NEW TAX BENEFITS FOR REAL ESTATE INVESTORS IN 2025

How the One Big Beautiful Bill Act Strengthens Wealth-Building Opportunities for Today’s Property Owners

The One Big Beautiful Bill Act, signed into law on July 4, 2025, has reshaped the tax landscape for real estate investors in a major way. Blending new incentives with the preservation of long-standing tax advantages, the Act positions real estate as one of the strongest wealth-building vehicles available today.

At SanctumRS Asset Management, we understand how much tax planning impacts long-term returns. Below is a clear breakdown of the new benefits and what they mean for investors heading into 2025 and beyond.

100% Bonus Depreciation Restored

One of the most significant wins for property owners is the return of 100% bonus depreciation for qualified improvements. Investors can now deduct the full cost of eligible upgrades in the same year they are completed—dramatically improving early-year cash flow and accelerating ROI.

For value-add investors, this creates a stronger financial cushion and greater leverage during renovation cycles.

Enhanced 1031 Exchange Flexibility

The Act protects the 1031 Like-Kind Exchange and expands its flexibility. Investors now benefit from:

• Longer identification windows

• Greater access for mixed-use properties

• Expanded eligibility for DSTs and fractionalized structures

These updates provide more time, more options, and more confidence when transitioning into higher-performing assets.

New Housing Supply Credit (HSC)

To encourage the creation of additional rental housing, the Act introduces a new Housing Supply Credit—a multi-year federal credit available to investors who add units to the market.

Projects that may qualify include:

• Ground-up rental construction

• Conversion of commercial buildings into residential

• ADUs added on existing rental properties

This incentive rewards investors who help meet growing housing demand.

Relaxed Passive Loss Limitations for Active Investors

Investors who materially participate in rental operations now have more room to deduct passive losses. This especially benefits:

• Landlords who manage their own properties

• Short-term rental operators

• Investors who qualify for Real Estate Professional Status (REPS)

The updated rules allow more income offsetting, lowering overall tax burden and improving year-end financial performance.

Expanded Energy-Efficiency Credits

Sustainability-driven improvements receive meaningful support under the new law. Credits have increased for:

• Solar systems

• Heat pumps and high-efficiency HVAC

• Energy-saving electrical upgrades

• Water-efficient improvements

These incentives reduce upgrade costs while boosting property value and tenant appeal.

Capital Gains Relief for Long-Term Holders

Long-term investors also see enhanced benefits with new capital gains reductions for properties held over 10 years. Additional savings are available for rentals maintained at affordable levels, making long-hold strategies even more attractive for wealth planning.

Core Real Estate Tax Advantages Remain Strong

In addition to new incentives, the Act preserves the foundational tax tools investors depend on:

• Depreciation

• Mortgage interest deductions

• Repairs and operating expense write-offs

• Opportunity Zone benefits

• Cost segregation strategies

These longstanding advantages continue to give real estate a strategic edge compared to other investment classes.

Final Thoughts

The One Big Beautiful Bill Act of 2025 strengthens the financial case for owning and expanding rental real estate. Whether you operate a single home or a multi-door portfolio, the combination of new incentives and preserved tax structures makes this an ideal time to enhance your investment strategy.

At SanctumRS Asset Management, we help investors navigate these benefits, optimize property performance, and build durable long-term wealth.

Disclaimer: This blog is for informational and educational purposes only. The content is based on interpretations of current federal legislation as of its publication date. It is not intended to serve as tax, legal, accounting, or investment advice. Every investor’s situation is unique, and tax outcomes can vary based on property type, ownership structure, and individual financial circumstances. SanctumRS Asset Management does not provide tax or legal advice. Before making any financial decisions or acting on the tax-related information provided, readers should consult with a certified tax advisor, CPA, or qualified financial professional who can provide guidance tailored to their specific needs.

San Francisco Rent Increase Update (2025–2026)

🚨 San Francisco Rent Increase Update (2025–2026)
Published by SanctumRS Asset Management | Bay Area Property Experts

Understanding Rent Increases in San Francisco

San Francisco’s rental market is protected under the San Francisco Rent Ordinance, which limits how much landlords can increase rent each year for rent-controlled units. These rules affect most multifamily properties built before 1979, but do not limit the initial rent a landlord may charge for a vacant, rent-controlled unit.

