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JOIN SCRHA
Trusted Resource Hub
Southern California Rental Housing Association is the trusted source of support for rental housing providers in San Diego, Imperial, and southern Riverside Counties.
SCRHA Membership gives you access to a comprehensive resource hub so you can confidently face regulatory challenges and operational issues with expert guidance.
ADVOCACY REPRESENTATION
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Buck Buchanan
2025 President Southern California Rental Housing Association
President’s Message: Engage!
This past month, I was honored to join SCRHA and nine other volunteers in Sacramento . We spent the day meeting State Assemblymembers and Senators to advocate for the rental industry . Our focus was to encourage support for the CalRHA-sponsored bill to streamline the removal of squatters while also covering key issues such as evictions, rent control, and emergency price gouging We were encouraged by the positive feedback we received
In addition to our day of advocacy, SCRHA remains committed to being the voice of the industry throughout Southern California . While Imperial Beach did pass a Just Cause/Tenant Protection Ordinance, SCRHA was there to make sure the concerns of housing providers were heard . As these ordinances become more popular throughout the region, it is critical that we remain engaged . We must show up and share our concerns with our elected officials.
Additionally, SCRHA spoke against the Stopgap Eviction Moratorium Ordinance adopted by the San Diego County Board of Supervisors . We opposed the ordinance and are concerned about the law and potential unintended consequences . We will continue to monitor this law and will share updates with our members as available .
If you want to better understand our advocacy work and what to expect from your elected officials this year, please join us for the 2025 Rental Housing Conference & EXPO We’ll be rocking the rental industry with four seminars from rental housing rock stars, featuring:
• Leveraging AI in Property Management from Kent Langley
• Legislative Update from Molly Kirkland, SCRHA Director of Public Affairs
• State of the Apartment Industry from Joshua Ohl, The CoStar Group,
• Tips for Improving & Shopping Your Properties from Lindsay Martinez, Tourus, and Ronald Harrington, 29th StreetLiving
Your ticket includes all four educational seminars, a sold-out trade show with 80+ exhibitors, and the opportunity to cheer on your favorite teams at the 2025 Maintenance Mania competition . Register online at www .socalrha .org to join the festivities .
The 2025 Rental Housing Conference & EXPO is one of the most popular events for rental housing professionals of the year It is a day of gathering, networking, and fun for rental housing providers I can’t wait to see you there! Engage!
NAlan Pentico, CAE
Executive Director
Southern California Rental Housing Association
Executive Director’s Message: Spring into Action!
ow that we’ve wrapped up the first quarter of 2025, SCRHA is springing into action with an action-packed calendar for April, which is also Fair Housing Month to commemorate the signing of the federal Fair Housing Act of 1968, which prohibits discrimination in the sale, rental, and financing of housing based on race, religion, national origin, sex, handicap, and family status
Fair Housing is a constitutional right and should be on the mind of every rental housing provider . To help you understand and comply with Fair Housing, we are hosting our popular Fair Housing webinars on April 10 and April 15 . Led by Attorney Brian Bloodworth, Kimball, Tirey & St John LLP Whether you’re new to the industry or need to refresh your knowledge, this training is ideal for all rental housing professionals
In addition to our educational programming, we’re excited to escape the daily responsibilities and have some fun during the NextGen Networking Mixer on April 10 and our back-by-popular-demand Trivia Madness on April 22
If you’re a rental housing professional age 40 or younger, we invite you to join us for a laidback evening at Happy Does in the Gaslamp Quarter . This is the perfect opportunity to meet the volunteers on the NextGen Leadership Committee and build meaningful relationships with the next generation of rental housing professionals
We’re also excited to bring back Trivia Madness on April 22 at Wonderland Ocean Beach . This is your
opportunity to put your knowledge of the rental housing industry to the test . Registration is now open for individuals or teams of two, three, or four . Be sure to register early to save your seat at this high-energy event .
While we’re excited to see you at our April events and classes, I want to personally invite you to the 2025 Rental Housing Conference & EXPO at Town & Country Resort on May 8 . Our Events and Education Committees have been hard at work planning a full day of education and excitement for you Once again, we sold out every booth with your favorite industry partners and many new ones, too .
Register at www .socalrha .org/expo and get ready to “Rock the Rental Industry” with insights on Leveraging AI in Property Management with Kent Langley, a sold-out trade show with 90+ exhibitors, hot-topic seminars, and prize giveaways, as well as new games and challenges for the 2025 Maintenance Mania competition! Show your spirit and wear your best rocker outfit. All decades and genres are welcome .
You heard that right…Maintenance Mania is back! Competitors will show off their skills with maintenance-themed games Don’t miss this chance to earn extra points for your 2025 Mark of Excellence submission and register today!
It’s shaping up to be an exciting spring at SCRHA, and I look forward to connecting with you at our upcoming events! Keep an eye out for our member appreciation picnic this summer too!
CE LE B R ATIN G
Entrada | Greystar
El Pedregal | Cirrus
Clairemont Rental Properties
Limoncello
Katherine L Ries Company
Hitching Post Motels, Inc.
La Casa Bonita Apartments
Whalen Properties
Yvonne Coover-Stone Company
Adriano DaSilva, Jr
Wilma H. Healey Company
Carl Venstrom Company
T1 PropertiesE
Southwesterly Properties
Legar Management
Judy Malone Company
Robert and Patricia Lijewski
CE LE B R ATIN G
Jack Zolezzi Trust
James and Mary Sue Hamilton
GTF Properties
Sue and Vince Cooke
Donna Webber Company
Marshall Wilson Company
M. C. Contracting Service
Joe Gorst| Richard Nelson
Josephine Cree Company
RJW Properties, Inc.
Harding Street Apartments, LLC
Waypoint Property Management Services
Laura Sperry Company
Ben Gallardo Company
John Belanich Company
Creaser & Warwick, Inc.
Pacific Realty Sales & Management
DNC Limited Partnership
Linda Cocking Company
The Kevane Company, Inc.
Robert and Rita Konczalski
Elinor van den Akker Company
Lockwood Family Trust
RG Investment Real Estate Services Inc.
Tom LeDuc Company
Caesar Oriol Company
Jaswant Toor Company
Fred and Shirley Salzer
Fleetwood Properties
Park La Jolla Apartments
Rolf Steeve Company
Klein Family Trust
Kenneth Rundlett Company
David and Susan LaRose
Laurence and Carolyn Kaiser
Juniper Management
Errol Tonsky Company
Pacific View Companies, Inc.
Guava Gardens Apartments
Gregory Robinson Company
Richard Hancock Company
Pacific Commercial Management, Inc
Nancy Biberacher Company
Sierra Mar Properties LLC - Paul Hasley
Mary Ann Tarantino Company
Sid’s Carpet Barn, Inc
Terry Moore, CCIM, Inc.
Marissa Moncrief Company
Jerry Conway Company
Carol G . Swartz Trust
IHA Partners Inc.
Suzanne Demong Company
Jeffrey Malik Company
Mark Maeder Company
G. Beit-Ishoo / SeaDate
Apartments .com
George and Celida Haddad
Walsh Properties
Al Smithson Company
Sam’s Heating and Air Conditioning, Inc
Longley Family Trust - Nancy Longley Trustee
Waltwood Properties
Kevin Swartzberg Company
Marilynn Nemeroff Company
Sue A Daugherty
Nancy Mullins Company
NLJ, LLC
Brothers II
Ronald Endeman Company
Wakeland Housing & Development
Lance Faucett Company
ATI Restoration, LLC
SunRidge Properties, Inc .
