Message from the Board President: January 2025
Message from Our New Board President
Thank you for the opportunity to be your 2025 AAGLA Board President. As a property manager, I work with small, mom-and-pop owners. Like many of you, I am a mom-and-pop owner with two small properties. Each and every one of us has worked hard to build our small rental property businesses. From working through soft story retrofits, COVID, difficult rent collections for years, inadequate rent increases, a new oppressive regulatory environment looking to criminalize property owners, and more, we have been put through the ringer but are still standing. The entrepreneurial spirit that brought us into this business is the same spirit that allows us to thrive despite the obstacles we face.
As entrepreneurs, we understand that being residential property owners is not for the faint of heart. Through our stewardship, we collect rents and pay bills. The bills we pay stimulates our local communities. Property taxes go to pay for our local schools and teacher salaries. Local plumbers, electricians, handyman, contractors and many other types of local vendors depend on us to put food on their tables. Despite all the noise, we are truly the financial powerhouses of our communities.
This issue of having potential exposure to liabilities that can sometimes exceed the values of our properties and annual topline revenues is a major concern. One frivolous lawsuit, a mold complaint, contested eviction, frivolous anti-harassment complaint, etc. can be financially devastating. When you take into account a six unit building under rent control may only collect $6,000 a month in rents which is just $72,000 annually, how can an owner afford a prolonged eviction which could cost $30,000? This is over 40% of the topline revenue of the business before expenses. Show me a politician, tenant rights attorney, or even resident, who would be entrepreneurial enough to face these types of odds. Yet hundreds of our members are facing challenges like these every day and are boldly facing them head-on. As owners, we don’t have the luxury of victimhood. A victimhood mentality is antithetical to the entrepreneurial spirit that drives a property owner.
Sadly, our local and state legislators make laws completely missing the economic element of our businesses and the entrepreneurial spirit of our members. They do not see the years of financial sacrifices, kindness shown to elderly tenants when skipping a rent increase, the late night emergency calls or the hours spent dealing with someone who is fundamentally dishonest. Legislators don’t understand that owners have only limited cash reserves to make capital improvements when needed.
Almost every functional element of a building will turn over in 10 years. For example, a new 40 gallon water heater cost can cost $1500 and 100 gallon water heater $6500. A new roof can range from $20,000 to $50,000 for a small property. Replacing the heating element can cost between $2,500 to $6500 per unit. Balcony repairs every six years can cost $2500 for the report and over $30,000 to $75,000 for repairs on a small property. This does not include main sewer line issues which can happen at any due to tree roots. This can cost $12,000 - $24,000 for a small property. These are just a few of the unexpected costs that come to mind. What some people view as profits in an owner,s bank account, is really cash stored away to cover these costs that can be incurred without notice.
Legislators sometimes forget that property ownership is a job. It is hard work when you factor legal risk, tenant risk, property risk, insurance risk along with customer service. Good owners are not in the eviction or tenant harassment business. Good owners have their economic house in order. Good owners run clean ships and hold problem tenants accountable for their actions which benefits all tenants. Good owners reinvest bottom-line dollars in their properties and communities.
As your new President, it is my goal to highlighting the entrepreneurial spirit of our members and share the economic truths of property ownership. My request to you in this upcoming year, is to make your voice known and heard. Get involved. Show up to City Council meetings where you live or own investment properties. When AAGLA emails a “Red Alert,” don’t just ignore the important notice and put it into your trash bin. Open it, read it and take action. If each and every member got involved and told their personal stories, I am certain we could see a substantial change in the way our industry is viewed.
Matt Williams is the Principal of Williams Real Estate Advisors, Inc., a full-service property management company that has approximately $150,000,000 of multifamily assets under management throughout Southern California. While in college he was hired by Capmark Financial Group as an analyst. During the year he was there he analyzed $350,000,000 (7,500 apartment units) worth of multi-family loan requests on property financials for lenders such as Fannie Mae, Freddie Mac and Life Companies. In 2008 he was promoted to an Assistant Vice-President and transitioned out of commercial mortgage banking to apartment brokerage as Real Estate Investment Advisor with the Kitty Wallace Team at Sperry Van Ness. From 2009-2011 he did free-lance consulting work for a local developer. And, then he started his current Williams Real Estate Advisors, Inc. which today currently manages nearly 150 properties. His office is in Santa Monica. In 2021, Matt joined the Board of Directors of the Apartment Association of Greater Los Angeles and became the Board President beginning in 2025.