Written by Apartment Management Magazine on . Posted in Blog, Laws & Regulations, Leases & Legal

SEPTEMBER 3, 2020

Governor Signs Assembly Bill 3088, the “Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020”

Bill Passed by Overwhelming Majority, Bipartisan Vote in Both the Assembly (59-9) and Senate (33-2)

As anticipated, late Monday night, Assembly Bill 3088, the “Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020” was signed into law by Governor Gavin Newsom and takes effect immediately.  The “key” provisions contained in the legislation are described below.

Written by Apartment Management Magazine on . Posted in Blog

In response to the Coronavirus (COVID-19) pandemic, cities throughout California are issuing orders and adopting urgency ordinances establishing temporary eviction moratoriums on evictions due to non-payment of rent for renters impacted by COVID-19.  Some cities are also prohibiting “no-fault” evictions except in limited circumstances.  In addition, some cities are also prohibiting Ellis Act evictions.

The number of cities that have instituted temporary eviction moratoriums continues to expand.  The list provided below is a sampling of the cities, with links to their orders and/or ordinances, that have implemented temporary moratoriums and not inclusive of all the cities that may adopt such moratoriums.  The Apartment Association of Greater Los Angeles is committed to providing updated information throughout the pandemic.

Coronavirus (COVID-19): How Should Landlords Respond?

Written by Apartment Management Magazine on . Posted in Blog, For Landlords, Landlord Tips, safety

Rely on the People Who Know Science.

When coronavirus has been detected in a rental unit, the first and most compelling course of action is to call local public health officials to seek guidance in how to handle it.

Ask the infected tenant to voluntarily place themselves in a hospital facility, or at a bare minimum, self-isolate themselves.  For someone who exhibited symptoms or has tested positive, the most prudent course of action is to admit themselves into a medical facility. We still do not yet know, though, if the health care system can accommodate an influx of patients. In last Sunday’s press conference, New York Governor Andrew Cuomo says a serious concern for his state (and, by extension, California) is that the number of infected people can severely tax the resources of hospitals.  Alternatively, a resident who tests positive for the virus can ideally self-isolate themselves in the rental unit.  Asking someone to sever ties with the rest of the world, of course, is a request that is hard to swallow, but hopefully heeded.  Tenants who are infected should be told that in the interest of transparency, other residents will be notified that someone in the building has tested positive; however, the name of the inflicted tenant shall remain anonymous.

Public Health Advisory – March 24, 2020 Event Postponed

Written by Apartment Management Magazine on . Posted in Blog

As the situation surrounding COVID-19 (coronavirus) continues to evolve, the Apartment Association of Greater Los Angeles and the producer of the Income Property Management Expo & Maintenance Mania has been committed to working closely with the City of Pasadena Public Health Department, Los Angeles County Department of Public Health and we have been monitoring guidance being communicated by the Centers for Disease Control and Prevention.

State public health experts have determined that gatherings should be postponed or canceled across the state until at least the end of March. Non-essential gatherings must be limited to no more than 250 people, while smaller events can proceed only if the organizers can implement social distancing of 6 feet per person. Gatherings of individuals who are at higher risk for severe illness from COVID-19 should be limited to no more than 10 people, while also following social distancing guidelines.

As a result, we are postponing the March 24th Income Property Management Expo until Wednesday, October 7th.  The Expo at that time will again take place at the Pasadena Convention Center. In addition, Maintenance Mania will be cancelled until further notice. Additional information regarding the event will be made available as soon as possible.

New California Rental Housing Laws: AB 1482 Is Only the Beginning…

Written by Apartment Management Magazine on . Posted in Blog

While the rental housing industry in California has been abuzz about the latest rent control and “just cause” eviction law (more on that below), Gov. Newsom has passed five other rental laws. From extended rent increase notices to the mandatory acceptance of Section 8 vouchers, you won’t want to miss these other hot-off-the-press laws.

Shining a Light on 2020 Tax Planning: The Importance of Year-End Planning

Written by Apartment Management Magazine on . Posted in Blog, Webinar

WHEN: 11:00 A.M. – 12:00 P.M. on Tuesday, December 2nd, 2020

Shining a Light on 2020 Tax Planning:  The Importance of Year-End Planning

The year started as a normal filing season, but with the Coronavirus pandemic, there is now a lot more to consider from a tax planning standpoint. From working at home, to the CARES Act to other legislative issues and of course, this being an election year, you want to make sure to set aside some time with YOUR tax advisor before the end of the year, who will discuss the best tax-saving strategies that fit YOUR situation.  If you have been wondering if a year-end planning session with your accountant is needed soon, well, the short answer: absolutely right now more than ever!  Don’t delay!During this presentation, Tony Watson, an Enrolled Agent from Robert Hall & Associates, will explain to you the tax planning strategies YOU need to employ and the secrets YOU can use to save on YOUR taxes for this year.  Learn about the most often forgotten tax deductions, how to avoid costly tax mistakes, and the leading, “last minute” tax avoidance strategies all in perfectly legal and in compliance with the law.  Whether you are a real estate investor, agent, or lender, you will definitely benefit from this important information to reduce your tax bill and maximize YOUR return on your real estate investments and  potentially save thousands of dollars this year and in the future!

