Southern California Rental Housing Association Rental Advisor Magazine - April 2024

April 2024

Composting at Multifamily Properties Page 22

Ensuring Your Building’s Resilience to Earthquakes Page 28

State Legislative Update Page 31

From the Publisher of

Termites!!!!

NO TENANT MOVE OUTS

Guaranteed!

COVID SAFETY - Protecting families is more important than ever. At Xtermite, that's been our top priority all along. Our protective gear keeps you and our technicians safe, and our XT-2000 Orange Oil Plus gets rid of termites while you stay home.

We've been doing that all along too. Those tenting-and-toxin companies are no help while you're sheltering in place, and that stuff they use should never enter your home anyway. Want the protection Xtermite has been offering all along? Now's the perfect time to call for your free termite inspection, and get your termites gone.

· · · · · · · · · · · ·

XTERMITE’S XT-2000 ORANGE OIL PLUS TERMITE SERVICE:

No Tenant Displacement Free Comprehensive Inspection No Utility Cut-Off Minimally Invasive Procedure Least Toxic/Low Impact Products No Security Concerns 2 Year Full Structure Warranty (includes Annual Check-Ups and Treatments) Renewable Options Fully Licensed, Bonded and Insured (NO Sub-Contracted Personnel) Preventative Treatments Included (where applicable) No Roof Insurance Required No ADA Liabilities

Let Xtermite’s Experts in Termites and Wood Destroying Organisms resolve your tenant’s termite concerns.

Great smell of Oranges!

800-858-1694 www.xtermite.com

S e r v i n g A l l O f S a n D i e g o Co u n t y California State Contrac tors License #748915

SCRHA Member SDCAA memberSince since1977 1977 americanbathtub

Porcelain and Fiberglass Sur faces 619-265-9200 858-642-9200

North County 760-940-9200

Bathtub Refinishers

Bathtub Liners / Complete Bathroom Remodels

• Expert porcelain and fiberglass refinishing • Repairs of chip and cracks or completely refinish • Weak bottoms

• Designed to fit over your existing tub.

• Commercial and Residential • Will not disturb plumbing, walls or floor.

• Will not chip, dent, crack or peel.

• Installed in just two hours for same day use.

619-265-8126

All of our S er vices: • Porcelain Sinks • Porcelain Bathtubs • Wall Sinks • Bath Bowls • Kitchen Sinks • Kitchen Counter Tops

• Fiberglass Bathtubs • Fiberglass Showers • Pedestal Sinks • Vanity Counter Tops • Tile Surrounds • Wall Surrounds

• Crack & Chip Repair • Plumbers Cutouts • Terrazzo Pans • Complete Support & Cutouts

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

3

2024 EXECUTIVE OFFICERS President Aiesha Blevins, Greystar

President-Elect Buck Buchanan, Buchanan Property Management Corp.

Vice President Todd Henderson, Independent Owner

MAGAZINE STAFF Publisher Apartment News Publications, Inc. Design & Layout Travis Watson, Production Director Editorial Review Lindsey Lee, Marketing Manager

Secretary Matt Ruane, Liberty Military Housing

ASSOCIATION STAFF

Treasurer Abigail Rex, American Assets Trust, Inc. Legislative Chair Allison Pfister, CPM®, ARM®, Greystar Immediate Past President Lucinda Lilley, CPM®, CAPS®, GRI®, Bridging Influence

2024 DIRECTORS Alex Winborn, H.G. Fenton Company Eric Sutton, Creaser & Warwick, Inc. Jennifer Ford, Douglas Allred Company Kayla Roeder, CPM®, ARM®, Cambridge Management Group, AMO® Kimmi McBryde, Cushman Wakefield Lisa Mason, Baldwin & Sons

Alan Pentico, CAE, Executive Director apentico@socalrha.org 858.278.8070 Olivia Galvez, Director of Business Operations/Operational Advice ogalvez@socalrha.org 858.751.2217 Molly Kirkland, mkirkland@socalrha.org 858.751.2200 Kim Zebroski, kzebroski@socalrha.org 858.751.2220 Lindsey Lee, PCM Digital Marketing, CDMP, Marketing Manager llee@socalrha.org 858.751.2218 Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070 Braden Haycock, Education Manager bhaycock@socalrha.org 858.751.2219 Evan Prado, Events Coordinator eprado@socalrha.org 858.7521.2214

Lorri Goldmann, Avenue 5 Residential Mark Feinberg, Heinz & Feinberg Patrick Kappel, Dandy Lion Real Estate Scott Ledesma, Generation Contracting & Emergency Services, Inc. Shannon Kelly, Independent Owner

HONORARY LIFE ADVISOR Wesley Harker

Southern California Rental Housing Association Rental Advisor Magazine is published by the San Diego Multi-Housing Corporation (SDMHC) a wholly owned subsidiary of the Southern the author's views and do not necessarily represent those of the Southern California Rental Housing Association or SDMHC. All rights reserved. Materials may not be reproduced or translated without prior written permission by the publisher. Contact the Southern California Rental Housing Association at 858.278.8070 or visit socalrha.org for more information.

Advertising - We do not guarantee or endorse the products or services of any of the advertisers, but and respect for one another. Information provided in the advertisements are the sole responsibility of the advertiser. For concerns please contact the advertiser directly.

Our Address

Southern California Rental Housing Association Toll Free: 888.762.7313 Fax: 888.871.5229 socalrha.org

4

CONTRIBUTE: Educational articles in Rental Advisor Magazine must be between 500-800 the 10th of the month before publication. Submit to socalrha@aptnewsinc.com.

ADVERTISE: Contact the team at Apartment News Publications, Inc. at 714-893-3971

or email scrha@aptnewsinc.com for advertising information, including rates, production

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Volume 66 Number 04 April 2024

APARTMENT NEWS PUBLICATIONS, INC. P.O. Box 3089 Seal Beach, CA 90740 www.aptnewsinc.com (714) 893-3971 FOUNDER : Don Smeallie, Sr.

PRESIDENT’S MESSAGE: DEFENDING OUR INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

By Aiesha Blevins EXECUTIVE DIRECTOR’S MESSAGE: A BUSY SPRING AT SCRHA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

By Alan Pentico, CAE

PRESIDENT: Don Smeallie, Jr.

IPM EXPO SCHEDULE OF EVENTS (PASADENA, CA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

PRODUCTION DIRECTOR: Travis Watson production@aptnewsinc.com

Contributed by the Apartment News Publications, Inc. UNLOCKING EFFICIENCY: THE ROLE OF RATIO BILLING FOR ACCESSORY DWELLING UNITS. . . . . . . . . .19

CREATIVE DIRECTOR: Sean Buur sean@aptnewsinc.com

By Livable Content Team

OFFICE ADMINISTRATOR: Jessica Watson admin@aptnewsinc.com

COMPOSTING AT MULTIFAMILY PROPERTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

By Kari Negri

Need to update your address or wish to be removed from our mailing list? Please email ENSURING YOUR BUILDING’S RESILIENCE TO EARTHQUAKES: IS IT BUILT ON SOLID GROUND?. . . . . . .28 us at admin@aptnewsinc.com

By Ali Sahabi

FEATURED COLUMNS:

CALIFORNIA CAPITOL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

By Pat Moran CALRHA POLICY UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

By California Rental Housing Association

Unlocking Efficiency: The Role of Ratio Billing for Accessory Dwelling Units By: Livable Content Team Pg. 19

EASE BIG TAX BILLS FROM REAL ESTATE SALES OR INCOME USING BONUS DEPRECIATION . . . .37

By Christopher Miller, MBA LEGAL QUESTIONS & ANSWERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

By Kimball, Tirey & St. John LLP THE CASE FOR A FREE-MARKET APPROACH TO SECURITY DEPOSITS. . . . . . . . . . . . . . . . . . . . . . . .43

By Mercedes Shaffer CALENDAR OF UPCOMING COURSES & EVENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

Ensuring Your Building’s Resilience to Earthquakes

by Ali Sahabi Pg. 27

PROPERTY MANAGEMENT DIRECTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 SUPPLIER MEMBER DIRECTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 ADVERTISING DIRECTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Apartment Management Magazine is published monthly by Apartment News Publications, Inc. at 15502 Graham Street, Huntington Beach, CA 92649. Subscription Rate: $24.00/year with zip codes beginning with 900-935, (outside of L.A. & Orange counties $72.00/year.). The publisher and Apartment News Publications Inc. assume no responsibility for opinions expressed in articles appearing under an author's name. The contents of this publication may not be reproduced without written permission from the publisher. Bulk rate postage is paid at Bell Post Office BMC, 5555 Bandini, Bell, CA 90201.

For Advertising Information: 1-800-931-6666 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

5

SCRHA Housing Provider & Resident Rights and Responsibilities

As members of the Southern California Rental Housing Association, we are partners in creating a thriving community by providing quality rental housing for all. We value our residents, our fellow members, and our community and are working to support a healthy housing ecosystem through advocacy, education, and collaboration.

OUR VISION

Reenvisioning quality housing for all

OUR MISSION

To create a thriving rental housing community through advocacy, education, and collaboration

As housing providers, we believe we have the responsibility to provide California renters with: Quality housing with habitable and healthy living conditions.

Freedom from arbitrary eviction, retaliation, or discrimination in line with all federal and state fair housing laws.

Fair and equal resident protections and policies that balance the needs of renters, housing providers, and the community.

A voice in housing decisions with respect and access equal to that of housing providers.

An innovative and collaborative housing ecosystem where government, businesses, housing providers, and rental advocates work together to solve the region’s housing issues by identifying the underlying problems and crafting balanced solutions.

Adherence to housing quality and equity standards and regulations.

All California renters also have a responsibility to their housing provider to: Review and follow rental agreement terms, including timely rental payments.

Maintain a clean and habitable home.

Be a good neighbor by respecting others’ peace and quiet.

Provide timely reporting of any issues and necessary repairs.

Keep open lines of communication with the property owner or manager.

SOCALRHA.ORG 6

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Aiesha Blevins 2024 President Southern California Rental Housing Association

President’s Message: Defending Our Industry

A

s we embark on the second quarter of the year, it’s clear that 2024 will be a turning point for rental housing providers. The adage, elections have consequences, has never been truer, especially for rental housing providers throughout California.

We have faced serious threats and successfully defeated numerous attempts to repeal CostaHawkins and statewide rent control. Even though the industry worked together to defeat Prop 10 in 2018 and Prop 21 in 2020, we are once again facing a critical threat to the industry with the “Justice for Renters Act” ballot initiative that is on the ballot in November 2024.

I want you to know that the Southern California Rental Housing Association is working with our statewide coalition, California Rental Housing Association (CalRHA) to raise $5 million to defeat Mr. Weinstein by a large enough margin that he doesn’t waste his time and try again.

To help aid this coordinated effort, the SCRHA Board of Directors implemented a voluntary Political Action Committee donation of $7.39 per unit. These funds will help inform voters of the true consequences of these policies through comprehensive campaigns appearing on television, digital channels, and print media. Polling shows that with the right messaging, we can convince voters of the measure’s flaws. But this comes with a price tag.

We understand that you are operating an essential business in a challenging environment, so we do not make this ask lightly. Currently, San Diego, Riverside, and Imperial Counties do not have rent control. If this

initiative passes, policies that once only impacted rent-controlled communities will impact EVERY rental unit in the state.

If passed, the “Justice for Renters Act” will: •

Eliminate Cost- Hawkins Protections, allowing local governments to impose and expand rent control to include single-family homes, condominiums, and new developments.

•

Eliminate rent increases upon vacancy (vacancy decontrol).

These changes will mean that you may face strict policies that currently only impact rent-controlled communities and the exemptions in the Tenant Protection Act (AB 1482) will likely go away.

Before you say that you can’t afford to contribute, ask yourself if you can afford to answer to unelected rent control boards or if you can afford to be prohibited from raising rents to fair market value when your unit becomes vacant. These impacts are only the start, with many additional impacts still unknown. This is the year to make a powerful statement and support the fight against rent control by contributing $7.39 per unit.

We have the tools in place to fight for your business, but your support is critical. I encourage you to contribute to our efforts to defend the industry and share our message with your friends, family, and colleagues. It will take all of us working together to defeat this latest attempt to enact statewide rent control.

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

7

JOIN US FOR ANOTHER DAY IN PARADISE...

Southern California Rental Housing Association is thrilled to invite you to the 2024 Rental Housing Conference & EXPO. Get ready for "Another Day in Paradise" as we bring you a day filled with exploration, connection, and education on Thursday, April 25 from 8:30 AM to 3:00 PM.

APRIL 25, APRIL 25, 2024 2024

TRADESHOW 75+ EXHIBITORS

Event Sponsors

PRIZE GIVEAWAYS

WHY YOU GOTTA BE SO MEAN

8:30 A 8:30 AM M - 3:00 3:00 PM PM

Town T own & Country Country Hotel Hotel 500 Hotel Hotel Circle Circle N 500 San Diego, Diego, CA CA 92108 92108 San

MAINTENANCE COMPETITION

Lisa Trosien, Keynote Speaker

Learning to Recognize Fraud Dan Firestone, CIC Reporting California Balcony and Deck Inspection Requirements Matthew Boomhower, Esq., AIA, Southern Cross Property Management Consultants Tips for Communicating with Any Resident Dari DeSousa, National Conflict Resolution Center Legislative Issues and Advocacy Q&A Molly Kirkland, SCRHA Director of Public Affairs

Associationwide Sponsors

SCRHA Owner or Property Manager Members: $15 Individual Tickets Owner or Property Manager Non-Members: $30 Lunch Voucher: $35

Register Today WWW.SOCALRHA.ORG/EXPO

8

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Alan Pentico, CAE Executive Director Southern California Rental Housing Association

A

Executive Director’s Message: A Busy Spring at SCRHA

pril is one of my favorite months here at the Association. Spring is in bloom, and some of my favorite events of the year are just around the corner. I’d like to take a minute to thank the hardworking volunteers on the Education and Events Committees. They have put together “Another Day in Paradise” with five educational seminars, a full tradeshow, prize giveaways, and an exciting new competition with Maintenance Showdown!

