Rental. A Tenant Screening Necessity

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1 RentalOwner February 2018 Magazine 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 Inside this issue: Fair Housing Vacation Subleasing HR New Employment Law Update Tips To Get The Maximum Lifespan For Your Roof SDCAA 5675 Ruffin Road, Suite 310 San Diego, CA Rental Criteria A Tenant Screening Necessity Use an SDCAA member first! For a list of SDCAA supplier members turn to page 53.

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3 Contents page Cover photo: Mateusz Żogała Dreamstime.com Fair Housing for Yesterday, Today and Tomorrow Did you know that there are several exceptions when applying fair housing law to rental units? This article covers what fair housing is, who it protects and the exemptions on owner-occupied buildings with fourunits or less. Rental Criteria A Tenant Screening Necessity Best practices and tips for creating a rental criterion that balances risk and business necessity. Vacation Subleasing The author provides information on spotting a subletting tenant vs. a guest. page 21 Inside your association 25 Education Calendar 41 Honor Roll/Welcome New Members 51 Property Managers Directory 53 Supplier Quick list Directory 56 Advertiser Index HR New Employment Law Update for changes to employment law that you should be aware of for 2018, from asking for salary history to Marijuana in the workplace. 10 Tips To Get The Maximum Lifespan For Your Roof Increase the lifespan of your roof with these 10 tips. Columns 3 President s Message 4 Executive Director's Message 9 Local Legislative Update 13 State Legislative Update 17 RHC Legislative Update 43 SDCAA Travel Program Article Legend Coding: Owners Property Managers Executives Leasing Maintenance Suppliers

4 SDCAA Officers President Christian Davis, Pinnacle Property Management Services President Elect Scott Cook, CPM, Sperry Van Ness Asset Advisory Group Vice President Kendra Morris Bork, Cambridge Management Group, Inc. Secretary Lucinda Lilley, FBS Property, AMO Treasurer Nicole Lawhon, For Rent Media Solutions Legislative Steering Committee Chair John Modlin, Independent owner Immediate Past President Christine La Marca, The Kevane Company Inc. SDCAA Directors Carol Crossman, Independent Owner Melissa Deen, Sunrise Management Company AMO Robin Duma, HG Fenton Company Mark Feinberg, Heinz & Feinberg and Law Offices of Richard C. Alter Jay Lopeman, GM Multifamily Gail Miller, Lincoln Military Housing John Modlin, Independent Owner Rick Snyder, RA Snyder Athan Ranglas, R & V Management Corporation Abigail Rex, Capital Growth Properties, Inc. Kurt Sullivan, Douglas Allred Craige Walker, Independent Owner SDCAA Advisors Melissa De Marco, FBS Property, AMO Lucinda Lilley, CPM, FBS Property, AMO Linda Morris, ARM, Cambridge Management Group, Inc. Crystal Poggi, H. G. Fenton Company Robert Preciado, City Wide Protection Services Inc. Stacy Wells, R & V Management Honorary Life Advisor G. Wesley Harker RentalOwner Magazine Magazine Staff Publisher Alan Pentico, CAE, Executive Director Advertising Olivia Galvez, Director of Operations Design & Layout Marc Shanahan SDCAA Editorial Advisory Board Melissa Deen, Sunrise Management Company, AMO-Chair Melissa DeMarco, FBS Property, AMO-Vice Chair Susan Adams, Plumber Tom Kristy Blair, Chase Commercial Term Lending Chike Outlaw, Waste Management Tom Tamar, City Wide Protection Services Inc. Shelly Croft, F & F Management RentalOwner 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 SDCAA members only. The views expressed in these articles are the authors's and do not necessarily represent those of the SDCAA or SDMHC. All rights reserved. Materials may not be reproduced or translated without prior written permission by the publisher. For more information on the SDCAA or rental management information contact the SDCAA at or visit Advertisers - These firms are as anxious to please you as you are to patronize them. We do not guarantee or endorse the products or services of any of the advertisers, but we would like to assist both readers and advertisers in maintaining a continued vote of confidence and respect for one another. Information provided in the advertisements are the sole responsibility of the advertiser. For concerns please contact the advertiser directly. SDCAA Staff Alan Pentico, CAE Executive Director apentico@sdcaa.com Olivia Galvez Director of Business Operations/Operational Advice ogalvez@sdcaa.com Molly Kirkland Director of Public Affairs/Operational Advice mkirkland@sdcaa.com Mike Nagy Public Affairs Manager mnagy@sdcaa.com Ace Baker Membership Dev. Specialist abaker@sdcaa.com Kelly Puppione Education Manager kpuppione@sdcaa.com Our Address 5675 Ruffin Road, Suite 310, San Diego, CA SDCAA Office San Diego: Toll Free: Fax: sdcaa.com Kim Zebroski Membership Representative kzebroski@sdcaa.com Marlen Descargar Events/Admin Assistant mdescargar@sdcaa.com

Christian Davis Pinnacle Property Management Services 2018 SDCAA President In my January message, I focused on several efforts to repeal the Costa-Hawkins Rental Housing Act.

all housing types regardless of age, unfettered by state controls established under Costa-Hawkins.

5 Christian Davis Pinnacle Property Management Services 2018 SDCAA President In my January message, I focused on several efforts to repeal the Costa-Hawkins Rental Housing Act. Last year, Assembly member Richard Bloom introduced AB 1506, a bill that would repeal the Costa-Hawkins Rental Housing Act, allowing local governments free reign to impose rent control policies on all housing types regardless of age, unfettered by state controls established under Costa-Hawkins. Last April, Assembly Member Bloom decided to suspend the bill until further notice in part due to the SDCAA efforts. Bloom attempted to revive AB 1506 before the January 30 deadline. On January 11, the Assembly Committee on Housing and Community Development held a hearing on AB Fortunately, the bill failed to receive the minimum votes needed to pass to the Assembly Floor. A big thank you to everyone who responded to the SDCAA s legislative alert by contacting their elected representatives asking them to oppose AB You achieved a great victory, but our work is far from over. Last year, several tenants rights and labor organizations introduced a statewide ballot measure to repeal Costa-Hawkins. The groups now are trying to gather the required number of signatures to place the initiative on the state s November ballot. If they acquire the signatures necessary, we will have a huge fight on our hands a fight requiring lots of resources and volunteers. But, I have another deep concern there are still many people in the community, and in our industry, who do not know about Costa-Hawkins, and what its repeal would mean for all Californians. That s why we still need your help! We need your help to get the message out to SDCAA members and non-members, rental housing professionals, business leaders, and to colleagues and friends that rent control is not the answer the only solution is to increase California s supply of housing as soon as possible. We can no longer assume that people know or understand what Costa-Hawkins is, or assume they know there is a statewide effort to repeal Costa- Hawkins. We cannot take for granted that friends, colleagues, and peers are familiar with the issue. We must educate them and direct them to resources where they can learn about the state s housing affordability crisis, why Costa-Hawkins would protect their private property rights, and why rent control is not a solution to the housing supply crisis. Again, I ask for your help as much as you can offer. Please help the SDCAA be a stronger and louder voice on housing issues. Please contact the SDCAA or visit sdcca.com to see how you can help. February 2018 RentalOwner 3

Alan Pentico, CAE From the SDCAA Executive Director Brushing up on Knowledge As a membership-based, advocacy and education-driven industry organization, the SDCAA strives to provide members with the

6 Alan Pentico, CAE From the SDCAA Executive Director Brushing up on Knowledge As a membership-based, advocacy and education-driven industry organization, the SDCAA strives to provide members with the best and latest information about rental housing, provide ample opportunity to market your product or service to thousands of customers, and be a staunch advocate in local, state and federal rental housing issues. The SDCAA s success relies on the success of members, so it is our mission to provide members the necessary tools and resources to help members achieve success, and be a benchmark in the rental housing industry - at the same time, the SDCAA s success depends on the commitment, contribution, and input of its members. When the SDCAA was created in 1919, it was created in reaction to a policy that unfairly treated a class of property owners. Ninetynine years later, the SDCAA is one of the most prominent rental housing organizations in southern California because its members saw the benefit and value of belonging to such an organization. We hope members will continue to support the SDCAA and its future activities. Last month, SDCAA members responded to our legislative alert and sent hundreds of s to Assemblymembers asking them to oppose AB 1506 (Bloom), which would repeal the Costa-Hawkins 4 RentalOwner February 2018 Rental Housing Act of Those messages and the messages from others throughout the state led to AB 1506 dying in committee that day. It s a big victory, but we may face a bigger fight. If you don t know what Costa-Hawkins is and what its repeal would mean for housing in California, please visit SDCAA s Housing Supply Crisis webpage immediately. Nothing would be more terrible for CA families than rent control. That s why all members should visit sdcaa.com. Sign up for the legislative alerts, register for upcoming events like the recent forum on rent control on January 30 and other classes and events on our Calendar of Events webpage, and learn all about our other services and products. Remember exhibitors, you still have a chance to reserve your booth for the SDCAA s Education Conference & EXPO on April 17! NAA s Apartmentalize, formerly known as the National Education Conference and Exposition, will be here in San Diego, June Thousands of Rental Housing Industry Professionals will be attending this event don t miss out! Please contact the SDCAA if you need assistance. Maximize Your Membership with: Year Round Membership Luncheons and Breakfasts Networking Events Supplier Council Contact us Please contact us or visit our website if you need assistance. We always look forward to your feedback on SDCAA products, seminars, and services. The SDCAA is always looking for member volunteers, it s another great option to meet rental housing professionals and learn about what the SDCAA does. I encourage all of our members to join one of our volunteer committees and volunteer your time for our many events. Call us or visit our homepage at sdcaa.com if you have questions.

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Fair Housing for Yesterday, TODAYand Tomorrow Shaddi Dreamstime.com Mikael Damkier Dreamstime.com By: Elizabeth Castro, Administrative Specialist, Fair Housing Foundation Unlim3d Dreamstime.

The right to sit where we would like, the right to eat where we would like, the right to shop where we would like, the right to choose.

For some, the ideals from the Fair Housing Act have become passionately engrained and others still struggle to understand the need for the Act.

8 Fair Housing for Yesterday, TODAYand Tomorrow Shaddi Dreamstime.com Mikael Damkier Dreamstime.com By: Elizabeth Castro, Administrative Specialist, Fair Housing Foundation Unlim3d Dreamstime.com We saunter through our daily lives not really contemplating our everyday rights. The right to sit where we would like, the right to eat where we would like, the right to shop where we would like, the right to choose. With each passing day we have grown accustomed to these civil liberties. For some, the ideals from the Fair Housing Act have become passionately engrained and others still struggle to understand the need for the Act. The best way to ensure we move forward as a society is to 6 RentalOwner February 2018 educate ourselves and future generations of its necessity. The Fair Housing Act became part of federal legislation to protect individuals and families from experiencing discrimination in the sale, rental, financing and/ or advertising of housing. There had been a fair housing bill prior to 1968, but it did not receive enough votes to pass. Regrettably, it took the assassination of Dr. Martin Luther King, Jr. for the bill to be passed. President Lyndon B. Johnson was fundamental to the execution of the Act. On April 11, 1968, while signing the Fair Housing Act he stated, We have come some of the way, not near all of it. There is much yet to do. (1) Those words still ring true today, which is why we celebrate Fair Housing Month every April. Fair Housing Month reminds people of the importance of the Fair Housing Act (FHA) and inspires some to learn more. The FHA prohibits discrimination

orientation, and source of income. Even though the FHA covers most housing, there are some exceptions.

9 based on the following protected classes: race, color, national origin, religion, sex, disability and familial status. Additionally, there are state and regional protected classes, such as age, ancestry, arbitrary, gender identity/ expression, marital status, genetic information, sexual harassment, sexual orientation, and source of income. Even though the FHA covers most housing, there are some exceptions. The Act exempts owner-occupied buildings with no more than four units, singlefamily housing sold or rented without the use of a broker, and housing operated by organizations and private clubs that limit occupancy to members. During the sale or rental of housing, there cannot be discrimination based on the previously mentioned protected classes. These actions include: 1. Refusal to rent or sell housing. 2. Refusal to negotiate for housing. 3. Making housing unavailable. 4. Denying a dwelling. 5. Setting different terms, conditions or privileges for sale or rental of a dwelling. 6. Providing different housing services or facilities. 7. Falsely denying that housing is available for inspection, sale, or rental. 8. For profit, persuading owners to sell or rent (blockbusting) or: 9. Denying anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing. (2) Although the FHA is celebrating its 50th anniversary this year, situations caused by lack of training still occur. An untrained property management can create serious legal problems for a property owner. Fortunately, fair housing organizations are available to provide training, guidance, and information to property owners, managers, and realtors concerning the FHA. For example, the Fair Housing Foundation was contacted by an assistant manager who had been working at a property for a couple of months under a main manager who had been managing for many years. The assistant manager had noticed that the main manager was not forwarding applications from families to the management company for review. The Fair Housing Foundation made an inquiry and discovered Foundation Repair - Residential - Commercial - Field Evaluations - Deep Driven Steel Piles - Epoxy Crack Repair - Polyurethane Void Fill - Eco-Friendly - Financing Available - Lifetime Warranty Helical Pile Driven Pile Fair Housing Class February 27, 2018 Protect yourself from costly fair housing lawsuits. More information on our upcoming Fair Housing Class on page 27 or sdcaa.com Call The Experts! info@ramjackpacific.com LIC# February 2018 RentalOwner 7

After the company was notified of this practice, they were forced to involve the owner. The owner ensured that all of his employees received proper training with the help of Fair Housing Foundation.