David Olson Company
Muraoka Enterprises Inc.
Robert Brooks Company
People Helping Others Prop. Mgmt.
The Stratton | Fairfield Residential
Law Offices of Andrew C. Laubach
Josie Hill Company
Walz Properties| Fortuna Investment Group
Henry M Miller
Mark Marshall Company
Jangan California Properties, LLC
Elizabeth Dammassa-Uglik Company
Kevin Fayad Real Estate Services
REC Properties| Peasquitos Point Apts.
Chris Bushard Company
Dennis & Tina Daneri
Stelco Investments, Inc
Mira Bella Apartments | Simpson Property Group
Martin D Coyne
Araz Yacoubian Company
Sherry Bird Company
Michael C Borden Company
Sciuto Properties
Susan Miller Company
ASV Management
Tom Brady Company
Martin Laracy Company
Axiom Real Estate
Barry Treahy Company
SD Urban Rentals
Dennis and Marian Pierce
Terry Zanella Company
Jesus and Yolanda Arroyo
Ann Bossler Company
Betty Bark Company
Mr . and Mrs . Robb M . Crowder
David M. Pierce
Pacific Green Landscape, Inc.
Tamra Fuller Fountas
Frank A . Lueke Company
Buchanan Property Management Corp.
Unna Vista LLC
Brian Steer Company
Mr and Mrs Dale Jones
Eagle Property Management
Income Property Advisors Inc
Arbors at California Oaks Apartment Homes
The ADU Opportunity: Turning Vacant Spaces into Profitable Ventures
Jake Herczeg Chief,
Operating Officer of Ballast, explores how rental property owners can leverage ADUs as a form of adaptive reuse within multi-family buildings
Finding a home is becoming increasingly difficult for Americans Research indicates that there are approximately 3 . 8 million fewer homes than needed, with demand far outstripping supply
A study by the Pew Research Center found that 69% of Americans are concerned about the rising cost of homeownership, as prices have skyrocketed in recent years . Similarly, the Federal Housing Finance Agency reports that single-family homes are now 57% more expensive as of July 2024 compared to 2019 . In response, more people are seeking alternative housing solutions, particularly in high-demand areas, to meet their budget and living needs .
For rental property owners and developers, this demand presents a unique opportunity in the Accessory Dwelling Unit (ADU) market . Also known as in-law suites, ADUs are independent residential units created on residential lots, often by repurposing underutilized parking or storage spaces . These
dwellings provide affordable housing options while increasing property value A study by Porch found that ADUs in dense urban areas are 35% more valuable than non-ADU properties, making them an attractive option for developers looking to expand their portfolios while meeting a growing consumer need .
Traditionally associated with single-family homes, ADUs are now gaining traction in multifamily rental properties, including apartment complexes and duplexes Developers are increasingly using ADUs as a form of adaptive reuse, transforming underutilized spaces—such as storage rooms, basements, or oversized common areas—into fully functional living units . This shift provides investors with a practical way to maximize a building’s potential .
THE EVOLUTION OF THE ADU
Rental property owners and developers must start viewing their properties through a new lens . Does the building have underused parking spaces or an unused basement? Repurposing these overlooked areas can redefine the property’s function and generate additional income. ADUs offer owners flexible, affordable housing options while transforming unused spaces into liveable environments . What was once an underutilized area or an eyesore can become a valuable living space for a tenant while enhancing the property’s overall worth
While higher interest rates and moderated rent prices may affect project feasibility in the short term, longterm trends indicate significant growth opportunities in the ADU market .
One emerging trend is the shift in transportation habits . As more people rely on public transit, traditional parking spaces may become obsolete Just as transportation evolved from horse-drawn carriages to automobiles, today’s parking areas could be repurposed into residential spaces For instance, three standard parking spaces provide enough room for a new one-bedroom ADU apartment .
TECHNICAL CONSIDERATIONS FOR A SUCCESSFUL ADU INVESTMENT
Successfully implementing an ADU requires careful attention to building infrastructure and regulatory requirements Key considerations include:
must meet residential standards, and existing utility systems may require enhancements to support additional units .
• Historic Preservation – Expanding a building’s footprint may trigger extensive neighborhood review processes, leading to delays and increased costs . Engaging local preservationists early in the planning stages can help ensure a smooth approval process
• Site Conditions – Properties with challenging topography or located in wetland areas may face foundation stability and drainage issues . A thorough site assessment can help mitigate construction surprises and control costs
To avoid setbacks, property owners should proactively manage the process from the start Addressing building infrastructure needs—such as trash management, heating, laundry facilities, and utility upgrades—while keeping tenants informed can make the transition smoother and more efficient.
A WIN-WIN SOLUTION
Navigating ADU planning and implementation is a win-win for savvy property owners, especially in highdemand markets . ADU conversions provide dual benefits: they help address the housing shortage while increasing rental income Compared to other forms of adaptive reuse, such as office-to-residential conversions, ADUs often present fewer structural and financial challenges.
Given the ongoing demand for rental properties, the ADU market is poised for continued growth Investing in ADUs allows property owners to transform underutilized spaces into sustainable housing solutions, increasing rental density without requiring major reconstruction Success in this space depends on careful planning, technical due diligence, and optimizing the liveability of each unit to enhance both tenant satisfaction and property financial performance.
Jake Herczeg is the Chief Operating Officer for Ballast and its affiliates. Previously, Jake led the Property Operations division and Halyard’s Architecture, Engineering, and General Contracting divisions. Before joining Ballast, Jake founded Herczeg + Tobias Architects, where he specialized in multifamily renovation and addition projects.
Jake holds a Bachelor of Architecture degree from The Cooper Union. He is a licensed Architect in California, Illinois, Arizona, and Texas.
Government Overreach In Emergency Mandates
Protecting the Rights of Housing Providers
By Mercedes Shaffer, Realtor
When disaster strikes, we all want to help . But should the government have the right to volunteer the rental homes of private housing providers without their consent? This is the question at the heart of Los Angeles County’s recent decision to suspend Paragraph 3 of Section 1161 of the California Code of Civil Procedure, preventing property owners from evicting tenants who house individuals displaced by the fires. While I sympathize deeply with those who have lost their homes, this mandate forces housing providers to absorb significant burdens without compensation—an overreach that infringes on property rights
As housing providers, we aren’t simply offering a roof over someone’s head; we are running a business—a noble and vital one . Yet time and again, from COVID-19 eviction moratoriums to this latest rule, the government expects us to shoulder society’s emergencies with little acknowledgment and no financial support.
LEADERS SHOULD LEAD BY EXAMPLE
Before the government volunteers the rental homes of housing providers, perhaps it’s time for the governor, the mayor of Los Angeles, and city council members to set an example . Let them open their own homes to fire victims and their pets, no matter the size, breed, or potential damage they may cause, as they are suggesting housing providers should do . Please turn to page 16
Welcome New Members
PROPERTY MANAGERS
Uplift Property Management
INDEPENDENT OWNERS
Oak Hill Apts
Beth Barton Company
Garcia Co
JCC1 Properties
Jim Sherman Company
Onyx on Park | Avenue5
Procopio
Sherry Chen Realty LLC
Teresina | Greystar
The Willows Apts
SUPPLIERS
Andre Handyman
This would give them firsthand insight into the challenges we face—housing individuals outside the original terms of an agreement, dealing with potential property damage, and bearing unplanned financial strain Only after such leadership is demonstrated should housing providers be asked to take on these responsibilities—and even then, only with proper compensation and respect for the rights of property owners .
