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Our goal is to bring value to you and your investment. Through data, research, and op-eds, we strive to inform on all the latest real estate news throughout the Bay Area.
The Bay Area
Like many other markets nationwide, San Francisco’s Bay Area has seen a rebound in leasing activity in recent months. This surge in demand has helped the region recover from its roll as one of the worst-performing areas nationwide during the pandemic downturn in 2020. Apartment occupancy reached 96.8% in Oakland, 96.6% in San Jose, and 95.7% in San Francisco in September. The annual occupancy increase in San Francisco was one of the strongest nationwide at 310 bps, tied with Miami as the most progress among the nation’s largest 50 apartment markets. San Jose also logged a notable increase at 250 bps. Oakland – which did not lose as much ground in 2020 as the other two Bay Area markets – logged an occupancy upturn of 130 bps.
Rent growth has returned to the Bay Area, after seeing devastating price cuts just one year ago. San Jose saw the biggest increase, of 8.3% in the past year. Oakland logged rent growth of 6.6%, while San Francisco operators pushed rents an average of 4.6%. While each of these increases were notably behind the national average, they are a welcome sight after price declines that got as deep as 21% in San Francisco at its worst moment in February 2021. Annual declines were as bad as 16% in San Jose and bottomed out at 7% in Oakland.
For more information on the apartment markets in Northern California and the Pacific Northwest, including forecasts, watch the webcast Market Intelligence – Northern California/Pacific Northwest Region
Income Property Specialists Recognized with Prestigious AMO® Accreditation by IREM®
AMO accreditation sets the standard for property management excellence. Becoming an AMO demonstrates to our employees, clients and investors, the high quality and professional service IPS provides. ”
CUPERTINO, CA, UNITED STATES, November 17, 2021 /EINPresswire.com/ — Income Property Specialists (IPS), a 37-year-old company specializing in value-added property management for California apartment properties, recently joined a premier group of real estate management companies that have met the rigorous requirements to receive AMO® (ACCREDITED MANAGEMENT ORGANIZATION) distinction from the Institute of Real Estate Management (IREM®).
“The AMO accreditation sets the standard for property management excellence,” said Clay Llewellyn, chief operating officer of Income Property Specialists. “Becoming an AMO demonstrates to our employees, clients and investors, the high quality and professional service IPS provides.”
AMOs demonstrate strong financial performance, outstanding leadership, and adhere to a Code of Professional Ethics strictly enforced by IREM to maintain integrity beyond reproach. Accreditation as an AMO requires firms to follow best practices in real estate management, demonstrating that they meet standards and functions related to operations and service. Property owners can be assured that an AMO will put their interests first.
Founded in 1984, Income Property Specialists’ management team brings over 85 years of combined experience in real estate investing, property management, and asset appreciation. As value-added real estate consultants, IPS works closely as a trusted partner with institutional investors and high-net-worth individuals to drive profitability and return on investment, while providing their clients with professional advice and peace of mind. IPS is also a pioneer in the resurgence of real estate syndication, providing fractional ownership opportunities in high-value properties to accredited investors.
“While our most important rewards are the results we are able to achieve for our clients, this AMO accreditation is further recognition that we are a leader amongst property management firms and that our clients can rest assured that the success of their properties is always foremost in our recommendations and actions,” said Robert Salwasser, founder & president of Income Property Specialists. For more information visit www.incomepropertyspecialists.com or call 408-446-0848.
Shawn Hansen
Income Property Specialists
+1 408-891-0909
shansen@incomepropertyspecialists.com
Addition to the Income Property Specialists Portfolio
I’m excited to announce another client and property addition to the Income Property Specialists portfolio of apartments in the San Jose market. This beautiful 11 unit complex was recently purchased by an investor new to apartments and requested IPS to manage their recent acquisition. Using the breadth, knowledge, and experience of our management team, we offer a full spectrum of services designed to optimize the performance of your apartment portfolio. Contact me today to learn more!
