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the SHARING ECONOMY How Airbnb affects your rental properties


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East Bay Rental Housing Association

JUNE 2014

Volume XI, Number 6 June 2014 EBRHA OFFICE

360 22nd Street, Suite 240 Oakland, CA 94612 tel 510.893.9873 | fax 510.893.2906

Features & Columns






Evangelina Salazar | EBRHA OFFICERS



The Challenges of Proving Primary Residency

Rental Housing and the Sharing Economy BY RON KINGSTON




Terms of Tenancy


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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 © 2013 by EBRHA. All rights reserved.




A Job Well Done


Rental Housing (ISSN 1930-2002-Periodicals Postage Paid at Oakland, California. POSTMASTER: Send address changes to RENTAL HOUSING, 360 22nd Street, Suite 240, Oakland, CA 94612.

Events & Directory

Wayne C. Rowland

Tina Bocheff | 510.318.8303




EBRHA Working With City of Oakland to Develop Seismic Retrofit Ordinance


Mark Almeida, Bill Bagnell, Symon Chang, Reggie Hairston, Carmen Madden, Conor Murphy, Rick Philips, Sarah Picker, Judy Shaw, Abbe Sultan, Menna Tesfatsion, Mila Zelkha





EDITOR Tina Bocheff

Features & Columns





TREASURER Jack Schwartz

EBRHA Communications Committee Tina Bocheff, Jill Broadhurst, Esteban Cortez, Wayne C. Rowland

A Market Plateau?


2ND VICE PRESIDENT Luke Blacklidge


30 8

PRESIDENT Wayne C. Rowland

contributors GRANT CHAPPELL Grant Chappell is the vice president of NAI Northern California. Since 2005, Grant has focused on East Bay apartment opportunities for his clients. Grant also serves on the Board of CEI, the Center for Elders’ Independence, a local nonprofit providing PACE Care to seniors in Alameda County. In his free time, Grant enjoys skiing, golf, biking and traveling.

CLIFFORD FRIED Clifford Fried is a real estate attorney with expertise in landlord-tenant law, eviction and rent control matters in Oakland and the Bay Area. He and his law firm represent residential landlords only and are one of the largest such firm in Northern California. He has processed nearly 10,000 evictions in his career and has authored several books on evictions and hundreds of published articles on rental property ownership.

RON KINGSTON 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.

Jill Broadhurst, EBRHA’s Executive Director, is running for Oakland City Council This November Oakland needs a pragmatic, balanced voice to advocate for residents and businesses. Do you live in or have a rental property in District 4? Know someone who does? How can you help? • Consider having a house party in the summer • Put up a lawn sign on all your properties in the District or at its borders • Walk door-to-door or phonebank

MIYA KITAHARA Miya Kitahara provides multifamily outreach for StopWaste, a public agency that designs and implements environmental programs on behalf of Alameda County and its 14 cities. Programs include those that encourage recycling, purchasing of green materials, and energy efficiency. StopWaste is the short name for the Alameda County Waste Management Authority, which implements the Mandatory Recycling Ordinance, and two other boards of elected officials. Miya has a background in green management practices in local governments and small businesses, and holds an MBA in Sustainable Enterprise.


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Presented by the East Bay Rental Housing Association

Trade Expo Wednesday, October 22, 2014 3:00 - 7:00 p.m. Greek Orthodox Church 4700 Lincoln Ave., Oakland

n Workshops n Vendor Fair n Free Parking n Oktoberfest Reception

To exhibit, contact Tina Bocheff at 510-318-8303 or


news Housing Advocates in Alameda Seek Rent Control

Apartments and homes in the East Bay hills

EBRHA Working With City of Oakland to Develop Seismic Retrofit Ordinance FROM RICK PHILIPS, EBRHA BOARD MEMBER: Several EBRHA Board members are participating in a City of Oakland working group to develop an ordinance to encourage the seismic retrofit of the 1,400 most dangerous apartment buildings in Oakland. EBRHA continues to strongly support measures that encourage the seismic retrofit of rental housing structures in Oakland. A destructive earthquake can strike the Bay Area at any moment, so it is especially important to EBRHA that seismic retrofit upgrades be made as soon as possible. The Association will represent our members in developing a package of incentives, both financial and regulatory, to make it worthwhile for owners to strengthen their buildings. Money is critical, but other incentives are also important. EBRHA is looking at a list of concerns, from permit fees to rent increases, to low-interest loans. If you have experience in seismic retrofit work on your rental property in the Bay Area or have concerns about a new ordinance, please contact Rick Philips at


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Housing Advocates are asking the city of Alameda to consider new rules that could control the rise of rents. They’re asking city leaders to commit to creating rent stabilization rules in a new housing blueprint that’s going through a public approval process now. “Renters are the majority of people in this town, and those that are at risk of being not able to live here are the majority of the majority,” Laura Thomas, president of Renewed Hope housing advocates, told the Planning Board at a March 10 hearing. Thomas asked the board to include a commitment to creating a rent stabilization ordinance in the new housing element of the general plan. Board members offered mixed opinions of the proposal. Board president David Burton said that making housing more affordable in Alameda is “something we should look at,” though he noted that rent controls are a “complicated issue.” Board member Danya Alvarez-Morroni, a past president of the Alameda Association of Realtors, said she didn’t think she would support such a proposal. Thomas said city leaders she met with were open to the idea of including rent stabilization in the housing element; City Planner Andrew Thomas, who is overseeing its development, could not be reached for comment. Prompted by the story of an elderly couple forced out of their longtime home by a 67% rent increase, Renewed Hope assembled an ad hoc group of housing advocates and renters interested in doing something to protect renters as rents escalate. At an appeal hearing on the elderly couple’s rent increase, Vice Mayor Marilyn Ezzy Ashcraft said she’d consider imposing controls if the city continued to hear about similar cases, while Councilman Tony Daysog said he believed the case should prompt a discussion about rent control. In addition to Renewed Hope’s request for the rent stabilization ordinance, the ad hoc group is distributing a survey to gather data on the extent and impact of rent increases in Alameda; copies are being distributed around town, and the survey is available online. The group also plans to reach out to landlords, Thomas said. Renters comprise about 52 percent of Alameda’s residents, 2010 U.S. Census data show, and a recent city study determined the average

rent for a two-bedroom apartment here is $2,010. Credit: Michele Ellson, The Alamedan, April 2, 2014


Committee in Berkeley Seeks to Increase Business License Tax for Residential Property

Intensive Bed Bug Training

From Sid Lakireddy, President of the Berkeley Property Owners Association: The Robin Hood Commit-

tee for a Windfall Profits Tax is currently circulating a petition to place on the November ballot an initiative to increase the business license tax for residential properties in Berkeley. The proposed tax increase would be limited to owners of rent controlled property and will essentially triple your business license tax. During the discussion of the City Council — the end result of which was the rejection of this measure as a ballot initiative — Stephen Barton was one who purported to be a member. Dr. Barton has been an active proponent of more restrictive rent controls for many years, much of this time as a city employee. On the official filing, however, it was Lisa Stephens (the Chairperson of the Berkeley Rent Stabilization Board), and Jesse Townley and Katherine Harr, both also Rent Board Commissioners. Indeed, the very people who oversee the administration of the rent board are now circulating the petition for this very wrong tax. To get the measure on the ballot, they need to accumulate approximately 6,000 verified signatures and submit them to the clerk on or about May 10. To get the necessary number of certifiable voters to sign, they will need even more signatures. BPOA will not know if this measure is on the ballot until first week of June, but should know if enough signatures were submitted by late-May. I could write a dozen pages on this, but my brief commentary is that the ideology propounded by this ballot measure is the same kind of myopic ideology that resulted in no new construction for 20 years in Berkeley and thus contributed to a housing shortage. A smart progressive liberal should realize this and walk away as opposed to support this measure, otherwise they will create another housing shortage which will then take another 20 years to reverse. RH

DATE/TIME THURSDAY, JUNE 12, 1:00 P.M. - 4:00 P.M. DETAILS EBRHA is offering property owners and managers Bed Bug Control Training. Presented in partnership with Alameda County Vector Control. SPEAKERS n Daniel Wilson, Alameda County Vector Control n Clifford Fried, Fried & Williams LLP n Andrew Sutherland, Bay Area IPM Advisor UCCE PRICE Members: $79; Non-members: $99


FRIDAY, JUNE 13 TAILGATE — 5:00 P.M.; GAME — 7:05 P.M. Bay Area Contract Carpets, Inc. 747 Independent Road, Oakland Located one block from the Coliseum; Limited street parking available To reserve seats, send $15 deposit to: EBRHA Game Night, 360 22nd Street, Oakland CA 94612 Deposit is refunded upon arrival at Bay Area Contract Carpets. Limited seating, two tickets per member.