You won’t want to miss this incredible day of education, networking, and fun. Your ticket includes access to all educational sessions, including the keynote address with Lisa Trosien of Apartment All Stars and an information-packed Legislative Update from SCRHA’s Director of Public Affairs, Molly Kirkland.

We’re very excited to announce our inaugural Maintenance Showdown Competition that will take place in the afternoon at EXPO. Maintenance teams will compete in a Jeopardy-style game to show off their knowledge and hands-on skills. Whether you’re ready to show off your skills or want to cheer on your favorite team, the Maintenance Showdown is sure to be a thrilling competition.

This spring, we were also busy moving! Our new address is 9655 Granite Ridge Drive, Suite 200, San Diego, California, 92123. While we love to meet up with our members, in-person visits to our office will be made by appointment only. You will need to call the office at 858.278.8070 or email info@socalrha.org to schedule your appointment.

As part of this move, our classes will be online webinars unless otherwise noted. You will need to log in to your Member Compass to join the webinar.

You can find tutorials online at socalrha.org or call us if you need help accessing your account.

It’s been a busy few months, and the pace is only going to pick up as we get closer to the November election. I would like to thank everyone who has supported our efforts to defend the industry by contributing to the SCRHA-PAC. Your donations will fund the fight against rent control, and it will take all of us working together to succeed.

Now let’s get out there and enjoy the beautiful weather!

April is also Fair Housing Month and commemorates President Lyndon Johnson signing the Fair Housing Act into Law in 1968. This landmark legislation affects all rental housing providers, and it’s vital that you understand how to comply with both federal and California Fair Housing laws. Attend our Fair Housing Part I & II training on April 9 to refresh your knowledge and earn continuing education credits towards your credential.

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

9

2 0 2 4 S PO N S O R S H I PS Increase brand recognition and show your support with an event sponsorship. Sponsor early to maximize your visibility!

Diamond Sponsor 2 Available $12,000 Exhibitor Member | $12,500 Exhibitor Non-Member

Ruby Sponsor (Stage) 2 Available $5,000 Exhibitor Member | $5,400Exhibitor Non-Member

Sapphire Sponsor (360-Selfie Booth) 1 Available $2,000 Exhibitor Members | $2,500 Exhibitor Non-Member

Emerald Sponsor (Tote Bag) 1 Available $1,500 Exhibitor Member | $1,800 Exhibitor Non-Member

Amethyst Sponsor (Raffle Prize) 2 Available $1,000 Exhibitor Member | $1,250 Exhibitor Non-Member

Garnet Sponsor (Lanyard) 1 Available $950 Exhibitor Member | $1,000 Exhibitor Non-Member

APRIL 25, 2024

Pearl Sponsor (Lounge) SOLD $700 Exhibitor Member | $950 Non-Member

Amber Sponsor (Decal) 1 Available

8:30 AM - 3:00 PM

$700 Exhibitor Member | $950 Non-Member

Jade Sponsor (Water Station) SOLD! $1,150 Exhibitor Member | $1,350 Exhibitor Non-Member

Onyx Sponsor (Lunch) 2 Available $4,000 Exhibitor Member | $4,750 Exhibitor Non-Member

Opal Sponsor (Coffee Station) 1 Available $4,200 Exhibitor Member | $4,500 Exhibitor Non-Member

TOWN & COUNTRY HOTEL Event Sponsors

Coral Sponsor (Keynote) 1 Available $5,000 Exhibitor Member | $5,800 Exhibitor Non-Member

Passport Sponsor 8 Available $675 Exhibitor Member | $825 Exhibitor Non-Member

Associationwide Sponsors

General Education Session Sponsor 4 Available $550 Exhibitor Member | $1,000 Exhibitor Non-Member

Become A Sponsor www.socalrha.org/expo

10

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

socalrha.org | 58.278.8070 events@scoalrha.org

newmanwindows

LICENSE #570472 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

11

Mitigate Risk with NAA Click & Comply

RISK MITIGATION Automate and trust that your properties NAA’s newest performance management and compliance software allows property management companies to consolidate processes naahq.org and systems into one place for ease of use, transparency and communication for your teams.

are remaining compliant.

Benefits: RISK MITIGATION

SOPS

• Mitigate risk across your entire portfolio • Extend the list of costly equipment INSPECTIONS

PREVENTATIVE MAINTENANCE

• Achieve consistency and compliance • Save time and avoid costly violations • Build accountability and trust through real time visibility

REPORTING

COMPLIANCE

MUNICIPAL CODES

PREVENTATIVE

Affiliate Logo Here

Learn more or request a demo at comply.naahq.org.

12

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

CELEBRATING CELEBRATING CELEBRATING

Entrada | Greystar

El Pedregal | Cirrus Entrada | Greystar Limoncello

Clairemont Rental Properties Hitching Post Motels, Inc. Whalen Properties Katherine L. Ries Company Jack Zolezzi Trust La Casa Bonita Apartments

GTF Properties James and Mary Sue Hamilton Donna Webber Company Sue and Vince Cooke

John Belanich Company Marshall Wilson Company Creaser & Warwick, Inc. Ben Gallardo Company DNC Limited Partnership Pacific Realty Sales & Management The Kevane Company, Inc. Linda Cocking Company Elinor van den Akker Company Robert and Rita Konczalski RG Investment Real Estate Services Inc. Lockwood Family Trust Caesar Oriol Company Tom LeDuc Company Fred and Shirley Salzer Jaswant Toor Company Fleetwood Properties

ParkSteeve La JollaCompany Apartments Rolf

Klein Family Trust Company Kenneth Rundlett

Laurence Carolyn Kaiser David andand Susan LaRose Errol Tonsky Company Juniper Management

Gregory Robinson Company Pacific View Companies, Inc. Richard Hancock Company Guava Gardens Apartments

Sierra Mar Properties LLC - Paul Hasley Pacific Commercial Management, Inc Mary Ann Tarantino Company Nancy Biberacher Company Terry Moore, CCIM, Inc. Sid’s Carpet Barn, Inc. Jerry Conway Company Marissa Moncrief Company IHA Partners Inc. Carol G. Swartz Trust Jeffrey Malik Company Suzanne Demong Company G. Beit-Ishoo / SeaDate PCF Properties George and Celida Haddad A & C International Al Smithson Company

Mark Maeder Longley FamilyCompany Trust - Nancy Longley Trustee Apartments.com Waltwood Properties

Marilynn Nemeroff Company Walsh Properties Nancy Mullins Company Sam’s Heating and Air Conditioning, Inc. NLJ, KevinLLC Swartzberg Company Brothers II Sue A. Daugherty Adriano DaSilva, Jr.

1900

1900 1900 1968 1950 1951 1968 1954 1969 1963 1970 1965 1972 1965 1975 1966 1977 1966 1977 1966 1978 1968 1978 1972 1979 1976 1979 1976 1980 1979 1982 1980 1984 1981 1982 1986 1985 1987 1985 1987 1988 1989 1989 1990 1990 1990 1990 1990 1991 1991 1992 1993 1993 1994 1994 1994 1995 1997 1995 1997 1995 1997 1996 1997 1997 1998 1998 1998 1998 1998

an ANNIVERSARY This Month 10+ years of membership an ANNIVERSARY This Month 10+ years of membership

Yvonne Coover-Stone Company

1999

Wilma H. Healey Company CarlPropertiesE Venstrom Company T1

1999 1999

M. C. Malone Contracting Service Judy Company Josephine Company Joe Gorst |Cree Richard Nelson

10+ years of membership

2000 2001 2000

Wakeland Housing & Development Award Property Mgmt ATI Restoration, LLC Ronald Endeman Company David Olson Company Lance Faucett Company Muraoka Enterprises Inc. SunRidge Properties, Inc. People Helping Others Prop. Mgmt.

Robert Brooks Company Law Offices of Andrew C. Laubach The Stratton | Fairfield Residential Walz Properties| Fortuna Investment Group

2003 2003 2004 2004 2004 2004 2004 2004 2004 2004 2005 2005 2006

an ANNIVERSARY This Month 2000

Southwesterly Properties Legar Management

RJW Properties, Inc. Harding Street Apartments, LLC Laura Sperry Company Workright Property Services Inc

Josie Marshall Hill Company Mark Company Henry M. Dammassa-Uglik Miller Elizabeth Company

Jangan CaliforniaPeasquitos Properties,Point LLC Apts.

REC Properties| Glen J. & Honig Norman Weitzberg Dennis Tina & Daneri

2002 2002 2003 2003

2005 2007 2005 2007 2006 2007 2008 2009

Mira Apartments | Simpson KevinBella Fayad Real Estate ServicesProperty Group Araz Yacoubian Company Chris Bushard Company

2009 2009 2010

Tom Brady Company Michael C. Borden Company Axiom Real Estate Susan Miller Company Barry Treahy Company Sherwin-Williams Co. Dennis and Marian Pierce Gloria Miller Company Jesus and Yolanda Arroyo ASV Management Betty Bark Company MartinM. Laracy Company David Pierce

2010 2010 2010 2010 2011 2011 2011 2011 2012 2011 2012 2012 2012

Sherry Bird Company Stelco Investments, Inc. Sciuto Properties Martin D. Coyne

Terry Zanella Company Tamra Fuller Fountas Ann Bossler Company Buchanan Property Management Corp.

Mr. and Mrs.Company Robb M. Crowder Brian Steer PacificProperty Green Landscape, Inc. Eagle Management

Arbors California Oaks Apartment Homes Frank A.atLueke Company JDS UnnaSecurity Vista LLC Silverado Apartments (RCMI) Mr. and Mrs. Dale Jones SatisFacts Research Income Property Advisors Inc.

2009 2010 2010 2010

2012 2012 2013 2012 2013 2013 2014 2014 2013 2014 2014 2014 2014 2014

1999

account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please account, orpublications were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please contact the department at publications@socalrha.org contact the publications department at publications@socalrha.org account, or were taken under new ownership, the member will not appear here. If you feel that your membership should be in this list and is not, please contact the publications department at publications@socalrha.org SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

13

FEATURING

MADE IN THE USA

18 45

SO CAL’S LARGEST CABINET WAREHOUSE

KITCHEN STYLES Assembled & In STOCK

VANITY TOP Styles IN STOCK

65 14

FEATURING

MADE IN THE USA

VANITY STYLES Assembled & In STOCK

100+ COLORS SHOWER DOOR Styles IN STOCK

MILAN SERIES EUROPEAN CABINETS

OVER 40,000 CABINETS Assembled and In Stock

MODERNA SHAKER WHITE

HONEY OAK

SANTANA PEBBLE GREY 50 YEARS IN BUSINESS

BUILDERS SURPLUS KITCHEN & BATH CABINETS

See Our Entire Selection Online 14

SIENNA BEECH

MODERNA SHAKER WHITE

ECHO WHITE

GLAZED GREY

DENVER LIGHT GREEN

LANCASTER ALDER

DAVOLA IRON SHAKER

TUSCAN GREY

CLASSIC BLUE

MOJAVE BAMBOO

ODEN GREY WALL HUNG

WILLIAMSBURG SANDSTONE

LANCASTER ALDER UNFINISHED

(888) 275-1056 www.BuildersSurplus.Net/APT

1800 East Dyer Rd • Santa Ana, CA 92705 Tuesday-Saturday 7:30 AM - 6 PM Closed Sunday & Monday

WHY PAY MORE? SEE IT, BUY IT, TAKE IT HOME TODAY!

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

Welcome New Members PROPERTY MANAGERS

Dwell Management Co.

Whittington Property Management Inc.

INDEPENDENT OWNERS Andrea Deckwerth and Evan Galbo Cambridge Holdings Compass Daniel Hecko - Company Daniel MacDonald & Stephen Leonard Diana Parmar Company GLO Company Integrity Housing Judith Kramer Company

SUPPLIERS

ESA Multifamily Energy Savings Program Executive Coatings & Contracting HandyTrac Systems Lowes Pro Supply

M. Elliott Martin Grover Parkline North Park | Greystar Suzanne Papike Company Tony Tian Vanessa Herbert Company Villa De Estes Apartment Watson Properties Zig Capital LLC

Pfister Sprint Postal Products VITALITY IO, Inc. WithMe

Voices of the Industry

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

15

Presented by the Apartment Association of Greater Los Angeles

May 15th, 2024 - 9am-3pm - Pasadena Convention Center

SCHEDULED SPEAKERS STAGE 1 (HALL A)

10:00 am

9:15 am

THE MOST EXISTENTIAL THREAT TO RENTAL HOUSING: PROPOSITION 21

Daniel Yukelson, Executive Director, Apartment Assn. of Greater Los Angeles Matt McGarty, Media Strategist and Campaign Manager, Russo McGarty & Assoc.

Rent Control is Back on the Ballot in 2024 – Learn What You Must Do to Defeat It! The Proposed Justice for Renters Act Will Strip You of Your Property Rights!

Learn what you can do to help defeat this latest attack on rental housing providers. We did it in 2018 and 2020, we can do it again in 2024!

