RentalHousing: May/June 2025

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EAST BAY

RENTAL HOUSING ASSOCIATION

Volume XXXXIII Number 36 | May/June 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

ADVERTISING AND MEMBERSHIP SALES

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.

Rental Housing is published bimonthly for $9.95 per issue by the East Bay Rental Housing Association (EBRHA), 3664 Grand Ave., Suite B, Oakland, CA 94610. Rental Housing is not responsible for the return or loss of submissions or artwork. The magazine does not consider unsolicited articles. The opinions expressed in any signed article in Rental Housing are those of the author and do not necessarily reflect the viewpoint of EBRHA or Rental Housing This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought. Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by EBRHA, express or implied, of the advertiser or any goods or services offered. Published bimonthly, Rental Housing is distributed to the entire membership of EBRHA. The contents of this magazine may not be reproduced without permission. Publisher disclaims any liability for published articles. Printed by Sundance Press. ©2025 by EBRHA. All rights reserved.

Welcome

Change is in the air in Oakland. The city’s political landscape just took a historic turn with a special mayoral election that ushered in a familiar face. Congresswoman Barbara Lee has been elected Mayor of Oakland, marking a new chapter for the community. While many voted for her opponent Loren Taylor, who more recently served as an Oakland City Councilmember, let’s reflect on this pivotal moment and what it means as we chart a forward-looking path for the rental housing industry.

A NEW CHAPTER FOR CITY LEADERSHIP

EBRHA has been more focused on community education and advocacy. In the lead-up to Oakland’s mayoral special election, we hosted a three-part Town Hall series with the leading mayoral candidates, giving our members direct insight into each candidate’s vision and priorities for the city. Many of you attended or viewed these discussions, which underscores EBRHA’s role as a connector in the civic arena. Collectively, we must hold our leaders accountable and ensure the voices of rental property owners are heard. With new and incoming elected officials, we plan to engage early and often – sharing data, personal stories from members, and policy ideas that can help shape balanced housing strategies. Effective solutions are best achieved when all stakeholders have a seat at the table.

The April 15 special election was triggered by last year’s recall of Mayor Sheng Thao – now criminally indicted and facing up to 95 years in prison after a federal corruption investigation. Oakland voters overwhelmingly chose change via an Oakland political and administrative outsider, but one with name recognition. Presumably, the decision for many voters was to elect the “wise adult in the room” with more life experience after two years of petty politics, community division, and incompetent leadership under Thao’s administration. Sixty-five percent of voters wanted Thao out. Barbara Lee, who represented Oakland in Congress for decades, campaigned on a message of unity and hope, vowing to “represent every voter” and “work together as One Oakland to solve our most pressing problems.” This inspiring call to bridge divides resonated deeply in a city that has seen its share of fiscal and public safety challenges. While many are still skeptical given the abbreviat-

ed term (18 months) Lee will serve as mayor, it may be a hopeful sign for all of us who care about housing and the future of Oakland. She’ll be tested on her ability to stand up for what’s right as a local public servant, assemble a team who can execute her 10-point plan, secure critical resources from the county, state and federal government, and broker compromise between opposing city stakeholders. A political icon with progressive ideas (that actually work), pragmatic solutions, and broad community support gives many the optimism that inclusive dialog can gain traction. We congratulate District 2 Councilmember-elect Charlene Wang and Mayor-elect Barbara Lee on her historic win – as the first black woman to lead Oakland –and we stand ready to partner with her administration. Our rental housing community looks forward to collaborating on innovative approaches that balance the needs of housing providers and renters. Together, let’s turn the page to a brighter chapter for Oakland.

(L to R) Oakland Mayor-elect Barbara Lee, Loren Taylor, and Renia Webb participate in a candidate forum discussion.

There’s good news about Concord’s newly elected Councilmember Pablo Benavente’s recent win in throttling back a draconian rent control and Just Cause ordinance that was forced on the city in 2024 by now ousted Mayor Edi Birsan. EBRHA was instrumental in helping property owners organize and rally against the ordinance and support electing Benavente to office –replacing Birsan in his district. The new ordinance caps rent increases at 5% (no CPI provision), exempts owners with two or fewer rental units from local Just Cause regulations, and will take effect May 22, 2025.

STRENGTHENING OUR HOUSING COMMUNITY

Our EBRHA community’s reach and influence have been growing and adapting to meet the moment. In March, a group of EBRHA members and staff, along with

our California Rental Housing Association’s (CalRHA) eight affiliates were in Sacramento for 2025 Lobby & Legislative Day. We met with our state legislators to discuss key housing bills including our own SB 448, the Trespassing Response and Remedies Bill, that removes squatters from vacant properties. The bill has gained growing support and is headed to the Judiciary Committee.

Wayne Rowland, EBRHA Board President, and I were also in Washington DC for the National Apartment Association (NAA) Advocate Week where we met with our senators and congressional representatives to discuss new housing ideas and key challenges in their districts. With the Trump administration’s focus on spending cuts, many constituents and EBRHA members are concerned about ongoing funding to support continued Health and Human Services programs, as well as HUD Section 8 and housing voucher programs.

With more outreach and promotional campaigns, we also welcomed an influx of new members across the East Bay. Notably, the Rental Housing Association of Southern Alameda County (RHASAC) announced it was closing its doors in April. In response, EBRHA extended a warm welcome to RHASAC members, inviting them into our EBRHA family. This transition has strengthened our membership and reaffirmed the core principle that we are stronger together. With more housing providers uniting under EBRHA, our voice in advocacy and our network of support only grows. I want to personally welcome all former RHASAC members – your experience and passion will help energize our mission and better serve the entire region’s housing community.

EBRHA has also been busy forging new partnerships and programs to help members navigate the ever-evolving landscape of rental housing. Another exciting update is EBRHA’s new partnership with Credit Rent Boost, a service designed to empower both owners and residents under California’s new rent reporting law (AB 2747). This law requires housing providers to offer renters the option to report rent payments to credit bureaus. EBRHA members can easily comply with this requirement while helping renters build their credit. It’s a win–win: renters get to strengthen their financial wellness by having on-time rent count toward their credit history, and housing providers benefit from renters’ added incentive to pay rent on time.

MARKET INSIGHTS AND MOVING FORWARD

Beyond politics and policy, you might be wondering: How is the rental housing market doing right now? While vacancies remain high in some areas, the good news is we’re seeing signs of positive momentum. After a prolonged period of pandemic-induced challenges and an 18-month streak of declining rents, the East Bay rental market seems to be turning a corner. In fact, as 2025

began, average rents in the East Bay inched up about 0.2% year-over-year – a small uptick, but a welcome change of direction after continuous declines. Occupancy rates have been improving as well, with rental demand picking up. Simply put, people are returning to our cities and to offices, and they need places to live. This modest rent growth, coupled with lower vacancies, suggests that our local housing ecosystem is stabilizing and even recovering some of its lost ground. However, the wildcard is the Trump administration and GOP-led Congress’ continued efforts to impose tariffs, disrupt government operations, and halt federal funding. This will undoubtedly create more market uncertainty and instability.

