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Tom Brady’s Green Mansion Nears Completion

Bryan Ives — Thu, 22 Dec 2011 00:38:02 +0000

Tom Brady’s green dream mansion in Los Angeles is nearly completed, and should be quite the touchdown pass to environmentalists. The 22,000 square foot house of luxury includes a six-car garage, eight bedrooms, a weight room, a wine cellar, and a lagoon shaped swimming pool, reports the Boston Herald. The home also comes with a covered bridge connecting two wings of the home, a gallery, an elevator, and a nursery for his son Benjamin.

The home cost more than $20 million not to mention an additional $11 million for the 3.75 acres of land in Brentwood, Ca. The wife of Mr. Brady, Giselle Bundchen, happens to be a United Nations environmental ambassador with an implied duty to build an environmentally conscious residence. According to the Herald, the Brazilian supermodel had the home built with energy-saving lighting, rainwater recovery systems, waste reduction and recycling programs, energy efficient appliances, sustainable building materials, and solar energy integrated throughout the home.

According to Forbes magazine, Tom and Giselle can certainly afford the energy saving add-ons due to the fact they are the world’s highest-paid celebrity couple with annual earnings reaching $76 million.

Check out this video of the home!

Source: http://www.thepostgame.com/blog/dish/201112/nfl-stars-environmentally-friendly-palace

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MFR and SFR Property Management

Mary Girsch-Bock — Wed, 12 Oct 2011 19:08:07 +0000

While there are many companies that specialize in either multi-family property management or single family home management, some companies are able to do both successfully. If you’re currently making the transition from multi-family to single family home management, or are adding home management to your menu of services, there are a few things you will need to take under consideration:

Your lease template will need to change. You’ll be managing the entire property, not just the home. Multi-family managers are used to keeping common areas such as lawns, walkways and sidewalks clean and manicured. When managing a single family home, that job now falls to the tenant, so it’s vital that their lease reflect those responsibilities as well. Destroyed lawns and dead plants are now an eligible deduction on a tenant’s security deposit.

You’ll need to re-think your maintenance routine. When managing single-family homes, maintenance becomes a little more challenging. Rather than having a staff at the ready to fix routine maintenance problems, you’ll most likely be relying on a series of outside contractors to get the job done. Do your due diligence prior to needing a plumber or an electrician, so when you do need one, you’ll know exactly who to call.

Do a little research prior to accepting that new client’s home to manage and protect yourself from potential pitfalls down the road. Be selective. Take time to really examine the property, the surrounding area, and the neighbors. Make sure you’re not agreeing to manage a home that has a history of problems.

Update your move-in/move-out forms. These forms will now have to reflect the areas not previously considered when managing multi-family units. This includes windows, doors, outside areas, and fencing. Everything that is a part of the property should now be reflected on your walk-through sheets, or you’ll end up spending a lot of time and money between tenants repairing and redecorating.

Schedule annual inspections. It’s vital that managers do an annual inspection of the property for any major structural or mechanical issues. While this is a simple procedure usually performed by onsite maintenance, single family homes will need to be inspected to make sure that there are no major issues that need immediate attention. The inspection can help on two fronts: you’ll be able to assure the owner that the home is being properly cared for, and any issues that do pop up can be addressed in a timely manner, before they become a major problem, and cost the owner money.

While the specifics may be different, managing single family homes is much the same as managing multi-family units – you’re protecting the investment of the owner.

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Tenant Referral Fees

Mary Girsch-Bock — Fri, 30 Sep 2011 21:02:53 +0000

Tenant referral fees can be a great way to increase occupancy rates without spending a lot of money advertising. There are many advantages to instituting a referral program, including the following:

You have a large network of ambassadors of sorts talking up the advantages of living at your community. Some apartment communities can have upwards of 300 to 400 tenants, and they’ll all be working for you!

Good tenants tend to know reliable people. While this is not always entirely true, good tenants that pay their rent on time will likely not refer their unemployed cousin just to get a $100.00 referral fee.

If you work for a large property management company that currently has several rental communities, the management company can offer a referral fee for any of the properties. So if your tenant refers someone to a community across town that is in your management portfolio, the referral fee would still be paid.

Your tenants will feel like they are part of the community.

To make it easier on your staff, when paying referral fees, reduce tenant rent by the amount of the referral fee; typically $100.00. This makes it quicker and easier to process and eliminates the need to process multiple checks for tenants monthly. It also eliminates the possibility of the referral getting lost in the processing.

While the advantages are apparent, there are some things that need to be considered before implementing a referral program, including the following:

An influx of applicants that are not qualified to rent at your community. While most tenants will only refer quality applicants, others may send everyone they know. And it becomes your job to carefully screen those applicants.