WHAT CAN LANDLORDS DO? WHAT CAN’T THEY DO? WHO THE H#!! KNOWS ANYMORE? EVICTION ATTORNEY MIKE BRENNAN KNOWS! Mike Brennan | Brennan Law Firm Come discover the “New Normal” in evictions and landlord/tenant matters in southern California.

From rent control to tenant protections, discover the new eviction landscape and the strategies for navigating it.

11:00 am

DISCOVER THE TOP 5 MUST DO TAX STRATEGIES FOR REAL ESTATE INVESTORS

Tony Watson | E.A., NAEA Fellow, Robert Hall Taxes & Associates Embark on a tax-saving journey with Tony Watson, a trusted Tax Advisor from Robert Hall & Associates, in our upcoming webinar, “Discover the Top 5 Must Do Tax Strategies for Real Estate Investors.”

Tony’s wealth of experience is your key to unlocking a realm of financial opportunities within the real estate landscape.

2:00 pm

1:00 pm

LEGAL HOUR WITH THE ONE & ONLY DENNIS BLOCK Dennis Block | Dennis P. Block & Associates Dennis P. Block is the founder and managing partner of the LAW FIRM OF DENNIS P. BLOCK AND ASSOCIATES. The firm specializes in residential and commercial eviction of tenants. Founded in 1976, the firm has become the leading eviction law firm in tenant eviction in the State of California. To date, the firm has handled over 200,000 tenant evictions in California.

USING 1031 EXCHANGES TO UPGRADE YOUR PORTFOLIO & AN OUTLOOK ON THE REAL ESTATE MARKET Rusty Tweed | TFS Properties We are in uncertain economic times and many investors are unsure as to what will happen to the real estate market. Join TFS as we take a look at what to expect in the latter half of 2022 & how you can use a 1031 Exchange to better position yourself for this recession.

GUEST APPEARANCES & EXPERT ADVICE

“A MINUTE WITH WIDGET” – PROPERTY MANAGEMENT CONSULTING

Access the best advice on any property management or landlord and tenant related issue. Trying to navigate through the constant challenges of becoming the best landlord can often feel like it’s one hell of a lonely road.

It’s a constant fight between staying on top of the most recent changes in legislation, keeping your rental units in habitable conditions and trying to keep your rentals off the market! When all three of these conditions are met, we have happy landlords, happy tenants and steady cash flow.

Appearance will be MANAGEMENT made in the AAGLA Booth 16(Guest APRIL 2024 - APARTMENT MAGAZINE AMM6 throughout the day)

SCHEDULED SPEAKERS

12:00 pm

11:30 am

11:00 am

STAGE 2 (HALL B) HOW DELAWARE STATUTORY TRUSTS CAN HELP INVESTORS INCLUDE BOTH ANCHOR AND BUOY INVESTMENT ASSETS IN THEIR PORTFOLIOS. Orrin Barrow | Senior Vice President, Kay Properties & Investments One of the unique things about Delaware Statutory Trust investments is they allow investors to include a variety of properties with different investment goals. For example, a DST portfolio can include properties that have flexibility to increase potential returns throughout the lifecycle of the asset depending on market conditions, and properties that are designed to deliver stable, reliable income over a long-term basis.

SB721/SB326 EXPLAINED, WITH ADUS AND SEISMIC RETROFITTING Helen Fower & David Tashroudian | One Structural Own a condo or building with 3 or more units? Learn how to comply with SB721 & SB326 - every step you need to know! Also hear about increasing monthly income with ADUs and complying with seismic retrofitting.

OUTSMARTING TENANT APPLICATION SCAMS Kari Negri | SKY Properties An eye-opening seminar on tackling the escalating issue of tenant application fraud and safeguarding your property investments. Learn how to outsmart scammers, detect red flags, and ensure a secure rental environment for all.

2:00 pm

CURRENT LEGAL STRATEGIES FOR EVICTION AND RENT COLLECTION Edrin Shamtob | Senior Attorney, SNS Law Group LLP Edrin Shamtob is the senior attorney of SNS Law Group LLP with nearly a decade of experience specializing in commercial and residential evictions and unlawful detainer actions. Edrin has successfully litigated hundreds of cases for both plaintiffs and defendants in a variety of disputes including eviction and landlord/tenant actions. Edrin has successfully litigated hundreds of cases for both plaintiffs and defendants in a variety of disputes including eviction and landlord/tenant actions.

2:30 pm

UNRAVELING THE MYSTERY OF 1031 EXCHANGES William Exeter | Exeter Group, LLC Learn what really matters for a successful 1031 exchange. This educational seminar will include a discussion of 1031 exchange issues such as qualified use and like-kind property requirements (what really qualifies), reinvestment requirements (how much do you really need to reinvest), qualified trust accounts or qualified escrow accounts, 45 and 180 calendar day deadlines, identification rules and requirements, forward, reverse, improvement and foreign property 1031 exchanges, selecting a qualified intermediary and more.

GUEST APPEARANCES & EXPERT ADVICE (CON’T)

LEGAL Q&A WITH NIV DAVIDOVICH, ESQ.,

Attorney Niv Davidovich joins us in the AAGLA booth to address your legal questions, offering many practical solutions and legal strategies, and to share important updates on your rights to evict and many other recent regulations impacting rental housing providers. (Guest Appearance will be made in the AAGLA Booth at Noon)

MAKING MONEY WITH ACCESSORY DWELLING UNITS (ADUS)

Discover How You Can Improve Your Cash Flow with California law, Assembly Bill 1033!

Join our ADU expert, Seth Phillips, a.k.a. “Mr. ADU,” as he discusses the benefits of Senate Bills 9 and 10 and new ADU laws, and how you can easily, substantially improve your revenue outlook by taking advantage of these new laws. (Join the discussions in the ADU Feature area -- Booth 424 -- times TBA)

WWW.IPMEXPO.COM SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

17

PREFERRED PARTNERS The Southern California Rental Housing Association partners with industry leaders to provide value-added products and services.

These businesses offer special discounts, rates, and services to members of the Southern California Rental Housing Association.

LEARN MORE AT SOCALRHA.ORG 18

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

UNLOCKING EFFICIENCY:

THE ROLE OF RATIO BILLING FOR ACCESSORY DWELLING UNITS

A

Contributed by the Livable Content Team

s the demand for housing intensifies and urban spaces become more constrained, innovative housing solutions are gaining traction.

Accessory Dwelling Units (ADUs) have emerged as a practical and sustainable approach to address housing challenges while making the most of available space to create small, affordable housing opportunities. But with the inclusion of ADUs on a property comes the challenge of fairly recovering utility costs. Ratio Utility Billing is the answer! Read on to learn more about how you can make the most of this revenue-generating opportunity.

WHAT ARE ACCESSORY DWELLING UNITS (ADUS)?

First things first – let’s talk about ADUs. You might be more familiar with them under other names like “granny flats,” “in-law suites,” or “backyard cottages.” Essentially, ADUs are secondary living spaces attached to or located on the same property as a primary residence. They can take various forms, including basement apartments, garage conversions, or detached cottages.

ADUs have been gaining popularity for several reasons. They provide a practical solution for families seeking additional space for elderly parents, adult children, or guests. Furthermore, they open up opportunities for homeowners to earn extra income on their property.

THE INCREASING NEED FOR ADUS In recent years, housing affordability has become a pressing issue in many cities and neighborhoods.

The high demand for housing, coupled with limited space and rising property prices, has made it challenging for people to find suitable homes within their budgets. ADUs make use of available space on a property, homeowners can expand their living options or provide affordable rental housing to others.

THE UTILITY COST CONUNDRUM Now, let’s talk about utility costs. It’s no secret that utility bills can take a significant chunk out of a homeowner’s budget. When an ADU is added to a property, the utility consumption naturally increases.

This brings up a vital question: Who should be responsible for paying those additional utility costs?

Livable is dedicated to conserving water and other natural resources while helping independent rental owners get more from their investments. To learn more about Livable’s innovative cost recovery solutions and educational initiatives for residents, visit livable.com/apn.

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

19

In some cases, homeowners might choose to include the utility costs for the ADU in the rental price. However, there’s a more equitable and efficient way to handle this: Ratio Utility Billing.

UNDERSTANDING RATIO UTILITY BILLING (RUBS) Ratio Utility Billing fairly distributes utility costs among multiple units on a property based on their usage. Instead of just passing on the entire utility bill to the ADU’s Resident or incorporating the costs into the rent, RUBS takes into account the proportionate use of utilities by each unit, without the expense of submetering equipment and installation.

Here’s how it works: The utility bill is divided between the primary residence and the ADU based on an algorithm. Typically, this is done by calculating the square footage and number of occupants in each unit. Each household pays only for the utilities they consume. Utility recovery platforms like Livable do the heavy lifting on the calculations - all you need to do is provide basic information and let the system do the rest. Livable also provides full transparency into utility use, giving Residents the opportunity to lower their bills through reducing consumption.

Important note: Check your local laws. You may need to use submeters for some utilities depending on where you live. Even if you do need or choose to use submeters, a professional payment platform like Livable can help you manage payments and stay in compliance.

BENEFITS OF RATIO UTILITY BILLING FOR ADUS 1. Fair, Transparent Allocation of Costs: Ratio billing ensures that the utility costs are distributed fairly based on consumption.

bills, they are more mindful of their consumption. What’s good for the planet is good for your wallet!

3. Financial Sustainability: For homeowners, ADUs can provide an additional source of income. But you can’t raise the rent every time the city raises water prices.

Implementing RUBS lets you maintain a healthy bottom line as utility costs, especially water, continue to rise.

4. Ease of Implementation: Ratio billing can be easily implemented by property owners and property managers. No separate meters or submeters are needed, making it a costeffective solution.

ADU’s can address housing challenges, provide additional income, and promote multi-generational living. Ensuring a fair and efficient utility cost recovery mechanism is essential to their success.

As the popularity of ADUs continues to rise, integrating ratio billing into these housing setups can unlock their full potential and contribute positively to housing diversity and affordability. “Livable is here to help,” says Livable CEO Dan Sharabi. “We want to help Housing Providers get the most from their investments and help encourage the conservation of valuable natural resources at the same time.”

So, if you’re a homeowner contemplating an ADU addition, keep the magic of Ratio Utility Billing in mind. It’s not just about fair billing – it’s about building a better, more inclusive future for everyone!

Sign up with Livable Pro today to easily manage rising utility costs for your ADU without breaking your bottom line.

2. Encouragement of Conservation: When Residents are responsible for their utility

DON’T LEAVE YOUR TENANTS UNDERWATER! Is your roof leaking? Ask us about our Leak-Free Guarantee!

(619) 501-2138 resilientroofing

Lic #247618 | resilientroofing.com | info@resilientroofing.com 20

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

drbalcony

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

21

Composting at Multifamily Properties

By Kari Negri, Chief Executive Officer, SKY Property Management

C

Dear Kari, what does composting look like for multifamily properties?

alifornia’s fight against the climate crisis takes a step up with the passage of Senate Bill 1383, aimed at reducing greenhouse gas emissions by requiring all multifamily properties to begin providing composting. This year, trash collection companies are rolling out a new system for apartment buildings throughout the City of Los Angeles and County of Los Angeles. Most of us who own apartment buildings know this is another item for the owner to add to their never-ending list of obligations, and on top of the problems this could cause (we will mention a few at the end of this article) we are also expected to educate employees and residents too.

All this being said, at SKY Properties, we have long been a “green” management company, championing advancements and seizing opportunities to create more environmentally sustainable housing, implementing green alternatives, ranging from appliances and fixtures to design inside and outside of our managed buildings. Environmental sustainability has been a core principle since the inception of the company, both as a value that benefits our community and our clients, but also the world at large. SKY Properties uses this as a strategy to benefit our clients as most of these environmentally friendly installments save money for building owners. It’s a “win-win” situation or as some say: “Saving GREEN to make GREEN $’s.”

The benefits of composting, in and of itself, are myriad. Composting decreases greenhouse gas emissions, it creates the opposite effect of trash

22

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

by enriching the soil, which in turn creates a more nutrient-rich source for our food (soil lacking in nutrients creates produce that is lacking in nutrients), and thus begins an incredible cycle that benefits everyone. It’s the gift that keeps giving, and although we like the idea of contributing, having tenants compost has led to some difficulties thus far, including incidents in San Francisco where it caused rodent problems and offensive smells.

This leads us to the question of what this means for building owners and management companies. What are the actual logistics of implementing composting into multifamily housing?

We spoke to a trash-collection company in Los Angeles, Waste Management, about what this change will be like, and what actions will need to be taken by the landlords.

Waste Management answered our questions with the disclaimer that these details may vary with different waste-collection companies. Nonetheless, the insight provided gives us an idea of what to expect as this rolls out.

• Where Does the Composting Go? Green composting bins are being provided by Waste Management to each building, and the composting goes straight into that bin. It can be emptied as loose food scraps, though containing them in a paper bag will help with cleanliness.

• How Big Will it Be? The size of the bin will be determined by the company based on the size of the building’s other bins.

• When Will it Be Collected? Composting will be collected with your trash according to the current schedule. Once SKY Properties

an application for exemption sent in on their behalf.

receives the green bins, the schedule will be verified with the specific waste-collection company.

Property managers who neglect to adhere to these regulations may find themselves subject to fines or penalties imposed by the state or local jurisdiction.

This is why it is imperative to stay informed to ensure a seamless adherence to Senate Bill 1383. Aside from ensuring that you’re adhering to the regulations, you should also keep in mind that composting has some risks and challenges to consider and avoid. First of which is contamination, as compost may contain pesticides, heavy metals, or other harmful substances that may originate from its source materials.

