Rental Housing - June 2017

Rental

Housing EAST BAY RENTAL HOUSING ASSOCIATION | JUNE 2017

CALIFORNIA’S HOUSING SHORTAGE How harsh regulations may exacerbate housing supply and affordability issues

PLUS: CARVING OUT PROFITS IN THE EAST BAY APARTMENT MARKET UPHOLDING FIRE SAFETY STANDARDS IN YOUR RENTAL UNITS

Contents

East Bay Rental Housing Association

JUNE 2017

Volume XIV, Number 6 | June 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

19

25

Carving Out Profits

An Easy Target

BY ANNE BRUFF

BY RON KINGSTON

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

29

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

Hack-Proof Your Life

PUBLISHED BY

East Bay Rental Housing Association PUBLISHER

BY TERRY ALLEN

Wayne C. Rowland MANAGING EDITOR Jill Broadhurst EDITOR Tina Bocheff

Features & Columns NEWS

EBMUD Proposes Rate Hikes; Submit Your Written Protest Now! 8

HEALTH & SAFETY

The 411 On Fire Safety in Your Rental Units

BY ANGELISA ROSS

10 MARKET OUTLOOK No End in Sight

BY GRANT CHAPPELL

32 1031 EXCHANGES Potential Changes to Tax Laws

BY MARY CUNNINGHAM & TERESA MOSS FLUEGEL

2 RENTAL HOUSING

| JUNE 2017 |

34 ESQ&A Gang Activity

BY VARIOUS AUTHORS 36 GREEN SHEET Reduce Water Heating Energy Use in Your Building

BY STOPWASTE

Events & Directory

14 EVENT PHOTOS EBRHA’s 2nd Annual Economic & Legislative Forum

ADVERTISING

ebrha.com

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

Tina Bocheff | 510.318.8303

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.

PHOTO: JOHN TORNOW / CC BY 2.0

6

ART DIRECTOR & COPY EDITOR Esteban Cortez

1.800.447.4926 APPLIANCE PARTS DISTRIBUTOR Serving The Apartment And Builder Industry Since 1963 Largest Appliance Parts Inventory In NorCal!

New Lower Prices

On Select Whirlpool Stainless Steel Appliances.

B.

A.

A. Whirlpool 19 cuft Refrigerator Stainless Steel Refrigerator • 29” Wide Apartment Size • Frost Free • Clear Gallon Door Bins • Full Width Pantry • Condiment Caddy • Hidden hinges • Most Energy Efficient Made • ENERGY STAR Rated • 66 1/4 in x 29 1/2 in x 33 7/8 in WRT359SFYM

C.

799.00

$

B. Whirlpool 1.6 cuft Capacity Over-the-Range Microwave • 1000 Watts • One Touch Cooking • Auto and Time Defrost • 2 Speed Fan • Convertible Venting Option • Night Light

WMH31017AS

259.00

$

F.

C. Whirlpool Free Standing 4.8 cu. ft. Capacity Stainless Range Ceramic Top

E.

• 4.8 cu. ft. Capacity • 1 Dual Size Element • Custom Broil • Lower Storage drawer • 1- 9” Element 2 - 6” Element

WFE320M0AS

E. Whirlpool Built-In Dishwasher

519.00

$

D. Whirlpool GAS Free Standing 5.0 cu. ft. Capacity Stainless Range • Cast-Iron Grates • Adjustable Time Self-Cleaning System • 13,500 btu Power Burner • AccuBake® WFG510S0AS

549.

$

00

Prices subject to change without notice

• 3 Level Dura Wash System • ENERGY STAR® Qualified • 4 Cycle 3 Option • Delay Wash • Quiet Wash sound Package

WDF310PAAS

339.00

$

D. F. Whirlpool 17.5 cu. ft. TopFreezer Refrigerator

• Frost Free • Factory Installed Automatic Ice Maker • Adjustable Clear Door Bins • SpillMizer Glass Shelves • ENERGY STAR Rated • 68 in x 28 in x 3o 3/8 in

W8RXEGMWS

699.00

$

We’re Not Just About Parts. We’re Trained Professionals. www.apdappliance.com San Leandro 16200 East 14th St. 510.357.8200

Fremont 37250 Fremont Blvd.

510.490.0600

Dublin 6843 Dublin Blvd.

925.828.5800

contributors 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.

ANNE BRUFF Anne Bruff has been a Commercial Real Estate Broker for over 30 years and has been president of her own firm, Anne Bruff & Associates, since 2005. Anne’s clients include investors, developers and business owners.

Anne’s goal for her clients is to build wealth through real estate.

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.

MARY CUNNINGHAM Mary Cunningham, President of Chicago Deferred Exchange Company, is responsible for a staff dedicated to providing trust and consulting services to attorneys, accountants, real estate and tax professionals nationwide. Ms. Cunningham brings more than 20 years of exchange expertise in the field of LKE services.

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 Costa-Hawkins Act.

TERESA MOSS FLUEGEL Teresa Moss Fluegel is Senior Vice President of Chicago Deferred Exchange Company (CDEC). She is responsible for providing consulting services to real estate and tax attorneys, accountants, investors and commercial real estate professionals across the country with a focus on the West Coast since 2000.

ANGELISA ROSS Angelisa Ross is the Marketing & Events Coordinator for EBRHA. She is a Bay Area native with a passion for researching trends and consumer behavior. She holds a degree in magazine journalism from San Jose State University and is a published writer.

4 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

ACTIVATE YOUR VOICE 1. EBRHA On Your Side Have you experienced a situation or ruling that you feel infringed on due process as a property owner? We constantly hear about outcomes that are just plain wrong. EBRHA collects member experiences in order to make changes to a broken and biased system. Tell us your story today at www.ebrha.com 2. Grand Jury Complaints This investigative body looks at complaints received from citizens alleging mistreatment by officials, suspicion of misconduct, or government inefficiencies. To file a complaint, send an email to grandjury@acgov.org.

3. Attorney Complaints The Office of Chief Trial Counsel reviews complaints of unethical conduct by attorneys licensed to practice in California (this includes Rent Board hearing officers and tenant attorneys engaged in suspicious misconduct). To file a complaint, go to www.calbar. ca.gov, find the “Quick Links” on the left side, and then click on “Attorney Complaints” and complete the application.

EBRHA IS HERE FOR YOU. KEEP US INFORMED ON ANY COMPLAINTS FILED WITH THESE AGENCIES.

3664 Grand Ave l Suite B Oakland, CA 94610 P 510.893.9873 l F 510.893.2906 www.ebrha.com l news@ebrha.com

EBRHA has approved the following ‘Basic Principles’ drafted by the Public Policy committee. It is meant to encapsulate fundamental ideas shared by our EBRHA membership and to create a foundation for further political activities on behalf of the EBRHA membership. We welcome your comments and suggestions. We also welcome finally beginning a healthy dialogue with our neighbors about rental housing and how we can work together to solve the current housing shortage. Only by listening to everyone and sharing all of our experiences and data can we make real, measurable progress in addressing this critical need.

EBRHA BASIC PRINCIPLES 1) About EBRHA The East Bay Rental Housing Association (EBRHA) represents rental-housing providers in Alameda and Contra Costa Counties. Our members provide quality, affordable housing, and are the bedrock of a vital, productive community. As residents and local families invested long-term in our communities, we personally feel the successes and failures of housing policies in our daily lives.

We are our communities. EBRHA members are overwhelmingly mom-and-pop homeowners. For many of us, rental income is the primary source of retirement income. EBRHA members include union members, city employees, teachers, retired workers, and folks on fixed incomes. We include your aunt and uncle, grandparents, cousins, beat cops and firefighters, doctors and dentists, neighbors, etc.

We share many concerns and interests with our customers; renters with whom we agree to provide impermanent housing on our properties. We support fair treatment for renters. We support existing Federal and State laws defining our rights and responsibilities.

2) EBRHA Basic Political Positions a. We SUPPORT rent subsidies for renters in real need, funded by the whole community. b. We SUPPORT the housing policies of most communities in the U.S. where functioning rental markets based on competition between owners keep rents fair, promote housing quality and encourage investment in maintenance and new construction to balance housing supply with demand. c. We strongly OPPOSE government imposed rent subsidy programs that assist renters that have no need, or that are funded by only an arbitrary subset of property owners. These programs (mislabeled “Rent Control”) only worsen housing shortages, damage their communities, and both overly burden the wrong owners and subsidize the wrong renters.

3) Our Vision for the Community a. Maintain ongoing, honest conversations with the community, informed by real data, about the costs and benefits of price controls on residential rents. b. Any rental assistance program is carefully designed to respect all stakeholders, achieve reasonable, rational objectives, and avoid unacceptable consequences, such as reducing much-needed housing investment thereby worsening housing shortages. c. Uphold the basic Constitutional rights of all citizens. The U.S. and California Constitutions established that all homeowners must receive Due Process in all government deliberations affecting their property. Sufficient time must be allowed for all stakeholders to be heard and for careful deliberations before creating housing policies. d. Subject all government housing programs to regular, independent evaluation to inform any changes, remove failing programs, and sunset all programs unless continued need is clearly demonstrated.

I N F O R M AT I O N

l

NETWORKING

l

ADVOCACY

l

COMMUNITY IMPROVEMENT

COLUMN

title newshere

New Hearing Date on July 11: EBMUD Proposes Rate Hikes Totaling Approximately 23%; Submit Your Written Protest Now! Board of Directors will hold a public hearing on the proposed rate increases to your water and wastewater services.

The hearing has been rescheduled to Tuesday, July 11 from 1:15pm to 5:00pm at the EBMUD Board Room located at 375 11th Street in Oakland. If approved, the proposed increases would cover a two-year period starting July 12, 2017. If passed, rates for water will increase 9.25% the first year and 9.0% the second.

Wastewater rates will increase an additional 5% for a total of 23% over two years. EBMUD provides no legitimate incentives for water conservation in multifamily buildings. Sub-metering units, which would make the tenants responsible for their own usage, costs anywhere from $8,000 to $12,000 per unit. EBMUD must construct a program that incentivizes water conservation. Instead of penalizing owners who cannot control usage, but have no means to pass costs on to residents.

What You Need to Do: EBRHA members should attend the public hearing and submit a formal written protest in-person for each property. All protests must be in writing. Rental property owners should encourage their tenants to submit their protest in writing as well. Any oral protest must include a written statement with all of the following information: 1) The specific service charge increase for which the protest is being submitted; 2) Customer account number, street address, or assessor’s parcel number; and 3) Name and signature of the THE EAST BAY MUNICIPAL UTILITY DISTRICT (EBMUD)

6 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

property owner or tenant sending the protest letter. All written protests must be received by EBMUD prior to the conclusion of the public input portion of the hearing. Protest letters that are submitted by fax, email, or other electronic means will not be considered. EBRHA encourages all East Bay residents to write their letter of protest for each property and attend the public hearing. If you are unable to attend the hearing, drop off your protest letter to the EBRHA office by Friday, July 7. Any written statements should be mailed prior to the hearing to EBMUD, MA 218, PO Box 24055, Oakland, CA 94623-1055.

New EBRHA Lease & Forms Now Available to Members EBRHA is pleased to announce that

newly revised and remarkably userfriendly forms are now available. The new forms will help rental property owners and managers with the application, offer to rent, lease and month to month agreements, move-in and move-out, mold, notice requirements and so much more.

The lease and month-to-month form has incorporated all of the mandatory disclosure issues instead of providing separate forms for each and every issue. In this way, forms will not be lost or over looked.