May is Affordable Housing Month and challenges remain. Many cities still face economic headwinds and an ongoing affordability crisis. The broader Bay Area is grappling with how to produce more housing, how to balance renter protections with property owners’ rights, and how to ensure safety and quality of life in all communities. EBRHA’s commitment is to stay at the forefront of these issues, advocating pragmatically and persistently for solutions that work. We continue to push for policies that incentivize housing creation, preservation, and maintenance – not ones that punish the very people providing homes. We remain laser-focused on practical solutions: speeding up permitting for new units, improving public safety so communities remain livable, and finding creative ways to keep our legacy housing providers in business so they can continue to offer quality housing and below market rate rents our region needs.

Amidst these critical issues, I want to emphasize an overarching optimism as we move forward. The election of Mayor Lee symbolizes a new moment – one where experience meets idealism, and where a call for unity might finally bring people together to tackle problems collaboratively. Similarly, the growth of our association family and the resilience of the housing market give me hope. They show that even after the storms of in-fighting and malalignment, our community bounces back, adapts, and looks ahead with renewed determination.

I’ll leave you with some food for thought and a call to action. Now is not the time to sit on the sidelines. With new municipal leadership in many of our cities and more uncertainty emerging at the national level, every rental property owner and housing advocate should lean in locally. Engage with EBRHA’s board, staff, programs, and events. Share your insights with us and with policymakers. Take advantage of member benefits and resources to increase your industry knowledge and strengthen your business. Most importantly, continue to provide the safe, quality housing that anchors our communities – and do so with the pride of knowing you are part of a larger community. Our association thrives because of your involvement, your stories, and your unwavering commitment to better housing in the East Bay.

FIND THE LATEST EBRHA EVENTS & REGISTER AT WEB.EBRHA.COM/EVENTS

MAY 3

10:00AM-4:00PM EBRHA Next: Housing and Innovation Conference Lafayette Veterans Memorial Center

MAY 13 2-3:30PM The Roundtable Presented by Wayne Rowland

MAY 21 2-3:30PM

Intellirent – Rental Marketing Workshop

Creating a list that works

* MAY 26 Memorial Day

JUNE 10 2-3:30PM The Roundtable Presented by Wayne Rowland

JUNE 18 5:30-7:30PM In-Person Member Mixer

JUNE 26 2-3:30PM Forum Presented by Dan Lieberman

* NON-EBRHA EVENTS

If you would like to submit an event, please send an email to editor@ebrha.com

Chabot Theatre on Castro Valley Blvd

Out & About

EBRHA MEETINGS, SPECIAL EVENTS, AND MEMBER MIXERS

Phong

sor

L to R: Alameda County Supervisor Nikki Fortunato-Bas, EBRHA board member Chris Moore and guests — Community Heroes Awards, Peony Seafood, Oakland

to R: Carol H. Williams, Congresswoman Lateefah Simon, Former Councilmember Lynette McElhaney — Powerful Women of the Bay

Hayward Mayor Mark Salinas — Alameda County Housing Provider Resource Center Luncheon, Glad Tidings Church, Hayward

CBS News Chief of Foreign Affairs Correspondent Margaret Brennan (keynote speaker) — 2025 NAA Advocate, Washington DC

Anna

L to R: Contra Costa Supervisor Shanelle Scales-Preston, EBRHA member Deleign Thompson, EBRHA CEO Derek Barnes — Powerful Women of the Bay Luncheon, Scott's Seafood, Oakland

L to R: NAA Dir. of Legislative Affairs Maria Spencer, EBRHA Board President Wayne Rowland, EBRHA CEO Derek Barnes — Congressional Black Caucus Reception, Australian Embassy, Washington DC

L
Luncheon, Scott's Seafood, Oakland
L to R: Oakland Mayor-elect Barbara Lee, Congress Minority Leader Hakeem Jeffries — District 12 Lecture Series, Kaiser Center, Oakland
L to R: Kara Murray-Badal, D2 Councilmember-elect Charlene Wang, Kanitha Matoury — 2025 Candidate Forum, 1955 Broadway, Oakland
L to R: Alameda County Assessor
La, Supervisor Lena Tam, award recipient
Wong, Supervi-
David Haubert — Community Heroes Awards, Peony Seafood, Oakland

L to R: EBRHA Board President Wayne Rowland, Congresswoman Lateefah Simon, EBRHA CEO Derek Barnes — 2025 NAA Advocate, Washington DC

Apartment Association of Greater Los Angeles and EBRHA group dinner — Osteria Morini, Washington DC

L to R: OAACC President Cathy Adams, EBRHA CEO Derek Barnes, Town Fair Owner Michelle McQueen — Oakland Hospitality Penthouse Mixer, 1900 Broadway, Oakland

San Leandro Mayor Juan Gonazalez and Board President Wayne Rowland and at the EBRHA April Networking mixer in San Leandro

L to R: Senator Adam Schiff, EBRHA CEO Derek Barnes, Senator Alex Padilla — Constituents Breakfast, Washington DC

Property Owners attending Concord City Council meeting supporting Councilmember Pablo Benavenete's amendments in rent caps and Just cause Provisions — Concord City Hall

L to R: Developer/Owner Joe Ernst, Carol Wyatt, EBRHA CEO Derek Barnes — Prescott Market Grand Opening, West Oakland

L to R:TX Congresswoman Jasmine Crockett, Oakland Mayor-elect Barbara Lee, Interim Mayor Kevin Jenkins — 2025 Easter Carnival, Arroyo Viejo Park, Oakland

L to R: AAOC VP External Affairs Chip Ahlswede, EBRHA CEO Derek Barnes — US Capitol, Washington DC

EBRHA Board Members, staff, and members --- 2025 CalRHA Legislative/ Lobby Day, Sacramento State Capitol

L to R: EBRHA CEO Derek Barnes, Pam Ferran, EBRHA Board Members Fred Morse and Courtney Morse, EBRHA member Petra Brady — Oakland Rotary Annual Safari Gala, 1111 Broadway, Oakland

L to R: ACHPRC Program Ambassador Haldun Morgan, EBRHA Board Members Maya Clark and Courtney Morse — 2025 Easter Carnival, Arroyo Viejo Park, Oakland

Legislation

THE SUM OF ALL PAYMENTS

Should a property owner (or agent) who receives a security deposit or rental payment by means of electronic transfer be forced to return the security deposit by electronic transfer unless the owner or agent agrees in writing to a different methods of returning the security deposit?

