SF Apartment Magazine June 2022

SF APARTMENT magazine

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June 2022 / $7.00

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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 APA SF APARTMENT

contents

Features

20

Home Sweet Home

by NIKKI RESCH

26

All Decked Out

by DECK & BALCONY INSPECTIONS, INC.

20 4

JUNE 2022 | SF APARTMENT MAGAZINE

PARTM Columns

Membership

8

36

Razing Roadblocks

Days on End

The News

12

Market View

Legal Q&A

by VARIOUS AUTHORS

52

Uptick-Tock

Court Talk

by JAY GREENBERG

Critical Counsel

18

by CLIFFORD FRIED

42

Calendar

46

Professional Services Directory

50

Membership Application

55

Masters of Disaster Porch Pirate Pushback

A Letter from the San Francisco Department of Environment

by FETCH

26 SF APARTMENT MAGAZINE | JUNE 2022

5

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6

JUNE 2022 | SF APARTMENT MAGAZINE

magazine

SF APARTMENT

San Francisco Apartment Association Office 265 Ivy Street San Francisco, CA 94102 Tel 415-255-2288 Fax 415-255-1112

Email memberquestions@sfaa.org Web www.sfaa.org

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Deputy Director Vanessa Khaleel

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SFAA Officers President Chris Bricker

Vice President Robert Link Treasurer Jim Hurley

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

VOLUME XXXV, NUMBER 6 JUNE 2022 Published by San Francisco Apartment Association Publisher Vanessa Khaleel Editor Pam McElroy

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SF Apartment Magazine (ISSN 1539-8161) Periodicals Postage Paid at San Francisco, California and at additional mailing offices.

POSTMASTER: Send address changes to the SF APARTMENT MAGAZINE, 265 Ivy Street, San Francisco, CA 94102.

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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 Printing Partners Copyright @2022 by SFAA.

Dave Wasserman

SF APARTMENT MAGAZINE | JUNE 2022

7

COLUMN

THE NEWS

affordable housing fees on density bonus units. This bill would codify the Attorney General’s opinion, putting this practice to rest.

The bill was introduced on February 14, 2022, by Assemblymember Berman, and is sponsored by the Housing Action Coalition, a nonprofit that advocates for

Razing Roadblocks

AB 2234 and AB 2063 aim to minimize development roadblocks by bringing down both direct costs and holding costs.

building more housing for California residents of all income levels. It was unanimously passed by the Assembly Housing and Community Development Committee on April 5, and the Assembly Local Government Committee on April 20. It is now under review by the Appropriations Committee.

AB 2234

After a productive legislative year in

AB 2063

2021, the State Legislature is continuing

This bill would update the State Density

limits for the review and approval of

to tackle California’s ongoing challenges

Bonus Law to clarify that affordable

entitlements. Its impact has been limited

related to the housing crisis and lengthy

housing fees cannot be applied to den-

since its time limits run from completion

processing times. Two bills would aim to

sity bonus units, except in limited cir-

of a California Environmental Quality

minimize some of the roadblocks facing

cumstances. Although this is a relatively

Act review, which is typically the main

housing projects by bringing down both

simple bill, its impact would be huge

driver of entitlement schedules. This bill

direct costs and holding costs.

for housing projects in jurisdictions

aims to put a similar, but more effective,

that have been requiring hundreds of

framework in place for post-entitlement

First, AB 2063 proposes to codify the

thousands—and sometimes millions—in

approvals. Due to challenges associated

State’s often disregarded stance that

affordable housing fees on top of the

with staffing, permitting backlogs have

affordable housing fees do not apply

on-site affordable housing units needed

long been a problem, especially in large

to density bonus units. This would

to qualify for the density bonus.

cities with high volumes of construction.

The Permit Streamlining Act sets time

These delays increase holding costs and

eliminate a significant cost for density bonus projects, which play a vital role in

The Attorney General issued an opinion

slow overall housing production. Given

increasing housing production across

in 2019 that this practice of applying

today’s inflationary environment, delays

the state.

impact fees on density bonus units was

are even more problematic.

not permitted under the State Density Second, AB 2234 proposes to enact

Bonus Law. The Attorney General’s rea-

The bill would apply limits on the re-

time limits on processing and approv-

soning was that the imposition of these

view process for all nondiscretionary

ing post-entitlement permits to create

fees on density bonus units disincentiv-

permits for projects that are at least two-

a more efficient and consistent pro-

izes what the legislature clearly wished

thirds residential. This would apply to

cess. Both of these bills would help ad-

to incentivize—the construction of af-

building permits and permits for off-site

dress some of the root causes of the high

fordable housing.

improvements, demolition, excavation, and grading. Failure to meet any of the

cost of building housing, including in-

8

creasing impact fees and long-term hold-

Despite the Attorney General’s opin-

time limits would be treated as a viola-

ing costs associated with permitting.

ion, some cities continue to apply

tion of the Housing Accountability Act.

JUNE 2022 | SF APARTMENT MAGAZINE

57-61 ALBION ST, SAN FRANCISCO

4 Units in Mission Dolores

1295 47TH AVE ST, SAN FRANCISCO

12 Units in the Outer Sunset

738-740 NORTH POINT ST, OAKLAND

2 Units in Russian Hill

$1,850,000

$4,995,000

$2,600,000

1550 FILBERT ST, SAN FRANCISCO

124 LYON ST/1387 OAK ST, SAN FRANCISCO

625 SCOTT ST, SAN FRANCISCO

12 Units in Cow Hollow

2 Units in Haight Ashbury

$6,495,000

$2,295,000

325-375 CASTRO ST, SAN FRANCISCO

328 PENNSYLVANIA ST, SAN FRANCISCO

5 Units Mixed-Use in Duboce Triangle

$1,950,000

1554-1556 FRANKLIN ST, SAN FRANCISCO

2 Units in Cow Hollow

$1,795,000

42 Units in Alamo Square

$20,000,000

15-17 HOFFMAN ST, SAN FRANCISCO

2 Units in Noe Valley

10 Units in Potrero Hill

$3,988,000

$1,595,000

4248 23RD STREET, SAN FRANCISCO

3946-3948 26TH STREET, SAN FRANCISCO

2 Units Mixed-Use in Noe Valley

$1,795,000

4 Units in Noe Valley

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Considering Buying or Selling a Multi-Unit Property?

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M U LT I -U NI T. MI XE D-U S E . CO M M ER CI A L.

JU ST L I STE D

SF APARTMENT MAGAZINE | JUNE 2022

9

HOUSING INVENTORY LAW WEBINAR SFAA is holding webinars to help rental property owners navigate the housing registry process.

FRIDAY, JUNE 24 10:00 AM - 11:00 AM Turn to the calendar on page 42 for more information.

15, 2022, and is cosponsored by the Hous-

duration of more than 30 consecutive days

ing Action Coalition and the Silicon Valley

but less than one year.

Leadership Group.

The ILO program limits the number of ILO The above content was reprinted with

units to be permitted in the City to 1,000.

permission and written by Rueben, Junius

Owners of eligible ILO units must submit

& Rose Attorney Sabrina Eshsaghi.

an application no later than June 22, 2022.

Rent Board Registry Deadline July 1, 2022

A residential unit will not be eligible for this

Legislation to create a housing inventory

three or fewer units, if it’s subject to the In-

was passed by the Board of Supervisors

clusionary Affordable Housing Program, or

and became effective on January 18, 2021.

if it’s in a rent-controlled building, among

The legislation requires owners of residen-

other disqualifiers.

program if it is located in a building with

tial housing units in San Francisco to begin Specifically, the bill would require local

reporting certain information about their

For more information on ILOs, check out

jurisdictions to:

units to the Rent Board by July 1, 2022. The

“Planning Ahead” by M. Brett Gladstone in

Rent Board will use this information to cre-

the May issue of SF Apartment Magazine.

ate and maintain a “housing inventory” of

To find out if your building qualifies or to

ments for applications to be deemed

all units in San Francisco that are subject to

apply for a permit, visit sfplanning.org.

complete along with an example of

the Rent Ordinance.

• Publish an online checklist of require-

an ideal application that developers

California Mortgage Relief

can use as a reference. Cities with a

Owners will be required to report the infor-

The California Mortgage Relief Program

population of at least 250,000 will also

mation each year, using a form prepared by

was put in place to help owners who have

be required to accept and update the

the Rent Board. The Rent Board is develop-

fallen behind on their mortgage payments

status of applications online, including

ing a website, the Rent Board Portal (“the

due to the pandemic. Eligible Californians

noting whether anything is required

Portal”), which owners will use to submit

are encouraged to apply.

from the applicant.

the required information online. Once a property owner initially reports informa-

• Provide written notice regarding whether the application is complete

tain the information that has already been

within 15 days. If a local agency does

submitted. In future years, owners will only

not make a timely determination, the

have to edit the information when changes

application will be deemed complete.

occur with the property during the year, and then again for the required annual

• Approve or deny a post-entitlement

used for other Rent Board filings, including

application complete for projects with

petitions and documents.

up to 25 units, or within 60 days for

their county’s area median income • Missed a minimum of two mortgage payments before December 27, 2021 • Owe $80,000 or less to the mortgage servicer upon submitting the application

projects with 26 or more units. This

For more information, visit the Rent Board’s

would not apply if the city makes a

website at sfrb.org.

written finding that the permit may

• Own a single-family home, condo, or permanently affixed manufactured

have a specific adverse impact on pub-

This is an excerpt from an article by for-

lic health or safety and additional time

mer Rent Board Director Robert Collins

is necessary to process the application.

and Acting Rent Board Director Christine Varner. Check out our April edition of the

home • Suffered a pandemic-related financial hardship after January 21, 2020.

magazine for the full article.

appeal an incomplete determination within 60 days for projects with up to

Intermediate Length Occupancy (ILO) June 2022

25 units, or 90 days for projects with at

The Planning Code was amended in June

least 26 units.

2020 to regulate the leasing of residential

and denial of a complete application

• Household income at or below 100% of

reporting. Eventually, the Portal will also be

permit within 30 days of deeming the

• Provide a process for applicants to

Applicants must meet the below criteria:

tion about their units, the system will main-

To learn more about eligibility requirements, visit camortgagerelief.org/ who-is-eligible.

units for less than one year (ILO units).

The bill was introduced by Assembly

Intermediate Length Occupancy is defined

Members Rivas and Grayson on February

as the leasing of a residential unit for a

10

JUNE 2022 | SF APARTMENT MAGAZINE

The News… continued on page 60

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Adam Filly 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 2022

11

MARKET VIEW

COLUMN

Uptick-Tock w r i t t e n b y JAY GR E E N B E RG

The number of closings jumped around

As pricing picks up, this columnist is optimistic about the market’s future, despite rising interest rates and operating costs.

as well. There were 23 closings in 2018,

I

and 19 closings in 2021. During the first quarter of 2022, there were 28 closings, which is a 47% increase in a year-overyear comparison.

10-Plus Units

am writing this article in late

before jumping back up to $578 in

In the 10-plus-unit sector, the average

April. I’m thinking about this

2020—the highest price per square foot

price per square foot was $587 in 2018

time last year, when we were in

in a decade. Last year, in 2021, the price

and $523 in 2019 before leaping to $621

the early stages of reopening

per square foot dropped to $540, and in

in 2022. In 2021, the average price per

businesses and events. Today, many

2022 it dropped again to $507, a 6% de-

square foot dropped significantly to

neighborhoods are active and vibrant

crease in a year-over-year comparison.

$480, and in 2022, it dropped again to

as we move from the pandemic to the

$453, which is the lowest we’ve seen

endemic. Below, I report the statistics

The average gross rent multiplier (GRM)

through the end of the first quarter of

peaked in 2018, reaching 19.14. In 2019,

2022 regarding transaction levels and

GRMs dropped significantly to 16.47

Gross rent multipliers (GRMs) peaked

value indicators. There’s a glimpse of

before rebounding slightly to 17.17 in

in 2018 and slipped through year-end

stability returning to the marketplace.

2020. In 2021, the average GRM dropped

2021. GRMs spiked to 18.28 in 2018

far from 2018’s peak to 14.17. In 2022,

only to dive to 13.56 in 2019. The aver-

Downtown was one of the hardest-hit

we saw a 1% year-over-year increase as

age GRM then bounced from 17.02 in

areas during the pandemic, and we

GRMs inched back up to 14.85.

2020, to 13.38 in 2021, to 14.01 in 2022,

are finally seeing some closings and

since 2014.

which is a 4.7% increase in a year-over-

positive activity levels. Difficult times

The average cost per unit bounced up

are still ahead for property owners as

and down over the last five years. The

interest rates and operating costs are

average cost per unit was $503,000 in

The cost per unit had been trending up-

rising rapidly, and rents are city- and

2018, $472,000 in 2019, and $533,000 in

ward for years before reversing course

state-controlled. People continue to

2020, the highest price per unit we had

in 2019. The cost per unit was $439,000

return to the city for work, yet office

seen in a decade. The average cost per

in 2018 before dropping to $414,000 in

attendance remains far below pre-pan-

unit dropped significantly to $423,000

2019 and then rising again to $488,000

demic levels. I expect activity levels to

in 2021, but there’s been a solid increase

in 2020, the highest we had seen in a de-

remain solid throughout the year as

this year to $479,000, a 13.25% increase

cade. The cost per unit dove to $365,000

private capital seeks preservation and

in a year-over-year comparison.

in 2021, and it continued to slide in 2022

long-term appreciation.

year comparison.

to $325,000, an 11% decrease in a yearDollar volume for the 5-9-unit sector

12

17 closings in 2019, 25 closings in 2020,

over-year comparison.

