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How Coffee Amenities Elevate Multifamily Communities by WithMe, Inc. Pg. 44
Earthquake Preparedness in San Diego by Ali Sahabi Pg. 48
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.
OUR VISION
Reenvisioning quality housing for all OUR MISSION
To create a thriving rental housing community through advocacy, education, and collaboration
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
SCRHA is a strong and effective advocate for rental housing providers We fight for favorable policies and laws at all levels of government
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Ensure compliance with our comprehensive library of rental forms notices, contracts, and white papers
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ABuck Buchanan
2025 President Southern California Rental Housing Association
President’s Message: Rely on SCRHA to Navigate Challenges
s we step into March, I am grateful for our members and their commitment to providing quality housing to communities throughout Southern California We all know that being a rental housing provider can be very challenging, and I applaud our members who continue to serve their residents and provide much needed housing for our community
While the housing crisis has long been a top concern of Californians and our elected officials, there is a renewed focus on addressing the accelerated housing shortage and property insurance crisis caused by the recent devastating wildfires. This renewed focus is apparent with proposed legislation in Sacramento and throughout our local communities with the newly passed Tenant Protection Ordinance in Imperial Beach
The legislative session is underway in Sacramento and the deadline to introduce legislation passed was February 21, 2025 At the time of writing this message, we are looking at bills that would ban numerous fees, require notices in other languages, further regulate security deposit returns, ban algorithmic devices, and more SCRHA will continue to update our members on the latest news and share ways that you can take action to help us defend the rental housing industry
Southern California Rental Housing Association remains committed to helping our members navigate these challenging times In addition to our robust advocacy work locally and in Sacramento, SCRHA provides expert guidance and resources to help you understand and comply with regulatory changes
Whether you have questions about what form or notice to use or need updated forms to comply with Tenant Protection Ordinances in the City of San Diego, Chula Vista, or Imperial Beach, SCRHA is your trusted
resource hub Visit the website at www socalrha org to download forms and white papers or call the office at 858 278 8070 to get answers from the SCRHA operational advisors
Additionally, I encourage you to stay engaged with SCRHA by attending events, registering for webinars, or volunteering to serve on a committee Together, we can continue our efforts to create a thriving rental housing community through advocacy, education, and collaboration .
Your involvement and dedication make a difference, and I look forward to working alongside you in the year ahead
AAlan Pentico, CAE
into Success with SCRHA
s we wrap up the first quarter, I’d like to thank you for a strong start to 2025 With the thoughtful guidance of our Board of Directors and our members’ engagement, we’ve continued our robust advocacy during the first legislative session of the year in Sacramento and locally as more municipalities consider passing additional tenant protections .
We also kicked off the year with seven classes covering everything from the new rental criteria law and tenant screening best practices to insurance and time management Additionally, we were proud to debut our Property Management 101 series to support those who are working towards a new role in property management, be it new owners or managers, or credential holders looking to refresh their knowledge and earn five continuing education credits
One of the highlights was our North County Lunch & Learn, which focused on critical legal updates for our industry Thank you again to everyone who attended this sold-out event and our sponsors, Brothers in Arms Security, Belfor Property Restoration, Accurate Termite and Pest Control, Aire-Master of San Diego, Duro-Last Roofing, Four Seasons Tree Care, Qwikkit, and Western Towing It was great to see so many of you connecting, learning, and understanding the changes affecting rental housing providers. If you weren’t able to attend, don’t worry!
We’ll be heading to Palm Springs on March 19 for a Lunch & Learn with guest speakers Cameron Stewart, Crest Insurance Group, and Paul Goodwin, Kimball, Tirey & St John LLP This session will deliver valuable insights on property insurance for
housing providers and an engaging discussion on legal updates Don’t miss the opportunity to connect with your rental housing colleagues in the region
The excitement doesn’t stop there! We are also gearing up for our highly anticipated Rental Housing Conference & EXPO on May 8 . We’ll be rocking the rental industry with four education sessions led by industry experts to help you stay current on the latest industry insights and best practices Whether you’re looking to expand your expertise or stay ahead of industry trends, come rock out with us Register online at www socalrha .org to secure your ticket .
And for all our maintenance professionals, prepare for some serious competition Thanks to HD Supply, Maintenance Mania returns to the Rental Housing Conference & EXPO Sign up today to showcase your skills while competing for prizes This highenergy event is always a crowd favorite, so whether you’re competing or cheering on your colleagues, you don’t want to miss out
Your enthusiasm and participation fuel our success, and we are looking forward to carrying this momentum forward . See you soon!
CE LE B R ATIN
CE LE B R ATIN G
Entrada | Greystar
El Pedregal Cirrus
Limoncello
Hitching Post Motels, Inc.
Whalen Properties
Jack Zolezzi Trust
GTF Properties
Donna Webber Company
John Belanich Company
Yvonne Coover-Stone Company
Wilma H. Healey Company
T1 PropertiesE
Legar Management
M. C. Contracting Service
Josephine Cree Company
RJW Properties, Inc.
Laura Sperry Company
Wakeland Housing & Development
Creaser & Warwick, Inc.
Sally Nesbitt & Cathy McLean
DNC Limited Partnership
Darrell E Holt, CPA
The Kevane Company, Inc.
ATI Restoration, LLC
David Olson Company
Muraoka Enterprises Inc.
Elinor van den Akker Company
Park Place Garden Apartments
RG Investment Real Estate Services Inc.
People Helping Others Prop. Mgmt.
Law Offices of Andrew C. Laubach
Caesar Oriol Company
Peter Mallen Company
Fred and Shirley Salzer
Torrey Pines Property Management
Fleetwood Properties
Walz Properties| Fortuna Investment Group
Mark Marshall Company
Elizabeth Dammassa-Uglik Company
Rolf Steeve Company
Johnston Property Management, Inc
Kenneth Rundlett Company
Dan Kaufman
Laurence and Carolyn Kaiser
Errol Tonsky Company
Olive Tree Apartments
Gregory Robinson Company
REC Properties| Peasquitos Point Apts.
Dennis & Tina Daneri
Mira Bella Apartments | Simpson Property Group
Araz Yacoubian Company
Sherry Bird Company
Richard Hancock Company
Linda Steenson
Sierra Mar Properties LLC - Paul Hasley
Marina Bush
Mary Ann Tarantino Company
Terry Moore, CCIM, Inc.
Jerry Conway Company
IHA Partners Inc.
Jeffrey Malik Company
Ludecke Investment Properties, LLC Cheryl Harper Company Rehmann Realty Group
G. Beit-Ishoo / SeaDate
George and Celida Haddad
Al Smithson Company
Longley Family Trust - Nancy Longley Trustee
Waltwood Properties
Marilynn Nemeroff Company
Nancy Mullins Company
NLJ, LLC
Brothers II
Sciuto Properties
Tom Brady Company
Axiom Real Estate
Barry Treahy Company
Dennis and Marian Pierce
Jesus and Yolanda Arroyo
Betty Bark Company
David M. Pierce
Tamra Fuller Fountas
Buchanan Property Management Corp.
