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Ali Sahabi
Buck Buchanan
2025 President Southern California Rental Housing Association
President’s Message: Support for SB 448!
As a housing provider, we often find ourselves fighting to stop overreaching legislation that hinders our ability to provide housing for our communities . While the ongoing fight can get tiring, it’s always refreshing to champion a bill such as SB 448 to protect rental housing providers from unlawful trespassers .
I’m proud that SCRHA has joined a statewide coalition to support SB 448, the Trespassing Response and Remedies Act Authored by Senator Umberg, this critical legislation would provide a clear framework that will allow law enforcement to respond to illegal squatting to ensure public safety and protections for residents and property
As a first step, SB 448 passed out of the Senate Committee on Public Safety in April with a unanimous vote . Thanks to your calls of support, this proposed legislation is one step closer to becoming law . Its passage also shows what we can accomplish when we work together Look for more Action Alerts on this bill and others so you can continue to let your elected officials know how legislation impacts you. Make sure you are signed up for SCRHA Action Alerts so you can weigh in on stricter rent caps, habitability requirements, fee restrictions, and more!
We will need to carry this momentum forward as we face a new Tenant Protection Ordinance and possibly Rent Control in the City of Oceanside . In April, SCRHA was the voice of the industry and argued against the need for additional tenant protections beyond state law and stricter rent caps . We will continue to show up and advocate for rental housing providers, so be sure to look out for updates on this issue .
Rest assured that the Southern California Rental Housing Association is active and working at all levels to support your rights as a rental housing provider . We play a critical role in supporting our communities, and the tireless advocacy of SCRHA helps ensure housing for all .
Thank you for your continued support!
Alan Pentico, CAE
Executive Director
Southern California Rental Housing Association
Executive Director’s Message: Your Opinion Matters
Last month, I received concerns regarding the partisan messaging of the title article, “Firestorm of Failures,” in the February issue of Rental Advisor Magazine . A concerned member wrote to us to express their disappointment that the article was a departure from presenting controversial topics in a balanced manner and that the article did nothing to support the mission of SCRHA
I always appreciate when a member provides thoughtful and detailed feedback, and I wanted to take the opportunity to address the member’s concerns with all of you A few years ago, we moved to a publisher that uses third-party content, and we do not always have control over the views expressed in the articles As we’ve disclosed in the magazine, the articles express the author’s views and not necessarily those of the Southern California Rental Housing Association
If you have similar concerns with future issues, we welcome your thoughts . If there is a pressing concern, please reach out to us by emailing us at info@ socalrha .org or calling us at 858 278 8070 To that member that shared their opinion respectfully, thank you
One tool we implemented to help us track your opinions on an ongoing basis is a simple, one-question
survey asking how likely you are to recommend SCRHA to a friend on a scale of one to 10 with the option to leave a comment . You’ll receive this survey once every six months, which helps us track your satisfaction and improve our products and services .
As a member-driven organization, your opinions matter . We’re building something special, and we hope you’ll join us at the 2025 Rental Housing Conference & EXPO on May 8 . Your ticket is an allaccess pass to four educational seminars, a new Maintenance Mania Competition, and a sold-out trade show with 90+ exhibitors with new solutions for rental housing providers .
Register today to rock the rental industry!
CE LE B R ATIN G
CE LE B R ATIN G
Entrada | Greystar
Hitching Post Motels, Inc
Yvonne Coover-Stone Company
George and Nancy Whitehead
Jack Zolezzi Trust
El Pedregal | Cirrus
Dangel Properties Company
Limoncello
Gail Greer Company
Hitching Post Motels, Inc.
John Belanich Company
Whalen Properties
Creaser & Warwick, Inc
Hanson & Hanson
Wilma H. Healey Company
ADD Realty, Inc
CE LE B R ATIN G an
T1 PropertiesE
Carol Peluso-Briggs Company
Legar Management
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M. C. Contracting Service
Westwood Properties
Jack Zolezzi Trust
D & C Limited Partnership
GTF Properties
The Kevane Company, Inc
Kay Mark, Inc
Donna Webber Company
WASH Multifamily Laundry Systems
John Belanich Company
BWY Development Company
Sun An Sea Property Mgmt .
Creaser & Warwick, Inc.
Elinor van den Akker Company
DNC Limited Partnership
Wexford Enterprises, Inc
The Kevane Company, Inc.
Clairemont Rental Properties
Elinor van den Akker Company
Katherine L Ries Company
Griswold Real Estate Mgmt , Inc
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La Casa Bonita Apartments
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John F. Cihak Company
Fred and Shirley Salzer
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Fleetwood Properties
Don and Jo Caldwell
Betty Kern Company
Rolf Steeve Company
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Alliance Investment Corp
Kroeger Family Properties
Laurence and Carolyn Kaiser
RG Investment Real Estate Services Inc
Errol Tonsky Company
John Tyndall Company
Gregory Robinson Company
Sue and Vince Cooke
John Souza Company
Richard Hancock Company
Beverly J . Gimbel
Sherry A Hackett
Sierra Mar Properties LLC - Paul Hasley
Mary Ann Tarantino Company
Janet Griffin Company
Teryl Springstead & Rita Possehl, Co-Trustees
Terry Moore, CCIM, Inc.
Sara E Siebrand Company
Jerry Conway Company
Rose Emry Company
IHA Partners Inc.
