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.

The Big Real Estate Shift: Urban Migration and the 1031 Exchange

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

WHEN: 11:00 A.M. – 12:00 P.M. on Thursday, February 25, 2021

Looking at selling your investment property and want to save on your State and Federal taxes?  Get the edge you deserve when it comes to wealth building tax-deferral and tax-exclusion strategies.  Do not waste money on annoying capital gains taxes ever again.  Join us on Thursday, February 25th for an informative webinar where we take you through the steps of the 1031 Tax-Free Exchange process and show you examples of great real estate deals that are out there.  Be sure to come armed with all your 1031 Exchange related questions.

During this important webinar, we will cover:

  • How to postpone or eliminate capital gains taxes due on the sale of qualifying properties.
  • Buying “triple net,” mobile home parks, residential rental or commercial properties, and single-family homes.
  • The Big Real Estate Shift – migration away from big cities and migration patterns out of dense, locked-down cities into suburban areas.
  • Understanding capitalization rates that YOU can achieve moving your money out of California.
  • Through a 1031 Exchange, learn how YOU can achieve asset diversification and / or consolidation, and improved cash flow by deferring tax payments.
  • The impact of the global pandemic on today’s interest rates.
  • Real deals / real success – case studies of amazing transactions and currently available investment options.
  • The 1031 Exchange process, timing step-by-step, and 1031 Exchange documents.
  • And, of course, much, much more! Q&A to follow.

Featured Presenter:

Title Sponsor:

Freedom-RIP

Written by Apartment Management Magazine on . Posted in Blog

2020 may be remembered as the year many of the freedoms we had, or thought we had, died or were mortally wounded. It was the year we became subject to arbitrary government decree without recourse.

Time magazine missed the mark by not naming The Government Bureaucrat, Person of the Year.

Naturally, property rights are the subject of primary interest to the readers of this publication. Tenants without any showing of hardship have been allowed to remain in their units with little to no payment of rent.

Understanding the potential advantages of the 200% Rule in a 1031 exchange

Written by Apartment Management Magazine on . Posted in Blog

By Dwight Kay, Founder & CEO; Betty Friant, Senior Vice President and The Kay Properties Team

“Is that your final answer?” You may recognize the question made famous by the popular TV game show Who Wants to Be a Millionaire? Choosing the right answer in this game gives you a shot at winning big money, while the wrong answer leaves you with nothing. Investors conducting a 1031 Exchange face a similar make or break decision when it comes to identifying suitable replacement properties.

The right choices can help streamline a smooth and successful execution of a 1031 Exchange. Choosing wrong with properties that may not be viable or deals that are unable to close within the 180-day time period can derail the entire 1031 Exchange. The good news is that investors do get to identify more than one replacement property. However, just like the gameshow, once that 45-day deadline hits for identifying replacement options, those answers are final. Making the most of that short list is one reason that the 200% Rule is a popular choice for many investors. The 200% Rule allows an investor to identify the largest number of replacement options with four or more properties or Delaware Statutory Trust (DST) replacement investments.

Net Leased Properties

Written by Apartment Management Magazine on . Posted in Blog

By Christopher Miller, MBA

What Net Leased Properties Are

Net leased properties get their names from how expenses are treated; rent is paid to the landlord “net” (tenant pays) certain expenses.  In any kind of net lease, the tenant will generally pay all operating expenses, such as electricity, gas, and water.  Property taxes and insurance are also the tenant’s responsibility in a “double net,” or NN, lease.  A “triple net,” or NNN, lease will pass all responsibilities and expenses to the tenant – even maintenance of the building.  The net leased properties that I come across – with long-term leases and credit tenants – will typically have either double net or triple net leases, so that’s what this article will focus on.

Emotional Support Animals: What Landlords Need To Know

Written by Apartment Management Magazine on . Posted in Blog

Ever hear the one about the emotional support peacock that wasn’t allowed on a plane? If it sounds like a setup to a bad joke, it’s actually a real story that made national news.

You’ve probably heard of emotional support animals (ESAs), but you might not know that they aren’t just dogs and cats. They can be ferrets, fish, pigs, peacocks — almost anything a qualifying owner wants.