Women’s Auxiliary Luncheon DATE/TIME LOCATION PRICE

TUESDAY, JUNE 17, 11:45 A.M. Scott ’s Seafood Restaurant, 2 Broadway, Oakland Auxiliary members: $20; Guests: $35

Saturday Morning Coffee Hour DATE/TIME LOCATION TOPIC

SATURDAY, JUNE 21, 10:00 A.M. - 11:00 A.M. Ebrha Education Center 360 22 nd St., Suite 240, Oakland Parking Provided; Download parking pass at n Legal Q&A by Fried & Williams LLP

Online Registration at

Unless noted, all events are held at the:

Sign up, pay registration fees and receive reminders online.

EBRHA Education Center 360 22nd St., Suite 240 Oakland


JUNE 2014




green tips

It’s the Law

Food scrap recycling will be mandatory for many multifamily homes in the East Bay. BY MIYA KITAHARA


ood scraps and food-soiled paper currently account for more than a quarter of the material found in multifamily garbage carts in Alameda County. When placed in the garbage bin, this organic material is sent to landfills where it decays without air and releases methane, a powerful greenhouse gas. When correctly placed in the designated organics bin, however, food scraps and food soiled paper can be turned into compost that enriches soils in California farms and gardens. By providing separate collection bins for compostable materials and educating tenants on how to properly separate their trash, recyclables and compostables, property owners can help ensure compostable materials don’t go to waste. Starting July 1, 2014, multifamily residential properties with five or more units in several Alameda County cities will be required to provide adequate on-site collection service for the amount 10 RENTAL HOUSING

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of compostable materials they produce. The new requirements are part of the second phase of the Alameda County Waste Management Authority’s Mandatory Recycling Ordinance 201201, which first took effect in July of 2012. Phase 1 of the ordinance addresses the provision of sufficient recyclables collection and education to tenants. The Alameda County Waste Management Authority has found that most multifamily property owners are in compliance or were able to come into compliance with minimal changes. Every jurisdiction in Alameda County, except Dublin, has opted into Phase 1. The following Alameda County jurisdictions have fully opted-in to Phase 2 of the ordinance, which adds new requirements for recycling food scraps and food-soiled paper for commercial businesses and multifamily homes: Alameda, Albany, Berkeley, Emeryville, Livermore, Piedmont, and Unincorporated Alameda County not covered by the Castro Valley or Oro Loma Sanitary Districts. Other jurisdictions are expected to opt-in to Phase 2 in the future, including the City of Oakland, effective July 1, 2016. In order to comply with Phase 2, multifamily properties with five or more units must: 1) Provide containers and service of sufficient number and size for recyclable materials (including cardboard, newspaper, mixed recyclable paper, recyclable glass and metal food and beverage containers, PET (#1) and HDPE (#2) plastic bottles); 2) Provide

containers and service of sufficient number and size for organics (food scraps and food-soiled paper) and; 3) Provide information annually to employees, tenants, and contractors describing how to properly use the containers. Under Alameda County Waste Management Authority (ACWMA) Ordinance 2012-01, property owners and managers in fully opted-in jurisdictions have until the end of the year to complete the steps necessary to comply with the new Phase 2 requirements. No fines will be issued before January 1, 2015. Ordinance requirements differ by jurisdiction. Property managers should check for details about their city’s requirements. Setting Up a Separation System Adding organics to the recycling and garbage collection system at a multifamily complex can raise new opportunities and challenges. A successful collection system for compostable materials is possible with careful planning and continuous education. Property owners can address or avoid issues of space and cleanliness with proper set-up and training. A carefully planned system is the first key to success. The ordinance requires that the number and size of collection containers be sufficient for the amount of recyclable and compostable materials produced at each property. First, determine the needed capacity for recyclable and compostable materials. Visual inspections and monitoring of contents in the waste bin can provide insight into how much of each material the building generates. Property owners can estimate how much recyclable and compostable material is generated by an average residential unit or tenant to quantify the total capacity needed. Place all three containers (recycling, compostable, and garbage) in an easily accessible location to make it convenient for tenants to correctly sort their materials. If space allows, all three containers should be located in the same area to minimize the number of trips needed. If space is lacking, talk to your waste hauler about container size and pick-up frequency options. In some cities, it may be possible to downsize garbage



THURSDAY, JUNE 5; 6:30 P.M. - 8:00 P.M.

Tori Blanca, CCRM, EBRHA Members: Free; Non-members: $69 Tenant Screening, The Application Process, Fair Housing, Measure EE and Rent Control, EBRHA Member Benefits


TUESDAY, JUNE 17; 6:30 P.M. - 8:00 P.M.

Tori Blanca, CCRM, EBRHA Members: $39; Non-members: $69 2014 Rental Housing Laws, Tenant Screening, Evictions, Application Process, Fair Housing and more


THURSDAY, JUNE 19; 6:30 P.M. - 8:00 P.M.

Tori Blanca, CCRM, EBRHA Members: Free; Non-members: $69 Business License and Rent Board Fees, Lease Agreements, Security Deposits, Rent Increases, Notices and more

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TUESDAY, JUNE 24; 6:30 P.M. - 8:00 P.M.

Tori Blanca, CCRM, EBRHA Members: Free; Non-members: $69 Navigating, Online Form Library, Accessing Leasing Forms, “DIY” Property Management, and more

*Fixtures Installations *Water Service Replacements *Sewer Diagnostic Videos *Trenchless Sewer Replacements *Automatic Seismic Gas Valves Installations *Drain Cleaning and Diagnostics


THURSDAY, JUNE 26; 6:30 P.M. - 8:00 P.M.

Tori Blanca, CCRM, EBRHA Members: Free; Non-members: $69 Successfully Screening Applicants, Tenant Screening Dos and Don’ts, Checking and Interpreting Reports, and more

*Tankless Hot Water Heaters

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Online Registration at

All classes and workshops are held at the

Sign up, pay registration fees and receive reminders online.

EBRHA Education Center 360 22nd St., Suite 240 Oakland


JUNE 2014



containers and collection if tenants are properly separating their waste. Educating Tenants and Staff A perfect set-up will only be successful if people understand how to use it. Both the maintenance staff who keep the bins clean and orderly, and tenants who are responsible for sorting their waste, must understand their role in a successful recycling and composting program. Label the containers clearly and place signs on or near each container communicating what goes in each. Use visual cues, such as pictures of the typical contents that go into each bin. Property owners can create customized signs with pictures available at www. Clean containers regularly or instruct maintenance staff to do so. Provide a schedule and guide for how to clean the containers. Proper maintenance can prevent potential odor and infestation issues. You can provide personal recycling and organics containers for tenants to use in their units. Educate them on how to use the in-unit containers and keep them clean. As a requirement of the ordinance, provide tenants with information annually describing where containers are located and how to use them, as well as no later than 14 days after move-in and no less than 14 days prior to move out. Ensuring Success Property owners and managers that follow these guidelines are more likely to have a positive experience with Phase 2 of the recycling ordinance. The purpose of this ordinance is to reduce the amount of easily recyclable and compostable materials deposited in landfills. For more information on ACWMA Mandatory Recycling Ordinance 201201, details about who is affected, how to comply and to find support materials, visit RH

Miya Kitahara provides multifamily outreach for the Alameda County Waste Management Authority, also known as StopWaste, a public agency that designs and implements environmental programs on behalf of Alameda County and its 14 cities. She can be reached at miya@


| JUNE 2014 |

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JUNE 2014



From Start to Finish, EBRHA Integrated Leasing

INTRODUCING INTEGRATED LEASING Marketing • Rental rates set using real-time market and comps database • Best-in-class advertisements created using professional photographs • Your property advertised on all major apartment and relocation websites

Leasing • Signed leases, prepaid rent, and security deposits collected for hand-off to owner/manager • Rest easy knowing that we do all the hard work • Your job — collect more income on your valuable asset

Touring • Prospective tenants schedule tours via phone or online • Appointments available 12 hours a day, 7 days a week • Tours conducted by licensed leasing agents, familiar with building and neighborhood

Screening • Prospective tenants screened and qualified using thorough rental application • Employer and previous landlord references checked • Owner/manager approves tenants or leasing staff can select • Applicant notified as early as 24 hours

Save time and make more money by using EBRHA Integrated Leasing

Fills Your Units with High-quality Tenants Faster

What is integrated leasing? Integrated leasing is a turnkey solution that includes marketing, touring, screening and leasing your rental property. Taking into account your property profile and leasing criteria, integrated leasing results in your units being occupied by your ideal tenant faster, and at an optimal rent, saving time and increasing ROI and property values. Why use integrated leasing? Owners use integrated leasing for a variety of reasons. Some owners want to hand-off this portion of their business so they can focus on other aspects, like expanding their portfolios. Others use integrated leasing so they can scale back their involvement, and simply focus on property management or finances. My leasing process seems to be working well. Why change it? In the lifespan of a residential property investment, the factor that owners have the most control over is income, which comes down to effective leasing. Most owners would be shocked to realize they are leaving money on the table: property managers and resident managers have very little incentive to maximize rents, instead targeting a quick and easy process. As a result, owners feel that leasing is simple, even though their leasing process is effectively losing money.