Can I Cash-Out a Portion of My 1031 Exchange Proceeds?

Written by Apartment Management Magazine on . Posted in Blog

Can I Cash-Out a Portion of My 1031 Exchange Proceeds?

The “Ins-and-Outs” of Doing a Partial 1031 Exchange

By Orrin Barrow, Vice President, Kay Properties and Investments, LLC

Many investors that come to Kay Properties are looking to fully defer any capital gains from the sale of their property by utilizing a like kind exchange or a Section 1031 Exchange.  In order to obtain a full tax deferment under Internal Revenue Code (IRC) Section 1031, a seller would need to buy a replacement property for equal or greater value than the property being sold.

For example, if an investor sells their property for a net sales price of $1,000,000, in order to obtain full tax deferment of any resulting gain upon sale under IRC Section 1031, the investor must buy at least $1,000,000 worth of total real estate as replacement property.  However, many investors are unaware that they are not fully obligated to use 100% of their proceeds in a 1031 Exchange.  For example, if an investor sells an investment property for $1,000,000, they can receive and utilize $200,000 out of their exchange proceeds to increase their liquidity.  In this example, the investor will only pay capital gains and depreciation recapture taxes on that $200,000 portion of their exchange, or in other words on just 20% of the total capital gains and depreciate recapture.  The $200,000 would then be deducted from the amount the investor needs to reinvest in the exchange property, therefore, leaving the investor with a purchase of $800,000 in replacement property and still allowing the investor to defer the bulk of their taxes due.

Introduction to the Time Value of Money

Written by Apartment Management Magazine on . Posted in Blog

Introduction to the Time Value of Money

By Christopher Miller, MBA
Specialized Wealth Management
November 1, 2020

This month, I’ll be continuing my “Investment Real Estate Principles” series by discussing an important financial theory:  The Time Value of Money.  This model states that $100,000 in hand today is much more valuable than $100,000 on this day next year due to that money’s present earning power.  If I invested that $100,000 today, I could earn income for the next 12 months, and my $100,000 could appreciate as well.  Next year, I could have my $100,000 principal + $5,000 of income +$3,000 of appreciation, or I could just be starting with $100,000.  

An important part of this discussion is the concept of Opportunity Cost.  In the above example, my opportunity cost of waiting 1 year to collect my $100,000 is the potential to earn $8,000 during that time.  Let’s use the Time Value of Money concept to help us analyze some investment decisions:

Preparing Your Tenants For the Digital Future

Written by Apartment Management Magazine on . Posted in Webinars On-Demand

Thursday, November 19th, 2020

As the multifamily rental housing industry evolves, how should YOU and YOUR rental communities prepare for the digital future? To answer this, we will discuss what we anticipate this digital future will look like based on the latest tenant research, while also providing a breakdown of the latest smart technology options.

GUEST SPEAKERS:  Kyle Finney and Mira Malek
Business Development Managers at Arize

They share a passion for emerging technologies in the multifamily industry. Kyle has worked in commercial real estate in both the Phoenix and Las Vegas markets for the past 4 years. Kyle heads up initiatives for adopting new technologies and leading both marketing and sales strategies. Mira has had over 8 years of real estate experience in Southern California, starting as a real estate agent flipping homes in Los Angeles. She has also worked with the largest hard money lender in the nation, in both acquisitions and wholesale. They both lead IoT-backed smart technology initiatives that attract and retain tenants, increase operational efficiencies, and net higher operating income.

http://livable.com/apn

Death in a Unit: Emergency Clean Up & Preparedness

Written by Apartment Management Magazine on . Posted in Webinars On-Demand

Thursday, November 12th, 2020

GUEST SPEAKER:  Alan Cohen
Chief Executive Officer, Bio SoCal

Alan Cohen is the Chief Executive Officer of Bio SoCal.  He has successfully transitioned from a Fortune 100 corporate executive in large public and private technology and retail companies to leverage his experience and background to help people during their greatest time of despair.  Prior to joining Bio SoCal, among other positions, Alan was the Vice President of Global Marketing at Xperi Corporation in Calabasas, a global audio technology licensing company, and prior to that he was the Vice President of Corporate Business Development for the Guitar Center, the largest musical instrument retailer in the world.  After having held senior corporate roles, he became a small business owner and has the privilege to work closely with families, first responders, and human services personnel, and businesses to clean up and recover after a traumatic event such as a crime, suicide, undiscovered death, homeless encampment, accidents, infectious disease disinfection, tear gas and extreme hoarding situations.  According to Alan, doing the work at Bio SoCal “…is truly rewarding work.”