As always, forms will be fillable through your browser or document viewer, allowing you to complete them faster. Go to www.ebrha.com and log in to your member account to get started. We hope you find it an excellent member benefit!

Reminder: Oakland Rent Adjustment Program (RAP) Announces New CPI of 2.3%, Effective July 1, 2017 The Oakland Rent Adjustment Program (RAP) recently announced

the new CPI pass-through rate of 2.3%, effective July 1, 2017. Rent can only be raised once a year. As a reminder, rent

increases can only happen every 12 months after a tenant’s move-in date or 12 months after the last rent increase.

California law requires that tenants receive written notification 30 days in advance. For rent increases greater than 10%, tenants should receive 60 days notice. NOTE: Oakland rent law prohibits rent increases higher than 10%. The Oakland Rent Adjustment Ordinance (O.M.C. 8.22.070) allows an annual rent increase based on the regional Consumer Price Index (“CPI”). The “CPI rate” takes effect on each July 1 and remains in effect through June 30 of the following year.

A rental property owner can raise rent above the CPI rate, based upon the justifications listed on the Oakland RAP website. One justification is “banking”, which refers to deferred allowed annual rent increases. These annual rent increases are determined by the City and are also known as CPI increases or annual general rent increases. Annual rent increases that were not given, or were not given in full, can be carried forward to future years.

Subject to certain limitations, property owners may defer giving annual general increases up to ten years. General increases that were not imposed within ten years expire. If challenged, evidence of the rental history of the subject unit is required. The current annual CPI rate for rent increases effective July 1, 2016 through June 30, 2017, is 2.0%. The rate is not applied to rent increases that take effect earlier than July 1, 2016.

Save the Date! EBRHA’s 11th Annual Trade Expo Save the date for EBRHA’s 11th Annual Trade Expo & Symposium on Thursday, October 26, 2017 from 3:00 p.m. to 7:00 p.m. at the Greek Orthodox Church in Oakland. This event brings hundreds of local rental property owners face-to-face with over 50 top industry suppliers, and offers educational workshops on a range of timely property management topics. Speakers and topics will be announced soon. RH

The nation’s #1 multifamily lender is lending in your backyard.

13 Unit Apt Bldg Oakland, CA $1,657,000 3-year Hybrid

6 Unit Apt Bldg San Leandro, CA $725,000 5-year Hybrid

21 Unit Apt Bldg Berkeley, CA $3,150,000 5-year Hybrid

If you have an apartment building with 5 or more units to purchase or refinance, call us today to learn how we can put our resources to work for you.

LOW FE ES | G REAT RATES | STR EAMLI NED PROCESS

Contact Josh Milnes, Client Manager at (510) 891-4545 or josh.milnes@chase.com Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. Products and services provided by JPMorgan Chase Bank, N.A. #1 claim based on 2015 FDIC data. ©2017 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. 290286

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 7

COLUMN

health & safety are no unforeseen issues. Property owners can find basic fire prevention information on websites such as Cal Fire (www.fire. ca.gov) or at local stores like Acme Fire Extinguisher Co., located in Oakland.

Maintenance Inspections — Rental units should at the very least be inspected every year by the property owner. Annual inspections are a great opportunity to maintain all fire equipment such as smoke detectors and carbon monoxide devices. Be sure to follow all local and state laws and serve a 24-Hour Notice of Intent to Enter (available at www.ebrha.com) beforehand.

It is not uncommon for a resident to Upholding safety standards in your rental units is tamper with fire prevention devices or the best way to help prevent fires. BY ANGELISA ROSS to prop open emergency fire exits, which can result in expensive fines from the city.

State law allows property owners to visit Costco, or online. But before purchaseach rental unit to maintain the integrity ing, property owners should ask a sales of the detectors and serve notices on any representative when the product was behavior that violates the rental agreeput on display and buy the most recent ment. When inspecting equipment, follow model. When purchasing online, it’s the instructions provided by the manufacimportant to check the product descripturers. tion to make sure it meets the California Keep Equipment and Fire Exits in Fire Marshals standards. Fire prevention Good Condition — Ensure that fire materials can also be purchased at local escapes are not compromised by weather stores that specialize in providing inforconditions and open and shut properly. mation on placement and local laws.

Sprinkler systems should have a 5-year When selecting a fire extinguisher, certification test and additional sprinkler first decide on the type of extinguisher heads should be stored in a safe locayou prefer. Different types of extintion. In addition to checking detectors, guishers are sold to stop fires caused by extinguishers and sprinklers, make sure specific elements. Some extinguishers n the event of a fire in your rental all equipment is free from paint, debris contain chemicals that could make cerproperty, will your tenants or guests and obstructions. Best practices includes tain types of fires worse. For example, know how to safely evacuate? One keeping a log of all fire education conan “Ordinary Combustibles” extinof the biggest challenges of being a versations between the resident and the guisher contains air-pressurized water rental property owner is staying up-toproperty owner. Written documentation which may put out a fire caused by date with ordinance changes, especially should include dates, a summary of the paper, but will have the opposite effect in Oakland where they are constantly matter, actions to be taken, and should be on a fire caused by electrical wiring. The being modified. In light of the horrific signed by the resident. three most common fire extinguishers Ghost Ship and San Pablo fires, EBRHA are air-pressurized water, carbon dioxAccess — The California Fire Code invited the City of Oakland’s Fire Section 506 requires that the fire departide, and dry chemical. Owners should Education Department to the office to ment have immediate access to buildings educate residents on the different types discuss fire prevention and best pracin the event of an emergency. It may of fires and the best way to stop them. tices. The following information was also be necessary to add signage to the More information can be found at presented during that workshop, highbuilding labeling the fire alarm control www.osha.gov/SLTC/etools/evacuation/ lighting the importance of emergency panel, hot water heater, and storage area, portable_about.html. preparedness in rental properties. etc. Signage will help firefighters easily Additionally, residents should navigate through the understand how to use Purchasing Equipment “It is the property building. all fire equipment. It is It is suggested to invest in high quality owner’s responsibilencouraged to practice fire prevention tools. Fire extinguishity to establish a cul- Resident’s Duties using fire extinguishers ers and detectors can be purchased at ture of safety among Residents are also in a safe, open area with big box stores such as Home Depot, residents.” responsible for residents to ensure there

The 411 on Fire Safety in Your Units

I

8 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

maintaining a safe environment in the premises. Addendums and house rules can be added to your lease or contract to ensure they are maintaining the cleanliness of the property. For example, if a property owner suspects a resident has an unsafe amount of clutter in the unit, the owner can serve notices to make sure there is a defined walking path of three feet, windows are accessible, there are no flammable items, and the resident can clearly evacuate.

If notices have been served and the resident does not comply with the agreement, property owners can file a complaint with the fire department, vector control or the building department. If a complaint is filed with the fire department, they will work to resolve the issue by discussing fire hazards with the owner and resident.

Property Owner’s Duties It is the property owner’s responsibility to establish a culture of safety among residents. This can be done by enforcing rules, maintaining fire equipment, or offering fire drills. Fire drills should include the evacuation plan and a meetup location. If your property is a high rise building, a “Facility Emergency Plan” may be required by the fire department and evacuation plans can be submitted to the city for approval for $243. See Oakland Municipal Code Chapter 15.12 for more details.

Make sure your residents have proper documentation of safety inspections, including information such as when the battery was replaced and detector installation dates. Setting the safety expectation for your residents will help establish a clear understanding of what to do during an emergency.

Ultimately, property owners are responsible for upholding safety standards in their rental units. For more information please contact Oakland Fire Department’s Public Education Coordinator, Karen Cox at (510) 238-7255, or your city’s equivalent. RH

The information contained in this article is general in nature. Consult the advice of your local fire department for specific advice. Angelisa Ross is marketing/events coordinator at EBRHA. She can be reached at aross@ebrha.com.

When your investments are worth millions of dollars, you need a team with a proven track record and a platform that you can trust.

Over $300,000,000 in team transactions since 2014.

4 Dedicated professionals working for you.

Strength in numbers.

EAST BAY MUTLIFAMILY SPECIALISTS If you are looking to sell or purchase apartment buildings, we can help you evaluate your investment strategy, understand market trends and get the highest price from your portfolio. Reach out to find out how. We’re here to help.

KEITH MANSON

Senior Vice President Lic # 01490046 +1 510 874 1919 keith.manson@cbre.com

ZACHARY GREENWOOD

Associate Lic # 01960296 +1 510 874 1918 zachary.greenwood@cbre.com

CASEY HUSBAND

KERRY NIXON

Associate Lic # 02011683 +1 510 874 1925 casey.husband@cbre.com

Client Services Specialist Lic # 01976508 +1 510 874 1914 kerry.nixon@cbre.com

© 2017 CBRE, Inc. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 9

COLUMN

market outlook jobs created in the state last month were in the Bay Area. The need for new housing is only amplified with more jobs and residents flocking to the Bay.

No End in Sight

Despite a dip in volume, the East Bay multifamily market continues to favor sellers. BY GRANT CHAPPELL

C

oming off of a record-setting year for total volume in multifamily sales in the East Bay, I anticipated a sluggish start this year.

Historically, Q1 is slow, as sellers wait for busier spring and summer seasons.

As the data shows, we had a drop off in volume, but values remain high and volume is still higher than 2012 – 2014 quarterly averages. The high prices that multifamily assets trade at these days is helping to keep volume figures high, while the total number of quarterly transactions is slowing down.

In the first quarter, NAI Northern California tracked the activity on openly marketed 2 to 4 and 5-plus unit properties and off-market sales. In all cases, when a property was priced well and exposed to a wide range of buyers, multiple above-asking offers were received, many with cash or very short contingency periods. As I detail below, this shows no end in sight for the foreseeable future, as inventory is still incredibly low.

EBRHA’s Economic Forum In April, EBRHA hosted the Economic and Legislative Forum at Lake Chalet in Oakland. Marc Lipsett of Pacific Western Bank gave an excellent presentation on the multifamily market in the greater East Bay. His presentation showed how far behind the region is in building new housing, and how the vacancy factor really isn’t a concern for lenders when underwriting a property. While 10 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

Interest Rates & Tax Reform In early spring, the Federal Reserve left short-term rates alone, but expects to raise rates again later this year. Lenders have already factored the Fed’s action into higher pricing for loans, thereby tightening loan dollars on purchases and refinances. Some lenders I speak with complain that they’re not seeing the action on loan origination since many sales are all cash.

While the double digit increases in the stock market indexes since the election seem to indicate economic bullishness, some of this can be attributed to expected tax cuts. Based on the plan released in April, this would offer mixed results for the housing market. Reforming the Affordable Care Act and eliminating the 3.8% net investment income tax may lure some sellers to cash in on high values and pay capital gains. We saw this back in 2012 when the Bush tax cuts were expiring. Many sellers rushed to sell to save on capital gains, while forgoing future appreciation in the market. Other news articles about eliminating 1031 exchanges has been discussed for years, yet little evidence indicates the White House or Congress is pushing for that.

the development pipeline has shown thousands of units in the entitlement phase, actual delivery of new units has fallen short of needs based on job and population growth.

EBRHA State Lobbyist Ron Kingston’s presentation offered numerous examples in the state legislature of bills that get proposed at the committee level.

