June 2020 SF Apartment Magazine

SF APARTMENT magazine

AHEAD OF THE

CURVE

MAINTAINING GAINS & MOVING FORWARD

San Francisco Apartment Association June 2020 / $7.00

“The Top Selling Apartment Brokerage Team in San Francisco with over $4.176 Billion in Sales Totaling 722 Apartment and/or Commercial Buildings and over 14,420 Units”

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1240 Hayes St ~ List Price: 5,175,000 12 Units - (Alamo Square)

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1900-1906 Hyde St ~ List Price: 3,865,000 7 Units - (Russian Hill)

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1690 Greenwich St ~ List Price: Unpriced 15 Units - (Cow Hollow)

1633-1639 Washington St ~ List Price: 7,500,000 9 Units - (Nob Hill)

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1509 Golden Gate Ave ~ List Price: $6,725,000 15 Units - (Alamo Square)

For More Information, Please Contact:

JAMES DEVINCENTI

BRAD LAGOMARSINO

Executive Vice President/Multifamily Investments

COLLIERS INTERNATIONAL 101 Second Street, 11th Floor San Francisco, CA 94105

Executive Vice President/Multifamily Investments

Visit Us at: www.THEDLTEAM.com

lic. 01058500

415 288 7848 j.d@colliers.com lic. 00951916

415 288 7847 brad.lago@colliers.com

JAY GREENBERG | TRIGG SPLENDA Creating value and exceeding expectations is what we do and PACIFIC HEIGHTS

DOWNTOWN

DOWNTOWN

WE ARE HERE FOR YOU.

ALAMO SQUARE

SOLD | 21 Units

SOLD | 55 Units

SOLD | 21 Units

COW HOLLOW

MARINA DISTRICT

SOLD | 86 Units

SOLD | 42 Units

SOLD | 35 Units

JAY GREENBERG

•

COMPASS

W 122°25'57 "

JAY@JAYHGREENBERG.COM LICENSE: 01049568

RCIAL

"N

415.378.6755

MME

37°47'4 9 SF

SENIOR DIRECTOR COMPASS COMMERCIAL

CO

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

TRIGG SPLENDA SENIOR SALES ASSOCIATE COMPASS COMMERCIAL

415.308.6560 TRIGG@TRIGGSPLENDA.COM LICENSE: 01484698

SF APA magazine

SF APARTMENT

contents

Features

22

Sight Unseen

by CHRIS ULEP

28

A Break in the Fog

by TERRENCE JONES

34

Data Doesn’t Lie

by MATTHEW C. SHERIDAN

28 4

JUNE 2020 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

8

38

Exceptions to the Rule

With Good Reason

The News

12

Market View

Mighty Small

by KILBY STENKAMP

40

The Big Unknown

Board Report

by JAY GREENBERG

Agree to Agree

20

by ERIC ANDRESEN

48

Calendar

52

Professional Services Directory

56

Membership Application

Legal Q&A Hundred-Dollar Question

by VARIOUS AUTHORS

8

SF APARTMENT MAGAZINE | JUNE 2020

5

ANYONE CAN MANAGE YOUR PROPERTY. WE’D RATHER PROTECT YOUR INVESTMENT. Berendt Properties is a team of experts—in leasing, maintenance, and city property regulations. So when you choose us, you get people who understand the priority: your bottom line.

BERENDT PROPERTIES

Leasing

Management

Project Management

2209 Lombard Street, San Francisco, CA 94123

6

JUNE 2020 | SF APARTMENT MAGAZINE

415.608.3050

berendtproperties.com

magazine

SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112 Email sfaa@sfaa.org

Web www.sfaa.org

SFAA Staff Executive Director Janan New

Deputy Director Vanessa Khaleel

Education Specialist Stephanie Alonzo Member Services Manager Maria Shea

Government and Community Affairs Charley Goss

Accountant Crystal Wang

SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

Secretary Mark Henderson

SFAA Directors Eric Andresen, Honor Bulkley, Andre Ferrigno, David Gruber, Kent Mar, Neveo Mosser, J.J. Panzer, Bert Polacci,

VOLUME XXXIII, NUMBER 6 JUNE 2020 Published by Hippo Productions Publisher Vanessa Khaleel Editor Pam McElroy

Art Director Jéna Safai

Production Manager Cameron Shaw Tel 415-392-3770

Web www.sfaa.org SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California. POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102.

The SF Apartment Magazine is published monthly for $65 per year by the San Francisco Apartment Association (SFAA), 265 Ivy Street, San Francisco, CA 94102. The SF Apartment Magazine is not responsible for the return or loss of submissions or artwork.

The magazine does not consider unsolicited articles. The opinions expressed in any signed article in the SF Apartment Magazine are those of the author and do not necessarily reflect the viewpoint of the SFAA or SF Apartment Magazine. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal service or other expert assistance is required, the services of a competent person should be sought.

Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by the SFAA, express or implied, of the advertiser or any goods or services offered. Published monthly, the SF Apartment Magazine is distributed to the entire membership of the SFAA. The contents of this magazine may not be reproduced without permission.

Publisher disclaims any liability for published articles. Printed by Jostens Printing Co. Copyright @2020 by SFAA.

Susan Sangiacomo, Dave Wasserman

SF APARTMENT MAGAZINE | JUNE 2020

7

COLUMN

THE NEWS

“With so much uncertainty and anxiety among rental housing providers during the pandemic, it’s easy to have lost focus on campaign season. However, Prop 10 2.0 has already qualified for the November ballot and represents another attempt by the Aids Healthcare Foundation to impose vacancy control on all rental housing statewide. It’s important that SFAA members fundraise and fully contribute to the Californians for Responsible Housing campaign as soon as possible in order to defeat this misguided and harmful ballot measure,”

Exceptions to the Rule

Some rental properties are exempt from AB 1482. Find out which ones are exempt and how to keep them that way.

director at SFAA. The measure, also dubbed Prop. 10 2.0, would weaken Costa Hawkins, allowing cities and counties to impose rent control however they choose—even below the rate of inflation—on buildings fifteen years or older.

Editor’s Note: State and Federal guide-

However, don’t forget to give this

The cost of the campaign battle will be

lines and legislation are constantly

disclosure to existing renters in single

around $70 million. Ultimately, the ask

changing regarding COVID-19 and the

family homes and condos by July. For

to fund the campaign is $100 per unit

shelter-in-place order. For the latest

existing members, use the California

owned or managed; however, we know

information, resources, financial aid,

Apartment Association form avail-

rental property owners are suffering

and forms, visit www.sfaa.org or www.

able for members (www.caanet.org/

losses due to COVID-19 and may not

caanet.org/coronavirus.

ab1482/ ). If you do not provide this

be able to contribute the full amount

notice, your unit is not exempt.

at this time. Anything helps though, so even small donations at this point will

Certain properties are exempt from AB

go a long way.

1482—the statewide rental law passed in

To determine whether your property

2019. According to the ordinance, most

is exempt from AB 1482 rent caps and

single family homes and condos are not

to download the CAA form, visit www.

Please go to www.SFRH.org or www.

subject to rent control if the owners or

caanet.org/ab1482/.

sfaa.org for additional information.

dents a disclosure by July 2020, and then

Rental Affordability Act

SB 1410

to all new residents thereafter.

California voters will decide whether or

CAA-sponsored legislation to help both

not to pass the Rental Affordability Act—

landlords and renters endure the finan-

SFAA has added this disclosure to the

Michael Weinstein’s latest anti-housing

cial difficulties brought on by COVID-19

2020 lease, so anybody using this new

measure—on the November ballot. CAA

is now in print. Senator Lena Gonzalez

lease is already fulfilling this require-

and SFAA are preparing another cam-

(D-Long Beach) introduced SB 1410, the

ment for new renters. For any tenancy

paign to prevent radical rent control and

COVID-19 Emergency Rental Assistance

commenced or renewed on or after

vacancy control from becoming law and

Program. Under the bill, the state of

July 1, 2020, this notice must be pro-

further exacerbating the state’s home-

California would make direct rental

vided in the rental/lease agreement.

lessness crisis.

payments to help tenants who cannot

property managers give all existing resi-

8

says Charley Goss, government affairs

JUNE 2020 | SF APARTMENT MAGAZINE

ALLISON CHAPLEAU M U LT I - U N I T. M I X E D - U S E . C O M M E R C I A L .

JUST LISTED

266 19th Avenue, San Francisco 6 Units in the Central Richmond $2,595,000

937 Haight Street, San Francisco 4 Units in the Upper Haight $1,995,000

2924 Sacramento Street, San Francisco 3 Units in Pacific Heights $3,850,000

1295 47th Avenue, San Francisco 12 Units in the Outer Sunset $4,999,999

LISTED & SOLD

80 Duncan Street, San Francisco 4 Units in Bernal Heights | $2,672,000 Represented Seller

1446-1448 14th Avenue, San Francisco 4 Units in the Inner Sunset | $2,100,000 Represented Buyer

3945 20th Street, San Francisco 6 Units in Eureka Valley | $2,800,000 Represented Buyer

2105 20th Street, San Francisco 3 Units in Potrero Hill | $3,480,000 Represented Seller

219-221 Ashbury Street, San Francisco 3 Units in NOPA | $1,853,000 Represented Seller

1204 6th Avenue, San Francisco 4 Units in the Inner Sunset | $2,650,000 Represented Seller

1960 Fulton Street, San Francisco 8 Units in Lone Mountain | $3,500,000 Represented Buyer

574 5th Avenue, San Francisco 5 Units in the Richmond | $2,700,000 Represented Seller

943-945 Haight Street, San Francisco 3 Units in the Upper Haight | $2,075,000 Represented Seller

1821 Hyde Street, San Francisco 5 Units in Russian Hill | $2,850,000 Represented Seller

1031-1039 Scott Street, San Francisco 9 Units in Alamo Square | $4,675,000 Represented Seller

2456 Steiner Street, San Francisco 3 Units in Pacific Heights | $5,995,000 Represented Seller

451-453 26th Avenue, San Francisco 3 Units in the Richmond | $3,100,000 Represented Seller

2040-2048 Taylor Street, San Francisco 5 Units in the Russian Hill | $3,700,000 Represented Seller

3638 19th Street, San Francisco 6 Units in Mission Dolores | $2,675,000 Represented Seller

688-98 Corbett Avenue, San Francisco 6 Units in Twin Peaks | $1,830,000 Represented Seller

ALLISON CHAPLEAU Vanguard Commercial | Senior Vice President 415.516.0648 | allison@allisonchapleau.com | License: 01369080 SF APARTMENT MAGAZINE | JUNE 2020 ALLISONCHAPLEAU.COM

9

afford to pay their rent. SB 1410 would

This SB 1410 content was provided by the

The SFAA 2020 lease is now available.

cover at least 80% of unpaid rent attribut-

California Apartment Association.

Some updates include new language to

able to the pandemic.

Commercial Vacancy Tax on Hold

comply with California’s rent control legislation (AB 1482, “Tenant Protection Act”)

Gonzalez said her legislation aims to

San Franciscans voted in favor of a retail

that passed in October 2019, and recom-

provide economic security—both for rent-

vacancy tax in March 2020, which was

mendations from SFFD and Recology.

ers and housing providers—during this

scheduled to go into effect on January 1,

unprecedented time. “COVID-19 has im-

2021. Owners of commercial space that is

SFAA members can pay to receive a hard

mensely affected our economy, put pres-

vacant for more than 182 days will be taxed,

copy of the SFAA Residential Lease Agree-

sure on both tenants and property owners

according to the new law.

ment or receive a PDF version via email.

Eric Andresen—SFAA board member and

to fulfill their payment obligations, and has exacerbated the need to keep people

The San Francisco Board of Supervisors

former president—details the changes to the

housed during an existing housing crisis,”

just voted to delay this tax for almost a

new lease in “Agree to Agree” on page 40.

Gonzalez said in this news release. “In

year. Supervisor Aaron Peskin wrote the

order to protect our broader housing econ-

measure to postpone the retail vacancy tax

Annual SFAA Trade Show has been

omy, SB 1410, an urgency measure, will

hoping to ease some of financial burden

rescheduled to August 20, 2020 at the

not only provide much-needed immediate

businesses and landlords are enduring be-

Fort Mason Center. Attendees will learn

assistance to both tenants and property

cause of the shelter-in-place mandate.

all about the latest trends, products and services in the multifamily housing indus-

owners but also protect our most vulnerable communities.”

Extensions for 1031 Exchanges

try. Consult with legal and management

With a 1031 exchange under usual cir-

professionals, get to know service provid-

Debra Carlton, CAA’s executive vice presi-

cumstances, a seller can defer capital

ers, improve your overall effectiveness

dent for state public affairs, added: “The

gains on the sale of an income-producing

at the free educational classes, and meet

COVID-19 pandemic has brought fright-

property if the proceeds are reinvested in

peers in the San Francisco rental property

ening and uncertain times, leaving many

a similar property that is identified within

market. The event is free and open to the

Californians with health challenges and

45 days of the sale, and then closed

general public, so bring your friends and

economic difficulties.

within 180 days.

enjoy! For more information on the tradeshow or to become a sponsor, contact vanessa@sfaa.org.

“Senator Gonzalez has offered a solution

The IRS released notice 2020-23, extending

that will help housing providers continue

deadlines for 1031 exchanges (and like-

to pay their bills, and their employees,

kind exchanges) that fall within a certain

The SFAA Rent Forbearance Form and

while also making it a little easier for

timeframe. If the 45-day identification

information on temporary rent reductions

struggling renters to get back on their feet

period deadline is between April 1 and July

are available at www.sfaa.org. If a tenant

financially when the pandemic ends.”

14, then the deadline is extended to July 15,

has told you they are unable to pay full rent

2020. If the 180-day closing date is between

due to COVID-19, use this form to detail the

Eligible renters for the temporary CO-

April 1 and July 14, then the deadline is ex-

financial hardship, the agreed-upon reduc-

VID-19 Emergency Rental Assistance

tended to July 15, 2020.

tion, and length of time of the reduction.

demonstrate, as determined by the De-

Delayed Property Taxes

For more information on how to help your

partment of Housing and Community

After hearing from SFAA members, the

tenants in this difficult situation while best

Development, an inability to pay rent due

Board of Supervisors passed a resolution to

protecting yourself, turn to the Legal Q&A

to COVID-19 or a government response to

allow for property tax payments to be de-

on page 20.

the COVID-19 pandemic.

layed until City Hall reopens to the public.