Marshall Wilson Company
Jeffrey Malik Company
North County Grandview Properties Holding, LLC
Jacqueline Mathews Company
G. Beit-Ishoo / SeaDate
Frederic and Karen Wise
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Mike Haas Company
Team Bourda Incorporated
Al Smithson Company
Ocean Realty
Longley Family Trust - Nancy Longley Trustee
Edward R Mateer Company
Waltwood Properties
Irene Jackson Company
Marilynn Nemeroff Company
NB Properties, Inc
Nancy Mullins Company
James Kennedy Company
Caesar Oriol Company
NLJ, LLC
Fred and Shirley Salzer
Brothers II
Ann Russell White
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Donald & Adla Tessier
Ruben Ascanio Company
Stella Weil Company
Barbara J Rogers
Frank and Debra Schmuttermair
account, or were taken under new ownership, the member will not
contact the publications department at publications@socalrha.org
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Josephine Cree Company
Kendall Properties
Eklund Properties
RJW Properties, Inc.
Bob Cota Realty
Laura Sperry Company
Property Management By Tina
Jose and Magdalena Aldrete
Wakeland Housing & Development
Richard Andrews Company
ATI Restoration, LLC
Cushman & Wakefield
David Olson Company
Mirada at La Jolla Colony | Cushman & Wakefield
Muraoka Enterprises Inc.
Santa Fe Ranch | Cushman & Wakefield
Ronald and Barbara Seery
People Helping Others Prop. Mgmt.
Pacifico Properties LLC
Law Offices of Andrew C. Laubach
Western Towing
Walz Properties| Fortuna Investment Group
Brice Bossler Company
Mark Marshall Company
Stonewall Properties, Inc
Elizabeth Dammassa-Uglik Company
Timothy Carlin Company
REC Properties| Peasquitos Point Apts.
DPH Investment Company
Parkdale Apartments | Norco Mgmt Corp
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Wayne Julien Company
Woodspear Properties
Mira Bella Apartments | Simpson Property Group
Araz Yacoubian Company
William M . Moore
CPM
Sherry Bird Company
Lynn Green Company
Sciuto Properties
Jim Fogerty Company
Tom Brady Company
Mara Penick Company
Axiom Real Estate
IMT Sorrento Valley
Gables Point Loma
Barry Treahy Company
Bob Morss Company
Dennis and Marian Pierce
Rey and Debra Yturralde
Salvador Vivero Company
Jesus and Yolanda Arroyo
Betty Bark Company
Casa Del Rio LLC
Cal Pro Management Inc
David M. Pierce
Generation Contracting & Emergency Services, Inc
Tamra Fuller Fountas
Community Research Foundation, Inc
Pacific Backflow Corportion
Buchanan Property Management Corp.
Mike Saad Company
Brian Steer Company
Cleanology Housekeeping Personnel Service
Eagle Property Management
Heinz & Feinberg
Magnolia Pacific II LLC
Arbors at California Oaks Apartment Homes
Voit Real Estate Services
JDS Security
Silverado Apartments (RCMI)
Wesley G Snapp
Tehan Rental Properties
SatisFacts Research
Barbara Pflaum Company
Christina E Dahlberg
The Appletree Drive Trust
Joan Adler Company
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LEGAL CORNER:
When housing providers and residents get a knock on the door from ICE agents
It’s been said that all politics are local, but some are more local than others. Let’s talk about the rights and responsibilities of landlords when immigration officials target individuals who reside in a rental property.
By Daniel Bornstein, Esq.
It is unfortunate that some people are stoking panic through fearful immigrant communities with false reports of raids by the Immigration and Customs Enforcement (ICE) after President Trump’s calls for mass deportations and crackdowns on sanctuary cities such as San Francisco, Oakland, and Berkeley
The federal agency has said that it ‘does not conduct raids or sweeps’ and does not ‘target noncitizens indiscriminately’ . Thus far, the ICE activity in the Bay Area appears to be targeted at specific individuals based on existing deportation orders and criminal convictions .
These operations will inevitably take place in rental communities where targeted individuals live, and this engenders many questions . Housing providers should
understand that barring exigent circumstances, ICE cannot enter private areas without either:
(1) consent, or
(2) a valid, signed judicial warrant .
WE SHOULD MAKE THE DISTINCTION BETWEEN CIVIL AND CRIMINAL ARREST WARRANTS
A removal or arrest warrant issued by the U . S . Department of Homeland Security (DHS) is an “administrative” warrant that authorizes the arrest, detention, and eventual removal of an individual . Even with that warrant in hand, ICE agents do not have the license to enter private property without consent . A judicial warrant is another creature and allows ICE to make forcible entry .
A FUNDAMENTAL QUESTION: WHO SIGNED THE WARRANT?
If the warrant has been issued by a court and signed by a judge, consider it a judicial warrant, similar to those used in criminal cases . Armed with this type of warrant, ICE can barge in even if occupants of the rental unit refuse to open the door
If the property is damaged as a result of executing the warrant, housing providers can contact their local ICE office to register a complaint, and if the response is unsatisfactory, escalate the matter by reaching
out to the DHS Office of the Immigration Detention Ombudsman or the DHS Office of the Inspector General
THERE IS A FINE LINE BETWEEN ASSERTING RIGHTS AND ANTAGONIZING ICE AGENTS AND THIS CAN EVEN CROSS INTO A CRIMINAL OFFENSE
If there is a visit by ICE, landlords and residents are urged to maintain a professional demeanor If housing providers are asked if a specific resident lives on the property, or asked to turn over their resident logs and records, they should know that there is no obligation to provide this information Keep in mind, however, that a landlord’s refusal to engage with law enforcement may result in more visits to the rental community by frustrated agents
Politely refusing to assist law enforcement and volunteer information is one thing, but providing aid and comfort to a targeted individual is quite another Do not provide false information to ICE, discard any documents, or make attempts to hide individuals on their radar Obstructing ICE activity or harboring persons they are seeking can be a crime prosecutable under federal law
Let’s take Border Czar Tom Homen’s word for it that there will be consequences for anyone getting in the way Landlords need not cooperate with ICE, but they cannot block their efforts
WHAT HAPPENS WHEN A TENANT IS IN ICE CUSTODY?