Our industry keenly knows that an owner/agent, within f21 days of a renter vacating the property, will refund any portion of the security deposit that is owed to a renter along with an itemized statement detailing the justification for any amount the owner/agent has deducted. The law also requires that the refund and statement be provided to the renter either by personal delivery or first-class mail postage prepaid.

Like most people, we are increasingly relying on electronic transfer of funds using a bank’s unique routing and account number or via popular mobile banking applications such as Zelle. In response to this new world if you will, AB 414 (Pellerin) would provide that if the owner/agent received the security deposit or rental payments from the renter electronically, the owner/agent shall furnish the remainder of the security deposit electronically unless the owner/agent mutually agree to a different method of transferring funds. In addition, the Pellerin bill would require the owner/ agent to send the itemized statement either by electronic mail to an account provided by the renter, or by first-class mail to an address provided by the renter. Existing law already permits the owner/agent and renter by mutual agreement to have the security

deposit returned electronically. This bill would effectively make electronic return the default means if the renter had submitted the deposit and rental payments electronically.

The author of the bill claims there is anecdotal evidence that when the security deposit is returned by mail, the check, if any portion of the security deposit remains, does not always reach its intended destination. This may be purposeful or not, the check is lost in the mail, or USPS just takes too long to deliver the check. The author wants to correct these potential problems.

In sum, the change in law is expected to be signed by the Governor when the bill is presented to him for signature.

Senator Wahab is authoring a whole host of bills of great interest to our industry. Here is a list of a few of her bills.

SB 381 seeks to create the Fair Rental Act of 2025. It seeks to prohibit an owner or their agent from charging fees including any fee that is not specified in a rental agreement, a processing fee (which clearly includes credit check and application fees) for the payment of rent or any other fees or deposits or a fee for a renter to own a household pet. The bill would also prohibit an owner or agent from charging a late fee for the late payment of rent that is more than 2% of the monthly rental rate (despite long-standing judicial decisions to the contrary) and would prohibit the late fee from being charged unless the rent is overdue by seven days or more (thus, if the bill is signed into law renters would be statutorily given a grace period to pay rent without penalty). Under the terms of the bill, if an owner or an agent collects a fee

from a renter that is not authorized by law, the owner or agent would be liable to the renter for the cost of the fee plus 5% interest compounded daily from the date the fee was collected. The bill discourages owners from renting to households that are on a financial precipice and intentionally and unnecessarily delays rental payments, which may prove to be a major problem for small property owners. The measure will also pose issues should a renter want an additional rental benefit during the lease term.

SB 384 (Wahab) proposes to establish the Preventing Algorithmic Price Fixing Act that would prohibit from using a price-fixing level of a good or

service or a rent or occupancy level of rental property. And if that was not bad enough, the state Attorney General or a city attorney or county counsel would be authorized to file a civil action for violations of those provisions including a civil penalty of up to $1,000 per violation. The result of the bill is to clearly stop the use of AI when setting the rent or the number of occupants per unit.

SB 436 (Wahab) would unravel the Costa Hawkins Rent Control Act. This bill proposes massive changes to the eviction process due to non-payment of rent. The bill mandates that courts must restore renter to their tenancy if they pay the overdue rent or show they

have been approved for rental assistance funds covering the debt. Renters would no longer need to demonstrate hardship for this relief and would indefinitely remain in tenancy. Payment or documentation can be provided to the owner or their agent or the court. If paid just before judgment, the unlawful detainer case would be dismissed. And to make matters worse (if this is possible) if resolved after judgment, but before the owner retakes the property, the judgment is voided, and the renter is restated. Additionally, the bill requires the initial three-day notice to inform renters of this “new” right to redeem tenancy.

Senator Wahab has yet another bill,

“...we are increasingly relying on electronic transfer of funds using a bank’s unique routing and account number or via popular mobile banking applications such as Zelle ”

SB 522. Under current law, the Renter Protection Act (TPA) until January 1, 2030 restricts owners from terminating the tenancy of a certain renter without just cause, whether at-fault or no-fault of the renter or setting the maximum annual rent. Certain properties that have received their certificate of occupancy within the last 15 years are exempt from these restrictions. The bill proposes that housing built to replace a unit previously under the TPA, which was damaged or destroyed by a disaster, should not be exempt. The result of this bill would be to clearly discourage any property owner from replacing their damaged or destroyed unit back into the rental housing market.

The final bill, as if the aforementioned was not enough, is AB 1157* (Kalra). Pure and simple, it would repeal the sunset date of the Renter Protection Act of 2019 whereby the net result would be to indefinitely cap rents in the state. (*AB 1157 was shelved for 2025 but will be reintroduced in 2026.)

Did you have enough good news for the day, week and month?

Ron Kingston is president of California Strategic Advisors.

Local Spotlight

UNINCORPORATED ALAMEDA COUNTY

Vacancy Rate: 6.49%

Average Cost of Rent: $2,500

Approximate Number of Single

Family Home Rentals: 19,000

Rent Control: No

Rent Ordinance: Under state law, property owners cannot raise rent for most rental units by more than 5% plus the Consumer Price Index or 10%, whichever is lower. For 2023, the allowable rent increase under state law is 10% . Renters in unincorporated areas of Alameda County are entitled to a mediation hearing for rent increases.

What does unincorporated Alameda county consist of? It is the umbrella that covers the following cities and five distinct communities – Ashland, Castro Valley, Cherryland, Fairview, and San Lorenzo. The communities have not been incorporated as a city and receive services and representation from Alameda County.

This wide swath of cities encompasses a range of businesses and communities. Alameda County as described by its government page is as follows: Alameda County’s rich diversity in landscape, culture, industry and ethnicities is one of its key features. Stretching from San Francisco Bay in the west to the East Bay hills and fertile wine country in the east, Alameda County’s 738 square miles are home to more than 1.5 million people who live in urban centers (such as Oakland and Berkeley), smaller cities, suburbs, and rural communities.

According to “Alameda at a Glance” posted on the government’s website: The City of Alameda was incorporated in 1854. Alameda became a Charter City in 1903 and was one of the first cities in California to adopt the Coun-

cil-Manager form of government, which it retains to the present.

Under this structure, the City is governed by a five-member City Council. Programs and services are administered by a City Manager. The City provides a broad range of services including police and fire protection; construction and maintenance of streets, parks, storm drains and otherinfrastructure; and recreational and cultural activities.

When it comes to quality of life, Alameda boasts, according to the aforementioned article above, its beaches, bird refuges, bicycle and pedestrian paths, natural open space, and extensive waterfront picnic areas. Shoreline parks along the San Francisco Bay and the San Leandro Marina extend for more than six miles, offering spectacular views of the San Francisco skyline and the East Bay hills.

