AAGLA Executive Director Message: It Just Might Take a Village to Own Rental Housing

Like the Sonny and Cher song goes…” I’ve got you babe!”  You got us and we got you to put it in more general terms.  We are in “this” together as if we are “one for all and all for one” as is the moto of the Three Musketeers.  This is how we must be.  Don’t forget it.

Somedays, perhaps most days, I wonder why I need this.  That is, “this” seemingly constant threats and attacks against those of us mostly of limited means merely being waged for the sacrifices we have made to invest in an income property or two to house others who might live in the communities we ourselves live in or live nearby.  For covering nearly 200 local jurisdictions and while keeping in eye on the goings-on at our state Capitol, our “not so big” apartment association can and does take on battles to protect from harm those who we care the most about, our members.

But we cannot be effective unless we have numbers and are all on the same page…at all times.  Often, we ask our members to become engaged, and more often than not, we see little if any reaction.  Why is that? Our seemingly frequent “Red Alert” emails most weeks seek to call you into action, but often, by only a handful of our approximately 10,000 members, we get a response in the form of an email or letter or phone call to public officials, and almost never a letter to a local newspaper or financial support for one of our political action committees or Legal Fund.  I can only assume that you assume someone else will do the hard work for you, and that’s a shame.

Often, I am sought-out by the media asking me for my opinion on proposed regulations and the sort.  When contacted, I am often asked for names of housing providers and stories about them pertaining to one or more issues being covered by a reporter.  Finding willing participants, for me, has proven challenging.  I get it, many of you may be concerned about your name being in the newspaper, particularly if you are involved in an unlawful detainer at the time and trying to evict your tenant, or you may feel like you have stage fright and do not want to stand in front of a camera with a microphone being shoved below your chin.  I get it.  But, please, when the need arises to tell “our” side of the story through your personal experiences, try stepping outside of your comfort zone and help us.  On the other hand, the tenants freely offer their stories always of grave financial distress to all forms of media and in large numbers – they are beating us badly in the media and public eye.  I believe “we” have far more compelling stories we can tell, but we are silent.  No one likes a cheat, deadbeat, or the like, and many of you have told me about your tenants who have been seemingly or actually committing fraud by “gaming” the pandemic related regulations I now call “Moratoriumism.”  Let’s be loud and bold.

What I find most appalling, and while we here at the Apartment Association of Greater Los Angeles, a non-profit trade association that exists for the sole purpose of protecting, educating, and uplifting its members, is the drain on our resources by a few dozen members that do not adequately declare their units.  In these situations, I wonder if these same owners or property managers would also shortchange the City of Hope or their church or synagogue?  One recent encounter involved a large, 3,000 unit plus, property management firm that had declared for several years (or even far longer) just one (yes, “uno”) unit.  Our Association’s Bylaws require our members to report accurate unit counts and despite several attempts by me to rectify the situation, such a material discrepancy can and often results in expulsion.  I get it, declaring a unit can cost $3.50 a year or about 25-cents per unit per month, and that can add up.  But, 3,000-plus versus 1, is far too large of a discrepancy to leave unnoticed, and it irked me when I realized this corporate behemoth had been declaring fewer units and at the same time taxing our resources and services than one of our many retired members that own and declare a duplex or fourplex.  At the end of the day, we (each of us) must be committed to doing business honestly because one infraction in the news by a so-called “slumlord” or other negative describer hurts us all – it’s the less than one percent of us “bad actors” that gets the 100% of us every time.  It only takes just one.  Notice that I have specifically not named the major “unit-cheat” and now former member and the few others I have contacted and expelled, but if you are ever considering hiring on a property manager, check with me and I will tell you if you are considering a manager that is a “unit cheat.”  If they will cheat us, imagine how they will manage your property.  Buyer beware!