We often talk about the benefits of a voluntary vacancy . When a tenant voluntarily vacates the unit, landlords can typically raise the rent to market rent .
But in some cases, the tenant vacates involuntarily when they are incarcerated, institutionalized, or detained by immigration authorities . They would love nothing more
14
JUNE 17, 2025
THE DANA ON MISSION BAY
As economic uncertainty continues to affect everything from interest rates to housing demand, understanding its implications for property owners, renters, and real estate professionals is more critical than ever.
11:30 AM - 2:00 PM Patrick Kappel Kappel Realty Group
Join us to explore how recent market volatility is shaping the rental housing landscape in San Diego with SCRHA Board Member Patrick Kappel, Kappel Realty Group
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than to be free again and return home if they weren’t hemmed up .
In these situations, housing providers still have to follow the formal eviction process under state law and cite a valid, dominant reason to evict Being detained by ICE is not a permissible purpose to evict under “just cause” eviction rules We will have to find an appropriate theory to evict the tenant who has entered the system with no guarantee they will return to the United States, much less the rental unit .
Granted, the tenant who is being incarcerated or detained may not receive an eviction notice or be able to respond in court Still, the notice should be served at the rental unit using standard methods, even if the tenant is not there . Being escorted out of the rental by ICE does not end the tenancy, so we will have to legally terminate it .
There is the possibility that after rent is unpaid for 14 days, to serve a “notice of belief and abandonment,” but this option is best journeyed with proper counsel .
Housing providers also need to ascertain the legal status of any other occupants who remain in the rental unit after a detained individual no longer resides there Our firm is good at untangling rental relationships when other tenants leave the premises in a game of musical chairs
FINALLY, WHAT TO DO WITH THE PERSONAL BELONGINGS OF TENANTS WHO HAVE BEEN DETAINED?
It is not finders keepers There are carefully choreographed steps to follow when it is reasonably believed that the tenant has permanently vacated
the property and these rules are prescripted in California Civil Code §1951 .3 . Our office is glad to walk you through this process
PARTING THOUGHTS
The Trump administration’s agenda of mass deportation is a barreling freight train that cannot be stopped, but what housing providers can do at bare minimum is know their rights and responsibilities and recognize that certain other jurisdictions may have instituted their own set of protections to keep illegal immigrants housed .
There are additional implications for those of you participating in the Section 8 program, particularly in “mixed status” families where not all family members are undocumented .
In their role of providing housing, landlords are not expected to fully understand this morass, but Bornstein Law can help in preparing protocols and respond to issues as this area of law evolves
More than a practitioner in landlord-tenant law, Daniel Bornstein is the Broker of Record for Bay Property Group, a property management company that protects and optimizes the investments of landlords. He is also renowned for his educational seminars and is called upon as an expert witness in complex real estate litigation matters. To avoid or resolve friction within rental units and cauterize risk, Daniel is happy to dispense informed advice to owners, property managers, and other real estate professionals looking to survive and thrive in today’s challenging and litigious rental housing market. Call 415-409-7611 or email daniel@bornstein.law.
Welcome New Members
PROPERTY MANAGERS
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Tips for Efficiently Managing Building Expenses
By Kari Negri, Chief Executive Officer, SKY Property Management
Managing building expenses efficiently is crucial for maintaining profitability and ensuring tenant satisfaction . By implementing the right strategies, you can reduce costs without compromising on quality or service . Let me share 7 effective tips to help you achieve this balance:
TIP 1: RESPOND QUICKLY TO MAINTENANCE REQUESTS
Promptly addressing residents’ maintenance issues is key to retaining tenants . Frequent turnover disrupts cash flow due to vacancy periods and unit make-ready costs In today’s world, tenants often share negative experiences on online platforms, which can harm your building’s reputation A well-maintained property keeps tenants happy and loyal
TIP 2: REEVALUATE VENDOR CONTRACTS ANNUALLY
Each year, reevaluate and bid out contracts for vendors like painters, pool service providers, plumbers, and electricians to ensure you’re getting competitive rates When comparing vendors, always clarify potential hidden costs such as painting ceilings or inside
cabinets . Balancing cost and quality are crucial –negotiating too low may result in subpar workmanship, leading to higher costs in the long term Use tools like online vendor marketplaces or resources like Apartment Age magazine for comparisons
TIP 3: CONDUCT PREVENTATIVE MAINTENANCE
Schedule 6-month walkthroughs, including fire alarm checks, to inspect for small leaks, potential safety hazards, or signs of wear . Fixing minor plumbing or structural issues early prevents costly repairs later Train your on-site manager to monitor property cleanliness and leaks and encourage residents to maintain their spaces to avoid pest infestations Regular upkeep (e g , vacuuming carpets) can also extend the life of shared amenities .
TIP 4: USE SMART TECHNOLOGY
Leverage modern tech tools to monitor utilities and expenses For example:
Smart thermostats can reduce heating/cooling costs in common areas
Leak detectors alert you to water issues early Please
Energy-efficient lighting reduces electricity bills and lasts longer than traditional bulbs
TIP 5: COLLECT CASHLESS PAYMENTS
Consider transitioning laundry machines and vending machines to digital payment systems This not only prevents potential cash discrepancies but also makes it easier for residents to use these services
TIP 6: REVIEW PROPERTY TAXES AND INSURANCE
If property values dip, explore opportunities to appeal and renegotiate your property taxes Additionally, review your insurance policies regularly:
Work with brokers who can access quotes from multiple providers
Bundle policies where appropriate (e .g ., liability and property insurance) for discounts . Ensure your policy adequately covers your risks while staying costeffective.