Alameda also includes more than eight miles of the San Francisco Bay Trail. Crown Memorial State Beach is recognized by Sunset Magazine as “one of the best spots in the region for windsurfing and kite boarding.” The second largest concentration of small boat slips (3,400) in northern California

offers ample opportunity for recreational boating and water sports. The 45-hole Chuck Corica Municipal Golf Complex, located adjacent to the Harbor Bay Business Park, is one of the most popular in the East Bay. Its 19 neighborhood parks include 16 multi-purpose athletic fields (four with night lighting), 10 soccer fields, 16 tennis courts, and one bocce ball court. Public swimming is available at Alameda and Encinal High School Swim Centers.

Civic and private groups in Alameda host various community arts including live theater, light opera, community band, historical museum, Friday night art walk, cultural activities and a diverse community of musicians, writers, crafts people and artists. Throughout the summer, free concerts are scheduled.

Unfortunately, Alameda County is not considered property owner friendly. While Alameda County has some programs to engage property owners and address homelessness, it’s generally not considered highly property owner-friendly, especially regarding short-term rentals, due to strict regulations and a willingness to enforce them.

WHAT DOES IT MEAN TO BE AN UNINCORPORATED COUNTY ?

Unincorporated towns and cities don’t follow the same rules as other cities. In business, “incorporated” means a company is a separate legal entity from its owners, while “unincorporated” means the business and its owners are considered the same entity, leading to potential personal liability for business debts.

Incorporated areas are governed by a city with its own mayor and council, while unincorporated areas fall under the county’s jurisdiction. This distinction impacts services like zoning, police, and utilities. Unincorporated counties use their own essential services, like fire, police, water, school transportation, and road maintenance, but they apply it in a decentralized way, meaning it’s specifically managed through their own rules and regulations. Sometimes these services are more or less expensive, perhaps less efficient, or nonexistent.

An interesting aspect of a county being unincorporated involves the community not having elected officials at the town level. Unincorporated cities are not official municipalities and act as a part of a larger municipality (county or city). Several pros exist when it comes to living in an unincorporated city. These advantages include lower taxes. Unincorporated communities often have lower property taxes than incorporated municipalities because they do not have their own local government to support, more affordable housing, strong sense of community, and more freedom.

Stanton House in Castro Valley

movements as well as cultural lifestyles over the last quarter of a century. An indispensable reference book and unbeatable source of inspiration for design professionals and aspiring interior designers alike from over 52 countries and every continent.

From clean-line purity to the ultimate maximalist explosion, it delivers the most renowned, innovative, and exceptional interior design and architecture of the past year. Richly illustrated with over 1,000 color photographs and with 500 pages of the latest interior styles and trends, in 2024 this annual publication will celebrate its 28th year.

The Interior Design Reference and Specifications Book

Recommended by Courtney Cole, Interior Designer at TileCloud

I'm an interior designer at TileCloud. I’ve been in the industry for years, and one of my top Interior Design book picks is the The Interior Design Reference and Specification Book by Chris Grimley and Mimi Love. This is a great addition to the coffee table, but is more than just decoration. It’s also super practical in helping break down everything from furniture design to different materials and finishes. If you’re not in the industry and just interested in interior design, it will be super helpful. But, in the same sense, it’s also useful enough that experienced designers can still use it.

Lighting

for Interior Design

Recommended by Daniel Vasilevski, Electrician/ Director & Owner of Bright Force Electrical

The book that helped me the most with this is Lighting for Interior Design by Malcolm Innes. It’s great because it combines design with the technical side of electrical work. It goes beyond just choosing fixtures and explains how factors like beam angles, brightness and shadowing impact a room. I learned how to position lighting to highlight architectural features, avoid glare and create the right balance between brightness and warmth. This has helped me make sure that every installation enhances both function and appearance, whether it is a cozy living room or a high-end commercial space.

Furthermore, it explains how light interacts with different surfaces and materials. Glossy finishes, matte walls and textured surfaces each reflect light differently, which affects how a room looks and feels. A downlight placed directly over a reflective benchtop creates an intense glare that makes the space uncomfortable. On the other hand, warm lighting directed at wood surfaces enhances the grain and gives the room a more inviting look. This book breaks down how to control these effects through proper placement, brightness levels and color temperatures. Understanding these details changed how I approach installations, ensuring that the lighting complements the materials and creates the right atmosphere for each space. My clients might not always be able to explain why lighting feels right but they do notice when it is done well.

bones or other structures into it that break the blades.

If you don’t want to continually replace disposals or repair damage caused by the clogs, then your best defense is education. When renters move in, offer them a tip sheet on what or what not to do when it comes to features like the disposal. Don’t assume they should know it already. Also, you should track the age of the equipment and realize that at some point, it needs to be replaced.

#4 TOILETS

Toilets often present the greatest annoyance for property owners. It seems obvious, but renters don’t often use the toilet for its intended purpose. They will toss items into it like a garbage can without regard to its function. Renters don’t realize that even toilet paper is biodegradable for a reason, to ensure it doesn’t clog the pipes. Then you have water leaks and clogs. The toilet sometimes has plastic and metal devices that can break, snap, bend or disconnect, which can create undesirable outcomes.

Older toilets should be replaced on a rotating basis. Renters should be informed, even though it seems like commonsense, not to toss things like cotton balls, baby wipes, or cleaning or feminine products into it. Always hire a professional plumber to fix any problems, and do it quickly and efficiently. Renters won’t be happy if their toilets quit working.

#5 PESTS

Pest control is more important than some property owners realize. Rodents can chew through walls, rooftops or any other wooden structures to make nests and breed more rodents. Insects like termites or ants can destroy the structure or continually overrun a kitchen or bathroom, upsetting renters. Poisonous spiders like black widows can set up homes in dark cabinetry and their poisonous bites can harm renters. Fleas can take refuge in carpets and then bite renters, causing not only irritation but frustration to experience it.

The best recommendation is to hire a monthly pest control service to take care of your properties. The overall annual cost will be worth it to the potential damage pests cause. Your renters are protected and your properties won’t be hurt either.

Peter Rustic is a Bay Area writer.

Advocate

SQUATTING IS NOT A RIGHT

“These bills demonstrate a change in people’s attitudes away from blaming owners and making it hard for them to do business and putting it where it belongs, on the squatters.”

