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September 18, 2025 | 10:30 AM - 6:00 PM
Coronado Municipal Golf Course
The SCRHA Golf Classic brings together rental housing professionals for a day of golf and prizes on a beautiful championship course. Register early for this popular event!
What to Expect
Full Golf Tournament: Using the scramble format with Peoria scoring, the Golf Classic makes it easy for golfers of all abilities to enjoy a day on the links. Shotgun start at 1:00 PM.
Skill Contests: Show off your skills and win prizes for the longest drive, closest to the pin, and the putting contest.
Prize Giveaways: Attend and win! Sponsor giveaways and opportunity drawings throughout the day give you more opportunities to win!
Register A Foursome
$1,150 Members | $1,585 Non-Members
Player ticket includes lunch voucher, sleeve of balls, free range balls, and opportunity drawing entries! Rental clubs are offered subject to availability
Buck Buchanan
2025 President Southern California Rental Housing Association
President’s Message: Outlook for Summer with SCRHA
On behalf of the Board of Directors, thank you for making this year’s Rental Housing Conference & EXPO a tremendous success! With 700+ attendees and a sold-out trade show, we rocked the rental industry with a day of education, networking, and fun .
While it was a rockin’ day, it wouldn’t have happened without the dedicated efforts of the Events Committee or the Education Committee, who organized the educational seminars I’d also like to extend my thanks to the members of the NextGen Committee who volunteered their time at the SCRHA booth
I’d also like to thank all of our sponsors and exhibitors who went above and beyond to make the day special for all of our attendees . I encourage you to show your appreciation by doing business with these outstanding partners . Don’t forget to reconnect and explore more about them through our online exhibitor directory at www .socalrha .org . Your continued engagement helps strengthen the rental housing industry .
SCRHA is truly a member-driven organization, and I appreciate how our volunteers work together to further the rental housing industry .
Looking back on event photos, I’m reminded that our community is at its strongest when we work together . Whether you were a speaker, sponsor, exhibitor, or attendee, your participation helped make the 2025 EXPO a chart-topper
Now, let’s keep the momentum going! Registration is now open for our Golf Classic on September 18 . This popular event is a fun opportunity to connect with your peers while enjoying some friendly competition in a beautiful setting .
We’re also excited to announce that nominations for the 2025 Mark of Excellence are now open Don’t miss the opportunity to celebrate your team and spotlight the rental housing professionals who set the Mark of Excellence . Purchase your nominations early to give the nominee extra time to complete their submission!
It’s an exciting time at SCRHA, and your continued engagement is what makes all of this possible . I’m looking forward to connecting with you at our upcoming events
AAlan Pentico, CAE
Executive Director
Southern California Rental Housing Association
Rental Housing at a Crossroads: Legislative Risks and Industry Response
s the year approaches the mid-point of 2025, it’s clear that the economic landscape continues to evolve in ways that profoundly affect the rental housing industry Vacancy rates appear to be stabilizing, albeit lower than in the past, which has led to areas of the market offering move-in concessions. Inflationary pressures and market uncertainty are creating new pressures for rental housing providers, which has SCRHA concerned that elected officials will offer a new round of tenant protections to address the housing affordability crisis.
With the added pressures from budget cuts at all levels of government, particularly to housing vouchers, the challenges will continue to mount for housing providers We know that these forces are changing the way you do business To better understand what’s affecting you the most and how you plan to respond to the challenges, SCRHA will be surveying members This data will help us identify new ways to support you and focus advocacy to protect your investments
In addition to participating in industry surveys, one effortless way to stay engaged and make your voice heard is to subscribe to SCRHA Action Alerts . These communications make it simple for you to contact your elected representatives before they vote on critical bills affecting the rental housing industry Elected leaders are happy to gather information from SCRHA, but want to hear from their constituents That’s you
We have already seen success in this legislative session thanks to your
support . These successes include stopping AB 1157 (Kalra), an attempt to lower the statewide rent cap and eliminate the single-family home exemption in the Tenant Protection Act We have also seen several bills amended because of our ongoing advocacy efforts.
While we are encouraged by these early successes, we are still actively opposing the following bills:
• AB 863 (Kalra) - Would require 3-Day and termination notices to be provided in certain languages in addition to English
• SB 436 (Wahab) - Would extend the 3-Day Notice to Pay or Quit period to 14 days .
• AB 628 (McKinnor) - Would render a unit without a stove or refrigerator uninhabitable
SCRHA knows you have a lot on your plate as a housing provider, so we will do the heavy lifting of representing you at all levels of government . We appreciate your support and know that it will take all of us working together to advance the industry .
CE LE B R ATIN G
CE LE B R ATIN G
Entrada | Greystar
Yvonne Coover-Stone Company
El Pedregal | Cirrus
Teryl Springstead & Rita Possehl, Co-Trustees
Limoncello
Jacqueline Mathews Company
Hitching Post Motels, Inc.
Whalen Properties
Brycorp, Inc
Wilma H. Healey Company
CE LE B R ATIN G an
T1 PropertiesE
J Palmer Properties, LLC
Legar Management
Ann Russell White
Jack Zolezzi Trust
Charles & Marilyn McKerlie & Margaret Schock
GTF Properties
Donna Webber Company
Lamden Property Management, Inc .
