Pick up the phone today to tell Supervisors Solis & Horvath “NO!”

At the Los Angeles County Board of Supervisors meeting on February 7, 2023, Supervisor Solis proposed and Supervisor Horvath seconded a last-minute amendment that was not originally on the agenda to revise the Homeless Emergency Declaration (Agenda Item #16) to support using this new “emergency” to extend the eviction moratorium indefinitely to all rental housing throughout LA County. They requested a report back in 45 days legally instructing them how to do so.

The Wait is Finally Over: Join Your Peers for the “Business of Property Management”

For over a decade, the Income Property Management Expo & Exhibition (IPME) has provided property owners, managers, investors, and real estate professionals with the information they require to succeed in the ever-changing real estate business.  With the increased demand for rental housing, an unprecedented rate of inflation, rising interest rates, and pandemic-driven moratoriums, it’s time to be reinvigorated, get back to work, join together with peers and industry experts, and learn how to navigate the new normal of today’s real estate marketplace. IPME attendees will discover many new strategies and tools property owners and investors require to thrive in this post-pandemic environment.

The Los Angeles Area’s largest, most important annual property management expo is back after a two-year, pandemic-driven hiatus, offering fresh strategies so attendees can get back into the game of making informed real estate decisions.

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.

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.

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.

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.

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.

On Tuesday, October 8^th, California Governor Newsom signed into law Assembly Bill 1482 imposing rent control and just-cause eviction rules and fees across California. After a long battle within the state, rental properties not currently covered by stricter rent control provisions will need to adapt to the upcoming changes by January 1^st, 2020.

By Christopher Miller, MBA

Specialized Wealth Management

Each year, California seems to make the real estate business much more difficult.  The state’s hostility to employers, landlords and investors is clear. It seems like California wants us gone.  Maybe we should start listening.

Los Angeles Eviction Moratorium and Expansion of Rent Control

On January 20^th, the Los Angeles City Council formalized its decision to end the COVID eviction moratorium on January 31 – but also issued a slew of new eviction and rent increase limitations: including expanding these rules to single family residences and condominiums.  Then on January 24^th, the city council voted to extend the eviction moratorium by an additional two months to the end of March, 2023.  Since this has been extended repeatedly since the pandemic’s start 3 years ago, will March really be the end of it?

By Edward Ring

If at first you don’t succeed, try again. This adage applies well to ideas for new ways to tax Californians. Every election cycle we see new ways to be taxed, and higher tax rates, but rarely will we see a tax get repealed.

So it is that Assemblyman Alex Lee (D, San Jose) has introduced Assembly Bill 259, the Wealth Tax Act, which will impose an annual “worldwide net worth” tax of 1 percent on net worth above $50 million, rising to 1.5 percent on net worth over $1.0 billion.

As long as water runs through pipes and people live on a property, there will be leaks and spills. This is nothing new to us.

But after historic rainfalls, we have never seen such widespread water damage. It was saddening to see hundreds of residents displaced from an East Oakland apartment complex after the parking garage flooded and PG&E cut power. Tenants ushered in the New Year in a cold, dark, and smelly apartment building with instructions to leave. Weeks later, they remain transplanted and it’s become a multimillion-dollar crisis for the management of Coliseum Connections.

Property management can be a rewarding career path for those who love helping others build a life and settle into a community. But along with the joys of the business are costly legal pitfalls you need to know and avoid at all costs. Some are easier to avert than others. Let’s take a look at the most common property management legal issues along with steps to avoid them.

As you read, you’ll notice a common thread: better technology and standardized procedures and routines can protect you from most legal issues in property management.

1. Locking a late-paying resident out of their home

It’s understandable to feel frustrated when a resident doesn’t pay rent on time. It’s against the law, however, to retaliate in any way that doesn’t conform with federal and state statutes. You cannot change the locks on a resident for nonpayment, no matter how many times you’ve warned them or reminded them to pay. The only way to deny a resident entry to their dwelling is through the eviction process. Even so, eviction can take weeks or months to complete and must be resolved in your favor.