TIP 7: HANDLE EVICTIONS PROMPTLY BUT STRATEGICALLY
Evictions are a significant financial drain—from legal costs to lost rent Establish clear payment terms and address issues as soon as possible . Proactive communication and early interventions (like payment plans) can sometimes prevent the need for costly evictions
Bottom line, a vacancy is better than an eviction Rent to good people to begin with by applying a strategic qualification process to each and every applicant.
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
INCOME PROPERTY MANAGEMENT
Financial advisory
Having a Personal Residence with Capital Gains in Excess of Your $500,000 Exemption? You Can Also Use a 1031 Exchange in the Same Sale!
BY CHRISTOPHER MILLER, MBA SPECIALIZED WEALTH MANAGEMENT
Many of my readers are familiar with the IRS Section 121 Exclusion that allows married couples a $500,000 Capital Gains exemption ($250,000 for unmarried homeowners) on the sale of their personal residence . If you bought your house 30 or 40 years ago – especially if you bought in a high value area such as California – your capital gain could be much larger than that . The IRS code explicitly allows homeowners to use both the Section 121 exclusion to avoid some taxes altogether AND a 1031 exchange to defer (potentially forever) the rest of your gains – therefore paying no current taxes on the sale of your residence This month, we’ll explore how this works .
THE IRS PUBLICATIONS ALLOWING USE OF A 1031 AND A SECTION 121 EXCLUSION
Rev Proc 2005-14 was described to me as the “Valentine’s Allowance” by a tax expert This statement provides the basis for using both the Section 121 Exclusion AND a 1031 Exchange to defer taxes from the same sale The seller must have owned the property for more than 5 years total and must have used the property as a primary residence for 2 of those years
Rev Proc 2008-16 Section 4 01 states “The Service will not challenge whether a dwelling unit as defined in
section 3.02 of this revenue procedure qualifies under Section 1031 as property held for productive use in a trade or business or for investment if the qualifying use standards in section 4 02 of this revenue procedure are met for the dwelling unit . (I have added the underlining and italicized emphasis.) Section 4.02 clarifies that the property must be rented at fair market value for a period of time in each of two 12-month periods before the property is sold – and that personal use cannot exceed the greater of 14 days or 10% of the time the unit was rented at fair market value .
HOW THIS WOULD WORK IN PRACTICE (A CASE STUDY.)
Let’s say a married couple bought a 4 bedroom house in Orange County in the 1980’s for $200,000 Today, this property is worth $1,600,000: a potential $1,400,000 Capital Gain . IRS Section 121 will exclude some of that gain completely from taxes - $500,000 for a married couple, and $250,000 for an unmarried taxpayer . Our sample taxpayers can take $500,000 of gains off that bill and are left with a $900,000 Capital Gain . The 20% IRS Capital Gain Rate plus (starting at) 9 .3% California State Tax plus 3 .8% Obamacare tax would equal a 33 1%, or $297,900 tax bill Ouch!
To defer (potentially forever) this large tax bill, our married couple can move out of their home and operate it as a rental property for two years, then sell the property
Continued from page 22
Upon closing, they can take their $500,000 exemption from the sale and owe no taxes on them These proceeds can be for any purpose at all - such as a down payment on a new place to live . The balance of the $1,600,000 sales price, $1,100,000, contains the $900,000 of capital gains . Our investors will defer this gain and their accumulated depreciation (potentially forever) by purchasing a replacement investment property worth at least $1,100,000 through a 1031 Exchange .
“DOUBLE UP ON TAX SAVINGS WITH AN EXCLUSION AND A 1031 EXCHANGE”
A client recently presented me with a situation that is very similar to our example couple mentioned above .
He and his wife are planning to downsize from their current long-term residence, and – faced with a potentially large tax bill – was wondering if there was a way to defer his taxes . I was able to tell him Yes – there is! Not only is it possible to use both the Section 121 Exemption AND the IRS 1031 Exchange in the same sale, the IRS has issued publications that in black and white explicitly say that it is allowed .
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
From Disaster to Demand:
How the LA Wildfires Set the Housing
By Mercedes Shaffer, Realtor
When devastating fires tore through LA County on January 7, they didn’t just destroy homes — they set the entire housing market on fire. Over 1,000 residents were suddenly left homeless, many of them from affluent neighborhoods like Malibu, Pacific Palisades, and Topanga . In a region already battling a severe housing shortage, this disaster didn’t just add fuel to the fire — it created a full-blown housing frenzy.
HOUSING SHORTAGE BECOMES HOUSING CRISIS
Before the fires, LA County’s housing market was already stretched to its limits . Vacancy rates were low, rents were sky-high, and competition was fierce. But overnight, hundreds of wealthy families were suddenly part of LA’s growing homeless crisis — an ironic twist
Market Ablaze
in a city already infamous for its lack of housing LA COUNTY’S LUXURY RENTAL MARKET
Between January 15 and the end of February, a staggering 268 rental homes priced above $6,000 per month leased in less than a week, with many going for far above asking price. The luxury rental market — once sluggish in certain areas — exploded overnight.
Take 714 12th Street in Santa Monica It sat for 141 days at $27,500 per month, only to lease on January 15 for $50,000 per month — a shocking 82% over asking
Luxury homes that had once languished on the market were suddenly being snapped up in days, triggering bidding wars reminiscent of 2021’s peak pandemic frenzy
PRICE GOUGING OR JUST MARKET FORCES?
California law limits rent increases to 10% following a declared disaster, but in the immediate aftermath of the fires, some landlords tested the limits. One strategy was offering 366-day leases — a technical loophole intended to sidestep rules on short-term rentals, which previously applied only to leases under a year .
However, on February 4, Governor Gavin Newsom shut down this loophole, clarifying that any rent increase above 10% — regardless of lease length — would be considered illegal price gouging .