John Belanich Company
Nancy Parks
Creaser & Warwick, Inc.
Allison Logan Company
DNC Limited Partnership
The Kevane Company, Inc.
Richard Jenkins Company
Elinor van den Akker Company
RG Investment Real Estate Services Inc.
Angela Merrill Company
Caesar Oriol Company
Carla Mercer Company
Fred and Shirley Salzer
William and Susan Moore
Fleetwood Properties
Rolf Steeve Company
Carol T Crossman
Kenneth Rundlett Company
Lloyd Pest Control
Laurence and Carolyn Kaiser
Errol Tonsky Company
Joseph and Mary Berardino, Owner-Managers
Gregory Robinson Company
Richard Hancock Company
Sandra Clarkin & Brian Calvano
Sierra Mar Properties LLC - Paul Hasley
Alcasid
Mary Ann Tarantino Company
Kim Conant Company
Terry Moore, CCIM, Inc.
Jerry Conway Company
G Beit-Ishoo / SeaDate
IHA Partners Inc.
Joe & Irina Siemienowski
Jeffrey Malik Company
G. Beit-Ishoo / SeaDate
Jungman Investments
George and Celida Haddad
Al Smithson Company
Spero Tzathas Company
Longley Family Trust - Nancy Longley Trustee
Richard E & Diane P Martin
Waltwood Properties
Triple T, LP
Marilynn Nemeroff Company
Nancy Mullins Company
Molloy Properties
NLJ, LLC
Brothers II
Harvey Investment Properties
Bill Winans Company
Brentwood Management Co
Alvarado Property Management
or
contact the publications department at publications@socalrha.org
account, or were taken under
M. C. Contracting Service
Kristen Webb Company
Josephine Cree Company
Nobel Prize Properties
RJW Properties, Inc.
Laura Sperry Company
Shawn & Lily Smith, Owners
Wakeland Housing & Development
John Meyer and Jeff Lancaster
ATI Restoration, LLC
Cambridge Management Group, AMO
David Olson Company
Muraoka Enterprises Inc.
Karen Blumenshine Company
People Helping Others Prop. Mgmt.
Law Offices of Andrew C. Laubach
Randon J & Jane A Strick
Walz Properties| Fortuna Investment Group
S D Chula Vista Properties, LLC
Mark Marshall Company
Roberta G Eklund
Elizabeth Dammassa-Uglik Company
REC Properties| Peasquitos Point Apts.
Mark & Diane Nesbit
Dennis & Tina Daneri
Janet R Hammer
Mira Bella Apartments | Simpson Property Group
Araz Yacoubian Company
Woodward Associates
Sherry Bird Company
Sciuto Properties
Adam S Leeds
Tom Brady Company
Phillip Morgan Company
Axiom Real Estate
Barry Treahy Company
Peace, LLC
Dennis and Marian Pierce
Tom Cartier Company
Jesus and Yolanda Arroyo
Jonathan C . Moore
Betty Bark Company
David M. Pierce
Temecula Ridge (RCMI)
Tamra Fuller Fountas
Strata | UDR
Buchanan Property Management Corp.
Brian Steer Company
Village Apartments | Cushman & Wakefield
Eagle Property Management
Blane Marital Trust Q
Arbors at California Oaks Apartment Homes
JDS Security
David Davis Company
Silverado Apartments (RCMI)
SatisFacts Research
Lynne Thomas Properties
Jonathan Almond Company
Parkstone Companies
Susan O’Hara Company
Unlocking Operation Efficiency: How
Predictive Analytics Can Improve Property Management
By Meng Lee
Pproperty managers are facing significant challenges in maximizing returns while ensuring tenant satisfaction . According to the National Apartment Association, the main hurdles include staffing shortages, regulatory changes, increasing workloads, and the rapid evolution of technology. Meanwhile, inflationary pressures and high interest rates are cutting into cash flow, making cost savings a top priority.
To succeed in the market and keep tenants satisfied, property managers must maintain a steady cash flow for maintenance, repairs, and top-notch service delivery . Meeting these demands calls for innovative solutions
Enter predictive analytics and artificial intelligence (AI), the gamechangers reshaping property management . By leveraging real-time data and automation, these
technologies empower property managers and investors to make smarter decisions, boost efficiency and unlock new opportunities for growth .
CUTTING COSTS, ENHANCING EFFICIENCY
One of the most compelling advantages of AI adoption is reducing costs . By automating routine tasks, identifying inefficiencies, and catching problems early, AI systems can lower repair and maintenance costs by up to 35% . As a result, managers and investors can make more informed, proactive decisions that ultimately improve operations overall .
By identifying possible issues before they turn into major problems, AI reduces the likelihood of expensive emergency repairs while also improving tenant satisfaction . Automated systems can analyze tenant data and utility usage trends to predict
equipment failures and schedule maintenance. It can also enhance compliance management by automating alerts for gas safety checks, electrical inspections and data protection regulations, reducing the risk of violations and legal exposure .