Program would include those who can

This will give building owners additional

SFAA classes will be available online

Rental housing providers can participate

time to submit payment without penalty

during shelter-in-place. The San Fran-

in the program on a voluntary basis. Qual-

during this period of economic uncertainty.

cisco Apartment Association is happy to

ifying landlords would receive at least

Check sfaa.org regularly for updates.

announce that current CCRM students can continue their education during the

80% of the monthly rent the tenant owes for up to seven months, provided that

SFAA Updates

shelter-in-place right from home. We un-

they agree to not increase rent for the unit

SFAA is working round-the-clock to keep

derstand keeping up education is crucial

for a specified period; not charge late fees

the nonprofit running during shelter-in-

and want to assist our members to stay up

for the past due rent paid by the program,

place. Timely payment of membership

to date. Thus we will be setting up more

and not pursue any remaining rent owed

dues is necessary to help the association

webinars in the future. See the calendar

for the months paid by the program.

help you.

on page 48 for a full list of classes.

10

JUNE 2020 | SF APARTMENT MAGAZINE

Adam Filly

Exceeding Expectations

Apartments | Mixed-Use | Commercial

Available Properties

1372-1374 Jackson St | 3 Units | Nob Hill

1345 California St | 8 Units | Nob HIll

1022 Shotwell St | 4 Units | Inner Mission

3062 22nd St | 3 Units | Inner Mission

6920 Commerce Blvd | 20 Units | Rohnert Park

5 Property Coliving Portfolio

As we find our way through difficult times it is more important than ever for you to have the best advice and representation.

Call Adam for a confidential pricing analysis of your building or to consult on any real estate matter.

Adam Filly Senior Vice President | m: 415.516.9843 | adam@adamfilly.com DRE 01354775 | www.AdamFilly.com Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed.

SF APARTMENT MAGAZINE | JUNE 2020

11

MARKET VIEW

COLUMN

The Big Unknown w r i t t e n b y JAY GR E E N B E RG

As we look forward to the market re-opening, the million-dollar question is what kind of market will we be returning to.

I

high at $88.5 million in 2017 and $74 million in 2018, before dropping to $48 million in 2019, the lowest figure we had seen in five years. In 2020, dollar volume rebounded strongly to $82 million at the close of the first quarter, a 70% increase in a year-over-year comparison. Transactions increased from 21 in 2015, to 29 in 2016, and 33 in 2017, before dropping

am writing this article in late April,

5-9 Units

to 23 in 2018 and again to 17 in 2019.

while the shelter-in-place statue

The average price per square foot was

In 2020, we rebounded with 25 transac-

remains in force. 2020 started off

approximately $453 in 2015 before

tions, a 47% increase in a year-over-

with escalating pricing levels and

jumping to $545 in 2016. This average

year comparison.

solid transaction momentum coming

slipped to $521 in 2017, rose to $557

out of fourth quarter 2019, only to be

in 2018, and dipped again to $541 in

10-Plus Units

completely shut down by mid-March.

2019. In 2020, the average cost per

The 10-plus-unit sector statistics

The statistics through the end of the

square foot rose again to $578, a 6.84%

follow the same pattern as the 5-9-unit

first quarter 2020 are reported in this

increase in a year-over-year compari-

sector, with all value indicators and

article, regarding dollar volume, num-

son and the highest average we have

sales stats increasing in a year-over-

ber of transactions, and value indica-

seen in a decade. Gross Rent Multipli-

year comparison.

tors, and it will provide a glimpse of

ers (GRM) have steadily increased over

where the market was before every-

the past five years, with a significant

The average price per square foot has

thing came to a screeching halt.

pull back in 2019. GRMs were approxi-

been mostly climbing from the bottom

mately 17.21 in 2015, 17.38 in 2016, 18.48

of the market in 2009. The average price

Subsequently, we have been stuck

in 2017, and 19.48 in 2018. In 2019, the

per square foot was $464 in 2015, $545

in no man’s land while politicians

average GRM dropped significantly

in 2016, $556 in 2017, and $587 in 2018.

jockey for future votes with propos-

to 16.47, and in 2020 this number re-

In 2019, the average price per square

als and legislation. The most impor-

bounded to 17.17, a 4.25% increase in a

foot dropped to $523 before rebound-

tant proposed legislation facing our

year-over-year comparison.

ing again in 2020 to $621, a 19% increase

industry is the revamped Prop. 10

in a year-over-year comparison. Gross

from two years ago, now titled the

The average cost per unit has bounced

Rent Multipliers dipped from 17.67 in

“Rental Affordability Act” which was

up and down over the past five years.

2015, to 16.92 in 2016, and 16.44 in 2017.

unanimously rejected by voters. If the

The average cost per unit was $390,000

The trend reversed in 2018 with an aver-

“Rental Affordability Act” passes in its

in 2015 and increased 20% to $491,000

age GRM of 18.28 and then fell again to

current form, there will be vacancy

in 2016, setting a new record. In 2017,

13.56 in 2019. In 2020, the average GRM

control for San Francisco landlords.

this number pulled back to $448,000 be-

rebounded to 17.02, a 25% increase in a

The COVID-19 health emergency has

fore increasing to $503,000 in 2018 (an-

year-over-year comparison.

commanded much attention, and I

other record) and then decreasing again

urge apartment owners to not lose

to $472,000 in 2019. In 2020, the average

The average cost per unit had been

sight of this very important upcoming

price per unit came in at $533,000, a

trending upward for four years and

piece of legislation.

12.83% increase in a year-over-year com-

then reversed in 2019. The average

parison and the highest unit price we

price per unit was approximately

have seen in a decade.

$391,000 in 2015, $427,000 in 2016, and

The following are 2020 first quarter statistics ( January – March) for the 5-9-

12

million in 2016. Dollar volume remained

$455,000 in 2017. The trend reversed

unit sector and the 10-plus-unit sector

Dollar volume for the 5-9-unit sector

in 2018, with the average cost per unit

versus the same time period for 2015

was approximately $55 million in 2015

dipping to $439,000, and again in 2019

through 2019.

before jumping significantly to $85

to $414,000. In 2020, the average price

JUNE 2020 | SF APARTMENT MAGAZINE

John Antonini

+

Daniel Foley

Multifamily + Mixed-Use + Add-Value

Just Listed

Just Sold

3941 Irving Street

4 Units | Sunset District $488/ft, One Vacant Unit

3049 California Street

4 Units | Lower Pacific Heights All Four Units Delivered Vacant

1251 20th Avenue

6 Units | Sunset District 12.81 GRM, 5.06% Cap Rate

Call for a FREE valuation of your property.

John Antonini

415.794.9510 john@antoninisf.com DRE 01842830

Daniel Foley

415.866.7997 daniel@danielfoley.com DRE 01866714 SF APARTMENT MAGAZINE | JUNE 2020

13

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate.

GRMs

25

per unit jumped to $488,000, a 18% year-over-year increase and the highest 5-9 Units

20

10+ Units

15

average in a decade.

Dollar volume in the 10-plus-unit sector hit approximately $130 million in 2015

10

before dipping drastically to $69 million

5

in 2016. Dollar volume rebounded significantly to $103.5 million in 2017 and $171

0

2016

2017

2018

2019

2020

Source: CoStar Comps

Q1

million in 2018. In 2019, we saw a decadelow dollar volume of $57 million before it increased dramatically to $236 million in 2020, a 311% increase in a year-over-year comparison. There were 17 closed transactions in 2015, 11 in 2016, 14 in 2017, and 21

Price Per Sq. Ft.

in 2018. In 2019, there was a record low of 6

$640

transactions before bouncing to 21 closed

$620 $600 $580

5-9 Units

transactions in 2020, a 266% increase in a

10+ Units

year-over-year comparison.

$560 $540 $520

The sources of the numbers reported are from Jay Greenberg, Trigg Splenda, San

$500

Francisco Multiple Listing Service, and

$480 $460

2016

2017

2018

2019

Costar Comp.

2020 Q1

Source: CoStar Comps

In Summary All value indicators, transactions levels, and dollar volume increased in a yearover-year comparison for both reported

40

sectors. The market experienced a signifi-

Transactions

cant rebound compared to 2019 figures, and there was positive momentum moving

YTD 5-9 Units

30

forward. The numbers for first quarter

YTD 10+ Units

2020 are very impressive, especially when

20

you consider the market shut down prior to the end of the first quarter. It is worth

10

noting that some of the year-over-year increases are absurdly high, and this is due

0

2016

2017

2018

2019

to a very weak first quarter in 2019.

2020 Q1

Source: CoStar Comps

I hope that by the time you read this article, our markets have re-opened and that we are all back at it. But the

$300

million-dollar question is what kind of

Volume Millions

$250

market will we be returning to.

YTD 5-9 Units

Eviction moratoriums for the health emer-

YTD 10+ Units

$200

gency have been mandated. Rent decreases have been proposed, and there is a bill

$150

coming to vote in November known as the

$100

“Rental Affordability Act” (RAA). This bill

$50 $0

should be on everybody’s radar.

2016

2017

Source: CoStar Comps

14

JUNE 2020 | SF APARTMENT MAGAZINE

2018

2019

2020 Through Q1

The RAA initiative comes two years after the defeat of 2018’s Proposition 10:

THE JONES TEAM Ethical. Human. Local.

T

S

O

L

D

We Offer Creative Solutions for a Fast Paced Market

JUST SOLD IN LAKE STREET (1d)

175 21st Ave

JU

S

San Francisco, CA 94121

Purchased in 2014 for $6.0M & resold in 2019 for $9.5M. (58% gain in sales price, call for details).

Contact us for a complementary valuation on your building — whether buying, selling, or executing a 1031 Exchange, we can lead you in the right direction.

Call, text or email to start the conversation.

Terrence Jones

Isabelle Salvadori

Lic. #01343939 Terrence@TerrenceJonesSF.com TerrenceJonesSF.com | 415.786.2216

Lic. #01506910 Isabelle.Salvadori@gmail.com 415.596.0659

Senior Broker Associate

Sales Associate

SF APARTMENT MAGAZINE | JUNE 2020

15

five

“Housing Is a Human Right,” which would have repealed California’s Costa-Hawkins Rental Housing Act. About 60% of voters voted against Proposition10 in 2018. The following year, Governor Gavin Newsom signed AB 1482 into law, which caps the amount a landlord, owners of multifamily buildings (not built within the last 15 years),

ways to connect

and corporations that own single-family homes can raise rent.

The “Rental Affordability Act” will allow cities to expand current rent control restrictions to include vacancy control and whatever else our Board of Supervisors could concoct. Just as we did with Prop.

10, we need to fund the battle to win. The cost of the campaign battle will be around $70 million. The ask to fund the campaign is $100 per unit owned or managed. Please go to www.CFRH.org or www.sfaa.org for additional information.

SFAA will always be available by phone, email and in

person, but now you can connect with SFAA online, too.

Follow the happenings of your fellow SFAA members and find out the latest in the industry by connecting with SFAA

on Facebook. Search San Francisco Apartment Association and “Like” it to add it to your news feed. Follow SFAA on

Twitter at www.twitter.com/SFAptAssoc.

As always, we have exciting times ahead.

Wishing health and peace for everyone.

For additional information related to any data points and/or market news, please contact Jay Greenberg at jaygreenberg@apr.com.

Passthroughs

PAY! Take advantage of the Rent Board rules that benefit you.

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16sfaa."connect"filler.indd JUNE 2020 | SF1 APARTMENT MAGAZINE

2/18/11 10:59 AM

Listings and Sales

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For Sale | 1022 Shotwell Street 4 Units | $2,300,000 | Filly

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San Francisco’s #1 Aparment Broker 724 Battery Street | 415.890.0704 compass-cre.com | San Francisco | Los Angeles

SF APARTMENT MAGAZINE | JUNE 2020

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COLUMN

LEGAL Q&A

Hundred-Dollar Question w r i t t e n b y VA R IOU S AU T HOR S

Rent rebates or reductions may only be lawfully rescinded, canceled, or withdrawn if the rebate or reduction is given because of a tenant’s particular need or hardship.

Q. My longtime tenant recently of time for the reduction. The SFAA CO-

discovered that a newly placed tenant across the hall is paying $200 less than him in monthly rent, so he asked for a rent reduction. May I agree to a temporary rent reduction? What about offering him a rebate instead?

A. The law is very clear on this subject

20

Other property owners have been held liable when they offer a free month of rent or engage in other gimmicks to effectively lower the tenant’s initial rent obligation, only to later take away the incentive once market conditions pick up. Indeed, if you offer a month’s free rent for a one-year term, the Rent Board will say that the value of that month is then amortized over the 12-month period of the initial term and then lowers the base rent for all future months

VID-19 Forbearance Agreements may be

by that amount. As one judge put it, you

tailored to accomplish this objective.

cannot evade rent control by setting up a lease with a starting rent higher than

Rebates and incentives are also very

what the current market would justify

dangerous when given to dissuade ten-

in order to entice tenants to sign the

ants from leaving in a declining market

lease. Other incentives like handing out

or to entice new tenants to sign up at

a substantial gift certificate may also

an unattractive rent. About 20 years

draw a similar ire.

ago, a large apartment operator in San

and has recently been circulated by the

Francisco offered incoming tenants

The Rent Board policy is therefore quite

Rent Board in light of the COVID-19

“rent coupons” for use each month to

clear. Rent rebates or reductions may

crisis: A landlord who grants a rent

lessen their rental obligations. For in-

only be lawfully rescinded, canceled,

reduction due to market conditions

stance, Tenant A’s lease states that rent

or withdrawn if the rebate or reduction

makes that reduction permanent. This

is $1,200 per month, although similar

is given because of a tenant’s particular

means that future rent increases must be

apartments were not renting at that

need or hardship. A soft rental market

based off of the lowered amount, which

level. To induce Tenant A to sign the

is never a justification for a temporary

becomes the new base rent. In addition,

lease at this amount, the landlord of-

reduction in rent. So if you do grant a re-

the property owner is likely precluded

fered $1,200 worth of coupons for the

duction or offer an incentive in order to

from withdrawing or canceling the re-

first year of the tenancy. Consequently,

attract new tenants or to keep an exist-

duction at a later time.