10 that the main manager had been accepting all applications and application fees from everyone who submitted them. However, only the applicants with no children were being transferred to upper management for review. This is considered discrimination based on familial status. After the company was notified of this practice, they were forced to involve the owner. The owner ensured that all of his employees received proper training with the help of Fair Housing Foundation. Unfortunately, this story is not uncommon. Fortunately, situations like this can be prevented through education. To ensure that we all enjoy the liberties afforded by the FHA now and for generations to come, contact your local fair housing organization for training opportunities or anytime you have questions about the FHA. Sources: (1) index.php?pid=28799 (2) HUD?src=/program_offices/fair_ housing_equal_opp/fhlaws/yourrights The Fair Housing Foundation serves multiple cities in Los Angeles and Orange Counties. Education Conference & EXPO April 17, 2018 San Diego Convention Center Exhibit Hall B Register online at sdcaa.com 8 RentalOwner February 2018

Local Legislative SD Mayor Faulconer says housing and infrastructure will be key priorities in 2018 On January 11, San Diego Mayor Kevin Faulconer outlined his policy objectives for this year in his

11 Local Legislative SD Mayor Faulconer says housing and infrastructure will be key priorities in 2018 On January 11, San Diego Mayor Kevin Faulconer outlined his policy objectives for this year in his State of the City Address. In front of a large audience comprised of city residents, elected officials, military leaders, and dignitaries, he talked about his 2017 accomplishments and what he intends to achieve in the new year. To meet his 2018 goals, the mayor announced that his plans will use very different methods. Faulconer talked about the serious challenges the city faced in 2017 such as homelessness, the Hepatitis A outbreak, and the continuation of building city facilities and improving city services. But in a sincere yet direct tone, Mayor Faulconer believed the city would not have been successful in resolving the issues the city faced last year if it used a conventional, business as usual, approach. Faulconer stated that moving forward the city will need to implement new out of the box thinking to Update Kongomonkey Dreamstime.com focus on his 2018 objectives: Homelessness, Housing, Infrastructure, and Public Safety. A fact sheet released by the Mayor s office outlined in more detail how the city will address the key objectives. Improve police retention and recruitment New police contract making San Diego Police Department (SDPD) competitive with other law enforcement agencies. Launch a national recruitment campaign later this year in the hope of filling every one of the 200 vacant positions in the SDPD that is currently vacant by Putting San Diego Neighborhoods First Continuing infrastructure reform and increasing funding in neighborhoods. Doubling infrastructure funding from $179 million to $475 million. Accomplish the goal of repairing 1,000 miles of city street. The Mayor noted already more than 700 miles of city streets has been repaired since he initiated the five -year plan two and half years ago. February 2018 RentalOwner 9

12 Continue to add renewable energy to city buildings. City plans to install solar panels to thirteen more city buildings with nine buildings in progress, and upgrade 14,000 smart streetlight technology. The city will continue to build new libraries, parks, and fire stations in under-served communities. Homelessness Expansion of the Housing Our Heroes initiative with plans to house 3,000 veterans and civilians through partnerships with local landlords (The SDCAA plays a key role in this program connecting landlords with the city). San Diego s homelessness strategy called Connect, Support, House will focus on connecting, supporting and housing homeless individuals and families in the city. The city will be opening this year a New Housing Navigation Center. City will open new storage facility for homeless to store their property away from public spaces. Hiring more outreach ambassadors to connect homeless individuals to regional care system. Advocate for more bridge shelters and homeless services to help the homeless throughout the San Diego region. San Diego s Housing Affordability Crisis Based on the Mayor s Housing SD plan initiated in 2017, the city will continue to shorten the time it takes to review projects, reduce permitting fees, and authorize more money for affordable housing. For example, the city council adopted an Accessory Dwelling Unit ordinance to make it easier and cheaper to build renter-friendly companion units. Continue reforming the city s development process to encourage the production of more homes. Incentivize developers to build more housing that is affordable for low-income and middle-class San Diegans. Encourage more housing to be built in transit-friendly areas and near employment centers. Mayor Faulconer pledged his support for the ballot initiative to increase the city s Transient Occupancy Tax to help pay for San Diego Convention Expansion, homelessness, and street repair. A coalition of business groups, organized labor, and housing advocates is backing the ballot measure. Faulconer believes most of his objectives can be achieved How Does Your Laundry Operator Stack Up? Other Trusted since 1947 If you re unhappy with your current laundry room operations, consider switching to WASH. Apartment owners and managers have been trusting WASH with expert management of their laundry rooms since We offer top-of-the-line commercial washers and dryers, quick service, and a variety of convenient payment options for your residents, including mobile pay. Plus, our laundry room leases can be tailored to meet your revenue goals, with a variety of profit-sharing arrangements and flexible terms. Contact WASH for a free, no-obligation quote today! Toll Free RentalOwner February 2018

13 with voter approval of the ballot measure. Lawsuit could force San Diego to provide free trash pick-up to more city residents A group of homeowners living in San Diego s Hillcrest community filed a lawsuit against the City of San Diego in January for denying them free weekly trash pick-up given to many homeowners living in the City. In 1919, city residents voted to approve the People s Ordinance requiring the city to provide pick-up and disposal of trash and recyclables to most city residents free of charge provided they place their trash curbside on a city street in a container approved by the city. However, city residents that reside on private streets, in gated communities, or in condominium and apartment communities must pay for their trash pick-up. City officials contend the group of homeowners must pay for the trash service because they share a private driveway, and homeowners must drag their containers across a private right of way to place their trash containers on the curb. The Attorney representing the Hillcrest homeowners believes the city is being unjust in charging the homeowners for trash pickup arguing there shouldn t be liability or safety issues for trash trucks to go onto private property to pick up the containers, or because homeowners must use a private right of way to transport their trash containers to a public curb. The lawsuit states that the city has a history of shifting its policy declaring more developments ineligible to qualify for the free service. Most recently, a letter from the City Attorney in December declared the homeowners subdivision was a multifamily development and therefore ineligible to receive free trash pick-up. A court hearing on the lawsuit is scheduled for March 9. If the lawsuit is successful, the city s cost for providing the free trash pickup could increase an additional $50 million annually. The SDCAA believes the People s Ordinance should be repealed. The SDCAA believes that all city residents, multifamily properties, and businesses pay for trash pick or that all receive free trash pick-up. Addressing housing, homelessness will be front and center in 2018 This November, San Diego voters will be voting on a variety of state and local ballot measures concerning homelessness, housing, and infrastructure. The measures propose an increase in parcel taxes, Transient Occupancy Taxes (TOT), and the issuance of bonds to fund housing projects and homeless programs. Local affordable housing advocates are proposing a $900 million bond measure to provide funding to about 7,500 subsidized rental units in San Diego. If approved by voters, the bond measure would increase property taxes $19 a year per $100,000 of a property s assessed valuation, and most homeowners would see their property taxes increase an average of $72 per year. Advocates say it will be difficult for the bond measure to receive two-thirds approval by voters with tax groups and the Republican Party expected to oppose the measure. But, they add California s housing affordability crisis and San Diego s homelessness crisis will encourage more San Diegans to vote for the measure, and the bond measure will compliment another ballot measure expected to be go before voters that would fund San Diego Convention Center Expansion, homeless and housing programs, and improve infrastructure. Last month, a coalition comprised of business and hotel groups, organized labor, and homeless advocates introduced their ballot measure that would increase the City of San Diego TOT between 1.25 to 3.25 percent to pay for homeless and housing programs, street repair, and expansion of the San Diego Convention Center. The measure would raise about $6.4 billion over 42 years providing $2 billion for homeless services and building permanent housing, and $600 million would pay for street repair. The remainder of the revenues would be set aside for paying for Convention Center expansion. The TOT s percentage increase would depend on how close a hotel is to the Convention Center; hotels located further away would see a lower TOT increase compared to hotels that are closer to the convention center. Although the measure is expected to have greater support from a wide range of groups, the measure also faces challenges. The $900 February 2018 RentalOwner 11

14 affordable housing bond could draw support away from the measure. Councilmember David Alvarez in January introduced a City Charter Amendment that would dedicate more money generated from TOT to homeless programs for the next twenty years. Last month, the City Council s Rules Committee approved Alvarez s proposed amendment. The measure s success also could be jeopardized by pending and future legal challenges regarding a proposed $300 million hotel that would be located on the bayside of the Convention Center expansion, and an appeal filed by Attorney Cory Briggs challenging the environmental impacts of the Convention Center s proposed expansion. The SDCAA will provide more updates on these measures and Did you know... SDCAA has a bookstore through Amazon? on other similar measures in the future. The SDCAA Bookstore carries: Books on Property Management and Investing Smoke and Carbon Monoxide Detection Devices Files and Cabinets Property Advertising Signs and much more. Visit the SDCAA bookstore at Helping You Make the Most Important Financial Choice of your Next Decade You ve built your wealth over a life time. Select wise counsel to shepherd it. What is your property worth? Is your equity working hard or hardily working? If you have not seriously evaluated your equity position in the five years, then it is time to check it out. When do other types of income property makes sense? How can you ensure that you obtain best value with you equity? Use Terry s expertise to answer these important questions tmoore1031@gmail.com or SanDiegoApartmentBroker.com 12 RentalOwner February 2018

AB 1506 Costa Hawkins With over 800 people in attendance, both for and against AB 1506 (Bloom), the Assembly Housing Committee heard the bill that was shelved in 2017.

15 Happy New Year hope all SDCAA members had a joyous holiday and a happy new year. There is only one way to ring in the new year at the state capitol and that s by holding a hearing to repeal Costa-Hawkins. AB 1506 Costa Hawkins With over 800 people in attendance, both for and against AB 1506 (Bloom), the Assembly Housing Committee heard the bill that was shelved in As you recall, AB 1506 (Bloom) repeals Costa- Hawkins. Costa- Hawkins is California law that created a statewide formula for local governments to follow if they elect to implement rent control. Costa-Hawkins was a response to stringent rent control laws that had proven to hurt tenants, landlords, and local housing markets. California CAPITOL NEWS Aaron Read & Associates Costa-Hawkins does not prevent local governments from passing rent control laws. What it does is help ensure that the local housing market is not hampered by stringent controls. Most importantly, the state law exempts new construction built after 1995 from local rent control laws, exempts single-family homes from any form of rent control, and requires all local rent control laws to contain a vacancy decontrol provision to allow the rental price to increase after a tenant moves out. If Costa-Hawkins were to be repealed, cities and counties in California could adopt rent control measures without any limitations with devastating consequences. SDCAA, along with other apartment associations, vigorously opposed the bill and actively lobbied (and continue to lobby) Assembly Members asking them to oppose the measure. Prior to the hearing, which was originally scheduled for January 10th but was moved to the 11th due to the large crowd (there were no committee rooms available that day large enough to accommodate the large number of people planning to attend). The move created some issue for members of the committee who were schedule to leave on a legislative trip with the Speaker the evening of the 10th. With that Assembly Member Limon (scheduled for the trip) was replaced with Assembly Member Bonta for the hearing (a co-author of the bill not good for us). Assembly Member Kalra was permanently replaced with Assembly Member Gloria (good), however, he was also scheduled February 2018 RentalOwner 13

to go on the trip with the Speaker so he was replaced for the hearing by Assembly Member Stone (a supporter of the bill).

Assembly Member s Chiu, Stone and Bonta voted AYE. Assembly Members Steinorth and Choi voting NO. Assembly Members Wood and Chau were Not Voting.

1 billion surplus, mostly a result of $4.7 billion in additional revenue. Overall the 2018-19 budget is projected to have a total expenditure level of $131.7 billion with $135.

The Governor, who has always taken a more conservative approach to spending, is using much of this year s surplus to stash away billions of dollars in reserves both because of the recession that he

16 to go on the trip with the Speaker so he was replaced for the hearing by Assembly Member Stone (a supporter of the bill). It seemed the deck was stacked against us and we prepared for the hearing and geared-up for a floor fight. However, when the roll was called the bill, needing 4 votes to pass, only received 3. Assembly Member s Chiu, Stone and Bonta voted AYE. Assembly Members Steinorth and Choi voting NO. Assembly Members Wood and Chau were Not Voting. Thanks to all the members who voted no and were not voting. Budget It is time once again for the Governor to propose his annual budget which he unveiled today. The Department of Finance projects a $6.1 billion surplus, mostly a result of $4.7 billion in additional revenue. Overall the budget is projected to have a total expenditure level of $131.7 billion with $135.1 billion in total projected revenues. Combined with special fund and bond funds, total expenditures are projected to be $190.3 billion. The Governor, who has always taken a more conservative approach to spending, is using much of this year s surplus to stash away billions of dollars in reserves both because of the recession that he believes is looming and the prospect of the Republican Congress cutting social services in the wake of its vote for a tax cut last month that could swell the federal deficit by $1.4 trillion over a decade. The budget plan gives a $5 billion jolt to the state s rainy day fund, which means that the rainy day Aaron Read fund would hold 10 percent of California s general fund revenue. It is estimated that would give the state $13.5 billion to use in a fiscal emergency by June 30, Specific to Housing: California local governments have primary control over land use and housing-related decisions. Housing entitlements and permits are determined locality by locality, each with its own community needs and challenges. Throughout the development process, each local government may face pressures that discourage housing development, including community opposition, incentive to approve sales tax-generating development over residential development, and market conditions, such as high land and construction costs. These factors often result in policies that increase development costs, including permitting and impact fees, delays in permit approvals, and parking requirements. In recognition of California's pronounced housing shortage, in Aaron Read & Associates Terrance McHale Jennifer Tannehill Pat Moran 2016, the Administration proposed a "by-right" proposal (which SDCAA supported) in conjunction with state funding to streamline local housing approval and drive down per unit housing costs. This proposal was not adopted by the Legislature. In January 2017, the Administration put forward comprehensive policy principles to reduce local barriers, limit construction delays, lower perunit costs, provide production incentives, strengthen compliance with existing laws, and establish a permanent source of ongoing funding for affordable housing and related investments. Within this framework, the Administration and Legislature developed a package that included statutory changes to reduce per unit costs and increase production, a housing bond and a real estate transaction fee. The 15 bills signed into law hopefully will collectively shorten the housing development approval process, provide incentives to streamline 14 RentalOwner February 2018

17 development, and promote local accountability to adequately plan for needed housing. Also, a real estate transaction fee was established that will generate $258 million annually to invest in affordable housing production. Of these funds, 10 percent is dedicated to affordable homeownership and rental housing for agricultural workers and their families. The housing packing also places a $4 billion bond on the November 2018 ballot for voter approval which includes $3 billion in general obligation bonds for various housing programs and $1 billion for veterans housing. The state has continued to make a significant investment in affordable housing construction through various grant and loan programs, including the Affordable Housing and Sustainable Communities Program, No Place Like Home Program, and Veterans Housing and Homelessness Prevention Program. Beyond these legislative changes and new funding programs, the state has worked collaboratively across its housing agencies to improve outcomes for its existing programs. The Tax Credit Allocation Committee, which administers the Low Income Housing Tax Credit program, has made a number of regulatory changes in collaboration with the Administration to increase the utilization of this program. These efforts resulted in 20,847 units financed with federal tax credits in The California Housing Financing Agency has increased its multifamily lending activity each year since the Great Recession, providing $369 million in financing in to support 2,100 affordable housing units. The agency also issued $682 million in private activity bonds for affordable housing since 2015 and provided $4 billion to moderateincome families that do not qualify for the low-income programs through the state s First-Time Homebuyers Down payment Assistance Program. The Budget continues the Administration s commitment to improving existing programs and maximizing its investment in housing. To implement the significant changes included in the 2017 statewide housing legislative package, the Budget allocates $3 million General Fund to the Department of Housing and Community Development, in addition to resources from an estimated $258 million in real estate transaction fee revenue for housing programs and proceeds from the housing bond that will be available upon voter approval in the November 2018 election. Complete Electrical Service and Installation Apartment Property Specialists Experienced Professionals Competitive Prices Bonded & Insured Swift Response License #: C Be at the center of it all Register Now! APARTMENTALIZE Powered by NAA June 13-16, 2018 San Diego No job is too small... No problem is too large! To reach us please call: (Coastal) (Inland) Address: kennedyelectric@cox.net Web Address: Take advantage of our monthly lighting and boom truck service. February 2018 RentalOwner 15

Be at the center of it all New name. Sunny locale.

