ReLISTO Blog

Why You Should Vote NO on Prop. 10

Voting Season is Right Around the Corner; Let’s Take a Minute to Learn About Prop. 10

Right now, the state of California is in the midst of a housing crisis. This is causing current housing units to become less affordable and less available everyday. With this problem getting worse, one may ask how California citizens can help steer California away from this crisis. The answer? By voting NO on Proposition 10 on the November ballot.

What is Prop 10?

According to the California Attorney General and BallotPedia, Proposition 10 is an initiated state statute that would repeal the Costa-Hawkins Rental Housing Act, an act that limits the use of rent control in California, thus allowing local governments to adopt their own, possibly more extreme rent control ordinances—regulations that govern how much landlords can charge tenants for renting apartments and houses.

Why Is This Bad?

Proposition 10 will cause the amount of available housing to decrease, further plunging California into its existing housing crisis. This is a huge threat to low-income families. They will struggle to find housing that they can easily afford. This will cause California’s rate of homeless occupants to grow.

Let’s take a step back. You may be wondering at this point, “How will Prop. 10 do all of these things?” If the government repeals Costa-Hawkins, then each jurisdiction in California will be allowed to set their own rules and regulations regarding rent control. This will make it acceptable for government officials in each area to set what they believe is the best solution for the housing crisis, but just because one group of people believe that they have the best solution, that doesn’t mean that it is the best solution, and this could cause tension between citizens and officials in each area of California.

By leaving these decisions up to the state government, it is assuring that each jurisdiction is held to the same standards, thus maintaining equality for renters all over the state. By keeping Costa-Hawkins in tact, it maintains an equal playing field for everyone involved, including renters, building owners, and government officials. Keeping Costa-Hawkins means that there will be one statewide jurisdiction regarding rent control. Individual counties will not be able to take advantage of the rent control  system and create unfair housing situations for others.

How Can You Help?

Voting “no” on Prop. 10 would be a great place to start. By voting “no” on Prop. 10, you are telling the government that you do not support Costa-Hawkins repealed. To put it in simpler terms, you are telling the government that you don’t want each jurisdiction to set their own laws regarding rent control. You are saying that you want there to be one, statewide law. This way, no one area can put it’s citizens in an unfavorable financial situation. By doing so, you’re assuring that California remains equal for all, and that no one will be taken advantage of.

For more information about Proposition 10, and all of the other propositions on this year’s ballot, we encourage you to read the Official Voter Information Guide. Remember to stay informed, and get out there and vote!

San Francisco’s  Pending Labor Crisis  and its Effect on the  Office Market

    By Tony  Zucker, Executive Vice President,  Dunhill Partners West, 6.29.18

Crisis?  Bubble? Denial? Unreality? Nuts? …San Francisco.      

With Facebook, Salesforce, Amazon, Google, WeWork and others  gobbling up office space based on projected revenues, it’s time  to take a closer look at the numbers.

Let’s start this off  with 29,100. That’s the estimated number of new workers in the city  of San Francisco based upon recently leased space, and soon to be completed  office buildings. This is based on tech companies budgeting 200 square feet per  worker and We work packing them in at 75 per square feet per “member.”

Continuing  with housing…$820,000. That’s the median price for a single-­‐family home in the nine county   Bay Area. In San Francisco -­‐ $1.6 million. A San Francisco condominium -­‐ $1.17 million. In  the past five years, the cost of construction has increased by 50% to $347 per square foot. A San  Francisco apartment unit costs $800,000 to build including fees. A handful of new single-­‐family homes  are constructed annually in San Francisco and most cost over $4 Million.

Now labor…$142,000. That’s  a Bay Area tech worker’s average salary. The median salary for a Facebook employee -­‐ $240,000, a Google employee  -­‐ $197,000, a Twitter employee -­‐ $162,000 and a Salesforce employee -­‐ $155,000. Compare that amount to $52,000.  That’s a skilled laborer’s average salary!

Don’t forget transportation…170,000. That’s the number of daily pick-­‐ups  in San Francisco from Uber and Lyft, which by the way, accounts for 20% of the city traffic. BART and other transit options  are packed (if not maxed out) during commute hours with parking lots filled by 8 AM. BART reports there is a total of 48,000  parking spaces and a systemwide reserved parking waitlist of 38,000 customers. In 2014, we spent an average of 56 hours in traffic,  in 2016 it increased to 82 hours. In 2018? To be determined.

