Carbon Monoxide detectors...new state law, SB 183,  all single family dwellings must have these detectors installed by July 1st, 2011 to safeguard residents’ lives.  These same detectors must be in all multifamily dwellings by January 1st, 2013.   Nationwide carbon monoxide gas, which is odorless,  colorless and invisible is estimated to kill 500 people each year and injure another 20,000.  It is created by the incomplete combustion of carbon fuels found in gas heaters, stoves and fireplaces.

Another Oakland Parcel Tax?…the Oakland City Council has voted to put ANOTHER parcel tax on the ballot to be decided by mail in ballots by November 14th.  How can anyone vote for this…another $56 per unit to go into Oakland’s general fund with no accounting as to how it will be used.  This is just one of many taxes and special assessments Oakland property owners are faced with almost on an annual basis…Oakland has a poor record of delivering on the services promised…we need to stop supporting this government until they become more focused and can deliver as advertised.

Condo owners in California will retain the right to rent out their units per the bill signed by Gov. Brown, effective Jan. 2012.  This only applies to owners who had that right when they purchased their unit.    Lenders, however, usually have restrictions on making loans to condo buyers in a complex that is less than 51% owner-occupied.

Satellite dish on apartment buildings...what are the rules?…notwithstanding a rental agreement to the contrary, the law generally allows the tenant to install a satellite dish inside the unit or in areas used exclusively by the tenant, for example a window or balcony used exclusively by the tenant.  The law does not allow, however, for a tenant to unilaterally install a dish in common areas or on the roof of the property without the landlord’s  permission.  Satellite television providers are supposed to notify owners before installing a dish on the property.

Rise of the Renter…despite the slow economic recovery,  apartment demand is on the rise nationwide, with vacancy rates shrinking across the United States.  The current uptick has been attributed to short supplies not job growth as well as the demographic changes in the single-family housing market, e.g.  homeowners becoming renters.   Also, young adults are moving away from roommates and home to find their own apartments as employment prospects improve.   The 24 to 34 year old age group captured 65% of the new jobs created in 2010.   Tougher mortgage requirements have spurred many Americans to become or remain renters.

A Jones Lang LaSalle/RealShare Apartments Outlook Survey for 2012 indicates that for the most part industry observers believe Cap Rates will stay the same or go lower.  39% said cap rates will stay the same next year.  About 21% say cap rates will drop by 50 basis points.  Paul Belden, president and principal, WLA Investments states that cap rates will basically stay the same next year for two reasons, one, the economy is going to stay basically the same next year and interest rates are at the lowest we have ever seen and “I just don’t see that changing soon”.  Half the repsondents said that if cap rates should fall between to 5% and 6%, they will no longer be inclined to invest in apartments.  Faron Thompson managing director, Jones Lang LaSalle, states it is not so likely to happen as there is more supply on the market now so there is not quite the same pressure on pricing.