Blog

"Management must speak with one voice. When it doesn't, it becomes a peripheral opponent to the team's mission." Pat Riley There are a number of reasons to hire a management [...]

"Get me well so I can get on television and tell people to stop smoking." - Nat King Cole Smoking is an annoying and dangerous habit which is very difficult [...]

"The lack of money is the root of all evil." Mark Twain I generally raise rents in January, but this year, because I am running a little behind, it will [...]

"The elevator to success is out of order. You'll have to use the stairs... one step at a time." — Joe Girard On the November 5th ballot, there will be [...]

"For a man to know what he has when he had it, that is what makes him a fortunate man." Ann Patchett On June 6, 1978, California passed Proposition 13. [...]

"The most important thing for a young man is to establish a credit... a reputation, character." - John D. Rockefeller As of now, credit history may not be as important [...]

"It isn't hard to make rules, especially for other people." Nancy Rockwell On October 11th, Governor Newsome signed AB 12 (Haney) which will reduce the amount of security deposits that [...]

"Speak softly and carry a big can of paint." Banksy This quote was written by a well known graffiti painter from London. In this quote I actually agree, except it [...]

“You don’t stop laughing when you grow old, you grow old when you stop laughing.” ~George Bernard Shaw Delaware Statutory Trusts (DST), are a vehicle which many income property owners [...]

"Progress is man's ability to complicate simplicity." Thor Heyerdahl   For 2024 there is a new requirement for housing providers. "Personal micro-mobility devices" as they are called are defined as powered [...]

"Small deeds done are better than great deeds planned. " Peter Marshall Are you planning your next rent raise? I like to raise rents the middle of January. Usually around [...]

"A lower interest rate doesn't make a debt go away," Dave Ramsey Clearly, there are winners and losers in any circumstance, but as property owners and as a broker, financing [...]

"You don't get paid by the hour. You get paid for the value you bring to the hour." Jim Rohn ADU's (Accessory dwelling units) are becoming very popular with the [...]

"Some people always know the price, but not the value." Oscar Wilde I recently wrote about the proposed and long awaited 7% rent raise for Los Angeles which includes tenants [...]

"Art is never finished, only abandoned. .." Leonardo Da Vinci Art is not the only thing that is abandoned. Have you ever had a tenant move out and leave their [...]

"There is a charm, even for homely things, in perfect maintenance." Louis Auchincloss This past week, I visited the annual Apartment Owners Association trade show in Long Beach. I always [...]

"The time to repair the roof is when the sun is shining." John F. Kennedy I recently changed insurance companies on an apartment building I own. My old insurer decided [...]

“The only man who never makes mistakes is the man who never does anything.” ― Theodore Roosevelt I know of a lot of property owners who are afraid of renting [...]

"Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the [...]

"Success is never accidental." Jack Dorsey There is another movement afoot to increase the restrictions of AB 1492, the Tenant Protection Act of 2019. This one, known as the Homelessness Protection [...]

"Your big opportunity might be right where you are now." Napoleon Hill After years of lagging behind inflation, there is an opportunity next year that all property owners in Los [...]

"Opinion is like a pendulum and obeys the same law." Arthur Schopenhauer In June of this year, Attorney General Rob Bonta, finalized a settlement in the rent control case involving [...]

"Urban retrofitting : creating different sorts of spaces and uses out of places that are already there." Alex Steffen Is your building "non ductile."? If it is, it is defined [...]

"Be thankful we're not getting all the government we're paying for." Will Rodgers Just as we were concerned about proposed rent control issues, along comes ACA1, a measure which proposes [...]

"There are no secrets to success. It is the result of preparation, hard work and learning from failure." Colin Powell A few days ago, I received a certified later the [...]

"The precondition to freedom is security." Rand Beers We, as housing providers, seek to provide good and affordable housing and for that we deserve to be fairly compensated. Security deposits [...]

" In the middle of difficulty lies opportunity." Albert Einstein Today we join with property owners, managers, brokers, lenders and the Apartment Association in asking you and your family and [...]

" There is one advantage to having nothing, it never needs repair. " Frank Howard Clark When you own buildings, they are going to need repairs. We all know that. [...]

"The quality of your life is built on the quality of your decisions." Wesam Fawzi If you have a number of units that are vacant for an extended period of [...]

"Happiness is a positive cash flow." Fred Adler With California Statewide rent control (AB 1482) limiting rent raises, it is absolutely essential to raise your rents once a year. Much [...]

"Practice makes comfort. Expand your experiences regularly so every stretch won't feel like your first." Gina Greenlee With practice we can do something we have already done and maybe miss [...]

