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EAST BAY
RENTAL HOUSING ASSOCIATION
Volume XXXXII Number 35 | March/April 2025
EBRHA OFFICE
3664 Grand Ave., Suite B, Oakland, CA 94610
TEL 510.893.9873 | FAX 510.893.2906
ebrha.com
CHIEF EXECUTIVE OFFICER
Derek Barnes
aemail@ebrha.com | 510.893.9873
COMMUNICATIONS AND MEDIA RELATIONS
Chris Tipton communications@ebrha.com | 510.893.9873 ext. 5
ADVERTISING AND MEMBERSHIP SALES
Danielle Baxter sales@ebrha.com | 510.893.9873 ext. 2 MEMBER SERVICES AND SUPPORT membership@ebrha.com |
BILLING AND ACCOUNTING
EBRHA OFFICERS
PRESIDENT Wayne C. Rowland
FIRST VICE PRESIDENT Luke Blacklidge
TREASURER Chris Moore
SECRETARY Fred Morse
EBRHA BOARD OF DIRECTORS
Francisco Acosta, Luke Blacklidge, Maya Clark, Jorge Jimenez Carmen Madden, Chris Moore, Courtney Morse, Fred Morse, Joshua Polston, Wayne C. Rowland, Jack Schwartz, Maria Recht, Aaron Young
PUBLISHED BY East Bay Rental Housing Association
PUBLISHER Derek Barnes
EDITOR Michelle Gamble
ART DIRECTOR Bree Montanarello
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.
It should be no surprise that California’s housing market faces unprecedented challenges with the incoming presidential regime, wildfires in Los Angeles County, and a state shortage of over three (3) million homes. Recent federal initiatives and actions, particularly those from the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE), are poised to tighten federal funding and profoundly reshape our local housing landscape. To further complicate an already dire situation, some Bay Area cities also face enormous budget shortfalls and will need to make substantial cuts to city services to close fiscal deficits: San Francisco ($876M), Oakland ($130M), and San Jose ($39M).
Federal Workforce Reductions and Implications
In February 2025, the Trump administration unveiled plans to slash approximately 4,000 positions within the Department of Housing and Urban Development (HUD), according to a recent Associated Press article. These cuts target essential services, including disaster recovery, rental subsidies, discrimination investigations, and first-time homebuyer assistance. The potential reduction of HUD’s workforce by nearly 50% raises concerns about delays and disruptions in critical housing services and payments, directly impacting affordable housing initiatives in the East Bay. These concerns were echoed in EBRHA’s 2025 Annual Housing Collaborative this past February during a panel discussion I moderated with Michelle Starrett (Alameda County HCDD Director), Patricia Wells (CEO/Executive Director of the Oakland Housing Authority), and Sasha Hauswald (Oakland Chief Housing Policy Officer).
Concurrently, at the helm of DOGE, Elon Musk is enacting sweeping federal staff cuts and has mandated that all federal employees report their weekly accomplishments or face termination. This directive aims to streamline government operations but has instilled “enormous fear” among
federal workers, potentially leading to a significant exodus of experienced personnel with critical institutional knowledge and oversight responsibility. In addition to HUD, such attrition could further destabilize agencies like the Departments of Health and Human Services (HHS-Medical/Medicaid), Agriculture (SNAP), Energy (LIHEAP), and Transportation. Cuts in staff and funding will exacerbate challenges in programs administered to stabilize people in housing.
Economic Policies Affecting Housing
The administration’s actions to detain and deport undocumented workers, as well as continued threats of 25% tariffs on imported goods/materials, can escalate and induce significantly higher construction and operating costs. Since lumber, steel, aluminum, and sheetrock are fundamental materials in housing development, tariffs could deter new construction projects, intensify housing shortages, and drive up rents and home prices in the East Bay.
Technological Overhauls and Data Centralization
Musk’s DOGE has aggressively campaigned to centralize federal data and modernize IT systems using artificial intelligence (AI). While the goal is to enhance efficiency, this rapid overhaul has raised substantial security and privacy concerns. The concentration of sensitive housing data within a small, relatively inexperienced team could lead to mismanagement or breaches, potentially compromising resident information and housing program integrity. We remember the rocky implementation and launch of the Affordable Care Act program and website.
Local Market Impacts
The East Bay’s rental market is already feeling the ripple effects of these federal actions. The proposed HUD staffing cuts, municipal budget deficits, and potential delays in affordable housing projects may aggravate the existing housing crisis, leading to increased competition for the most affordable units and higher rents. Moreover, the uncertainty surrounding federal housing policies may deter investment in new developments, further constricting supply. Most business owners know that markets do not like uncertainty.
EBRHA’s
Proactive Role
In response to these tumultuous and spontaneous developments, EBRHA will continue its mission to be an
essential resource to the housing community by focusing on these initiatives in 2025:
• Local Advocacy. Engaging with local and state officials to articulate the potential adverse effects of federal policies’ interoperation with current housing legislation – impacting property owners and renters. Almost 2,000 pieces of California legislation will be introduced during this legislative session. EBRHA and our CalRHA eight (8) affiliates will actively track about 200 of them specific to housing.
• Coalition Building. No one is coming to our rescue. By forming and expanding partnerships with other housing organizations, we can share and leverage our resources and core competencies to influence legislation protecting property owners and renters.
• Education and Resources. Staying on top of housing policy changes and property management best practices will be critical for EBRHA members. We’ll offer different ways to access workshops and seminars, use AI tools and automation to improve accessibility and response times for members, and expand and update our forms library. This is instrumental in helping members minimize business risks and navigate the evolving housing landscape successfully.
• Member Engagement. Encouraging members to proactively communicate with their renters and report illicit activities and infrastructure issues. Active participation in EBRHA-led events also keeps members informed. We strongly encourage members to consistently engage in outreach; communication with elected officials is paramount. Your voice is critical in protecting your property rights and investments – fostering safer, cleaner, and more vibrant neighborhoods.
The intersection of aggressive federal reforms and local housing challenges calls for unified, informed, and vigilant responses. This includes calling out municipalities when they’ve violated the law or engaged in unethical activities that erode public trust. For example, in a December 17 council meeting, many of us witnessed Oakland Councilmembers violate state and city charter by allowing a recalled mayor to cast tie-breaking votes on two highly controversial consent agenda items. Oakland’s City Attorney issued a response to EBRHA Board President Wayne Rowland’s initial complaint. We’ve included the City Attorney’s Supplemental Opinion, delivered February 3, and EBRHA’s February 20 response to the Supplemental Opinion in this issue of RH Magazine
EBRHA remains steadfast in supporting rental property owners and managers through these uncertain times. By staying informed, advocating for sensible policies, and fostering community collaboration, we can navigate these uncharted waters to ensure that East Bay communities remain desirable places to live and invest.
rental housing?
NEW MEMBER PROMO
New members receive a $40 account credit when they join.
REFERRAL PROMO
Existing members refer a new member to EBRHA and receive a $50 account credit.
FIND THE LATEST EBRHA EVENTS & REGISTER AT WEB.EBRHA.COM/EVENTS
MARCH 5 6-7:00PM Town hall Presented by Oakland Renia Webb, Mayoral Candidate
MARCH 6 4-5:00PM Town hall Presented by Oakland Loren Taylor, Mayoral Candidate
MARCH 11 2-3:30PM The Roundtable Presented by Wayne Rowland
MARCH 12 12-1:00PM Don’t let an audit turn your business upside down Zoom Link Sent Upon Registration
MARCH 13 12-1:00PM Town hall Presented by Barbara Lee, Mayoral Candidate
* MARCH 17 St. Patrick’s day
MARCH 19 2-3:30PM Getting the most out of technology Presented by Intellirent
MARCH 26 5:30-6:30PM In-person networking mixer
APRIL 8 2-3:30PM The Roundtable Presented by Wayne Roland APRIL 17 2-3:30PM Forum Presented by Dan Lieberman
APRIL 23 5:30-6:30PM Member meeting and in-person mixer EBRHA offices
* NON-EBRHA EVENTS
If you would like to submit an event, please send an email to editor@ebrha.com
Outside John Muir's House at his National Historic Site
Out & About
EBRHA MEETINGS, SPECIAL EVENTS, AND MEMBER MIXERS
The new Housing Provider Resource Center’s Paul Taylor with attendees at the 2025 Annual Housing Collaborative (AHC) at Bloc15, Oakland
L to R: Michelle Starratt (Alameda County HCD), Sasha Hauswald (Oakland HCD), Patrica Wells (OHA) 2025 ACH panel discussion with Derek Barnes at Bloc15, Oakland
L to R: Oakland Interim Mayor Kevin Jenkins, EBRHA CEO Derek Barnes, Oakland Asst. City Administrator LaTonda Simmons at the 2025 AHC, Bloc15, Oakland
Oakland Housing Authority’s Oceane Hooks-Camilleri with attendees of the 2025 ACH, Bloc15, Oakland
L to R: Cathy Adams, Derek Barnes, Susan Muranishi, Toni Alexander, Nate Miley. Keith Carson Farewell Lunch at Geoffrey’s, Oakland
Alameda County Supervisor Nate Miley’s Inauguration Ceremony. The Club at Castlewood, Pleasanton.
L to R: Visit Oakland CEO Peter Gamez, EBRHA CEO Derek Barnes. Visit Oakland Inspiration Guide Unveiling at The Terrace Room, Lake Merritt.
L to R: Barbara Lee, Loren Taylor, Renia Webb. Oakland Mayoral Candidate Forum at Uptown Station, Oakland.
L to R: Dr. Angela Smith,, Cathy Adams, Derek Barnes with EBRHA members. Annual Housing Collaborative at Bloc15, Oakland.
Legislation
BY RON KINGSTON
Just before another thousand or so bills are introduced by the members of the California Legislature this year within the next 10 days, we thought we might give you a preview of two of the bills that have been introduced to date.
Security deposits are clearly under attack … again … and by the same member of the legislature that successfully authored a bill last year on this subject matter.
Assembly Member Pellerin (D-Santa Cruz) wants to change the way security deposits are to be returned to former renters.