AB 1506 would have repealed CostaHawkins, but was ultimately postponed until next year. According to an article in the San Jose Mercury News, more than 130 housing bills have surfaced at the state level, well above the 20 to 40 in an average year. While many were directed at creating more affordable housing, streamlining development projRents Dipping ects, and providing additional tenant According to a recent Berkeleyside article, protections, it’s clear that politicians are housing inventory in the East Bay is feeling the heat more than ever to do hovering at historic lows with barely more to ease housing costs. one month’s supply of inventory. A client The article also pointed out that the with decades of investment experience home ownership rate of 54% in Caliin the East Bay recently commented that fornia is the lowest level seen since the he didn’t feel like this was a bubble since early 1940’s. And while California has so many offers are all cash and quick to 12% of the nation’s population, it has close. They’ve never seen a market like 22% of the nation’s homeless. In Alamthis for single-family and small to mideda and Contra Costa size multi-unit propercounties, a family of four “While we saw a dip ties. In March, houses making $80,000 a year is in volume over the were selling on average considered low income, last quarter, it’s very close to 20% over the while $105,000 a year is much in line with list price in Berkeley considered low income historic trends and and about 14% over list in San Mateo and San there is no reason price in Oakland.

Francisco counties. The to be alarmed Since late last year, article also pointed out over a looming more owners have that 13,000 of the 19,000 ‘correction.’” commented that they’re

receiving fewer calls on vacancies and it’s taking longer to lease, or rents needed to be lowered. One owner commented that the turnout at his open houses in Berkeley, near campus, was significantly lower than the previous years with fewer applicants and ultimately, lower rent. Whether it’s more supply near campus coming available or less demand for the East Bay compared to previous years, tenants have more options now to choose from.

According to Zumper’s May 2017 report, rents in Oakland are down 15% year over year for both one-bedroom and two-bedroom apartments. San Francisco is down about 6% over the same period for similar units. Out of curiosity, I typed in “1 month free” on Craigslist for all rentals in Oakland and Berkeley and got over 100 results. It’s even more competitive in San Francisco for owners, as the same search produced 399 results. When factoring in incentives, rents are down even more than Zumper’s data shows.

2 – 4 Units In going back to 2008, the first quarter of the year is almost always a dud, with the exception of Oakland in 2009 – 2011, when average sale prices were in the low to high 200’s and a glut of foreclosures were in the pipeline. This quarter mirrored some of the slowest quarters in terms of activity, yet all three cities remained within 5% - 10% of record highs on average sales price.

Berkeley saw the biggest drop in average price with 12 sales recording for an average of $1.105 million dollars, the lowest average price since Q4 2015.

Oakland posted 73 sales for an average of $728,000, just $25,000 less than the record set in Q4 2016. Similarly, seven sales closed in Alameda at an average of $1.097 million dollars, the third highest quarter on record. Clearly, the low inventory and overbidding on singlefamily homes has caused many buyers to consider purchasing 2 – 4 unit properties to owner occupy.

5+ Units Similar to the 2 – 4 unit market, the 5+ unit segment experienced a sharp drop off in volume in Alameda, Berkeley and Oakland. While price per unit and price per square foot metrics remained strong,

low inventory of available properties for sale could indicate a year of lower volume. While many transactions take place off market, keeping pace with 2015 and 2016 volume figures will be tough if rents remain sluggish on both sides of the bay and interest rates gradually rise this year.

With $81 million dollars in volume, Oakland witnessed the lowest volume since Q3 2015. It also set a new record at $272 per square foot and was $11,000 shy of the peak price per unit set two

quarters ago. It’s worth noting that I deleted two sales from the data for much newer, non-rent controlled product.

One of the sales, a recently constructed 33-unit on Claremont and Telegraph, sold for $20 million dollars, just above $600,000 per unit.

In going to CoStar and MLS for sales data for 2-4 units and 5+ units, it’s rare to have GRM and cap rates for both on- and off-market sales. An off-market 16-unit building on Harrison Street sold

transactions (2-4 units)

average sales price (2-4 units)

Source: NAI Northern California

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 11

total volume (5+ units)

price per sq. foot (5+ units)

price per unit (5+ units)

Source: NAI Northern California 12 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

in Q1 2017. For this property, with a 15.70x GRM and 3.48% cap rate, the in-place income was extremely low. However, with underlying metrics of $303 per square foot and less than $240,000 per unit—plus walking distance to Piedmont Avenue—the property had real intrinsic value. This was truly a win-win for both buyer and seller.

Berkeley and Alameda totaled just three sales between the two cities. The sole sale in Alameda for $10.7 million dollars traded off market, making any information on gross rent multiplier (GRM) and cap rates tougher to come by. The two sales in Berkeley totaled $9.45 million dollars and averaged $386 per square foot and $240,000 per unit.

One of those sales, 1951 Chestnut, was a 36-unit building comprised entirely of studios and sold for 13 GRM and a 4.5% cap rate. While structural and other deferred maintenance was needed, the central Berkeley location and proximity to North Berkeley BART made it an attractive purchase.

Conclusion In summary, it will continue to be a seller’s market. While we saw a dip in volume over the last quarter, it’s very much in line with historic trends and there is no reason to be alarmed over a looming “correction.” The gap between jobs created and housing units created in the Bay Area since the recession is so astronomical that it will take years to bring rents down to levels in which residents are not spending such a high percentage of gross wages on housing.

While political trends to further impose rent control restrictions, more regulations and higher taxes remain popular, market rents on vacancies remain buoyant, making it still an attractive time to be in the rental property business. We’ll see if more owners decide to cash in this year and sell with values at these high prices. RH

Grant Chappell is the Senior Vice President of NAI Northern California. After graduating from California Polytechnic State University in San Luis Obispo in 2003 with a degree in Business Administration and a minor in Spanish, Grant has worked exclusively in Real Estate. He can be reached at grant@nainorcal.com or 510-3364721.

#NAAEDU17

APARTMENTALIZE. Fantastic food, delightful attractions and the apartment industry’s top event Make your plans for the 2017 NAA Education Conference & Exposition in Atlanta, June 21-24, 2017 at the Georgia World Congress Center.

Discover breakthrough strategies and solutions—then explore the charm of Atlanta: Southern hospitality, rich history, cultural diversity and bustling activity.

Traveling here is easy By plane: HartsfieldJackson Atlanta International Airport is a convenient travel hub with non-stop flights from 150 U.S. cities.

By train: Amtrak runs right to Peachtree Station, a short cab ride to the Georgia World Congress Center.

ebrha.com

By car: Accessible via major interstates around the region.

|

JUNE 2017

|

RENTAL HOUSING 13

EVENT PHOTOS

EBRHA’S 2ND ANN

Economic & Le

N

early 100 Bay Area rental property owners and real estate

investors gathered for EBRHA’s 2nd Annual Economic and Legislative Forum on April 20 at Lake Chalet restaurant in Oakland. According to presenter Marc Lipsett, Vice President and Senior Loan Consultant with Pacific Western Bank, rent growth in the region is expected to slow dramatically. While Northern Alameda County, San Leandro, Hayward, San Ramon and Walnut Creek rents increased by 50-60% over the last five years, rent increases over the next five years will be in the 10-20% range.

In Eastern Alameda County and Eastern and Western Contra Costa County, rents were up 35-45% over the last five years, but increases will be in the 10-15% range over the next five years. In terms of development, since 2007, nearly 8,000 new rental units were delivered in Alameda County, compared to just under 1,800 units in Contra Costa County. By the end of 2018, nearly 5,000 new units will be delivered in Alameda County, and just over 500 in Contra Costa County. On the legislative front, presenter Ron Kingston, EBRHA State Lobbyist and President of the California Political Consulting Group, discussed how State and local governments are responding to the housing shortage. To begin with, in 2017, the Legislature introduced over 130 housing related bills, nearly 50% more than typical legislative years. Among the bills are ones that help generate funding to build affordable housing and remove obstacles to development. Then there are the bills that seek to regulate the rental property ownership and development industry. See page 18 for the full report. EBRHA thanks our generous sponsors, presenters and guests for making the Forum a huge success. RH

14 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

NUAL

egislative Forum THANK YOU TO OUR FORUM SPONSORS!

Commercial Real Estate Services, Worldwide.

bay area real estate

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 15

FEATURE

An Easy Target Harsh regulations on property owners and developers may exacerbate housing issues in the long run. BY RON KINGSTON

PHOTO: JOHN TORNOW / CC BY 2.0

R

ental property owners and developers are easy targets to blame for California’s newest round of housing affordability issues and shortages. This is unfortunate because the misguided blame may lead to significantly harsher regulations of the industry in the coming years—regulations that will likely serve to perpetuate and exacerbate the problem.

California’s Housing Shortage and Affordability Problems

The problem is well documented: California does not have enough housing to meet demand. In fact, according to a recent independent report by the state’s Legislative Analyst Office (LAO), the state produces 100,000 fewer housing units than are needed to meet demand. Supply and demand economics are therefore in full force here in the state. When everyone is competing for the same limited supply of housing, costs are going to go up.

But supply and demand is not the only driving force creating affordability and shortage problems. Community resistance to housing, stringent environmental policies, lack of fiscal incentives for local governments to approve housing, limited land, lack of incentives for developers to build, burdensome government regulations, long and difficult permitting processes, and the high cost of building all serve to constrain new housing construction.

And it is not just the popular and dense coastal urban areas of California that are impacted by the current shortage. As people get priced out of major cities, they begin to migrate inland, ultimately creating a supply and demand problem that increases housing costs, rents, and prices in suburban and other inland areas.

The shortage and affordability issues create widespread problems for all Californians, and those seeking to move here. Rents become unaffordable for more and more people.

People are forced to move further away from where they work, or move out of state completely. It discourages people from living in California, which not only impacts the State’s

economy, it keeps California businesses from attracting the most qualified people to work for them. Rental property owners also feel the squeeze because local governments and state lawmakers begin passing laws aimed at regulating the rental and construction industry.

What the Experts Recommend

In 2015, the LAO provided recommendations to the California Legislature about how to begin addressing California’s housing issues. In summary, it told the Legislature that it needed to pass laws to help facilitate the development of market rate housing in coastal areas. The LAO followed up with a report in 2016 after certain tenant advocacy groups expressed concerns that building market rate housing will not help low-income tenants, and that the Legislature should focus on regulations that help low-income tenants, such as stronger rent controls. The LAO’s response was swift and clear: Many housing programs—vouchers, rent control, and inclusionary housing—attempt to make housing more affordable without increasing the overall supply of housing. This approach does very little to address the underlying cause of California’s high housing costs: a housing shortage.

The LOA went on to state vouchers programs, rent control and inclusionary housing programs only help select few, while doing nothing in terms of addressing the real problems. Forcing rental property owners to provide below market rate housing does not reduce or eliminate competition, the driving force of supply and demand economics.

Moreover, forcing owners and developers to provide below market rate rentals ultimately discourages development and improvement of rental property.

Government’s Reaction to the Housing Problems

So how have the State and local governments responded to the housing shortage? To begin with, in 2017, the Legislature introduced over 130 housing related bills, nearly 50% more than typical legislative years. Among the bills ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 17

“We hope you will join us in supporting the industry. As one notable industry leader has said, ‘Join us at the table or you will be on the table.’” are ones that help generate funding to build affordable housing and remove obstacles to development. Then there are the bills that seek to regulate the rental property ownership and development industry.

Supply-related Bills — On the supply side, a few bills are aimed at increasing funding to build affordable housing. ACA 11 (Caballero) imposes a quarter percent sales tax to generate yearly funding for middle-income earner housing. SB 3 (Beall) is a 3-billion-dollar one-time state general obligation bond to build and rehabilitate low-income housing. SB 2 (Atkins) would impose a $75 fee on all real estate recordings (with the notable exception that the fee would not apply to a single-family home sale), which in turn would generate a regular stream of funding for affordable housing. While these bills promote development of housing, none of them increase market rate housing.