• Will Tenants Be Set-up to Compost Correctly? Yes. Either the collection service or the city will provide free pails for tenants to store their food scraps in before composting.

Management will provide the resources for obtaining their pails. When composting comes to your property, a leaflet will be provided with instructions for the tenants. There are also educational materials on the LA Sanitation website that SKY Properties will provide.

Another concern associated with composting involves the transmission of diseases. Compost can serve as a medium for microorganisms capable of inducing infections or allergic reactions in both humans and animals. In 2017, a woman in San Francisco sued her landlord, accusing him of negligence and breaching the contract. The woman contended that she experienced mold exposure and respiratory issues due to the insufficient maintenance of the composting system in her apartment building. She alleged that the landlord neglected to ensure proper ventilation, drainage, and cleaning of the compost bins, leading to the growth of mold and the emission of unpleasant odors. Furthermore, the woman asserted that the landlord failed to apprise her of the potential health hazards associated with composting.

• Won’t Compost Get Smelly and Make the Property Less Appealing? The tip that Waste Management shared is to have tenants keep their pail in the freezer, preventing their food scraps from becoming soggy and smelly; they advised that tenants take the frozen contents out to the green bin the night before or day of collection. This will prevent the bin (and the tenants’ units) from smelling. They are also permitted to dispose of it in a paper bag which will prevent the food from touching the bin.

• Does This Impact the Monthly Fee for Waste Hauling? With Waste Management there will not be a separate fee for composting.

Lastly, composting presents a fire hazard, either through spontaneous combustion or exposure to flammable materials. An incident in 2019 exemplifies this risk, as a fire erupted at a composting facility in San Jose during the processing of organic waste from various sources, including apartments. The fire persisted for several hours, emitting dense smoke that compromised air quality and visibility in the vicinity.

• What if Tenants Compost Incorrectly?

The policy at Waste Management is to start by leaving a note for management to address incorrect composting, and after several notices a penalty may be given. The representative added that they hardly ever need to leave notes and that tenants are adapting well to composting.

One of the bigger questions that we at SKY Properties have investigated for our clients is what type of situation will qualify a property to be exempt from composting. Regarding multifamily properties, there is one option—a physical space waiver. Buildings that fit the criteria of this waiver and do not have enough space to safely store a green composting bin will have

To mitigate these risks, it is essential to follow best practices, including using uncontaminated materials, maintaining proper compost conditions, and taking safety precautions such as wearing protective gear if necessary and keeping compost away from fire hazards. Remember, by sticking to these regulations and making sure that you are composting safely and properly, you’re not just ticking legal boxes — you’re unleashing the power of positive change on our planet.

ABOUT KARI NEGRI -- Name any aspect of the complex world of property management and Kari Negri has been at the forefront, forging new ground, fighting for the rights of property owners and tenants alike, adding value, and making a significant difference.

With a strong background in management, Kari founded SKY Properties, Inc. in 1997 to offer hands-on, boutique-level property management at a competitive price for multitenant property owners. Do you have a question for me? Please send your questions and comments to me at Kari@SKYprop.LA. SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

23

CALENDAR Register at socalrha.org Register for events and classes online at socalrha.org. Please note, all classes require pre-registration. Walk-ins are not accepted. See confirmation email for details.

Questions? Contact us at events@socalrha.org or 858.278.8070

April 9

9:00A - 4:00P

Fair Housing Part I & II A staple in the property management industry, this two-part series provides an in-depth look at Fair Housing. Register today and understand how you can learn valuable tips from a risk management perspective.

ICON KEY

April 10

10:00A - 11:30A

What You Should Know! SB 267: Section 8 and Credit History SB 267 allows applicants receiving rental subsidies, such as Section 8, to elect to provide alternative evidence of financial responsibility and ability to pay in lieu of credit history. Learn how this change impacts you from the experts at SCRHA and Kimball, Tirey, and St. John LLP.

ICON KEY

April 11

10:00A - 11:00A

SoCalRHA Forms Are you new to the rental housing industry? Have you been doing this for years but still have questions? If so, this is the perfect workshop for you! This webinar will take you through the entire leasing process, using our suite of forms as a reference. Let us help you take the guess work out of property management.

ICON KEY

24

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

April 25

8:30A - 3:00P

2024 Rental Housing Education Conference & EXPO Join us for a day of education and fun at the 2024 Rental Housing Conference & EXPO. Sign up today to enjoy a day with five seminars, a full tradeshow, and prize giveaways.

ICON KEY

May 1

2:30P - 3:30P

Supplier Council Join your Supplier Colleagues for on-trend roundtable discussions and guest speakers who will share best practices to thrive in a dynamic industry.

May 13

8:30A - 5:00P

CAMT: Certificate for Apartment Maintenance Technician

Maintenance technicians are critical for an apartment community’s operations. The CAMT Credential will ensure that you have all the necessary skills & knowledge expected of today’s maintenance technicians.

ICON KEY

May 16

9:00A - 10:30A

Marketing Your Rental Join Marketing maven, Kitty Callaghan, VP of Marketing at Wasatch for this session about building the best marketing plan for your rentals! Learn from an expert in the field to gain practical and applicable knowledge on marketing skills and tactics.

ICON KEY

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

25

forward-thinking. Now, Gen Z is not as concerned with recreation or downtime at the office, rather a financial certadeck investment in their future. However, stock options and a standard 401(k) won’t cut it when they are actually searching for “student loan assistance, tuition reimbursement, and maternity and paternity benefits.”

This generation values a work-life balance and is highly optimistic for the future, so these types of benefits will not only attract but also encourage them to stay and take advantage of these opportunities.

Gen Z job seekers cite a company’s feel if it’s a right fit, the offer commitment to diversity as an Cert-should be made.

“Nearly one in Choose A-Deck for your important factor in deciding five Genand Zersexperience expect a job offer deck inspections whether or not to accept an offer.” one week from the initial phone the for expertise and professionalism Here it is very important a screen.

The majority expect an that sets apart. company to talk the talk and walkus offer within two weeks.” Whether the walk. Diversity and inclusion this expectation is realistic or are the six main benefits cannot just be Here a phrase in your not, companies that make an of Cert-A-Deck completing company’s mission statement or actionable change to speed up a committee that meets once a their hiring process will win top your SB721 Inspections. quarter. This dedication needs Gen Z talent. to be seen in initiatives like 1. Expertise: asking one’s pronoun preference, *Statistics pulled from Yello 2. Comprehensive Approach: adequate accommodations for those who are 3. differently-abled, Detailed Documentation: policies to ensure fair and equal Generation Name Birth Years pay, etc.

4. Trusted Recommendations: Baby Boomers

Peace Mind: They Want to See Diversity and They Want an5.

Offer, andof They Inclusion Want it NOW 6. Liability Mitigation: Gen X This highly educated, highly Standard HR procedures make diverse generation is craving it difficult to establish a hiring Millennials a passion and dedication to committee and follow the correct diversity and inclusion from their protocol when extending an offer.

Gen Z employers.

As aofresult, “86% of Gen Z wants A Division Cert-A-Roof, Inc. CSLB 1071542 B, C39no part of that. They

1946-1964 1965-1980 1981-1996 1997-2012

westerntowing Simply and efficiently generate legally compliant leasing documents to better serve your residents.

Available in

50 States

Over

6,000,000

Units in the U.S.

Management Companies Utilizing NAA Click & Lease:

Legally Compliant

Ensure Compliance & Reduce Risk Online & Paperless

Streamline your process with default community settings, reporting & e-signatures.

Integrates With All PMS Software Integrates with your current Property Management Software. No need to retrain staff!

naahq.org/lease 2426 | Southern California Rental Housing Association RentalAMM6 Advisor April 2022 APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG april2022.indd 2

5/3/2022 12:40:19 PM

26

yardibreeze

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

27

ENSURING YOUR BUILDING’S RESILIENCE TO EARTHQUAKES: IS IT BUILT ON SOLID GROUND?

by Ali Sahabi, Optimum Seismic

Apartment buildings in the Greater San Diego Area may sit on soil that is prone to liquefaction, landslides or other instability when shaken by an earthquake.

Liquefaction. It’s a little like quicksand, but many times more deadly.

f your apartment building is located in Mission Bay, Mission Valley, Tierra Santa, Linda Vista, and many other San Diego communities, it’s best to have your building checked by professional structural engineer.

The United States Geological Survey defines it as the phenomenon that takes place when loosely packed, water-logged sediments at or near the ground surface lose their strength in response to strong ground shaking.

These destructive reactions to earthquake shaking can happen when ground vibrations cause soil particles to lose contact with each other. In the case of liquefaction, the ground vibrates like Jell-O – significantly increasing the potential for damage to buildings.

When it occurs beneath buildings and other structures, the results can be catastrophic.

I

You can check the City of San Diego website for an interactive map showing local liquefaction zones, landslide areas and earthquake faults – and zoom in to see if your building falls within those areas. Visit https://www.sandiego.gov/development-services/ zoning-maps/seismic-safety-study to access the map.

28

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

WHEN SOIL TURNS TO SOUP

It’s what contributed to the devastation of the 1989 Loma Prieta earthquake – when soil and debris used to fill in a lagoon to build the Marina District subsided, fractured and caused horizontal sliding of the ground surface.

The Atlantic magazine describes it as “horrifying.”

“Videos of its occurrence look like found-footage documentaries of the Second Coming,” the magazine wrote. “Buildings seem to simply slip away, the earth

gives out, and the once-steady structures slide into the morass.”

are often very powerful and destructive, the USGS explains.

But the science behind the phenomenon is straightforward. Liquefaction tends to occur where water has been – near rivers, harbors, reclaimed land, marshes – or in the case of Mexico City – on a lake that was filled in to build a community.

Guarding Against Risk

SLIPS AND SLIDES Landslides are another concern for earthquake-prone communities.

Earthquakes are a major cause of landslides, according to the USGS, which classifies landslides into five types: falls, topples, slides, spreads, and flows.

Falls are abrupt movements of rocks or boulders that become detached from steep slopes of cliffs, but they can also be represented by falls in the earth itself.

Topples describe instances when a section of land, such as a cliff, will fall onto lower elevations beneath it.

Slides describe a downward movement of a mass of land, like large quantities of sand moving down a playground slide.

Spreads refers to a fracturing of the earth, followed by slippage, like a custard dessert that has not set.

Flows are the most destructive type of landslide to structures, as they often occur without warning, move too quickly to escape, and due to velocity and material

The more scientists and engineers learn about ground movement responses to earthquakes, the better we can guard against damage.

Stanford University launched an unprecedented study to repurpose underground fiber-optic cables to measure soil properties in urban areas. In telecommunications, data are transmitted in the form of light traveling through fiber-optic cables, which are bundles of thin, glass rods. To measure soil properties, these Stanford researchers are looking at the tiny defects in those cables.

These cables – while underground – are constantly twitching under the vibrations of ocean waves, trains, even traffic. Researchers shoot a series of light pulses into a fiber-optic cable and track how the reflected light wobbles – helping them to quickly determine how much the ground shakes. These measurements reveal a lot about the properties of the soil where the cable is buried.

We are bound to learn much more in the future about the way soils behave under seismic shaking.

Until then, it is wise to learn the type of soil your building was constructed on in the San Diego area know and the risks that soil may pose to your tenants and your rental income.

The Optimum Seismic team has been making California cities safer since 1984 by providing full-service earthquake engineering, steel fabrication and construction services for multifamily residential, commercial and industrial buildings.

With more than 4,000 earthquake retrofit and renovation projects completed, Optimum Seismic’s work includes softstory multifamily apartments, tilt-up, non-ductile concrete, steel moment frame and unreinforced masonry (URM) buildings. To arrange a complimentary assessment of your building’s earthquake resilience, contact Optimum Seismic at (833) 978-7664 or visit optimumseismic.com.

STOP PAYING FOR TENANT SCREENING Create Your Free Account! anp.ApplyConnect.com

800.288.4757 *Renters pay $29.95 or the landlord/agent may choose to cover cost.

opt. 7

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

29

ARE YOU DONE WITH THE HEADACHES OF RENTAL PROPERTY? CALL YOUR LOCAL DST ADVISOR

1031capitalsolutions2

• • • • •

Potential for monthly cash flow and capital appreciation Potential to defer capital gains taxes Potential close in as little as 3-4 days Help build a diversified portfolio Invest in “out-of-state” properties

• • • • •

No need to obtain a loan Low minimum investment amounts Institutional asset and property management Pass through tax benefits No escrow

“ My mission is to provide expert advice that helps investors escape the burdens of traditional rental property ownership, and 1031 exchange into potentially 100% passive income DST properties.”

Jason McMurtry, MBA Managing Partner

To learn more, visit 1031CapitalSolutions.com or call us at (800) 445-5908 DST 1031 properties are only available to accredited investors (typically defined as having a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years; or have an active Series 7, Series 82, or Series 65. Individuals holding a Series 66 do not fall under this definition) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney.

This is for informational purposes only, does not constitute as individual investment advice, and should not be relied upon as tax or legal advice. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax concepts, therefore you should consult your legal or tax professional regarding the specifics of your particular situation.

Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk.

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services offered through Concorde Asset Management, LLC (CAM), an SEC registered investment advisor. 1031 Capital Solutions is independent of CIS, CAM and CIA.

30

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

April 2022 socalrha.org | 17

California

CAPITOL OL NEWS

A

By Pat Moran, Aaron Reed & Associates

s you know by now, the California Legislature is back in session for the second year of the 2023-2024 session.

