RentalOwner agai February 2016 ne … · Take your career to the next level with the National Apartment Association Education Institute ... 15 Ways to Modernize Your Model Home for

t h e v o i c e o f t h e r e n t a l h o u s i n g i n d u s t r y

Edition

1201101009080706050

February 2016

RentalOwner Magazine®

In this issue• Hoarding• Solar Energy

New Year, New Laws, New Opportunities!

• Pest Control Application by Owner-What You Should Know • Multi-Unit Apartment Remodel

Professional CertificationsandDesignations

Take your career to the next level with the National Apartment Association Education Institute (NAAEI) Professional Certifications and/or Designations.

These Programs are available online at www.sdcaa.com

Online LearningOnline ClassesSeminars

ONLINE: A Property Manager's Disaster Guide

Natural catastrophes and man-made disasters caused a worldwide economic loss of $218 billion in 2010. With so much of your property assets at stake, understanding and conveying your disaster plan is vital in being a successful apartment manager. Gary A. Pudles, President and CEO of AnswerNet, will navigate you through the development of a successful property disaster plan. This webinar will include the best processes to identifying risks and hazards, constructing and implementing a plan, how to effectively communicate that plan to your tenants and stakeholders.

Cost: $71Register at naahq.org

Register at www.sdcaa.com

Have your RHC login information ready.Forgot your login? Contact RHC Monday through Friday between 8am and 5pm

Get up-to-date information through the convenience of learning on the Internet while providing the opportunity and bene-fits of peer-to-peer interaction through the Webinar Wednesday series or the NAAEI webinars.

February

24 Model Behavior: 15 Ways to Modernize Your Model Home for 2016

March9 Superhero Secrets: The Art of Recruiting and Retaining Action Staff

23 How NOT to Lose a Resident in 12 Months!

Webinars

Take online courses or recorded webinars 24 hours a day. Over 80 courses are available in Eng-lish and Spanish. View the bro-chure at www.sdcaa.com.

More information on cost and registration is available on www.sdcaa.com

6Multi-Unit Apartment RemodelThe author covers the five key items to consider when remodeling rental housing.

Pest Control Applications by Owner-What You Should KnowSDCAA/RHC's White Paper that covers Pest Control Application by Owner a new law that went into effect January 1, 2016. The article covers application, notification and noticing methods.

23 Legal Question and AnswerThe Legal Q and A provides insight to the most asked questions by members as well as suggestions for solving

common landlord-tenant problems.

RentalOwner-RHC Magazine

Cover: ® National Apartment Association

We are very excited to bring you RentalOwner-RHC! Our main objective is to bring you informative articles that will help you manage your rental property. Whether you are a regional manager, onsite manager, leasing agent, independent owner or maintenance person, we hope you will find the articles and services useful.

Magazine StaffPublisher Alan Pentico, CAEExecutive Director

Design & Layout Olivia GalvezDirector of Publications

RentalOwner-RHC Magazine is published by the San Diego Multi-Housing Corporation (SDMHC) a wholly owned subsidiary of the San Diego County Apartment Association (SDCAA). The magazine is published monthly and is provided to RHC members only. The views expressed in these articles are the authors's and do not necessarily reflect those of the SDCAA, RHC or SDMHC.

All Rights Reserved Materials may not be reproduced or translated without prior written permission by the publisher. For more information on Rental Housing Coalition-South Riverside County or Rental Housing Coalition- Desert Cities or RentalOwner -RHC Magazine contact the publications department at [email protected] or at 858.751.2217, visit www.rhcsoriverside.org, www.rhcdesertcities.org .

To Advertise: If you would like to advertise your products or services in RentalOwner-RHC Magazine, contact the publications department at [email protected].

To Write for RHC: If you would like to submit a story idea, write or advertise in RentalOwner RHC or RentalOwner magazine, please contact the publicationdepartment at [email protected]

Columns

11 Local Legislative 14 From the Capitol-NAA Update16SDCAATravelandLearnProgram

19

4 | RHC-RentalOwner February 2016

In my January message, I wrote about the three words that best describe what the RHC-SDCAA does: Advocacy, Education, and Networking.

2016 will be an important year to educate ourselves, and share that information with our employees, colleagues, and tenants because Knowledge is Power.

The English Philosopher Francis Bacon apparently was the first to coin the phrase “Knowledge is Power” in 1597 in his literature - that phrase has been repeated millions of times by famous and not so famous people. While the phrase may have meant something very different back then and taken out of context over the centuries, knowledge is empowering and gives you that competitive edge. In today’s world, we are exposed to all kinds of information, some of it useful and a lot of it not useful at all. We constantly disseminate the information we take in every day, and use what we consider valuable to our advantage. Knowledge, like a raw material or commodity, can be transformed to create wealth. Relying on inaccurate information, out-of-date rental forms, and using inadequate screening services can cost you time and money.