If mediation doesn’t work and eviction is your only option, lean on your attorney to keep everything above board.

COMMUNICATE THROUGH OFFICIAL CHANNELS

It’s best to send important notices through official means, such as a professional email sent via your property management software and/or letter delivered to the residence. (State and local laws around correspondence apply.) The nice thing about software is that it ensures permanent, paperless evidence of all correspondence for your records.

Don’t Miss the West Coast’s Largest Income Property Expo – Attendance is Free!

Explore Investment Opportunities Both Large and Small, Meet 100’s of Vendors

The Income Property Management Exposition (IPME) returns to the Pasadena Convention Center Tuesday, May 23^rd, and this year promises to be bigger and better than ever before.  IPME provides rental property owners, managers, and investors with the latest insights to succeed in the changing rental housing market. In response to the high demand for rental housing, rising inflation, interest rates, and pandemic-driven challenges, IPME offers an opportunity to learn how to adapt and thrive in this ever-changing marketplace.

Calling All Property Owners: It is Not Just for Apartments, But Single-Family Homes and Condominiums Will Also be Adversely Impacted

By Daniel Yukelson, Executive Director

The Latest Threat to Our Livelihoods and Retirement

California’s rental housing providers are again under attack by a well-known and controversial adversary, Michael Weinstein, the President of the AIDS Healthcare Foundation. Called the “Justice for Renters Act,” this proposed, November 2024 statewide ballot initiative would eliminate the protections rental housing providers have today under the Costa-Hawkins Rental Housing Act (Costa-Hawkins).

“At Livable, we want to keep residents and property owners up to date on issues that impact everyone in the rental market. We sympathize with tenants having financial issues, especially in the current inflationary climate. But we also recognize that housing providers are investors. Livable helps protect the health of those investments while educating residents on conservation, which saves everyone money and helps the planet.” – Livable CEO Daniel Sharabi

The White House recently proposed a comprehensive plan to address the affordable housing crisis in the country. The proposal, which focuses on rental rights, aims to ensure that renters are treated fairly and that the rental market works in the best interests of everyone involved. The proposal has faced significant pushback from the industry, as some believe it would impede the development of new housing and further damage the market, driving up rental prices and limiting access. But the White House remains committed to the proposal and believes that it will help to create a fairer and more just rental market.

By Tracey Merrill, Esq., Partner, Kimball, Tirey & St. John LLP      

The legislative session for 2022 has come to a close. Information about the new California laws for 2023, compliance dates and other trends which will affect California residential landlords can be found below. For your convenience, the new laws and trends are divided into five sections: Landlord/Tenant, Compliance Updates and Language Trends, Affordable Housing, Fair Housing and the Americans With Disabilities Act (ADA) updates, and Collections.

By Laura Hertz, Loan Officer, CSMC Mortgage

If you are thinking of buying a home or income property, now is still a great time to purchase. You have the chance to get into the market before rates drop more and there is even less inventory. Once you purchase your home, you can always refinance if rates drop later.

Recently, we have seen lower mortgage rates which means greater purchasing power for you. The same mortgage payment in today’s market can buy about 15 percent more property value compared to just three months ago. This is obviously beneficial, and it is expected that rates will continue to drop.

By Dwight Kay, Founder and CEO, Kay Properties

Key Highlights:

• DSTs can help investors successfully complete a 1031 exchange
• DSTs can potentially provide investors greater diversification
• DSTs can help investors replace debt for their 1031 exchange
• DSTs can provide investors a back-up option for a 1031 exchange

Regardless of what economic trends are taking place, Delaware Statutory Trusts provide investors a number timeless benefits for their 1031 Exchanges including deferring capital gains taxes, eliminating the headaches of active management (think the Three T’s: tenants, toilets, and trash), the ability to create a more diversified* portfolio, and provide investors the potential for consistent and durable income streams**.

Here are four specific ways real estate investors are utilizing DSTs for their 1031 exchanges.