January 1, 2026
Compliance Deadline Approaching
In the same executive order, Newsom exempted 24 luxury-heavy zip codes — including parts of Bel Air, Beverly Hills, and Brentwood — allowing newly listed, larger single-family homes with four or more bedrooms to sidestep price-gouging restrictions altogether .
This selective carve-out created a luxury free-for-all, with wealthy families willing to pay almost anything for housing. And it wasn’t just rentals — the for-sale market erupted too .
SALES MARKET FRENZY
With rentals scarce and uncertain, many fire-affected homeowners turned to buying — fueling bidding wars for move-in-ready homes .
Some sale prices were shocking, such as 10380 Dunleer Drive, listed at $2,975,000, sold for $6 million to a family displaced from Pacific Palisades In Santa Monica, 463 17th Street listed for $7,850,000 and sold in five days for $10 million, and 628 10th Street, asking $8,795,000, closed at $11.2 million — a 27% premium .
Neighborhoods like Westwood, Bel Air, Marina del Rey, and Venice saw the same feeding frenzy, particularly in pockets where buyers were willing to pay top dollar to stay close to their kids’ schools and community ties
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So far, the lower-end rental and single-family markets haven’t seen the same surge in demand Many lower-income families affected by the fires are hunkering down with relatives or friends, stuck in limbo as they navigate the long and frustrating process of insurance claims, rebuilding approvals, and government red tape . THE RIPPLE EFFECT: ORANGE COUNTY, PALM SPRINGS & BEYOND
out in LA, the ripple effect is spreading fast. Retired homeowners who don’t have the wherewithal it takes to rebuild are heading for Palm Springs, swapping coastal mansions for desert estates Meanwhile, families with school-age kids, desperate for safety, stability and strong schools, are relocating to communities in Orange County
This trend is already showing up in cities like Newport Beach, Irvine, and Laguna Beach, where several families from fire-ravaged areas have already enrolled their children in local schools
As families from LA relocate in search of safe, stable communities with top-rated schools, Orange County’s housing market will face steady upward pressure . Unlike the immediate shock in LA, OC is seeing a slower, more gradual migration — but many of these families are arriving with significant purchasing power, driving up prices and competition As home prices climb, affordability for first-time buyers will slip further out of reach, keeping more people in the rental pool longer, tightening inventory, and pushing rents higher over the next 12 to 24 months
A NEW ERA FOR SOUTHERN CALIFORNIA REAL ESTATE
The January fires didn’t just destroy homes — they reshaped the housing market across Southern California . In LA, luxury rentals and move-in-ready homes are commanding unprecedented premiums In Orange County, a quieter but lasting shift is underway as families seek safety, stability, and top schools .
This isn’t a passing bubble — it’s a deeper shift driven by scarcity, unpredictable regulations, and the fundamental need for community and security . With climate disasters becoming more frequent, this may be just the first chapter in a larger story about where Southern Californians choose to put down roots .
Mercedes Shaffer is a multifamily broker with 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 InvestingInTheOC com BRE 02114448
Presented by the Apartment Association of Greater Los Angeles
May 20th, 2025 - 8:30am-3pm - Pasadena Convention Center
SCHEDULED SPEAKERS
STAGE 1 (HALL A)
WELCOME TO IPME 2025: WHAT’S NEW AND ‘OUT THERE’ ON THE HORIZON?
Daniel Yukelson, Executive Director, Apartment Assn. of Greater Los Angeles
A deep dive into new laws and rent regulations impacting our industry. Plus, Jeffrey Prang, Los Angeles County Assessor joins Dan for an update on the disaster relief efforts and more. 8:45
MEET THE ASSESSOR
Jeff Prang | Los Angeles County Assessor
Jeff Prang has served as Los Angeles County Assessor since 2014, overseeing the nation’s largest local assessment agency. A licensed appraiser and former West Hollywood mayor, Prang is committed to ethical, fair, and transparent property valuations. He holds a B.A. in International Relations from Michigan State University.
NAVIGATING THE EVICTION PROCESS IN A JUST CAUSE ENVIRONMENT
Mike Brennan | Brennan Law Firm
In This Seminar, You Will Discover:
• Understand The Differences Between Rent Control & “Just Cause”
• Understand and Follow Just Cause Laws
• Navigate The 4 Stages Of An Eviction With Ease and more!
REAL
ESTATE TAX
STRATEGIES:
Tony Watson | Robert Hall & Associates
KEEP MORE, PAY LESS
Are you maximizing your tax benefits as an apartment owner? Join Tony Watson, Tax Advisor at Robert Hall & Associates, for an exclusive presentation on how to minimize your tax burden and maximize your returns.
CURRENT LEGAL STRATEGIES FOR EVICTION AND RENT COLLECTION
Edrin Shamtob & Bijan Shakibkoo | SNS Law Group
Edrin Shamtob and Bijan Shakibkoo are experienced attorneys specializing in landlordtenant law, with a strong track record of representing landlords in both residential and commercial real estate matters throughout California.
NEW LANDLORD TENANT LAWS
Dennis Block | Dennis P. Block & Associates
Dennis P. Block is the founder and managing partner of the Law Firm of Dennis P. Block and Associates. The firm specializes in residential and commercial eviction of tenants. Founded in 1976, the firm has become the leading eviction law firm in California, having handled over 200,000 tenant evictions statewide.
PASADENA RENT CONTROL
Adam Bray-Ali | Pasadena Housing Providers
Adam Bray-Ali is a respected advocate and local expert on Pasadena’s rent control policies. His work centers on housing justice, policy implementation, and ensuring equitable solutions for both tenants and property owners within the City of Pasadena.
