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

Edition

1201101009080706050

January 2016

RentalOwner Magazine®

In this issue• Hoarding• Solar Energy

5Investing in Your Property's Prosperity with Solar Water HeatingLooking to add solar water heating to your property? The author

recently did this for one of the property's he manages and shares with us costs, savings and how it increased his property's value.

Hoarding TenantsThe author covers what should be considered and done when dealing with a hoarding situation.

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

common landlord-tenant problems.

RentalOwner-RHC Magazine

Cover: ® National Apartment Association

Professional CertificationsandDesignations

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

These Programs are available online at www.sdcaa.com

Online LearningOnline ClassesSeminars

Bed Bugs 101Just when you thought you couldn’t add one more issue to your to-do list along come bed bugs. This course is designed to give the onsite staff a basic understanding of how to manage a bed bug complaint.

SyllabusWhat are bed bugs and how do they infest a community?• Why should I consider a bed bug infestation an emer-

gency?• How do I get rid of bed bugs?• How do I educate my residents about preventing an

infestation?• What are the best ways for my staff to prevent an infes-

tation?• WhatstepsshouldItakewhenIamnotifiedofapoten-

tial infestation?

TARGET AUDIENCE: Owners and Managers of multifamily properties.Cost: $12

Register at naahq.org

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

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

January

27 Top 10 Sure Fire Tips to Amazing Customer Service

February10 Keep Your Leasing & Sales Funnel Full 24 Model Behavior: 15 Ways to Modernize Your Model Home for 2016

Webinars

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

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

We are very excited to bring you RentalOwner-RHC! Our main objective is to bring you informative articles that will help you manage your rental property. Whether you are a regional manager, onsite manager, leasing agent, independent ownerormaintenanceperson,wehopeyouwillfindthearticlesand services useful.

Magazine StaffPublisher Alan Pentico, CAEExecutive Director

Design & Layout Olivia GalvezDirector of Publications

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

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

To Advertise: If you would like to advertise your products or services in RentalOwner-RHC Magazine, contact the publications department at ogalvez@sdcaa.com.

To Write for RHC: If you would like to submit a story idea, write or advertise in RentalOwner RHC or RentalOwner magazine, please contact the publicationdepartment at ogalvez@sdcaa.com

Columns

11 Local Legislative 14 From the Capitol-NAA Update16SDCAATravelandLearnProgram

8

RHC-RentalOwner January 2016 54 | RHC-RentalOwner January 2016

Happy 2016! I hope that you enjoyed the holiday season with your colleagues, family and friends.

Hope your 2016 is off to a great start. I recentlyaskedRHC-SDCAAstaffiftheycoulddescribewhattheRHC-SDCAAdoes using the fewest words possible. Of course, the answer was not immediate. Howdoesonebrieflydescribeamulti-regional organization with several thousand members that is almost a century old? But, the staff summed up what the RHC-SDCAAdoesinthreewords:Advocacy,Education, and Networking.

TheRHC-SDCAAisatirelessadvocateforthe rental housing industry in local and state politics. Staff and volunteers lobby electedofficialsonlegislationimpactingour industry and provide our members with updates and alerts on legislation. The RHC-SDCAAholdsseminarsandclassesmonthly educating members on subjects such as using the proper rental forms and addendums, fair housing, and tenant screening. The RHC has a Legal and LegislativeUpdateattheMurrietaPublicLibraryonFebruary18;visittheSDCAAEvents Webpage to register.

WealsohaveWhitePaperswhichaddress common issues concerning rental properties and tenants. The RHC RentalOwner magazine is our monthly e-magazine providing industry information, market trends, and local legislative updates in the region. E-newsletters like the Friday Update share relevant news articles on policy and market trends. Our

members have the opportunity to sponsor or advertise their business through our print and electronic publications. We hope thatyouvisitSanDiegoandattendthe2016EducationConferenceandEXPOonApril 19.

In this month’s issue, “Investing in Your Property’sProsperitywithSolarWaterHeating” on page 5 talks about the advantages of having solar on your rental properties. A don't want to miss article is on page 8 and talks about hoarding in rental properties and what owner's can do, and our Local Legislative Update on page 11.