For the period March 1, 2025 through February 28, 2026, the allowed rent increase for covered units is 1.4%.

This percentage is set annually by the San Francisco Rent Board and reflects 60% of the Consumer Price Index (CPI) increase for Bay Area consumers.

🏷️ New Rent Increase %: 1.4%

✔️ Effective Dates

👉 March 1, 2025 – February 28, 2026

💰 How to Calculate the Increase

Multiply a tenant’s base rent by 0.014.

Example:
Tenant’s base rent = $2,000
$2,000 × 0.014 = $28 increase
New monthly rent = $2,028

📎 Important: The increase applies to base rent only. Do not include temporary passthroughs or fluctuating charges. Landlords cannot round the increase upward.

📝 Rent Increase License Required

Before applying any annual allowable or banked increases, landlords must first obtain a Rent Increase License by reporting the unit to the Rent Board Housing Inventory.

This mandate applies to:

• All rentals as of July 1, 2022

• Condominiums and buildings with 1–9 units as of March 1, 2023

Without this license, the increase cannot be legally applied.

⏱️ Timing, Anniversary Dates & “Banked” Increases

• The first allowable increase may be applied 12 months after the lease start date.

• Once the increase begins, that date becomes the tenant’s anniversary date.

• Rent can only be increased once every 12 months.

• If a landlord waits longer than 12 months, they may bank the allowable increase and apply it later.

📌 Banking rules are complex—consult a property professional before applying multiple increases.

📬 Required Notice to Tenants

Landlords must provide written notice before the increase takes effect:

Type of IncreaseMinimum NoticeUp to 10%30 daysMore than 10% (including banked increases)90 daysIf notice is mailedAdd 5 extra days

Notices must include:
✔ Dollar amount of the increase
✔ Percentage increase
✔ Effective date of the increase

Use the percentage effective on the increase date, not the date notice is served.

👥 Additional Occupants: No Extra Rent

San Francisco law prohibits landlords from charging more rent simply because a tenant adds a roommate—even if the lease tries to allow it. Additional occupant increases are considered illegal rent increases.

🧾 Special Petitions & Passthroughs

There are certain cases where landlords may request additional increases beyond the allowable 1.4%. These must be petitioned and approved through the Rent Board. Examples include:

• Capital improvement passthroughs

• Operating and maintenance cost increases

• Hardship petitions

Each has strict documentation and approval requirements.

🏢 Need Expert Help Navigating Rent Control?

At SanctumRS Asset Management, we specialize in Bay Area property compliance, rent board filings, tenant relations, and maximizing long-term rental value while staying legally protected.

👉 Property Owners: Get a compliance consultation.
📧 assetmgmt@sanctumrs.com
📞 (408) 767-6628
🌐 SanctumRS Asset Management | Protecting Your Rental Investment

📍 Serving:

San Jose • San Francisco • Oakland • East Bay • Peninsula • Santa Clara County • Contra Costa County

This post is for informational purposes only and does not replace legal advice. Always consult with a licensed property manager or attorney regarding rent control compliance.

What to Look for When Searching for Property Management Services in San Jose

Finding the right property management partner in San Jose can make the difference between steady cash flow and constant stress. With rising rents, evolving tenant expectations, and a fast-moving regulatory environment, homeowners need more than basic oversight—they need a management company that understands the dynamics of Silicon Valley real estate and operates with transparency, technology, and care.

At SanctumRS Realty Services | Asset Management, we help homeowners protect their investments and maximize returns. Whether you’re a first-time landlord or managing a full portfolio, here are the essential qualities to look for when choosing the right property management service in San Jose.

1. Proven Local Expertise in San Jose Neighborhoods

San Jose is a mosaic of unique sub-markets—Downtown, Willow Glen, Berryessa, Cambrian, Evergreen, North SJ, and more. Your management company should understand:

• Neighborhood rent trends

• Tenant demand patterns

• Commute and school considerations

• Upgrades that actually increase ROI

Local knowledge equals better pricing, faster leasing, and stronger tenant retention.

