President's Message

Plans for the Future

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Late summer and early fall are typically busy times for us landlords. When you’re busy building your rental business or maintaining a smooth running business, it doesn’t give you a lot of time to think about the future. For those of us who have spent their working careers doing what we do and are at the point of finally being able to slow down a little, either because of retiring out of the business or turning over day-to-day management to our children or property manager, you have the luxury of reducing your stress levels and thinking about the future.

The future and how you can support the industry that sup ported you and your family is what I’d like to talk to you about. To the point, I want you to consider AACSC in your estate planning. As we go through life, we are supported in a number of ways. We get support from family, church, close friends and schools to name a few. Many of us also try to help the less fortunate through charitable giving.

If you worked for a major company like Boeing or GE, you’d probably never think about adding them to your list of beneficiaries and donating to them after you retire. When you are in our business, organizations like AACSC work tirelessly to help you succeed in your real estate business asking nothing in return—no share of your monthly income or profits from a property sale. You send AACSC dues that are used to provide you with services or to fight legislative battles for your benefit. That fight is ongoing. AACSC has been around for over 90 years.

AACSC has been helping landlords long before any of us got into the business and will be doing the same long after we’re gone. If you decide to leave your property to your children, to the church or to anyone your care about, they will be the ones needing AACSC’s help. AACSC could really use your help. Your beneficiaries managing your property will need our help. Can we count on you?

Trade Show Plans

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Summer is sailing by. I hope everyone is enjoying it and has taken some time off. It’s about to get busy again with people moving around for new jobs, college kids getting settled in for the new school year, etc. Make sure that you mark your calendars for AACSC’s 49th Annual Trade Show on Thursday, September 28th at the Long Beach Convention Center (Arena). This is such an important event for our members and prospective members. Make a plan now for what you want to accomplish at the Trade Show. Here are a few ideas:

  1. Use the Trade Show as a recruiting tool and invite your landlord and vendor friends that aren’t yet members to attend with you. AACSC will have an area set up with staff that can talk to your friends about the importance of membership. Either drop by or call in advance to make an appointment so that you can introduce your friends to Executive Director Johanna Cunningham and her staff.
  2. Use the Trade Show to meet new vendors and to say hello to the vendors you currently work with. Last year we recruited vendors with new, cutting-edge products to help you up your game. Check our website to see who’s going to have a display and select the interesting ones for your first few stops.
  3. Use the Trade Show to educate yourself on important issues. AACSC makes sure that it schedules speakers for topics that will be of great importance to landlords. Review the speakers and topics ahead of time so that you won’t be late for their scheduled talks.
  4. Attend the Trade Show’s 22nd Saluting Our Stars Awards Breakfast. Every year AACSC honors property management staff members who have made a tremendous effort to excel in their profession. See who the top property management firms are and the individuals that work for them. The breakfast is open to all AACSC members and guests who are interested in knowing who the players are in our industry and want to use this great opportunity to do some networking. Make your reservation for the Awards Breakfast today!


A quick note about education: I’ve commented on this subject for a while now, but I feel that I need to keep driving home the point that we as landlords need to be better and more educated about our business that ever before. AACSC offers classes throughout the year on topics that are extremely important. For example, don’t make a foolish mistake by doing something inadvertent like violating a fair housing law. That could easily cost you your business. Make a commitment to yourself to take one or two different classes every year. It’s pretty cheap insurance and I’ll bet you’ll learn something new!

Take Action

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TAKE ACTION!! Those are the words on the button you select on our new Voter Voice Email system to help us harness the power of landlords to defend against unwise proposed anti-housing and anti-landlord state legislation.

A quick recap: AACSC has joined with ten (10) other local apartment associations to form California Rental Housing Association (CalRHA). Through CalRHA, we have developed a very effective tool to voice our opinions on proposed legislation to our elected representatives called Voter Voice Email.

Here's how it works: You register on the CalRHA website. Once registered, you will begin receiving periodic Red Alerts that will make you aware of proposed legislation, give you detailed analysis on the issue and the ramifications of passage, and finally, direct you on how to voice your opinion by hitting the "Take Action" button.

Take Action gets you to the page that shows the intended recipients of your email and prepares a measured, well thought out response. If you agree, then send the message. This is a tool that landlords have needed for a long time. It's fast and easy to use, gets your opinion out there, and with enough of us using it, we will do a much better job of helping to protect our businesses and the nice living spaces we offer to our tenants.

I mentioned this last month, but I need to bring this up again: we have to become better educated landlords to earn a living in this business today. My goal is to never hear of a single instance where one of our landlords lost a case in court or lost money because they weren't knowledgeable about a specific issue that they should have been able to manage with the proper education. There are plenty of books you can read or you can attend a variety of AACSC classes for a nominal fee.

Why not be proactive? Attend a $59 class taught through AACSC or pay a $2,500 judgement for not following the law. You choose. AACSC land lords are going to be the best educated landlords in the business and will have the best run apartments out there. Tenants are going to understand the difference and will rent from you first.