What does it cost? EBRHA offers members the lowest commission in the leasing industry, anywhere from 25 - 90% of one month’s rent, depending on several factors, including number of units in the portfolio. How will I make more money? Integrated leasing has proven to decrease vacancy downtime by 9-12 days and increase rent by 5% or more. Those who use Integrated Leasing will immediately make higher net income after expenses and achieve significantly higher asset value on their property. How is documentation handled? The entire process is online and streamlined. Applicants are screened with thorough background checks, credit history reports, income verification, and landlord references. All rental forms, property disclosures and leasing documents are processed, making it easy and stress-free for owners and renters. This results in faster leasing, and renters love it. How do I know the status of my unit? Owners have an online dashboard where they can check on the status of their property’s leasing process in real-time, including tenant leads, property tours, and the ability to view applications as soon as they’re complete. Activity is monitored very closely, and users are provided with updates on a regular basis.

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capitol intelligence

A Job Well Done EBRHA members once again met in Sacramento to fight harmful rental housing bills. BY RON KINGSTON

EBRHA’s lobbyist (right) and members in Sacramento


n April, EBRHA members, staff and Board members spent the day in Sacramento lobbying against two legislative issues. One bill proposes to eliminate the ability of a landlord to go out of business, and the other permits every residential tenant to grow foodbearing plants of any size or amount for personal or commercial purpose inside and outside the rented premises or property. Legislators representing the cities of Alameda and Contra Costa counties heard from our members why these legislative measures are so harmful to property owners. There were eight regional apartment associations that lobbied these issues, including East Bay Rental Housing Association; Apartment Association, California Southern Cities; Nor Cal Rental Property Association; Apartment Association of Greater Los Angeles; Santa Barbara Apartment Association; San Diego County Apartment 16 RENTAL HOUSING

| JUNE 2014 |

Association; NorCal Rental Property Association; and North Valley Property Owner’s Association. The Ellis Act The first two bills the EBRHA team lobbied against would compel a property owner to stay in business regardless of circumstance or reason, upending the popular and well-known the Ellis Act. AB 2405 and SB 1439, the antiEllis Act bills, were proposed by San Francisco legislators as a direct result of San Francisco’s rental housing affordability and availability crises. The crises was created by the board of supervisors courting too many tech industry jobs over a three-year time period while it failed to build enough rental housing to accommodate astronomical population and job growth. The City’s response to the rapid population and job growth was to propose state and local laws that

would really clamp down on landlords. It was important for the EBRHA team to explain why we oppose the bills. AB 2405 would have allowed all local governments to completely override and void Ellis Act rights — the right of a landlord to go out of business. The bill would have allowed all cities and counties, not just rent control communities, the power to “compel the owner of any residential real property to offer, or continue to offer, accommodations” if that public entity determines that the housing supply of affordable units will decrease as a result of the Ellis Act. Because cities can always claim that removal of rental units under the Ellis Act decreases the number of affordable units, the bill effectively repeals the Ellis Act and forces landlords to provide rental housing regardless of circumstance. Our arguments against the bill were solid: 1) No other private business owner is forced to stay in business against his or her will. Landlords should never be singled out and treated differently; 2) The options for landlords to go out of business are already severely limited. Today, landlords have three options: sell to another person who will take over being a landlord; convert the property to ownership housing and sell the property as a tenancy in common (TIC) or use the property as an owner-occupied dwelling. AB 2405 eliminates the last two options; 3) There are a number of reasons why landlords decide to go out of business: liability exposure is too high; eviction process is too burdensome, lengthy and expensive; the property is too difficult to manage; it is no longer profitable; too many regulatory requirements; or personal reasons or other investments are more favorable or stable; 4) The options for local government to oversee and regulate Ellis Act evictions are already very restrictive and controlling; 5) It violates the “takings” clause of the U.S. Constitution; 6) It will lower resale values; and 7) Landlords will hold rental units off the market. Thankfully, the bill died in the Assembly due to the hard work of our members and our fellow apartment associations on April 29, 2014. Bill SB 1439 (Leno) bars landlords







Deposit of $15 per ticket is refunded upon arrival at Bay Area Contract Carpets. Seating is limited, two tickets per member. Reserve tickets today! Send your deposit to: EBRHA, Game Night, 360 22nd St., Suite 240, Oakland, CA 94612


JUNE 2014



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| JUNE 2014 |

from going out of business for at least the first five years of ownership. A new owner could not even move into his or her property during this time period. Our arguments against SB 1439 are similar to AB 2405. Local governments have taken action against landlords who want to go out of business. In San Francisco, condominium conversions are effectively banned for the next 10 years; relocation payments to each household may double; landlords would be required to pay the rent differential between a tenant’s old rent and new rent for two years; and landlords would pay a 50% tax on the net sale price if the property owner goes out of business during the first six years of ownership. Senator Leno will seek the entire Senate approval by May 30, 2014. This will be a hard fought legislative measure when he does take the bill up on the Senate floor. Growing Food on Rental Properties The second issue we lobbied against is AB 2561 (Bradford) which would grant tenants a new right to grow as much food on a rental property as a tenant desires, as long as the plants are in containers on the outside of a rental one to two-unit single family dwelling. Damage to the property could be substantial, as there is no limit to the number, size and height of the plants. Violation of many health and safety laws could result, and appearance and maintenance of the property would be compromised. In addition, property owners would lose control of the value of their properties. The author has stated that he does not want to abridge private property rights and does expect to address our concerns. Unfortunately, we have not reached agreement yet. The author must ask the entire Assembly for a vote by May 30, 2014. Thanks again to the EBRHA team for a job well done in Sacramento. RH

Ron Kingston is the EBRHA state lobbyist and president of the California Political Consulting Group. He can be reached at 916-447-7229 or


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East Bay Rental Housing Association 360 22nd Street, Suite 240 Oakland, CA 94612 510.893.9873 | FAX 510.893.2906 TEL


JUNE 2014





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SHARING ECONOMY Why East Bay property owners should pay attention to the Airbnb controversy in San Francisco. BY RON KINGSTON



irbnb, one of the fastest growing tech companies in the U.S., provides a website and phone app for property owners to rent or sublet their units on a short-term basis. Utilizing Airbnb or other similar services such as Homeaway, Roomorama or VRBO has become popular among both vacationers, who need cheaper or want alternative places to stay when traveling, and property owners or their occupants who can earn income when they rent out their units to tourists. The increasing use of services like Airbnb is part of growing cultural trend called the “sharing economy,” where traditional services like hotels and taxis are slowly being replaced by companies like Airbnb and Lyft (the popular ride-sharing company) that allow people to “share” their resources with others as a business enterprise or supplemental source of income. As useful and popular as Airbnb may be, controversy is brewing. Property owners and tenants in certain cities are finding out the hard way that renting out property via Airbnb often violates local and state laws, homeowner association restrictions, and breaches lease contracts. Depending on the local laws, renting out units on Airbnb may violate administrative and planning codes, rent control laws, and local business license and transient occupancy tax laws. It may also be a violation of state laws such the Ellis Act (right of a landlord to go out of business) and the Business and Professions code. Violation of these laws can also come with severe civil penalties, and in extreme cases, may lead to criminal charges. Tenants who rent out their units to Airbnb customers arguably have it worse, as they could be evicted for renting out their units. In San Francisco and other tourist Bay Area communities where short-term rentals are illegal, landlords, tenants and neighbors are fighting for changes from all sides of the debate. This is no small issue and shows promise to get much worse before the dust settles. Local Government Laws Against Short-Term Rentals San Francisco has some of the most stringent laws against converting residential units to tourist hotels. Under both the Planning code (zoning laws) and the Administrative code, converting a dwelling to transient or tourist use is either illegal or prohibited unless proper permits are issued and taxes are paid. Under the Planning code, if you own property in a district primarily zoned for residential uses, converting a residential dwelling unit to any non-residential use is prohibited unless you


JUNE 2014



Given these rules, it is probably unlawful to immediately rent dwelling units through Airbnb or similar Internet service providers upon removing them from the rental market under the Ellis Act. You may be in violation of a city’s local ordinances, including rent control laws and possibly California’s Business and Professions Codes regulating unfair business practices. In fact, the City of San Francisco recently brought a civil suit against two different property owners for violating these very ordinances and statues (See City and County of San Francisco and People of the State of California v. Darren Lee et al., San Francisco Superior Court No. 538857; and City and County of San Francisco and People of the State of California v. Tamara Yurovsky et al., San Francisco Superior Court No. 538854.)

“UNDER MOST RENT CONTROL LAWS, LANDLORDS MUST REASONABLY ACCOMMODATE THEIR TENANTS’ REQUEST TO SUBLET THEIR UNITS. A TENANT, HOWEVER, MAY NOT CHARGE A SUBTENANT MORE RENT THAN THE ORIGINAL TENANT IS CURRENTLY PAYING.” get a conditional use permit through the City’s time consuming and costly permitting process. Non-residential use includes using your property like a hotel, renting to overnight or short term transient guests for compensation. A violation of most planning and zoning codes are illegal and considered a public nuisance. Often times, penalties include a $250 per day administrative penalty for each day the violation continues unabated. There’s also a $200 per day civil penalty that may be enforced. Finally, a city can charge you with a misdemeanor, fine you $200 and send you to jail for up to six months. If that isn’t enough, under San Francisco’s Administrative Code, which also regulates unlawful conversion of residential property, it is illegal for a property owner to rent out a residential rental unit for less than 30 days. Violators can be sued for injunctive and monetary damages by any interested party, and may be liable for civil penalties of up to $1,000 per day for the period of the unlawful rental. Like the Planning Code, you can also be found guilty of a misdemeanor, imprisoned for up to year and fined another $1,000. Business license and transient occupancy taxes must also be paid. Anyone running a hotel must pay the cities transient occupancy tax. Airbnb recently stated they would begin collecting these hotel taxes from property owners using their services. Ellis Act If you were thinking of terminating leases or evicting tenants in order to rent your unit out at a higher rate through Airbnb, you should probably get some legal advice. Because San Francisco, Oakland and Berkeley are rent control jurisdictions, Ellis Act laws must be followed. Under the Ellis Act, landlords may take their rental units off the market, but cities retain authority over whether to approve the conversion of the property from residential to non-residential use after its been removed from the rental market. Moreover, when a unit is taken off the rental market through the Ellis Act, that unit may not be rented for at least five years, unless it is rented at the rent controlled rate, and the former tenants are given a chance to move back in. 22 RENTAL HOUSING

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Tenant Restrictions Tenants are also bound by local ordinances including the Planning and Administrative codes as described above. Additionally, they must follow rules and regulations established by the local government requirements and the terms of their lease contracts. Under most rent control laws, rental property owners must reasonably accommodate their tenants’ request to sublet their units. A tenant, however, may not charge a subtenant more rent than the original tenant is currently paying. That means a tenant who sublets via Airbnb seeking to make a profit could be violating both the Administrative and Planning Codes, but also rent control laws. This requirement, in and of itself, is a matter to take quite seriously. But that’s not all. Rent control laws and rental agreements allow owners the right to evict tenants who use the property for illegal purposes. Illegal purposes include violations of the Administrative and Planning Codes, and rent control laws. According to recent reports, San Francisco owners have been successfully evicting tenants who have used Airbnb to sublet their rental units. Tenants attorneys are claiming this is an illegal eviction, because among other things, an owner must give a tenant the ability to cure the breach in the lease. Tenant attorneys claim that by the time an owner serves a notice to cure the breach, the tourists have long since left, thus the breach no longer exists. Potential Changes to the Law There is much debate in many cities where it is claimed that thousands of apartment units are converted into de facto hotel rooms. Some property owners and tenants argue that using sites like Airbnb help provide much needed supplemental income. Others argue that transient occupancy in residential neighborhoods is a nuisance, and contribute to the shortage and high cost of housing San Francisco Board of Supervisor David Chiu recently introduced an ordinance that would legalize but also regulate

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short term rentals. In pertinent part, the proposed legislation would legalize short-term rentals by property owners but with a limit of 90 nights per year. Owners, however, must have a permanent resident residing in the property the other 275 days of the year. Owners would also be required to register their unit with the city, maintain records, and pay transient occupancy taxes. Chiu’s proposal does not grant tenants new rights to sublet, but does prohibit owners from immediately evicting tenants for first offenses. A competing ballot initiative, which still needs signatures, would allow shortterm rentals only in commercial zoning districts. The initiative would require property owners to register their units with the City, require hosts to show permission from landlords or HOAs to rent, require hosts to have proof of insurance, and require Airbnb to verify that each rental units is registered with the City. Under the most controversial part of the ordinance, neighbors who snitch on owners running illegal short-term rentals would be paid 30% of fines collected by the City. According to reports, the “snitching” aspect of the initiative is “still in flux.” Conclusion If you live, manage or own rental property in a rent control community, you may want to get some legal advice before acting. Even if your area is nothing like San Francisco, zoning laws restricting properties to residential uses are pretty common. Landlord and tenant disputes, neighborhood resistance, local government and judicial decisions will not remain in one city. For the moment, San Francisco seems to be ground zero over issues involving Airbnb and similar services. You may want to review and carefully assess your policies and practices concerning tourist uses of rental property. Transient occupancies can also be a nuisance to others, and create unwanted liability for the property owner. RH The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Ron Kingston is the EBRHA state lobbyist and president of the California Political Consulting Group. He can be reached at 916-447-7229 or


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The Challenges of Proving Primary Residency Subletting remains a vague topic in rental housing. BY CLIFFORD FRIED


or rental property owners, a rent controlled apartment can be a liability. After all, regulated rents can be a squeeze on net income. But to a tenant, a rent controlled apartment is a very valuable asset. Rents can only increase as permitted by law. And if a tenant no longer needs to reside in the apartment, why would that tenant give up this valuable asset? Instead, the tenant could sublease the apartment for more rent than what the owner receives. This has been a problem for many years in San Francisco and is now becoming common in the East Bay. Under State Law (Costa Hawkins Rental Housing Act), when an original occupant who took possession of a unit pursuant to an agreement with the owner no longer permanently resides in the unit, the property owner can raise the rent to any subtenant in possession. While owners have this right, it is not that easily enforced. First, it is difficult to catch a tenant subleasing a unit. Particularly when the fact of subleasing is being hidden on purpose. Second, it is also difficult to prove that a tenant no longer permanently resides in the unit. A subtenant, who does not have permission to occupy a unit, will be told by the master tenant to not communicate with the owner. Rent will continue to be paid by the master tenant so that it isn’t apparent that the original tenant has moved away. The name on the mailbox will remain the original tenant’s name. It is difficult to discover a nonpermitted sublease when the tenant and subtenant are keeping secrets from the property owner. More problematic is proving that the original tenant no longer permanently resides


JUNE 2014



sublease without fear of being evicted. If a property owner has proof that the original occupant under the lease no longer permanently resides in the unit, the rent can be raised to the subtenants in possession. This is done with a Costa Hawkins rent increase notice. Whether you are evicting for subletting without permission, or raising the rent because the last original occupant no longer permanently resides in the unit, you should seek the advice of competent legal counsel. These types of evictions and rent increases are frequently contested by tenants and their attorneys. There is no requirement that a tenant keep a rental unit as his or her primary residence in order to reap the benefits of rent control. Perhaps there should be. There are tenants who maintain a principal place of residence elsewhere but still maintain a grip on their rent controlled apartment. At a minimum, there should be a requirement that when a tenant has a principal place of residence elsewhere, they forfeit their controlled rent on their apartment. There should be a petition process at the Rent Board for property owner’s to challenge the tenant’s principal place of residence and to seek a rent increase on the regulated unit. In order to protect the integrity of rent control, to protect property owners from master tenants who are vacating and making a profit by subletting, and to encourage the turnover of rental units for the benefit of tenants looking for housing, the Rent Board should promulgate regulations to define the rights of owners and the obligations of tenants who have a primary residence elsewhere. It would be helpful to property owners and subtenants if there were regulations defining what it means to no longer permanently reside in a unit and requiring tenants to primarily reside in the unit and pay a proportionate share (compared with the subtenants) of the rent before retaining the benefits of rent control. Primary and principle place of residence should be defined to mean the place that the master tenant returns to after work, vacation, hospitalization and military service. It is more than a temporary place to visit. It is the place where a tenant eats, sleeps and bathes on a regular basis. Until there are adequate regulations and definitions in place, subtenants and property owners will continue to be ripped off by unscrupulous master tenants looking to take advantage of rent control at the expense of others. RH

“It serves no public policy purpose to allow an original occupant to sublease for a profit at the expense of the owner. Permitting tenants to move out and sublease at a profit actually defeats the purpose of rent control, which is to provide for an affordable and well maintained housing stock.” in the unit. What does it even mean to no longer permanently reside in a unit? If the tenant dies, then it is clear that the tenant will not be returning. But what about a student that goes away to college for four years? Or a soldier that goes off to war? Or an elderly tenant that goes to a convalescent hospital with no definite date of return? Some tenants move out and say that they plan on returning some day. They make these false statements in an effort to circumvent a property owner’s rights under the Costa Hawkins Act. And more and more often, Rent Boards and the courts are putting up with these tenant games. Under local rent laws and Costa Hawkins, a tenant can have more than one residence. But when the tenant permanently vacates their rented apartment, the property owner should be able to reset the rent to market, even if there are subtenants in possession. It serves no public policy purpose to allow an original occupant to sublease for a profit at the expense of the owner. Permitting tenants to move out and sublease at a profit actually defeats the purpose of rent control, which is to provide for an affordable and well maintained housing stock. Permitting master tenants to rent out units they don’t occupy bottles up supply. If a tenant is caught subleasing, determine if the lease requires prior consent of the property owner. Many leases prohibit subletting without the prior written consent. Subleasing without consent, in violation of the lease, is a breach of the lease and just cause for eviction. In Oakland and other cities, the property owner must give the tenant a second chance before serving an eviction notice based on breach of the lease. In a notice to cease, the tenant is told of the breach and how to cure it. If the tenant fails to cure within a reasonable time, a 3 day notice to perform covenant or quit may be served. However, not all leases prohibit subleasing. If a tenant is fortunate enough to have one of these leases, he or she can 28 RENTAL HOUSING

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Clifford Fried is a real estate attorney with Fried & Williams LLP. He has expertise in landlord-tenant law, eviction and rent control matters in Oakland and the Bay Area. He can be reached at 510-625-0100 or www.

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market outlook higher borrowing costs seems to be the most plausible explanation for slowdown in the 2 to 4 unit market and dip in average price. The average price has steadily increased across all three cities, with a couple dips here and there. The impact on 5+ unit properties is tougher to quantify as cap rates continue to push lower with many properties receiving multiple above asking offers. A drop in volume means less to me than recording a lower price per foot or price per unit in any given city. As you will see, Oakland, Berkeley and Alameda are still performing well, but it will be interesting to see how many buildings come to market this year, and if higher interest rates pull prices back down.

2 - 4 Units In Oakland, we saw the largest single quarterly drop in transactions since Q4 2006. Only 71 properties traded hands in Q1 2014, compared to 92 in Q1 2013, representing a 23% decline in transactions. Back in 2006, we experienced a 53% drop in quarter-to-quarter transactions, but the average sales price was in the The multifamily market appears to be reaching its $620,000 range. It ticked back up to an peak, but still has plenty of steam. BY GRANT CHAPPELL average price of $650,000 the following year before dropping two years later to a low of $197,000 in 2009. After that we ity, where a couple remained virtually ith many buyers continudid not see the average sales price in Oakunchanged. Even though activity slowed ally frustrated about the land break $300,000 until Q3 2012. tremendously, average prices remained competitive state of the In the first and second quarters of with 5% - 7% of previous highs over market, Q1 2014 results serve as posi2013, 92 and 86 properties sold respecthe last six quarters. tive news that we are reaching a peak tively. So when looking at a year-to-year Borrowing costs have crept up over in price. I am confident the market still comparison, this large drop does not the last year from “record lows.” The has plenty of steam and momentum seem so bad. Furthermore, prices were up Fed has signaled it will slow down its behind it, but we appear to be reaching 15% from a year ago, with an average of a plateau on average sales price, volume purchases of treasuries in the coming $429,000, compared to $374,000 in Q1 months as the economy heals. This and the number of deals trading quar2013. is expected to push borrowing costs terly. While much of the ultra-cheap Berkeley also experihigher in the coming distressed product has made its way enced a drop in trans“I am confident through the system, there are still plenty months. Wells Fargo actions, with only 18 the market still has recently announced it is of add-value buys and good upside on properties selling in Q1 lowering its credit criteria plenty of steam and existing available deals. And while the 2014, compared to 20 to 620 from 660 on loans momentum behind rental market is still red hot, history in Q1 2013. Going back it, but we appear that it sells to Fannie and shows that does not last. two years, Berkeley saw Freddie, opening the door to be reaching a In starting out the year, both seganywhere from 17 24 plateau on average to more purchase loans, ments demonstrated mixed, but downdeals trade per quarter, sales price, volume as refinance loans have ward trends compared to Q1 2013, and average prices in the and the number of come to a halt. yet more dramatically to Q4 2013. On $550,000 to $850,000 deals trading quarIn reviewing this a quarter-to-quarter basis, most cities range. By recording an terly.” quarter’s sales numbers, showed a substantial decline in activ-

A Market Plateau?



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average of $795,000 per sale in Q1 2014, prices are $25,000 lower than last quarter, yet still $100,000 higher on average than a year ago. Alameda held steady at 11 deals selling in Q1 2014, and an improvement from a year ago as only seven properties sold in Q1 2013. The average price is up significantly from a year ago to $704,000 in Q1 2014 from $410,000 in Q1 2013, and has hovered steadily since in the $650,000 - $700,000 range. 5 + Units In Oakland, the figures improved from Q1 2013 as $40,700,000 of sales occurred, compared to $33,100,000 a year ago and a moderate step up from the $39,600,000 that changed hands in Q4 2013. With an average of $158 per square foot and $114,000 per unit, those are both near or exceed all times highs in the two years. With higher borrowing costs over the last year, it’s clear that investors are willing to accept lower returns and/or pay more due to the future prospect of higher rents. Oakland’s change in Capital Improvement pass-through rules will likely put some downward pressure on prices. I do not possess sales data to draw any conclusions on how the Soft Story Ordinance impacted Alameda or Berkeley on price. If anything, I would expect an increase in transactions from owners who do not own soft story buildings, much less oversee a full retrofit project. However, the inability to recap as much of the capital does not yet seem to have an immediate impact on pricing as a number of 5 to 30 unit properties are pending or coming to market sub 5% cap rate in the Adam’s Point, Piedmont Avenue and Lakeshore Avenue area at the time of submission of this article. In Berkeley, we saw a substantial increase in deal volume, recording $12,300,000 in volume compared to $6,1000,000 in Q1 2013 — a huge drop from the $22,400,000 in the previous quarter. Recording averages of $259 per square foot and $190,000 per unit, Berkeley largely outperformed Q1 2013 and remained virtually unchanged from the previous quarter. A large portfolio of properties at Shat-

tuck Avenue and along Dwight Way and Haste Street made their way to market about a month prior to submission of this article. Consequently, I expect a large jump in volume in Berkeley next quarter. Word on the street indicates that many of the properties are going well over the asking price. This is especially impressive as many are soft story, not updated and already priced at more than $200,000 per unit, 12+ GRM and 5% Cap range. In Alameda, total volume inched up to $5,300,000 in Q1 2014 from $3,600,000 in Q1 2013, but similar to Berkeley, suffered a large drop from the $16,500,000 in volume last quarter. At averages of

$222 per square foot and $175,000 per unit, it’s mostly in line with where we are seeing deals trade over the last year, and an improvement from Q1 2013’s $146,000 per unit. My colleague Ethan Berger recently listed a 6-unit building on Bay Street in Alameda for $1.2 million and approximately $200 per square foot, 12.4 GRM and 5.1% Cap range. Ethan said the property “attracted a very high level of activity, all together receiving more than 15 offers and is in escrow significantly over list price. Many of the offers were from exchange buyers looking for quality, well located, smaller

transactions (2-4 units)

average sales price (2-4 units)

Source: NAI Northern California


JUNE 2014



total volume (5+ units)

price per sq. foot (5+ units)

properties with upside in a non-rent control market.� Conclusion The market in both segments have healed and continue to achieve or come within 5% of new records on average price, price per square foot or price per unit. Volume remained strong in Oakland, but took a hit in Alameda and Berkeley on the 5+ unit segment. Cap rates may creep up, but not by much, as investors have shown they will accept lower returns year one for upside down the road. Higher borrowing costs will continue to put some downward pressure on price on 2 to 4 unit properties, and may bring more properties to market from owners who have waited for the right time to sell. If you have not found the right deal or get outbid, the numbers show that the pendulum will swing back the other way in the not so distant future. RH

Grant Chappell is the Vice President of NAI Northern California. He can be reached at or 510-972-4941.