It s the same dynamic event, but with a new name that captures the energy and innovation of our industry.

18 Be at the center of it all New name. Sunny locale. The NAA Education Conference & Exposition has been renamed to Apartmentalize! It s the same dynamic event, but with a new name that captures the energy and innovation of our industry. Join us to Apartmentalize and immerse yourself in the very latest insights, strategies and trends. It s where bright ideas happen. Powerhouse speakers that will inspire Robust education for every level Networking with more than 9,500 industry players 500+ leading suppliers, solutions and services Register by February 2 and save $375. Bring your team for even bigger savings. APARTMENTALIZE 16 RentalOwner February 2018 Powered by June 13 16, 2018 San Diego

Rental Housing Coalition Local Legislative Update Temecula launches new mobile app for residents The City of Temecula announced that it launched a new app so city residents can learn more about city

19 Rental Housing Coalition Local Legislative Update Temecula launches new mobile app for residents The City of Temecula announced that it launched a new app so city residents can learn more about city activities and services. The app will help people view event calendars, information on parks and facilities, announcements of upcoming city hearings, and other city services. Residents will be able to watch Temecula TV on their mobile device. Residents with the app now can report non-emergencies like pot holes to city officials. Residents can report the issue, add its location with photographs to the city 24 hours a day. Once the issue is reported, the resident can track the status of the issue. Palm Springs City Council expected to approve special election on vacation rentals The future of Palm Springs short-term vacation rental ordinance will likely be decided by voters later this year. The group, Palm Springs Neighbors for Neighborhoods, in November submitted signatures for a petition that would limit the number of short-term vacation rentals operating in the city. In January, Palm Springs verified that the group had the number of signatures necessary requiring the Palm Springs City Council to act on the group s petition. Palm Springs Neighbors for Welcomia Dreamstime.com Neighborhoods argued the City s current ordinance adopted last year doesn t do enough to control short-term vacation rentals operating in residential neighborhoods. They argue their petition would still allow vacation rentals to operate, but with limitations. The petition would prohibit vacation rentals in residential neighborhoods (R1 Zones) to rent for less than 28 days; however, owners can rent out their house or a room for as long as they want if they are present. Other groups representing property owners opposed to the petition contend the measure would essentially ban most vacation rentals from operating, discourage tourists from visiting February 2018 RentalOwner 17

the city and negatively impact the city s economy. They add the current ordinance should be given more time to see how the rules will impact vacation rentals.

petition in a June special election. Reactions to the petition have been mixed.

Roberts and Geoff Kors, responsible to drafting the current city ordinance, have not supported the petition.

20 the city and negatively impact the city s economy. They add the current ordinance should be given more time to see how the rules will impact vacation rentals. Now in the hands of the city council, it has the choice to vote on the petition, declare a special election for the petition in June, or ask city staff to analyze the petition s impacts. Although this article was written before the City Council was scheduled to vote on the petition on January 24, it is likely council will opt to have residents vote on the petition in a June special election. Reactions to the petition have been mixed. existing ordinance was effective and would like to give it more time to address concerns before more rules are adopted. Council members J.R. Roberts and Geoff Kors, responsible to drafting the current city ordinance, have not supported the petition. Mayor Jim Moon has been supportive of the group moving forward with its petition. The SDCAA will provide an update in March. Council members Christy Holstege and Lisa Middleton, who were elected in November, said during their campaigns they thought the Our Services: Asphalt Repair, Patching & Crack Seal Asphalt Removal & Replacement All types of Slurry Seals, Pavement Coatings & Striping ADA Compliance Serving all of Southern California since 1981! amspaving.com License # RentalOwner February 2018

Member/FREE with PRE-Registration, NON-Member/$25 PRE-REGISTRATION RECOMMENDED Day at a Glance:

Eberhart Presents: Key Lessons from Doug Lipp s BEST SELLING book Disney U!

Drawing ~ SDCAA Booth 12:00 pm Maintenance Mania Competition 12:40 pm Active Shooter Response

Training 2:30 pm Fair Housing in Spanish 2:45 pm Ask an Attorney Panel 3:50 pm Grand Prize

21 Exhibit Hall B ~ 8:00 a.m. - 4:00 p.m. Member/FREE with PRE-Registration, NON-Member/$25 PRE-REGISTRATION RECOMMENDED Day at a Glance: 8:00 am New Tax Reform Laws 9:00 am Opening Ribbon Cutting Ceremony 10:00 am Keynote- Kim Eberhart Presents: Key Lessons from Doug Lipp s BEST SELLING book Disney U! (Individual Seminar Pre-Registration Required) 11:00 am Legislative Update 11:50 am Grand Prize Drawing ~ SDCAA Booth 12:00 pm Maintenance Mania Competition 12:40 pm Active Shooter Response Training (Individual Seminar Pre-Registration Required) 1:30 pm Self Defense Demonstration and Training 2:30 pm Fair Housing in Spanish 2:45 pm Ask an Attorney Panel 3:50 pm Grand Prize Drawing ~ SDCAA Booth 4:00 pm Exhibit Hall Closes Get your Magical costumes ready and win prizes! Are you a princess? A villian? A loveable character? Get Ready! DEMOS Running ALL DAY ON THE HOUR! Learn Toilet Repair, Lock Replacement, Social Media Management and MANY MORE! February 2018 RentalOwner 19

22 20 RentalOwner February 2018

Mateusz Żogała Dreamstime.com Rental Criteria A Tenant Screening Necessity There has never been a more hostile legal and regulatory environment for landlords and tenant screening companies.

23 Mateusz Żogała Dreamstime.com Rental Criteria A Tenant Screening Necessity There has never been a more hostile legal and regulatory environment for landlords and tenant screening companies. It is more important than ever, therefore, that we know what we are doing - that we take the proverbial high-road in our effort to strike a balance between carefully underwriting prospective tenants and minimizing the risk of legal and regulatory problems. The first step is to take the time necessary to develop, refine and formalize your rental criteria. It s important to take the steps necessary to develop your criteria and understand the benefits associated with a consistent application of those criteria as part of the tenant screening process. A critical point in developing criteria is deciding what is acceptable in terms of credit, rental history, criminal and eviction history, length of employment and income - within the context of what is "reportable". It s important to be aware that there are reporting limits imposed by the Fair Credit Reporting Act (FCRA). State law may further limit what is reported. California and Washington, for example, limit reporting of criminal convictions to those where the date of final disposition (release from prison, parole, etc.) is no more than seven years old. The first step is to take the time necessary to develop, refine and formalize your rental criteria. Few landlords intend to discriminate. It is not only illegal, it is foolish. It is the unintentional February 2018 RentalOwner 21

or so-called disparate impact form of discrimination that poses the greatest risk.

But a blanket policy regarding criminal convictions - one that ignores the nature of the offense and when it occurred - can also form the basis of a disparate impact discrimination claim.

It might be argued, for example, that use of credit scores and eviction history have a disparate impact on some groups. Ready to sell?

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But, there are a couple tests you might apply to minimize risk while providing you with the information you truly need to make good decisions. The first is the business necessity test.

The relationship between credit scores and underwriting prospective tenants is less direct - since the consideration of rent payment history is typically not part of popular credit scoring algorithms.

24 or so-called disparate impact form of discrimination that poses the greatest risk. Denying tenancy based solely on records of arrest is perhaps the best example of a practice that is neutral on its face - but that has a wellestablished and disproportionate impact on certain groups. But a blanket policy regarding criminal convictions - one that ignores the nature of the offense and when it occurred - can also form the basis of a disparate impact discrimination claim. It is likely that disparate impact claims will target additional practices going forward. It might be argued, for example, that use of credit scores and eviction history have a disparate impact on some groups. Ready to sell? Exchange your multifamily property s equity for Triple NeT leased CommerCial real estate. Keep the income and tax benefits flowing with today s best long-term, high return, low risk, maintenance free real estate investment. Visit rpnnn.com for details. get started Now! (760) lessig@rpadvisors.com 22 RentalOwner February 2018 LaRRy Essig Senior Vice President There is no way to eliminate risk entirely in this business. But, there are a couple tests you might apply to minimize risk while providing you with the information you truly need to make good decisions. The first is the business necessity test. Simply ask yourself, is there a relatively direct relationship between the practice and running a successful business? A good example of such a practice is the use of credit scores by lenders. The relationship between credit scores and underwriting prospective tenants is less direct - since the consideration of rent payment history is typically not part of popular credit scoring algorithms. Certainly, there are those with poor credit that have excellent rent payment history. People often pay rent first. Ultimately, while the use of credit scores poses some risk - use of credit detail - such as rental related debt (collections) and eviction judgments (reflected on the credit report) are clearly applicable. Apply a simple reasonableness test. Is it reasonable, for example, to deny tenancy to someone who committed a violent felony 25 years ago - who was released from prison 10 years ago and has been clean ever since - and who is otherwise well qualified? Probably not. If that person is protected in some way - you are vulnerable. So... what exactly is the rental criteria high-road? How do I configure my criteria to balance risk and business necessity? Rental Criteria Best Practices 1 Credit - focus on the detail versus a score. Consider

denying for rental related debt (collections), eviction judgments and open bankruptcies. Approve or approve conditionally (with an increased deposit or co-signer) those not otherwise disqualified.

Limit consideration to convictions for serious offenses (with the possible exception of serious sex offenses) the date of final disposition of which, antedate the tenant screening report by no more

25 denying for rental related debt (collections), eviction judgments and open bankruptcies. Approve or approve conditionally (with an increased deposit or co-signer) those not otherwise disqualified. 2 Criminal records - consider recently developed HUD Guidelines. Limit consideration to convictions for serious offenses (with the possible exception of serious sex offenses) the date of final disposition of which, antedate the tenant screening report by no more than seven years - whether or not state law limits reporting in that way. If someone has been clean for seven years, the likelihood they will reoffend is typically low. 3 Eviction records - eviction records are more complicated. The vast majority of filings are dismissed - not because they are without merit - but because the resident paid or moved out - and because there is very little likelihood of recovery. Still, denying tenancy based on filings feels a bit like denying tenancy based on arrest records. Consider asking your tenant screening service to use filings to conduct rental verifications - as an alternative to basing your decision on the filing itself. That way there is no question as to what occurred and little or no risk of a disparate impact claim. application or screening fee - whether required by state law or not. Attach your criteria to the application or post it on your web site - ahead of your online application. Why? It is the right thing to do. Those who will not qualify will appreciate knowing up front - before parting with yet another application fee - a real problem in the low-income housing space. Taking the time to think it through - taking the rental criteria high-road will serve you very, very well - improve decision making and minimize the risk of expensive and time consuming legal problems. BILL HOWE Plumbing, Heating & Air Conditioning, Inc. Bill Howe Plumbing We Know Howe! Our Kitchen & Tub Drains Start at Only Commercial & Residential Jetter Service Sewer Camera Service Repairs Re-Pipes New Installation Toilets Faucets Water Heaters Slab Leaks $77.00 Sewer Pipe Lining Pipe & Leak Location Back Flow Certification Bill Howe 4 Employment & income verifications - the very definition of business necessity, since it is hard to pay rent if you have no income. 5FINALLY - share your criteria up front, before taking an February 2018 RentalOwner 23

26 resident screening SDCAA s Screening Product Designed Specifically For YOU! Whether you have one rental or 5, We ve got you covered! InfoLink incorporates accurate and reliable resident screening with innovative technology that assists you in making the best possible leasing decision. Credit Checks can be Sumbitted by: Phone Online Fax Don t want to submit the reports yourself? That s ok, you can send your prospective residents a link to an online application! Screening Starts at 8 Resident Screening solutions that work for your business An SDCAA product powered by MOCO olink.com c r edit p r o fi l e O F AC s earch e v iction/ civil records search n ational c r iminal database s earch s ocial security v e r i fication r e n tal verification employment v e r i fication