On a lighter note, we're in the middle of a great summer. Weather is perfect as usual. Our Summer Social is July 27th at the fabulous Hotel Maya. Come and have some fun with us and meet your fellow landlords. Don't worry you might not know anyone there—we're all landlords. You'll have a lot in common and plenty to talk about!

Educational Importance

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At a meeting I recently attended with Long Beach Mayor Garcia, he discussed the City’s study and recommendations for the production of affordable and workforce housing. Based on what he shared at that meeting, I am confident that the Mayor is on the right track; his study was filled with fantastic ideas that will go a long way toward solving some challenging housing issues if enacted. Some highlights include: dedicating City resources to support the production of affordable and workforce housing; providing regulatory relief and more rapid entitlement procedures; offering first-time home buyer programs; allowing and incentivizing the use of shipping container construction for housing; approving the use of micro units; supporting the development of accessory dwelling units; and reducing parking requirements for affordable housing projects near transit. Noticeably absent from this report was any language related to negative concepts like rent control or REAP.

While the Mayor cannot speak for every member of the City Council, I can assure you he understands that ideas like rent control and REAP don’t work and have never worked—anywhere. I urge you to be supportive of these recommendations. They will benefit everyone.

I am planning to step up the efforts by AACSC to promote education as a key benefit of membership. We as landlords are missing opportunities and losing a substantial amount of income simply because we are not as knowledgeable about our business as we should be.

Have you ever watched an episode of Judge Judy where she is hearing a landlord/tenant case? I’ve watched a few, and the only time the landlord loses is if he or she did something dumb like forget to take pictures of a tenant-damaged unit, neglect to document repair costs, fail to have a required form signed, or fail to document the resolution of a dispute. It kills me. They lose easily winnable cases because of their lack of professionalism due to a lack of education.

Let’s never forget that owning rental property isn’t some get-rich-quick scheme. It’s a business like any other. You have income, expenses, regulations, emergencies, etc. Don’t expect to wing it and be successful. You need to know your business just like an accountant, realtor, doctor, plumber or just about anyone trying to run a business. If you don’t know what you’re doing, you can lose everything. No member of this Association should ever lose because they didn’t know how to do things right.

That’s my mission! I also think education can be used in other advantageous ways. For example: why don’t we negotiate a deal with the City of Long Beach where you take classes in exchange for a longer period between PRHIP inspections? Are you starting to see how education can pay off? We’re just getting started.

Potential Section 8 Program Changes

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I am excited to share with you all the great news regarding the legislative successes that we’ve had so far this year. Let’s begin on the local front. We are tackling the local problem with the Section 8 Housing Voucher Program, and working closely with Long Beach Vice Mayor Rex Richardson to streamline the program to make important changes. The current recommendations include the following: streamlining the Housing Choice Voucher inspections, waiver of certain permits and inspection costs for apartment owners who accept the Housing Choice Vouchers, and creating a damage mitigation fund to provide financial assistance to landlords to mitigate damage caused by tenants during their occupancy under the Housing Choice Voucher Program. The last and maybe best improvement is to make vacancy payments to landlords to hold units while the landlord is going through the approval process.

These potential changes will make the Section 8 program one that all landlords should be looking at. Here’s why this is such an important achievement. The Housing Choice Voucher Program (Section 8) has been struggling for years and has desperately needed some attention. The staff and Board of AACSC helped to identify issues that have sidelined the program. AACSC worked with the City and together are working on resolutions that will help both landlords and tenants. More important than this is that it demonstrates once again that AACSC can be very effective in improving the business environment for landlords and will continue to do so for the foreseeable future.

On the State front, members of AACSC’s legislative committee and our Executive Director, Johanna Cunningham, traveled to Sacramento and with our lobbyist, Ron Kingston, spent several days meeting with and educating members of the State Senate and Assembly on the merits of various proposed bills they will be considering this year that will directly affect the rental housing industry. The most egregious bill that we lobbied against was AB 1506, a bill to repeal the Costa-Hawkins Act, which is our main legislative protection against runaway statewide rent control laws. Our efforts helped force the bill’s author (Bloom) to remove the bill from consideration for this year. (He plans to reintroduce it again and we will need to continue to be ready to respond.)

I also think it’s important for you to know that the AACSC members who made the trip to Sacramento did so at their own expense. These passionate individuals feel so strongly about our industry that they are willing to sacrifice their time and money for your benefit. We all owe them a sincere Thank You! One of the main reasons that we were successful was that our lobbyist, Ron Kingston, had us so well prepared. Ron provided us with concise summaries of every bill that we discussed in our meetings. He arranged all the appointments with the legislators and gave us detailed background information on every legislator we met with. We knew our stuff in those meetings and it paid off. Ron did a terrific job for us, and we’re lucky to have him. That’s all for now. Thanks for your continued support.

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(562) 426-8341

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