Brian Steer Company
Eagle Property Management
Arbors at California Oaks Apartment Homes
Keeping Tenants Happy: The Secret to Property Management Success
By Kari Negri, Chief Executive Officer, SKY Property Management
“Hi, SKY! I just started my own property management company, but I’m overwhelmed by all the calls and inquiries coming in. Help!”
Congratulations on starting your property management business!
As you know, providing top-notch customer service is essential for long-term success It impacts everything—from tenant retention to your reputation, and how smoothly operations run day-to-day
When tenants are happy, they’re more likely to renew their leases, meaning fewer vacancies and lower turnover costs Plus, satisfied tenants are more likely to recommend your properties, giving your reputation a boost . Strong service also keeps operations running smoothly, freeing up time for maintenance and other key tasks Timely rent payments, fewer late fees, and avoiding legal issues all stem from providing excellent service And when issues arise, good communication helps resolve them quickly, keeping relationships with
tenants positive and lasting
So, the big question: How do you provide exceptional customer service?
Here are some tips to get you started:
HIRE THE RIGHT STAFF
It all begins with the right team Look for staff who are friendly, professional, and organized A receptionist, for instance, should be approachable (her voice should convey this immediately), efficient, able to handle multiple tasks without breaking a sweat They should know their way around the property management software that you use, handle phone calls well, and be comfortable interacting with tenants, vendors, and property owners The right staff sets the tone for the entire tenant experience from day one If you need help, consider hiring Enzo Staffing https:// www enzostaff la/ as I found my current receptionist through them for $12 an hour and they do a lot more than answer the phone! Please ask me how at Kari@ SKYprop LA
Once you’ve got a solid person in place and can be part of your team, make sure they respond promptly to tenant inquiries Keep everyone in the loop about important updates, like maintenance schedules or policy changes Fast, clear communication builds trust and makes tenants feel heard and well taken care of
OFFER PERSONALIZED SERVICE IF YOU CAN
Encourage your team to really pay attention to each tenant’s needs Whether it’s accommodating special requests or responding quickly for busy professionals, making tenants feel like they’re getting personalized attention will help build loyalty Don’t forget the little touches, like wishing them happy birthday or asking how their trip went or welcome packages for new tenants—they can make a huge difference in making them feel at home This may require notes in your software if your company is large Maybe not so many notes if your tenant is a pain and calls a lot
STAY ON TOP OF MAINTENANCE – BE PROACTIVE AND COMMUNICATE
Tenants are going to report problems but at least be proactive in addressing issues and taking good notes and pictures (careful here to be specific to the problem) during the 6-month walk through/inspection! Address repair requests quickly and schedule regular property inspections as mentioned above to catch small issues before they become bigger, costlier ones . This shows tenants that you care about their comfort and safety This is where you can really shine, follow up and ask how the repair went This is priceless information for your whole team
EMBRACE TECHNOLOGY
Use tech to make things easier for both your team and your tenants Offer online portals for rent payments, maintenance requests, and access to documents . Automated reminders for things like rent due dates or lease renewals can help tenants stay on top of things without the hassle, and it cuts down on manual work for your team
MAINTAIN CONSISTENT TEAM COMMUNICATION
Good internal communication keeps your team aligned and ensures consistency for tenants You know how frustrating it is when you’ve spoken to one staff member about something, only to find the next person has no clue? Regular team meetings can help keep everyone on the same page Using shared tools or platforms to track requests, maintenance, and tenant interactions also makes it easier for anyone on your team to provide the right info when needed A good point person for tenant communication can be very helpful but also understand that it can sometimes be overwhelming as well so be mindful Tenants can and will be demanding
BUILD A STRONG COMMUNITY
Create a sense of community by hosting social events, like BBQs, holiday parties, or even local volunteer opportunities like a food drive or animal rescue events Getting tenants together helps them bond and feel more connected to the property Also, ask for feedback regularly, whether through surveys or casual conversations, to show that you care about their experience and are always looking to improve
ONGOING TRAINING AND PROFESSIONALISM
Invest in continuous training for your team on customer service best practices, property management tools, and handling tricky situations Make sure that they regularly complete mandatory training, like Fair Housing, to stay compliant and provide an equitable service for all tenants Also, make sure they always look and act the part—being professional and approachable helps build trust and makes tenants feel comfortable and respected With all the changing laws, it is imperative that you stay on top of the ever-changing laws
By focusing on these areas, you can manage those calls and inquiries more effectively, while also creating a positive and memorable experience for your tenants You’ll be in a better position to build a successful, long-term property management business!
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
in the Groove" with a day filled with
connection, and education on Thursday, May 8 from 8:30 AM to 3:00 PM.
San Diego Must Act Locally To Expand Rental Assistance
by Alan Pentico, CAE, Executive Director of the Southern California Rental Housing Association
San Diego’s housing crisis continues to dominate the headlines Yet one of the most effective tools for keeping people housed – rental assistance – is not getting the attention it deserves
Too often, policy conversations about affordability center on imposing burdens on landlords instead of recognizing that housing is a shared social responsibility If our leaders are serious about addressing housing affordability, expanding rental assistance should be top of mind California already has rent control in place, limiting how much rent can be raised year-over-year But some local cities such as Imperial Beach continue to impose more rules, red tape and cost on landlords – as if that
will solve the housing crisis
These misguided efforts force private property owners – many small landlords – to absorb the costs of a broken system
There’s a better way Direct rental assistance is a fair and transparent method to help people struggling with housing prices Programs like Section 8 housing vouchers are already an essential tool, but there is a waiting list to access the benefits – and many people don’t meet the criteria
That’s why some cities recognize the local needs and step up with their own rental assistance programs
Welcome New Members
PROPERTY MANAGERS
Melrose Canyon | Sunrise
Uplift Property Management
Village Park Apts
Woodlake Apts | Gaines Investment Trust
INDEPENDENT OWNERS
Jim Sherman Company
One Creative Partners LLC
Tom McCormack Company
VRE Multifamily
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Wealthy Habits to Financial Freedom
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Andre Handyman
California Safety Agency
DrBalcony
Gutter Works Inc
Lifetime Home Remodeling
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Resident IQ
Rose Paving
In San Diego, the City’s Housing Commission operates the Housing Instability Prevention Program (HIPP) It helps pay rent for people in San Diego with low income, experiencing a housing crisis and at risk of homelessness But the current number of people the program serves – up to 300 – is woefully small .
Separately, San Diego County’s pilot program offering $500 monthly to older adults at risk of homelessness is another shining example
This modest assistance can keep a family housed That’s a relief for the tenant and the landlord, who can avoid going through the costly and time-consuming court eviction process as currently prescribed
The City’s HIPP program and the County’s elder rental subsidy are ideal candidates for expansion . Leaders should also help tenants move when properties must be removed from the market for renovations and repairs – known as a “no-fault” eviction . It’s not fair or practical to place that burden on landlords
We know that rental assistance works to keep people housed During the pandemic, California’s COVID19 Rent Relief program was administered locally –providing a proof of concept for meaningful local rental assistance Statewide, it provided nearly $5 71 billion and kept a half-million Californian households in stable housing .