27 SDCAA Education 2018 Events February & Maintenance Series - Courses begin Feb. 6 For the first time ever, the SDCAA, with help from HD Supply, is holding a series of Maintenance classes. Courses begin February 6 with the first being Electrical and Plumbing Fundamentals. Time: 8:30am- 3:30pm Location: SDCAA Fair Housing: 2-part series Feb. 27 This course will help you understand how your actions can result in a fair housing problem. From the property managers to the maintenance technicians, this course will provide coverage of federal and state fair housing law from a risk management perspective. Time: 9am-4pm Location: SDCAA March 03/21,03/22,03/27,03/28, & 03/29: CAM- Certified Apartment Manager April 04/03/2018- Maintenance 101: Kitchen Appliance Repair + Refrigerator! 04/17/2018: 44th Annual Rental Housing Education Conference & EXPO IROC Fair Housing May 5/1-5/4 & 5/21-5/25 CAMT: Certified Apartment Maintenance Technician 05/08/2018: Lead Renovation, Repair & Painting Certification (RRP) IROC- Notices Class Legend Coding: Owners Property Managers Executives Leasing Maintenance calendar Suppliers June 06/05/2018- Maintenance 101: Make Ready & Safety on Site 06/13/ /16/2018: NAA s Apartmentalize Conference 06/11/ /13/2018: CAPS-Certified Apartment Portfolio Supervisor 06/11/ /13/2018 NALP- National Apartment Leasing Professional Fair Housing 2-Part Series July IROC- Ask an Attorney August 08/07/2018: Maintenance 101: Heating- Gas & Electric & Water Heater- Gas & Electric 08/28/2018: Lead Renovation, Repair & Painting Certification (RRP) Fair Housing 2-Part Series September 09/27/2018: SDCAA s Annual Charity Golf Classic October 10/09/2018- Air Conditioning Mechanical & Electrical November SDCAA s 25th Annual Mark of Excellence Awards IROC- Legislative Update December SDCAA s Annual Open House Many more to be announced! * Event date and time are subject to change. February 2018 RentalOwner 25

28 2018 Maintenance Mania FREE BOOTCAMP - February 28, 2018 HD Supply Facilities Maintenance- 101 Riverview Pkwy Ste. 101, Santee, CA Includes Lunch, Preview of Event & Games Deadline to Register for the Bootcamp: Feb. 23, 2018 Step I: Register & pay for the April 17th Competition FIRST Step II: You are now automatically registered for the FREE February 28th Bootcamp - If you are unable to attend, contact SDCAA Date: April 17, 2018 Location: 2018 Education Conference & EXPOConvention Center - Hall B Time: Registration10:30 a.m. Contest 11:30 p.m. - 2:00 p.m. Web Discount Price: $30 Members $40 Non-Members Registration Deadlines Deadline to register for the BOOTCAMP: February 23, 2018 Deadline to register for the COMPETITION: April 10, 2018 The sooner you register and enter the competition, the sooner you ll receive the wheels to begin work on your own race car! Registration Limit Until February 16th only 15 per company. Forward additional names to events@sdcaa.com for placement on waitlist. Entrance fee is due upon registration. AFTER February 16th - no limitations per company. First come-first served. Upon completion of initial registrations, entrants will be sent a detailed packet for completion and submission. PRIZES! 1st, 2nd and 3rd place winners will receive prizes from SDCAA. The 1st place OVERALL WINNER may qualify as the OVERALL Regional Winner and be eligible to attend and compete in the National Maintenance Mania Competition at the NAA Education Conference and EXPO in San Diego in June 2018! (All expenses paid) Faxed Registration Price: $40 Member $50 Non-member Need More Information? Visit and find the Maintenance Mania information on the 2018 Education Conference & EXPO page or contact events@sdcaa.com events@sdcaa.com Phone Fax RentalOwner February 2018

Power, Protection, Peace on Mind E d u c a t i o n Fair Housing Two-Part Series Gain knowledge about: Whether you re a property manager, real estate agent, property appraiser, lender or an

The history and intent of Federal, State and Local Fair Housing Laws Avoiding illegal discrimination in selling, leasing, marketing and advertising your properties Complying with the unique

29 Power, Protection, Peace on Mind E d u c a t i o n Fair Housing Two-Part Series Gain knowledge about: Whether you re a property manager, real estate agent, property appraiser, lender or an independent rental owner, this seminar will help you understand Fair Housing laws, what they mean and how they apply to your company and properties. The history and intent of Federal, State and Local Fair Housing Laws Avoiding illegal discrimination in selling, leasing, marketing and advertising your properties Complying with the unique provisions for the disabled, protected classes, senior housing and families with children Reasonable Modifications Accommodations (Including Companion Animals) Cutting edge issues Hoarding Date: February 27, 2018 Location: SDCAA Office 5675 Ruffin Road, Ste. 310 San Diego, CA Time: Part 1: 9:00am - 12:00pm Part 2: 1:00pm-4:00pm Full Series Cost: $70 Member $100 Non-Member Per Session Cost: $45 Member $65 Non-Member This seminar is taught by Continuing Education Credits: Each part is eligible for 3 continuing education Name: Register online at or fax form below to Company/Member #: Card #: Address: Payment type: AMEX Discover MC Visa Name on Card: City: State: Zip: Exp Mo: Exp Yr: Sec Code: Signature: *Cancellation Policy: Absolutely no refunds will be issued. If for any reason you cannot attend the course, you or your company may send someone in your place. If you choose to drop the class and cannot replace your seat, you may receive a credit towards another Fair Housing course. education@sdcaa.com Phone Fax February 2018 RentalOwner 27

30 Registration Form Courses may be taken as part of the series or as stand-alone classes Maintenance Series Registration Register me for the full series of maintenance courses (5% savings). - $ Individual Course Registration Electrical Fundamentals/Plumbing Fundamentals Date: Time: 8:30-3:30 Cost: $49.99 Kitchen Appliance repair/ Refrigerator Repair Date: Time: 8:30-3:30 Cost: $49.99 Make Ready Maintenance/Safety on Site Date: Time: 8:30-3:30 Cost: $49.99 Heating-Gas & Electric/ Water Heater-Gas & Electric Date: Time: 8:30-3:30 Cost: $49.99 Air Conditioning Mechanical & Electrical Date: Time: 8:30-3:30 Cost: $49.99 *Times for modules may decrease due to lunch times. **Class dates are subject to change. Location: SDCAA 5675 Ruffin Rd. Ste 310 San Diego, CA Lunch Break: 12:30 pm -1:30 pm *Lunch is not provided Café/Deli onsite Instructor: Bob Howes HD Supply Certified Instructor Registrant Information Name: Member No.: Company Name: Attendee Address: City: St.: Zip: Phone Number: Fax: Attendee Payment Information I am paying For the Series Per Course Payment by check, make payable to SDCAA (5675 Ruffin Road, Suite 310, San Diego, CA 92123) Payment by credit card American Express Discover Master Card Visa Credit Card No.: Name on Card: Security Code: Expiration Date: Billing Zip Code: Cancellation Policy and Re-scheduling: Cancellations only accepted in writing. Series: Cancellations received 72 hours prior to the first course will result in a refund of the series price minus a $10 cancellation fee. Cancellations received 72 hours prior to subsequent courses will result in a refund of series price minus a $10 cancellation fee, and fee for courses attended. Cancellations received within 72 hours to any course will result in a refund of series price minus a $10 cancellation fee, materials cost (if received), and fee for courses attended, and courses not cancelled in advance. NO EXCEPTIONS! Individual courses: All cancellations received within 72 hours of each course and all no shows are responsible for payment of the course fees. This registration form is legally binding when signed below by the student and accepted by SDCAA. Signature Date / / 28 RentalOwner February 2018

31 Registration Type Register me for the full CAM series of required courses. Industry Essentials March 21, :00am-9:30am Marketing March 21, :30am-5:00pm Resident Experience March 22, :00am-10:00am Property Maintenance March 22, :00am-5:00pm Risk Management March 27, :00am-12:00pm Legal March 27, :00pm-5:00pm Human Resources March 28, :00am-5:00pm Financial Management March 29, 2018 *Times for modules may decrease due to lunch times. **Class dates are subject to change. Registrant Information Registration Form 8:00am-5:00pm Name: Member No.: Company Name: Attendee Address: City: St.: Fax: Zip: Phone Number: Attendee Payment Information I am paying For the Series Payment Plan Per Course Payment by check, make payable to SDCAA (5675 Ruffin Road, Suite 310, San Diego, CA 92123) Payment by credit card American Express Discover Master Card Visa Credit Card No.: Security Code: Name on Credit Card: Expiration Date: Cancellation Policy and Re-scheduling: Cancellations only accepted in writing. Series: Cancellations received 72 hours prior to the first course will result in a refund of the series price minus a $75 cancellation fee and materials cost (if received). Cancellations received 72 hours prior to subsequent courses will result in a refund of series price minus a $75 cancellation fee, materials cost (if received), and fee for courses attended. Cancellations received within 72 hours to any course will result in a refund of series price minus a $75 cancellation fee, materials cost (if received), and fee for courses attended, and courses not cancelled in advance. NO EXCEPTIONS! Individual courses: All cancellations received within 72 hours of each course and all no shows are responsible for payment of the course fees. Re-scheduling courses: Students need to re-register in writing for any courses they were unable to attend. This registration form is legally binding when signed below by the student and accepted by SDCAA. Signature Date / / Location: SDCAA 5675 Ruffin Rd. Ste 310 San Diego, CA Lunch Break: 12:00 pm -1:00 pm *Lunch is not provided Cost: CAM Series Discount: (Includes CAM book and two-part exam) $815 Members/ $950 Non-Members $315 due upon registration, balance due before attendance of first course. Individual Courses: (Materials Included) Industry Essentials $50 Member / $75 Non-Member Financial Management $165 Member / $195 Non-Member Marketing $130 Member / $160 Non-Member Property Maintenance $120Member / $150 Non-Member Legal $110 Member / $140Non-Member Risk Management $100 Member / $130 Non-Member Human Resources $105 Member / $135 Non-Member Resident Experience $50 Member / $75 Non-Member Courses may be taken as part of the series or as stand-alone classes Confirmation for your enrollment will be ed with instructions to complete your candidacy declaration on the NAA website. Please note your candidacy period begins when you complete the NAA enrollment form. February 2018 RentalOwner 29

32 Vacation Subleasing By: Jamie Sternberg, Esq. and Taylor Baumann, Esq., Kimball, Tirey & St. John LLP Landlords in desirable tourist destinations benefit from the income opportunities of shortterm rentals. Companies like Airbnb.com, HomeAway.com, CouchSurfing.com and VRBO offer the convenience of booking and reviewing vacation homes to tourists, and listing, marketing and securing electronic payment to landlords with a variety of other features. Vacation rentals can also offer longer-term tenants the opportunity to turn a quick profit by subleasing their unit during tourist season, leading to potential conflict with their landlords. WHAT IS SUBLEASING? A tenant subleases when they temporarily lease the entire premises to another party, or transfer or share a portion of the leased premises with another party. California allows tenants to sublease, unless the tenant s lease agreement prohibits or limits subleasing. Subtenants are bound by the original lease, and tenants cannot transfer rights to the subtenant not found in the lease agreement. If either the tenant or the subtenant violates the lease, and the landlord terminates the rental agreement, tenancy ends for both. Because the sublease involves three parties (the landlord, tenant, and subtenant), and the original lease controls the rights and obligations in the sublease, Worawee Meepian Dreamstime.com subleases require care when drafting. An attorney can assist in drafting the sublease to avoid conflicts between the parties and the lease. THE ONLINE VACATION RENTAL INDUSTRY The internet hosts a spectrum of vacation rental websites: Airbnb (Airbnb.com): Offers a range of options, including room rentals. HomeAway (HomeAway.com/ VRBO.com/VacationRentals.com) and Tripadvisor (FlipKey.com/ VacationHomeRentals.com): Offer full unit and home rentals. Couchsurfing (Couchsurfing. com): Caters to travelers seeking free accommodations and the opportunity to stay with a local. 30 RentalOwner February 2018

Georgerudy Dreamstime.com Craigslist: Has categories for sublets/temporary and vacation rentals. It is extremely common for tenants to sublease their units in violation of their lease.

Effective September 1, 2015, it requires vacation rental hosting platforms to provide the following warning to people listing short term rental vacation properties: If you are a tenant who is listing

33 Georgerudy Dreamstime.com Craigslist: Has categories for sublets/temporary and vacation rentals. It is extremely common for tenants to sublease their units in violation of their lease. In response, the California legislature passed SB 761 which created new Business & Professions Code Effective September 1, 2015, it requires vacation rental hosting platforms to provide the following warning to people listing short term rental vacation properties: If you are a tenant who is listing a room, home, condominium, or apartment, please refer to your rental contract or lease, or contact your landlord, prior to listing the property to determine whether your lease or contract contains restrictions that would limit your ability to list your room, home, condominium, or apartment. Listing your room, home condominium or apartment may be a violation of your lease or contract, and could result in legal action against you by your landlord, including possible eviction. However, because of the shortterm nature of vacation rentals, tenants may ignore the warning, believing they can avoid the scrutiny of their landlord and turn a quick profit. PROBLEMS WITH SUBLEASING Subleasing poses several problems for landlords: Ineffective Screening: Subleasing tenants rarely share the landlord s level of diligence in screening applicants. One bad subtenant can create havoc in a residential community, and vacation rental subleasing only increases the likelihood of hosting the one bad visitor. Short-term/vacation mindset: Subtenants who aren t properly screened and are in the community for a short period have little incentive to maintain the landlord s property and act respectfully toward other members of the community impacting the landlord s reputation. Vacation tenants want to party and have fun, which can be disruptive to neighbors. Vacation tenants are often paying top dollar, which may cause them to feel a sense of entitlement, even if they are acting disruptively. Longer term tenants have greater incentive to act with care toward Payphoto Dreamstime.com neighbors. Homeowners Association Violations: Many homeowners associations prohibit short term rentals, but tenants may not know or care about the prohibition. Homeowners associations also impose regulations on behavior within the community. Because landlords ultimately bear the costs and penalties of non-compliance, tenants who sublease may not police their subtenants. Demographic Challenges: Websites like Couchsurfing.com market to a youthful international audience. The habits of these vacationers may not suit a community of long-term tenants. Bedbugs: The increase in traffic to the rental property also increases the potential for bed bug infestation. Extermination is costly, and often requires multiple treatments. Tenants frequently dispute causing the infestation and rarely agree to cover the costs, often lacking the means to pay for treatment. Default: Tenants who rely on income from subleasing to pay their rent, may pose a greater risk February 2018 RentalOwner 31

of default. Seasonal fluctuations in tourism create inconsistencies in payment and rental rates.