When it comes to the rental housing industry, the RHC-SDCAA is your information superhighway. The RHC-SDCAA provides useful and relevant information to its members through its classes and seminars, social media, print and electronic publications, updated rental forms, and events. Rely on us to be one of your trustworthy sources of information.

There are new rules for landlords or property managers that apply household pesticides on their rental properties. Read the article, Pest Control Applications by Owners on page 19. Considering a remodel of your apartment units? Multi-unit Apartment Remodels on page 6 will help you

consider your options. Our calendar of events and local legislative update are on page inside front cover and page 11. If you missed the recent RHC Legal and Legislative Update at the Murrieta Public Library on February 18, visit our State Issues webpage on the SDCAA website, www.sdcca.com for updates on state bills. Does your Maintenance Staff have what it takes to be the best, have them attend the Maintenance Mania Boot Camp on February 24th at the HD Supply Headquarters in Scripps Ranch - Visit the SDCAA’s Events webpage for more details.

Remember, as an RHC-SDCAA member, you can log into the website to access our updated rental forms, industry surveys, White Papers, InfoLink Resident Screening service, and even pay invoices online.

Alan Pentico, CAEExecutive Director Rental Housing Coalition of South Riverside County and Desert Cities

From the Executive Director's Desk

RHC-RentalOwner February 2016 5

SDCAA Events Department │ Phone 858.751.2219 │ Fax 858.565.6708

DateApril 19, 2016

LocationSan Diego

Convention Center111 W. Harbor Drive

San Diego, CA 92101-7899

TimeExhibits

9:00am - 4:00pmEducational Seminars

8:00am-5:00pm

Parking$15 Self

Registrationwww.sdcaa.com

42nd Annual Education Conference & EXPO

Have you RESERVED your booth? There is still space availible! Pick your booth on our interactive map!

Sponsorship OpportunitiesWhether or not you are exhibiting at the 2016 SDCAA Education Conference & EXPO, you will want to take advantage of the large variety of sponsorship and marketing opportunities available! Association members rate the EXPO as one of their most valuable member features. In fact, 95% of exhibitors said they are likely to participate in the event again this year. You can’t afford to miss this opportunity!

Questions? Contact [email protected] or 858.751.2219

APRIL 19, 2016EDUCATION CONFERENCE & EXPO

BRING OUT THE SUPERHERO IN YOU!


When I am asked about what the considerations should be when assessing an apartment community for a remodeling

overhaul, my first question is “what is the demographic?”

Keeping your demographic market in mind before approaching the overall design of the remodel and the list of potential modifications is the single most important factor before proceeding. Perhaps the group is comprised of young professionals ranging in the age 20 to 30 who prefer a contemporary style. Or, perhaps your tenants also include many mature

and more sophisticated people, who lean toward transitional style, which is a mix of contemporary and traditional. Whether buying or renting, San Diego residents want the most style they can afford, along with state-of-the-art convenience and materials that are easy to maintain.

DesignAlthough it’s true that there are differences in style preference among the generations (for example, contemporary vs. transitional), according to recent surveys by the National Kitchen and Bath Association (NKBA), contemporary design with simple lines and

Multi-Unit Apartment Remodel?

By Christine RothwellOneSource San Diego Services


no detail has become more popular among all age demographics. So even if the apartment community is populated primarily by baby boomers, it is safe to implement a transitional look and feel leaning more toward contemporary.

Style is what a remodel should be all about in order to get the best bang for your buck. Implement the latest trend possible,keeping in mind that an up-to-the-minute remodel will stay up-to-the-hour in style for approximately 10 years or longer.

The design should not be so severe, however, that it could turn off Millenials, Generation X and Y, or the baby boomer, renter. In other words, if a young professional is desirous of a unit in a neighborhood that has primarily an older demographic or is family oriented, the style should be such that it wouldn’t make or break the decision to move into the community because it is too traditional. Vice versa, a more mature couple or single person might be turned off by a contemporary, cutting-edge,

chrome, starburst lighting fixture.

Simple lines, storage, and ease are all important to baby boomers. In addition, simplicity in design, if

designed well, can please the Generation X and Y. With full knowledge of the demographic you are trying to rent to, you can lean closer to

Remodels that make sense

Kitchens, baths and flooring are the most popular

remodels and can lead to rent increases between $300-$500 per month.


contemporary if that’s what the market demands without sacrificing convenience, ease of maintenance, while at the same time giving your renters impactful style.

Budget AllowanceKitchens, baths, flooring, and paint are still the top remodeling features to implement based on your budget and projected rental increase potential. I’ve seen property owners achieve anywhere from $300 - $500 rental increase for a full remodel which includes kitchens, baths, flooring and paint.