Apartment complex in San Jose market
US Rents are Climbing Back to Pre-Pandemic Levels…But Not In the Bay Area
The coronavirus pandemic had a swift and negative effect on market rent in major metros throughout 2020, but prices are slowly returning to pre-pandemic levels. Apartment List’s recent National Index (https://www.apartmentlist.com/research/national-rent-data) reports a 0.1% increase in rent prices from December to January.Momentum is shifting across the country, but data shows that the Bay Area won’t be along for the ride.
Yardi Matrix reports that since January 2020, year-over-year multifamily rent growth has dropped 13% in San Jose and 27% in San Francisco. Seattle, New York and Boston are the only other metros to see a similar drop nationwide, but anticipate rent increases by year’s end. The Bay Area is the ONLY market that projects continued rent declines. The most pessimistic report claims San Jose could to see a drop through December 2021, while San Francisco’s decreases last through 2022.
Not all hope is lost. San Francisco appears to be at the bottom of the city’s price correction. In January, rents in San Francisco fell by just 0.4 percent month-over-month compared to an average monthly decline of 3.4 percent from April to December 2020. Although San Francisco rents have yet to increase since the start of the pandemic, the leveling off indicates that the city’s market may soon turn the corner.
Concessions are through the roof as landlords try to reduce vacancies. Landlords are offering months of free rent and other amenities for new and continuing tenants. These discounts average $3,500 in San Jose and $3,600 in San Francisco per apartment.
Remote work continues to be the norm for tech workers and surrounding areas are reaping the benefits. In Sacramento, effective asking rents are up over 8% annually. Zumper reports that East Bay communities like Concord, Dublin, and Livermore continue to see an influx of renters seeking cheaper living and more space. Their rental rates were some of the most stable in 2020.
Slated through Summer: California Extends Eviction Moratorium (again) to June 2021
After weeks of negotiation to end 2020, Governor Gavin Newsom will sign Senate Bill (SB) 91 and extend California’s eviction moratorium through June 30th, 2021. The financial implications of this extension are more significant than any from the previous year.
Landlords can choose whether or not to participate in the rental relief program brought about by the bill. Complying owners will receive 80% of any rent owed from April 1, 2020 to March 31, 2021 by COVID-impacted tenants. In exchange, owners must forgive the remaining 20% entirely. It’s the most support landlord’s have received since the pandemic started, but still may not be enough for mom-and-pop owners to cover expenses after not receiving rent for nearly a year.
If landlords choose to opt-out, it creates much more uncertainty. Low-income tenants can still apply to receive 25% of their rent owed from the state to meet the threshold set by AB 3088. Said tenants cannot make more than 130% of their county’s median income OR $100,000, depending on the county. This number rises with larger households.
An opt-out opens the door to collect unpaid rent recoverable as consumer debt in small claims court once SB 91 is lifted. Whether it’s more or less than 80% of what is owed is unknown. It could provide the opportunity for owners to go after more of what they deserve, but also induces more waiting and relies on the unpredictability of a judge’s ruling.
Other provisions of the law include:
- Owners cannot use a tenant’s security deposit to cover their rental debt
- Late fees cannot be enforced to a tenant who has submitted a declaration of financial distress
- Landlords cannot discriminate in renting to a tenant with prior COVID-19 rental debt
- Landlords must send a notice about changes in the law to any tenant who owes COVID rent by February 28th
- Landlords must show proof of a “good-faith” effort to secure rental assistance for their burdened tenants before attempting to collect any coronavirus-rent owed
California legislature will use the $2.6 billion dollars in federal stimulus from the last COVID rent relief package to accommodate pandemic-burdened owners throughout the state. $1.5 billion will go to the state directly, while the remaining $1.1 billion will go to counties and cities with at least 200,000 residents. Counties will distribute said funds at their own discretion, similar to the CARES Act. It remains to be seen whether this total is enough, and what percentage of landlords will accept the aid. The State Rental Assistance Program will start accepting applications in mid-March.
Check out this FOX KTVU 2 news article for statements from California senators and other housing officials regarding SB 91 and the continuation of the eviction moratorium.
Rush for Rent Relief: Will 2021 Federal Aid fix Bay Area Housing?