Local Laws May Restrict Subleasing: Short term rentals (generally 30 days or less) may violate local laws. Some jurisdictions prohibit short term rentals (e.g. San Louis Obispo and Santa Monica).

g. San Francisco and San Diego), impose minimum stays (e.g. the San Diego Municipal Code 32 RentalOwner February 2018 requires a minimum of seven nights for condominiums in some areas), require insurance (e.

34 of default. Seasonal fluctuations in tourism create inconsistencies in payment and rental rates. A holdover subtenant could ultimately break the tenant s financial stability, and require landlord intervention to evict both the tenant and the subtenant. Local Laws May Restrict Subleasing: Short term rentals (generally 30 days or less) may violate local laws. Some jurisdictions prohibit short term rentals (e.g. San Louis Obispo and Santa Monica). Other jurisdictions regulate short term rentals. Regulations may restrict short term rentals to certain areas of the city (e.g. Los Angeles), require registration (e.g. San Francisco), collection of transient occupancy taxes (e.g. San Francisco and San Diego), impose minimum stays (e.g. the San Diego Municipal Code 32 RentalOwner February 2018 requires a minimum of seven nights for condominiums in some areas), require insurance (e.g. San Francisco), require posting fire safety information in the unit (e.g. San Francisco), or impose other requirements or restrictions. Tenants who do short term vacation rentals in violation of their lease may also violate local laws. Insurance: Insurance policies (landlord, tenant or subtenant) may or may not provide coverage when a tenant subleases, depending on the terms of the policy, and whether subleasing of the property for short term rentals may trigger a homeowner policy coverage exclusion. CURBING VACATION RENTAL SUBLEASING Vladans Dreamstime.com While many residential lease agreements prohibit subleasing, tenants often try to avoid enforcement. Because of the short term nature of the sublease, tenants may claim the subtenants were merely their friends or family members. Even if the landlord serves a Three-day Notice to Perform Covenant or Quit on a tenant who subleases, the tenant could remove the subtenants within the three day period, while intending to sublease in the future. A landlord could ultimately evict the tenant for multiple violations, but this would require significant evidence gathering and patience. Landlords seeking to avoid the issues with vacation rental subleasing should prohibit assignment and subleasing in their lease agreements, and also prohibit advertisement of the lease premises for assignment of sublease. Proving illegal advertisement is often easier than proving illegal subleasing. Landlords may consider using the following provision in their lease, modifying it to match the terminology used in their lease agreement: NO ASSIGNMENT, SUBLETTING AND TRANSFER BY RESIDENT. Resident s interest in the unit and this Lease/Rental Agreement

Any assignment, subletting or transfer (whether by voluntary act, operation of law, or otherwise), will be void, and a violation of this Lease/Rental Agreement.

35 may not be assigned, sublet or otherwise transferred. Resident may not advertise the unit (or any portion of it) on HomeAway, VRBO, Airbnb, FlipKey, Couchsurfing, Craigslist, or any other advertisement or listing service. Any assignment, subletting or transfer (whether by voluntary act, operation of law, or otherwise), will be void, and a violation of this Lease/Rental Agreement. SPOTTING A SUBLETTING TENANT Lease provisions alone will not curtail illegal subleasing. Landlords seeking to reduce illegal subleasing in their communities should stay vigilant for the following signs: A repeat incidence of new faces coming and going from the leased premises during vacation season. Vacationers often come in groups, families or couples, as opposed to individual friends that may merely visit the tenant. Vacationers are on vacation look for weekday late-night socializing and day-time occupancy, rental cars and taxis, and unknown occupants frequenting the unit. Regularly review popular vacation rental websites for listings and advertisements of the property. Tenants may not post the property address to avoid their landlord s detection, but may post photos or provide a description indicating the location. Keep printed or digital records of any illegal listings, and include the date on the record. Evidence of repeat violations will assist in enforcement action. CONCLUSION Vacation rentals benefit the vacationing consumer by offering a unique experience they could not find at a hotel or resort and often at a lower nightly fare. Likewise, property owners and the community alike benefit from the additional income tourists bring to the community; tourists that otherwise may not have visited the destination. However, tenants who sublease can create problems for their landlord and the surrounding community. Landlords should include provisions in their leases to prohibit assignment, subleasing and advertising for assignment and Iakov Filimonov Dreamstime.com subleasing. Landlords should also monitor who occupies their units in vacation destinations. Kimball, Tirey & St. John LLP specializes in business and real estate law, landlord/tenant, and collections with offices throughout California. This article is informational only and should not be used as legal advice. If you have any questions regarding this article, please call (619) February 2018 RentalOwner 33

36 REALLY HAPPY WITH THEIR PROPERTY MANAGEMENT. Truth be told, property management is the last thing on their minds. Not because they re dogs. But because their really great owners rented a home managed by Harland Property Management. Harland s experts take care of everything quickly, with years of experience and powerful technology too. Thanks to Harland, these pups owners spend practically zero time hassling with home maintenance issues, and more time coddling the pups as a real home should be. GET REAL. GET HARLAND. harlandpropertymanagement.com info@harlandpm.com California Broker License # RentalOwner February 2018

37 IROC members attending the first class of 2017 For more information on our suppliers please visit the directory section of sdcaa.com under the Resources Tab (For all members Section) February 2018 RentalOwner 35

New Employment Law Updates for 2018 By San Diego Employers Association and Wilson Turner Kosmo, LLP San Diego Employers Association recently hosted their 38th Annual Employment Law Update, at which

38 New Employment Law Updates for 2018 By San Diego Employers Association and Wilson Turner Kosmo, LLP San Diego Employers Association recently hosted their 38th Annual Employment Law Update, at which three top attorneys reviewed a variety of new laws affecting employers, which went into effect on January 1st, Below is an overview of the new laws employers should be aware of. 1. CHANGE YOUR EMPLOYMENT APPLICATION BAN THE BOX As of January 1st, 2018, employers 36 RentalOwner February 2018 are prohibited from asking job applicants about their criminal records. The law also prohibits employers from asking similar questions on job applications. Employers can consider applicants criminal record only after making a conditional job offer. Under the law, an employer that refuses to hire an applicant due to his or her conviction history, will be required to conduct an individualized assessment of whether the applicant s conviction history has a direct and adverse relationship with the specific duties of the job that justifies denying the applicant the position. Employers that decline to hire an applicant with a criminal history will be required to provide written notice to the employee identifying the disqualifying conviction. However, if an

employer makes a final decision to deny an application solely or in part because of the applicant s conviction history, the employer Zerbor Dreamstime.

39 employer makes a final decision to deny an application solely or in part because of the applicant s conviction history, the employer Zerbor Dreamstime.com would be required to notify the applicant in writing of the final denial or disqualification. The employer will also be required to notify the applicant of any existing procedure the employer has for the applicant to challenge the decision or request reconsideration and of the applicant s right to file a complaint with the California Department of Fair Employment and Housing. ACTION NEEDED: Update applications to remove inquiries related to conviction history Have a written policy on the use of criminal background checks of applicants and current employees Train managers and supervisors and anyone else involved in the hiring process to avoid inquiring about any conviction history until after a conditional offer of employment has been extended. 2. CHANGE YOUR INTERVIEW SCRIPTS SALARY HISTORY INQUIRIES PROHIBITED Assembly Bill 168 prohibits an employer from asking for a job applicant s salary history information. The new law also prohibits consideration of salary history as a factor in making a hiring decision (even if volunteered by the applicant). Despite the law, employers may consider an applicant s prior salary information in determining salary for that applicant if the applicant voluntarily discloses the information. The law requires an employer, upon reasonable request, to provide a pay scale for a position to an applicant. The new law follows on the heels of AB-1676, which amended the California Fair Pay Act to provide that prior salary cannot, by itself, be a bona fide factor other than sex justifying a pay disparity between employees of different genders. ACTION NEEDED: Update applications, interview templates and other forms to remove inquired related to salary history Train managers and supervisors and anyone else involved in the hiring process to avoid inquiring about an applicant s salary history Develop a salary range for every job posting to be provided to the applicants upon request 3. CHANGE IN PARENTAL LEAVE FOR MEDIUM SIZED EMPLOYERS Senate Bill 63 requires small employers to provide unpaid parental leave for the purpose bonding with a new child. The law applies to employers with employees in a 75-mile radius, imposing a new leave law requirement on employers that were previously exempt from the California Family Rights Act (which applies to businesses with 50 or more workers). Employees are eligible for leave provided that they have worked for the employer for at least 12 months and have worked at least 1,250 hours in the past 12 months for the employer. Where both parents work for the same company, the employer would be able to require the parents to take no more than a combined 12-week leave. Employers are required to continue to pay their regular share of healthcare premiums while employees are on parental leave. Under certain circumstances, employers may be able to recover the premiums when the parentemployee does not return to work following the leave. ACTION NEEDED: Employers with between 20 and 49 employees should update leave policies to include a description of parental leave including the February 2018 RentalOwner 37

to provide a judicial warrant. The law does not prohibit inviting immigration officers into nonpublic areas, where no employees are present, in order to verify the existence of a warrant.

40 right to take 12 workweeks of job-protected, unpaid parental leave to bond with a new child, assuming employees meet eligibility criteria. 4.CHANGE IN ICE COOPERATION Assembly Bill 450 prohibits employers from providing voluntary consent to an immigration enforcement agent to enter nonpublic areas of a place of labor unless the agent was to provide a judicial warrant. The law does not prohibit inviting immigration officers into nonpublic areas, where no employees are present, in order to verify the existence of a warrant. Except as required by federal law, the law will also prohibit an employer from providing voluntary consent to an immigration enforcement agent to access, review, or obtain the employer s employee records without a subpoena or court order. This prohibition would not apply to I-9 Employment Eligibility Verification forms and other documents for which a notice of inspection has been provided to the employer. The law also requires employers provide a notice to each current employee of any inspections of I-9 Employment Eligibility Verification forms or other employment records conducted by an immigration agency within 72 hours of receiving notice of the inspection. The law grants the state labor commissioner or the attorney general the exclusive authority to enforce these provisions. The law prescribes penalties for failure to satisfy the prohibitions described above of $2,000 $5,000 for a first violation and $5,000 $10,000 for each subsequent violation. 5.SEXUAL HARASSMENT PREVENTION TRAINING ADDITION AND CHANGE YOUR REQUIRED POSTINGS Senate Bill 396 expands the requirement that employers provide sexual harassment training to supervisors. Current law requires employers with 50 or more employees to provide sexual harassment and abusive conduct prevention training every two years, or within six months of an individual s assumption of supervisory duties. This bill requires covered employers to include training on harassment based on gender identity, gender expression, and sexual orientation. This law also amends section that requires all employers to post DFEH s poster regarding transgender rights in a prominent and accessible location in the workplace. ACTION NEEDED: Update your training and postings 6.NEW LIABILITY CHANGE FOR GENERAL CONSTRUCTION CONTRACTORS & SUBCONTRACTORS Assembly Bill 1701 holds construction contractors liable for the wage and hour violations of their subcontractors. As a result, a direct contractor making 38 RentalOwner February 2018

or taking a contract (entered into on or after January 1, 2018) in California for the erection, construction, alteration, or repair of a building, structure, or other private work will be liable for

The law gives contractors the right to demand inspection of a subcontractor s payroll data in order to ensure compliance with wage and hour obligations.

41 or taking a contract (entered into on or after January 1, 2018) in California for the erection, construction, alteration, or repair of a building, structure, or other private work will be liable for any debt owed to a wage claimant incurred by a subcontractor at any tier acting under the contractor. The law gives contractors the right to demand inspection of a subcontractor s payroll data in order to ensure compliance with wage and hour obligations. The contractor s liability will extend only to any unpaid wage and fringe or other benefit payments or contributions; including interest owed, but would not extend to penalties or liquidated damages. Either the state labor commissioner or a wage claimant may bring a civil action against a direct contractor to collect wages owed. 7.CHANGE IN LABOR COMMISSIONER S POWERS Senate Bill 306 authorizes the state labor department to commence an investigation of an employer, with or without a complaint being filed, when specified retaliation or discrimination is suspected during the course of a wage claim or other specified investigation being conducted by the Labor Commissioner. Previously, the agency could take action only upon receipt of an employee complaint. The law authorizes the labor commissioner, upon finding reasonable cause to believe that any person has engaged in or is engaging in a violation, to petition a superior court for injunctive relief. If an employer discharges or imposes adverse action on an employee for claiming that the employer retaliated because the employee asserted his or her rights, the law would require courts to order appropriate injunctive relief on a showing that reasonable cause exists to believe a violation has occurred. The injunctive relief remains in force until the agency completes its review or issues a citation. The injunctive relief would not prohibit the employer from disciplining or discharging the employee for conduct that is unrelated to the claim for retaliation. The labor commissioner would be vested with the authority to issue monetary and other relief, including an order to reinstate the employee and pay back wages. 8. CHANGE IN CALIFORNIA S MINIMUM WAGE As of January 1, 2018 the minimum wage for employers with 26 or more employees increased to $11.00 per hour and the salary Continued on Page 45 > > > February 2018 RentalOwner 39

42 40 RentalOwner February 2018

1992 Jewel Foundation, Inc. 1994 Alice Kammerman 1996 Ashcraft Investment Co., Inc. 1997 Cable, Pipe & Leak Detection, Inc.