Tenant A could submit a $100 coupon

ing tenant from moving due to a change

with each monthly rental payment,

in the marketplace, you risk making that

A rent reduction may only be rescinded

thereby only paying $1,100 out-of-

reduction or the value of the incentive a

or canceled if the tenant has requested

pocket during Year 1. This landlord

permanent component of base rent.

a temporary adjustment based upon an

subsequently discontinued the coupon

economic hardship specific to that ten-

program when the rental market im-

ant’s personal or household situation.

proved. Hundreds of affected ten-

For example, the tenant is laid off or is

ants then pursued massive litigation

ill (i.e., due to COVID-19), or encoun-

in protest. The Rent Board held that,

ters unexpected expenses to care for a

using this example of Tenant A, initial

member of the tenant’s home. In those

base rent was legally $1,100 per month

instances, the landlord and tenant

for every year of the tenancy because

should clearly document the hardship

the discount afforded by the coupon

and should spell out, in a signed writing,

incentive was to be permanently built

the amount of the reduction, why the re-

into the rental obligation and could

duction is being granted, and the length

not be legally withdrawn.

JUNE 2020 | SF APARTMENT MAGAZINE

—David Wasserman

Q.

A unit had two original occupants. One moved out a couple of years ago, and the remaining original occupant has had a couple different roommates who I’ve never interacted with. The last original roommate Legal Q&A… continued on page 60

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SIGHT UNSEEN written by

CHRIS ULEP

The silver lining of virtual property management.

Social distancing has had a profound effect on the real estate industry. As the country and economy moves forward with caution, we need to carry on with business even if we can’t meet face-to-face with prospects and residents.

Today’s technology makes it easier than ever to manage apartments remotely, especially if you move your entire workload to the cloud. An all-in-one property management software will help you get started with minimal fuss.

Software can help keep your website up to date, ensure potential residents can tour your properties (even during social distancing), create electronic leases, automate rent collection, and give your vendors and maintenance staff the tools they need to work independently and communicate with your office.

Put Your Websites to Work According to the 2020 National Multifamily Housing Counsil/Kingsley Apartment Resident Preferences Report, 80% of residential prospects will visit a property management website while apartment hunting.

When prospects visit your website, you need to give them what they’re looking for or they’re going to look somewhere else. The website needs to look professional, be updated with the latest property photos and descriptions, and provide accurate contact information for your office.

Now, if this were the year 2008, we could probably stop the conversation there.

But given the near ubiquity of smartphones, it’s vital for real estate professionals to recognize how people are accessing their content. The data paints the picture: 89% use a desktop computer while 83% use a phone. That means that most people are revisiting the same property management websites on different devices. So if they like what you’re offering, they’ll keep coming back. However, if your website isn’t mobile friendly, you will lose the huge swath of the population that’s browsing via smartphone.

22

JUNE 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JUNE 2020

23

There are also certain marketing tech-

you use Facebook, your tour can be held

niques you can use to increase response

live in front of many people and will be

Remote Payments, Communication and Maintenance Requests

rates on your website. One is called nudge

easy to save for future prospects to view.

Once a new resident is moved in, it’s

marketing. Nudge marketing is exactly

important to give them access to online

what it sounds like, giving visitors to your

On the other hand, platforms like FaceTime

portals to pay rent, request maintenance

site a little automated nudge to take action.

and Skype offer a personalized, one-on-

and communicate with your office. These

one experience. So, which style of virtual

portals allow you to manage properties

It’s best to use this strategy on the part

showing should you choose? Individual or

remotely, and they make payments and

or parts of your site where people spend

group? It’s a good question. Try both and

communications easy for you and your

the most time. For instance, if you know

see what works better for your community.

residents. For instance, you may want to send a notification to residents inform-

that your floor plans are where prospects spend most of their time, a nudge might be

In addition to virtual tours, self-guided

ing them that you can only accept emer-

a popup window that appears after a few

tours have become very popular, espe-

gency maintenance requests until social

seconds to help the prospect schedule a

cially in the residential market. These

distancing requirements have been lifted.

tour or get in touch with you. To do this, the

allow prospects to see the property at a

However, with the economic challenges

software powering your site needs to be

time of their choosing, even if it falls out-

we're all facing today, accurate accounting

equipped with the functionality to imple-

side of your normal office hours. This lets

and tracking of deferred payments is more

ment nudge marketing.

the prospect pick their own tour times

important than ever. Look for this feature

and dates. The downside is that you aren’t

in any software you explore.

If nothing else, your website needs to show

there in-person to answer questions, col-

people what it’s like to live in your commu-

lect their information, get to know them,

Letting residents submit maintenance re-

nity and give them a good reason to apply.

provide an application, etc. Nonetheless,

quests electronically via an app or portal

You should include a description of the

self-guided tours give prospects the free-

can give them increased peace of mind. It

neighborhood, stand-out amenities, social

dom to explore a unit even with social

allows them to send photos and a descrip-

clubs and activities held at or organized by

distancing mandates in effect. And of

tion of the problem, which in turn makes

the property, and positive property reviews

course, you can answer questions from

it easy for you or your maintenance staff to

from current and former residents.

a remote location.

find the right solution. Plus, when both your office and residents can track the progress

The more informed potential residents are,

The simplest way to offer self-guided tours

of a work order online, as they can with a

the better your chances are of filling vacan-

is to put the key in a lockbox and give pros-

maintenance app, everybody wins.

cies with residents who will be a great fit in

pects the code. More advanced technology

your properties.

offers built-in ID verification, smart locks for secure entry at a specific time and smart

Offer Virtual and Self-Guided Tours

Protect Vendors and Maintenance Staff

thermostats/lights so your remote staff can

Vendor communication and manage-

Virtual tours are an easy way to showcase

optimize property settings during the tour.

ment tools are just as important as resi-

your properties to as many people as pos-

dent tools. You want to send electronic

sible with as little work as possible. How-

Take Leasing Online

ever, there are a few things to learn before

Online leasing is one of the fastest and

whenever possible. A fully integrated

getting started.

easiest ways to turn a prospect into a

system enables you to link a contractor

renter. E-signatures let property manag-

to a maintenance request, communicate

A virtual tour can be held live or pre-

ers and residents sign and renew leases,

with that vendor and pay them, all from

recorded and uploaded online. Don’t look

sight unseen. However, if you can’t meet

within your system and without face-to-

at it as a replacement for high-quality pho-

a renter, whether due to social distancing

face interactions.

tos and descriptions, but as an addition

or simply because they’re moving in from

to those assets. If someone signs up for

another area, how do you know they are

Likewise, maintenance apps for techs

a tour, you can assume they have a high

who they say they are?

ensure that you can get vital work done at your properties without having to

level of interest in the property—these are your most valuable prospects.

notifications and payments to vendors

The answer is with ID verification

physically meet with anyone at the office.

technology. This sophisticated tool

Vendor, maintenance and even resident

Even if you don’t have videos on your web-

can authenticate a prospect just by

apps retain permanent records of all com-

site, it’s easy to host a live virtual tour. All

scanning their driver’s license and

munications so you can keep important

you need is a smartphone and a free video

other identification documents. It can

financial documents in one system.

service such as Facebook Live, Skype or

even scan selfies, comparing that

FaceTime. Using these services, videos can

scan to submitted ID documents and

be filmed and even recorded for free. If

other identifying information.

24

JUNE 2020 | SF APARTMENT MAGAZINE

Chris Ulep is the vice president at Yardi. He focuses on product development and marketing.

He can be reached at sales@yardi.com.

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© 2020 Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity SF APARTMENT MAGAZINE | JUNE 2020 Act. Each Office is Independently Owned and Operated. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

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JUNE 2020 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | JUNE 2020

27

A BREAK in the FOG

w r i t t e n b y T E R R E NC E JO N E S

Despite San Francisco grinding to a halt, this writer remains optimistic that the city’s future and real estate market will come back fast and strong.

As I write at my home office today, the forty-sixth day of the city’s shelter-in-place (SIP) order, I feel that we are most definitely navigating in uncharted real estate waters. Since the order took effect, we’ve seen a significant change in the market. New listings, those newly in contract, and actual closes of escrow for apartment buildings have slowed to a trickle.

But before I dive into the sales atmosphere, I’d like to talk about rents. Rents ultimately drive the value of income property. However, the SIP has put many out of work, making it hard for renters to pay their rents. And then the mayor placed a moratorium on evictions for non-payment of rent during the crisis. This has definitely affected revenue for building owners. An April San Francisco Chronicle article noted, “Nearly 6% of San Francisco tenants were unable to pay April rent because of income lost due to the coronavirus pandemic and the shelter-in-place order that has brought economic activity to a halt throughout the region, according to a survey from the San Francisco Apartment Association. The survey of 315 landlords who own 10,377 units citywide found that 596 residential residents, or 5.7%, were unable to pay all or part of their April rent because of the coronavirus and its impacts.”

J.J. Panzer, an SFAA board member, said in the article, “It’s better than I would have expected…I thought there would be an avalanche.” Another director at SFAA said that “only about 3% of his tenants said they could not pay rent due to coronavirus.” I comanage a building with Meridian, and we were lucky: all our tenants paid their rents in April. However, as the SIP drags on, the expectation is that in May the number of tenants who will not pay their rents will be much higher, as those who lost work in the hotel, restaurant, and other smaller businesses start to run out of their savings.

I asked Danny Liu who works at Corcoran Global Living and leases units of all shapes and sizes in San Francisco what he has seen since the SIP order. He notes, “The big difference in the market since the SIP is that the demand is much lower than it usually is at this time of year. There just aren’t that many lookers.” He thinks that people who are sheltering in place are not moving like they normally do in the spring, to a better apartment or a less expensive apartment, because it

28

JUNE 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JUNE 2020

29

would be a huge hassle to move during

to get shut down were those attractive

In the intermediate term, after speaking

the shelter-in-place order. They are mov-

on-site amenities. At the same time, the

with some of the larger landlords in San

ing only if they have a really good reason

walk to work was eliminated as companies

Francisco, I expect that after the SIP order

to move, like a break-up with a romantic

directed their employees to work from

is lifted, we’ll see a 10% to 20% reduction

partner or a roommate they really, really,

home. In fact, Amazon has asked all their

in closing prices. The higher reduction in

really cannot stand any longer.

workers to work from home until Octo-

price would be in areas like the Tenderloin

ber. The net result is that renters are stuck

where the operations are more challenging.

Under the Department of Real Estate rules

in their high-end, relatively small living

In areas like the Marina and Hayes Valley,

now in effect, agents can only show vacant

spaces with only Netflix and high-speed

the buyers I spoke to expect less impact on

units, so this is also complicating and slow-

internet to distract them. Unfortunately,

prices in those markets.

ing the rental process for lease agents. Typi-

many of them see tent encampments when

cally, in the pre-pandemic world, renters

they look out the windows of their own

The longer term is another story. I believe

and owners would work together to show

buildings, while their friends, who live in

we will come out of this crisis after the

occupied units while the existing tenant

older, traditional neighborhoods like the

summer, stronger and faster than in other

is in place. Many owners in San Francisco

Marina, Hayes Valley, Marin, and Orinda,

markets that have been hit much harder by

would even offer a cash incentive to the ex-

are able to go on long walks because their

COVID-19, like Boston, New York, and New

isting tenant that, if the owner can show the

units are near large parks or along the

Orleans. The Bay Area has done a com-

occupied unit and is able to get a new ten-

beaches. And realistically, until there is a

mendable job in flattening the infection

ant without any gap in time, would result

cure for COVID-19, we might see ourselves

curve due to quick and decisive action at

in a bonus to the tenant. When that system

under a SIP order again, perhaps as early

both state and local levels.

works well, tenant A moves out on April 30

as this fall or winter. When this is over,

and tenant B moves in on May 1. But under

Inna thinks those tech workers will leave

I recently looked at the Center for Disease

the pandemic rules, the unit can’t be shown

their high-end digs, en masse, and move to

Control website and the statistics for San

until it is 100% vacant, so instead, tenant A

those other areas where they’ll have more

Francisco and California, as of mid-May, are

moves out on April 30, but tenant B doesn’t

space inside and outside. As Inna puts it,

pretty good. Compared to other hot spot

move in until the middle or end of May,

“These buildings may be a great landing

states, the rate of actual COVID-19 deaths in

and the owner loses money. Despite these

site for people who just moved to San

California is very low, particularly for one

restrictions, Danny says he is surprised to

Francisco and get their first job, but soon

with such a high population.

see that his clients are not having to drop

enough, they move out to a different part

rental rates to get units rented and the total

of San Francisco that offers more charm,

number of listings are about the same as he

bigger homes with the added perk of rent

sees at this time of year.

control, and where the entire neighborhood becomes their amenity.”

I talked with Inna Rubinchik this past

Number of deaths per state:

State

Deaths

1. New York

21,000

2. New Jersey

9,000

3. Michigan

4,500

week, and we discussed an interesting

In talking with buyers and sellers, I have

theory about how the high-end, newly con-

repeatedly been asked, what will this do

structed rental market will likely respond

to the sales market? In the very short term,

to the shelter-in-place experience. Inna

the sales that were in contract before the

4. Massachusetts

5,100

specializes in rentals at Compass and works

SIP order have seen renegotiation of the

with both larger building owners and indi-

sales prices while in escrow. Buildings with

8. California

2,500

vidual unit owners to rent higher end units

5-plus units have seen many renegotiations.

in San Francisco and Marin counties.

At the low end, a contingent-free sale from

When I drilled deeper into individual

another apartment broker I know saw a 2%

counties within California, the San Fran-

In San Francisco, many of the new con-

re-trade. Re-trades of contingency-free con-

cisco story looks even more hopeful with

struction rentals are located in the South

tracts are extremely rare. Other brokers in

only 35 fatalities.

of Market area near technology jobs (think

the market have had requests to re-trade for

LinkedIn and Salesforce). When tenants

as much as 10% below in the contract price.

moved in at $15,000 and up per month, the

One of my sales—a 20-unit building that

sales pitches were “New, New, New,” “walk

State

Deaths

went into contract pre-SIP in Oakland—was

1. Los Angeles County

1,500

to work,” and “on-site amenities” like

re-negotiated down by 6%, accepted by the

2. Riverside County

215

swimming pools and work-out facilities.

seller, and is now expected to close next

The simplicity of pre-SIP living allowed

week. In the very short term during the SIP

3. San Diego County

175

the renter to never leave their spaceship

(which is now extended to the end of May),

4. Santa Clara County

125

except to take a short walk to work. But in

we are seeing a 5% to 10% drop in closing

the COVID-19 world, one of the first things

prices and we expect this trend to continue.

12. San Francisco County

35

30

JUNE 2020 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | JUNE Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

31

restaurant here and at a reasonable price.