Make sure your tenants know the rules: the applicant must sign a lease in order for the referral fee to be paid. Coming in to look at an apartment does not qualify as a valid referral. Likewise, the applicant must qualify in order for the referral fee to be paid.

Someone will need to carefully track the referrals that do come in and make sure that if a lease is signed, the tenant who referred the applicant/new tenant, gets the referral fee that was agreed upon.

Tenant referral fee programs can be beneficial to both property managers and tenants, if handled properly. By instituting a referral program that excites your tenants and benefits the property, you’ll have a win/win situation.

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Rental Applications: Knowing the Rules and Requirements

Marc Courtenay — Fri, 16 Sep 2011 23:44:57 +0000

As property managers, we confront the ever-changing process of attracting and qualifying new residents to fill vacancies. With the legal landscape also changing, it’s increasingly important to understand the laws governing rental applications in the state where we manage our rental properties.

Let’s begin with the state having the largest population; California. Here’s what a potential renter is told on the state’s web site for information by The Department of Consumer Affairs on the topic of “Looking for a Rental Unit” (http://www.dca.ca.gov/publications/landlordbook/looking.shtml): “Before renting to you, most landlords will ask you to fill out a written rental application form. A rental application is different from a rental agreement. The rental application is like a job or credit application. The landlord will use it to decide whether to rent to you.” Then it lists all the information that a rental application form will probably ask for and reminds the potential renter, “The application also may contain an authorization for the landlord to obtain a copy of your credit report, which will show the landlord how you have handled your financial obligations in the past.”

No matter what state you’re operating your property management business in, it pays to carefully study the instructions and clarifications that the state is posting to educate the public on their rights and the responsibilities of owner-landlords.

One of the other most populous states is Florida. The Division of Consumer Services of the Florida Department of Agriculture and Consumer Services has a similar page which explains the highlights of “Florida’s Landlord/Tenant Law—Summary of Chapter 83, Part II—Florida Statutes” (http://www.800helpfla.com/landlord_text.html). The State of Florida has its own style of explaining the “Oral and Written Rental Agreements” which they succinctly describe as follows: “A rental agreement is an agreement to rent property (commonly referred to as leases). Rental agreements may be either written or oral. “Most rental agreements are written because oral agreements can be subject to misunderstandings and are difficult to prove. A written rental agreement can be a formal contract, or simply a copy of a letter stating the rights and obligations of both the landlord and tenant. “Florida law requires that notices to and from a landlord must be in writing, even if the rental agreement is oral. You should always retain a copy of any correspondence to and from your landlord.”
Section 83.46(2), F. S.

“If the rental agreement contains no provision as to duration of the tenancy, the duration is determined by the periods for which rent is payable (week-to-week, month-to-month, etc.). All other terms are either those specifically addressed by law or those that are part of the agreement between you and your landlord.”

My point is that as property managers we need both continuing updates and sometimes legal guidance on what the state laws dictate and how they may have been recently changed and interpreted. Before you go to any great expense, locate, print out and study the specific text in your state’s website and make sure your rental applications comply specifically with the rules that protect the rights of anyone who may be applying to fill one of your vacancies.

In future articles I hope to offer more ideas on ways to simplify the process of making sure you have a rental agreement that is consumer-friendly and legally “bullet-proof”.

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With Few Vacancies, Rents Rise in San Francisco

Nora Betz — Thu, 18 Aug 2011 23:00:56 +0000

Apartment rents are on the rise in San Francisco, CA. San Francisco has historically been a city full of renters with only about 1/3 of its residents owning their homes. Real estate agents speculate that the new demographic of renters today is centered around the booming tech industry in the area. These young workers prioritize the location of their apartment above other amenities and are willing to compete for the space and pay top dollar for it.

Deborah Brown works for J. Wavro Associates as a leasing agent and this company specializes in residential leasing and relocation assistance. Deborah says that “it’s a crazy rental market right now; it’s out of control…There is so much more demand out there than there is supply.”

Reports show that vacancy rates continue to drop year after year while rent prices go up. Currently, San Francisco reports a 4.2 percent vacancy rate compared to 5 percent just two years ago.

Hessam Nadji is the managing director at a real estate company called Marcus & Millichap. He explains this shift by commenting that “the housing crash is still fresh, and homes are not being viewed as an attractive investment. Renters like the flexibility and mobility of being an apartment dweller, being close to work, and the benefits of the urban lifestyle.”

How much would you pay for a city apartment in the location of your dreams?

Source: http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2011/08/11/MND91KLCIE.DTL

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Property Manager Fined $85K for Breaking Lead Paint Law

Nora Betz — Thu, 22 Jul 2010 13:01:40 +0000

Boston landlord, John C. Jones, is being fined almost $85,000 for failure to properly disclose the presence of lead-based paint to his tenants. “Lead from paint, chips, and dust can pose serious health hazards if not taken care of properly,” says the Environmental Protection Agency. According to the EPA, Mr. Jones managed several properties in the Roxbury and Dorchester areas and failed to disclose information on the dangers of lead paint exposure to tenants prior to them moving in and while signing their lease agreements.