"The wise know that foolish legislation is a rope of sand, which perishes in the twisting." Ralph Waldo Emerson Recently (May 31st) a measure known as SB 466 was defeated [...]

"The four most dangerous words in investing are this time it's different" - John Templeton. As safe as real estate is, compared to other investments, is multi-family the best? I [...]

"Next to bombing, rent control is the most effective technique so far known for destroying cities." Assar Lindbeck From Swedish economists, like Mr. Lindbeck, to multi-family property owners everywhere, these [...]

"Guests and fish begin to smell after 3 days." Tony Wheeler The rental agreement that I personally use, allows for an additional tenant, subject to LANDLORD'S written consent. Without such [...]

Have You Raised the Rents Lately? Many multi-family owners have not raised rents in the last couple of years because of COVID. There are cities, such as Los Angeles and [...]

How much can I raise my rent? In Southern California, the best answer is "It depends". The statewide rent control (AB 1482) which took effect in January of 2020 allows [...]

Should I do a 1031 exchange? What are the alternatives? If you have decided it is time to sell, the big question is: " What now?" There are a number [...]

Should I add an ADU to my multi-family property? Have you thought about adding an accessory dwelling unit to your muti-unit property? Last year saw the passage of SB 9 [...]

What is the best way to value apartments and multi-unit properties? There are a number of ways to determine the value of a multi-unit property. They are all subjective, so [...]

How are rising interest rates affecting multi-unit property values? As you know, The Fed just raised interest rates by .05% after a raise in March of .025. The most recent [...]

The numbers appear to be encouraging for owners of multi-family investment properties. You may be asking yourself Am I getting the most out of my multi-family investment property? With Southern [...]

Theodore Roosevelt said: " Do what you can with what you have where you are." Was he talking to owners of multi-unit properties? Maybe so. At the end of the day, the [...]

Why are so many owners of multi-unit owners trading into triple net leased properties? WHAT IS A TRIPLE-NET LEASED PROPERTY? These are properties where, according to the lease, the tenant [...]

"Focus on being productive instead of busy." - Tim Ferris Graffiti can be a problem for apartment owners in any location. The key is removed by the owner. Penal Code [...]

Should I require renter's insurance from my tenants? Seems like an easy question, but something you may not have given much consideration to. As landlords, we try to avoid litigation, [...]

The Statewide rent control law for California (AB 1482) Allows a raise of 5% per annum plus the amount of change in the Consumer Price Index up to an additional [...]

Have you ever wondered if one of your tenants was a hoarder? If so what can you do about it? WHAT IS HOARDING? Here is how The American Psychiatric Association [...]

Whether or not to provide appliances for your tenants is one of those issues that owners usually decide early on in their investment career. Did you make the right choice [...]

People often ask how much of a security deposit can they charge on multi-family units in California. The law in California says that you can charge up to twice the [...]

Is it worth it to own the laundry equipment at my multi-unit property? THE PROS Obviously, it will mean more cash. Instead of working out a split with a leasing [...]

There are many great tenants who have pets and are willing to pay a premium to have them in their apartments. It is, in most cases, going to increase wear [...]

Tenants are aware of what's going on in your building more than you are. Obviously, because they live there. As important as it is to maintain your annual rent raises, [...]

Effective June 16th, the Fed raised interest rates by 0.75 %.in an effort to reduce inflation. This is the largest raise since 1994 and will have an effect on every [...]

With the appreciation of the last few years, you have considered trading into a building out of state. Is it right for you? Well, it depends on a number of [...]

"Do not let what you cannot do interfere with what you can do" John Wooden The words of the legendary Coach, John Wooden remind us that we all have limitations. [...]

"A life spent making mistakes is not only more honorable but more useful than a life spent doing nothing" - George Bernard Shaw Of course; none of us spend our [...]

"Things turn out best for those who make the best of the way things turn out." - John Wooden These words ring true for me all the time. Life will [...]

When you are looking to exchange for a new building or just purchase a building, where are some good places to look for a good deal and what should you [...]

We often talk about "off-market" multi-family deals. These are properties where the owner has said they would consider an offer but does not want to sign a listing and have [...]

With rising interest rates, getting the maximum value for your building is a valid concern. What are some ways to put your property in a position to command the best [...]

There are different stages of our investment life. You may be looking to build your investments into a vehicle to fund your retirement. On the other end, you may have [...]

Your multi-unit properties are a business. Hopefully, they are profitable. But not only is your monthly cash flow important to you, but it can also determine the value of your [...]

With prices of materials and labor at near record highs, is this a good time to remodel my units? What are the advantages of doing improvements now? MAJOR REMODELING MAY [...]

