Better (and Cheaper) Ways to Boost Senior Living Occupancy

Written by Apartment Management Magazine on . Posted in Blog

by Guy Lyman, RealPage, Inc.

Solid occupancy numbers often blind senior living property managers to a glaring problem: the cost of keeping those units full.

Add up what you’re spending on third-party lead sources along with internal resources devoted to working leads and you’d probably be shocked at your cost per lease. The good news is that forward-thinking senior property managers are slashing this cost dramatically by simply taking full advantage of marketing tools that have been around for a while now.

Why California Has the Nation’s Worst Poverty Rate

Written by Apartment Management Magazine on . Posted in Blog

By Ryan McMaken, Mises Institute

The LA Times recently reminded its readers that California has the highest poverty rate in the nation. 

Specifically, when using the Census Bureau’s most recent “Supplemental Poverty Measure” (SPM), California clocks in with a poverty rate of 20 percent, which places it as worst in the nation.

To be sure, California is running quite closely with Florida and Louisiana, but we can certainly say that California is a top contender when it comes to poverty.

This continues to be something of a black eye for California politicians who imagine themselves to be the enlightened elite of North America. The fact that one in five Californians is below this poverty line doesn’t exactly lend itself to crowing about the state’s success in its various wars on poverty.

Many conservative sites have seized on the information to say “I told you so” and claim this shows that “blue-state” policies fail. One should be careful with this, of course, since there are plenty of red states in the top ten as well.

4 Important Questions to Ask Yourself Before Purchasing a Vacation Rental Home for Income

Written by Apartment Management Magazine on . Posted in Blog

By Rob Stephens

Interested in renting out your yurt, tiny house or couch? Now there are several options homeowners have to make extra income. For those looking to purchase a second home, often called a vacation rental home, renting out to vacationers is a great way to afford purchasing an additional property. Not to mention, for a growing number of travelers, renting a private home is the only way to go and typically offers more choices, comfort and privacy than hotels, and often cost less as well.

There’s no question that the vacation rental business is booming. In the United States alone, revenue in this market is approaching $18 million, with a projected annual growth rate of 6.6 percent. That makes operating a short-term vacation rental an extremely attractive option for generating extra income.

While there are plenty of opportunities in the vacation rental business, there also are plenty of questions about how to succeed. If you’re thinking about investing in a vacation rental property (or renting out property you already own), here are the top four questions to ask before you purchase:

Why Debt Can Hurt You: DST 1031 Exchange Property Market Insights – Example DST 1031 Case Study

Written by Apartment Management Magazine on . Posted in Blog

By Chay Lapin, Senior Vice President, Kay Properties & Investments

Recently a client in a 1031 Exchange with $4,000,000 of equity was working with another registered representative and talking to a sponsor directly. In talking with Kay Properties and Investments, they learned that we specialize in DST 1031 Exchanges and that we have access to a variety of DST properties from many DST sponsor companies throughout the industry.

After we hosted the family at our Los Angeles Headquarters and they had a chance to visit with our team, we learned more about their situation.

The building they were selling was debt free. In this scenario, the client could go into DSTs that are debt free with no mortgage. This means that these DST properties could never be foreclosed on by a lender and do not carry the risk of mortgage maturity and refinancing.

Support Our Troops? Support Education Choice For Their Kids

Written by Apartment Management Magazine on . Posted in Blog

By Craig P. Alexander

Among the many burdens we place on military families, there’s frequent re-location from one military duty station to another – one year you’re in North Carolina, the next in Southern California or Norfolk, Virginia or even Germany or Japan. These are not combat zones but some of the places the military send both the military member and his or her spouse and family. Part of that is requiring children of a military family to pack up and move their lives, including their ongoing education, to another state or even nation.

Landlord – 2018 Cap Rates Under Pressure

Written by Apartment Management Magazine on . Posted in Blog

By Kathy Fettke, Co-Authored by Donna Behrens

Landlords and investors may feel the sting of lower cap rates in 2018. We’ve been seeing price appreciation and rent growth year after year during the economic recovery, but the economy is shifting gears and returns are shrinking. Cap rates are expected to run flat this year, or fall somewhat, depending on other economic pressures, like interest rates.

If you are a real estate investor, you know that cap rates are an important valuation tool. They can help you determine the value of a property before you buy it, and they can tell you what kind of returns on investment you are getting as you move forward.

REVA Kay – Tampa IBC 2 DST

Written by Apartment Management Magazine on . Posted in Blog

Kay Properties and Investments is a national Delaware Statutory Trust (DST) investment firm with offices in Los Angeles, San Diego, San Francisco, Seattle, New York City and Washington DC. Kay Properties team members collectively have over 94 years of real estate experience, are licensed in all 50 states, and have participated in over $7 Billion of DST real estate.

Our clients have the ability to participate in private, exclusively available, off-market DST properties as well as those presented to the wider DST marketplace; with the exception of those that fail our due-diligence process.

Apartment Construction Begins to Slow but Demand Remains High

Written by Apartment Management Magazine on . Posted in Blog

By Karina Estrella | Trepp

With homeownership rates sagging over the last 11 years thanks to shifts in demographic trends, apartments have become one of the most in-demand property types. As we wrote in our previous multifamily snapshot, apartment demand rose to its highest level in 25 years in 2017, which is a generational peak. However, some of the sector’s underlying financials are beginning to decelerate – at least when it comes to loans in CMBS. According to Trepp data, the average occupancy for multifamily CMBS loans has been trending downward over the past two years. Average occupancy was measured at a recent low of 93.1% in March, which is 60 basis points lower year over year.

 

Per Multifamily Biz, construction starts for seven of the 10 largest US multifamily markets dropped in 2017 when compared to 2016. The overall volume of multifamily construction starts was $194.7 billion last year, which is 7% lower year over year. However, it seems that the elevated levels from previous years continue to weigh on occupancy levels.

DST Vs. TIC: Delaware Statutory Trust Vs. Tenant in Common –Which is Right For Your 1031 Exchange?

Written by Apartment Management Magazine on . Posted in Blog

By Dwight Kay – Founder, Kay Properties and Investments, LLC

Investors considering a 1031 exchange often look at Delaware Statutory Trust and Tenant in Common Properties as a more passive, hands-off investment vehicle whereby they do not have responsibility for the day-to-day operations and management of a property. The question many investors have is which is the winner in the DST vs. TIC debate.

Before looking at the individual structure of the two investment options, in our opinion, investors must consider the real estate as the most important factor—the quality of the property and if the real estate makes sense.

Improving Your Bottom Line and Pleasing Your Tenants (Most of Them)

Written by Apartment Management Magazine on . Posted in Blog

 by Esther Schiller, Smokefree Air For Everyone (S.A.F.E.)

Tenant surveys conducted by the UCLA Center for Health Policy Research, the Los Angeles County Department of Public Health’s Tobacco Control and Prevention Program and the American Lung Association have been showing that most apartment residents want to live in a smoke-free environment. At the same time, these same surveys are also showing that most tenants don’t complain when they are breathing a neighbor’s tobacco smoke. They may not want to risk damaging a friendly relationship with that neighbor, or annoying the on-site manager who may also be a person who smokes. For whatever the reason, there seems to be a disconnect between owners and their tenants on this issue of smoking.

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