Author Archive

Taxes, Fees, Charges and Assessments: What Difference Does It Make?

Written by Landlord Property Management Magazine on . Posted in Blog

By Jon Coupal

taxes

What’s the difference between a tax and fee? There is no easy answer and the political class likes it that way. In fact, they would prefer that the public remain confused to the point of apathy.

The political class, of course, consists of elected officials, bureaucrats and their special interest allies who are to the Capitol what insider traders are to Wall Street. Working in lockstep, their approach to increasing the take from taxpayers was best outlined by Jean Baptiste Colbert, Minister of Finance under Louis XIV of France: The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.

But taxpayers are not defenseless because they have approved three constitutional amendments defining – and limiting – taxes and fees. These include Propositions 13 (1978), Proposition 218 (1996) also known as the Right to Vote on Taxes Act, and Proposition 26 (2010) which provides comprehensive definitions of taxes and fees. All three provide effective weapons against an insatiable government ever in search of more revenue.

However, to protect themselves, taxpayers must be knowledgeable, alert and ready to fearlessly protect and exercise their rights.

Therefore, while most taxpayers don’t have a law degree, here are some basics about the difference between a “tax” and a “fee.” There are very few legal limitations on “taxes.” About the only way a tax could be unconstitutional is if it impaired a fundamental right (a “poll” tax on the right to vote) or if it singled out some group for discriminatory purposes. But fees are different. A fee is a charge for something that confers a benefit to the fee-payer that is not available to those who do not pay the fee. A classic example is a charge for entering a state campground.

Until the passage of Proposition 26 in 2010, the legislature could approve fees with a simple majority vote. But in 2011, the Legislature approved, with a simple majority, charging 850,000 rural homeowners an annual “fire fee” of $150. The “fee” was not accompanied by any additional benefit or service, clearly making it a tax requiring a two-thirds vote of the Legislature. This issue is currently being litigated by taxpayers, but it is a classic example of the dishonest ends to which tax raisers are willing to go to wring ever more money from taxpayers.

Moreover, the political class has a habit of pursuing taxes that are not apparent to the general public. Almost any tax on business fits into this category. As Howard Jarvis liked to say, businesses do not pay taxes, “we do.”

As part of Obamacare, the federal government imposed a tax scheme designed to stop employers from offering top quality health plans. Backers of the Affordable Care Act included a 40 percent tax on providers of what were derisively described as “Cadillac” plans.  As these plans disappear, the uninformed will assume that it is their employer who is responsible, when, in fact, it is government.

Here, in California, a major hidden tax is cap-and-trade legislation, not approved with a two-thirds vote, that compels companies to buy carbon credits. Of course, these costs are passed on and drivers feel the impact every time they fill up with gasoline that costs, by the most conservative estimates, an additional 12 cents per gallon with more increases on the horizon. Unaware of the impact of cap-and-trade, many motorists may mistakenly assume that the high cost of gas is entirely due to the petroleum companies.

This is why taxpayers are closely watching a case just argued before the Sacramento appeals court, where opponents argue that cap-and-trade charges amount to an unconstitutional tax. The court is expected to render a decision within 90 days but, regardless of the outcome, the loser is likely to appeal to the California Supreme Court.

CoupalPubPhoto2Jon Coupal is president of the Howard Jarvis Taxpayers Association — California’s largest grass-roots taxpayer organization dedicated to the protection of Proposition 13 and the advancement of taxpayers’ rights.  

Property News Reports – Landlord Lessons with Kathy Fettke – Protect Yourself by Protecting Others

Written by Landlord Property Management Magazine on . Posted in Blog

Property News Reports provides you with the latest in Real Estate Investment Strategy, Market Analysis, Property Management Trends, Leasing Strategies & more for the Single Family, Multifamily & Commercial Real Estate Markets from leading industry experts and reliable sources.  ‘Subscribe‘ to stay informed!


Kathy specializes in teaching people how build multi-million dollar real estate portfolios through creative finance and planning. She is passionate about researching and then sharing the most important information about real estate, market cycles and the economy. Author of the #1 best seller, Retire Rich with Rentals, Kathy is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR and CBS MarketWatch. Learn more about Kathy & the Real Wealth Network at http://www.RealWealthNetwork.com

Should you be Required to Accept All Emotional Support Animals?

