Tag Archives: San Francisco Apartment Rentals

RENTS RISE IN S.F., OAKLAND, SAN JOSE

By Carolyn Said

Apartment rents in the Bay Area’s three biggest cities continue to rise, with Oakland seeing a huge surge, probably fueled by renters priced out of San Francisco crossing the bay.

“Oakland is the less expensive alternative to San Francisco,” said Sarah Bridge, president of RealFacts, a Novato company that collects information on rents at large, professionally managed apartment complexes. “It’s an urban core and offers some of the same amenities on a small scale, and is still about $800 (a month) less expensive than San Francisco. It’s a spillover from the growth occurring in San Francisco.”

The average asking rent at buildings with at least 50 units in Oakland hit $1,925 in the third quarter, up 19 percent from the same time last year, RealFacts said. That figure averages rents for units ranging from studios to three bedrooms, but the trend is just as pronounced for each size. One-bedroom apartments, for instance, were asking $1,761, a 20.1 percent increase from a year ago, RealFacts said.

San Francisco’s already sky-high rents continued climbing, with a new average asking of $2,768 at big complexes, up 7.6 percent from a year ago. San Jose saw a 9.6 percent increase to an average of $1,845, RealFacts said.

Apartment hunters on both sides of the bay are reeling from sticker shock.

Read more: http://www.sfgate.com/realestate/article/Rents-rise-in-S-F-Oakland-San-Jose-3961019.php#ixzz29lZDbJFv

PROPERTY MANAGERS, LET YOUR OWNERS KNOW YOU’RE A SOURCE FOR RE KNOWLEDGE

Rental property owners want managers who are keeping up with the latest trends and keeping their eyes peeled for ways to help their clients prosper. One of the ways you can impress them is by being the “conduit” of news about lucrative opportunities in today’s fast-changing economy. You can call them about the latest industry news. Give them some ideas on how they can take advantage of today’s real estate and financial trends. Impress them with your creativity and business acumen.

Many property managers are using emails and online “newsletters” to highlight what’s happening in the rental property market and the latest trends in interest rates and financing. Mortgage Rates are Falling and Mortgage Default Rates are Rising: “Carpe Diem!” Fixed mortgage rates fell to the lowest level in six decades for the second straight week. But few Americans can take advantage of the historically low rates because they are unable to qualify for new loans or refinanced mortgages. Freddie Mac said on Thursday September 15th that the average rate on the 30-year fixed mortgage fell to 4.09 percent this week, down from 4.12 percent. That’s the lowest rate seen in 60 years, going all the way back to 1951. The average rate on the 15-year mortgage, a popular refinancing option, fell to 3.30 percent from 3.33 percent. Economists say it is likely the lowest rate on the 15-year ever. Mortgage rates tend to track the yield on the 10-year Treasury note. Worries over Europe’s debt crisis are pushing investors to shift money into safe Treasuries, forcing the yield lower.

Let your clients and any qualified residential rental property investors that now is the best time ever to find new financing on homes to buy. If they have existing mortgage loans that are at higher rates or loans that are about to expire, recommend some eager lenders in your area who will help them take advantage of these record low interest rates. Some lenders are very motivated to offer financing in areas where the number of people needing affordable rental housing meets or exceeds the current supply. Many of these lenders are lowering and even waiving the loan charges and origination fees.
Today we learned that default notices sent to delinquent U.S. homeowners surged 33 percent in August from the previous month. Why is that important? Because it’s a sign that lenders are speeding up the foreclosure process after almost a year of delays, said RealtyTrac Inc. (http://www.realtytrac.com/trendcenter/trend.html).

California, Florida and Michigan were leading the nation in foreclosure activity as of the end of August. Nationwide 1 out of every 570 housing units received a foreclosure filing in August 2011. So the number of dislocated, former homeowners continues to increase. Their income may still be adequate though, and they’ll be looking for affordable rental housing.

Lenders seized 64,813 properties in August, a 4 percent decline from the previous month and a 32 percent slump from a year earlier, according to RealtyTrac. However some industry analysts are predicting that the jump in default notices means repossessions will probably increase in coming months as more foreclosures are processed. Some incredibly good “deals” on houses and duplexes appear to be growing in number around the nation.

Let your owners know this is “the best of both worlds”—low buy-in prices and record low interest rates with many motivated lenders. That’s a “perfect storm” for increasing your client’s rental unit inventory, and increasing your income. Meantime you’re owner-clients will realize you’re the “heads up” property manager who’s looking for ways to keep them prosperous and their rental income expanding.

POTENTIAL TENANT’S BOUNCED CHECK HISTORY

Wouldn’t you like to find out if an applicant has written bad checks before you hand over the keys to your property?

 

It’s easy to find out, because the TeleCheck® Check Verification Service is available to AAOA members.

 

TeleCheck is well-known for assisting merchants in separating good check writers from bad ones, allowing them to adopt a liberal check acceptance policy that will benefit both the merchants and their customers.

 

These same national databases are available to landlords through AAOA and contain real-time information from more than 306,000 businesses and financial institutions.

 

TeleCheck offers the most accurate check verification service in the industry. These databases provide merchants with continually updated information including bad check activity as it occurs, automated inquiries using the consumer’s identification (Driver’s License or State ID) as well as checking account data.