$/SF $600 $550 $500 $450 $400 $350 $300 $250 $200 $150 $100

I love my mission burritos, Indian in the Tenderloin, Thai on Clement, dim sum everywhere, Korean at that hole in the wall in the Richmond District, and of course, lumpia. And the city is well-known for its fine-dining and multiple Michelin stars. $/SF Average 6.6%

Since SIP, we’ve been discussing in our brokerage sales meetings whether the post COVID-19 multi-unit building sales

2005

2007

2009

2011

2013

market recovery shows a “U” shaped slow

2015

rebound in prices or if it will have more of a “V” shaped quick rebound. If you look at

$/Unit $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $-

the last big downturn in the economy back in 2008 (see charts) there was a slow drop in sales figures reported in price per unit ($/Unit) and price per square foot ($/SF), then a flattening, and slowly a return to the pre-2008 levels by 2011. This is referred to as a “U” shaped recovery. $/Unit

At this point, while we’re all still shelter-

Average 6.8%

ing-in-place, it’s difficult to tell the shape of our recovery, but I’m placing my bet on a V-shaped recovery that is quicker than the other major markets in the rest of the U.S.

2005

2007

2009

2011

2013

2015

because of our quick action in flattening the curve, the continuing high number

With so much uncertain and dire news na-

it has been washed clean by one of the

of tech jobs, and of course, our stellar

tionwide, these numbers make San Fran-

best natural HEPA filters on earth, which

weather, food, and quality of life. Although

cisco a more desirable place to live than

keeps our fresh air nearly smog-free. We

I do think that when the SIP order is lifted,

many others. For example, what if you

had this before SIP, and we will continue

we are likely to see a 5% to 10% drop in

were a recent college graduate and you

to have it after it’s been lifted.

prices from the pre-COVID-19 days, I remain optimistic about our future and I

had job offers at Uber San Francisco and Google New York? Which one would you

Having spent time in New York and

expect the San Francisco market will come

choose? For me, the current statistics for

Hong Kong when I was younger, I can

back faster and stronger when compared

San Francisco would be a strong factor in

appreciate that San Francisco benefits

to the rest of the United States.

my decision for where to start my career.

from an average annual temperature of 70 degrees with a high of 80 and a low of

At some point things will get better,

60. If you have ever shoveled snow during

but I think San Francisco will continue

a New Jersey winter or sweated through

to hold its appeal for tech companies

your dress shirt in a Hong Kong summer,

and well-paid young workers, who will

you will understand the value of the mild

rent units and buy homes in our severely

Bay Area climate.

supply-constrained market, even as other markets struggle.

Another great reason to be optimistic about the real estate market in San

And there is always the Bay Area’s won-

Francisco is we are surrounded by great

derful year-round weather. We know that

food and entertainment. There is a wide

the great Pacific Ocean, through rain,

variety of theater and music of every type

water sequesterization, and UV light pulls

from the well-known to the just-starting-

out much of the air pollution originating

out. We have a world-class symphony and

from the prevailing air flow from Asia,

opera. And I defy you to find a coun-

so by the time it reaches San Francisco,

try whose food is not represented at a

32

JUNE 2020 | SF APARTMENT MAGAZINE

Terrence Jones is a Senior Broker Associate with Corcoran Global Commercial. He can be contacted at (415) 786-2216 or terrence@terrencejonesSF.com.

A game.

Be on your

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Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. All materials presented herein is intended for informational Purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice.

No statement is made as to accuracy of any descriptions. This is not intended to solicit property already listed.

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SF APARTMENT MAGAZINE | JUNE 2020

33

DATA DOESN’T LIE

w r i t t e n b y M AT T H E W C . S H E R I DA N

An in-depth breakdown of SFAA’s monthly rent survey findings and local and national unemployment statistics.

Just two weeks into San Francisco’s historic shelter-in-place order, April rent came due for tenants across the spectrum.

Imposed to stem the spread of COVID-19, the order resulted in the mass shuttering of businesses—shortly thereafter, employee layoffs and furloughs began. With moratoriums on evictions already in place and rent forbearance agreements inked, there was widespread concern that large numbers of tenants would soon be unable to pay their rent. By the second week of April, a survey conducted by the San Francisco Apartment Association of their membership showed that 5.7% of tenants were unable to pay all or part of April rent due to the COVID-19 crisis.

The true impact from the limitations on commerce were just beginning to be felt. Palpable anguish for some set in, concerned with how they were going to pay for the essentials: food, transportation, rent. While the survey showed a relatively small percentage of tenants struggling with rent, nearly all housing experts predict the numbers will increase significantly in the months to come.

“We’re expecting at least twice as many deferment requests in May, from what we received in April,” reported J.J. Panzer.

“In April, we only had 15, now it’s up to 30, Panzer said last month. Panzer, who owns and runs Real Management Company, says he hasn’t seen any lease breaks yet, but they’ve received notices to vacate related to COVID-19. “We’ve had a number of situations where individual roommates are vacating due to COVID-19, leaving one or two roommates desperately trying to find responsible replacements for their larger flats.”

Nationally, a report by the National Multifamily Housing Council found that 11% of apartment households were unable to issue partial or full rent payment by mid-April. The survey of 11.5 million units of professionally managed apartment units, showed the same figure a year ago was at 7%.

While components of the CARES Act provide some assistance to renters, San Francisco clearly benefits from two key elements unique to our city: a rent control ordinance that dates back to the 1970s and an enormous concentration of

34

JUNE 2020 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JUNE 2020

35

high-tech jobs. The portion of tenants living

Craig Berendt of Berendt Properties re-

“considerable risk” to the medium term

under rent control is significant here, and

ports that he hasn’t seen many tenants

economic outlook and implicitly signaled

for those lucky enough to remain holed

break their lease. “We’ve have had more

that the central bank does not anticipate a

up in their units for decades, the gift of far-

people move at the end of their lease

V-shaped recovery.

below market rent ensures a lifestyle and

though,” said Berendt. “We typically see

benefit few have elsewhere. For many San

about 10 move-outs each month in our

In San Francisco, 17% of apartment owners

Franciscans, rent control simply reduces

management portfolio—but now, we’re up

will be delaying paying their property taxes

their proportion of standard housing cost.

to a couple dozen moves a month.”

according to the SFAA survey and already some 5% have negotiated work-outs and

The sudden economic calamity impacting all of us, is slightly more palatable—in my

While the survey revealed that 5.7%

mortgage forbearance with their lenders.

opinion—thanks to rent control.

(596 total) of residential residents were

Meanwhile, in New York City, a petition has

unable to pay all or part of April rent

been launched by some landlords to coun-

On the other end of the spectrum are the

due to COVID-19, many respondents

ter the lost rents they are not receiving, with

oft-derided tech workers, fortunate to be in

reported that they expect this number

Tax Strike on local property taxes.

a position to easily work remotely and be

to rise significantly in the month of May.

employed in an industry that adapted in-

The average unpaid monthly rent by

SFAA intends to conduct monthly surveys

stantly to SIP. There are layoffs occurring in

tenants was $2,504. No surprise to any-

for the time being covering the rent collec-

tech, but for the time being, they are not sig-

one, 50% of commercial tenants were

tions, and the association and this maga-

nificant. These factors, along with San Fran-

unable to pay all or part of April rent

zine will report on the findings regularly.

cisco’s high standard of living, contribute

due. Berendt reports that all of his firm’s

to a dichotomy were tenants here are in a

commercial tenants requested some

For more information, or to participate

slightly better position to weather the storm

form of rent forbearance or forgiveness.

in next month’s SFAA rent survey, visit www.sfaa.org.

the coronavirus has brought, compared to elsewhere. It will get worse though.

Although some housing providers reported owning their property outright,

Nationally, the April jobs report is fore-

many expressed fear that they would be

casted to reveal the sharpest deterioration

unable to pay their expenses if the pan-

in the U.S. labor market since 1939—with

demic were to continue. Most expected

payrolls expected to show around a $22

they could continue to maintain their

million decline from March and an un-

properties and pay their expenses for be-

employment rate of 16%. By early May,

tween three and six months.

close to 4 million Californians had filed for unemployment over the previous seven

Housing providers with vacant units have

weeks—an astronomical number. San Fran-

either put their showings on hold or have

cisco is not immune from layoffs. Initial

reported that there are almost no inquiries

unemployment claims for the city rose

from prospective residents and essentially

to 44,306 in March—the previous month

no demand for apartments at this time.

February saw 3,303—well over a ten-fold

The inability to fill vacancies has com-

increase. Bear in mind, the SIP order was

pounded the financial impact of COVID-19

implemented in mid-March. Additionally,

on housing providers.

independent contractors, who were just granted new benefits under the federal

Some prospective tenants appear to be

stimulus package known as CARES, were

weathering the storm and seeking rentals.

only recently allowed to apply for unem-

“We’re getting multiple applications for

ployment in California.

most of our available units and most of the jobs we’re seeing from prospective tenants

SFAA’s survey conducted in April also

appear to be in industries that can weather

revealed that 16% of owners reported

the storm (tech, health care, etc.),” reports

residents broke their leases or had un-

J.J. Panzer.

expectedly given a 30-Day Notice to Vacate. Some 315 landlords responded to

Recent news that the first quarter Gross

the survey, owning or managing 10,377

Domestic Product contracted more than

residential apartments citywide, which

expected—almost 5%, led the Federal

represents 6% of the city’s 172,000 rent-

Reserve to issue a statement, which cau-

controlled apartments.

tioned that the coronavirus would pose

36

JUNE 2020 | SF APARTMENT MAGAZINE

Matthew C. Sheridan is an apartment building specialist with Newmark Knight Frank and is the emeritus editor and publisher of this magazine.

He can be reached at 415-273-2179.

SFAA needs

you.

Support SFAA’s legal challenges to unjust legislation by donating to the SFAA Legal Fund. SFAA needs to stay relevant to remain effective. Help to further grow the legal fund. It will make a difference. Check out www. sfaa.org/legal-fund.shtml to find out more. *SFAA Legal Fund donations are tax deductible.

Help Us, Help You. Sign up for SFAA’s Advocacy Team.

The SFAA Advocacy Team was created to defend the rights of San Francisco property owners. We are looking for volunteers to join our advocacy team.

Volunteers will receive training and be tasked with advocating for local building owners, speaking at legislative hearings and writing to legislators to share personal experiences.

We can change the conversation at City Hall! With your help, we can rewrite the landlord-tenant narrative and show how bad policy hurts small property owners.

For more info contact Charley Goss at 415-255-2288 x14 or charley@sfaa.org.

sfaa’s

TROPHY AWARDS November 19th, 2020

SAVE THE DATE

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SF APARTMENT MAGAZINE | JUNE 2020

37

COLUMN

MIGHTY SMALL

With Good Reason w r i t t e n b y K I L BY S T E N K A M P

cleaning. Some of his clients have

As we adapt in a changing world, approach every situation—rent or otherwise—with reason and, when necessary, consultation.

continued to pay him even though he’s

M

not currently cleaning for them. His employees take public transportation to get to work and that is also a huge concern. This month we’ve asked him to pay half his rent. We’re not decided on what we’ll do going forward. We discussed trading some of the rent

y family has circled the

warning notice from the PUC, which

forbearance for cleaning services. He

wagons. We’re hunkered

turned out to be a broken toilet flapper.

is concerned that if we choose forbear-

down in Sonoma with

The tenant did not want anyone in his

ance, he will never be able to catch

my parents to keep fam-

flat, so he diagnosed the problem and

up on back rent. This is a tenant who

repaired the toilet himself.

has been with us for six years. We just

ily close, share resources and one an-

renegotiated his initial lease term in

other’s company. I’ve been commuting back and forth to San Francisco, which

To date, we’ve had one residential tenant

the fall. He’s conscientious and has

has been a dream. Traffic has picked up

who was only able to pay half her rent.

been a model tenant. We don’t want to

some in the last few weeks, but nothing

We are regrouping next week with her.

lose him. I’m not rushing into any rent

like the last few years. I come and go to

The resident has requested to sign a new

forbearance or forgiveness decisions

check on properties, collect mail and do

lease at a lowered rent. We are not go-

without thoroughly thinking things

banking. I’ve got some real estate trans-

ing to agree to a new lease, but we may

through. I may consult a local landlord

actions pending, but not much coming

come to an agreement on a short-term

attorney to make sure the decisions I

up. Several sales got caught up in the

rent reduction or forbearance. I’m look-

make won’t come back to haunt us later.

current crisis and those are slowly clos-

ing for a balance, even though indica-

There are a number of good landlord-

ing. Fortunately, we don’t have any cur-

tors are that rents are maintaining and

tenant attorneys out there who can

rent vacancies, at least for now.

nationwide actually up. I’ve done a mas-

offer advice. You know your situation

sive amount of research on Rent Café,

and tenants better than anyone. Each

A friend, Irving, is in assisted living in

Zumper and other sites seeking informa-

situation is unique, make reasonable

San Francisco. He has been on lock-

tion. Rents are varying. In the resident’s

and well thought out decisions that are

down about a week longer than the rest

zip code, data shows a 4% decrease in

best for you and your property.

of us. The complex he lives in has been

rent. We like her, she gets along with

very proactive in protecting the resi-

the other residents, and we don’t want

We had one request for a dog due to

dents and we are very grateful for their

a vacancy right now. We would need to

shelter-in-place. I can’t reasonably deny

efforts. I’ve taken on the task of man-

find contractors to facilitate a turn and

the request as there are other dogs in the

aging Irving’s properties. There have

then we have the current challenge of

building. The tenant pays market rent, al-

been some challenges; his manage-

showing the property. A short-term ad-

ways on time. As long as it’s not a puppy

ment style was unique. Paperwork and

justment in rent would net more income

and we get a signed pet addendum,

keys were never his forte. So far, most

than the unknown down time. We may

we’re okay with it. I’m not thrilled with

of the tenants have paid rent. We’ll see

or may not capture the same rent. You

the idea of another dog in the building,

what happens next month. I’ve made

have to look at each situation differently

but all things considered, we’re going to

an effort to communicate with all the

and determine the best approach.

work with her.

able. Simultaneous to the lockdown,

A commercial tenant contacted us

Another tenant requested that we over-

we had a refrigerator break. Because it

about his rent going forward. He runs

ride the coin function of the washer/

was an emergency, we were able to get

a green cleaning business. As of SIP,

dryer. He said it has become difficult to

it replaced, but it took a few days. So

he is only doing move-in and move-

find quarters and they are unsanitary.

far that’s been the only emergency situ-

out cleans for the safety of his employ-

ation we’ve had. We did get a second

ees. He has a client base for regular

tenants and let them know we’re avail-

38

JUNE 2020 | SF APARTMENT MAGAZINE

Mighty Small… continued on page 50

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39

COLUMN

THE BOARD REPORT

Agree to Agree w r i t t e n b y E R IC R . A N DR E S E N

Protect yourself and your investment by using the updated 2020 SFAA lease agreement for new tenancies.

