the tenant with a 3-Day Notice to Cease or Quit. The next step, if the be havior continues after the expiration of the 3-Day Notice to Cease or Quit, is to file a civil lawsuit for unlawful detainer in the Superior Court.

Hopefully the tenant will have stopped the offensive name calling long before a lawsuit is necessary, but anecdotally

speaking, very few tenants who misbe have this seriously are able to change their behavior, but hopefully your mis behaving tenant is an exception.

—David Semel

Q. I verbally offered a vacant unit to an applicant, but I received another application offering a higher monthly rent. Can I accept the higher offer and rescind the original since a lease hasn’t been signed yet?

A.

By the time a tenant is in posses sion of your apartment, a comprehen sive regulator scheme governs your relationship (comprised of contract law, fair housing law, rent and eviction control law, etc.). Renting a unit that you’ve already promised to someone else is certainly risky, but it seems that you weren’t far enough along for most of them to materialize.

Landlord-tenant relationships inhabit two aspects: privity of estate and priv ity of contract. Privity of estate respects the tenant’s right of possession (and the landlord’s right to receive possession when the tenancy ends). Privity of con tract considers the express agreement between the parties about that right of possession. Clearly, you are not yet in privity of estate because the applicant never took possession (and this will likely avoid liability on claims relating to wrongful dispossession, like disruption of quiet enjoyment, wrongful eviction and tenant harassment).

The main question therefore is whether you were in privity of

With nuisance behavior increasing due to more people working from home, it’s important to take detailed notes and serve notices appropriately.

Landlord & Leasing Agent, A Winning Combo.

Having over 25 rental units of her own, Jackie brings rst-hand experience as a landlord to all of our Rentals In S.F. clients.

Every day, our team endeavors to nd quali ed tenants for our clients. With an expert understanding of the ever changing San Francisco rental market, we have made it our priority to ll your vacant unit quickly, e ortlessly, 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 quali ed tenant ready to move in.

Call Jackie at Rentals In S.F. to ll your vacancy. It will be one of the best calls you’ll ever make. Just ask all our clients!

Former SFAA winner

* Leasing Agent of the Year

* Landlord of the Year

C

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

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

Ashley E. Klein

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

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

A. Jeanne Grove

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

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

Laura L. Campbell Attorney Land Use Disputes

Laura L. Campbell has extensive experience in landlordtenant litigation. She represents clients in breach of contract matters, quiet title actions, unlawful detainer lawsuits, tenant buy-out negotiations, and property management resolutions. She specializes in SF Rent Board matters, and routinely handles lot splits, mergers public hearings, zoning issues and ADU permitting.

San Francisco, CA Office

425 California Street, Suite 2100 • San Francisco, CA 94104 (415) 926-7600 • aklein@kdvlaw.com

Sonoma, CA Office

Sonoma, CA 95476

lcampbell@kdvlaw.com

Market View… continued from page 18

different pool of lenders. Institutional cli ents are reporting that 80% of their lending sources are out of the market and sitting on the sidelines. While pricing in the 5-9-unit sector remained steady this year, the slow decline continues for the 10-plus-unit sec tor. I do not see this trend changing in the near term. It feels like the biggest decline occurred over the past few months and will continue over the next twelve months as interest rates continue to rise.

Typical escrow periods for individual buy ers are 45 days. For institutional buyers, escrow periods are typically 120 days. The longer escrow periods are not helping buy ers in our current environment of rising interest rates. At this moment, the cost of debt is double what it was early in the year, and this is and will continue to effect pric ing going forward.

The rental market has been a bright spot for most of the year. We started the year with positive leasing momentum, which carried through the summer months. Most owners have reported their 2022 rent levels are somewhere in the pre-COVID to 10% below pre-COVID rent levels. As of late October, leasing agents are reporting that activity has significantly slowed this month. An ad that would have generated five or more calls per week during the summer months is now receiving one or two calls. We ex pect leasing activity to slow down during the holidays, from late November through the New Year, but typically the slowdown does not happen this early.

As we head into the final quarter for 2022, I expect the above reported trends to continue with robust sales activity in the 5-9-unit sector and a more challenging mar ketplace for the sale of larger properties. We have a big election coming up, and we all are hopeful that some positive change will occur at all levels of government.

For additional information related to any data points and/or market news, please contact Jay Greenberg at jayhgreenberg@apr.com.

What You Need to Know

sfaa sfaa 2022

2022 SFAA UPDATES

SFAA 2022 TROPHY AWARDS

Congratulations to the 2022 Trophy Award winners!

Thank you to the event sponsors for making the event a memorable one.

UPCOMING CLASSES

During the pandemic, the monthly SFAA member meetings and classes will be held virtually. For member meeting topics and schedules, go to www.sfaa.org. For a list of virtual SFAA classes, turn to the calendar on page 56.

SFAA OFFICE CLOSURE

As the SFAA continues a hybrid in-office work model, members are welcome to make an appointment. However, please refrain from coming in person if you have tested positive for, were exposed to, or have symptoms of COVID-19. The best way to have your questions answered is through email at MemberQuestions@sfaa.org

Law

O’Neill Attorney at Law

Robert Little’s practice focus es on real es tate litigation, including chal lenges to local ordinances and administra tive decisions, landlord/ten ant disputes, property rights, and land use. Robert received a J.D. and M.B.A. dual de gree from the University of Wyoming, where he focused on environmental and business law.

601 Montgomery Street, Suite 400, San Francisco, CA 94111 www.zfplaw.com

Zacks, Freedman & Patterson, PC – one of the Bay Area’s leading real estate law firms – is proud to announce the addition of three new attorneys to our team.

Laura Strazzo Attorney at

Brian

Robert Little Attorney at Law

sfaa 2022

trophy awards

sfaa 2022 sfaa2022calendar

MONDAY, JANURY 9 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, JANUARY 19 Virtual Member Meeting Candidates and Issues

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

IN-PERSON MEETINGS WILL RESUME SEMI-ANNUALLY IN 2023. MARK YOUR CALENDARS FOR THE FIRST IN-PERSON MEETING: MARCH 15, 2023.