An applicant’s check writing history can indicate what type of renter they will be.

The basic Verification service quickly separates good and bad check risks using TeleCheck’s negative database. This database comprises more than 51 million bad check records and can help detect a poor rental prospect, as well as a fraudulent application.

 

The Verification with Risk Management service uses both TeleCheck’s check writer activity and negative databases along with its risk management system to identify not only bad check writing risks, but also good ones.

 

The risk management service utilizes TeleCheck’s risk and predictive-modeling systems to analyze over 30 variables to predict the probability of a check being good. These assessment tools include regression modeling, neural networks, & decision tree analysis.

 

To learn more go to www.joinaaoa.org

Original Article from American Apartment Owners Association

5 PRE-EVICTION MISTAKES TO AVOID

Time is money when it comes to evictions, and mistakes made along the way can cost a landlord both.

Are you sabotaging your own eviction cases?

What you do in the days and weeks leading up to an eviction can make or break the case when it goes to court.  Here are 5 common pre-eviction mistakes that you can avoid:

1. Thinking You Have the Upper Hand

Believing that your rights as a property owners will somehow trump the rights of the tenant is a costly mistake, especially if you develop a false sense of confidence when dealing with tenant problems.

Once the tenant is in the property, you are going to need very specific legal grounds to kick them out– like unpaid rent, a serious breach of the lease, an obvious nuisance or certain types of illegal behavior, or termination of a lease with proper notice.

Research the rules or seek legal advice to determine if you can rightfully bring an eviction in your situation, and find out how long your eviction might take–contested cases can take months. That may cause you to re-think your strategy with tenants.

2. Believing the Eviction Will Be a Slam-Dunk

It’s the landlord who has to justify the case to the court. Unfortunately, not all eviction laws–and not all judges, are landlord-friendly.

Your case will only be as good as your lease, and the supporting documentation that you collected during the lease term. If you are not in the habit of keeping meticulous records, now is a good time to start.

Many evictions are contested. That means the condition of the property or a claim of uninhabitability may be fair game to fight the order for possession, or to reduce damages owed by the tenant. Has the unit been treated for bedbugs? Did the air go out over the summer? Did you charge one tenant late fees but not another? All will be revealed when the case goes to court.

3. My Lease Will Save the Day!

True–if it’s a good lease. Often leases fall short by not providing clear language regarding key elements. Examples may include having no provision defining when your tenant is in default in rent payments, late rent based on rolling late fees that can be construed as illegal, or not restricting the behavior you are trying to evict over.

Some provisions that are ’standard’ in packaged leases may be illegal in your situation. Have an experienced attorney in your area review your lease agreements.

4. Little Mistakes Won’t Matter

The entire eviction case hinges on proper notice to the tenants. All tenants must be notified in whatever fashion the local laws require.

The notice must be flawless–no misspelled names, timelines must be exact.

Trying to draft and serve eviction notices yourself if you are not familiar with the law can set the stage for failure–get ready to have the case dismissed, and start the whole process over again.

If you don’t know how to complete the notice forms and have them served, get help before you waste time and money.

5. I’d Never Pay a Tenant to Move Out

‘Cash for keys’ settlements–paying the bad tenants to leave, aren’t palatable to some landlords on principle. But considering the time span of the ‘average’ eviction along with the additional costs of a sheriff’s officer, a moving company, storage or possible sale of tenant’s property, cleaning, and repairing any ‘hard-feelings’ damage to the unit, it may make sense from a financial prospective.

If you can compromise with your nightmare tenant for a quicker move-out time, without leaving their mark on your unit, it could save you hardship down the road.

Original Article from AAOA-Find out more at www.joinaaoa.org.

 

CARBON MONOXIDE POISONING DEVICES NEEDED IN CALIFORNIA

SB 183 enacts the Carbon Monoxide Poisoning Prevention Act of 2010 that requires an owner of a dwelling unit intended for human occupancy to install an approved carbon monoxide (CO) device in each existing dwelling unit with fossil fuel burning heater or
appliance, fireplace, or an attached garage, within the earliestapplicable time period as follows.

For all existing single‐family dwelling units intended for humanoccupancy on or before July 1, 2011; and, for all other dwellings intended for human occupancy on or before January 1, 2013

SB 183 also:

(i) requires landlords to maintain these CO devices within must be operable when the tenant takes possession,

(ii) allows the landlord, upon specified notice, to enter a rental unit to test and maintain the CO device;

(iii) makes the tenant responsible for notifying the owner of inoperable or defective devices in their unit, and

(iv) imposes a monetary fine on violations of these provisions.  SB 183 also revises the statutory transfer disclosure statement thata seller of a manufactured home or a one‐to‐four unit residential property must provide to a buyer to add specified disclosure statements regarding CO devices including that their installation is not a precondition of sale or transfer.”  (California Real Property Journal‐ Vol. 29 num. 1)

TOP 10 PROPERTY MANAGEMENT PITFALLS

A while ago, we did an amazing presentation on the Top 10 Property Management Pitfalls that can occur for landlords and managers.  Take a moment to review the information and let us know what you think.