Written by Landlord Property Management Magazine on . Posted in Blog

By Becky Bower

emotional support animals

The term “emotional support animal” has always produced mixed opinions, with some property managers claiming that it’s a loophole term to get applicants’ pets accepted, while others cite federal law concerning tenants with disabilities. Whether your pet policy attracts applicants out of the 79 million households that own cats and dogs or prohibits residents from having their own big red dog, California property managers might be required to allow tenants to have emotional support animals, regardless of their pet policy.

What are the Differences between Service Dogs, Psychiatric Service Dogs, and Emotional Support Animals?

Service animals are animals that are trained to help a specific individual with a disability. Some states, like California, limit service animals to dogs (and in some cases, miniature horses as well). Psychiatric service dogs are individually trained to help a person with a mental disability. Both of these service animals are trained to aid someone with a disability, whether it be pulling a wheelchair or responding to the owner’s panic attack. Emotional support animals, on the other hand, can be any type of animal and are not trained to perform a specific act that relates to an individual’s disability. These types of animals give their owners emotional relief, rather than physical relief, and unlike most service dogs, they do not need to wear any form of identification (like a vest or harness).

emotional-support-animal-quote

In compliance with the Americans with Disabilities Act (ADA), the Fair Housing Act (FHA) requires housing providers to provide reasonable accommodation to tenants with disabilities, allowing them to “request a reasonable accommodation for any assistance animal, including an emotional support animal.” Federally funded housing (like Section 8 housing) is required to accept emotional support animals without proof.  That being said, legally, you may not request to show proof that the animal has any specialized training. This means, if a resident with a disability requests for reasonable accommodation and provides a letter legitimatizing the need for an emotional support animal, under the FHA, you legally must provide reasonable accommodation for their support animal regardless of your rental policy on pets. If you deny their request for reasonable accommodation, the resident can file a discrimination complaint with the Department of Housing and Urban Development (HUD).

Potential Legislation could require the Admittance of All Emotional Support Animals in California

Currently, it is within a property owner’s right to disallow pets on the property, and deny applicants (who are not covered under the ADA) based off of those written rental requirements. However, according to Ron Kingston of East Bay’s Rental Housing Association, that might change. Their online magazine, Rental Housing (issue Dec. 2016, page 22), illuminates that California’s Department of Fair Employment and Housing (DFEH) is currently proposing “broad new regulations requiring rental property owners to allow tenants to have ‘emotional support animals’ of all breeds and types to live with them in their units.” While (as said above) federal regulations require residents to request reasonable accommodations for support animals, Ron Kingston argues that the DFEH’s proposal is too broad and gives property managers limited authority to “deny a support animal request when the animal poses a threat to health and safety of other tenants, and to the property.”

As the transportation industry has enabled service and emotional support animals to fly on airlines for free and an increase in emotional support animals on airlines has been present, the validity of emotional support animals has come into question. Brian Skewis, California State Board of Guide Dogs for the Blind executive officer, has previously stated that he has found a “misuse” of the service dog law in airports. While Sacramento International Airport spokesman, Mark Haneke, has said that he is not aware of a false service dog problem, it puts into question whether or not significant misuse could be present in rentals.

Big cities like Los Angeles (which has the highest percentage of renters) have been facing a pet-housing shortage for a long time. Early last year, the City of Los Angeles even stated that they’ll start creating pet-friendly housing legislation to combat the 22.6% of dogs and 18.6% of cats that are surrendered to animal shelters due to pet restrictions. While no legislation has been passed since this statement, with misuse, the DFEH’s proposition could inadvertently cause rentals to become pet-friendly to avoid a discrimination case.

Although the California proposition has yet to be released in full detail (be sure to subscribe for updates), its broad nature would limit Californian property owner’s rights. While it might positively affect the pet-housing shortage in large cities, federal regulations already protect the resident’s right to request reasonable accommodation that allows emotional support animals. If these rights are already protected, the big question is what does this law really do?