The following are 2022 first quarter

was $74 million in 2018, and $48 million

(January – March) statistics for the 5-9-

in 2019, the lowest figure we’d seen in

The dollar volume in the 10-plus-unit

unit sector and the 10-plus-unit sector

five years. The dollar volume shot up to

sector reached $171 million in 2018

versus the same time period for 2018,

$82 million in 2020 before diving back

before diving to $57 million in 2019, the

2019, 2020, and 2021.

down again to $49 million in 2021. In

lowest we’d seen in a decade. In 2020,

2022, there was a dramatic increase

dollar volume increased dramatically to

5-9 Units

to $84.5 million in closings, which is

$236 million and then dropped again to

The average price per square foot

approximately a 72% increase in a year-

$100 million in 2021. We saw another de-

went from $557 in 2018 to $541 in 2019,

over-year comparison.

crease in 2022, with total dollar volume

JUNE 2022 | SF APARTMENT MAGAZINE

DAN McGUE

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Senior Commercial Broker Associate

Lic# 00656579 415.310.5787 | dan@danmcgue.com | www.danmcgue.com © 2019 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 SF APARTMENT MAGAZINE JUNE Equal Opportunity 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 2022 Estate LLC, dba Coldwell Banker Commercial Affiliates. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations.

13

coming in at $77 million, which is a 23%

Price Per Sq. Ft.

decrease in a year-over-year comparison.

$700 $600

As for the number of transactions, there

$500

were 21 closings in 2018, and in 2019, we set

$400

a new low record with only six closings. We

$300

ended the first quarter of 2020 with 22 clos-

5-9 Units

$200

ings, 2021 with 11 closings, and 2022 with

10+ Units

$100

13 closings, a slight improvement over the previous year.

$0

2018

2019

2020

2021

2022 Q1

Source: CoStar Comps

The sources of the numbers reported are Jay Greenberg, Vitaly Rutus, San Francisco Multiple Listing Service, and CostarComps.

Price Per Unit

Summary

$600,000

Looking at the first quarter, I see a mixed

$500,000

bag—but I see it positively. During the first

$400,000

transaction number declined in a year-over-

quarter of 2021, every value indicator and year comparison. During the first quarter of

$300,000

2022, we saw an increase in more than half

5-9 Units

$200,000

of these numbers.

10+ Units

$100,000

2018

2019

2020

2021

Based on these statistics, we can see the

2022 Q1

Source: CoStar Comps

market is stabilizing and improving. The 5-9-unit market has started the year off strong, with two of the three value indica-

30

tors increasing and big gains in dollar

Transactions

volume and closings. This market sector is dominated by local individual investors

YTD 5-9 Units

who typically manage their own port-

YTD 10+ Units

folios and do not want to compete with

20

the larger operators for larger properties.

There’s also a lower price point for these properties, with most selling in the $2-5

10

million range.

0

2018

2019

2020

2021

The market is frothy for well-priced build-

2022 Q1

Source: CoStar Comps

ings in prime locations. I was fortunate in listing and selling high-quality buildings at the start of the year. Each listing produced multiple non-contingent offers after two

Volume

$300

weeks of marketing, leading to a competitive bidding process that pushed selling

Millions

YTD 5-9 Units

$250 $200

I believe activity levels will pick up in the 10-plus-unit sector as we move through the

$150

year. This market sector usually starts slow

$100

and finishes strong. There are some sig-

$50 $0

nificant buildings currently in escrow and more on the way.

2018

2019

Source: CoStar Comps

14

prices five to ten percent above list price.

YTD 10+ Units

JUNE 2022 | SF APARTMENT MAGAZINE

2020

2021

2022 Through Q1

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SF APARTMENT MAGAZINE | JUNE 2022

15

And there have finally been transactions in

According to the California Employment

the downtown corridor, which has a sub-

Development Department (CAEDD), San

stantial amount of housing stock compared

Francisco employment numbers dropped

to the rest of the city. The boundaries of the

by approximately 92,000 (16%) as an im-

downtown corridor are California Street to

mediate impact of the pandemic, but then

the north, Van Ness Avenue to the west, and

recovered 72,500 jobs through February

Market Street to the south. The three sub-ar-

2022. The unemployment rate went from

eas of the market are the Financial District,

2.2% in February 2020 to 13% in April 2020

Lower Nob Hill, and the Tenderloin. The

and is now back down to 3%. On the flip

Downtown corridor, SOMA, and the Mis-

side, office attendance in the San Francisco

sion District had the most collateral damage

and San Jose metro areas is 68% below the

from the pandemic. A couple of downtown

pre-pandemic baseline average. Our entire

buildings recently closed after two and

industry is hopeful that workers will return

three years of marketing. Subsequently,

to office spaces during the coming year, yet

other downtown buildings have gone into

this is still a big question mark.

contract, and others are coming to the market. I see the activity taking place in the

Typical holding periods for most inves-

downtown corridor as further evidence of

tors in the San Francisco apartment market

stability returning to the marketplace.

would be categorized as long-term holds.

This is the reality for success in this product

At the end of 2021, I closed a transaction

type. Rent appreciation alone does not get

with a buyer who’d obtained a 10-year

owners ahead. Owners need the combi-

fixed-rate loan at 2.85%. Most of the loan

nation of rent appreciation and turnover,

programs today are in the high 3-percent to

which is ultimately out of the owners’ con-

low 4-percent range, and rates are expected

trol. Inevitably, over time, turnover and rent

to continue to climb as we move through

appreciation occur, affording long-term

the year. Some are predicting that rates

owners the luxury of setting asking rents

could reach the 5-percent range.

moderately below market rents to pick the

As interest rates rise, we expect cap rates

ment headaches and the need to reduce

best tenants. This alleviates some manageto follow, and this appears to be happen-

rents when a crisis does occur. Addition-

ing. From 2019 through year-end 2021,

ally, long-term owners benefit with a better

average cap rates were in the low to mid

property tax expense and typically low

4-percent range. For first quarter 2022, our

leverage debt.

average cap rate is 5 percent for sales of five units and up.

However, investors who bought in recent years could be straddled with an over-in-

Meanwhile, operating costs are increas-

flated property tax expense, reduced rents,

ing. PG&E raised their rates 8% in January

and increased operating costs.

and another 10.5% in March. More hikes are expected this summer, and PG&E is

Time heals. It is great to see most parts

lobbying for another 22% increase starting

of the city coming back to life after some

in 2023. Additionally, water and garbage

very trying times. I expect the market to

rates have risen, and the cost of materials

remain vibrant throughout the year. There

and labor has skyrocketed over the past

is plenty of capital in the private sector

couple of years, doubling the cost of reno-

looking for capital preservation with long-

vations. Most neighborhoods are back to

term appreciation.

pre-COVID-19 rents, yet many owners are saddled with COVID-19-era rents, whether as a result of rent reductions, or vacancies filled during that difficult time. The combination of these factors has taken a bite out of most owners’ net operating income (NOI) and equity.

16

JUNE 2022 | SF APARTMENT MAGAZINE

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

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17

COLUMN

MASTERS OF DISASTER

Porch Pirate Pushback written by FETCH

How the multifamily industry is fighting back against package theft.

O

evolved to help communities scale alongside escalating e-commerce trends and lessen or completely lift the package burden from onsite teams.

ver the past two years,

Ivy Residences Marketing Director Faith

However, there isn’t a one-size-fits-all

e-commerce surged to

Barker said a community’s chosen pack-

option. Depending on the property, tra-

unprecedented levels

age management solution has become a

ditional package management methods

and the global COVID-19

deciding factor for prospective renters

may still suffice. But it is crucial that the

weighing their options.

solution matches the community, ad-

pandemic drove consumers online. Dur-

equately serves the resident population,

ing the second quarter of 2020, the U.S. Postal Service reported a 50% increase

“We live in a world where renters

and offers the flexibility to accommo-

in deliveries over the same period as

consider not managing their packages

date the ever-increasing package volume

the previous year. But the trend wasn’t a

unacceptable. It’s an extension of them

moving forward.

flash in the pan. Since then, e-commerce

and their life,” Barker said. “We finally

has steadily increased, and market pro-

realized that, ultimately, this could be

With that in mind, here are some of the

jections indicate that online shopping

hurting our bottom line. People could

package management strategies opera-

will only continue to occupy a greater

choose not to renew because they are

tors have deployed:

share of overall consumer spending.

tired of sending their packages to be

What does that mean for multifamily

picked up elsewhere or just not getting

In-House Package Handling

them for various reasons.”

At smaller communities, or those with

communities? Packages, and plenty

the staff to facilitate full-time package Unfortunately, the reality is that onsite

management, in-house package receiv-

teams are overwhelmed by the recent

ing, storage, and distribution provide a

Property management companies have

increase in package volume. Customer

personalized touch for renters.

seen a record number of resident de-

service suffers when associates are

liveries land at their communities over

forced to spend an inordinate portion

The key to such a package system is a

the past two years. Unfortunately, that

of their days receiving and distributing

24-hour presence for receiving, a system

increased delivery volume has been

packages. Existing package infrastruc-

to accurately log package arrivals and

accompanied by an increase in related

ture is overflowing. To save time, carri-

generate notices to residents, and the

issues, namely package theft.

ers who previously ensured packages

capacity to store resident deliveries

were logged and secured are now

securely. Without a stationary concierge

According to a survey conducted by

simply dropping off a pile of pack-

service or other staff to receive and store

home safety and security information

ages and leaving them unprotected.

packages, deliveries may still get left ex-

provider SafeWise, 210 million pack-

The increase in delivery volume has

posed in the lobby or other areas of the

ages were stolen from residences over a

negatively impacted package manage-

property. Also, a lack of storage space or

12-month period ending in November

ment on several fronts. In some cases,

a system to ensure deliveries are picked

2021. More than 64% of U.S. residents

the situation became so overwhelm-

up in a timely manner could result in

were victims of package theft in 2021, an

ing and package theft so rampant that

overflow, inconveniencing teams, clut-

increase of 36% over the previous year.

some property management compa-

tering workspaces, and increasing the

nies actually discontinued deliveries at

risk of theft.

of them.

With more people relying on online

their communities.

orders for their daily needs, the risk

18

strategies. Fortunately, solutions have

Residents will appreciate having

of theft and lost packages has become

While halting deliveries altogether

their deliveries managed directly by

unacceptable to renters. Secure package

isn’t a sustainable solution, apartment

the onsite team, as long as packages

management has become an essential

operators have been forced to scramble

service at apartment communities.

to update their package management

JUNE 2022 | SF APARTMENT MAGAZINE

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19

Home Sweet Home Wr i t t e n b y NIKKI RESCH

The San Francisco rental market is one of incredible resilience. For decades, when it comes to market rents, we have seen the highest of highs and lowest of lows—boom and bust cycles, as they call it. However, there appears to be a light at the end of the tunnel: Rents have started trending upward for the first time since the beginning of the pandemic.

Before we look at where we are now, it is important to look back at where we have been. The real estate market is cyclical, and the history of the San Francisco market proves no different. For almost forty years now, the local rental housing market has been impacted by a number of unique factors, sending us on what seems like a never-ending roller coaster.

Starting with the 1989 earthquake: The market was hit hard, and housing prices plummeted. By the mid-90s into the early 2000s, the growth of Silicon Valley and the rise of the internet created an upward tick in housing costs, only to be shot down again with the financial crisis of 2008.

Yet by 2012, the city was once again on the rise. With the growth of tech giants like Google, Apple, and Facebook, the San Francisco rental market soared, hitting record highs in 2018 that would last throughout 2019. With the spread of the novel corona-

As many new and returning residents head back to the office, the local rental market is trending upward after a twoyear decline.

virus, once again, the market crashed. Our 2020 vision of continued market highs quickly shut down as vacancy rates soared and rents tumbled again.

Many have questioned if and how the city will recover after falling into such a deep low. However, in looking at historical data, the question should not be if we will recover but when we will recover. While it is impossible to predict just how quickly the market will rebound, current market data shows we might be closer than some think.

A recent market survey published by Apartment List in April 2022 reveals that while rents are still down by 3% in San Francisco compared to pre-pandemic numbers, they are also trending upward for the first time since the pandemic began. Rental growth was up by almost a whole percentage point in March 2022 alone.

In the sections below, you will see data from the portfolio of buildings managed

by Gaetani Real Estate throughout the City of San Francisco to explore this finding further. This sample set includes apartments rented across all districts from January 2019 through April 2022.