FINANCIAL AND OPERATIONAL REALITIES
If the government mandates that housing providers allow tenants to break lease agreements to house fire victims, it must also recognize the financial and operational consequences . Wear and tear, property damage, and the administrative burdens of such changes are far from trivial
Rather than shifting this responsibility onto housing providers, the government should utilize the substantial funds it has already collected—such as those from the controversial “mansion tax,” which imposes significant taxes on homes and commercial real estate sold over $5 million . These funds, originally marketed as a solution to the homelessness crisis, could be used to subsidize rents, compensate for damages, and ensure that housing providers are not left financially vulnerable
The resources exist The question is whether the government will choose to support housing providers fairly or continue to treat them as an unlimited resource for addressing crises
A NOBLE BUSINESS DESERVES RESPECT
To be clear, this is not about refusing to help fire victims Like everyone else, I want to support relief efforts. However, there is a fundamental difference between voluntarily offering help and being coerced into it through government mandates
What I’m calling for is fairness, respect, and acknowledgment of the critical role housing providers play . Property ownership should not give the government a free pass to offload its responsibilities without compensation or consideration Housing providers are private citizens and business operators— not public utilities—and their rights must be protected
FINAL THOUGHTS
This latest government mandate is part of a troubling trend: the expectation that housing providers will absorb the fallout of every major crisis, from pandemics to natural disasters . This article is not about opposing aid for fire victims—it’s about eliminating government overreach, protecting property rights, and recognizing that housing is an essential business and that housing providers deserve to be treated with fairness and respect .
While today this only impacts housing providers in LA County, it sets a precedence for housing providers across CA, and government must do better A collaborative approach—one that respects property rights, provides financial compensation, and treats housing providers as partners in addressing crises— is the only path forward . Let’s shift the narrative and ensure that those who provide housing are valued, not exploited
To share your thoughts and opinions, feel free to contact me .
Mercedes Shaffer is a multifamily real estate agent with REAL Broker, and If you have questions about buying, selling or doing a 1031 exchange, her team serves LA and Orange County and can be reached at 714 330 9999, InvestingInTheOC@gmail com, or you can visit their website at Invest-ingInTheOC .com DRE 02114448
On Again, Off Again...On Again: Corporate Transparency Act Now Back in Effect
Beware: There are New BOI Compliance
It’s Back! The Corporate Transparency Act (the “CTA”) mandatory beneficial ownership reporting requirement is once again back in effect. Following a ruling in the Texas federal district court in the matter of Smith vs . U .S . Department of the Treasury, the injunction was lifted and the CTA’s mandatory reporting requirement has now been reinstated .
Anyone that owns 25% or more of a Corporation, LLC (including single member LLC), or Partnership, is again required to report ownership interests to the U .S . Treasury Department’s Financial Crimes Enforcement Network (FinCEN) For reports that were originally due from December 3, 2024, (e g , the date of the first injunction of the CTA, in another case) through February 18, 2025, FinCEN granted a 30-day extension for reporting companies to comply with the CTA’s mandatory beneficial ownership reporting requirements The new deadline for most reporting companies to file an initial, updated, and/ or corrected BOI report is now March 21, 2025 . Any reporting companies that have reporting deadlines later than March 21, 2025, such as those that qualify for disaster relief extensions due to federally declared
Deadlines
disasters such as those reporting companies with principal places of business impacted by Hurricanes Milton, Helene, Debby, Beryl, and Francine, were given extended deadlines
Despite the new deadline of March 21, 2025, there is always a chance that other developments could once again change the CTA reporting requirement Bills have been proposed in Congress to further delay the reporting deadline and to eliminate the CTA altogether, and the Trump Administration may take action The Supreme Court is not scheduled to hear oral argument in the case in which the initial injunction was issued until April, which is after the new deadline Lastly, the FinCEN Notice of the March 21 extension also states: “FinCEN also intends to initiate a process this year to revise the BOI reporting rule to reduce burden for lowerrisk entities, including many U S small businesses ” Let’s hope this is true .
For more information, visit the following Financial Crimes Enforcement Network (FinCen) website at: https://www.fincen.gov/boi. You can file the report directly via this website .
seekers cite a company’s commitment to diversity as an factor in deciding not to accept an offer.” very important for a talk the talk and walk Diversity and inclusion be a phrase in your mission statement or that meets once a This dedication needs in initiatives like pronoun preference, accommodations for are differently-abled, ensure fair and equal an Offer, and They NOW HR procedures make to establish a hiring and follow the correct when extending an offer. no part of that. They
Below are some frequently asked questions (FAQ’s) contained on the FinCEN website that may be helpful . Visit the website https://www.fincen.gov/boi for additional filing information.
• What is beneficial ownership information?
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company .
feel if it’s a right fit, the offer should be made. “Nearly one in five Gen Zers expect a job offer one week from the initial phone screen. The majority expect an offer within two weeks.” Whether this expectation is realistic or not, companies that make an actionable change to speed up their hiring process will win top Gen Z talent.
• Under the Corporate Transparency Act, who can access beneficial ownership information?
*Statistics pulled from Yello
In accordance with the Corporate Transparency Act, FinCEN may permit access to beneficial ownership information to: Federal agencies engaged in national security, intelligence, or law enforcement activity; State, local, and Tribal law enforcement agencies with court authorization; Officials at the Department of the Treasury; Foreign law enforcement agencies, judges, prosecutors, and other authorities that submit a request through a U .S . Federal agency to obtain beneficial ownership information for authorized activities related to national security, intelligence, and law enforcement; Financial institutions with customer due diligence requirements under applicable law (in order to facilitate compliance with those requirements);
Generation Name Birth Years
Baby Boomers 1946-1964
Gen X 1965-1980 Millennials 1981-1996
Gen Z 1997-2012
and Federal functional regulators or other appropriate regulatory agencies that supervise or assess financial institutions with access to beneficial ownership information (in order to supervise such financial institutions’ compliance with customer due diligence requirements)
FinCEN published the rule that will govern access to and protection of beneficial ownership information on December 22, 2023. Beneficial ownership information reported to FinCEN is stored in a secure, non-public database using rigorous information security methods and controls typically used in the Federal government to protect non-classified yet sensitive information systems at the highest security level FinCEN will continue to work closely with those authorized to access beneficial ownership information to ensure that they understand their roles and responsibilities in using the reported information only for authorized purposes and handling in a way that protects its security and confidentiality.
• Will there be a fee for submitting a beneficial ownership information report to FinCEN?
No. There is no fee for submitting your beneficial ownership information report to FinCEN .
• How will I be able to report my company’s beneficial ownership information?
If you are required to report your company’s beneficial ownership information to FinCEN, you will do so electronically through a secure filing system available via FinCEN’s BOI E-Filing website (https://boiefiling. fincen.gov).
• Is a reporting company required to use an attorney, certified public accountant, enrolled agent, or other service provider to submit beneficial ownership information to FinCEN?
No . FinCEN expects that many, if not most, reporting companies will be able to submit their beneficial ownership information to FinCEN on their own using the guidance FinCEN has issued . Reporting companies that need help meeting their reporting obligations can consult with professional service providers, such as lawyers, accountants, or enrolled agents .
• What information will be collected on filers?