As we begin the new legislative year, both the Assembly and the Senate have new leaders. Leading the Assembly is Assembly Member Robert Rivas, a Democrat from Salinas. With new leadership comes committee changes. Assemblyman Ash Kalra will be chairing the Assembly Judiciary Committee replacing Brian Maienschein and Assembly Member Christopher Ward chairs the Housing Committee replacing Assembly Member Buffy Wicks, who is now chair of the Appropriations Committee.

Senate Housing replacing Scott Weiner and has made no changes to Senate Judiciary.

In the Senate, Senator Mike McGuire took over Pro Tem duties from termed-out Senator Toni Atkins. He has appointed Senator Nancy Skinner as chair of

We will keep you posted on the progress of these bills, and others, and asking you to weigh-in on several of them as the legislative year progresses.

The Bill introduction deadline was February 16, 2024, and your State Government Affairs Committee will be reviewing relevant bills impacting rental housing in California. From the looks of what has been introduced, it will be a busy year. Bills related to requiring owners to allow pets, disallowing the use of AI programs to set rental rates, screening fee waivers, and creating an Office of Tenants’ Rights and Protections to name just a few. This, of course, is in addition to a $73 billion budget deficit the Legislature will need to address before the end of session August 31, 2024.

LOOKING FOR NEW BUSINESS?

Advertise in Apartment Management Magazine, and make your business services available to more apartment owners and managers monthly.

Just call (714) 893-3971 or (800) 931-6666 for advertising rates and information.

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

31

CalRHA Policy Update

T

he Governor’s Legislative Secretary, Christy Buoma, is leaving and has been replaced by Christine Aurre, who has served as Newsom’s Deputy Legislative Affairs Secretary since 2022. Prior to that, she was Legislative Director in the Office of State Senate Majority Leader Robert Hertzberg from 2019 to 2022.

Aurre was Legislative Assistant in the Office of State Assemblymember Patrick O’Donnell from 2015 to 2019.

Leaders from CalRHA met with Governor Newsom’s Legislative Deputy for housing/rental housing issues, Myles White, in March where we discussed key legislation that has been introduced so far, as well as creative ways to help fund rent assistance in the state.

Finally, the Governor will be giving his State of the State on March 18th.

LEGISLATIVE UPDATE Policy Committees have begun hearing legislation and several bills of interest are highlighted below.

AB 2059 (Flora, R-Ripon) - Tenancy: Obligations of Landlords: Repairs - This bill would prohibit a landlord from being liable for dilapidations rendering the premises untenantable, unless the landlord receives written or oral notice of the dilapidations and the landlord is given a reasonable time to repair the dilapidations. - SUPPORT AB 2114 (Irwin, D-Thousand Oaks) - Exterior Elevated Elements: Inspection - This bill would also allow licensed civil engineers to perform balcony inspections.

Set for a hearing on March 20th in Assembly Housing and Community Development. - SUPPORT AB 2187 (Bryan, D-Culver City) - Office of Tenants’ Rights and Protections - Placeholder bill stating the intent of the Legislature to enact subsequent legislation to establish the Office of Tenants’ Rights and Protections.

- OPPOSE

32

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

AB 2216 (Haney, D-San Francisco) - Household Pets - Would state the intent of the Legislature to enact legislation related to a landlord’s ability to prohibit common household pets in residential tenancies. OPPOSE AB 2230 (Bennett, D-Oxnard) - Would state that California’s anti-trust laws can be applied to anticompetitive practices occurring in residential housing, and would clarify that City Attorneys may investigate and prosecute anticompetitive behavior. - OPPOSE AB 2278 (Carillo, D-LA) - CalRHA Sponsored bill which would have the Housing and Community Development Department post the correct allowable yearly rent increase. Set for a hearing on March 20th in Assembly Housing and Community Development. - SUPPORT AB 2498 (Zbur, D-Santa Monica) - Housing: the California Housing Security Act - Would, upon appropriation of the Legislature, establish the California Housing Security Program to provide a housing subsidy to eligible persons, as specified, to reduce housing insecurity and help Californians meet their basic housing needs. To create the program, the bill would require the Department of Housing and Community Development to establish a 2-year pilot program in up to 4 counties, as specified. The bill would require the department to issue guidelines to establish the program that includes, among other things, the amount of the subsidy that shall be the amount necessary to cover the portion of a person’s rent to prevent homelessness, but shall not exceed $2,000 per month. - SUPPORT AB 2584 (Lee, D-Milpitas) - Corporate Owned SingleFamily Homes - Would prohibit owners of more than 1,000 homes from buying more single-family properties.

OPPOSE AB 2785 (Wilson, D-Suisun City) - Would require a landlord to, within 30 days of receiving a tenant’s security, deposit the sum into an account of a bank or other financial institution regulated by the state or federal

government. Any balance originating from the security that remains in the account after reimbursement to the landlord, including interest accrued on that balance, would be payable to the tenant. OPPOSE AB 2801 (Friedman, D-Burbank) - Prohibits a landlord from requiring a tenant to pay for, or asserting a claim against the tenant or their security deposit for, professional carpet cleaning or other professional cleaning services.

OPPOSE AB 3057 (Wilson, D-Suisun City) - CEQA Exemption Expands the CEQA exemption to junior ADUs. SUPPORT SB 1201 (Durazo, D-LA) - LLC Owner Transparency Would require each entity to disclose the name of each person with substantial control over the entity both upon creation and upon submitting their required biennial business filings. OPPOSE The legislative calendar for 2024 is as follows: March 21-29 - Spring Recess April 26 - Last day for policy committees to hear fiscal bills May 3 - Last day for policy committees to hear non fiscal bills

May 17 - Last day for fiscal committees to pass bills to Floor May 24 - Last day for bills to pass their house of origin June 15 - Budget bill must be passed by midnight June 27 - Last day for legislative measure to qualify for the November 5th General Election ballot July 3 - Last day for policy committees to meet and pass bills July 4 - August 4 - Summer Recess August 16 - Last day for fiscal committees to meet and pass bills August 23 - Last day to amend bills on the Floor August 31 - Last day for each house to pass bills September 30 - Last day for the Governor to sign or veto bills ABOUT CALRHA The California Rental Housing Association represents 25,000 members totaling more than 676,000 units, made up of small, medium and large rental housing owners throughout the State of California.

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

33

Early Bird Registration

2024

HOUSING CONFERENCE

$125

H o n o r i n g N a t i o n a l F a i r H o us i n g M o n t h Industry Leaders Discuss

"The New Day of Housing" APRIL 17, 2024

Hafsa Kaka, MSW Sr. Advisor Homelessness,

RIVERSIDE CONVENTION CENTER

Office of California Governor Gavin Newsom

Tiena Johnson Executive Director, California Housing Finance Agency

Many more invited speakers!

Event Sponsors:

For more information, please visit our website at www.fairhousing.net or contact Sara Tellez at (951) 682-6581.

34

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

bergemangroup

Is my building ready for the

California “Balcony Bill”?

“How does SB 721 or SB 326 impact my building?”

“How do I get my balconies and exterior walkways evaluated?”

“What’s the process, timeline, and cost?”

Contact us for a FREE consultation to discuss your building’s needs Robert Grosse Southern California General Manager 213.432.5120 • info@bergemangroup.com SB326@bergemangroup.com 213.432.5120 FIRE SPRINKLER SYSTEMS » WEATHERPROOFING SYSTEMS » PIPE REPLACEMENT » ROOFING REPAIR & REPLACEMENT » CONCRETE SPALLING REPAIR

M A N A G I N G C O N S T R U C T I O N Building Peace of Mind SM

bergemangroup.com

bergemangroup.com SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG 35

(619) 867-1713

36

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

FINANCIAL ADVISORY

Ease Big Tax Bills from Real Estate Sales or Income Using Bonus Depreciation

BY CHRISTOPHER MILLER, MBA

SPECIALIZED WEALTH MANAGEMENT

L

ast month, we explored Accelerated Depreciation as a tool to defer (potentially forever) taxes on our real estate income. Toward the end of that article, I mentioned the exceptionally valuable deductions that owning service stations can offer. That article attracted the attention of several colleagues who were well-versed in and very experienced with using service stations to lessen annual taxes from real estate (passive) income. This month, we will look at how this unique benefit can help us.

SERVICE STATIONS FOR TAX DEFERRAL OF INCOME – UPFRONT TAX DEDUCTIONS Section 128(k) from the IRS tax code calls for “bonus depreciation” for certain assets. Service stations and convenience stores, provided that 50% of the property’s revenue comes from the sale of motor fuels, will qualify for this incentive. This section, a permanent feature of the tax code, allows a service station purchaser to depreciate a large part of the property’s improvements value in year 1. The portion of the improvements that can be deducted in year 1 has varied over the years – 100% could be taken

between late 2010 and the end of 2011, and the 2017 Tax Cuts and Jobs Act allowed 100% to be taken again between 2017 and 2022. The rate decreased to 80% and to 60% in 2024.

A bipartisan effort in Congress, backed by government data on the economic benefits of these incentives, is currently underway to raise this 100% deduction for years 2024, 2025, and retroactively to 2023. Some Congressional research is suggesting that a permanent 100% rate is possible. Since Congress restoring the 100% rate seems likely, I will use that percentage for all examples in this article.

To adjust for current rates, just multiply the benefits mentioned by 60%.

WHAT DOES THAT MEAN? This means that investors with high real estate (passive) annual income can lower their tax bills by purchasing gas stations. This doesn’t mean that you need to operate the gas stations – just like fast food restaurants, most stations have landlords who own the real estate and lessees (tenants) who operate the business.

Please turn to page

38

Christopher Miller is a Managing Director with Specialized Wealth Management and specializes in tax-advantaged investments including 1031 replacement properties. Chris’ real estate experience includes work in commercial appraisal, in institutional acquisitions for a national real estate syndicator and as an advisor helping clients through over five hundred twenty five 1031 Exchanges. Chris has been featured as an expert in several industry publications and on television and earned an undergraduate business degree and an MBA emphasizing Real Estate Finance from the University of Southern California. Chris began his real estate career in 1998. Call him toll-free at (877) 313 – 1868.

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

37

FINANCIAL ADVISORY Continued from page

37

Let’s use as an example a client who earns $500,000 of annual taxable passive real estate income after all expenses and existing depreciation is deducted.

A $200,000 equity investment in a service station with a 50% loan, (so our investor buys $400,000 of real estate) could therefore generate a $320,000 deduction for our client. This would bring his taxable income for 2024 down from $500,000 to $180,000 – resulting in a potentially much lower tax bill, and a very happy client. Since his investment is partially “refunded” by a tax benefit, he can see this as buying an investment property at a steep discount while enjoying income and growth potential on the “full value.”

HOW DO THOSE NUMBERS WORK? A $200,000 down payment on a service station (or a partial interest in one) plus a 50%, $200,000, loan equals $400,000 of real estate purchased. Since land can’t be depreciated, you and your CPA will need to estimate what the value of your improvements are on your property. For this article, I’ll estimate 80%.

A cash (non 1031) investor’s depreciable basis will be $400,000 X 80% = $320,000), so his $200,000 investment bought $320,000 of deductions.

Since I have been advising clients on tax-advantaged investments since 2003, I often get phone calls from investors saying “I sold a property and didn’t complete my 1031 Exchange. I don’t want to spend any more than my sales proceeds: what can I do to avoid taxes? The top option for the past several years has been “Buy an Opportunity Zone.” Opportunity Zones, however, are expected to sunset in early 2024, wouldn’t shelter accumulated depreciation taxes, and only delayed rather than deferred taxes. Now “buy a gas station!” could be an even more attractive option.

Our sample client in this case bought an apartment building back in 1985 for $200,000 and sold it in January of 2024 for $1,800,000. He hadn’t met me yet, and didn’t know the benefits that a 1031 Exchange could offer, so escrow sent the sales proceeds to his checking account and created a big taxable event. The way the IRS and California see it, he owes tax on the $160,000 of depreciation he took over his ownership period (25% IRS + 9.3%

ASPHALT PAVING CONCRETE WORK

SUBSCRIBE TO ANP E-NEWS

Free Estimates • Payment Plans Available

GET OUR WEEKLY EMAIL OF INDUSTRY NEWS & EVENTS!

Sidewalks & Curbs • Resurfacing Seal Coating & Striping • Repairs

MGB Construction General Engineering Contractor

Great Quality & Service

Ask for Bill McClary

cell: 909-957-4731 office: 951-342-0303

Scan the QR Code to Subscribe!

Visit Us Online at: AptNewsInc.com

Serving California for 25 Years

38

USING THE SERVICE STATION DEDUCTION TO SHELTER CAPITAL GAINS AND ACCUMULATED DEPRECIATION TAXES FROM INVESTMENT REAL ESTATE SOLD WITHOUT A 1031 EXCHANGE

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

When You Call A Vendor...

Tell them you saw their ad in

APARTMENT MANAGEMENT MAGAZINE

CA) and on his $1,600,000 Capital Gain. (20% IRS – for big Capital Gains you’ll end up in the higher bracket - and another 9.3% for CA.) This will yield an approximate tax bill of $523,680 on his $1,600,000 gain – or a nearly 33% rate. Ouch!

Fortunately, this client met me before 2024 ended. I showed him how he could, with $1.1 million of his $1.8 million sales proceeds, invest in a service station leveraged at 50% for a $2.2 million total purchase. At an 80%/20% improvements to land ratio, his upfront tax deduction for this year is worth $1,760,000 – the exact total of his taxable accumulated depreciation and his capital gain. This will have the effect of “zero-ing out” his taxes on the sale – and he still has $700,000 of sales proceeds in his checking account that will not be subject to tax this year – and potentially never!