We have always specialized in working with clients whose buildings did not sell. There is really only one question. Why? Is there something you as an owner can do or [...]

As an experienced investor in multi-unit properties for over 40 years, this is a question I often hear from new and experienced investors. There is no absolute answer, so I [...]

A value add property is one where the owner can increase the value through renovations, rebranding, or improvement in management. Typically, by increasing the NET OPERATING INCOME, additional value has been [...]

I recently sold a building that had a tenant who had not paid rent in 3 years. Through assistance programs, the owner was able to recoup some losses, but the [...]

IS CURRENT DEMAND SUSTAINABLE?  With vacancy rates under 3.5% in Los Angeles and surrounding counties, it will require a lot of new projects to be built in order to satisfy [...]

WHAT IS A MAJOR RENOVATION? A major renovation of an apartment is usually defined as one which takes more than 30 days to complete and requires a building permit. This [...]

WHAT IS A SOFT STORY?  A soft-story building is a multi-story structure built with a first floor that is much less rigid than the floors above, making them prone to [...]

Are any of your rental units built without a permit? Is there an additional "bootleg" unit on your property? I once saw a property in Bellflower that had been foreclosed [...]

"Risk comes from not knowing what you're doing" Warren Buffet With increased interest rates, many sellers are considering carrying all or part of the financing on their apartment buildings. Doing [...]

"Don't wait to buy real estate. Buy real estate and wait." - Will Rodgers I was speaking to a colleague the other day about interest rates and multi-unit values. Like [...]

"The hardest thing in the world is to understand the income tax" Albert Einstein On April 1st, also known as April Fools Day, a new measure will take effect for [...]

"Efficiency is doing things right. Effectiveness is doing the right things. " Peter Drucker I sold a building a couple of years ago that consisted of 10 townhouse-style units, two [...]

"Chance favours the prepared mind." Louis Pasteur When you sell or refinance your building, you will usually be asked by the prospective buyers or the prospective lender for estoppels to [...]

"Our only security is our ability to change" John Lilly Although the rental market doesn't appear to be quite as hot as last year, it is still pretty good. With [...]

"When the gig ain't there, you still got to pay the rent. I learned that a long time ago." Jimmy Scott Many apartment owners, over the years, have tried renting [...]

"There's no shortage of remarkable ideas, what's missing is the will to execute them." Seth Godin Today we are discussing the submetering of water meters. SUBMETERING, according to Wikipedia, is [...]

"Prepare and prevent, don't repair and repent." Author Unknown I am often asked by property owners, what is a good amount of times during the year to inspect your rental [...]

"Unexpected events can set you back or set you up. It's all a matter of perspective" Mary Ann Radmacher One of the things landlords worry about is a tenant moving [...]

"There is no reason that the universe should be designed for our convenience" John D Barrow Although the universe is not designed for our convenience, providing a small convenience to [...]

"By failing to prepare, we are preparing to fail" Ben Franklin In any competition, we must always put our best foot forward. Apartment rentals are no different than other endeavors. [...]

"Happy are those that dream dreams and are ready to pay the price to make them come true" Leon Suenes I was recently talking to a colleague who built a [...]

"Great things in business are never done by one person. They're done by a group of people" Steve Jobs Whether you have one building or several thousand units, you need [...]

"Risk comes from not knowing what you're doing" Warren Buffet With increased interest rates, many sellers are considering carrying all or part of the financing on their apartment buildings. Doing [...]

"Don't wait to buy real estate. Buy real estate and wait." Will Rodgers I was speaking to a colleague the other day about interest rates and multi-unit values. Like me, [...]

"The hardest thing in the world is to understand the income tax" Albert Einstein On April 1st, also known as April Fools Day, a new measure will take effect for [...]

"Efficiency is doing things right. Effectiveness is doing the right things. " Peter Drucker I sold a building a couple of years ago that consisted of 10 townhouse-style units, two [...]

"Our only security is our ability to change" John Lilly Although the rental market doesn't appear to be quite as hot as last year, it is still pretty good. With [...]

"Precaution is better than cure." Johann Wolfgang von Goethe As housing providers, we need the services of plumbers, painters, electricians, and so many others to keep our buildings running smoothly. [...]

"Chance favors the prepared mind." Louis Pasteur When you sell or refinance your building, you will usually be asked by the prospective buyers or the prospective lender for estoppels to [...]

Good people do not need laws to tell them to act responsibly, bad people will find a way around the laws." Plato Back in September of last year, Governor Newsome [...]

"Efficiency is doing things right. Effectiveness is doing the right things. " Peter Drucker I sold a building a couple of years ago that consisted of 10 townhouse style units, [...]