JanuaryTHURSDAY, JANUARY 26 California’s Domestic Violence Law Webinar Zoom Webinar System 10:00 a.m. to 11:00 a.m. Members $45 Non Members $65

SFAA office will be closed December 23rd & 26th in observance of Christmas and December 30th & January 2nd in observance of New Year’s.

RENT BOARD FEE

$29.50

Chapter 37A of San Francisco’s Administrative Code allows the city to collect a per-unit fee for each residential dwelling unit that is subject to the San Francisco Rent Ordinance. This fee defrays the entire cost of operation of the Rent Board. This fee is billed to the landlord each year on the property tax statement sent in November, but the law permits landlords to collect a portion of the Rent Board fee from those tenants in occupancy as of November 1 of each year. A landlord is allowed to collect 50% of the cost of the fee from the tenant. If you have not collected Rent Board fees in the past, you can collect back to 1999.

ALLOWABLE RENT BOARD FEE COLLECTABLE FROM TENANTS

2021-2022 $29.50

2020-2021 $25.00 2019-2020 $25.00 2018-2019 $22.50 2017-2018 $22.50 2016-2017 $20.00 2015-2016 $18.50 2014-2015 $18.00 2013-2014 $14.50 2012-2013 $14.50 2011-2012 $14.50 2010-2011 $14.50 2009-2010 $14.50 2008-2009 $14.50 2007-2008 $13.00 2006-2007 $11.00 2005-2006 $10.00

2004-2005 $11.00 2003-2004 $21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION 415-252-4600 sfgov.org/rentboard

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

join online at sfaa.org or call 415.255.2288

CAPITAL IMPROVEMENTS

The capital improvement interest rates for 3/1/22 through 2/28/23 are listed below:

AMORTIZATION INT. RATE MULTIPLIER

7 YEARS 1.1% .01237

10 YEARS 1.4% .00894

15 YEARS 1.7% .00630

20 YEARS 1.9% .00501

INTEREST ON DEPOSITS

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

INTEREST ON DEPOSITS PERIOD

AMOUNT

03/01/22 - 02/28/23 0.1%

03/01/21 - 02/28/22 0.6%

03/01/20 - 02/28/21 2.2%

03/01/19 - 02/29/20 2.2%

03/01/18 - 02/28/19 1.2%

03/01/17 - 02/28/18 0.6%

03/01/16 - 02/28/17 0.2%

03/01/15 - 02/29/16 0.1%

03/01/14 - 02/28/15 0.3%

03/01/13 - 02/28/14 0.4%

03/01/12 - 02/28/13 0.4%

03/01/11 - 02/29/12 0.4%

03/01/10 - 02/28/11 0.9%

03/01/09 - 02/28/10 3.1%

03/01/08 - 02/28/09 5.2%

03/01/07 - 02/29/08 5.2%

ALLOWABLE RENT INCREASES

2022 – 2023: 2.3%

Effective March 1, 2022, through February 28, 2023, the allowable annual rent increase is 2.3 %. This amount is based on 60% of the increase in the Consumer Price Index for all urban consumers in the Bay Area. A history of all allowable increases and their effective periods is provided.

ALLOWABLE RENT INCREASES PERIOD AMOUNT

03/01/22 - 02/28/23 2.3%

03/01/21 - 02/28/22 .7%

03/01/20 - 02/28/21 1.8%

03/01/19 - 02/29/20 2.6%

03/01/18 - 02/28/19 1.6%

03/01/17 - 02/28/18 2.2%

03/01/16 - 02/29/17 1.6%

03/01/15 - 02/29/16 1.9%

03/01/14 - 02/28/15 1.0%

03/01/13 - 02/28/14 1.9%

03/01/12 - 02/28/13 1.9% 03/01/11 - 02/29/12 0.5%

03/01/10 - 02/28/11 0.1% 03/01/09 - 02/28/10 2.2%

03/01/08 - 02/28/09 2.0%

03/01/07 - 02/29/08 1.5%

03/01/06 - 02/28/07 1.7%

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

SFAA Professional Services Directory

WASSERMAN

1031

TAX

DEFERRED EXCHANGE SERVICES

LAWYERS EQUITY EXCHANGE

Brian Fogarty 415-701-1234 www.lex1031.com

SEQUENT

Eric Scaff 415-834-1031 sequent-rewm.com escaff@sequent-rewm.com

ACCOUNTANTS

SHWIFF, LEVY & POLO LLP

Elizabeth Shwiff 415-291-8600 x232 www.slpconsults.com

ALARM COMPANY

AEC ALARMS

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

ARCHITECTURE

OPENSCOPE STUDIO ARCHITECTS

Mark Hogan 415-891-0954 www.openscopestudio.com

Q ARCHITECTURE

Dawn Ma 415-695-2700 www.que-arch.com

ASSOCIATIONS

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

ATTORNEYS

BARTH CALDERON, LLP

Paul Hitchcock 415-577-4685 Paul@barthattorneys.com

BORNSTEIN LAW

Daniel Bornstein, Esq. 415-409-7611 www.bornstein.law

CHONG LAW

Dolores Chong 415-437-7807 chongdolores@earthlink.net

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com

FRANK KIM ESQ., EVICTION ASSISTANCE

Jo Biel 415-752-6070

KIMBALL, TIREY & ST. JOHN LLP Kelli Dodson 800-525-1690 kelli.dodson@kts-law.com www.kts-law.com

FRIED, WILLIAMS & GRICE CONNOR Clifford E. Fried 415-421-0100 www.friedwilliams.com

HERZIG & BERLESE Barbara Herzig 415-861-8800 bherzig@hbcondolaw.com ILENE M. HOCHSTEIN, ATTORNEY AT LAW Ilene Hochstein (650) 877-8288 ilene@hochsteinlaw.net

KAUFMAN, DOLOWICH, VOLUCK Ashley Klein 415-926-7612 aklein@kdvlaw.com

LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com

LAW OFFICE OF MICHAEL HEATH Michael Heath 415-931-4207 Mheath_law@sbcglobal.net

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

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

LAW OFFICE OF JULIANA E. PISANI Juliana Pisani 415-800-7562 Juliana@jpisanilaw.com

