Ask Kari: “Karen Tenants: How to Keep the Drama at Bay”

Written by Apartment Management Magazine on . Posted in Blog

By Kari Negri, Chief Executive Officer, SKY Properties, Inc.

  • Dear Kari, I’m about at my wits end…One of my tenants is so demanding that it’s making me crazy? What should I do?

Karen (Slang / Noun):

A slang term originating from internet culture and popularized in the 2010s used to describe a stereotypical person, who exhibits entitled and demanding behavior. Typically associated with individuals who frequently complain, make unreasonable demands, and seek to assert authority over others in various scenarios; often characterized by an inflated sense of self-importance, a tendency to escalate minor issues into conflicts, and an expectation of receiving preferential treatment.

As property rent regulations continue to lean in the favor of tenants, dealing with tenants can get trickier. Now more than ever, tenants are savvier about what they are entitled to, and they are not afraid to speak up. At the very least, they expect proper living conditions and fair treatment, but sometimes entitlement creeps in and the requests surpass the basics. New air conditioning and heating, new flooring, extra parking, special privileges…the expectations from renters are higher than ever before. Many of today’s tenants will have no reservations about negatively hitting your social media or trying to rally city departments to get their way.

Independent Rental Owners Face 3 Myths We Need To Bust

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By Max Glassburg

In the world of independent rental owners (IROs), there are a few myths we need to bust. These falsehoods can negatively impact rental property owners who believe them and miss out on the full potential of their businesses.

This article is based off a panel discussion Yardi Vice President Chris Ulep took part in at the National Apartment Association’s (NAA) premier rental housing industry event, Apartmentalize, that took place June 2023. They discussed three myths:

  1. IROs are all small businesses
  2. Most IROs are too small to use technology or automation
  3. IROs cannot impact communities as much as a large rental operators

The Age of Wealth Redistribution

Written by Apartment Management Magazine on . Posted in Blog

Our industry is likely at a key strategic inflection point. An inflection point facing an industry is discussed by Andy Grove, founder, and former CEO of chip maker Intel, in his book Only the Paranoid Survive. He describes a key inflection point as a time in the life of a business when its fundamentals are about to change. He cites six categories of cataclysmic changes: competition, technology, customers, suppliers, complementors, and regulation (emphasis mine). He explains that strategic inflection points creep up on you gradually. “They are often not clear until you can look at the events in retrospect.” [1]

We face a tsunami of adverse regulation which is increasing in force and effect and is unlikely to abate in our lifetimes. How can I make such a bold statement?

Save Money by Encouraging Residents to Conserve Utilities

Written by Apartment Management Magazine on . Posted in Blog

Livable Content Team

As a Housing Provider, managing expenses is an essential aspect of maintaining a healthy return on your investment and ensuring long-term success. One area where costs can add up quickly is utilities, such as electricity, gas, wifi access, sewer, trash collection and – especially – water. Utility costs continue to rise and water bills have shot up dramatically over the last several years in many areas. 

By encouraging your Residents to conserve any master-billed utilities, you can not only reduce operational costs but also contribute to environmental sustainability. Read on for effective strategies to motivate Residents to conserve utilities, ultimately saving everyone money.

Delaware Statutory Trusts FAQ: Frequently Asked Questions on DSTs

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By Dwight Kay, Founder and CEO, Kay Properties and Investments

Forward:
As one of the nation’s leading expert real estate investment firms specializing in Delaware Statutory Trust investments, Kay Properties is regularly asked about the nuances and strategies surrounding Delaware Statutory Trust investments for 1031 exchanges or direct cash investments. Recently, I sat down to discuss some of Frequently Asked Questions investors ask regarding Delaware Statutory Trusts and 1031 exchanges. I recorded and transcribed this informative article, so investors can have easy access and use it as a reference for their own Delaware Statutory Trust and 1031 exchange questions.

I believe this is a “must-read” interview for any potential investor because I provided a straight-forward and direct answers to the most frequently asked questions regarding Delaware Statutory Trusts.

Key Takeaways:

  • What is a Delaware Statutory Trust (DST)?
  • How does the Delaware Statutory Trust Differ from a Tenant in Common (TIC) Investment?
  • Are Delaware Statutory Trusts Eligible for 1031 Exchanges?
  • How are the Proceeds from Delaware Statutory Trusts 1031 Properties calculated?
  • What is the Typical Hold Period for Delaware Statutory Trust properties?
  • Can you 1031 Exchange out of a Delaware Statutory Trust?
  • What are Some of the Advantages of Delaware Statutory Trusts?
  • What are Some Examples of Delaware Statutory Trust 1031 Properties?