Current law regulates the terms and conditions of residential tenancies, including setting the terms of the amount of security to one month’s rent for new tenancies. This allows a lessor to claim of the security only those amounts as are reasonably necessary. Security for these purposes is defined as any payment, fee, deposit or charge, including any payment, fee, deposit or charge that is imposed at a tenancy’s beginning to reimburse a lessor for costs associated with processing a new tenant or that is imposed as an advance payment of rent. The law also requires a lessor to provide a lessee a copy of an itemized statement and return the security’s remaining portion to the lessee by personal delivery or by firstclass mail, postage prepaid no later than 21 calendar days after the lessee has vacated the premises. Finally, the law authorizes a lessor and lessee to mutually agree to have the lessor deposit electronically the security’s remaining portion to a bank account
or other financial institution designated by the lessee or provide a copy of the itemized statement to an email account that is provided by the lessee. AB 414 would instead require a lessor to provide the lessee a copy of the itemized statement and return the security’s remaining portion in the manner
the security was received or requested by the renter for the return of the security’s remaining portion. If returning the security’s remaining portion by mail, the bill would require the lessor to return the security’s remaining portion and provide a copy of the itemized statement by certified mail. If return-
ing the security’s remaining portion by electronic funds transfer, the bill would require the lessor to deposit the security’s remaining portion to a bank account or other financial institution designated by the lessee and provide a copy of the itemized statement to an email account provided by the lessee.
“Security deposits are clearly under attack … again …”
If the lessor received the security by electronic funds transfer, the bill would require the lessor to return the security’s remaining portion by electronic funds transfer and provide the lessee the copy of the itemized statement pursuant to the terms of this bill upon the lessee’s request.
Do you see any issues with the convoluted proposed new law relating to returning the security deposit (if any)? Well, our association sure does! There is no dispute we must account for the lawful deduction of the deposit. There is no dispute we are to strictly follow the time deadlines and the amount of security. The issue for the members of the Assembly is how we are to send the remaining amount of security (if any) and how we are to send our statement justifying lawful deductions. Pursuant to the terms of the bill, a lessee can change at will where we are to send our statement and the remaining security. What can come of this? Bad faith claims and litigation.
The second bill is authored by Senator Perez. SB 52 addresses rental rates and occupancy levels by prohibiting lessors from using algorithmic devices.
Existing law generally governs notices and the amount of increasing residential rent. The Costa-Hawkins Rental Housing Act prescribes statewide limits on the application of local rent control on specified residential rental properties. That act authorizes a lessor to establish the initial and all subsequent rental rates for a dwelling
or unit that meets certain criteria.
SB 52 would make it unlawful for any person to sell, license or otherwise provide residential rental property owners an algorithmic device that advises on rental rates or occupancy levels for residential dwelling units. It would also make it unlawful for a lessor to use an algorithmic device to set rental rates or occupancy levels for residential dwellings. The state Attorney General, and the city attorney or county counsel in the jurisdiction in which the rental unit is located to file a civil action for a violation of the bill and it would authorize any lessee to file a civil action for any violation of the terms of the bill.
Numerous businesses would no longer operate. Advice, guidance, surveys, training regarding rental rates in communities would come to a screeching halt. Use of credit scoring and credit reporting will remarkably change should SB 52 become law. Use of the fair credit act will come under scrutiny. Use of our anti-discrimination laws will become intertwined in the provisions of this legislative measure.
Just when you thought you were safe treating your lessees equitably and fairly, two measures that have been introduced in the legislature will undoubtedly challenge ownership and management of residential rental units in our state.
Ron Kingston is president of California Strategic Advisors.
Local Spotlight
MARTINEZ: A GREAT WATERFRONT COMMUNITY
BY MICHELLE GAMBLE
Martinez, which is the county seat of Contra Costa County, is located in the East Bay near the southern shore of the Carquinez Strait. Martinez, a Spanish name, means “son of Martin.” This name is also a form of the Latin Martinus and is linked to the Roman god Mars. The 2020 census revealed the population is 37,287. The city sits on the beautiful waterfront in the Bay. It’s considered a safe place with rich local history and a thriving downtown area. The downside though is it has a high cost of living with limited public transportation options.
Martinez began as a trading post in 1849 and was incorporated in 1876. It also became a gold rush and shipping boomtown. The trading consisted of
goods being bought, sold and shipped. A fun trivia fact is the famous drink the “Martini” originated from Martinez.
The overall industries in the area include those businesses in Contra Costa. Major industries include petroleum refining, healthcare, education, telecommunications, financial and retail services, steel manufacturing, prefabricated metals, chemicals, electronic equipment, paper products, and food processing.
When it comes to rental housing, Martinez does enforce a smoking ordinance. Property owners must notify all renters and prospective renters of the City of Martinez secondhand smoke restrictions for multi-family residences, such as apartment buildings or condominiums with four or
more units. Also, all dogs and cats have to be licensed in accordance with the Contra Costa County regulations
Martinez offers a peaceful and safe lifestyle, with natural beauty and waterfront recreational opportunities. The highly rated schools offer parents an excellent opportunity to educate their children. It has low crime rates and features many cultural and community events. The cost of living is also on average lower than many other areas in Contra Costa. Public transportation rates lower and create traffic congestion. Overall, many refer to Martinez as a “well-rounded waterfront community.”
Michelle Gamble is the editor of Rental Housing Magazine.
Historic apartment building in Martinez
Population: 38,259
Housing units: 14,976
Average Rent: $2,357
Vacancy Rate: 4.9%
Rent Control: No
Rent Registry: No
Just Cause Ordinance: Yes
Median household income: $93,874
DEMOGRAPHICS
63.6% White
2.5% Black
0.8% American Indian and Alaska Native
10.4% Asian
18.4% Mixed Race
19.4% Hispanic/Latino
59% White Not Hispanic/ Latino
Martinez Yacht Harbor
Member Spotlight
STEVE EDRINGTON
ADAPT DWELLINGS’ GUIDE TO UNI LEGALIZATION
Adapt Dwellings is owned by Steve Edrington, former Board President and Executive Director and lobbyist for EBRHA (20022010). Following law changes in 2020 that allowed multi-family buildings to add Accessory Dwelling Units (ADU), Steve opened Adapt Dwellings. Steve saw it as a path to legalization for many rental property owners with unpermitted units that didn’t exist before. You can reach him at steve@edringtonandassociates. com or 510-749-4880 x4.
Are you among the thousands of homeowners in California with an unpermitted dwelling unit (ADU) on your property?
Estimates show that in San Jose
alone, as many as 75% of detached ADUs were built without permits. Add to that an estimated 50,000 unpermitted units each in San Francisco and L.A. and you can begin to see the scope of the problem.
Despite these staggering numbers, you might just be in luck. If you’ve considered legalizing your unpermitted unit, then now is the time to take advantage of California’s new amnesty program that has made it easier than ever to legalize unpermitted units.
But what exactly does the legalization process look like and what will it take to actually legalize your unit? We’ll answer these questions and many more today in Adapt Dwellings’ Guide to Unit Legalization.
PART 1:
NEW CALIFORNIA
LAWS FOR LEGALIZING UNPERMITTED UNITS
What is the California Amnesty Program for Unpermitted Units?
On January 1st, 2025, California Assembly Bill 2533 went into effect. This bill is an amendment to Section 66332 of the Government Code, and serves to extend an existing amnesty program for unpermitted ADUs and junior ADUs to include units built before January 1, 2020.
The previous version of the amnesty program capped eligible ADUs at those built before January 1, 2018.
The updated amnesty program makes it easier for owners to legalize their unpermitted units by waiving certain fees, and allowing simplified habitability standards to be applied to these units.
The program is open for a four year period beginning January 1, 2025 and
extending to December 31st, 2028. Property owners would be wise to take advantage of this eligibility window.
Why Is California Offering This Opportunity to Legalize Unpermitted Units?
There are quite a few reasons why the state is pushing to legalize unpermitted units, but the first and foremost reason is to address safety concerns.
Legalizing units that were built without permits ensures that renters of these units have a safe place to call home.
Unpermitted units are often plagued by potential dangers such as poor electrical wiring, inadequate ventilation, structural instability and other issues that result from ignoring building codes.
Why Do I Need to Legalize My Unpermitted Unit?
A major reason to legalize an unpermitted unit is that legalization reduces the property owner’s risk of liability. Most insurers will not cover an illegal unit, so bringing the unit into compliance increases the ability to gain insurance coverage for the unit.
Not only that, but most jurisdictions make it illegal to collect rent for an unpermitted unit. Legalizing the unit nullifies the possibility of a renter refusing to pay rent for an illegal unit.
When there is a problem with an illegal unit, the occupants may call Code Enforcement who will issue a Notice of Violation for the unpermitted unit.
The occupants may then claim constructive eviction, which allows them to ask for all the rent they ever paid back. They can even claim economic damages for the amount they were paying versus fair market rent.
Many Bay Area cities have Just Cause
for Eviction and Tenant Protection ordinances that allow for treble damages and automatic attorney’s fees. That means there is an enormous price tag to pay for non-compliance.
But beyond simply the peace of mind that you get knowing your unit is legal, insured and safe for renters, legalizing these units increases the overall housing supply in California.
Bringing unpermitted units out of the so-called “shadow housing market,” makes them accountable to housing regulations and increases the overall number of available units in the state, making the path towards legalization of these units a win for everyone.
What Exactly is Considered an Unpermitted Unit?
The focus of this bill is legalizing accessory dwelling units built without a building permit on single family lots prior to January 1, 2020.
An accessory dwelling unit is considered to be an independent living space
that a renter is able to occupy full time, without having to walk through the primary home on the lot. These are often informally referred to as in-law units, granny flats, cottages, and guest houses.
AB 2533 covers three types of unpermitted ADUs:
Accessory Dwelling Units - Secondary units attached to the primary home, with independent access, full kitchen and bathroom. These may also be converted from an existing portion of the primary home, like a basement or garage apartment conversion.
Junior Accessory Dwelling Units
- Junior ADUs are entirely contained within the walls of the primary residence, and are limited to less than 500 sq ft of living space. They offer an efficiency kitchen, and may have a separate bathroom, or may share with the primary residence.
Detached Accessory Dwelling Units
- A detached ADU is an entirely separate unit on the same lot as a single
family residence. Detached ADUs may be single family or multi-family ADUs, each with full kitchens and bathrooms.
PART 2:
UNDERSTANDING THE DETAILS OF THE AMNESTY PROGRAM
So just how does all this work? Let’s take a closer look.
