Welcome A LETTER FROM EBRHA CEO
T
oday, there are so many variables to consider when weighing the risks of doing business in the rental housing market, especially in the Bay Area. Housing providers have to assess the cost
of building and improvements, property and tenant management, legislative compliance, asset protection and wealth preservation in environments that seem to be hostile and working against us—today and possibly in the future. “Future-proofing” is a fancy term that means finding opportunities and anticipating needs while navigating potential risks from future shocks and stress in the market. The idea of controlling your destiny is a central point/benefit of future-proofing. It is one key reason why many property owners and investors get into the rental housing business. As last year revealed, shocks and stresses to the system impact communities and business sectors differently. Some businesses, like online retailers, thrived during the pandemic, while others, like hospitality and travel, were decimated. The same is true for areas of rental housing, which is a tale of two cities. While most renters were able to pay their rent or work out terms with property owners/
Derek Barnes
operators if they lost income due to COVID-19, a significant number of property owners/operators suffered economically because their renters couldn’t, or wouldn’t, pay rent. As our recent midyear member survey confirmed, many of our members are rental property owners/operators who own fewer than 10 rental units. The vast majority are small family businesses, women and people of color, and often retirees who rely on income from their rental property investments. Any disruption to rental income; inequitable or unbalanced legislative mandates; gaps in insurance coverage; or higher material and labor expenses (costs of doing business) have devasting consequences for small rental housing businesses. Many of us have seen all of these scenarios due to COVID-19’s lingering impact on our economy. This past June, eviction moratorium extensions were once again imposed by the state—September 30. They required no means of testing or qualifying household need at all. $5.2B in rental assistance federal aid has been allocated to California—$2.6B from the Consolidated Appropriations Act in December and $2.6B from the American Rescue Plan in March (not fully
6 JULY+AUGUST 2021 / EBRHA.COM