Regardless of whether your community is pet-friendly or has a strict no-pet policy, make sure your online application has space to provide additional information (like about service animals or pets) and that you perform thorough screening of all your applicants. Just because an applicant doesn’t come with a furry friend in tow, doesn’t mean they’re a perfect fit for your community.

Becky 201509 Becky Bower is a writer for the ApplyConnect® Blog and the communications executive at ApplyConnect®, a consumer initiated tenant screening company.  She has also spent several years in compliance and auditing.  Becky holds a degree in English with a focus in creative writing from CSU Channel Islands and is a published writer.

2017 Rental Housing Legislative Changes

Written by Landlord Property Management Magazine on . Posted in Blog

By Becky Bower

legal-update

From new laws that will affect California’s tenant background check to Seattle, Washington’s “first come, first served” renter law, 2017 has brought an onslaught of new rental housing legislation. Here are some passed and pending bills you should look out for this year.

NATIONWIDE LEGISLATION

PENDING: HUD’s Smoke-Free Public Housing (view rule)

The department of Housing and Urban Development (HUD) has proposed a rule that requires each public housing authority (PHA) to implement a smoke-free policy. This smoke-free policy applies to all public housing living units, indoor common areas, PHA administrative buildings, and in outdoor areas extending up to 25 feet from both the public housing and office buildings. This rule is currently up for comment until January 19th, 2017. Once this rule is published with the Federal Register and the effective date is established, all PHAs must implement the smoke-free policy within 18 months.

The National Consumer Assistance Plan (read our full article)

Announced in September of 2016, the three major credit bureaus will be enacting the National Consumer Assistance Plan to new and existing public record data on July 1, 2017. Experian® anticipates that the new standards will likely affect about 96% of civil judgement data, making getting a tenant screening service that includes eviction data even more imperative.

CALIFORNIA

Landlord/Tenant Unlawful Detainer Proceedings (AB 2819)

There will be no public access to unlawful detainer (eviction) records, unless the plaintiff/landlord prevails within 60 days of filing. The previous law had the defendant/tenant required to prevail within 60 days to bar public access. This goes into effect, January 1, 2017.

Pesticide Application in Common Interest Developments (AB 2362)

Homeowner associations in common interest developments must now provide tenants advance written notice when over-the-counter pesticides are applied to separate interest dwellings or common areas. Notice must be provided at least 48 hours before application, however, if the pests pose a high and immediate threat, notification can be posted one hour before pesticides are applied.

Landlord/Tenant Bedbugs Disclosure (AB 551)

This amendment requires landlords to give information about bed bugs (as specified) to new tenants starting July 1, 2017 and for existing tenants starting January 1, 2018. Notice must also be given to tenants of units inspected by a pest control operator and provide the findings within 2 business days. This bill also prohibits landlords from showing, renting, or leasing a vacancy that the landlord knows has a bed bug infestation. By law, tenants must cooperate with bed bug inspections, permitting entry into the unit by the pest control operator.

Landlord/Tenant Commercial Leasing Disclosure (AB 2093)

Requires property owner(s) or lessor to state on every lease form on or after January 1, 2017 whether or not the premises have been inspected by a Certified Access Specialist (CASp). The landlord must provide tenants with a current disability access inspection certificate or report, or a copy of the CASp inspection report if the report indicates that they meet applicable disability standards. If the property does not have a disability access inspection certificate, then the lease form or rental agreement must state that, on the request of the tenant, a CASp inspection may be performed (as specified). Landlords are responsible for making repairs or modifications to correct violations of construction-related accessibility standards.

Amendments on Accessory (Second) Dwellings (AB 2299 and SB 1069)

Effective as of January 1, 2017, these two bills revise the zoning restrictions on second dwellings, allowing the creation of 2nd units in single-family and multifamily residential zones (with specified provisions regarding where the 2nd unit may be located, standards, etc.).  In addition to changing the term from “second unit” to “accessory dwelling units”, AB 2299, in particular, revises parking requirements for accessory dwellings. The previous law requires second units to not exceed one parking space per unit or bedroom, with additional authorization for more than one parking space. The amendment removes the need for additional authorization for accessory dwelling parking.

