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

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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…

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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.

Powerful Ways YOU Can Drive N.O.I. in Today’s Challenging Market

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Provided by AppFolio

Owning or managing multifamily property in the Los Angeles Area has not been easy during the COVID-19 pandemic.  Some of the strictest lockdown measures have taken place in the City and County of Los Angeles, and throughout California.  California now has the third highest unemployment rate nationally, greatly impacting residents’ ability to pay rent. In addition, new regulations will create additional challenges for rental property owners and managers to contend with. 

Due to the tough multifamily market in the Greater Los Angeles Area, rental property owners and managers have no choice but to seek creative solutions to boost their net operating income or “N.O.I.,” including through more efficient maintenance workflows and utility management. This is where technology can help.

More Restrictions on Small Landlords Only Leads to Loss of Affordable Housing

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More than Four Decades of Retreaded Housing Policy Has Only Led to Increased Housing Shortages and Homelessness

By Jenifer Anisman, Associate, Law Firm of Harold Greenberg

This article addresses the unintended ramifications of tough eviction control.  Tenant advocates are fighting for tougher legislation on landlords, including proposals that would require Landlords to pay for tenant attorney’s fees when facing eviction.  It is no secret; however, that the toughest rent / eviction control laws exist in the cities with the highest homelessness rates. 

Yet, the response is to implement even tougher laws, and the result?  Well, I see more homelessness.  Is this a chicken or egg situation?  Are the two even related?  Persons experiencing homelessness come from a myriad of backgrounds and situations.  Do all homeless persons want to be housed?  This is a complicated question.  Tenant’s Rights groups who identify themselves as “homelessness prevention” fighters have no basis for this claim.  They merely use it as a ploy to win their cases and recover attorney’s fees from Landlords.  Do you disagree?  If so, please continue reading…

Rent Report, April 2021: The State of the Rental Market

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More than one year into the COVID-19 pandemic, we explore where rent prices stand today compared to one year ago.

National average rent price trends

On a national level, we’re noticing a shift in recent patterns. Studios and one-bedrooms are showing some recovery in price, possibly reflecting growing demand. Two-bedrooms have adjusted down slightly, but are still up more than five percent year-over-year. Three-bedrooms are up, both since last month and since this time last year.

  • 0-BR: $1,603 (+1.0 percent from prior month / -1.3 percent year-over-year)
  • 1-BR: $1,610 (+1.6 percent from prior month / +3.2 percent year-over-year)
  • 2-BR: $1,881 (-1.1 percent from prior month / +5.3 percent year-over-year)
  • 3-BR: $2,036 (+1.9 percent from prior month / +4.2 percent year-over-year)

The Consequences of Centrally Planned Compassion

Written by Apartment Management Magazine on . Posted in Blog

By Edward Ring

Sixty years ago, when California was governed by people who were sane pragmatists, homes were affordable and very few people were homeless. To support new housing, government funds were focused on building enabling infrastructure. California’s freeways and expressways connected new suburbs to urban cores, and the California Water Project delivered abundant water to the growing population. As a result, industry, jobs, and people poured into California, attracted by the beautiful weather and the low cost-of-living. Back then, California was the best place on earth to live.

For at least the last twenty years, California politics have been controlled by leftist ideologues. Their policies are impractical, the consequences are insane. Homes are unaffordable and entire cities have been taken over by homeless encampments. California’s infrastructure is neglected, and the ability of private developers to profitably build homes that normal people can afford has been destroyed by overregulation. In 2020, for the first time since achieving statehood over 170 years ago, California’s population actually declined.

5 Ways to Enhance Your Property’s Green Initiative

Written by Apartment Management Magazine on . Posted in Blog

By Brittany BenzRae Parker

Commercial and residential buildings account for 39% of the carbon dioxide emissions in the United States. Is your property management company doing everything it can to be more sustainable? Now more than ever, it’s essential to make sure you’re investing in green initiatives, not just because it’s better for the environment, but because your business will depend on it.  