Research indicates that recipients of rental assistance experience improved housing stability, quality, autonomy, and affordability compared to those not receiving assistance
A recent report highlighting the potential loss of funding for 18 critical homelessness programs in San Diego County should serve as a wake-up call Federal and state grants have supported programs like hotel vouchers and safe parking lots – but their funding is precarious
San Diego’s elected leaders are rightly exploring multiple solutions to our housing crisis, including the preservation of deed-restricted affordable housing and the conversion of office space to affordable housing
Each of these efforts is valuable, but none addresses the immediate reality that thousands of San Diegans struggle to find and afford housing right now
One of the most important – but often overlooked –benefits of rental assistance is that it promotes equity It allows low-income families, seniors, and workers to live in dignity alongside those of greater means, creating stronger, more inclusive communities
How to fund it? In addition to seeking federal and state funding, the City should allocate a portion of housing impact fees, redevelopment funds, or general revenue to a rental assistance fund
Rental assistance must be at the center of San Diego’s housing policy, not an afterthought
Alan Pentico, CAE, has been the Executive Director of the Southern California Rental Housing Association since 2011. With a strong background in public policy and advocacy, he works to support rental housing providers through education, legislative engagement, and industry resources. He holds a political science degree from the University of San Diego and is a Certified Association Executive (CAE). With years of experience in local government affairs, he plays a key role in shaping housing policies that impact the rental industry. Alan is dedicated to fostering a fair and sustainable rental housing market for both property owners and residents.
THE UNSUSTAINABLE SQUEEZE: RECLAIMING CONTROL OF UTILITY COSTS IN AN ERA OF RISING PRICES
Contributed by the Livable Content Team
For many Housing Providers, offering “utilities included” rent packages was once a competitive advantage, attracting Residents with the allure of predictable monthly costs However, in today’s economic climate, this seemingly convenient practice can quickly devolve into a financial tightrope walk
Nationwide, utility bills are soaring at an alarming rate, outpacing the ability of Housing Providers to adjust rents in accordance with these rising costs . That includes water, sewer and trash bills, especially
in places affected by drought and aging water system infrastructure This discrepancy is particularly acute in jurisdictions with rent control measures, leaving Housing Providers caught in a vice of escalating expenses and limited revenue streams But there is a light at the end of that particular tunnel
The current scenario presents a significant threat to the financial health of rental property owners Consider the following:
• Utility Cost Outpacing Rent Increases: According to the U S . Bureau of Labor Statistics, the Consumer Price Index for
Electricity rose by 11 9% in 2023, while natural gas prices saw an even sharper 13 . 1% increase Water prices have gone up even more in some communities Conversely, rent increases under rent control regulations often cap annual adjustments at a meager 2-3% This stark disparity creates a scenario where Housing Providers incur an ever-growing financial burden to subsidize Resident utility usage .
• Erosion of Profitability: When utility costs rise faster than rent, it directly eats into profits, jeopardizing the viability of operating rental properties . Housing Providers face a difficult choice: either absorb the increasing costs and suffer reduced profitability, or attempt to raise rents beyond allowable limits and risk Resident turnover and legal repercussions
• Inequity and Inefficiency: Including utilities in rent often creates an unfair cost distribution . Residents with more energyintensive habits effectively subsidize those who are more conservation-minded This lack of individual accountability discourages efficient resource consumption and fosters inequities within the rental community .
To navigate this increasingly challenging landscape, Housing Providers must consider alternative approaches to utility cost management . Two strategies have emerged as effective solutions: Ratio Utility Billing (RUBS) and submetering
RATIO UTILITY BILLING (RUBS)
RUBS allocates utility costs to individual units based on a pre-determined formula that considers objective factors like unit size, occupancy level, and historical usage patterns It’s especially effective for managing the costs of rising water, sewer and trash bills
PROS:
Cost Recovery: Allows for more equitable and accurate cost recovery compared to flat-rate utility inclusion
Incentivizes Conservation: Residents become more mindful of their usage knowing it directly impacts their bill
Fairness: Addresses the inequity of subsidizing high-usage Residents with lower consumption peers
CONS:
Complexity : Implementing and maintaining a fair RUBS system requires careful planning and adherence to local regulations Using the right RUBS billing platform is essential to making this approach work It’s also critical to consult with your attorney as regulations and local ordinances can change quickly
Potential Disputes : Some Residents may disagree with the allocated costs, leading to potential disputes and administrative burdens A transparent system with a Resident Portal that allows them to see exactly what they’re paying and why can head off those disputes!
SUBMETERING
This approach involves installing individual meters in each rental unit, providing precise real-time data on individual utility consumption Residents are then billed directly based on their actual usage .
PROS:
Precise Cost Recovery : Offers the most accurate and direct cost recovery mechanism, eliminating any discrepancy between Housing Provider cost and Resident payment
Strong Incentive for Conservation : Residents
have the greatest incentive to conserve when directly responsible for their bills
Transparency and Fairness : Provides total transparency in individual usage and cost allocation, reducing potential disputes
CONS:
High Upfront Costs : Installing submeters in existing buildings can be a significant upfront investment
Meter Reading and Billing: Requires additional operational and administrative responsibilities for meter reading and billing
Potential Resident Pushback: Some Residents may resist submetering due to concerns about increased scrutiny and potential for higher bills
Ultimately, the ideal solution for recovering utility costs will depend on individual circumstances, property type, and local regulations Both RUBS and submetering offer distinct advantages and disadvantages, and thorough consideration of each option is crucial
It is vital to remember that proactively addressing the issue of rising utility costs is essential for protecting the financial sustainability of rental properties By embracing alternative billing models and promoting responsible resource consumption, Housing Providers can navigate the current economic climate while building a more fair and efficient rental ecosystem for themselves and their Residents
The choice is clear: clinging to the unsustainable “utilities included” model is akin to standing on a sinking ship By adapting and implementing effective cost-recovery strategies, Housing Providers can chart a new course towards financial stability and create a renting environment that fosters responsible resource management for all
To help Housing Providers chart that new course, Livable has introduced Livable Pro, a DIY service that lets independent rental owners manage their properties, units, team members, Residents and billing when it’s convenient! No need to set a meeting with a Livable expert to start recovering your masterbilled utilities, with no commitment and no unit minimums, ever
To learn more, visit livable.com/apn.
HOW TO USE DSTS AND 1031 EXCHANGES FOR DIVERSIFICATION
BY DWIGHT KAY Kay Properties and Investments, LLC
This hypothetical case study shows how an investor used Delaware statutory trusts (DSTs) to build a diversified 1031 DST portfolio and avoid a $2 million tax bill.
Kay Properties & Investments has helped thousands of investors use Delaware statutory trusts (DSTs) to complete their 1031 exchanges . However, we recently worked with a client who discovered how DSTs can be incredibly valuable when it comes to building a diversified portfolio
WHAT ARE DSTS?