When submitting the BOI report, individual filers should be prepared to provide basic contact information about themselves, including their name and email address
San Diego County’s Action Creating Burden On Housing Providers
We need policies that strike a balance between affordable housing and the realities of property ownership.
by Alan
Pentico, CAE, Executive Director of the
Southern California Rental
Housing Association
The recent move by the San Diego County Board of Supervisors to clamp down on so-called “corporate ownership” of single-family homes, condos and townhouses is causing quite a stir .
At the Southern California Rental Housing Association, an organization made up of local housing providers, we understand that officials want to take action to ease our housing crisis — but this needs to be thoughtful and based on data What’s frustrating is that no input was sought from the rental housing industry before this board action This isn’t the kind of collaborative, meaningful public input we expect in California .
The proposal, led by Vice Chair Terra Lawson-Remer,
aims to take on enormous corporate “bad actors” such as private equity firms who are supposedly making our housing crisis worse, possibly by price fixing . This action unfairly targets our local landlords who are already dealing with enough red tape
Most landlords are not Wall Street tycoons; many are everyday people trying to make ends meet .
The term “corporation” has been turned into a bad word to promote a narrative, but this narrative overlooks the vital role that these entities play in our housing market . For example, many small landlords have formed corporations to rent out single-family homes to supplement their income, secure their retirement or build wealth for their families .
Please turn to page 24
We represent many affordable housing operators that are medium to large companies San Diego also has several large apartment owner companies that started small and remain primarily family-owned but have grown over the years
None of these are “Wall Street bad actors” causing housing price spikes .
Let’s not demonize rental housing providers that are over a specific size . Larger companies are often the only ones that can afford to build in California’s heavily regulated market . Without them, we won’t be able to meet our housing needs We need a variety of housing types at all price points
It’s important to remember that a corporation is a tax status, not an identity . After all, respected California pension funds like CalPERS and many municipal retirement systems invest in Real Estate Investment Trusts (REITs), meaning they are stakeholders in these larger property-owning corporations
The ordinance plans to do a lot: look at who owns what, sue big landlords for alleged price gouging and tenant harassment, and explore more local rules to protect renters and small landlords But here’s the thing: A lot of these measures are already covered by existing laws
We don’t need another layer of rules that give lawyers more business Federal and state regulations already handle price-fixing, tenant protection, tenant harassment and unfair rent hikes . Adding more local rules will only make things more complicated and lead to more lawsuits, which doesn’t help anyone .
At the Southern California Rental Housing Association, we want to make sure that property owners and managers have a voice in this process We need policies that strike a balance between affordable housing and the realities of property ownership
Instead of punishing landlords, the county Board of Supervisors should focus on building more homes Supervisor Joel Anderson is spot on: We need to build more housing, not get bogged down in debates over market manipulation by a small part of the industry .
In the end, the intentions behind the proposal are good, but the approach needs a rethink .
By working together with all stakeholders, the Board of Supervisors can come up with better strategies to tackle the housing crisis without scaring off investors and overburdening those who are already helping to keep the market going The Southern California Rental Housing Association is ready to help find a balanced solution that protects tenants and supports property owners
Alan Pentico, CAE, is the executive director of the Southern California Rental Housing Association. Whenever I can, I like to share my expertise in any of the areas mentioned. Feel free to ask. If I don’t know the answer, I can probably give you some good suggestions as to where to look for it. My capability includes: Extensive experience in local policy inception, development, and implementation through collaborative efforts; Broad experience in local and state advocacy and program management as well as Political Action Committee management, as a Public Affairs Executive; and a strong understanding of non-profit management including certification by the American Society of Association Executives (ASAE) as a Certified Association Executive (CAE) for Non-Profit association management. A wide-range of knowledge in the rental housing industry. I am always interested in new ways to advance the Rental Housing industry, field of Public Affairs, and Non Profit industry.
The Art of EOM Reports
By Kari Negri, Chief Executive Officer, SKY Property Management
Today,I’m excited to dive into what makes our End of Month (EOM) report so special It all started when a client wanted to be ahead of the curve, staying in the know about their finances before any surprises popped up Since then, we’ve fine-tuned this process and have helped bridge the gap between property management operations and property owners’ peace of mind . For us, this isn’t just about sending out a report; it’s customized for each property, and crafts a narrative that aligns with each property owner’s concerns, preferences, and objectives
Here’s what sets our EOM report apart:
At the heart of what we do is this simple idea: every property owner is one of a kind It’s what drives us to make sure that each EOM report we send out is as unique as they are It’s all about customizing those reports to match up perfectly with each owner’s expectations, wants and needs .
We start off by giving you the rundown on what’s happening at the property - who’s moving in, who’s moving out, and the status of vacant units . This part
is super important because it sets the stage for us to dig deeper into how the property is doing financially and operationally Are we getting more rent than the outgoing tenant was paying? Has advertising started? What kind of traffic are we seeing / anticipating? This is part of the info our owners receive
Moving on, we dive into maintenance and repairs
We’ve noticed that property owners have different preferences here - some love getting into every tiny detail, while others prefer the big picture So, to meet everyone’s needs, we’ve structured our report accordingly We’ve added sections for larger expenses over $500 to ensure we cover all bases . Additionally, we include a breakdown of upcoming expenses such as taxes, insurance, turnover costs, and capital improvements .
Finally, we make sure to highlight the key actions we’ve taken - timely rent collections and on occasion evictions, addressing potential property hazards, securing cost-saving bids, making budget-friendly enhancements, and capturing tenant compliments/ complaints if noteworthy . We want to give the owners a comprehensive overview of how things are going and
what we’re doing to keep their property in top shape .
One of the standout features of our EOM reports is the inclusion of photos . We make sure to capture the current state of the property, along with before and after shots of any maintenance work or renovations done during vacancy turns . These visuals are powerful, giving property owners a clear picture of where their money is going . For instance, let’s say we wanted to replace some fascia, only to discover extensive wood rot underneath . What started as a $10,000 job could quickly escalate into something more expensive These photos let property owners see firsthand the challenges we’re facing, highlighting the importance and effectiveness of the actions we’ve taken.
The EOM report has become more than just a document—it’s a key conversation starter with property owners, guiding discussions on the future of their investments . It’s all about building a trustworthy and transparent relationship by providing detailed financial insights and planning for major expenses ahead of time Our goal is to foster a partnership based on clarity, informed choices, and trust . By customizing our reports, predicting financial needs, and using visuals for better understanding, we’re not just managing properties; we’re carefully looking after investments and aligning our strategies with each owner’s unique needs . This approach is the essence of property management for me: forward-thinking, transparent, and tailored to every client
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 .
LOOKING FOR NEW BUSINESS?
CALENDAR Register at socalrha.org
Register for events and classes online at socalrha.org. Please note, that all in-person 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
Fair Housing Part I (3 CECs)
Webinar
A staple in the property management industry, this two-part series provides an in-depth look at Fair Housing for housing providers .
April 10 9:00A - 12:00P 9:00A - 12:00P
April 15
Fair Housing Part II (3 CECs)
Webinar
A staple in the property management industry, this two-part series provides an in-depth look at Fair Housing for housing providers
State Legislative Update
To curb price gouging in Los Angeles after the recent fires, Assembly Member Isaac Bryan introduced AB 246, a bill imposing a rent freeze across Los Angeles County following the region’s fire-related state of emergency—an emergency that could remain in place indefinitely. The bill was heard in the Assembly Judiciary Committee March 4, 2025 and received a thorough vetting with many members voicing concerns how this would affect “mom and pop” landlords in Los Angeles.