Work order management, for example, often suffers from natural human error that can lead to delays, duplicate requests, and inconsistencies which slow down maintenance and increase costs . AI tools can streamline these processes by automating workflows, prioritizing urgent tasks and reducing overall task
volume . The result is a seamless system for tracking maintenance requests, quick response times and ensuring accurate documentation—delivering benefits for investors, managers, and tenants .
As demand for scalable, cost-effective property management grows, AI has become an essential tool for industry professionals A recent Buildium Survey found that 91% of property managers plan to expand their portfolios, making efficiency more important than ever Automation helps teams manage larger portfolios without adding administrative burdens, offering a smarter way to track expenses, monitor compliance and optimize resources .
STRENGTHENING OPERATIONS AND TENANT SATISFACTION
Beyond cost savings and maintenance improvements, AI can also enhance tenant relationships By analyzing behavior patterns, lease preferences and occupancy trends, AI enables property managers to tailor services and create community-driven initiatives This level of insight allows for a more personalized approach, fostering tenant satisfaction and longterm retention
Managers and investors can use AI to enhance property operations in several ways:
Vendor optimization: AI systems can automatically match the right vendors to the right jobs based on expertise, cost and proximity, reducing inefficiencies and proving service quality.
Conduct Site Visit
Evaluate Your Property Develop Recommendations
Oversee the Repair Process Premium Plug and Seal (Patent Pending)
• Dynamic pricing: While market data already informs rent adjustments, AI delivers real-time analytics that refine pricing strategies daily or even hourly based on market conditions to maximize yield efficiency.
• Enhanced decision-making: AI simplifies complex processes, equipping property managers with real-time insights needed to make faster, more informed decisions
Please turn to page 14
forward-thinking. Now, Gen Z is not as concerned with recreation or downtime at the office, rather a financial investment in their future. However, stock options and a standard 401(k) won’t cut it when they are actually searching for “student loan assistance, tuition reimbursement, and maternity and paternity benefits.” This generation values a work-life balance and is highly optimistic for the future, so these types of benefits will not only attract but also encourage them to stay and take advantage of these opportunities.
As the market evolves, AI innovation will continue to adapt to changing property manager needs and expectations From chatbots that handle tenant inquiries instantly or automated repair triage systems that prioritize urgent issues, AI-driven solutions are transforming property management into a proactive, high-efficiency industry. By leveraging these innovations, managers and investors can create seamless operations, boost tenant satisfaction and stay ahead in an increasingly competitive market
OVERCOMING BARRIERS TO AI ADOPTION
Despite its clear advantages, AI adoption in property management still comes with its challenges . Many property managers remain uncertain about the
They Want to See Diversity and Inclusion
This highly educated, highly diverse generation is craving a passion and dedication to diversity and inclusion from their employers. As a result, “86% of
Gen Z job seekers cite a company’s commitment to diversity as an important factor in deciding whether or not to accept an offer.” Here it is very important for a company to talk the talk and walk the walk. Diversity and inclusion cannot just be a phrase in your company’s mission statement or a committee that meets once a quarter. This dedication needs to be seen in initiatives like asking one’s pronoun preference, adequate accommodations for those who are differently-abled, policies to ensure fair and equal pay, etc.
technology, unsure of its capabilities, or hesitant to move away from traditional methods Some view AI as complex or unnecessary, underestimating its potential for driving value .
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
However, those willing to embrace AI solutions will quickly see both immediate and long-term value. From reducing overhead costs to enhancing tenant satisfaction, AI is not just an upgrade—it’s becoming a necessity in an increasingly data-driven industry As early adopters gain a competitive edge, the question is no longer whether AI will transform property management, but how quickly businesses will adapt to stay ahead .
They Want an Offer, and They Want it NOW
Meng Lee is a Vice President at Ballast on the Acquisitions team. Prior to joining the firm, Meng worked at FREO Group, where he focused on acquisitions and asset management for commercial properties across the U .S . Meng also worked for Rockpoint Group focusing on acquisitions across multiple asset types in major gateway markets in the U .S . Meng received his BS in Finance from the University of Pennsylvania .
Standard HR procedures make it difficult to establish a hiring committee and follow the correct protocol when extending an offer. Gen Z wants no part of that. They
How Utility Trends & Legislation Are Reshaping Rental Property Management
Making Sense of a Changing Utilities Landscape
by the Team at Livable
Utilitycosts have long been a wildcard in rental property management . But in 2025, the stakes are higher than ever A mix of inflation, infrastructure strain, regulatory shifts, and climate goals are converging to create uncertainty—and opportunity—for housing providers .
ENERGY PRICES ARE LIKELY TO CLIMB
Most analysts expect utility prices to continue trending upward . According to the U .S . Energy Information Administration (EIA), residential electricity prices rose by 5 .5% in 2023, and early 2025 forecasts suggest further increases as states accelerate clean energy investments and grid modernization . Natural gas remains particularly volatile, with price spikes tied to international demand, supply chain pressures, and extreme weather . For housing providers, these cost fluctuations translate directly into tighter margins—and in some regions, more tenant inquiries about billing transparency.
FEDERAL LEGISLATION AND REGULATORY TRENDS
Although no sweeping utility-related housing legislation has passed at the federal level this year, multiple proposals are under review . Key themes include:
• Decarbonization Incentives: Expect more funding and tax credits for energy-efficient retrofits, particularly in multifamily properties
• Tenant Protections: Legislators are increasingly exploring rules that require transparent and fair utility billing for renters, particularly in high-cost metros .