The last bill AB 1097 (Avila Farias) intends to enact legislation to address trespassing on private property. The bill’s summary posted on BillTrack50 said: This bill amends the California Penal Code to expand trespassing laws, specifically focusing on trespassing on Indian lands and private property. The bill makes it a misdemeanor to enter Indian lands or private property where signs forbidding trespass are displayed, particularly in areas where animals are being raised. It clarifies that trespassing includes entering lands to injure property or interfere with lawful business. The bill allows for trespass warnings from both peace officers and tribal police officers and establishes that a person can be prosecuted for reentering private property or Indian lands within 48 hours after being asked to leave. The legislation also provides for tribes to enter into agreements with law en-

forcement agencies to enforce exclusion orders. The bill defines key terms such as “federally recognized Indian tribe,” “Indian lands,” and “order of exclusion,” and specifies different time limits for trespassing restrictions based on the type of prior conviction. Additionally, the bill includes technical changes and stipulates that no reimbursement is required for implementing these new provisions since they primarily relate to creating or modifying criminal offenses.”

The theme in these bills address efficient law enforcement to remove squatters and create consequences and penalties to prevent it. As a society we cannot embrace allowing squatters. It’s unfair to property owners to pay the cost of squatting. Local and state governments and organizations that facilitate squatter’s rights negate the rights of the owners who pay the bills.

Property ownership is not a social

housing program. It’s not welfare for citizens to just move in at will. It’s a legitimate business where owners earn their livelihoods through hard work and dedication. To enable squatters to take over properties and then erect barriers that cost the owners even more money creates patent unfairness.

These proposed bills shift the conversation away from laws that aren’t based in fairness or common sense. If we allow anyone to do whatever they want and then make it difficult to correct it, it is not only unjust to owners who foot the bills, but also it encourages chaos and lawlessness. These bills demonstrate a change in people’s attitudes away from blaming owners and making it hard for them to do business and putting it where it belongs, on the squatters.

Michelle Gamble is the editor of Rental Housing Magazine.

Connect

COLLABORATION BUILDS BUSINESS

Entire businesses have been built using strategic networking and collaboration to create strong connections among members of the ecosystem of support. When it comes to property management, developing great associate and contractor relationships build referral networks where everyone wins.

Many property owners and their contractors in areas such as maintenance, landscaping, or cleaning will pass business back and forth for often decades, as these collaborative relationships engender loyalty and respect. Owners and operators come to count on reliable vendors to ensure the jobs get done right. Loyal contractors will refer business back to the property owners. This example shows the value of building collaborative relationships.

“Whether it’s partnering with cleaning companies, landscapers, stagers, or maintenance providers, collaborating with such trusted vendors and suppliers always plays a crucial role in providing top-notch customer service, said Carissa Kristoff, of Realtor Berkshire Hathaway HomeServices Select Properties. “These relationships ensure that the properties are always in their best condition. The objective is to have a reliable network of professionals who can enhance the property's appeal with their expertise whether it’s for selling, renting or simply keeping up.”

Kristoff continued, “Building these relationships is a lot like building a good client base — it’s all about trust, consistency and mutual benefit. I make it a point to personally vet all service providers to ensure they meet a high standard of quality. From there, it’s

about maintaining open lines of communication and referring their services to clients when appropriate. This goes both ways; vendors often recommend me to their own networks when their clients need real estate expertise. Regular check-ins, mutual referrals and collaboration on marketing efforts all help nurture these partnerships.”

GETTING STARTED

How does one go about getting started building collaboration? A couple of

suggestions involve (a) identifying organizations, associations (like East Bay Rental Housing Association) and groups focused on areas of interest; and (b) identifying referrals from other people who work in the industry. For some owners/operators, who don’t feel comfortable going out and connecting this way, you might assign a staff member to do marketing this way.

“Time and trust are the only ways to develop solid relationships in the

construction/real estate business,” said Max Cohen, home buyer. “There are so many bad apples out there in this field – even with 11 years of experience, I got stiffed last year for a large sum by a bad sub-contractor.

“When it comes to developing new relationships, it’s challenging yet simple at the same time,” he continued. “If you are looking for a plumber, go to Home Depot and chat with someone who’s wearing a plumbing shirt. That’s the easy part. The hard part is setting

expectations and communicating: When do you expect to be done? Who pays for what? Do you suspect this can go over budget, etc.? How you handle those issues with them is what makes or breaks the relationship?”

It’s important to make these collaboration strategies a business-as-usual marketing approach designed to move your business to the next level. In fact, some property owners rely on these relationships as their primary marketing tool. “We cultivate these partnerships via a blend of strategic conversations and joint value generation with our partners,” said Tim Choate, founder and CEO, Redawning. “Regular networking events and joint marketing initiatives, as well as open communication channels, help align our interests with those of our vendors and suppliers.”

SUCCESSFUL OUTCOMES

Many experts shared their positive results working with their collaborators. Kristoff said, “A great example of successful collaboration in my experience was working with a local landscaping company. I recommended them to a property owner who was looking to enhance the curb appeal of his property before putting it up on the market. The work went exceptionally well; lush greenery, perfectly manicured flower beds and beautiful walkways, even better than what was expected. The landscaper, thrilled with the business, started referring me to his own clients who wanted to rent out their revamped properties or who looked to find suitable investment opportunities.

“On one other occasion, I collab-

“Time and trust is the only way to develop solid relationships in the construction/real estate business”

orated with a cleaning and property management company who specialized in making properties market ready,” continued Kristoff. “After working closely on multiple projects, they also started referring me to their clients who were looking for more real estate investment opportunities. It’s always a great feeling when collaboration leads to mutual success.”

Choate shared his success story.

“One of my favorite projects was a joint marketing campaign that had us working alongside a reputable landscaping company. As the initiative was not only about attracting renters who prefer better upkeep, it also helped gain good exposure for the landscaper and thus led to mutual referrals.”

“I’ve been involved in several situations where my subcontractors have referred me to someone looking to rent one of my properties they worked on,” said Cohen. “I have even bought a house through my electrician – an investor he was working for was doing work without permits, got caught, and couldn’t finish the job. I promised him I would give him the electrical work, and it worked out for both of us.”

These business relationships work and can benefit everyone. So, go forth and collaborate for big wins!

Lynn Kreher is a Bay Area writer.

Inspire

ENTERTAINING RENTER STORIES FROM THE TRENCHES

As a property owner or manager, you have probably seen it all, especially if you do short-term rentals. You probably feel like nothing could shock you anymore; however, it’s a good bet the following stories may indeed surprise or entertain you. So, please enjoy.

BEDROOM CALAMITY

Short-term AirBnb property owner

Shari Borkin shared an amusing story about one of her renters. This fellow was larger than average. Borkin didn’t think much about it until in the middle of the night, she heard “thud” and wondered what happened. It was

late so she didn’t check on it. The next morning, the renter asked her to come look at what happened. As she entered the bedroom, she found the entire bed collapsed on the floor. Upon inspection, she realized her renter had accidentally bent the steel bed frame. Whoops. She didn’t get upset, she simply asked that he reimburse her for the frame. The lesson is to invest in sturdy bed frames to accommodate all shapes and sizes.