White kitchens are the latest trend choice, but be careful about the quality and durability of the cabinet material. White is more difficult to maintain if the wrong materials are utilized. The wear and tear on poorly constructed cabinets can make a remodeling project look worn after only a few years of use, which is disastrous for the capital expenditure.

If the budget allows, kitchen cabinets and countertops should be at the top of your remodeling list, along with skip-trowel ceilings instead of acoustical. Bathrooms and flooring come next on the list, then appliances and lighting. Pull- out shelving and more drawers than doors are gaining popularity due to ease of retrieval.

Costly upgrades, such as cabinets, countertops and flooring should be carefully selected so that the design lifespan is at least 10 years or more. Be careful before deciding to paint old cabinetry. If the decision is to “paint versus replace,” it is important

that the paint professional is knowledgeable about the appropriate materials to use so that the refinished cabinets have the durability beyond just a few years, otherwise you will be in the same boat with your worn-out looking kitchens and bathrooms all too soon. Ask the painting professional for a sample and test the finish against scratching. Compare the painted finish to a new door that you might potentially use.

Cost Effective Design ChangesItems such as lighting fixtures and paint color can provide the design impact and that ever-popular San Diego wow factor. Since these items can be changed easily and cost effectively, this is where high impact is best demonstrated in a remodel. A trendy backsplash can also be easily upgraded when trends change.

ContractorsThe last point I would like to mention is that it is important to utilize contractors who have the reputation of not only quality construction work, but who will complete the project on time.

A prominent San Diego multi-family property owner who recently underwent a major remodel of his property commented to me that “It was important to ensure that the contractors and on-site maintenance and management were in total alignment on timing, impacts to the property and residents and ultimate availability of units as the remodels were completed.”

Completing the remodeled units on time is critical so that costly downtime can be minimized. This requires experienced professionals who will manage the many aspects of a full remodel in as seamless a process as possible so that the availability of the units and rental income is restored quickly. With careful implementation of the upgrades and a well thought-out design, a professional remodel can reap years of satisfied renters, minimal maintenance costs, and increased rental profitability.

Abouth the author: Christine Rothwell is the principal and project manager at OneSource San Diego Services for questions about the article Christine can be reach through her website at www.OneSourcesd.com

Time is critical.

Ensure at all times that

contractors, onsite staff

and management are

aligned to minimize

costly down time.


White PapersSDCAA-RHC

• CAPP Brochure• City of San Diego Recycling Info Packet• County of San Diego Recycling• Craigslist Tips Paper• Crime Free Multi-Housing Programs• Dealing with the Death of a Tenant• Dept of Energy Water Heater Efficiency Standards• Do Not Track Disclosure Law (AB 370)• Domestic Violence in Rental Housing• Initial Pre Move-Out Inspections• Mandatory Recycling at Multifamily Properties• Mini-dorm Fact Sheet• NAA Criminal Background Check Toolkit• NMHC - Music Licensing• Plumbing Retrofit Requirements• Pool Safety and Maintenance Requirements - effective Jan. 1, 2015

• Pool Signage Requirements• Proposition 65 - Noticing & Posting Guidelines for Multifamily Properties• Rent Adjustment Kit • Renting to Tenants with Questionable Credit History• Renting to Tenants with Pets• Residential Battery Disposal• San Diego Cause Eviction Ordinance• San Diego Water Submeter Billing• Satellites in Rentals• Service & Companion Animals• Smoke Alarm Laws (Updated!)• Smoking Guidelines Packet• Smoking in Rental Housing• Towing Vehicles from Private Property• Water Conservation Information Packet

Smart insights to industry issues and practices that help you comply with the law and learn best practices.

To access the White Papers, login to your SDCAA/RHC account

M e m b e r s h i p



Southwest Riverside Mayors give their State of the City AddressCurrent and former mayors of Lake Elsinore, Menifee, Murrieta, and Temecula gave their State of the City addresses at a Women’s Council of Realtors® luncheon last month. All four Mayors described their city’s recent accomplishments and priorities for the year ahead.

Former Lake Elsinore Mayor Steve Manos described how Lake Elsinore is reinventing itself. The city’s priorities are public safety, economic development, recreation, transportation, image, education and service. Manos spoke about Lake Elsinore’s changing demographics; the city’s median income now stands at $74,000 and median age is 30 years of age, noting that a lot of young families are moving into the city. Like other cities in the region, Lake Elsinore’s tax revenues are up and home prices are rising to pre-recessionary levels. The city refinanced its Community Facilities District Bonds saving the city millions of dollars, reducing property taxes for city residents, and providing more money for city projects. Lake Elsinore increased funding it budgeted for Capital Improvement Projects from $21M to $76.4M. Manos noted that the city completed six major projects last year with seven more expected to be completed this year; in all, there are 58 active projects throughout the city. The city added 103 new businesses

last year and will be adding more commercial/industrial space.