• Data Requirements: Some HUD and EPA programs are piloting initiatives that would require more detailed utility reporting, especially for subsidized housing .
Additionally, many states are rolling out or tightening “benchmarking” requirements—mandating housing providers track and report utility usage While this can
be a burden, it also presents an opportunity for owners to identify inefficiencies and reduce costs.
WHAT THIS MEANS FOR HOUSING PROVIDERS
To stay ahead, forward-thinking housing providers are taking a more strategic approach to utility management That includes:
• Tracking: Monitoring usage across properties to identify leaks, inefficiencies, or overages.
• Education: Engaging tenants in conservation goals, whether through signage, digital tools, or building-wide challenges .
• Automation: Streamlining utility billing and recovery to avoid manual errors, delays, and friction with tenants
THE BOTTOM LINE
Utility management is no longer a back-office task— it’s a key lever for profitability, sustainability, and tenant satisfaction . As costs rise and regulations evolve, owners who adopt smarter systems and proactive strategies will be best positioned to thrive .
E ORIGINAL L #1
Rules and Red Tape Won’t Fix The Housing Crisis
by Alan Pentico, CAE, Executive Director of the Southern California Rental Housing Association
In recent years, city after city across San Diego County has rushed to pass its own version of a Tenant Protection Ordinance (TPO) . Chula Vista, San Diego, Oceanside and Imperial Beach have all followed this trend, layering new requirements on top of state law .
But while these local ordinances may sound like progress, they’re actually causing serious housing problems – and doing more harm than good .
Let’s be clear: housing providers are already following strict rules under California’s existing state law, AB 1482 That law establishes statewide standards for rent increases, eviction protections, and other related matters . So why are cities now adding another layer of local red tape?
The result is a confusing patchwork of inconsistent rules, deadlines, notices, and legal terms that vary from city to city . For big companies with legal teams and
compliance departments, that might be manageable However, that’s less than 30% of the market . For the typical housing provider – someone who owns one or two houses, condos or apartments – it’s a nightmare
One Northern California homeowner moved back into her San Diego house, thinking she had followed state law by providing the standard exemption notice – only to learn she had missed a separate city requirement. She’s now facing a lawsuit for more than $300,000 .
Here’s another example . Under San Diego’s TPO, if a tenant moves out under certain conditions, housing providers could be required to track them down and offer the unit back, even five years later. That’s not just unrealistic, it’s unworkable .
At SCRHA, we have had to create 16 new forms to help our members stay compliant with the three local TPOs Sixteen! That includes different rental agreements,
exemption notices, termination forms, and disclosure addendums. On top of all that, many have required wording that must be printed in a specific font size or delivered in hard copy .
Even experienced housing providers are struggling to keep up If you have renters in San Diego, the rules are different than those in Chula Vista. And different still in Imperial Beach The cities claim these ordinances are about fairness and stability, but where is the fairness in expecting landlords to operate under three different rulebooks, plus state law?
completed and almost 1,700 more on the way . That progress matters More housing helps stabilize rents and expands options for renters, exactly what we need .
But we can’t afford to stop there. We need more housing across the entire region, not just downtown And we need policies that support — not punish — the landlords who help provide it When the rules become so burdensome that people stop offering rental housing, the whole community loses
“Where is the fairness in expecting landlords to operate under three different rulebooks, plus state law?”
- Alan Pentico
The irony is that these burdens discourage precisely what our region desperately needs: more housing When providers feel like the deck is stacked against them, they’re less likely to invest in their properties and more likely to sell The people who get hurt the most are renters
We were encouraged by the City of San Diego’s recent announcement that 2024 was a banner year for housing downtown, with nearly 1,900 new homes
Let’s focus on real solutions, like expanding rental assistance programs and reducing barriers to building new homes . A good start would be expanding the areas where multifamily rentals are allowed . These are policies that help renters without driving providers away Local governments should be working with housing providers, not against them
It may be politically popular to pass laws that sound like tenant protections, but when those policies make it harder to provide housing, we all lose in the long run
Alan Pentico, CAE, is the executive director of the Southern California Rental Housing Association. Whenever I can, I like to share my expertise in any of the areas mentioned. Feel free to ask. If I don’t know the answer, I can probably give you some good suggestions as to where to look for it. My capability includes: Extensive experience in local policy inception, development, and implementation through collaborative efforts; Broad experience in local and state advocacy and program management as well as Political Action Committee management, as a Public Affairs Executive; and a strong understanding of non-profit management including certification by the American Society of Association Executives (ASAE) as a Certified Association Executive (CAE) for Non-Profit association management. A wide-range of knowledge in the rental housing industry. I am always interested in new ways to advance the Rental Housing industry, field of Public Affairs, and Non Profit industry.
2026 Board of Direc tors Applications
Our vision is to re-envision quality housing for all, while our mission is to create a thriving rental housing community through advocacy, education, and collaboration. The SCRHA is a strong focus-driven organization that works diligently to represent the rental housing industr y in San Diego, Imperial, and southern Riverside counties We utilize strategic planning and purposeful directives to ensure we remain a high value to our members, provide strong advocacy, and outreach to our community.