Regulation Bills — On the regulation side, there appears to be a target on the backs of rental property owners, managers and developers. Both at the state and local level, rent control is on the agenda. Despite consensus among experts that rent control does nothing to solve the State’s housing supply problems, and actually leads to the development of fewer homes, and homes remaining off the market, lawmakers continue to target rental property owners for regulation.

AB 1506 (Bloom) is probably the worst bill in years. It essentially allows all cities and counties in the state to adopt the strictest forms of rent control on all types of housing. Currently, under the Costa-Hawkins Rental Housing Act of 1995, newly constructed units and single-family homes are protected from rent control. Moreover, owners of controlled units are able to raise rents to market rate when a vacancy occurs. Bloom’s bill would remove all of those protections, allowing local governments to control even vacant units (a form of rent control called “vacancy control”). Owners would be required to keep their rents artificially below markets forever.

Rent control—especially the most severe kind like vacancy control—makes building rental units cost prohibitive. Owners cannot make money off of them, so investors stop investing. Owners of current rental units eventually get out of the rental business because renting property becomes unprofitable.

Ultimately, rent control increases the housing shortage problem, which then increases competition and costs, and makes housing even more unaffordable. It also encourages legislative bodies to adopt additional restrictions on rental properties.

Assembly Member Bloom has since pulled his bill back for this year, but promised to bring it back next year with some 18 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

amendments. Several members of the legislature that seek to repeal the Costa-Hawkins Act or amend the act to severely injure the important aspects of the act join Mr. Bloom.

Tenant groups are using AB 1506 as a platform to organize and demand changes in several laws.

Inclusionary Housing

Inclusionary housing mandates are also back on the table. Inclusionary housing mandates force developers to build affordable housing units as part of a larger market rate development without the requirement of the government providing density bonuses or sufficient cost offsets.

Without offsets, the costs associated with the “affordable units” are borne by the property owner and possibly the other tenants.

Again, the more burdensome development is, the less investors are inclined to develop. These kinds of mandates, as noted by the LAO, do nothing to address the housing shortage.

More Cities Adopting Rent Control

Locally, there are several communities considering adopting rent control regulations to address affordability issues. Rent control is a hot topic, promoted by well-organized tenant advocacy groups. It will continue to be discussed, and ultimately, some communities will cave. Communities that ordinarily would not have given a second-thought to regulation a few years ago have recently considered rent control. Concord and Burlingame are just two of many examples that considered rent control. Other cities are “strengthening” rent control laws. Just a few weeks ago, the City of Long Beach considered adopting an ordinance that would permit every tenant to use the same credit report for 90 days. One significant explanation to adopt the ordinance is the cost of credit reports is simply too expensive.

Occupancy Limits, Felonies & Service Animals

If rent control and inclusionary housing mandates have not captured your interest, the state administration, notably the Department of Fair Employment and Housing Council (DFEHC) has proposed three significant regulations that should affect every property owner and manager.

Occupancy limits have not changed in decades. If the DFEHC draft regulation becomes law, owners and managers could not discriminate against tenants that want 15 occupants in a three-bedroom, 9 occupants in a two-bedroom and 6-occupants in a one-bedroom. Owners would no longer be permitted to advertise that a rental unit has a living room, dining room, and kitchenette because those rooms could be used as a bedroom.

The second draft regulation would sharply limit an owner or manager’s ability to refuse to rent to previously convicted felons. Owners’ concerns are legitimate. They are liable and subject to forfeiture and nuisance abatement laws for criminal activity on their property; they have the “unequivocal” right to deny registered sex offenders to “protect a person at risk or for some other reason.” Owners have the legal duty and moral obli-

AUTHORRS CALL THEM HOME.

AS DO PROOFREADERS.

APARTMENTS. WE LIVE HERE. Dianne F. writes love stories on her second story balcony. Freelance editor Dan R. corrects a post on the neighborhood listserv. With all the flexibility and apartments a year, and with your help, this exciting $1.3 trillion lifestyle advantages that make apartments so relevant to today’s workforce, more than

37 million

Americans call them home.

To meet the growing demand, America needs a good 300,000 new

per year economic impact will grow as well.

To see how your state is affected – plus

40 metro areas

– and an interactive picture of how apartments add jobs in construction, operations, leasing, management, skilled trades, and neighboring businesses, visit

WeAreApartments.org.

W E A R E APARTMENTS.ORG

UPCOMING WORKSHOPS The Keys to Locking Out Lawsuits and Lowering Taxes D ATE & TIME

SPEAKER

PRICE

TOPICS

WEDNESDAY, JUNE 7; 2:00 P.M. - 3:30 P.M. Dave Gibb, Senior Vice President, Legally Mine LLC Members: $39; Non-members: $69 High Risk Assets, Lawsuit Prevention, LLCs vs FLPs, and more

EVENING WORKSHOP

Financial Planning: Managing Your Destiny D ATE & TIME

SPEAKER

PRICE

TOPICS

WEDNESDAY, JUNE 14; 6:00 P.M. - 7:30 P.M. Terry Allen, CFP®, AWMASM, Enhance Wealth Advisors Members: $39; Non-Members: $69 Budgeting, Insurance, Investing, Tax Planning, and more

Rental Property Owner 105 (RPO 105) D ATE & TIME

SPEAKER

PRICE

TOPICS

WEDNESDAY, JUNE 21; 2:00 P.M. - 3:30 P.M. EBRHA Staff Members: Free; Non-members: $69 Right of entry, Late Payments, Guest Policies, and more

EVENING WORKSHOP

Three Skills You Need to Expand Your Investment Portfolio D ATE & TIME THURSDAY, JUNE 29; 6:00 P.M. - 7:30 P.M.

SPEAKER Doug Brien, Mynd Co-Founder and CEO

PRICE Free to Members & Non-Members D ESCRIPTION As a real estate investor, recognizing your strengths and

weaknesses is vital to increasing your bottom line. It’s much more lucrative to spend your time and energy focusing on what you do best, while building a trusted team to handle the rest for you. It’s also important to understand the changing real estate landscape and know what tools and technologies are available.

Unless noted, all workshops are held at:

3664 Grand Avenue • Suite B Oakland, CA 94610 TO REGISTER, GO TO EBRHA.COM/EVENTS OR CALL 510-893-9873. REGISTRATION REQUIRED 20 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

gation to keep tenants and property safe.

And on top of all of this, they would be required to understand how to consider a new legal standard. They would have to establish a legally sufficient justification relating to criminal history information by proving that their screening standards are substantial, legitimate and nondiscriminatory without any guidance as to what those terms mean. Owners would even be required to understand the “nature and severity” and the appropriate amount of time that has passed since conviction, even though they are not given any specific guidance as to what those factors mean.

Finally, one very topical issue DFEHC is considering is adopting a regulation concerning emotional support animals.

Unfortunately, the proposed regulation does not curb rampant support animal fraud. It does not adequately address verification requirements including: 1) assessment by a licensed medical or mental health professional; a prescription by a licensed professional; the need for the animal does not need to be current; 2) the verification process does not discuss what additional information an owner can ask for and from what sources. The vagueness is concerning because of risk of asking the wrong question and the potential for a discrimination lawsuit. There is concern that the draft regulations do not adequately consider the quiet enjoyment of other tenants, nuisance issues and the safety and health of other tenants.

Get Involved

Rent control, price control, affordable housing mandates for new housing, tenant screening, use (or abuse) of credit reports and occupancy limits represent just some of the major issues rental property owners are confronted with today.

We hope you will join us in supporting the industry. As one notable industry leader has said, “Join us at the table or you will be on the table.” 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 ron@calpcg.com.

Solar Water Heating. Good for your property.

Good for your bottom line. Rebates good through 2017.

From showers and laundry to dishwashing and maintenance, your property uses a lot of hot water.

If you’re looking for a way to cut your property’s water heating bills by 50%, install a solar water heating system. With solar water heating, you get substantial benefits that make your property more sustainable: • Significant rebates available for a limited time—properties received $50,000 on average in 2016 • Proven technology that lasts up to 25 years for long-term savings and reduction to your carbon footprint Act now before the rebates expire this year. Learn more with our free Solar Water Heating Guide at pge.com/hotwatersavings.

“PG&E” refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation, 77 Beale Street, San Francisco, CA 94105 ©2017 Pacific Gas and Electric Company. All rights reserved. These offerings are funded

by California utility customers and administered by PG&E under the auspices of the California Public Utilities Commission. CST-0317-7995

FEATURE

Carving O In the bustling East Bay apartment market, the opportunities to make a profit are plentiful. BY ANNE BRUFF

22 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

Out Profits A

partment sellers are taking advantage of the incredible demand on apartment buildings, especially in Oakland. In the first four months of 2017, of the 23 building that sold priced over $1 million, eight were onmarket listings, and 15 were off-market deals.

On or off market, apartment buildings are selling at record-high prices. There are agents out there who are bringing off-market properties to potential buyers and telling the buyers they will need to pay the procuring broker a commission because sellers do not want to pay a commission. Such is the demand for apartments in Oakland!

Waiting for the Right Opportunity

Experienced property owners are waiting on the sidelines for the next market turn. Many invested during the last downturn and are pleased with properties they bought at a deep discount. Some have refinanced at favorable rates and are sitting on cash waiting for the right opportunity. Long-time owners are also reaping the rewards of prudent management that enabled them to retain ownership during the foreclosure crisis. The results of more stringent rent control and increased cost are affecting them less than newer owners that have paid between a 3 - 4% Cap rate.

Small apartment flippers have carved out a profitable share of the market. Contractors who can find rundown buildings in desirable neighborhoods are adding high-end finishes. I represented a buyer coming out of an exchange who paid all cash for a renovated duplex in North Oakland. The seller had paid $750,000

for the duplex, which he sold six months later for $1.1 million. Even taking into consideration the foundation-up renovation, there was a considerable profit for the developer, and the buyer was happy to get a turnkey property that will provide a modest return.

Repurposing Buildings

Another active segment of the market is the repurposing of existing buildings. In a development in which I am representing the buyers, the sellers spent five years getting neighborhood approvals to convert a boarded up retirement home into 49 residential units.

The sellers are selling at a profit, and the buyers are taking advantage of a project that is shovelready.

Vacant Land

Vacant land is also attracting investors. In the last several years investors have been buying vacant land and going through the entitlement process, either selling the entitled property or developing the projects themselves. For example, 3020 San Pablo in Berkeley—a 9,000 square foot commercial lot—sold in 2015 for $1.5 million. It sold in 2016, entitled for 29 units, for $2.9 million. Another 6,000 square foot lot in Jack London Square purchased in 2015 by one of my clients has been entitled for 20 luxury condominiums and the developer is ready to start construction this summer.

Depressed Rents?

Depending on which statistics you read, there are between 2,700 and 3,000 units currently ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 23

MAISEL PROPERTY MANAGEMENT, Inc. Serving Oakland • Level of service and fees tailored to your needs.

• We can locate qualified tenants for your vacancies.

5942 MacArthur Blvd. • Experienced with Section 8 tenants.

Oakland, CA 94605 • Over 35 years of experience.

• Residential-Property Management in Oakland.

MPM

EAST OAKLAND

Specialist!

510-562-8600

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

PRICE

TOPICS

THURSDAY, JUNE 6; 10:00 A.M. - 11:00 A.M.