LAW OFFICES OF LAWRENCE M. SCANCARELLI Lawrence M. Scancarelli 415-398-1644 www.sfrealestatelaw.com

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

LORBER, GREENFIELD & POLITO, LLP Wakako Uritani 415-986-0688 wuritani@lorberlaw.com

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

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

NIVEN & SMITH Leo M. LaRocca 415-981-5451 leo@nivensmith.com

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

SHEPPARD-UZIEL LAW FIRM

Jaime Uziel 415-296-0900 ju@sheppardlaw.com

STEVEN ADAIR MACDONALD & ASSOCIATES, PC Steven Adair MacDonald (415) 956-6488 www.samlaw.net sam@samlaw.net

Dave Wasserman 415-567-9600 Dave@wassermanoffices.com www.davewassermansf.com

WIEGEL LAW GROUP Andrew J. Wiegel 415-552-8230 www.wiegellawgroup.com

ZACKS, FREEDMAN & PATTERSON, P.C. Andrew M. Zacks 415-956-8100 www.zfplaw.com

ZANGHI TORRES ARSHAWSKY, LLP John P. Zanghi 415-977-0444 www.zatlaw.com

BEDBUG DETECTION

CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com

PREMIER CANINE DETECTION Jordan Garcia 415-612-6645 www.premiercaninedectection.com

COMMERCIAL/RETAIL LEASING SERVICES

BLATTEIS REALTY CO. David Blatteis 415-981-2844 www.sfretail.net

CONSULTANTS: PERMITS & PLANNING

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

CONTRACTORS

DECK & BALCONY INSPECTIONS, INC. Dan Cronk 916-548-6943 dan@deckandbalconyinspections.com

CORPORATE RENTALS

AMSI

Robb Fleischer 415-447-2020 www.amsires.com

CREDIT REPORTING

INTELLIRENT

Cassandra Joachim 415-849-4400 www.myintellirent.com

DRAIN SERVICES

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

EMERGENCY SERVICES

THE GREENSPAN CO./ ADJUSTERS INTERNATIONAL Rebecca Holloway 707-540-5584 rebecca@greenspan-ai.com

ENERGY SERVICES

ARMADA POWER DavidMyers 614-918-7493 dmyers@armadapower.com

ENVIRONMENTAL CONSULTING

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

FIRE ESCAPE INSPECTION & MAINTENANCE

ESCAPE ARTISTS

Jabal Engelhard 415-279-6113 www.sfescapeartists.com

GREAT ESCAPE SERVICES

Rich Henderson 415-566-1479 www.greatescapeservice.com

FIRE PROTECTION CONTRACTORS

AEC ALARMS 408-298-8888 Ext: 121 SFfire@aec-alarms.com

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

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

EMERGENCY SYSTEMS, INC. Eric Hagerman (415) 564-0400 esmfire@earthlink.net

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

GARBAGE COLLECTION SERVICES

RECOLOGY GOLDEN GATE RECYCLING Minna Tao 415-575-2423 recologysf.com

RECOLOGY SUNSET SCAVENGER

Dan Negron 415-330-2911 recologysf.com

VALET LIVING

Briana Sellers 813-613-5073 briana.sellers@valetliving.com www.valetliving.com

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

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 925-495-9922 www.xfinity.com

LENDING / FINANCIAL SERVICES

FIRST FOUNDATION BANK Michelle Li 415-794-2176 www.ff-inc.com

LENDING / FULL SERVICE BANKS

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

LENDING / INSTITUTIONS

CHASE COMMERCIAL TERM LENDING

Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking

LOCKSMITHS

CROWN LOCK & HARDWARE Joe Schoepp 415-221-9086

MAINTENANCE REPAIR SERVICE

MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com

OGREENA

Christopher Sheilds 510-899-0238 jenniferbenassi@ogreena.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

Scott Goering 415-782-8940 sgoering@sfbar.org

PACKAGE SERVICE

FETCH

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

PAINTING CONTRACTORS

KRUITPAINTING, INC. Pieter Kruit 415-254-7818 www.kruitpainting.com

PAC WEST PAINTING INC. Brian Beaulieu 415-457-0724 www.pacwestpaintinginc.com

PETERS PAINTING SERVICES

Peter Pantazelos 415-647-4722 www.peterspainting.com

TARA PRO PAINTING INC. Brian Layden 415-822-2011 www.tarapropainting.com

PAINTING SUPPLIES

DUNN-EDWARDS PAINTS

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

PEST CONTROL

ATCO PEST & TERMITE CONTROL & HOME RESTORATION

Richard Estrada 415-898-2282 www.atcopestcontrol.com

CROWN & SHIELD PEST SOLUTIONS-PREMIER

Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com

PLUMBING & HEATING

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

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

R & L PLUMBING

Larry Bustillos 415- 651-4977 larry@rl.plumbing www.rlplumbingsanfrancisco.com

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

PROJECT MANAGEMENT

MELGAR REAL ESTATE SERVICES Suzy Melgar 650-745-8186 info@mresbayareahomes.com

PROPERTY MANAGEMENT

2B LIVING Brooks Baskin 650-763-8552 brooks@twobliving.com www.twobliving.com

ABACUS PROPERTY MANAGEMENT

Timothy Cannon 415-841-2105 tim@sanfranrealestate.com www.abacuspropertymanagement.com

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

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

AMORE REAL ESTATE, INC

Jerry Hsieh 415-567-4800 www.amoresf.com

ANCHOR REALTY Mark Campana 415-621-2700 mark@anchorealtyinc.com www.anchorealtyinc.com

ARTAL PROPERTIES

John Artal 415-647-4400 artalproperties@gmail.com www.artalproperties.com

BARBAGELATA REAL ESTATE COMPANY

Paul Barbagelata 415-566-1112 paulb@realestatesf.com adminteam@realestate.com

BAY PROPERTY GROUP Anna Katz 510-836-0110 anna@baypropertygroup.com www.baypropertygroup.com

BAYVIEW PROPERTY MANAGERS

James Blanding 415-822-8793 xt.4 bayview60@comcast.net www.bayviewpropertymanagers.com

BEAM PROPERTIES, INC.