UNUSUAL THANK-YOU NOTE

Adam Hamilton, CEO, REI Hub, shared: I have a small library collection at my short-term rental so that guests can read something if they want to. A while ago, I was at the property and no-

ticed a book on one of the shelves that I didn’t remember having. I pulled it out and saw that there was a slip of paper in it – a guest had written a thank-you note and said they wanted to help add to my collection. They didn’t leave their name however, so I don’t know who did it! I thought it was such a generous gift.

PICTURE PERFECT

Steve Schwab, CEO of Casago, said: One time, a guest had brought their Polaroid camera on their visit and ended up taking a handful of really creative Polaroids around the property. When they left, they left behind a pile of those Polaroids on the table with a note saying how much they enjoyed their stay,

and that the pictures were a gift from them to me. I loved that!

PIMPLE POPPER

Victoria Wilson, from Nomad No Problem, shared: An AirBnb guest recently asked us if we had a first aid kit. We told them where they could find it and asked if everything was ok. They said everything was finethey had just popped a really big pimple. Why? We also had a guest message. We panicked on New Year’s Eve, because the smoke detectors were going off. It turns out they had started a fire in the fireplace but hadn’t opened the damper, and it was our fault for not instructing them to do so.

Brea Harper is a Bay Area writer.

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Inspire

MAINTAINING A MODERN KITCHEN AESTHETIC WITHOUT BREAKING THE BANK

The kitchen is often said to be the heart of the home, the central location for family gatherings and shared activities. This is true not only in private residences, but in rental properties too. From family meals to card games at the table, the kitchen space can be an important hub for loved ones to enjoy one another’s company, even while vacationing.

For rental property owners, main-

taining an attractive and well-kept kitchen is key to keeping guests happy and maximizing bookings. The problem is, the volume of activity the kitchen sees ensures plenty of wear and tear — and the cost of kitchen renovation can be extreme.

Fortunately, there are more cost-effective solutions for rental property owners hopeful to maintain that clean, modern aesthetic. Refinishing or repainting kitchen cabinets can have a

transformative effect on kitchen ambiance, at a fraction of the price typically involved with a full-scale kitchen remodel — or even with simple cabinet replacement.

KITCHEN AESTHETICS ARE A

STRATEGIC INVESTMENT

Rental property owners understand the difference between a burdensome expense and a meaningful investment, and an investment in kitchen aesthet-

“For a more cost-effective option, rental property owners may consider having their existing cabinets refinished.”

ics can often yield lasting results. Simply put, a modern and updated kitchen can drive up the value of the property, allowing owners to charge higher prices while boosting renter retention.

Part of this comes down to creating an enticing environment: When the kitchen feels like it has been lovingly maintained, and when it appears bright, clean and cheerful, it makes renters want to spend more time there. Hours enjoyably spent in a well-appointed kitchen create positive memories, increasing the likelihood of families seeking to book it again for their next trip.

Functionality is another key consideration. While many travelers live off takeout, others will actually want to use their rental kitchens to prepare meals together, making it essential for property owners to furnish a usable space.

For property owners looking to improve the aesthetics of their kitchen, cabinetry provides an obvious starting point. Cabinets play a crucial role in how a kitchen looks and how it’s able to function — and unfortunately, steady use often leaves kitchen cabinets a little worse for wear.

WHY KITCHEN CABINETS MAY NEED A REFRESH

Through regular daily use, cabinetry inevitably accumulates wear and tear. There are several specific factors that can cause the cabinets in rental properties to age prematurely.

• As cabinets get opened and closed each and every day, they inevitably

take on scratches and nicks, diminishing their aesthetic appeal

• Moisture can also compromise the appearance of cabinets, leading to warping or discoloration. Whether due to proximity to the beach or simple spills, moisture can often imperil rental cabinetry.

• Fluctuations in temperature and humidity may also take their toll on cabinets, as can prolonged exposure to sunlight.

These are just some of the reasons why kitchen cabinets lose their luster, making it necessary for rental property owners to refresh them.

EXPLORING THE OPTIONS FOR IMPROVED CABINET AESTHETICS

While rental property owners are wise to invest in kitchen aesthetics — starting with the cabinets — they naturally want to ensure the most prudent investment possible.

The cost of a full kitchen remodel can vary, but the price tag is usually steep. According to research compiled by HGTV, the median cost of a kitchen remodel in 2023 was about $26,790. Meanwhile, HomeGuide reports that replacing existing cabinets can cost as much as $15,000.

For a more cost-effective option, rental property owners may consider having their existing cabinets refinished. Having kitchen cabinets repainted can cost considerably less than a full remodel or total cabinet re-

placement — yet the effect on kitchen aesthetics can be pronounced.

Repainting kitchen cabinets is one of the best ways to minimize the appearance of nicks, scratches and other visible signs of damage. Meanwhile, having cabinets professionally refinished can provide the opportunity to choose a brighter, more welcoming shade — or simply to adopt a more contemporary look.

More than anything, having cabinets refinished helps renters see that the kitchen space has been truly invested in and carefully preserved, which not only helps to facilitate a better experience, but can also improve the property’s revenue potential.

MEANINGFUL MAKEOVERS FOR RENTAL PROPERTY KITCHENS

For any rental property owner, it’s important to show diligence about facility maintenance and general upkeep. Maintaining the kitchen can be especially impactful, creating a more vibrant space and a higher value overall.

Since cabinets define the look and feel of a kitchen, refreshing them is one of the most impactful upgrades rental property owners can make— without overspending.

Bob DeGraff is president of N-Hance, a nationwide leader in wood cabinet repair, refinishing and restoration. N-Hance provides home and business owners with comprehensive cabinet makeovers.

To get started, property owners can either read books (see Educate on design books) or hire a professional interior designer to create the ideal space to show off. Your goal as a professional stager should be to design a space that would best align with your ideal renter’s idea of what the space would look like in the renter’s mind as an ideal home.

SMART SPACES

Consider each room in a house or unit as if it were a great canvas to fill in with color and life. “If there’s one thing that characterizes all great stages, it’s the intelligent use of space,” explained Evering. “And it’s not about the size of the space but the way it opens up to the viewer. Potential buyers tend to already have a vision for what they want their living space to be, so your job as a home stager is to make it easier for them to imagine how that vision would translate into the actual space. That means removing as much unnecessary clutter as possible and planning the placement of items like art and furniture such that it gives hints at the possible ways the would-be buyer can customize the space.”

“My goal is to always make sure I create a balanced and welcoming environment that allows renters to feel at home without overwhelming them with personal taste, said Bree Steele, Interior Designer and Trade Accounts Manager, RJ Living. “I do this with lots of neutral tones for walls and major furniture pieces, then introduce bold accent colors in

the form of art, rugs or any soft furnishings. I also make sure that the flow of the space feels purposeful, with furniture arranged for optimal use of space.”