2. Transparent Fees With No Hidden Charges

A trustworthy property manager provides:

• Straightforward fee structure

• No surprise charges

• Clear explanation of owner costs

• Transparent Owner Portal reporting

SanctumRS is built on honesty and clarity—no unnecessary upsells or hidden line items.

3. Effective Tenant Placement & Leasing Systems

The quality of your tenant determines the quality of your cash flow. Look for:

• Wide syndication (Zillow, Trulia, HotPads, MLS)

• Professional photos and video tours

• Thorough background, credit, and income screening

• Fast application review

• California-compliant leasing

In a competitive market like San Jose, speed and precision are everything.

4. Tech-Driven Maintenance & Repair Oversight

Maintenance should be documented, trackable, and fast. Your property manager should use:

• Mobile maintenance portals

• Photo/video documentation

• Licensed, insured vendors

• Preventative maintenance planning

• Clear invoicing & approval workflows

SanctumRS integrates tools like Buildium, TenantTurner, HappyCo, and vetted vendors for full transparency.

5. Clean and Accurate Financial Reporting

You should never guess where your money is going. Expect:

• Monthly financial statements

• Real-time portal access

• Receipts organized and logged

• Year-end tax reports

• Consistent payout schedules

Professional reporting builds long-term clarity and confidence.

6. Strong Compliance & Legal Knowledge

California property laws are strict and ever-changing. Your manager should confidently handle:

• Tenant rights and Fair Housing rules

• Rent control (if applicable)

• Just-cause eviction protocols

• Habitability requirements

• Mandatory disclosures

• Vendor compliance

One wrong move can result in major liability—expert compliance is critical.

7. Responsive Communication & Customer Service

Great management is proactive, not reactive. Ask about:

• Response times

• Emergency protocols

• Communication style with owners

• Tenant service standards

At SanctumRS, owners and tenants receive personalized communication—not call center scripts.

Why Homeowners Choose SanctumRS in San Jose

SanctumRS combines local market expertise, AI-driven systems, and high-touch service to deliver exceptional performance for Bay Area landlords. Our services include:

✔ Strategic pricing & rental market analysis
✔ Full tenant placement & leasing compliance
✔ Ongoing maintenance management
✔ Monthly owner updates
✔ Transparent financial reporting
✔ 24/7 emergency handling
✔ Turnover management & renovation oversight

Whether you own a single-family home, condo, or multi-unit, SanctumRS is built to protect your asset and increase long-term returns.

Ready to Secure Better Property Management?

We offer a free consultation and complimentary rental pricing analysis for new homeowners.

👉 Visit SRSAssetMgmt.com
👉 Schedule your consultation today.

Moving to the Bay Area: What to Expect Before You Relocate

Thinking about moving to the Bay Area? Explore what to expect from housing costs and commute culture to neighborhoods, lifestyle, and job opportunities.

Relocating to the Bay Area is an exciting step. Whether you're coming for a new job opportunity, the tech ecosystem, the lifestyle, or simply a fresh start. But the Bay Area is unlike anywhere else in the country, mixing world-class innovation with a diverse culture, breathtaking landscapes, and one of the most competitive housing markets in the U.S.

At SanctumRS Realty Services | Asset Management, we help newcomers and homeowners navigate the realities of the Bay Area. Here’s what to expect when making the move.

1. Housing Prices Are High—Be Prepared

The Bay Area is known for its beautiful homes, great weather, and world-class job opportunities—but that comes with high housing costs.

Expect:

• Rent and home prices above the national average

• Competitive applications for desirable properties

• Lower inventory in some neighborhoods

• Higher deposits and stricter screening

Cities like San Francisco, San Jose, Palo Alto, Mountain View, and Berkeley tend to have the highest prices, while areas like El Cerrito, San Leandro, Daly City, Concord, and parts of South San Jose offer more value.

2. Diverse Neighborhoods for Every Lifestyle

The Bay Area isn’t one city—it’s a collection of unique communities.