Market Highs of 2019 In 2019, the San Francisco rental market was at an all-time high, considered the most expensive city in the nation. Average monthly studio rents were at $1,892; one-bedrooms at $2,716; and two-bedrooms at $3,676 by year-end. The booming tech and financial industries drew workers to the city in droves, many willing to shell out a pretty penny for their apartments, as job opportunities were abundant.

Vision Blurred in 2020 Then came 2020. We had high hopes for continued rental growth as the market started strong in the first quarter. With the discovery of COVID-19, the declaration of a deadly pandemic, and detection of cases in the Bay Area, residents grew concerned and started fleeing the city at an alarming rate. We saw an uptick in vacancies beginning with the initial shelter-in-place order of March 2020, which continued throughout the year and into 2021. As large tech firms announced their

20

JUNE 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JUNE 2022

21

in-person offices would remain closed,

Making a Comeback in 2022

willing to live with roommates. There is

workers living with roommates wanted

As COVID-19 cases continued to drop

less anxiety over the spread of COVID-19,

more privacy and personal space, as they

in 2022 and employers started bringing

which makes roommate situations pos-

were confined to working in their homes

more workers back to the office, rents have

sible again.”

on a potentially permanent basis. For

increased across all unit types for the first

those living alone, feelings of isolation

time since the beginning of the pandemic.

many, the appeal of city life diminished.

With in-person classes back in session, and a decline in overall COVID-19 cases, a lot

and the need for outdoor space grew. For Studios are up by 5.1% over the previous

of the larger units (3-plus-bedroom apart-

year, with the average rent at $1,763; one-

ments) that were harder to rent over the last

As residents moved out of the city, we saw

bedroom apartments are up by 7.4%, with

two years are becoming more desirable.

rents plummet and vacancy numbers soar,

average rents at $2,576; and two-bedroom

ending the year with an astounding 18% va-

apartments are up by 4.2%, with an average

Market Shifts

cancy rate, compared to the 1-2% vacancy

rent of $3,410. Vacancy rates have dropped

While the rental market is improving in

rate we see in an average year. For property

to an average of 6% citywide. While not

many ways, it is declining in others. Many

owners, this was devastating.

quite back to the highs of 2019, data shows

people have become less inclined to live

that the market is slowly inching its way

in certain neighborhoods due to the rise

back to pre-pandemic figures.

in crime and the homeless population. We

With the rapid decline of the market, many landlords and investors became uncertain

face a continuous struggle renting units in

of the future. Rents were lowered, conces-

The trend of office re-openings has played

the Downtown and Tenderloin submarkets,

sions were offered, and current residents

a huge role in the growing success of the

even with lower rental rates. One can only

were incentivized to stay with better lease

2022 rental market. New and returning

hope that as the Financial District regains

terms and reduced rents. This spurred a

residents are preparing for a return to the

popularity with the workforce, the city will

large amount of movement within the city

office and steadily coming back to the city.

continue to improve the state of the streets,

with many intra-city relocations, yet vacancy rates continued to rise.

which will facilitate rental growth in the According to Nicholas O’Leary, a member

areas hit hardest by COVID-19.

of the Gaetani leasing team, “As some em-

Not So Fun in 2021

ployers are requiring workers to come back

On the contrary, neighborhoods such as

As the world was in doubt and more work-

to work in person, more people want to

the Marina and Pacific Heights have held

ers were temporarily furloughed, unem-

move closer to where they work; they don’t

stable rental prices and occupancy rates

ployed for extended periods, or working

want a long commute. People are moving

as many deem these neighborhoods a safe

remotely, San Francisco rents continued to

back to the city.”

and clean place to live. While this has been the case for a while, the success of these

drop in 2021. By year-end, rents were down by 11.3% compared to 2019.

With average weekly office attendance now

submarkets proves that safety and cleanli-

surpassing the 30% mark, we see the tight

ness remain a priority for many renters.

As rents continued to fall and more move-in

correlation between local businesses, espe-

specials emerged, some residents found

cially large tech and financial companies,

According to CoStar data, the April 2022

themselves in a position to afford living on

and the city’s rental market.

vacancy rate in the Marina-Pacific HeightsPresidio submarket was down to 5%—the

their own for the very first time. Roommate situations became less common, as was the

As for those who continue to work from

case in 2020, and individuals sought their

home, O’Leary has seen two requests re-

own private spaces to live and work from

main constant when people are searching

As the San Francisco market shifts and

home more comfortably.

for an apartment: the need for a home of-

changes, positive rental growth is on the

fice and some sort of outdoor space. “Since

horizon, both in occupancy and rental

Again, we saw a lot of movement within the

people are spending a lot of time at home,

rates. With the busy summer months upon

city, and it was not until mid- to late-2021

a functional living space with a place to get

us, and data to support a climbing market, it

that there was a noticeable increase in

fresh air has never been more desirable.”

is easy to envision a profitable and eventful upcoming rental season. Slowly but surely,

people moving back to San Francisco. As some of the large tech firms reopened with

Shorter-term leases are also on the decline.

a hybrid remote/in-office model, we saw an

People are asking less often for a term un-

increase in leasing activity. Data from the

der one year, which tells us that people are

San Francisco Controller’s Office shows that

here to stay.

up through early December 2021, average weekly office attendance was up almost

O’Leary also pointed out that as schools

30%, which has now more than doubled

and universities reopen, “More students

since January of the same year.

are moving back to the city and are more

22

JUNE 2022 | SF APARTMENT MAGAZINE

lowest in San Francisco.

we are making a comeback.

Nikki Resch is a leasing manager at Gaetani Real Estate. For more information, visit gaetanirealestate.com.

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SF APARTMENT MAGAZINE | JUNE 2022

25

ALL DECKED OUT Wr i t t e n b y

DE C K & B A L C O N Y I N S PE C T IO N S , I NC .

If your apartment isn’t compliant with Section 604 requirements yet, book your inspection immediately to avoid fines and fees and to keep your tenants safe.

Are you an apartment owner or manager in San Francisco? If

Ultimately, the purpose of Section 604 is to eliminate avoid-

so, your units may be affected by San Francisco’s Section 604.

able accidents or deaths that occur on elevated elements and keep multi-story buildings safer throughout San Francisco.

As the owner or manager of an apartment, you care about keeping your tenants safe and avoiding fines and fees levied

What types of buildings are affected by Section 604?

by the city.

The code covers all apartment buildings, residential condos with at least three units, and hotels with six or more rooms

In this article, we discuss the requirements and standards of Section 604, how to stay in compliance, and what to do if your building isn’t in compliance.

What is Section 604?

for guests.

According to the code: All wood and metal decks, balconies, landings, exit corridors, stairway systems, guard rails, handrails, fire escapes, or any

Section 604 of the San Francisco Housing Code ensures that

parts thereof in weather-exposed areas of apartment buildings

building attachments and exterior elevated elements (EEEs)

and hotels shall be inspected by a licensed general contractor

are safe, structurally sound, and up to code.

or a structural pest control licensee, or a licensed professional architect or engineer, verifying that the exit system, corridor,

One of the oldest codes of its kind, Section 604 was passed

balcony, deck or any part thereof is in a general safe condition,

in San Francisco in 2003. As such, it predates other Califor-

in good working order, and free from hazardous dry rot, fun-

nia deck and balcony laws, like Senate Bill 721 or Senate Bill

gus, deterioration, decay, or improper alteration.

326. (For more on Senate Bill 721, turn to page 28).

The code applies specifically to weather-exposed areas (de-

Who can perform a Section 604 inspection and what are the requirements?

fined as building components that aren’t inside a structure),

According to Section 604, licensed general contractors, engi-

decks, and fire escapes.

neers and architects, and structural pest control professionals can legally perform Section 604 inspections.

If repairs to any of these elements are required, the code

26

requires building owners and managers to complete the

If you own an apartment building in San Francisco, you’ll need

repairs promptly.

to abide by this set of stringent inspection guidelines:

JUNE 2022 | SF APARTMENT MAGAZINE

SF APARTMENT MAGAZINE | JUNE 2022

27

verify that everything is structurally

your apartment building and run endo-

ate 100% of your apartment building’s

sound. If we notice any areas of con-

scopic cameras through the holes. This

exterior elevatedelements (EEE).

cern, we’ll outline them in our detailed

allows us to inspect concealed EEEs thor-

inspection report.

oughly and accurately.

• Your Section 604 inspector must evalu-

• If there are needed repairs, you must make them immediately.

• The report. Our interactive, color-

Section 604 vs. Senate Bill 721

coded report details all our inspection

Apartment owners in San Francisco may be

findings, so you know exactly which of

familiar with another deck and balcony law

must provide proof of compliance with

your EEEs require repairs and which

in California: SB 721. Despite their similar

an affidavit form signed by your in-

are in good condition. Our report is

focus, the two rules have different stan-

spector and submitted to the Housing

fully interactive and can be updated to

dards and requirements.

Inspection Services Division.

reflect completed repairs.

• After your Section 604 inspection, you

Here are a few differences you should be • You must have your apartment building re-inspected every five years.

• Signing the affidavit. Finally, per Secinspector will sign the Compliance Af-

When was the deadline for compliance?

Section 604’s compliance deadline was

aware of:

tion 604 requirements, your building • SB 721 focuses solely on apartment

fidavit, which you’ll then submit to the

buildings with three or more units. Sec-

Housing Inspection Services Division.

tion 604 includes hotels, motels, nonresidential buildings, and apartments.

April 1, 2022.

How are Section 604 inspections conducted?

If your apartment building still isn’t in

Now that we’ve discussed the requirements

evaluate wood-framed balconies,

compliance with Section 604, you could be

of a Section 604 inspection, you may be

decks, elevated walkways, handrails,

facing hefty fines and code enforcement ac-

wondering what tactics inspectors use to

and guardrails. Section 604’s require-

tions by the city of San Francisco.

conduct said inspections. Below are a few

ments include metal decks and balco-

of the methods our team utilizes.

nies, handrails, guardrails, fire escapes,

If your building is currently out of compli-

• SB 721 only requires inspectors to

and wood-framed EEEs.

ance, book your inspection immediately.

Visual Inspections

The demand for Section 604 inspections

Visual inspections are the bedrock of Sec-

is high, and there are a limited number of

tion 604 inspections. During the visual

conduct Section 604 inspections

qualified professionals in the Bay Area who

portion of the inspection, a licensed build-

but not SB 721 inspections.

can perform the inspections.

ing inspector will evaluate the exposed surfaces of a building’s EEEs, attachment

According to Housing Inspection Services, the San Francisco Housing Code

points, and other critical components.

• Structural pest inspectors can

• Section 604 requires inspection of 100% of an apartment’s EEEs. SB 721 only requires the assessment of 15%

has the right to levy code enforcement

Moisture Sensors

actions against apartment managers or

Section 604’s inspection requirements fo-

owners who don’t file completed Section

cus on evaluating EEEs for water damage.

604 affidavits.

Our team uses moisture sensors to check

ments, inspectors must sign an affidavit

EEEs for dry rot and other moisture-related

when they conclude their inspection.

What Can You Expect During a Section 604 Inspection?

issues and provide complete peace of mind

of EEEs. • To comply with Section 604 require-

Here are the steps our team at Deck & Bal-

may also use infrared inspections to in-

Will I be compliant with Section 604 if I comply with SB 721?

cony Inspections, Inc. follows:

spect concealed wood elements.

No. If your apartment building has met the

• Initial evaluation and free estimate.

for apartment owners and managers. We

Endoscopic Testing

compliance requirements for SB 721, that doesn’t mean you’re automatically compliant with San Francisco’s Section 604 laws.

Before we perform your Section 604 in-

We frequently use endoscopic testing

spection, we’ll evaluate your property

to check for dry rot and similar issues.

and deliver a free estimate. During this

Less destructive and invasive than other

Figuring out the compliance requirements

appointment, we’ll also schedule your

inspection methods, endoscopic testing

of both laws can be difficult. We recom-

official Section 604 inspection.

can accurately detect even small amounts

mend working with an expert inspector

of moisture.

who understands both laws’ requirements and can ensure you are fully compliant.

• The full inspection. On the day of the Section 604 inspection appointment,

To conduct endoscopic testing, we make

we’ll evaluate your building’s EEEs and

a series of tiny access holes in the soffit of

28

JUNE 2022 | SF APARTMENT MAGAZINE

Multi-family residential property sales among top 7 brokers in San Francisco in units sold over 5 quarters* 300 250 200 150 100 50 0 — Other San Francisco Brokerages — * Unit sales volume, transaction-side sales reported to SFARMLS, 1/1/20 –3/31/21, per Broker Metrics as of 4/4/21. Sales reported to MLS: Not all sales are reported.

5+ Unit multi-family property sales in units sold over 5 quarters* among top 7 brokers in San Francisco 60 50 40 30 20 10 0 — Other San Francisco Brokerages — * Unit sales volume, transaction-side sales reported to SFARMLS, 1/1/20 – 3/31/21, per Broker Metrics as of 4/4/21. Sales reported to MLS: Not all sales are reported.