Also, do not leave out anything that is personal. For example, avoid items that may come across as too specific to someone’s taste or style, especially if you want to attract a broader demographic. For example, do not select trendy, unconventional art pieces or accents like curtains or even oddly designed blinds. Traditional, conservative selections will not alienate prospective renters. However, try and find contemporary designs that are not dated to avoid the perception of your space being old or out of fashion.

“I like to keep things neutral but with style,” said Steele. “You have to remember that everyone who walks through the door is going to have a different design style. For living areas, I like plush seating like modular sectionals in soft and textured fabrics. This is going to be perfect for creating a cozy and inviting feel. Throw some pillows and blankets on there and statement art pieces (if you can hang things on the wall) are powerful accessories that can elevate any room. For dining areas I really love sculptural dining tables, something in solid wood with modern chairs. This gives any space a high-end/functional vibe. You really can’t go wrong with natural textures like wood, rattan and stone. They are neutral without being boring and bring warmth and character to any space in the home.”

LANDSCAPE

Too much focus on the inside of the home and not enough on the exterior landscaping can become a negative. Since landscaping, especially in multi-unit complexes, affects the entire look and feel of the place and other renters, it’s important to put just as much emphasis on the landscape design.

“The landscape is the cover of the book,” said Nia Muhammad, project coordinator and project manager for the Southland Development Authority. “Of course it’s just as important. At South Suburban Land Bank, we take care of all landscaping for every property in our inventory from the time it’s secured in our inventory until we sell. It’s only fair and just to keep that going for homes we decide to rehabilitate ourselves. This could range from shrubbery, fresh mulch, flower beds, to removing or power washing concrete, restoring the gas line.”

When considering the landscape design, hire a professional to create the ideal look for a property – one that considers the native plants and geologic features. Adopt indigenous plant species that grow well in the climate. Try and use plants that don’t require high maintenance or use too many natural resources like water to promote conservation. If a building is new, do not remove old growth trees and bushes, but rather try and architect around them. Preservation of existing plant life will enhance the overall appearance of the property.

Something often overlooked is lighting design around the landscape. Beautifully and elegantly lit yards and courts can create a lovely place to sit around fire pits or just come home to a softly lit area that looks dreamy. It creates safety since it’s well-lit without being intrusive.

SUCCESS STORIES

Here are some great success stories that justify why staging and design matter.

BREE STEELE, INTERIOR DESIGNER

One of my favorite success stories is a two-bedroom apartment I staged. The space had great potential but lacked personality and warmth. The walls were neutral, and while the apartment had a lot of natural light, it felt a bit bland. I started by investing in a modular sectional couch for the living room to provide both comfort and flexibility, then layered in soft textiles like throw pillows and textured rugs to make

it feel alive. I chose a solid wood dining table with simple mid-century modern chairs for the dining area to balance style with functionality. Then I added artwork with a mix of bold abstract pieces and natural motifs to give the space a little edge. In the bedrooms, I used neutral bed linens with statement headboards and brought in fresh plants for life. Within a week of staging, the apartment was rented out for a higher price point than expected and feedback from the prospective renters were overwhelmingly positive. They felt it was a home they could envision themselves in.

I love seeing how the right staging can transform a rental and attract the perfect renters. Every piece in a space should feel intentional and contribute to the overall story of the home.

CARISSA KRISTOF, REAL ESTATE STAGING EXPERT AND RENTAL STRATEGIST

One of the most successful staging I did was a one-bedroom apartment in an extremely competitive market. The place had great bones, high ceilings, big windows and beautiful hardwood floors, but still felt uninviting and dark. I added sheer curtains, light colored rugs and strategically placed mirrors brightening up the space and maximizing natural light inside it. For the furniture, I went for modern minimalistic designs that did not overwhelm the space but complemented its classical architecture.

To attract the growing remote workers, I added a small workspace corner with a stylish desk and chairs in the living room and kept the bedroom simple and cozy by using white linens and soft textiles giving a peaceful, hotel-like feel. Finally, I added some plants and decorations across the apartment to give it more warmth and character.

Result? Within the first week we had multiple inquiries for the listing, more than the previous three months combined, and by the end of the week, multiple, high-quality interested parties were ready to sign the lease agreement. That’s what good staging does, it makes the property completely unforgettable.

Michelle Gamble is the editor of Rental Housing Magazine.

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Short-Term Rentals? Co-Living Resurgence? Excess Supply Has FINAL CALL

Alongtime East Bay broker and property owner once told me: “San Francisco is the dog, we’re the tail.” That line has stuck with me as we travel through another cycle/correction with a massive increase in new East Bay apartment supply. In prior articles, we detailed several foreclosures of non-rent controlled, 100+ unit apartment buildings in the East Bay and SF.

Given the continued losses suffered by major financial institutions on sour CRE loans, along with stubbornly high interest rates, developers of newly constructed apartment projects will continue to face challenges. The most tantamount concern, securing conventional loans to replace the construction debt on the projects post construction. Jerry Brown’s vision of “10,000 new units in downtown Oakland” is close to reality, but with any building boom, there are winners and losers.

The rise of AirBnB and VRBO spawned a new industry on a global level that was normally limited to regional players, largely for tourism. Pre-COVID, a bay area startup, Starcity aimed to capitalize on insanely high apartment rents with a co-living model to provide furnished rooms with shared common area and amenities. The thesis was based more on the European ethos of providing housing to visitors and welcoming strangers into your home, often sharing a meal as well. Unfortunately, Starcity was acquired by Common, a competing co-living startup with properties in the US and Europe. Common declared bankruptcy last year and other pre-Covid players still struggle to maintain 70%-plus occupancy on projects in the Bay Area and around the country.

As we witness the large drop in office values and asking rents in SF and Oakland, along with a resurgence in AI firms leasing office space, this phenomenon of a co-living come-

back is not that surprising. As we will detail later, SF’s apartment rental market is approaching pre-pandemic levels, where other pockets of the Bay Area have witnessed double digit rent growth over the last year.

According to a recent SF Chronicle article, SF is undergoing a co-living boom due to the AI resurgence. Think of the 100 sq ft rooms as “Tech Dorms,” where AI founders and expats can live in close proximity and to their office startups for as low as $1,000/month. UrbaNests, a locally based co-living group operates three properties in SF, mainly in SOMA neighborhoods, renting mainly to foreign-born engineers. Neighbourgood, a South-Africa-based company, also operates three properties in SF with targets to reach 1,000 units over the next three years and 2,500 over the next five to seven years. The article also noted Enso Co-Living, a Barcelona-based firm with properties in Spain and Mexico, has its sights set on San Francisco for expansion.