• Tech Hub Living: Mountain View, Palo Alto, Sunnyvale, Santa Clara

• Urban & Walkable: San Francisco (SoMa, Mission, Hayes Valley), Oakland (Uptown, Lake Merritt)

• Family-Friendly: Willow Glen, Fremont, San Ramon, Cupertino

• More Affordable Options: Vallejo, Richmond, Hayward, Concord

Your lifestyle will determine your best fit. Whether you prefer quiet neighborhoods or city energy, the Bay offers options if you know where to look.

3. Traffic Is Real — Plan for Commutes

The Bay Area is a commuter region. Here’s what newcomers should expect:

• Highway traffic during peak hours

• Bridge tolls that can add up

• BART, Caltrain, and light-rail options

• Many tech companies allow hybrid or remote work

• Bike-friendly zones in San Francisco, Oakland, Berkeley

If you work in tech, proximity to major employers like Google, Apple, Meta, LinkedIn, or Nvidia may become a priority.

4. Strong Job Market, Especially in Tech

The Bay Area continues to be a global innovation hub. You’ll find opportunities in:

• Software & AI

• Biotechnology

• Finance & venture capital

• Robotics

• Clean energy

• Design & creative industries

High income potential attracts talent from around the world—adding to the region’s cultural richness.

5. Mild Weather & Outdoor Lifestyle

The Bay Area offers some of the best weather and outdoor access in California:

• Miles of coastline and beaches

• National parks and nature preserves

• Year-round hiking

• Microclimates—SF fog vs. South Bay sunshine

• Biking & trail systems

You can surf in Pacifica in the morning and hike Mount Tam in the afternoon.

6. Cost of Living Beyond Housing

Outside of rent or mortgage payments, expect higher-than-average costs for:

• Groceries

• Parking & transportation

• Childcare

• Dining out

• Entertainment

Budgeting ahead will make the transition smoother.

7. A Strong Sense of Community

Despite the fast pace, the Bay Area is full of warm, diverse communities. You’ll find:

• Cultural festivals

• Food scenes representing every corner of the world

• Tech meetups and innovation groups

• Family-centered neighborhoods

• Outdoor clubs and local sports leagues

The region is welcoming—and you’ll quickly find places to belong.

How SanctumRS Helps Newcomers Settle Into the Bay Area

Whether you’re renting or buying, SanctumRS Realty Services ensures you understand:

• Neighborhood fit

• Budget and pricing strategies

• School district considerations

• Commuting logistics

• Landlord expectations and application requirements

• Tenant laws in California

We help you avoid costly mistakes and set you up for success from day one.

Planning Your Move? We Can Help.

Schedule a free consultation and let our team guide your relocation smoothly.

👉 Visit SanctumRS.com
👉 Explore rental options & relocation support

Maximizing ROI Through Professional Property Management

Published by SanctumRS Asset Management | November 2025

Introduction

Managing rental properties might look simple on the surface — collect rent, handle repairs, and find tenants when needed. But behind the scenes, the true driver of success lies in how efficiently each moving part is managed. At SanctumRS Asset Management, our mission goes beyond collecting rent; we focus on protecting your investment, enhancing property value, and ensuring your long-term returns outperform the market average.

1. Strategic Rent Positioning

We don’t just set a price — we analyze real-time data from regional comparables, neighborhood absorption rates, and seasonal trends to strategically position your rental. The goal is to achieve maximum rent with minimum vacancy. A balanced approach ensures your property remains competitive while maintaining consistent cash flow.

2. Tenant Quality and Retention

High turnover kills ROI. SanctumRS uses a rigorous screening process to identify responsible tenants who treat your property as their own. Once they’re in, proactive communication and well-timed maintenance keep satisfaction high and turnover low — reducing downtime and marketing expenses.

3. Data-Driven Maintenance Planning

Preventive maintenance is not an expense; it’s a preservation strategy. Our asset management platform tracks repair trends, vendor performance, and lifecycle costs to make smarter reinvestment decisions — from roofing and flooring to landscaping and paint cycles. This ensures your property stays modern, safe, and compliant.

4. Transparent Financial Oversight

Every dollar counts. Through our Buildium Owner Portal, landlords receive real-time visibility into rent collection, maintenance invoices, and owner disbursements. Our financial reports are designed for clarity — so owners can make informed decisions without guesswork.