As currently in print, this bill would extend the rent increase prohibition to 12-months after the wildfirerelated state of emergency is lifted by the Governor . However, given that the Governor’s state of emergency declaration underpins several subsequent executive orders designed to expedite rebuilding these communities, the state of emergency may stay in place for several years As a result, the committee felt this language to be problematic because it would result in a rent freeze that would never end . Given that this measure is designed to prevent rental price spike in the immediate aftermath of the fires, such a prolonged rent freeze is unwarranted . Accordingly, the bill was amended to end the rent freeze March 1, 2026
Even with the amendments, the bill is still problematic, and rental housing lobbyists will continue to work with the author and attempt to address our concerns with the bill .
By Pat Moran, Aaron Read & Associates
Senate Bill 448 (Umberg), the Trespassing Response and Remedies Act, is a newly introduced bill that will address the rising problem of trespassers unlawfully occupying properties across the state. SB 448 offers a clearly defined and straightforward framework for property owners to reclaim their properties and protect our neighborhoods
These unauthorized occupants threaten property owners’ rights and pose significant safety risks and financial burdens. SB 448 balances the need for housing providers to reclaim their rental properties quickly and efficiently while upholding vital renter protections .
This past week, through the efforts of SCRHA, we were able to secure public safety support for the bill . A big thank you to the Riverside Sheriffs’ Association, Santa Ana Police Officers Association (POA), California Reserve POA, Riverside POA, Arcadia POA, Corona POA, Placer County DSA, Culver City POA, Palos Verdes POA, Novato POA, Burbank POA, Brea POA Newport Beach POA, Claremont POA, Pomona POA, Fullerton POA, and Murrieta POA for supporting the bill .
The bill is sponsored by CalRHA and supported by the SCRHA .
FHCRC hosts the Annual Inland Empire Housing Conference in April in honor of National Fair Housing Month. Since 2014, this flagship event gathers over 300 influential leaders, including government officials, nonprofit organizations, policymakers, developers, lenders, and community advocates. Our event provides a dynamic lineup of keynote speakers, policy experts, and panelists that will drive the conversation forward, offering unmatched insights into the housing landscape.
A Different Type of Resolution: Multi-Family Real Estate
By Rod Khleif
At the start of every year, countless people pledge to make changes to better their lives . Some people focus on improving their health and strengthening their relationships, while others focus on achieving financial goals or learning new skills . Unfortunately for many, these resolutions fade over time because they lack clear and actionable plans .
For those looking to build generational wealth or financial growth, investing in multi-family properties often presents an opportunity to challenge oneself with a New Year’s pledge . However, it’s not for the faint of heart and definitely harder than committing to a gym membership Investing in a multi-family property requires significant work and isn’t something you dabble in for a couple months and then abandon For those looking to conquer this challenge, setting yourself up for success and setting achievable milestones are the first steps toward success.
KNOWING THE NUMBERS
It should all start with a self-assessment of your financial status, time availability and skill set Start by looking at your investment capital and consider how much is available to invest or can be raised from others If you don’t have the liquidity to invest alone, partnering with friends and family is a good solution
In multi-family real estate, it is important to know about active and passive opportunities for investment
• Active investing is where you buy a property, and
you are involved in the day-to-day operations and assume the liabilities of the business . Active investing requires managing the property or hiring a third-party property management company .
• Passive investing involves a syndicated deal as a limited partner, so you have no management responsibilities . As a passive investor your liability is limited to the loss of your investment and the upside potential is shared with the general partner . Both are good options with very different risks and rewards but today we will focus on active investing .
LEARNING THE BASICS
To succeed in multi-family investing you need to understand the business of real estate investing . Begin by extensively reading or consuming videos trainings about multi-family real estate to better understand the modern landscape and discover all of the classic pitfalls to avoid
There are numerous educational resources that cover the do’s and don’ts of real estate investing Use the research and information available to determine how to evaluate markets, exploit online marketing techniques, prepare a budget, build a value-add plan, evaluate the financing available, and determine how much money you should raise for the property . Countless people have taken this exact path, so why not learn from their mistakes and successes
G e t R e a d y , G e t S e t , C o m p e t e & W i n !
T h e 2 0 2 5 M a i n t e n a n c e M a n i a
C o m p e t i t i o n i s b a c k a n d b i g g e r
t h a n e v e r !
R e t u r n i n g t o t h e S C R H A R e n t a l
H o u s i n g C o n f e r e n c e & E X P O a t
t h e T o w n & C o u n t r y R e s o r t , t h i s
a d r e n a l i n e - p u m p i n g e v e n t h a s
c r o w n e d c h a m p i o n s f r o m
c o m p a n i e s a c r o s s t h e i n d u s t r y
W i l l y o u r t e a m b e n e x t ?
N e w G a m e s f o r 2 0 2 5 !
P l a n k P u z z l e
B a l a n c e t h e S c a l e s
K e y s t o W i n
R a c e C a r C o m p e t i t i o n
M e m o r y M a s h U p
T r i v i a D i s c D r o p
P l u n g e r L a u n c h
Registration Includes Admission to the 2025
Rental Housing Conference & EXPO!
$99 SCRHA Members | $120 Non-Members
S C A N T O
R E G I S T E R !
w w w . s o c a l r h a . o r g
PICKING THE RIGHT MARKET
The next step for an active investor is to determine where to invest It’s common to select a target market near a primary residence, but multi-family investments frequently occur outside of your residential state . Within the market you select, it’s important to understand the demographics and business climate . Are wages growing? Is the population expanding? How many new jobs are being created? Is the area safe? How much apartment competition is there and what is in the construction pipeline?
Once you find a market that checks all the boxes, start contacting brokers to tell them what you are looking for or identify properties yourself and directly reach out to owners directly
DOING YOUR RESEARCH
The second step is to evaluate the economics of the target property It starts with a skeptical mindset of any numbers since sellers and brokers will try to paint the best picture possible Develop a budget and contact several banks to understand financing rates and terms. Fixed financing is industry-preferred, but commercial banks may only offer floating rate loans. If you must take a floating rate loan, then be sure to understand what will happen to cash flow if rates move a few percentage points higher and impact your ability to make payments .
For rental rates you should call up the competition to figure out what they are charging for bedrooms and square footage and how many units are available Read the competitors’ online reviews to learn more about tenants’ preferences Compare amenities and apartment size to get an idea of what the rent should be at your target property Look for the statistics on average vacancies in the area keeping in mind that nationally it is around 6% but it’s common to vary depending on the local market
For expenses the big ones to get right are taxes, insurance and maintenance A trip to town hall will help answer any taxes estimates . For insurance, get a copy of the current policy and bring it to a commercial insurance broker . Maintenance is going to depend on the age of the property and how much deferred maintenance is
evident This is usually the line item that can blow up a budget so be conservative when planning .
GETTING THE PRICE RIGHT
The final step is to complete your budgeted net income and apply a cap rate . You should be able to get historical cap rates for similar recently sold properties in the area from the sales brokers Dividing the net income by the cap rate helps create your buy price .
This is where art and science mix . You may be willing to pay a lower cap rate if you believe there is something about the property that gives it a competitive advantage . Once you settle on a cap rate, compare your offer price to the asking price and if the gap is simply too wide you should revisit your P&L assumptions and see if you may have been too conservative If you can’t narrow the gap, then you have to decide whether to make an offer. You should expect to have a very low success rate in buying properties but with each offer you will become better at the process .