The Short Term Rental (STR) policy for single family homes in various parts of CA and the country intrigues me. I’ve always felt a community with residents who have “skin in the game” will care more about their town and residents. Often that vested interest is ownership in a house, typically the single most valuable household asset from an equity standpoint. More homes that are solely dedicated to STR’s year round, means fewer homes for families. A client told me a story about the local store near their Tahoe cabin paying $26/hour in the summer in the local deli because most workers must commute longer distances. Post-COVID remote work policy removed a portion of the rental housing stock as long-term owners, who used to rent their cabin seasonally or year round to locals, realized they could cash out in the latest boom for second homes.

Counties can vary in terms of STR policy. In Santa Barbara county, STR’s are severely restricted unless the owner lives in the house as a primary residence and leases out rooms or a separate structure, with some exceptions to lease out the entire house. Where neighboring SLO county does not prohibit STR’s, they pose restrictions, especially in Coastal areas. Opponents argue too many STR’s change neighborhood character and take away housing from family/longterm residents in areas where housing development may be limited. Other proponents of STRs note its negative impact on the hospitality industry. While many short-term rentals appeal to travelers, Berkeley offers a requirement of 14-days minimum to avoid a higher tax on the revenue to level the playing field for hotels versus STR apartments.

With the exception of vacation rental companies, few property managers will oversee STR’s, even with the 20%30% plus management fees common in the industry. There is simply too much risk and headaches with turnover that would conflict operations of traditional apartment buildings. Finding a cleaning crew on short notice, along with the minor risk a renter refuses to vacate, deters most owners from getting in the STR game.

In speaking with clients who still operate furnished AirBnBs in Berkeley and Oakland, they have noted a sharp drop in demand after a new 772-bed development, The Anchor House, was completed near campus in 2024. The Anchor House essentially tapped into the late acceptance students who did not secure housing in the Spring, normally the time when property owners can secure peak rents for the upcoming school year. Twenty-twenty-four was a particularly challenging leasing season with several new projects coming on-

line. It’s worth noting that the Anchor House, donated to the university at a cost of $300 million, is the largest gift ever to UC Berkeley, will also fund 400 scholarships for low-income students annually with the profits from operations.

Lenders, and to a large extent appraisers, always frowned upon leases of less than one year and finding rent comps for furnished rentals. We’ve handled a number of property sales with 50% plus of units under furnished STRs. With few exceptions, such as deals with low LTV debt the buyer was seeking, or in a couple of cases in which First Republic Bank (now Chase) was doing the loan and they focused on borrower strength in providing financing, the STR units typically throw a big wrench in the sale. We tend to advise clients to phase them out or do a one-year lease on furnished units to minimize any negative impact on price.

BAY AREA RENTAL MARKET

SF’s median one-bed rental rate hit $3,200, its highest level since March 2020, yet firmly behind NYC at $4,470. Menlo Park witnessed the largest annual growth at 31%, followed by Campbell at 20%, and Walnut Creek and Palo Alto, both at 15%. Oakland still lags behind at the 16th most expensive market with a median rent of $2,000. Prior to COVID, both SF and Oakland ranked in the top five most expensive rental markets.

We encounter a lot of distress from owners trying to keep their buildings fully leased, while not dropping rents too far below past levels, which would impact the building’s value. While developers of newly constructed buildings offer two to three months free to lease an apartment, owners of rent-controlled apartments feel compelled to offer a month free to

The historic Sather Gates marks the entrance to the campus of the University of California Berkeley on Sproul Plaza

Industry Partners

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AFFILIATIONS

ALN Apartment Data

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Concord Chamber of Commerce

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ASSOCIATIONS

Berkeley Property Owners Association

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ATTORNEYS

Burnham Brown

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Barth Calderon LLP

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Bornstein Law 415.409.7611 daniel@bornstein.law

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A-1 Community Housing Services

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Alameda County Housing Provider Resource Center 510.868.0070 achprc.org

Berkeley Housing Authority 510.981.5470 bha.berkeleyca.gov

Bay Area Community Services (BACS) 510.759.5534 bayareacs.org

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GOVERNMENT AGENCIES

BayRen / StopWaste 510.891.6558

City of Oakland Housing and Community Development 510.788.0462 oaklandca.gov/rap

City of Oakland Rent Adjustment Program

Recent Changes to Rent Increases

As of April 15, 2025, owners are prohibited from issuing a rent increase if 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.

The New CPI Will Be Announced Mid-May! (Effective August 1, 2025)

Upcoming Workshops

Small Property Owner Workshop June 11, 2025, 5:30 pm- 7:00 pm

Small Property Owner Workshop July 9, 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

THE BEST PLANTS FOR COMMUNITY GARDENS

It’s spring time, and for those property owners who create community gardens and for those who love to garden, here are the best plants to introduce to your sacred patch of soil sharing. And before you get started, please be aware that vegetable gardens in particular require more maintenance and certain soil types to survive.

BASIL

It’s a great herb and makes many dishes taste delicious, and it’s easy to grow. Experts suggest that to keep your basil producing a great harvest to remove the flowers before the plant goes to seed. If you don’t, the plant will no longer produce leaves to harvest.

EGGPLANT

This vegetable is an acquired taste for some, but also popular and easy to grow. Plus, it adds a little purple color to your garden. The big tip is to pay attention to when the eggplant ripens so it doesn’t get overdone and start to taste bad.

GARLIC

Who doesn’t like garlic? Not only is it one of the easiest vegetables to grow, but it has healing and medicinal qualities, too. You do need to plant it in the fall so you can harvest it in the summer.

KALE

We went through a kale craze for a while. However, it’s a low-maintenance vegetable to grow and doesn’t require too much love. You plant it in spring and you will have kale leaves all summer. It even lasts into the cooler weather of fall.

PARSLEY

Parsley is a famous garnish for many dishes. It’s a take-itor-leave-it vegetable that you either love or hate. The great part about parsley is it comes back year after year unless you dig up the soil. Start your planting in the spring.

HOT OR SWEET PEPPERS

Other vegetables, which are easy to grow, are hot or sweet peppers, which many spicy dishes use. Depending on your soil type, carefully select your pepper plants or your peppers will not thrive. Since peppers can be inexpensive and easy to grow, it’s an economical choice for your garden.

TOMATOES

Here in California, tomatoes are a mainstay of gardeners. You have thousands of varieties to choose from, and tomatoes go into so many recipes, it’s definitely worth planting them. They need plenty of water, but that’s about it.

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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

California: Alameda County

Founded: March 25, 1853

Population: 1,510,000 Area: 821 Seat: Oakland

California: Contra Costa County

Founded: February 18, 1850

Population: 1,050,000 Area: 804 Seat: Martinez

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