DEPRECIATION TAKEN IS A TAX DEFERRED – POTENTIALLY FOREVER As our investor saw in his property above, depreciation that is used to defer income taxes today will add up over the years as “accumulated depreciation.” If we sell our property in the future, and do not do a 1031 Exchange¸we will pay the tax on it then. It is possible, however, to defer this tax forever and never pay it – by continuing to do 1031

Exchanges throughout our lifetimes. I, and most of my clients, plan to complete 1031 Exchanges every time we sell a property. This will defer our taxes in perpetuity and allow us to enjoy income and growth potential generated from the full amount of our accumulated real estate principal: not just “what is left after taxes.” When we die, those taxes will disappear and our heirs will receive the full value of our real estate life’s work. This is why I always add “potentially forever” when I mention taxes deferred by 1031 Exchanges.

I spoke with a colleague recently who, as a professional real estate investor and manager, generates most of his earnings as passive income.

He buys gas stations as part of his annual tax planning to minimize his tax bill and maximize the income and growth potential of his investments – he can use tax savings to create more income for the future. I was intrigued by this idea, and am now speaking with my clients about how it can benefit them as well.

If you would like to discuss how this bonus depreciation could potentially help you, my office number is (877) 313-1868.

Securities offered through Emerson Equity LLC, member FINRA/SIPC. Emerson Equity LLC and Specialized Wealth Management are not affiliated. All investing involves risk. Always discuss potential investments with your tax and/or investment professional prior to investing.

Enhance Your Building’s Worth Advising sustainability and helping you get the best value Renewable Energy Consultants Specializing in Solar, Batteries, and EV charging Solutions independentsolar

We Can Help It Make Sense!

FREE 1 HOUR ENERGY ANALYSIS www.independentsolaradvisors.com | (619) 707-5886 consulting@solarpowersandiego.com SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

39

dennisblock

dennisblock

San Diego (38428)

40

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

41

HOMEOWNER'S TRUSTED SOURCE FOR

AFFORDABLE AND RELIABLE REPLACEMENT REPLA L CEMENT WINDOWS LA WINDOW OWS OW WS & DOORS S MAJOR MANUFACTURERS INCLUDING MILGARD!

$0 $ 0D DOWN OWN 0% 0% INTEREST INTEREST UP U PT TO O4 48 8M MONTHS ONT TH HS O NA PPROVED ON APPROVED C REDIT T* * CREDIT*

NEW! BLACK EXTERIOR | V250 STYLE LINE ®SERIES

UP TO

50 0 OFF * %

We can help you choose the perfect window or door plan to fit your needs!

Some restrictions may apply. This offer is not valid with any other offer and cannot be combined. valid through the end of the current month.

sivian

LOWEST PRICES GUARANTEED* FOR HOMEOWNERS! WHOLESALE PRICING FOR ARCHITECTS, BUILDERS & CONTRACTORS! HOA FRIENDLY FOR APARTMENT, CONDO & TOWNHOME OWNERS!

CALL NOW FOR A FREE ESTIMATE!

(888) ( 88) (8 8 383-6798 8) 383-679 7 8 79 9596 Chesapeake Drive Suite B. San Diego, CA 92123

PEOPLE

LOVE US ON

Vinyl | Fiberglass | Aluminum Bi-Folding Doors | French Doors Patio Sliding Doors & more!

flatlay-mus06

SivanWindowsandDoors.com Lic #: 1000582

42

ENERGY SAVING MATERIALS!

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

CONNECT WITH US

Questions Answers

by Kimball, Tirey & St. John LLP

uestion:: I have a maintenance worker who was

terminated and was given seven days to vacate his apartment. He has not left, and I would like to know if I need to send him through the eviction process or if there is anything else I can do to get him out.

A

nswer: You need to send him through the eviction process. The type of eviction notice may depend on if they were a resident prior to being a maintenance worker or if they were assigned the unit because of their employment.

uestion:: Is it illegal for an owner to charge

for his own labor (if it is the going rate for that type of work) and deduct that amount from the tenant’s security deposit?

A

nswer: It is not illegal to deduct for your own labor from the tenant’s security deposit. You can charge a reasonable hourly rate and must state

the time and rate in your security deposit disposition statement.

uestion:: Do I have to pay a tenant interest on his security deposit?

A

nswer: This is a current issue that is discussed on the state level however there are currently no state laws requiring that interest be paid on the tenant’s security deposit. Some rent control ordinances and/or other local ordinances do require interest to be paid so it is important to review your local laws.

uestion:: There is a very loud tenant in the apartment building across the alley from our rental. I have asked them to quiet down on numerous occasions and have even called the police.

They keep playing their music late at night and into the wee hours of the morning. What else can we do?

Kimball, Tirey & St. John LLP is a full-service real estate law firm representing residential and commercial property owners and managers.

This article is for general information purposes only. While KTS provides clients with information on legislative changes, our courtesy notifications are not meant to be exhaustive and do not take the place of legislative services or membership in trade associations. Our legal alerts are provided on selected topics and should not be relied upon as a complete report of all new changes of local, state, and federal laws affecting property owners and managers. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers and Legal Articles, please consult the resource section of our website. © 2023 Kimball, Tirey and St. John LLP SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

43

A

nswer: You should continue to contact the police when unreasonable disturbances occur and consider contacting the owner of the property to inform him or her of the situation. The owner may not be aware of the problem.

uestion:: After a lease expires and it is month-

to-month, how much notice must a tenant give me to legally terminate the lease? He says one week. Is this true?

A

nswer: In California, the tenant or the landlord (provided tenant in possession for less than a year) may terminate with 30-days written notice in a month-to-month tenancy. A tenant can terminate the tenancy in response to a domestic violence issue and would only be responsible for 14 days of rent. However, if the occupants have been in possession for one year or longer, the landlord must serve a 60-day notice to terminate for any property not subject to just cause.

uestion:: Someone told me that if a resident is

committing a crime on the premises, they can be evicted in 3 days. I have never heard of this law and I rent to someone I suspect is dealing in drugs.

Can you tell me more about it?

A

nswer: California law does allow an owner or manager of rental property to serve a 3-day notice to quit the premises based upon the commission of an illegal act on the property. The illegal conduct must, however, relate to the rented property.

For instance, if you can prove your tenant was dealing with or possessed illegal drugs on the premises, you could serve the 3-day notice. If the tenant failed to quit, an unlawful detainer action could be filed in court to recover possession.

uestion:: One of our tenant’s guests broke a

window of the recreation room by throwing a ball through it. The host tenant claims he should not be responsible because the damage occurred

outside the apartment and while they were playing catch in the common area. My tenant also refuses to give me the name or any information about his guest who caused the damage. What can I do?

A

nswer: In California, tenants are liable for the negligence of their guests while on the premises.

The premise not only includes the actual rented unit, but the common area as well. Therefore, the tenant and the tenant’s guest are jointly liable for the damage to the window.

uestion:: I have a tenant who is on a long-term

lease. Recently, however, the tenant brought in a roommate and has been out of town for over 30 days. I am concerned that the roommate intends on staying and that my original tenant may have moved out for good. What are my legal options?

A

nswer: If you have a clause in your lease which prohibits the assignment or sublet of your lease agreement, you do not have to consent to the roommate. You could ask the roommate to fill out an application to rent and thereby identify who the roommate is. Once identified, you could choose to either (a) allow the roommate to live there if he meets your qualifications and signs the lease or (b) start eviction procedures based upon the breach of the assignment and sublet clause of your lease.

uestion:: My great grandfather died last year

and left me his home. I am trying to rent the house and my realtor told me that I am required to inform prospective tenants of the death of my great grandfather because he died in the home. Is this really true?

A

nswer: In California, to avoid potential claims, residential landlords should disclose in writing all deaths occurring on the property in the previous 3 years.

STOP PAYING FOR TENANT SCREENING Create Your Free Account! anp.ApplyConnect.com

800.288.4757 *Renters pay $29.95 or the landlord/agent may choose to cover cost.

44

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

opt. 7

Since 1967

Մենք խոսում ենք հայերեն,

DIRECT DISTRIBUTOR TO THE MULTIFAMILY OWNER, INVESTOR, MANAGER, BUILDER, CONTRACTOR, & DESIGNER

NH: 818-769-8000 | www.ApartmentSupply.com | VN: 310-450-8585 ALL KITCHEN APPLIANCES, LAUNDRY/COIN-OP, AND ROOM AIR CONDITIONERS AVAILABLE AT THE BEST PRICES ANYWHERE…

PRICES STARTING AT ONLY:

$316 $438 $379 $306

$836

$206 $875

CALL US TODAY

FOR PICK-UP, DELIVERY, OR INSTALLATION

And more…

CALL US NOW OR VISIT OUR WEBSITE:

SINCE 1967: 5720 Lankershim Boulevard ApartmentSupply.com North Hollywood: 818-769-8000

SINCE 2013: 14117 Vanowen Street Van Nuys: 310-450-8585

APARTMENT REPLACEMENT | CONTRACT SALES | NEW CONSTRUCTION | SINGLE-FAMILY SA ME-DA Y O R NEXT -DAY D EL IVER Y AND INST ALLATION AVAIL ABL E! CALL US FOR MORE INFO R MATIO N PRICES, SI ZES, AVAILABI LITY & MODELS ARE SUBJECT TO CHANGE ANYTIME WITHOUT NOTICE

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

45

I

The Case for a Free-Market Approach to Security Deposits

By Mercedes Shaffer, Realtor

n the dynamic world of real estate, residential rental properties stand as a crucial investment avenue for many individuals. As housing providers, the welfare of our investments is paramount. The recent signing of AB 12 by Governor Newsome, which imposes a onemonth maximum rent deposit, has sparked a debate within the industry. Advocates of such regulations argue for further government intervention through the imposition of tenant-biased measures, without considering the perspective of property owners and the implications these reforms could have on our investments.

In the financial realm, prudence is key, and it’s no different in real estate. Just as home buyers are required to make substantial down payments to secure their property purchase, expose their financial records in detail to demonstrate the ability and likelihood of fulfilling their obligations, and the bank holds title as a form of collateral, providing a safety net for their investment. Likewise, a rental deposit serves as a form of collateral for housing providers, offering some reassurance and compensation in case of damages or a breach of the lease agreement. Given the significant asset risk providers are taking, they should be free to determine a deposit that is adequate and that the market will bare. Limiting this deposit will jeopardize the housing provider’s ability to recover potential

46

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

losses, placing their investment at risk.

This is another example of lawmakers forcing constraints without taking any of the risks. I have yet to see a bill protecting housing providers by offering immediate compensation and free legal representation if a tenant damages a property beyond what can be covered by a deposit or a renter who unlawfully withholds rent but continues to use the owner’s asset.

Just as banks safeguard their loans, property owners should also have the ability to safeguard their investment. The traditional practice of requiring a sizeable deposit from tenants is a logical and necessary step in mitigating risks associated with renting out property.

When you consider that an aspiring homeowner who has good credit and wishes to purchase a $500,000 home is typically required to put down a minimum 10% down payment, equating to $50,000. This initial financial commitment is seen as a demonstration of financial capability and commitment to the purchase.

In the same vein, housing providers who invest in rental properties should also have the right to set deposit amounts commensurate with the value of their investment and the risk involved.

AB 12, which goes into effect on July 1, 2024 - seeks Please turn to page

48

Stairs & Guardrails ldsteel

Commercial & Residential

Competitive Prices 25 Yrs. of Experience & Your Satisfaction is Our Priority

• • • • •

Precast Stairs Step Replacement Railing Gates Fences

• • • • •

Retrofit Railing Pool Fence Custom Decorative Design New Decking | Repair | Reseal Concrete Product

Free Estimates!

Bonded and Insured

Cell: (213) 632-8073

Office: (562) 531-7322

License # 987338

Email: info@ldsteelinc.com Visit us at: LDSteelinc.com / Yelp & Facebook SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

47

Continued from page

46

to protect tenants and enhance affordability, but this undermines the level of security housing providers need to protect their investments. On the other hand, a free-market approach would allow for negotiation between housing providers and residents, enabling both parties to agree on a deposit amount that is fair and reflective of the property’s value, credit worthiness of the prospective tenant, and rental market dynamics.

By forcing housing providers to charge a security deposit that is not commensurate with the risk, it hurts tenants and society as a whole. We live in a nation often characterized by consumerism, where purchasing power is a cornerstone of modern living, and financial responsibility and savings often takes a back seat.

Advocating for a culture of savings is an essential stride towards ensuring a stable and prosperous society. This is one of the intended benefits of Social Security – forced savings. One critical aspect of this financial prudence lies in encouraging individuals, regardless of their socioeconomic status, to save for security deposits when seeking rental housing. This fundamental shift not only cultivates better lifestyle habits but also aligns with the principles of responsible financial management.

When prospective renters are required to save for a reasonable security deposit, it instills a crucial financial habit early on. Much like the process of saving for a down payment when purchasing a property, saving for a security deposit reinforces the value of disciplined financial planning. It encourages individuals to budget, cut unnecessary expenses, and prioritize their spending. This practice teaches invaluable skills that extend beyond housing arrangements and positively impact various aspects of life.

Moreover, incorporating this savings culture can have a ripple effect on the larger economic landscape. As individuals cultivate more fiscal responsibility, the overall demand for rental properties may stabilize.

Prices and incomes can adjust accordingly, fostering a more balanced market. In turn, this is likely to contribute to a reduction in financial stress for both housing providers and tenants, leading to a healthier housing sector.