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payment schedule. To avoid such confusion, either in court, or just between owner and tenant, it is good practice to update leases with tenants whenever a change is necessary, either to codify an existing practice not mentioned in the lease, or clarify a change in practice from how it was originally stated in the lease. This is done through a “Notice of Change in Terms of Tenancy”, delivered to the tenant, which clearly sets forth what the change is, and when it becomes effective. Under California law (CC §827), the How often should residential leases be updated terms of a lease may be changed by the owner by giving written notice to the for existing tenants? BY MATTHEW QUIRING tenant at least as many days in advance as the term of the tenancy rental period. For a standard month-to-month tenancy, this is at least 30 days’ written notice. By the same token, this means that fixedterm leases generally cannot be modified before they expire, since the notice period would be at least as long as the original rental term before the modifications take effect. Before any change, review the lease carefully to ensure that the lease itself does not include any terms specifying special procedures for notice or modifications. In Oakland, any notice of change of terms of tenancy should be accompanied by a Rent Adjustment Program (RAP) notice, available online from the Oakland Rent Board, to ensure full comI’ve been told it’s important ally start with the written lease as part pliance with the rent control ordinance. to update leases with existing of its analysis, but it will not end there. Once the notice is effectively served tenants. Why does it matter? How If the terms of the lease do not match on the tenant, the notice itself becomes is it done? How often should it be the actual behavior of the parties, the a binding term of the lease, without any done? court will also take the actual pattern further actions. For changes of terms of and practice of performance as key evitenancy not relating to rent, the notice Even with careful and prudent dence to help construe, as a legal matter, may be served personally on the tenant, planning, it is not always possible what the agreement actually was. or by posting on the premises, accomto anticipate all the changes that may For example, suppose an owner roupanied by mail. For increases of rent arise in a tenancy, especially over a long tinely accepts rent on the 15th instead less than 10%, the notice may be served period of time. A rental property ownof the 1st, as stated in the lease. If the personally, or by mail, with a 5 day er’s relationship with their tenant may owner issues a 3 Day Notice to Pay extension of the effective notice date (35 become loose and casual as trust grows, Rent or Quit when the days). For increases of or become more rigid and formal as tenant fails to pay rent “Before any change, rent greater than 10%, conflict rises. Capital improvements or on the 1st, a court may review the lease the notice must be given even changes in technology may allow rule the notice invalid, carefully to ensure an additional 30 days in an owner to provide brand new services because the owner’s own that the lease itself advance (60 days), and that were not contemplated when the behavior contradicts their does not include may be served personlease was signed. own lease agreement, any terms specifying ally, or by mail, with a If a term of the tenancy becomes and therefore the owner special procedures 5 day extension of the a point of legal dispute between the cannot rely on the written for notice or modifieffective notice date (65 owner and tenant, the court will generlease to establish the rent cations.” days). Note that posting

Terms of Tenancy



| JUNE 2014 |



notice on the premises is NOT sufficient for notices of rent increases, and that any mailed notice must have a notation of the date and place of mailing, or be accompanied by an unsigned copy of the affidavit or certificate of mailing. See CC §1013 for details on the methods of mailing notice. Keeping leases up to date is as much a form of maintenance as inspecting your roof or your foundation. If you rely on a written lease that does not match the patterns and practices that you have renting your property and supplying your services, it will not shelter you when the legal storm comes. As an owner, take advantage of your ability to set the terms of tenancy to ensure that they will be ready to work for you when you need them. —MATTHEW QUIRING RH The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Matthew Quiring is an attorney in private practice and can be reached at 510-225-1345 or mpquiring@

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Landlord Basics Tori Blanca, CCRM, EBRHA Free to Member and Non-members 6:30 p.m. – 8:00 p.m.



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Landlord 102 Tori Blanca, CCRM, EBRHA Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m. THURSDAY, JULY 10

Renovation, Repair and Painting Course

• This EPA-accredited training course will certify workers as required under the new law for anyone who disturbs leadcoated surfaces during repair or renovation of pre-1978 housing.

• This 8-hour course was designed to train contractors who


Baseball Night — Oakland A’s vs. New York Yankees Tailgate: Bay Area Contract Carpets, 747 Independent Rd., Oakland Game: Oakland Coliseum Deposit of $15 per ticket is refunded upon arrival at Bay Area Contract Carpets. Limited seating, two tickets per member. Tailgate Party — 5:00 p.m.; Game — 7:05 p.m.

perform building renovations, repairs or painting, and how to work safely and comply with the EPA regulations. The course addresses health concerns, regulations, before, during and after work procedures, as well as record-keeping and training noncertified workers.

• The class consists of a point presentation of the new RRP

regulations and hands-on student participation. There is an exam at the end of the course and students must pass at 70%. Instructor: Richard MacFarlane, Benchmark Environmental Engineering


Women’s Auxiliary Luncheon Scott’s Seafood Restaurant in Jack London Square Auxiliary Members: $20; Guests: $35; 11:45 a.m.; Contact Anna Alberti for more info: 510-562-1179 TUESDAY, JUNE 17

Landlord 101 Tori Blanca, EBRHA, CCRM Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m.

Members: $250; Non-Members: $279 Limited seating. Registration deadline is Friday, June 27. To register contact Tori Blanca at (510)893-9873 or go to 8:00 a.m. – 5:00 p.m. TUESDAY, JULY 15

Landlord 101 Tori Blanca, EBRHA, CCRM Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m.


Landlord 102 Tori Blanca, CCRM, EBRHA Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m.


Landlord 103 Tori Blanca, EBRHA, CCRM Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m.


Saturday Morning Coffee Hour Topics: • Legal Q&A by Steve Williams, Fried & Williams LLP 10:00 a.m. - 11:00 a.m. TUESDAY, JUNE 24

Landlord 103 Tori Blanca, CCRM, EBRHA Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m.


Fair Housing and the Rental Process Tori Blanca, CCRM, EBRHA Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m. TUESDAY, JULY 29

Landlord Basics Tori Blanca, CCRM, EBRHA Free to Member and Non-members 6:30 p.m. – 8:00 p.m.


Landlord 104 Tori Blanca, CCRM, EBRHA Members: Free; Non-Members: $69 6:30 p.m. – 8:00 p.m.

*Members: $39; Non-members: $69. Mandatory prepayment required; 72 hour cancellation; No Refunds on no shows; Seats fill fast, register in advance! To register and pay, visit or call (510) 893-9873. Unless otherwise noted, all classes and events are held at the EBRHA Education Center, 360 22nd St., Suite 240, Oakland 36 RENTAL HOUSING

| JUNE 2014 |


Annual fees are $30 per unit and are due March 1. Owners are allowed to pass through $15 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. LANDLORD PETITION FOR EXEMPTIONS

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


2014-15 (1.9%) A CPI increase of 1.9% became effective on July 1, 2014. 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.


AM O U N T ( % )

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 JUNE 1 ‘04 - MAY 30 ‘05. . . . . . . . . . 0.7 JUNE 1 ‘03 - MAY 31 ‘04. . . . . . . . . . 3.6 Visit to see previous adjustments.



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

(Improvement Costs ÷ Number of Units) 60 months or 5 years REFER TO ORDINANCE FOR QUALIFICATIONS AND AMORTIZATION PERIODS.


Annual fees are $194 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. 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% DEC. 2004. . . . . . . . . . . . . . . . . . . 1.6%


2014 (1.7%) 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 to see previous adjustments.

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)

2003. . . . . . . . . . . . . . . . . . . . . . . . . 0% 2002*. . . . . . . . . . . . 3.5% (NOT TO EXCEED $30) *ADDITIONAL ADJUSTMENTS ARE ALLOWED IF AN OWNER PAID FOR ELECTRICITY OR HEAT.



