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Civic Collaboration
by Janan New
As we look back on another year, San Francisco property owners have much to reflect on. Locally, we have enjoyed a strong rental housing market, low vacancy rates and long lines for rental applications at open houses. We have worked to build and maintain a constructive working relationship with the San Francisco Board of Supervisors and the mayor’s office, carefully weighed in on the November ballot, and supported many successful campaigns and propositions that will be beneficial to our industry and to our city as a whole in the coming years.
Much of the strength of San Francisco’s rental market can be attributed to one move: keeping Twitter in San Francisco. We need to thank our former and current mayor and Board of Supervisors for their forward thinking and courageous moves to keep this important corporation headquartered in San Francisco. The tax breaks given to keep Twitter’s corporate headquarters in San Francisco has kept the local job market strong, and has had the effect of attracting more start-ups and tech companies to San Francisco. Fortunately for all property owners, the young adults that these companies employ want to live in a unique urban environment like San Francisco, and their tech jobs appear to be sustaining a strong rental housing market.
Having lived through the first dot-com start-up era and seen the damage first hand, this real estate cycle seems very different. Perhaps as an industry we have learned from some of the mistakes made during the last decade. This cycle of economic growth is restrained, rather than chaotic and out of control. The last tech-fueled real estate boom included a push to buy property, but the previous generation’s desire for homeownership seems not to have been instilled in Generation Y. This generation wants to be comfortable in beautiful, green buildings that are close to bike lanes, public transportation and shuttle services. And they want to rent.
This is in stark contrast to the real estate boom of the past. Young people were moving to San Francisco with a desire to own property. The affordable properties were often found in the handsome 2-4-unit Victorians that line our streets. The subsequent purchases, Ellis-Act and owner-move-in evictions that followed resulted in complicated, expensive and onerous restrictions being put on rental housing owners, as well as the new generation of TIC and condominium owners.
As a result, our industry has spent the last 10 years at city hall and in court defending the rights of these owners and safeguarding their ability to occupy the property they own.
So many laws were passed during this period that, frankly, there are not many more legal ways for the tenant advocates to legislate. There are not an abundance of laws being promoted by left-wing activists at this time. They seem to have exhausted their resources and ability to legally punish rental owners. Plus, a lower homeownership rate amongst a new wave of well-paid tech employees has lead to lower rates of eviction.
With a cordial relationship with the board of supervisors, mayor and many city agencies, the future for the rental housing industry in San Francisco appears bright. A spirit of cooperation between the mayor and the Board of Supervisors bodes well for all San Franciscans. The philosophy of team rivalry has been replaced by team problem solving. Having rental owners participate in the problem solving is the key to success for all tenants and owners. We are hopeful that this year and the years to come will reverse the punitive laws passed before, and will create a more balanced and workable housing policy for years to come.
Looking Ahead
The San Francisco Apartment Association has a lot of projects in the works for the coming year. SFAA has spent the past year working in accordance with the San Francisco Department of Public Health, conducting research on tobacco smoke and a tobacco smoke disclosure policy in apartment buildings that would be similar to current disclosures regarding mold, lead-based paint or asbestos.
The SFAA is also working with the San Francisco Human Services Agency to systematize an industry response to natural disasters that render an apartment building uninhabitable. Independent property owners and management companies are encouraged to contact SFAA’s Charley Goss at 415-255-2288 if they would consider renting a vacant apartment to a displaced tenant under a “Good Samaritan Tenancy” at the tenant’s old rent controlled rate. You do not need to currently have a vacancy; adding yourself to the SFAA database simply means that you are interested in helping house displaced tenants and that you may be contacted in the future to consider housing a group of tenants when an apartment building or unit is rendered uninhabitable by fire or earthquake.
In sum, SFAA knows how hard it can be to be a landlord in San Francisco. As the largest local advocacy group for landlords, SFAA’s membership continues to grow, encompassing individuals, families and management companies who know banding together for mutual support helps us all. SFAA knows the industry and is dedicated to helping you, both with day-to-day property management advice and lobbying at City Hall. Our number-one concern is and always will be protecting the rights of landlords in San Francisco. The staff at SFAA works hard to assist members with good and informative material. We are here to give you the options—the pros and cons of any tenant situation—while keeping tabs on what is going on with city government and agencies.
Managing property in San Francisco can be rewarding but difficult. That is why we are committed to working with our members in facilitating the positive resolution of tenant issues and disputes. We are also here to provide the necessary referrals to address more specialized areas of property management. Instead of becoming overwhelmed with tenant issues, legislation and keeping up with requirements, SFAA members can turn to the association staff, along with the SF Apartment Magazine, as a trustworthy resource in 2012 and years to come.
Janan New is the executive director of SFAA and can be contacted at 415-255-2288.