43 Celebrating an Anniversary this Month 10+ years of membership in SDCAA Kay Mark, Inc Don Urena 1980 David Stanley 1982 ACI Apartments Office 1995 Cox Communications-San Diego 1986 Michael Keller 1988 Biggins Property Management 1989 R & V Management 1980 Cort Furniture Rental 1992 Jewel Foundation, Inc Alice Kammerman 1996 Ashcraft Investment Co., Inc Cable, Pipe & Leak Detection, Inc Christina Starr 2012 David and Kathleen Wageman 1988 Debbie Spineto & Holly Henderson 2000 Dominic LaRussa 1984 Dunn-Edwards Corporation 2000 Gerald Morris 1976 Glenn Mitchel Realtors 2015 H.G. Fenton Company 2000 Harold West 1996 Heartland Associates Inc James A. Burkhardt 1969 Janet Griffin 1974 John Colclough 1989 John Tyndall 1972 Lauren Peterson 1990 Marie DeSanti 1977 Mary Anne Stevens 1999 Michael and Sandy Posner 1989 Michael Hinners 1979 Millard Schewe III 1995 Narragansett Plaza 1994 Orchard Beach Properties 1990 Quate Properties LLC 1977 Ralph Fox 1987 Rose Emry 1975 Shannon Cutsinger 1979 Steven R. Kellman 1983 Terry G. Anderson 2000 Thomas & Marilyn Tindel 1978 Tom Ranz 1983 Tompkins Enterprises 1987 West Star Properties 2017 Westbrook Apartments Fairfield Residential 2000 Wexford Enterprises, Inc William Vail 1999 Yardi Systems 2000 All Valley Washer Service 2001 Christina Boller 2001 Mark Tarpin 2001 Pro-Tech Painting Company 1993 Robert Vinck and Mary Ann Gleason-Vinck 2001 B.A.G. Properties 2002 Behrens Investments, LLC 2002 Greg J. Gallagher 2002 John Goodman 2002 Vincent B. Ryan 2002 Brian Ferguson 2003 Debra A. Markey 2003 Hilary Bilodeau, Owner 2003 Pepperhill Apartments 2003 Robert Ruane & Joe Rood 2003 George Phillips Sr Ray Adams 2004 Rey and Debra Yturralde 2004 Robert Schneeloch 2004 Roberto Cavallaro 2004 Vera L Halbach 2004 Gary Mellom 2005 Moco Inc OliverMcMillan Foster LLC 2005 Tom Bobczynski Capella at Rancho Del Oro 2007 Juan Betancort 2007 Sea West Inc CG Harmon Investments, LLC 2008 Ogden Holding Co. L. P Viktoriia Yatskina Dreamstime SDCAA members Owners Gaucin Brett Gobar Cazador Management LLC David Bylund George/Janice Nochta Jerpseth Rentals Livia Nelson Peter Orth Watson Hervey Trust Suppliers D'Egido Licari Townsend & Shaw Real Property Advisors SVN Vanguard Members February 2018 RentalOwner 41

connected to energy-efficiency We offer energy-efficiency rebates and incentives for improvements made to multifamily dwellings with two or more units, as well as to mobile home parks.

44 connected to energy-efficiency We offer energy-efficiency rebates and incentives for improvements made to multifamily dwellings with two or more units, as well as to mobile home parks. With these solutions, you can save energy and money now and in the long-term, as well as create a more comfortable home environment for your tenants. Learn more at sdge.com/multifamily or call San Diego Gas & Electric Company. All copyright and trademark rights reserved RentalOwner February 2018

Italian Riviera & Tuscany Tall Ship Adventure-Member Tour - July 2018 www.stewarttours.

Siena, Italy Ultraone Dreamstime Stomboli Volcano In July 2018, members are invited to join a grand adventure aboard the largest full rigged tall-ship built

Come experience one of the most stunning coastlines in the world, the Italian Riviera, all beneath acres of white billowing sails on a sailing adventure you

We ll spend 5 nights in historic Siena and use this captivating walled city as our home away from home as we explore the stunning family vineyards, the

In Siena, our hotel, once an Italian Palazzo, has sweeping views over the Tuscan countryside and of one the most incredible gardens on the walls of the city.

439-foot Tall Ship Royal Clipper, the largest 5-masted square rigger in the world.

45 Italian Riviera & Tuscany Tall Ship Adventure-Member Tour - July Tall Ship Adventure On the Italian Riviera & Tuscany Traveling Around The World Together, Come Along! Siena, Italy Ultraone Dreamstime Stomboli Volcano In July 2018, members are invited to join a grand adventure aboard the largest full rigged tall-ship built in more than 100 years. Come experience one of the most stunning coastlines in the world, the Italian Riviera, all beneath acres of white billowing sails on a sailing adventure you will never forget. We ll start this journey in the heart of beautiful Tuscany. We ll spend 5 nights in historic Siena and use this captivating walled city as our home away from home as we explore the stunning family vineyards, the famous Clay Hills, the ancient monasteries and even visit magnificent Florence. In Siena, our hotel, once an Italian Palazzo, has sweeping views over the Tuscan countryside and of one the most incredible gardens on the walls of the city. Marco Pitacco Dreamstime Florence, Italy Stevanzz Dreamstime Tetiana Zbrodko Dreamstime As in centuries past, we ll venture to the coast to board the 439-foot Tall Ship Royal Clipper, the largest 5-masted square rigger in the world. The luxurious lounges, nautical staterooms and gleaming teak decks all set the scene for a wonderful adventure to follow. Over 7 nights aboard this one-of-a-kind sailing ship, we will explore the historic ports that dot the Italian Riviera including Sicily. We will visit the Pontine Islands, Sorrento, Amalfi, Lipari, Taormina and even a sail past the active Stromboli Volcano. Anchored in fairytale harbors like traders and explorers from the past, this experience will not be forgotten. If that were not enough, we have included ALL touring both before the cruise in Tuscany and also in every stop during our time on Royal Clipper. February 2018 RentalOwner 43

Serving All Of San Diego County EXPERT Refinishing of Porcelain and Fiberglass Surfaces 619-265-9200 858-642-9200 California State Contractors License #748915 SDCAA member since 1977 North County

46 Serving All Of San Diego County EXPERT Refinishing of Porcelain and Fiberglass Surfaces California State Contractors License # SDCAA member since 1977 North County Bathtub Refinishers Expert porcelain and fiberglass refinishing Repairs of chip and cracks or completely refinish Weak bottoms Bathtub Liners Designed to fit over your existing tub. Commercial and Residential Will not disturb plumbing, walls or floor. Will not chip, dent, crack or peel. Installed in just two hours for same day use. Porcelain Sinks Porcelain Bathtubs Wall Sinks Bath Bowls Kitchen Sinks Kitchen Counter Tops 44 RentalOwner February 2018 All of our Services: Fiberglass Bathtubs Fiberglass Showers Pedestal Sinks Vanity Counter Tops Tile Surrounds Wall Surrounds Crack & Chip Repair Plumbers Cutouts Terrazzo Pans Complete Support & Cutouts

Continued from Page 39 New Employment Law Updates for 2018 threshold for exemptions purposes is now $45,760 annually. The minimum wage for employers with 25 or fewer employees increased to $10.

ACTION NEEDED: Ensure all employees are making the appropriate minimum wage Ensure all exempt employees are making at least $45,760 (employers with 26+ employees) or $43,680 (employers with 25 or

47 Continued from Page 39 New Employment Law Updates for 2018 threshold for exemptions purposes is now $45,760 annually. The minimum wage for employers with 25 or fewer employees increased to $10.50 per hours and the salary threshold for exemption for those employers is $43,680 annually. ACTION NEEDED: Ensure all employees are making the appropriate minimum wage Ensure all exempt employees are making at least $45,760 (employers with 26+ employees) or $43,680 (employers with 25 or fewer employees) 9. CHANGE IN MARIJUANA LAWS While marijuana possession has been legalized under California law since early 2017, January begins dispensary sales to recreational users. Despite this change to state law, marijuana remains illegal under Federal law. In California, each employer is allowed to create and enforce a Drug Free Workplace program. Impairment due to marijuana, like any other substance, need not be allowed in California. Drug screening, both for preemployment purposes and observed impairment screening, remains a bona fide process to use for potential new hires and current employees demonstrating impairment while working. SB 65 now extends alcohol consumption and open container laws to Prop 64 as well. Driving while high will be treated the same as, or similarly to, driving under the influence of alcohol. About SDEA San Diego Employers Association (SDEA) is an HR consulting and professional development training organization serving primarily small to mid-sized San Diego-based companies. SDEA offers a variety of HR and professional development classes to keep companies up-to-date on changing employment laws. To view the full list of classes, visit sdeahr.org. To learn about SDEA s membership benefits, info@sdeahr.org or call About Wilson Turner Kosmo Wilson Turner Kosmo is the largest certified women-owned law firm in San Diego, and one of the largest in California. Founded in 1991, Wilson Turner Kosmo represents the litigation and counseling needs of companies on a local, statewide and national level. To learn more, visit wilsonturnerkosmo.com. An SDCAA product powered by MOCO SDCAA s Screening Product Designed Specifically For YOU! Screening starts at $15.81 Resident Screening solutions that work for your business Whether you have one rental or 5, We ve got you covered! InfoLink incorporates accurate and reliable resident screening with innovative technology that assists you in making the best possible leasing decision. Credit Checks can be Sumbitted by: Phone Online Fax Don t want to submit the reports yourself? That s ok, you can send your prospective residents a link to an online application! credit profile OFAC search national criminal eviction/ civil records search national criminal database search social security verification rental verification employment verification February 2018 RentalOwner 45

YOUR TRUSTED SOURCE FOR WINDOWS & DOORS INSTANT REBATE $25 PER WINDOW Tuscany or Style Line only with 5

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48 YOUR TRUSTED SOURCE FOR WINDOWS & DOORS INSTANT REBATE $25 PER WINDOW Tuscany or Style Line only with 5 window minimum 6 MONTHS SAME AS CASH ON APPROVED CREDIT Valid for Milgard products only. Call for details, restrictions apply. Not valid with any other offer. Offers expire 3/31/ Morena Blvd San Diego, CA Mon-Fri 8am-5pm Yarrow Dr Carlsbad, CA Mon-Fri 8am-5pm & Sat 8am-4pm family owned & operated since 1993 newmanwindows.com VIP Customer Service Honest value FREE in-home estimate Convenient scheduling Professional installation Lic # RentalOwner February 2018

Subscription RentalOwner Magazine 2017 Make informed decisions about your rental property A must for all owners and managers of rental property!

Each issue of RentalOwner includes: Local, State and National Updates Legal Question and Answer Column Industry Insights and Management Advice Cost Saving Tips Information on Industry Classes,

com Your property not receiving RentalOwner Magazine? Not an SDCAA member, but want to receive RentalOwner Magazine?

49 Subscription RentalOwner Magazine 2017 Make informed decisions about your rental property A must for all owners and managers of rental property! Whether you own one better informed decisions regarding your rental investment. With RentalOwner you get the latest news and trends that are critical to managing your rental property(ies). Each issue of RentalOwner includes: Local, State and National Updates Legal Question and Answer Column Industry Insights and Management Advice Cost Saving Tips Information on Industry Classes, Seminars and Events Twice Yearly Vacancy & Rental Rate Survey (Fall & Spring) Subscribe Today! RentalOwner Magazine Fax to or to ogalvez@sdcaa.com Your property not receiving RentalOwner Magazine? Not an SDCAA member, but want to receive RentalOwner Magazine? Complete the form below to begin receiving your 12 issues of RentalOwner Sign me up to receive 12-issues of RentalOwner Magazine*. Name: Address: SDCAA Member: Yes City: State: Zip: If yes member number: Telephone: SDCAA will verify membership Payment options: Visa MasterCard AMEX Discover Name on the Card: Credit Card Number: Subscription Rates: Member $30 Subscription $ 45/year. Save $15/year Exp. Date: / Sec. Code: (3 or 4 digit number) Signature: *Please note subscription begins once payment has been received ogalvez@sdcaa.com February 2018 RentalOwner 47

10 Tips Katarzyna Bialasiewicz Dreamstime.

Here at Gold Stars Roofing we believe that paying attention to the signs of a deteriorating roof can keep your buildings healthy as well as save you money.

1 Keep the rain gutters clean Clean rain gutters are an essential part to keeping your roof healthy and getting the maximum lifespan out of your 48 RentalOwner February 2018 gutters and roofing

50 10 Tips Katarzyna Bialasiewicz Dreamstime.com to get the Maximum lifespan for your roof By: Jeff Rodgers, GSR-Roofing A roof is an essential part to a building and if taken care of properly a roof can live a long and healthy life. Here at Gold Stars Roofing we believe that paying attention to the signs of a deteriorating roof can keep your buildings healthy as well as save you money. Check out the 10 tips below to find out what to look out for on your buildings. 1 Keep the rain gutters clean Clean rain gutters are an essential part to keeping your roof healthy and getting the maximum lifespan out of your 48 RentalOwner February 2018 gutters and roofing material. This is because clogged gutters can stop a clean water flow creating leaks and unnecessary water damage to the outer perimeter of your roof causing wood rot to the facia boards. To ensure your rain gutters stay clean have them inspected 1-2 times a year. 2 Replace the ridge The Ridge or the top point of your building can decay 5 years before your roof is actually ready to be replaced. Replacing The Ridge, can add years onto your roof. One can recognize when looking that this repair should be made if the edges of the Ridge are curled up or if there is visible cracking and thinning of granules allowing water to enter the attic space. 3 Check for discoloration Discoloration can be one of the biggest identifying factors in knowing that you need to call a contractor and replace certain sections of your roof. Discoloration Worrachet Sansing Dreamstime.com can be caused by exposure to sun over the years. The main color to look out for is black because this is a sign that the asphalt under your roofing material is beginning to become exposed due to the loss of granules. 4 Look for cracks in the roofing cement at the base of your flashings Especially on low-pitched roofs, this can become a problem as your roof ages. These cracks in the cement can be seen near the roofs flashings and jacks or any other roof penetration that requires roofing cement.