For those readers who are not familiar with DSTs: They are a legal real estate ownership structure that allows multiple investors to each hold an undivided
beneficial interest in the trust The term “beneficial interest” means that investors hold a percentage of the ownership, and no single owner can claim exclusive ownership over any specific aspect of the real estate . The DST sponsor company is responsible for handling all of the maintenance, distributions and other active management responsibilities . DSTs are particularly relevant to investors because the IRS has blessed them to qualify as “like-kind” investment property for the purposes of a 1031 exchange
ENTER SOUTHERN CALIFORNIA REAL ESTATE INVESTOR TOM
So now, let me introduce you to Tom, a seasoned real estate investor who grew tired of active property management and the headaches of increasing rent-
Please turn to page 24
Dwight Kay is the Founder and CEO of Kay Properties and Investments, LLC Dwight is a published author with multiple published white papers and articles on 1031 exchanges, Delaware Statutory Trust (DST) properties and real estate securities He has been interviewed on local and nationally syndicated radio stations on the matters of 1031 exchanges and replacement properties . He also is the author of the published book “Delaware Statutory Trust (DST) Properties: An Introduction to DST Properties for 1031 Exchange Investors ” Dwight began his career in commercial real estate working for a national commercial real estate brokerage firm focusing on multifamily and commercial real estate
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 initiatives like pronoun preference, accommodations for are differently-abled, ensure fair and equal an Offer, and They NOW procedures make establish a hiring and follow the correct when extending an offer. no part of that. They
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.
*Statistics pulled from Yello
control regulations For several decades, Tom built a portfolio of multifamily apartment buildings in Southern California Over the years, he painstakingly managed the properties himself, growing the portfolio to an estimated $5 million estate
However, as Tom approached retirement, he realized the hands-on management of dealing with tenants, toilets and trash, along with the increasing local rentcontrol regulations, was just too much for him
As a result, Tom decided to relinquish his portfolio, which he sold for $5 million The excitement surrounding the sale of his portfolio that he had worked so hard to build over many years quickly faded when his CPA calculated that the capital gains tax and depreciation recapture taxes would eliminate nearly 40% of the portfolio’s value Surrendering this money to the government would significantly impact Tom’s retirement plans
THE CHALLENGE: FIND A SUITABLE REPLACEMENT PROPERTY FOR A 1031 EXCHANGE
THE SOLUTION: TOM’S CPA RECOMMENDED HE CONSIDER DSTS
After telling his CPA he was not interested in a NNN property or other apartments, Tom’s CPA recommended that he look into DSTs for his 1031 exchange .
After presenting a thorough overview of the DST structure — including both benefits and risks — and conducting a comprehensive review of Tom’s needs, we were able to help him curate a tailored real estate portfolio solution to potentially meet his goals of passive income, diversification and risk mitigation
This plan involved him diversifying his $5 million of equity into multiple DST properties Although diversification does not guarantee profits or protection against losses, Tom felt confident because his $5 million was spread out among multiple properties, asset classes, locations and tenants By doing this, Tom achieved a level of diversification that significantly reduced reliance on any single property or tenant Additionally, the portfolio was entirely debtfree, eliminating the risk of lender foreclosure or cash flow sweeps
● A multifamily DST investment. This debtfree 159-unit apartment community is in the Dallas market and provides the opportunity for a value-add investment strategy with the potential to increase the net operating income (NOI) of the property along with monthly distributions . This investment is sometimes called a “buoy” investment because it can adjust with time and potentially increase value as NOI is grown through a value-add strategy
● A multitenant retail DST investment. This debt-free multi-tenant retail property is located in Birmingham, Ala , and has a occupancy rate of 96% including national tenants The property was acquired at below replacement cost at an attractive basis In addition, the property sees more than 3 4 million annual visits from shoppers
Tom quickly recognized he needed to complete a 1031 exchange to help defer taxes and find a replacement property that would require less handson management
Tom at first considered a triple net lease, or NNN, property in which the tenant agrees to pay the property expenses as an option for his 1031 exchange However, Tom quickly realized he did not want to put such a large amount of capital into a single NNN property He always remembered his grandmother using the expression “never keep all your eggs in one basket ” Placing most of his net worth into a single NNN property would put Tom in a precarious position, especially if the tenant closed the location or, even worse, went bankrupt, as the property’s value would be negatively impacted and his monthly rental payments would cease He needed a strategy that would spread risk across multiple investments, in multiple locations, with multiple tenants and multiple asset classes
Tom also knew he didn’t want to purchase more apartment buildings He would then have to continue to manage them as well as be subject to rent-control restrictions He thought about buying apartments out of state but then quickly realized that managing a management company would likely be worse than just doing the work himself
The portfolio of DST investments for Tom’s 1031 exchange included:
● Essential net lease portfolio DST. This debtfree investment is a portfolio of single tenant net lease essential tenants in one DST that is located across multiple geographic locations The entire portfolio is 100% leased with high-quality tenants with corporatebacked net leases This type of DST investment is sometimes described as an
“anchor” investment, because it is designed to potentially deliver predictable income throughout the hold period
● Creative infill industrial DST. This debt-free property is a multitenant industrial building with long-term leases in place The asset was purchased below replacement cost, and is in the employment, cultural, educational and business center of Athens, Ga
TOM’S RESULTS
Tom was able to successfully leverage the DST structure to achieve his investment goals of a 1031 exchange into passive management, portfolio diversification and the possibility for regular monthly cash flow distributions
Thanks to the DST and 1031 exchange solution, Tom was able to transition from intensive active property management into truly passive investing . The predictable income stream potential from his diversified DST portfolio supports his retirement lifestyle while freeing him from the stress of handson management and equity squeezing rent control regulations . (Note: Diversification does not guarantee profits or protection from losses )
Tom now enjoys the flexibility and freedom he worked so hard to achieve, knowing that his investment portfolio is designed to align with his financial goals and risk tolerance through the 1031 exchange into DST investments
If you would like to speak with one of the thousands of clients like Tom who have chosen to have Kay Properties help them with their 1031 exchange and DST investments, please just call us at (855) 8994597 or visit www kpi1031 .com .
This material is not tax or legal advice. Please consult your CPA/attorney for guidance. Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee returns and does not protect against loss. Potential cash flow, potential returns and potential appreciation are not guaranteed. There is a risk of loss of the entire investment principal. Please read the Private Placement Memorandum (PPM) for the offerings business plan and risk factors before investing. Securities offered through FNEX Capital LLC member FINRA, SIPC.