The E.P.A. is now enforcing lead-based paint requirements that went into full effect this April. These rules apply to all people from contractors to property managers who may be renovating a house or apartment building that was built when lead-based paint was common.

The Federal government banned the use of lead-based paint in 1978, so if your building was constructed before that year, chances are you have a lead-based paint compliance issue.

See the EPA website for further details: http://www.epa.gov/lead/pubs/leadinfo.htm

The EPA (United States Environmental Protection Agency) states the following:

Federal law requires that individuals receive certain information before renting or buying a pre-1978 housing:

LANDLORDS must disclose known information on lead-based paint and lead-based paint hazards before leases take effect. Leases must include a disclosure form about lead-based paint.

SELLERS must disclose known information on lead-based paint and lead-based paint hazards before selling a house. Sales contracts must include a disclosure form about lead-based paint. Buyers have up to ten days to check for lead hazards.

Source:
“Boston Landlord Faces Nearly $85K Penalty for Failure to Disclose Lead Paint to Tenants”
http://yosemite.epa.gov/opa/admpress.nsf/0/2b5616f3bcb7717a85257766005eb232?OpenDocument

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Resident Application Approval Process: Red Flags

Mary Girsch-Bock — Tue, 29 Jun 2010 18:05:08 +0000

In my last article, Resident Application Approval Process: Key Indicators, I discussed the areas to look at when reviewing an applicant’s credit history. What follows is a list of potential red flags.

Late Utility Payments
It normally takes several late payments for a utility company to report customers to a credit bureau. This is important because like a rent or mortgage payment, utilities are a necessity and a repeated failure to pay utility bills may more accurately predict the failure to pay rent.

Prior Evictions
This is a big, big red flag for many different reasons. While property managers know that there are many reasons for tenant evictions, the reason will not be listed on the credit report. If you find yourself inclined to rent to an applicant with a prior eviction, contact the previous landlord and find out why they were evicted. Did they lose their job? Were they going through a divorce? Or did they simply skip out on their lease?

Credit Status
Obviously, it’s best if your applicant pays their credit card bills on a timely basis, but an occasional late payment is not cause for alarm. A better category to check is the applicant’s credit limit and any over-limit charges. Consistently exceeding credit limits can be an indicator of two things; applicants are living beyond their means, or they’re using credit cards to pay bills. Either reason is cause for alarm.

What Really Doesn’t Matter
Perhaps your applicant ran into financial problems several years ago, but since then has worked hard to straighten out their problems. While old credit issues are certainly worth questioning an applicant about, if there are no recent issues listed on the credit report, it should not be a deal breaker. Another issue frequently raised are unpaid medical bills. With more people facing a reduction in health care benefits, or loss of insurance altogether, unpaid medical bills should not play any significant role in determining the credit-worthiness of an applicant. Yes, in some cases it may show a lack of responsibility, but it should not be the determining factor in applicant approval.

What all of this means for the property manager is that a credit score is not the only factor to take into consideration when approving an application. While you may have to spend more time up front in order to determine the credit risk an applicant poses, what you’ll likely receive in return is a solid, dependable tenant; something that all property managers desire.

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Resident Application Approval Process: Key Indicators

Mary Girsch-Bock — Thu, 17 Jun 2010 14:00:35 +0000

Years ago, approving applicants was a relatively simple process for property management companies. You checked an applicant’s credit report, perhaps called a former landlord, verified employment, and soon you were taking deposits and setting up a move-in date.

Like many other things, the rules have changed. Sure, you still do all of the things you did before. But now, many property managers are finding themselves faced with applicants that are presenting with a significantly lower credit score than in previous years.

There are numerous reasons why a credit score can take a sudden dive. Company cutbacks, massive job layoffs and the mortgage industry meltdown have all equally contributed to the lowering of credit scores of people who in previous years were excellent credit risks.

But should a lower credit score automatically eliminate applicants from consideration?

In many cases, no.

There are exceptions (which will be discussed in Part II of this article). With a slowed economy and a long recovery period forecast, the rental market will continue to strengthen due in large part to those pushed out of the home ownership arena, either by choice or necessity.

There are many reasons behind this jump in potential renters. Many future homeowners are now waiting for a more stabilized economy before buying a home. These applicants rarely pose a problem; they have a steady job and a decent credit score. But what should you do about the applicant whose credit score has dropped as a direct result of the economic downturn?

If you know what to look for on a credit report, you can acknowledge the risks up front and make a decision based on not just a number, but the history behind that number as well.

What can you look for to determine applicant risk?