MULTIFAMILY REAL ESTATE OUTLOOK NEXT
There are a number of abating headwinds in 2025, which are making the coming year look like an opportune time for multi-family investing. Inflation dealt a serious blow to the bottom line of multi-family properties at a time when new apartment construction hit an all-time high New supply has kept rent increases in check while simultaneously increasing vacancies in many markets .
Many operators are struggling with adjustable-rate debt that is now due
On the flipside, 2025 new construction is falling precipitously, and inflation rates are settling near the 2% target which can help boost cash flow for multi-family operators Certain demographics are struggling to pay their rent so if you are considering buying property that caters to lower income individuals make sure to increase your delinquency reserves and that the purchase cap rate reflects the higher risk. With the combination of the right mindset and financial discipline, the next year has the opportunity to establish new highs for multifamily investment So, while a gym membership is cheaper, the rewards of investing in the right multifamily property presents a far greater opportunity .
Rod Khleif is a multiple business owner and philanthropist who is passionate about business, high performance, real estate and giving back . As one of the country’s top real estate and peak performance luminaries, he has owned over 2,000 properties. Rod’s experience involves remarkable triumphs and spectacular failures, which he affectionately calls “seminars .’’ He is the host of one of the largest commercial real estate podcasts in the world: “Lifetime Cash Flow through Real Estate Investing,” which has been downloaded over 20 million times Through is educational programs, Rod has trained thousands of people in the benefits and nuances of multifamily real estate investing. Rod also founded The Tiny Hands Foundation, which has benefited more than 130,000 children in need.
Landlord Legal Questions &Answers
by Kimball, Tirey & St. John LLP
Question: My tenant is asking me to accept rent from a local non-profit I do not take money from non-tenants except the government, is that okay?
Answer: No, it is not okay . Landlords are required to accept payments of rent from any third party as long as the payment comes with a statement that the rent payment is on behalf of the tenant and that it would not create a landlord/tenant relationship with the third party
Question: Our tenant owes us back rent and is stating that he is probably going to file bankruptcy . We’ve been trying to work with him but are getting nervous now Do we lose all the back rent if he files bankruptcy?
Answer: It depends If he files a Chapter 7, there is little hope . If he files a Chapter 13, you may receive all or a portion of the back rent If the debt is named on the bankruptcy filing and is discharged, you would not be able to get payment . If the debt is not discharged or becomes due after the filing, you could still try to collect .
Question: There was a fire in one of our rental units due to a tenant’s candle . What is my ob-ligation to provide alternate accommodations for this tenant? Am I required to keep her as a rent-er?
Answer: You are not obligated to put the tenant up You may have a right to evict her based up-on waste of the unit, which requires a 3-Day Notice to Quit The burden is on you to prove that it
was the tenant who was responsible for the fire to evict
Question: The tenants living in one of our apartments signed a one-year lease which states that there will be no pets allowed . They now have two cats in the apartment and are only in the second month of the lease . We served a 3-Day Notice to Perform Covenant or Quit They have chosen to leave . The rent for the entire month was paid . Are they entitled to the prorated amount of rent for the unused portion of the month?
Answer: No, they are liable for the remainder of the lease or up to the time you relet the premises, whichever occurs first A landlord must act with due diligence to rent the unit in order to miti-gate the damages .
Question: My tenants paid an extra deposit for a pet They gave away the dog after 2 months Now they are asking if the pet deposit could be returned .
Answer: You do not have to account for the use of the deposit until 21 days from the date they return possession of the premises, so you don’t have to refund any of the deposit .
Q
uestion: I rented an apartment to a young man; he signed a one-year lease and paid the deposit and first month’s rent in full . He has received the keys but now he is requesting to get out of his lease because another apartment that he prefers became available . Is there any kind of buyer’s remorse on signing a lease?
Answer: Your tenant is obligated to pay rent through the lease term or until the time the premises are relet, whichever occurs first . There is no buyer’s remorse
AQuestion: One of the recent applicants to our apartment community claims he is paid “under the table” . How do I verify his income?
nswer: You really can’t, and because he is committing fraud, you should not consider this a legal source of income If they fail to otherwise qualify, you can deny his rental application .
Question: One of our tenants was recently arrested and has not paid the rent . We served a notice by “post and mail”, and it has been over three days . How do we serve the unlawful detain-er (eviction) on the tenant while in jail?
Answer: Most jails will allow your process server to serve the tenant while in jail It may take several hours before they are able to pull the inmate up, but your process server can be waiting for him or her and legally serve them while incarcerated .
Question: One of our residents served us with a written 30-day notice and has failed to va-cate after 30 days Can I start the eviction process, or must I serve a 30-day notice first?
Answer: Under state law, if a residential tenant serves the landlord with a written 30-day notice and the rental term is month-to-month, the landlord may immediately file an unlawful detainer (eviction) action in court on the 31st day, providing the 30th day fell on a business day Do not serve another notice . However, if the property is subject to just cause, you cannot evict unless one of the just cause reasons permit this . Check with an attorney to see if local laws apply to your case
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
SCRHA Advocates for Industry in Sacramento
Dozens of rental housing industry advocates were in Sacramento on March 12, 2025, to lobby on bills that impact the industry . SCRHA led a group of 10 who visited the offices of State Assemblymembers and Senators to ask for support of the CalRHA-sponsored bill to make it easier to remove squatters . Discussion also included concerns with bills related to evictions, rent-control, and price gouging/emergency declarations SCRHA received positive feedback and is hopeful that our ongoing advocacy will lead to positive outcomes Look for legislative updates in the future .
THE INCOME PROPERTY MANAGEMENT EXPO RETURNS
TUESDAY, MAY 20TH
THE PREMIER EVENT FRO SOUTHERN CALIFORNIA RENTAL HOUSING PROVIDERS - JOIN US AT THE PASADENA CONVENTION CENTER ON MAY 20TH
Los Angeles, CA – The Apartment Association of Greater Los Angeles (AAGLA) is pleased to present the 2025 Income Property Management Expo (IPME) —the must-attend conference for income property investors, real estate professionals, and property managers This highly anticipated exposition and conference will take place on Tuesday, May 20, 2025, at the Pasadena Convention Center for a full day of education, networking, seminars and rental housing industry insights
The 2025 Income Property Management Expo is the one-stop destination for income property investors, property owners and managers, and real estate investors seeking the latest strategies, solutions, services, and products that can help them maximize profitability, stay ahead of regulatory changes, and streamline operations with the goal of maximizing their “bottom line ” With an ever-evolving real estate landscape, this year’s IPME is more crucial than ever
for those looking to thrive in the rental housing market
WHAT ATTENDEES CAN EXPECT AT THIS YEAR’S 2025 IPME
• Expert-Led Educational Seminars: Gain invaluable knowledge from industry-leading professionals covering key topics such as landlord-tenant laws, rent control updates, risk management, tax strategies, and sustainable property improvements
• Networking Opportunities: Connect with property owners, managers, investors, and vendors to exchange insights and build meaningful industry relationships that can take your business to the next level
• Innovative Exhibit Hall: Browse a diverse selection of over 150 exhibitors offering property management services, maintenance solutions, legal guidance, insurance services, tax and financial services, and more to enhance operational efficiency and increase ROI .
• Guest Speakers & Q&A Sessions: Engage with top experts in discussions about market trends, investment strategies, and emerging technologies that are reshaping the property management landscape .
• Regulatory & Legislative Updates: Stay informed on California’s ever-changing housing policies and laws that impact rental property owners and managers, ensuring compliance and risk mitigation .