We focus on bringing the right skills to the Board to ensure we reach our goals This type of thinking has ensured our excellence for over one hundred years, leading the rental housing.
At this time, the Board is seeking experienced owners and proper ty managers with strengths in collaboration and community building, bringing value to the membership with transformative, innovative ideas, and an interest in advocacy
The Nominating Committee is accepting applications f rom owners, proper ty managers and associate/supplier member candidates for consideration to ser ve on the Board of Directors for a two-year term. Candidates must complete an online application and skills questionnaire to be considered
Complete applications must be received by June 30, 2025.
Apply online at socalrha.org or contact Alan Pentico, SCRHA Executive Director, at 858 278 8070 for more information.
OUT WITH THE OLD
Why Removing Old Mercury Thermostats Enhances Safety and Reduces Energy Costs
By ThermostatCare
Nowadays, with mercury-containing products few and far between, most people may not remember how potent mercury is . Just one gram of mercury is capable of polluting a twenty-acre lake A single mercury thermostat contains around three grams of mercury
Do any of the homes you manage or own still have mercury-containing thermostats? If you’re replacing a manual thermostat with a smart thermostat, chances are that the old thermostat contains liquid mercury, especially if it was manufactured before 2006
Removing mercury thermostats and upgrading your property with smart thermostats can have multiple benefits:
• Protect your community from mercury exposure and associated repercussions
• Cut energy costs
• Potentially leverage higher rent to tenants for upgraded units by including smart thermostat benefits, such as scheduling
Plus, there is an opportunity for you to get paid for dropping off your old mercury thermostat. Keep reading to learn how you can get $30 for every mercury thermostat you replace .
PROFIT AND PROTECT YOUR PROPERTY WITH THERMOSTAT CARE
Thermostat Care, a free mercury thermostat disposal program mandated by California legislation, incentivizes California residents to safely dispose of mercury thermostats by offering a $30 mail-in rebate for each mercury thermostat dropped off at a Thermostat Care location
Read the quick and easy steps below to help your community benefit from mercury-free properties and receive your mail-in rebate .
TAKE CONTROL: HOW TO SAFELY UPGRADE
Step 1: Identify the Type of Thermostat
Answer these questions to find out if you have a mercury thermostat
• Does the thermostat have any type of digital screen (even if older)?
• If yes: you do not have a mercury thermostat
• If no: continue
• When was the thermostat manufactured?
• 2006 or later: you do not have a thermostat
• Prior to 2006: you may have a mercury thermostat
If you want to be absolutely sure, you can take the cover off. If you see small glass ampules inside the thermostat, it is a mercury thermostat . But, opening a thermostat makes it more fragile If you’re unsure, we advise you to bring the thermostat to a Thermostat Care drop-off site.
Step 2: Carefully Remove the Thermostat from the Wall
Wearing protective gloves, carefully remove the thermostat from the wall and place it inside a sealed clear bag – Thermostat Care drop-off sites may have these bags available if you do not Do NOT disassemble or attempt to remove the mercury-containing glass tube inside the thermostat .
Step 3: Find a Drop-Off Site
Once you’ve replaced your old thermostat, it’s crucial to ensure proper disposal For mercury thermostats, find a Thermostat Care drop-off site nearest you in California by visiting https://thermostatcare .org/ locations
Please contact your local Household Hazardous Waste facility for more information on how to dispose of electronic or other types of thermostats .
Step 4: Safely Dispose of Your Mercury Thermostat at a Thermostat Care Drop-Off Site
At the location, fill out a form and place it in the bag with your old mercury thermostat . The bag will then be processed, and the $30 rebate will be mailed to you within 1 year If you’re curious about the status of your check, email info@ThermostatCare .org .
Step 5: Replace Your Mercury Thermostat with a New, Safe Model
Upgrade your thermostat to a modern, digital model that does not contain mercury These newer thermostats
ASPHALT PAVING CONCRETE WORK
offer precise temperature control, energy efficiency, and peace of mind knowing that your property is free from the risks associated with mercury
UNDERSTANDING MERCURY THERMOSTATS AND THEIR ADVERSE EFFECTS
When not disposed of properly, mercury-containing thermostats can harm local wildlife and the health of surrounding communities either through water pollution or the inhalation of mercury vapors
Mercury exposure can have adverse neurological effects on humans. Potential effects include:
1 . Neurological disorders, such as memory loss, cognitive impairment, and developmental delays in children
2 Cardiovascular system issues, leading to increased risks of heart disease and high blood pressure .
3 . Kidney damage and dysfunction .
4 . Inhalation of mercury vapors can result in respiratory problems, such as bronchitis and difficulty breathing.
JOIN THE MOVEMENT: SPREAD AWARENESS AND TAKE ACTION
By learning about the risks associated with mercury thermostats and sharing this knowledge with others, you can promote a safer living environment for all Encourage others in your community to check their thermostats, replace them with newer models, and responsibly dispose of old mercury thermostats at nearby Thermostat Care drop-off locations.
For more information, visit ThermostatCare org or email any questions to info@ThermostatCare.org.