This year’s theme "Your Association. Your Success."epitomizeswhattheRHC-SDCAAisallabout-theRHC-SDCAA’ssuccessrelies on the success of its members. Let’s make 2016 another great year.

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

From the Executive Director's Desk Investing in Your Property’s

Prosperity with Solar Water Heating

Recently, while reviewing an article regarding the relative value at time of sale for a variety of different property

improvements, I discovered most of the items listed (new front door, minor kitchen upgrades, bathroom remodel, etc.) reported a payback considerably less than 100 percent. These traditional property investments may be necessary for keeping a property rented, but rarely provide a full payback at time of sale. I would like to share my experience with a property improvement at an apartment complex in 2015 that exceeded the full payback threshold: solar water heating.

ProPerty imProvements that work

ByPeteCeccherini,President,RGInvestmentRealEstateServices,Inc.

radipiscing elitPropertySnapshot

The Apartment complex, located in the Point Loma neighborhood of San Diego, California, consists of 25 one- and two-bedroom apartment units and is typical for the region — an older complex, built in the early ‘70s.

RHC-RentalOwner January 2016 76 | RHC-RentalOwner January 2016

The property had existing solar water heating systems for both the pool and domestic use; however, the systems were deteriorating and approaching the end of their useful life.

The roof also was nearing the end of its useful life, and we had determined that it would have to be replaced. This meant evaluating the solar systems and determining if we would simply remove the old systems or replace them. The property owners, who are very socially responsible, were motivated to continue to make use of solar energy at their building. As the property managers, we were lucky in that they played a key role in driving the decision and interviewing and selecting the contractor for the job. I can’t stress enough how important it is to have the owner’s buy-in when pursuing a project of this nature.

System Costs and SavingsThe owners decided to install two new systems, the first a domestic hot water heating system and the second for heating the swimming pool. The domestic hot water system has an expected service life of 20-25 years while the pool system has an expected life of 10-15 years.

The cost for the domestic solar water heating system was $35,935. It was eligible for a rebate of $28,024 from the California Solar Initiative-Thermal Program. The owners also qualified for a 30 percent federal investment tax credit of $2,373, resulting in a total out-of-pocket expense of $5,537. Depending on natural gas prices, the annual utility bill savings is

expected to be $1,600, providing a payback of only 3.5 years – a definite winner! Normally, I consider a payback of five to seven years on any major improvement to be a very good investment.

The solar pool heating system cost was $8,855 with a rebate of $5,250, which resulted in a total out-of-pocket cost of $3,605. With annual savings of $1,260, the payback will be 2.9 years.

Thanks to this year’s warm weather, we are confident that our first year will exceed the projections in terms of actual savings. Obviously these things are difficult to predict, but we already feel great about our results. Now, we are getting ready to do a second project, a 64-room hotel in Oceanside, California.

IncreaseinPropertyValueApartment buildings are appraised using a number of methods, but a key way is the capitalization (CAP) rate approach. When using the CAP rate approach, operating expenses are subtracted from income to calculate a net operating income, or NOI. The NOI is then divided by a marketplace driven CAP rate to determine overall value. So, if I increase income or reduce expenses, the value of the building is increased because the net operating income is increased.

We anticipate that the energy expenses at our property will be reduced by about $2,800 annually. Using a CAP rate of 5 percent means that the anticipated marginal increase in value from these reduced expenses would be

roughly $56,000. Based on the total system cost before rebates, this comes out to a 125 percent return on investment. However, we have the benefit of the rebates, which lowers out-of-pocket costs. The return based on the actual out-of-pocket cost is approaching 613 percent.

A No-Brainer for Your PropertyImagine if I told you that you could make a modest investment in your income property that would pay for itself in less than four years, continue to provide real cash savings for many years after the initial payback and potentially improve the value of your property by substantially more than your out-of-pocket cost (in our case over 600 percent)? And that you could do this while actually helping to reduce energy consumption and the associated emissions. Would you be excited about that? I think so.

One thing that makes the process of going solar a bit easier is the California Solar Initiative-Thermal Program team at the Center for Sustainable Energy. They are a nonprofit organization that offers workshops on solar water heating, tips for choosing a contractor, guidance on state rebates and other useful information.

