You’ve Seen Them Advertised on Television – Now Our Loan Expert, Laura Hertz, Explains

By Laura Hertz, Loan Officer, CSMC Mortgage

What is a Reverse Mortgage?

A reverse mortgage is a loan that allows homeowners and homebuyers aged 62 or older to convert some of their home equity into cash or a line of credit.  Some reverse mortgage loans also let homeowners finance a new home purchase.  With a reverse mortgage, a borrower does not make loan payments and they may continue to live in and own their home.  Unlike a home equity loan or home equity line of credit (HELOC), borrowers do not have to repay a reverse mortgage until the home is sold or the last surviving borrower (or a non-borrowing spouse) no longer lives in the home. The homeowners / borrowers; however, must always maintain the condition of the home and always stay current on the property taxes and hazard insurance.

The best apartment leasing incentives are the ones that entice renters (without hurting your bottom line). That can take trial and error to get right. Some renters may not be enticed by a waived security deposit, but they might be interested in flexible lease terms. Every community, and every renter, is different.

Let’s explore the incentives property managers can use to attract renters. At the end of the article, we’ll also touch on three leasing incentives that don’t work and explain why.

1. Resident referral program

The first apartment leasing incentive on our list is actually more of a benefit for current renters. The incentive could be reduced rent or even a free month of rent. A resident referral program is a great way to build a stronger, tighter community. After all, residents will be “paid” to live closer to friends or family. If you have a program like this, make sure your internal communications are promoting it repeatedly.

And don’t forget: Happy renters are more likely to provide references, and they’re more likely to leave positive property reviews.

By San Diego Gas & Electric

High winds, dry vegetation, and low humidity continue to elevate the risk and frequency of major wildfires across California. When these weather conditions occur in combination, your electric utility may need to temporarily shut off power to help prevent wildfires.  This temporary outage is called a Public Safety Power Shutoff (PSPS) and while inconvenient, it is a preventative step that must be taken to help keep customers and communities safe.

By David Evans, Multifamily Advisor, KW Commercial

For the past two and a half years, rental housing providers in the Greater Los Angeles Area, from owner-occupied duplexes to 4-unit apartments buildings to the largest apartment communities have seen their rental income squeezed by the lingering effects of eviction moratoriums coupled in some instances by moratoriums on rent increases, which protections have been extended through to another year. Compounding the effects of the eviction moratorium is record high inflation (9.1% as this article is being written) causing the cost of materials and utilities to increase significantly over last year.

While the strong real estate market in 2021 and the first quarter of the current year allowed many owners to refinance existing debt at historically low rates, allowing them to mitigate their mortgage costs or tap into equity to carry them through the long months of COVID-19 as they waited for payments from the state’s Emergency Rental Assistance Program, as of March 31^st of this year, the rent assistance program has been closed and no longer taking applications.

Periods of extreme optimism and those mired in a rising-inflation environment are circumstances the multifamily housing industry has dealt with before.

But rare is today’s mood, according to RealPage’s Jay Parsons, “I’ve never seen so much exuberance about the ‘now’ and anxiety about the ‘future’ all at one time.”

Parsons is the property management software firm’s vice president, head of economics and housing. He sat with Daniel Mahoney, managing director, LaSalle Investment Management; and Grant Montgomery, VP of Research, WashREIT; during a panel at National Apartment Association’s Apartmentalize conference recently in San Diego.

California’s Senate Bill 721 (SB721) and Senate Bill 326 (SB326) Mandate Compliance by Statutory Deadlines

By Omid Ghanadiof, EEEAdvisor Engineering

Get ready!  January 1, 2025 is the deadline for compliance with both Senate Bills 721 and 326 for multifamily rental properties and condominiums that contain three or more dwelling units.  Applicable residential property owners and homeowners’ associations (HOAs) throughout California must have inspections of balconies and exterior elevated elements at their properties.  Property owners and manages, and HOAs should seek the help they need before the deadline and become familiar with the inspection criteria to ensure they are in compliance with the so-called “California Balcony Inspection Laws.”

What Must Be Inspected?  Exterior Elevated Elements (EEEs)

These two state laws are designed for buildings that contain three or more dwelling units. Senate Bill 326 is for condominiums, and Senate Bill 721 is for apartment buildings.  The laws emerged following a balcony collapse in the City of Berkeley, which then established a local balcony inspection ordinance, and many of the local ordinance’s provisions have been incorporated into state law.  Accordingly, required inspections must be made to any elevated element structures.  Exterior Elevated Elements are building elements that are constructed of wood, have a walking surface, have any portion sitting 6-feet above the ground, and that extend outside of the four walls of a structure.  Exterior Elevated Elements include balconies, outside decks, porches, exterior stairways, and exterior walkways that have a walking surface that is elevated more than six feet above ground level according to these ordinances.  Required inspection includes waterproofing system supports and railings, and load bearing component.

With dire weather events such as the current California drought, it’s as crucial as ever to reinforce conservation practices as a property owner or manager. Water and energy conservation efforts will protect community lifestyle and, equally as important, allow you to increase the net operating income (NOI) of your property. Across the country, property owners are seeking solutions for revenue generation since the usual tactics – like raising rent – aren’t always possible.

A great – and obvious – way to increase your NOI is by focusing on reducing consumption, thereby reducing expenses. With a utility-centered approach, you can increase your property’s income and help the planet. The approach is simple: cut costs by cutting back utility use. Here’s how a focus on conservation education can positively impact your expenses, lifestyle, and the environment.

I’m Talking Trash and More!  Government Continually Antagonizes “Us” by Charging Higher Fees and Providing Subpar Services!

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

Dear Kari: Sometimes I feel as though our local government has something against property owners and continues antagonizing us through our trash companies – what do you think?

Well, I can see why you think that the “powers that be” are trying to screw us over – it is because they are.  Only cruel people would kick someone when they are down, and our government is kicking us as hard as they can in the ribs while we are literally begging for help while being down on the ground. 

By Marc Frenkiel

In a previous article, we pointed to data showing that despite leasing agents’ desire to grow their careers, many are not seeing opportunities to do so at their current place of employment. For leadership, this presents an opportunity to show leasing agents — often in the entry level of their careers —  how to grow their careers and prepare them for leadership roles. In the meantime, your leasing staff still has an important job to do, and it’s one that data shows can be optimized in numerous ways. So while you are showing your leasing agents how they can gain valuable skills that will prepare them for a successful career, it’s important to consider optimizing the lead-to-lease process so that they can perform at the top of their game.

Short-term rentals (STRs) that are facilitated by online platforms like Airbnb have been the subject of intense debate across the U.S.  Local governments around the globe, including several cities in the U.S., have responded quite differently towards regulating STRs. Most cities have not significantly regulated these platforms, but a limited number of cities have recently put severe restrictions in place.   

The truth of the matter is that opposition to multifamily home sharing runs smack up against powerful demographic trends and market demand. And while the pandemic has been an inflection point, change was already taking place in the multifamily sector. Studies indicate that this “living as a service” model has already proliferated multifamily properties nationwide, albeit “under the radar.”