Junior Accessory Dwellings (AB 2406)

Local governments can now establish laws for the creation of junior accessory dwellings in single-family residential zones. Local governments are prohibited from requiring additional parking as a condition of granting a permit.

Removes Certain Disclosures for Transfer of Residential Property (AB 73)

This bill revises the requirements of certain disclosures that are to be made when transferring residential property. Now, the property owner, their agent, or the agent of the transferee of the property are no longer required to disclose the occurrence or manner of death of an occupant (as specified). The bill also no longer requires the disclosure that an occupant of the property was living with human immunodeficiency virus (HIV) or died from AIDS related complications.

Landscape Irrigation Equipment (AB 1928)

This bill requires new performance standards and labeling requirements for landscape irrigation equipment and would postpone the date by which the commission is to adopt the performance standards and labeling requirements to January 1, 2019, and would prohibit the sale or the offer for sale of that equipment manufactured on or after the effective date.

Water Conservation in Landscaping Act (AB 2515)

On or before January 1, 2020, and every 3 years thereafter, the Department of Water Resources are required to update the model water-efficient landscaping ordinance or find another means to improve water efficiency. This means landscaping requirements might change in the future, and continue to change every 3 years.

Becky 201509 Becky Bower is a writer for the ApplyConnect® Blog and the communications executive at ApplyConnect®, a consumer initiated tenant screening company.  She has also spent several years in compliance and auditing.  Becky holds a degree in English with a focus in creative writing from CSU Channel Islands and is a published writer.

What Are the Potential Benefits of Exchanging into a Delaware Statutory Trust Property?

Written by Landlord Property Management Magazine on . Posted in Blog

By Dwight Kay | www.kpi1031.com

dstproperty_1

There are a number of potential benefits of exchanging into a Delaware Statutory Trust (DST) 1031 property. It is important to note that these should be carefully weighed with the potential risks that we have outlined at the end of this article. You should also read the risk section of each DST 1031 property’s offering materials in detail prior to investing.

Eliminating the day-to-day headaches of property management
Many of our clients are at or near retirement, and they are tired of the hassles that real estate ownership and management often bring. They are tired of the tenants, toilets and trash and are wanting to move away from actively managing properties. The DST 1031 property provides a passive ownership structure, allowing them to enjoy retirement, grandkids, travel and leisure, as well as to focus on other things that they are more passionate about instead of property management headaches.

Tax deferral using the 1031 exchange
Many of our clients have wanted to sell their apartments, rentals and commercial properties for years but haven’t been able to find a property to exchange into and just can’t stomach the tax bill after adding up federal capital gains tax, state capital gains tax, depreciation recapture tax and the Medicare surtax. The DST 1031 property solution provides investors an ability to move from an active to a passive role of real estate ownership on a tax-deferred basis.

Increased cash flow potential
Many investors are receiving a lower amount of cash flow on their current properties than they could be, due to their properties having under-market rents, properties that have multiple vacancies and/or that are raw or vacant land sitting idle. DST 1031 exchange properties provide an opportunity for investors to potentially increase their cash flow on their real estate holdings via a tax deferred 1031 exchange.

Portfolio diversification by geography and property types
Often times, 1031 investors are selling a property that comprises a substantial amount of their net worth. They want to reduce their potential risk and instead of buying one property (such as another apartment building) or one NNN building (such as a Walgreens pharmacy or Taco Bell restaurant) they decide that investing into a diversified portfolio of DST 1031 properties with multiple locations, asset classes (property types) and tenants is a better fit for their goals and objectives.

This is similar to how investors tend to invest retirement funds in mutual funds and Exchange Traded Funds (ETFs), as opposed to placing their entire retirement savings into the stock of one particular company. However, it is important to note that there are no assurances that diversification will produce profits or guarantee against loss.

Long-term non-recourse financing locked and in place to satisfy debt replacement requirements of the 1031 exchange
One of the requirements for a 1031 exchange is to take on “equal or greater debt” in the replacement property to what you had in the relinquished property (the property you are selling). In today’s lending environment, it is often hard for investors to obtain non-recourse financing at an acceptable interest rate and terms. Due to the DST 1031 properties’ sponsors typically having strong lending relationships, they are able to secure non-recourse financing at some of the best terms available in the marketplace. The DST 1031 investors are the direct recipient of these financing terms that they would otherwise often not be able to obtain on their own.