I think you will agree that saving money while reducing pollution and increasing the value of our client’s properties is a no-brainer! This could be a great opportunity for you and your clients as well.

About the author: Pete Ceccherini is President of RG Investment Real Estate Services, Inc., formerly

Radelow/Gittins. The company has been providing property management services in the San

Diego region since 1972 with expertise in hotels, apartment buildings, commercial properties

and single-family homes.

SDCAA Events Department │ Phone 858.751.2219 │ Fax 858.565.6708

DateApril 19, 2016

LocationSan Diego

Convention Center111 W. Harbor Drive

San Diego, CA 92101-7899

TimeExhibits

9:00am - 4:00pmEducational Seminars

8:00am-5:00pm

Parking$15 Self

Registrationwww.sdcaa.com

42nd Annual Education Conference & EXPO

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

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

Questions? Contact events@sdcaa.com or 858.751.2219

APRIL 19, 2016EDUCATION CONFERENCE & EXPO

BRING OUT THE SUPERHERO IN YOU!

RHC-RentalOwner January 2016 98 | RHC-RentalOwner January 2016

Resident hoarding can cause significant health and safety problems, both in the

resident’s unit and in neighboring units. Hoarding can create pest infestations, mold problems, increased fire risk, interfere with entrance or exit of the unit, or exceed maximum load-bearing floor capacity.

Hoarding is rarely self-reported by the resident. Instead, it is often discovered by maintenance staff making a repair in the resident’s unit or in a neighboring unit. Hoarding can create a problem for surrounding units, such as water intrusion, mold, or a pest invasion in a neighboring unit.

Hoarding is not just a matter of poor housekeeping. In May of 2013, hoarding was listed as an official psychiatric disorder in the American Psychiatric Association’s Diagnostic Statistical Manual, Version 5 (“DSM-5”). Hoarding disorder is defined as:

• Persistent difficulty discarding or parting with objects, regardless of actual value;

• The difficulty discarding is due to a perceived need to save and distress associated with discarding;

• The symptoms result in accumulation of possessions that congest and clutter active living areas and substantially compromise their intended use;

• Clinically significant distress or interference;

• Not attributable to another medical

condition; and

• Not better accounted for by another DSM-5 disorder.

Residents with hoarding disorder frequently suffer from other psychiatric disorders as well (known as “co-morbidity”). Common co-morbid disorders are: major depressive disorder; general anxiety disorder; social phobia; attention deficit disorder, attention deficit-hyperactivity disorder and obsessive-compulsive disorder.

Hoarded items may be valuable collectibles, or items that appear to persons without the hoarding issues to be trash… or anything in between. Units can be literally packed, floor to ceiling and wall-to-wall, with just a small path for movement in the unit, although not all hoarding situations rise to this level.

The inclusion of hoarding as an official psychiatric disorder in the DSM-5 confirmed that hoarding is a mental disability. It is important to remember that federal and state fair housing laws protect people with mental disabilities and require landlords to make reasonable accommodations for disabled residents, when such an accommodation is necessary to afford the disabled resident full and equal use and enjoyment of the rental property.

It is rare for residents with hoarding issues to specifically ask the owner or management for an accommodation. Fair housing advocates take the position that before eviction of a mentally disabled resident whose

disability is causing the person to violate the terms of the lease/rules, good faith efforts must be made to accommodate the resident’s disability. This generally requires that the resident be given opportunities to come into compliance so that he or she can retain the tenancy.

Examples of potential accommodations include:

• Meeting with the resident to identify health and safety issues that need to be addressed in the unit;

• Establishing goals and timelines with the resident to address the health and safety issues;

• Setting periodic dates for re-inspection of the unit to monitor compliance;

• Memorializing the goals, timelines and re-inspections in a written agreement that the resident signs;

• Providing the resident with a list of community resources that can assist persons with hoarding issues;

• Working with a fair housing and/or mental health advocacy group or attorney assisting the resident to develop a plan to bring the unit into compliance;

• Extending time for compliance with a legal notice that has been served or entering into a stipulation in an eviction that gives the resident a final opportunity to address the health and safety issues and retain the tenancy.