What Does Amnesty for Unpermitted Units Actually Mean?
The major drawing point of AB 2533 is that property owners can avoid the penalties and code enforcement fines that they would otherwise be subjected to when trying to legalize their unpermitted units.
Specifically, homeowners who want to legalize their unpermitted units will be exempt from paying impact fees, connection fees, and capacity charges. They will also be exempt from paying any penalties associated with having an unpermitted ADU on their property. This can add up to many thousands of dollars in waived penalties and fees,
“Don’t waste this opportunity to bring your unit up to code and minimize your risk.”
making legalization far more cost effective for owners.
What Restrictions Exist in the Program?
There are some restrictions that homeowners should be aware of.
The unit does not necessarily have to meet the current building code standards. Simply meeting the code of the year the unit was constructed is good enough, if the unit does not have any glaring safety issues.
However, local governments can still deny permits if the ADU or junior ADU is considered “substandard”. If a unit has significant safety concerns, then these must be corrected before the unit can become permitted.
If the unit is in such an exacerbated state that it cannot be brought up to meet the safety standards of Section 17920.3 of the Health and Safety code, the unit will not be eligible to be legalized.
Will I Need an Architect to Help Get My Unit Legalized?
Yes, in most cases you will need to submit a set of plans for the unit to the authority having jurisdiction (your local planning and building department) in order to apply for a permit. That means you will need the help of a licensed architect to create the plans for the unit, if you do not already have them.
The plans you will need include a site plan, floor plan, interior and exterior elevations, along with details demonstrating code compliance for things like fire resistant wall ratings. Aside from providing plans, retaining the services of an architect is highly beneficial to help you through the legalization process.
An architect will help you understand what improvements will need
to be made prior to submitting your permit application so that your unit can meet the relevant building codes and habitability standards.
Incomplete or inadequate plans may be cheaper, but it can cost you time and money during the construction process.
The building inspector is the last plan checker and if the project lacks specifications or field changes to the project are needed, the building inspector can make you resubmit the plans and have the additions approved, costing time and money.
Incomplete plans also lead to change orders that are not planned for and will slow down the project and increase the overall costs. As they say in the development industry, “spend the extra time on the plans and planning and it will pay off during construction.”
Too many times we are in a rush to start swinging the hammer and don’t adequately think through the project.
Don’t undervalue an architect’s knowledge and experience. It will be invaluable in helping you meet the requirements for legalization.
Will I Need a Feasibility
Study?
Yes, a feasibility study will be part of the requirements for submitting your permit application.
A feasibility study looks at the existing unit’s condition, along with local regulations, to assess the viability of the project.
Feasibility studies can help uncover the potential obstacles to legalization, as well as give you an idea of the cost of bringing the unit up to the required standards. Sometimes a no at the start of the project is the cheapest answer, versus spending lots of time and money only to come to a no decision later in the project.
PART 3: ADAPT DWELLING’S ROADMAP FOR LEGALIZING AN UNPERMITTED ADU
Now that we understand the amnesty program more, we can discuss the roadmap to legalization.
The exact process may differ depending on the local government’s requirements, but having the assistance of an experienced architect can help streamline the process.
HERE’S HOW TO GET STARTED.
1. Confirm Eligibility - As of January 2025, the amnesty program is only designed to facilitate legalization of unpermitted units that are built on single family lots. Multi-family lots could potentially qualify later, but for now, amnesty is limited to units on single family lots. The unpermitted unit must also have been built prior to January 1, 2020. Newer unpermitted units are not eligible for amnesty at this time.
2. Choose an Architect - Choosing the right partner can save you both time and money. Adapt Dwelling’s own architect can help you navigate the maze of paperwork and requirements needed to legalize your unit. We can conduct a thorough assessment of your property that will show you exactly where improvements need to be made before submitting your permit application. There are a lot of architects out there that do a lot of things, but at Adapt Dwellings, we are ADU experts specializing in helping clients add and legalize units through the ADU process.
3. Prepare Your Plans—You’ll need to have plans ready to submit to your local governing body. This is where your architect will be of the most help. Make sure you have floor plans, site plans, and any other required documents. Use a pre-submittal checklist available
from your local government to ensure you have all the information you need ready.
4. Submit Your Application—Once you have your plans and documentation, you can submit your application. Your plans will be reviewed to make sure that they meet the necessary building codes, zoning regulations and safety requirements. If there are any discrepancies, you’ll need to address and correct them before the process can move on.
5. Unit Inspection—Once your plans have been approved, the unit will need to undergo a physical inspection by a city building inspector. They will check for any significant health or safety violations that need to be corrected immediately to bring the unit into compliance.
6. Obtain Permits and Begin Corrective Work—After the inspectors have documented the necessary improvements, you should receive a permit to begin the corrective work.
7. Schedule Reinspection—After completing the necessary corrective work, a second inspection will be scheduled to ensure that the unit now meets the appropriate building and safety code requirements.
8. Receive Certificate of Occupancy—Once a second inspection has been successfully completed, you will be awarded a certificate of occupancy, and your formerly unpermitted ADU will now be legal.
CONCLUSION
The State of California has provided a golden opportunity for those owners with unpermitted units on their prop-
erty to finally achieve legalization and avoid significant penalties and fees. Legalization not only prioritizes the health and safety of renters, but also reduces owner liability in the event of an emergency or a problem tenancy. It also helps ease the overall housing crisis that the state is experiencing. Don’t waste this opportunity to bring your unit up to code and minimize your risk.
Legalizing an unpermitted ADU may seem like a daunting task, but it doesn’t have to be. With help from the Bay Area’s ADU experts at Adapt Dwellings, you can rest easy with the peace of mind of knowing that your unit is safe and fit for occupancy. Don’t wait another minute to begin the process of legalizing your unpermitted ADU. Contact Adapt Dwellings today and let our team of ADU experts guide you on the path to unit legalization.
Educate
BEST BOOKS ON PROPERTY INVESTMENTS
We asked property investors the best books they have read on the topic. Here are the books they recommended.
Wealth Without Cash by Pace
Morby
This book is a bit more advanced, but it opened my eyes that you aren’t stuck doing real estate the traditional way. There are many options in order to start or continue purchasing units for your portfolio. Pace talks about buying houses subject to, seller financing, and how all of these instruments come together in order to supercharge an investor’s buying abilities. – Holden, Founder, Helpful Home Group
The Book on Rental Property Investing by
Brandon Turner.
This book offers a well-balanced road map covering the overall strategies as well as the daily chores required to advance in this sector. It covers subjects such as innovative renter screening — that is, utilizing short personal interviews rather than only online forms — and methodical approaches to managing everything from rent collection to
emergency repairs without sacrificing your whole day.
The author stresses building ties with local service providers – my own variation here has been creating partnerships with short-term maintenance teams that also undertake minor improvements because I’ve seen their speedy response times rescue owners from poor guest evaluations. Turner’s piece on budgeting also stands out if you want to use off-season resources or use less-traveled market sectors to help to cut expenses. – Tim Choate, Founder and CEO, RedAwning.com, Inc.
The Book on Managing Rental Properties by Heather and Brandon Turner I used to own and self-manage 150 rental units. Heather and Brandon Turner’s The Book on Managing Rental Properties was fantastic for us. It helped us add a level of professionalism and transparency that renters really deserve. We systematized things like maintenance requests, move-in/ move-out checklists, and our financials. I particularly enjoyed that it wasn’t a “make money” book but much more of a practical how-to for mom-and-pop property owners in the trenches. – Ryan Dossey, Co-founder, SoldFast
Rich’s Dad’s ABCs of Real Estate Investing by Ken McElroy
There are three property management books that I really love and learned a lot from. The first is Rich Dad’s ABCs of Real Estate Investing by Ken McElroy, which makes real estate ideas easy to understand and focuses on ways to earn passive income through smart property investments. The second is The Book on Rental Property Investing by Brandon Turner because it’s packed with helpful tips for managing and making money from rental properties. The third is Landlording on Autopilot by Mike Butler. It gives great advice on making property management easier and less stressful. – Sergio Aguinaga, Owner and Founder, Michigan Houses For Cash
How to Flip a House by William A. Johnson
How to Flip a House by William A. Johnson is, for me, number one on my list of literature recommendations on the subject of investing in property. This detailed how-to on flipping houses shares important insight related even to today’s fast-moving market. The significance he gives to building a great team, dealing with correct analytics of a house, and conducting negotiations with both buyers and sellers-the foundation is great, really, whether the investor is
seasoned or new to the business. The process of wholesaling houses for quick cash profits that he details from A to Z is incredibly useful, from motivated sellers through deal analysis, to marketing strategies. It gives me many practical ways to handle the complexity of the transaction in real estate, and thus helps me to grow professionally and make proper decisions with successful results in property investment. – Alexei Morgado, Realtor, CEO and Founder, Lexawise Real Estate Exam Preparation
Every Landlord’s Guide to Managing Property by Michael Boyer
Every Landlord’s Guide to Managing Property by Michael Boyer is a book I’ve recommended to quite a few people. It really is a great guide for every property owner – from the experienced property owner looking for ways to become more efficient to the newbie who doesn’t quite know what they are doing. Boyer is also an attorney, and the legal aspects of property management are not to be ignored, so that’s another great aspect of this book that helps set readers up for success. – Adam Hamilton, CEO, REI Hub
Educate
PROPERTY OWNERS NO. 1 TAX TIPS
Since it’s tax season, we asked property owners their best tax tips.
“My foremost 2025 tax tip is to claim and detail accurately all qualified rentals for your property. Florida’s friendly taxes, its lack of state taxes for rental, permit property owners to claim full allowable federal deductibles. Mortgage payments, property management fees, maintenance and repairs, insurance, and depreciation are key items for deductibles. For example, the IRS will permit depreciation for residential real property over 27.5 years, and it will make a significant annual deduction.
