By Dwight Kay, Founder and CEO, Kay Properties

Key Highlights:

• DSTs can help investors successfully complete a 1031 exchange
• DSTs can potentially provide investors greater diversification
• DSTs can help investors replace debt for their 1031 exchange
• DSTs can provide investors a back-up option for a 1031 exchange

Regardless of what economic trends are taking place, Delaware Statutory Trusts provide investors a number timeless benefits for their 1031 Exchanges including deferring capital gains taxes, eliminating the headaches of active management (think the Three T’s: tenants, toilets, and trash), the ability to create a more diversified* portfolio, and provide investors the potential for consistent and durable income streams**.

By Laura Hertz, Loan Officer, CSMC Mortgage

If you are thinking of buying a home or income property, now is still a great time to purchase. You have the chance to get into the market before rates drop more and there is even less inventory. Once you purchase your home, you can always refinance if rates drop later.

Recently, we have seen lower mortgage rates which means greater purchasing power for you. The same mortgage payment in today’s market can buy about 15 percent more property value compared to just three months ago. This is obviously beneficial, and it is expected that rates will continue to drop.

By Tracey Merrill, Esq., Partner, Kimball, Tirey & St. John LLP      

The legislative session for 2022 has come to a close. Information about the new California laws for 2023, compliance dates and other trends which will affect California residential landlords can be found below. For your convenience, the new laws and trends are divided into five sections: Landlord/Tenant, Compliance Updates and Language Trends, Affordable Housing, Fair Housing and the Americans With Disabilities Act (ADA) updates, and Collections.

“At Livable, we want to keep residents and property owners up to date on issues that impact everyone in the rental market. We sympathize with tenants having financial issues, especially in the current inflationary climate. But we also recognize that housing providers are investors. Livable helps protect the health of those investments while educating residents on conservation, which saves everyone money and helps the planet.” – Livable CEO Daniel Sharabi

The White House recently proposed a comprehensive plan to address the affordable housing crisis in the country. The proposal, which focuses on rental rights, aims to ensure that renters are treated fairly and that the rental market works in the best interests of everyone involved. The proposal has faced significant pushback from the industry, as some believe it would impede the development of new housing and further damage the market, driving up rental prices and limiting access. But the White House remains committed to the proposal and believes that it will help to create a fairer and more just rental market.

Calling All Property Owners: It is Not Just for Apartments, But Single-Family Homes and Condominiums Will Also be Adversely Impacted

By Daniel Yukelson, Executive Director

The Latest Threat to Our Livelihoods and Retirement

California’s rental housing providers are again under attack by a well-known and controversial adversary, Michael Weinstein, the President of the AIDS Healthcare Foundation. Called the “Justice for Renters Act,” this proposed, November 2024 statewide ballot initiative would eliminate the protections rental housing providers have today under the Costa-Hawkins Rental Housing Act (Costa-Hawkins).

By Kari Negri, Chief Executive Officer, SKY Properties, Inc.

• Dear Kari, what can I do to improve employee performance?

In today’s social media-driven world, TikTok is the place to find all the latest trends. From dance moves, songs, pranks, lifestyle advice – you name it; it is all on this platform. One of the TikTok trends many Gen-Zs and Millennials have adopted is “Quiet Quitting,” formerly known as employee disengagement. As explained in many viral TikTok videos, it refers to when employees do not outright quit their job, but instead, quit “the idea” of doing their best or going beyond the very basics of their job position. The old adage that hard work equals reward is something most of the younger generation of employees strongly disagree with.

By Marc Frenkiel

Affordable housing refers to housing that costs less than 30% of a household’s income. Harvard University and Habitat for Humanity’s 2022 State of the Nation’s Housing report shows 30% of all U.S. households in 2020 had rent or mortgage payments exceeding 30% of their household income —a 1.5% increase from the year prior. The research also shows that more than 1 in 7 households paid over half of their income on housing in 2020. With home prices and rents rising even more significantly from 2021 to 2022, housing unaffordability has undoubtedly worsened in the past two years since the report was written.

RV and boat sales are on the rise. In fact, they have been for years, quietly fueling an increase in suitable storage facilities. The pandemic further contributed to a surge in RV and boat purchases, which in turn caused a dramatic spike in the demand for storage. Today, more people are using RV and boat storage facilities than at any point since 2012 — and quite possibly at any point on record. But is the industry ready to accommodate the sudden surge?

The Omnibus appropriations package has been a topic of discussion in the news for several months. The bill, which has passed both the House of Representatives and Senate is now on its way to the President for his signature. There are several elements of interest to housing providers within this legislation which are summarized below.

Omnibus Federal Funding Bill is “Mixed Bag” for Rental Housing Industry

The Omnibus Appropriations Package passed by Congress is a $1.7 trillion fiscal 2023 government funding package (the Omnibus). The National Apartment Association (NAA) achieved several victories in this legislation, but as often happens with massive spending packages like this, we did not get everything we wanted.

By Jon Coupal, Howard Jarvis Taxpayers Association

I sincerely hope that readers aren’t turned off by the title of this column. While most taxpayers aren’t directly responsible for paying unemployment insurance taxes, the truth is we all pay and, in California, we pay a great deal more than we should.

Last week I received an email from a dentist who operates a small dental office and is required to pay the unemployment insurance tax and, sadly, is paying much more than he should because our unemployment insurance program is insolvent. Like so many other measurements of California’s performance relative to other states, our businesses – both large and small – are paying a penalty for the incompetence of our elected officials and bureaucrats. Here’s what taxpayers should know about unemployment insurance.