Menifee Mayor Scott Mann described the city’s rapid growth reaching 85,000 people in the past seven years since it became a city. Menifee is the second fastest growing city in Riverside County and sixth fastest in California. Mann mentioned passage of its general and economic development plans, and that it has embarked on a 5-year $100M capital improvement plan. Menifee has already completed two of its seven major infrastructure projects and it will continue to expand its major roads, freeway overpasses and freeway entrances and exits. Menifee will add several more and expand several existing of its shopping centers. According to Mayor Mann, Menifee was only one of a dozen cities highlighted at a recent International City Managers Association Conference last September. The city’s median age dropped from 57 to 38 years of age and the unemployment rate has dropped from almost 15 percent to 8.3 percent while annual median income rose to $67,318. Mann reported that Menifee will add 16,000 new units and reach build-out in next ten years.

Murrieta Mayor Randon Lane talked about the city’s rapid growth with the population increasing some 400 percent in the past 23 years; the city currently has 107,000 residents. Murrieta’s General Plan was approved in 2011 and will guide the city’s

RHC Local Issues

• Southwest Riverside Mayors give their State of the City Address

• County Supervisors adopt Short-Term Rentals Ordinance

• Series of mail thefts in Riverside stress need for security

By Molly Kirkland, Director of Public Affairs


development until 2035. Lane stated Murrieta will continue focusing on public safety, quality of life and economic development, and construction of a third hospital and medical campus expected to start this year. Lane noted that the Federal Bureau of Investigation (FBI) called Murrieta the safest city in the United States, boasted that the city’s median income is over $100,000. The city is working to attract businesses to several large business parks and become a hub for high-technology companies in the Temecula Valley. The city council approved a $125 million infrastructure budget.

Temecula Mayor Mike Naggar spoke about improving the quality of life of Temecula’s 108,000 residents. He said that Temecula ranked 31st in 247, WallSt.com top 50 cities to live in the United States, and city’s public school system ranked as one of the nation’s best according U.S. News and World Reports. Naggar added that the city is a major economic driver providing over 56,000 jobs and only has an unemployment rate of 4.5 percent. He mentioned the completion of several major road projects such as Phase I completion of French Valley Parkway with several more major projects set to begin construction in several months like the I-15/Temecula Parkway Interchange. He mentioned the City Council’s approval of the 560-acre Uptown Specific Plan along Jefferson Road and that the 270-acre Altair Specific Plan in the hills west of Old Town is under review. If approved, the

Altair plan will include a four-lane Western bypass, 1500 residential units, an elementary school, a community clubhouse, parks, and trails. The new Uptown plan will add 1.7 million square feet of new commercial development, 315 hotel rooms, and 3,726 residential units, and allow developers to build their projects up to seven stories. He noted the expansion projects of the Pechanga Resort and Casino and Temecula Creek Inn, and that tourism generates $651 million in annual economic activity.

County Supervisors adopt Short-Term Rentals OrdinanceThe Riverside County Board of Supervisors recently adopted an ordinance regulating short-term rental properties in the unincorporated communities. Under the new ordinance, short-term rentals are defined as units where individuals pay for overnight stays that are 30 days or less. Owners of the rental units will be required to obtain permits every year; the initial fee is $250, but drops to $100 per year afterwards. The units will be subject to a 10 percent transient occupancy tax (TOT) and must be registered with the county. The units must adhere to “quiet time” rules between 10 p.m. and 7 a.m., garbage must be stored in discrete areas, and visitor parking is restricted to the property. However, parking restrictions will not apply to the Idyllwild and Pine Cove

communities. An independent agency contracted with the county will be responsible for sending inspectors to the property to deal with complaints. Ordinance No. 927 goes into effect this month.

Series of mail thefts in Riverside stress need for security

Apartment communities in Riverside have been targeted in a series of mail thefts in recent months affecting the lives of apartment residents, owners, and postal workers. The thefts are forcing apartment owners to incorporate a litany of measures to prevent future thefts.

In one particular incident highlighted in the news media, thieves pried open an entire bank of mailboxes and took the mail contents from 75 residents in one apartment community. Not only is mail suspended for the residents until the new anti-theft measures are in place, but the property management company is scrambling to install theft resistant mailboxes, additional locks, and surveillance equipment. The company is also constructing additional barriers and hiring security guards to patrol the property to deter future thefts.

The Postal Service advises residents to check their mailboxes daily and use the USPS “Blue” mailboxes for outgoing mail. In light of the mail thefts, the RHC-SDCAA reminds property managers and owners to take


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June 15-18, 2016San Francisco

Dear SDCAA Members,

As you may know, the 2016 NAA Education Conference & Exposition will be held on June 15-18,in San Francisco. To make this conference a success, we call on you to get involved by donatingsome of your time during the conference as an NAA Concierge Volunteer*.

