Numerous acronyms serve as shorthand for real estate professionals to communicate about complex financial and investment concepts:

• PMI (private mortgage insurance)
• NOI (net operating income)
• CCR (cash-on-cash return)
• MLS (multiple listing service)
• FMV (fair market value)

Private mortgage insurance, for instance, is widely known to residential lenders and borrowers as a form of protection when a down payment is below certain levels relative to the amount borrowed.

But here’s another real estate acronym that should join the lexicon of residential property owners and property managers:

A brief glance at a lease agreement usually appears as though the landlord wields all the power (which he does most of the time anyways). However, an overzealous landlord or a careless one could find himself with some serious legal liability problems if he doesn’t take caution. To save yourself from expensive mistakes, read on to learn more about landlord liabilities pitfalls to avoid.

Governor Newsom Extends Anti-Price Gouging Through the End of 2020 for Several California Counties

In the spirit of Christmas, Governor Newsom has extended restrictions on rent increases for another year.  On December 23, 2019 Governor Newsom signed Executive Order N-22-19 extending price gouging protections in the following counties through December 31, 2020: Butte, Los Angeles, Mendocino, Napa, Santa Barbara, Sonoma and Ventura.  Price gouging restrictions affect both rent increases and vendor charges to a landlord after a natural disaster. Neither can exceed a 10% increase unless the seller can prove that the increased price is directly attributable to increases in the cost of labor or materials needed to provide the good or service.

By Dwight Kay and The Kay Properties Team

You are about to sell your property, and your CPA tells you that there is a large tax consequence lurking around the corner. In order to avoid paying capital gains and depreciation recapture tax, you consider a 1031 exchange whereby your taxes are deferred from the sale into a new property or group of properties. The legal and financial particulars of executing a 1031 exchange can be confusing, but many potential exchangers find it more difficult to find the next property in which to invest.

Last month, we discussed the complexities of California’s affordable housing crisis and the role that Federal tax laws and housing policies have played in creating California’s affordable housing shortages. This month, we continue our discussion with the complexities created by California’s legislature and various local jurisdictions and offer several proposed solutions to alleviating California’s present affordability situation.

Join Us at the 8th Annual Income Property Management Expo at the Pasadena Convention Center on March 24^th

Income Property Management Exposition offers property owners, managers, investors and real estate professionals a full slate of speakers, seminars, and an exhibition hall loaded with vendors.  This year, we are pleased to bring back after nearly 10-year hiatus the nationally acclaimed Maintenance Mania® competition. This free event will be held at Pasadena Convention Center on Tuesday, March 24^th from 9:00 A.M. to 4:00 P.M.  Maintenance Mania winners go on to complete at the national competition in Boston this June.

All-day seminar topics will include tenant screening, unlawful detainers, fair housing, housing subsidies and incentives, increasing profitability, lowering costs, legal update, tax planning, investment strategies, trends in multifamily rentals and many other topics. Maintenance Mania, presented by National Apartment Association (NAA) and HD Supply, features the “best of the best” maintenance professionals who will be competing in skill-based games for nationwide recognition and cash prizes.

Speaker presentations by leading multifamily industry experts will include Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles; Rusty Tweed of TFS Properties; Michael Brennan, Esq. of Brennan Law Firm; Alexander Rodriguez of Soft Story Retrofit Pros; Dennis Block, Esq. of Dennis Block & Associates; Brian Gordon and Vince Medina of Lotus Property Services; Tony Watson of Robert Hall & Associates; William Exeter of Exeter 1031 Exchange Services; Chris Verzosa of Skyguard Surveillanc;, Patti Widget of Widget’s Way; and Karen Hall of uDirect IRA.

An exhibit hall loaded with 100+ vendors will showcase the latest in management software, analysis tools, energy systems, lighting, roofing, safety equipment, financial and tax planning, lending, tenant screening and insurance, tax and legal services to improve property performance and reduce operating costs. Attendees will also have opportunities to network with fellow real estate and multifamily professionals, get free advice from legal and financial experts, share new ideas and develop strategies to increase the return on their investments.

The Apartment Association of Greater Los Angeles (AAGLA), Greater Los Angeles Association of Realtors (GLAAR), California Association of Housing Authorities (CAHA), Apartment Age Magazine, Apartment News Publications, and Apartment Management Magazine are industry partners for this event.

Income Property Exposition will be held on Tuesday, March 24^th from 9:00 A.M. to 4:00 P.M.. Admission is free, parking at the convention center is additional. Seminar seating is limited. Interested exhibitors may call Jordan Smith at (800) 931-6666 or email RSVP@IPMExpo.com. For information, pre-registration and conference agenda updates, please visit www.incomepropertyexpo.com.

Participation in Maintenance Mania is $35.00 for members of AAGLA and $50.00 for non-members.  Participants can register at www.aagla.org or by calling AAGLA at (213) 384-4131.

The Complexities of California’s Housing Crisis: Part I

By: Roderick Wright

Housing in California, particularly the lack of affordable housing is a complex issue. Like most complex social problems there are numerous causes and villains. The solutions are usually simple, but the political will is challenging. Why don’t we simply build more apartments and houses, simple enough right? Guess what? There are those who benefit from the current situation.

How Accidental Landlords Can Avoid Two Common Mistakes

by David Crown

Ownership of property might seem like something that can only happen through careful planning, but as a property manager in Los Angeles, I get calls all the time from folks who’ve become landlords through unplanned scenarios. Maybe a family member has passed away and willed them a property. Maybe they wanted to sell their home but couldn’t fetch the right price for it, so they had to rent it out until the market improved. Just today, we got a call from an owner whose property had been declared a historic landmark, so he couldn’t remodel it to sell at the price he had hoped. Regardless, what they share in common is that they’ve come into possession of rental property without having studied or prepared for becoming a landlord.     

It’s possible for a new rental owner to find a natural knack for management and decide to devote their time to managing their own properties. But for the uninitiated, this article will lay out the two most common mistakes accidental landlords make managing their own property — and how to avoid them.

Five Things To Remember When Deciding To Do A 1031 Exchange

BY Dwight Kay & The Kay Properties Team

A 1031 exchange is a legal way for investors to defer their capital gains taxes on the sale of real estate held for investment or business purposes. It allows one to defer taxes on a property sale as long as they follow specific 1031 rules and guidelines. In other words, you have the potential to keep all your profits working for you with the purchase of your next investment property, without the IRS coming after you looking for their share of the pie. Here are five things to remember before a 1031 exchange.

7 Reasons You Might Want to Refinance Your Apartment Loan

By Nick Schoch

Many apartment investors don’t like debt, so rather than refinancing, they would prefer to pay off their loans. Why get a new loan when you’d prefer to have no loan? If that describes you, you may want to reconsider. Used wisely, debt is a powerful tool that can help you reach your short- and long-term investment goals. Let’s take a look at seven challenges and how refinancing can be a solution.