When dealing with a hoarding situation, the focus should only be on solving legitimate health and safety issues rather than attempting to achieve ideal housekeeping habits. It should be recognized that even if the resident meets minimum health and safety standards, the unit may not meet your expectations of an “optimal condition.” It is also important to realize that residents with hoarding issues may not recognize they have the problem (or the severity of the problem) or be equipped to resolve the hoarding problem on their own. The inclusion of hoarding disorder in the DSM-5 may make diagnosis and treatment available to more people.

Accommodation may not be required, and termination of the tenancy may be possible, if:

• The person is a clear, direct and immediate threat to the health and safety of other residents or the property and there is no accommodation that will eliminate or sufficiently mitigate the health and safety issues;

• There are serious health and safety issues that cannot be mitigated through accommodation;

• The resident has caused serious monetary damage to the unit and will not reimburse the landlord for the cost to repair the unit; or

• The resident will not engage in the accommodation process or cooperate to bring the unit back into compliance.If health and safety issues are initially resolved, you should be

Hoarding TenantsByLynnDover,Esq.,Kimball,Tirey&St.JohnLLP

RHC-RentalOwner January 2016 1110 | RHC-RentalOwner January 2016

aware that, even with treatment, hoarding disorder has a high rate of recidivism. This means that a resident with hoarding issues may “slip” and re-hoard again the future. Therefore any written agreement made with the resident should include language that provides for periodic unit inspections after the health and safety issues have been remedied and a specified time period for correction of any future health and safety issues.

In conclusion, no two hoarding situations are alike. Each situation involving a resident with hoarding issues requires analysis based on the facts of the particular case. It is advisable to seek legal advice before taking any action to terminate a tenancy if hoarding issues may be involved. If not handled appropriately, it could result in a fair housing complaint being filed against you, the property and the company.

About the author Kimball, tirey & St John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only and not intended as legal advice. Please visit our website at www.kts-law.com

New State Laws Impacting Rental Housing in 2016

Happy New Year! There are 807 new state laws taking effect in 2016 impacting many facets of our everyday lives. Importantly, there are new laws that will impact the rental housing industry – some of the laws address a landlord’s application of pesticides, tenant’s use of clotheslines or drying racks, new smoke alarms regulations, and presence mold on rental properties.

AB 1448 will allow tenants to have clotheslines or drying racks in their units to dry their laundry with the rental manager or owner’s permission. SB 328 now requires landlords, who are not using licensed pest control operator, to notify residents in advance if the landlord plans to apply household pesticides in a rental unit or common area. AB 418 allows victims of domestic violence or sexual assault to terminate their tenancy within 14 days instead of 30 days.

One of the most significant bills to become law this year is SB 655. SB 655 adds mold to the list of conditions that could make a rental unit inhabitable or substandard. If a code enforcement or health officer visibly spots mold in a rental during an inspection, the officer could determine that the unit is uninhabitable. State and local agencies have not yet issued final regulations on how to execute or

enforce the law, but it could be a major headache for rental owners who don’t inspect or document the condition of their units.

RHC Members can visit the SDCAA website, www.sdcaa.com under the State Issues webpage to view these and other bills signed into law. Also, look out for Legislative Updates on the State Issues webpage on the SDCAA website. The RHC will have a Legislative and Legal Update Seminar at the Murrieta Public Library on February 18 - visit the San Diego County Apartment Association’s Events Webpage to register and view other upcoming classes and events.

Local Assembly Members appointed to key Republican Caucus positionsAssembly Members Marie Waldron, Brian Jones, and Jay Obernolte were selected to serve key leadership roles in the Republican Caucus, 2016-17 Legislative Session. Assembly Member Chad Mayes (42nd District), the new Republican Assembly Leader, appointed Jones, Obernolte, and Waldron to their positions earlier this month. All Assembly Members’ districts represent portions of Riverside and San Diego Counties. Jay Obernolte, 33rd District, will be one of three assistant leaders in the Republican caucus. Assembly Member Brian Jones, 71st District, will be the caucus chair, and Marie Waldron, 75th District, will be the Republican floor leader. Chad