Requiring a rental deposit commensurate with the value of the property and risk serves as a catalyst for fostering a heightened sense of pride, and appreciation and respect among tenants towards the property owner’s assets. This is a shared financial commitment between provider and tenant. This financial stake instills a sense of responsibility, encouraging tenants to care for and maintain the property as if it were 48

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

their own, ultimately establishing a mutually beneficial relationship between the tenant and the property owner, and even the community at large.

Humans possess an inherent gift for creativity and adaptability, qualities that have driven our civilization’s progress throughout history. However, when government intervenes excessively and enacts laws that deviate from natural economic principles, it can stifle these innate abilities making people weak and dependent on government. Excessive and often shortsighted interventions diminish resilience, personal accountability and create an environment where people are less capable of responding effectively to challenges and changes.

Disallowing tenants from making their own fundamental financial decisions harms them and housing providers.

De-adulting tenants and making them reliant on government intervention to make decisions for them, is making things worse and not better. Helicopter parents that do too much for their kids spoil them so that they don’t become self-reliant, and this is what government is doing by not allowing housing providers to run their own businesses.

Life rewards those who have learned to save and manage money wisely. Encouraging a culture of saving for security deposits not only benefits individuals but also contributes to a more financially conscious society. By instilling this habit early on, we pave the way for a future where responsible financial decisions are the norm, enhancing the well-being and stability of all members of our community.

In conclusion, it’s vital that rent and deposits are determined by the free-market. This enables housing providers to secure their investments adequately, encouraging further investment in housing.

Responsible property ownership, coupled with open communication and fair business practices, ensures a thriving rental market that benefits both housing providers and tenants alike. Balancing the interests of all stakeholders is essential for a sustainable and prosperous real estate landscape. I would love to hear what you think. Where do you think government intervention helps the market, and where does it hurt it?

If you’re considering buying, selling, doing a 1031 exchange or if you would like a free property valuation, call (714) 330-9999 or email InvestingInTheOC@ gmail.com. I’m Mercedes Shaffer, a multifamily and commercial real estate agent with Coldwell Banker Realty, helping you build wealth one door at a time.

DRE 02114448

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

49

Response

griswold

6| Rental Housing Association RentalAMM6 Advisor July 2021 50Southern APRILCalifornia 2024 - APARTMENT MANAGEMENT MAGAZINE 18 | Southern California Rental Housing Association Rental Advisor April 2022

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

51

forward-thinking. Now, Gen Z is Gen Z job seekers cite a not as concerned with recreation commitment to diversi or downtime at the office, rather important factor in dec a financial investment in their whether or not to accep 1 future. However, stock options Here it is very importan and a standard 401(k) won’t cut it company to talk the tal when they are actually searching the walk. Diversity and for “student loan assistance, cannot just be a phrase tuition reimbursement, and company’s mission stat maternity and paternity benefits.” a committee that meets This generation values a work-life quarter. This dedication balance and is highly optimistic to be seen in initiatives for the future, so these types asking one’s pronoun p GINA KOENEN of benefits will not only attract adequate accommodati NMLS #613320 but also encourage them to stay who are different Vice President, Commercial Loanthose Officer and take advantage of these policies to ensure fair a | gkoenen@myprovident.com (951) 403-0567 opportunities. pay, etc.

Low cost financing for Multi-Family Apartment properties.

Purchase Money, Cash Out, or Construction Financing!

They Want to See Diversity and Inclusion This highly educated, highly Since 1956 diverse generation is craving 3 or more units to an LLC, Corp, or Partnership – 5 or more units to individuals and other entities. a passion and Loans subject to borrower and property qualifications. Brokered originations are not eligible.

Otherdedication to restrictions may apply. All rates, fees, terms and programs are subject to change without notice diversity and except as required by law. ©2024 Provident Bank. NMLS #449980. All rights reserved. Member FDIC.inclusion from their REV0224 | 855-217-3541 employers. As a result, “86% of

HOMEGROWN & LOCAL 1

They Want an Offer, a Want it NOW Standard HR procedure it difficult to establish a committee and follow t protocol when extendin Gen Z wants no part of

Own Appreciated Investment Real Estate?

6 EXIT STRATEGIES FOR HIGHLY APPRECIATED REAL ESTATE Tune in Saturdays at 8am to AM 600 KOGO radio and learn financialadvisors more at our online WEBINAR Case Study Saturdays@10am and on-demand See www.RentalOwnerWorkshop.com

lifedeck

Aubrey Morrow CERTIFIED FINANCIAL PLANNER™ Practitioner

Financial Designs, Ltd. 5075 Shoreham Place, Suite 230 San Diego, CA 92122 Phone (858) 597-1980 Fax (858) 546-1106 www.MoneyTalkRadio.com

The Financial Advisors Tune In! AM 600 News Talk Radio Saturday at 8am

Securities offered through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory Services offered through Concorde Asset Management, LLC (CAM), an SEC Registered Investment Advisor. Financial Designs is independent of CIS & CAM. This is for informational purposes only, does not constitute as investment advice, and is not legal or tax advice. There are material risks associated with investing in real estate securities including illiquidity, general market conditions, interest rate risks, financing risks, potential adverse tax consequences, general economic risks, development risks, and potential loss of the entire investment principal. *as of 12/2022 bd-ld-a-192-2-2023

52

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

24 | Southern California Rental Housing Association Rental Advisor April 2022

CARPET SALES & FLOORING

ENVIRONMENTAL: ASBESTOS / LEAD / MOLD

J & C Carpet Company. . . . . . . . . . (619)498-1424

Vert Environmental . . . . . . . . . . . . . . . (858)433-3290

C R FLOORING COMPANY . . . . . . (619)748-0015 KJ Carpet Wholesale. . . . . . . . . . . . (909)455-0180 Sid’s Carpet Barn, Inc. . . . . . . . . . . (619)477-7000 CLEANING & JANITORIAL SERVICES

Atlas Property Service . . . . . . . . . . . . . . . (858)386-4578

Exeter 1031 Exchange Services, LLC (619)239-3091

Pacific Coast Cleaning, Inc.. . . . . . . . . . . (858)565-1603

Apartment News Publications . . . . . . (714)893-3971

J&J Creative, LLC. . . . . . . . . . . . . . . . (760)703-4471 Realtor.com. . . . . . . . . . . . . . . . . . . . . (805)223-9413 Rent. . . . . . . . . . . . . . . . . . . . . . . . . . . (858)220-8521

EXTERMINATORS

Payne Pest Management. . . . . . . .(877)277-3970

FITNESS EQUIPMENT & SALES

COIN-OPERATED LAUNDRY EQUIPMENT

Financial Designs, Ltd. . . . . . . . . . . . . (858)597-1980

Kimball, Tirey & St. John LLP . . . .(619)234-1690

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (619)281-2532

DAPA Services Inc.. . . . . . . . . . . . . . . . . . (619)221-9292 Sea Crest Services, Inc.. . . . . . . . . . . . . . (949)477-4961

Apartments.com . . . . . . . . . . . . . . . . . (888)658-7368

EVICTIONS

FINANCIAL SERVICES

SMIB Management Inc.. . . . . . . . . . . . . . (619)206-5550 ADVERTISING & MARKETING

JJ&S Environmental Services . . . . . . (760)536-3178

Bar-B-Clean San Diego South . . . . . . . . (858)988-7966 Cleanology Housekeeping Personnel Service 1031 EXCHANGE & TRUST SERVICES

Statewide Reach Codes Program . . . . . (619)987-7035

America’s Finest Carpet Company (800)888-1568

TWS Facility Services. . . . . . . . . . . . . . . . (888)883-1915 All Valley Washer Service. . . . . . . . . . . . . (800)247-1100 WASH Multifamily Laundry Systems

(858)279-1234

COLLECTIONS

Kimball, Tirey & St. John LLP . . . . . . (619)234-1690 BuzzCRS, Inc . . . . . . . . . . . . . . . . . . . (816)341-8887

Zego. . . . . . . . . . . . . . . . . . . . . . . .(858)602-2780 Advanced Exercise. . . . . . . . . . . . . . . (303)996-0048 Opti-Fit. . . . . . . . . . . . . . . . . . . . . . . . . (888)601-4350 FLOOR COVERINGS

Real Floors . . . . . . . . . . . . . . . . . . . . . (951)317-2231 Redi Carpet Sales of California , LLC (858)576-8400 FURNITURE RENTALS

Cort Furniture Rental . . . . . . . . . . .(858)549-0800 GENERAL CONTRACTORS

Apex Contracting & Restoration, Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . .(858)987-1800

Zillow Rentals . . . . . . . . . . . . . . . . . . . (206)516-2263

CONSTRUCTION AND REMODELING

A-S General Contracting . . . . . . . .(619)379-9410

Doug Taber CCIM - Rental Housing Broker

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (619)320-8334

. . . . . . . . . . . . . . . . . . . . . . . . . . . .(619)398-0200

APARTMENT BROKERAGE / SALES

. . . . . . . . . . . . . . . . . . . . . . . . . . . .(619)483-1031

APPLIANCE MAINTENANCE & REPAIR

Mr. Appliance of Ramona . . . . . . . . . . . . (760)896-4994 APPLIANCE SALES

R & B Wholesale Distributors, Inc. . . . . . (909)230-5400 Western State Design, Inc. . . . . . . . . . . . (510)931-7099 ATTORNEYS-AT-LAW

Andrew Griffin . . . . . . . . . . . . . . . .(619)440-5000 Heinz & Feinberg . . . . . . . . . . . . . .(619)238-5454 Kimball, Tirey & St. John LLP . . . .(619)234-1690 Todd A. Brisco & Associates, APC (714)634-2814 BACKFLOW TESTING

Pacific Backflow Company, Inc.

(760)639-4000

San Diego Backflow Testing, Inc. (877)363-8378 BANKS

Chase Commercial Term Lending . . . . . (619)464-0573 BATHROOM REMODELING & REFINISHING American Bathtub Refinishers

CABINET AND COUNTERTOPS

(619)265-9200

Grand Design Kitchens . . . . . . . . . . . . . . (760)789-0992 Marjan Stone . . . . . . . . . . . . . . . . . . . . . . . (719)651-2041 Qwikkit . . . . . . . . . . . . . . . . . . . . . . . . . . . . (713)540-3205 Surface Experts Central San Diego . . . . (858)926-4041 CARPET CLEANING

Cleanology Housekeeping Personnel Service . . . . . . . . . . . . . . . . . . . . . . . . . . . .(619)281-2532

Cambridge Maintenance and Property Services, Inc.

BluSky Restoration Contractors, LLC

CHC Construction . . . . . . . . . . . . . . . (858)228-7036

Camp Construction Services. . . . .(713)413-2267

Larry O’Dell Construction. . . . . . . . . . (619)501-5252

Modular Building specialist corp (619)980-7481

Workright Property Services Inc . . . . (858)751-6312

CartMart Inc. . . . . . . . . . . . . . . . . . . . . . . . (760)744-4420

Dexcore Restoration. . . . . . . . . . . . . . (619)993-3417 McMillin Contracting Services. . . . . . (619)401-7000 CONSTRUCTION MANAGEMENT

Southern Cross Property Consultants

. . . . . . . . . . . . . . . . . . . . . . . . . . . .(858)945-2629

DECK COATING

General Coatings Corporation

(619)707-2639

M. C. Contracting Service . . . . . . .(619)282-3083

GOLF CART SALES & SERVICE

HEATING & AIR CONDITIONING

Sam’s Heating and Air Conditioning, Inc.(619)697-9824 INSURANCE

Crest Insurance Group. . . . . . . . . .(858)547-1128

Farmers Insurance McWhirter Agency (619)463-7320

(619)262-8600

Pro Specialty Insurance Services . . . . . . (888)558-4776

Kennedy Electric . . . . . . . . . . . . . .(619)582-6568

Cox . . . . . . . . . . . . . . . . . . . . . . . . . . . (858)836-7582

Life Deck Coating Installations

ELECTRICAL CONTRACTORS

EMERGENCY SERVICE FLOOD / FIRE

All Dry Services of San Diego . . . . . . (858)353-1646 ATI Restoration, LLC. . . . . . . . . . . . . . (619)318-2807 BELFOR Property Restoration. . . . . . (858)847-9886 Pinnacle Services - 1 . . . . . . . . . . . . . (877)673-9049 RAMM Restoration. . . . . . . . . . . . . . . (760)807-8743 Generation Contracting & Emergency Services, Inc.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (858)679-9928

EMPLOYMENT AGENCY

Go-Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . (858)518-0326

Legacy Apartment Staffing . . . . . . . . . . . (619)387-5530

The Liberty Group. . . . . . . . . . . . . . . . . . . (951)744-0057 ENERGY EFFICIENCY CONSULTING

ESA Multifamily Energy Savings Program(310)899-5382

INTERNET SERVICE PROVIDER

Google Fiber . . . . . . . . . . . . . . . . . . . . (206)531-1250 Quantum Fiber . . . . . . . . . . . . . . . . . . (360)931-9864 Wyyerd Fiber. . . . . . . . . . . . . . . . . . . . (619)936-1927 LANDSCAPE MAINTENANCE & SERVICE

Landcare Logic . . . . . . . . . . . . . . .(951)316-8002 Pacific Green Landscape, Inc.

(619)820-6614

Cable, Pipe & Leak Detection, Inc.