9:15 am 10:15 am
SCHEDULED SPEAKERS
STAGE 2 (HALL B)
ROOF REPAIRS, MAINTENANCE & INSTALLATION
Jack Dressen | Stone Roofing
Important considerations for maintaining and protecting commercial roofs, particularly in Southern California, where unique environmental factors may come into play. By staying proactive with inspections and partnering with an experienced contractor, you can extend the lifespan of your commercial roof, reduce unexpected costs, and protect your investment.
ARE DELAWARE STATUTORY TRUSTS (DSTS) RIGHT FOR YOUR 1031 EXCHANGE?
Adam Bryan | American 1031
BALCONY INSPECTIONS, REPAIRS, AND SEISMIC RETROFITTING
Helen Fower & David Tashroudian | One Structural, Inc.
Helen Fower and David Tashroudian are leading experts in multifamily construction and inspection mandates, specializing in retrofitting, reconstruction, and balcony inspections & repairs for multifamily properties across California.
THERE’S A MOUSE IN THE HOUSE! WHO’S SUING ME NOW?
Kari Negri | Sky Properties, Inc.
It’s a nightmare every landlord dreads. In this session, we’ll dive into how frivolous tenant lawsuits can impact your bottom line and your peace of mind. From skyrocketing legal fees to disrupted operations and loss of steep rise in cost of insurance, or worse the complete loss of coverage. These lawsuits can cause serious headaches. Don’t panic—learn proactive strategies to prevent and handle these claims, protect your property with good practices, and keep your business running smoothly.
HOW DELAWARE STATUTORY TRUSTS CAN HELP INVESTORS INCLUDE BOTH ANCHOR AND BUOY INVESTMENT
Chay Lapin | Kay Properties & Investments, LLC
ASSETS IN THEIR PORTFOLIOS.
Kay Properties’ Delaware Statutory Trust President, Chay Lapin uses the term “The Anchor and The Buoy” to describe this investment strategy. Listen to Chay describe exactly how the anchor and buoy strategy works and exactly what property types are classified as anchor or buoy asset classes.
DON’T LET THE BIG ONE SHAKE YOU DOWN: PROTECTING INVESTMENTS FROM EARTHQUAKE IMPACTS
Jared Duke | Optimum Seismic
A quick overview of IRS 1031, discussion on the formation and function of DSTs, practical advice on selecting a DST sponsor and property. 11:15 am 12:30 pm 2:00 pm 1:30 pm 2:30 pm
Seismic retrofitting i sn’t j ust a bout compliance—it’s a bout s ecuring y our v aluable a ssets a nd ensuring the safety of your tenants. Join us for expert insights on how to strengthen your property’s structure, meet inspection deadlines, and avoid costly risks.
TENANCY IN COMMON: MULTIFAMILY CONVERSION AND OWNERSHIP
Will Tiao | Tiao Properties
Do you own a small, multifamily building? Have you ever wondered whether it is possible to sell units to different buyers for a higher price than selling your building to one buyer? In this presentation, Will Tiao of Tiao Properties will demonstrate how small apartment owners can convert their buildings into “tenants in common” (TICs) and accomplish three things simultaneously.
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
May 8
Get in the Groove at the 2025 EXPO! Town & Country Resort
With four seminars, networking, and 80+ exhibitor displays, the EXPO is your gateway to staying ahead in the ever-evolving world of property management and rental housing
May 13 8:00A - 3:00P 1:00P - 1:30P
Solution Series: 1031 Exchanges & Legal Responsibilities When Selling A Property (1 CEC) Webinar
Learn popular strategies to mitigate the capital gains tax bill when you sell an appreciated investment property .
May 22 9:30A - 11:30A
Solution Series: Attorney Q & A (1 CEC) Webinar
Join us for an insightful Legal Q & A Webinar with Attorney Todd Brisco, Todd A Brisco & Associates This is your chance to get expert legal advice on rental housing issues
6/17: Lunch & Learn San Diego: State of the Industry 6/17: Solution Series: Small Claims Court 6/18: NextGen Leadership Roundtable June
CalRHA State Legislative Update
The California State Capitol has experienced a period of heightened legislative activity in recent weeks . Numerous bills have undergone hearings in policy committees, and budget subcommittees have conducted sessions in anticipation of the forthcoming May Revision to the state budget The Legislature is currently observing its one-week Legislative Spring Recess and is scheduled to reconvene on April 21st
Senate Bill 448 (Umberg/D-Santa Ana) - Squatter Removal, sponsored by CalRHA, which aims to address the issue of trespassers/squatters on rental property and their removal by law enforcement, was successfully passed by the Senate Public Safety Committee on April 8th with a unanimous 6-0 vote . SB 448 defines a squatter as an individual who unlawfully enters and remains in a residential property and, upon request, refuses to vacate or falsely claims a legal right of possession This legislation would establish a procedure for notification utilizing an SB 602 form and the removal of a squatter by a local law enforcement agency SB 448 is scheduled for its next hearing in the Senate Judiciary Committee on April 29th . The bill has garnered support from a broad coalition, including law enforcement, the Realtors, and tribal organizations
A newly prioritized legislative measure, Assembly Bill 1157 (Kalra/D, San Jose) - Just Cause and Rent Caps, has emerged, representing a substantive amendment that would significantly alter the existing just cause and rent cap provisions established under AB 1482, the Tenant Protection Act of 2019 . AB 1157, introduced on March 28th, proposes to amend the Tenant Protection Act by reducing the state’s rent cap from 5% plus inflation or 10% (whichever is lower) to 2% plus inflation or 5% (whichever is lower). Furthermore, it seeks to eliminate a key exemption for single-family homes and condominiums from statewide rent caps and just-cause eviction requirements The enactment of AB 1157 would remove this exemption, thereby subjecting nearly all residential properties to more stringent rent control and eviction regulations Additionally, the bill aims to make the statewide rent and eviction controls permanent, rather than allowing them to sunset on January 1, 2030 AB 1157 is scheduled for a hearing in the Assembly Housing and Community Development Committee on April 24th .