“AAGLA is proud to once again present this year’s Income Property Management Expo as part of our commitment to educating and empowering landlords, property managers, and investors,” said Daniel Yukelson, Chief Executive Officer of the Apartment Association of Greater Los Angeles . “Our goal is to provide attendees with the tools, knowledge, and networking opportunities necessary to navigate today’s complex rental housing market with confidence and the best chance of success . ”
WHY YOU SHOULD ATTEND
If you own or manage residential rental properties, then IPME 2025 is the best opportunity for you to gain valuable insights, access exclusive resources, and
connect with the real estate community Whether you are a seasoned investor or a newcomer in property management, IPME 2025 offers something for everyone looking to enhance their income property portfolio and optimize their rental business operations .
Event Details
• Date: Tuesday, May 20, 2025
• Location: Pasadena Convention Center
• Time: 8:30 a .m . – 3:00 p .m .
• Admission: Free with pre-registration
• Learn More & Register at www.IPMExpo.com
About the Apartment Association of Greater Los Angeles - The Apartment Association of Greater Los Angeles (AAGLA) provides advocacy, education, and resources to rental property owners and managers throughout the Greater Los Angeles region . As one of the nation’s leading rental housing associations, AAGLA serves as a powerful voice for the rental housing industry, ensuring the protection of property rights and the success of its members .
Financial advisory A Review of the Latest US Census Estimates – Where is the Population Growth?
BY CHRISTOPHER MILLER, MBA SPECIALIZED WEALTH MANAGEMENT
Ihope 2025 is treating you well so far . Things have been busy here at the Specialized Wealth Management office – which we feel can be a sign that 2025 will be busy here in the real estate industry
As I often mention in my articles, I track United States census data . The Census Bureau does a “hard count” of US residents every 10 years, but also releases an annual list of population estimates for about 450 metropolitan areas in our country . When this list is released each year, I’ll import the data into my spreadsheet model and review the results . This month, I’ll share what I am seeing
WHY DO I TRACK CENSUS DATA?
I track Census data, because I want to know what areas of the country are growing faster than the national average . I think that owning apartments in metro areas where our pool of potential customers for our apartments, or for our NNN tenants, is growing every year will give us a better chance of success .
A QUICK SUMMARY OF THE NATIONAL DATA
Since 2010, US Population growth has averaged 0 .65% annually . Between 2010 and 2016, the oneyear growth rate was between 0 69% and 0 73%very steady . In 2017, it declined to .063%, followed by 0 .52% and 0 .48% for 2018 and 2019 . Between 2019 and 2020, growth spiked, with a gain of 0 99% - 2,250,000 people! The COVID Pandemic and economic slowdown slowed this growth considerably – with 0 .16% in 2021 and 0 .38% in 2022 . Population growth hit 0.49% in 2023 – officially back at 2019’s “Pre-COVID” Rate .
WHAT IS HAPPENING IN CALIFORNIA?
What’s happening in California can best be summarized as “If we’re looking for higher than average growth, we probably won’t find it here in the state.”
LOS ANGELES/ORANGE COUNTY METO AREA
The Los Angeles-Orange County Metro Area’s population peaked in 2017 and has declined each year since then This trend continues into 2023- since ’17, we have lost approximately 480,000 residents, with 75,000 leaving between 2022 and 2023 . Since 2017, we have lost 3 5% of our residents at a negative 0 .6% annual rate . We are therefore losing residents at almost the same rate that the entire country is gaining them! There are still 12,800,000 of us here – that’s why traffic hasn’t seemed to get any better- but the LA/OC Metro population was 12,828,000 in 2010 – we dipped below that level last year to post negative population growth over the last 14 years!
JUST ORANGE COUNTY
Orange County was the one area keeping the LA Metro area’s growth positive but the county’s population began declining in 2020, and has dropped every year since In just three years, Orange County lost 50,000 residents – seeing an average annual exodus of -0 .5%: close to Los Angeles’ numbers!
SAN FRANCISCO BAY AREA
Population is the San Francisco Bay Area is similarly declining . Although the Metro Division (a segment of a Metro Area) that contains Oakland-Berkeley-Livermore surprisingly matched U .S . national growth averages at
Continued from page 44
0 .65% since 2010; the population has been on the decline since 2018 and has shrunk an average of 0 8% per year since then!
WHERE IS THE GROWTH?
Several smaller (Total Population just under 1 million) Metro areas that have posted extraordinary growth since 2010 are actually seeing that growth accelerate . Huntsville, AL has seen 2% annual population growth (over three times the national average) since 2010, but that number increased to 2 25% between 2020 and 2023 . Sarasota/Bradenton, south of Tampa on Florida’s Gulf Coast, saw 2 .28% annually since 2010 and 2 9% since 2020, while the Cape Coral/Ft Myers, FL area saw 2 .7% and 3%! Greenville, SC is seeing accelerating growth as well with 1 4% annual since 2010 and 1 .62% annual since 2020 results .
This accelerated growth is much harder to achieve in larger markets, but Tampa/St . Petersburg has done 1 5% annually since 2010 and 1 65% since 2020 Jacksonville, FL is remaining steady with 2 .1% since 2010 AND since 2020 Although Austin TX’s growth has cooled from the astounding 3 4% annual rate from 2010, it still posted 2 .5% annually since 2020 – 4 times the national average!
You’ll notice that all these markets are in the American Southeast . This echoes my article from April 2024 that
found the American Southwest is the only region of the country that is seeing population growth above the national average .
GROWTH IS IN THE AMERICAN SOUTH REGION
While there are compelling growth stories in other areas of our country, (Phoenix, AZ, Boise, ID, Reno, NV, Denver, CO), the only areas showing this accelerating growth are in the South If we are looking to buy in the South for more growth potential, we will – of course –need to look at the data behind the metro areas we are considering . There are still low-growth (Birmingham, AL, New Orleans, LA, Memphis, TN) area in the south as well
I feel that population growth in a metro area is a major driver of growth in rents and property values . This makes a lot of sense – as I said before; if the number of potential customers (renters for our apartments or customers for our retail NNN stores) is growing ever year, then perhaps we have a better chance of success than in an area where it isn’t . If you agree; perhaps investment properties in the American South could be right for you . If you have any questions, my toll-free office number is (877) 313-1868.
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
DON’T LEAVE YOUR ASSETS VULNERABLE TO EARTHQUAKES
by Ali Sahabi, Optimum Seismic
Insurance protects your finances. Seismic retrofits protect lives—and your livelihood
As an apartment owner, you’ve worked hard to build your assets . But with new research showing that San Diego is at even greater earthquake risk than previously thought, hoping for the best is not a reliable strategy . Proactive measures, like seismic retrofitting, are essential to safeguarding both property and people .
SAN DIEGO’S EARTHQUAKE THREAT: THE NUMBERS DON’T LIE
A major earthquake on the Rose Canyon Fault could cause widespread devastation . The Engineering and Environmental Research Institute (EERI) projects that a 6.9-magnitude earthquake in San Diego would result in:
• $38 billion in building and infrastructure damage (about 10% of the region’s total value)
• 120,000 buildings suffering moderate to severe damage
• 8,000 buildings becoming uninhabitable
• 36,000 households displaced
“Older, highly vulnerable structure types will be hardest hit, causing extensive damage, many building losses, and many possible casualties,” according to an EERI study. The report specifically warns that unreinforced masonry (URM) and older non-ductile concrete structures, which have a history of poor seismic performance, remain largely unretrofitted in San Diego . Their collapse would increase casualties, complicate emergency response efforts, and delay recovery .
