In a desire to open up rental housing and provide home owners with more “use” choices for their property, AB 3182 is currently moving through the California Assembly. Authored by Assembly member Philip Ting of (D) San Francisco Assembly Bill 3182; which (if passed) restricts the ability of homeowners in any HOA to prohibit or limit rentals (with just 2 minor exceptions). Ting represents the state's 19th District, which includes the west side of San Francisco, in addition to Broadmoor, Colma, Daly City, and South San Francisco.[1]  Ting, is currently the Chair of the Assembly Committee on Budget.

The bill proposes to make several amendments to current  Davis-Stirling Act   and Civil Code Section 474 —which was enacted in 2012 to exempt current owners from enacting prohibitions on leasing of HOA residences.

The bill would remove the current “grandfathering” and make several other changes regarding rentals in HOAs. Rental bans or limits are normally imposed by HOAs after they are voted on by the homeowners within the community.

AB 3182 would make rental bans illegal, regardless of how the owners vote to operate their association. However, AB 3182 would leave in effect two restrictions:

1) Short-term / "vacay" rentals (30 days or less) could still be banned

2) HOAs are permitted to have a rental limit of 25% of the total units

Note: In a real-life scenario this 2nd restriction appears to be unenforceable for several reasons.

For example:

If a 100-unit complex has 24 units (24%) currently rented, then 2 homeowners put up “for rent” signs; which of the 2 will be allowed to actually rent out the unit?

1) The one who advertised first?

2) Or, the first whose tenant actually signed a lease?

3) Or the first with a renter to put down a deposit?

4) Do 2nd homes count as rentals in this scenario? Or not?

5) How about relatives living in the unit but not paying rent? Is that unit considered a rental? Or owner “occupied”? Etc. Etc. Etc. ad nauseum!!!!!!!! Who watches the Watchers?

Most HOAs lack “capable leadership” for a host of reasons. Many residents are to busy to serve, not qualified, just not interested in serving for a number of reasons.

So (as with the aforementioned example) who would be specifically designated to enforce the 2nd restriction? And whomever it is, they will be a “very popular” person (pariah) indeed. Oh btw: since few communities are built in EXACTLY round numbers does the HOA allow 25.1% or must it be 24.99999% or less. And who does the math on THIS issue? See where I’m going with this? So, scratch restriction 2.

To track the bills progress click here To find and find your local California assembly member click here.

Most U.S. real estate markets are booming. Yet I own apartment buildings in a city where there’s a recession, and it’s hurting me.

Wherever you’re investing in real estate, it will face a future economic downturn sometime, so there’s a lesson in this for you.

First – how could I be the one invested in a “down” market? Aren’t I the one always talking about how in real estate investing, the geographic market is even more important than the property?

Well, thankfully I’m invested in multiple U.S. cities for diversification. Most real estate investors only invest in their home market. That’s riskier than you know.

Chances are that you aren’t invested in my hometown income property market of Anchorage, Alaska like I am. With a population of 300,000, it’s the United States’ northernmost city of that size. Anchorage is in an economic recession.

The problem with Anchorage is that the economy is not well-diversified. It’s heavily dependent on oil extraction. You probably know that oil prices have been slashed in half in recent years. That meant oil companies became less profitable and consequently announced layoffs, which led to the recession.

My Anchorage apartment buildings don’t cater to higher-paid oil employees. But it still hurts me.

You see, when an “oil dad” is laid off and his entire family leaves the area, that means there are fewer people to dine at restaurants, buy cars, and patronize hair stylists. My modest apartments cater to people like food servers, auto mechanics, and hair stylists. So there’s a “trickle-down” effect.

Anchorage lost 1,500 residents in the last year. That’s one-half of one percent. Poof. Gone. It promises to continue or even worsen.

Let’s look at Anchorage’s recent year-over-year net employment change, sector-by-sector, and see what this small case study can teach you, wherever you’re interested in investing:

Source: Anchorage Economic Development Corporation

What stands out? It’s the fact that although Anchorage has suffered net job losses, there is still a gain in the health care sector.

This isn’t just happening in Anchorage. Nationally and elsewhere, as the population ages, there is outsized demand for medical jobs.

What’s your takeaway as a real estate investor?

Well, most major metropolitan areas have portions of town where health care jobs are concentrated in medical campuses. Buy property near medical districts, and you’ll be hedged against larger economic downturns.

Back when Anchorage’s economy was healthy, I purchased apartment buildings adjacent to the medical district. So although the market rent amount is lower now than it was a few years ago (there are fewer dollars circulating in Anchorage’s recessed economy), I’m able to keep my properties nearly 100% occupied – even in the midst of a recession.

In real estate investing, the market is more important than the property. More accurately, it’s the submarket that’s even more important. A metro area’s medical submarket is a smart place for you to invest over the long-term.

