Posted: August 27th, 2010 Are we heading for a double-dip recession?
Maybe, maybe not. But wherever our shared economic ship heads, it would be good advice for us all to follow the old sailor’s creed and be prepared for the roughest of seas.
So the question you got to ask yourself is: Are you and your property prepared to handle whatever Poseidon may hurl at our leaky ship next?
If Coldwell Banker Platinum Properties is your partner then most assuredly your answer to this question was a resounding “yes.” Just the peace of mind that comes from having someone to turn to for assistance in maintaining properties, rental property listing, locating investment properties or any number of property transaction or maintenance services gives you a leg up on a brutish economy.
The experts are pegging the odds of a double-dip recession at around 20 percent, according to a recent CNN article. But the Wall Street Journal recently released a poll showing that more than two-thirds of Americans believe the worst of the recession is yet to come.
Who to believe? Foreclosures continue at a pace of over 300,000 a month, unemployment remains above 9 percent, the economy’s growth slows… I have always said if it looks like a duck and walks like a duck, well, you know the rest.
Signs show something is different with this recession than those of the past. Historically the United States economy has had its ups and downs. The last three recessions (in 1981, 1991 and 2001) each lasted eight to 16 months. Many economist believe the current recession began in late 2007 or early 2008 — that’s almost three years.
There may not be much we as individuals can do to bolster the economy. But like an old sailor once told me, as the wind kicked up, the boat leaned, the sails filled and the rigging began to slide through my hands: “Hold what you got.”
I did. And in time the seas calmed and we found our way safely to shore.
Posted: August 27th, 2010 My condolences to apartment property managers everywhere. Until recently I never knew how difficult a job you had.
For the last few years I have lived in a one-bedroom apartment in a cozy, 12-unit complex. I have enjoyed the maintenance-free lifestyle and no yard to keep green. Any time there is an issue I pick up the phone and the problem is solved.
In the past whenever I had a problem I used to call a property management company. But the apartment recently sold to new owners. They dismissed the company, looking to save a few dollars, and chose instead to go it alone.
While they do a fair job and are responsive to tenant concerns, I have to admit I feel sorry for them and all the headaches they endure.
The new owners are an older couple — in their mid 50s — who were looking to invest some of their nest egg and enjoy a semi-retirement. Things started out fine. Everyone in the building liked the new owners. But in time, with familiarity came contempt. Both from some of the tenants for the owners and by the owners for some of the tenants.
There came hassles in collecting rent, ticky-tack issues with resident’s apartments, maintaining the grounds, handling emergency repairs (the water heater started leaking late one night), and just dealing on a personal, one-on-one basis with residents became a pain for the couple. They found themselves working full time when they were supposed to be enjoying retirement. And what’s more they (and the tenants) were becoming very unhappy.
I never knew any of this until about a year after the apartments had changed hands. The owners, Don and his wife Linda, were raking up some leaves and they paused to say hello and thank me for consistently paying my rent on time, a habit some of the other tenants apparently lacked.
They told me of the many headaches and the knots they would get in their stomachs every time they had to call a tenant for rent. I could see the stress it was causing them.
“Why not hire a property management company?” I suggested Coldwell Banker Platinum Properties.
Almost a year later I ran into Don and Linda at the grocery. They couldn’t thank me enough for the suggestion. The investment they made with Coldwell Banker Platinum Properties, by hiring the company for property management services, was paying them both huge dividends.
Sure, it was costing them slightly more than if they did everything themselves, but they had found peace of mind. The couple had security and confidence having hired a respected property management company and they had found the time to do all those things they had always wanted to do before, but were to busy to do because of the properties they had to maintain.
In return I told them it was also working well for tenants. I thanked them for their decision to place the apartments in the care of a professional outfit. I told them it felt good to know my home was being maintained by Coldwell Bankers.
Posted: July 22nd, 2010 Ever notice that in well-kept neighborhoods broken windows get patched up quickly? I have.
Less well maintained areas, lower rent properties, tend to have maintenance issues that linger. Yards grow weeds, paint peels and broken windows are not quickly repaired. I always feel nervous passing through neighborhoods like this.
Police departments around the country have taken notice of this trend. “The Broken Window Theory,” is how the cops refer to it.
According to the theory less maintained neighborhoods tend to attract crime. Fix the broken windows, maintain the properties and the crime rate falls while the community’s economic fortunes rise lifting all to higher ground.