Jill Broadhurst, CCRM, EBRHA Free to members only An informal discussion on preparing for your Oakland rent board hearings and petitions

Small Property Owners Roundtable D ATE & TIME M ODERATOR

PRICE

TOPICS

WEDNESDAY, JUNE 7; 10:00 A.M. - 11:00 A.M. EBRHA Staff Free to members only An informal discussion on management issues and solutions

Member Meeting D ATE & TIME SATURDAY, JUNE 17; 10:00 A.M. - NOON

PRICE Free to Members Only TOPICS Government Policy Committee Progress Report: Accomplishments and Next Steps

Legal Q&A — Charles Alfonzo, Burnham Brown

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. REGISTRATION REQUIRED 24 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

under construction in Oakland, and another 7,000 to 12,000 units in various stages of development. Will these extra units depress rents in Oakland? While rents seem to be leveling out after a 60% increase in the last several years, there are reasons to think that there will not be a substantial downturn. To start, all the new apartments coming on the market will either be at the high end of the rental market or some type of subsidized housing. Neither of those two categories will be in direct competition with existing apartments. Units that have been controlled by various rent control ordinances will continue to go up to market rate upon turnover, which will generate tremendous increases for their owners.

Job Growth

The other dynamic is continued job growth in the East Bay. In the first quarter of 2017 alone, 12,000 new jobs were created. With continued job growth, the East Bay will still be short of adequate housing for some time to come. That in turn should keep rental units full at good rates in the foreseeable future, providing a good return for various kinds of investors. RH Anne Bruff has been a Commercial Real Estate Broker for over 30 years and has been president of her own firm, Anne Bruff & Associates, since 2005. Anne’s clients include investors, developers and business owners. Anne’s goal for her clients is to build wealth through real estate. She can be reached at anne@annebruff.com.

Upgrade Your Bathrooms with a New Acrylic Bath or Shower Enclosure System in One Day*!

*in most cases

COMPLETE INSTALLATION SERVICE AVAILABLE

Acrylic bath tub enclosure, including steel/porcelain tub, starts at $1,324 Acrylic shower enclosure, including shower pan, starts at $1,464 Acrylic bath tub enclosure walls only start at $849 (Shower walls start at $899)

Made in USA since 1993 TUB ENCLOSURE

SHOWER ENCLOSURE

One Day installation No grout to trap mold & mildew Integrated soap dish Interlocking leak proof corner seams Reinforced, molded acrylic panels, 3/4” thick, that look like 4” ceramic tile with simulated grout lines

Prices are subject to change without notice

CALL FOR A FREE ESTIMATE OR VISIT OUR SHOWROOM OPEN WEEKDAYS 9-4:30 26247 Research Rd, Hayward, CA 510-785-2600 Toll free: 888-228-4925 www.AmericanBathind.com

American Bath Enterprises, Inc., manufactures all of its acrylic products, but is not a licensed contractor. All of the installations work shall be performed by licensed contractors experienced in the installation of the products of American Bath Enterprises.

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 25

FEATURE

Hack-Proof Your Life Protect your business, yourself and your child online with these important steps. BY TERRY ALLEN

26 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

O

ne positive take away from the recent Google Docs phishing attack is that cyber security is on people’s radar again. A week hardly passes without news of cybersecurity threats, credit card and identity theft.

We can become de-sensitized to the very real cyber threats we face each day. Even if you haven’t experienced this for yourself, almost all of us know someone who has.

Recently, nearly one million Gmail users received a phishing email containing a malicious link disguised as a shared Google Doc. This particular phishing attack was highly sophisticated: the message came from someone in the recipient’s contact list and contained legitimate Google icons and language.

Google removed the fake pages and applications within one hour of discovery, but copycat attacks could still occur, and it is yet unknown if information gathered via this attack is being used maliciously.

The days are long gone where we can mindlessly click open every email in our inbox and open every attachment. We have to remain vigilant at all times to guard our own security as well as the security of others who are in our contact lists.

Apart from email vulnerabilities, there are three other key areas to consider: credit card and identity theft, ways to protect small businesses, and steps to keep your kids safe online.

Credit Card and Identity Theft

About a year ago, I got a call from a client who let me know that more than a half a dozen accounts had been opened up in her name. As she began her investigation, she learned that multiple credit cards had been opened, as well as bank accounts with debit cards issued. Thankfully, no money had been transferred from her legitimate checking and savings accounts, but understandably so, she was appalled that someone not only had access to enough of her private information to open accounts, but that the banks and credit card companies opened accounts without her approval. I’m sorry to say that she never really did identify the source of her security breach.

Unfortunately, with all of the data breaches that have occurred in the past few years (Target, Anthem Blue Cross, Sony Pictures, U. S. Postal Service, Staples, Kmart, Dairy Queen, Home Depot, P.F. Changs, JP Morgan…the list goes on) it’s more likely than not that your personal information has been compromised. According to a Gallup Poll, 27% of Americans say their credit card information has been stolen in the last year, and sadly, they are in the category of consumers who know they’ve been hacked. There are countless others that have been hacked but are unaware.1 So, what can the average person do to improve their protection against fraud? Here are 5 ways to get started: 1. Create secret “verbal passwords” on your bank and credit card accounts — Verbal passwords on all of your credit card and bank accounts will save you time, money, sanity and future chaos. Everyone enters a numbers based key-code password when withdrawing money at the ATM. Some, though not all, retail stores request an ID when you make a credit card pur-

chase at the register. So why don’t banks require a password when you make a transaction at the teller?

Walk into your local bank and ask to speak with the branch manager in a private office. Ask them to place a “verbal passcode” on all over-the counter and phone request withdrawals, newly issued bank cards and even transfers. If the verbal password is not given, no information or transaction may proceed.

2. Shield yourself from the “magic wand” with an RFIDprotected wallet — While shopping in crowds, or at a busy restaurant, sporting event or concert, you can unknowingly expose yourself to a fraud device known as the “magic wand.”

Wanding is the process by which all your credit information can be stolen by a $20 device that is able to read, record, and save it all in an instant. This information is then used to illegally create multiple cards to be sold. You can stop this scam from happening by shielding your cards with an Radio Frequency Identification Device (RFID) protected wallet.

3. Protect your credit like a pro — If you really want to control your credit file, freeze your account at all three of the credit bureaus: Equifax, Experian and TransUnion. This is the best way to ensure that your credit is protected. Freezing your credit gives you the power to lock or unlock your credit file.

Once locked, no one can open a credit card account—not even you. If you want to open an account, you will have to lift your freeze before doing so.

4. Never let your credit card leave your sight. — When you’re shopping or eating at a restaurant, think twice before you hand over your credit card for payment. When your credit card leaves your hand and is out of your field of vision, the information can easily be stolen via a smart phone camera or mini card reader called a skimmer. The best defense is to be present when your card is swiped, or pay cash.

5. Avoid making in-store credit card applications. — I love to save money, especially during special promotions. And we know that cashiers at almost every store are pressured to sell you on opening a store credit card to receive an immediate discount.

But you should resist! Who is handling your application once it has been given to the sales associate or cashier? Your information may be exposed to many people who are not as keen on protecting your privacy as you are. If you want to open a store credit card, call the company’s credit department to do so.

Protect Your Small Business From Hackers

As a small business owner, you have a lot on your plate. In case you are asking, rental property owners are indeed small business owners! It’s important to start educating yourself on another issue threatening your business, because identity thieves are branching out. They are not just targeting individuals anymore.

Think about it: a business owner normally has deep credit lines, multiple users and many financial transactions, making it easier for thieves to operate. Sadly, many small business owners are simply too busy to pay close attention to every transaction and erroneous charges can go unnoticed for a while. Another area of danger is that many times, the small business owner has their ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 27

includes their birth certificate and social security numbers, as well as any other documents that contain personal information.

Protect their social security numbers. Before you give it out, ask why someone needs it, how they will keep it safe, and how they will dispose of it. You should also inquire if there is another personal identifier that may be used instead. For example, some schools have begun to use randomly issued ID numbers, rather than social security numbers.

Check with your children’s school. Some schools share student information with third parties. You have the right to opt out of having a child’s information in directories or online.

Create a joint bank account. When setting up a child’s bank account, make sure it is a joint account. This ensures that no one can access the account without your approval.

Opt out of marketing materials. When creating a bank account for your child, you should also opt out of receiving marketing materials in their name. Children should not be receiving credit card offers. A pre-approved credit card offer addressed to your child is a gold mine for identity thieves. If your child begins to receive pre-approved offers in the mail, that could be a sign of identity theft. Check your child’s credit report and call the company that sent the materials to immediately remove your child’s name from their mailing list.

Monitor your child’s Internet usage. Until your children are at an age where they understand the dangers of the Internet, you should monitor what they are doing online. Also, maintain access to their accounts, set up parental controls, and read privacy policies before signing your child up for any online account.

Teach your child to be safe online. While monitoring your child’s online presence is important, they should also be taught how to keep their information safe on the Internet. Explain to them that they should never visit any sites without permission, or share any personal information online, including pictures, name of friends, relatives, school, etc.

Update your child’s electronic devices. Keep any computer or tablet your child uses up to date with antivirus, firewall and security software.

“Online security is a topic that is ever evolving, and unfortunately, it seems the thieves always seems to stay one step ahead.” business line of credit tied to their personal credit, so if a thief gains access to one, he has access to the other.

A National Cybersecurity Alliance study found that one in five small businesses fall victim to cybercrime each year, with 60% of those victims going out of business within 6 months.

Don’t become a part of that statistic. The two main ways that thieves steal business identities is through impersonation and hijacking. In both cases, a thief holds themselves out as “you” to gain access to your customers. They even create a fraudulent business, website, and may create pirated products to sell under your good name.

10 Steps to Keep Your Business Safe

Below are effective rules that small business should follow to keep their information safe: 1. Keep your business’s sensitive information in a secure place and closely monitor who has access to it.

2. Educate all employees on business identity theft and tell them not to open suspicious emails or attachments/links.

3. Give sensitive information to only those who need it.

4. Make sure all employees are using secure user names and passwords.

5. Monitor business credit reports.

6. Set up two-factor authentication with your bank for wiring money 7. Keep your computer software up to date. This includes the devices of employees who work from home.

8. Secure your wireless network. Secure your router with WPA2 security technology.

9. Register all versions of your domain to keep them out of hacker’s hands (.com, .net., .info., .org, etc.)

10. Set up Google alerts for your business to keep an eye out on where your business name is popping up online.

Child ID Theft—8 Steps to Keep Your Kids Safe

The latest target of thieves is not you, but your children. Young people live their lives online, and for someone intent on committing cyber crime, it really is like taking candy from a baby.

Minors are unsuspecting and easily exploited. As in every other area of their lives, it is up to their parents or guardians to protect them.

An estimated 500,000 children are affected by identity theft each year. Children who have their identities stolen can spend the rest of their lives dealing with complications regarding their personal information and identity. Fortunately, there are measures you can take now to prevent this: Keep all of your child’s personal documents locked up. This 28 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

Stay Alert!

Being aware is the first step in protecting your business, yourself and your child. This is a topic that is ever evolving, and unfortunately, it seems the thieves always seems to stay one step ahead.

However, usually, the thief will go for the low hanging fruit.

They like to get in and out quickly, so if you’ve set up enough deterrents, they may move on to an easier target. RH “Data Breach Tracker: All the Major Companies That Have Been Hacked”, Time, 03/18/15.

1.

Terry Allen, CFP®AWMASM of Enhance Wealth Advisors® is a Certified Financial Planner™ (CFP®), and Accredited Wealth Management AdvisorSM (AWMASM). She can be reached at 925-932-8609 or info@enhancewa.com.

UPDATED CURRICULUM!

Invest in your career!

CERTIFIED APARTMENT MANAGER — ONLINE Earning your CAM allows you to demonstrate that you have the knowledge and ability to manage an apartment community and achieve owners’ investment goals.