T

in attempts to perform commercial commerce from residential units, which is arguably illegal and already banned in the agreement. Regardless, the committee

he new 2020 Residential

tenant to provide proof of liability

added language banning receipt of com-

Tenancy Agreement was

insurance to cover any aggressive

mercial packages or packages related to

released in March with sev-

or damaging actions of the animal.

commercial activity.

eral changes and updates,

Other insurance covenants used in the

including new language to comply with

past versions of the agreement have

The parking clause has been updated

California’s major rent control legisla-

implied this requirement, but now it is

to clarify that tenants and their guests

tion (AB 1482, “Tenant Protection Act”)

specifically spelled out as follows:

cannot park illegally or block access when parking their vehicles. This

that passed in October of 2019.

“Prior to occupancy by the Tenant

includes parking across curb cuts,

At the top of page 1, there are now sev-

and/or of the animal, any animals

driveways, or other areas of the prop-

eral more lines to identify all tenants

allowed at the Premises or in the

erty. The agreement clearly states that

in the agreement. Many members had

Building or on the Property pursuant

vehicles can and will be towed.

asked for additional lines, as well as to

to this provision or as required by

uniformly standardize the number of

law shall obligate Tenant to provide

The committee asked the San Francisco

signature lines throughout the docu-

written documentation to Owner

Fire Department to provide feedback on

ment. As such, there are now six lines

confirming liability insurance policy

the agreement this year, and they sug-

for signatures and more space on page

coverage to provide for the inclusion

gested several edits that were incorpo-

1. There is also added space to list ap-

of the animal in reference to the insur-

rated. One edit is in relation to satellite

pliances or furniture, and longer lines

ance policy required pursuant to Sec-

dishes because firefighters have encoun-

to accommodate terms and amounts,

tion 42 of this Agreement.”

tered them on fire escapes and roofs, where they should not be. The com-

such as rent and deposits.

The agreement now contains spe-

mittee added language to the “Satellite

The next big update is in the “Pets”

cific language requiring tenants who

Dish” paragraph, which reads:

paragraph (19). There have been sev-

want assistive animals to comply with

eral cases where landlords have been

related laws and to complete the “As-

“Satellite dishes shall not be attached

challenged to prove that a specific ten-

sistive Animal Packet” provided by the

to or obstruct the immediate use of

ant’s animal has been making messes

lessor as a necessary term before per-

fire escapes, nor shall the wires from

in or around the property. The solu-

mission is granted for the animal.

any such satellite dish to the tenant’s unit be attached to or across the fire

tion was to use a DNA test in a couple

40

Operators have seen a dramatic increase

of cases, so the lease drafting commit-

Storage and packages have also be-

escape, nor shall they be allowed to

tee added some language placing the

come a greater issue for all operators.

create a tripping hazard on the roof,

responsibility of providing such DNA

This topic is relegated to not only

stairs, fire escapes, etc.”

on the tenant who has the animal. This

package deliveries, but also extends

is an interesting issue that has received

to where those packages end up being

With use of email becoming more and

some national attention given the fact

stored. The committee has updated

more prevalent, many owners have

that more people live with animals

language about how packages have to

asked if notice to enter can be made

now than ever before.

be received INSIDE a tenant’s unit, and

via email. The committee has also been

mandates that packages cannot be left

asked to make it clear that once permis-

The committee also added strict lan-

out in the common areas or stored in

sion to enter has been granted, it cannot

guage requiring the animal-owner

parking areas.

be rescinded just because the tenant will

JUNE 2020 | SF APARTMENT MAGAZINE

sfaa’s Landlord Communication & Documentation LANDLORD COMMUNICATION & DOCUMENTATION CLASS

Are you a good listener? As a landlord, do you offer different styles of communication to your tenant? Are you ensuring your tenant understands your expectations?

Have you documented all your conversations with your tenant? Your tenant broke something in the unit, has that been documented and put in the tenants file?

Come learn the best way to communicate and document with your tenant. This class will be taught by Kevin Greenquist of Counsel for Zanghi Torres Arshawsky LLP and he maintains a practice primarily focused on real property litigation with an emphasis on landlord-tenant issues. He has over 20 years of real property litigation experience in the San Francisco area and is familiar with the common pitfalls detrimental to the landlord’s interests when forced to litigate their rights.

DATE & TIME:

Wednesday June 18, 2020 2:30 p.m.-5:00 p.m.

LOCATION:

Fort Mason Building C, Room 235 COSTS:

Members: $65 Nonmembers: $85

For questions or to register, contact Maria Shea at 415.255.2288 x10 or maria@ sfaa.org You can also register online at sfaa.org Credit Card payment required for Non-Members. All cancellations must be made 72 hours prior to the class to receive a full refund.

Class

sfaa’s

Reasonable Accommodations REASONABLE ACCOMODATIONS CLASS

It is common to see animals in places that typically prohibit them. Local, state, and federal laws enable persons with disabilities to be accompanied by animals in public places—even where animals are prohibited—under certain circumstances.

The same is true with housing. A landlord may be required to allow a disabled tenant to have an animal, or accommodate another request due to a disability, even when the rental agreement strictly prohibits the actions (e.g. pets, medical marijuana, etc.). Join Fried & Williams’ Steven C. Williams as he discusses how to deal with tenants requesting special accommodations. You will learn more about accommodations for medical marijuana, hoarding, service and emotional support animals, and more and how to determine what is reasonable.

DATE & TIME:

Wednesday June 24, 2020 2:00 p.m.-4:30 p.m.

LOCATION:

Fort Mason Building C, Room 235 COSTS:

Members: $65 Nonmembers: $85

For questions or to register, contact Maria Shea at 415.255.2288 x10 or maria@ sfaa.org You can also register online at sfaa.org Credit Card payment required for Non-Members. All cancellations must be made 72 hours prior to the class to receive a full refund.

Class SF APARTMENT MAGAZINE | JUNE 2020

41

2020 sfaa rental forms

FORM #

FORM TYPE

3.0

Application to Rent

Member Name Member # Email PRICE

PER 25/ $15

NON-MEMBER PRICE $40 pad of 25

SFAA 2019

SFAA Residential Rental Agreement – 2019

$20 each

10 for $180

$100 each

SFAA

SFAA Non-Rent Control Residential Tenancy Agreement

$20 each

N/A

$100 each

2.0

CAA Rental Agreement (Month to Month)

$15

$40 pad of 25

2.1

CAA Lease Agreement

$15

$40 pad of 25

SFAA

Short Term Rental Notice

$15

$40 pad of 25

2.2

Addendum to Rental Agreement

$15

$40 pad of 25

41.0

Guarantee of Rental Agreement

$15

$40 pad of 25

16.0

Move In/Out Form

$20 pad

$40 pad of 25

7.5

Notice of Initial Inspection to Residents

$15

$40 pad of 25

Protect Your Family From Lead (Pamphlet)

$2

$40 pad of 25

Bay Area Air Quality Management District Wood Burning Hazard

$15

$40 pad of 25

37.0-BA SFAA

Fire Safety Disclosure

SFAA Fire 1

Fire Safety Sign

Prop 65

Proposition 65 Brochure

Prop 65516

Proposition 65 Sign (plastic)

SFAA

Parking Agreement

$15

$40 pad of 25

$20 each

$15

N/A

$15

$40 pad of 25

$20 each

$16 for 3+

N/A

$15

$40 pad of 25

SFAA

Parking Agreement Non-Resident

$15

$40 pad of 25

Storage Agreement

$15

$40 pad of 25

13

Pet Agreement

$15

$40 pad of 25

60.0

Assistive Animal Request and Documentation Packet

$15

$40 pad of 25

60.1

Assistive Animal Addendum

$15

$40 pad of 25

36.1

Bedbug Notification

$15

$40 pad of 25

36.0

Bedbug Notification Addendum

$15

$40 pad of 25

SFAA

Neighboring Place of Entertainment

$15

$40 pad of 25

PM02

Emergency Procedure Information for Tenants

$15

$40 pad of 25

19.0

Twenty Four Hour Notice to Enter Dwelling Unit/Premises

$15

$40 pad of 25

SFAA

Thirty Day Notice Change of Monthly Rent

$15

$40 pad of 25

5.2

Sixty Day Notice Change of Monthly Rent

$15

$40 pad of 25

SFAA

Thirty Day Notice Change of Terms of Tenancy

$15

$20 each

SFAA

Three Day Notice to Pay Rent or Quit

$15

$20 pad of 25

SFAA

Three Day Notice to Perform Covenants of Quit

$15

$40 pad of 25

SFAA

Three Day Proof of Service

$15

$40 pad of 25

SFAA

General Proof of Service

$15

$40 pad of 25

2.3

Resident’s Certificate of Terms (Estoppel Certification)

$15

$40 pad of 25

21.0

Thirty Day Notice of Resident’s Intent to Vacate

$15

$40 pad of 25

SRT

Acknowledgement of Residents Intent to Vacate

$15

$40 pad of 25

18.D

Itemized Disposition of Security Deposit

$15

$40 pad of 25

SFAA

Security Deposit Interest

$15

$40 pad of 25

8.0

Notice of Belief of Abandonment

$15

$40 pad of 25

9.0

Notice of Right to Reclaim Abandoned Personal Property

$15

$40 pad of 25

10.0

Notice of Right to Reclaim Abandoned Personal Property ($700 or more)

$15

$40 pad of 25

PUBL

Managing Rental Housing in California Reference Guide (Book)

$50 each

$120 each

On-Site Employee Agreement (set)

$15

COST

pick up only

SFAA

1.2

QUANTITY

$40 pad of 25

SFAA Members can download and access forms directly from the SFAA and CAA websites. Please log in to account, go to Resources and click Downloadable Forms.

Internal Order Date: Use Only

Taken by: Credit Card

Cash

Prices listed are for SFAA members

42

Check

Invoice

Sub-Total: 8.75% Tax: Postage Flat Rate:

• Prices differ for non-members • All sales are final

San Francisco Apartment Association

JUNE 2020 | SF APARTMENT MAGAZINE 265 IVY STREET SAN FRANCISCO, CA

•

TOTAL:

• 94102 • PHONE 415-255-2288 • FAX 415-255-1112 • WWW.SFAA.ORG

OpenScope Studio 1776 18th Street San Francisco, CA 94107 openscopestudio.com info openscopestudio.com (415) 891-0954

• Multi-family specialists • Value add remodels • Accessory Dwelling Units • Physical needs assessments • Pre-purchase consultations • Feasibility and capacity studies • Interior / Exterior renovations • Urban infill • Mixed-use • Review Services

SF APARTMENT MAGAZINE | JUNE 2020

43

not be present. Here is the new language in

TALENT. COLLABORATION. SUCCESS.

the “Notice” paragraph: “Tenant agrees and understands that Owner can give 24-hour notice to enter via email. Tenant agrees to inform Owner in writing if Tenant changes their email address. Tenant agrees and understands that if the Owner gives 24 hours written notice under California Civil Code, Tenant cannot require that Tenant be present.”

In addition to the new language, the agreement contains space for the tenants’ emails addresses in the signature section.

The committee also asked Recology—San Francisco’s scavenger and recycling service—to review the agreement, and they

KILBY STENKAMP

have asked that language be included

kilby@vanguardsf.com

as well as the need to comply with recy-

about the disposal of large or bulky items

415.370.7582

cling programs. As such, the agreement

DRE# 01208585

includes the below line about Recology’s hauling service: vanguardproperties.com

“No cost removal of bulky items such as furniture, appliances or electronics is available to residents. Contact Recology at www. recology.com or call (415) 330-1300 for program information, limitations or to make a Bulky Item Recycling appointment.”

With increased seismic work and the encouraged development of additional dwelling units (ADUs), many owners have needed to relocate or change resident services or to relocate storage or parking options for tenants. This has resulted in tenant petitions at the Rent Board and in court, so a new paragraph has been added to the “House Rules” section to deal with these scenarios.

“53.10 Relocation/ Replacement of Services: With respect to any housing service which Owner may provide to Tenant outside

4

of the Premises in which Tenant resides, including, but not limited to, (1) garage facilities, (2) parking facilities, (3) driveways, (4) storage spaces, (5) laundry rooms, (6) decks, (7) patios, or (8) gardens on the same lot, or (9) kitchen facilities or lobbies in single room occupancy (SRO) hotels, and regardless whether such housing service

44

JUNE 2020 | SF APARTMENT MAGAZINE

is provided at the inception of the tenancy

Section 1947.12 of the Civil Code for more

or at any point in time thereafter, Owner

information. California law also provides

reserves and retains the right to relocate

that after all of the tenants have continu-

such service to any other location on the lot

ously and lawfully occupied the property

which contains the Premises, in Owner's

for 12 months or more or at least one of the

sole and absolute discretion. In the event

tenants has continuously and lawfully occu-

of such relocation, Tenant shall be given at

pied the property for 24 months or more, a

least 3 days’ notice of any such relocation,

landlord must provide a statement of cause

and, to the extent that any personal prop-

in any notice to terminate a tenancy. See

erty (e.g., vehicle or stored items) must be

Section 1946.2 of the Civil Code for more

moved, Tenant shall move all such personal

information. Nothing in this Addendum

property to the newly-designated location

should be construed as a representation

within 7 days of the service of such notice

that the premises being rented is in fact

of relocation by the Owner. Any failure by

subject to either Civil Code Sections 1947.12

Tenant to timely move all such personal

or 1946.2.

property shall be a material breach of this Agreement, warranting termination of the

Notice of Exemption from AB 1482 for

tenancy. Owner shall provide a comparable

Single Family Homes and Condos: YOU

housing service. Tenant has no right to have

ARE HEREBY NOTIFIED IN ACCOR-

any such housing service located in any

DANCE WITH CIVIL CODE 1946.2 that this

particular part of the Building. Tenant has

property is not subject to the rent limits

no right to have any such housing service

imposed by §1947.12 of the Civil Code and

located in any particular part of the build-

is not subject to the just case requirements

ing which contains the Premises.”

of §1946.2 of the California Civil Code.