SF APARTMENT MAGAZINE | JUNE 2022

29

Deck & Balcony Inspections, Inc. You can’t afford to compromise when you book a Section 604 inspection.

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JUNE 2022 | SF APARTMENT MAGAZINE

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31

Masters of Disaster… continued from page 18

lockers constantly. There were always packages scattered everywhere.”

are secured, arrival notices are prompt, packages can be picked up at their con-

Locker systems are viable options for prop-

venience, and the service isn’t limited to

erties with lower delivery numbers, or with

office hours. While a well-run in-house

the physical space and budget to install

package service is a true value to resi-

additional banks of lockers as package

dents, it also exposes the management

volume continues to grow. However, when

company to potential liability issues. The

lockers overflow or aren’t diligently used by

more that associates are involved, the

carriers, onsite teams are called back into

more responsibility operators assume.

the package management game.

Companies must carefully weigh the benefits of in-house package management

Package Rooms

against the potential risks.

Package rooms expand the benefits of

Package Lockers

lockable storage. Typically equipped with access controls allowing only residents and

Package lockers became the go-to pack-

team members to enter, package rooms

age solution for many properties a decade

prevent public access to deliveries while

ago. The benefits, as the name suggests,

granting 24-hour package availability to

are that packages can be safely locked

residents. While package rooms can vary

away and residents can pick them up at

substantially in size and features, they gen-

their convenience.

erally improve upon the locker concept in terms of storage capacity—especially when

With the continued escalation of e-com-

it comes to oversized deliveries. Some pack-

merce, the challenge now facing multifam-

age rooms also feature refrigerated space

ily properties is having enough lockers

for perishable items.

—and a variety of locker sizes—to accom-

ALL ABOUT FETCH Fetch was founded in 2016 in Dallas, Texas, and has since expanded across the country to scale with current and new clients. The last-mile package delivery company currently operates in Atlanta, Austin, Charlotte, Chicago, Dallas/Fort Worth, Denver, Fort Lauderdale, Houston, Jacksonville, Miami, Minneapolis, Nashville, Orlando, Palm Beach, Philadelphia, Phoenix, Portland, Raleigh-Durham, San Antonio, San Francisco, Seattle, Tampa and Washington, D.C. Fetch accepts deliveries at local Fetchoperated facilities and works directly with residents to schedule door-todoor delivery.

The proven system solves the package problem for multifamily properties and provides residents with a convenient and time-saving amenity.

With e-commerce growing rapidly, Fetch is a scalable solution for apartment owners and managers struggling to deal with the exponential growth of resident deliveries.

Fetch currently serves more than 250,000 apartment homes at 900 communities. For more information, visit fetchpackage.com.

modate the current package volume. The

In terms of theft prevention, the drawback

system works efficiently when communi-

to package rooms is that packages aren’t

ties achieve the right ratio of lockers to

individually stored, and all residents have

that space, further decrease package

residents and enough oversized lockers

access to all packages, making them vulner-

theft, and reclaim lost revenue.

to accommodate large items. When the

able to theft within the community, or inad-

package volume begins to exceed the ca-

vertent pick-up. If an unauthorized person

pacity of the lockers, however, the system

does gain access to the package room, they

Off-Site Storage, Direct-to-Door Delivery

can lead to unattended packages and the

have access to all deliveries, which creates

Traditional pre-pandemic multifamily pack-

potential for package theft. Also, if carri-

liability issues for the community. Package

age solutions are still viable in the right cir-

ers don’t diligently use the locker system,

rooms also enable carriers to drop-and-go

cumstances, but none of them fully remove

packages may be left in the open and

in bulk, creating cluttered, disorganized

package management responsibilities from

picked up by anyone passing through.

rooms, inconvenient for residents when

onsite teams. What many operators have

they pick up their packages, and creating

determined over the past two years—and

more work for onsite teams.

especially since the emergence of industry-

The limitations of onsite solutions surfaced quickly when e-commerce took off two

wide staffing challenges—is that they don’t

years ago. Many multifamily operators who

Aside from package security, the main

want their onsite associates spending their

installed locker systems before the pan-

consideration for developers and man-

valuable time on residents’ packages. Leas-

demic-driven e-commerce surge have since

agement companies is whether they

ing associates were hired to lease homes.

found their locker capacities inadequate.

want to dedicate that much onsite real

Maintenance techs were hired to keep

Companies are now removing them just to

estate to packages. The space required

up the community. Package management

avoid the clutter they create.

to adequately store resident packages is

doesn’t appear in either job description.

substantial, and that square footage isn’t “My community installed lockers just after

generating as much revenue as possible.

Many property management companies

we moved in three years ago, and they’re al-

Communities with room to spare have the

have turned to off-site third-party services,

ready removing them,” said renter Michelle

luxury of carving out perfectly functional

like Fetch (see sidebar on this page), which

Wood, who also works in the apartment

package rooms and addressing many of

handle resident packages from receipt

industry. “The lockers were always so full

their package theft issues. But solutions

to delivery. Third-party services receive

that packages were stacked up outside the

exist that enable operators to repurpose

resident packages at an off-site facility and

32

JUNE 2022 | SF APARTMENT MAGAZINE

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store them long-term. Refrigerated space is readily available. When a package arrives, the resident receives an alert through an app on their smart device, through which they can schedule direct-to-door delivery and select a delivery window, typically same-day. Residents can secure their own packages by choosing to have items delivered only when they are available to receive them.

When deliveries are handed off directly to residents and packages aren’t stored on site, the opportunity for package theft is essentially eliminated. Liability is lifted from the community, as is any associate’s involvement in residents’ packages.

The concept requires an adjustment for renters accustomed to the package management solutions traditionally used by

Ways to Connect.

Email SFAA at MemberQuestions@sfaa.org to have your questions and concerns promptly addressed, or call the office at 415-255-2288. You can also 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 twitter.com/SFAptAssoc •

New sfaa.org website launched!

•

Email SFAA at MemberQuestions@sfaa.org

•

Connect with SFAA on Facebook

•

Follow SFAA on Twitter at twitter.com/SFAptAssoc

apartment communities. Not every resident is tech-savvy or wants yet another app on their phone. But most prefer the ability to manage their own packages and control their deliveries through their smart devices.

Multifamily operators have several options when it comes to combating the ever-increasing package volume and the associated theft concerns at the community level.

Whether operators prefer a completely hands-on approach, an onsite infrastructure-based system, or an outsourced solution that works directly with residents, key factors must be considered. Ultimately, it’s about finding the right fit for the community and the resident demographic.

E-commerce is only going to increase, and so is the need for secure and sustainable package solutions.

Go Online!

Get information on SFAA classes, apartment industry news & excerpts from SF Apartment Magazine at www.sfaa.org

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JUNE 2022 | SF APARTMENT MAGAZINE

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35

COLUMN

LEGAL Q&A

Days on End w r i t t e n b y VA R IOU S AU T HOR S

New legislation requires owners to send a ten-day warning to offending residents before sending a formal three-day notice.

Q.

I’m confused by the new ten-day notice legislation. Do I have to serve both a ten-day notice and a three-day notice?

What is the difference?

may only be delivered when there is an actual breach of the rental agreement, owners are likely to be stuck waiting until the third or fourth week of the month before initiating nonpayment of rent eviction actions in court. Also, the ten-day warning period seemingly permits a resident to keep curing and then re-offending. Indeed, the above smok-

that they have ten days after receipt of

ing example is apropos. Someone could

the written warning to rectify whatever

smoke, be warned, stop, and then start

it is the owner finds to be problematic.

smoking again only to receive another

Only after the ten-day period expires

ten-day warning.

may the owner issue a formal three-day notice, and only after the three-day pe-

In response to the law’s passage, SFAA

riod expires may the owner commence

brought a legal challenge against the

ing notice to be sent before an owner

eviction proceedings in court. In es-

City on the basis that local legislatures

may serve a formal eviction notice.

sence, this new procedural requirement

cannot in most instances change state

The new ten-day warning procedure

affords tenants about 15 to 20 days to ad-

eviction procedural regulations. By

was legislatively created because of a

dress landlord grievances. Both the Rent

injecting this ten-day requirement

concern that some residents might not

Board and the SFAA have developed a

onto most unlawful detainer (eviction)

have enough time to cure objectionable

ten-day form to use.

proceedings that are governed by state

A. San Francisco now requires a warn-

statutes, the Board of Supervisors may

conduct or may otherwise be confused about when a lease violation has to stop.

[To access the SFAA form, go to sfaa.

have overstepped its authority. So please

In response, this ten-day “cure period”

org/Resources/Forms-and-Signs. To ac-

stay tuned to the SFAA announcements

was implemented to, in the words of

cess the Rent Board form, go to sfrb.org/

regarding this industry challenge. How-

the Supervisors, “provide clarity around

forms-center.]

ever, until there is final resolution in our favor, please continue to use the ten-day

what constitutes just cause” to terminate a tenancy so as to avoid a potential hous-

The ten-day rule applies to the follow-

ing displacement.

ing “just causes” under the San Francisco

warning notice.

—Dave Wasserman

Rent Ordinance: (i) failure to pay rent; So, here’s how it works: Under State law,

(ii) breach of a lease covenant; (iii) the

tenants are usually afforded three days

commission of a nuisance; (iv) using

to cure a lease violation, whether that

the apartment for an illegal purpose;

violation is a failure to pay rent, to rec-

(v) refusing to renew an expiring lease

tify the breach of a lease obligation, or

term; and (vi) denying the landlord law-

to curtail objectionable behavior. For ex-

ful access to the residence. The ten-day

ample, if the resident is smoking inside

rule does not apply when the tenant is

the residence and the lease prohibits

causing or creating an imminent risk of

ing Act commands that an owner of

smoking, an owner may issue a notice

physical harm to persons or property.

residential real property may establish

giving the tenant three days to stop this

36

Q.

A tenant wants to move to a similar apartment in a nearby building that I own. Can I charge a new, higher rental rate?

A. The Costa-Hawkins Rental Housthe initial rental rate for a dwelling or

activity or risk being evicted. There are

One problem with this new rule is that

unit, notwithstanding any other provi-

a series of rules that determine how the

the ten-day notice elongates the rent

sion of law. Generally speaking, there-

three days are to be counted, so often-

collection processes. Since the ten-day

fore, the creation of a new tenancy, in a

times tenants are not aware of when the

warning must be issued and must expire

vacant apartment, even with someone

deadline exists for the cure period. The

before the three-day demand may be

who happens to be an existing tenant of

new ten-day rule informs the offenders

sent, and because the ten-day notice

yours, may be initially set to market rate.

JUNE 2022 | SF APARTMENT MAGAZINE

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JUNE 2022 | SF APARTMENT MAGAZINE

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Check Out What’s New at SFAA!

The San Francisco Apartment Association is your rental housing resource. SFAA has been working round-the-clock educating, advocating for, and supporting the rental housing community so that its members operate ethically and fairly.

1.

SFAA’s New and Improved Website Is Live!

Our new website makes it easier than ever to access the information, market surveys, education, and forms you need to manage your rental properties. The streamlined website allows SFAA members to quickly sign up for classes, access preferred vendors, and get legislative updates. Go to sfaa.org today!

2.

SF Apartment Magazine is Now Available Digitally!

The official publication of SFAA, SF Apartment Magazine reaches approximately 6,000 readers in print each month. Now that the publication is accessible digitally, members can access the invaluable content from anywhere—and advertisers have an even broader reach. Go to sfaa.org/magazine today!

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39

Costa-Hawkins has some exceptions: For instance, if the previous tenancy in the vacant unit was terminated for a non-fault reason (e.g., an owner move-in eviction)

paying rent for COVID-19-related reasons. What are my options?

A. Please note that by the time this article

Small claims court cannot award possession or order a tenant to vacate.