Darius Chan 415-254-8679 darius@sfbeam.com

BLVD RESIDENTIAL Debbie Brackett 650-328-5050 dbrackett@blvdresidential.com www.blvdresidential.com

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

CITYWIDE PROPERTY MANAGEMENT

Carol Cosgrove 415-552-7300 www.citywidesf.com

DEWOLF REALTY CO. INC. William A. Talmage 415-221-2032 www.dewolfsf.com

property management

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

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

AMSI Robb Fleischer 415-447-2020 www.amsires.com

CECCHINI REALTY CO. Dante Cecchini, CCRM 415-550-8855 www.cecchinirealty.com

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

DEWOLF William Talmage 415-221-2032 www.dewolfsf.com

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

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

HRH REAL ESTATE SERVICES CORPORATION

Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

J. WAVRO PROPERTY MANAGEMENT

James Wavro 415-509-3456

LINGSCH REALTY Natalie M. Drees 415-648-1516 www.lingschrealty.com

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

PONTAR REAL ESTATE

Merri Pontar 415-421-2877 www.pontarrealestate.com

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

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 415-386-3111 www.slrealty-sf.com

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

SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.sutroproperties.com

VERTEX PROPERTY GROUP Craig Berendt 415-608-3050 vertexsf.com

WEST & PRASZKER REALTORS

Michael Klestoff 415-661-5300 www.wprealtors.com

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

VESTA ASSET MANAGEMENT Paul Griffiths 415-360-9292 x 1 paul@vesta-assetmanagement.com

EBALDC

Felicia Scruggs 510-287-5353 FScruggs@ebaldc.org EMBC

Nancy Wong (707) 584-5123 www.ebmc.com nancywong@ebmc.com

EQUITY ONE

Brenda M. Obra 415-441-1200 www.equity1sf.com

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

Scott Moore 415-828-8757 www.greentreepmco.com

GM GREEN REAL ESTATE INC. George Green 415-608-6485 ggreen@gmgreen.com www.gmgreen.com

GORDON CLIFFORD PROPERTIES, INC. Patrick Clifford 415-613-7694 patrick@gcpropertiessf.com

HOGAN & VEST INC.

Simon Wong 415-421-7116 hoganvest.com

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

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc

JACKSON GROUP

PROPERTY MANGEMENT, INC. Raymond Scarabosio 415-608-8300 ray@jacksongroup.net

JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com

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

LINGSCH REALTY Natalie M. Dress 415-648-1516 www.lingschrealty.com

MERIDIAN MANAGEMENT GROUP

Randall Chapman 415-434-9700 www.mmgprop.com

MLCSPACES, INC.

Naeem Farhokhnia 415-273-9861 naeem@mlcspaces.com

MYND MANAGEMENT, INC.

Stacy Winship 510-306-4440 www.mynd.co

NEW GENERATION INVESTMENTS

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

OPEN WORLD PROPERTIES Jonathan Daryl Fleming 510-250-0946 jonathan@openworldproperties.com www.Openworldproperties.Com

members

PAUL LANGLEY COMPANY

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

PILLAR CAPITAL REAL ESTATE

Jonathan Ng (415) 885-9584 jonathan@thepillarcapital.com

PONTAR REAL ESTATE

Merri Pontar 415-421-2877 www.pontarrealestate.com

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

PROEQUITYAM

Frank Bumbalo 415-531-2669 frank@proequityam.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 Kristine Abbey 650-290-3084 www.rockawayresidential.com

ROCKWELL PROPERTIES

Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com

RNB PROPERTY MANAGEMENTGOLDEN GATE

Kaveh Gorgani 415-413-3827 kaveh@rnbemail.com www.rnbgoldengate.com

SAN FRANCISCO RENTAL CONCIERGE Danielle Mahoney 415-532-0041 danielle@sfrentalconcierge.com www.sfrentalconcierge.com

SHAREVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com

SIGNATURE REALTY PROPERTY MANAGEMENT

Paul Montalvo 650-364-3167 paul@paulmontalvo.com

SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com

SKYLINE PMG, INC.

Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com

STRUCTURE PROPERTIES

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

SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.SutroProperties.com

W. PROPERTY MANAGEMENT

Gary Petrison 707-545-6187 gary@wpropertymanagement.com

WEST COAST PROPERTY MANAGEMENT

Eric Andresen 415-885-6970 www.wcpm.com

WEST & PRASZKER REALTORS

Michael Klestoff 415-699-3266 www.wprealtors.com

VERTEX PROPERTIESS

Craig Berendt 415-608-3050 craig.berendt@gmail.com YMPG

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

PROPERTY MANAGEMENT SOFTWARE

APPFOLIO

Mindy Sorenson 805-364-6098 mindy.sorenson@appfolio.com

HEMLANE, INC.

Dana Dunford 385-355-4361 dana@hemlane.com

PROPERTY ATLAS

Serina Calhoun 415-922-0200 serina@mypropertyatlas.com

YARDI

Kelly Krier 805-699-2040 kelly.krier@yardi.com

REAL ESTATE APPRAISALS

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

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com

BERKSHIRE HATHAWAY FRANCISCAN PROPERTIES

Edward Milestone 415-994-5969 MilestoneRealEstateSF@gmail.com

CHUCK & ASSOCIATES

Kevin Chuck 415-595-5832 chuckassoc@gmail.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

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

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

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

COMPASS COMMERCIAL BROKERAGE John Kirkpatrick 425-412-0559 john.kirkpatrick@compass.com www.johnkirkpatrick.com