This property meets the requirements of

The State Legislature has updated the com-

§1947.12 (d)(5) and §1946.2 (e)(8) of the

pliance requirements mandated by Propo-

Civil Code and the owner is not any of the

sition 65—the law that requires operators to

following (1) a real estate investment trust,

provide warnings about potential hazard-

as defined by §856 of the Internal Revenue

ous substances in the building. The new

Code; (2) a corporation; or (3) a limited li-

regulations allow lessors to provide a warn-

ability company in which at least one mem-

ing in the lease in the form of an addenda.

ber is a corporation.”

So the Proposition 65 Addendum is now included as an addenda to the document.

The new SFAA lease agreement continues the tradition of providing up-to-date pro-

Perhaps the biggest change to the lease

tections and important information that all

agreement, and the one that caused the

San Francisco residential property owners

late release of the 2020 agreement this

should feel comfortable with using. That’s

year, is language related to California’s

not to say that challenges won’t ever occur—

new statewide rent protection laws. Even

we’ve certainly learned that almost any-

though most San Francisco properties

thing can and will be challenged or held

were already covered under local rent con-

against us—but rental property owners who

trol measures, a disclosure is still required

use the SFAA agreement are in an optimum

and has been added at the end of the

position as they begin a new tenancy.

agreement. It is identified as an “Addendum” because that is what the new law re-

As always, we encourage SFAA members to

quires. There is also the option to identify

provide feedback and suggested edits. Feel

the exemption of single family homes. The

free to email vanessa@sfaa.org so that your

new addendum is as follows:

comments can be reviewed by the committee before the next agreement is produced.

“Addendum—AB 1482 Notice: If the premises is subject to the Tenant Protection Act of 2019, the following information is being disclosed to you: California law limits the amount your rent can be increased. See

Eric Andresen owns West Coast Property Management Company in San Francisco, has been a long-time member of the SFAA Board, has served as SFAA’s President and also Chairs the SFAA committee that reviews the Tenancy Agreement every year.

On the

list ...

Is finding a great

service provider on your To-do List? Check out the Professional Services Directory for experienced apartment industry professionals.

starts on page

52

SF APARTMENT MAGAZINE | JUNE 2020

45

sfaa?

sfaa 2020 Legal What You Need to Know 2020 SFAA UPDATES

UPCOMING MEMBER MEETINGS AND CLASSES During shelter-in-place, the monthly SFAA member meetings and classes will be held virtually. For member meeting topics and schedules, go to www.sfaa.org. For a list of virtual SFAA classes, turn to the calendar on page 48.

’s

Get Answers.

Confused about local and statewide rental housing laws? Take

SFAA OFFICE CLOSURE The SFFA office will remain closed during the shelter-in-place mandate. However, SFAA staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you.

advantage of SFAA’s legal information network. Before every SFAA General Membership Meeting, a diverse panel of San Francisco

SFAA TRADE SHOW RESCHEDULED The annual SFAA Trade Show has been rescheduled to August 20, 2020 and will be held at the Fort Mason Center.

For more information, turn to page 10. To sponsor the event, email Vanessa Khaleel at vanessa@sfaa.org.

landlord attorneys answers your questions about your property, your tenants and the Francisco Rent Ordinance. SFAA monthly meetings and legal panels are a benefit just for members, so make sure you are getting the most out of your membership and be sure to attend the next meeting.

San Francisco Apartment Association

265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

46

JUNE 2020 | SF APARTMENT MAGAZINE

FOR REAL-WORLD

Register To

SAVINGS ON YOUR

UTILITY BILLS

(877) 789-6027 comesave.livable.com/webinar

Learn about Ratio Utility Billing from the comfort of your couch!

Preferred Partner of

SF APARTMENT MAGAZINE | JUNE 2020

47

sfaa 2 2020calendar

sfaa

June

MONDAY, JUNE 1

TUESDAY, JUNE 2

THURSDAY, JUNE 4

THURSDAY, JUNE 4

11:30 a.m.

Rent Collection During Covid19

Maintenance During Covid19

Fort Mason Center

Board of Directors Mtg.

Lunch & Learn

Lunch & Learn

Zoom Webinar System

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Nuisance Tenants Class 2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

Members $65 Non Members $85

TUESDAY, JUNE 9

WEDNESSDAY, JUNE 10

THURSDAY, JUNE 11

TUESDAY, JUNE 16

Dealing with Complaints

Fort Mason Center

Dealing with the Required Notices

Initial Inspection Process During

Lunch & Learn

During Covid19

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Lunch & Learn

Passthrough 101 Class

2A Marina Blvd, Bldg. C, RM#205 5:30 p.m. to. 8:00 p.m.

Members $65 Non Members $85

Process During Covid19 Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

Lunch & Learn Covid19

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

TUESDAY, JUNE 16

THURSDAY, JUNE 18

THURSDAY, JUNE 18

TUESDAY, JUNE 23

Properties Class

Move Out Process During Covid19

Documentation Class

Eviction Controls Overview

Tenant Occupied

Fort Mason Center

2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

Members $65 Non Members $85

Lunch & Learn

Zoom Webinar System

12:00 p.m. to. 1:00 p.m.

Members $25 Non Members $40

WEDNESDAY, JUNE 24

TUESDAY, JUNE 30

Accommodations Class

Fort Mason Center

Reasonable

Fort Mason Center

2A Marina Blvd, Bldg. C, RM#235 2:00 p.m. to. 4:30 p.m.

Members $65 Non Members $85

Landlord Communication & Fort Mason Center

2A Marina Blvd, Bldg. C, RM#235 2:30 p.m. to. 5:00 p.m.

Members $65 Non Members $85

AB1482 Statewide Rent & Fort Mason Center

2A Marina Blvd, Bldg. C, RM#205 6:00 p.m. to. 8:30 p.m.

Members $100

Security Deposits Class 2A Marina Blvd, Bldg. C, RM#205 2:00 p.m. to. 4:30 p.m.

Members $65 Non Members $85

July MONDAY, JULY 6

Board of Directors Mtg. 11:30 a.m.

48

JUNE 2020 | SF APARTMENT MAGAZINE

SFAA MEMBER MEETINGS WILL BE HELD VIRTUALLY UNTIL FURTHER NOTICE DUE TO COVID-19. FOR MEMBER MEETING TOPICS AND SCHEDULES, VISIT WWW.SFAA.ORG.

join online at sfaa.org or call 415.255.2288

2020 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$25.00

Chapter 37A of San Francisco’s Administrative Code allows the city to collect a per-unit fee for each residential dwelling unit that is subject to the San Francisco Rent Ordinance. This fee defrays the entire cost of operation of the Rent Board.

This fee is billed to the landlord each year on the property tax statement sent in November, but the law permits landlords to collect a portion of the Rent Board fee from those tenants in occupancy as of November 1 of each year. A landlord is allowed to collect 50% of the cost of the fee from the tenant. If you have not collected Rent Board fees in the past, you can collect back to 1999.

ALLOWABLE RENT BOARD FEE COLLECTABLE FROM TENANTS 2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

SFAA’S

TENANT SCREENING SERVICE THROUGH INTELLIRENT STEP 1:

Create a free account at sfaa. myintellirent.com/agent-signup.

STEP 2:

Invite an applicant to apply via an online application customized to SFAA’s criteria.

You can also publish your available rental on Intellirent across mulitple ILSs. RATES

Intellirent is your free, online rental application and property marketing tool, partnered with Transunion to instantly return complete credit reports and nationwide eviction notices.

Renters pay the $40 application fee, which covers your costs.

For more information, simply create your free account or go to sfaa.org and choose the “Resources” tab. Then select “Tenant Screening.”

Please note that the maximum you can charge a tenant for screening services is $49.12.

CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

CAPITAL IMPROVEMENTS

The capital improvement interest rates for 3/1/19 through 2/29/20 are listed below: AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

2.8%

.01312

10 YEARS

2.9%

.00961

15 YEARS

3.0%

.00691

20 YEARS

3.0%

.00555

INTEREST ON DEPOSITS Deposits include all tenant monies that the owner holds, regardless of what they are called. At the landlord’s option, the payment may be made directly to the tenant or by allowing the tenant to deduct the amount of interest due from the rental payment.

INTEREST ON DEPOSITS PERIOD

AMOUNT

03/01/20 - 02/29/21

2.2%

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

03/01/17 - 02/28/18

0.6%

2014-2015

$18.00

03/01/16 - 02/28/17

0.2%

2013-2014

$14.50

03/01/15 - 02/29/16

0.1%

2012-2013

$14.50

03/01/14 - 02/28/15

0.3%

2011-2012

$14.50

03/01/13 - 02/28/14

0.4%

2010-2011

$14.50

03/01/12 - 02/28/13

0.4%

2009-2010

$14.50

03/01/11 - 02/29/12

0.4%

2008-2009

$14.50

03/01/10 - 02/28/11

0.9%

2007-2008

$13.00

2006-2007

03/01/09 - 02/28/10

3.1%

03/01/08 - 02/28/09

5.2%

$11.00

03/01/07 - 02/29/08

5.2%

2005-2006

$10.00

03/01/06 - 02/28/07

3.7%

2004-2005

$11.00

2003-2004

$21.50

2002-2003

$21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

ALLOWABLE RENT INCREASES

2020 – 2021: 1.8%

Effective March 1, 2020, through February 28, 2021, the allowable annual rent increase is 1.6%. This amount is based on 60% of the increase in the Consumer Price Index for all urban consumers in the Bay Area. A history of all allowable increases and their effective periods is provided.

ALLOWABLE RENT INCREASES PERIOD

AMOUNT

03/01/20 - 02/29/21

1.8%

03/01/19 - 02/29/20

2.6%

03/01/18 - 02/28/19

1.6%

03/01/17 - 02/28/18

2.2%

03/01/16 - 02/29/17

1.6%

03/01/15 - 02/29/16

1.9%

03/01/14 - 02/28/15

1.0%

03/01/13 - 02/28/14

1.9%

03/01/12 - 02/28/13

1.9%

03/01/11 - 02/29/12

0.5%

03/01/10 - 02/28/11

0.1%

03/01/09 - 02/28/10

2.2%

03/01/08 - 02/28/09

2.0%

03/01/07 - 02/29/08

1.5%

03/01/06 - 02/28/07

1.7%

SAN FRANCISCO RENT BOARD 25 Van Ness Avenue #320 San Francisco, CA 94102 415-252-4600 www.sfgov.org/rentboard

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

415-252-4600

& information

sfgov.org/rentboard

SF APARTMENT MAGAZINE | JUNE 2020

49

Mighty Small… continued from page 38

My colleagues are using cell phones to

upwardly moving market. The first quarter

record virtual property tours. It’s not hard

numbers reflect properties that went into

Many local bank branches are closed. We

to create good quality videos, but there is

contract pre shelter-in-place. If you look

have been looking at blue tooth tech-

a learning curve. Get the basics down on

at numbers starting April 1, 2020, there is

nology for the past year, and it may be

your phone. High quality sound and light

clearly a downward trend. Most of these

time to switch over. Frankly, it’s a pain to

are key. A stick can be very helpful; you

properties went into contract in March and

collect quarters once or twice a month.

should also look into different apps avail-

pre shelter-in-place. In April 2019, there

Although, it does force me to visit the

able for virtual tours. Try to film in natural

were 31 sales that sold at 105.20% of the

properties. We own one set of machines;

daylight and when outside noise is mini-

asking price. The median sales price was

the others are leased. Unfortunately,

mal. Plan your video in advance. Think

$2,175,000. In April 2020, there were 12

Irving signed leases with automatic re-

about starting in the same place as you

sales that sold at 99.21% of the asking price.

newals. It’s taken a year to get the leasing

would in-person. You should highlight

The median sales price was $2,160,000. It

company to agree to swap out the coin

or focus on key features or upgrades that

will be interesting to track sales over the

machines with blue tooth technology.

potential renters want to see, like views

next few months. There are definitely inves-

The dilemma is they want new three-year

and remodeled kitchens and baths. As for

tors out there looking for deals and rates

leases with commission-based options

audio, start with inducing yourself, and

are still historically low.

and a bank fee. Do we wait out the cur-

end with clear next steps on how to apply.

rent leases and get our own machines or

Keep the video short, maybe three to five

It’s hugely important to approach any situ-

do we switch over with new leases and a

minutes long. SFAA has great classes and

ation that comes up, rent or otherwise, in

commission structure?

continues to offer excellent support. And

a reasonable fashion. Take time to think

there are services who will put together

things through and contact a landlord attor-

the tour for you.

ney when necessary.

rage that’s a fire hazard and a carport that’s

There are so many variables that could

become storage for unwanted items during

impact the rental market as a whole, includ-

Kilby Stenkamp is a realtor at Vanguard Properties. She can be reached at kilby@vanguardsf.com or 415-370-7582.

SIP. The only thing we can do right now is

ing the ability to show occupied property.

document and correspond with tenants.

Year over year, the first quarter shows an

There are a few petty issues, too. A couple sneaked in a washer and dryer. There’s a ga-

50

JUNE 2020 | SF APARTMENT MAGAZINE

Bil the Ground Running with Your Employees' Education in 2020 Design Your Own Program

We offer customized programs designed to your specifications and delivered where and when you choose.