Hellen Sergeyeva Dreamstime.com 5 Keep your roof clean Keeping your roof clean is a major key in ensuring your roof will have proper water flow.

Another way to keep your roof clean is by trimming the trees around your building and making sure that they are not hanging over the roof. This precaution will help keep your roof debris free.

Direct sun deteriorates roofing material and over time the granule releases off Zxcynosure Dreamstime.com Dmitry Kalinovsky Dreamstime.com the roof through your rain gutter.

7 Keep an eye out for Separation Separation occurs at seems and material transition points on the roof. When separation occurs gaps become visible and can create blisters.

If you notice this, call a contract as soon as possible. Denys Kovtun Dreamstime.

51 Hellen Sergeyeva Dreamstime.com 5 Keep your roof clean Keeping your roof clean is a major key in ensuring your roof will have proper water flow. Keeping the roof free of debris will ensure that rain gutters will not clog and turn into a larger problem possibly creating unnecessary cost. Another way to keep your roof clean is by trimming the trees around your building and making sure that they are not hanging over the roof. This precaution will help keep your roof debris free. 6 Look for loose Granule The best place to look for loose Granule is on the ground near your drain pipe. Direct sun deteriorates roofing material and over time the granule releases off Zxcynosure Dreamstime.com Dmitry Kalinovsky Dreamstime.com the roof through your rain gutter. This is a sign that your whole roof or certain sections need to be replaced. On flat roofs you can apply a roof coating and this will help extend the life of your roof. 7 Keep an eye out for Separation Separation occurs at seems and material transition points on the roof. When separation occurs gaps become visible and can create blisters. A blister in when water gets under your roofing membrane and turns into steam the heating of the sun causes the expansion creating a bubble and long snake like blisters in your roofing membrane. If you notice this, call a contract as soon as possible. Denys Kovtun Dreamstime.com 8 Replace Roof Sealant Replacing roof sealant will be major precaution in preventing leaks or wood rot on your buildings around pipes and roof jacks and on cap metal seams. Keeping up on this small detail will save you from having to repair a much bigger issue. 9 Paint any and all metal on your roof Making sure that all metal are covered with paint will lead to the prevention of rust. Rust can weaken roof and can create much bigger issues for your roofs stability. 10 Get your roof inspected by a contractor every few years could save money in the long run Having a contractor come out and inspect your roof can help you identify the above issues. Taking this precaution can lead to catching a problem that could create unnecessary expenses. The main point of inspection should be checking for ponding water because roofs are made to shed water not hold water. Teros Dreamstime.com February 2018 RentalOwner 49

Multifamily Lending Los Angeles, CA FINANCING REAL

WendyHejna@umpquabank.com umpquacrelending.

Programs subject to change without notice.

CA $2,970,000 $1MM to $15MM 3, 5, or 7 year fixed

LTV / 1:15:1 DSCR Rate lock at loan application

for taxes, insurance, or capital improvements

52 Multifamily Lending Los Angeles, CA FINANCING REAL ESTATE. INVESTING IN RELATIONSHIPS. Contact me for Pricing. Wendy Hejna Regional Director umpquacrelending.com Subject to loan approval. Programs subject to change without notice. 50 RentalOwner February 2018 $2,740,000 Los Angeles, CA $2,970,000 $1MM to $15MM 3, 5, or 7 year fixed rates 30 year loan / 30 year amortization Up to 75% LTV / 1:15:1 DSCR Rate lock at loan application Flexible step-down prepayment schedule No impounds for taxes, insurance, or capital improvements Limited recourse available / Interest only available Multifamily, mixed-use and mobile home parks Member FDIC Equal Housing Lender SBA Preferred Lender CBC17.573_SD

53 # Property Managers Directory 5150 Baltimore Dr at the Crossroads Euston Management...(858) Kettner...(619) A ADD Realty, Inc... (619) All Points Real Estate... (619) Alliance Investment Corp..(858) Antelope Ridge Sentinel Real Estate (951) Arbor Terrace... (619) Arbors at California Oaks Apartment Homes... (951) Ariva Apartments...(858) Ascent Real Estate Asset Property Management (858) Avion at Spectrum Greystar......(858) Award Property Mgmt... (619) B Barone Galasso & Associates, Inc......(619) Benson Properties... (619) Berkshire Communities...(408) Bob Cota Realty... (619) Brennan...(619) Brentwood Management Co (619) Bridge Property Management (801) Brycorp, Inc... (619) C Cambridge Management Group, Inc......(760) Canyon Rim Fairfield Residential (858) Canyonwood... (619) Capella at Rancho Del Oro. (760) Capital Growth Properties, Inc......(858) Casa Linda Apartments...(619) Centre City Property Management Company... (619) Chase Pacific Property Management and Real Estate Services...(858) Choice Properties / Point Loma Real Estate... (619) City of San Marcos... (760) City View Apartments Greystar......(619) Community Research Foundation, Inc (619) D Dakota Fairfield Residential (951) Delta Property Management (619) Douglas Allred Company.. (858) Dylan Point Loma Greystar.(760) E Eagle Glen Apartments...(951) Eastman Investment...(619) Essel Manager, Inc... (619) Euston Management...(858) EV Lofts...(619) F Fairfield Residential Company LLC......(858) FBS Property, AMO... (619) FDC Management, Inc... (714) G Gables Residential Corporate (858) Gables Residential Corporate Office......(858) Greystar Real Estate Partners (602) Griswold Real Estate Mgmt., Inc (858) H H.G. Fenton Company... (619) Hanken, Cono, Assad & Co.. (619) Harprop, Inc... (650) Heartland Associates Inc... (619) Hillside Terrace... (619) Homes Management, ATS Homes, Inc... (760) Horizon Properties Management Service... (619) Humphreys Residential... (619) I IIMT Sorrento Valley... (858) Income Property Advisors Inc (619) Integrity Plus Property Management......(619) Interfaith Housing Assistance Corporation... (619) Investors Property Management Group..... (760) J JJHB California Properties, LLC (760) Johnston Property Management, Inc (760) JS Tamers...(619) K Kevin Robinson... (619) Kleege Enterprises... (858) L L.E.W. Management... (619) La Haye Enterprises, Inc.. (619) Land Trek Property Management......(760) LBK Management Services (Rancho Hills Apts.)... (760) Lincoln Military Housing. (858) M Margarita Summit Euston Management...(951) Mariner's Point Holdings LLC......(858) Maya Linda Apartments... (858) McLain Properties...(760) Melroy Asset Management.(858) MG Properties... (858) Mira Bella Apartments Simpson Property Group... (858) More Property Management (858) N Noah Realty...(858) O OOcean Breeze Apartments Greystar......(619) Ottman Properties BC; LTD. a British Columbia Canada Corporation (415) P Pacific Commercial Management, Inc (858) Parkdale Apartments Norco Mgmt. Corp....(760) Pasas Properties, Inc...(619) Pathmark Properties... (858) Pedro Ferreira... (619) People Helping Others Prop. Mgmt (619) Pierside Greystar...(949) Pinnacle Property Management Service LLC... (949) Prime Group Coral Bay Park & Canyons.....(619) Professional Real Estate Management (619) R R & V Management Corporation......(619) R. A. Snyder Properties, Inc......(619) REC Properties PeÃ±asquitos Point Apts (858) Red House Property Management (858) Rehmann Realty Group... (619) RG Investment Real Estate Services Inc (858) Rohn Properties Management (619) Rolling Hills Gardens... (619) S S & D Property Management, Inc (619) S. Wilson Management... (760) February 2018 RentalOwner 51

San Diego Housing Commission...... (619) 578-7531 San Diego Properties and Management...... (619) 232-9643 San Diego Realty Services. (619) 713-1044 Sardo Properties.

.. (949) 945-3499 South Bay Community Services...... (619) 420-3620 St. Vincent de Paul A/P... (619) 840-1442 Sterling Alvarado... (619) 286-3990 Strat Prop Management, Inc.

.. (760) 433-2900 SVN Asset Advisory Group. (858) 452-9100 Willin Properties... (619) 298-0500 Winn Residential...(559) 435-3434 Z Zimmerman Property Management......(619) 546-5361 ZVK Corporation.

54 San Diego Housing Commission (619) San Diego Properties and Management (619) San Diego Realty Services. (619) Sardo Properties... (619) SCCC JRD Investments... (858) Sea West Property Management (760) Seapoint Properties, Inc... (858) Silberrad, Inc... (619) Solaire... (949) South Bay Community Services (619) St. Vincent de Paul A/P... (619) Sterling Alvarado... (619) Strat Prop Management, Inc (619) Sun An Sea Property Mgmt (619) SunRidge Properties, Inc.. (858) Sunrise Management Company AMO (858) Sunset View Apartments... (760) SVN Asset Advisory Group. (858) Willin Properties... (619) Winn Residential...(559) Z Zimmerman Property Management......(619) ZVK Corporation... (619) Did you know... SDCAA s Value Solutions insurance program brokered by Successful Solutions features group medical, dental, retirement plans, workers compensation and liability insurance offerings. To learn more about the insurance program, offerings, information on Medical and workers comp insurance visit sdcaabenefits.org T Team Bourda Incorporated. (858) Terraces at La Jolla Village Greystar (888) Thatcher Properties, Inc... (619) The Gardens 96 LLC... (858) The Helm Management... (619) The Lofts at 655 Sixth Greystar (619) The Lofts at 677 Seventh Greystar (619) The Lofts at 707 Tenth Greystar (619) The Premiere Residential, LLC (858) The Summit at Point Loma.(619) The Terraces Apartments at Escondido (760) Torrey Pines Property Management (858) Trinity Property Consultants (949) Tuscany Hills Apartments Euston Management... (760) Reach San Diego s largest audience with over 4.1 Million Print and Digital users with The San Diego Union-Tribune Rental Directory. In partnership with the SDCAA tip of the week. U UDR, Inc... (720) V Verge Apartments...(619) Villages of Bonita Glen...(619) Vista Pointe Apartments (RCMI) (951) W Waterton Residential River Oaks (760) West Park Apartments Greystar......(619) Whispering Oaks Apartments......(760) Special pricing for SDCAA members. Contact Hung Luong at Or hung.luong@sduniontribune.com 52 RentalOwner February 2018

55 Supplier Directory 1031 Exchange Services, & Trust Services Kole Realty Inc...(858) Accounting Encore Partners LLP...(858) Advertising & Marketing Anyone Home, Inc... (818) Apartments.com... (888) Conversion Logix...(866) ForRent.com...(800) RentPath... (858) Zillow Rental Network...(206) Apartment Directory ALN Apartment Data, Inc...(800) Appliance Leasing Appliance Warehouse of America... (619) Appliance Parts & Repair Appliance Parts Company...(480) Appliance Sales Kiva Kitchen Bath Builders Appliance Supply (800) R & B Wholesale Distributors, Inc... (760) Asphalt & Asphalt Maintenance AMS Paving, Inc...(858) Apache Asphalt & Seal Corp... (760) Aztec Paving, Inc... (619) George W. Weir Asphalt Const., Inc... (760) Attorneys-At-Law D'Egidio Licari Townsend & Shah...(619) Fast Eviction Service...(800) Heinz & Feinberg... (619) Heys & Cox, Attorneys at Law...(619) Kimball, Tirey & St. John LLP... (619) Todd A. Brisco & Associates, APC... (714) Backflow Testing Pacific Backflow Company, Inc... (760) Banks Banc of California...(760) Chase Commercial Term Lending... (619) San Diego Private Bank...(858) Silvergate Bank...(858) Bathroom Refinishing American Bathtub Refinishers... (619) Citiwide Restoration...(858) Bathroom Remodeling & Refinishing American Bathtub Refinishers... (619) Bill Howe Plumbing, Inc... (619) Calbath... (949) Bathtub Liners American Bathtub Refinishers... (619) Bath Fitter... (619) Blinds America's Finest Carpet Company... (800) Bonded Inc... (858) Brokerage ABI Multifamily...(858) Doug Taber...(858) Cabinet and Countertops Designer Quartz...(858) Grand Design Kitchens... (760) Cabinet Refacing & Installation Smart Cabinetry...(612) Cable Television Cox Communications-San Diego Accts.(858) Carbon Monoxide Alarm Compliance Mr. Rekey Locksmith... (619) Carpet Cleaning Bonded Inc... (858) Citiwide Restoration...(858) Turnover Cleaning and Carpet Care.. (619) Carpet Sales & Flooring America's Finest Carpet Company... (800) Bonded Inc... (858) Criterion Brock... (858) G. B. Sales... (858) J & C Carpet Company... (619) Sid's Carpet Barn, Inc... (619) Turnaround Solutions...(858) Cleaning & Janitorial Services California Office Maintenance, Inc... (858) Citiwide Restoration...(858) Cleanology Housekeeping Personnel Service (619) Pacific Coast Cleaning, Inc... (858) Suite Cleaning...(619) Sunset Commercial Services... (619) Coin-Operated Laundry Equipment All Valley Washer Service... (800) Coinmach Corporation... (800) PWS The Laundry Company... (858) WASH Multifamily Laundry Systems. (858) Washtek, Inc... (760) Collections Fast Eviction Service...(800) GTA Consulting and Management...(619) Kimball, Tirey & St. John LLP... (619) Communications Wiring Cox Business...(619) Community Service Community Catalysts of California...(858) Concrete Pavers Savon Pavers...(951) Concrete Services Ram Jack Pacific...(619) Saber...(800) Construction and Remodeling Generation Contracting & Emergency Services, Inc (858) Hersum Construction Inc... (858) McMillin Contracting Services... (619) Primeco Construction...(760) Triskell Restorations, Inc...(951) Workright Property Services Inc... (858) Construction Management AJW Facilities and Construction...(858) Southern Cross Property Consultants. (858) Deck Coating Life Deck/Pacific Pebbles... (619) Medrano Co...(619) Developer of Apartments OliverMcMillan Foster LLC... (619) Drain & Sewer Cleaning Bill Howe Plumbing, Inc... (619) Drone Aerial Video Services Hovercam Drones...(858) Electrical Contractors Kennedy Electric... (619) Electronic Key Access Community Controls... (801) Emergency Service Flood/Fire American Technologies... (858) BELFOR USA Group, Inc... (858) Hersum Construction Inc... (858) Orange Restoration...(858) Pinnacle Services...(858) Signal Restoration...(714) Employment Agency/Staffing Agency BG Multifamily...(619) The Phoenix Staffing...(858) Energy Management San Diego Gas & Electric...(619) TRC Energy Services... (916) Environmental: Asbestos/Lead/ Mold Alliance Environmental Group, Inc... (877) American Technologies... (858) Envirocheck...(858) Equipment Rentals Compact Power Rental...(803) Events Wine and Paint Apartments...(619) Evictions Fast Eviction Service...(800) Kimball, Tirey & St. John LLP... (619) Exterminators Lloyd Pest Control... (800) Financial Services CBRE...(858) Inter Capital Network...(844) Point Loma Credit Union... (858) Revolution Financial Management...(619) Woodbury Financial...(619) Fire Equipment Sales & Service All County Fire, Inc... (619) Bay Alarm Company...(858) Symons Fire Protection...(619) Telgian Corporation...(877) Fitness Equipment & Sales Opti-Fit... (619) Flood Damage BTR Equipment Services...(800) Citiwide Restoration...(858) Generation Contracting & Emergency Services, Inc (858) Hersum Construction Inc... (858) Floor Coverings Floors For Rentals...(619) Resource Floors, Inc....(858) Seamless Flooring, LLC...(858) Shaw Industries, Inc...(619) Sitton Flooring... (714) Turnaround Solutions...(858) Urban Surfaces...(951) Furniture Rentals Brook Furniture Rental... (858) Cort Furniture Rental... (858) Eric Drost...(909) Furniture Sales Crowning Touch Installations...(760) Garage Door and Repairs Garage Door Medics...(619) February 2018 RentalOwner 53