COMPASS COMMERCIAL BROKERAGE Jay Greenberg 415-378-6755 jay@jayhgreenberg.com

CORCORAN GLOBAL LIVING COMMERCIAL

TerrenceJones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com

FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com

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

ICON REAL ESTATE INC. Jason Quashnofsky 415-370-7077 jason@iconsf.com

JHG415, INC. Jay Greenberg 415-378-6755 jay@jayhgreenberg.com

KENNEY & EVEREST REAL ESTATE, INC. Everest Mwamba 415-902-3411 maureen@kenneyrealestate.com

KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582

LESLIE BURNLEY

Leslie Burnley 415-717-8709 leslie.j.burnley@gmail.com leslieburnley.com

MARCUS & MILLICHAP

Sanford Skeie 415-625-2153 www.marcusmillichap.com

MAVEN PROPERTIES

Matthew Sheridan matt@mavenproperties.com

MORGAN REAL ESTATE ADVISORS, INC. Laurence Morgan 415-300-6503 laurence@morganrealestateadvisor.com www.morganrealestateadvisor.com

S&L REALTY Robert Link 415-386-3111 www.slrealty-sf.com

STEELE PROPERTIES

Ryan Steele 415-881-7762 ryan@steeleproperties.com www.steeleproperties.com

WEST & PRASZKER REALTORS

Michael Klestoff 415-312-2245 klestoffmre@aol.com

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

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

REAL ESTATE INVESTMENTS

CITY REAL ESTATE

Arthur Tom 415-987-6788 art@cityrealestatesf.com cityrealestatesf.com

COMPASS COMMERCIAL BROKERAGE Trigg Splenda 415-593-8616

KENNEY & EVEREST REAL ESTATE, INC. Everest Mwamba 415-902-3411 maureen@kenneyrealestate.com

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

REFINISHING / RESURFACING SERVICE

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

RENT BOARD PETITIONS

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

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

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

RENTAL LISTING SERVICES

COSTAR

Aj Herlitz 844-459-1495 www.costargroup.com aherlitz@costar.com

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

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

ZUMPER, INC. Connor Hodges 949-702-1508 connor@zumper.com www.zumper.com

RESIDENTIAL LEASING

GORDON CLIFFORD PROPERTIES, INC. PatrickClifford 415-613-7694 patrick@gcpropertiessf.com

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

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

J. WAVRO ASSOCIATES

James Wavro 415-509-3456 www.jwavro.com

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

LINGSCH REALTY

Natalie M. Drees 415-648-1516 www.lingschrealty.com

RELISTO

Eric Baird 415-236-6116, x101 www.relisto.com eric@relisto.com

RENTALS IN S.F. Jackie Tom 415-409-3263 www.rentalsinsf.com

RENTSFNOW Claussen 415-762-0213 kclaussen@veritasinv.com

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

VERTEX PROPERTIES

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

ROOFING

AGUILERA CONSTRUCTION & ROOFING

Javier Aguilera 707-495-3932 javier@aguileraco.com

SECURITY

ADT SECURITY MULTIFAMILY Jeanette Mendez 817-776-0301 jjmendez@adt.com

TRKA AMERICAS Isabella Restrepo 407-735-1728 irestrepo@trakausa.com

SEISMIC RETROFIT & STRUCTURAL ENGINEERING

BAI CONSTRUCTION

Behnam Afshar 510-595-1994, x101 www.baiconstruction.com

W. CHARLES PERRY

Charles Perry 650-638-9546 www.wcharlesperry.com

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

STAFFING

BG MULTI-FAMILY Shannon Valentino 714-654-9498 svalentino@bgmultifamily.com

SUBMETERS

LIVABLE Daniel Sharabi 415-937-7283 www.livable.com

TENANT PLACEMENT & LISTING

CAZERIA, INC

Julia D’Antonio 415-754-5373 julia@cazeira.com

STRUCTURE PROPERTIES

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

WATER CONSERVATION SERVICE

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

WATER DAMAGE SERVICE

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

WATERPROOFING

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

Please note that acceptance of associate membership does not necessarily consti tute any endorsement or recommendation, express or implied, of the associate mem ber or any goods or services offered.

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REAL ESTATE BROKERS

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Marcus & Millichap 36-37 Maven Multifamily 29

Vanguard Commercial / Chapleau 9

Vanguard Properties / Stack 18

UTILITIES BILLING SERVICES

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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.

Waiting Game

written by ANGELO BAGLIERI

As we head into the year’s fi nal quarter, we see that rents are rising—some getting close to pre-pandemic pric ing levels in most parts of the city. The year has been a rollercoaster for many as COVID-19 restrictions, for the most part, have completely lifted in the city: Busi nesses are pushing ahead to get back on their feet. Home buyers rushed to purchase homes over the summer to try and get ahead of the impending rise of interest rates.

The statistics for the first three quarters of 2022 compared to previous years are provided below. The value indicators for the 2-4-unit market were on the rise through the beginning of the year due to the historically low interest rates. As buyers were priced out of single-family homes, the next best option were du plexes, triplexes, or fourplexes. This ex act reason—along with other factors such as partnerships between buyers wanting to secure a home in San Francisco—was behind the value indicators that rose over this year up until the sharp increase in interest rates, which prompted a mar ket shift in the last few months.

It is obvious that the determining factors for the future of the 2-4-unit market will be led by interest rates along with the revitalization of our office market and downtown office sector, which is still under heavy scrutiny and struggling with more empty office space now than probably ever, with a vacancy rate of more than 25%.

Price per Square Foot

The following are 2022 year-to-date (January – October) statistics for the 2-4unit sector compared to the same period for previous years.

2 Units

When looking at the 2-4-unit market, keep in mind that 2-unit buildings will always sell at a premium due to the condo conversion rules. This is the most common play for two partners or two owner-occupiers who cannot find a single-family home to purchase in the city.

The average price per foot rose from $716 in 2017 to $784 in 2018 before drop ping back to $751 in 2019 and 2020. In 2021, the price per square foot rose to about $780.

Most likely, the slight increase can be attributed to an abundance of renters during the pandemic who saw this time as an opportunity to become buyers to make a lifestyle shift, to gain more indoor and outdoor space and privacy.