Hiring a property management company, like Coldwell Banker Platinum Properties of Orange County, can take the worry off any residential or commercial property owner’s mind. It’s been my experience that maintaining something over time is far less expensive than deferring upkeep year after year until something major happens.
Not only will the property hold its value longer, but it will also maintain a higher rental value throughout its life and remain a benefit rather than possibly becoming a blight to the surrounding community.
I’ve discovered this might be the year to hire a property management firm, as property in the county is being devalued by about $500 million. That will translate to a cool $5.5 million in tax savings for Orange County property owners, according to the Orange County Assessor’s Office.
“The savings will begin with the first property tax installment payment due in November 2010,” according to a Jan. 1 posting on the Assessor’s web site.
And as recently as July 16 the Assessor’s Office reports 148,000 properties in Orange County will have their “taxable values reduced or kept the same as last year.”
This might seem like bad news to some, but the Assessor’s Office seems to be indicating the market is about ready to start surging again.
“There are some areas in the county showing a recovery in market value,” according to the July 16 press release found on the Assessor’s Office web site.
The release concludes that a slowing in residential properties loosing value over the last year “is reflecting a stabilizing residential real estate market.”
Posted: July 9th, 2010 If you have invested in commercial or residential properties, you most likely have found yourself overwhelmed with constant resistance and hassles. No need to panic, Coldwell Platinum Properties is here to help you manage your investment properties successfully and take the hassles out of the process.
Property management is a viable solution to your property management woes. When you really need help – we will smooth out the wrinkles through our experience, expertise and access to quality resources. The basis on which we work and the tasks we perform such as; appointing people to maintain a property, managing tenants, handling complaints and resolving legal issues, will take the headache out of investment property ownership and management.
The biggest advantage of hiring Coldwell Platinum Properties is we handle just about every aspect of property management and take care of business for the owners of the properties. Minor issues that will sometimes occur and inconvenience owners are handled professionally with the utmost experience and care to address all facets – financially, physically, and legally.
We offer competitive rates for our services, however it is best to go on our impeccable reputation rather than expense. The more reputable and dependable your property management firm is, your experience will be worth your every dime for the services we provide and will save you money in the long run. When you are stressed out and feel as if your properties are in control of you, rather than you being in control, it is most likely time to consider property management services to delegate the tasks and resolve all issues with your properties.
We guarantee a satisfying experience and will help you get the most out of your investment properties. Call us for a friendly evaluation: 714-552-8687
Posted: June 22nd, 2010 The headlines are swarming with the lurking expiration date of the home buyer tax credit on June 30th. This is leading home purchasers to close as quick as possible to make this credit work for them, but leaving some panicked that they may miss out on the opportunity if the closing of their homes are delayed. The best way to certify that you get this tax credit and close before it is too late is to utilize these tips to expedite the process for your own good.
- Make sure all paperwork on your end is taken care of. Gather pay stubs, tax documents, employment verification, and anything else of relevance that will be used to get you the loan. Make sure when all this footwork is done you get this to the lender ASAP so they can begin to process your loan faster.
- Stay on top of the seller. Sometimes a seller will drag on their responsibilities in the purchasing process. Make sure you address them and the issues that may cause a delay. This could be inspection issues, code compliance’s, and appraisals.
- Try to get the closing date set in stone a week before the 30th of June. Prepare for any hiccups but schedule your close as soon as possible this way your not stuck on the 29th with competition that has waited to the last minute.
It is a tragedy that not all candidates will make it to this date, however those of you who put forth the massive efforts to close by attending to every detail will perhaps get the last shot at the 8,000 dollar return on a home purchase investment.
Posted: June 22nd, 2010 If you are looking at a type of property that may need a lot of restoration and extensive repairs, you must consider and decide if the property is worth the efforts and time investment. This can be a little tricky but it is very important to look at it in full perspective.
The first thing that may be sound to decipher is that cosmetic repairs are very minute in comparison to electrical, structure, and plumbing issues. This is when you need to calculate the costs that the repairs will amount to and see if it is worth it. You must always weight the cost of repairs and time with a realistic view, you do not want to be stuck with something that is worth less than you pay out, although sometimes this can increase the value of a home – but in this day and market, always be too careful.
Another factor that is important to consider is with every house there are may be issues that lie beneath the surface. It is very important to have the property or home inspected thoroughly by an expert to discover these problems before they eat at your wallet, literally. Put in the leg work to get to the bottom of the matter.