Presented by:

You’ll learn about: • Occupancy rates

• Contractors and vendors

• Comprehensive marketing plans

• Recruitment, hiring, orientation, and training of high-caliber employees

• Sales team management and product readiness

If you’re a community manager or experienced assistant manager we recommend this course!

• Equitable treatment of current and potential residents • Resident retention and the maintenance of a positive company image • Consistent and ongoing resident communication • Positive resident service and issue resolution • Enforcement of company policy in compliance with laws and regulations

• 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

• Property inspections

• Maximizing net operating income

• Preventive maintenance programs

• Reporting property performance honestly and accurately

• Service request process • Apartment turnover process

For just $815*, you can earn your CAM credential on a schedule that works for you!

For more information, visit naahq.org/CAM

*Member price ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 29

COLUMN

1031 Exchanges

Potential Changes to Tax Laws What do tax reform proposals mean for Section 1031? BY MARY CUNNINGHAM & TERESA MOSS FLUEGEL

I

n June of 2016, the House Republicans published their blueprint for tax reform, A Better Way, a document that explains the broad contours of what tax reform may look like.

According to the blueprint, the Republican objective is to make the tax code simpler, flatter and more fair. Some of the highlights include: 1. Reducing the number of individual income tax rates from seven to three.

The three new brackets will be 12%, 25% and 33%.

2. Repealing the estate tax and the generation-skipping transfer tax.

3. Imposing a small business income tax maximum rate of 25% (instead of the top 33% individual rate).

30 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

long be able to deduct their net business interest expense. The rationale is that immediate expensing is a more beneficial and neutral substitute for the interest expense deduction associated with debtfinanced investments.

The blueprint does not address how a transition might work, so it is unclear if currently depreciable assets will continue to be depreciated while only newly acquired assets will be immediately expensed, nor is it clear if the interest expense deduction on encumbered assets will continue, be phased out or be immediately eliminated.

What this proposal for tax reform means for Section 1031 like-kind exchanges (LKEs) is unclear. Members of the House Ways & Means Committee believe that with lower rates and immediate expensing, LKEs will not be needed.

We believe that Section 1031 is compatible with the blueprint and helps land investors—farmers and ranchers specifically—who may be disproportionately disadvantaged if they are unable to expense land, unable to exchange land, and denied an interest expense deduction.

Further, without LKEs, there is likely to be a lock-in effect in the real estate sector. Real estate owners will be reluctant to sell fully expensed assets and incur negative tax consequences. LKEs encourage investment and improvements to properties, bringing jobs and economic activity to communities.

If Section 1031 is important to you and your business and you’d like to express your support or concerns, please visit www.taxreform.com to send a letter to your elected representative. RH

4. Reducing the corporate income tax rate to 20%.

5. Reducing capital gain and dividend tax rates so they are one-half of the individual income tax rates, namely 6%, 12.5% and 16.5%.

“What this proposal In order to spur ecofor tax reform means nomic growth, the bluefor Section 1031 print proposes to allow businesses to immediately like-kind exchanges expense their capital asset (LKEs) is unclear.

Members of the acquisitions, including House Ways & Means improvements to real Committee believe property (but not land), with unlimited loss carry- that with lower forwards. In exchange for rates and immediate expensing, LKEs will the immediate expensing not be needed.” benefit, taxpayers will no

Mary Cunningham is President of Chicago Deferred Exchange Company (CDEC), and is responsible for a staff dedicated to providing trust and consulting services to attorneys, accountants, real estate and tax professionals nationwide. Teresa Moss Fluegel is Senior Vice President of CDEC. To learn more about CDEC, go to www. cdec1031.com.

License No. 797467

Lic. #414359

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

Seismic & General Contractors

RESIDENTIAL & COMMERCIAL *Plumbing Repairs *Fixtures Installations *Water Service Replacements *Sewer Diagnostic Videos

Conform To Soft Story Apartment Building Seismic Ordinance San Francisco, Alameda, Oakland & Berkeley

*Trenchless Sewer Replacements *Automatic Seismic Gas Valves Installations *Drain Cleaning and Diagnostics *Tankless Hot Water Heaters

• Successful track record of seismic retrofitting numerous soft-story apartment buildings in the Bay Area.

•

construction—all under one company.

• Guaranteed approval of engineering and construction in conformance to Soft Story Ordinance.

• Screening, evaluation, engineering, construction, city sign-off The Plumber Referred by Your Friends!

(510)843-6904

For inquiries, please contact Homy Sikaroudi, PhD, PE

www.albertnahmanplumbing.com

Beacon Properties East Bay Property Management & Brokerage Services Since 1990

EARTHQUAKE AND STRUCTURES, INC. Est. 1984

Structural • Civil • Construction Management

Premier Engineering Services in the Greater Bay Area  Soft-story screening and report per city ordinances

• We add value to buildings

 Seismic strengthening, foundations, and retaining walls

• Experienced and informed • Fully computerized

 Construction management and oversight

• Integrity and care

 Over 5,000 City approved construction projects.

Carlon Tanner, Owner/Broker

 Knowledgeable, reliable, and insured  Over 40 years of experience

466 40th Street Oakland, CA 94609 Tel 510-428-1864 Fax 510-601-1917 beacprop@pacbell.net

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

(510) 601-1065 (415) 835-6754

bk@esiengineers.com www.esiengineers.com ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 31

COLUMN

esq. & a

Gang Activity Why gang affiliation alone may not justify evicting a problem tenant. BY VARIOUS AUTHORS

Q

I suspect that my tenant is attracting gang activity to his unit, and I fear for the safety of my other tenants. What is my responsibility to protect my tenants and how do I proceed with the situation?

A

A rental property owner has an obligation to ensure the quiet enjoyment of the premises for all occupants. If an owner is aware and/ or placed on notice that an individual’s misconduct is potentially harmful to others, the owner should take steps to prevent such misconduct from occurring. Failure to do so could result in the owner being civilly and financially liable for the harm done. Courts may impose liability based on contract, covenant of quiet enjoyment, implied warranty of habitability and/or tort principles.

Under the tort theories of negligence and premises liability, an owner has a duty to his tenants to keep the premises safe and warn of any dangerous conditions, such as criminal activity on the premises. If an owner has notice of criminal activity, he has a legal responsibility to take steps to secure the common areas. Failure to take reasonable steps to prevent harm to the tenants may result in liability.

Accordingly, if an owner believes that a tenant is involved in gang-related conduct, an owner should immediately notify the police and take steps to retain an attorney and seek the removal of the person from the premises. However, 32 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

gang affiliation alone is probably not sufficient. Rather, it is more important for the owner to be able to identify actual disturbances, threats, harassment, criminal activity, loitering or misbehavior that would justify the removal of the individual for either engaging in illegal conduct or conduct of a nuisance character. For example, if the tenant and his friends are loitering in the building’s common areas at all hours of the night, drinking alcohol, causing other building occupants to be kept from sleeping due to the noise and disturbances, the owner should first give notification to cease said conduct, and if it continues, serve a formal notice to cure or quit for nuisance. Should the disturbance remain unabated, then the owner can in good faith proceed with an eviction. —DANIEL BORNSTEIN AND LIANA AYRAPETYAN

Q

When filling out a 60-Day Notice, I used an incorrect apartment number. Do I need to reissue a fresh 60-Day Notice with new dates or can I issue a corrected notice and use the original dates?

A

Your question doesn’t say if the notice is to increase the rent or terminate the tenancy. But in either case, the answer is the same. In Oakland, San Francisco and Berkeley, you start over.

An eviction action in court is a special proceeding with special rules. The time frames for responding to an unlawful detainer complaint, for responding to discovery and for proceeding to trial are all expedited. In exchange for this speedy proceeding, the owner is required to strictly comply with the unlawful detainer laws.

What this really means is that notices for things like nonpayment of rent, breach of a covenant and the like, must be perfect. No mistakes. Most judges in rent control jurisdictions strictly construe the unlawful detainer statutes — especially when a strict construction will benefit the tenant.

But many judges have taken things too far. It is understandable how a mistake in calculating rent due would render the notice defective. But if you have a tenant’s name on the notice, what does it matter if the apartment number is incorrect? If the notice is properly served, it should be valid and enforceable. After all, it is the tenant and not the apartment number that is served with the notice.

A colleague of mine just had a case thrown out of court because he misspelled “December” on a three day notice to pay rent or quit. He spelled it “Decmber.” The judge, not the tenant’s attorney, spotted the typo and claimed the notice was defective. Bad decision!

After paying the other side’s legal fees, the owner will have to start over by serving a new notice on the tenant.

So long as we have judges with rent control mentalities, owners and their attorneys will have to be extra careful with proof-reading all notices. And please, use that spellcheck button at the top of the screen! —CLIFFORD FRIED RH The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem.

Daniel Bornstein and Liana Ayrapetyan are attorneys with Bornstein Law. They can be reached at 510-8360110 or www.bornstein.law.

Clifford Fried is an attorney with Fried & Williams LLP and can be reached at (510) 625-0100 or www. friedwilliams.com.

“If an owner is aware that an individual’s misconduct is potentially harmful to others, the owner should take steps to prevent such misconduct from occurring.”

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

Liz Hart

510-813-5440

LEFTOVERS?

Pass Them On. Or Come Shop.

Tenants leave things?

We receive discards and sell them for reuse. No promises before seeing. We also pick up. 3 acres, well organized.

URBAN RE To End the Age of Waste

900 Murray St nr Ashby/7th, Berkeley 360 days/yr until 7:00PM. Receiving closes 5:00PM. 510-841-SAVE

ASSISTING PROPERTY OWNERS WITH THEIR LEGAL NEEDS SINCE 1975.

Effective. Efficient. Economical.

510-839-2067 TheEvictors.com

http://urbanore.com

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 33

COLUMN

the green sheet

Reduce Water Heating Energy Use in Your Building ACCORDING TO THE CALIFORNIA ENERGY COMMISSION’S EXISTING BUILDING ENERGY EFFICIENCY ACTION PLAN,

water heating is the largest user of energy in multifamily buildings.

It accounts for approximately 39% of the sector’s total energy consumption. Property owners often pay for the cost of water and water heating at residential rental properties, so improving water heating efficiency can significantly reduce operational costs.

There are essentially three ways to reduce the energy use associated with heating water in your building: 1) Heat the water more efficiently. High efficiency condensing and heat pump technologies can help reduce the energy required to meet water heating needs. High efficiency water heaters use 10% to 50% less energy than standard models.

Heat pump water heaters can save even more.

2) Minimize the heat loss from the water that has been heated. Up to 65% of the energy used to heat water can be lost by the time the hot water reaches the tap.

Insulating tanks and exposed hot water pipes can reduce heat loss.

For central systems, temperature or timing controls can minimize water unnecessary circulating through the pipes and losing heat.

3) Reduce hot water demand.

Installing low-flow showerheads, thermostatic shut-off valves, and high-efficiency clothes washers can substantially reduce the amount of hot and cold water used in units.

There are other no and low-cost adjustments that can help reduce 34 RENTAL HOUSING

| JUNE 2017 |

the energy consumption associated with water heating as well, including maintenance, addressing water leaks, and replacing degraded and failed components.

Fortunately, there are programs out there that can help multifamily property owners approach water heating energy savings from all angles. The resource list at right includes programs available to help with water heating upgrades.