3-4 Units

The average price per square foot for 3-4-unit buildings has decreased since 2017 after an initial rise, with 2019 being the peak. In 2017, the price per square foot was $596, rising to $620 in 2018, and and $643 in 2019. A slow decline began in 2020, with the price per square foot of $631 retreating to $607 in 2021 and $592 in 2022.

Generally speaking, 3-4-unit buildings are tenant-occupied properties, which could mean they’re occupied by longterm and low-paying tenants. This, along with the heavy restrictions imposed on landlords in recent years, has decreased the price per foot in 3-4-unit buildings.

Price per Building

The following are statistics on price per square foot and building value for the 2-4-unit sector, reflecting the changes since the third quarter of 2019.

The average 2-4-unit building value and sales price was $2.2 million from January 2022 through October 2022. As we can see in the chart on page 66, the height of the market was in the second quarter this year, when interest rates had just started to rise, and buyers realized it could be their last chance to purchase a property before rates rose beyond their reach.

A good example that reflects this is a three-unit building I sold in third quarter 2022 after it sat on the market for almost a year. The address was 3850 23rd Street in Dolores Heights. It was on the market in 2021 for $2.6 million and received multiple offers through the end of 2021 and into the second quarter of 2022, but the owner was unwilling to accept any offer he received. One couple made an offer earlier this year, but we couldn’t come to an agreement on pricing, and they ended up walking away. But as interest rates began to rise, those same buyers came back and made another attempt to secure the building before rising interest rates made it unat tainable. We came to an agreement and closed in early October with a rate lock

Interest rates and the revitalization of our downtown office sector will predict the future of the 2-4-unit market.

from early September. Their agent had in dicated it was their client’s final attempt to purchase a building before holding off and waiting for the rates to drop.

The second highest values were back in quarter two 2020 when the pandemic hit; people were frantically wanting to pur chase a home to adjust for a work-fromhome lifestyle and to spend more time at home in general. Now, comparing quarter three 2022 with quarter three 2021, we see

a median sales price drop of about 8.5%.

The main factors being the rise of inter est rates making a loan unobtainable for a lot of people, and this will likely continue through the remainder of the year.

Lastly, an interesting data point is that in fourth quarter 2021, the average 2-4-unit building value and sales price was still at a healthy $2.1 million—even though the holidays usually come with a slower mar ket. The low interest rates and a continued

need from people working from home drove this period to maintain high sales prices. The same won’t be said for the remainder of this year as rates have driven most people back to renting.

Summary

We saw peak price points at the end of 2021 and the beginning of 2022. Since then, indi cators, sales, and price points have been on the decline. San Francisco is also still slowly recovering from the heavy downfall in rents caused by the major exodus of people who left the city throughout the pandemic. Some parts of the city have recovered bet ter than others, but we still have a way to go. The market is still adjusting to volatile and unsettled economic conditions, and definitive conclusions should not be made based upon a single quarter’s data. The au tumn selling season runs until mid-Novem ber when the mid-winter holiday slowdown usually begins.

Angelo Baglieri is a Senior Associate with the Bonn Webb Team and can be reached at 415-814-8288.

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Check Out What’s New at SFAA!

1.

SFAA’s New and Improved Website Is Live!

Our new website makes it easier than ever to access the information, market surveys, education, and forms you need to manage your rental properties. The streamlined website allows SFAA members to quickly sign up for classes, access preferred vendors, and get legislative updates. Go to sfaa.org today!

2.

SF Apartment Magazine is Now Available Digitally!

The official publication of SFAA, SF Apartment Magazine reaches approximately 6,000 readers in print each month. Now that the publication is accessible digitally, members can access the invaluable content from anywhere—and advertisers have an even broader reach. Go to sfaa.org/magazine today!

Interested in advertising?

Your ad will appear in the feature-length magazine, alongside articles written by San Francisco’s top landlord attorneys, industry professionals, and small rental property owners. With a readership of rental property owners and industry professionals, your ad will reach the right targeted audience to grow your business.

Contact Vanessa Khaleel at vanessa@sfaa.org or Pam McElroy at pam@sfaa.org to learn more about advertising opportunities and special discounts. San Francisco Apartment Association I 265 Ivy Street I San Francisco, CA I 415.255.2288 I www.sfaa.org

The San Francisco Apartment Association is your rental housing resource. SFAA has been working round-the-clock educating, advocating for, and supporting the rental housing community so that its members operate ethically and fairly.

pre-exit inspection’s purpose is an op portunity to discuss any concerns but that your inspection is limited to what you can see without rearranging the furnishings. Encourage the tenant to use the inspec tion as an opportunity to have an open conversation about what changed during a tenancy. Common conditions are stains to hardwood from a planter that didn’t have a proper moisture barrier, or scratches from furnishings. If lighting is bad, point out that it may be difficult to clearly deter mine if there are damages while explain ing that dirty walls can lead to the need to completely clean and repaint the inte rior. If slat-style window coverings are in the open position, explain that you may charge to replace them if they are bent, broken, or dirty.

Disposition of Security Deposit

Landlords who have the urge to remodel their property at a vacating tenant’s ex pense will quickly find themselves in court defending an unfair practices lawsuit and possibly subject to treble damage awards. However, even the most well-intentioned landlords may find themselves scrutinized over charges that are legitimate damages. Having communicated with your tenants before and during their tenancy, you will hopefully have framed the expectations in advance of their departure, thereby avoid ing some common and foreseeable damage claims. Despite all your efforts, damages often and unfortunately happen.

Even the best landlord/tenant relationship can quickly sour over a security deposit dispute, so landlords should always try to weigh their expectations against that of the tenants. Did you clearly define your expec tations with written lease provisions? Have you communicated what you will assess to them in advance? Do they understand the approximate value of the impending re pairs? Have you absorbed any of the repair costs against the term of their tenancy and as a measure of goodwill?

Lawsuits, even in a small claims court, are costly to both parties. To be effec tive in winning your argument, you will

need to provide clear evidence of beforeand-after conditions, cost of repair, and contractual obligations. Preparing for a court case requires a lot of time filing and answering the summons. By evaluating your position, as seen through the eyes of a judge or pro tem, you might be per suaded to weigh the cost of the pursuit of the claim versus the damages themselves.

While preparing your disposition, take those factors into account. It is also help ful to add a cover letter to your disposi tion that illustrates the actual costs, what you absorbed, and what you feel you are otherwise entitled to. Most tenants have never engaged in the exercise of repair ing property items and therefore need to be educated on what the repair costs are. For example, sometimes appliances that were new at the start of a tenancy become scratched or dented. Tenants rarely know it is sometimes more costly to replace a couple panels than to purchase an en tirely new appliance. If you have the origi nal receipt for an item, include it, so there is a comparison.

Whenever possible, a landlord should always show goodwill to the tenant and cover portions of damages, especially if it can be done while conducting other repairs.

Renee Engelen is the president of the Professional Property Managers Association of San Fran cisco and President of HRH Real Estate Services Corporation, serving the rental industry. She has been active in property management for almost 40 years and has owned and operated motels and hotels nationwide. HRH Real Estate Services Corp provides property management, sales, leasing, and development services within the SF Bay Area. For more information, call (415) 810-6020.

Mike Stack Real Estate Advisor

Ways to Connect.

Email SFAA at MemberQuestions@sfaa.org to have your questions and concerns promptly addressed, or call the office at 415-255-2288. You can also follow the happenings of your fellow SFAA members and find out the latest in the industry by connecting with SFAA on Facebook. Search “San Francisco Apartment Association” and “Like” it to add it to your news feed. Follow SFAA on Twitter at twitter.com/SFAptAssoc

• New sfaa.org website launched!

• Email SFAA at MemberQuestions@sfaa.org

• Connect with SFAA on Facebook

• Follow SFAA on Twitter at twitter.com/SFAptAssoc

may have been, the effect of this amend ment will likely be contrary to the goal of its proponents.

The above content was written by Zacks, Freedman, & Patterson Real Estate At torney Gael Bizel-Bizellot and reprinted with permission. The information is not in tended as legal advice. Contact an attorney regarding your specific situation.

SFAA 2023 Tenancy Agreement

The SFAA volunteer attorney panel is finalizing SFAA’s 2023 Tenancy Agree ment. After several months of review and editing, you can expect the new lease by January 2023.

The committee reviewed edits and sug gestions that had been submitted by members, and many of those were incor porated this year. We always appreciate the comments and concerns we hear from you, and we look forward to your com ments in the future.

SFAA Updates

SFFD Toy Drive: SFAA is hosting a toy drive through the end of December. Stop by the office at 256 Ivy Street with a new unwrapped and unopened toy.

SFAA Office Reopening Status: As the SFAA pivots to a hybrid in-office work model, members are welcome to make an appointment to visit the office with ques tions. However, please refrain from com ing in person if you have tested positive for, were exposed to, or have symptoms of COVID-19.

The best way to have your questions answered is through email: Member Questions@sfaa.org. And just a friendly reminder, timely payment of membership dues is the best way to help the association help you.

SFAA Member Meetings: The first in-per son member meeting since the 2020 shelterin-place is scheduled! Mark your calendars for March 15, 2023.

extra extra READ ALL ABOUT IT

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

Subscriptions must be registered and billed to an SFAA member.

Sign up today!

Online: sfaa.org/membership

Phone: 415-255-2288

NEIGHBORHOOD EMERGENCY RESPONSE TEAM (NERT)

Get prepared and be involved. NERT is a communitybased training program that takes a neighbor-helping-neigh bor approach, creating lifelines between families, neighbors, and San Francisco’s emergency responders.

NERT is a free training program for individuals, neighbor hood groups, and community-based organizations in San Francisco. Individuals learn the basics of personal prepared ness and prevention. Participants learn hands-on disaster skills that will help them as members of an emergency re sponse team and/or as a leader directing untrained volunteers during an emergency, allowing them to act independently or as an adjunct to City emergency services.

Enrollment is easy! Want to host a NERT training in your San Francisco building or neighborhood? Classes will be scheduled based on program need and location. To request a class, you must have thirty sign-ups and an ADA compliant space able to accommodate at least eighty people.

Neighborhood Emergency Response Team (NERT) (415) 970-2022

SFFDNERT@sfgov.org

NERT Class Sign-Up Hotline (415) 970-2024

contract. You verbally offered the unit to the applicant, but that is not necessarily a contract. For there to be an enforceable agreement, parties must exchange prom ises or performances with a sufficiently ascertainable, commonly understood ob ject. It wasn’t enough to “offer” the unit. The applicant would have needed to ac cept the offer with their own promise (in this case, the payment of a specific rental rate for continued occupancy). If your offer was not specifically accepted (and you either timely withdraw it or it is not accepted in a reasonable amount of time), there is no contract.

Assuming you communicated the mate rial terms of the proposal, and the appli cant timely accepted it, you have probably formed a contract. However, a rule called the “statute of frauds” generally requires that contracts for renting real property for at least a year be in a signed writing to be enforceable. (This is the most common lease duration and is actually required in most San Francisco leases.) It fundamen tally operates as a rule of evidence (not substance) and “part performance” can take a contract out of the statute of frauds, so it’s not the kind of defense you’d want to be loudly taunting the other side over. But it should form the basis for a prin cipled stance that the applicant can’t en force your verbal offer alone.

Having said that, detrimental reliance on your promise could theoretically support enforcement or, at least, a claim for some kind of quasi-contract recovery. For in stance, if the applicant gave notice at their current apartment and had to scramble to find a replacement apartment at a higher rent, you could theoretically be liable for the difference. Certainly, you should promptly return any funds (like deposit) you received, and maybe even the appli cation fee. You might also communicate your apologies that you are “not going to be able to deliver possession of the unit after all” and see how the applicant responds. Ultimately, this is the kind of low-stakes problem that will probably not result in a lawsuit, but the best practice

would be to communicate an offer when you’re ready for it to be accepted.

—Justin A. Goodman

Q. I received a Section-8 application for a vacant unit. I’ve never rented to someone with Section-8 vouchers before. What do I need to know before deciding to move forward?

