Rental Housing - February 2017

Rental

Housing EAST BAY RENTAL HOUSING ASSOCIATION | FEBRUARY 2017

WHAT’S NEXT? How Trump’s presidency may affect the real estate market

PLUS: THE BENEFITS OF LIMITED LIABILITY COMPANIES CALIFORNIA’S NEW UNLAWFUL DETAINER MASKING LAW

Contents

East Bay Rental Housing Association

FEBRUARY 2017

Volume XIV, Number 2 | February 2017 EBRHA OFFICE

3664 Grand Ave., Suite B, Oakland, CA 94610 tel 510.893.9873 | fax 510.893.2906 www.ebrha.com EBRHA STAFF EXECUTIVE DIRECTOR

Jill Broadhurst | jbroadhurst@ebrha.com DIRECTOR OF STRATEGIC PARTNERSHIPS

Tina Bocheff | tbocheff@ebrha.com PUBLICATIONS & COMMUNICATION PRODUCER

Esteban Cortez | ecortez@ebrha.com ACCOUNTING MANAGER

Cathy Hayden | chayden@ebrha.com MARKETING & EVENTS COORDINATOR

10

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What’s Next?

Benefits of Limited Liability Companies

BY TERRY ALLEN

Angelisa Ross | aross@ebrha.com MEMBERSHIP & ADMINISTRATIVE ASSISTANT

Angelique Johnson | reception@ebrha.com EBRHA OFFICERS PRESIDENT Wayne C. Rowland VICE PRESIDENT Luke Blacklidge VICE PRESIDENT Jack Schwartz SECRETARY Fred Morse TREASURER Abbe Sultan EBRHA DIRECTORS

Symon Chang, Nathan Durham-Hammer, Irina Gelfenbeyn, Reggie Hairston, Brent Kernan, Carmen Madden, Conor Murphy, Michael Pallas, Rick Philips, Jason Russell, Judy Shaw, Carlon Tanner

BY HARRY BARTH

20

PUBLISHED BY

East Bay Rental Housing Association PUBLISHER

Hidden Records

Wayne C. Rowland

BY RON KINGSTON

MANAGING EDITOR Jill Broadhurst EDITOR Tina Bocheff ART DIRECTOR & COPY EDITOR Esteban Cortez ADVERTISING

Tina Bocheff | 510.318.8303

Features & Columns NEWS

Important Oakland Rent Ordinance Changes Effective Feb. 1 8

PROPERTY MANAGEMENT TIPS

Private Eye

BY SAM BROWN

28 GOVERNMENT AFFAIRS A Real Chance Looms for Tax Reform This Year

BY GREG BROWN 30 ESQ&A Oil Spill

BY VARIOUS AUTHORS

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Events & Directory 32 COMMUNITY CALENDAR 34 V ENDOR DIRECTORY 38 M EMBERSHIP INFORMATION 38 A D INDEX

Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 3664 Grand Ave., Suite B, Oakland, CA 94610.

Rental Housing is published monthly for $36 per year by the East Bay Rental Housing Association (EBRHA), 360 22nd Street, Suite 240, Oakland, CA 94612.

Rental Housing 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 Rental Housing are those of the author and do not necessarily reflect the viewpoint of EBRHA or Rental Housing.

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 EBRHA, express or implied, of the advertiser or any goods or services offered.

Published monthly, Rental Housing is distributed to the entire membership of EBRHA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright © 2017 by EBRHA. All rights reserved.

COVER PHOTO: CRAIG TOOCHECK

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contributors

TRASH & RECYCLING RATES RAISED AGAIN!

TERRY ALLEN, CFP®AWMASM Terry Allen of Enhance Wealth Advisors® is a Certified Financial Planner™ (CFP®), and Accredited Wealth Management AdvisorSM (AWMASM). She earned her professional designations from the College for Financial Planning.

Terry is treasurer of East Bay Commercial Real Estate Women, and is immediate past president of the Estate Planning Council of Diablo Valley. She graduated from the University of San Francisco with a Bachelor of Science Degree in Mathematics.

HARRY BARTH Harry Barth is the founder and senior managing partner of the asset protection and estate planning firm BarthCalderon, LLP. In addition to his law degree, Harry holds 12 advanced planning degrees including a Masters in Financial Services, an MBA in Financial Planning and the CFP designation.

SAM BROWN

In 2015, owners were hit with trash and recycling fee increases of as much as 500%. The City of Oakland agreed to ANOTHER hike that fleeces property owners further!

For 1-4 Unit Buildings • Curbside and backyard compost collection — increasing more than 7% • Curbside recycling collection — new separate fee of $12.56 per cart • 2-4 units: Per-unit surcharge — increasing 19% • Single-family home curbside and backyard trash collection — increasing 8-10% • Contamination fees — $25-$50 per incident For 5+ Unit Buildings • Trash and compost rates — increasing more than 7% • Curbside recycling rates — increasing nearly 20% • Push/pull fees — increasing 5% • StopWaste Benchmark fee increasing • Contamination fees — $25-$50 per incident

Sam Brown is a tenacious investigator with over 40 years of experience who established a licensed, independent investigative agency in 1983. He is author of Private Eyes. He has appeared on several national television programs, has lectured at various colleges, and teaches courses worldwide.

The City approved these increases, proving once again that they don’t care about property owners! Before signing this unfair deal, city officials said that rate increases under the new contract would not exceed 40%. Instead, more than two-thirds of EBRHA members surveyed saw hikes of 40-100%, and a third saw increases of 101-525%!

RON KINGSTON

EBRHA filed a landmark lawsuit in 2016 to expose the increases as an illegal tax. The lawsuit also calls into question the $25 million dollar annual franchise fee that the City collects.

In order to win this case, the EBRHA Legal Fund must be well-supported, as it is common for cities to use legal tactics that prolong a case in order to deplete the plaintiff’s resources. We look to all EBRHA members for your support. Please donate to the legal action fund today.

Ron Kingston is the EBRHA state lobbyist and president of the California Political Consulting Group. He has 30 years of lobbying experience and is one of the original writers of the state’s legislation against rent control, the CostaHawkins Act. He grew up in South Lake Tahoe and lives in Carmichael with his wife Sherrie, a financial planner. In his spare time, he cycles, skis and takes international scuba diving trips.

Go to ebrha.com/legal-fund 4 RENTAL HOUSING

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ebrha.com

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W E A R E APARTMENTS.ORG

COLUMN

title newshere

Important Oakland Rent Ordinance Changes Effective February 1, 2017 passed changes to the Oakland Rent ordinance affecting capital improvements, owner-occupied building exemptions, rent increase petitions and more at the September 20 city council meeting. The changes— which go into effect February 1, 2017—are as follows: Capital Improvements. Capital improvements will no longer be based on 5 years, but rather “useful life.” Additionally, imputed financing costs will be allowed in a schedule, to be determined by the Rent Board. All other restrictions remain in place; Owner-occupied Exemptions. The waiting period for exemption from rent control for 2-3 unit owner-occupied buildings has been extended from 1 year to 2 years; Tenant Petitions. Renters will have 90/120 days, rather than 60 days, to contest rent increases depending on if a RAP notice has been served or not (renter has 120 days if RAP notice was not served); Rent Board Translation Services: Language translation services will be provided by the Rent Board to all persons who request it; Substantial Rehabilitation. If owners have a building that now qualifies for an exemptionof rent control based on substantial rehabilitation, they must apply by June 2017 to avoid OAKLAND CITY COUNCIL

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losing that exemption right. Measure JJ: Aside from these changes, voters in the City of Oakland approved Measure JJ (Renter’s Upgrade Act) with a majority vote. The following was passed under the measure: pre-petition required for all increases above the annual allowable increase (CPI, currently 2%); no pre-petitioning needed for banking; Just Cause will now include properties built before December 31, 1995 (currently set at 1980); more power is given to the Oakland Rent Board; and substantial rehabilitation has stricter requirements.

This measure is also effective February 1, 2017. Other policies under amendment changes are owner move-in and code-enforcement relocation costs, as well as a proactive inspection program.

To download the ordinance, go to www. ebrha.com/city-of-oakland.

Emeryville’s Residential Landlord And Tenant Relations Ordinance in Effect April 1, 2017 The City of Emeryville has adopted Ordinance No. 16, the “Residential Landlord and Tenant Relations”Ordinance, which is effective April 1, 2017, according to Emeryville city clerk. According to the text of the ordinance, it was adopted to “increase certainty and fairness in the residential rental market in the City by addressing just cause eviction, antiharassment, and relocation assistance.”

The Ordinance applies to most rental properties in the city, with some exceptions including dwelling units in hotels, motels, lodging houses and rooming houses; nonprofit cooperative housing; and units exempted under state laws, such as units single family homes or new construction as defined in the Costa Hawkins Rental Housing Act. A full list of exemptions is available in the ordinance. Some of the significant changes under the Ordinance include: Just Cause for Termination of Tenancy.

Like ordinances in Oakland, Berkeley and Richmond, an owner must have “just cause” to terminate a tenancy in Emeryville. Just cause may include the following: failure to pay rent, breach of rental contract, tenant illegal activity, violations of city Health and Safety code,

failure to allow access to unit, tenant rejected written lease extension, violated occupancy restriction, owner returning from sabbatical to occupy the unit, and condo conversion. Relocation Assistance for No Fault Terminations. Tenants may be entitled to relocation assistance if a termination qualifies as “No Fault.” This includes removal of the unit from the market, owner move-in, sale of a unit, units removed from the market due to habitability issues, and substantial renovations. “Relocation assistance” means either five times the most current fair market rents as published annually by the U.S. Department of Housing and Urban Development (“HUD”) for the OaklandFremont, California HUD Metro FMR Area in the Federal Register, or four times the monthly rent that the tenant(s) is paying at the time the Notice of Termination is delivered, whichever amount is greater.

Anti-harrassment and Other Prohibited Activities. In addition, the ordinance prohibits owners from harassing behavior towards tenants, including (but not limited to) failure to perform repairs or maintenance, removal of personal property from a unit, or refusal to accept rent.

For a full list of the anti-harrassment laws, go to ebrha.com/updates-by-city.

Notice of Tenant Rights. Owners must provide to each tenant in a covered unit a “Notice of Tenant Rights” in substantially the same form as follows: “The City of Emeryville regulates the relationship between most landlords and tenants within the City. Generally, landlords may not terminate your tenancy without cause or explanation, and may not reduce or stop providing services agreed to in the rental contract, so long as you pay rent on time as agreed in the rental contract. In addition to State and Federal Laws, the Residential Landlord and Tenant Relations chapter of the Emeryville Municipal Code creates certain rights for landlords and tenants, which may include the right to relocation assistance or the right to return to your rental unit if you are evicted. Visit the City of Emeryville website for more information: http:// www.emeryville.org.” EBRHA will send updates on the ordinance as they becomes available. For more information, including additional termination requirements and policies, download the ordinance at ebrha.com/updates-by-city. RH

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RENTAL HOUSING 7

COLUMN

property management tips

Private Eye

How hiring a private investigator can help mitigate your risks and protect your properties. BY SAM BROWN

Y

ou have choices when renting your property, such as how to screen your tenants and who to ultimately rent to. A simple background check may help mitigate the risks of renting to problematic tenants.