5. Asset Appreciation Through Long-Term Strategy

At SanctumRS, we don’t just manage — we strategize. We regularly review each property’s performance to identify opportunities for renovation, refinancing, or repositioning. Our approach transforms passive ownership into an active wealth-building plan.

Conclusion

Professional management is not a cost — it’s a multiplier. By combining market intelligence, technology, and personalized service, SanctumRS Asset Management helps property owners build sustainable equity while minimizing the stress of day-to-day oversight.

Whether you own a single-family rental or a multifamily portfolio, our team ensures your investment performs like a business — because that’s exactly what it is.

Bay Area Rental Market Outlook — Q3 2025

Professional Recommendations for Property Owners

The Bay Area rental market closed Q3 2025 on an upward trend, showing renewed strength across San Francisco, Oakland, San Jose, and surrounding submarkets. With rents up and vacancies tightening, this quarter marks a pivotal moment for landlords to refine pricing and retention strategies — positioning their assets for sustained growth into 2026.

Current Market Conditions

Across the Bay Area, average rents have increased between 6% and 12% year-over-year, depending on neighborhood and property type. Vacancy rates have tightened below 5%, signaling robust tenant demand and limited available supply.

Key drivers behind this recovery include:

• Tech & AI sector resurgence: Return-to-office policies and high-income job growth are fueling rental demand near employment corridors.

• Constrained supply: New construction starts have slowed, keeping pressure on existing inventory.

• Urban lifestyle revival: Walkable, transit-connected neighborhoods continue to outperform in rent growth and occupancy.

Opportunities for Landlords

The current market favors well-managed and well-positioned rental properties. SanctumRS recommends the following strategies for Q4 2025 and beyond:

1. Strategic Rent Adjustments
Re-evaluate existing leases and apply moderate rent increases — typically 3% to 7%, depending on the submarket. Units near job centers and downtown corridors can support stronger adjustments.

2. Focus on Tenant Retention
High turnover can quickly offset gains from rising rents. Early renewal offers, timely maintenance, and transparent communication strengthen retention and preserve income stability.

3. Maintenance and Presentation Upgrades
Tenants continue to pay premiums for modernized units. Cost-effective improvements such as repainting, new flooring, fixture updates, and energy-efficient upgrades can boost rental appeal and justify higher pricing.

4. Expense Optimization
Shifting certain utilities (e.g., gas, electricity, internet) to tenants helps offset rising operational costs without diminishing competitiveness. SanctumRS assists owners with structuring lease addenda that remain compliant with California’s rental regulations.

Risk Factors to Monitor

While momentum is positive, landlords should remain mindful of:

• Affordability constraints: Pushing rents too aggressively could extend vacancy periods.

• Local regulations: San Francisco, Oakland, and Berkeley maintain strict rent-control and habitability enforcement.

• Maintenance obligations: Deferred upkeep can trigger legal exposure and tenant dissatisfaction.

Our management team conducts quarterly compliance and market assessments for each property to ensure alignment with evolving laws and market benchmarks.

SanctumRS Recommendations

Heading into Q4 2025:

• Review rents against current market comps.

• Prioritize renewals for reliable tenants.

• Invest in improvements that elevate long-term property value.

• Utilize SanctumRS’ analytics and reporting tools for transparent financial oversight.

Looking Ahead

The Bay Area rental market’s rebound presents a strong environment for income growth and asset appreciation. Owners who remain proactive — balancing competitive pricing with quality management — will be best positioned to benefit from the region’s continued housing demand.

Schedule your Free Pricing Recommendation & Go-to-Market Strategy consultation today through the SanctumRS Asset Management portal to receive tailored insights for your property.

The Intersection of Tokenization and Artificial Intelligence in Real Estate

In the world of real-estate asset management, two powerful forces are transforming how properties are owned, financed, and operated: asset tokenization and artificial intelligence (AI). At Sanctum Realty Services Asset Management, we see these innovations not as distant possibilities but as active tools shaping the next era of property investment and management.