If a rental assistance application for rent

within the last five years, a “new tenancy”

is released there could be changes to the

due between October 1, 2021, and March

would still be subject to the old rate (as well

law. For the past few years, the law has

31, 2022 has not been approved, then you

as some other constraints you would want

been volatile as it relates to landlord-tenant

may consider serving a three-day notice to

to consider before renting to a tenant).

and housing rights. Before moving forward

pay rent or quit. The three-day notice will

with any legal action, you should consult

need to contain specific language required

with a real estate attorney.

by the state law.

eviction at your tenant’s current apartment,

California lawmakers agreed to extend

For rent due after March 31, you may pro-

as the Rent Ordinance requires you to of-

some eviction protections just hours before

ceed with a three-day notice to pay rent

fer a vacant unit you have available. Two

these protections were set to expire on

or quit. However, San Francisco recently

decades ago, it also wanted you to base

March 31, 2022. California’s eviction mora-

passed a law requiring a landlord to first

the rent for that new unit on the tenant’s

torium, under Assembly Bill 2179, has been

give the tenant a written ten-day notice

previous rent (with adjustments based on

extended until June 30, 2022, for those who

and opportunity to cure for rent due after

condition, size, and amenities). Landlords

have applied for rental assistance but have

March 31. The San Francisco Rent Board

challenged this as a violation of Costa-

not yet received it.

has created a form for this, which can be

This would still be the result if, for instance, you are performing an owner move-in

found on its website (sfrb.org). Note that

Hawkins’ vacancy decontrol provision, and California has been offering rent relief and

this new law is being challenged in court,

assistance throughout the pandemic. Ac-

and it is currently unenforceable pending

There are certainly some exotic scenarios

cording to the rental assistance program,

further court hearing. Nevertheless, out of

that might change the outcome here. For in-

they have been overwhelmed by appli-

an abundance of caution, it may be prudent

stance, if your building has affordable hous-

cants. Although, California’s rental assis-

to give the ten-day notice until such time as

ing units, those would be rent-restricted

tance program is no longer accepting new

we have a full and final court decision.

even when vacant. But in most cases, volun-

applications, renters are still awarded some

tarily vacant equals market rate.

protections if they have an application that

With the many requirements and penal-

is pending. The extension applies to pay-

ties that may be imposed on landlords, it is

the Court of Appeal agreed.

Something stands out about your question

ments due on or before March 31, 2022.

strongly encouraged that you seek the advice of a knowledgeable landlord attorney

though. You’re wondering if you can charge “higher rents.” Market rents are still down

The first thing to ask yourself is, “Do

from pre-pandemic levels (and certainly

I have a pending application with the

from the peak), so that suggests a longer-

rental assistance program?” If an applica-

term tenant paying considerably lower than

tion is pending, then that generally means

market rate.

that the rental assistance program is still in the process of reviewing the applica-

I wonder why they want to go through

tion, has not yet issued a determination

the trouble of moving and the loss of rent

of the tenant’s eligibility for rental as-

control just to rent a “similar apartment” in

sistance, or the funds have not yet been

a “nearby building.” If this is a negotiated

disbursed. Before proceeding with any

vacate, like a buyout, they may be bargain-

course of action, you should ascertain the

ing for lower-than-market rent. Of course,

status of the application.

that’s fine (and may even be consideration for the agreement), but just keep in mind

If you or your tenant did not apply to the

that unless the new building is “new con-

rental assistance program for rent due prior

struction,” their new rate will be the rent-

to March 31, then you may consider filing

controlled rate going forward.

a small claims court action. However, the

before starting any eviction process.

—Angelica Sandoval The information contained in this article is general in nature. Consult the advice of an attorney for any specific problem. Dave Wasserman is with Wasserman Offices and can be reached at 415-567-9600. Justin A. Goodman is with Zacks, Freedman & Patterson, P.C. and can be reached at 415-956-8100. Angelica Sandoval is with Fried, Williams & Grice Connor, LLP and can be reached at 415-421-0100.

Know Your Numbers!

court may reduce the rent damages if the —Justin A. Goodman

Q. I know the state’s COVID-

19-rent-relief program expired in March 2022, but my tenant still isn’t

40

JUNE 2022 | SF APARTMENT MAGAZINE

tenant was eligible for rental assistance and the landlord did not cooperate with or apply for the rental assistance program.

In small claims court, you would request a court order for the back rent that is owed.

Turn to page 43 for updated information on allowable rent increases, security deposit interest and more.

S A N F R A N C I S C O A P A R T M E N T A S S O C I A T I O N

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sfaa 2 2022calendar

sfaa

June

WEDNESDAY, JUNE 1 Lunch & Learn Move-in Checklist Zoom Webinar System 12:00 pm to 1:00pm Members $45 Non-Members $65

THURSDAY, JUNE 2 Intellirent Demonstration Zoom Webinar System 10:00 a.m. to 11:00 a.m.

Free for Members

MONDAY, JUNE 6 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, JUNE 8 Lunch & Learn Annual Increases Zoom Webinar System 12:00 p.m. to 1:00 p.m.

Members $45 Non Members $65

FRIDAY, JUNE 10 Roommate & Tenancy During COVID Zoom Webinar System 10:00 a.m. to 12:00 p.m.

Members $45 Non Members $65

WEDNESDAY, JUNE 15 Lunch & Learn Capital Improvements Petitions Zoom Webinar System 12:00 p.m. to 1:00 p.m.

Members $45 Non Members $65

THURSDAY, JUNE 16 Legal Structures for PropertyRelated Tax Impacts Zoom Webinar System 10:00 a.m. to 11:00 a.m.

Members $45 Non Members $65

WEDNESDAY, JUNE 22 Virtual Member Meeting 9:00 a.m.

WEDNESDAY, JUNE 22 SFAA Online Lease Demonstration Zoom Webinar System 10:00 a.m. to 11:00 a.m.

Free for Members

FRIDAY, JUNE 24 New Housing Inventory Law Zoom Webinar System 10:00 a.m. to 11:00 a.m.

Members $45 Non Members $65

SFAA offices will be closed on July 4th in observance of Independence Day.

July WEDNESDAY, JULY 6 Lunch & Learn Nuisance/Animals Zoom Webinar System 12:00 p.m. to 1:00 p.m.

Members $45 Non Members $65

MONDAY, JULY 11 Board of Directors Mtg. 11:30 a.m.

WEDNESDAY, JULY 13 Lunch & Learn Nusiance/Hoarding Zoom Webinar System 12:00 p.m. to 1:00 p.m.

Members $45 Non Members $65

WEDNESDAY, JULY 20 Lunch & Learn Nusiance/Smells Zoom Webinar System 12:00 p.m. to 1:00 p.m.

Members $45 Non Members $65

WEDNESDAY, JULY 27 Lunch & Learn Nuisance/Smoking Zoom Webinar System 12:00 p.m. to 1:00 p.m.

Members $45 Non Members $65

SFAA MEMBER MEETINGS ARE HELD VIRTUALLY DUE TO COVID-19. FOR TOPICS AND SCHEDULES, VISIT SFAA.ORG.

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JUNE 2022 | SF APARTMENT MAGAZINE

WEDNESDAY, JULY 20 Virtual Member Meeting 9:00 a.m.

join online at sfaa.org or call 415.255.2288

2022 join online at sfaa.org or call 415.255.2288

SAN FRANCISCO’S

RENT BOARD FEE

$29.50

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 2021-2022

$29.50

CAPITAL IMPROVEMENTS

SFAA’S

TENANT SCREENING SERVICE

The capital improvement interest rates for 3/1/21 through 2/28/22 are listed below:

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.

AMORTIZATION

INT. RATE

MULTIPLIER

7 YEARS

0.8%

.01225

10 YEARS

1.0%

.00876

15 YEARS

1.2%

.00607

20 YEARS

1.4%

.00478

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

03/01/22 - 02/28/23

0.1%

03/01/21 - 02/28/22

0.6%

03/01/20 - 02/28/21

2.2%

03/01/19 - 02/29/20

2.2%

03/01/18 - 02/28/19

1.2%

2020-2021

$25.00

2019-2020

$25.00

2018-2019

$22.50

2017-2018

$22.50

2016-2017

$20.00

2015-2016

$18.50

03/01/17 - 02/28/18

0.6%

$18.00

03/01/16 - 02/28/17

0.2%

03/01/15 - 02/29/16

0.1%

03/01/14 - 02/28/15

0.3%

03/01/13 - 02/28/14

0.4%

03/01/12 - 02/28/13

0.4%

03/01/11 - 02/29/12

0.4%

2014-2015 2013-2014

$14.50

2012-2013

$14.50

CONTACT INTELLIRENT FOR MORE INFORMATION:

415-849-4400

2011-2012

$14.50

2010-2011

$14.50

2009-2010

$14.50

03/01/10 - 02/28/11

0.9%

2008-2009

$14.50

03/01/09 - 02/28/10

3.1%

2007-2008

$13.00

03/01/08 - 02/28/09

5.2%

2006-2007

$11.00

03/01/07 - 02/29/08

5.2%

2005-2006

$10.00

2004-2005

$11.00

2003-2004

$21.50

CONTACT THE SAN FRANCISCO RENT BOARD FOR MORE INFORMATION

415-252-4600 sfgov.org/rentboard

ALLOWABLE RENT INCREASES

2022 – 2023: 2.3%

Effective March 1, 2022, through February 28, 2023, the allowable annual rent increase is 2.3 %.

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

03/01/22 - 02/28/23

2.3%

03/01/21 - 02/28/22

.7%

03/01/20 - 02/28/21

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

& information SF APARTMENT MAGAZINE | JUNE 2022

43

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• 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.0219.rentals-in-sf.pdf

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JUNE 2022 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | JUNE 2022

45

5/20/11 1:16 PM

SFAA Professional Services Directory

1031 TAX DEFERRED EXCHANGE SERVICES

LAWYERS EQUITY EXCHANGE Brian Fogarty 415-701-1234 www.lex1031.com SEQUENT Eric Scaff (415) 834-1031 sequent-rewm.com escaff@sequent-rewm.com

ACCOUNTANTS

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

ALARM COMPANY

AEC ALARMS Stephanie Chen 408-298-8888 Ext: 121 sc36@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 Renee A. Engelen www.ppmaofsf.org renee@hrhrealestate.com

ATTORNEYS

415-861-8800

ILENE M. HOCHSTEIN, ATTORNEY AT LAW Ilene Hochstein (650) 877-8288 ilene@hochsteinlaw.net 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 LAW OFFICES OF DENISE A. LEADBETTER Denise Leadbetter 415-713-8680 www.leadbetterlaw.com LAW OFFICES OF SCOTT T. OKAMOTO Scott T. Okamoto 415-766-5871 www.scottokamotolaw.com LAW OFFICES OF DANIEL PICCININI Daniel Piccinini 415-345-8610 danielpiccinini@att.net LAW OFFICE OF JULIANA E. PISANI Juliana Pisani 415-800-7562 Juliana@jpisanilaw.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

BARTH CALDERON, LLP Paul Hitchcock Paul@barthattorneys.com

415-577-4685

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

BORNSTEIN LAW Daniel Bornstein, Esq. www.bornstein.law

415-409-7611

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

DOWLING & MARQUEZ, LLP Jak S. Marquez 415-977-0444 x232 www.dowlingmarquez.com FRANK KIM ESQ., EVICTION ASSISTANCE Jo Biel 415-752-6070 KIMBALL, TIREY & ST. JOHN LLP Kelli Dodson 800-525-1690 kelli.dodson@kts-law.com www.kts-law.com FRIED, WILLIAMS & GRICE CONNOR Clifford E. Fried 415-421-0100 www.friedwilliams.com HAAS NAJARIAN LLP Eric Murphy (415) 788-6330 emurphy@hnattorneys.com

46

HERZIG & BERLESE Barbara Herzig bherzig@hbcondolaw.com

JUNE 2022 | SF APARTMENT MAGAZINE

MCLAUGHLIN SANCHEZ, LLP Michael McLaughlin 415-655-9753 www.msllp.law MILLAR AND ASSOCIATES, APLC James Millar 415-981-8100 x101 Millar-law.com NIVEN & SMITH Leo M. LaRocca leo@nivensmith.com

415-981-5451

REUBEN, JUNIUS & ROSE, LLP Kevin Rose 415-567-9000 www.reubenlaw.com

STEVEN ADAIR MACDONALD & ASSOCIATES, PC Steven Adair MacDonald (415) 956-6488 www.samlaw.net sam@samlaw.net WASSERMAN Dave Wasserman 415-567-9600 Dave@wassermanoffices.com www.davewassermansf.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 SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com PREMIER CANINE DETECTION Jordan Garcia 415-612-6645 www.premiercaninedectection.com

COMMERCIAL/RETAIL LEASING SERVICES BLATTEIS REALTY CO. David Blastteis www.sfretail.net

415-981-2844

CONSULTANTS: PERMITS & PLANNING

EDRINGTON AND ASSOCIATES Steven Edrington 510-749-4880 steve@edringtonandassociates.com

CORPORATE RENTALS AMSI Robb Fleischer www.amsires.com

415-447-2020

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

CREDIT REPORTING

INTELLIRENT Cassandra Joachim www.myintellirent.com

415-849-4400

DRAIN SERVICES

PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com

ENVIRONMENTAL CONSULTING

P.W. STEPHENS ENVIRONMENTAL Sheri Buenz 510-651-9506 sherib@pwsei.com

FIRE ESCAPE INSPECTION & MAINTENANCE

BAY AREA CHIMNEY & FIRE ESCAPE INSPECTIONS Jerry Charton 415-333-5509 jerrycharton11@gmail.com ESCAPE ARTISTS Jabal Engelhard www.sfescapeartists.com