Access to Institutional Grade Real Estate
DST 1031 properties provide access to large, institutional-grade real estate that is often otherwise outside of an individual investor’s price point. With the typical minimum investment of $100,000, investors are still able to purchase an ownership interest in large $20 million-plus apartment communities, $5 million-plus pharmacies or $15 million grocery stores, for example. This allows investors access to a level of real estate that they just would not have been able to exchange into before.

That being said, we also have had many clients with very large 1031 exchanges opt to invest in DST 1031 properties because they did not want to place “all their eggs into one basket” by purchasing one single, large investment property.

Unlocking trapped equity
For those investors that have a substantial amount of equity in raw or unimproved land (as well as investors with vacant properties that are not producing any cash flow), the DST 1031 property allows them the opportunity to sell, defer taxes via a 1031 exchange and unlock the trapped equity that they have in their properties. Now this trapped equity is free to produce for the investor potential cash flow on a monthly basis.

Ability to typically close on a DST 1031 property typically within three to five business days of completing and returning subscription documents
This is one of the main reasons why investors in their 45-day identification period “time crunch” often turn to DST properties. They are able to close quickly and complete their exchanges due to the properties being pre- packaged, as opposed to waiting 30, 60 or 90 days to purchase another outside property.

Increased tax efficiency due to depreciation deductions on replacement property
Investors that have owned their apartments and rental properties for longer than 27.5 years and commercial properties for longer than 39 years have fully depreciated the properties, with no more deductions to help shelter the rental income. By purchasing DST 1031 properties that have a greater amount of financing than their relinquished (sold) properties, those investors are creating for themselves a new basis to shelter rental income through. We encourage all investors to speak with their CPA and tax attorney regarding this prior to investing in DST 1031 properties for details regarding their particular situation.

Increased tax efficiency due to interest write-offs
For investors that have fully paid off their properties, the DST 1031 properties with financing in place provide for interest write-offs to help shelter potential cash flows. Many clients in today’s environment are looking for a way to increase tax efficiency due to the burdensome tax system in place in the United States. The DST 1031 can help to potentially solve some of these tax problems.

Dwight Kay

CEO and Founder

Dwight Kay is the Founder and CEO of Kay Properties and Investments, LLC (Kay Properties). Kay Properties is a provider of DST brokerage and advisory services headquartered in Los Angeles, CA with an office in New York, NY. Registered Representatives at Kay Properties and Investments specialize in helping 1031 exchange clients throughout the country purchase DST properties and are securities licensed in all 50 states, Washington D.C. and the U.S. Virgin Islands. Mr. Kay has personally been involved in over $200,000,000 of client purchases of DST properties and other securitized real estate products.

kpi-real-estate-investment-3d_smallDwight is a published author with multiple published white papers and articles on 1031 exchanges, Delaware Statutory Trust (DST) properties and real estate securities. He has been interviewed on local and nationally syndicated radio stations on the matters of 1031 exchanges and replacement properties. He also is the author of the published book “Delaware Statutory Trust (DST) Properties: An Introduction to DST Properties for 1031 Exchange Investors.”

Dwight began his career in commercial real estate working for a national commercial real estate brokerage firm focusing on multifamily and commercial real estate. Mr. Kay received his Bachelors in Business Administration from Point Loma Nazarene University in San Diego, California, and successfully obtained his Series 7, 22, and 63 securities licenses as well as a real estate broker’s license.

Risks & Disclosures

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please be aware that this material cannot and does not replace the Memorandum and is qualified in its entirety by the Memorandum.

This material is not intended as tax or legal advice so please do speak with your attorney and CPA prior to considering an investment.

This website contains information that has been obtained from sources believed to be reliable. However, Kay Properties and Investments, LLC, Colorado Financial Services Corporation and their representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment.