Other updates to legislation are included below:
● Assembly Bill 246 (Bryan/D, Culver City) - Social Security Tenant Protection Act - This bill was gutted and amended on April 10th The bill would now, until January 20, 2029, enact the Social Security Tenant Protection Act of 2025 , which would prohibit a court, during a declared social security benefit payment interruption, from issuing a summons on a complaint for unlawful detainer in any action that seeks possession of residential real property and that is based, in whole or in part, on nonpayment of rent or other charges, if the defendant experiences a loss of income due to the social security benefit payment interruption. Furthermore, AB 256 would also require any 3 days’ notice that demands payment of covered rental debt, as defined, that is served on a tenant during a declared social security benefit payment interruption to meet specified criteria, including that the notice include an unsigned copy of a declaration of social securityrelated financial distress and that the notice advise the tenant that the tenant will not be evicted for failure to comply with the notice if the tenant delivers a signed declaration to the landlord . AB 246 is pending a vote on the Assembly Floor .
● Assembly Bill 311 (McKinnor/D, Inglewood)Dwelling Units: Persons and Risk of Homelessness - AB 311 would also permit a tenant, with written approval of the owner or landlord, to temporarily permit the occupancy of their dwelling unit by a person who is at risk of homelessness and one or more common household pets owned or otherwise maintained by the person and increase rent, subject to state and local ordinances . CalRHA has taken a support position on this bill and the bill has passed to the Senate .
● Assembly Bill 414 (Pellerin/D, Santa Cruz)Residential Tenancies: Return of Security - This bill has been amended and would generally require a landlord to return the security by personal delivery or by check made payable to the tenant If the landlord received the security or rental payments from the tenant electronically, the bill would instead require the tenant to return the remainder of the security electronically, as specified, unless the landlord and tenant designated another method of return, by written agreement The bill would also instead authorize the landlord and tenant to mutually agree, as specified, to provide the itemized statement by either email to an
email account provided by the tenant or mail by firstclass mail, postage prepaid, to an address provided by the tenant . AB 414 has passed to the Senate .
● Assembly Bill 1183 (Lowenthal/D, Long Beach) - Residential tenancy: habitability: inspection and right to cure - This gut and amend came into print on March 28th . AB 1183 would authorize the landlord of a dwelling unit to elect to have an inspection performed to verify that the dwelling unit satisfies the habitability requirements described above before it is made available for hire The bill would establish a presumption that, if the landlord has an inspection performed showing no violation of the habitability requirements, the dwelling unit meets that standard for an unspecified period of time. If a tenant makes the landlord aware of a dilapidation of the premises during that time, the bill would provide the landlord an unspecified period of time in which to cure or correct the dilapidation, during which period the landlord would not be deemed to be in violation of the habitability requirements described above . The bill would authorize a local agency that performs an inspection at the request of a landlord to charge the landlord a fee sufficient to cover its cost in providing the inspection . AB 1183 is set for a hearing in the Assembly Judiciary Committee on April 29th
● Assembly Bill 1248 (Haney/D, San Francisco)Rental Fees - This gut and amend on March 24th is sponsored by the Attorney General and targets fees associated with rental properties This bill would require, for new residential tenancies beginning on or after January 1, 2026, that a tenant only be obligated to pay rent and prescribed fees or charges, including, among other things, a security deposit and rent stabilization fees charged to a landlord and passed on to the tenant For tenancies that began before January 1, 2026, the tenant would only be obligated to pay rent, the fees and charges described above, any fees or charges that were charged at the start of the tenancy, and fees or charges for specified utilities, including the use of a ratio utility billing system (RUBS) . The bill would also require that any payment received from, or on behalf of, a tenant be applied to rent, rental debt, and any outstanding fees in a specified order, and would prohibit late fees from being charged to a tenant whose only delinquency is attributable to nonpayment or late payment of a late fee . The bill would provide that a landlord or landlord’s agent who violates these provisions is liable to a tenant in a civil action for damages, including treble damages . CalRHA is opposing AB 1248 which is set for a hearing on April 22nd in the Assembly Judiciary Committee .
● Senate Bill 381 (Wahab/D, Fremont) - Residential Rental Properties: Fees - This bill would enact the Fair Rental Act of 2025 . The bill would prohibit a landlord or their agent from charging certain fees, including, any fee that is not specified in the rental agreement, a processing fee, including a convenience fee or a check cashing fee, for the payment of rent or any other fees or deposits, or a fee for a tenant to own a household pet . The bill would also prohibit a landlord or their agent from charging a late fee for the late payment of rent that is more than 2% of the monthly rental rate, and would prohibit the late fee from being charged unless the rent is overdue by 7 days or more Furthermore, the bill would prohibit a landlord or its agent from charging a fee for a parking space . Finally, SB 381 would eliminate the authority of the landlord or their agent to charge, as part of the application screening fee, the reasonable value of time spent by the landlord or their agent in obtaining information on the applicant
● Senate Bill 436 (Wahab/D, Fremont) - Right to Redeem Tenancy - SB 436 would require a court presiding over an unlawful detainer action to restore a residential tenant to their former estate or tenancy if the tenant: (1) pays the full amount of rent in arrears, as specified, or (2) submits documentation of approval for rental assistance funds in an amount that would cover the full amount of rent in arrears . The bill would not require a tenant to make a showing of hardship to obtain this relief Furthermore, the bill would require the 3-day notice to pay rent or quit, as described above, to contain a statement advising the tenant of their right to redeem their tenancy by paying or obtaining rental assistance funds to cover the specified rent in arrears. CalRHA opposes SB 436, which is set for a hearing in the Senate Judiciary on April 29th
● Senate Bill 522 (Wahab/D, Fremont) - Housing: Tenant Protections - This bill excludes, from the exemption to California’s just-cause eviction protections for housing issued a certificate of occupancy within the last 15 years, housing that is built to replace a housing unit substantially damaged or destroyed by a disaster, as specified. Unfortunately, SB 522 will have the unintended consequence of discouraging the reconstruction of housing destroyed by disasters CalRHA opposes SB 522, which is pending a vote on the Senate Floor .