RHC Local Issues

• New State Laws Impacting Rental Housing in 2016

• Local Assembly Members appointed to key Republican Caucus positions

• 2016 Elections Update

• Supervisor Benoit becomes County Board Chair; Temecula Council picks Mayor and MayorProTem

By Molly Kirkland, Director of Public Affairs

White PapersSDCAA-RHC

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

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

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

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

M e m b e r s h i p

RHC-RentalOwner January 2016 1312 | RHC-RentalOwner January 2016

Mayes, was chosen by his party colleagues last November to be the next Assembly Republican Leader. Mayes succeeds Assembly Member Kristen Olsen, 12th District; Olsen will serve as an assistant caucus leader.

While leader of the Republican Assembly Caucus, it has to be seen if Mayes will have any influence working with Assembly Democrats. Currently, Democrats have 52 to 28 seat advantage over the Republicans. Assembly Member and Democrat Anthony Rendon, 63rd District, will be the new Speaker of the Assembly who is succeeding Assembly Member Toni Atkins, 78th District. Speaker Rendon officially begins his role in March.

2016 Elections UpdateState Senator Jeff Stone, 28th District, announced that he will run against Democrat incumbent Congressman Raul Ruiz for the 36th District. Stone said he decided to run for Congress after meeting with constituents and observing what he believes is a failure in leadership from the current presidential administration. Stone previously served as a Temecula City Council Member, Riverside County Supervisor, and now State Senator. Last December, Republican Dwight Kealy filed papers and declared his candidacy against Ruiz; however, some Republican circles do not see Kealy as a serious threat to Ruiz because he does not have prior political or

campaign experience, and did not live in the Congressional District at the time he announced his candidacy. Stone, having served in multiple political offices, views himself as a viable challenge to Ruiz. Congressman Ruiz is seen as a well-financed moderate Democrat representing a district that has been leaning democratic as of lately. The 36th District used to favor Republican candidates, but the district’s changing demographics allowed Ruiz to defeat long-time Republican incumbent Mary Bono in 2012, and defend his seat against Brian Nestande in 2014. Should Kealy, Ruiz, and Stone remain in the race, only the top 2 candidates in the June primary will advance to the November general election regardless of party affiliation.

Supervisor Benoit becomes County Board Chair; Temecula Council picks Mayor and Mayor ProTemThe Riverside County Board of Supervisors re-elected John Benoit to serve another term as Chair. Benoit was originally appointed to the Board of

Supervisors in 2009 to complete the term left by late Supervisor Roy Wilson. Benoit representing the 4th District, covers the communities in the Coachella Valley to Blythe. Benoit was last elected in 2014, and already has made plans to run for re-election in 2018. Serving on the Temecula City Council for seventeen years and counting, businessman Mike Naggar was chosen again to be the city’s Mayor in 2016. It will be fourth time Naggar served as Mayor. Longtime Councilmember Maryann Edwards was selected Mayor Pro Tem in 2016 and will be in succession to become Mayor in 2017. Naggar’s priorities will be completing key road projects, focusing on families, and partnering with private developers to build more affordable housing in the city.

SDCAAMEMBERBENEFITS

…The New and Improved San Diego County Apartment Association

Insurance Programs…

Medical InsuranceDental InsuranceRetirement / 401(k) PlansHuman Resources ConsultationLife InsuranceWorkers CompensationLiability Insurance Voluntary BenefitsEstate Planning

Designed exclusively for SDCAA Members bySuccessful Solutions, LLC. CA Insurance License 0D73873.

(619) 460-9433

Find out more at www.sdcaa.com

We cover everything.Well almost...

RHC-RentalOwner January 2016 1514 | RHC-RentalOwner January 2016

put back in front of lawmakers by the recent terrorist acts in San Bernardino, California. Though there has been and will continue to be rigorous debate in Congress, it does not appear that any new legislation will be considered before adjournment. There is relevancy to the apartment industry here as owners and operators grapple with how to handle conceal carry, open carry and other laws that allow individuals to possess and carry firearms on their person in public. National firms and local independent owners alike are attempting to strike a balance between respect for legal rights and the safety of their residents. Because Congress is very unlikely to pass any national standards in this area, owners with property across municipal and state boundaries will have to comply with myriad different rules.