This was completely predictable. When I purchased the apartment buildings years ago, new employment concentrated in the medical sector was already a trend.

This trend is still forecast for years into the future. Even futurists say that it will be difficult for robots to simulate what nurses do.

When I hosted Ken McElroy, the Rich Dad Advisor for real estate on my popular weekly podcast, he said: “Real estate is dumb and slow.”

I love that line!

It doesn’t take a genius to forecast this. Medical = Jobs = Occupied units = Rent-paying tenants = Durable rent income streams = More profitable rental properties, even in a recession.

What are your takeaways?

• If you buy income property in a smaller, less economically diverse metro, try to buy near a medical district.

• Invest in multiple metro markets to diversify geographically, not just your hometown.

The fact that I practice these two bullet points has kept me profitable and resilient, even in a recession. It will help ensure your prosperity in the long-run too.

Here’s to your wealth and success.

From pet food and batteries to potting soil and charcoal briquettes, necessities and niceties help you make the most of a quarantine.

Every product is independently selected by our editors. If you buy something through our links, we may earn an affiliate commission.

Seeing shelves emptied of toilet paper and sanitizer quickly shows where people’s first thoughts turn when it comes to a containment. Most households think to stock up on groceries, too, but here are some other goods to think about having on hand during the extra time at home.

Outdoor Cooking Necessities

Firing up the grill is a good way to seize some outdoor time and shake up your cooking routine. Make sure you have propane, charcoal, lighter fluid and any other favorite grilling goods stocked and ready. Chances are you have enough extra time to do a complete grill tune-up, too.

Detergents and Cleaning Supplies

Did you remember to stock up on laundry and dishwashing detergents? Don’t forget window and other household cleaners, for regular or deep cleans. Now’s also your chance to finally learn how to make your own homemade cleaners, which also means stocking up on basic pantry supplies like vinegar, baking soda and borax, as well as handy containers in which to store them.

Envelopes

Writing letters or creating art for others fills time and connects, which is especially important for loved ones feeling sick or isolated. It’s a great educational activity for kids, too. Stock a variety of envelopes, so you don’t have to fold those full-page masterpieces. Keep in mind, you can also order stamps and look up postage rates online.

Distilled Water and Filters

Even if you’re connected to city water services, you might want bottled water for a range of needs unique to your household. Nasal rinses for allergies or colds, watering household plants and filling up fish tanks are just a few ways distilled water can be useful. Stock extra water filters for faucets and pitchers to make drinking water readily accessible for you and for mixing baby formula.

Potting Soil and Seeds

Gardening and digging in the dirt is great therapy for worry and stress, both of which can spike during quarantine. Grab potting soil, planters and other necessities to re-pot overcrowded houseplants, start new ones, or start flower, vegetable and herb seeds indoors. Home improvement stores such as The Home Depot sell a variety of seed-starting kits for spring planting. Consider options such as AeroGardens for year-round herbs and lettuce or a patio-garden kit with automatic watering.

Batteries and Light bulbs

Have enough batteries on hand to keep your ramped-up indoor and outdoor activities running, including remote controls, your computer mouse, baby monitors, hearing aids, flashlights, sump pumps or anything else that requires a boost of power. Also check that your go-to light bulb supply has a few extras given the higher-than-usual need, to ensure your home stays well-lit during containment.

Craft Supplies

Stock up on paper, pens, yarn, glue, clay, beads, embroidery floss — really any preferred materials designed to spark creativity in both kids and adults. You can stick to the basics, such as coloring and doodling, great all-ages stress relievers, or take this as an opportunity to explore new interests. YouTube tutorials and online classes at sites such as CreativeBug can school you in anything from knitting to making your own fragrant home spray or soaps.

Health Essentials

Make sure you have prescriptions on hand, as well as staples such as vitamins, immunity boosters, bandages, antibiotic cream, cough and cold medicine, pain reliever and antacids. Remember Pedialyte or other drinks to replace electrolytes or Ensure Clear and broths to offer nourishment while recovering from illness or an upset stomach. For young children, stock up on diapers or disposable underwear (especially if change in routine triggers potty-training regression), diaper cream, sunscreen and pediatric medicine.

Pet Supplies

Start with the basics, such as kitty litter, food and enough waste pickup bags to stock the extra walks you may be taking. Think about dry alternatives for any pets who may be used to fresh food, such as reptiles that eat live crickets, too. Sites such as Chewy specialize in delivering what you need, including medicine that protects against fleas and ticks. And consider investing in a few new toys to keep them entertained during the extra together time.

Brain Boosters

Stock up on good books, games and puzzles so you have lots of engaging options. While digital books, rented through your local library, and online games are great, it’s a good idea to take screen breaks, too. Order books from your local bookstore. Consider crosswords, Sudoku and card games, too. Even better: Grab a field guide and head outdoors to look for birds, plants and signs of wildlife.