California’s Rental Housing Providers May Now Receive Their Lost Rent…But, Not For More Than 10-Years and All Interest Free

Mortgage Relief Also Proposed by California’s Lawmakers

As missed rent payments and delinquent mortgages have been piling-up across California, the State’s lawmakers have introduced a series of proposals aimed at shielding homeowners from foreclosure, protecting renters from eviction, and finally, some relief perhaps for rental housing providers, all of whom have been impacted by the economic fallout of the COVID-19 pandemic.  However, the relief being offered to the State’s rental housing providers may not be appreciated by many now struggling to survive under eviction moratoriums, rent increase freezes, and the weight of other overzealous and unfair regulatory burdens.

SBA Offers Disaster Assistance to California Businesses and Residents Affected by Civil Unrest

SACRAMENTO, Calif. – Low-interest federal disaster loans are available to California businesses and residents affected by civil unrest that began May 26, 2020, announced Administrator Jovita Carranza of the U.S. Small Business Administration. SBA acted under its own authority to declare a disaster following a request received from Gov. Gavin Newsom’s designated representative, Mark S. Ghilarducci, director of the Governor’s Office of Emergency Services on June 16, 2020.

The disaster declaration makes SBA assistance available in Kern, Los Angeles, Orange, San Bernardino and Ventura counties.

There Are Many Reasons to Say “No” to the Rental Affordability Act

Over the last 30 years or more, Wall Street, via our State and Federal governments, has quietly been attacking the private rental housing industry in the United States, even more here in California.   This attack has driven up the cost of existing housing and suppressed the development of new housing by curtailing many of the tax benefits that had been available for decades.  In addition, changing securities laws totally upended the secondary financial marketplace adding unscrupulous new players.  The real estate industry is not immune to the law of “supply and demand.”  There are simply too few housing units available in California in relation to the ever-increasing housing demand.  This November’s ballot proposition, the so-called “Rental Affordability Act,” will make the California housing crisis, and in particular the affordable housing crisis even worse. 

Back on the State Ballot this November:  RENT CONTROL!

California’s rental housing providers are again under attack this November.  A new ballot initiative that we’re calling “Proposition 10, Version 2.0”, if passed, will drastically expand California’s rent control laws by repealing the protections we now have under the Costa-Hawkins Hawkins Rental Housing Act, which protects vacancy de-control and limits how far local governments may go in expanding rent regulations. 

Not much more than a year and a half after two-thirds of California’s voters rejected Proposition 10, backers of that measure have garnered enough signatures, nearly one million signatures, to qualify a similar rent control measure for the November 2020 ballot.  We must defeat this latest attack on rental housing providers!  This new ballot initiative is an extremely dangerous threat to all rental property owners!  If passed:

Public Sector Unions Continue Their Attack on Property Rights in California

By Edward Ring
April 30, 2020

California’s legislature is controlled by Democratic super-majorities in both houses. These Democrat politicians, in turn, are controlled by public sector unions. They are now considering Assembly Bill 828, which will empower courts to summarily reduce rents by up to 25 percent and create additional barriers to the eviction process.

Passage of this law would be a disaster. It’s not just a blatant usurpation of property rights. It also adds a hefty shove to an economy already teetering on the brink of an epic deflationary spiral.

Reopening Amenities: Effectively Communicate Your Plan With Residents & Teams

In some areas, stay-at-home orders are beginning to lift, and restaurants, retail stores, gyms, and communal spaces are reopening to the public. The majority of businesses are taking a phased approach to ensure the safety of their patrons and staff. From closing off streets and parking lots to make room for outdoor dining to requiring face masks, cities are consulting the guidance of their local governments on what steps are needed to reopen their communities. 

As a property or community association manager with shared amenities, such as gyms, pools, dog parks, and playgrounds, you need to make sure your reopening plan is in line with your state guidelines to prevent any potential liability issues. In addition, it’s crucial your residents and homeowners are being informed of any changes in a timely manner and that your team members clearly understand each phase. 

“UNTIL FURTHER NOTICE” by Elaine Simpson

We have all been hearing the phrase “until further notice” a lot lately:  item not available until further notice, closed until further notice, service not available until further notice.  In our digital world, there are plenty of ways you can still stay connected and provide excellent customer service, however, if someone wants to give you a good or bad review online right now – they can’t, at least not on two major platforms.  You guessed it, until further notice!

This week Yelp and Google My Business chose to temporarily disable new reviews, responses and any Q&A for all businesses “until further notice”.   Both companies made this critical update to their policies because a significant number of negative reviews and experiences had been posted based on offices being closed and limited services being available due to the pandemic and the Work From Home (WFH) request by government officials. 

5 Tips for Property Management Success

By:  Marco Vartanian, President and Owner, Sullivan Property Management

Apartment property management is getting more complex.  It seems almost daily, there are new laws, regulations and rules to contend with.  While the pace of change can be overwhelming, the following are 5 simple techniques to help ensure successful property operations.

1. Stay Organized

As an apartment owner, make sure you’re managing your investment like the “business” that it is.  First and foremost, maintain pristine property records that are routinely updated, organized and securely stored for future access.  On the tenant front, create and save individual files that include all leases, rental payment ledgers, rent increase notices and lease expirations.  It’s also important to create and save a written log of all tenant communications over phone, email and text messaging.

How to Attract Long-term Tenants

As a landlord, your goal is to attract long-term tenants; long-term tenants mean you’ll have a steady income and less trouble. Listing units, time in between renters, and running background and credit checks for new applicants, is not only time consuming, but it can also get expensive. As a landlord, there are a few different ways to both attract and keep your tenants.

Make the Price Right

The first thing a potential renter will look at is the price; know the rental prices in your area and set yours accordingly. Setting your rent slightly lower than similar units could pay off in the long run, if it attracts a long term tenant with a good job.

Maintain Your Property

If your property is dirty, smelly, and falling apart, you won’t attract good tenants. People with good jobs want to come home to a safe, clean, and secure home.

Before you start showing the place, do a deep cleaning. Clean the carpets, paint the walls, fix any damage, and get rid of any bad smells. While you’re at it, make sure the exterior looks well kept, too. Keep the outside of your property clear of trash, mow the lawn and water the plants. Maintaining your property will also inspire your tenants to keep it up too.

Landlord/Tenant Questions & Answers

Ted Kimball, Esq.

May 2020

1.  Question:  We rent a house to a family.  My husband helped the tenant move a washing machine into the laundry room and noticed that the tenant’s defective hoses had leaked water onto the sheetrock.  We want to have the sheetrock repaired.  Can we deduct the cost from his security deposit and then send a 30-day notice for the tenant to reinstate that amount?

Answer:  You can serve a 3-day notice to perform conditions and covenants or quit to require the tenant to make repairs or to pay for the repairs.  If they do not comply with the notice, you can proceed with an eviction, or alternatively, deduct repair costs from their security deposit.

2.  Question:  I heard that if a tenant is using drugs on a property, the landlord can be charged on a drug charge, is this true?

Answer:  A landlord can be cited for maintaining a drug-related nuisance if he or she does not take reasonable steps to remove the illegal drug activity from the property.  The local enforcement agency must first advise the landlord of the nuisance.