Defer Taxes on Your ProPerTY salePotentially Forever - With a 1031 Exchange
BY CHRISTOPHER MILLER, MBA SPECIALIZED WEALTH MANAGEMENT
Ithink it is valuable to periodically feature a “1031 Exchanges – Back to Basics” article to reach investors who may not be familiar with this powerful investment tool . The 1031 Exchange is a procedure that the IRS allows us real estate investors to use that will defer (potentially forever) taxes and keep all of our equity invested – giving us the potential to both earn higher income and see greater appreciation over our lifetimes: potentially multiple millions of dollars worth!
TAXES DUE FROM A “STANDARD” PROPERTY SALE
Let’s say that our investor bought 8 Units in Orange County back in 1985 for $350,000 and sold it this year for $3 .5 million for a gain of $3,150,000 . How big will that tax bill be?
First, the IRS now has a sliding scale for Capital Gains 20 years ago, the rate was “just” 15% . Today, there are three Capital Gains brackets: Zero percent up to a $96,700 gain, 15% for any additional gain up to $600,050, and then 20% of any gain above that amount . For our investor, that bill totals $585,492 .
Next, California will want their “share” of the gain at their graduated tax scale that runs between 1% and 13 .3% . The total Capital Gains tax paid to California will be $376,165 .
Since the beginning of “Obamacare,” the Affordable Care Act has charged 3 8% on investment income 3 .8% of our $3,150,000 Capital Gain is $119,700 .
Our investor has finished paying taxes on his gains, but he’s not done yet – next he needs to pay a Depreciation Recapture tax on his Accumulated Depreciation – the sum of all the depreciation deductions he took over the years Let’s assume that he used an 80% Improvements to 20% Land Value ratio for his calculations . His total accumulated depreciation is therefore $280,000 (80% of his original purchase price )
The IRS charges a 25% rate on accumulated depreciation; for a total of $70,000 . Once again, California will charge their tax on the same scale as before, and will want $25,634
From our investor’s $3,150,000 gain, he will pay a total of $961,658 of Capital Gains taxes plus $199,700 for Obamacare . For his Depreciation Recapture, he’ll pay an additional $95,634 – for a total tax bill from this sale of $1,176,992 . This leaves us with an after-tax gain of $1,973,008 .
THESE TAXES WILL TAKE A HUGE BITE FROM YOUR INVESTMENTS
Our investor, pre-sale, had $3,500,000 of equity providing potential income and growth for him . If he sells and pays his taxes, he’ll likely find it harder to create similar income and growth from the $2,323,008 he has left . $2,323,008 paying 5% annual income would provide $116,150 compared to $175,000 if our investor put all $3,500,000 to work Similarly, his aftertax money appreciating at 3% per year could give us $3,121,928 of value in 10 years, while his full amount appreciating at 3% would be $4,700,000 in 2035
Please turn to page 29
Our investor paid $1,176,992 of taxes while missing the potential for both $58,850 of annual income in year one, and $1,578,072 of additional gains from holding 10 more years
THE SOLUTION – A 1031 EXCHANGE WILL KEEP 100% OF YOUR EQUITY INVESTED FOR 100% OF THE INCOME AND GROWTH
POTENTIAL
With a 1031 Exchange, our investor can put all his proceeds into a qualified replacement property and defer those taxes – potentially forever By keeping all of his equity invested, he can enjoy the full income and growth potential from his life’s work and then pass the full amount on to his heirs
“POTENTIALLY FOREVER” TAX SAVINGS
Although a 1031 Exchange will only defer your taxes until the next time you sell property, an investor can then orchestrate another 1031 Exchange to defer those taxes again When he dies, his heir will receive what the IRS calls a Stepped Up Basis . While he is in “taxpayer heaven,” his heirs will mark the value of his assets to the day of his death for tax purposes. Three benefits come from this:
All the capital gains and depreciation recapture taxes he has been deferring throughout his lifetime will disappear
With the “Stepped Up Basis,” his heir’s tax basis in the property becomes it’s value on the date of his death They could sell the property the very next day and pay zero Capital Gains tax .
Since the property’s tax basis is “marked to market,” his heirs can then begin taking annual depreciation deductions using the current market value of the property – for even more tax savings!
THE REAL ESTATE INVESTOR’S MOST VALUABLE TOOL – A 1031 EXCHANGE
Stock investments in a tax-free account such as an IRAor 401(k) can grow much faster because the account’s principal is not eroded by taxes every time something is sold A 1031 Exchange allows us real estate investors to apply the same principal to our portfolios – and receive the same benefits. Next month, I will walk you through the nuts and bolts of how such an exchange works. If you have any questions, please call my office toll-free at (877) 313-1868.
Christopher Miller is a Managing Director with Specialized Wealth Management and specializes in tax-advantaged investments including 1031 replacement properties Chris’ real estate experi-ence 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 Exchang-es. 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
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
June 17
Solution Series: Small Claims Court (1 CEC) Webinar
With lawsuits in small claims being significantly more common than filing claims, this session provides practical guidance on what to do next if you’re sued, how to prepare your case, present your arguments effectively, and understand what to expect throughout the small claims process.