If you notice that the property does indeed need a bit of work, remember nothing is impossible – however every distressed property is not always worth the money to repair it and the efforts to get it up to par. Also know your budget and do not overextend yourself for a distressed property – sometimes you are just better off investing in a more expensive and less needy property.
When all else fails, research, ask for assistance, and consult an expert, this will certify that you have adequately covered all bases before making a costly mistake.
Posted: May 4th, 2010 As a property owner or landlord, a property management company can be your biggest asset. However, the same way a professional property management service can prove be quite efficient and profitable, it can also be the exact opposite if you do not take the time to make sure you are hiring the right company for your specific needs. Here are a few tips that will help you avoid hiring a bad property management company in the OC:
- The first thing that you should always do is identify which services are most important to you. Most investment home owners expect a property management company to collect rent, handle tenant communication and schedule repair services. However, you may have certain preferences for how other aspects of property management are handled. For example, do you want your property manager to pay your property’s expenses from the rent they collect? Or would you rather maintain those payments yourself? Do you prefer printed reports and mailed checks or online reports and direct deposits? It’s important you work with a property manager who’s flexible and receptive to your ideas and preferences.
- Once you have found a specialized property management company that you think will be a good fit with your property, be cautious before signing a contract right away. Checking references and talking to other property owners that are currently using their services is crucial to making the right choice.
Once you have checked references, if everything checks out, here are a few other things to consider:
- Is the property management company licensed in California?
- Is the company insured?
- How are tenant complaints handled?
It’s also always a good idea to go with a property management company that provides detailed monthly reports. This will greatly cut down on the time you spend micro managing and are always a sign of a good property management company.
Posted: May 4th, 2010 For many property owners and landlords, the prospect of handing over 8-12% percent of your rental income to a property management company can often seem quite excessive and unnecessary. However, as many quickly discover through trial and error, making the right decision with a property management service can pay off ten-fold down the road.
Many landlords and property owners that are new to the idea of hiring a property management service often think of it as someone that only collects rent money from tenants. However, while most rent money is collected electronically these days anyway, a property manager can assist in much more than simply dealing with your tenants. In fact, pretty much everything you can think of can be handled by a property manager, from property maintenance to the writing and overseeing of tenant agreements.
One of the most important things that you can do as a property owner during the process of hiring a property management service is making sure you have all of your bases covered in the contract. This can include particular clauses that will allow you to make sure the property is being managed precisely how you want it to be rather than simply leaving everything up to the property manager’s discretion. For instance, a good idea would be to include a clause that protects from the property manager not reporting arrears or letting overdue rent get out of hand. You can include a clause that requires the manager to report to you on a regular basis. You can also include a clause that will help protect your financial investment in the property such as specifying that any repairs estimated to exceed a particular dollar amount require your authorization before ordered.
It’s important to remember when hiring a property management service that law does not currently regulate the fees they charge. This means prices can always be negotiated and, while 10 percent of monthly rental income is somewhat standard, there may be other companies that will do it for less.
Posted: April 7th, 2010 We want to be your partner in all Orange County real estate related activities. That is why we are offering you our property management service at half the price our competitors charge. It’s our way of introducing you to our professionalism and real estate expertise.
Posted: April 7th, 2010 Landlords and property owners of estates of all sizes can greatly benefit from hiring a property management company or service that will significantly reduce the stress of managing their rental properties. These services can extend well beyond typical maintenance and upkeep that most landlords take advantage of. In fact, many property management companies will allow you to completely hand over the majority of the tasks associated with managing your property and day-to-day liaisons with tenants. Essentially allowing you to do little more than deal with the property management company itself and manage your own profits and finances.
Here are a few examples of the typical tasks that a property management company will perform on behalf of landlords.
One of the most productive things you can hire a property management company to do is deal with your tenants. This can include everything from advertising rental properties, handling the application process and screening potential tenants to acting as a liaison between you and the tenants. They can even enforce lease and property agreements as well as file for evictions.
A property management service can also handle all upkeep for your rental properties including interviewing and hiring contractors and/or handymen, overseeing renovations, repairs, and general maintenance, and even restocking general supplies.
Another great service that a property management company can provide is submitting monthly budgetary reports. This can make your job as a landlord much more stress free by providing you with a breakdown of expenses; deductions, revenues, and an overall look at your finances for the month. Management companies can also handle all notices, complaints, and inquires from tenants and give you a report at the end of each month to keep you informed of everything you, as the landlord, should know.