In addition, in and following natural events, such as hurricanes, a common feature in Florida, property owners can claim allowances for property loss and loss through theft. Keeping proper documentation of all expenses and a consultation with a tax advisor will enable you to comply with current taxes and best utilize your tax planning.” –
Alexei Morgado, CEO and founder of Lexawise Real Estate Exam Preparation
“When it comes to property management and taxes, it is extremely important to make sure you have records of absolutely everything. This includes anything from rent receipts, to insurance payments, to maintenance costs, and more. The number one tax tip I have
for an owner of multiple properties is that they can take advantage of depreciation loss to provide great tax benefits. Don’t wait until now, right as we are entering tax season, to look back at the previous year and search for all of your receipts. You’re probably going to miss things. If you immediately store and organize things as you go, it will make all the difference in the world.” – Adam
Hamilton, CEO, REI Hub
“The number one tax tip I have for an owner of multiple properties is that they can take advantage of depreciation loss to provide great tax benefits. Many successful investors have utilized this to lower their taxes. Basically, depreciation is a paper loss proportionate to the decline in value over assets for the duration of their useful life. The tax cuts and jobs act also expanded some of the ways we can utilize bonus depreciation. In most asset classes if you make income or cash flow (like dividends in a stock) you pay income tax on that cash flow. With real estate you can use depreciation loss to offset the income making this a big benefit as you are paying less tax for the same magnitude of income/cash flow. If you actively participate in real estate and are within AGI limitations you can even offset up to $25K of active income from any source with depreciation loss. Furthermore, if you meet the strict requirements of being a real estate professional per the tax code there is no limit to the loss. If you are buying or have bought several investment properties you can even do a cost-segregation study to compartmentalize the personal property or removable assets like appliances, flooring, etc., to take accelerated depreciation in the year you placed the asset in service. Imaging the possibility
of being able to write off potentially $30k+ per rental property in the first year to offset income!
Also, if you are married and one person can qualify as a real estate professional, the paper loss created can also be used to offset the active income of the spouse.” – Gary McDermid, Author at Author
“Interest on loans and lines of credit can be a major tax deduction for property owners and managers. Most people know they can deduct mortgage interest on rental properties, but many forget about other types of interest. If you take out a loan or a HELOC to improve a rental property, that interest is also deductible. The key is that the loan must be used for business purposes—such as renovations, maintenance, or even buying another rental property.
For property management businesses, interest on business credit cards, personal loans used for property-related expenses, or lines of credit tied to your business is also deductible. However, you need to keep clear records. If a loan is used for both personal and business expenses, you can only deduct the interest on the business portion. Good bookkeeping and separating personal and business funds make this easier at tax time.
Even if you refinance a property, the interest on the new loan remains deductible, as long as the loan is for business purposes. Some investors use cash-out refinances to fund new investments, and as long as the money goes back into the business, the interest remains deductible. This deduction can add up quickly, reducing taxable income and improving cash flow.” – Pete Evering, Utopia Management
Inform
A CHALLENGE TO CONTROVERSIAL OAKLAND RENT ORDINANCE VOTE
EBRHA is raising serious concerns about the December 17th Oakland City Council vote on amendments to the Rent Adjustment Program and Just Cause Eviction Ordinance. The proposal, pushed by outgoing Councilmember Dan Kalb, eliminates banked rent increases, restricts rent adjustments for tax-delinquent owners, and extends renter petition deadlines.
In a highly questionable move, recalled Mayor Sheng Thao, absent for public comment and under federal indictment, cast the deciding vote remotely after a 45-minute delay, tipping the 4-4 tie in favor of the changes.
EBRHA Board President Wayne Rowland has formally challenged the legality and ethics of this decision in a letter to the City of Oakland. Below is the City Attorney’s response, along with Mr. Rowland’s follow-up. For inquiries, contact EBRHA at membership@ebrha.com.
CITY OF OAKLAND
OFFICE OF THE CITY ATTORNEY
PUBLIC LEGAL OPINION
TO: MayorKevin Jenkins (serving as Mayor pursuant to the Charter) Members of the City Council City Administrator Jestin D. Johnson Oakland Residents and Businesses
FROM: City Attorney Ryan Richardson
DATE: February 3, 2025
RE: Addendum to November 27, 2024 Public Legal Opinion “ProcesstoAddressVacancies in the Office of the Mayor and District 2 Council Office and the 2025 Special Election”
I.INTRODUCTION
Dear MayorJenkins, Councilmembers,City Administrator Johnson, Oakland residents and businesses:
Following the November 5, 2024 election, we received manyinquiries regardingthe process to addressvacancies in the Office of the Mayor and the District 2 Council Office as well as the special electionto fill vacant seats. In response, on November 27, 2024, our office issued a publiclegal opinion: “Process to Address Vacancies in the Office of the Mayor and District 2 Council Office and the 2025 Special Election.”
We have receivedadditional inquiries regarding the precise timing of the vacancy in the office of the Mayor and thetiming of the former Mayor’s removal from office. Accordingly, we are issuing this addendum to the November 27, 2024 memo to provide additional clarity on theeffective date by which the office of Mayor was vacant and the process leading to thevacancy.
This opinion is public because it addresses therights and powers of the Mayorunder the Charter and California election law. Like all public legal opinions, this opinion will be posted on the City Attorney’s website at: https://www.oaklandcityattorney.org
II.ADDENDUM ON VACANCY IN THE OFFICE OF THE MAYOR
A.When did the Mayor’s seatbecome vacant?
The office of the Mayor became vacant on December 17, 2024, following the City Council’s declaration of the election results pursuant to the California Elections Code and the Oakland City Charter.
PUBLIC LEGAL OPINION
Mayor Kevin Jenkins (serving as Mayor pursuant to the Charter), Members of the City Council, City Administrator Jestin D. Johnson, Oakland Residents and Businesses February 3, 2025
Re: Addendum to November 27, 2024 Public Legal Opinion “Process to Address Vacancies in the Office of the Mayor and District 2 Council Office and the 2025 Special Election” Page 2
Process:
Oakland City Charter section 1104 provides that the recall of elected officials is “to be exercised in the manner prescribed by general law of the State. Under California Elections Code section 11382, “[i]f a majority of the votes on a recall proposal for a local officer are ‘Yes’, the officer is removed and the office shall be vacant until it is filled according to law.”
The results of a recall measure, however, are not self-effectuating. California Elections Code section 11328 clarifies that “[a] recall election shall be conducted, canvassed, and the results declared in substantially the manner provided by law for a regular election for the office.” (Emphasis added.) For elections consolidated with a statewide general election, such as the November 5, 2024 recall election, the Alameda County Registrar of Voters must submit a certified statement of election results within thirty days to the Oakland City Council, which must then declare the results no later than at its next regularly scheduled meeting. (See, e.g., Cal. Elec. Code §§ 10262-10263, 15372, 15400 and Resolution No. 90587 C.M.S.)1
Therefore, although the majority of voters voted on or before November 5, 2024 to recall the prior Mayor, the office of the Mayor was not vacant until the process for certifying and declaring the election results was finalized on December 17, 2024. On December 5, 2024, the Alameda County Registrar of Voters provided the certified results of the recall election to the City. Pursuant to the California Elections Code, the City Clerk scheduled the resolution for the City Council to declare the election results to the City Council’s next regularly scheduled meeting. At that meeting, on December 17, 2024, the City Council passed a resolution declaring the results of the recall election (see Resolution No. 90587 C.M.S.) and subsequently passed a resolution declaring the vacancy in the office of the Mayor and calling for a special election to fill that vacancy. (See Resolution No. 90588 C.M.S.) This process finalized the results of the recall election in compliance with the California Elections Code and the City Charter, and the prior Mayor was formally removed from office. (See Resolution No. 90587 C.M.S. [“That the City Council hereby determines and declares that a majority of the votes cast on the question of whether to Recall are ‘Yes,’ the question is declared PASSED and the Mayor is removed from office”].)
3398149v3
Dear City Attorney Richardson,
Thank you for providing a copy of the Addendum to your Legal Opinion addressing the timing of the Mayoral vacancy following the recall, in which you highlighted selected, December 17, 2024, actions of the Oakland City Council.
The Addendum focuses attention on the date and procedure by which the Mayor’s office became vacant. Regarding procedure, the Addendum states in part:
“At that meeting, on December 17, 2024, the City Council passed a resolution declaring the results of the recall election and subsequently passed a resolution declaring the vacancy in the office of the Mayor and calling for a special election to fill that vacancy. This process finalized the results of the recall election in compliance with California Elections Code and the City Charter, and the prior Mayor was removed from office.”
The narrow focus of this summary omits a crucial sequence of events that also took place during the meeting of December 17, and that also have a bearing on the legitimacy of ordinances passed based upon tie-breaking votes cast by the recalled Mayor.
Prior to the Council taking steps to declare the Mayor’s office vacant, it called upon the recalled Mayor, who was neither physically nor virtually present, to cast tie-breaking votes on two ordinances. When she did not immediately appear, the vote was postponed. She later joined the meeting and cast her votes.
The ordinances upon which she cast votes were controversial and had garnered significant public interest. Yet, they were passed without the full hearings, public comment or proper deliberation normally afforded such controversial policy matters. They were included instead on the consent calendar alongside routine agenda items. Despite attempts by Councilmembers, Kevin Jenkins and Noel Gallo, to pull them from the consent calendar for separate consideration, Councilmember Dan Kalb, presiding over the meeting, improperly ruled against their removal.
Only at the end of the meeting, after addressing all other official Council business, did the Council take steps to declare the Mayor’s office vacant.
Response from EBRHA Board President , Wayne Rowland
Prior to arriving at the point in the meeting, at which the Mayor’s office was declared vacant, Presiding Officer, Dan Kalb, engaged in a series of ethically questionable actions, ultimately resulting in the absurd outcome of the recalled Mayor casting tie-breaking votes in the same meeting in which her office was declared vacant.
Those actions included the following:
1 Misuse of the Consent calendar. The Presiding Officer manipulated the legislative process by placing controversial agenda items on the consent calendar rather than the regular calendar. The consent calendar is typically reserved for routine, non-controversial items that require little to no discussion. By using this tool, he prevented the necessary public deliberation and transparency that ethical governance demands.
2. Obstructing the Democratic Process. When other Councilmembers requested removal of these controversial items from the consent calendar, their requests were denied. This action obstructed the democratic process, suppressing legitimate concerns and preventing open debate. Ethical governance requires that all Councilmembers be given the opportunity to voice their constituents’ concerns, and the refusal to accommodate such requests represents a serious breach of ethical conduct.