There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) and 1031 Exchange properties. These include, but are not limited to, tenant vacancies; declining market values; potential loss of entire investment principal; that past performance is not a guarantee of future results; that potential cash flow, potential returns, and potential appreciation are not guaranteed in any way; adverse tax consequences and that real estate is typically an illiquid investment.

Please read carefully the Memorandum and/or investment prospectus in its entirety before making an investment decision. Please pay careful attention to the “Risk” section of the PPM/Prospectus. This material is not intended as tax or legal advice so please do speak with your attorney and CPA prior to considering an investment.

IRC Section 1031, IRC Section 1033, and IRC Section 721 are complex tax codes, therefore, you should consult your tax and legal professional for details regarding your situation.

Securities offered through registered representatives of Colorado Financial Service Corporation, Member FINRA / SIPC. Kay Properties and Investments, LLC and Colorado Financial Service Corporation are separate entities. OSJ Address: 304 Inverness Way S, Ste 355, Centennial, Colorado. 303-962-7267.

Kay Properties & Investments, LLC, is registered to sell securities in all 50 states.

DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million dollars exclusive of primary residence) and accredited entities only (generally described as an entity owned entirely by accredited individuals and/or an entity with gross assets of greater than $5 million dollars). If you are unsure if you are an accredited investor and/or an accredited entity please verify with your CPA and Attorney prior to considering an investment. You may be required to verify your status as an accredited investor.

Prepare for Tax Season with These 4 Resources

Written by Landlord Property Management Magazine on . Posted in Blog

By Becky Bower | ApplyConnect.com

tax-planning

As the year comes to a close, take the time to prepare for tax season early. With just a little extra prep work, you’ll avoid a huge headache next year. Here are 4 tax resources to get you started on organizing your office, getting all the deductibles you can get, and achieving a stress free tax season.

  1. Organize Your Home Office in 4 Easy Steps

When it comes to taxes, before you can do anything, you need to be organized. In this article, we break down the organizational process into 4 easy steps. Your office never looked so clean. Read More!

  1. Use Apps to Deduct from 2016’s Business Tax Return

You want to get as many deductibles as you can get, but compiling the mileage, paperwork, and receipts behind those hefty tax deductibles can be stressful. By utilizing apps, you can cut down on the physical paperwork and access everything from your phone or laptop. Easy. Read More!

  1. Cash in on Tax Deductions for Your Rental Properties

When you have a rental property, utilizing every tax deduction you can is very important. Take advantage of our common deductible checklist and organizational list now. This can help you make sure no stone goes unturned. Read More!

  1. Tips to Having a Stress Free Tax-Season

There’s no denying that tax season can be pretty stressful. While utilizing handy apps and utilizing deductibles are certainly important, it’s also important to maintain good communication with your tenants during this time, and setting goals for 2017. Read More!

While tax season might be far from your mind as Thanksgiving comes close, by taking some time to start going through your documents and receipts, and utilizing our tax resources above, your workload next year won’t be as hefty. Once it’s all said and done, and you have that big tax refund check in hand, you’ll be happy you started your taxes early.

ABOUT 30% OF COMMERCIAL PROPERTIES NOT IN COMPLIANCE WITH S.F.’S WATER-EFFICIENCY STANDARDS

Written by Landlord Property Management Magazine on . Posted in Blog

Shared post by: Julie Littman, Bay Area, Bisnow

sprinkler-system

Property owners could soon be flushing money down the toilet if they don’t comply with San Francisco’s 2009 conservation ordinance requiring water-efficient fixtures. Violations could mean a fine of $48/month, reports the San Francisco Chronicle. Owners will also be on the hook for hearing costs to resolve the matter. To show compliance, owners must submit an affidavit to the city.

Effective Jan. 1, commercial toilets must have a maximum of 1.6 gallons of water per flush. Almost 30% of the 160,000 commercial toilets in San Francisco are not in compliance with a city law requiring water-efficient toilets and faucets by year’s end.

Urinals can use no more than one gallon of water per flush while showerheads can’t use more than 2.5 gallons per minute. Faucets must also use no more than 2.2 gallons per minute. About 86% of urinals and 20% of showerheads don’t meet this requirement.

