The So-Called Mansion Tax, Bans on Criminal Background Checks, and Eviction Moratoriums… Oh My!

Written by Apartment Management Magazine on . Posted in Blog

Before “going off” and writing my monthly editorial diatribe, I need to be in the right mood. Sometimes there’s this sort of “spark” that gets my heart racing and compels me to get to my laptop and pound away at its keyboard. That “spark” may be a line or two I have just read in a news article or something that “pops” into my head during a workout or while driving – it is usually the daily workout that does it.

For those of you brave souls that venture to the pages where my editorials appear, and then actually read some or all my monthly rantings, you should know that I often cannot control the timing of this catalyst that causes me to produce my writings, and at times I end up creating my compositions well in advance of the date your copy of Apartment Age lands on your front doorstep. So, please do excuse me if things or events may have transpired differently than I have portrayed or captured them here. I cannot predict the future, but I do see and can comment on trends.

Six Potential Benefits of Exchanging into Delaware Statutory Trust Properties

Written by Apartment Management Magazine on . Posted in Blog

Dwight Kay, Founder and CEO Kay Properties & Investments

There are a number of potential benefits associated with exchanging into a Delaware Statutory Trust (DST) 1031 property.

However, it is important to note that these potential benefits should also always be carefully weighed with the potential risks that are possible with DST investments, and as with all real estate investments, investors should consult their tax attorney and or Certified Public Account before investing in DSTs. 

Still, DSTs continue to grow in popularity especially among aging baby boomers who are tired of managing their own properties and are looking for a way to transition into a passive income stream. DST investments not only provide investors the potential for passive income, but also the following six benefits as well:

“Housing First” is a Failed Approach to Chronic Homelessness in California

Written by Apartment Management Magazine on . Posted in Blog

By Susan Shelley

How much money is enough to solve the homelessness crisis, and on what should it be spent? Every poll shows that Californians list homelessness as a top concern, and the posturing by politicians has reached theatrical proportions. For example, Gov. Gavin Newsom announced on November 3, five days before the statewide general election, that he was pausing the distribution of what remained of the third round of grants under the state’s Homelessness Housing, Assistance and Prevention program.

5 Valuable Tips for New Rental Housing Providers

Written by Apartment Management Magazine on . Posted in Blog

By Becky Lopez

Most new housing providers may think that once they’ve had a tenant living in their apartment or real estate property, their dream has come true, and all they have to do is to sit back and collect the rent. Often, this dream may turn into a nightmare sooner than you expect. Problems such as delayed payments and tenant issues such as lost keys and broken pipes may become the order of the day. If you’re a new property owner, some valuable tips can make the whole experience less troublesome and more enjoyable. Keep reading.

Multifamily Outlook 2023: Is A Recession Coming?

Written by Apartment Management Magazine on . Posted in Blog

Are we headed toward a national and/or global recession? This question is on many minds as we look ahead to 2023. So, what do multifamily property managers need to know in order to prepare? When nothing is certain, credible knowledge is our best defense against the unknown. This article explores vital insights from the final Yardi Matrix National Multifamily Report of 2022 to provide some answers.

How to Plan Your Delaware Statutory Trust to Remove the Stress of a 1031 Exchange

Written by Apartment Management Magazine on . Posted in Blog

by Matt McFarland

Any investor who is considering selling a piece of investment real estate will undoubtedly consider a 1031 Exchange. 

A 1031 Exchange refers to the IRS code that allows significant tax advantages for investors.  How? When you sell an investment property and you have a profit, you normally are required to pay capital gains tax. A 1031 Exchange allows you to sell your investment real estate and reinvest the proceeds in a “like-kind” property, which defers any capital gains and other related taxes. This doesn’t mean you are eliminating any of these taxes, rather you are able to defer them until a later date. 

Softening Rents, Rising Utilities: How to Boost Your Bottom Line in a Tougher Housing Climate

Written by Apartment Management Magazine on . Posted in Blog

Contributed by the Livable Content Team

The rental market in the U.S. today is in flux. People pay 40% of their income to rent their homes – rent has reached the highest number ever. Only 25% to 35% of gross income paid for rent is considered an affordable standard where renters are not considered to be “rent burdened.” It’s understandable that a market correction is coming, and it appears to be here on the horizon.