Unfortunately, there are renters that are disreputable and dishonest, during the application process and after they become your tenant. Perhaps your tenant is conducting criminal activity on your property, or subletting their unit when the lease clearly prohibits it.

When Word of Mouth Isn’t Enough Often, another one of your tenants may inform you of illegal or unusual activities, but sometimes that isn’t enough.

One option is to hire a private investigator. A private investigator can come in handy in many different ways: they can help you verify occupancy of your units, identify a breach of the lease, or uncover any suspected criminal activity.

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When hiring a private investigator, the investigator typically does a preliminary investigation and issues a report.

You and your attorney can then decide if the matter is worth pursuing. Attorneys specialize in arguing cases before the Rent Board or in court. Investigators specialize in collecting evidence. You’ll need both if you hope to win your case.

Are Your Tenants Actually Living in Their Unit?

Unfortunately, it’s common for master tenants to sublet their units without permission or allow unauthorized guests to move in. When an owner suspects their tenants may be subletting, they may find the aid of a private investigator useful to find evidence.

Here are some important considerations: Is the unit listed as the tenant’s residence on any vehicle registration, voter registration or with any other public agency? Are utilities billed to and paid by the tenant at the unit? Are all the tenant’s personal possessions kept in the unit? Has the tenant filed a homeowner’s tax exemption for a different property? Is there credible testimony or evidence that the tenant occupies the rental unit as his or her “principal place of residence” or for enrolling their children in a particular school? Is the unit being used as a second home (pied-a-terre)?

Here’s an example where an investigator may come in handy: after numerous complaints from a tenant that guests are constantly leaving a rental unit with suitcases, an owner may suspect that their tenant is listing their unit on Airbnb. A private investigator can help you gather evidence to determine what is happeninging in your unit. Typically, private investigators conduct mobile and stationary surveillance from the street to document who’s going in and out of the property, generally at a distance. Private investigators are usually very knowledgeable of laws pertaining to privacy, so these rules are followed when they private gather evidence for you.

Tenant Screening Private investigators also come in handy before prospective tenants move into a unit. A private investigator can help you verify “Typically, bankruptcy, judgements, investigators liens, and current civil conduct mobile and criminal filings. The and stationary file number, date, liability surveillance from the amounts, and judgments street to document search may return defenwho’s going in and dant name and current out of the property, address, plaintiff name, generally at a judgment, date, location distance.”

ebrha.com

Video Recording There are steps rental property owners can take to monitor activity in and around their properties, such as installing video cameras.

However, owners should

PHOTO: JD HANCOCK / JDHANCOCK.COM, CC BY 2.0

and type of filing. A tax liens search may return debtor name and address, and date, where the tax lien was filed and the document type.

be careful when using cameras to ensure laws aren’t being broken.

While it’s generally legal to record video in public places, it is illegal to record surveillance video in your rental units. Cameras without audio recording are permitted if there is no expectation of privacy, such as in common areas: garages, hallways, lobbies and entrances, etc.

Audio recording is never permitted.

California protects its citizens’ privacy by making certain kinds of eavesdropping a crime. These laws are found in Penal Code 632 PC.3 It is a crime to use an electronic device to overhear or record a private conversation. Outside the home, similar laws apply.

There have been cases where owners recorded audio conversation in the garage with two tenants, who happened to be attorneys, and the owner was fined over $50,000 in Superior Court and threatened with criminal charges.

California has thousands of complex laws. Knowing your rights as a property owner can save you thousands of dollars.

Private investigators can assist property owners in understanding the laws on surveillance in or around your rental properties.

Protect Your Properties As a property owner, it is crucial to protect yourself from disreputable and dishonest tenants. Hiring a private investigator is one way to verify what’s going on at your property. Investigators can also conduct background checks on your potential tenants, minimizing risk of property damage, missed rent, and criminal activity. The chart at right shows a general list of the services private investigators offer. RH

The information contained in this article is general in nature. Consult an attorney or professional for specific advice. Sam Brown is a tenacious investigator with over 40 years of experience who established a licensed, independent investigative agency in 1983. He is author of Private Eyes. He has appeared on several national television programs, has lectured at various colleges, and teaches courses worldwide. Sam can be reached at 415-621-5918, sbgroup@att.net or www.sambrowninvestigations.com.

Services Offered by Private Investigators

Hiring a private investigator is one way to monitor what’s going on at your property, whether it’s verifying income or checking for criminal activity.

Below are some of the services private investigators offer that may be beneficial to rental property owners.

TENANT INVESTIGATIONS • Telephone/fax listing/ownership • Property ownership and homestead exempted • Board of Elections search • Utility search • Address verification CRIMINAL SEARCH/ BANKRUPTCY, JUDGEMENTS, LIENS • Professional license search • Motor vehicle registration search • Database research using state of the art technology which includes address update • Public record document search including homeowner’s exemptions, voter’s registration, recorded civil and criminal legal documents • Surveillance of the property • Closed circuit TV systems: installation and monitoring that allows you to know who is coming and going from your property • Interviewing and obtaining written statements • Testifying in court

For more information about Sam Brown’s private investigator services, call 415-621-5918 or visit his website at www.sambrowninvestigations.com. RH

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FEATURE

The Benefits of Limited Liability Companies How LLCs are like building a fortress around your property.

BY HARRY BARTH

D

id you know that 85% of the world’s lawsuits are filed right here in the United States? Or that according to the U.S. Chamber of Commerce, California ranks as one of the worst states in the country when it comes to liability lawsuits? In these highly uncertain times, the issue of disparities in wealth, income and taxation has become the subject of heated debate.

Many families with rental income property are concerned the current environment puts them at a high risk of a devastating liability lawsuit. It’s not only the financial impact they fear, it is the stress and damage to their reputations that are a factor.

In the current environment, there is a higher probability of a personal injury lawsuit in cases of auto accidents and “slip and fall” cases. If the defendant owns rental property, they are perceived to be “wealthy”. So an otherwise minor event can turn into a money-grab situation by the “victim”.

The Legal System

It seems today that people will sue for just about anything. Take for example, the true story of the psychic who lost her powers.

Not long ago, a psychic needed a CT Scan. So she was rolled into the scanner and guess what? When she was rolled out, she had lost her psychic powers. So she sued everybody involved.

She sued the hospital, the equipment manufacturers and the doctors. A jury awarded the psychic a substantial amount of money for the loss of her psychic powers. And you are probably thinking that she should have known about the loss before it happened!

Here’s another incredible true story. At a recent membership meeting for a large association of rental property owners in San Francisco, the moderator opened the meeting with a story about one of the members of the association. A tenant of the owner complained of rat problems. So the owner cleaned up the problem and all seemed fine. Until the tenant moved out and filed a huge lawsuit for a health related claim and lost wages.

Our legal system is broken. There are far too many lawsuits and litigation has become a means for transferring wealth from one person to the next. If you own meaningful assets in today’s world, then you have a target on your back.

Inside & Outside Liability

Rental property owners are an attractive target for lawsuits.

As an owner, you have to be concerned with “inside liability” as well as “outside liability.” Inside liability refers to an event that stems from the property itself, such as a tenant lawsuit, a construction accident on the property or a dog on the property bites someone. An outside liability is an event that happens “away” from the property. This could be you or your spouse getting into a car accident and getting sued.

Both inside and outside liabilities can lead to an attack on the equity in your rental property.

It is critically important that anyone who owns rental property understand the tools available to guard their assets.

Do you own rental income property in your own name or in the name of your trust? If so, then ALL of your assets are exposed to a legal attack. This includes your personal residence; ebrha.com

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RENTAL HOUSING 11

There are other distinct advantages of LLC’s. When figuring out management responsibilities, LLCs enjoy much greater flexibility than a corporation. While corporations are statutorily required to have officers and directors, the LLC can be easily managed by its owners or third-party managers.

Another really great benefit of an LLC is that the IRS treats them favorably. The IRS classifies a real estate holding company with one owner as a “disregarded entity.” Income and capital gains from the LLC pass through directly to the owner, who would only have to pay taxes as an individual.

“Here’s a great way to think about an LLC: A Limited Liability Company is the second line of defense after insurance.

Using an LLC is like building a fortress around your property.” your stocks, bonds and cash; any business you or your spouse own; and your retirement accounts.

While real estate is a great way to create wealth and passive income, it does come with a ton of strings attached.

Benefits of LLCs

A better way to own rental income property is to transfer ownership to a Limited Liability Company (LLC). Having an LLC protects your personal assets from the claims of creditors and also allows for flexible profit distribution among members.

One of the main reasons to utilize an LLC is for the protection it provides against a legal attack on your assets. Creditors cannot typically make a claim on a property if it is held in an LLC. However, if the property is not held in a LLC, then an injury claim from a tenant or the guest of a tenant could lead to an attack on the personal assets of the owner.

For example: an owner has a rental property that is occupied by a couple. They have a party and one of their guests falls down a flight of stairs and ends up in the hospital. The guest sues the owner for his injuries. If the guest successfully wins the claim against the owner, any judgment in excess of the liability insurance can be satisfied with the owner’s personal assets.

Another advantage of owning property in a LLC is privacy.

The internet has made it much easier to find out where people live, how many kids they have and what they own. If you get sued, one of the first actions an aggressive plaintiff attorney will take is a detailed information search on you. If you own property in your own name or the name of your family trust, then you will surface in searches of public records. The attorney will see from the outset that you own a property and are an attractive lawsuit target.

However, a public record search of assets held in your name will not list your Limited Liability Company. The LLC affords you privacy from public record searches. All of us want privacy.

The formation of an LLC for the purpose of holding investment real estate has estate planning advantages as well. It allows for the transfer of ownership in the property in a more efficient manner than if personally owned. Many property owners want to leave property to their children. For real estate not held in an LLC this process can require many trips to the county courthouse to update deeds that will require changes every time percentages of ownership change. In cases where real estate is owned in an LLC, the owner-members can simply issue membership certificates to the child and no changes need be made to the deed with the county.

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Is Insurance Enough?

Now, you may be thinking that you are protected from a lawsuit because you have boatloads of insurance in place. This line of thought can get you hurt badly by a lawsuit.

Insurance is a great first line of defense. But it is not the endall be-all. Have you read your insurance policy lately? Probably not because it is sixty pages long. The policy lays out in detail what it will NOT cover, so it’s a good idea to understand the limitations of your insurance.

Also, if someone is going to sue you they don’t have any idea what your insurance limits are. They are going to sue you for the most amount of money they can get. So what if they win a judgement against you for $3 million dollars and your insurance is for $2 million dollars? If your insurance pays out the $2 million, where is the additional $1 million coming from?

You! If you don’t have a million bucks sitting around to satisfy the judgement, then your rental property and other assets are exposed. It’s not a pretty situation.

Here’s a great way to think about an LLC: A Limited Liability Company is the second line of defense after insurance. Using an LLC is like building a fortress around your property. Back when kings and queens ruled the earth, families with the gold did not place their assets in the town square at the center of the village. Why? Because the marauding army would attack the village and simply grab the gold and ride off. The wealthy families built castles to protect their gold. Then they dug a moat around the castle and filled the moat with alligators. This was asset protection. Even back then they recognized the need for proper asset protection planning.

Finally, life is full of curveballs and we can get hit at any time. Proper asset protection planning has to be done BEFORE you are involved in a lawsuit. You must put your asset protection in place when the seas are calm. The courts will see through any attempt to protect your property AFTER you are involved in a legal matter. RH The information contained in this article is general in nature. Consult an attorney or professional for specific advice. Harry Barth is the founder and senior managing partner of the asset protection and estate planning firm BarthCalderon, LLP. In addition to his law degree, Harry holds 12 advanced planning degrees including a Masters in Financial Services, an MBA in Financial Planning and the CFP designation. Questions? Contact Paul Hitchcock at (714) 704-4828 ext. 113 or Paul@barthattorneys.com.

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FEATURE

What’s Next?

How the real estate market could be impacted

by Trump’s presidency. BY TERRY ALLEN , CFP®AWMA SM

14 RENTAL HOUSING | FEBRUARY 2017 PHOTO: CRAIG TOOCHECK

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M

any are wondering what the election of real estate mogul turned most powerful man in the world will mean to the real estate market. While much of what we’ll discuss is still in the “proposal stages” we do know that our new president has been very forthcoming about his intent to limit the federal government’s role in the markets in general, while promising creation of jobs and GDP growth.

President Trump started his career in real estate. His father was a real estate developer, and Trump has made a fortune building or licensing his name to luxury condominiums, hotels and casinos. How will that experience enable him to help the middle class, which faces a lack of affordable housing and rising prices? How will his plans affect home buyers, real estate investors and rental property owners?

Impact on Homebuyers

In the short term, the shock of the Trump victory will be both a boon and a drag on the confidence of the American homebuyer, according to Ralph McLaughlin, chief economist with Trulia.com, a San Francisco-based real estate research site. McLaughlin is quoted as saying “there will be a short term impact on the so-called “Costly Coasts” dominated by upscale liberals, and the “Bargain Belt” of more blue-collar housing markets.1 Home buyers in economically healthy blue states will likely be rattled and more hesitant about the future of the U.S. economy, while in economically stagnant red states, buyers will likely feel a surge of confidence that could bolster demand. The question remains; even with this surge of confidence, who can afford the sky high housing prices?

Impact on the Housing Market

In Trump’s acceptance speech, given early in the morning of November 9th, he promised dramatic new investments in infrastructure, sounding to many, like an old school Democrat.

If these investments are made, this could boost demand for housing in the way giant depression-era Works Progress Administration projects like the Golden Gate Bridge and Hoover Dam created relocation opportunities for skilled workers.

Trump also promised that “we are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools and hospitals. We’re going to rebuild our infrastructure and we will put millions of our people to work as we rebuild it.”

If Trump is successful in launching these massive rebuilding programs in inner cities and across the country, the housing market could soar. In addition to the creation of new jobs, conceivably giving a larger number of people more opportunity

to enter the housing market, Trump has also promised to cut taxes, which could in theory, leave buyers with more money to spend on home ownership.

Impact on the Economy

The combination of tax cuts and government spending will no doubt provide a short term boost to the economy. Inflation will likely kick a bit higher from faster GDP growth and that will lead to moderately higher interest rates. If the higher GDP growth can be sustained, and arises out of higher productivity, then inflation will be manageable. Moreover, more jobs will mean more tax revenue, which may lessen the budget deficit.

The economy has already seen a bump since the election, not only in the stock markets, but in U.S. construction spending, which rose more than expected in November, reaching its highest level in over 10 years. The commerce department reported that construction spending increased 0.9 percent to $1.18 trillion, the highest level since April 2006. Bloomberg also reports that consumer confidence is- at a 12-year high, boosted by gains in both private and public sector investment.2

Lending

There could also be a move away from stringent mortgage underwriting to more normal lending. Credit is still tight for mortgages, as evidenced by high credit scores of those who are getting approved for loans. An important reason for overly conservative lending is due to the exposure of random lawsuits by the government on lending institutions in recent years. To the degree that the Trump administration makes it very clear as to what is and what is not an infraction, then more mortgages will be provided to consumers.

Should the Trump administration, like the Obama administration before him, create an environment of “we will sue you” then the lending institutions will retrench and shut off mortgage access to many consumers.3

Construction

There could also be less regulatory land use and zoning burden for home construction, and thereby lower the cost of building.

In recent years, prices on new home construction have been much higher than existing home prices. Homebuilders say that is due to all the extra cost of regulation rather than the higher cost of lumber, cement and worker wages.

President Obama’s economists, in fact, wrote a white paper on the topic of lifting this burden. President Trump will likely try to move on this issue—though jurisdictional issues of federal versus local will be contested, especially in highly overregulated California.4

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“Unfortunately, no one has developed a crystal ball to see into the future of residential real estate under our new president. It doesn’t look like demand from aspiring home buyers will taper off any time soon, and with the price of homes still at record-high levels, many prospective home buyers will remain renters for the foreseeable future.”

Tax Reform

One of Trump’s key campaign issues, and a significant part of his 100 day plan, is tax reform. How will this affect the real estate market? As we mentioned earlier, tax cuts, in theory, put more money in the pockets of the American consumer. This provides an economic stimulus which hopefully carries into the real estate market. Trump’s goal is to simplify the U.S. Tax code which is said to be thicker than the Bible, but without any of the good news.4 One particular aspect of the tax code of note, with President Trump, will be about commercial real estate depreciation.

That is because President Trump has said he used this depreciation to not pay any new taxes. Attention could be paid to this depreciation method. In days past, many high income professionals bought real estate at the recommendation of their tax advisors to lower their tax obligation. But in 1986, a new tax code prevented these “passive losses” of depreciation. It initially also tried to limit depreciation to real estate investors who are active in the real estate business. That would have been the equivalent to not being able to depreciate expensive medical equipment by doctors in their business. That is why the National Association of Realtors made it known that depreciation should be allowed as an “active loss” for those who practice real estate as their profession.

Many Are Pessimistic

Not everyone is optimistic, however. According to Bob Edelstein, co-chair of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley “the heart of Republican support – blue-collar, middle aged workers, are the people who will be affected by Trump the most. Under Trump, it may be harder to get mortgages, and those that will be available will be less advantageous.5 Edelstein’s pessimism is due to the threats made by the Republican Party to do away with Fannie Mae and Freddie Mac, as well as repeal, or at least limit Dodd-Frank, the Wall Street Reform and 16 RENTAL HOUSING

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Consumer Protection Act. Republicans have also mentioned that the Consumer Financial Protection Bureau (CFPB) could be subject to congressional appropriation. This Bureau was designed to protect consumers against predatory financial services companies, including those providing mortgages. DoddFrank and CFPB are designed to ensure financial markets are kept in check and act fairly, says Edelstein.5 However, many take the opposite point of view and argue that over-reaching government intervention in any market hinders efficiency and limits activity.

The Rental Market

Unfortunately, no one has developed a crystal ball to see into the future of residential real estate under our new president. It doesn’t look like demand from aspiring home buyers will taper off any time soon, and with the price of homes still at record-high levels, many prospective home buyers will remain renters for the foreseeable future. Many cities have been implementing rent control amid the ever increasing complaints of unaffordable housing in the Bay Area. Even though some rents have increased, property owner’s bottom lines have not necessarily increased due to increased regulation, maintenance expense and other property ownership expenses in the Bay Area.

The rental picture is complex. There is more to it than the upward trajectory of monthly rental rates. Many property owners operate in the red for years on end. After paying the mortgage, taxes, utilities, fees and maintenance, in addition to ongoing property improvements, profits are slim for many.

But, one thing we do know is that more and more people are turning to renting, either by necessity, deterred from buying by prohibitive homeownership costs, or by choice, as renting is more often associated with a flexible lifestyle. Developers are determined to capitalize on this growing demand, as evidenced by the skylines filled with construction cranes across the Bay. While new construction can be viewed as a positive economic indicator, not all renters can afford to rent “new,” especially in the Bay Area. This bodes well for rental property owners with units to satisfy increasing demand, as long as local politicians do not handcuff owners with impossible eviction laws and burdensome rent control restrictions. Many East Bay cities are moving to enact rent control measures, which according to the State Legislative Analyst’s office, will not increase the supply of housing, and in fact would likely discourage new construction.6 Membership in EBRHA is the best way to ensure you are on the front lines of fighting onerous and harmful policies that hurt the small property owner.

A Favorable Climate for Property Owners?

In a perfect world, job growth, plus positive tax reform, plus less restrictive lending practices should equal a favorable climate

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UPCOMING WORKSHOPS New Tax Laws for Rental Property Owners D ATE & TIME

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for property owners, but we all know that Bay Area rental property ownership is more problematic than in most parts of the country. The optimist in me thinks a robust economy will go a long way in forcing local jurisdictions to come up with plans to provide more rental units to keep up with housing demand, but not on the backs of small rental property owners. So, while a Trump economic boom could impact us favorably, on an individual level, time will tell how that translates to our role of small property owners. Let’s continue to support EBRHA in their efforts to educate and advocate on our behalf, and work toward positive change in the intricate web of local rules and regulations. RH This article is not meant to be a political endorsement of any kind by EBRHA.

Understanding The New Capital Improvement Process D ATE & TIME

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TO REGISTER, GO TO EBRHA.COM/EVENTS OR CALL 510-893-9873. PRE-REGISTRATION REQUIRED 18 RENTAL HOUSING

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“What Donald Trumps’s Election Could Mean for Home Prices”, Daniel Goldstein, 11/14/16, MarketWatch 2.

“U.S. Construction Spending Hits More than 10 Year High in November”, Berkeley Lovelace and Associated Press, contributors, 1/3/2017, CNBC 3.

“U.S. Sues 17 Banks Over Mortgage Losses”, Philip Van Dorn, 9/2/11, TheStreet 4.

“How Trump’s Presidency Could Impact Real Estate”, Lawrence Yun, 11/10/2016, Forbes 5.

“How President Trump Will Change the U.S. Housing Market”; Clare Trapasso, 11/9/16, Realtor.com 6.

“Editorial: Rent control exacerbates housing shortage”; East Bay Times Editorial, 11/2/2016, East Bay Times 1.

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FEATURE

Hidden Records What property owners need to know about California’s new unlawful detainer masking law. BY RON KINGSTON

R

ental property owners rely on accurate eviction reports and records to properly screen tenant applicants. All owners want good tenants who pay rent on time—it makes good business sense and reduces the probability of future problems. Finding out whether a prospective tenant has a history of evictions and rent defaults, therefore, is vital to making informed and sound rental housing decisions. One of the most reliable sources of eviction records is made available on credit and other tenant screening reports, which document information from unlawful detainer (UD) court filings. Starting January 1, 2017, however, access to those court filings and records will be substantially restricted. This article explains the changes in law and how rental property owners and managers should adjust their screening and UD filing practices.

Unlawful Detainer Process Overview hen a tenant fails to pay rent, the property owner W

may seek recovery of possession. The eviction proceedings begin by serving the tenant with a three-day pay or quit notice, followed by then filing an unlawful detainer action (also referred to as a “complaint”) against the tenant if he or she fails to pay or quit. The complaint can be for possession only, or for possession and restitution for unpaid rent to the date of filing.

Owners often elect to file for possession only. Once the complaint is filed, a tenant has five days to respond to the complaint (which can balloon to 15 days upon a proper motion and good cause) by filing an “answer,” which allows a tenant to deny the allegations against him or her, and assert an assortment of affirmative defenses to the complaint. If an answer is filed by a tenant, the court schedules a trial within approximately 20 days of receiving the property owner’s request for a trial date. If the UD action goes to trial, each side presents their argument, and then the judge or jury determines who prevails. The vast majority of UD actions is for nonpayment of rent but the same process is available where the tenant breaches a material term of a lease.

UD actions rarely go to trial. Where there is no trial, the matter is resolved in one of the following ways: a) Tenant fails to answer the complaint but chooses to vacate the premises on his or her own, or pursuant to an agreement; b) Tenant fails to answer and fails to vacate the premises—property owner then applies for and is granted a default judgment against the tenant for possession of the unit, after which local sheriff evicts the tenant by force; c) Tenant submits an answer, and then settles (stipu-

lated judgment) the case with the property owner prior to trial; d) Tenant submits an answer but fails to appear at trial—default is entered for a failure to appear and judgment is awarded to the owner against tenant, and if tenant refuses to vacate, sheriff evicts tenant by force.

When a tenant fails to provide an answer or appear at the scheduled trial, property owners have the option of requesting to have a “default” entered against the tenant. An “entry of default” has the legal effect of establishing the property owner as the prevailing party, while preventing the tenant from fighting a UD complaint any further. After an “entry of default” is issued, owners can request a “default judgment,” which represents the binding judgment of the court. Once a default judgment is issued a “writ of execution” can be issued, which can be provided to the local sheriff’s department to enforce the eviction. It should be noted, however, that with a proper legal excuse, a tenant can have the default “set-aside” or voided, and then continue to fight the case.

Owners can request an entry of default and default judgment directly to the court clerk if their UD action is for possession of the unit and they have not yet regained possession of the unit. The court clerk is empowered to grant the entry of default and default judgment for possession related matters. Any defaults for restitution of unpaid rent, however, must be made by the judge (not the court clerk), and requires the owner to prove his or her case through a written declaration and documentary evidence.

What Is California’s New Unlawful Detainer Masking Law?

Previously, when a UD complaint was filed by a property owner, the complaint was “masked” (commonly called “sealed”) which means hidden from public view, for the first 60 days before being automatically “unmasked,” or made public. The only records that were permanently masked were those in which the tenant-defendant prevailed in the UD action within the first 60 days after the initial filing of the complaint or where there was a stipulated agreement specifying the UD action was to be permanently masked. The burden was on the tenant to defeat the UD action or reach a settlement in order to keep their UD record sealed.

The unmasked records of tenants who lost at trial or because of a default, reflected the type of judgment that was issued. Where there was no prevailing party, for example because the owner filed a UD action for possession only, and the tenant subsequently vacated the property prior to a default judgment, the unmasked ebrha.com

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erty owners) to a UD action can gain access to a defendant’s (tenant) UD records for the purpose of utilizing those records at trial against that defendant. This change in law has no practical application beyond the trial setting, and only applies if a UD action actually goes to trial and the tenant actually has a UD record. Under the change in law, only parties to a UD action can gain access to the records, and then use it a trial. Moreover, gaining access to the records requires going through the discovery process, which can be costly and time consuming. Thus, because so few UDs actually go to trial, and the procedure for getting access to the records is costly and will delay resolution of the action, few property owners will benefit from the new rule.

“The Legislature chose to shift the burden to owners to prevail within 60 days or at trial to trigger publication of UD complaints. While the new approach solves problems for tenants, it creates new ones for rental property owners.” records reflected only that a UD action was filed against the tenant.

The system of automatically unmasking UD records after 60 days was beneficial to property owners because it ensured that tenants with eviction records would show up on credit and other paid tenant screening reports. Additionally, the prior system did not require owners to take additional legal steps to ensure the UD records would be made public.

Starting January 1, 2017, however, based on a new law signed by the Governor, UD complaints will no longer be automatically unsealed after 60 days. Instead, the burden will be on the rental property owner to obtain a favorable judgment in the action in order for records to be made public. Specifically, only UD actions in which the property owner obtains a judgment against the tenant within 60 days of filing the complaint or by prevailing at trial will be made public. All other records will be permanently masked. Prevailing within 60 days or at trial requires either a judgment by the court or jury in favor of the owner, or a default or default judgment in favor of the owner where that action resulted in a failure of the tenant to appear in court. Where there is no prevailing party, for example because a property owner ceased pursuing the case after obtaining possession, no UD records in the case, including the case filing, is made public.

Other notable changes in law include the following: 60-day masking extension: If a default or default judgment is “set aside” more than 60 days after a complaint has been filed, a new 60-day masking period begins from the date the default or default judgment is set aside. “Set aside” essentially means to overturn, annul, or negate a decision. When a judge sets aside a default or default judgment, the original default judgment becomes null and void and ceases to exist for all practical purposes. A judge will set aside a default or default judgment when a tenant has a legally justifiable excuse for failing to appear or failing to respond to a UD complaint. Justifiable excuses include attorney fault, mistake, inadvertence, surprise or excusable neglect. Otherwise in the circumstance of a tenant failing to appear in court and judgment is entered in favor of the property owner, tenant screening services will continue to report the civil action.

UD records accessible for trial purposes: Plaintiffs (prop22 RENTAL HOUSING

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Why the Change in UD Masking Law?

Tenant groups argued that the system for making UD information publicly available after 60 days unless a tenant prevailed within the first 60 days was unjust. They argued that many tenant screening businesses and services, which generate eviction history reports utilized by property owners, unfairly list only the names of parties to UD actions without any reference to the outcome of the case—even if the tenant prevailed after the initial 60-day period. Under the old system, therefore, a tenant could have prevailed in a UD action after 60 days, yet still had his or her name publicized to a tenant screening service simply for being named in a UD complaint. The fear was that some owners might assume that because a tenant was named in a UD action, the tenant was eventually evicted.

During debates on the issue, no evidence was brought forward showing that a significant number of innocent tenants were being denied housing after prevailing in a UD action. In reality, because so few tenants prevailed after 60 days, the odds of being named in an eviction report after prevailing was slim.

Moreover, the system worked, to an extent, because it ensured property owners could access reliable eviction records to better screen tenants.

Still, there is no question the old system was flawed, and changes were needed. Some argue that the old system could have been easily fixed by adopting a rule preventing publication of UD filings after 60 days if the action was active or ongoing. A rule could have also been adopted to double the initial masking period to 120 days before publicizing any complaint.

Instead, the Legislature chose to shift the burden to owners to prevail within 60 days or at trial to trigger publication of UD complaints. While the new approach solves problems for tenants, it creates new ones for rental property owners.

What is the Practical Effect of the New Permanent Masking Law?

Under the new law, UD court filings in which there is no prevailing party will remain hidden from view. As noted

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ers. Therefore, because the new law requires owners to legally prevail in their UD actions in order for records to be published, owners must take care to follow their UD actions all the way through the process. The reliability, accessibility, and accuracy of eviction records depend upon all owners seeing their UD complaints through to completion.

1. Obtain a default against the tenant: The easiest way to prevail is to obtain a default or default judgment against the tenant. Owners can obtain a default against a tenant whenever a tenant fails to respond to a UD complaint within the required timeframe, or fails to appear in court on a specified date. Generally, the requirements for obtaining a default in action for possession are as follows: a.) File a request with the court clerk for an “Entry of Default” against the tenant. Filing the request requires filling out paperwork at the courthouse and submitting it to the clerk; b.) The clerk will read the request, and if properly filled out and the action qualifies for a default, the clerk will enter the default against the tenant. Court clerks are empowered to enter defaults against tenants.

Once a default in a possession case is entered against a tenant, the owner legally prevails, subject only to a tenant’s request to set aside the default. The owner can then request a default judgment from the clerk and obtain a writ of execution to enforce the judgment. As previously noted, however, in an action for possession, if possession of the unit is regained prior to a default request, a court or clerk will not enter a default.

2. Seek restitution for unpaid rent: Alternatively, owners should consider filing a UD action for possession and restitution for unpaid rent. If possession is regained, but the tenant has not paid back the owed rent, and subsequently fails to answer the complaint or fails to appear at trial, a default could be entered.

Default judgments for unpaid rent, however, can only by issued by a judge. The process can be expensive, formal, and time consuming.

Alternatively, owners have the option of seeking restitution through the local small claims court. The process is easier and less expensive. Additionally, once a small claims court issues an order for restitution, the record will be made public on the credit reports of that tenant. It should be noted, however, that going through the small claims process requires serving the tenant wherever he or she is located. If the former tenant has relocated to an undisclosed address, it goes without saying that the owner will not be able to serve the tenant.

Alternatively, owners can hire debt collectors for a nominal initial fee to track down the tenant and request payment.

Debt collectors often take a third of what ever they collect. The important reason owners should consider using a debt collector is that they are effective at tracking tenants down, and the record of debt gets reported to the credit bureaus. With the new masking law in effect, it will be harder and harder to obtain accurate records of unpaid rent. Debt collector services may be

“Moreover, the new law actually incentivizes tenants to drag out unlawful detainer proceedings beyond 60 days.

Through motions and other legal tactics, unlawful detainer proceedings can be delayed to allow tenants to get beyond that 60-day threshold to avoid publication.” previously, owners often only file UD actions requesting possession only. If possession is gained prior to a judgment or default judgment, even if the tenant never paid the rent that was owed, there is no prevailing party, and no record will be made public. Under the old rule, however, even if possession was gained prior to a judgment, a minimal record naming the tenant as a defendant in the UD action was made public. That record was significant because in most cases, even if possession was regained, the tenant usually never paid the rent that was owed.

The record put future owners on notice.

Another scenario that may lead to legitimate records being suppressed is when a default judgment is requested and entered after 60 days but before trial. If a tenant fails to respond to a UD complaint, and the plaintiff-owner waits more than 60 days to request a default judgment, the record will not be made public. This scenario can occur when an owner privately gives a tenant more time to pay. Under the new law, a tenant can fail to pay rent and fail to prevail in court and still be able to walk away without an eviction record. To avoid a situation like this, property owners are advised not to wait more than 60 days to request a default.

Moreover, the new law actually incentivizes tenants to drag out UD proceedings beyond 60 days. Through motions and other legal tactics, UD proceedings can be delayed to allow tenants to get beyond that 60-day threshold to avoid publication.

Because all tenants have a direct interest in suppressing negative information about prior evictions, it is not farfetched to believe that pushing UD proceedings out 60 days will become the new norm, which in turn will result in few if any UD history reports being generated. In some counties, cases already take more than 60 days to resolve because the attorneys for the defendants are able to make discovery and continuance requests.

What Steps Should Owners Take To Ensure UD Filings Are Made Public?

Because all rental property owners rely on accurate UD records in their efforts to properly screen tenants, all owners have a stake in ensuring that valid UD complaint records are accessible by the public, tenant screening services, and other own24 RENTAL HOUSING

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of one the surest ways to ensure a public record is made.

3. Object to tenant delay tactics: The new law incentivizes tenants to delay UD proceedings for 60 days because it requires owners to prevail within 60 days or at trial in order for court records to be published. If the tenant can push the proceedings out 61 days, he or she can be assured no record of the UD complaint ever sees the light of day. It is incumbent upon the owners, therefore, to notify their attorneys and the court if it appears that the tenant is attempting to delay the proceeding in order to benefit from the delay. Raising the issue in court will help inform courts about the new law, its loopholes, and the delay tactics used to exploit the law.

How Should Rental Property Owners Screen Prospective Tenants Starting in 2017?

Without reliable court records, owners must carefully gather their own facts

about their applicants through questionnaires and requests for documentation.

The following are a few ideas that can help owners better gauge their prospective tenant’s eviction and payment history: Credit reports: It goes without saying that all owners should obtain credit reports on all prospective tenants. Without reliable eviction records, the information on credit reports become ever more valuable and significant. Owners should look for non-payment, late payment, and slow-pay history. Pervasive questionable credit history should be investigated further by directly asking the applicant for clarification about any late payments that show up on credit reports.

Utility bills: Owners may want to consider asking applicants for utility bill records from the past 6-12 months.

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Contact Bishwendu K. Paul, S.E., M. Eng. UC Berkeley Alumni Structural Lic. No. S003093

(510) 601-1065 (415) 835-6754 26 RENTAL HOUSING

bk@esiengineers.com www.esiengineers.com | FEBRUARY 2017 |

ebrha.com

utility bills and the late payment of rent.

Record of rent payment: Owners may also consider asking prospective tenants for a record of past rent payments. This may include check records and/or stubs, and bank statements.

Direct Questioning: Another approach is to create a questionnaire that specifically asks the applicant to provide information about prior evictions and payment history. Owners may also want to consider asking the applicant whether he or she has ever been named in a civil lawsuit, and if so, why, when and where.

Questions about lawsuits can help an owner sniff out prior unlawful detainers. Moreover, failing to answer honestly could be adopted in the lease contract as a material breach of the lease. Note, however, that in rent control and just cause eviction jurisdictions, lying on an application may not be a qualifying reason to evict a tenant.

More Work for Property Owners

Overall, it is important for owners to recognize that significant statutory changes limiting access to UD court records are coming. Many legitimate UD complaints, which were once accessible by property owners, credit bureaus, and tenant screening services, will cease to be available. Unless owners seek to legally prevail in court, which requires filing for default and default judgments despite obtaining possession, eviction records will be unreliable, and incomplete.

In light of the changing nature of UD records, owners may want to consider utilizing and scrutinizing other sources to verify a tenant applicant’s eviction and payment history. These sources include credit reports, utility bills, bank statements, rental payment records, and questionnaires. RH

The information provided herein is intended to provide general guidance and awareness on state laws and regulations and shall not be construed in any way as a substitute for individual legal advice. Those that require specific advice should consult an attorney. Ron Kingston is the EBRHA state lobbyist and president of the California Political Consulting Group. He can be reached at 916-447-7229 or ron@calpcg.com.

UPDATED CURRICULUM!

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• Systematic employee evaluation • Employment regulations and record keeping • Analysis of the property’s financial operations with corrective actions for underperformance • Monitoring of property performance to achieve the owner’s investment goals • Accounting principles and practices

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COLUMN

government affairs

other asset classes. To this end, we are pushing lawmakers to ensure the following priorities are reflected in any bill that moves forward.

Tax reform must protect “flowthrough entities” (e.g., LLCs, partnerships, S Corporations, etc.), which are the dominant business structure in our industry. Under this model, a firm’s earnings are passed through to the partners who pay taxes on their individual tax returns.

Accordingly, Congress must not reduce corporate tax rates financed by forcing flow-through entities to pay higher taxes Updates from NAA’s Sr. Vice President by subjecting them to a corporate-level of Government Affairs. BY GREG BROWN tax or by denying credits and deductions.

It is also a priority for the apartment ax reform is front and center at a maximum rate of 16.5%; replace housing industry to maintain “like-kind on the congressional agenda, depreciation with immediate expensing exchanges” where property owners can and there is a real chance it will of all investment except for land; elimidefer tax on the gain on sale of an asset become law this year. The last comprenate the deduction for business interest; if, instead of selling their property, they hensive tax reform legislation was the eliminate like-kind exchanges; eliminate exchange it for another comparable Tax Reform Act of 1986 (TRA 1986) the Low-Income Housing Tax Credit; property. These rules encourage property signed into law 30 years ago by Presiand repeal the estate tax while retaining owners to remain invested in the real dent Ronald Reagan. We all remember stepped-up basis for inherited assets. estate market. Such an important tool how that bill devastated the industry for It is important to note that while for investment must be maintained in years, so it is imperative that we engage the blueprint appears to eliminate the a reformed tax code. Notably, with the with policymakers to ensure a more LIHTC, there are good indications it exception of land, the expensing proposal positive outcome. may be put back into the House GOP in the House Republican Blueprint proIn the years since TRA 1986, legislaproposal. vides for de facto like-kind exchanges. tion has changed the tax code—mainly As the most developed tax reform Tax reform should also take care to at the margins—focusing on rate product in circulation at the moment, preserve investment incentives. Borrowing changes and other targeted provisions the Blueprint is the centerpiece of conis a central part of how apartment houswhile comprehensive reform has eluded versation around tax reform. However, ing is financed (a typical development policymakers. The election of Donit is not yet legislation, and there could project could be financed with 1/3 capital ald Trump and continued Republican be significant changes made before an and 2/3 debt and the tax code has long control of the Congress has changed the actual bill is introduced. Moreover, the provided a full deduction for interest). outlook for tax reform. One-party rule White House and Senate still need to Indeed, without business interest deductwhere reform is a priority for all of the flesh out their own proposals. There is ibility, the cost of debt financing would key players has increased the odds that much time to go before increase and shift many broad-based legislation can become law. a reform agreement is “The last comprereal estate business modAt this stage of the process, House reached, if at all, and we hensive tax reform els. This would inhibit Republicans are taking the lead on can expect the details of legislation was the development activity reform. While President Trump made a any agreement to change Tax Reform Act of at a time when we face number of proposals during the 2016 several times along the 1986 (TRA 1986) significant affordability campaign, it is House Republicans who way. signed into law 30 challenges. have put forward the most detailed For our part, the years ago by PresiPolicymakers should plan. Entitled “A Better Way Forward apartment housing indus- dent Ronald Reagan. also take care when for Tax Reform,” the House GOP try’s primary objective We all remember making changes to released a “blueprint” for reform last in reform is to support how that bill devascost recovery rules like summer, which is the starting point for legislation that promotes tated the industry depreciation so they their internal discussions. The blueprint economic growth and for years, so it is do not harm real estate would: reduce the top tax rate on LLCs, investment in rental hous- imperative that we investment. Apartpartnerships, S Corporations and other ing without unfairly burengage with policyment buildings are pass-thru entities to 25% from 39.6%; dening apartment owners makers to ensure a current depreciated on tax capital gains, dividends, and interest and renters relative to more positive outa 27.5-year schedule.

A Real Chance Looms for Tax Reform This Year

T

come.”

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MAISEL PROPERTY MANAGEMENT, Inc. While House Republicans are proposing to allow buildings to be immediately expensed, others have suggested extending the current-law depreciation period.

This would surely lead to reduced development and investment and ultimately undermine real estate values and stifle job creation.

Finally, protecting the Low-Income Housing Tax Credit (LIHTC) is a priority for the apartment housing industry. The LIHTC is the central vehicle producing housing for moderate- and low-income families. We are in a period of crisis in housing affordability and need stronger incentives like the LIHTC to effectively respond. This program must remain a vital part of the strategy to address our nation’s housing needs.

You will notice some overlap between what is being proposed, at least in the House GOP Blueprint, and the apartment housing industry’s priorities. It is important to remember that policymakers are truly looking to reshape how taxes are levied in this country and that perhaps what they propose could effectively replace what is in the tax code now and keep the apartment housing industry whole. We remain open minded on this point as we continue to press for our top priorities and evaluate in detail what tax reform proposals mean for our business.

Every member of the apartment housing industry must be engaged in the advocacy campaign on tax reform.

That means contacting your members of Congress and communicating our message. Changes to the tax code will impact all of us, and it is our responsibility to ensure whatever reform is passed does not harm our ability to provide housing to one-third of the nation. To learn more about how you can get involved in shaping the debate, contact Peter Fromknecht at pfromknecht@naahq.org and take our Advocacy Interview at http://re.spon.se/ OTmUtG to see who you might know on Capitol Hill! Your relationships with lawmakers and your willingness to act on those relationships will make the difference between success and failure on tax reform. RH Greg Brown is the Senior Vice President of Government Affairs with the National Apartment Association. He can be reached at 703-797-0615 or greg@naahq.org.

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UPCOMING EVENTS Oakland Rent Board Roundtable D ATE & TIME M ODERATOR

PRICE

TOPICS

MONDAY, FEBRUARY 13; 10:00 A.M. - 11:00 A.M. Jill Broadhurst, CCRM, EBRHA Free to members only An informal discussion on Oakland rent board hearings

Membership Meeting D ATE & TIME SATURDAY, FEBRUARY 18; 10:00 A.M. - NOON

PRICE Free to Members Only

TOPICS Legal Q&A — Speaker TBD

Financial Planning — Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors

EBRHA Office Closed

DATE MONDAY, FEBRUARY 20

Public Affairs Meeting D ATE & TIME M ODERATOR

PRICE

TOPICS

THURSDAY, FEBRUARY 23; 10:00 A.M. - 11:00 A.M. Rick Philips, EBRHA Board Member Free to members only Prioritize local housing issues and tackle them head on

Unless noted, all events are held at:

3664 Grand Avenue • Suite B Oakland, CA 94610 TO REGISTER, GO TO EBRHA.COM/EVENTS OR CALL 510-893-9873. PRE-REGISTRATION REQUIRED ebrha.com

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COLUMN

esq. & a

Oil Spill What should an owner do when a tenant’s car is leaving behind oil stains? BY VARIOUS AUTHORS

be a sublet situation. In a sublet situation, the new tenant owes rent to the former tenant and the former tenant remains liable to the owner for lease obligations until the end of the lease term.

If you are in a month-to-month tenancy with the group, accepting rent from new persons would effectively relieve the former persons from rent obligations.

Each person would have a right to terminate their tenancy with a 30-day notice, unless otherwise agreed in writing.

Many owners start the tenancy with a written lease, which converts to a month-to-month after expiration of the original lease term. Hence, the month-tomonth tenancy above will apply, except for the terms of the original lease regarding Notice and Assignment will control.

Therefore, if you are going down this path, make sure Notice and Assignment provisions of the original lease are favorable to your desires. —MICHAEL SHEPHERD

Q

Three of my tenants have cars that leak oil and make stains on the cement floor of my parking lot.

I have asked them to get their cars fixed, and they have added drip pans under their cars, but it doesn’t completely solve the problem. I have a lease addendum that states that tenant vehicles must not leak oil. What are my options?

If you rent to a group of people, all of whom have signed the lease, can you require a new lease every time a new person comes in?

A

The short answer is “yes.” However, whether a new lease is required each time a new person moves in depends upon how they come in, or how you accept them. If the new person is stepping into the shoes of a person on the lease, then they could be taking under “assignment” and a new lease is not required. Most leases prohibit assignments without prior approval of the owner. If you do not approve of the assignment, you can execute a new lease with the new person.

If the lease is silent on the matter, then how you treat the new tenant will govern 30 RENTAL HOUSING

| FEBRUARY 2017 |

whether they have walked into the lease under assignment. If you accept payment The Oakland Just Cause Eviction from the new person as satisfaction of Ordinance permits an owner to the former person’s obligation for rent, you recover possession of a rental unit when have accepted the new person in place of the tenant has violated a lawful and matethe former, by what is known as “perforrial term of the tenancy. So when a rental mance.” agreement includes a provision prohibiting Unless the lease prohibits, you can a tenant from parking a car in the garage always give a written notice that you that leaks oil, the tenant may be subject are accepting the new person as having to eviction for violating this provision. taken over the former Here the tenants have person’s lease obliga“When a rental made some effort to pretions, or that you are not agreement includes vent the oil from leaking accepting an assignment a provision prohibonto the garage floor by and require a new lease iting a tenant from using a drip pan. Under from the new person. parking a car in the these circumstances, it If the new person garage that leaks may be best to approach intends to stay for a oil, the tenant may the tenants, inform them period shorter than the be subject to evicthat their drip pans are previous person’s comtion for violating this not solving the problem, mitment, then it would provision.” and remind them of the

ebrha.com

A

PHOTO: BRADLEY GORDON / CC BY 2.0

Q

applicable rental agreement provision and their obligation to comply with it.

Repairing the car would certainly solve the problem. There may be other ways to solve the problem that might be acceptable to the owner, such as using a garage floor mat underneath the cars to protect the garage floor.

If the tenants refuse or fail to promptly solve the problem, then the owner may consider serving the tenants with Notice to Cease and then a Three-Day Notice to Perform or Quit, if necessary, which may result in an eviction for violating a lawful term of the tenancy. —STEVEN C. WILLIAMS The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Michael Shepherd is an attorney with The Shepherd Law Firm and can be reached at 510-531-0129 or theshepherdlawgroup@netzero.net. Steve Williams is an attorney with Fried & Williams LLP and can be reached at 510-625-0100 or swilliams@friedwilliams.com

ASSISTING PROPERTY OWNERS WITH THEIR LEGAL NEEDS SINCE 1975.

Effective. Efficient. Economical.

510-839-2067 TheEvictors.com

GO SOLAR $0 DOWN! $750 credit for you, and $750 to support EBRHA.

Expertise and Representation on Rent Board Petitions, Hearings and Appeals info@rentboardmatters.com

Liz Hart

510-813-5440 ebrha.com

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community calendar EVENTS & CLASSES

february

march

TUESDAY, FEBRUARY 7 New Tax Laws for Rental Property Owners Presented by Jong H. Lee, The Lee Accountancy Group, Inc. Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

WEDNESDAY, MARCH 1 The Ins & Outs of The Section 8 Program Presented by Teela Carpenter, Oakland Housing Authority Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

WEDNESDAY, FEBRUARY 8 Understanding The New Capital Improvement Process Presented by Liz Hart, Rent Board Matters, Rent Board & Property Managment Consultant Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

TUESDAY, MARCH 7 Oakland Rent Board Changes and Your Property Presented by Jill Broadhurst, CCRM, EBRHA Members: Free; Non- Members: $69 2:00 p.m. - 3:30 p.m.

MONDAY, FEBRUARY 13 Oakland Rent Board Roundtable An informal discussion on rent board hearings Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.

THURSDAY, FEBRUARY 16 Rental Property Owner 101 (RPO 101) Presented by Jill Broadhurst, CCRM, EBRHA Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

SATURDAY, FEBRUARY 18 EBRHA Member Meeting • Financial/Estate Planning — Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors • Legal Q&A — Brent Kernan, Law Offices of Brent Kernan 10:00 a.m. - Noon MONDAY, FEBRUARY 20 EBRHA Office Closed THURSDAY, FEBRUARY 23 Public Affairs Meeting Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.

TUESDAY, FEBRUARY 28 Managing the Owner Move-in Process Presented by Daniel Bornstein, Bornstein Law Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

THURSDAY, MARCH 9 Oakland Rent Board Roundtable An informal discussion on rent board hearings Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.

TUESDAY, MARCH 14 The Eviction Process by City Presented by Alan Horwitz, The Law offices of Alan Horwitz Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

THURSDAY, MARCH 16 Rental Property Owner 101 (RPO 101) Presented by Jill Broadhurst, CCRM, EBRHA Members: Free; Non- Members: $69 2:00 p.m. - 3:30 p.m.

SATURDAY, MARCH 18 EBRHA Member Meeting • Latest Security Technologies — Amy Roither, Detect All Security & Fire • Legal Q&A — Clifford Fried, Fried & Williams LLP 10:00 a.m. - Noon MONDAY, MARCH 20 Small Property Owners Roundtable An informal discussion on management issues and solutions Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.

WEDNESDAY, MARCH 22 Optimizing Your Tenant Screening Process Presented by Dan Firestone, CIC Members: $39; Non- Members: $69 2:00 p.m. - 3:30 p.m.

No Refunds on no shows; Online advanced registration required! To register and pay, visit ebrha.com/calendar or call (510) 893-9873.

Unless noted, all classes and events are held at the EBRHA Education Center, 3664 Grand Ave., Suite B in Oakland.

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Oakland RENT ADJUSTMENT PROGRAM FEE

UPDATE: Annual fees are $68 per unit and are due March 1. Owners are allowed to pass through $34 to tenants.

BUSINESS TAXES & REGISTRATION

Registration fee is $60 and is due March 1. Tax is based on annual gross rental income at a rate of $13.95 per $1,000 of gross rental income. Tax renewal declarations are mailed at the beginning of the year. Online payments accepted at

www.ltss.oaklandnet.com LANDLORD PETITION FOR EXEMPTIONS

Claims covered include new construction, substantial rehabilitation, and single-family homes or condominiums.

ANNUAL ALLOWABLE RENT INCREASE

2016-17 (2.0%) A CPI increase of 2.0% becomes effective on July 1, 2016. Tenants may only receive one increase in any 12-month period, and the rent increase cannot take effect earlier than the tenant’s anniversary date.

In addition, California law requires that for tenancies receiving greater than a 10% increase, a 60-day notice is required; if the increase is 10% or less, a 30-day notice is required.

Owners can only impose “banked” rent increases equal to three times the current annual allowable rent increase rate. See schedule at right.

PERI OD

AM O U N T ( % )

JULY 1 ‘16 - JUNE 30 ‘17 . . . . . . . . . 2.0 JULY 1 ‘15 - JUNE 30 ‘16 . . . . . . . . . 1.7 JULY 1 ‘14 - JUNE 30 ‘15 . . . . . . . . . 1.9 JULY 1 ‘13 - JUNE 30 ‘14 . . . . . . . . . 2.1 JULY 1 ‘12 - JUNE 30 ‘13 . . . . . . . . . 3.0 JULY 1 ‘11 - JUNE 30 ‘12 . . . . . . . . . 2.0 JULY 1 ‘10 - JUNE 30 ‘11 . . . . . . . . . 2.7 JULY 1 ‘09 - JUNE 30 ‘10 . . . . . . . . . 0.7 JULY 1 ‘08 - JUNE 30 ‘09 . . . . . . . . . 3.2 JULY 1 ‘07 - JUNE 30 ‘08 . . . . . . . . . 3.3 MAY 1 ‘06 - JUNE 30 ‘07. . . . . . . . . . 3.3 MAY 1 ‘05 - MAY 30 ‘06 . . . . . . . . . . 1.9 Visit www.ebrha.com/members to see previous adjustments.

CAPITAL IMPROVEMENTS INCREASE FORMULA

FOR FURTHER INFORMATION CONTACT:

(70 % of Improvement Costs ÷ Number of Units)

Oakland Rent Board 250 Frank H. Ogawa Plaza, Ste. 5313 Oakland, CA, 94612 510.238.3721 | www.oaklandnet.com

60 months or 5 years REFER TO ORDINANCE FOR NOTICING, QUALIFICATIONS AND AMORTIZATION PERIODS. SEE USEFUL LIFE CHART ON CITY OF OAKLAND WEBSITE.

Berkeley RENT STABILIZATION BOARD FEES

Annual fees are $213 per unit and are due July 1. Owners are allowed to pass through $4 to tenants.

RATES OF ANNUAL PAYMENT OF SECURITY DEPOSIT INTEREST P E R I OD A MO UN T FEDERAL RESERVE RATES

DEC. 2014. . . . . . . . . . . . . . . . . . . . . N/A DEC. 2013. . . . . . . . . . . . . . . . . . . 0.3% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.5% DEC. 2011. . . . . 0.4% (CORRECTED 11/3/2011) DEC. 2010. . . . . . . . . . . . . . . . . . . 0.4% DEC. 2009. . . . . . . . . . . . . . . . . . . 1.1% DEC. 2008. . . . . . . . . . . . . . . . . . . 3.4% DEC. 2007. . . . . . . . . . . . . . . . . . . 5.3% DEC. 2006. . . . . . . . . . . . . . . . . . . 5.1% DEC. 2005. . . . . . . . . . . . . . . . . . . 3.4%

ANNUAL ALLOWABLE RENT INCREASE

2017 (1.8%) PERI OD AM O U N T

Beginning in 1998, adjustments are not allowed for the year following a tenant’s initial occupancy. To obtain the maximum amount for a specific address, please use the “Rent Ceiling Database” calculator on Berkeley’s Rent Board website.

Visit www.ebrha.com/members to see previous adjustments.

2016. . . . . . . . . . . . . . . . . . . . . . . . 1.5% 2015. . . . . . . . . . . . . . . . . . . . . . . . 2.0% 2014. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2013. . . . . . . . . . . . . . . . . . . . . . . . 1.7% 2012. . . . . . . . . . . . . . . . . . . . . . . . 1.6% 2011. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2010. . . . . . . . . . . . . . . . . . . . . . . . 0.1% 2009. . . . . . . . . . . . . . . . . . . . . . . . 2.7% 2008. . . . . . . . . . . . . . . . . . . . . . . . 2.2% 2007. . . . . . . . . . . . . . . . . . . . . . . . 2.6% 2006. . . . . . . . . . . . . . . . . . . . . . . . 0.7% 2005. . . . . . . . . . . . . . . . . . . . . . . . 0.9% 2004. . . . . . . . . . . . . . . . . . . 1.5%, + $3 (1% + $3 IF TENANCY CREATED AFTER JAN. 1999) *ADDITIONAL ADJUSTMENTS ARE ALLOWED IF AN OWNER PAID FOR ELECTRICITY OR HEAT.

BERKELEY RATES

FOR FURTHER INFORMATION CONTACT:

DEC. 2014. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2013. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.2% DEC. 2011. . . . . . . . . . . . . . . . . . . 0.3%

Berkeley Rent Board 2125 Milvia Street Berkeley, CA 94704 510.981.7368 | www.ci.berkeley.ca.us/rent ebrha.com

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vendor directory — CONTACTS, PRODUCTS & SERVICES Richards Law John Richards 925-231-8104 www.richards-legal.com The Evictors Alan J. Horwitz 510-839-2074 The Shepherd Law Group Michael Shepherd 510-531-0129 www.theshepherdlawgroup.com Zacks, Freedman & Patterson, PC Lisa Padilla 415-956-8100 www.zfplaw.com

ACCOUNTING & TAX

Collins, Mason & Company LLP Teresa Mason 510-891-9000 www.cmcaccountants.com The Lee Accountancy Group, Inc. Jong H. Lee, CPA 510-836-7400 jhlee@theleeaccountancy.com APPLIANCE SALES & PARTS

Appliance Parts Distributor Mike De Fazio 510-357-8200 www.apdappliance.com Appliance Warehouse of America David Jepsen 510-921-1071 www.appliancewhse.com

ATTORNEYS — LAND USE/CONDO CONVERSION

APPRAISERS

Access Appraisal: Apartment Specialists Joe Spallone, MAI 510-601-1466 www.accessappraisal.com Mark Watts Commercial Appraiser Mark A. Watts 415-990-0025 www.markwattscommercialappraisal.com ARCHITECTURE

InsideOut Design Pennell Phillips 510-655-1198 www.aboutinsideout.com ASSOCIATIONS

Law Offices of Bill Ford Bill Ford 415-306-7840 www.billfordlaw.com Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 www.jgutierrezlaw.com Richards Law John Richards 925-231-8104 www.richards-legal.com Zacks, Freedman & Patterson, PC Lisa Padilla 415-956-8100 www.zfplaw.com ATTORNEYS —

BOMA Oakland/East Bay REAL ESTATE/CORP. Julie Taylor, CAE Beckman Blair LLP 510-893-8780 Nancy Ly www.bomaoeb.org 415-871-0070 Oakland/Berkeley Association of Realtors www.beckmanblairllp.com Davina Lara Ericksen Arbuthnot 510-836-3000 Jason Mauck oaklandberkeleyaor.com 510-832-7770 Oakland Chamber of Commerce www.ericksenarbuthnot.com Barbara Leslie Fried & Williams LLP 510-874-4808 Clifford Fried www.oaklandchamber.com 510-625-0100 ATTORNEYS — EVICTIONS/PROPERTY www.friedwilliams.com OWNER DEFENSE Harding Legal Beckman Blair LLP Elva Harding Nancy Ly 415-967-7570 415-871-0070 www.edhlegal.com www.beckmanblairllp.com Jack Schwartz, Attorney at Law Bornstein Law Jack Schwartz Daniel Bornstein 650-863-5823 510-836-0110, x1007 jwsjr1220@comcast.net www.bornsteinandbornstein.com Law Offices of Bill Ford Ericksen Arbuthnot Bill Ford Jason Mauck 415-306-7840 510-832-7770 www.billfordlaw.com www.ericksenarbuthnot.com Law Offices of John Gutierrez Fried & Williams LLP John Gutierrez Clifford Fried 510-647-0600, x2 510-625-0100 www.jgutierrezlaw.com www.friedwilliams.com Miller Property Law Law Offices of Bill Ford Inga Miller Bill Ford 925-402-2192 415-306-7840 www.millerpropertylaw.com www.billfordlaw.com Richards Law Law Offices of Brent Kernan John Richards Brent Kernan 925-231-8104 510-712-2900 www.richards-legal.com bkernan@aol.com Zacks, Freedman & Patterson, PC Law Offices of Elaine Lee Lisa Padilla Elaine Lee 415-956-8100 510-848-9528 www.elaineleeattorney.com www.zfplaw.com 34 RENTAL HOUSING

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ebrha.com

AUTOMOTIVE

Ken Betts Towing Services Ayub Azam 510-532-5000 www.kenbettscompany.com BANKING/LENDING

Chase Commercial Josh Milnes 510-891-4545 josh.milnes@chase.com Chase Commercial Ted Levenson 415-945-5430 ted.levenson@chase.com First Foundation Bank Michelle Li 510-250-8133 www.ff-inc.com Luther Burbank Savings Larry Miller 925-627-2790 www.lutherburbanksavings.com Pacific Western Bank Marc Lipsett 510-332-6964 www.pacificwesternbank.com SF Fire Credit Union Herman White, Jr. 415-674-4808 www.sffirecu.org Torrey Pines Bank Dale Marie Golden 510-899-7536 dgolden@torreypinesbank.com BATHROOM/KITCHEN REMODELING & BUILDING SUPPLIES

American Bath Enterprises, Inc. Larry Arcadi 510-785-2600 www.americanbathind.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com Ashby Lumber Paul Heiser 510-843-4832 www.ashbylumber.com Bathfitter Ken Huggins 510-969-3905 khuggins@bathfitter.com D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 www.dwhamiltonconstruction.com Home Depot Allan Jocson 510-375-5237 www.homedepot.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Sincere Home Decor Hei Chan 510-835-9988 www.sincerehomedecor.com SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com

vendor directory CABINET DOOR RESURFACING

Northern Contours Charlene Hall 866-344-8132 www.northerncontours.com CARPET CLEANING

Cleaner Carpets Ron Russell 510-522-1344 cleanercarpet@juno.com CONCRETE

Mauri Concrete Construction Co. Marcelo Mauri 510-541-5260 www.mauriconcrete.com CONSTRUCTION

A-One Construction Eva Morrissey 510-347-5400 www.a-oneconstruction.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com City Construction Janet Aranda 800-799-0234 www.cityconstruction.us D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 www.dwhamiltonconstruction.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Servpro of Lafayette/Moraga/Orinda Jenny Villena 925-299-1323 servpro9542@sbcglobal.net SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com W. Charles Perry & Associates W. Charles Perry 650-638-9546 www.wcharlesperry.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com CONTRACTORS/RESTORATION

ARC Water Damage Nina Lauffer 510-223-1279 or 877-437-9225 (toll free) www.bayareafloodrepair.com Har-Bro Restoration Inc. Sonia Fuetsch 650-670-2364 www.harbro.com P.W. Stephens Environmental Jackie Mezeul 510-651-9506 www.pwsei.com Servpro of Lafayette/Moraga/Orinda Jenny Villena 925-299-1323 servpro9542@sbcglobal.net DOORS & GATES

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com

SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com

HEATING & AIR CONDITIONING

Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com San Francisco Heating and Cooling Pablo Richards 415-286-2540 sfheatingandcooling@yahoo.com

ELECTRIC VEHICLE CHARGING

NRG EVgo Mehr Kouhkan 310-954-2930 www.nrgevgo.com ELECTRICIANS

HOUSING SERVICES

Thomas Electric Co. (TEC) Thomas Hurtubise 510-814-9387 www.tecelectric.net

Hamilton Family Center – First Avenues Mayo Lunt 510-763-8540 www.hamiltonfamilycenter.org

ELEVATOR REPAIRS

HUMAN RESOURCES MANAGEMENT

Paramount Elevator Corp.

Mark Pipoly 510-835-0770 www.paramountelevator.com

Avitus Group Lance Harris 925-827-0680 www.avitusgroup.com

FINANCIAL PLANNING

INDOOR AIR QUALITY/ MOLD & ODOR REMOVAL

David White & Associates Miguel Delgado 925-277-2635 www.dwassociates.com Enhance Wealth Advisors Terry Allen, CFP®, AWMA SM 925-932-8609 info@enhancewa.com

Green Home Solutions Alameda (East Bay) Howard Oliver 510-666-6711 www.ghsnorcal.com INSPECTIONS

FIRE PROTECTION

SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com

Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com

INSURANCE

FLOOR COVERINGS

Bay Area Contract Carpets, Inc. Ken Scott 510-613-0300 www.bayareacontractcarpets.com GOVERNMENT AGENCIES

Housing Authority of the City of Alameda Mike Pucci 510-747-4325 www.alamedahsg.org Oakland Housing Authority Leased Housing 510-874-1500 www.oakha.org HANDYMAN SERVICES

APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com Halcyon Properties Roger Shane 510-847-7075 rbshane@aol.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Start to Finish Christopher Bailey 510-727-9128 cpmbailey@sbcglobal.net HAULING SERVICES

KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com

Bulloch Insurance Brokers, Inc. Curt Bulloch 925-640-0485 www.curtbulloch.com Commercial Coverage Insurance Paul Tradelius 415-436-9800 www.comcov.com Gordon Insurance Pamela Hutchins 877-877-7755 www.gordoninsurance.com The Greenspan Co./Adjusters Int’l.

Rich Hallock 866-331-4790 www.greenspan-ai.com Jain L. Williams - State Farm Insurance Jain L. Williams 510-530-3222 www.jainwilliams.com Kelly Lux – State Farm Insurance Kelly Lux 510-521-1222 Kelly.lux.gjcg@statefarm.com Ruth Stroup Insurance Agency Ruth Stroup 510-874-5700 www.stroupinsurance.com Yonas Hagos - Farmers Insurance Yonas Hagos 510-763-1030 www.farmersagent.com/yhagos INTERCOMS & ACCESS CONTROLS

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com INVESTMENT OPPORTUNITIES

Martinez Real Estate Investment Jose Martinez 510-769-0436 ebrha.com

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vendor directory Roto-Rooter Martin Alvarez 510-755-1262 sanactma@aol.com Water Heaters Only, Inc. Yana Carpenter 800-835-5946 www.waterheatersonly.com

LAUNDRY EQUIPMENT

CSC ServiceWorks Stacy Weaver 800-954-9000 Ext. 54313 www.cscsw.com Excalibur Laundries Richard Lisowski 510-872-1664 www.excaliburlaundries.com Innovative Coin Cheri Guffey 510-259-1494 www.innovativelaundry.com

PRIVATE INVESTIGATIONS

Sam Brown Investigations Sam Brown 415-621-5918 www.sambrowninvestigations.com PROCESS SERVER

LEAD, MOLD & PEST MANAGEMENT

Alameda County Healthy Homes Dept.

Larry Brooks 510-567-8282 or larry.brooks@acgov.org www.aclppp.org

PROPERTY MAINTENANCE

LIGHTING

A-One Construction Eva Morrissey 510-347-5400 www.a-oneconstruction.com APT Maintenance, Inc. Keith Berry 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles 925-292-8667 www.kmkcontracting.com

Eco Electric James Young 415-384-8526 www.ecopwr.net LITIGATION SUPPORT SERVICES

SpottCheck Consulting Susan Spott 510-816-1452 www.spottcheck.com LOCKSMITH EVICTION SERVICES

Golden Gate Locksmith Co Ralph Scott 510-654-2677 kgglocksmith@yahoo.com

PROPERTY MAINTENANCE SOFTWARE

SYNCrew John Cranston 415-968-1593 www.syncrew.com

MARKET RESEARCH

Axiometrics Inc. Amy Wolff Sorter 469-621-9669 asorter@axiometrics.com

PROPERTY MAINTENANCE SUPPLIES

Ferguson Enterprises, Inc. Jermane Griffin 916-752-7608 jermane.griffin@ferguson.com

PAINT

BEHR Paint Nick Mounts 415-416-0994 www.behr.com The Sherwin-Williams Co. Sean Callahan 925-932-3363 x134 www.sherwin-williams.com

PROPERTY MANAGEMENT

PEST & VECTOR CONTROL

Alameda Co. Vector Control Services Daniel Wilson 510-567-6826 daniel.wilson@acgov.org California American Exterminator Tami Stuparich 831-338-4800 www.calamericanext.com Terminix Robert Sater 510-489-8689 www.terminix.com PLUMBING/WATER HEATERS

Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 www.albertnahmanplumbing.com Fast Water Heater Company Michael Kirk 866-465-7442 www.fastwaterheater.com L. J. Kruse Co. Beth Baldwin 510-644-0260 www.ljkruse.com 36 RENTAL HOUSING

County Process Server Emily Jay 855-873-7837 www.norcalevictions.com

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Advent Properties, Inc. Benjamin Scott 510-289-1184 www.adventpropertiesinc.com Bay Property Group Daniel Bornstein 510-836-0110 www.baypropertygroup.com Beacon Properties Carlon Tanner 510-428-1864 www.beaconprop.com Canyon Pacific Management Tom Scripps 415-495-4739 www.canyonpacific.com Cedar Properties Jonathan Weldon 510-834-0782 www.cedarproperties.com Crane Management Kit Crane 510-918-2306 www.cranemanagment.net The Enterprise Company William McLetchie 510-444-0876 ERI Property Management Terrence Sims 510-883-7070 www.erirentals.com

ebrha.com

Lapham Company Jon M. Shahoian 510-594-7600 www.laphamcompany.com Marquardt Property Management Karen or Judi Marquardt 510-530-2050 www.mpmoakland.com Mynd Stacy Winship 510-306-4440 www.mynd.co OMM Inc./Mason Management Janice Mason 510-522-8074 www.ommhomes.com Premium Properties Sam Sorokin 510-594-0794 www.premiumpd.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com Shaw Properties Judy Shaw 510-665-4350 www.shawprop.com Sphinx Property Management Jon Goree 510-798-9299 www.sphinxpm.com Vision Property Management Michael Margado 510-926-4104 www.visionproperty.management Wellington Property Company Jillian Loh 510-338-0588 www.wellingtonpropertyco.com Woodminster Property Management Nicholas Drobocky 510-336-0202 www.woodminstermanagement.com PROPERTY MANAGEMENT SOFTWARE

NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com On-Site Janis Rossi 408-795-4167 www.on-site.com REAL ESTATE BROKERS & AGENTS

Advent Properties, Inc. Benjamin Scott 510-289-1184 www.adventpropertiesinc.com ARA Pacific Mike Colhoun 415-273-2177 www.arausa.com Better Homes Realty Rene Mendieta 510-388-4092 rmendieta@att.net Caldecott Properties Andy Read 510-594-2400 www.caldecott.com CBRE Keith Manson 510-874-1919 www.cbre.com

vendor directory Coldwell Banker – Apartment Specialist John Caronna 925-253-4648 www.eastbayIREA.com Coldwell Banker Commercial Henry Ohlmeyer 925-831-3390 www.coldwellbanker.com Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com Lapham Company Tsegab Assefa 510-594-0643 www.laphamcompany.com Litton/Fuller Group Luke Blacklidge 510-548-4801, x130 www.littonfullergroup.com Marcus & Millichap Eli Davidson 510-379-1280 eli.davidson@marcusmillichap.com Marcus & Millichap David Wolfe 510-379-1200 www.marcusmillichap.com NAI Northern California Grant Chappell 510-336-4721 www.naikilpatrick.com NAI Northern California Timothy Norkol 510-336-4724 tnorkol@nainorcal.com The Pinza Group Steven Pinza 510-725-4775 www.pinzagroup.com Property Counselors Link Corkery, Inc. Link Corkery 510-886-1212 www.pclclink.com Red Oak Realty Vanessa Bergmark 510-292-2000 vanessa@redoakrealty.com Seville Real Estate and Management Maya Clark 510-610-7699 www.homesbyseville.com Six Degrees Realty Stephanie Christmas 510-461-4663 www.stephaniechristmas.com Woodminster Real Estate Co Inc. Nicholas Drobocky 510-336-0202 www.woodminsterrealty.com RECYCLING/REUSE

Urban Ore Marylou Van 510-841-7283 www.urbanore.com RENT CONTROL CONSULTANTS

Bay Property Group Cristian Villarreal 510-474-7404 cristian@baypropertygroup.com Edrington & Associates Steven Edrington 510-749-4880 sedrington@msn.com

Liz Hart 510-813-5440 liz.hart1801@gmail.com

SUSTAINABLE ENERGY

Center for Sustainable Energy Alexandra Patey 858-244-1192 www.energycenter.org/smp

RENTAL SERVICES

Hamilton Properties Bay Area Delesha Hamilton 404-606-2141 www.hamiltonpropertiesbayarea.com Caldecott Properties Julie Keys 510-225-9244 www.caldecott.com

TENANT SCREENING SERVICE

Contemporary Information Corp. (CIC) Dan Firestone 888-232-3822 www.continfo.com TOWING SERVICE

Ken Betts Towing Services Ayub Azam 510-532-5000 www.kenbettscompany.com PPI Towing Stephanie Gipson 510-533-9600 www.ppitowing.net

ROOFERS

A-One Construction Eva Morrissey 510-347-5400 www.a-oneconstruction.com Fidelity Roof Company Doug Kellor 510-547-6330 www.fidelityroof.com Frank Fiala Roofing Frank Fiala 510-582-6929 www.ffialaroofing.com General Roofing Company Michael Wakerling 510-536-3356 www.generalroof.com

TREE SERVICE

Bartlett Tree Experts Tony DeMola 925-934-6306 www.bartlett.com Coastal Tree Service Hans Waller 510-693-4631 www.coastaltreeservice.com

SECURITY/SURVEILLANCE

TUB, TILE & COUNTERTOP REFINISHING

ADT Security Systems Bobby Augusto 925-222-8034 www.adt.com Detect All Security & Fire Amy Roither 510-835-4100 www.detectall.com R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 www.rsdoors.com SEISMIC CONSTRUCTION

Discovery Coatings Gargie Balarbar 415-971-8207 www.discoverycoatings.com UTILITY MANAGEMENT

NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com VETERANS SERVICE ORGANIZATION

B.A.S.S. Seismic Retrofit D.W. Hamilton 510-919-0046 www.bassseismicretrofit.com West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 www.wcpc-inc.com SEISMIC ENGINEERING

Earthquake & Structures, Inc. B.K. Paul 510-601-1065 www.esiengineers.com W. Charles Perry & Associates W. Charles Perry 650-638-9546 www.wcharlesperry.com SMOKE-FREE HOUSING

Alameda County Tobacco Control Coalition Tamiko Johnson 510-208-5916 tamiko.johnson@acgov.org SOLAR ENERGY

Eco Electric James Young 415-384-8526 www.ecopwr.net SUBMETERING

NWP Services Corporation Kyle Gambrell 949-253-3262 www.nwp.com

Swords to Plowshares Norman Thomas 510-844-7500 www.swords-to-plowshares.org WASTE & COMPOST COLLECTION

Bay Area Bin Support Nancy Fiame 888-920-BINS www.bayareabinsupport.com Bay Area Waste Services Peter Gella 510-788-0462 www.bawaste.com Junk King Contra Costa Krishna Vepa 925-954-5420 krishna.vepa@junk-king.com Waste Management Company Karen Stern 510-430-8509 www.wastemanagement.com WATER MANAGEMENT

HydroPoint Data Systems Dominique Perry 707-285-3233 www.hydropoint.com WINDOWS

SGK Home Solutions Vladmir Merabian 408-264-6964 www.sgkhomesolutions.com Urban Ore Marylou Van 510-841-7283 www.urbanore.com ebrha.com

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RENTAL HOUSING 37

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| FEBRUARY 2017 |

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