3. Allowing a Recalled Mayor to Vote. The decision to allow a recently recalled Mayor to participate in tie-breaking votes is a significant violation of ethical governance. A recall is a direct expression of the public’s will to remove an elected official from office, a right granted to Oaklanders under City Charter Section 1104. Permitting a recalled official to cast deciding votes disregards the democratic process and undermines trust in City Council actions.
4. Failure to declare a vacancy in a timely manner
The Council’s failure to declare the Mayor’s office vacant at the beginning of the meeting created a legal and ethical loophole that allowed an illegitimate vote to take place. If the vacancy had been properly acknowledged at the outset, the recalled Mayor would not have been able to participate. This omission demonstrates either negligence or an intentional attempt to manipulate the voting process.
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5. Violation of Public Trust. Elected officials have a duty to act in the best interest of the public, ensuring fair, transparent, and legal decision-making. By engaging in procedural maneuvers that distorted the decision-making process, Council leadership violated the trust placed in them by the community.
That each of these actions occurred under the watchful eye of the Council Parliamentarian and were neither challenged nor corrected is further cause for alarm.
The Addendum acknowledges Council actions of December 17, 2024, that took place at the end of the meeting, specifically its declaration of election results. It is inexplicably silent on all other Council actions bearing upon the legitimacy of ordinances or other official actions resulting from the participation in Oakland governance by the recalled Mayor.
By ignoring these other Council actions, the Addendum, in its silence, defends the indefensible. It fails to protect the public interest, gives incorrect guidance in remedy of an egregious injustice and needlessly provokes legal challenge.
The procedural irregularities and ethical lapses in governance, as outlined in this and in my previous communication, are significant, if not flagrant. The Addendum is non-responsive to these concerns.
Accordingly, I have copied Oakland City Councilmembers on this communication and respectfully ask, once again, that they take immediate steps to rescind the results of all Council actions that resulted from tie-breaking votes or participation in governance by the recalled Mayor following December 5, 2024, when the election results were transmitted by the Alameda County Registrar of Voters to the Oakland City Clerk. Ethical governance demands such action.
We ask that the City Council respond to this request within 10 days of the date of this letter.
Sincerely,
Wayne C. Rowland President, EBRHA
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Advocate
ABOUT THE PROPERTY OWNERSHIP PROBLEMS POST LA FIRES
BY MICHELLE GAMBLE
We have big problems in California where recent disasters like the Los Angeles fires revealed some major issues. These struggles are not new when it comes to property ownership in the Golden State and especially in the Bay Area. However, the recent LA fires magnified what needs to be resolved for property owners as we move forward into 2025 and beyond. The challenges involve two areas: how the state puts environmental protection over the wellbeing of citizens and how the lack of mitigation and risk influences insurance providers to avoid insuring those properties they deem at risk. California routinely deals with wild-
fires, flooding and earthquakes. It’s just a part of living in this gorgeous, diverse state. Anyone who lives in California for more than a decade has likely experienced some of these natural disasters. Who in California hasn’t seen the fires, felt an earthquake, or even experienced a flood?
Now consider the mandatory requirements that mortgaged properties absolutely must have insurance. Banks and lenders mitigate risk by requiring each mortgaged property have insurance, which protects their investments. It’s not an unreasonable requirement. However, what becomes unreasonable is when insurance companies either (a) increase rates so high it’s untenable to pay such amounts,
and that pressure falls upon owners and certainly not banking institutions; and (b) insurance providers can without warning (as what occurred in Los Angeles) terminate policies.
Policies pulled without warning or explanation leave property owners vulnerable to lose their investments. Reports out of Los Angeles shared that insurance companies had suddenly canceled insurance policies roughly two months before these fires started. It should alarm any owner to have their insurance suddenly and often without warning canceled, leaving their investments vulnerable should a natural disaster take place in the interim before owners can find new insurance coverage.
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This theory might sound implausible and certainly unjust if not illegal, but it happens. One property owner had no idea his rental property had not only had its mortgage change hands between Chase Bank and sold to an unknown mortgage company without his permission, but they also removed the property insurance. No notice was given on either account, and the property owner only discovered the changes when a letter arrived stating he either pay the now delinquent mortgage (because they had removed his automatic payment) or it would go into foreclosure. To make matters more frustrating, the bank automatically increased his payment from a 30-year fixed loan and required property insurance even though they had canceled it. Sounds pretty suspicious and begs investigation into its legality.
In the meantime, California insurance providers either abandoned insuring the state or raised their rates so high that it makes it more expensive to rent properties, as those costs have to be absorbed into the business or passed on to renters. The cost of insuring California properties is based on location,
claims history, coverage amounts, discounts, home features, neighborhoods, and natural disaster potential. The last one, disaster potential, in a state where noted above experiences fires, floods and earthquakes, from north to south, means rates will be higher than other less disaster-prone states. In the East Bay, earthquakes and fires top the list of risks.
Now the final blow has been what many experts consider a major government policy failure: failed state and local policies that held environmental concerns over the protection of citizens. Governor Gavin Newsome’s failure to clean up the forest debris and create fire breaks, while at the same time protecting wildlife like the tiny smelt fish, which has been a sticking point since the 1990s, practically threw the proverbial match on the gasoline. Now add to it, the funding cut of $17.5 million to the LA fire department, and here comes big trouble and destruction to life, limb and property.
No one suggests that wildlife or fish don’t matter – of course, citizens care about the world we live in and environmental impacts. However, a
careful balancing act needs to occur that doesn’t put one thing over the other. President Donald Trump shined a spotlight on the smelt preservation causing problems, but that problem existed decades ago but didn’t get resolved. Cutting water flows down south to LA, allowing a reservoir to go dry, and destroying three dams doesn’t make sense. Property owners who lost everything during these fires are people and citizens. More concern given to a fish over other human and animal lives just doesn’t balance in terms of importance.
But, circling back to insurance providers who cut coverage just two months shy of a major catastrophe begs the question: Did they know something the average property owner didn’t know? Is it a coincidence? Anyone with discernment should, and we all should, raise questions not only about what prompted this cancellation and what did insurance providers know that we didn’t know?
Also, how fair and legal is it for insurance companies to drop coverage on property covered and paid for by the owners to leave their investments vulnerable? Imagine if you’re a small mom and pop property owner who has three properties, insurance got cut, and the properties burned. These owners not only will be unable to rebuild without financing, but often other land and real-estate developers can now come in and buy those properties on the cheap.
We have a legitimate mess to clean up here in California. Policies that protect property owners need to be approved. Insurance providers need better regulation and oversight so that they can’t arbitrarily pull policies, and banks can’t authorize the sale of a mortgage to another bank without the owner’s approval. It seems like common sense, but the results demonstrate levels of deception and corruption that need to be considered.
Michelle Gamble is the editor of Rental Housing Magazine.
Connect
INSIDER’S GUIDE TO RENTING TO COLLEGE STUDENTS
BY LYNN KREHER
Renting to young Gen Z college students, in particular, comes with uncomfortable liabilities that most property owners don’t want to manage. In fact, when asked about the desirability of renting to college students, most property owners negatively reacted with common responses that they didn’t want to take it on. However, in the East Bay where major universities like UC Berkeley and St. Mary’s College are located, it’s part of the fabricate of the rental industry. Trying to avoid renting to college students in some areas like Berkeley are next to impossible. So, the old saying, “if you can’t beat ‘em join ‘em” applies, but with some strategic insights to avoid trouble.
The biggest concern is the transient nature of this population. Most college students move to the area specifically to go to school. They may be in their late teens or early 20s and not self-sufficient enough to either afford rent or depend on scholarships, government grants or parents to pay the bills. Students may move back and forth between campus and their parent’s homes to save money during breaks and vacations, and then return. As a result, students may rent for nine months to a year and then leave, which makes the market unstable in this regard and leaves gaps in rental payments that make it less profitable.
Now couple this issue with the reality that some young people are not responsible yet. They may not realize or care about the value of your properties. They may host parties. They may break things without regard to the expense simply from being young and disconnected from such realities.
They may become a nuisance to their neighbors, which could drive stable renters out of the building.
Thus, many property owners don’t see the value in this demographic; however, college students still need places to live, which leaves a high demand from this market segment. “There are pros and cons to renting to college students,” said Adam Hamilton, CEO, REI Hub. “On the positive side, if you have a rental unit near a college campus, you will typically have very little difficulty finding renters. Even if the students you are renting to all decide to move out at the end of their leases, chances are the word will get out that your unit will soon be available, or at least new students will quickly find your unit online. On the negative side, sometimes college students can be a bit more messy, disruptive or even destructive.”
BALANCING ACT
The real question becomes, how do you create a successful renting environment where your properties are profitable while students’ needs get accommodated? Following some specific guidelines will help mitigate liabilities and create a win-win business model.
“Personally, I don’t rent to college students because their frequent moves make it hard to maintain stability in my rentals,” said David Flanders, owner and founder of HomeVisors Collective. “For property owners who do, I recommend shorter lease terms and requiring cosigners to manage the risks of renting to such a transient demographic. While students can be a good niche near campuses, the added wear and tear and high turnover require a
lot of extra effort. During breaks, I’d suggest filling vacant units with professionals or families who tend to stay longer. Renting to college students can work but only if you have solid systems to handle the constant changes.”
Here are some important tips to rent to college students to ensure your properties don’t suffer:
Parents Co-Sign Leases and Run Credit Checks on those Parents: Make sure parents know rent isn’t satisfied by the individual; it’s only paid when the full (total) payment is collected. Don’t lease to groups that can’t give you the deposit immediately. If they say they need another week or need to get their previous deposit, that’s a sign of potential issues. Rent to the group that is ready to sign and ready to pay the deposit.
Ask About Their Grades and Goals like a Job Interview: Sit down with each student and find out a little about each person. What are their grades like? What are their long-term intentions in regards to living in your complex during their education? Ask them what they value and even their life skills. You will find the answers simply by asking and listening.
Be Direct, Firm and Clear About Rules and Expectations: You can have the rules listed (like rules of the pool) and expressly state rent collections, utilities payments, and any special requirements you want to inform them about. Don’t waver in your clarity and show no exceptions for bad behavior.