State Legislative Update
As of February 2025, California's rental housing landscape is influenced by several key factors:
IMPACT OF RECENT WILDFIRES
The devastating wildfires in Southern California have significantly affected the housing market. Over 16,000 structures, including homes, were destroyed, leading to a severe housing shortage This scarcity has driven up rental prices and increased competition for available units Additionally, the California FAIR Plan, the insurer of last resort, is under strain and may face difficulties covering claims, potentially leading to higher insurance costs for homeowners and renters In fact, in the last six years, over 60,000 single family houses have been lost to fire. If the trend continues, it will be difficult for California to build its way out of the housing crisis
INSURANCE RATE INCREASES
In response to substantial payouts from recent wildfires, State Farm, California's largest private insurer, has requested emergency rate hikes . Proposed increases include up to 22% for non-tenant homeowners, 15% for renters and condominium owners, and up to 38% for rental dwellings. These hikes aim to offset the financial impact of the wildfires but may result in higher living costs for residents Combine that with the impact the recent fires will have on the California FAIR Plan, Californians will find it increasingly more difficult (and expensive) to insure their homes and rental properties Expect significant legislation on this issue during the 2025 legislative year
NEW LEGISLATION AFFECTING RENTERS AND LANDLORDS
Several new laws have been enacted to address rental housing issues:
• Positive Rental Payment Reporting: Starting April 1, 2025, landlords must offer tenants the option to have their positive rental payment information reported to at least one consumer reporting agency Landlords can charge a fee not exceeding $10 per month to cover the reporting costs Limited exemptions apply
• Security Deposit Documentation: Effective April 1, 2025, landlords are required to take and share photographs of rental units at three key times: before the tenant moves in, after the tenant moves out but before repairs or cleaning begin, and after any repairs or cleaning have been completed
By Pat Moran, Aaron Read & Associates
These photos, along with an itemized list of any deductions, must be provided to the tenant when returning their security deposit
• Rent Increase Caps for Affordable Housing: Assembly Bill 846 establishes caps on rental rate increases for newly funded affordable housing units subsidized through the California Low Income Housing Tax Credit . Landlords of these units can only increase rent by 5% plus the change in the consumer price index or 10%, whichever is lower A few key legislative bills have been introduced so far, including:
• AB 6 (Ward) - Residential developments: building standards: review - AB 6 would require necessary state entities to study and recommend to the California Building Standards Commission simplified standards to allow smaller developments between three and 10 units to be built under the requirements of the California Residential Code, rather than the California Building Code AB 6 also recognizes the need to reduce construction cost pressures by directing California Housing and Community Development to identify standards contributing to those increased costs and consider those pressures in the future, with a goal of reducing costs by 30% Currently, the California Residential Code (CRC) governs the construction of one- and two-family dwellings and townhouses of three stories or less, while the California Building Code (CBC) establishes requirements for all other buildings, including medium and highdensity housing . However, certain reasonable requirements in the CBC for larger buildings can make development prohibitively complicated or render the economics infeasible for smaller ones
As a result, several jurisdictions across the United States have begun to allow smaller, missing-middle housing types, including triplexes and fourplexes, to be built under the requirements of the CRC SCRHA Support
• AB 11 (Lee) – Social Housing -This bill would enact the Social Housing Act and would create the California Housing Authority as an independent state body, the mission of which would be to ensure that social housing developments that are produced and acquired align with the goals of eliminating the gap between housing production and regional housing needs assessment targets and preserving affordable housing. SCRHA Opposed
CALENDAR Register at
Pre-registration
Uis the defining technology of our time . Now, it’s made its way into the realm of document authentication and fraud detection in property management As part of an effort to bolster our screening solutions, Yardi partnered with Snappt to introduce our new ScreeningWorks Pro Document Authentication solution for Yardi Breeze and Yardi Breeze Premier clients Snappt is currently the only provider utilizing AI to uncover applicant fraud . They are also able to detect a sophisticated new type of fraud known as inception fraud
Kyle Nelson, vice president of corporate strategy at Snappt, explained to us why his company’s AI-driven document authentication technology matters when it comes to fraud detection in property management
INCEPTION FRAUD
Snappt specializes in detecting inception fraud What is that and why is it so hard to detect?
Inception fraud is a scheme in which individuals apply for a rental home using a real pay stub from a real company, even though they are not actually employed by that company They pay an Inception Fraud
Company (IFC) to use its legitimate LLC to generate a real pay stub This stub has a matching bank statement Because the pay stubs are produced by a verifiable company, traditional fraud detection methods typically fail to flag them, marking the documents as “clean” or “unedited ”’
Snappt’s advanced technology is uniquely capable of detecting and stopping this complex form of fraud. In doing so, Snappt offers property managers an additional layer of protection against increasingly deceptive tactics
COMPLEMENTARY FRAUD DETECTION
SOFTWARE
How does document authentication fit with other means of screening and fraud detection?
Unlike other screening solutions, such as standalone bank linking or employment verification, Snappt closes critical gaps to ensure a more robust screening process. For example, ID verification is excellent for confirming that the person applying is who they claim to be However, it doesn’t guarantee their honesty regarding the authenticity of their supporting income documents. While ID verification works well alongside document fraud detection, it should not be used as a replacement for it
ABOUT THE CONFERENCE
FHCRC hosts the Annual nland Empire Housing Conference in April n honor of Nat onal Fair Housing Month S nce 2014 this flagship event gathers over 300 influential leaders, inc uding government officials, nonprof t organizations policymakers, developers enders 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
DISCUSSION & INSIGHT
WHAT SNAPPT DOES DIFFERENTLY
What makes Snappt unique?
Snappt stands out with its full-time fraud forensics team and its advanced algorithm, which has reviewed over 10 million documents — more than any other provider. This ensures you can confidently keep fraudulent applicants out of your property while seamlessly enhancing the performance of Yardi Breeze’s other screening solutions
ONE THING PEOPLE MISS
What’s a common misunderstanding about AI-driven fraud detection in the rental industry?
Despite the rise in reported fraud across the industry, only 50% of property managers use a fraud detection solution Many believe fraud isn’t happening at their properties simply because they can’t see it Still, but that doesn’t mean it isn’t there Fraud techniques like text injection or document edits are designed to be virtually undetectable to the naked eye Leasing teams are not equipped to spot these issues on their own Not only that, they should never be expected to be forensic experts .
Validating that documents were downloaded directly from a major financial institution is key to confirming their authenticity The embedded data provides critical insights into their reliability Unfortunately, without the right tools, these manipulations often go unnoticed
DO FRAUDSTERS USE AI TOO?
As AI becomes a crucial tool to combat fraud, is it also used by those committing fraud?
As with any powerful technology, AI is a doubleedged sword While AI is becoming instrumental in combating fraud by identifying patterns, detecting anomalies and preventing scams, it is also being exploited by those committing fraud Fraudsters can
use AI to create hyper-realistic fake documents or even generate synthetic identities
However, with continuous advancements in AI-driven fraud detection, property managers can leverage screening tools with built-in AI to effectively identify and neutralize these emerging threats, ensuring robust protection against misuse
WHERE PROPERTY MANAGERS SHOULD FOCUS
What type of fraud is seen to be the most worrisome for property managers?
With nationwide fraud rates for income documents averaging 6-8%, fraudulent income documentation used during the application process poses a significant threat to property managers This type of document fraud includes the manipulation or creation of falsified pay stubs, bank statements or other income-related documents to deceive property managers
Detecting and preventing this widespread issue is critical for maintaining the integrity of leasing decisions and protecting properties from potential losses
RETROACTIVE FRAUD DETECTION
Is it legal to run documents through fraud detection software retroactively after a lease has been signed?