Understanding Tokenization in Real Estate

Tokenization is the process of converting a physical asset, such as real estate, into digital tokens that represent ownership shares on a blockchain. Each token reflects a portion of the property’s value, allowing multiple investors to hold fractional interests that can be traded or transferred seamlessly. In real estate, this means a property or portfolio can be divided into digital units that simplify access to ownership and capital flow.

The key advantage of tokenization lies in democratizing real-estate investment. Instead of requiring large capital commitments, investors can participate in smaller increments while still benefiting from appreciation and income. This system increases liquidity, improves transparency through blockchain verification, and opens global access to real-estate markets that were once confined to institutional investors.

Imagine a commercial property in San Jose being placed into a special-purpose vehicle, tokenized, and offered to a global investor base. Each token holder enjoys clear, traceable ownership rights, and transactions occur instantly through smart contracts.

How Artificial Intelligence Enhances Real Estate

Artificial intelligence enhances property management by turning data into insight and automation. It can predict property valuations using large datasets, monitor asset performance, forecast maintenance needs, and even evaluate tenant trends and rental dynamics. AI also supports compliance, risk monitoring, and customer engagement by continuously analyzing behavior patterns and market signals.

When applied to tokenized real-estate ecosystems, AI creates an intelligent feedback loop—optimizing performance, pricing, and portfolio management while ensuring transparency for investors and managers alike.

Where Tokenization and AI Intersect

The intersection of tokenization and AI forms a digital infrastructure where every stage of an asset’s lifecycle becomes more efficient and transparent. AI can adjust token pricing based on real-time valuation metrics such as occupancy, rental growth, and neighborhood trends. It can also detect the optimal times to trade tokens in secondary markets to maximize liquidity and returns.

Smart contracts linked to AI data feeds automate income distributions, maintenance scheduling, and compliance verification. This integration significantly reduces manual intervention while improving the accuracy of decision-making. Moreover, AI enhances investor engagement by tailoring recommendations and portfolio options according to each investor’s goals and risk appetite.

Why This Matters for Modern Asset Management

For Sanctum Realty Services Asset Management, which operates across the Bay Area, embracing the intersection of tokenization and AI represents a new era of opportunity. It provides the scalability to manage numerous assets with digital precision while enhancing liquidity options for investors. It allows for deeper insights into property performance, risk exposure, and capital efficiency—all in real time.

Most importantly, it builds trust. By offering transparent reporting, data-backed valuations, and automated performance updates, investors gain confidence in the properties we manage and the systems that protect their interests.

Navigating the Challenges

Adopting these technologies also comes with challenges. Regulatory compliance must align with securities laws governing tokenized assets. Integration between blockchain and legacy real-estate systems can be complex. Accurate AI valuation depends on reliable data sources, and cybersecurity remains a critical concern.

At Sanctum Realty Services Asset Management, we address these issues through strategic partnerships with blockchain and legal experts, investment in secure data infrastructure, and a human-first approach that ensures technology enhances rather than replaces our expertise. We combine local market intelligence with digital precision to maintain a balanced, trustworthy management model.

A Practical Vision for the Bay Area

Imagine a multi-unit property in San Jose fully managed through this dual system. The building is tokenized into fractional units available to investors worldwide. AI monitors every aspect of its operation—rents, expenses, maintenance, and market conditions—and provides accurate, dynamic valuations. Rental income is automatically distributed through smart contracts. Investors can trade their tokens at market-driven prices, while Sanctum Realty Services oversees the property’s physical operations with clarity and control.

Why the Bay Area Is the Ideal Testbed

The Bay Area’s combination of high-value real estate, global investor interest, and technological leadership makes it the perfect environment for tokenized and AI-enhanced asset management. These tools align perfectly with the region’s innovative mindset, allowing properties to evolve from static investments into intelligent, digital financial instruments.

Looking Ahead

The convergence of tokenization and artificial intelligence represents more than just technological advancement—it redefines the structure of real-estate ownership. By integrating these systems, Sanctum Realty Services Asset Management is building a foundation for a more accessible, transparent, and data-driven future.

This transformation will not replace the fundamentals of real-estate stewardship—it will elevate them. With human expertise guiding smart technology, we are creating a new model of trust, efficiency, and global connectivity in property management.