Be More Selective About the Students: Choose to focus on specific groups and types of degrees. A graduate or PhD student is likely more serious about his or her education. It
“Trying to avoid renting to college students in some areas like Berkeley are next to impossible.”
takes good grades and hard work to be accepted into master’s and post-doctorate programs, so why not focus on those individuals who you know are more likely to be responsible?
As noted, student renters can create trepidation among property owners, but if done right, this segment of the population could become a great renter pool to draw from. Some property owners actively choose to rent to this demographic and have made a solid business out of it.
Lynn Kreher is a Bay Area writer.
Inspire
WOMEN TRANSFORM THE REAL ESTATE LANDSCAPE
BY BREA HARPER
Women property owners have become one of the fastest growing demographics to buy and rent properties throughout the San Francisco Bay Area. This phenomena begs the question: why are women so attracted to this business? The answers can be found in both societal attitude shifts and attraction to the business itself. “I’ve watched women transform the real estate landscape, and it’s honestly fascinating,” said Wesley Kang, founder of 1099Cafe.
“A big one is likely the fact that women today have more financial independence than any past generation of women,” said Adam Hamilton, CEO, REI Hub. “For reference, it wasn’t until 1974 that women could even own their own bank account. That alone made it more possible for women to buy their own homes (e.g., not needing a male co-signer) in addition to just having their own bank accounts. So, as the years have passed and women have been able to achieve financial independence, they have been making big strides to hit the major financial benchmarks like owning a home. There is also great stability in owning a home, and many studies show that women prioritize stability, and are more risk averse, than men.”
With societal and cultural barriers removed, women began excelling in this area. “Upon starting in real estate, I saw fairly fast a striking pattern: women are making great progress in property ownership.” Said Carissa Kristoff, realtor, Berkshire Hathaway HomeServices Select Properties. “Being the CEO, I have had the honor of collaborating with many women
who use real estate to secure their futures and control their financial circumstances. This project for me goes beyond the business; it is about enabling women to build long-lasting legacies that give them the independence they naturally merit.”
The change also illustrates the nature of cultural shifts where women and men aren’t necessarily coupled up at earlier ages. “I think it’s just an indirect consequence of more people buying and owning properties while they are single,” explained Pete Evering from Utopia Management San Diego. “In generations past, it’s usually couples that do this. As more single people choose to own real estate, more single women also get in the game. I think relatively more women are getting into ownership because ownership represents security. Most single owners are relatively young, and among young people, it’s the women who tend to mature earlier and think about putting in place things that would make for a more secure future, like a house or investment property. I recognize this might be a gross generalization, but I think it’s something worth looking at.”
“From my perspective, stability is the major impetus; therefore, what compels many women to purchase property?” said Kristoff. “Real estate is among the most dependable methods of increasing assets over time, which women usually do. It is an investment that, together with a great sense of pride in owning a physical asset, can produce long-term financial stability.
“Moreover, property ownership shows power. It helps women to weigh important options concerning their
“Women are often more open to learning and understanding property ownership.”
financial future. They are building wealth, which is very empowering, rather than using up their resources by renting.”
Kristoff took it one step further and added, “Thanks to their special gifts, I have seen many women perform well in the real estate sector. Whether managing a property or a business, property management calls for patience, close observation of details,
and multitasking skills that are vital irrespective of what other help a client receives in locating their ideal house. Real estate needs these skills, and women seem to excel in this sector.”
WHY WOMEN SUCCEED
What do women property owners possess in terms of talents and skills that make them excel as property owners? “What strikes me most is how women approach property investment because they’re incredibly strategic,” said Kang. “While many male investors I work with focus on quick gains, my female clients often build methodically, starting with one solid investment and expanding thoughtfully. Just
last week, I worked with a client who turned her first downtown LA condo purchase into a five-property portfolio over just three years.
“The way women succeed in real estate is remarkable but it’s not surprising. In my experience, they excel at preventive maintenance and renter relationships. One of my top-performing clients reduces vacancy rates by maintaining detailed property records and building strong renter connections – skills that directly impact bottom lines.”
Women are often more open to learning and understanding the property ownership business environment. “Managing a residential cleaning
and management business gave me a helpful perspective on property ownership from my years of experience,” said Kristoff. “Dealing with maintenance issues or enhancing a house’s appeal calls for attention to small things, which is significantly important for success.”
Women also employ strategy and well-organized execution of their businesses. “It is for women a venue of independence and financial stability, not only a place of living,” continued Kristoff. “Strategic planning can result in steady income from property ownership over time and generate passive revenue. Real estate investments can help women to increase their resources, create equity, and finally transfer these riches on to their offspring.
“One gets much satisfaction from wise investment decisions made. Being a woman in the real estate business, I have seen many customers become successful just by spotting the correct times to buy and renovate their homes. Managing your own finances is essentially a long-term investment in oneself.
“Ultimately, female homeowners have a considerable value as assets. It provides freedom, stability, and the chance to create a lasting heritage. Apart from the economic advantages, the incentives for women to follow this road are great; they create possibilities for their children and themselves. Real estate offers each investor a chance to shape the future the same chances regardless of experience. Every person is entitled to this level of independence.”
Brea Harper is a Bay Area writer.
INSTANT HOME S
Prefab Homes Offer Quick Housing Solutions
BY MICHELLE GAMBLE
Prefabricated homes have recently become quite impressive. Not only are the price points, some starting at around $10,000, cost effective, but also the innovative engineering and contemporary features make some of these structures nearly impossible to distinguish these buildings from permanent housing. In fact, many buyers sometimes elect to invest in one of these new homes versus buying a standard building or home. To make matters more interesting, some property owners expand their inventory of rental units by dropping in small homes onto existing rental properties (much like accessory dwelling units aka ADUs), and therefore, creating more available housing and increasing profitability.
Right now in the East Bay, housing shortages continue to challenge providers. The San Francisco Chronicle reported, “San Francisco’s housing production hit a 12-year low during 2024. At the same time, census data shows that housing underproduction fell by over 15,000 homes in San Francisco, Oakland and Berkeley.”
This housing environment invites much-needed solutions to quickly open up new rentals, not just for renters, but also to quickly place the homeless in safe housing at an affordable cost per unit. Prefabricated homes not only can potentially fill the shortage in available housing, but also can make it happen within weeks or months.
“Right now, prefabs are mostly used for ADUs, vacation homes, and a host of other things that aren’t primary residences,” said Pete Evering, Utopia Management based in San Diego. “I think there’s a huge untapped potential there, especially considering how unaffordable the housing market has become. Prefabs offer a viable and cost-effective solution to housing shortages, as they can be rapidly produced and installed for a lower cost per square foot compared to traditional homes.”
“Prefab homes are like the Swiss Army knife of housing, they are super versatile,” said Luke Beerman, CEO of Freedom Fence FL. “A lot of people use them as ADUs, perfect for guest
houses, home offices or even a rental property to make some extra cash. They are also a solid option for primary residences if you want something affordable but stylish. Vacation homes are another great use since they are quick to build and easy on the wallet. Plus, they are ideal for temporary housing after disasters or as on-site housing for workers.”
Evering added that stereotypes exist about these homes not being high quality or these structures are low-income alternatives to traditional housing, and these beliefs can hinder adoption. “I think the biggest reason why we don’t see mass adoption yet is the stigma that comes with alternative housing solutions,” he explained. “You can ask any man on the street, and chances are they would rather rent than own a prefab. This is largely because prefabs are commonly associated with lower-income neighborhoods, so people who consider themselves middle class tend to be hesitant about embracing this alternative housing solution. Times may force them to adapt, though. As the market becomes ever more unaffordable, we have to consider rethinking the way we see non-traditional homes, and fast.”
In order to change these attitudes, property owners and renters need better information and even tours of these amazing, cost-effective and innovative new homes to increase adoption and overcome stigmas. “The versatility of prefabricated homes is one of their greatest strengths,” said Denys Schwartz, civil engineer, Constructionfront.com. “As a civil engineer, I’ve seen these homes used in a wide variety of ways, from accessory dwelling units (ADUs) and vacation homes to impactful solutions for social and affordable housing.
“The adaptability of prefabricated homes makes them ideal for addressing various housing needs,” continued Schwartz. “Whether it’s for individual units in densely populated cities or larger multi-unit developments in suburban or rural areas, these homes can be customized to fit the specific requirements of different housing projects. They can also be designed to meet the demands of different demographics, from affordable homes for low-income families to more upscale properties for middle-class buyers.
“The ability to build quickly – what used to take months or even years can now be completed in weeks – offers a significant advantage in tackling housing crises. Moreover, these homes are often more affordable to build and maintain than traditional houses, making them an attractive option for governments or organizations focused on providing cost-effective housing solutions.”
SETUP AND CONSTRUCTION
The advantages of these homes when it comes to setup and what could be referred to as “drop in” is exciting and fascinating at the same time. Property owners can literally have a prefabricated home shipped and erected within days. “Prefab homes could seriously help ease the housing crunch,”
said Beerman. “They are cheaper to build because most of the work happens in a factory, cutting down on labor and material costs. Plus, they go up fast, some projects can be done in weeks instead of months. Since they are built under controlled conditions, the quality tends to be topnotch too. This makes them a smart option for areas where traditional housing is either too slow or too expensive to build.”
“From a construction standpoint, installing prefabricated homes involves several key steps,” said Schwartz. “One of the key advantages of modular construction is that the foundation can be prepared ahead of the home’s arrival on-site, allowing for a faster overall construction process. However, this requires strong coordination to ensure that the foundation is compatible with the specific modular home being delivered. The foundation could be a concrete slab, crawl space, or a more specialized design, depending on the home’s structure and local regulations.
“Once the home’s modules are delivered and positioned on the prepared foundation, the next step is connecting the home to essential utilities such as water, electricity and sewer systems. In urban areas with established infrastructure, this process is relatively straightforward. However, when installing prefabricated homes in more remote or rural locations, it may require extending utility lines or building new connections, which can add complexity.
“For electrical connections, power lines need to be run from the nearest grid connection, and the home’s internal wiring must be completed to accommodate appliances, lighting and HVAC systems. Water and sewer connections also require careful planning, especially if the home is being placed on vacant or undeveloped land. In these cases, bringing in infrastructure such as water supply lines or septic systems may be necessary, which requires additional time and resources.”