INSURANCE ALONE ISN’T ENOUGH
Many property owners assume that insurance will protect them in the event of an earthquake—but that’s not always the case .
• Standard commercial property insurance does not cover earthquake damage .
• Earthquake policies can be costly and come with high deductibles—sometimes up to 20% of a building’s value
• Depending on your building’s location, age, and condition, coverage may be limited or difficult to obtain.
SEISMIC RETROFITS: THE SMARTEST INVESTMENT YOU CAN MAKE
Unlike insurance, earthquake retrofitting is a proactive solution. Retrofitting strengthens buildings, making them more resilient to seismic activity . Studies confirm that it is the most cost-effective way to protect both structures and lives.
According to Caltech research:
• Every $1 spent on seismic retrofitting can save property owners up to $7 in future damage costs .
• That estimate doesn’t even include losses from personal belongings, displacement costs, or injuries—factors that would increase the cost-benefit ratio even further.
• Another study found that if a retrofit can reduce a building’s projected annual loss by 50% or more, it is cost-effective when the retrofit cost is 10% or less of the building’s replacement value
COST VS. CONSEQUENCES: A REAL-WORLD EXAMPLE
Here’s a simplified cost-benefit breakdown for a softstory apartment retrofit:
Factor
Apartment Building Value
10-Unit Building Value
Retrofit Cost
Example Value
$250,000 per unit
$2.5 million
$75,000
Percentage of Value 3%
At just 3% of the building’s value, a retrofit is a small price to pay compared to the devastating financial and personal losses that could result from an earthquake
EXPERTS AGREE: RETROFITTING PAYS OFF
It’s not just academic research that highlights the importance of seismic retrofitting. The Federal Emergency Management Agency (FEMA) conducted a two-year study analyzing different retrofit scenarios across multiple building types. Their findings align with other research: retrofitting saves money, saves buildings, and saves lives.
IS YOUR BUILDING AT RISK? TAKE ACTION NOW.
Thousands of structures in San Diego remain vulnerable Is yours one of them? The best way to protect your property and your future is to act now .
Contact Optimum Seismic today for a complimentary building assessment at optimumseismic com or call 833-978-7664 .
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
Abode Communities 213 225 2868
All Points Real Estate . . . . .
Alliance Investment Corp
AltaCima Apartment Homes
American Assets Trust, Inc
I
619 .298 .7724
. 858 .597 .4900
. 858 .565 .8333
858 .350 .2564
Antelope Ridge (Sentinel Real Estate) 951 672 8181
Arbor Terrace | Westlake Housing 619 293 3612
Arbors at California Oaks Apartment Homes 951 461 3264
e are excited to announce the release of new rental forms, including forms needed to comply with the Imperial Beach Just Cause/Tenant Protection Ordinance and the positive rent payment reporting requirements under AB 2747
Vice President Alex Winborn, H.G. Fenton Company
Secretary
Jennifer Ford, Douglas Allred Company
Treasurer Matt Ruane, Liberty Military Housing
Legislative Chair
Lisa Mason, Baldwin & Sons
NEW FORMS INCLUDE Imperial Beach Forms and Rental Agreements
Immediate Past President
MAGAZINE STAFF
22, 2025 . In addition to this form, you will need to supply the tenants with a copy of the City ordinance chapter 9 .90 .
Publisher Apartment News Publications, Inc.
Design & Layout Travis Watson, Production Director
Editorial Review Lindsey Lee, Marketing Manager
ASSOCIATION STAFF
Alan Pentico, CAE, Executive Director apentico@socalrha.org 858.278.8070
Alternatively, if your tenant is on a fixed-term lease or you can’t get the addendum signed by March 22, you can use the Imperial Beach TPO Mandatory Notification Letter. In addition to this letter, you will need to supply the tenants with a copy of the City ordinance chapter 9 .90 .
Olivia Galvez, Director of Business Operations/Operational Advice ogalvez@socalrha.org 858.751.2217
This form is to be used for all new or renewing tenancies in the City of Imperial Beach . It includes updated clauses in compliance with the latest local regulations In addition to this form, you will need to supply the tenants with a copy of the City ordinance chapter 9 .90 .
2025 DIRECTORS
Alicia Banister, e Nash
Blair Madrid, American Assets Trust, Inc.
Daniel Hernandez, Sunrise Management Company, AMO
Usage: Ensure that this form is used for any new tenancies starting on or after March 22, 2025 .
David Antczak, David Antczak Co.
Eric Sutton, Creaser & Warwick, Inc.
• #286 – OPT-IN/OPT-OUT CR
Kim Zebroski, kzebroski@socalrha.org 858.751.2220
This form allows tenants to choose whether they want their on-time rent payments reported to credit bureaus Under California’s AB 2747, landlords of residential properties with more than 15 units must offer tenants the option to have their rent payments reported to major credit bureaus, such as TransUnion, Equifax, and Experian . This form provides a clear and straightforward way for tenants to opt in or out of this service
Lindsey Lee, PCM Digital Marketing, CDMP, Marketing Manager llee@socalrha.org 858.751.2218
Alma Macias, Operational Advisor amacias@socalrha.org 858.278.8070
This addendum is used to notify tenants of specific exemptions under the Imperial Beach Tenant Protection Ordinance (TPO) . This form is required in order for single-family homes or condos to be exempt from the ordinance . Please note: The required language is also in the Imperial Beach Rental Agreement Use the check box for properties exempt from the ordinance .
Dr. Lorri Goldmann, Avenue5 Residential
Mark Feinberg, Heinz & Feinberg
Patrick Kappel, Kappel Realty Group
Robert Shapiro, Onyx Property Management
Usage: As of April 1, 2025, landlords must provide this form to tenants at lease signing and at least once annually . For leases active as of January 1, 2025, landlords must offer this option no later than April 1, 2025 The form should be easy to understand and include clear instructions for submission .
Scott Ledesma, Generation Contracting & Emergency Services, Inc.
HONORARY LIFE ADVISOR
Wesley Harker
Usage: Provide this notification to tenants on month-to-month tenancies .
Alternatively, if your tenant is on a fixed-term lease or you are unable to get your tenant to sign the addendum, you can use the Imperial Beach TPO Exemption Letter
This addendum provides mandatory notifications required by the City of Imperial Beach Tenant Protection Ordinance (TPO)
Southern California Rental Housing Association
Toll Free: 888.762.7313
Fax: 888.871.5229 socalrha.org
Usage: Provide this addendum to all existing month-to-month rental agreements by March
Alternatively, if your tenant is on a fixed-term lease you can use the CR letter to send to your residents
Southern California Rental Housing Association Rental Advisor Magazine is published San Diego Multi-Housing Corporation (SDMHC) a wholly owned subsidiary of
the author's views and do not necessarily represent those of the Southern California Housing Association or SDMHC.
UPDATED RENTAL AGREEMENTS
• All rental agreements have an updated clause 6 . This section of the rental agreement informs tenants about their option to opt in or out of having their on-time rent payments reported to credit bureaus, as mandated by California’s AB 2747 .
All rights reserved. Materials may not be reproduced or translated without prior permission by the publisher. Contact the Southern California Rental Housing Association 858.278.8070 or visit socalrha.org for more information.
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We hope these new forms will help you stay compliant with the latest regulations and provide better service to your tenants If you have any questions or need further assistance, please do not hesitate to contact us .
CONTRIBUTE: Educational articles in Rental Advisor Magazine must be between the 10th of the month before publication. Submit to socalrha@aptnewsinc.com.
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