June 17 3:00P - 4:30P 11:30A - 2:00P
SCRHA Lunch & Learn San Diego: State of The Industry
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 . 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
June 18 3:00P - 6:00P
NextGen Professional Leadership Development Mentor Roundtable
The Nash
Don’t miss this unique opportunity to expand your professional network, broaden your horizons, and acquire invaluable insights from renowned mentors, as you navigate your path to success in property management .
June 25 1:00P - 2:00P
Solution Series: 1031 Exchanges & Legal Responsibilities When Selling a Property (1 CEC) Webinar
Join us to learn popular strategies to mitigate the capital gains tax bill at the federal and state level when selling an appreciated investment property
June 26 12:00P - 1:00P
Master
the
Basics of HR Law & Fair Compensation for Onsite Managers
(1 CEC) Webinar
Learn the must-know aspects of California HR law and discover smart, practical strategies for compensating your onsite managers In one focused session, we cut through the noise to give you actionable advice that can make a real difference in your business.
N E X T G E N
S C R H A
JUNE 18 , 2025 | 3:00 PM - 6:00 PM JUNE 18 , 2025 | 3:00 PM - 6:00 PM THE NASH THE NASH
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 Goldmann, Avenue5 Residential, SCRHA Board Member
Trash Service Updates in San Diego
The City of San Diego, Environmental Services Department is implementing a series of updates to trash services, including transitioning eligible households to City-provided trash collection and transitioning ineligible properties that do not align with requirements outlined in the City’s Waste Management Regulation and the municipal code to private Franchise Hauler service .
WHO IS ELIGIBLE FOR CITY COLLECTION SERVICES?
Eligible properties must meet all of the following criteria:
• Residential properties with one to four residences on a single lot .
• Properties that are not mixed-use or commercial properties .
• Properties located on a public street and serviceable on a public street
• Properties with sufficient space to store containers needed to hold all trash, recycling and organics generated by the property between collections
WHO IS NOT ELIGIBLE FOR CITY COLLECTION SERVICES AND MUST TRANSITION TO A PRIVATE FRANCHISE HAULER?
• Residential properties with five or more residences on a single lot .
• Mixed-use and commercial properties .
• Properties located on private streets or within gated communities
• Properties whose access requires the crossing of a private street or are serviced on a private street, even if the property address is on a public street .
• Properties with insufficient space to store enough City-issued containers needed to hold all trash, recycling and organics generated by the property between weekly collections .
• Properties whose entire complex is not eligible for City collection, and some residences in the complex require the use of a private hauler.
•
HOW HAVE RESIDENTS BEEN NOTIFIED?
Letters are being sent to property owners notifying them that their affected properties will need to switch service by the deadlines noted below . These letters and subsequent reminder mailers will be sent between May and July of 2025 to keep property owners informed .
WHEN DO I NEED TO TRANSITION MY SERVICE TO A PRIVATE FRANCHISE HAULER?
Transition deadlines are established based on your current trash collection day . This phased approach allows the City and private Franchise Haulers to address operational logistics and ensure Franchise Haulers can onboard new customers efficiently and without service disruption .
TO ENSURE A SMOOTH TRANSITION, PLEASE TAKE THE FOLLOWING STEPS:
Select a Franchise Hauler and Establish Waste Collection Service
Establish trash, recycling and organic waste services with one Franchise Hauler and determine a service start date . To comply with the City Recycling Ordinance Container and Signage Guidelines, you must subscribe to enough collection services so that containers do not overflow and containers are used properly without any contamination
Leave City Containers at the Collection Point on the Date the New Service with a Franchise Hauler Begins
Review Each Franchise Hauler and Service Offerings
Please refer to the list of City-approved Franchise Haulers It is encouraged to contact more than one to determine which Franchise Hauler may be the best fit for your property .
Notify Residents
The week your new Franchise Hauler containers are being delivered, please ensure all City containers are left out in an accessible location after collection for at least 48 hours to facilitate the container exchange . Your new Franchise Hauler will deliver your new containers and remove the City containers .
and Tenants of
Upcoming Changes
It is important to communicate the updates for waste collection services with the residents of the property or the tenants if the property is rented, including the new service start date, new collection day ad recycling best practices .
HOW SHAKEALERT IS CHANGING EARTHQUAKE PREPAREDNESS AND WHY SEISMIC RETROFITS ARE ESSENTIAL
by Ali Sahabi, Optimum Seismic
IOn Monday, April 14, 2025, millions of people across Southern California received an alert on their mobile phones seconds before a 5.2-magnitude earthquake hit San Diego County, thanks to the ShakeAlert system developed by the United States Geological Survey (USGS) . ShakeAlert, which began operating in California in 2019, detects seismic waves as soon as an earthquake starts and sends out warnings to people before the stronger, more destructive shaking (S-waves) reaches them This early warning system allows individuals to take protective actions such as “drop, cover, and hold on,” providing precious seconds to minimize injury The system operates through a network of seismic stations, which use fast-moving P-waves to detect seismic activity and send alerts before the slower, more damaging S-waves arrive However, the effectiveness of the alert depends on distance: the closer you are to the epicenter, the less notice you receive People in downtown San Diego,
for example, received alerts only one to two seconds before the shaking, while those in Los Angeles had up to 10 seconds of warning .