AMAZING FEATURES
Prefab houses are not your old-school trailers or motorhomes. These structures are flat-out homes with foundations, four walls, and lots of amenities, some more impressive than ever. “Prefabricated homes are becoming a big hit for their flexibility and efficiency,” said Beerman. “Right now, the trend is all about open-concept layouts that make small spaces feel big and airy. People are going for eco-friendly materials and energy efficient designs to keep costs down and make their homes more sustainable. Smart home tech is also huge, think automated lights, security and climate control, all managed from your phone. What’s really cool is how customizable these homes are. You can tweak the size, layout and features to suit your needs, whether you are building a tiny guest house or a full-on family home.”
If you watch footage of how quickly and efficiently these homes are installed, you will be amazed. “I’ve noticed a growing trend toward ultra-compact prefabricated homes that
prioritize multi-functional spaces,” said Ryan Whitcher, CEO and Founder @Harmony Home Buyers. “These homes are designed with movable walls, built-in furniture, and convertible areas that make the most of every square foot. They’re perfect for urban buyers and eco-conscious clients who value efficiency without sacrificing style or comfort.”
“Energy efficiency is a key trend, with many modular homes now featuring solar panels, energy-efficient windows, and advanced insulation to help lower environmental impact and energy bills,” said Schwartz. “In the future, we can expect more smart home technology integrated into these homes, allowing owners to control features like temperature and security remotely.
“Sustainability is also a growing focus, with builders increasingly using eco-friendly materials like recycled steel and low-carbon concrete. Additionally, today’s modular homes offer more customization options, allowing buyers to personalize designs without compromising on speed or cost.”
“I’ve also seen a surge in demand for off-grid prefabricated homes,” said Whitcher. “These homes come equipped with solar panels, battery storage, composting toilets, and water purification systems, making them ideal for clients who want independence from urban utilities. Whether for a rural retreat or full-time living, these designs appeal to buyers seeking self-sufficiency.”
“As for features, the trend is increasingly toward green and energy-efficient housing,” added Alexei Morgado, CEO and founder of Lexawise Real Estate Exam Preparation. “The homes are being built from better materials, with energy-saving appliances that have larger windows to allow for more natural light. Designs also include modern conveniences such as a full kitchen, fashionable living room, and outdoor areas needed to satisfy the tastes of today’s newer homeowners.”
QUICK FIXES
Look for prefab homes to gain momentum in popularity. Sometimes housing developments can take years to build. With an ongoing housing shortage, years to construct a permanent structure won’t solve immediate problems.
“While prefabricated homes still aren’t super common, they are becoming more common for people looking to have short-term rentals on their property,” said Adam Hamilton, CEO, REI Hub. “They can work similarly to ADUs, providing guests with their own independent living space on a person’s property. It is just incredibly important for people considering this route to look into their local zoning laws to make sure it is something they can legally do. They should also be very careful about picking the right prefabricated home to buy, making sure it has everything they need.”
Michelle Gamble is the editor of Rental Housing Magazine
CAN PREFABS FIX HOMELESSNESS AND HOUSING SHORTAGE S?
By Denys Schwartz, Civil Engineer
From an infrastructure perspective, prefabricated homes could significantly contribute to solving homelessness by providing quick, affordable and scalable housing solutions. Due to their faster construction times, lower costs, and easier maintenance, these homes can be rapidly deployed in areas with high demand for housing, offering those experiencing homelessness a safe, secure place to live. The modular design also allows for the creation of entire communities, which could address both immediate needs for emergency housing and long-term solutions for affordable living. However, while prefabricated homes can certainly help from an infrastructure standpoint, homelessness is not solely a housing issue. It’s often tied to complex social and health challenges, including mental health, addiction, and economic instability. Solving homelessness requires a combined effort across multiple areas of government—housing, healthcare, social services, and more. Therefore, while prefabricated homes can provide a critical piece of the puzzle, addressing homelessness in its entirety will require comprehensive, multi-faceted solutions.
Smart Investing in the New POLITICAL CLIMATE
BY GRANT CHAPPELL
With a rocky election in the rearview, the “stay alive until 25’” mantra in the CRE space, similar to Sam Zell’s “stay alive until 95’” post Savings and Loan Crisis, was too optimistic. Nearly every week we read about more lenders taking back properties after months of “extend and pretend” loan workouts that ultimately resulted in foreclosure. Given the recent tragedies in Southern California with the wildfires, both utility costs and insurance rates are going to increase. While these types of fires are predictable, they ultimately may not be that preventable.
With elevated risk, comes opportunity. As Darwin noted, the species most likely to survive “is that which is most adaptable to change.” As a broker and investor, we try to find inefficiencies in the market and pounce quickly on the right prospects. In my prior article we noted the reset in Oakland apartment values, but have not seen as dramatic a swing in other surrounding cities in large part due to Oakland’s oversupply of new units and declining rents.
For decades, California has been a high-risk state for property insurers due to its geography, climate and regulatory landscape. Wildfires, earthquakes and flooding pose significant risks, making it costly for insurance companies to operate profitably. However, in recent years, starting with major fires in 2017 in Santa Rosa and 2018 in Paradise, we have seen an acceleration of insurers withdrawing from the market or significantly raising premiums.
Strangely, with higher premiums comes higher profits. Progressive Insurance saw their net income climb from $700 million in 2022, to $3.8 billion in 2023 and $8 billion in 2024. Chubb-Limited, an American-Swiss Company, also saw net income double over the same time period from $5.24 billion in 2022 to $10 billion in 2024. While it’s challenging to find direct quotes from the companies, it’s widely known that they’ve cancelled policies in California, Florida and other
high-risk states, often citing climate change and weather-related risks.
In 2023 and 2024, major insurance companies, including State Farm and Allstate, announced they would no longer issue new homeowners insurance policies in California. In early February, State Farm reached out to the CA Insurance Commissioner to request an emergency interim rate increase ranging from 15% for condominiums, 22% for houses and 38% for rental units. They claim they have already paid out $1 billion for the LA fires and expect to pay out more this year. Without this increase, they say their capital will be depleted and existing policies in the state may not be sufficient to back the collateral/property on existing policies with a bank involved.
These moves in the insurance industry were driven by the increasing frequency of catastrophic wildfires and the growing cost of rebuilding. The California insurance industry changed in 1988 with the passing of Prop 103. It’s essentially a price control, similar to our local rent control laws, in efforts to keep insurance rates low. As we know, price controls create shortages, and we are quickly witnessing the effects of this policy, despite the good intentions of our elected officials.
As we’ve discussed in this column, older Bay Area apartment buildings have felt premiums triple or more in the last few years with few options as carriers exit the area. Homeowners who can still secure insurance are facing steep premium hikes. According to the California Department of Insurance, average homeowners insurance premiums have risen by over 20% in some regions, with areas at high wildfire risk seeing even higher increases. Some policyholders have reported premium increases of 50% or more in a single year.
This increase in premiums, similar to increase in interest rates since early 2022, should put downward pressure on sales prices. A Business Times article last year discussing the luxury home sales market noted, “There’s a lot of wealth sloshing around the area and contributed to an uptick in luxury sales around the region.” The same can be said for Tech,
Biotech and other global industries that create wealth and value locally. Investors who live and work here often want to invest close to home.
The California FAIR Plan, a state-mandated insurer of last resort, has seen an explosion in policy enrollments. Designed to provide basic fire insurance coverage to homeowners who cannot find policies in the private market, the FAIR Plan now covers over 250,000 properties—more than double its enrollment from just a few years ago. However, FAIR Plan policies are more expensive and provide less comprehensive coverage than traditional homeowners insurance. The Palisades fire noted that many owners only had the FAIR Plan with State Farm pulling out of the state last year.
While the recent fires will have more impact on homeowners, commercial property owners are also struggling with insurance availability and affordability. Many insurers have either withdrawn from the commercial market or significantly raised rates, making it harder for property owners, businesses and older commercial buildings to secure policies. A vast majority of apartment building policies fall under surplus policies as nearly all major carriers do not write new policies in California on buildings more than 30- to 40-years old.
I reached out to Walt Anderson of Farmer’s Insurance to get his take on the environment. He shares many of the same comments that the main players are going to petition for – further increases on homes and the surplus markets will continue to see premiums increase as fewer options are available to commercial property owners. Ultimately, he said the costs of these disasters will be felt by the consumer in high premiums and rents.
Homes in high-risk areas, such as the wildfire-prone regions of Northern California and the coastal zones at risk of flooding, are experiencing declining demand due to the difficulty and cost of securing insurance. In Lake Tahoe, most insurers and HOA’s require tree removal or certain landscaping to minimize fire risk. Remarkably, values have held in Tahoe, though dramatically waned in other mountain areas due to unavailability of insurance.
We’ve seen some real estate deals fall apart due to insurance issues. Buyers who cannot secure adequate coverage may be unable to close on their loans, forcing them to back out of transactions. Older roofs, electrical and plumbing systems are common causes for an insurer to pass on new business. What used to be an afterthought in a deal has now turned into a lengthy and complex approval process that can cause delays in closings.
As traditional insurance becomes less accessible, some homeowners and investors are turning to alternative solutions, such as self-insurance if the property is free and clear or to surplus lines insurers. While these options can be costly and carry a higher risk, it reflects the state of the California insurance market.
As we alluded to earlier, California’s insurance market has a strict rate-setting process, which requires extensive regulatory approval for price increases. In late 2023, Insurance Commissioner Ricardo Lara announced efforts to modernize the system by allowing insurers to use forward-looking catastrophe models to price risk more accurately. Unfortunately, this change did not happen in time for the LA fires and many only had the FAIR Plan or no policy at all.
The state has mandated expansions to the FAIR Plan to provide broader coverage, but this has raised concerns about the program’s financial stability. Given the FAIR Plan takes on too many high-risk policies without proper financial backing, it will require some sort of bailout, likely by some combination of the State, insurance companies and most existing insurance customers in California. Even with new initiatives to incentivize homeowners to invest in fire-resistant upgrades, such as clearing defensible space, installing fire-resistant roofing, and using ember-resistant vents, it feels like too little too late to make a meaningful impact. Insurers are being encouraged to offer discounts to homeowners who take these measures, though implementation has been slow.