415-279-6113

GREAT ESCAPE SERVICES Rich Henderson 415-566-1479 www.greatescapeservice.com

FIRE PROTECTION CONTRACTORS AEC ALARMS

408-298-8888 Ext: 121 SFfire@aec-alarms.com BATTALION ONE FIRE PROTECTION Tim Morse 510-653-8075 www.battaliononefire.com COMMERCIAL FIRE PROTECTION, INC. Laine Sims 925-300-9534 www.fireprotected.com EMERGENCY SYSTEMS, INC. Eric Hagerman (415) 564-0400 esmfire@earthlink.net MAZZY’S FIRE PROTECTION Scott Mazzarella 415-665-5553 www.mazzysfire.com PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.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 VALET LIVING Briana Sellers 813-613-5073 briana.sellers@valetliving.com www.valetliving.com

INSURANCE COMPANIES

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

LENDING / FINANCIAL SERVICES 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

PACKAGE SERVICE

FETCH Dan Beary 978-503-9540 dbeary@fetchpackage.com

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

415-254-7818

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

415-822-2011

PAINTING SUPPLIES

DUNN-EDWARDS PAINTS Daniela Franco 415-656-9951 daniela.franco@dunnedwards.com

PEST CONTROL

LENDING / INSTITUTIONS

ATCO PEST & TERMITE CONTROL & HOME RESTORATION Richard Estrada 415-898-2282 www.atcopestcontrol.com

CHASE COMMERCIAL TERM LENDING Sharon Groenendyk 415-315-8464 www.chase.com/commercialbanking

CROWN & SHIELD PEST SOLUTIONS-PREMIER Aurora Garcia-Vidaca 415-893-9551 www.crownandshieldpestsolutions.com

CHASE APARTMENT LENDING Andre C. Ferrigno 415-644-2171

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

MAVEN MAINTENANCE, INC. Craig Lipton 415-829-2207 www.mavenmaintenance.com WEST COAST PROPERTY MANAGEMENT Joseph Keng 415-885-6970 ext. 101 www.wcpm.com

MEDIATION

THE BAR ASSOCIATION OF SAN FRANCISCO CONFLICT INTERVENTION SERVICE Scott Goering 415-782-8940 sgoering@sfbar.org

ONLINE PAYMENT SERVICES

ARM MULTI INSURANCE SERVICES Lisa Isom 866-913-6293 www.arm-i.com

IMANAGE RENTS Hatef Maoghimi hatef@imanagerent.com wwwimanagerent.com

BARBARY INSURANCE BROKERAGE Gerald Becerra 415-788-4700 www.barbaryinsurance.com

ROOST Chanin Balance chanin@joinroost.com

415-547-0049

(503) 888-2528

THERMAL SOLUTIONS Jeremy Bedford (925) 381-6426 office@thermalsolutionspc.com

PLUMBING & HEATING

C.R. REICHEL ENGINEERING CO. INC. Tim Lordier 415-431-7100 www.crreichel.com PRIBUSS ENGINEERING, INC. Selina Pribuss 650-588-0447 selina.p@pribuss.com www.pribuss.com R & L Plumbing 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

PROJECT MANAGEMENT CREATIVE WEALTH CAPITAL MichaelGallin mike@creativewealthcapital.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

SF APARTMENT MAGAZINE | JUNE 2022

47

AMORE REAL ESTATE, INC Jerry Hsieh 415-567-4800 www.amoresf.com

CITYWIDE PROPERTY MANAGEMENT Carol Cosgrove 415-552-7300 www.citywidesf.com

EQUITY ONE Brenda M. Obra www.equity1sf.com

AYS MANAGEMENT Kevin Newsome 510-708-0165 ayspropertymanager@gmail.com

CREATIVE WEALTH CAPTIAL Michael Gallin 415-779-6241 mike@creativewealthcapital.com

GAETANI REAL ESTATE Paul Gaetani 415-668-1202 www.gaetanirealestate.com

BEAM PROPERTIES, INC. Darius Chan darius@sfbeam.com

DEWOLF REALTY CO. INC. William A. Talmage www.dewolfsf.com

415-221-2032

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

BORN PROPERTY MANAGEMENT Jason Born 650-271-7048 x 111 Jason@bornpm.com

EBALDC Felicia Scruggs FScruggs@ebaldc.org

510-287-5353

GREENTREE PROPERTY MANAGEMENT Scott Moore 415-828-8757 www.greentreepmco.com

BROOKFIELD PROPERTY GROUPPRESIDIO LANDMARK Jon King 855-327-5376 jon.king@brookfieldproperties.com

EMBC Nancy Wong www.ebmc.com nancywong@ebmc.com

415-254-8679

(707) 584-5123

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

PAUL LANGLEY COMPANY Misha Langley 415-431-9104 x 301 misha@plco.net

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

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

CECCHINI REALTY CO. Dante Cecchini, CCRM www.cecchinirealty.com

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

415-550-8855

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 415-828-8757 www.greentreepmco.com HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com J. WAVRO PROPERTY MANAGEMENT James Wavro 415-509-3456 LINGSCH REALTY Natalie M. Drees www.lingschrealty.com

48

415-648-1516

PROPERTY MANAGEMENT SYSTEMS Michelle L. Horneff-Cohen 415-661-3860 www.propertymanagementsystems.net REAL MANAGEMENT COMPANY J.J. Panzer 415-821-3167 www.RMCsf.com S&L REALTY Robert Link www.slrealty-sf.com

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.sutroproperties.com VERTEX PROPERTY GROUP Craig Berendt 415-608-3050 vertexsf.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 2022 | SF APARTMENT MAGAZINE

415-386-3111

415-441-1200

GM GREEN REAL ESTATE INC. George Green 415-608-6485 ggreen@gmgreen.com www.gmgreen.com GORDON CLIFFORD PROPERTIES, INC. Patrick Clifford 415-613-7694 patrick@gcpropertiessf.com HOGAN & VEST INC. Simon Wong hoganvest.com

415-421-7116

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com INCOME PROPERTY SPECIALISTS Clayton Llewellyn 408-446-0848 www.ipsmanagement.cc JACKSON GROUP PROPERTY MANGEMENT, INC. Raymond Scarabosio 415-608-8300 ray@jacksongroup.net JAMES D. MULLIN REAL ESTATE BROKER James D. Mullin 415-470-0450 jamesdmullinre@gmail.com JD MANAGEMENT GROUP, INC. Jonathan Davis 510-387-7792 jonathan.davis@jdmginc.com LINGSCH REALTY Natalie M. Dress www.lingschrealty.com

415-648-1516

MERIDIAN MANAGEMENT GROUP Randall Chapman 415-434-9700 www.mmgprop.com MICSPACES, INC. Naeem Farhokhnia naeem@mlcspaces.com

818-404-8996

MYND MANAGEMENT, INC. Stacy Winship 510-306-4440 www.mynd.co NEW GENERATION INVESTMENTS Jonathan Ng 415-735-8233 jtng.ngi@gmail.com OPEN WORLD PROPERTIES Jonathan Daryl Fleming 510-250-0946 jonathan@openworldproperties.com www.Openworldproperties.Com PAUL LANGLEY COMPANY Misha Langley 415-431-9104 x 301 misha@plco.net PILLAR CAPITAL REAL ESTATE Jonathan Ng (415) 885-9584 jonathan@thepillarcapital.com PONTAR REAL ESTATE Merri Pontar 415-421-2877 www.pontarrealestate.com

PRIME METROPOLIS PROPERTIES, INC. Tom Chan 415-731-0303 tomchan@pmp1988.com

VERTEX PROPERTIESS Craig Berendt craig.berendt@gmail.com

PROEQUITYAM Frank Bumbalo frank@proequityam.com

415-531-2669

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

PROGRESSIVE PROPERTY GROUP Dace Dislere 415-794-9727 www.progressivesf.com

PROPERTY MANAGEMENT SOFTWARE

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 ROCKAWAY RESIDENTIAL MANAGEMENT Kristine Abbey 650-290-3084 www.rockawayresidential.com ROCKWELL PROPERTIES Mark Kaplan 415-398-2400 propertymanagement@rockwellproperties.com RNB PROPERTY MANAGEMENT GOLDEN GATE Kaveh Gorgani 415-413-3827 kaveh@rnbemail.com www.rnbgoldengate.com SAN FRANCISCO RENTAL CONCIERGE Danielle Mahoney 415-532-0041 danielle@sfrentalconcierge.com www.sfrentalconcierge.com SHARVEST PROPERTY MANAGEMENT, LLC Timothy D. Gilmartin 650-347-2020 tim@thegilmartins.com SIGNATURE REALTY PROPERTY MANAGEMENT Paul Montalvo 650-364-3167 paul@paulmontalvo.com SIERRA PROPERTY PROFESSIONALS Sonali Herrera sierrappinc@gmail.com SKYLINE PMG, INC. Nicholas Bowers 415-968-9903 Nicholas@skylinepmg.com STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com SUTRO PROPERTY MANAGEMENT, INC. Salman Shariat 415-341-8774 www.SutroProperties.com THRIVE PROPERTY MANAGEMENT, INC. Giovani Franco 650-296-3880 www.thrivecommunities.com W. PROPERTY MANAGEMENT Gary Petrison 707-545-6187 gary@wpropertymanagement.com WEST COAST PROPERTY MANAGEMENT Eric Andresen 415-885-6970 www.wcpm.com WEST & PRASZKER REALTORS Michael Klestoff 415-699-3266 www.wprealtors.com WOOD PARTNERS Melissa Rankin 628-251-1101 melissa.rankin@woodpartners.com

415-608-3050

APPFOLIO Mindy Sorenson 805-364-6098 mindy.sorenson@appfolio.com HEMLANE, INC. Dana Dunford dana@hemlane.com

385-355-4361

YARDI Kelly Krier kelly.krier@yardi.com

805-699-2040

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

REAL ESTATE BROKERS & AGENTS

ALAIN PINEL INVESTMENT GROUP Mirella Webb 415-814-6699 mwebb@apr.com BERKSHIRE HATHAWAY FRANCISCAN PROPERTIES Edward Milestone 415-994-5969 MilestoneRealEstateSF@gmail.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- JAMES DEVINCENTI James Devincenti 415-288-7848 www.THEDLTEAM.com COLLIERS INTERNATIONAL Payam Nejad 415-288-7872 www.colliers.com/payam.nejad

EXP COMMERICAL Jeremy Williams 415-932-9846 jeremy@jeremywilliams.com www.sfcommercialrealty.com FERRIGNO REAL ESTATE Chris Ferrigno 415-641-0661 www.ferrignorealestate.com HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com ICON REAL ESTATE INC. Jason Quashnofsky jason@iconsf.com

(415) 370-7077

JHG415, INC. Jay Greenberg jay@jayhgreenberg.com

415-378-6755

KILBY STENKAMP-VANGUARD PROPERTIES Kilby Stenkamp 415-370-7582 LESLIE BURNLEY Leslie Burnley leslie.j.burnley@gmail.com leslieburnley.com

415-717-8709

MARCUS & MILLICHAP Sanford Skeie 415-625-2153 www.marcusmillichap.com MORGAN REAL ESTATE ADVISORS, INC. Laurence Morgan 415-300-6503 laurence@morganrealestateadvisor.com www.morganrealestateadvisor.com NEWMARK KNIGHT FRANK Matthew C. Sheridan 415-273-2179 aptgroupsf.com S&L REALTY Robert Link www.slrealty-sf.com

415-386-3111

STEELE PROPERTIES Ryan Steele 415-881-7762 www.steeleproperties.com W. REAL ESTATE Tim Mueller 415-961-6531 timothymueller@hotmail.com WEST & PRASZKER REALTORS Michael Klestoff 415-312-2245 klestoffmre@aol.com

COMPASS COMMERCIAL BROKERAGE John Antonini 415-794-9510 john@antoninisf.com

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

COMPASS COMMERCIAL BROKERAGE Chris J. Connor chris.oconnor@compass.com

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

COMPASS COMMERCIAL BROKERAGE Adam Filly 415-516-9843 adam@adamfilly.com

REAL ESTATE INVESTMENTS

COMPASS COMMERCIAL BROKERAGE John Kirkpatrick (425) 412-0559 john.kirkpatrick@compass.com www.johnkirkpatrick.com COMPASS COMMERCIAL BROKERAGE Jay Greenberg (415) 378-6755 jay@jayhgreenberg.com CORCORAN GLOBAL LIVING COMMERCIAL Terrence Jones 415-786-2216 terrence@terrencejonesSF.com www.terrencejones.com

COMPASS COMMERCIAL BROKERAGE Trigg Splenda 415-593-8616

MARCUS MILLICHAP Clinton C. Textor III 415-425-9123 www.marcusmillichap.com

REFINISHING / RESURFACING SERVICE

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

DINO MONTEVERDE dino@starboardnet.com

SF APARTMENT MAGAZINE | JUNE 2022

49

sfaa sfaa 2022 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

Units

Base Fee

Units Fee

$425 +

$7 per unit =

23 +

$380 +

$9 per unit =

TOTAL UNIT AMOUNT:

TOTAL AMOUNT:

Base Fee

1-22

$525 +

$4.50 per unit =

$480 +

$6.50 per unit =

CONTACT INFORMATION

Company/Title

Zip

J. WAVRO ASSOCIATES James Wavro www.jwavro.com

Mobile Phone Email Address

Website PAYMENT METHOD MC

949-702-1508

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

Address

Amex

(844) 459-1495

HAMILTON FAMILY CENTER Mayo Lunt 510-763-8540 x230 www.hamiltonfamiles.org

Contact Person

Check

COSTAR Aj Herlitz www.costargroup.com aherlitz@costar.com

GORDON CLIFFORD PROPERTIES, INC. PatrickClifford 415-613-7694 patrick@gcpropertiessf.com

ASSOCIATE MEMBER DUES: $499

State

RENTAL LISTING SERVICES

RESIDENTIAL LEASING

TOTAL AMOUNT:

City

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

ZUMPER, INC. Connor Hodges connor@zumper.com www.zumper.com

Unit Fee

23 + TOTAL UNIT AMOUNT:

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

REALPAGE Stacey Blackwell 972-820-3015 stacey.blackwell@realpage.com www.realpage.com

MANAGEMENT COMPANY DUES Units

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

HRH REAL ESTATE SERVICES CORPORATION Renee A. Engelen (415) 810-6020 www.hrhrealestate.com

REGULAR MEMBER DUES

1-22

RENT BOARD PETITIONS

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

415-509-3456

KENNEY AND EVEREST REAL ESTATE, INC. Maureen Kenney 415-929-0717 maureen@kenneyrealestate.com LINGSCH REALTY Natalie M. Drees www.lingschrealty.com RELISTO Eric Baird www.relisto.com eric@relisto.com

415-648-1516

415-236-6116, x101

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

415-409-3263

RENTSFNOW Claussen kclaussen@veritasinv.com

415-762-0213

STRUCTURE PROPERTIES Corey Eckert 415-794-0064 www.structureproperties.com VERTEX PROPERTIES Craig Berendt 415-608-3050 www.berendtproperties.com 265 IVY STREET | SAN FRANCISCO, CA | 94102 | PHONE 415-255-2288 | FAX 415-255-1112

50

JUNE 2022 | SF APARTMENT MAGAZINE

ROOFING

AGUILEAR CONSTRUCTION & ROOFING Javier Aguilera (707) 495-3932 javier@aguileraco.com

SECURITY

ADT SECURITY MULTIFAMILY Jeanette Mendez (817) 776-0301 jjmendez@adt.com TRKA AMERICAS Isabella Restrepo irestrepo@trakausa.com

407-735-1728

SECURITY DEPOSIT ALTERNATIVES THE GUARANTORS Jules Thetford jules@theguarantors.com

214-403-2792

SEISMIC RETROFIT & STRUCTURAL ENGINEERING THE GUARANTORS Jules Thetford jules@theguarantors.com

214-403-2792

BAI CONSTRUCTION Behnam Afshar 510-595-1994, x101 www.baiconstruction.com W. CHARLES PERRY Charles Perry www.wcharlesperry.com

650-638-9546

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

SUBMETERS

LIVABLE Daniel Sharabi www.livable.com

CONTRACTOR OR VENDOR?

ALARM COMPANIES

AEC Alarms

ARCHITECTURE & DESIGN SERVICES

Adapt Dwellings Openscope Studio ATTORNEYS

Dowling & Marquez, LLP Fried, Williams & Grice Conner LLP Kaufman, Dolowich & Voluck Rhino Process Serving, LLC Zacks, Freedman & Patterson, PC LENDING SERVICES

Luther Burbank Savings FIRE ESCAPE CONTRACTORS

Great Escape Fire Escape LOCKSMITHS

415-937-7283

TENANT PLACEMENT & LISTING

CAZERIA, INC Julia D’Antonio julia@cazeira.com

ad index NEED A PROFESSIONAL

415-754-5373

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

WATER CONSERVATION SERVICE

Crown Lock & Safe Warman Security PAINTING CONTRACTORS

Colores Painting Pac West Painting Tara Pro Painting

PETITION SERVICES

Rent Board Passthroughs

33 15 44 59 37 30 58 57 45 60 59 54

Real Management Company Rentals in SF Vertex Properties West Coast Property Management PROPERTY MANAGEMENT SOFTWARE

Yardi Breeze

59

19

REAL ESTATE BROKERS

Amore Real Estate 59 Coldwell Banker Commercial / McGue 13 Colliers / Devincenti 2 Compass / Antonini 63 Compass / Bonn & Webb 17 Compass / Filly 11 Compass / Greenberg & Splenda 3 Compass / Pugh 29 HRH Real Estate 38 Kay Properties 23 Marcus & Millichap 24-25 Maven Multifamily 35 Vanguard Commercial / Chapleau 9 Vanguard Properties / Stack 60 UTILITIES BILLING SERVICES

58 54 60

57 44 6 38

Livable

37

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.

PROPERTY MANAGEMENT & MAINTENANCE & RESIDENTIAL LEASING

Gaetani Real Estate, Inc. Maven Maintenance

64 31

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 APARTMENT MAGAZINE | JUNE 2022

51

COLUMN

COURT TALK

Crucial Counsel w r i t t e n b y C L I F F OR D F R I E D

In Crescent Capital Holdings, the claim-

If you intend to recover possession of a rental unit, hire an experienced lawyer before serving an eviction notice or filing a lawsuit.

ant filed a declaration in support of her

T

claim. She attached exhibits consisting of her residential lease with the previous owner of the property; a cable bill for internet service and addressed to the claimant at the property; and photos of the front and back of claimant’s California driver license, showing the subject

his edition of “Court Talk”

postjudgment claim of possession. The

property address as appellant’s address.

covers two court decisions

tenant’s claim was granted on appeal.

All of claimant’s evidence was very recent and appeared to have been created

that highlight the technicaliBy making a successful postjudgment

just before the previous owner lost the

and unlawful detainer actions. These are

claim, an occupant of the property will

property at a foreclosure sale.

very complicated procedures where one

be inserted into the unlawful detainer

mistake by the landlord can be detri-

action and will be entitled to his or her

The claimant’s testimony at the claim of

mental. If you intend to recover posses-

day in court. Should the claimant have a

right hearing was suspicious and raised

sion of a rental unit, hire an experienced

viable defense to the eviction, the land-

questions about the genuineness of

lawyer before serving an eviction notice

lord would lose the case and not regain

her claim. The claimant did not read or

or filing a lawsuit to recover possession.

possession of the premises.

write English but signed a lease written

Crescent Capital Holdings v.

Motiv8 Investments (January 14, 2022)

The reason landlords lose against

internet service after receiving only one

postjudgment claimants is because the

bill. Her driver’s license was brand new,

landlords don’t know that the claimants

but she did have an old one for driving

A tenant not named in the judgment

are on the property. In most eviction

in Mexico. She paid her rent in cash and

may challenge the eviction by filing a

cases, the service of an eviction notice is

had no receipts.

ties involved with evictions

in English. The claimant cancelled her

claim of right to possession of the prem-

a prerequisite to filing the unlawful de-

ises. It’s possible for a landlord to cut off

tainer action. Failing to serve the notice

The trial judge denied the claim of

a claim of right to possession by serving

usually means the landlord will lose the

right to possession after finding that

a prejudgment claim of right to posses-

case when an unknown occupant later

the claimant was not a bona fide tenant

sion form when serving the unlawful

surfaces and makes a claim.

at the property. The judge was not persuaded after evaluating the credibility

detainer action.

A postjudgment claimant is entitled

of both the oral testimony as well as

But some landlords, regretfully, omit

to be inserted into the unlawful de-

the written documentation that a valid

serving a prejudgment claim of right to

tainer action if the claimant proves,

claim of right to possession by a tenant

possession form. Or they don’t serve the

by a preponderance of evidence, that

was made.

form properly. The result can be painful

the claimant: (1) was an occupant of

for the landlord after obtaining an un-

the premises on the date the unlaw-

The trial judge was reversed on appeal.

lawful detainer judgment if a previously

ful detainer was filed; and (2) had a

The Court of Appeal found that the trial

unknown tenant surfaces and chal-

colorable right to possession in that

judge abused his discretion. The Court

lenges the eviction.

the occupancy was not as an invitee,

said whether the claimant is a bona fide

licensee, guest, or trespasser.

tenant, or her lease is a bona fide lease are issues to be litigated in the unlawful

In Crescent Capital Holdings v. Mo-

52

detainer trial.

tiv8 Investments, the landlord filed an

It is very easy to make a claim and

unlawful detainer action but failed to

prove these two elements. It’s espe-

serve a prejudgment claim of right form.

cially easy if the claimant is willing to

The trial court obviously found that

After the landlord obtained a judg-

fabricate evidence and create a fake

there was something suspect about the

ment for possession, a tenant filed a

occupancy and tenancy.

claimant’s lease. But the undisputed

JUNE 2022 | SF APARTMENT MAGAZINE

sfaa’s

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Come find out about San Francisco’s newly passed mandatory unit registration and licensing law. Soon all San Francisco landlords will have to annually register every rental unit with the Rent Board. The information that must be disclosed each year will include dates of occupancy, the square footage, amenities offered, the amount of rent, owner contact information, and more. In addition, you will have to obtain a unit license in order to adjust rent as well as satisfy other requirements under this very challenging regulation.

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This subtenant, roommate, and additional occupancy course addresses commonplace situations when the persons you originally leased to bring in new roommates, vacate the apartment yet leave people behind, submit rent payments from unknown persons, get married/have children while living in the apartment, or otherwise decide to change the make-up of who is living in your building either with or without your knowledge and consent.

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For more information, contact Stephanie Alonzo at 415.255.2288 x113 or stephanie@sfaa.org

SF APARTMENT MAGAZINE | JUNE 2022

53

sfaa sfaa 2022 What You Need to Know 2022 SFAA UPDATES

VIRTUAL MEMBER MEETING WEDNESDAY, JULY 22 9:00 A.M.

UPCOMING CLASSES During the pandemic, 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 42.

SFAA OFFICE CLOSURE While the SFAA office remains closed to the public, staff is working round-the-clock to keep the nonprofit running. Timely payment of membership dues is necessary to help the association help you. Email MemberQuestions@sfaa.org to have your questions and concerns promptly addressed.

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54

JUNE 2022 | SF APARTMENT MAGAZINE

415.775.8513

London N. Breed Mayor

ATTENTION

Tyrone Jue Acting Director

Dear San Francisco Property Manager, All residents and businesses must separate their refuse into recyclables, compostables and trash.

It’s the law in San Francisco.

If you are a property owner or management company who manages more than one property in San Francisco, please work with your site managers to ensure this information is distributed accordingly.

As a property manager, you are responsible for setting up refuse areas and providing ongoing recycling and composting support for your building’s residents, specifically: •

Providing residents with equally accessible, color-coded containers for recycling, composting, and trash, accompanied by instructional signs;

•

Providing recycling and composting information and training to building residents, janitors, and contractors annually to ensure compliance with the law; and

•

Ensuring that recycling, composting, and trash containers are only placed out after 6 pm the evening before collection and are stored out of view during non-collection hours

Failure to provide adequate refuse service and keep materials properly separated could result in increased refuse charges. Additionally, overflowing receptacles and illegal dumping are City code violations that can result in fines.

Visit sfenvironment.org/pm-tools to download a Zero Waste Guide, which your residents will soon receive by mail, and browse the Property Manager Toolkit, which includes instructional signs, a lease addendum about zero waste requirements, links to helpful resources from your service provider, Recology, and more.

Reduce your building’s refuse bill by following these simple steps: •

Donate unwanted stuff to reuse centers like Goodwill or Salvation Army

•

Use the free Bulky Item Recycling curbside pick-up program to remove up to 10 large, nonreusable items from the property annually

•

Remind residents that they get one free Bulky Item curbside pick-ups of up to 10 items per year too! Learn more at https://sfenvironment.org/bulky-items

•

Reuse, recycle, and compost everything you can by using the City’s recycling tool, SFRecycles.org

To request assistance, call (415) 355-3700 or email ResZeroWaste@sfgov.org.

Thank you for doing your part to help our community strive for zero waste!

Sincerely,

SF Environment San Francisco Environment Department 1155 Market Street, 3rd Floor, San Francisco, CA 94103 Telephone: (415) 355-3700 • Fax: (415) 554-6393 Email: environment@sfgov.org • SFEnvironment.org

Printed on 100% postconsumer recyclesd content paper.

SF APARTMENT MAGAZINE | JUNE 2022

55

evidence at the claim-of-right hearing was

possession of real property. To take advan-

rent payment shall be made,” as required by

that the claimant occupied the property at

tage of this summary remedy, the landlord

the statute and was invalid.

the time the unlawful detainer action was

must demonstrate strict compliance with

filed, had a two-year lease, and had other

the statutory notice requirements con-

SFAA and other groups provide notice

documentation indicating that she lived at

tained in Code of Civil Proc. § 1161 et seq.,

forms which, if filled out properly, will

the property.

including giving the tenant three days’

satisfy § 1161, subdivision (2). You should

written notice to pay rent or quit the prem-

be using these forms and taking classes on

In this case, the claimant met her burden

ises. Section 1161, subdivision (2) governs

how to properly fill out the forms.

for purposes of the hearing, and it was

the contents of the three-day notice when

not the trial judge’s job to determine the

a landlord wishes to evict a tenant because

truth of the tenancy claimed or whether

of default in the payment of rent. A three-

the claimant was a bona fide tenant. That

day notice that does not strictly comply

should be determined in an unlawful de-

with the requirements of § 1161, subdivi-

tainer trial and perhaps decided by a jury.

sion (2) is invalid.

