Properties That I Do Like

Written by Apartment Management Magazine on . Posted in Blog

By Christopher Miller, MBA
Specialized Wealth Management

During nearly 20 years in the investment real estate business, and while completing a graduate degree emphasizing real estate finance, I have learned a lot about the types of rental real estate that I prefer.  Every day, I try to share this knowledge with my clients to help them grow their real estate portfolio while maintaining their cash flow potential.  I recently wrote a three-part series about Properties that I Don’t Like.  This month, I thought an appropriate topic would be a review of Properties that I Do Like.

Pets vs Animals in California and What You Need to Know

Written by Apartment Management Magazine on . Posted in Blog

Widget’s Way featuring Patti “Widget”

When renting a property to a tenant with pets you can pretty much set your own standards. You can ask for pet insurance, charge an additional deposit, require photos of the pet, require current tags, ask for additional pet rent, limit what type of pet’s you allow, you can even exclude pets altogether, etc. With pets the only rules would be yours and the governing parties, as I’m sure a pet alligator won’t fly with animal control or fish and wildlife.

When it comes to animals there are actual guidelines under the Fair Housing Act and The American Disability Act that apply differentiating between service animals, therapy animals, and emotional support animals, which can be both scary and tricky at the same.

Planning for the Family Trust and Real Estate Assets

Written by Apartment Management Magazine on . Posted in Blog

by Michael Trainotti

I have recently been involved reviewing a family trust executed by a husband and wife who owned a number of real properties besides the family residence. The husband died recently, and the family trust did not provide for his portion of the real estate to utilize either a decedent trust or marital trust (“A-B Family Trust”). Rather, everything is to be distributed to the wife under the terms of the family trust. The family wants to keep all of the real properties after the death of the wife.

Glendale Passes Rent Freeze

Written by Apartment Management Magazine on . Posted in Blog

By: Janet Gagnon, AAGLA

The Glendale City Council passed a rent freeze ordinance at 1:00 am on 11/28. The vote was 3-1 with City Councilwoman Paul Devine being the sole opposing vote. Councilman Vartan Gharpetian changed his vote to support the rent freeze once it was reduced from 6 months to 2 months after it becomes effective on December 27, 2018 and in exchange for staff drafting a Right to Lease ordinance to present to the City Council in February 2019. The rent freeze caps increases at 5% annually using base rents from September 18, 2018. Councilman Gharpetian also stated for the record that he would not vote for any extension of the rent freeze in February. There was strong agreement between all four City Councilmembers (Councilman Najarian had to recuse himself and leave the meeting) regarding a Right to Lease ordinance that would include the following elements: 1) 1 Year Written Lease offered to tenants, 2) Increases allowed up to 7%, 3) Increases above 7% would go to Mandatory Meduation to determine if justified (due to major repairs, renovations, mortgage interest increases, property taxes, insurance, utility rates, government assessments or fees), 4) if tenant unable to pay increases above 7%, then owner to pay relocation fees of 3 or 6 months of rent to tenant and 5) increases above 7% owner must provide 120 days prior notice.

Business Succession Planning Still Important in 2018

Written by Apartment Management Magazine on . Posted in Blog

By Michael Trainotti

In 2018 under current law, the estate and gift tax is $11,180,000 for an individual and $22,360,000 for a couple until December 31, 2025. However, for the closely held business, succession planning for the next generation and continuation of the closely held business is still very important.  The same is true for rental real estate that is owned by either a limited liability company (“LLC”) or a limited partnership (“LP”). This article will discuss both types of ownership.

LA County Votes 4-1 To Impose Temporary Rent Cap in Unincorporated Areas

Written by Apartment Management Magazine on . Posted in Blog

Despite voters rejection of Proposition 10, the Los Angeles County Board of Supervisors voted 4-1 Tuesday in favor of an ordinance to temporarily limit rent increases to 3 percent in unincorporated areas of the county.

Supervisor Sheila Kuehl, who championed the plan to limit rents while the county considers longer-term solutions, said an estimated 200,000 renters would be protected by the county ordinance.

Proposition 10, sweeping rent control measure, is soundly defeated

Written by Apartment Management Magazine on . Posted in Blog

Real estate parties heavily financed $75M campaign against the measure

Californians soundly voted down Proposition 10 on Tuesday, a victory for California’s real estate investors and a major blow to rent control advocates around the state.

If it had passed, Prop 10 would have repealed a state law barring new rent control measures in California, allowing local governments to pass broad new rent control laws. With 97 percent of precincts counted, the measure had only 38 percent of votes in favor. It needed more than 50 percent “Yes” votes to pass.

9 Facts About Renting You Can’t Ignore

Written by Apartment Management Magazine on . Posted in Blog

by Bruce MacDonald

Finding success as a property manager goes beyond simply renovating apartments and renting them out. In order to truly do the work of property management, you need to know what works and what doesn’t in regards to communicating with tenants, caring for the property, and navigating the legal side of renting. The following nine strategies are essential to growing your career as a property manager.

Why Kay Properties Prefers a Delaware Statutory Trust over a Tenant in Common (DST vs TIC)

Written by Apartment Management Magazine on . Posted in Blog

by Kay Properties

If you’re an investor considering a 1031 exchange in order to defer the Capital Gains Tax and its friends, chances are you’re looking at a Delaware Statutory Trust or a Tenant in Common to take a step back while your passive investment does the work for you. The real question is, which one is best for you? A DST or a TIC?

 

Please keep in mind that any investment comes with risks. We urge you to work with your Kay Properties representative to help you ascertain if the real estate aligns with your personal investment agenda and needs.

Legal Corner

Written by Apartment Management Magazine on . Posted in Blog

by Stephen C. Duringer, Esq. of the Duringer Law Group, PLC

Question.         I am a very conscientious landlord.  I want to ensure that my rentals are well maintained and that any maintenance issues are addressed immediately.  Every year, I send a notice to my residents informing them that I will inspect each unit.  I have been doing this for years without any problems.  This month I received a letter from one of my tenants telling me that I had no right to enter his apartment to look around, that he would not let me in.  What do I do?  Can I force my way in to do the inspection?

 

Answer.           Your policy of doing annual inspections is admirable, and is practiced by responsible landlords throughout California.  Most tenants welcome a responsible landlord’s actions in ensuring that all is well, and voluntarily cooperate in providing access upon the landlord’s reasonable request.  It is clearly in the best interest of all to ensure that any maintenance issues are promptly addressed, and that a spirit of communication and co-operation exists between a landlord and his residents.  Trouble is, your resident is right.  There is no specific provision in California law requiring a resident to allow the landlord access to merely “inspect” the premises.  California law states that a landlord can enter a rental unit only for certain reasons.   Those reasons are in an emergency, when the tenant has moved out or abandoned the premises, to make necessary or agreed repairs, decorations, alterations, or other improvements, to show the unit to prospective purchasers, tenants, or lenders, to provide entry to contractors or worker who are to perform work on the unit, or to conduct a pre move out inspection at the end of the tenancy, pursuant to court order, or to inspect the smoke detector or inspect the installation of a waterbed.  Conspicuously absent from this body of law is the unfettered right of a landlord to just inspect for the pure sake of just making sure everything is all right.  You cannot force your tenant to allow access for the purpose of inspection. 

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