NAA Concierge Volunteers are required to:• Commit a full 4 hours of their time during the 2016 NAA Education Conference & Exposition• Attend a concierge training on June 14 or June 15• Agree to be properly attired – NAA shirt and black or khaki pants• Provide exceptional customer service to conference attendees

In exchange for your time and commitment, NAA will offer a discounted registration rate – a saving worthover $500 and includes the conference materials and access to:

• All the Education Sessions• Two General Sessions• Exposition• Thursday and Friday Lunch• Maintenance Mania® National Championship

Should you wish to attend the Thursday Night Party, tickets are available for $200.*

To volunteer, please register at www.naahq.org/educonf and type in the code 16HOST. Note that all shifts are first come, first served. More details will be provided once you have registered.

*Suppliers are not eligible for this offer.

Register Now! www.naahq.org/educonf

2016EduCon_Concierge.qxp_AdTemplate.qxd 1/11/16 5:31 PM Page 5


June 15-18, 2016San Francisco

Dear SDCAA Members,

As you may know, the 2016 NAA Education Conference & Exposition will be held on June 15-18,in San Francisco. To make this conference a success, we call on you to get involved by donatingsome of your time during the conference as an NAA Concierge Volunteer*.

NAA Concierge Volunteers are required to:• Commit a full 4 hours of their time during the 2016 NAA Education Conference & Exposition• Attend a concierge training on June 14 or June 15• Agree to be properly attired – NAA shirt and black or khaki pants• Provide exceptional customer service to conference attendees

In exchange for your time and commitment, NAA will offer a discounted registration rate – a saving worthover $500 and includes the conference materials and access to:

• All the Education Sessions• Two General Sessions• Exposition• Thursday and Friday Lunch• Maintenance Mania® National Championship

Should you wish to attend the Thursday Night Party, tickets are available for $200.*

To volunteer, please register at www.naahq.org/educonf and type in the code 16HOST. Note that all shifts are first come, first served. More details will be provided once you have registered.

*Suppliers are not eligible for this offer.

Register Now! www.naahq.org/educonf

2016EduCon_Concierge.qxp_AdTemplate.qxd 1/11/16 5:31 PM Page 5

At long last, we are inside 2016; the year where major change is guaranteed in

at least one of our branches of government and where there is potential for change is one of the others. The Obama Administration comes to end at the close of this year. Whether the new occupant at 1600 Pennsylvania Avenue is of the same or opposite party, there will be a new voice at the bully pulpit, a new approach to leading the nation and, indeed, the world. In the Congress, the House of Representatives will stay in the same party’s hands – barring something crazy happening elsewhere in the political machine – while the Senate is once again up for grabs. Senate Republicans will struggle and strive to maintain their slim majority while House Republicans will attempt to

preserve the scale of theirs. Of course, that is 11 months from now and we have miles to go before we sleep (or pass out from campaign fatigue).

At the close of 2015, Congress and the President had knocked out a number of big policy items for the near term thereby smoothing out some potential bumps in the road this year. The federal debt limit has been lifted until March 2017 (no game of chicken over the full faith and credit of the U.S.). The federal budget levels for 2016 and 2017 have been set (much less chance of government shutdown). Several perennial annual tax extenders were made permanent while several others were extended for multiple years (much diminished chase for another year of life for temporary tax

provisions). Finally, the highway trust

fund was replenished for five years (road crews of the world rejoice!).

This bevy of work the Congress completed before leaving for the holidays included victories for the apartment industry, especially in the tax arena where all of our priorities in the tax extenders package were either extended or made permanent. These include bonus depreciation, small business expensing, energy efficiency and affordable housing development. See the Dec. 28 edition of the

v i e w

By Greg Brown, Vice President of Government Affairs, NAA

from


Apartment Advocate for details on these victories. Not all was shiny for us, however, in the final legislative package that is now law. Proposed language to prevent funding for the Environmental Protection Agency being used to enforce the Waters of the United States or “WOTUS” rule was dropped in the final negotiations. This rule is widely opposed by industries, state governments and others and would negatively impact not only new development of apartment homes but also existing communities. A federal court has stayed the rule for now, but that is not a permanent solution so look for more advocacy on this in 2016.

In what feels like a rare event, we did score a nice victory in the rules from the Internal Revenue Service (IRS) regarding treatment of expenses to acquire, maintain and improve tangible property, including apartment buildings. NAA and the National Multifamily Housing Council had vigorously advocated for a healthy amount of deduction available to taxpayers without an applicable financial statement or “AFS” in the year of purchase of an item versus having to depreciate that item over several years. The initial amount in the IRS rule was $500 which in our view was far too low. At the end of November, this deduction amount was increased to $2,500 for those taxpayers without an AFS. For more details, see the Dec. 21 edition of the Apartment Advocate. This is a substantial victory and an excellent example of apartment industry advocacy in action.