It is very possible that the landlord in this

As relevant in this case, § 1161, subdivi-

case eventually prevailed in the unlawful

sion (2) requires that the notice state “the

detainer trial where the fact finder could

amount that is due, the name, telephone

decide whether it was more likely than not

number, and address of the person to

that the tenancy being claimed was fake.

whom the rent payment shall be made, and, if payment may be made personally, the

Perhaps the delay in recovering possession

usual days and hours that person will be

of this property could have been avoided

available to receive the payment. . . .”

by serving a prejudgment claim of right to possession form when serving the unlaw-

The landlord in this case served a notice

ful detainer action. Then again, when you

that instructed the payment be made to

buy at a foreclosure sale, you never know

two different people or entities. First, the

what you are really buying. Purchasers at

notice instructed the tenant to pay the un-

these sales don’t have a good opportunity

dersigned “Carrie Konjoyan, agent & owner

to inspect the property and don’t receive

for Craig and Carrie Ventura Corner LLC.”

disclosures about who might be living

Second, the notice demanded that “PAY-

there.

MENT MUST BE MADE and delivered to H&M Konjoyan.” The landlord argued that

Craig v. Joz Knowz (April 23, 2021)

the notice stated the name and address of

This case emphasizes the importance of

the person to whom rent shall be made.

filling out an eviction notice correctly. An incomplete or incorrect notice will lead to a

But the Court of Appeal ruled that there

waste of time and money for the landlord.

was a flaw in the three-day notice, namely that it cannot readily be determined from

In this unpublished decision, the Court of

its language who “the person to whom the

Appeal ruled that a three-day notice to pay

rent payment shall be made” is.

rent or quit was ambiguous, and it therefore did not strictly comply with the notice

The Court said the notice could be read to

requirements of the unlawful detainer

identify H&M Konjoyan as the “person,”

statutes, which were intended to prevent

given the directive that “PAYMENT MUST

tenant confusion by setting forth clear rules

BE MADE and delivered to H&M Kon-

regarding payment of rent.

joyan.” The notice also could be read to identify Carrie Konjoyan as the “person,”

In particular, the notice in this case could

based on the language stating, “you must

be read to identify at least two possible

pay the undersigned.” Because either inter-

recipients for the unpaid rent, without mak-

pretation is plausible, neither was clearly

ing clear which was the correct recipient.

the correct one.

An unlawful detainer action is a sum-

In short, the three-day notice failed to

mary proceeding to determine the right to

clearly identify “the person to whom the

56

JUNE 2022 | SF APARTMENT MAGAZINE

The information contained in this column is general in nature. Consult the advice of an attorney for any specific problem. Clifford E. Fried is with Fried & Williams, LLP and can be contacted at 415-421-0100.

THE MORE YOU KNOW The best way to protect yourself and your investment is to stay informed.

SFAA offers monthly member meetings and frequent educational webinars packed with vital information to help members manage their rental properties efficiently, legally, and ethically.

For a full list of classes and member meetings, turn to the calendar on page 42.

Legal Questions

?

Confused about local and statewide rental housing laws? Take advantage of SFAA’s legal information network.

Before every SFAA General Membership Meeting, a diverse panel of San Francisco landlord attorneys answers your questions about your property, your tenants and the San 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.

Zacks, Freedman & Patterson, PC – one of the Bay Area’s leading real estate law firms – is proud to announce the addition of three new attorneys to our team.

Laura Strazzo

Brian O’Neill

Maddy Zacks

Laura Strazzo brings broad insight into California real estate law. Her practice covers a range of real estate matters including land use, nondisclosure and boundary-line disputes, construction defects, landlord-tenant, and compliance issues. Laura also has experience in energy and environmental law.

Brian O’Neill brings extensive experience in land use and environmental law.

Prior to joining the firm, Brian worked at the California Coastal Commission on permit appeals for a wide range of projects, including subdivisions, commercial and residential development, affordable housing, and infrastructure. He regularly appears before planning commissions, city councils, and other government agencies.

Maddy Zacks’ practice focuses on real estate litigation, specifically landlord/tenant law. Before entering real estate practice, she worked as an extern for Magistrate Judge Jacqueline Scott Corley in the Northern District of California. She also worked at the Federal Public Defender’s office in Little Rock, Arkansas, where she drafted habeas corpus appeals for men on death row.

Attorney at Law

Attorney at Law

Attorney at Law

Zacks, Freedman & Patterson, PC • 601 Montgomery Street, Suite 400, San Francisco, CA 94111 415.956.8100 • info@zfplaw.com • www.zfplaw.com

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SF APARTMENT MAGAZINE | JUNE 2022

57

SLATE CARD JUNE 7, 2022, CALIFORNIA PRIMARY ELECTION BALLOT MEASURES

Proposition A

MUNI Reliability and Street Safety Bond

YES

Proposition B

Building Inspection Commission

NO

Proposition C

Recall Timelines and Vacancy Process

NO

Proposition D

Victims and Witness Rights

YES

Proposition E

Behested Payments

NO

Proposition F

Refuse Collection and Disposal

YES

Proposition G

Public Health and Emergency Leave

NO POSITION

Proposition H

District Attorney Chesa Boudin Recall

YES

For more information, visit sfaa.org or sfelections.sfgov.org/measures.

SLATE CARD IS FOR SFAA MEMBERS ONLY 58

JUNE 2022 | SF APARTMENT MAGAZINE

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SF APARTMENT MAGAZINE | JUNE 2022

59

The News… continued from page 10

The application process is now open. To apply for financial assistance or to learn more, visit camortgagerelief.org.

SFAA Updates

Website revamp: SFAA has revamped its website! The improved, easy-to-navigate site is up and running. Check it out at sfaa.org.

2022 SFAA Residential Tenancy

Agreement: The SFAA 2022 lease is available in-print and online. To access the lease, visit sfaa.org.

SFAA office reopening status: As SFAA pivots to provide you services during the pandemic, there is a new way to connect with SFAA. Email MemberQuestions@sfaa. org to have your questions and concerns promptly addressed. While the SFAA office remains closed to the public, 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.

SFAA classes: Classes are available online. SFAA is happy to announce that current CCRM students can continue their education right from home. We understand keeping up with education is crucial and want to assist our members to stay up to date. See the calendars on pages 42 and 62 for a full list of classes.

Mike Stack

Real Estate Advisor

Call or email me today for a free & private analysis of your property’s value.

415.580.9095

mikestack@vanguardsf.com MikeStackSF.com

D R E# 0193228 0

60

JUNE 2022 | SF APARTMENT MAGAZINE

2022 sfaa rental forms

Member Name Member # Email

BEGINNING OF TENANCY FORMS

MEMBER PRICE

NON-MEMBER PRICE

Application to Rent

$15 per 25

$40 per 25

SFAA Residental Rental Agreement- 2022

$25 each

$200 each

SFAA Residental Rental Agreement- 10 Pack

$225 pack

N/A

CAA Lease Agreement

$15 per 25

$40 per 25

CAA Rental Agreement- Month to Month

$15 per 25

$40 per 25

Guarantee of Rental Agreement

$15 per 25

$40 per 25

Holding Deposit

$15 per 25

$40 per 25

Lead Pamphlet - Protect your Family- 25 pack

$25 per 25

$40 per 25

Addendum to Rental Agreement

$15 per 25

$40 per 25

Parking Agreement

$15 per 25

$40 per 25

Pet Agreement

$15 per 25

$40 per 25

Storage Agreement

$15 per 25

$40 per 25

Assistive Animal Request & Documentation Packet

$15 per 25

$40 per 25

Move In/Move Out

$15 per 25

$40 per 25

Fire Safety Disclosure - SF

$15 per 25

$40 per 25

24 Hour Notice to Enter

$15 per 25

$40 per 25

AB 1482 - Notice of Exemption

$15 per 25

$40 per 25

AB 1482 - Properties Subject to

$15 per 25

$40 per 25

15 Day notice - Pay Rent or Quit

$15 per 25

$40 per 25

15 Day Notice - Perform Covenants or Quit

$15 per 25

$40 per 25

30 Day Notice - Change of Monthly Rent - SF

$15 per 25

$40 per 25

30 Day Change of Monthly Rent under AB-1482

$15 per 25

$40 per 25

90 Day Notice - Change of Monthly Rent- SF

$15 per 25

$40 per 25

Proof of Service

$15 per 25

$40 per 25

Security Deposit Interest & RB Fee - SF Only

$15 per 25

$40 per 25

Acknowledgement of Residents Intent to Vacate

$15 per 25

$40 per 25

Notice of Resident Option for Initial Inspection

$15 per 25

$40 per 25

Notice of Intial Inspection to Residents

$15 per 25

$40 per 25

Itemized Disposition of Security Deposit

$15 per 25

$40 per 25

Notice of Belief of Abandonment

$15 per 25

$40 per 25

On-Site Resident Mgr. Employee Agreement (set)

$15 per 25

$40 per 25

Estoppel Certifcation

$15 per 25

$40 per 25

Prop 65 Sign - Plastic

$10 each

$25 each

Prop 65 Warning Addendum

$15 per 25

$40 per 25

QUANITY

COST

DURING TENANCY FORMS

END OF TENANCY FORMS

MISCELLANEOUS FORMS

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

Check

Invoice

Sub-Total: 8.625% Tax: Postage Flat Rate:

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

San Francisco Apartment Association

265 IVY STREET

TOTAL:

SF APARTMENT MAGAZINE • SAN FRANCISCO, CA • 94102 • PHONE 415-255-2288 • FAX 415-255-1112 • WWW.SFAA.ORG

| JUNE 2022

61

2022 Summer Day CCRM Webinar Series Schedule & Registration Course Course Name #

Date

PRICE

Time

Member

# of NonTotal Member Attendees

Series

Full CCRM Series (Value Savings)

PMR100

Introduction to Ethical Property Management

5/11/2022

2PM-5PM

$85.00

$100.00

PMR101

Renting the Property

5/18/2022

2PM-5PM

$85.00

$100.00

PMR102

Beginning and Maintaining the Tenancy

5/25/2022

2PM-5PM

$85.00

$100.00

PMR103

Renewal of Tenancy and Ending the Tenancy

6/1/2022

2PM-5PM

$85.00

$100.00

PMR104

Maintenance Management: Maintaining the Property

6/8/2022

2PM-5PM

$85.00

$100.00

PMR105

Liability & Risk Management

6/15/2022

2PM-5PM

$85.00

$100.00

PMR106

Budget Development and Implementation

6/22/2022

2PM-5PM

$85.00

$100.00

PMR107

Fair Housing: It’s the Law

6/29/2022

2PM-5PM

$85.00

$100.00

PMR108

Professional Skills for Supervisors

7/6/2022

2PM-5PM

$85.00

$100.00

EXAM

CCRM Final Exam

7/13/2022

2PM-5PM

FREE

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

See schedule below

FREE

Total Due:

To Register

Online: www.sfaa.org Call: 415-255-2288 x.113 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)

62

caanet.org events@caanet.org

JUNE 2022 | SF•APARTMENT 800.967.4222 980 Ninth MAGAZINE Street, Suite 1430 • Sacramento, CA 95814

JOHN ANTONINI + DANIEL FOLEY MULTIFAMILY + MIXED-USE + ADD-VALUE "Someone's sitting in the shade today because someone planted a tree a long time ago" -Warren Buffett

SOLD: 2440 Market Street 12 Units, Large Garage $467 price/ft, 14.7 GRM Seller Financed Corner of Castro + Market Call for Details

$3,075,000 FOR SALE: 1640 Golden Gate Ave 7 Units in Alamo Square Well Maintained, Clean Seismic Retrofit Completed 4.3% Cap Rate, 14.7 GRM $468 price/foot

$2,995,000 John Antonini

Daniel Foley

415.794.9510

415.866.7997

john@antoninisf.com

daniel@danielfoley.com

www.antoninisf.com

www.danielfoley.com

DRE 01842830

DRE 01866714

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.

SF APARTMENT MAGAZINE | JUNE 2022

63

TO MOST PEOPLE, THIS BUILDING’S KEY FEATURE IS ITS IMPRESSIVE FACADE

*

TO YOU, IT’S THE FOUNDATION FOR A SECURE RETIREMENT. We know the properties we manage mean more to owners like you than meets the eye. That’s why, for over 70 years and across three generations of our own family, we’ve taken the long view -- building great working relationships as we build value. Because when it comes to taking care of your investment, we definitely see eye-to-eye.

gaetanirealestate.com 415.668.1202