To help property owners, the Public Utilities Commission has been handing out rebates of up to $125 for a tank toilet, up to $500 for a high-pressure commercial flushometer toilet, and up to $500 per urinal. The PUC is also giving out water-efficient showerheads and offers free installation at commercial properties for a 1.2-gallon basic toilet.

The San Francisco Public Utilities Commission’s Julie Ortiz told the Chronicle upgraded fixtures can use up to 50% less water and are one of the biggest ways for the city to lower its water usage. [SFC]

San Francisco Mandates Solar Roofs

Written by Landlord Property Management Magazine on . Posted in Blog

City aims to be powered by 100 percent renewables by 2025.

The San Francisco Board of Supervisors  has unanimously passed the Better Roofs regulation to “fight climate change and reduce reliance on fossil fuels.” The move requiring new buildings to go from solar-ready rooftops to operating solar systems represents a huge step toward its goal of powering the city to attain 100% renewable electricity by 2025.

The regulation means San Francisco builders of all commercial or residential structures with 10 or fewer stories must now include solar panels.

California’s energy standards mandate that 15% of the roofs atop new “small and midsized” structures, also 10 stories or less, be ready for solar.

In a press announcement, supervisor Scott Wiener has said this law provides a way to turn unused roof space into a partner of the city’s sustainable and renewable energy policies. “By increasing our use of solar power, San Francisco is once again leading the nation in the fight against climate change and the reduction of our reliance on fossil fuels. Activating underutilized roof space is a smart and efficient way to promote the use of solar energy and improve our environment. We need to continue to pursue aggressive renewable energy policies to ensure a sustainable future for our city and our region.”

Read a detailed report on this topic at treehugger.

Top Markets for Expected Rent Growth in 2017

Written by Landlord Property Management Magazine on . Posted in Blog

Shared Post from Multifamily Executive | By

rentgrowth2

California once again dominates the list of rent-growth leaders for the coming year, with more than half of the top markets, but it may come as a slight surprise to some.

Oakland tops the list, with San Francisco and San Jose still in the top 10. Oakland’s rent-growth pace has slowed significantly recently, and San Francisco and San Jose are both experiencing rent cuts. There’s been a lot of fear about oversupply in these markets, which could be contributing to the current situation. The Bay Area economy has experienced a notable decline recently, but its job-addition volumes are substantial.

“[Apartment operators] will pretty quickly realize that the [Bay Area] market hasn’t gone off the edge of the cliff, regaining some confidence on pricing power,” says Greg Willett of MPF Research.

The continued above-average growth in these California markets is good news for business, but it’s squeezing renters more than ever. A one-bedroom unit in San Francisco in October rented for $3,373, on average, which is slightly more than half the area median income monthly paycheck after taxes, according to real estate listing site Rent Jungle.

Las Vegas is the second rent-growth leader for next year, at 6.1%, just behind Oakland. The metro was hit hard by the recession but has experienced improved growth in the past 18 months that makes it a great market going forward. Seattle; Dallas; Nashville, Tenn.; and West Palm Beach, Fla., are the other markets defined as rent-growth leaders for the coming year.

Absent from 2016 are Portland, Ore.; Fort Worth, Texas; Atlanta; and Phoenix, which all are expected to come in just under the cutoff of 4%.

Forecast Rent Growth Leaders in 2017

Rank (MetroForecast Rent Growth)

Oakland                                                     1 (6.5%)

Las Vegas                                                  2 (6.1%)

San Francisco                                           3 (5.7%)

Sacramento                                               4 (5.6%)

Seattle                                                         5 (5.4%)

San Jose                                                     6 (4.9%)

Riverside – San Bernardino                      7 (4.5%)

Dallas                                                          8 (4.4%)

Nashville                                                    8 (4.4%)

West Palm Beach                                       8 (4.4%)

Los Angeles                                              11 (4.3%)

San Diego                                                  11 (4.3%)

Fort Lauderdale                                       13 (4.2%)

Kayla Devon

Kayla Devon is an associate editor for Hanley Wood’s residential construction group. She covers business, products, and technology for both Builder and Multifamily Executive magazines. Find her on Twitter: @KaylaDevon_HW