DEC. 2013. . . . . . . . . . . . . . . . . . . 0.1% DEC. 2012. . . . . . . . . . . . . . . . . . . 0.2% DEC. 2011. . . . . . . . . . . . . . . . . . . 0.3% DEC. 2010. . . . . . . . . . . . . . . . . . . 0.4%

Berkeley Rent Board 2125 Milvia Street Berkeley, CA 94704 510.981.7368 |


JUNE 2014




Environmental Remedies, Inc. Jaime Tamayo 925-519-6354 P.W. Stephens Environmental Kimberly MacFarlane 510-651-9506 Water Damage Recovery Rick Walker 800-886-1801 ACCOUNTING & TAX

The Lee Accountancy Group, Inc. Jong H. Lee, CPA 510-836-7400 APPLIANCE SALES & PARTS

Appliance Parts Distributor Mike De Fazio 510-357-8200 Appliance Warehouse of America David Jepsen 510-921-1071 APPRAISERS

Access Appraisal: Apartment Specialists Joe Spallone 510-601-1466 Mark Watts Commercial Appraiser Mark A. Watts 415-990-0025 ARCHITECTURE

InsideOut Design Pennell Phillips 510-655-1198 ASPHALT/CONCRETE

American Asphalt & Concrete Jeannie Nyberg 510-723-0280, x28 ASSOCIATIONS


Bornstein & Bornstein Daniel Bornstein 510-836-0110, x1007 Buresh, Kaplan, Feller & Chang Fred Feller 510-548-7474 Ericksen Arbuthnot Jason Mauck 510-832-7770

| JUNE 2014 |


Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 Law Offices of Marc L. TerBeek Susy Meyer 510-689-0140 Richards Law John Richards 925-231-8104 ATTORNEYS - REAL ESTATE/CORP.

BOMA Oakland/East Bay Stephen Shepard 510-893-8780 Oakland Association of Realtors Patricia Bouie Hinds 510-836-3000 Oakland Chamber of Commerce Joseph Haraburda 510-874-4808


Fried & Williams LLP Clifford Fried 510-625-0100 Law Offices of Elaine Lee Elaine Lee 510-848-9528 Law Offices of Leon H. Rountree III Leon H. Rountree III 510-343-6299 Law Offices of Marc L. TerBeek Susy Meyer 510-689-0140 Matthew Quiring - Attorney at Law 510-225-1345 Richards Law John Richards 925-231-8104 The Evictors Ed Nagy 510-839-2074 The Shepherd Law Group Michael Shepherd 510-531-0129

Buresh, Kaplan, Feller & Chang Fred Feller 510-548-7474 Burnham & Brown Jack Schwartz 510-444-6800 Ericksen Arbuthnot Jason Mauck 510-832-7770 Law Offices of John Gutierrez John Gutierrez 510-647-0600, x2 Law Offices of Marc L. TerBeek Susy Meyer 510-689-0140 Richards Law John Richards 925-231-8104 AUTOMOTIVE

Ken Betts Towing Services Ayub Azam 510-532-5000


Chase Commercial Josh Milnes 510-891-4545 Chase Commercial Ted Levenson 415-945-5430 Chase Commercial Neil O’Callaghan 415-315-8901 Cooperative Center Federal Credit Union Chris Perez 510-647-2127 First Federal Savings & Loan Assoc. Anthony Moreno 415-460-2657 First Republic Bank Jeff Fung 510-336-3907 Intervest Mortgage Marc Lipsett 510-622-8515 Luther Burbank Savings Larry Miller 925-627-2790 NorthMarq Capital Brian Esquivel 415-433-4145 Opus Bank William Craun 925-648-5915 Torrey Pines Bank Mike Popovich 510-899-7548 BATHROOM & KITCHEN REMODELING

American Bath Enterprises, Inc. Larry Arcadi 510-785-2600 APT Maintenance, Inc. Keith Berry 510-747-9713 KMK Contracting & Property Services Kevin Knobles 925-292-8667 SGK Home Solutions Vladmir Merabian 408-264-6964 CABINETS & COUNTERTOPS

Elegant Stone & Cabinets Linh Duong 925-954-8845 CARPET CLEANING

Cleaner Carpets Ron Russell 510-522-1344 CODE COMPLIANCE/CONDO CONVERSION

Armstrong Development Barbara Armstrong 510-337-1998 COLLECTION AGENCIES

Credit Bureau Associates Kathy Parsons 800-564-6440 CONSTRUCTION

A-One Construction Dirksen Rogers 408-690-0890 D.W. Hamilton Construction, Inc. D.W. Hamilton 510-919-0046 Going Green Dan Antonioli 510-652-7593 KMK Contracting & Property Services Kevin Knobles 925-292-8667 Schafer Construction, Inc. Mike Barker 510-568-7200 SpottCheck Consulting Susan Spott 510-816-1452 Vasona Construction, Inc. Dan Scharnow 510-413-0091, x203 West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950 CONTRACTORS/ RESTORATION

ARC Water Damage Nina Lauffer 510-835-3073 SERVPRO of San Leandro Clayton Barry 510-352-2480 Water Damage Recovery Rick Walker 800-886-1801 DOORS & GATES

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 Rex Key and Security Joe Towbis 510-527-7000 SGK Home Solutions Vladmir Merabian 408-264-6964 Statcomm Inc. Cherie Anderson 650-988-9508


Thomas Electric Co. (TEC) Thomas Hurtubise 510-814-9387 ELEVATOR REPAIRS

Paramount Elevator Corp. Mark Pipoly 510-835-0770 ENERGY RETAILER

AXA Corporation Purie Infante 415-740-6178 FINANCIAL PLANNING

David White & Associates Miguel Delgado 925-277-2635 FIRE ESCAPE SERVICE

Great Escape Susan Giaquinto 415-566-1479 FIRE PROTECTION

Bay Alarm Limor Margalit 510-639-2652 Detect All Security & Fire Amy Roither 510-835-4100 Sentry Alert David Ingham 510-549-0306 Statcomm Inc. Cherie Anderson 650-988-9508 FLOOR COVERINGS

Bay Area Contract Carpets, Inc. Kerry Plain or Ken Scott 510-613-0300 Dick’s Carpet One Dan Biles 510-633-9533 GARAGE DOORS

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 GLASS & GLAZING

ALBA’s Glass Ben Moazeni 510-644-2522 GOVERNMENT AGENCIES

Housing Authority of the City of Alameda Mike Pucci 510-747-4325 Oakland Housing Authority Leased Housing 510-874-1500


Going Green Dan Antonioli 510-652-7593 GUTTER CLEANING

Mr. Sparkle Dylan Kelly 510-504-7048 HANDYMAN SERVICES

Halcyon Properties Roger Shane 510-847-7075 KMK Contracting & Property Services Kevin Knobles 925-292-8667 Start to Finish Christopher Bailey 510-727-9128 HAULING SERVICES

KMK Contracting & Property Services Kevin Knobles 925-292-8667 HEATING & AIR CONDITIONING

Advanced Home Energy Marisa Lee 510-540-4860 Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 Black Diamond Mechanical Robert Lopez 510-522-4196 Hassler Heating & Air Conditioning Mike Hassler 510-848-3030 INSPECTIONS

SpottCheck Consulting Susan Spott 510-816-1452 INSULATION

Advanced Home Energy Marisa Lee 510-540-4860 INSURANCE

Capital Insurance Group John Reynoso 1-800-682-9255, x7519 Commercial Coverage Insurance Paul Tradelius 415-436-9800 The Greenspan Co./Adjusters Int’l. Rich Hallock 866-331-4790 Jain L. Williams - State Farm Insurance Jain L. Williams 510-530-3222


JUNE 2014



Kelly Lux – State Farm Insurance Kelly Lux 510-521-1222 Ruben Leon - Farmers Insurance Group Ruben Leon 510-525-6540 Ruth Stroup Insurance Agency Ruth Stroup 510-874-5700 Stone Creek Insurance Agency Tom Lynch 925-297-4202 Yonas Hagos - Farmers Insurance Yonas Hagos 510-763-1030 INTERCOMS & ACCESS CONTROLS

R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 Rex Key and Security Joe Towbis 510-527-7000 Sound Communication Systems Jerry Dean 510-595-8111 Statcomm Inc. Cherie Anderson 650-988-9508 Martinez Real Estate Investment Jose Martinez 510-769-0436 LAUNDRY EQUIPMENT


Alameda Co. Dept. of Environmental Health Vector Control Services Daniel Wilson 510-567-6826 Terminix Robert Sater 510-489-8689 Times Up Termite Mike Barker 510-568-7200 Albert Nahman Plumbing & Heating Albert Nahman 510-843-6904 Pacific Drain & Rooter Service Nasir Jalil 510-452-4606 Roto-Rooter Martin Alvarez 510-755-1262 PROMOTIONAL PRODUCTS

Aspire Business Consulting Natalie Koffler 510-919-0914

Coinmach Carlos Barraza 510-429-0900, x54435



Alameda County Healthy Homes Dept. Julie Twichell 510-567-8252 LEASING

Agent Access – Bay Area Fredric Harper-Cotton 510-689-4048 RentMethod Greg Sirotek 415-335-6814