56 Gates Controlled Entry Specialists, Inc... (619) General Contractors FSI Construction...(972) Generation Contracting & Emergency Services, Inc (858) Har-Bro Emergency Services & Restoration (619) Hersum Construction Inc... (858) Larry O'Dell Construction... (619) M. C. Contracting Service... (619) McMillin Contracting Services... (619) Gifts Suzie's Gourmet Gifts...(858) Heating & Air Conditioning Bill Howe Plumbing, Inc... (619) Sam's Heating and Air Conditioning, Inc (619) Housing & Redevelopment Volunteers of America...(619) Human Resources San Diego Employers Assoc... (858) Insurance D&S Insurance & Financial Services...(619) Farmers Insurance McWhirter Agency......(619) Jose Aroeste Farmers Insurance Agency......(858) North County Insurance...(760) Renters Legal Liability... (801) Scott Held Insurance Brokers...(858) Snapp & Associates Insurance Services, Inc......(619) State Farm Insurance - Rick Wiese Agency (619) State Farm Insurance- Hollie Allen...(619) Willis Insurance Services of California.(858) Insurance Adjuster The Greenspan Co./Adjusters International......(760) Internet Advertising Service Apartments.com... (888) WebListers LLC... (800) Internet Marketing ApartmentSEO...(562) Internet Service Provider Cox Communications-San Diego Accts.(858) Janitorial Services DAPA Janitorial Services...(619) GMI Cleaning-Security...(858) SeaCrest Services...(858) Kitchen Remodeling Hersum Construction Inc... (858) McMillin Contracting Services... (619) Landscape Maintenance & Service A Plus Tree Care, Inc...(866) Aztec Landscaping Inc... (619) Bemus Landscape, Inc...(760) Benchmark Landscape... (858) BrightView...(619) LaBahn's Landscaping... (619) Landcare Logic... (858) Landscapes USA...(619) Liberty Landscaping, Inc...(951) M. C. Contracting Service... (619) New Way Landscape and Tree Service. (858) Pacific Green Landscape, Inc... (619) So Cal Tree Care, Inc... (888) Leak Detection Bill Howe Plumbing, Inc... (619) Cable, Pipe & Leak Detection, Inc... (619) RentalOwner February 2018 LED Lighting The Energy Smiths...(858) Lenders Chase Commercial Term Lending... (619) Luther Burbank Savings... (619) Pacific Southwest Realty Services...(858) Lighting Lumeo...(760) Locksmith Mr. Rekey Locksmith... (619) The Flying Locksmiths San Diego...(858) Mailboxes Jayco Mailboxes...(760) Maintenance & Repair Generation Contracting & Emergency Services, Inc......(858) Larry O'Dell Construction... (619) Maintenance Supply HD Supply... (760) The Home Depot...(619) Wilmar...(909) Mold Inspections & Remediation American Technologies... (858) Bill Howe Plumbing, Inc... (619) Citiwide Restoration...(858) Generation Contracting & Emergency Services, Inc (858) Hersum Construction Inc... (858) VM3 Environmental Inc...(760) Moving Services Pack It Movers...(619) Priority Moving... (858) Republic Moving & Storage... (619) Mystery Shopping Ellis, Partners in Management Solutions (972) Odor Control Turnover Cleaning and Carpet Care.. (619) Online Payment PayLease, LLC... (866) PayRent.com...(619) Paint Manufacturers & Supplies Dunn-Edwards Corporation... (619) Sherwin-Williams Co... (858) Vista Paint Corporation... (619) Painting CertaPro Painters... (760) Citiwide Restoration...(858) Done-Rite Painting... (619) Dynamix Painting, Inc... (760) General Coatings Corporation... (858) Jana Harris Painting Inc... (619) Pilot Painting and Construction...(714) Pro-Tech Painting Company... (858) Truline Painting Inc... (619) Parking Enforcement Reliant Parking Solutions... (888) Parking Management Reliant Parking Solutions... (888) Paver Cleaning Savon Pavers...(951) Paving Maintenance AMS Paving, Inc...(858) Eagle Paving... (858) Pest Control Bed Bug Solutions... (760) Dewey Pest Control...(760) Lloyd Pest Control... (800) Pestgon Inc... (760) Western Exterminator Co...(714) PGS AEI Corporation...(949) Plumbing ASAP Drain Guys & Plumbing...(760) Bill Howe Plumbing, Inc... (619) Colepepper Services...(619) Emory Plumbing...(858) Mega Western Sales...(310) Pacific Drain and Plumbing... (760) Plumber Tom Corp...(619) Workright Property Services Inc... (858) Plumbing Fixtures Ferguson Enterprises... (888) Pool Furniture Texacraft... (800) Pool Maintenance & Refacing Gardner Outdoor and Pool Remodeling (619) Printing Services PostNet Ca260...(619) Property Management Wakeland Housing & Development... (619) Property Management Personnel Career Strategies... (619) Go-Staff, Inc... (858) Link Staffing Services...(858) NPM Staffing... (619) Property Management Software AppFolio... (866) Yardi Systems... (805) Rain Gutters Seamless Rain Gutters Inc...(619) Real Estate ABI Multifamily...(858) ACI Apartments... (619) Apartment Realty Group (ARG)...(858) Pacific Coast Commercial... (619) Real Property Advisors...(707) SVN Vanguard...(619) Voit Real Estate Services... (858) Refuse Removal Dependable Disposal & Recycling...(619) Global Disposal Inc... (619) Ruff Doodie Dog Waste Removal, LLC.(619) Valet Living... (813) Waste Management... (619) Renovations & Remodeling AAA Refinishing Corp... (800) Bill Howe Plumbing, Inc... (619) Hersum Construction Inc... (858) Interstate Restoration Group... (714) Larry O'Dell Construction... (619) McMillin Contracting Services... (619) Renters Insurance Assurant... (760) epremium Insurance... (949) Repiping Bill Howe Plumbing, Inc... (619) Reputation Management SatisFacts Research... (866) Resident Retention SatisFacts Research... (866) Resident Surveys SatisFacts Research... (866)

Roofing A-1 All American Roofing Company.. (858) 537-5177 Commercial & Industrial Roofing... (619) 465-3737 DILS Roofing & Exteriors... (760) 727-6000 Eberhard Benton Roofing Co.

57 Roofing A-1 All American Roofing Company.. (858) Commercial & Industrial Roofing... (619) DILS Roofing & Exteriors... (760) Eberhard Benton Roofing Co... (619) Gorman Roofing Services, Inc...(602) Montross Companies... (949) Premium Roof Services, Inc... (619) RSI Roofing & Solar... (858) Sully-Jones Roofing... (800) Security Deposit Assurant Specialty Property... (760) DepositIQ... (877) Security Guard Patrol Bald Eagle Security Services, Inc... (619) California Safety Agency... (866) City Wide Protection Services, Inc... (619) Signal 88 Security of San Diego.(619) 363-SAFE (7233) USGI Security Services City Wide Protection Services, Inc... (619) GMI Cleaning-Security...(858) JDS Security... (619) Kastle Systems...(949) Security First... (619) Security Systems Bay Alarm Company...(858) Sewer & Drain Line Video Bill Howe Plumbing, Inc... (619) Cable, Pipe & Leak Detection, Inc... (619) Signs & Banners Art SignWorks, Inc... (951) Slab Leaks Bill Howe Plumbing, Inc... (619) Smoke Alarm Compliance Mr. Rekey Locksmith... (619) Smoke Free Housing American Lung Association...(619) Software RealPage, Inc... (877) Solar Center for Sustainable Energy...(858) Submetering / Billing Services California Sub-Meters...(858) Conservice Utility Billing & Mgmt... (602) Guardian Water & Power...(619) Minol USA...(888) Telephone Services AT&T Connected Communities... (619) Cox Communications-San Diego Accts.(858) Tenant Screening Moco Inc... (800) On-Site.com... (619) Termite Control & Repair Best Rate Repair...(619) Towing Services C + D Towing, Inc Expedite Towing...(619) Star Towing... (858) Western Towing Trauma Scene Clean Up Bio-One San Diego Tree Services Arborwell... (888) So Cal Tree Care, Inc... (888) Water Conservation California Sub-Meters...(858) Indoor Water Conservation...(619) Livable...(877) Sustain-Ability Solutions...(888) Water Damage Restoration Bill Howe Plumbing, Inc... (619) Citiwide Restoration...(858) Generation Contracting & Emergency Services, Inc......(858) Hersum Construction Inc... (858) Restoration Management Company...(858) Servpro of Point Loma...(619) SERVPRO of San Diego City SW...(619) Servpro of Sorrento Valley & UTC... (858) Water Heaters Bill Howe Plumbing, Inc... (619) Water Softening & Conditioning Fluid Dynamics USA...(908) Web Services Entrata... (949) Window Coverings Bonded Inc... (858) G. B. Sales... (858) Specialty Apartment Supply... (877) Windows Milgard Manufacturing - Temecula...(951) Newman Replacement Windows...(760) Western Window Sale & Install...(858) February 2018 RentalOwner 55

58 Advertiser Index advertising 52 Union-Tribune air duct cleaning 5 Bonded Carpet appliance sales IFC Ferguson Enterprises, Inc banks IBC Chase Multifamily Lending Umpqua bathroom remodeling 40 3 in 1 Bathtub and Kitchen Refinishing American Bathtub Refinishing bathtub liners 44 American Bathtub Refinishing bathtub refinishing 40 3 in 1 Bathtub and Kitchen Refinishing American Bathtub Refinishing broker/real estate 12 Terry Moore Real Property Advisors, Inc carpet cleaning 5 Bonded Carpet carpet sales 5 Bonded Carpet coin operated laundry 8 PWS Laundry Services Wash Multifamily Laundry concrete services 7 Ram Jack Pacific damage restoration 55 Hersum Construction deck coatings & waterproofing 23 Medrano Pacific Coast Construction & Water Proofing drawers 35 The Drawer Depot electrical contractors 15 Kennedy Electric energy & utilities 42 SDG&E foundation repair 7 Ram Jack Pacific evictions 50 FastEvic.com kitchen refinishing 40 3 in 1 Bathtub and Kitchen Refinishing insurance 33 Scott Held Insurance Brokers paving 18 AMS Paving pest control BC Corky's Pest Control Lloyd Pest Control plumbing 32 ASAP Drain Guys and Plumbing Bill Howe Plumbing, Heating & Air Conditioning Inc 800-Bill Howe property management 34 Harland Property Management termite Control 20 Lloyd Pest Control towing 39 Western Towing water heaters 32 ASAP Drain Guys and Plulmbing IFC Ferguson Enterprises, Inc windows 46 Newman Replacement Windows Team Up for Success! Use an SDCAA Member 1st! 56 RentalOwner February 2018

Dependably fast. And simply dependable. LOW FEES GREAT RATES STREAMLINED PROCESS Apartment loans done right. Chase is known for our fast, efficient loan processing and low fees.

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59 Dependably fast. And simply dependable. LOW FEES GREAT RATES STREAMLINED PROCESS Apartment loans done right. Chase is known for our fast, efficient loan processing and low fees. It s what has made us #1 in multifamily lending nationwide. With great rates, low fees and a deep understanding of the local market, our team gets apartment loans done right. Call me today to learn how we can put our resources to work for you. Kristy Blair, CCIM Client Manager SDCAA Board of Directors (619) kristy.blair@chase.com Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. All rights reserved. #1 claim based on 2017 FDIC data JPMorgan Chase & Co. All rights reserved. Chase is a marketing name for certain businesses of JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. Member FDIC

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Table of Contents. Since 1919

Table of Contents. Since 1919 Since 1919 Table of Contents Think Before You Act Page 2 What type of message are you sending when you increase your rents? Are You Thinking about Raising Your Rents? Page 4 Think carefully before you