Remember to mark your calendars for the 2016 NAA Capitol Conference and Lobby Day which will take place in March in Washington, D.C. NAA has a new and ambitious goal for the event. We’re going to reach every one of the 535 Congressional

I hope this finds all of you healthy, safe and in the midst of happy holiday celebrations

with family and friends. By the time you settle in to read my scribblings with a cup of eggnog or other festive beverage, the House and Senate will hopefully have closed the book on the first session of the 114th Congress. They have already successfully passed the first long-term highway bill in a decade and now have only to knock out federal

appropriations and tax extenders. No small feat to be sure, but apparently with Paul Ryan now Speaker of the House, the policy world is our oyster.The final weeks of debate on Federal appropriations spending are a valuable lesson in how large bills get done in our political system. The good news is that the starting premise is that no one – especially Republicans – wants to shut down the government. With that in mind, everyone is willing to negotiate and find the sweet spot on a comprehensive, “omnibus” federal appropriations bill. Republicans want to include policy “riders” to stop several environmental rules promulgated by the Administration as well as toughen vetting standards for Syrian refugees. Democrats want

to keep out any anti-Planned Parenthood provisions, fend off anti-immigrant proposals and preserve some of those very same proposed environmental regulations. A rider to stop EPA’s Waters of the United States (WOTUS) proposed rule is in the mix for inclusion in the omnibus. As you know, this rule would be very, very bad for the apartment industry and we have been working with a large coalition of real estate organizations and others to stop it.In the tax extenders bill, Democrats want extension, expansion and indexing of several refundable tax credits while Republicans want to make some of their favorite business tax provisions permanent. Moreover, Republicans want to end the 40-year-old ban on exports of domestic oil which Democrats are happy to give them in exchange for extending renewable energy tax credits, more funding for conservation and a bigger child tax credit. Depending on the conclusion of the negotiations, the price tag for the final extenders legislation could be north of $500 billion over 10 years as opposed to $85-plus billion for a simple one-year extension of all of the expiring tax provisions. As I have reported to you before, there are several extenders in play that are of great interest to the apartment industry. These have to do with expensing, energy efficiency benefits and affordable housing. All look to be in good shape for inclusion in the final package, though the jury is still out on what the term of that extension will be.The issue of gun violence, mental health screening and stricter controls on gun ownership was

THE

ByGregBrown,VicePresidentofGovernmentAffairs, NAA

Water Conservation Packetavailable

online at

www.rhcsoriverside.com

air Conditioning

heatinghot waterPlumbing

RHC-RentalOwner January 2016 1716 | RHC-RentalOwner January 2016

Q u e s t i o n s a n d A n s w e r sByToddA.Brisco,ToddA.Brisco&Associates,AProfessionalCorporation

LegalWe have a resident who wants a reasonable accommodation/modification to the

premises. However, the resident refuses to answer the question how the requested accommodation is necessary for their use and enjoyment of the apartment. The resident cites it’s a fair housing issue. The resident fails to provide any information other than it’s a fair housing issue. In addition, the resident claims her doctor refuses to verify that the disability is a physical or mental impairment that substantially limits one or more major life activities. I disagree with the resident. I know we cannot ask specifically what the disability is, because we obviously can’t, but rather how having the accommodation will

assist the resident. Is this correct?

Yes. You are correct. Under a reasonable accommodation

request, a landlord must do something more than treat residents with a disability equally. Landlords are required to reasonably accommodate the needs of handicapped residents. An accommodation request must be given if 1) the resident is disabled; 2) there is a request for an accommodation, 3) a nexus between the request and the resident’s disability and 4) the request is reasonable. There are cases that define the above elements. As for example, what is reasonable? What you think is reasonable may not be reasonable to another. In your case, you

have an obligation to ascertain the nexus between the request and the resident’s disability. More specifically, how the accommodation allows them to use the premises. I am providing the above elements as a guide. When in doubt, please contact an attorney to review a resident’s accommodation request.

Is a landlord required to have an annual termite bond in California?

