San Diego Multi Unit Housing Market On the Rise

Interest is rising in San Diego County for multi-unit housing and the market is steadily improving.  The San Diego Business Journal, reports the “rising sales activity is being spurred by the region’s relatively good employment prospects, a limited supply of new apartment buildings, and a financing picture that is less bleak than a year ago.”

In my interactions with investors around the county, I am speaking and working with people who are enjoying profitability and low vacancies.  With San Diego’s vacancy rate of 4.75% (March 2010 data) is well below the national vacancy rate of 8%, making San Diego multi-unit housing a firm investment.

Real Property Management is the only property management company to serve you on a national basis.  We welcome multi-unit owners to our company and satisfy our clients with our remarkable service.  Please contact us for more information about how we make owning property profitable and enjoyable.

Cash Investors are Buying!

USA Today reports: “The share of home sales involving all-cash transactions was 26% in January, up from 18% a year earlier, reports the National Association of Realtors. The figures come from a survey of members about their most recent transactions. Many home buyers also are paying cash, but investors are largely using cash so they can avoid paying interest charges on loans and get a larger return on their investment.”

Investors are snatching up homes that would typically not be available and turning them into rental properties.  In some cases, an investor is able to do minor repairs and then quickly rent the home and immediately enjoy profits from his investment.   If you are seeking new investment properties or need management for your current properties, please contact our office at 858-997-2100.

Pre-Lease Cleaning

Tips for Cleaning Your Rental Before Renting

By Steven (writing for www.rentals.com)

One of the first things most prospective tenants notice is how clean the rental home is, so don’t leave that first impression to chance. A clean rental home implies good maintenance and reliability on the part of the landlord and the tenants who’ve come before, setting a precedent to respect the property. Here are some tips on how to be sure you send the right message to your perspective tenants.

Hire a professional

Using a professional cleaning service is often a necessity for landlords with more than one property, but in any case, having someone else do the work is often an invaluable time saver. Always check references and get referrals from other property owners so that you hire a reputable service. Whether your previous tenants did a super cleaning job before they left or not, make sure to ensure the following areas are clean before you show your rental home to prospective tenants.

Floors

Dirty carpet can be an immediate turn off to a tenant, so have carpets cleaned by a service or with a rentable unit from a home improvement store. If tiles in the floor are cracked or missing, replace them and repair obvious hard wood damage. All uncarpeted floors should be thoroughly cleaned and swept.

Walls and ceilings

Dingy paint is another depressing sight for potential renters, so if it’s been a while since the walls have had a fresh coat, now is the time. Also be sure to repair any nail holes or gashes left by previous tenants.

Address any water stains in the ceiling by making repairs if necessary and painting over. Also make sure all ceiling bulbs are working and that light fixtures are dusted.

Windows

Clean all windows inside and out and make sure that the locks and screens all work properly. If your property comes with window treatments, they should be clean and in good working order.

Vents

Check the vents in each room to make sure they are working properly. Also, all intake and room vents should be free of dust.

Appliances

Do a thorough scrub of all kitchen appliances, including the oven and range, refrigerator and dishwasher if there is one. Also wipe down the exteriors of the washer/dryer if they are present.

Cupboards and closets

Make sure that all storage space is free of the previous tenant’s belongings and is wiped down, swept or vacuumed.

Tub and shower

Nothing says neglect like a mildewed bathroom. Be sure that all grout is scrubbed and reapplied, if necessary. Get the bathtub and shower as clean as possible, install a new shower curtain and consider replacing or resurfacing if needed. Toilets and sinks should also be thoroughly cleaned.

Outside

Even if yard maintenance will be the responsibility of your new tenant, start them off with a mowed lawn, clean porches and a carport/garage free of any extraneous items left by you or earlier tenants.

Be sure that your prospective tenant’s first experience with your rental property is one that leads to them to say, “I’ll take it!” Having a clean rental home is a major part of curbside appeal and lets your tenants know that you care about your house and expect them to do the same.

4 Reasons why renters insurance is worth while

Here is a short article on why renters insurance is a great idea. This article comes from Marketwatch.com

As college graduates begin to migrate from the dorms in a few short months, one item they may neglect in their move to the real world is a critical one: renters insurance. Renters insurance is an often-ignored insurance that covers everything from personal property to personal liability.