Should I stay or should I go now? In 2013-­‐2014, the Bay Area gained  15,000 residents. In 2016, 24,000 residents left the Bay Area, doubling the previous year’s exodus. When asked, 46% of residents are planning  to leave the Bay Area in the “next few years”.

Now, consider this…Facebook recently executed a lease for the entire building at 250 Howard  Street (Park Tower) for 763,000 square feet. By the end of 2018, Facebook will have office space for 4,000 workers in this building and likely pay  rents averaging in the low $90’s per square foot, minimally $25 more per square foot compared to 7 or 8 years ago. As stated earlier, the median Facebook  employee’s salary is $240,000. And now some more math, 763,000 square feet multiplied by the $25 increase equals $19,075,000.  That is a big  number! But not when  you break it down. The  $19,075,000 divided by the   median salary of $240,000 equals  ONLY 79 workers! When Facebook plans  to fill the building with 4,000 workers,  and with fierce hiring competition, they are  willing to pay the high San Francisco rents to  attract talent. But can they hire enough workers?      

Will the big companies sit on vacant office space as they  struggle to hire workers?

FitBit decided not to sit on  vacancy and is now looking for a sub-­‐tenant for 187,000 square  feet. Clearly, FitBit over extended on the leasing front and is scaling  back.

WeWork, one of the five largest tenants in San Francisco, has been  called “the most over valued company in the world” by a NYU marketing professor  with a value of $20 Billion equal to Boston Properties. Boston Properties owns five  times more property than WeWork leases!

Bottom line…

A  Labor  crisis in  all fields,  especially tech  and construction (skilled  labor).

A Housing shortage  continues because of the cost and  the delays due to complex building codes,   permitting, and procedures.

A  Commute  crunch continues  due to traffic and  public transportation being  maxed out.

This does not  even consider the huge amount of  office space leased in the South Bay  and how a large percentage of those workers  may want to live as close to San Francisco as  possible.

The San Francisco office market hangs  precariously upon tenants attracting and retaining workers   in a market that is expensive and congested. A correction is  looming…sooner than later.

Sources: The San Francisco Business  Times, San Francisco Chronicle, Bay Area News, City of San Francisco,  Polaris Pacific, Jones Lang LaSalle, Cushman & Wakefield, Inrix, Hired, Wall  Street Journal, CoStar, Mercury News.

Email Tony, tonyzucker@dpwcre, who represents  office tenants exclusively.

Security Deposit Question- Anniversary Date

ReLISTO will start publishing  the questions we receive from Landlords and Residents. Today question was in regards to calculating the various interest rates one may have over a course of one year.

Question:
The interest rate in effect in June 2017 was 0.6%, this rate changed effective March 1st 2018 to 1.2%. Therefore if a tenant moved in June 1st 2017 you should calculate 9 months at the 0.6% rate and 3 months at the 1.2% rate which began on March 1st 2018.

Your calculation table shows the interest rate all calculated at the 1.2% rate which is surely incorrect…?
ReLISTO Response: 

Thank you for your questions regarding the calculation of security deposit interest using the ReLISTO calculator.  ReLISTO spent a considerable amount of time  speaking with the various experts including the SF Rent Board when developing the calculator and we covered this situation extensively.  In addition,  the answer can be found below in  The San Francisco Administrative Code Sec 49.2(g) PAYMENT OF INTEREST ON SECURITY DEPOSITS.

“The interest rate payable each year under this Chapter shall be the interest rate in effect on the tenant’s immediately preceding annual rental anniversary date for each applicable year and/or the date that the tenant vacates the unit.”

The SF Rental calculator will therefore calculate the interest once a year, based on the Anniversary date as stipulated in the Administrative Code.  The only exception to this annual calculation is when the tenant vacates the Premises at which time they are due a prorated interest. The San Francisco Rental Calculator will also calculate this mount when the user selects the box “tenant vacating”

 

Short Term Housing for People Impacted by Napa Fires

At ReLISTO our thoughts and wishes go out to the people who have been impacted by the destructive wildland fires in Napa, Sonoma and Santa Rosa.

We have seen a huge increase in calls from people who are seeking short term housing solutions as a result..  Our agents are working diligently to place folks in one of the largest San Francisco inventories of furnished properties. If you are seeking housing give us a call, agents are standing by.. If you are a landlord and wish to make your furnished housing available, submit your property to us online or contact us directly using one of these options <Contact Link> 

ReLISTO Calculators- Website Status

6/10/2017- Due to the great work of our dev team, calculator is back online and working great. Use our calculators to check the amount of interest due on security deposits, rent board fees and allowable rent increases. http://relistodev.wpengine.com/calculators/

Our new website will be a work in progress over the next week as we ensure content, flow and functionality have all been properly transferred.

