By Gideon Kramer, Small Property Owners of San Francisco Institute (SPOSFI)

In 1980, the City of Berkeley passed a comprehensive strict rent control ordinance considered “strict” because it included vacancy control. Under vacancy control, city-mandated price controls continue to apply even after a voluntary vacancy occurs. This all changed in 1995 when the Costa-Hawkins Rental Housing Act (Assembly Bill 1164) (“Costa-Hawkins”) became state law, mandating that no local rent control could be passed on properties built after its date of passage.

Costa-Hawkins also abolished vacancy control. Berkeley took steps to comply. But it didn’t change its own ordinance. Only too ready to dust it off and bring it back to life, Berkeley prepared to automatically revert to the old rules if Costa-Hawkins was repealed. Opponents of Costa-Hawkins have spared no effort to enable Berkeley and other cities to do just that. Proposition 10 failed on the November 2018 ballot, again in November 2022 (Proposition 21), and a third attempt, the “Justice for Renters Act,” is in the works and gathering signatures for the November 2024 ballot.

Last month, Senate Constitutional Amendment No. 4, a major legislative effort to repeal the dreaded “Death Tax,” lost by a narrow margin (4-3) before the Senate Governance and Finance Committee. Although opponents of the tax will continue to pressure the Legislature to act, there is a powerful alternative to address the harm inflicted by this record-setting property tax hike.

Over the last forty-plus years, the Howard Jarvis Taxpayers Association has successfully qualified numerous pro-taxpayer initiative measures starting, of course, with California’s iconic Proposition 13, approved by voters in 1978. In 1996, HJTA qualified, and the voters enacted the Right to Vote on Taxes Act.

Max Glassburg

The right property amenities will keep renters engaged and more likely to renew their lease with you. Let’s look some of the amenities that are not only profitable but desired by residents.

1. High-speed internet & cable bundle

According to the 2022 NMHC Renter Preferences Survey, a whopping 89% of renters are interested in included high-speed internet. The only property amenities ranked higher in the survey (by a margin of 3% or less) are in-unit washers and dryers, air conditioning and soundproof walls.

A growing number of multifamily apartments, HOAs and condo communities have implemented bulk packages for internet and cable to meet the demand for this amenity.

By Lauren Zumbach, Story by J.P. Morgan

With rents on the rise, some renters might be having a tougher time saving up for security deposits on top of initial rent and move-in costs. But reducing security deposits exposes property owners to additional risk. Here’s what to keep in mind if you’re asked for flexibility on a deposit.

How Large a Security Deposit Can a Property Owner Charge?

Security deposit laws vary by state, and cities can have their own rules, so it’s important to check regulations in your local area. Some states have no limits, while others may limit deposits to one to two months’ rent. Ann O’Connell, legal editor and attorney at Nolo, which has resources on security deposit laws, recommends property owners charge the largest security deposit the law or market conditions allow to reduce their risk if left with damage, or unpaid rent or fees at the end of a lease. If a property owner wants to reduce the up-front amount collected, they could consider dropping the last month’s rent requirement, because security deposits can be used to cover unpaid rent, O’Connell says.

By Austin Bowlin, CPA, Partner at Real Estate Transition Solutions

Owning investment real estate can be an effective way to build wealth and create financial security. Done properly, it can even generate stable, predictable income without significant management responsibility. However, often property owners need to rebalance their investments to achieve their objectives.

Selling investment real estate to acquire different properties better suited to meet an investor’s objectives sounds like a great idea until the taxes due upon the sale are considered. Unfortunately, the tax rate applied to sales proceeds can be as high as 42.1% at the Federal level, plus state income tax of up to 13.3%. However, one way to reposition real estate investments without taking a hefty haircut due to taxes is the strategic use of a 1031 Exchange. By performing a 1031 Exchange, property owners can sell investment property without paying capital gains tax or depreciation recapture tax, provided the sales proceeds are reinvested into “like-kind” investment real estate of equal or greater value and the conditions of the IRS tax code are followed.

Managing a property is time-consuming, especially if you own multiple properties or live at a distance from your assets. Many property owners see their rental income as a means to enjoy their lives, rather a full-time job of maintenance and problem-solving. If you see owning property as the means to more leisure time, hiring a property manager is essential.

A professional property manager handles everything from rent collection to maintenance, making your life easier and freer, with fewer headaches. But not all owners need a property manager and not all property managers are created equal. The big questions you need to answer before making that investment are “When is it time to hire a property manager?” and “What should I look for when hiring one?”

Join Us for Cocktails and Appetizers at the Beautiful Hotel Maya

Date: May 24, 2023 | Time: 5:00 P.M. to 7:00 P.M.

Location: 700 Queensway Drive, Long Beach, CA 90802

Cost: FREE for AAGLA Members and Invited Guests | $25.00 for Future Members

Register Today: www.AAGLA.org/events | Diana@AAGLA.org

Join your fellow housing providers for a “meet and greet” with Mayor Rex Richardson of the City of Long Beach. During this FREE, member exclusive event, you will hear Mayor Richardson’s views on the future of housing and affordability challenges in Long Beach and Los Angeles County. Mayor Richardson will be joined by other City of Long Beach Officials from the City’s Housing Authority and Health and Human Services Department.

ABOUT MAYOR RICHARDSON

Rex Richardson is the 29th Mayor of Long Beach: a husband, father, and trailblazer as the first Black mayor in the city’s history.

Since taking office, Mayor Richardson has led with his Opportunity Beach Agenda—the first 100-day plan ever presented by a Mayor of Long Beach. He is tackling major issues like homelessness, building an economy where everyone thrives, creating safe and healthy communities, investing in youth, and supporting a sustainable and resilient city.

In 2014, Richardson became the youngest person in history elected to the Long Beach City Council. In 2016, he was elected to a two-year term as Vice Mayor, also the youngest in city history. He was then re-elected to the Long Beach City Council in 2018 and re-elected as Vice Mayor in 2020. Regionally, Mayor Richardson has served as past President of the Southern California Association of Governments and as a board member of the South Coast Air Quality Management District. His vision is to advance the leadership of Long Beach as the second-largest city in the region, which also holds the second-largest port in the State and the fastest-growing aerospace cluster in the nation.

Moderator – Daniel Yukelson, Executive Director, Apartment Association of Greater L.A.

By Max Glassburg

If improving renter retention feels a bit like chasing your tail, you might just need a few simple renter engagement ideas to keep people around, bring in positive property reviews and cultivate the apartment community of your dreams. The good news is that resident satisfaction is actually pretty high across the board. In fact, most U.S. residents are satisfied with where they live. Some are unhappy, but many sit somewhere in the middle.

What did we do to deserve it? For years, we worked two jobs, our real 9-5 job and our rental property owner job. We saved and sacrificed to invest in income property so that someday, with any luck, we will have more than just Social Security to retire on. Our ulterior motive is nothing more than to provide for ourselves and family, and to invest in and house members of our local community. Sometimes, our investments would house ourselves and our families. Nothing more, nothing less.

You’ve seen ads for rental insurance. But do you know what it covers OR if you can require tenants to get it? 

Rental insurance is a specific type of policy that covers possessions within the home as opposed to the home itself. It is highly beneficial to your residents in the event of flood or similar disaster since you are not responsible for damage to personal possessions – only the property itself. Some property owners may require tenants to obtain rental insurance. Even if you don’t require your residents to have renal insurance, you can advise them to get it.