Despite the victories I’ve noted

already, there is much more work to do in the coming year. The Department of Housing and Urban Development has issued several rules recently in the area of fair housing on which we will be focusing. There is legislation to improve and enhance the Section 8 Housing Choice Voucher program which has strong bipartisan support but a potentially bumpy path before becoming law. Data security, employee criminal background checks and patent reform are all still in the mix for some kind of action in the second session of the 114th Congress. All have implications for your business and we will be at the table for the deliberations.

Mark your calendars and make your travel arrangements for the 2016 NAA Capitol Conference and Lobby Day which will take place March 8 and 9 in Washington, D.C. NAA’s goal is to reach all 535 Congressional offices – that’s 435 Representatives and 100 Senators. The Capitol Conference will start after lunch on March 8 with an issues orientation and advocacy training followed by keynote speaker Joe Scarborough, a former member of the House and host of MSNBC’s Morning Joe. While members of the House will be in recess the week of March 7, NAA members can schedule meetings with their important key staff members in Washington and just as importantly schedule meetings with members of the U.S. Senate, which will be in session. NAA members who aren’t planning to attend the Capitol Conference will help us reach our goal by scheduling meetings or property tours at home with their

Representatives that week. If you care at all about the future of your industry, your business or your bottom line, you will be part of our effort to make the voice of the apartment industry heard.

Water Conservation

Packet available online at

www.rhcsoriverside.com


And they are back. Legislators returned for the second-year of the 2015-16

legislative session on January 4th and bills are being introduced, the Governor has proposed his 2016-17 fiscal year budget, Senate Democrats have proposed an initiative to combat homelessness and the Legislature is dispensing with bills left over from 2015 that did not make it out of their house of origin. They have until January 31st to pass. If they do not, bills introduced in 2015 that did not make it out of their house of origin are dead and cannot be moved.

NEW Speaker of the AssemblyAs you all probably know, Assembly Member Toni Atkins is termed-out of office and is challenging Senator Marty Block for the 39th Senate District seat. With that, the Assembly elected Assembly Member Anthony Rendon as their new speaker. Assembly Member Rendon represents the 63rd Assembly

District (cities of Bell, Hawaiian Gardens, Lakewood, Paramount, South Gate in Los Angeles and a northern portion of Long Beach) and will take over sometime in March. Since Assembly Member Rendon was elected under the revised term-limit law, he is eligible to serve until 2024. Should he remain speaker for the remainder of his tenure, it would make him the longest serving speaker since term-limits was enacted.

SDCAA and Aaron Read & Associates (ARA) have a good working relationship with Speaker Rendon and look forward to working with him and his staff.

“No Place Like Home” InitiativeA bipartisan coalition of California Senators, led by Senate leader Kevin de Leon, introduced their “No Place like Home” initiative on January 4th. According to the Senator, the Senate proposal is crafted with the understanding

that fighting modern homelessness – with long-term solutions, not short-term band-aids – requires a localized approach sustained by a strategic statewide commitment.

The Senate legislative package on homelessness re-purposes Proposition 63 (2004) – The Mental Health Services Act – bond money and leverages billions of additional dollars from other local, state, and federal funding to achieve the following goals: Housing:• $2 billion bond to construct

permanent supportive housing for chronically homeless persons with mental illness.

• $200 million, over 4 years, to provide supportive housing in the shorter-term, rent subsidies, while the permanent housing is constructed or rehabilitated.

California

Aaron Read & Associates


Support for two special housing programs that will assist families:

• The “Bringing Families Home” pilot project, a county matching grant program to reduce homelessness among families that are part of the child welfare system. The CalWORKs Housing Support Program, which provides housing and support services for CalWORKs families in danger of homelessness.

Income support and outreach:• An increase in Supplemental

Security Income/State Supplementary Payment (SSI/SSP) program grants which provide income support for the aged, blind, and disabled poor who cannot work.

• A one-time investment to incentivize local governments to boost outreach efforts and advocacy to get more eligible poor people enrolled in the SSI/SSP program.

We will be reviewing the proposed language once it is released and watching for any additional “add-on” that some may wish to see included that could negatively affect the rental industry.

Ellis ActSB 364 (Leno), a bill that sought to amend the Ellis Act (San Francisco only), and a bill SDCAA has actively opposed the last two-years, is dead. The bill would have penalized small San Francisco landlords and property owners in an attempt to address

San Francisco’s housing shortage and lack of affordable housing. The Ellis Act establishes a fair balance between landlords and in almost every case, invocation of the Ellis Act does not result in the loss of housing units as most units are converted to tenancies in common, which creates affordable home-ownership opportunities. SB 364 would have upset this precarious balance by making it almost impossible to utilize this necessary tool.