If you’re renting for the first time, or have been renting for years without insurance, you’ll want to consider purchasing some insurance. MSN.com debunks four myths about renters insurance, which just might persuade you to buy a plan:

1. My landlord’s covered
In most cases, a landlord’s insurance covers only structural damage to the building itself — and many landlord policies don’t even go that far if the damage is caused by a tenant. If you leave the tub running and it turns your floor into cardboard and dribbles downstairs, damaging your neighbor’s couch, you may be liable for the whole drippy mess. If your building went up in flames, your landlord’s coverage would include repairs, but only to the building, not to the possessions of tenants.

Join the discussion and share your nightmare roommate stories here

2. It’s out of my price range
Is $10 to $20 per month too much? For lower rates, you can raise the deductible. For more protection, you can pay more for replacement-cost coverage where the reimbursement is based on today’s replacement cost rather than original value.

3. I’m in a great building and I’m not worried about security
Renters insurance extends beyond on-premise theft and hazards. If your suitcase is stolen while you’re on vacation, you’ll likely be covered. Same with property stolen from your car. If you’re prone to barroom brawls, you might need more help than renters insurance, but you’ll probably be covered if you hurt someone. Speaking of injuries, you’ll also likely be protected if someone slips and sprains her ankle at your annual dance-a-thon; you may even receive compensation for legal defense costs in the case of a lawsuit.

4. My stuff isn’t really worth much
You might be surprised at how quickly all those books, CDs and kitchen appliances add up.

By Marshall Loeb, MarketWatch

Why Renting is a great idea (especially in this market)

Here is an article from Parade Magazine that points out some valid reasons why now is a great time to rent.

Before the housing boom went bust this year, home ownership was considered a good investment. But now, with the rash of mortgage foreclosures, renting may be a more attractive option. Here’s why.

1. Renting can save money
According to popular myth, renters are just throwing their money away. But the reality is that when you buy a home, you’re paying for closing fees, mortgage interest, property taxes, private homeowners’ insurance and maintenance — costs that return nothing on your investment. You’d be better off banking that money or putting it into the stock market. In fact, a recent study by Fidelity Investments indicates that stocks provided investors with nearly 4.6% higher average returns in the past 45 years than real estate.

2. Homeowners’ tax deductions are overstated
Conventional wisdom says that buying a home saves you money because the mortgage interest is tax-deductible. But a study by the National Multi Housing Council – a national advocacy group representing the interests of large apartment firms in the U.S. — points out that half of homeowners don’t get a break, because even with mortgage interest and property taxes, their total deductions do not exceed the standard federal tax deduction ($10,900 for couples and $5,450 for singles).

3. More options are available to renters
With fewer houses and condos selling, more owners are converting their properties into rentals or providing incentives to lure prospective tenants. In condo-heavy cities such as Palm Beach, Fla., for example — where the vacancy rate has jumped 2.5% — investors are undercutting apartment rates to generate interest. “A lot of people are offering three free months to attract renters,” says Robert Smith, a real-estate adviser in Orlando, Fla. “And modern apartments offer amenities that may be unaffordable in a new home.”

4. Renting gives you flexibility
Buying a home is a big commitment. If you have to move for any reason — say, for work — your property would need to appreciate by at least 10% for you to recover your sales costs, which typically takes about five years. Renting allows you the freedom and mobility you need to find the right job before you tie yourself to a massive home investment.

By Mike Hammer, Parade

Tenants Beware of Scams in the Marketplace

This is a great article on scams perpetrated against tenants.  In California a property management company (and property manager) must be licensed by the department of Real Estate.  Its always a good idea to check them out before you give them money.  They must keep licenses on file, or you can check online at the Department’s website.   Scams are plentiful on Craigslist,  especially when they want cash before giving you the address or showing the property.

Article:   MSN Tenant Scams – Beware!

Check out a company’s license Here

How pets can be a landlord’s best friend

Forget using free rent, wireless or a big-screen TV as incentives. If you really want to attract more renters, reduce unit turnover and make more money, welcome pets. Consider these tips on how to rent to Bowser stress-free. Read the full MSN Article here:http://realestate.msn.com//article.aspx?cp-documentid=19186150#atoolb

RPM Adds a Blog

We are now adding a blog to our website.  Check back from time to time to see content, announcements, articles and more that we think might interest property owners, potential investors, our residents and future tenants.