Let me explain what a termite bond is first. A termite bond is a contract between an

owner/management company and a termite control company. The bond allows the owner/

Q A

QA

Next July, rental property owners come together for a grand journey featuring

the largest paddle wheeler ever built. You are invited to sail the mighty Mississippi River as we cross three states northbound to Chicago.

We’ll start out in vibrant Nashville, known as Music City, and explore the history of this city that has become home to a very American music form, country music. We’ll enjoy a performance at the legendary Grand Ole Opry with a special backstage tour behind the curtain. As July 4th approaches, we’ll step back in time to visit beautiful “Hermitage,” the historic home of Andrew Jackson, 7th President of the United States. We’ll have a personal tour of the plantation by a senior interpreter. After a wonderful couple of days in Nashville, we’ll go overland to Memphis, where the gleaming American Queen, dressed in her best July4th red, white and blue bunting, awaits.

Over the next 7 nights, we’ll journey northbound on the famed Mississippi River visiting the river towns of New Madrid, Paducah, Cape Giradeau, Chester and St. Louis. Land tours are included at all stops and features the award-winning American Queen touringthat presents all the highlights of each town visited. After the river, we’ll go overland to Springfield, Ill where, in the midst of the town’s “History Alive”month, we’ll experience the Lincoln Presidential Library, his tomb and all the historic sites around this city that were made famous by this great President. We’ll continue north and arrive in the iconic city of Chicago, perched on Lake Michigan. We’ll spend a few nights in the heart of the city, right on the scenic Chicago River. Our touring ranges from the water to the clouds as we learn about Chicago’s history, architecture and people. So join us, July 1, 2016 on a 12-night journey from Nashville to Chicago and Celebrate

America’s Birthday! See more details at StewartTours.com or call us at 866.944.3036 for more information, pricing and full tour brochure.

Member Tour - July 1-12, 2016www.StewartTours.com SDCAA Travel Program

anSDCAAPartnershipSolutionwithStewartTours

©Clewisleake|Dreamstime.com

©Gettysburg|Dreamstime.com

C e l e b r a t e A m e r i c a : A Journey on American Queen

©Americanspirit|Dreamstime.com

18 | RHC-RentalOwner January 2016

management company to pay what is essentially a retainer to a pest control company. The contract/bond specifies the frequency and type of treatments to be provided and may include retreatment and repair guaranties. There are many factors involved in whether you should or want to obtain this kind of contract. However, California law does NOT require an owner/landlord to have a termite bond.

We offer short term rentals. Some of our properties have guest suites that we make

available to residents’ friends and families. If one of the short term rentals refuse to vacate, can I remove the occupant like a hotel?

All depends. Hotels and other hotel-style facilities are

exempt from the landlord-tenant provisions of the Code of Procedure and Civil Code and are governed by the principals of common law. These facilities will have a city permit to allow short term rentals. Special taxes are paid along with an attached restaurant, central telephone services, maid, mail and room service and offer safeguarding of personal property. If your property does not fit in the above reference category, then your property must comply with the landlord tenant provisions as you

do with your regular fixed term and month to month tenants.

The answers to the above questions are general in nature. Each case has specific facts that may result in a different answer. Please consult an attorney if you need specific legal advice. Todd Brisco is an attorney who handles landlord tenant matters on behalf of landlords throughout

California. His telephone number is 714-634-2814 and address is 1900 S State College Blvd Ste 275, Anaheim Ca 92806.

Have a Question you would like to see answered here?

Please forward them to SDCAA at oglavez@sdcaa.com or Todd Brisco at tbrisco@ briscoassociates.com and Refrence the Legal Q & A RentalOwner magazine.

SDCAA Your Framework for Success

Q

A> On Site Manager> Leasing Agent> Leasing Manager> Property Manager> Assistant Manager> Resident Relations> Regional Property Manager> Asset Manager> Director of Property Management> Senior Property Manager> HR Assistant> Porter Housekeeper/Groundskeeper> Maintenance Technician > Maintenance Supervisor

Uniting Talent with Opportunitywww.sdcaa.com

To view a resume or post a job listing, visit the Career Center, under the Services tab of SDCAA.com