Fair Housing-It's the Law Customer Service and Maintenance Management Financial Management, Managing the Bottom Line

SF APARTMENT MAGAZINE | JUNE 2020

51

sfaa professional

services directory 1031 TAX DEFERRED EXCHANGE SERVICES

FIRST AMERICAN EXCHANGE COMPANY 415-244-1339 www./firstexchange.com/ HERITAGE CAPITAL ADVISORS Eric Scaff 415-834-1031 www.heritagecap.com LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com

ACCOUNTANTS

SHWIFF, LEVY & POLO LLP Elizabeth Shwiff 415-291-8600 x232 www.slpconsults.com

ALARM COMPANY

AEC ALARMS Michelle Rogers 408-298-8888 x123 www.aec-alarms.com/

ARCHITECTURE

OPENSCOPE STUDIO ARCHITECTS Mark Hogan 415-891-0954 www.openscopestudio.com Q ARCHITECTURE Dawn Ma www.que-arch.com

415-695-2700

ASSOCIATIONS

PROFESSIONAL PROPERTY MANAGEMENT ASSOCIATION J.J. Panzer www.ppmaofsf.org

ATTORNEYS

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law CHONG LAW Dolores Chong DENNIS C. HYDE Dennis C. Hyde hydelaw@pacbell.net

415-490-9020

FRIED & WILLIAMS LLP Clifford E. Fried www.friedwilliams.com

415-421-0100

GOLDFARB & LIPMAN LLP Erica Williams 510-836-6336 eorcharton@goldfarblipman.com goldfarblipman.com

MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com

415-861-8800

JACOBSON LAW PC Isaac@jacobsonlawsf.com 415-421-0100 KAUFMAN, DOLOWICH, VOLUCK Ashley Klein 415-926-7612 aklein@kdvlaw.com LAW OFFICES OF FRANCISCO GUTIERREZ Francisco Gutierrez 415-805-6508 francisco@gtzlegal.com LAW OFFICE OF MICHAEL HEATH Michael Heath 415-931-4207 Mheath_law@sbcglobal.net THE LAW OFFICES OF KIMBALL, TIREY & ST. JOHN LLP Daniel Kimball 800-525-1690 www.kts-law.com LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com

415-438-7807

JUNE 2020 | SF APARTMENT MAGAZINE

MATLIN & ASSOCIATES Shauna L. Matlin, Esq. 415-305-5637 www.sfevictionattorney.com

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net

FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070

MASTROMONACO REAL PROPERTY LAW GROUP Leonard Mastromonaco 415-354-2702 len@mastrolawgroup.com

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law

415-409-7611

415-753-3811

LAW OFFICE OF KEVIN P. GREENQUIST Kevin Greenquist 415-977-0444x234 www.ztalaw.com

GOLDSTEIN, GELLMAN, ET AL, LLP Brett Gladstone 415-673-5600 x 238 www.g3mh.com

LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com

52

FISHER & PHILLIPS, LLP Jason Gellar www.fisherphillips.com

LAW OFFICES OF LAWRENCE M. SCANCARELLI Lawrence M. Scancarelli 415-398-1644 www.sfrealestatelaw.com THE LAW OFFICE OF ED SINGER Edward Singer 650-393-5862 www.edsinger.net

NICHOLAS GOLDMAN LAW Nicholas Goldman 415-350-8740 nicholas@nicholasgoldmanlaw.com O’GRADY LAW GROUP John O’Grady john@ogradylaw.com www.ogradylaw.com

415-986-8500

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com TOUR-SARKISSIAN LAW OFFICES Christine Tour-Sarkissian 415-626-7744 www.tslo.com TRN LAW ASSOCIATES Tiffany Norman tiffany@trnlaw.com

415-823-4566

WASSERMAN-STERN David Wasserman 415-567-9600 www.wassermanstern.com WIEGEL LAW GROUP Andrew J. Wiegel www.wiegellawgroup.com

415-552-8230

ZACKS, FREEDMAN & PATTERSON, P.C. Andrew M. Zacks 415-956-8100 www.zfplaw.com ZANGHI TORRES ARSHAWSKY, LLP John P. Zanghi 415-977-0444 www.zatlaw.com

BEDBUG DETECTION

CROWN & SHIELD PEST SOLUTIONSPREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com www.crownandshieldpestsolutions.com SCENT TEK Brent & Kevin Youngblood 415-933-0879 www.scent-tek.com

CLEANING SERVICES MARVEL MAIDS Sherri Jessen www.marvelmaids.com

415-546-8000

OPTIMUS BUILDING SERVICES Claudia Giraldo 650-290-4607 optimusbuildingservices.com PUMA POWER WASH Tiger Guy 415-825-2559 info@pumapowerwash.com www.pumapowerwash.com

CONSTRUCTION

CURRENT CONSTRUCTION David Breslin 415-969-6915 office@currentcon.com www.currentconstruction.com

CONSULTANTS: PERMITS & PLANNING

CENTER FOR SUSTAINABLE ENERGY Sarah Bliss 858-633-8099 sarah.bliss@energycenter.org EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

CONTRACTORS

AGUILEAR CONSTRUCTION COMPANY Javier Aguilear 707-495-3932 javier@aguileraco.com

CORPORATE RENTALS AMSI Robb Fleischer www.amsires.com

415-447-2020

OPTIMUM INSPECTION Elad Gal 510-590-1758 info@optimummoldinspection.com P.W. STEPHENS ENVIRONMENTAL Sheri Buenz 510-651-9506 sherib@pwsei.com

FIRE ESCAPE INSPECTION & MAINTENANCE ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

GREAT ESCAPE FIRE ESCAPE SERVICE, INC. Rich Henderson 415-566-1479 www.greatescapeinc.com

FIRE PROTECTION CONTRACTORS

BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com BELL FIRE AND LIFE SAFETY Marc Belluomin 650-580-5306 bellfire365@gmail.com COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com

FURNITURE RENTALS

BROOKFIELD FURNITURE-NORCAL Mary Baird 408-720-1252 www.bfr.com

GARBAGE COLLECTION SERVICES

RECOLOGY GOLDEN GATE RECYCLING Minna Tao 415-575-2423 recologysf.com RECOLOGY SUNSET SCAVENGER Dan Negron 415-330-2911 recologysf.com

GOROVERGO Laura Ericson 832-977-6830 laura.ericson@echemail.com www.gorovergo.com

HARDWARE

CREDIT REPORTING

INSURANCE COMPANIES

INTELLIRENT Cassandra Joachim www.myintellirent.com

415-849-4400

ENERGY SERVICES / GAS & ELECTRIC

PACIFIC GAS & ELECTRIC COMPANY Sebastian Conn 415-972-5201 www.pge.com

ENVIRONMENTAL CONSULTING

A-1 CERTIFIED ENVIORNMENTAL TESTING/DUCT CLEANING Carl Gibbons 888-217-2719 chelseap60@hotmail.com a-1certifiedenvironmentalservices.com

GRAINGER Mark D. Sheddon

800-472-4643

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com BIDDLE-SHAW INSURANCE SERVICES, INC Greg Holl 415-586-7200 www.biddleshaw.com COMMERCIAL COVERAGE INSURANCE AGENCY Paul Tradelius 415-436-9800 www.comcov.com

GORDON ASSOCIATES INSURANCE SERVICES Dave Gordon, CLU 650-654-5555x6972 David.gordon@gordoninsurance.com

INTERNET SERVICES PROVIDERS

COMCAST/XFINITY Michael Juliano www.xfinity.com

925-495-9922

LAUNDRY EQUIPMENT

WASH MULTIFAMILY LAUNDRY SYSTEMS Cathy Barsotti 650-340-8054 www.weblaundry.com

LENDING / FINANCIAL SERVICES

COUNTERPOINTE SRE David Snow 855-431-4000 www.counterpointeSRE.com FIRST FOUNDATION BANK Michelle Li www.ff-inc.com

415-794-2176

LENDING / FULL SERVICE BANKS

LUTHER BURBANK SAVINGS Gabriel Basso 510-601-2400 www.lutherburbanksavings.com

LENDING / INSTITUTIONS

CHASE APARTMENT LENDING Andre C. Ferrigno 415-644-2171 CHASE COMMERCIAL TERM LENDING Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking CHASE COMMERCIAL LENDING Ingrid Marlow 650-737-6212

LOCKSMITHS

CROWN LOCK & HARDWARE Joe Schoepp 415-221-9086 WARMAN SECURITY Peter Badertscher www.warmansecurity.com

415-775-8513

MAINTENANCE REPAIR SERVICE

CITY REPAIR SERVICES Fernando Fonesca 415-602-6524 contact@citycarerepair.com MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com ONE STOP MAINTENANCE & PROPERTY SERVICES Lupe Villaloblos 408-829-0727 www.sf1stop.com WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

SF APARTMENT MAGAZINE | JUNE 2020

53

MEDIATION

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Matthew Tom 415-782-8940 mtom@sfbar.org

MORTGAGE BROKER THE RINCON GROUP Casey Wright

415-622-7450

ORGANIC WASTE SOLUTIONS

ECOSAFE ZERO WASTE, INC. Daniel Redick 310-569-0624 ecosafezerowaste.com Daniel@EcoSafeZeroWaste.com

PAINTING CONTRACTORS KRUITPAINTING, INC. Pieter Kruit www.kruitpainting.com

415-254-7818

MODAMAS INC. Gabriela Laz www.modamas.com

415-552-6567

PAC WEST PAINTING INC. Brian Beaulieu 415-457-0724 www.pacwestpaintinginc.com PETERS PAINTING SERVICES Peter Pantazelos 415-647-4722 www.peterspainting.com TARA PRO PAINTING INC. Brian Layden www.tarapropainting.com

415-334-3277

property management

The following members are SFAA Property Management Members. They fully support the organization and are dedicated to SFAA’s goals. For more information about the benefits of becoming a Property Management Member, contact Maria Shea at maria@sfaa.org or 415-255-2288 x 10.

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com

PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

AMERICAN MARKETING SYSTEMS INC. Robb Fleischer 415-447-2020 www.amsires.com

PROGRESSIVE PROPERTY GROUP Dace Dislere & Joe Gillach 415-515-4329

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF William Talmage www.dewolfsf.com

415-221-2032

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com GREENTREE PROPERTY MANAGEMENT Mike McCamish 415-828-8757 www.greentreepmco.com J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456 LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

54

415-648-1516

PROPERTY FORCE, INC. John M. Way

REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com RE/MAX UP REAL ESTATE Thomas Nguyen www.uprealproperty.com

415-799-3728

S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com WEST & PRASZKER REALTORS Michael Klestoff 415-661-5300 www.wprealtors.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

members JUNE 2020 | SF APARTMENT MAGAZINE

415-589-3945

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net

PAINTING SUPPLIES SHERWIN-WILLIAMS Khuat Hoang Sw7276362@Sherwin.com

415-576-1043

PEST CONTROL

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Vidaca 888-970-1927 aurora@crownandshieldpestsolutions.com

PLUMBING SERVICES

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com R & L PLUMBING Larry Bustillos 415- 651-4977 larry@rl.plumbing www.rlplumbingsanfrancisco.com URGENT ROOTER AND PLUMBING INC. Albert Lee 415-387-8163 urgentrtr@sbcglobal.net

PRIVATE INVESTIGATOR

WEN ANDASSOCIATES, INC. Hai Hua Wen 650-863-7925 www.sfpiwa.com

PROPERTY MANAGEMENT

ADVENT PROPERTIES, INC. Benjamin Scott, CCRM 510-289-1184 www.adventpropertiesinc.com ALEXANDERSON PROPERTIES Eric Alexanderson 415-285-3737 www.alexandersonproperties.com AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com BORN PROPERTY MANAGEMENT Jason Born 650-271-7048 x 111 Jason@bornpm.com BERENDT PROPERTIES Craig Berendt craig.berendt@gmail.com

415-608-3050

BROOKFIELD PROPERTY GROUPPRESIDIO LANDMARK Jon King 855-327-5376 jon.king@brookfieldproperties.com CHANDLER PROPERTIES Carolyn Chandler 415-921-5733 www.chandlerproperties.com CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com DJA PROPERTIES Brian James brian@djaproperties.com www.djaproperties.com

415-221-2032

EBALDC Felicia Scruggs FScruggs@ebaldc.org EQUITY ONE Brenda M. Obra www.equity1sf.com GAETANI REAL ESTATE Paul Gaetani www.gaetanireality.com

510-287-5353

ROCKAWAY RESIDENTIAL MANAGEMENT KristineAbbey 650-290-3084 kristine@rockawayresidential.com

415-441-1200

ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com

415-668-1202

SC PROPERTY MANAGEMENT Robert Guglielmi 650-342-3030 bob.guglielmi@scpropsm.com

GEORGE GOODWIN REALTY, INC. Chris Galassi 415-681-1265 www.goodwin-realty.com

SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com

GREENTREE PROPERTY MANAGEMENT Mike McCamish 415-828-8757 www.greentreepmco.com

SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com

HANFORD•FREUND & CO. J. Timothy Falvey www.hanfordfreund.com

415-981-5780

SKYLINE PMG, INC. Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com

415-237-6240

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc

SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.SutroProperties.com

JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com

THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.com/

JD MANAGEMENT GROUP, INC. Jonathan Davis 510-387-7792 jonathan.davis@jdmginc.com

W. PROPERTY MANAGEMENT Gary Petrison 707-545-6187 gary@wpropertymanagement.com

LINGSCH REALTY Natalie M. Dress www.lingschrealty.com

415-648-1516

WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com

MERIDIAN MANAGEMENT GROUP Randall Chapman 415-434-9700 www.mmgprop.com

WEST & PRASZKER REALTORS Michael Klestoff 415-699-3266 www.wprealtors.com

MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co

PROPERTY MANAGEMENT SOFTWARE

HOGAN & VEST INC. Simon Wong simon@wongsf.com

NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com PACIFIC UNION INTERNATIONAL PROPERTY MANAGEMENT Susan Lucas 415-722-4724 www.pacunionpm.com PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com PRIME METROPOLIS PROPERTIES, INC. Tom Chan 415-731-0303 tomchan@pmp1988.com PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen, Broker, CCRM, MPM®, RMP® 415-661-3860 www.propertymanagementsystems.net RAMSEY PROPERTIES Brian E. Ramsey 415-474-5175 Brian@RamseyPropertiesSF.com REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com

DROPLIT, INC. Stephen Westerfield stephen@droplit.io

212- 235-7877

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mark Bonn 415-614-4354 mbonn@apr.com ALAIN PINEL INVESTMENT GROUP Jay Greenberg 415-593-8615 www.aprinvestmentgroup.com ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BAY AREA PREMIER PROPERTIES Peter Fisler 415-606-6621 www.bayareapremierproperties.com BIG TREE PROPERTIES Evan Matteo 415-305-4931 evan@bigtreeproperties.com COLDWELL BANKER COMMERCIAL NRT Steven Caravelli 415-229-1367 steven.caravelli@cbnorcal.com COLLIERS INTERNATIONAL-JAMIE KENDALL Jamie Kendall 415-788-3100 jamie.kendall@colliers.com COLLIERS INTERNATIONAL- JAMES DEVINCENTI James Devincenti 415-288-7848 www.THEDLTEAM.com COLLIERS INTERNATIONAL Brian Leung 415-288-7881 www.brian-leung.com COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com COMPASS COMMERCIAL BROKERAGE Chris J. Connor chris.oconnor@compass.com FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com

PROPER David Berens david@proper.chat

415-528-7211

KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582

STESSA Victor Perez www.stessa.com

626-524-4931

YARDI Kelly Krier kelly.krier@yardi.com

LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

805-699-2040

YMPG MANAGEMENT Yelena Glezer 415-260-6325 yglezer@ympg-management.com

REAL ESTATE APPRAISALS HARPER & ASSOCIATES Jay Harper JHARPSF@att.net

415-674-9243

MARK WATTS COMMERCIAL APPRAISAL Mark Watts 415-990-0025 www.markwattscommercialappraisal.com

415-717-8709

MARCUS & MILLICHAP David Nelson 415-312-2245 dnelson@MarcusMillichap.com MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com PACIFIC UNION COMMERCIAL Stephen Pugh spugh@pacunion.com S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

SF APARTMENT MAGAZINE | JUNE 2020

55

sfaa sfaa 2020 membership application

Thank you for joining the San Francisco Apartment Association. SFAA is dedicated to educating, advocating for and supporting the Rental Housing Community so that its members operate ethically, fairly and profitably. Please consult a tax preparer in advance to determine deductibility for your tax situation. Membership fees are subject to change.