Locally owned and operated, Bio SoCal is your biohazard clean-up, recovery and hoarding remediation company dedicated to assisting families, law enforcement, public service agencies and property owners and managers in restoring property that has been contaminated by biohazards as a result of crime, disaster, death or misuse.   To put it simply…    Bio SoCal discreetly cleans what most companies won’t or just can’t!

Navigating the Layers of Law During a Pandemic

Written by Apartment Management Magazine on . Posted in Webinars On-Demand

Tuesday, November 17th, 2020

GUEST SPEAKER:  Tracey Merrell, Esq
Managing Attorney of Education at Kimball, Tirey & St. John
LLP

Ms. Merrell began her career representing banks in post foreclosure evictions throughout all 58 counties in California. As bank owned foreclosures slowed down, she transitioned into evictions for management companies and individual owners. She is experienced in all aspects of litigation, from the development of case strategy, through discovery, depositions, motion practice, and trials including bench and jury. She joined our office as a trial attorney and has extensive experience in court making hundreds of appearances a year since joining the firm. She has in depth knowledge of the Los Angeles Rent Stabilization Ordinance. Ms. Merrell transitioned to the Education Department to further her goal of providing training and knowledge to both clients and staff. She received her Juris Doctor degree at DePaul University College of Law.

https://www.kts-law.com/

Dear Maintenance Men

Written by Apartment Management Magazine on . Posted in Blog

Dear Maintenance Men

By Jerry L’Ecuyer and Frank Alvarez 

Q: I have owned an apartment building since the early 1970s and have always performed my own repairs and general maintenance.  Lately, I have been struggling with kitchen and bathroom faucet repairs.  I am handy, so I am not referring to the actual physical aspect of repair, but the decision to repair or replace a faucet.  Over the many years of ownership, I have replaced my older stem and rubber washer (Compression) faucets to the newer washer-less and single handle models.  The problem is, I now have a difficult time finding parts or the cost of repair is awfully close to buying a new fixture.  What do you suggest I do?

A: Your issue is not unusual.  Today, a typical repair of any medium quality faucet can cost 30% versus. replacing the same faucet.  The difference and deciding factor will be the quality of the faucet you are repairing.  For instance, the cost of repairing extremely “cheap” or off-brand fixtures is not worth the time or effort as they will continue to fail in a short amount of time.  Most brand name fixtures will last you 10 years or so, depending on the following factors: use and abuse, maintenance, installation, finish, water quality, and the model of fixture.

Legal Corner: Tenant Screening Advice

Written by Apartment Management Magazine on . Posted in Blog

Legal Corner: Tenant Screening Advice

By Stephen C. Duringer, Esq., The Duringer Law Group, PLC

Question.  Given all the drama of the last few months, I really understand the importance of tenant screening.  Could you please provide information on the best resident screening practices that you and your clients use?

            Jeff W., Beverly Hills

Answer.  Proper tenant screening begins with a rental application you can get online from the Apartment Association of Greater Los Angeles, which needs to be completed, and signed by every adult applicant.  Verify that the application is complete and legible, photocopy the prospect’s government issued photo identification, e.g., driver’s license, identification card, or passport, and keep the photocopy with your file.  Verify that the signature on the application matches the identification, and the picture matches the person standing in front of you.

Preparing Your Tenants For the Digital Future

Written by Apartment Management Magazine on . Posted in Blog, Webinar

WHEN: 11:00 A.M. – 12:00 P.M. on Thursday, November 19th, 2020

The FUTURE of Smart Apartment Technology: How to Prepare YOUR Tenants for the Digital Future

As the multifamily rental housing industry evolves, how should YOU and YOUR rental communities prepare for the digital future? To answer this, we will discuss what we anticipate this digital future will look like based on the latest tenant research, while also providing a breakdown of the latest smart technology options.

When: Thursday, November 19, 2020 from 11:00 A.M. – 12:00 P.M. (Noon)

How to Attend: Exclusively for AAGLA Members, please login to register at link below.