We recommend using screening solutions during the application process or at the time of renewal for existing residents The legality of using screening tools outside the application cycle depends on your privacy policy . It also depends on the expectations set with your residents Typically, all screening measures are conducted during the application process and prior to lease execution, ensuring compliance and alignment with standard practices
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
M e m o r y M a s h U
Max Glassburg is a senior marketing writer at Yardi He is usually found writing for Yardi Breeze and especially enjoys connecting with clients and sharing their successes with the real estate community In his spare time, he is probably working it on the guitar Yardi Breeze is property management software designed for you Our refreshingly simple platform puts you in charge of marketing and managing your entire portfolio, with support for residential, commercial, affordable, self storage, HOA/condo and manufactured housing properties Rest easy knowing your reports are accurate with Yardi’s trusted, built-in accounting system to track your revenue and expenses And since Breeze is in the cloud, you can work from anywhere and get fantastic support when you need it
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 MAY 8 | 1 PM - 3
The Clear Cooperation Controversy: What It Means for Sellers
By Mercedes Shaffer, Realtor
You’ve probably heard of pocket listings or off-market listings. You may have even bought or sold property this way . A significant percentage of investment real estate transactions never “go to market .” But what’s behind this, and how does it work?
THE CLEAR COOPERATION POLICY: RESTRICTIONS AND FINES
Due to the Clear Cooperation Policy, real estate agents can promote off-market listings to their private networks of buyers or investors through one-to-one communication, like emails and phone calls However, they are prohibited from advertising these listings on public platforms such as websites, Instagram, Facebook, YouTube, or even private platforms where the listing could reach a select broader audience en masse
This restriction is a hotly debated topic in the real estate industry, with many agents advocating for policy changes to better accommodate sellers who value discretion Agents who are caught violating the Clear Cooperation Policy in California can face fines of up to $5,000 per infraction, creating a significant deterrent for those who might otherwise market offmarket properties more broadly
DISCRETION IN MARKETING
Various platforms on the internet allow agents to build private online networks where pocket listings can be shared with a carefully vetted audience . For luxury agents, this is especially relevant when representing high-profile clients or celebrities who prefer their homes to remain off platforms like Zillow or Redfin, avoiding public exposure
crucial when they want to keep their tenants unaware of the sale If tenants learn a property is for sale, it can create unnecessary anxiety, potentially resulting in higher tenant turnover or reluctance to renew leases This uncertainty can impact rental income and, in turn, the perceived value of the property to potential buyers .
A DIVIDED INDUSTRY
The Clear Cooperation Policy, implemented by the National Association of Realtors (NAR), requires agents to list a property on the Multiple Listing Service (MLS) to market it broadly, ensuring all buyers have equal access Proponents of the policy argue it levels the playing field, but critics say the policy limits agents’ ability to market these properties in a targeted and private way, which can slow the sales process and reduce the pool of potential buyers .
Luxury real estate is getting a lot of attention in mainstream media due to celebrity agents being very vocal on the topic Jason Oppenheim, President of The Oppenheim Group and featured on Netflix’s Selling Sunset and Selling the OC, has said, “The Clear Cooperation Policy creates unnecessary hurdles for sellers who prioritize privacy ” Similarly,
Mauricio Umansky, founder of The Agency and star of Netflix’s Buying Beverly Hills, has expressed concerns, explaining how the policy prevents agents from effectively serving clients in markets where confidentiality is critical. Both highlight how the policy impacts the luxury real estate market, where off-market, or “pocket,” listings are a common and valuable strategy
BEYOND THE LUXURY MARKET
While much of the debate centers on luxury homes, the Clear Cooperation Policy also affects sellers of investment properties, like apartment buildings These sellers often prefer to avoid alarming tenants or alerting competitors, making discreet marketing essential
REAL
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
Mercedes Shaffer is a multifamily real estate agent with
Broker,
This Probably Never Happened to You, But...
By C. Finley Beven
The tenants from #3 called Fires in the Altadena foothills had been raging for several days but were settling down, and now under modest control These particular tenants were not in the actual fire zone, but were down-wind There was a smell of soot and ash in their unit and their utilities had been shut off for more than a day
The purpose of their call was clear … they were asking for the owners to pay to have their unit, their furniture, and all of their clothing professionally cleaned, and they were asking for a rent credit for the two days they were without power
Now this all comes down to what a particular owner chooses to do, as this was surely a humanitarian crisis, with thousands of homes and businesses reduced to their concrete slab foundations, tragic loss of life, and the sad loss of personal possessions, now just memories
What these tenants were addressing did not quite rise to that level Again, any owner could choose to do whatever he or she believes to be “the right thing to do”, but in our situation, I did remind these tenants of Paragraph No 6 in their rental agreement:
6. Lessee agrees to obtain and carry “Renters Insurance”, to insure personal possessions and to hold Lessor and owner harmless for injury or property loss or damage caused by other tenants or by unforeseen causes such as (but not limited to) burglary, fire, flood, earthquake, or water from defective roofs, pipes, plumbing, or the like. The “Renters Insurance” must also cover “loss of use” if the property or unit becomes uninhabitable
because of unforeseen causes such as (but not limited to) burglary, fire, flood, earthquake, or water from defective roofs, pipes, plumbing, or the like, or because of reasonably required repairs within the property or unit.
Again, each of our owners has the option to use, or not use Paragraph No 6, as they see fit It was written by us to protect both the owners and the tenants For example, some owners have offered to cover the “deductible” if their tenants submit a claim to their insurance carrier As too many owners and tenants are finding out, you don’t need insurance until you do
As owners, we should not simply ignore such requests, as we are required to give our tenants “habitable” living spaces We must do what is necessary to ensure that the air within our units is at least as “clean” as what is outside Any such requests should be discussed with our attorneys and insurance carriers Trust their advice
Please keep in mind that under current California law, if a tenant fails to get or maintain the renters insurance, this may not be grounds for an evictionrelated complaint against a tenant Courts may not view this as a “substantial breach”, enough to warrant an eviction Check with your attorney for confirmation on this This approach has worked well for us
Dear Readers: This article is the 253rd in a series based on the lessons we have learned the hard way. The contents of these articles are merely opinions of the writer. They are not intended as specific legal advice and should not be relied upon for that purpose. Our practice is in constant refinement as we adjust the way we operate to an everchanging market. I appreciate your questions, comments, suggestions, and solutions.
C. Finley Beven has been involved in real estate, property maintenance and property management since 1975. He is a Certified Property Manager (CPM), Institute of real estate Management since 1987. He is also a Certified Community Association Manager (CCAM) and is a member of the California Association of Community Managers. He has a brokers License #00696626 in the State of California. He has a BA, USC; JD, Southwestern University Beven & Brock Property Management Co., Inc. 99 S. Lake Avenue, Pasadena. (626) 243-4145 Fin.Beven@BevenandBrock.com - www.BevenandBrock.com
SCRHA Lunch & Learn
SCRHA was excited to kick off the 2025 Lunch and Learn Series on February 13th at Shadowridge Golf Club in Vista, California Todd Brisco with Todd A . Brisco Associates, APC, shared an important legal update with our members
The event sold out, and we’re looking forward to our upcoming event on March 19th in Palm Springs, California Be sure to check our calendar for Lunch and Learns near you
Series 2025
Landlord Legal Questions &Answers
by Kimball, Tirey & St. John LLP
Question: My tenant is asking me to accept a rent payment from their cousin Do I have to take this payment?