Rental History
The rental history of an applicant is by far the most important area that property managers should review. A history of timely rental payments and a good landlord reference should carry more weight than just about anything else.

Steady Employment
Steady employment is another important marker. Combining a solid employment history with a solid rental history indicates the level of responsibility that every property manager desires in their residents.

Area Ties/Involvement
Is your applicant an established member of the community? Does he or she have letters of reference from employers or former landlords? The more they’ve invested in the community, the more likely they are to be a good resident.

In Part II, we’ll discuss what areas are red flags.

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May Property Management Marketing Ideas

Heather Blume — Fri, 07 May 2010 18:45:08 +0000

I know that by the time I start seeing snippets of sunshine peeking through the Seattle clouds, the rest of the country must be 3 or 4 weeks into the beautiful weather that late April and Early May bring. You know, those awesome days before the crushing heat and humidity set in – what I like to call, “open window weather.” As long as the outside is enticing, people will do the most that they can to spend time in it, which hopefully means a spike in on-site traffic for you!

Here are a few great ways to combat 30-year-high apartment vacancies and capitalize on May weather marketing:

I Want to Ride My Bicycle
May is national bike month, making it only natural to tap into the desire to spend time out in nature! If you are a property in a bike friendly place, why not offer to get your potential residents “moving” by tying a new bike to their concession? Numbers don’t lie – bike sales are up by 8-12% nationally. Not only does this concession cost less than “FREE RENT”, but it can prove to be incredibly enticing for certain demographics, such as the eco-friendly crowd, the person buying who has kids (who are far more likely to see the immediate gratification in this idea), and the idea works great for a property that charges for parking or for a property in an a busy metro area where not everyone is always going to have a car. If you want to kick it up a little, check out the new trend in electric powered bicycles. They’re already all the rage in London, and it’s not too long before the fad crosses the pond!

When Life Gives You Lemons
Remember how cute those neighborhood lemonade stands are in the summer time? Why not grab on to that for your weekend traffic? Either take shifts or move your office outside to the front of the community for the day and offer to show your new residents how your property can really take lemons and turn them in to lemonade! (Worried about missing phone calls? I’m on it! Just forward your phones to the property cell phone while you’re minding the store!) This is a fun and laid back idea not only for your new residents, but also for your staff! And you might think about letting your staff dress down a bit for the weekend – when was the last time you saw someone run a lemonade stand in a suit?

myPad
Some people are so tied to technology and their electronics that it’s hard to get them outside. There’s little doubt that the big player in electronics currently is an iPad. Again, this is a purchase that perhaps someone might not make for themselves, but an offer for them to get an iPad (or even a chance to win one) when they choose to make your apartment their “myPad” is a catchy special that will get attention! This sort of an idea works best with a young Gen X to Millennial demographic, so if you work on a 55 and over property, you might not want to try this one.

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Yet Another 5 Inexpensive Ways to Improve Rental Properties

Marc Courtenay — Thu, 06 May 2010 00:02:23 +0000

Property owners and managers are competing for new residents at an advantageous time. Depending on the area, more people are looking for rental properties now than last year at this time.

One reason is that fewer people can qualify for mortgages. Thus, there are fewer qualified homebuyers.

We are also hearing anecdotally that many areas are still experiencing higher-than-normal vacancy rates.

So to compete effectively and economically, property managers are “turning up their imaginations” to make their properties more desirable. Here are five ideas to consider:

Remove old or tattered window coverings and replace them with inexpensive Venetian-style blinds. Choose neutral colors and models that are easy to replace.

Install portable “odor-eating” air purifiers. If your rental units smell clean, prospective residents will notice. You can also buy some inexpensive plug-in room deodorizers and create the ambiance you think pleases the nose.

Replace the knobs and handles in the kitchen cabinets if possible. Any qualitative touches you can add to your kitchens including sufficient lighting will make your rental feel more like home.

Yes, as we mentioned before, consider putting up a new shower curtain and rod in the bathroom. If you want to go a step further, add a bigger, nicer mirror as well. They are not expensive, and many times, the bigger the mirror, the bigger the bathroom looks.

Make sure the inside of the refrigerator is extra clean and smells great. You can add to the appeal by placing some fresh-baked cookies inside the refrigerator. Offer one to your prospect, and they will remember how kind and thoughtful you were.

Property managers would be wise to leave a lasting impression on everyone who comes to look at a vacant property. One way is to have an attractive, color flyer or brochure with a list of all the advantages of being a resident at the property you manage.

Don’t be afraid to add creative touches. Something as inexpensive as placing a couple of flowering indoor plants on the kitchen counters may brighten the interior and indirectly remind the prospective resident that your property is livable and cozy.

As property managers, we have to be careful when sizing up potential residents. If we also remember to be friendly and courteous, we will brighten their day and leave a positive memory about your property.

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