So, what are they really? Who qualifies for one, and what are the owner’s rights? The answers to these questions are important. If the animal is why you turn away a rental applicant, you could be charged with housing discrimination. Here’s what landlords need to know about emotional support animals. 

Multifamily Experts Weigh in on the Future of Property Management Post-COVID

Written by Apartment Management Magazine on . Posted in Blog

By Paul Bergeron

After Moderna and Pfizer announced results from a large-scale clinical test showing as high as a 94% success rate for a COVID-19 vaccine, experts in the multifamily industry have begun to consider what property management will look like when the pandemic threat eventually subsides.

What’s clear is that the virtual leasing technology that was developed and implemented to help the apartment industry withstand 2020’s toughest challenges will continue to play a critical role as the country comes out on the other side — and new research supports this.

I’m Mad As Hell – I Will Not Take It Any Longer!

Written by Apartment Management Magazine on . Posted in Blog

By Harold Greenberg, Esq.

Many years ago, a self-appointed group calling itself the Blue-Ribbon Committee on Slum Housing surfaced in the City of Los Angeles calling for major changes to the City’s rental housing inspection system. The City’s Building and Safety Department was to be replaced by Housing Department inspectors who would be more responsive to tenant activist concerns. Every apartment in the City of Los Angeles would be inspected, not just those where tenants had filed complaints about habitability violations. Radio, television, and newspaper articles exploded on the scene, triggered by Blue Ribbon claims that 107,900 rental units were rat-infested, and another 131,700 units had non-operating toilets. University of California at Los Angeles (UCLA) law students under the direction of tenant activist retired professor Gary Blasi used numbers from the 1995 joint U.S. Housing and Urban Development Department and U.S. Census Bureau “American Housing Study” to substantiate their claim that almost half the rental units in the City were uninhabitable.

Don’t Be Caught Crying the Prop 19 Blues in 2021…

Written by Apartment Management Magazine on . Posted in Blog

By Gina Gaudio-Grace, Platinum Trust Group

In November 2020, Californian voters passed Proposition 19, a State Constitutional Amendment, with 51.1% of the voters approving it. The new law goes into effect on February 16, 2021. This means that you have a short window of time to act under the existing law.

The Way We Were: How It Works Today

To understand the impact Proposition 19 will have on apartment owners, it is helpful to recognize that it modifies Proposition 13 (originally passed in 1978).  Under Proposition 13, parents are permitted to transfer: (i) their primary residence, and (ii) up to $1 million in assessed value of other properties, to their children without triggering a reassessment for property tax purposes. This means that children can keep the low property tax assessment from their parents following a transfer of a primary residence or the first one million dollars of assessed value (which is usually substantially less than fair market value) of investment properties.

Proposition 19 and California Real Property Taxes

Written by Apartment Management Magazine on . Posted in Blog

By Charles Scott, Esq.

Proposition 19 was passed at the recent election, amending Article XIII (A) of the California Constitution. As part of the measure, children who inherit their parents’ houses will no longer receive a property tax break if they intend to keep it as a second home or rent it out. The measure will have a very serious effect on the traditional parent-child exemption from reassessment under Prop 13. Previously, transfers of the principal residence of a parent, and up to $1 million of assessed valuation of other property, passed to children without being reassessed for local County property tax purposes, thereby preserving the benefits of Prop 13 for heirs and trust beneficiaries.

What Can’t a Landlord Do: The Big No-Nos of the Industry

Written by Apartment Management Magazine on . Posted in Blog

By Nicole Seidner

It wasn’t all that long ago that a landlord went viral after nabbing her tenants’ packages, claiming them as the ‘rent’ that they owed her. Naturally, she backtracked that statement pretty quickly as she realized no one really found the idea as funny as she did. TikTok’s banishment aside, her video is one great big sign that bragging about how ‘petty’ you are as a landlord is a big no-no.  What other warnings have can a landlord overlooked?

Don’t Steal From Your Tenants

This one should be pretty obvious. According to Abbe Awosanya, the landlord who danced for our enjoyment, she wasn’t ‘actually stealing’ and those were her own boxes she was using as props! Good for her if that’s true, but let’s just put it out there. A lot of tenants haven’t paid their rent right now, that much is true, but do not steal from them. Even if its packages left out on the street, messing with mail is still a federal offense and a jury wouldn’t not look well on you if it went to court – theft or evictions court.