Answer: Yes, a landlord is required to accept third party payments made on tenants’ behalf provided that the payment is accompanied by a written statement that it is made on behalf of the named tenant and does not create a tenancy or grant any rights to the payee
Question: My tenant moved in a few years ago with a roommate, and they paid the security deposit together One roommate moved out and another roommate moved in At that time, the rent was increased, and they paid some additional security deposit Who is entitled to the security deposit when the unit is vacated?
Answer: You should make the check out to all of them unless you receive in writing from any one of them that they have relinquished all rights to the security deposit to the other tenants
Question: Under a year lease on a single-family home, if a tenant’s guest breaks a window and does not repair it after a week or two, can we take the money out of the next rent payment?
Answer: It is better to fix the window or require the tenant to fix the window with a licensed contractor If the tenant refuses to pay for or fix the window, serve a 3-Day Notice to Perform Conditions and/or Covenants or Quit If he/she refuses to pay or fix the window in three days, you can commence the eviction
Question: We have a tenant who has been in the unit for one year and has painted several of the walls black Can I charge the resident for returning the paint color to white when they vacate the unit?
Answer: Yes, if you have a lease provision against making alterations without your consent You can only charge the actual cost of turning the paint from black back to white You will need to provide a written explanation as to the cost . Also, on or after April 1, 2025, you will need to take pictures of the walls before you have repainted and after you have returned the walls
Question : We sent the security deposit accounting to the tenant’s last known address on time It reflected an outstanding balance owed to us How long must I wait before taking the tenant to court? Should I contact them one more time before doing so?
Answer: You may take the tenant to court immediately, but it is always a good idea to attempt to resolve the issue first before seeking court action The time within which you must bring an action is 4 years if your lease was written and 2 years if the tenancy was an oral agreement
Question: One of our tenants claims we owe him for the loss of his property that was ruined when a pipe broke We had the pipe fixed within 3 days Do we have to pay for his clothes and furniture?
Answer: Not unless your tenant could prove that you were negligent in the maintenance of the pipes or knew or should have known the pipes could break Landlords are not the insurers of their tenant’s property loss Smart tenants purchase renter’s insurance to cover these types of losses
Question : I am an owner of a duplex and I suspect my next-door neighbor is dealing drugs I have a 6- month agreement with him that is not up for several more months . What can I do?
Answer: First, call the police and inform them what you know about the illegal activity Work with the police to gain enough evidence that will allow you to proceed with an unlawful detainer (eviction) If you can prove illegal activity, the law allows the owner to serve a 3-Day Notice to Quit, with no chance to cure Failure to comply with the notice will give rise to an action for unlawful detainer
Question : I heard that unless your rental agreement requires rent to be paid in advance that it is not owed until the end of the month Is this true?
Answer: Under California law monthly rent is not due until the end of the month unless the lease or rental agreement require the rent to be paid in advance That is why almost every written rental agreement contains that language
Q
uestion: I rent a garage to two young men under a 6-month lease for storage purposes only and I suspect that they are living there What can I do?
A
nswer: In California, an owner of rental property can limit the tenant’s use of the property for specific purposes If the tenant uses the rental for something else, he could be evicted If you could prove that the tenants were residing in the garage, you could serve them a 3-Day Notice to Perform or Quit, followed by an eviction if they fail to stop using the garage as their residence
Q
Auestion : What are some examples of a reasonable accommodation?
nswer: A reasonable accommodation is a change to a policy, rule, or regulation based upon a need due to a disability Common examples are allowing a resident to have an assistance animal, reserving a special parking space for a resident, allowing a resident who needs to move due to a disability to terminate a lease without further obligation for rent, or modifying a rent due date to coincide with the receipt of disability payments
Question: I rent out a condominium unit and I have a problem with people leaving with six months left on their lease How do I collect my lost rent?
Answer: In order to collect your unpaid rent, you could sue your former tenants in Small Claims Court You must try to mitigate your damages by trying to rent the unit as soon as possible Once you receive a judgment, you could go through formal collection procedures such as garnishing their wages or levying on their bank accounts
How Coffee Amenities Elevate Multifamily Communities
Building Connections One Cup at a Time
Contributed by WithMe, Inc.
When you think about amenities that naturally build community and increase the perceived value of a multifamily property, your mind probably jumps to elaborate resident lounges, lavish resort-style pools and tricked out fitness centers However, data reveals a surprising truth: the humble coffee machine is one of the most powerful amenities for fostering genuine connections among residents Less surprising, Drive Research’s 2024 Coffee Report (See https://www . driveresearch com/) finds nearly three in four Americans drink coffee daily, making a coffee amenity the perfect meeting point for your residents
Throughout history, coffeehouses have been catalysts for human connection and intellectual exchange In 17th Century England, coffeehouses were dubbed “penny universities,” because patrons could engage in rich discussions with people from all walks of life for the price of a coffee. Today’s apartment communities are experiencing a similar renaissance According to a recent survey conducted by WithMe, residents report that their property’s coffee machine is the tech-enabled amenity they use the most The survey also found that residents view coffee as the second most valuable amenity in their community, ranking just behind fitness centers
A Morning Ritual that Builds Community
Consider the morning rush at a downtown Los Angeles apartment community Between 6:00 a m and 9:00 a m , dozens of residents converge around the building’s specialty coffee station as they head out to work, a fitness class or school drop-off. What begins as a simple quest for caffeine often evolves into something more meaningful Quick exchanges about coffee preferences naturally flow into conversations about the day, weekend plans or other interests These brief interactions, repeated daily, help weave the fabric of the community that makes a building feel like home This connection is not an accident— it’s the result of shared rituals among residents and a strategic decision by the property’s owner and manager to create a space for it. Just like the historic coffee houses where intellectuals gathered, modern apartment coffee stations become the hub where residents bond over their daily routines
Designing Coffee Spaces for Connection
To make coffee more than a grab-and-go amenity, property managers are creating the opportunity for connection by thoughtfully designing their coffee
Please turn to page 46
COFFEE AMENITIES
spaces The most successful setups feature premium equipment that delivers multiple types of baristaquality beverages, comfortable seating arrangements that encourage lingering and socialization, and strategic placement in high-traffic areas where informal gatherings feel natural Providing 24/7 access ensures that both early birds and night owls have a place to fuel up and connect, and regular maintenance keeps the amenity a reliable and valuable part of the community
Coffee amenities also create opportunities for more formal community gatherings. From experiential coffee workshops to planned morning meetups, coffeecentric events can transform casual interactions into lasting friendships These events allow residents to slow down and engage in a world where such moments are increasingly rare
Strengthening Communities With Every Cup
The investment in quality coffee amenities yields returns that transcend the bottom line When residents feel connected to their neighbors, they’re more likely to treat common spaces with respect, participate in community events, and become advocates for the
property They’re not just renting an apartment; they’re joining a community where their daily ritual of grabbing a cup of coffee becomes a gateway to feeling at home. The humble coffee machine, often overlooked in favor of flashier amenities, is proving to be one of the most powerful tools for creating meaningful relationships in multifamily properties . By focusing on shared rituals and thoughtful design, property managers can transform an ordinary coffee amenity into the heart of a thriving community.