This early warning system has proven to be a gamechanger, offering a small window of time to prepare for seismic activity, potentially saving lives and reducing injuries . Although these seconds may seem minimal, they can make all the difference in allowing people to take cover or secure themselves before the shaking begins . ShakeAlert is built on the concept that even a few seconds’ notice can significantly reduce the risk of injury, particularly in situations like workplaces or crowded public areas where people may be caught off guard. As the system continues to expand, it now serves over 50 million people in California, Oregon, and Washington, with potential expansion into Alaska as funding allows .
While ShakeAlert provides an invaluable heads-up in the event of an earthquake, it cannot prevent the
damage caused by seismic activity The true key to protecting property and lives lies in proactive seismic retrofitting. Buildings that have undergone seismic retrofits are better equipped to withstand the shaking and prevent catastrophic damage. In fact, retrofitting is often the most cost-effective way to ensure both the structural integrity of a building and the safety of its occupants . Given that Southern California experiences frequent seismic activity, it’s crucial for property owners to invest in strengthening their buildings to withstand future earthquakes.
Seismic retrofitting not only reduces the risk of significant structural damage but also minimizes the financial toll of repairs and potential insurance claims. Retrofitting has proven to be a sound investment, as it strengthens older buildings and ensures they meet modern safety standards . The process involves reinforcing key structural components, such as foundations and walls, to increase a building’s resistance to seismic forces . This measure is especially critical for older buildings built before modern earthquake safety codes were established .
Combining earthquake preparedness tools like ShakeAlert with seismic retrofitting can make a significant difference in reducing the financial and personal toll of an earthquake. As we continue to advance earthquake
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
detection systems, building safety must also evolve to ensure that we are not only warned but also prepared . ShakeAlert can give you a few precious seconds, but it’s seismic retrofitting that will protect your property, your tenants, and your investment in the long run . For more information on how to retrofit your building for seismic safety, contact Optimum Seismic today
Source: “How a Nifty Government Tool Knows About Earthquakes Before You Feel Them” – The New York Times, April 2025 .
R e c o g n i z e e x c e l l e n c e i n
h o u s i n g b y s u b m i t t i n
n o m i n a t i o n f o r t h e 2 0 2 5
o f E x c e l l e n c e A w a r d
M a r k o f E x c e l l e n c e A w a
O c t o b e r 2 4 , 2 0 2 5
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S O C A L R H A . O R G
APT Residential LLC
Abode Communities
All Points Real Estate
Alliance Investment Corp
303 .408 .3540
. 213 .225 .2868
. 619 .298 .7724
. . 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
Avenue5 Residential 206 582 3333
B
Beard Property Management 619 892 8722
Bob Cota Realty 619 465 9934
Brennan And Associates Inc 619 475 2470
Brentwood Management Co 619 220 8595
Bridge Property Management 801 716 5795
Brycorp, Inc 619 920 7174
Buchanan Property Management Corp 619 269 0276
C
CFI 858 200 4260
Cambridge Management Group, AMO 619 .497 .0771
City View Apartments|Greystar
Core Property Group
Cushman & Wakefield .
D
619 .234 .0134
619 .399 .7279
. . 949 .224 .2929
Delta Property Management 619 465 5851
Douglas Allred Company 858 793 0202
E Eagle Glen Apartments | Greystar 951 461 4565
Euston Management 858 793 8899
F
Fairgrove Property Management 714 541 0288
Flats LLC 248 860 8845
Foothills at Old Town | Sentinel Corp 951 676 7545
Bald Eagle Security Services, Inc 619 230 0022 Brothers in Arms Security
. 844 .458 .1021
California Safety Agency 866 996 6990
Elite Security & Staffing 619 574 1589
HandyTrac Systems
. 800 .665 .9994
San Diego (38428)
SAN DIEGO GAS
FAMOUS FOR VALUE
Huge Clearance Center
Largest Selection in San Diego
Famous quality and value since 1974
Professional Delivery, Installation, & Haul Away
Property Management & Commercial Accounts Welcome
CHECK OUT THE OPEN BOXES, DISPLAY MODELS, AND DISCONTINUED ITEMS FOR FAMOUS SAVINGS!
Famous for Customer Value since 1974!
Trusted for “On Time” service for 37 Years!
Providing the Multi-Unit Housing community with value and service
Experienced Associates to assist you with: Brand name products, sales, selection, and service
The Right Product, for the Right Application to Rent that empty unit, or complete your home’s remodel!
Most items available for same- day will call, or order by noon-have it delivered the next day! LAUNDRY ROOM, REFRIGERATORS & FREEZERS, MATTRESS SETS, COIN-OPERATED WASHERS, DRYERS, DISHWASHERS, DISPOSERS, TRASH COMPACTORS, RANGES, OVENS, COOKTOPS, VENTILATION, OUTDOOR APPLIANCES, WATER HEATERS & ACCESSORIES
VALUE OUTREACH ADVOCACY
VALUE
Recognized resource hub that inspires diverse membership growth & engagement from all sectors of rental housing.
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
Character & integrity that negates need for regulation
OUTREACH
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Rental housing providers are recognized as valuable & essential members of the community