Similar to Sonoma and other pockets of Northern California that were impacted by the fires, LA is likely to impose some form of rent freeze for the foreseeable future. I receive weekly emails from California’s Attorney General Rob Bonta and noted that they are prosecuting two property owners for price gouging on rental homes. It’s tough to fathom such a big loss for LA and how they begin to clean up and rebuild.
I had a chance to ask Tim Warren, another broker with NAI NorCal, about his opinion of Oakland, and the East Bay in general. He feels this is one of the best times to buy right now as Cap Rates and debt costs are more inline. With more of a return-to-office policy from the City of Oakland and other local companies, he feels this is a window to buy real estate with day one cashflow at prices we have not seen in years. We’ll look back one day and appreciate the good buy -side opportunities of 2024 and 25.
In the East Bay, investors are finally seeing a bottom in values. The market feels like it’s picked up some steam in terms of traffic at open houses, inbound leads on OMs and a general sense that the recalls are over and Oakland/Alameda County may be turning a positive corner. In speaking to Nils Ratnathicam, a local investor about the market and how local politics shapes his view, he offered the following:
“The Alameda County apartment market suffered heavily from a political environment that was particularly brutal towards the landlord community. My expectation is the worst is behind us now that there is a new DA, a mayoral election in Oakland in April, and safety (for the foreseeable future) from a Costa Hawkins repeal. That said, every investor in Oakland and Alameda County should be pricing in additional risk when compared to neighboring counties.”
Similar to SF’s recall of Chesa Boudin, Oakland and Alameda County needed new leadership to steer the ship back on course. LA also overwhelmingly voted out George Gascon. These areas are heavy Democrat areas, but the citizens expect better safety and quality of life. The business and investment community played a large role in these outcomes.
When asked from clients about where to invest after selling their properties, we often discuss going out of state. Clearly operating costs on utilities, insurance and maintenance will increase this year. It’s inevitable, especially if we get into tariff and trade wars with Canada, Mexico and China. Furthermore, the threat of deportation of non-citizens could limit the labor for the construction industry, further exacerbating construction costs.
While going out of state is tempting, especially if the client is considering leaving California, it’s always tougher to manage from greater distance. It’s why we still see investors stay local and pay a premium for a good location. UC Berkeley student population increased last year, further helping to absorb all the units in Berkeley. Office buildings in Oakland and the greater Bay Area are going through foreclosure and trading at deep discounts. This will enable new owners to charge lower rents and bring more companies back to the core downtowns of SF and Oakland.
While interest rates remain a concern, we are encouraged by investment activity in Q4 24 and the number of pending sales on the MLS. It’s a sign that more attractive pricing on buildings finally has buyers off of the sidelines. Twenty-twenty-five will be exciting to see increased apartment sales volume and for our clients to find profitable buildings to purchase.
Grant Chappell is principal at NAI NorCal.
Industry Partners
PARTNERS THAT ARE OFFERING SPECIAL OFFERS TO EBRHA MEMBERS VISIT: EBRHA.COM/INDUSTRY-PARTNERS TO LEARN MORE
ACCESSORY
DWELLING UNITS
Adapt Dwellings, Inc.
510.749.4880
adaptdwellings.com
Perpetual Homes ADU
925.980.2351 perpetualhomesadu@gmail.com
SYMBIHOM LLC
510.930.8900 symbihom.com
ACCOUNTING & TAX
Balanced Asset Solutions
805.284.1950 balancedassetsolutions.com
Hunter Tax Associates
925.362.1350 huntertaxassociates.com
AFFILIATIONS
ALN Apartment Data
800.643.6416 alndata.com
Concord Chamber of Commerce
925.658.1181
ASSOCIATIONS
Berkeley Property Owners Association
510.525.3666
ATTORNEYS
Burnham Brown 510.444.6800 burnhambrown.com
Barth Calderon LLP
714.704.4828 barthattorneys.com
Bornstein Law 415.409.7611 daniel@bornstein.law California Strategic Advisors 916.447.7229 calstrategic.com
Law Office of John Gutierrez 510.647.0600 jgutierrezlaw.com
Shepherd Law Group 510.531.0129 theshepherdlawgroup.co
The Law Offices of Alan J. Horwitz alanhorwitzlaw.com
SPECIAL OFFER TO RENTREDI Snappt 310.383.5465 snappt.com
City of Oakland Rent Adjustment Program
Recent Changes to Rent Increases
As of April 15, 2025, owners will be prohibited from issuing a rent increase if they are delinquent on business taxes as of April 30. For banked rent increases, property owners must provide a copy of their current Business Tax Certificate. For CPI only increases, property owners must provide a copy of their current Business Tax Certificate or a copy of a payment plan with the City for delinquent business taxes.
Questions? Contact a RAP Housing Counselor at 510-238-3721 or rap@oaklandca.gov.
Banking
"Banking" is any CPI-based rent increase that the owner delays, which can be imposed at a later date. Owners may bank up to ten (10) years of rent increases. Banked rent increases cannot exceed 3x the current 2.3% CPI. Banking is capped at 6.9%.
The RAP Notice
Every rent increase notice must include the "Notice to Tenants of the Residential Rent Adjustment Program" form (i.e., "RAP Notice").
Questions? Contemplating a rent increase? Contact a RAP Housing Counselor at 510-2383721 or rap@oaklandca.gov.
Recent Change to Just Cause
As of December 24, 2024, No-fault evictions (owner move-in or substantial repairs) for property owners who are delinquent on their business taxes are now prohibited.
Upcoming Workshops
Small Property Owner Workshop March 5, 2025, 5:30 pm- 7:00 pm
Security Deposits April 9, 5:30 pm- 7:00 pm
Small Property Owner Workshop April 30, 2025, 5:30 pm- 7:00 pm
To stay updated on the 2025 Workshop Calendar, please visit our website at www.oaklandca.gov/RAP & join the RAP listserv at tinyurl.com/rapsignup.
Last Look
INNOVATIVE HOME TECH
When you’re a property owner, you will find many useful technology gadgets to make your job easier. The following are some unique gadgets worth investing in for your properties.
MINIGUARD CAM
Use your smartphone app or computer to guard your properties using this innovative, little device called the MiniGuard Cam. It features HD recordings and live feeds with an ultra-wide-angle lens that reveals every corner of the house or multi-unit complex. It also uses LED night vision to spot movement and intruders. The magnetized base ensures easy installation on any surface — whether indoors or outdoors — without the need for cables or batteries.
CYBER HEATER
This clever device is small and compact and can be used in nearly any space. It comes with a digital temperature display and uses 350 watts of power for energy savings. It also contains built-in safety features that make it automatically shut down should it be knocked over. This prevents damage should kids or pets bump it.
SYNOSHI POWER SPIN SCRUBBER
When renters move out and you need to clean up, this handheld cordless electric device makes your work easier. It works wonderfully for bathroom tiles, shower corners, stoves, cars, and more. The device has an innovative L-shaped design. The brush head is attached to the pointy edge. Users can use the three brush heads to clean a wide range of surfaces, two of which are available to purchase separately.
ION PURE
An excellent tool to test pollutants in your properties is called ION Pure. This gadget, shaped similar to a smartphone, tests for toxic dust, microbes and pollutants that can cause fatigue, headaches, congestion, and allergic reactions. When you spend 90 percent of your time indoors, this is a major health issue. In 30 minutes, it automatically filters 99.7 percent of invisible 0.1 micron particles, including dust, pollen, pet dander, and mold – in a 500 square feet space.
EXTENDTECC WIFIBOOST
If you provide WiFi on your properties, then this gadget called ExtendTecc WifiBoost offers exceptional features to ensure your renters receive service in every room. Use this technology to make sure your entire home is optimally covered, no matter how far away you are from the router. ExtendTecc WifiBoost improves not only the WLAN signal strength in your home, but also the Internet speed. It’s a device that everyone should have in their home.
GUIDELIGHT
A brilliant gadget, GuideLight enables your outlet covers to become LED pathway light and automatic night light. Use it in your hallway, bathroom, child’s bedroom or anywhere you need greater visibility. It’s easy to install and snaps easily on existing outlets in seconds without requiring new wiring or an electrician to install it. The lights automatically turn on and off.
EAST
LOCAL KNOWLEDGE, LOCAL SUPPORT, LOCAL ADVOCACY, WHEN YOU NEED IT.
BAY RENTAL HOUSING ASSOCIATION (EBRHA) is a nonprofit trade organization representing rental owners and managers of apartment buildings and communities, small multi-unit properties (2-4 homes), condominiums, and single family homes. 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 1,500 rental housing owners, property managers, attorneys and other service contractors. Altogether, EBRHA represents over 43,000 rental units and serves over 25 cities throughout Alameda and Contra Costa counties.
EDUCATION, NETWORKING, & EVENTS:
• Monthly Mixers to meet other housing providers in our community
• Annual in-person events to learn about industry resources and trends
• Open Q+A sessions with board members, industry experts, and other seasoned providers
• Weekly Webinars featuring new services, products, laws, forms, and more!
INDUSTRY UPDATES:
• Subscription to bi-monthly Rental Housing magazine, monthly Rentrospect newsletter, and weekly digest.
• Newsflash, Red Alerts, and more virtual message updates from EBRHA
COMPLIANCE
• EBRHA RPM Certification Courses included with membership
• 1:1 support to help you navigate current laws
• The latest Rental Forms with optional 1:1 consultations (available 24/7 through our digital library)
• Reliable renter screening services through Intellirent
ADVOCACY
• Committees organized around our efforts and mission
• Legal & Political Action Funds
• Rallies, designated lobbyist efforts, and active bill tracking
WHY SHOULD YOU RENEW YOUR EBRHA MEMBERSHIP? ASK YOURSELF:
Has managing rental property expectations/ relationships been a challenge in recent months? Are there unit vacancies you need to fill right now?
Is it difficult to constantly navigate all the housing legislative changes?
Are you worried about the protection of your property rights?
Do you have at-risk renters who have been paying rent reliably this year? Have any of your renters not paid rent OR are they paying reduced rent?
Are you unsure who’s defending your business interests?
8. Why not join EBRHA?
Are you concerned about the health of your rental housing business in 2023?
If you answered “YES” to any of the questions above, then EBRHA is a partner that you can’t afford to be without. Membership provides endless benefits!
DID YOU KNOW? EBRHA SERVES ALAMEDA AND CONTRA COSTA COUNTIES