EBRHA members are encourages to take advantage of these resources. RH

StopWaste is a public agency responsible for reducing the waste stream in Alameda County. StopWaste helps local governments, businesses, schools and residents reduce waste through source eduction and recycling, market development, technical assistance and public education. To learn more, go to www.stopwaste.org.

ebrha.com

water heating upgrade programs RECYCLING & DISCARDS MANAGEMENT

Bay Area Multifamily Building Enhancements (BAMBE) www.bayareamultifamily.org 888.352.7457 PG&E Multifamily Upgrade Program (MUP) www.multifamilyupgrade.com 888.352.7457 California Solar Initiative (CSI) www.pge.com/csithermal 87 7.74 3 . 41 1 2 PG&E Marketplace www.marketplace.pge.com East Bay Municipal Utility District WaterSmart (EBMUD) waterconservation@ebmud.com 866.403.2683

other information & resources REBATE PROGRAMS

EBMUD 866.403.2683 | www.ebmud.com PG&E 800.933.9555 | www.pge.com/res/rebates LOCAL GREEN ORGANIZATIONS

B.A. Green Business Program 510.567.6770 | www.greenbiz.ca.gov Build It Green 510.845.0472 | www.builditgreen.org Recology 415.875.1000 | www.recology.com StopWaste.Org 877.786.7927 | www.stopwaste.org FREE WEATHERIZATION PROGRAMS

Rising Sun Energy 510.665.1501 x17 Spectrum Community Services 510.889.0921 BO - Enterprises 408.354.1900

EBRHA.COM | 510.893.9873

Shopping for a mortgage?

Jain Williams, Agent State Farm Agent jain@jainwilliams.com Oakland, CA 94619 Bus: 510-530-3222 NMLS #139716, NMLS MLO #917830 MLO License #CA-DBO917830

We have a great selection.

As life changes, so do your needs. Let State Farm Bank® help with a mortgage that fits your life and your budget. Let us help you make the right move. Bank with a Good Neighbor®. CALL ME TODAY FOR MORE INFORMATION.

Some products and services not available in all areas.

1001306.1 State Farm Bank, F.S.B., Bloomington, IL

ENOUGH IS ENOUGH!

Protect Your Rental Property Rights!

GO TO EBRHA.COM/LEGAL-FUND TO CONTRIBUTE TO THE LEGAL FUND TODAY!

Bay Area Contract Carpets, Inc. Competitive Pricing Family Owned and Operated for Over 30 years Free Estimates Property Management Specialists 100’s of Rolls of Carpet and Vinyl in Stock Licensed, Bonded, and Insured 15,000 sq foot showroom and warehouse Fast, Professional, Guaranteed Installation www.bayareacontractcarpets.com

(510) 613-0300

Additional Discounts for RHA Members

Serving the East Bay

APPLIED WATERPROOFING SYSTEMS

Providing Waterproofing Services Since 1985

Commercial & Residential Buildings Balconies Walkways Garage Coatings

Decks Patios Driveways

Call Neal Golding

(510) 452-3666

nlgolding@pacbell.net LIC#552820

www.appliedwaterproofing.com

FRANK FIALA ROOFING, INC. All Types of Roofing & Repairs 15, 20, 25 Year Manufacturer’s Guarantee

Title 24 Compliant Roof Systems Commercial • Industrial • Residential

(510) 582-6929 (925) 484-0124

www.ffialaroofing.com Providing Hassle-Free Laundry Rooms to the Multifamily Housing Industry Since 1947

Lic. #686707

800.421.6897 www.washlaundry.com

ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 35

community calendar EVENTS & CLASSES

june

july

TUESDAY, JUNE 6 Oakland Rent Board Roundtable An informal discussion on preparing for your rent board hearings and petitions Moderated by Jill Broadhurst, CCRM, EBRHA Free to members only, 10:00 a.m. - 11:00 a.m.

WEDNESDAY, JUNE 7 Small Property Owners Roundtable An informal discussion on management issues and solutions Moderated by Jill Broadhurst, EBRHA, CCRM Free to members only, 10:00 a.m. - 11:00 a.m.

WEDNESDAY, JUNE 7 The Keys to Locking Out Lawsuits and Lowering Taxes Presented by Legally Mine Members: $39; Non-Members: $69 2:00 p.m. - 3:30 p.m.

WEDNESDAY, JUNE 14 Financial Planning: Managing Your Own Destiny Presented by Terry Allen, CFP®, AWMASM, Enhance Wealth Members: $39; Non-Members: $69 6:00 p.m. - 7:30 p.m.

SATURDAY, JUNE 17 EBRHA Member Meeting • Government Policy Committee Progress Report: Accomplishments and Next Steps • Legal Q&A—Charles Alfonzo, Burnham Brown 10:00 a.m. - Noon WEDNESDAY, JUNE 21 Rental Property Owner 105 (RPO 105) Presented by EBRHA Staff Members: Free; Non-Members: $69 2:00 p.m. - 3:30 p.m.

THURSDAY, JUNE 29 Three Skills You Need to Expand Your Investment Portfolio Presented by Doug Brien, Mynd Co-Founder and CEO As a real estate investor, recognizing your strengths and weaknesses is vital to increasing your bottom line. It’s much more lucrative to spend your time and energy focusing on what you do best, while building a trusted team to handle the rest for you. It’s also important to understand the changing real estate landscape and know what tools and technologies are available so your investments can perform at their highest potential. Join real estate industry pro, Waypoint Homes and Mynd Co-Founder and CEO, Doug Brien, to learn what he’s doing to expand his personal portfolio.

TUESDAY, JULY 4 EBRHA Office Closed THURSDAY, JULY 6 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.

WEDNESDAY, JULY 12 All About Fair Housing Laws Presented by Angie Watson-Hajjem, ECHO Housing Members: Free; Non-Members: $69 2:00 p.m. - 3:30 p.m.

SATURDAY, JULY 15 EBRHA Member Meeting • Speaker TBD • Legal Q&A— Jason W. Mauck, Esq., Ericksen Arbuthnot 10:00 a.m. - Noon TUESDAY, JULY 18 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.

TUESDAY, JULY 25 (DAYTIME SESSION) The Benefits of Solar for Your Property Presented by Alexandra Patey, Center for Sustainable Energy Free to Members and Non-Members 2:00 p.m. - 3:30 p.m. (Lunch provided) TUESDAY, JULY 25 (EVENING SESSION) The Benefits of Solar for Your Property Presented by Alexandra Patey, Center for Sustainable Energy Free to Members and Non-Members 6:00 p.m. - 7:30 p.m. (Dinner provided) THURSDAY, JULY 27 Rental Property Owner 106 (RPO 106) Presented by Jill Broadhurst, CCRM, EBRHA Members: Free; Non-Members: $69 2:00 p.m. - 3:30 p.m.

Free to Members and Non-Members 6:00 p.m. - 7:30 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.

36 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

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

2017-18 (2.3%) A CPI increase of 2.3% becomes effective on July 1, 2017. 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 ‘17 - JUNE 30 ‘18 . . . . . . . . . 2.3 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 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

Useful Life of Improvement* *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

|

JUNE 2017

|

RENTAL HOUSING 37

vendor directory — CONTACTS, PRODUCTS & SERVICES 24 HOUR LIVE ANSWERING SERVICE

Direct Line Tele Response Beth Devine | 510-891-3900 www.directlineanswers.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 Martin Friedrich, CPA 510-895-8310 www.besttaxcpa.com

Law Offices of Bill Ford Bill Ford | 415-306-7840 www.billfordlaw.com

Legally Mine Tyson Rollins | 801-770-1430 tyson@legallymineusa.com

Law Offices of Brent Kernan Brent Kernan | 510-712-2900 bkernan@aol.com

Miller Property Law Inga Miller | 925-402-2192 www.millerpropertylaw.com

Law Offices of Elaine Lee Elaine Lee | 510-848-9528 www.elaineleeattorney.com

Richards Law John Richards | 925-231-8104 www.richards-legal.com Zacks, Freedman & Patterson, PC Lisa Padilla | 415-956-8100 www.zfplaw.com

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

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 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

Zacks, Freedman & Patterson, PC Lisa Padilla | 415-956-8100 www.zfplaw.com ATTORNEYS — LAND USE/CONDO CONVERSION

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

ASSOCIATIONS

BOMA Oakland/East Bay Julie Taylor, CAE | 510-893-8780 www.bomaoeb.org

ATTORNEYS — REAL ESTATE/CORP.

Beckman Blair LLP Oakland/Berkeley Association of Realtors Nancy Ly | 415-871-0070 www.beckmanblairllp.com Davina Lara | 510-836-3000 oaklandberkeleyaor.com Burnham Brown Charles Alfonzo | 510-835-6825 Oakland Chamber of Commerce www.burnhambrown.com Barbara Leslie | 510-874-4808 www.oaklandchamber.com Ericksen Arbuthnot ATTORNEYS — EVICTIONS/PROPERTY OWNER DEFENSE

Jason Mauck | 510-832-7770 www.ericksenarbuthnot.com

Beckman Blair LLP Nancy Ly | 415-871-0070 www.beckmanblairllp.com

Fried & Williams LLP Clifford Fried | 510-625-0100 www.friedwilliams.com

Bornstein Law Daniel Bornstein | 510-836-0110, x1007 www.bornsteinandbornstein.com

Harding Legal Elva Harding | 415-967-7570 www.edhlegal.com

Burnham Brown Charles Alfonzo | 510-835-6825 www.burnhambrown.com

Jack Schwartz, Attorney at Law Jack Schwartz | 650-863-5823 jwsjr1220@comcast.net

Ericksen Arbuthnot Jason Mauck | 510-832-7770 www.ericksenarbuthnot.com

Law Offices of Bill Ford Bill Ford | 415-306-7840 www.billfordlaw.com

Fried & Williams LLP Clifford Fried | 510-625-0100 www.friedwilliams.com

Law Offices of John Gutierrez John Gutierrez | 510-647-0600, x2 www.jgutierrezlaw.com

38 RENTAL HOUSING

| JUNE 2017 |

ebrha.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 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 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 Sincere Home Decor Hei Chan | 510-835-9988 www.sincerehomedecor.com Urban Ore Marylou Van | 510-841-7283 www.urbanore.com 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

vendor directory CLEANING

Lintz Cleaning Joshua Lintz | 415-264-8780 www.lintzcleaningsf.com The Sisters Home Services Cinara Neukirchen | 925-876-4286 www.thesistershomeservices.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 Reedco Building Innovations Beth Wilson | 510-283-5257 www.reedcobuilding.com Servpro of Lafayette/Moraga/Orinda Jenny Villena | 925-299-1323 servpro9542@sbcglobal.net Silicon Valley Builders Group Chris Maune | 408-627-4177 www.svbuildersgroup.com 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

Servpro of Lafayette/Moraga/Orinda Jenny Villena | 925-299-1323 servpro9542@sbcglobal.net DOORS & GATES

Urban Ore Marylou Van | 510-841-7283 www.urbanore.com HEATING & AIR CONDITIONING

Bay to Bay Garage Doors Robert Bruce | 925-872-5324 www.baytobaygaragedoors.com

Albert Nahman Plumbing & Heating Albert Nahman | 510-843-6904 www.albertnahmanplumbing.com

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

San Francisco Heating and Cooling Pablo Richards | 415-286-2540 sfheatingandcooling@yahoo.com

ELECTRICIANS

Momentum Electrical Contractors Tom Grealis | 888-280-0794 www.momentum-electric.com Thomas Electric Co. (TEC) Thomas Hurtubise | 510-814-9387 www.tecelectric.net ELEVATOR REPAIRS

Paramount Elevator Corp.

