By the Team at Entrata

Fraud in the multifamily industry today is rampant. It’s not a matter of “if” you’ll experience fraud, but “when.” If you aren’t taking the necessary measures to prevent fraud from happening and mitigating the risk of potential fraud, you’re opening a pandora’s box that could lead to lost revenue that you may never recover.

While technology introduces the potential for more fraud to occur in the multifamily rental business, there are strategies and tools that when implemented, can significantly reduce your risk of potential fraud. Throughout the rest of this article, we will outline best practices you can follow for mitigating risk of potential fraud by rental applicants.

By Steven Greenhut

The basic rule of thumb in the California Legislature is that lawmakers will spend the bulk of their time meddling in areas they should avoid while steadfastly not addressing the matters they should. So as the Legislature finishes up until next year, it’s not surprising that legislators were busy, say, boosting the minimum hourly wage to $25 for health care workers, forcing companies to reveal their “carbon footprint,” and requiring employers to give earlier layoff notices.

By Jon Coupal, President, Howard Jarvis Taxpayers Association

Despite the popularity of Proposition 13, the California Legislature passed two proposed amendments to the California Constitution that rip huge holes in that iconic taxpayer protection overwhelmingly approved by voters in 1978.

But here’s the good news. These anti-homeowner bills must be approved at a statewide election and, given the anger from thousands of constituents who flooded the Capitol with calls, letters, and petitions, the two measures are likely headed for the defeat they so richly deserve.

By Dwight Kay, Founder and CEO of Kay Properties and Investments

If you are a real estate investor, the 1031 Exchange is potentially one of the most powerful wealth-building strategies you have at your disposal. Sometimes called a tax-deferred exchange or like-kind exchange, the 1031 Exchange is a provision outlined in the Internal Revenue Code (Section 1031), which outlines how real estate investors can defer capital gains taxes on the sale of investment properties by reinvesting the proceeds into another “like-kind” property. In order to successfully complete a 1031 Exchange, real estate investors must follow very specific rules.

Provided by the Livable Content Team

Note: This is part two of our series on technology innovations that help property owners and managers get the most from their investments. 

In part one of our ongoing series, we explored the benefits of Azibo’s online management system and Livable’s platform to recover master-billed utilities. In this edition, we’re going to explore two more amazing online management platforms: Renter Insight and Innago. Renter Insight is perfect for the Housing Provider who wants enterprise-level tools at an IRO-friendly price point, while Innago has a specialized feature that uniquely serves student housing providers. Read on to explore the unique features of these applications and how each can help grow your business. 

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:
When is the best time to do an annual roof inspection?  Can you give me some pointers as what to look for when I inspect the roof?
Tom

Dear Tom:
The best time is before it rains!  However, we find summer and fall to be most the prudent time to inspect and repair the roof.    In other words, don’t wait to do roofing work after the first rains of winter.  The roofing contractors will be very busy and costs may go up or you may have to wait in line for the work to get done.   Inspect the roof during the summer and fall and get the roofing work done before it becomes an emergency. 

By Daniel Yukelson, Executive Director, Apartment Association of Greater Los Angeles

As the late, great President of the United States, Ronald Reagan, once said: “There you go again!”  And, there we go once again.  Not much more than a few years after nearly two-thirds of California’s voters rejected both Propositions 10 and 21, backers of these strict rent control measures have again garnered the number of required signatures to qualify virtually the same rent control measure for the November 2024 ballot.  Like the two proposed ballot measures in 2018 and 2020, we must now go to battle and defeat this latest attack on rental housing providers!

Contributed by the California Department of Toxic Substances Control

We all have a role in engaging stakeholders in mercury thermostat removal to keep our communities safe. I ask you, how many of the homes you manage still have mercury thermostats? This type of thermostat, once a common fixture, poses significant risks to human health and the environment. We will cover the risks of mercury thermostats, relevant legislation in California governing their safe disposal, and how to ensure their safe disposal to protect our residents and communities.

By Ted Kimball, Esq., Partner, Kimball Tirey & St. John LLP

• Question:  I heard that VAWA was approved again by the government and that it applies all units.  Is that true?

• Answer:  VAWA (Violence Against Women Act) was reauthorized in 2022.  Most of the law only applies to “covered housing providers” which are tax credit properties, HUD funded programs, and properties with subsidies under the USDA program.  There is only one section that applies to all housing providers and that is the right of tenants to summon law enforcement. 

• Question:  The present rental agreement is for two tenants.  One has passed away.  Do I need to write a new rental agreement with the remaining tenant?

• Answer:  You are not required to write up a new lease; the current tenant is still responsible for the full rent and other lease terms.

Inspections of Balconies and Other Exterior Elevated Elements Under Senate Bills 721 and 326

By Omid Ghanadiof, “Dr. Balcony” and EEEadvisor Engineering

As a landlord or building owner in California, it is essential to stay informed about the latest legislative developments that impact your responsibilities and obligations. Two important bills, Senate Bill 721 (SB 721) and Senate Bill 326 (SB 326), have been enacted to enhance safety standards for multi-unit residential buildings. This article aims to provide a comprehensive guide to help you prepare yourself and your building in compliance with these important guidelines.