 

Thank you

Eric Baird- President

6/9/2017- Users may be experiencing difficulties in reaching our calculators on both relisto.com and our many partner websites. We are working on this matter and will update when fixed. Thank you for your patience.

 

 

New website to best serve our landlords and residents

ReLISTO Launch

As the co-founder  and managing director of ReLISTO, I am very pleased to announce the launch of our new brokerage website. Over the past few years, ReLISTO has seen tremendous growth in the San Francisco area due to our commitment to our landlord clients and our skill and success in renting properties. The new relisto.com was built to meet the demands of this growth, provide more exposure to each property, simplify the process of renting, provide greater value to our landlord clients and provide more information and services to our potential residents and relocation customers.

Here are some highlights:

For Landlords:  

  • Exposure: Tools built into the site to maximize exposure our landlords listings on the internet.
  • Bigger photos
  • More videos
  • Communication: More tools for prospects to save properties, contact a trained agent, schedule a viewing and submit their applications.
  • Lead generation: Lead generation tools to capture as many prospects as possible.
  • FREE Leasing: For furnished properties, we can now charge the tenant directly for leasing fees
  • Easy sign up- We have simplified the process to bring your property to market
  • Guarantees- More guarantees for our furnished properties to give our landlords peace of mind when renting monthly
  • Online Rent Payments
  • Online Management tools

 

For Tenants:

  • Making the process easy.. We have built into the site multiple ways to contact an agent by way of phone, messaging tools, online forms and scheduling to having a back up contact for each property.
  • View online.. We take videos of almost every property. Depending on property, you can then with confidence rent sight unseen.
  • Open house calendar- Interested in seeing a property. Our calendar page has all the open house tours for your consideration
  • Online applications- No paper applications, easily fill out an application from the comport of your computer
  • Tenant resources. We have built multiple pages devoted to providing our tenants the information  they may need to move in, better understand the lease ,  secure security deposits or to make a service request
  • Online Rent Pay- We make paying rent easy. As a payment processor, we can set up payments between tenant and landlord

Relocation and Temporary Housing

As a significant part of our brokerage business, we provide companies and individuals a great deal of value when finding housing in San Francisco. Our new website allows for quicker and easier sign ups to get you into your next property more quickly.

Over the next couple of weeks we will be working out the bugs of the site and filling in data that may be missing. Please feel free to drop us a line if you have any suggestions.

We greatly appreciate your patronage and look forward to providing excellent service to all our clients and customers.

Warm Regards

Eric Baird
Co-Founder, President, Landlord Advocate and RN

Housing Rental Prices Plummeting In San Francisco? Story of The Arden

Luxury rental housing in San Francisco has been historically priced between $4.70 – $6.00 sqft depending on the particular building and unit. Advertised prices are usually higher. For instance, 2 bedroom rents at the Jasper, a new luxury building in San Francisco are as high as $6.17 sqft. By comparison, brand new condominiums at the Arden by Bosa, are being priced for as low as $3.57 sqft!

For a luxury condominium, Arden rents are super low and have both owners and agents scratching heads. Granted we as professional leasing agents are seeing some downward pressure on rents throughout the city, but not as much as we see at the Arden- A local phenomenon? We think so. This post reviews some of the features and amenities at the brand new Arden by Bosa and then we offer some “on the ground“ speculation as to why we think rents are taking such a hit.

Features and services being offered at the Arden By Bosa:
Arden
In Unit
• Tall Ceilings
• Double Pane Windows
• Hardwood Floors with Plush Carpeting in Bedrooms
• Full-Size  Washer and Dryer
• Walk-in Closets
• Energy-Efficient Heating and Air Conditioning
• Pre-Wired with USB Port and Fiber Optic Cable
• Private Tiled Balconies or Terraces
• Caesarstone Kitchen Countertops with Mosaic Tile Backsplash
• Thermador Applicances

Rents at the Arden are as low as $3.57 compared to historic prices of $4.70 to $6.50 sqft