The Growing Demand for Sustainability

According to a survey by Forrester, 32% of consumers prioritize companies that are actively reducing their impact on the environment. Today’s renters don’t just like sustainable features — like high efficiency appliances and smart thermostats — they expect them to already be built-in. As more millenial and gen z renters enter the market, this demand is only going to increase. And it’s not just renters, investors will also be looking for buildings that are LEED certified and eco-conscious, too. Nielsen reports that 81% of consumers around the world believe it’s very important for companies to have environmental improvement as an objective.

The Rental Assistance Maze by Elaine Simpson

Written by Apartment Management Magazine on . Posted in Blog

On September 1st, 2020 the CDC issued a temporary halt in residential evictions to prevent the further spread of Covid-19.  The order imposed a temporary national moratorium on most evictions for non-payment of rent to help prevent the spread of the virus. The average person spends more than thirty percent of their income on housing and lives paycheck to paycheck with little to no savings.  That is one of the reasons why the eviction moratorium was extended.  The order applies to all standard rental housing including mobile homes.  It does not cover hotels, motels or other guest home rentals.  A complete list of qualifications can be found at the National Low Income Housing Coalition website:  https://www.nlihc.org.

Proposition 19: The Homelessness Machine

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By Jenifer Anisman, Esq., Associate, The Law Firm of Harold Greenberg

By a show of hands in the room (and by room, I mean the State of California), how many homeowners here over 55 intend to sell your house and purchase another one of equal value, taking advantage of maintaining your present tax base?  (A handful of people in the room raise their hands)…By a show of hands, how many homeowners here over 55 intend to sell your house and purchase another one of equal value THREE times (and maintain your present tax base)?  (One or two half-masts).

And that is because we all love to move, right?  Especially in our 50’s, 60’s, 70,s and 80’s.  90-year-olds would especially love to move.  Right?  And now, Proposition 19 lets them move three times without a reassessment! 

University of Southern California Launches Major Smoke-Free Study

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Seeking Input From Multifamily Rental Property Owners, Managers, and Residents from Los Angeles County’s Unincorporated Areas

  • Funded by the Los Angeles County Department of Health, USC Study Seeks Residential Landlord and Manager Input on Smoke-Free and Vape-Free Policies, and Impacts on Multifamily Residents Particularly During COVID-19
  • Free $25 Gift Card Being Offered to Survey Participants and Chance to Receive Free Membership in Apartment Association of Greater Los Angeles

A major new smoke-free study was recently launched by the University of Southern California to seek the input of residential landlords and managers within Los Angeles County’s unincorporated areas.  The USC smoke-free study was launched on March 1, 2021 in collaboration with the Apartment Association of Greater Los Angeles. Funding for the USC smoke-free study is being provided by the Los Angeles County Department of Health.

This LA Nonprofit Leads The Way in Innovative Rental Solutions

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LeaseUp helps property owners find qualified renters fast.

While the rental market recovers from COVID-19 in a struggling economy, property owners and managers face growing collections of unpaid rent and a looming eviction crisis. But property owners in LA County have a solution that provides financial security and support: LeaseUp. The nonprofit connects them with rent-ready tenants and steady, monthly rental collections.

Powered by PATH, LeaseUp is an innovative program backed by the Los Angeles Homeless Services Authority (LAHSA) and serves over 600 property owners and managers in Southern California. LeaseUp sets out to offer benefits and stability to property owners and managers in LA County and provide housing for people who are struggling to make ends meet.

Are You Taking Full Advantage of Your Depreciation Deductions?

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By Christopher Miller, MBA

Specialized Wealth Management

We all know that tax deferral (with the potential to make the savings permanent) of some income through depreciation deduction is one of the big benefits of owning investment real estate.  This month, I will discuss ways that you can maximize your tax benefits by using this accounting tool.  After all:  who doesn’t want more savings?

How Does Depreciation Work?

By using the depreciation deduction, an investor can write off a portion of his “basis” every year and use that to offset taxable income from the property.   How do I calculate my benefits?  Let’s walk through the process:

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