A. You need to know more about the applicant and their credit. It is no longer legal in California to reject residential rental applicants solely on the basis of their use of Section 8. Under current law, refusal to accept Section 8 vouchers is considered il legal housing discrimination on the basis of source of income.

At the state level, housing discrimination is governed by the Fair Employment and Housing Act (FEHA). Like the federal Fair Housing Act (FHA), FEHA requires that landlords make exceptions to established rules or policies if necessary to afford persons with disabilities an equal oppor tunity to enjoyment of rental facilities. You may have come across FEHA when a ten ant or applicant requested an emotional support or companion animal on the basis of disability, or if a tenant or applicant re quested a reasonable modification such as grab bars. Although discrimination on the basis of source of income has long been illegal in California, prior to 2020, there was copious (and sometimes conflicting) case law that allowed landlords to decline to participate in the Section 8 program due to the administrative burdens that the pro gram imposed and because, as one court put it, Section 8 seeks to remedy poverty rather than disability. Another provided the analysis that Section 8 vouchers are not income for the purposes of source of income discrimination because voucher holders do not receive funds from the government, but rather the funds are paid directly to landlords.

Nonetheless, towards the end of 2019, as part of the implementation of statewide rent control and other tenant protections under SB 1482 (the Tenant Protection Act),

the California legislature passed SB 329, which amended FEHA to expand the defi nition of source of income to include use of Section 8 vouchers and other governmental assistance in order to expand the definition of illegal discrimination. That is, Section 8 vouchers are now considered income and a landlord may not legally reject an other wise qualified applicant on the basis that part of her use of a Section 8 voucher.

Nearly all rental units are subject to FEHA, included the provisions of SB 329. The exception is homeowners who live in their condos, houses, or other single-family resi dence and rent out rooms. Otherwise, land lords may only reject applicants after giving the application due consideration on its merits. Landlords may face administrative action (such as a California Department of Fair Employment and Housing complaint) or litigation if an applicant believes that they have been rejected solely on the basis of their Section 8 voucher.

This does not mean that you are required to rent to all applicants with a Section 8 voucher, merely that Section 8 applicants must be given equal consideration to those without governmental assistance. Section 8 applicants may still be rejected on the basis of poor credit, history of evictions, or unfavorable references. And while accep tance of Section 8 vouchers may require ad ditional paperwork, Section 8 tenancies are not subject to local rent control restrictions, making acceptance of Section 8 vouchers favorable for many landlords.

—Shoshana Raphael

The information contained in this article is general in nature. Consult the advice of an at torney for any specific problem. David Semel is with Fried, Williams & Grice Conner and can be reached at 415-421-0100. Justin A. Goodman is with Zacks, Freedman & Patterson, P.C. and can be reached at 415-956-8100. Shoshana Raphael is with SJR Law Corporation and can be reached at 415-408-6044.

TIS THE SEASON

We can all agree that this year has been tough in different ways for just about everyone. If you’re looking for ways to give back this holiday season, consider supporting your community through these local organizations.

HOMELESS PRENATAL PROGRAM

homelessprenatal.org/donate

A nationally recognized family resource center in San Francisco that em powers homeless and low-income families, particularly mothers motivated by pregnancy and parenthood, to find within themselves the strength and confidence they need to transform their lives.

MEALS

ON WHEELS mowsf.org/donate

Help make the holidays cheerier for thousands of San Francisco seniors by donating to Meals on Wheels. Meals on Wheels provides a network of services that allows seniors to live in their homes with dignity and inde pendence. They are the only organization in San Francisco that offers two home-delivered, nutritionally tailored meals every day, seven days a week.

MENTAL HEALTH ASSOCIATION OF SAN FRANCISCO mentalhealthsf.org

MHASF has been a San Francisco nonprofit and a leader in peer recovery for hoarding and cluttering for 75 years. MHASF peer-based counseling and support services are designed to improve quality of life and prevent eviction and homelessness for individuals living with hoarding behaviors while offering support to family members and professionals working with hoarding behavior challenges.

SAN FRANCISCO HOUSING FOUNDATION sfhousingfoundation.org

In partnership with the San Francisco Apartment Association, SFHF helps rental property owners who do not speak English as their primary language keep up with San Francisco’s ever-changing landlord-tenant laws through education and translation services.

SWORDS TO PLOWSHARES

swords-to-plowshares.org/donate

Swords to Plowshares is a Bay Area-based nonprofit organization dedi cated to supporting all veterans, including 3,000 homeless, low-income, and at-risk local vets each year. The organization offers employment and job training, supportive housing programs, permanent housing placement, counseling and case management, and legal services.

PMR100 Introduction to Ethical

2/7/2023 6PM 9PM $85.00 $100.00

PMR101 Renting the Property 2/14/2023 6PM 9PM $85.00 $100.00

PMR102 Beginning and Maintaining the Tenancy 2/21/2023 6PM 9PM $85.00 $100.00

PMR103 Renewal of Tenancy and Ending the Tenancy 2/28/2023 6PM 9PM $85.00 $100.00

PMR104 Maintenance Management: Maintaining the Property 3/7/2023 6PM 9PM $85.00 $100.00

PMR105 Liability & Risk Management 3/14/2023 6PM 9PM $85.00 $100.00

PMR106 Budget Development and Implementation 3/21/2023 6PM 9PM $85.00 $100.00

PMR107 Fair Housing: It’s the Law 3/28/2023 6PM 9PM $85.00 $100.00

PMR108 Professional Skills for Supervisors 4/4/2023 6PM 9PM $85.00 $100.00

EXAM CCRM Final Exam 4/11/2023 6PM 9PM FREE FREE

Class Location

Zoom Webinar System

To Register

Total Due:

Upon registration the Zoom link will be emailed to the student Class is every Tuesday

Online: www.sfaa.org Call: 415 255 2288 x.110 Email: maria@sfaa.org caanet.org events@caanet.org 800.967.4222 • 980 Ninth Street, Suite 1430

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