Three Simple Maintenance “Hacks” to Keep Your Building Healthy

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By David Crown, Chief Executive Officer, Los Angeles Property Management Group

I once knew someone who ignored a termite report, thinking the problem couldn’t really be that bad. They then had to completely reframe a four-unit building, replacing every single piece of wood in two of the units. Who was the foolish owner in that scenario? That was me. I was relatively lucky—it only ended up costing me about $50,000 to fix that quadruplex in Silverlake, but that’s still an expensive lesson, and believe me, I learned it. I’ve been in property management for three decades now, and in that time, I’ve seen the best and the worst of what this industry has to offer, ranging from impressive workmanship to a few tragic mistakes.

Declaring a ‘Right’ to Housing Won’t Solve Homelessness

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Instead, try making it easier to build more housing!

STEVEN GREENHUT

Several California Assembly members this year introduced a constitutional amendment that declares housing a “fundamental right.” Who knew? Lawmakers have wrestled with innumerable complex issues over the years, but finally someone realized that all they needed to do to magically solve any problem is to pass a new “right” to something.

Expected soon: constitutional amendments declaring “rights” to a million dollars, to a brand-new electric SUV, and to a dog that’s properly housebroken. Sorry for the facetiousness, but Assembly Constitutional Amendment 10 epitomizes the lack of seriousness we’ve come to expect from the Legislature. Actually fixing the housing problem is a tough slog.

ASK KARI: Pets and Their “Paw-rents,” the Perfect Combo in Pet-Friendly Living!

Written by Apartment Management Magazine on . Posted in Blog

By Kari Negri, Chief Executive Officer, SKY Properties, Inc.

  • Dear Kari, how should I handle allowing tenants with pets?

In recent years, a remarkable trend has emerged that is reshaping the way we view pet ownership—the rise of the millennial “Paw-rent.” With millennials’ unique values, lifestyle, and priorities, they are leading in a new era of pet companionship that reflects a deep connection with their furry friends. Gone are the days when pets were simply seen as “man’s best friend” or mere companions. For millennials, pets have become cherished family members, their babies, confidants, and sources of comfort in an increasingly fast-paced and interconnected world.

Rent Control to Be on November 2024 Ballot: For the 3rd Time!

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Weinstein / AIDS Healthcare Foundation Again Seek to Dismantle Costa-Hawkins Protections

A rent control ballot initiative very similar to past efforts under Propositions 10 (2018) and 21 (2020) has once again qualified to be on the ballot for the upcoming, November 2024 vote. On July 26th, the California Secretary of State confirmed that the AIDS Healthcare Foundation initiative, the Justice for Renters Act, had gathered the required signatures to be eligible for the ballot. The initiative, if passed, would repeal the Costa Hawkins Rental Housing Act of 1995 and would allow local jurisdictions to impose the most extreme forms of local rent control on rental housing providers, including the placement of limitations on rent increases for new construction, single family homes and condominiums, and also vacancy “control” allowing cities and counties to dictate the rent that can be charged for a vacant unit.

This represents the third time in four election cycles that the AIDS Healthcare Foundation and its President, Michael Weinstein, has attempted to eliminate the Costa Hawkins Rental Housing Act through a ballot measure. Supporters of this latest effort had gathered more than 800,000 signatures in favor of the ballot measure while only needing 601,317, according to the Secretary of State’s Office.

While Propositions 10 and 21 were ultimately rejected by California voters, rental housing providers and realtor groups had raised $80 million to $90 million for each such opposition effort. According to Daniel Yukelson, Executive Director of the Apartment Association of Greater Los Angeles, “Like past Weinstein ballot measures, if this latest effort were to pass it would clearly be a “bankruptcy bill’ for rental housing providers across the state.” Yukelson further stated, “Anyone who provides rental housing or that even owns any type of residential real estate better get out their checkbook and support the opposition campaign before it’s too late.” Go to: www.aagla.org/issuespac

Roofing 101 Series: Restoration Coatings

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Industrial Suntan Lotion

Authored by Steve Pinkus, Owner of Royal Roofing Company

The phrase “out with the old and in with the new” sounds great at first, but new often equates to expensive. On the other hand, doing nothing doesn’t help, and ongoing maintenance only works for so long.

If you qualify, a full roof replacement can often be avoided with a roof restoration coating. If your roof is tired from battling the elements, you can likely bring new life to it with a rejuvenating system. A variety of coating options can be used in a restoration that is like a spa day for your roof. They revitalize in the short term, and in some instances, you’ll never have to replace your roof again.