Now, while SB 364 may not be moving forward, it does not mean that Senator Leno (or other legislators), won’t reintroduce legislation (again) to drastically amend the Ellis Act in 2016.

SDCAA will continue to engage on legislation that is still active, i.e. bedbugs and water submeters, but we are preparing to engage in what we see as a statewide assault on the rental housing market most notably, rent control and other measures that seek to limit the amount of control owners have

over their property. Considering the fact that a number of cities have attempted to implement are expand rent control in local jurisdictions (and failed), couple that with what some perceive as an affordable housing crisis in California, makes this an issue legislators will want to tackle.On the table; the Costa-Hawkins Act (the 1995 State law that set limits on rent and vacancy control), another attempt to amend the Ellis Act, limiting landlords use of criminal background checks for perspective tenants and other proposals that will seek to limit how you manage your properties. We will keep you informed as bills are introduced.

Aaron Read & Associates

Aaron Read

Pat MoranJennifer TannehillTerrance McHale


SB 328 (Hueso) was signed into law in October 2015. A property owner or manager can control and apply pesticides themselves. However, the new law requires

a property owner or manager to provide at least a 24 hour notice to the tenant(s) and to any tenant in adjacent units that the owner or manager will be applying pesticides in the dwelling unit without using a licensed Pest Control Operator (PCO). If the pest poses an immediate threat to health and safety to the tenant, the property owner or manager may post the notice or notify the tenant in less than 24 hours, but they must provide at least 1 hour notice to the tenant and nearby tenants prior to the application of the pesticide to a dwelling unit or common area.

Pest Control Applications By Owner- What you Should


If a different or new pesticide is being applied, the owner or manager must provide a new notice to the tenants using the same protocol.

Applying a pesticide in a Dwelling UnitA property owner or manager is required to provide at least 24 hours in advance, a notice to the tenant(s) and the tenants in adjacent units that they will be applying a pesticide to their dwelling unit if they are not using a licensed PCO. Adjacent units are defined as units that are directly beside, above, and below the particular dwelling unit.

(Form 228 Pest Control Notice-Owner Application of Pesticides complies with the notification requirements set forth by the law.)

The notice must include: 1. What pest will be controlled or

eliminated2. The type (brand name) of

pesticide being used and how it will be applied (i.e. Raid® Ant & Roach Killer)

3. The approximate date and time the pesticide will be applied

4. The frequency of the application

5. The notice also must include the following statement:

CAUTION – PESTICIDES ARE TOXIC CHEMICALS. The California Department of Pesticide Regulation and the United States Environmental Protection Agency allow the unlicensed use of certain pesticides based on existing scientific evidence that there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized.

If within 24 hours following application of a pesticide, a person experiences symptoms similar to common seasonal illness comparable to influenza, the person should contact a physician, appropriate licensed health care provider, or the California Poison Control System (1-800-222-1222).

For further information, contact any of the following: for Health Questions – the County Health Department (telephone number) and for Regulatory Information – the Department of Pesticide Regulation (916-324-4100).

When providing the written notice, it should be delivered using at least one of the following methods: • First-class mail • Personal delivery to the

tenant, someone of suitable age and discretion at the premises, or under the usual entry door of the premises

• Electronic delivery, if the email address was provided by the tenant

• Posting a written notice in a conspicuous place at the unit entry so person could reasonably discover the notice

Upon receipt of written

notification, the tenant may agree (sign) in writing, or if notification was delivered electronically, the tenant may respond using electronic delivery to allow the landlord or authorized agent to apply a pesticide immediately or at an agreed upon time.

However, the property owner or manager and the tenant may verbally agree to an immediate pesticide application if a tenant requests that the pesticide be applied before 24-hour advance notice is provided. In the verbal agreement, the manager or owner must provide the name and brand of the pesticide product that will be applied.If the owner or manager and the tenant verbally agree for immediate pesticide application, the owner or manager must leave the written notice in a conspicuous place in the dwelling unit or at the entrance of the unit so the tenant can discover the notice after the pesticide has been applied. The owner or manager also must provide the same written notification to any tenants living in the dwelling units adjacent to the dwelling where

Visit www.sdcaa.com and download

Form 228Pest Control By Owner


the pesticide was applied, and the notice must be provided to the adjacent tenants prior to the pesticide’s application.

Applying a Pesticide in a Common AreaWhen applying a pesticide to a common area without a licensed PCO, the owner or manager must post a written notice in a conspicuous place in the common area at least 24 hours in advance prior to the pesticide’s application.