(619)873-1530

LEAK DETECTION LENDERS

Luther Burbank Savings . . . . . . . .(310)616-0356 MAILBOX INSTALLATION & REPAIRS

Sprint Postal Products . . . . . . . . . . . . (619)660-1956 MAINTENANCE & REPAIR

Schindler Elevator Corporation . . . . . (949)781-6056

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

53

MAINTENANCE SUPPLY

HD Supply . . . . . . . . . . . . . . . . . . . . . . . . . (800)431-3000 Lowes Pro Supply. . . . . . . . . . . . . . . . . . . 661-219-5611

PACKAGE/PARCEL MANAGEMENT SERVICES Parcel Pending. . . . . . . . . . . . . . . .(949)490-6987 PAINT MANUFACTURERS & SUPPLIES

Behr Paint . . . . . . . . . . . . . . . . . . .(760)415-6015

Dunn-Edwards Corporation. . . . . .(619)884-3866 Sherwin-Williams Co.. . . . . . . . . . .(714)404-8212 PAINTING

Executive Coatings & Contracting . . . . . (888)300-6786 Primus Paint Worx, Inc. . . . . . . . . . . . . . . (619)738-8022

PROPERTY MANAGEMENT SOFTWARE

JDS Security . . . . . . . . . . . . . . . . . . . . (619)781-8694

RATIO UTILITY BILLING SYSTEMS

SEISMIC RETROFIT

Domuso . . . . . . . . . . . . . . . . . . . . . . . . . . . 985-210-3473

Signal Security . . . . . . . . . . . . . . . . . . (619)363-7233

Livable . . . . . . . . . . . . . . . . . . . . . .(877)789-6027

Optimum Seismic. . . . . . . . . . . . . .(562)298-6395

Doug Taber CCIM - Rental Property Broker

Ivy Energy. . . . . . . . . . . . . . . . . . . . . . . . . . (801)318-7803

Voit Real Estate Services. . . . . . . .(858)453-0505

Conservice Utility Billing & Mgmt . . . (602)481-7440

TheGuarantors . . . . . . . . . . . . . . . .(212)266-0020

VITALITY IO, Inc. . . . . . . . . . . . . . . . . . . . . (801)341-1844

National Renovations, LLC - DBA Repipe

Intellirent . . . . . . . . . . . . . . . . . . . . . . . . . . . (415)849-4400

RESIDENT RETENTION

Western Towing . . . . . . . . . . . . . . .(619)297-8697

REAL ESTATE

SMART TECHNOLOGY

. . . . . . . . . . . . . . . . . . . . . . . . . . . .(619)483-1031

SUBMETERING / BILLING SERVICES

RENT GUARANTOR

QMC Metering Solutions . . . . . . . . . . (778)809-0052

REPIPING

TENANT SCREENING

PARKING MANAGEMENT SOFTWARE

Specialists, Inc . . . . . . . . . . . . . . . .(703)801-8269

TOWING SERVICES

PAVING MAINTENANCE

WithMe. . . . . . . . . . . . . . . . . . . . . .(714)476-6059

WASTE MANAGEMENT

SatisFacts Research . . . . . . . . . . .(866)655-1490

Valet Living . . . . . . . . . . . . . . . . . . . . . (813)248-1327

A-1 All American Roofing Company (858)537-5177

WATER DAMAGE RESTORATION

Reliant Parking Solutions. . . . . . . .(888)977-6848 Eagle Paving . . . . . . . . . . . . . . . . .(858)486-6400 PEST CONTROL

ATCO Pest Control . . . . . . . . . . . . . . . . . . (415)898-2282 Kilter Termite and Pest Control . . . . . . . . (714)348-0488 Lloyd Pest Control. . . . . . . . . . . . . . . . . . . (800)570-2847 Payne Pest Management . . . . . . . . . . . . (877)277-3970 PLUMBING

BioAir Mechanical & Plumbing . . . . . . . . (858)348-9248 Pfister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (720)660-2883 PROPERTY MANAGEMENT PERSONNEL

BG Multifamily . . . . . . . . . . . . . . . .(619)785-3164 InterSolutions . . . . . . . . . . . . . . . . .(619)804-2554

RESIDENT SURVEYS ROOFING

Strategic Sanitation Services. . . . . . . (877)271-7909 WasteXperts, Inc. . . . . . . . . . . . . . . . . (206)496-9289

Commercial & Industrial Roofing (619)465-3737

First Onsite. . . . . . . . . . . . . . . . . . .(858)880-5419

SECURITY GUARD PATROL

Inc. . . . . . . . . . . . . . . . . . . . . . . . . .(858)679-9928

Security First . . . . . . . . . . . . . . . . .(619)243-3992

Restoration Management Company(858)933-1871

Bald Eagle Security Services, Inc.

WINDOWS

Sully-Jones Roofing. . . . . . . . . . . .(800)611-3110

Generation Contracting & Emergency Services,

Securitas Mobile Guarding . . . . . .(619)214-4919

Hometown Restoration . . . . . . . . .(858)663-8330

SECURITY SERVICES

SERVPRO of Sorrento Valley . . . . .(575)420-3885

(619)230-0022

HandyTrac Systems . . . . . . . . . . . . . . (800)665-9994

Newman Windows and Doors

(760)809-8113

The SCRHA Business Directory of Suppliers is where you'll find the products and services you need to run a successful rental business.

Use an SCRHA member first to invest in businesses that support a thriving rental housing community!

Scan the code to connect with SCRHA Supplier Members!

www.SoCalRHA.org

54

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

applyconnect

SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

55

April 2022 socalrha.org | 25

HELP STOP RENT CONTROL INITIATIVE

FACTSHEET

A new rent control initiative will be on the November 2024 ballot.

2024 BALLOT INITIATIVE

PROPERTY OWNERS

Local jurisdictions will have free rein to impose and expand rent control.

Your rental income and property value will decline.

Will prohibit rent increases upon vacancy (also known as vacancy de-control) by eliminating the owner's ability to charge the market rate when a tenant vacates the unit.

If you are renting your units below market, you may never catch up because the initiative allows local jurisdictions to "cap" how much you may increase rent following a vacancy.

WHAT IT DOES

WHY IT MATTERS

Rent "caps" would apply to single-family homes and condominiums.

Imposes rent control on all properties including single-family homes and condominiums by eliminating AB 1482 protections.

To stop this so-called "Justice for Renters" initiative in 2024, CalRHA and its affiliates are asking for your support and contribution to fight this third attempt by the same anti-housing activists behind Propositions 10 and 21 from 2018 and 2020. CalRHA and its regional associations collectively need to raise a minimum $5 million dollars, so we're all in this together.

To make a contribution, please scan the QR code. Thank you for your generosity.

56

$5 MILLION TARGET

DEDICATED FUNDS

SUCCESS TOGETHER

T he l a s t r e nt co ntro l fi ght co st t he b r o a d e r ho u si ng i ndu stry $ 8 0 m il l io n do llars. Thi s ne xt f ig h t w il l c o st e v e n m o re .

F u nd s wi l l b e d e p os i t e d i n t o a de di c a t e d a c c ou n t s p e c i fi c a l l y for fi g h t i n g t h e i n i t i a t i v e .

We d e fe a t e d b ot h t h e 2 018 a n d 2 0 2 0 r e n t c on t rol i n i t i a t iv es .

Wi t h y ou r s u p p or t , we c a n d o it again.

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

cal-rha.org

1031 EXCHANGES

COLLECTIONS

PEST / TERMITE CONTROL

1031 Capital Solutions. . . . . . . . . . . . . . . . . . . . . . 30

Dennis P. Block & Associates. . . . . . . . . . . . . . . . 40

XTermite. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Financial Designs, Ltd.. . . . . . . . . . . . . . . . . . . . . . 52

COMMERCIAL LENDING

PROPERTY MANAGEMENT

AIR-CONDITIONING

Provident Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Griswold Real Estate Management. . . . . . . . . . . 50

CREDIT CHECKS

LRS Property Management . . . . . . . . . . . . . . . . . 36

ApplyConnect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

PROPERTY MANAGEMENT SOFTWARE

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Genie Air Conditioning. . . . . . . . . . . . . . . . . . . . . . 49 APARTMENT ASSOCIATIONS Southern California Rental Housing Association. 6 APPLIANCE SALES AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

DECKING

&

STAIRS

/

MAGNESITE

/

WATERPROOFING

ROOF REPAIRS, MAINTENANCE & INSTALLATION

Bergeman Group . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Cert-A-Deck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 LD Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Life Deck.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

EARTHQUAKE RETROFITTING & ENGINEERING

ASPHALT

ADU1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

MGB Construction. . . . . . . . . . . . . . . . . . . . . . . . . 38

ENERGY SAVING / REBATES

BACKGROUND SCREENING

Independent Solar Advisors . . . . . . . . . . . . . . . . . 39

ApplyConnect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

ENGINEERING

BALCONY INSPECTION

ADU1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Bergeman Group . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Cert-A-Deck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 DrBalcony . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 BATHROOM REMODELING / REGLAZING American Bathtub Refinishers . . . . . . . . . . . . . . . . 3 CABINETS

YardiBreeze . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

FENCES/GATES/HANDRAILS LD Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 FINANCIAL / ESTATE PLANNING Financial Designs, Ltd.. . . . . . . . . . . . . . . . . . . . . . 52

Bergeman Group . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Resilient Roofing. . . . . . . . . . . . . . . . . . . . . . . . . . . 20 SEISMIC RETROFIT / SOFT STORY ADU1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 SOLAR ENERGY Independent Solar Advisors . . . . . . . . . . . . . . . . . 39 TOWING / PARKING CONTROL / SIGNAGE Western Towing.. . . . . . . . . . . . . . . . . . . . . . . . . . . 26 TENANT SCREENING ApplyConnect. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 TOILETS/SINKS/FAUCETS AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 WATER HEATERS/BOILERS AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

HEATING Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Genie Air Conditioning. . . . . . . . . . . . . . . . . . . . . . 49

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 WINDOWS & DOORS

Builders Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

KITCHEN REMODELING

Newman Windows & Doors. . . . . . . . . . . . . . . . . 11

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

AA Feders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

SIVAN Windows & Doors . . . . . . . . . . . . . . . . . . . 42

COIN-OP LAUNDRY SALES

LEGAL & EVICTION SERVICES

Aztec Appliance . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Dennis P. Block & Associates. . . . . . . . . . . . . . . . 40

Apartment Management Magazine cannot guarantee or be responsible for the products or services offered by advertisers in this publication - AMM 6-1 SOUTHERN CALIFORNIA RENTAL HOUSING ASSOCIATION - SCHRA.ORG

57

SAN DIEGO GAS & ELECTRIC & 211 PARTNERING FOR YOUR SAFETY

We all need a little help sometimes. During wildfire season, some of us need a little more help. That’s why SDG&E® is working with 211 San Diego to help provide additional customer assistance if a Public Safety Power Shutoff is necessary.

To get connected to community, health, social and disaster services, please call 211 or visit 211sandiego.org.

© 2021 San Diego Gas & Electric Company. Trademarks are the property of their respective owners. All rights reserved.

58

APRIL 2024 - APARTMENT MANAGEMENT MAGAZINE AMM6

FAM OUS FOR VALUE

aztecappliance

Huge Clearance Center Largest Selection in San Diego Famous quality and value since 1974 Professional Delivery, Installation, & Haul Away Property Management & Commercial Accounts Welcome

100’S OF MODELS AND BRANDS TO CHOOSE FROM! CHECK OUT THE OPEN BOXES, DISPLAY M ODELS, AND DISCONTINUED ITEMS FOR FAMOUS SAVI NGS! Famous for Customer Value since 1974!

Trusted for “On Time” service for 37 Years!

Providing the Multi-Unit Housing community with value and service Experienced Associates to assist you with: Brand name products, sales, selection, and service The Right Product, for the Right Application to Rent that empty unit, or complete your home’s remodel!

Most items available for same-day will call, or order by noon-have it delivered the next day!

LAUNDRY ROOM, REFRIGERATORS & FREEZERS, MATTRE SS SETS, COIN-OPERATED WASHERS, DRYERS, DISHWASH ERS, DISPOSERS, TRASH COMPACTORS, RANGES, OVENS, COOKTOPS, VENTILATION, OUTDOOR APPLIA NCES, WATER HEATERS & ACCESSORIES

We Welcome Residential and Commercial Clients. Serving San Diego since 1974!

4070 Kearny Mesa Road, San Diego, CA 92111 Phone: (619) 236-0616 (ask for Joan) E-Mail:Joan@aztecappliance.com Mon.-Fri. 8:30am-5:30pm Sat 10am-4pm Sat. 10am-4pm

APARTMENT MANAGEMENT MAGAZINES

VALUE

PRESORTED STANDARD U.S. POSTAGE PAID LOS ANGELES, CA PERMIT #1831

ADVOCACY VALUE

Presence in the community

The ultimate resource for all things related to rental housing.

Product and program diversification

Rental housing friendly public policy & elected and appointed officials

Reenvisioning quality housing for all

Robust funding for rental housing policy creation

To create a thriving rental housing community through advocacy, education, and collaboration

Resource hub

STRATEGIES Strategic alliances Fundraising Set strategic priorities

Character & integrity that negates need for regulation

OUTREACH

OUR MISSION

STRATEGIES

Recognized resource hub that inspires diverse membership growth & engagement from all sectors of rental housing.

ADVOCACY

OUR VISION

OUTREACH

People coming to SCRHA for opinion, advice, knowledge, & expertise Rental housing providers are recognized as valuable & essential members of the community

SOCALRHA.ORG 4 | Southern California Rental Housing Association Rental Advisor April 2022

STRATEGIES Visibility & prominence Collaboration