Join us for this important webinar and discover the latest applications in smart apartment technology that will soon impact how YOU conduct business. Smart apartment technology offers multifamily properties all the latest products in property automation. With smart apartment technology, property management personnel can build safer, more connected communities by deploying new management software and automated devices, such as smart locks, water leak detectors, and much more. Not only can YOU automate and improve efficiencies, but YOU can save money.

During this important webinar, we will cover:

  • How YOU can prepare YOUR tenants for the digital future.
  • Gain important insights into what YOUR tenants want.
  • Learn how you can be proactive in “Future-Proofing” your property.
  • How YOU can evaluate smart technology and deploy “must-have” apartment features of the future.
  • How YOU can address the latest in security and connectivity issues and best overcome these challenges.
  • Understand how integrated technology can be valuable to owners and property managers.
  • And, of course, much, much more! Q&A to Follow…

GUEST SPEAKERS:  Kyle Finney and Mira Malek
Business Development Managers at Arize

They share a passion for emerging technologies in the multifamily industry. Kyle has worked in commercial real estate in both the Phoenix and Las Vegas markets for the past 4 years. Kyle heads up initiatives for adopting new technologies and leading both marketing and sales strategies. Mira has had over 8 years of real estate experience in Southern California, starting as a real estate agent flipping homes in Los Angeles. She has also worked with the largest hard money lender in the nation, in both acquisitions and wholesale. They both lead IoT-backed smart technology initiatives that attract and retain tenants, increase operational efficiencies, and net higher operating income.

Feature Sponsor: Arize

Presenting Sponsor: Livable

Navigating the Layers of Law During a Pandemic

Written by Apartment Management Magazine on . Posted in Blog, Webinar

WHEN: 11:00 A.M. – 12:00 P.M. on Tuesday, November 17th, 2020

SEEKING LEGAL ADVICE?…Esteemed Landlord Attorney, Ms. Tracey Merrell, Discusses the Current Regulatory Environment and Takes YOUR Questions

Tracey Merrell, attorney at Kimball, Tirey & St. John, LLP is back in the house.  She will be on hand taking your questions.  So come ready to ask and receive her advice.

YOU DON’T MISS THIS IMPORTANT UPCOMING, NEW WEBINAR – THIS IS YOUR CHANCE TO GET YOUR LEGAL QUESTIONS ANSWERED BY CALIFORNIA’S TOP LANDLORD ATTORNEY…FOR FREE!  Learn about when and how you can evict your problem tenants, how the newly passed state eviction “stop-gap” law impacts YOU, legal strategies you can deploy for when the emergency declaration has ended and understand your rights as a rental property owner.  

Please join us on Tuesday, November 17, 2020 at 11:00 a.m. as Tracey Merrell, the Managing Attorney of Education for Kimball, Tirey & St. John LLP provides YOU with important regulatory updates and responds to your questions.

WEBINAR DISCUSSION TOPICS INCLUDE:

  • Different Layers of Federal, State, and local laws: What you can do under one layer of law may be prohibited elsewhere
  • Assembly Bill 3088 – COVID Tenant Relief Act 
  • The CDC National Eviction Moratorium: The clarification from the FAQs and how it might affect your case
  • How much longer can your tenants withhold rent from YOU?  What can and should you be doing TODAY?
  • Can YOU proceed with an eviction at this time?  What are the best strategies YOU can deploy right now?
  • Are there different rules depending on what jurisdiction your property is in?
  • What time does happy hour start? (e.g., When will the emergency declaration be lifted and we go back to normal?)
  • And, much, much more…including Q&A session with Tracey Merrell, the Managing Attorney of Education for Kimball, Tirey & St. John, LLP.  Attendees will have the opportunity to submit questions in advance of the webinar and ask questions submitted live during the live presentation.

GUEST SPEAKER:  Tracey Merrell, Esq
Managing Attorney of Education at Kimball, Tirey & St. John
LLP

Ms. Merrell began her career representing banks in post foreclosure evictions throughout all 58 counties in California. As bank owned foreclosures slowed down, she transitioned into evictions for management companies and individual owners. She is experienced in all aspects of litigation, from the development of case strategy, through discovery, depositions, motion practice, and trials including bench and jury. She joined our office as a trial attorney and has extensive experience in court making hundreds of appearances a year since joining the firm. She has in depth knowledge of the Los Angeles Rent Stabilization Ordinance. Ms. Merrell transitioned to the Education Department to further her goal of providing training and knowledge to both clients and staff. She received her Juris Doctor degree at DePaul University College of Law.

Feature Sponsor: Kimball, Tirey & St. John LLP

Presenting Sponsor: MoldZero

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