The notice must provide the following details in easy-to- understand verbiage. The owner or manager is not liable if the written notice is removed from the common area. 1. The pest or pests to be

controlled or eliminated2. The name and brand of the

pesticide product that will be applied

3. The approximate date, time, and frequency the pesticide will be applied

4. The notice also must include the following statement:

CAUTION – PESTICIDES ARE TOXIC CHEMICALS. The California Department of Pesticide Regulation and the United States Environmental Protection Agency allow the unlicensed use of certain pesticides based on existing scientific evidence that there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized.

If within 24 hours following application of a pesticide, a person experiences

symptoms similar to common seasonal illness comparable to influenza, the person should contact a physician, appropriate licensed health care provider, or the California Poison Control System (1-800-222-1222).

For further information, contact any of the following:

for Health Questions – the County Health Department (telephone number) and for Regulatory Information – the Department of Pesticide Regulation (916-324-4100).

Landlord Advice--Need Help?

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Q u e s t i o n s a n d A n s w e r sBy Todd A. Brisco, Todd A. Brisco & Associates, A Professional Corporation

LegalQWife filed a restraining order against her

husband. She moved out of the apartment. If she shows me the proper documents can I release her from the lease?

AYes. The victim of domestic violence, sexual assault, human trafficking, elder abuse, or adult dependent abuse may terminate a lease without penalty by

providing 14 days (new law – was 30 days) written notice of lease termination within 180 days of the Temporary Restraining Order (TRO), police report or declaration by a qualified third party. The resident must also provide a copy of the TRO, police report or declaration.

Q If rent is due on the first of each and every month, what happens with the first is a holiday or a weekend, is the rent still due on the first?

ANo. Although your lease agreement states the rent is due on the first of the month, when the first falls on a holiday (such as January 1st) or a weekend, the rent

becomes due on the first business day of the month. As for example this past January, the first was a Friday. Under California law, any rent would become due on Monday, January 4th.

Q I have some questions regarding a 3 Day Notice to Pay Rent or Quit. Must the 3 Day Notice to Pay Rent or Quit be signed? Can the proof of service be on the same

document as the 3 Day Pay Rent or Quit? And finally, what is the requirement about payment information that must be included on the Notice?

AAs you should be aware, the 3 Day Notice to Pay Rent or Quit must be in writing. Oral 3 Day Notice to Pay Rent or Quit is not legal. In fact, there are no oral notices in landlord


Have a Question you would like to see answered here?

Please forward them to SDCAA at [email protected] or Todd Brisco at tbrisco@ briscoassociates.com and Refrence the Legal Q & A RentalOwner magazine.

SDCAA Your Framework for Success

tenant law. A judge use to say “if it was an oral notice it didn’t happen”. Take that to heart in running your business. California Code of Civil Procedure 1161 is the statute governing the content requirements of a 3 Day Notice to Pay Rent or Quit. The statute does not require the notice be signed. And yes, the proof of service and the notice may be on the same page.

The legislature amended this code section in 2009, requiring landlords to add payment language to their notices. Code of Civil Procedure section 1161 subsection 2, states as follows:

“The amount which is due, the name, telephone number, and address of the person to whom the rent payment shall be made, and, if payment may be made personally, the usual days and hours that person will be available to receive the payment (provided that, if the address does not allow for personal delivery, then it shall be conclusively presumed that upon the mailing of any rent or notice to the owner by the tenant to the name and address provided, the notice or rent is deemed received by the owner on the date posted, if the tenant can show proof of mailing to the name and address provided by the owner).”

Some courts are requiring that you list an individual person’s

name on the “person to whom” the rent is to be paid.

We use the following, as an example:Payment shall be made payable to: Apple Apartments

Person to whom payment may be paid: John Doe or Jane Doe

Address where payment is to be paid: 1234 Main St, San Diego CA 92134

Telephone number for the above address: 619-555-5555

Payment may be paid on the following days and times: Monday – Friday; 9 a.m. to 5 p.m

Q Are there limitations that may be included on a 3 day Pay Rent or Quit Notice?

AThat’s a general question. Nevertheless, the first item, 3 Day Pay Rent or Quit Notices

may only demand rent. Let me repeat that again, the notice may only demand rent. If you include late fees, returned check charges, utility charges, or anything that

is not rent, the notice is defective. If the tenant fails to comply with the defective notice, the court will make you start the entire process over. A judge cannot simply re-write the correct amount. You must then start the entire eviction process all over again. The other limitation that comes to mind is that you may not demand more than one year’s worth of rent. I do not advocate waiting one year or longer to serve a notice, but for those landlords whose tenants owe more than one year of rent, you must limit your notice to that one year.

The answers to the above questions are general in nature. Each case has specific facts that may result in a different answer. Please consult an attorney if you need specific legal advice. Todd Brisco is an attorney who handles landlord tenant matters on behalf of landlords throughout California. His telephone number is 714-634-2814 and address is 1900 S State College Blvd Ste 275, Anaheim Ca 92806. If you have any questions please forward them to SDCAA or Todd.

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