APT Maintenance, Inc. Keith Berry 510-747-9713 KMK Contracting & Property Services Kevin Knobles 925-292-8667 PROPERTY MAINTENANCE SUPPLIES

Ferguson Enterprises, Inc. Jermane Griffin 916-752-7608 Wilmar Nick Mraz 800-345-3000


Rental Roost, Inc. Nitin Shingate 925-357-8783


Advent Properties, Inc. Benjamin Scott 510-250-7918 Bay Property Group Robert Goldman 510-836-0110


SpottCheck Consulting Susan Spott 510-816-1452

| JUNE 2014 |


Dunn-Edwards Paints Megan Mutimer 415-755-0685





Golden Gate Locksmith Co Ralph Scott 510-654-2677 Rex Key and Security Joe Towbis 510-527-7000

Beacon Properties Carlon Tanner 510-428-1864 Caldecott Property Management Services Ronald Reece 510-594-2400, x226 Canyon Pacific Management Tom Scripps 415-495-4739 Cedar Properties Jonathan Weldon 510-834-0782 Crane Management Kit Crane 510-918-2306 The Enterprise Company William McLetchie 510-444-0876 ERI Property Management Sasha Bermudez 510-883-7017 Lapham Company Jon M. Shahoian 510-594-7600 Marquardt Property Management Karen or Judi Marquardt 510-530-2050 MSB Property Management Nik Bhachu 510-649-3380 Oaktown Urban Properties Michael Moynihan 415-572-0334 OMM Inc./Mason Management Janice Mason 510-522-8074 Premium Properties Sam Sorokin 510-594-0794 Shaw Properties Liz Hart 510-665-4350 Sphinx Property Management Jon Goree 510-798-9299 Wellington Property Company Jillian Loh 510-338-0588 Woodminster Property Management Nicholas Drobocky 510-336-0202 PROPERTY MANAGEMENT SOFTWARE

Buildium Sam Clarke 888-414-1933 x152


Advent Properties, Inc. Benjamin Scott 510-250-7918 ARA Pacific Mike Colhoun 415-273-2177 Caldecott Properties Andy Read 510-594-2400 CBRE Keith Manson 510-874-1919 Coldwell Banker – Apartment Specialist John Caronna 925-253-4648 Coldwell Banker Commercial Henry Ohlmeyer 925-831-3390 Edrington & Associates Steven Edrington 510-749-4880 Home & Investment Realty George Vassiliades 510-710-6826 Lapham Company Tsegab Assefa 510-594-0643 Litton/Fuller Group Luke Blacklidge 510-548-4801, x130 Marcus & Millichap Eli Davidson 510-379-1280 Marcus & Millichap David Wolfe 510-379-1200 NAI Northern California Grant Chappell 510-972-4941 Property Counselors Link Corkery, Inc. Link Corkery 510-886-1212 Red Oak Realty Kevin Hamilton 510-250-8780 Woodminster Real Estate Co Inc. Nicholas Drobocky 510-336-0202 RECYCLING/REUSE

DR3 Mattress Recycling Robert Jaco 510-798-3734


Alan K. Beales 510-339-9776 Bay Area Property Group Cristian Villarreal 510-474-7404 Edrington & Associates Steven Edrington 510-749-4880 RENTAL SERVICES

Cal Rentals Elaine Perkins 510-642-3644 Hamilton Properties Bay Area Delesha Hamilton 404-606-2141 ROOFERS

A-One Construction Dirksen Rogers 408-690-0890 Fidelity Roof Company Steve Parry 510-547-6330 Frank Fiala Roofing Frank Fiala 510-582-6929 General Roofing Company Michael Wakerling 510-536-3356 SECURITY/ SURVEILLANCE

Bay Alarm Limor Margalit 510-639-2652 Detect All Security & Fire Amy Roither 510-835-4100 Golden Gate Locksmith Co Ralph Scott 510-654-2677 R & S Overhead Garage Door Sean Boatright 510-483-9700, x14 Sentry Alert David Ingham 510-549-0306 SEISMIC CONSTRUCTION

Adobe Soil & Structures Mark Almeida 510-919-1880 B.A.S.S. Seismic Retrofit D.W. Hamilton 510-919-0046 West Coast Premier Construction, Inc. Homy Sikaroudi 510-271-0950


Earthquake & Structures, Inc. B.K. Paul 510-601-1065 TENANT SCREENING SERVICE

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

Ken Betts Towing Services Ayub Azam 510-532-5000 PPI Towing Stephanie Gipson 510-533-9600 TREE SERVICE

Bartlett Tree Experts Tony DeMola 925-934-6306 Coastal Tree Service Hans Waller 510-693-4631 WASTE & WASTE HANDLING EQUIPMENT

DR3 Mattress Recycling Robert Jaco 510-798-3734 Waste Management Company David Tucker 510-430-8509 WATER MANAGEMENT

HydroPoint Colleen Moore 415-602-6984 cell WELDING - STRUCTURAL & ORNAMENTAL

Vidrio Enterprises Jessie James Vidrio 510-453-8052 WINDOW WASHING

Mr. Sparkle Dylan Kelly 510-504-7048 WINDOWS

Advanced Home Energy Marisa Lee 510-540-4860 ALBA’s Glass Ben Moazeni 510-644-2522 SGK Home Solutions Vladmir Merabian 408-264-6964


JUNE 2014



ad index



Membership Application for Property Owners and Managers


Environmental Remedies. . . . . . . . . . . . . . . 23 P.W. Stephens. . . . . . . . . . . . . . . . . . . . . . . . . 33 APPLIANCE PARTS & SALES

Appliance Parts Distributor. . . . . . . . . . . . . . 3 ATTORNEYS


Bornstein & Bornstein. . . . . . . . . . . . . . . . . . 25 The Evictors. . . . . . . . . . . . . . . . . . . . . . . . . . 29 Fried & Williams LLP. . . . . . . . . . . . . . . . . . . 23




American Bath. . . . . . . . . . . . . . . . . . . . . . . . 13




Urban Ore. . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 CARPETING & FLOORING


Bay Area Contract Carpets, Inc.. . . . . . . . . 18




Going Green. . . . . . . . . . . . . . . . . . . . . . . . . . 25 KMK Construction. . . . . . . . . . . . . . . . . . . . . 33 West Coast Premier Construction. . . . . . . 29 ENGINEERS

Adobe Soil & Structures. . . . . . . . . . . . . . . . 25 Earthquake and Structures, Inc.. . . . . . . . . 19 West Coast Premier Construction. . . . . . . 29




CIG Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . 5 Jain Williams - State Farm. . . . . . . . . . . . . . 33




Wash Multifamily. . . . . . . . . . . . . . . . . . . . . . 35 LENDERS

JPMorgan Chase Bank. . . . . . . . . . . . . . . . . 12 Torrey Pines Bank . . . . . . . . . . . . . . . . . . . . . . 11



Golden Gate Locksmith Co. . . . . . . . . . . . . 29



Salsbury Industries . . . . . . . . . . . . . . . . . . . . 13

1-2 UNITS = $249.00

3-4 UNITS = $269.00


5-8 UNITS = $289.00

9-16 UNITS = $299.00

17+ UNITS = $299.00 + $5.00 PER UNIT

Team Too. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 PLUMBING

Albert Nahman Plumbing . . . . . . . . . . . . . . . 11 PROPERTY MANAGEMENT





Maisel Property Management. . . . . . . . . . . 33 PROPERTY MANAGEMENT & SALES





Bay Property Group . . . . . . . . . . . . . . . . . . . 25 Beacon Properties. . . . . . . . . . . . . . . . . . . . . 29 REALTORS

John Caronna - Coldwell Banker . . . . . . . . 24 RESOURCES


ECHO Housing. . . . . . . . . . . . . . . . . . . . . . . . 17 ROOFING SERVICES



Frank Fiala Roofing. . . . . . . . . . . . . . . . . . . . 23 General Roofing Co. . . . . . . . . . . . . . . . . . . . 35 SECURITY

Sentry Alert. . . . . . . . . . . . . . . . . . . . . . . . . . 32 East Bay Rental Housing Association


360 22nd Street, Suite 240

Applied Waterproofing Systems . . . . . . . . 35

Oakland, CA 94612



510.893.9873 | FAX 510.893.2906


| JUNE 2014 |

SGK Solutions.. . . . . . . . . . . . . . . . . . . . . . . . 44 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.

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Rental Housing June 2014  
Rental Housing June 2014