• Sleek Modern Cabinetry
• Designer Grohe Faucets and Fixtures

Arden

In Building:
• Two Designer Lobbies with Attendants
• Hotel-Inspired Fireside Lounge
• 75′ Rooftop Lap Pool and Spa
• Double-Height Fitness Studio with His and Her Changing Rooms
• Expansive Outdoor Wood Deck with Views of the City
• Social Lounge with Entertaining Kitchen and Billiards
• Beautifully Landscaped 5th Floor Terrace
• Open-Air Grilling and Dining Area
• Outdoor Fireplace Gathering Area
• Luxurious Library Lounge
• Gated Resident Parking
• Electric Car Charging Stations
• Resident Workshop
• Pet Wash and Grooming Area
• WiFi and USB Ports Throughout all Amenity Areas
• Controlled Building, Amenity and Elevator Access
• Onsite Storage for Each Residence

Why Such Low Rental Rates at the Arden By Bosa? Such low rent rates at this property are in part due to the following:
• Great deal of rental inventory on market- New buildings are  creating  a short term surplus of units.
• Surrounding the Arden is still a construction zone
o Fence around children’s park- Entry not allowed
o Dog run and park still only dirt.
o Construction materials around building
• Workers in building still fixing and repairing
• Supermarket (Safeway) which is approx. 3 blocks away the closet store.
• Google Maps and Walk Score contain inaccuracies with regard to specific area
Unit 800 The Arden
Will this last? No! Prudent renters who are seeking a superior property in an area of the city filled with parks, public walkways, stores and restaurants but close to transportation will jump at this opportunity. Construction will end soon and parks will be opening shortly.

ReLISTO has over 10 properties currently for rent at the Arden. We have already rented a good deal of inventory at this location and have been very successful in achieving very competitive rents for both Tenant and Landlord in a large part due to our wide reaching marketing campaign for the Arden as well as our very attractive incentives being offered for this property. See all of our units at the Arden including floor plans, videos and virtual tours by going to ReLISTO Team Arden Page.  Call one of our agents to ask about our move in specials.

ReLISTO is a licensed Real Estate Brokerage, specializing in the renting and leasing of apartments, condominiums, homes, lofts and executive furnished rentals. We have one of the largest inventories of rental housing in San Francisco. Contact our offices at 415-236-6116 to lease or list a property!

 

 

Lottery Results In!

The Lottery results for Stevenson lofts are posted below. ReLISTO starting at the top of the list will be contacting 10 winners at a time. 100 of 356 tickets were pulled for the apartments at Stevenson Lofts. Once called each applicant has multiple days to submit application and qualify. If your number does not appear on the final lottery list, it means you were not selected.

As of 2-20-16 only the first 10 have been called.

Click Here: Stevensons Lofts BMR Final Rank Lottery Results 2-1-16

Using SF Rental Calculator for 34 Year Tenancy

SFGATE.com posted an article about artist David Brenkus a tenant who was recently evicted from a 34 year residency at 53 Walter Street by Dr. Paras Harshawat and his wife Roopam. David was paying $735/month for the last 34 years and seemingly had never received a rent increase.

Calculating Rent Increases in SF can be challenging for both tenants and owners alike so its not surprising that 34 years went by without one. To raise rent in SF a landlord must accurately, to the penny calculate the allowed annual percentage, use the proper anniversary date and account for all Banked increase amounts to name just a few variables. Any mistakes can be risky since the Rent Board can reverse the whole rent increase if any part of the calculation is incorrect. Luckily now there is a tool for both tenants and landlords to make these calculations easy. In addition to allowable rent increases the SF Rental Calculator will calculate security deposit increases and rent board fees.

Using the situation at 53 Walter Street* San Francisco Ca we used the SF Rental Calculator to calculate 1) Allowable Rent 2) Security Deposit Interest and 3) Rent Board Fee Reimbursements

  • If Dr. Paras Harshawat and his wife Roopam had decided to legally raise Davids rent as of February 1, 2016, what could they had raised it to?
  • Based on a January 1, 1982 tenancy start, rent could have been raised 82.4% to $1,354.59 on Feb 1, 2016. 735 RENT

  • David upon leaving the apartment should have received interest on the security deposit money he had given to his landlord.
  • Assuming security was also $735 and Move In was January 1, 1982, David was eligible for a $880.53 reimbursement from the owner.
    board fee

  • Dr. Paras Harshawat and his wife Roopam should have also received from David reimbursement for Rent Board Fees
  • Assuming Move In was January 1, 1982, Dr Paras Harshawat and his wife Roopam were eligible for a $259.50 reimbursement from David
    board fee

    The SF Rental Calculators were created for landlords, tenants and property managers to freely and easily use, increasing transparency in what can be a very cumbersome process and set of calculations. The SF Rental Calculators are regularly updated and checked for accuracy.

    *Please note that not all the variables for the situation at 53 Walter were fully known and as such some assumptions were made to have the ability to make calculations.