● Senate Bill 681 (Wahab/D, Fremont) - HousingSB 681 is a gut and amend that came into print on April 10th The bill incorporates language from SB 381 (above) and adds provisions on Seismic Retrofitting for Multifamily, planning and zoning law changes,
JUNE 18 , 2025 | 3:00 PM - 6:00 PM JUNE 18 , 2025 | 3:00 PM - 6:00 PM THE NASH THE NASH N E X T G E N S C R H A
Join a dynamic group of 25 participants as you engage in enlightening discussions and gain valuable insights from seasoned mentors in the industry.
During this interactive event, you will be assigned to a diverse group of peers, and together, you will rotate tables every 10 minutes to intimately connect with a range of experienced mentors
2025 Mentors
Aiesha Blevins, FPI Management, SCRHA Past President
Alicia Banister, Flats Life, Regional Manager, SCRHA Board Member
Kayla Roeder, Cambridge & Birchwood Companies, Principal, SCRHA Board Member
Mark Feinberg, Attorney, Heinz & Feinberg, SCRHA Board Member
Buck Buchanan, Buchanan Property Management, SCRHA President
Dr Lorri Goldman, Avenue 5 Residential, SCRHA Board Member
ORG
Continued from page 34
changes to the Housing Accountability Act, and the Permit Streamlining Act . SB 681 is set for a hearing in Senate Housing on April 22nd
The Legislative calendar for the year is as follows:
April 11-18 - Spring Recess
May 2nd - Policy Committee Deadline for Fiscal Bills
May 9th - Policy Committee Deadline for Nonfiscal Bills
May 23rd - Appropriations Committee Deadline
June 6th - Deadline for bills to pass the Floor in their House of Origin
June 15th - Deadline to Pass Budget Bill
July 18th - Policy Committee Deadline in Second House
July 18th - August 15th -Summer Recess
August 29th - Appropriations Committee Deadline in Second House
September 12th - Recess Begins
October 12th - Last Day for the Governor to Sign or Veto Legislation
WHAT IS THE COST OF DISASTER IN 2025?
by Ali Sahabi, Optimum Seismic
WHAT IS THE COST OF BEING UNPREPARED FOR DISASTER?
In California, the numbers remain staggering .
Over the past few years, natural disasters—from pandemics and wildfires to storms and earthquakes— have brought billions in losses While recovery efforts are costly, one fact remains clear: proactive investments in disaster preparedness can save lives and billions of dollars
THE COST OF DISASTER TODAY
The COVID-19 pandemic may no longer dominate headlines, but its economic aftershocks are still being felt. Combined with record-breaking wildfires in 2023,2024 and 2025, California’s disaster response and recovery efforts have cost tens of billions of dollars. Meanwhile, researchers continue to warn of the much greater costs a major earthquake could bring
In fact, experts estimate a 7 1-magnitude earthquake in Southern California could result in over $250 billion in damages, thousands of lives lost, and hundreds of thousands displaced The U S Geological Survey’s “ShakeOut” scenario outlines the real and terrifying possibility of mass building collapse and widespread infrastructure failure .
INVESTING IN PREPAREDNESS PAYS OFF
Studies continue to show a 4-to-1 return on investment for disaster mitigation . Yet California, like many regions, still underinvests in seismic retrofitting despite the known risks. While the state has made significant strides in wildfire resilience through updated building codes and defensible space requirements, seismic safety remains a looming concern .
WE ALREADY KNOW WHICH BUILDINGS ARE MOST AT RISK:
• Pre-1978 soft-story structures with parking below
• Pre-1933 unreinforced masonry buildings
• Pre-1980 concrete tilt-up buildings
• Pre-1978 non-ductile concrete structures
• Pre-1996 steel moment frame buildings
Many cities, including Los Angeles, San Francisco, and Santa Monica, have adopted ordinances requiring the retrofitting of vulnerable buildings. Since 2015, over 6,000 soft-story buildings in Los Angeles alone have been strengthened, representing real progress toward a more resilient future .
Still, thousands more structures remain at risk And as California’s population and urban density continue to grow, the potential for catastrophic losses increases .
The Lessons of Wildfire Resilience
California’s experience with wildfire provides a powerful case study in the value of building codes . Homes in Paradise built after 2008, under the state’s Chapter 7A wildfire code, were nearly three times more likely to survive the 2018 Camp Fire than older homes
Similar logic applies to earthquakes: when we know what types of buildings are vulnerable, and we know how to strengthen them, the only thing left is to act .
A CALL TO ACTION FOR 2025
The longer we delay, the greater the risk Earthquakes cannot be prevented, but the damage they cause can be mitigated through responsible planning, retrofitting, and community-wide resilience initiatives .
Now is the time to invest in safer buildings Not only do retrofits protect lives and property, they preserve essential housing, keep businesses running, and help entire communities recover faster after a quake
Disaster preparedness isn’t just smart policy—it’s the foundation of a safer, more sustainable California .
Optimum Seismic is here to help Contact us for a free property evaluation and take the first step toward resilience
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 619 298 7724
Alliance Investment Corp 858 597 4900
AltaCima Apartment Homes 858 565 8333
American Assets Trust, Inc 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
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