Mark Pipoly | 510-835-0770 www.paramountelevator.com FINANCIAL PLANNING

Enhance Wealth Advisors Terry Allen, CFP®, AWMA SM 925-932-8609 info@enhancewa.com FIRE PROTECTION

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

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

Oakland Housing Authority Leased Housing | 510-874-1500 www.oakha.org HANDYMAN SERVICES

APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com Christopher Simmons 510-776-2697 c2thejay44@gmail.com

ARC Water Damage Nina Lauffer 510-223-1279 or 877-437-9225 (toll free) www.bayareafloodrepair.com

Halcyon Properties Roger Shane | 510-847-7075 rbshane@aol.com

Emergency Services Restoration Maria Perez | 800-577-7537 www.esr24.com

KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com

HARBRO Emergency Services & Restoration Malcolm Stanley | 650-670-2364 malcolm.stanley@harbro.com

Start to Finish Christopher Bailey | 510-727-9128 cpmbailey@sbcglobal.net

P.W. Stephens Environmental Steve MacFarlane | 510-651-9506 www.pwsei.com

KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com

HAULING SERVICES

HOUSING SERVICES

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

Avitus Group Lance Harris | 925-827-0680 www.avitusgroup.com INDOOR AIR QUALITY/MOLD & ODOR REMOVAL

ECS Group, Inc. Shawn Rau | 707-732-3370 shawn@ecsgroup.net Green Home Solutions Alameda (East Bay) Howard Oliver | 510-666-6711 www.ghsnorcal.com INSPECTIONS

ECS Group, Inc. Shawn Rau | 707-732-3370 shawn@ecsgroup.net SpottCheck Consulting Susan Spott | 510-816-1452 www.spottcheck.com INSURANCE

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 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

|

JUNE 2017

|

RENTAL HOUSING 39

vendor directory LAUNDRY EQUIPMENT

PLUMBING/WATER HEATERS

CSC ServiceWorks Stacy Weaver | 800-954-9000 x54313 www.cscsw.com

Albert Nahman Plumbing & Heating Albert Nahman | 510-843-6904 www.albertnahmanplumbing.com

Excalibur Laundries Richard Lisowski | 510-872-1664 www.excaliburlaundries.com

Fast Water Heater Company Michael Kirk | 866-465-7442 www.fastwaterheater.com

Innovative Coin Cheri Guffey | 510-259-1494 www.innovativelaundry.com

L. J. Kruse Co. Beth Baldwin | 510-644-0260 www.ljkruse.com

PWS, The Laundry Company Herb McKay | 650-871-0300 www.pwslaundary.com

Roto-Rooter Martin Alvarez | 510-755-1262 sanactma@aol.com

LEAD, MOLD & PEST MANAGEMENT

Alameda County Healthy Homes Dept.

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

Water Heaters Only, Inc. Yana Carpenter | 800-835-5946 www.waterheatersonly.com PRIVATE INVESTIGATIONS

Sam Brown Investigations Sam Brown | 415-621-5918 www.sambrowninvestigations.com

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

PRIVATE PROFESSIONAL FIDUCIARY

LITIGATION SUPPORT SERVICES

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

Noel Parker, Fiduciary Noel Parker | 510-260-3520 www.noelparkerfiduciary.com PROCESS SERVER

LOCKSMITH EVICTION SERVICES

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

County Process Server Emily Jay | 855-873-7837 www.norcalevictions.com PROPERTY LEAK DETECTION

MARKET RESEARCH

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

AquaTrip brought to you by GSFM Jeff Maloney | 916-933-9554 www.buyaquatrip.com PROPERTY MAINTENANCE

A-One Construction Eva Morrissey | 510-347-5400 www.a-oneconstruction.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 PAINTERS

Majestic Painters Nick Capurro | 925-336-0526 www.majesticpainters.com

APT Maintenance, Inc. Keith Berry | 510-747-9713 www.aptmaintenanceinc.com KMK Contracting & Property Services Kevin Knobles | 925-292-8667 www.kmkcontracting.com PROPERTY MAINTENANCE SOFTWARE

PEST & VECTOR CONTROL

Alameda Co. Vector Control Services Daniel Wilson | 510-567-6826 daniel.wilson@acgov.org Burge Pest Control Rich Crawford | 888-292-7378 www.burgepest.com

SYNCrew John Cranston | 415-968-1593 www.syncrew.com PROPERTY MAINTENANCE SUPPLIES

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

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 www.theenterpriseco.com ERI Property Management Terrence Sims | 510-883-7070 www.erirentals.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 | 510-455-2667 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

On-Site Janis Rossi | 408-795-4167 www.on-site.com

California American Exterminator Tami Stuparich | 831-338-4800 www.calamericanext.com

Advent Properties, Inc. Benjamin Scott | 510-289-1184 www.adventpropertiesinc.com

Terminix Robert Sater | 510-489-8689 www.terminix.com

Bay Property Group Daniel Bornstein | 510-836-0110 www.baypropertygroup.com

Advent Properties, Inc. Benjamin Scott | 510-289-1184 www.adventpropertiesinc.com

Western Exterminator Company Curtis Newbrough | 510-600-5271 www.westernexterminator.com

Beacon Properties Carlon Tanner | 510-428-1864 www.beaconprop.com

ARA Pacific Mike Colhoun | 415-273-2177 www.arausa.com

40 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

REAL ESTATE BROKERS & AGENTS

vendor directory 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 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

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 Rent Board Matters Liz Hart | 510-813-5440 liz.hart1801@gmail.com RENTAL SERVICES

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

All-Guard Alarm Systems Matthew Mayne | 510-909-7230 www.allguardsystems.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

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

Sharon Medairy, Realtor® Real Estate Source, Inc. | 510-517-9969 www.medairy.net

Earthquake & Structures, Inc. B.K. Paul | 510-601-1065 www.esiengineers.com

Six Degrees Realty Stephanie Christmas | 510-461-4663 www.stephaniechristmas.com

W. Charles Perry & Associates W. Charles Perry | 650-638-9546 www.wcharlesperry.com

Woodminster Real Estate Co Inc. Nicholas Drobocky | 510-336-0202 www.woodminsterrealty.com

West Coast Premier Construction, Inc. Homy Sikaroudi | 510-271-0950 www.wcpc-inc.com

SIGNAGE

Sequoia Signs & Graphics Tom Schnurr | 925-300-1066 www.sequoiasigns.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 Sunvalley Solar Keith Loebbecke | 510-294-0308 www.sunvalleysolarinc.com SUSTAINABLE ENERGY

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

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

PPI Towing Stephanie Gipson | 510-533-9600 www.ppitowing.net TREE SERVICE

Coastal Tree Service Hans Waller | 510-693-4631 www.coastaltreeservice.com VETERANS SERVICE ORGANIZATION

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

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 WASTE & RECYCLING MAINTENANCE

Bay Area Bin Support Nancy Fiame | 888-920-BINS www.bayareabinsupport.com Bay Area Waste Services Peter Gella | 510-788-0462 www.bawaste.com Trashlogic, LLC Lainika Johnson | 888-384-3131 www.trashlogic.com WATER MANAGEMENT

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

Urban Ore Marylou Van | 510-841-7283 www.urbanore.com ebrha.com

|

JUNE 2017

|

RENTAL HOUSING 41

ad index

PRODUCTS & SERVICES APPLIANCE PARTS & SALES

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

Local Knowledge, Local Advocacy, Local Support When You Need It

ATTORNEYS

The Evictors. . . . . . . . . . . . . . . . . . . . . . . . . . 33 Fried & Williams LLP. . . . . . . . . . . . . . . . . . . 25 BATH & SHOWER ENCLOSURES

American Bath. . . . . . . . . . . . . . . . . . . . . . . . 25 BUILDING MATERIALS/HARDWARE

Urban Ore. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

EAST BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing owners and managers of apartments, condominiums, duplexes, single-family homes and other types of rental housing. EBRHA members range in size from small investors with just one property to large property management companies that own or manage hundreds of units.

Our membership consists of more than 1,400 rental housing owners, property managers, attorneys and other service contractors. Altogether, EBRHA represents over 20,000 rental units, and serves over 25 cities throughout Alameda and Contra Costa counties.

CARPETING & FLOORING

Bay Area Contract Carpets, Inc.. . . . . . . . . 35 CONSTRUCTION

West Coast Premier Construction. . . . . . . 31 ENGINEERS

Earthquake and Structures, Inc.. . . . . . . . . 26 West Coast Premier Construction. . . . . . . 29 INSURANCE COMPANIES

Jain Williams—State Farm. . . . . . . . . . . . . . 35 LAUNDRY

Innovative Coin . . . . . . . . . . . . . . . . . . . . . . . 24 Wash Multifamily. . . . . . . . . . . . . . . . . . . . . . 35

n Property management advice by phone or in person n Tenant screening service (application/report fees apply) n Annually updated legal forms, including forms online 24/7 n Monthly workshops on new laws, rental agreements, security deposits, legal notices, fair housing, rent control, and more n Vendor directory of local businesses that offer exclusive member discounts n Annual trade expo and networking mixers n Monthly educational membership meetings n Community outreach and education n Local and state lobbying n An active and growing Legal Action Fund and Political Action Committee n Subscription to Rental Housing and units n Membership with the National Apartment Association and CalRHA

LENDERS

3664 Grand Avenue • Suite B Oakland, CA 94610

WASTE & RECYCLING MAINTENANCE

JPMorgan Chase Bank. . . . . . . . . . . . . . . . . . 7 PLUMBING

Albert Nahman Plumbing . . . . . . . . . . . . . . 31 PROPERTY MANAGEMENT

Maisel Property Management. . . . . . . . . . . 24 PROPERTY MANAGEMENT & SALES

Beacon Properties. . . . . . . . . . . . . . . . . . . . . 31 CBRE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 RENT BOARD CONSULTANTS

Liz Hart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 ROOFING SERVICES

Frank Fiala Roofing. . . . . . . . . . . . . . . . . . . . 35 General Roofing Co. . . . . . . . . . . . . . . . . . . . 33 SOLAR WATER HEATING

PG&E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Bay Area Bin Support. . . . . . . . . . . . . . . . . . 44 WATERPROOFING

JOIN TODAY! CALL 510-893-9873 OR GO TO WWW.EBRHA.COM/JOIN 42 RENTAL HOUSING

| JUNE 2017 |

ebrha.com

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

INTERNISTS LIVE IN THEM.

AS DO INTERNS.

APARTMENTS. WE LIVE HERE. Dr. M. glides down to “G” and drives to work. Brittany Z. thanks heaven the Metro is just 6 minutes management, and skilled trades, as well as into the local and 45 seconds away. America’s other 36,999,998 residents embrace their own reasons apartment homes are ideal

businesses nearby.

For fresh state and local numbers on today’s housing market

for today’s growing communities.

No wonder apartments and residents deliver

$1.3 trillion in

economic benefit annually – in

– plus

40 metro areas – and an interactive picture of how,

with your help, we can develop 300,000 new apartments a year to meet this exciting demand, visit

WeAreApartments.org.

construction, operations, leasing,

W E A R E APARTMENTS.ORG

Are push/pull fees trashing your bottom line?

From start to finish, locally-owned Bay Area Bin Support saves your property money and time! We offer professional, push/pull services for garbage, recycle and compost bins. Our team will pull your bins to the curb and return them to their original location. We service multi-family, small business and commercial properties in the East Bay. At Bay Area Bin Support, our focus is quality customer service. We offer reduced fees, same-day service and coordination with local garbage/recycle drivers. Our team of trained professionals is fully insured. We service bins ranging in size from 4-cubic yards to 20-gallon containers.

Contact us for a free estimate to compare costs with your current push fees. You have nothing to lose and only money to save!

1-888-920-BINS www.bayareabinsupport.com