MEMBERSHIP LEVEL & COST

Base Fee

Units Fee

1-50

$385 +

$6.45 per unit =

51-250

$475 +

$6.45 per unit =

251-500

$675 +

$6.45 per unit =

501-1,000

$875 +

$6.45 per unit =

1,001

$1,375 +

$6.45 per unit =

TOTAL UNIT AMOUNT:

Unit Fee

1-50

$485 +

$3.95 per unit =

51-250

$575 +

$3.95 per unit =

251-500

$775 +

$3.95 per unit =

501-1,000

$975 +

$3.95 per unit =

1,001

$1,475 +

MARCUS MILLICHAP Clinton C. Textor III 415-425-9123 www.marcusmillichap.com URBAN GROUP REAL ESTATE Louis Cornejo 415-863-1775 louis@urbangroupsf.com

REFINISHING / RESURFACING SERVICE

MIRACLE METHOD OF SAN FRANCISCO Claire Gray 415-673-4211 www.miraclemethod.com

TOTAL AMOUNT:

ASSOCIATE MEMBER DUES: $495

RENT BOARD PETITIONS

CONTACT INFORMATION

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net

Contact Person Company/Title

REAL MANAGEMENT COMPANY Melinda Greene 415-230-8895 www.RMCsf.com

Address City

State

Zip

RENT BOARD PASSTHROUGHS Kim Boyd Bermingham 415-333-8005 www.rentboardpass.com

Mobile Phone Email Address

Website PAYMENT METHOD

Check

Amex

MC

Visa

3 Digit Security Code

Card #

Expiration Date

Cardholder Name

Billing Zip Code

Authorized Signature

Date HOW DID YOU HEAR ABOUT US?

Referral From

Postcard/Mailer

Magazine

Website

Rent Board

Other

San Francisco Apartment Association 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

56

JUNE 2020 | SF APARTMENT MAGAZINE

WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com

ALAIN PINEL INVESTMENT GROUP Trigg Splenda 415-593-8616

$3.95 per unit =

TOTAL UNIT AMOUNT:

VANGUARD COMMERCIAL BROKERAGE Allison Chapleau 415-516-0648 www.allisonchapleau.com

REAL ESTATE INVESTMENTS

TOTAL AMOUNT:

Base Fee

TOUCHSTONE COMMERCIAL PARTNERS Matthew Gorman 415- 539-1118 mattgorman@tcpre.com

ZEPHYR REAL ESTATE Dawn Cusulos 415-678-8854 dawncusulos@zephyrre.com

MANAGEMENT COMPANY DUES Units

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com

ZEPHYR COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com

REGULAR MEMBER DUES Units

SHAMROCK REAL ESTATE COMPANY Trent Moore 415-359-2400 www.shamrocksf.com

RENTAL LISTING SERVICES AIRBNB Lorie McBrien lorie.mcbrien@airbnb.com www.airbnb.com

949-422-7166

APARTMENT LIST Alex Mashburn 678-467-0411 amashburn@apartmentlist.com

RESIDENTIAL LEASING

BERENDT PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com GAVIN COOMBS COMPANIES INC. Gavin Coombs 415-509-4782 www.rentalradar.com

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

415-509-3456

HAMILTON FAMILY CENTER Mayo Lunt 510-763-8540 x230 www.hamiltonfamiles.org LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

415-648-1516

RELISTO Eric Baird www.relisto.com

415-236-6116

RENTINGSF David Chesnosky dcrentsf@gmail.com

415-218-3700

RENTSFNOW Kathy Claussen kclaussen@veritasinv.com

415-762-0213

CONTRACTOR OR VENDOR?

ARCHITECTURE & DESIGN SERVICES

Openscope Studio ATTORNEYS

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com

SECURITY

ADT-MULTI FAMILY Jeanette Mendez jjmendez@adt.com www.adt.com/smart-

ad index NEED A PROFESSIONAL

562-712-7504

Dowling & Marquez, LLP Fried & Williams LLP BANKS & LENDING SERVICES

Dowling & Marquez, LLP

SEISMIC RETROFIT & STRUCTURAL ENGINEERING BAI CONSTRUCTION Behnam Afshar www.baiconstruction.com

510-595-1994

SGDM, LLC George Mak www.sgdmllc.com

415-462-0619

W. CHARLES PERRY Charles Perry www.wcharlesperry.com

650-638-9546

44 47 44

CONSTRUCTION & RENOVATION SERVICES

One Stop Maintenance Pribuss Engineering W. Charles Perry West Coast Premier Construction FIRE ESCAPE SERVICE

MARINA SECURITY SERVICES, INC. Sam Tadesse 415-722-1168 stadesse@marinasecurities.com www.marinasecurities.com

43

Great Escape Fire Escape LOCKSMITHS

Crown Lock & Safe Warman Security PAINTING CONTRACTORS

Pac West Painting

PETITION SERVICES

Rent Board Passthroughs

61 58 62 60 58 61 61

REAL ESTATE BROKERS

Amore Real Estate 60 Coldwell / Caravelli 25 Coldwell / Dan McGue 31 Colliers / DeVincenti 2 Compass / Antonini 13 Compass / Bonn & Webb 33 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Pugh 17 Kay Properties & Investments, LLC 21 Marcus & Millichap 26-27 Newmark Knight Frank / Sheridan & Boersma 63 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 55 Vanguard Properties / Kilby Stenkamp 44 Zephyr / Terrence Jones 15

61

UTILITIES BILLING SERVICES

16

Acceptance of an advertisement by this magazine does not necessarily constitute any endorsement or recommendation by SFAA, express or implied, of the advertiser or any goods or services offered. Advertisers in red are Associate Members of SFAA.

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Berendt Properties Gaetani Real Estate, Inc. Maven Maintenance

Real Management Company 62 Rentals in SF 39 West Coast Property Management 51 Yardi 18-19

6 64 39

Livable 47

WEST COAST PREMIER CONSTRUCTION, INC. Homy Sikaroudi, PhD, PE 510-271-0950 www.wcpc-inc.com

SUBMETERS

LIVABLE Daniel Sharabi www.livable.com

415-937-7283

TENANT PLACEMENT & LISTING REALPAGE Stacy Blackwell www.realpage.com

972-820-3015

RENTALS IN S.F. Jackie Tom www.rentalsinsf.com

415-409-3263

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUPER-TENANT Ashwin Chandra ash@super-tenant.com

415-309-9356

SF APARTMENT MAGAZINE | JUNE 2020

57

ZUMPER INC. Diana James diana@zumper.com

949-702-1508

WATER CONSERVATION SERVICE

SF PUBLIC UTILITIES COMMISSION Chandra Johnson 415-554-0704 www.conserve.sfwater.org

WATER DAMAGE SERVICE

FIRE AND WATER DAMAGE RECOVERY Maria Neumann 800-886-1801 www.waterdamagerecovery.net

WATERPROOFING

KELLEY PAINTING AND WATERPROOFING Mitchell Kelley 415-847-7883 www.kelleypaintingandwaterproofing.com

sf.0319.great.escape.pdf

1

3/3/19

6:34 PM

Keeping The San Francisco Bay Area Safe Since 1988

C

M

FIRE ESCAPE SERVICE & MAINTENANCE

Y

CM

MY

CY

Please note that acceptance of associate membership does not necessarily constitute any endorsement or recommendation, express or implied, of the associate member or any goods or services offered.

Go

Online!

Find more information on SFAA classes, apartment industry news & excerpts from SF Apartment Magazine at www.sfaa.org Mike Stack

Real Estate Advisor

CMY

Call or email me

Safety is our Top Priority

K

today for a free & private analysis of your property’s value,

FREE ESTIMATES

it’s never too early to get started.

(415) 566-1479

415.580.9095 mikestack@vanguardsf.com MikeStackSF.com

www.greatescapeinc.com

58

DRE# 01932 2 8 0

JUNE 2020 | SF APARTMENT MAGAZINE MikeStack_Ad.indd 1

1/30/20 2:24 PM

2020 Spring CCRM Webinar Series Schedule & Registration Course Course Name #

Date

Time

PRICE Member

# of NonTotal Member Attendees

Series

Full CCRM Series (Value Savings)

PMR100

Preparing the Property and Professional Leasing Skills

4/15/2020

6PM-9PM

$85.00

$100.00

PMR101

The Move-In-Process, Rent Collection & Notices

4/22/2020

6PM-9PM

$85.00

$100.00

PMR102

Resident Issues and Ending the Tenancy

4/29/2020

6PM-9PM

$85.00

$100.00

PMR103

Professional Skills for Supervisors

5/6/2020

6PM-9PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining a Property

5/13/2020

6PM-9PM

$85.00

$100.00

PMR105

Liability & Risk Mgmt.: Protecting the Investment

5/20/2020

6PM-9PM

$85.00

$100.00

PMR106

Budget Development and Implementation

5/27/2020

6PM-9PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

6/3/2020

6PM-9PM

$85.00

$100.00

PMR108

Ethics & Property Management

6/10/2020

6PM-9PM

$85.00

$100.00

EXAM

CCRM Final Exam

6/17/2020

6PM-9PM

FREE

Class Location Zoom Webinar System Upon registration the Zoom link will be emailed to the student Class is every Wednesday night

See schedule below

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x.13 Email: stephanie@sfaa.org

(includes 9th Edition Managing Rental Housing textbook, CCRM binder and Welcome Packet; does not include the $75 CCRM application fee)

Attendee Information: o Member

Attendee Name: Title:

Company Name:

Address

City:

Phone:

Fax:

E-Mail:

Local Association ID Number:

Payment Information: o Credit Card

Zip:

o Mailing Check o Series Invoicing (members only benefit)

Credit card number: Signature:

o Non Member

Exp. Date Name printed:

Cancellation Policy: Cancellations must be made 72 hours in advance for a refund. SFAA does not provide refunds for No-Shows. Non-members must pay by credit card only!!! *Students requesting CalBRE Continuing Education Credits must show picture ID, immediately before admittance to the live offering.

CCRM Certification Renewal Policy: In order to keep the certification active, CCRMs must complete twelve hours of continuing education credits & submit a renewal application along with a renewal fee every other year (2 hours of these credits must be in Fair Housing)

caanet.org events@caanet.org 800.967.4222 • 980 Ninth Street, Suite 1430 • Sacramento, CA 95814

SF APARTMENT MAGAZINE | JUNE 2020

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Legal Q&A… continued from page 20

gave notice, but mentioned that the other original occupant is moving back in. Can I raise the rent to market? Or does he retain original occupant status?

A. A lease is both a contract and an estate in land. The rights overlap, but they’ve historically been distinct and well-established.

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You rented to two co-tenants. They shared a contract and a lease. Each of them had a shared “right to possession” (the estate in land). This means that they can both exclude the entire world from their own apartment, except for each other (and

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subject to your right of entry as a landlord).

They were also both bound to the lease (their contract), equally enjoying its benefits, while jointly suffering its burdens.

One moves out, and some unknown subtenants move in. The subtenants are not

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parties to your contract. They do not “replace” the departed tenant on your contract (without their request and your consent).

Yet they have a right to possession. Initially, that right is derivative of the remaining tenant’s right to possession. In the rare case, the master tenant vacates, leaving them behind, while you battle over possession; more often, the landlord concedes the right to possession of the subtenants, but battles over the right to maintain rent control.

However, you’re asking about the rights of the once-departed, now-returned cotenant. The dispute here is not whether this

• Guaranteed approval of engineering and construction in conformance to Soft Story Ordinance.

person is entitled to rent control or not, but whether he maintained that right after

• Screening, evaluation, engineering, construction, final city sign-off.

physically vacating the unit. This is a factspecific question, and you’ll have created those facts along the way.

For instance, the departing tenant may

For inquiries, please contact Homy Sikaroudi, PhD, PE

have asked for “his half of the deposit” when he moved out. It’s generally wise not

1 60sf.1013.west.coast.premier.indd JUNE 2020 | SF APARTMENT MAGAZINE

9/18/13 12:32 PM

RENT FORBEARANCE For more information on temporary rent reductions or to download SFAA’s Rent Forbearance Payment Agreement, visit www.sfaa.org.

to participate in piecemeal distributions for several reasons: you aren’t receiving the unit, so no deposit is owed, you should not receive “replacement deposit” from a new subtenant, who you want no legal relationship with, you aren’t in a position to evaluate damage and appropriately deduct, etc.

However, if you had, and if no remaining subtenants paid you deposit directly, your former tenant is now simply a stranger to the contract.

Sometimes departing tenants will actually ask to be removed from the lease (to avoid being rent-liable on a contract they no longer benefit from). Unless the lease says otherwise, you’re under no obligation to let co-tenants “off the hook,” and you may have wanted the additional security (similar to having a co-signer), but then the former tenant is still party to the contract despite being out of possession.

Even with murky facts, you might take an aggressive approach. The departing master tenant is trying to hand off the rent control baton to his former co-tenant, but again, you don’t have to let him off the contract either. The threat of a market-rate rent increase (where he will be liable for his former roommates default) may inspire all parties to start fresh with their own leases.

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61

VALUE-ADDED DEVELOPMENT

Contact : charles@wcharlesperry.com 415.509.2956

W. CHARLES PERRY & ASSOCIATES I N V E S T M E N T, D E S I G N A N D C O N S T R U C T I O N

62

JUNE 2020 | SF APARTMENT MAGAZINE

DEVELOPMENT OPPORTUNITY

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