A Few Comments on the People’s Republic of Santa Monica

Now, about sticking together or the “one for all and all for one” thing.  Let me tell you a little bit about what went “down” recently in the City of Santa Monica.  Among other horrendous things the City of Santa Monica sought to “bestow” on housing providers is a reduction of the allowable rent increase limit from 6% to just 3%, or a 50% reduction at a time inflation is at 9%, we are about to fall into the recession abyss, and when gasoline was more than $6.00 per gallon (although more recently at the time of this writing, had dropped about $0.50 or $0.60 per gallon).  To make matters worse, Santa Monica’s City Council proposed reducing the maximum increase of $140 per month to just $70 per month, or by 50% again, which only serves to protect the wealthiest renters in the city that can afford to pay more than about $2,300 per month on up to, in some cases, $10,000 to $15,000 per month for ocean view apartments on Ocean Avenue.

We, our Association, of course stood firm by steadfastly opposing the absurd proposal.  Housing providers did not cause inflation, so why did they deserve to have the rug pulled out from underneath them.  Following more than two years of moratoriums on evictions and rent increases, challenging rent collections, renters working from home and running up utility bills, etc., etc., in the face of severe inflationary pressures, the City of Santa Monica decided to pull the bit of relief, albeit just two-thirds of the 9% relief needed and change the rules.  It shows only the disdain that the City of Santa Monica has for those of us in the rental housing business and how willing the city is to signal favoritism to the city’s renters who, without us, would not have a place to live.

Then, here comes Santa Monica City Councilmember Negrete, who in the spirt of compromise, offers to “split the baby.”  At some point past midnight, with only the few “hangers on” able to stay up that late and stick around City Council chambers, she suggested that certain owners charging below median rents forgo rent increases while the rest of rental property owners with higher rents get the 6% increase then allowed under the existing ordinance.  In the City of Santa Monica, there are far more of the “haves’ than the “have nots” in terms of above media rents, and as a result, many of “we” housing providers rallied for the Ms. Negrete’s proposal, split the position originally set by “us,” and potentially leaving struggling owners with the lowest rents, out in the cold. 

As I said, I believe in the principles of the Three Musketeers – “all for one and one for all.”  So, I was never in favor of giving an inch on either the “split the baby” or the original City Council “cut it in half” proposal.  No way!  Nevertheless, several owners supported compromise despite the impacts on others less fortunate.  In the end, it appears that Councilmember Negrete has torpedoed her proposal, so its all for “not” at this point.  As I write this, the meeting is tomorrow, and I think I know what will happen, and that is, owners will not be given an inch. I hope I am wrong – and I assure you that my comments were not updated following the meeting.  I am sticking to my opinion on this.

Nevertheless, one apparent member who I had never heard from before…declares six units for one of dozens of properties owned (a “unit cheat”) contacted me for help with the Santa Monica matter and support for Councilmember Negrete’s proposal.  As it became likely that Councilmember Negrete’s proposal was headed for the abyss, this underdeclared unit member who I had never heard from prior to this issue and who has never supported any of our advocacy or legal endeavors, had the audacity to blame “it all” on us for taking our hardline position.  Truth be told, Councilmember Negrete’s proposal, while well intentioned was a “losing proposition” from the beginning and the many rental property owners who jumped on the bandwagon in support only led to its demise.  Look, the bottom line here is that I understand that something can often be better than nothing, but in this case, noting was being offered up with something, and I feel that this Association represents all property owners and not just some property owners, so there’s no way we are leaving some, the most rent challenged owners, twisting out there in the wind.  We play to win for all, not just a few of the lucky ones.

A Few Parting Comments – Enough of That!

There would not be an Apartment Association of Greater Los Angeles without its members. While some may not appreciate my pushing and prodding to be more involved and support us more financially, I understand that everyone is busy.  But, as a property owner myself, a contributor to our political action committees and Legal Fund, I am passionate about all this stuff and angry about the too frequent regulatory proposals we get hit with. I can be aggressive and I can be obtuse, but I am trying to get the job done the best way I know how.

So, before I forget, thank you for your loyalty and your long-term membership in the Apartment Association of Greater Los Angeles.  It is only with the support we receive from members like you that we have the resources to fight on.  I hope that I can encourage you to respond to our alerts asking members and property owners like you to write to your City Councils and appear at their meetings to voice opposition and to explain how you may be harmed by some new proposals proposals – we need you and others to tell your personal stories.  Don’t let “us” down. While we face a tough time winning, we sometimes do win and with more of your support we will most often win.