The author, WithMe, Inc., seeks to make lives better every day through convenient, technology-powered amenities for the multifamily industry and beyond. For more information, go to https://withme.com/.
PREPARING FOR EARTHQUAKES: UNDERSTANDING THE RISKS AND TAKING ACTION IN 2025
by Ali Sahabi, Optimum Seismic
The devastating earthquakes that struck Turkey and Syria in 2023 served as a stark reminder of the immense destruction that seismic events can bring With over 50,000 lives lost, these disasters left many Californians wondering: Could a similar catastrophe strike closer to home?
Experts provide a clear answer: Yes, it’s not a matter of if, but when California is home to earthquake faults comparable in size and behavior to those responsible for the Turkey-Syria quakes. While our state benefits from stricter building codes and inspections, the risks remain significant. Awareness and preparedness are key, especially when it comes to protecting our homes, businesses, and communities
TEST YOUR EARTHQUAKE KNOWLEDGE
How much do you really know about earthquake risks? Take this brief quiz to find out:
1. WHAT IS THE MOST DANGEROUS REGION IN THE UNITED STATES FOR PROJECTED EARTHQUAKE-RELATED LOSSES?
• A) Seattle
• B) Charleston, S.C.
• C) Los Angeles
• D) San Diego
2. WHAT ARE THE ODDS OF A MAJOR EARTHQUAKE STRIKING CALIFORNIA IN THE NEXT 30 YEARS?
• A) 7% chance of a quake equal to or larger than the 1994 Northridge earthquake
• B) 59% chance of a magnitude 6.7 quake on the southern San Andreas fault
• C) 46% likelihood of a magnitude 7 hitting Los Angeles
• D) 31% chance of a magnitude 7.5 earthquake impacting Southern California
3. IN A MAGNITUDE 7.8 EARTHQUAKE, HOW MANY BUILDINGS IN SOUTHERN CALIFORNIA WOULD SUSTAIN DAMAGE, ACCORDING TO THE USGS?
• A) 1 in 8
• B) 1 in 16
• C) 1 in 350
• D) 1 in 1,500
4. WHAT IS THE BIGGEST EARTHQUAKE RISK FACTOR FOR SOFT-STORY APARTMENTS AND COMMERCIAL BUILDINGS?
• A) Number of stories
• B) Proximity to a fault line
• C) Year of construction
• D) Soil composition
5. SOIL CONDITIONS PLAY A SIGNIFICANT ROLE IN EARTHQUAKE HAZARDS. WHICH TYPE PRESENTS THE HIGHEST RISK?
• A) Solid bedrock
• B) Sandstone
• C) Alluvial soils
• D) Mud
QUIZ ANSWERS & KEY TAKEAWAYS
1. C) Los Angeles . According to FEMA, California is home to some of the most at-risk regions for earthquake losses, including Los Angeles, San Francisco, Riverside, and San Diego Other high-risk cities include Seattle and Charleston, S C
2. All of the above. The U S Geological Survey (USGS) estimates a 99 7% chance of one or more magnitude 6 7 or larger earthquakes occurring in California within the next 30 years The southern San Andreas fault has a 59% likelihood of producing such
an event, and there is a 37% probability of a magnitude 7 5+ quake hitting Southern California
3. B) 1 in 16 buildings. The USGS’s ShakeOut scenario estimates that a magnitude 7 8 earthquake in Southern California could cause significant damage to approximately 300,000 buildings
4. C) Year of construction. The 1994 Northridge earthquake exposed dangerous structural weaknesses in soft-story buildings constructed before 1978, making older buildings particularly vulnerable. Retrofitting these structures is essential to reducing risks .
5. C) Alluvial soils. The USGS ranks solid bedrock as the most stable foundation, while alluvial soils and artificial fill pose the highest risks for severe ground shaking
TAKE ACTION NOW
Apartment owners and commercial property managers in California should carefully assess their earthquake risks and take steps to reinforce their buildings Retrofitting soft-story structures can make a significant difference in protecting lives and investments when the next big quake strikes .
For expert guidance and a complimentary consultation, contact Optimum Seismic at 833-978-7664 Don’t wait until it’s too late—prepare now and build a more resilient future .
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
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Navigating Apartment Insurance Non Renewals
By Cameron Stewart, Crest Insurance Group
If you are an owner of an apartment property that has been non-renewed by an insurance carrier for any reason, you’re likely being faced with an increase in insurance costs you would not know to prepare for without the guidance of an independent insurance broker You may also be faced with an inability to maintain the insurance protection you would desire We are providing this article to help you navigate this process to the best of your ability by answering the following common questions being asked of us
HOW DO I KNOW A BROKER IS GOING TO COME THROUGH FOR US AND FIND US REPLACEMENT
INSURANCE?
Our suggestion is to ask the broker going to the market for you for a full list of insurance companies they are going to approach on your behalf You can then share that list with a secondary insurance broker and ask if the first broker missed any potential insurance sources you should be considering . We provide this list with consistent updates to all our clients
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ACCOUNTING SERVICES
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ADVERTISING & MARKETING
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HOW
DID WE GET HERE?
Without dwelling too long on why the insurance market is changing so drastically, we will share it is largely attributable to the impact on the insurance industry of “social inflation” as well as inflation of the true cost to rebuild commercial properties, which has driven up claims costs and is what insurance is actually rated by
HOW DO I GO ABOUT FINDING A NEW CARRIER?
WHAT INFORMATION IS NEEDED TO GET QUOTES?
Other than very basic information about the property such as square footage, number of units, rental income, below is what is most crucial to always keep on file to maintain the best insurance options, moving forward
1. (If Year Built Prior to 1980) Confirmation of the
NAVIGATING APARTMENT INSURANCE NON-RENEWALS
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AIR CONDITIONING
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ATTORNEYS-AT-LAW
Andrew Griffin 619 440 5000
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COIN-OPERATED LAUNDRY EQUIPMENT
All Valley Washer Service 800 247 1100
WASH Multifamily Laundry Systems 858 279 1234
COLLECTIONS
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CONSTRUCTION AND REMODELING
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CONSTRUCTION MANAGEMENT
Southern Cross Property Consultants 858 945 2629
DECK COATING
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Life Deck Coating Installations 619 262 8600
ELECTRICAL CONTRACTORS
Bare Electric Company 619 348 0478
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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.
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VALUE
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The ultimate resource for all things related to rental housing.
ADVOCACY
Rental housing friendly public policy & elected and appointed officials
OUR VISION
Reenvisioning quality housing for all
OUR MISSION
To create a thriving rental housing community through advocacy, education, and collaboration
Robust funding for rental housing policy creation
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