In the face of rising rental prices, more states are discussing rent control measures (including hot spots like Florida and Nevada). Yet, October 2022 saw the third largest drop in rental market prices since 2010. Housing providers and residents alike are being squeezed by inflation that, while slowing, is still much higher than we’ve seen in recent years, causing people to stretch every paycheck further. On top of all of that, conservation concerns and supply/demand dynamics are driving ever-increasing utility costs. From 2010 to 2019, water prices went up by about 60% for a family of four. Electricity costs have spiked recently, partially due to the current crisis in Ukraine. With winter on the horizon, those costs are expected to increase. According to a recent piece on CBS News:

Dear Maintenance Men:

Written by Apartment Management Magazine on . Posted in Blog

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:
I need to do some caulking in my apartment unit, both inside and outside the unit.  However, I am confused.  I stood at the home improvement center’s caulk section and stared for ten minutes.   I still don’t know what to buy!!!   Can you help explain the different types of caulks and where to use them?

Dear Frank:
Let us try to break down the most common of caulk types and when and where to use them. 

1:         Acrylic Latex caulk (painter’s caulk):  Inexpensive, easy to use, water cleanup. 
 Not for use in damp locations such as bathroom or kitchen or outdoors.  Designed to be painted over. 

2:         Vinyl Latex caulk:  Easy to use, water cleanup and can be used outside.  Not very flexible; use in expansion joints is not recommended.

3:         Acrylic Tile Sealant:  Easy to use, water cleanup.  The sealant is perfect for bathroom and kitchens and other wet locations.  It is mold and mildew resistant.  Paintable.

4:         Siliconized Acrylic Sealant:  Easy to use, soap and water or solvent cleanup.  Perfect for porcelain tile, metal and glass.  Similar to Acrylic Tile Sealant, but tougher and longer lasting.

5:         Pure Silicon:  Best for non-porous surfaces.  Long lasting, indoor/outdoor caulk.  Super flexible and strong.   Harder to use than any of the above caulks. Solvent cleanup. Mold and mildew resistant.  Could smell until cured.

6:         Butyl Rubber:  Best use is outdoors.  Messy to use.  Perfect for sealing roofs, valleys, gutters, flashing and foundations.  Moisture and movement tolerant.  Sticks to anything.  Cleanup with solvents.

7:         Elastomeric Latex Caulk:  Water cleanup. Longest lasting caulk. Great adhesion to almost all surfaces and can stretch close to 200%.  Elastomeric caulk is very tolerant to wide temperature and weather extremes. It is most often used outdoors. This caulk can bridge gaps up to 2 inches wide and deep.  The caulk dries very quickly, tool the caulk immediately after application.

Selecting a Qualified Roofing Contractor

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There’s More to Pick Than Just Price

Regardless of the price, your roof is not affordable if it leaks each time it rains. That’ll of course be long after the contractor is gone, and you’ll be stranded in the rainy season to fend for yourself while your tenants scream at you about water damage. Maximizing value is about selecting the best roofing contractor, who uses 1st quality materials with certified workmanship, all at an affordable price.

Too often, property owners and managers fall victim to letting their guard down. Many roofing salesmen hope you skip the background check and make a knee-jerk decision to get a “deal.” Then, you’re unfortunately stuck with a problematic and leaky roof for years to come…

The Top-20 Metro Areas Experiencing Rental Application Fraud

Written by Apartment Management Magazine on . Posted in Blog

By Daniel Berlind, Chief Executive Officer, Snappt

Rental Application Fraud- Can It Happen to You?

During the rental application process, if you are like most property managers, you’ll ask your applicants for pay stubs, contact information, social security numbers, and bank statements. You’ll also run credit checks upfront and other verifications to vet your prospective renters.  All sounds familiar. Maybe not so familiar, are a few rental application statistics that will catch your attention: