FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors by Neil Fjellestad and Chris DeMarco

We often get asked whether it is viable to purchase an individual condo or detached single home as an investment operating the property as a rental home. Then there are those that are currently in this position as they move from their current residence. Should they rent it out or go ahead and sell even if the sale won't achieve their goals? Their real estate agent is often recommending a sale and the owners are concerned whether this investment strategy as a rental can work over the long term.

Our four decades of real estate experience gives us a unique perspective which is very direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make a long term hold possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic real estate doctrine for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.

So keeping our experience in mind and the fact that FBS currently operates rental property in 69 zip codes throughout the SD region we are encouraged by the latest findings coming out of the research department of Zillow. The following was published on August 15, 2014:

Homeowners are faced with two options when choosing to move up the property ladder: sell the old home or rent it out. According to a new report from Zillow, homeowners might want to think twice before selling if they live in these 10 cities

“When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow Chief Economist Stan Humphries.

“However, the greatest returns are actually in markets like San Jose and San Francisco where there are short-term monthly losses, but the long-term earned equity makes them the best markets to invest in,” Humphries added.

Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and 9.1% since June 2011.

And on a local level, the Zillow Rent Index has gone up as much as two to three times that amount over the past year in rental hotspots such as metro Chicago (6.3%) and San Francisco (11%).

These are the top ten markets in the country identified as those most likely to incur long-term financial gain (long-term monthly profit is defined as follows: This includes home equity gains, tax benefits and the difference between monthly rental income and mortgage payments after holding onto the property for six years on the median home)

10. Honolulu: $2,512

9. Sacramento, California: $2, 694

8. Seattle: $2,861

7. Boston: $3,009

6. New York: $3,179

5. Riverside, California: $3,659

4. San Diego, California: $4,165

3. Los Angeles: $4,328

2. San Francisco: $6,078

1. San Jose, California: $8,927


Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos and apartments) in 69 zip codes throughout the region. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals

If you're a qualified renter you deserve to be treated like the preferred customer you are.
Educate yourself
www.RentSenseBlog.com

If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors by Neil Fjellestad and Chris DeMarco

We often get asked whether it is viable to purchase an individual condo or detached single home as an investment operating the property as a rental home. Then there are those that are currently in this position as they move from their current residence. Should they rent it out or go ahead and sell even if the sale won't achieve their goals? Their real estate agent is often recommending a sale and the owners are concerned whether this investment strategy as a rental can work over the long term.

Our four decades of real estate experience gives us a unique perspective which is very direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make a long term hold possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic real estate doctrine for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.

So keeping our experience in mind and the fact that FBS currently operates rental property in 69 zip codes throughout the SD region we are encouraged by the latest findings coming out of the research department of Zillow. The following was published on August 15, 2014:

Homeowners are faced with two options when choosing to move up the property ladder: sell the old home or rent it out. According to a new report from Zillow, homeowners might want to think twice before selling if they live in these 10 cities

“When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow Chief Economist Stan Humphries.

“However, the greatest returns are actually in markets like San Jose and San Francisco where there are short-term monthly losses, but the long-term earned equity makes them the best markets to invest in,” Humphries added.

Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and 9.1% since June 2011.

And on a local level, the Zillow Rent Index has gone up as much as two to three times that amount over the past year in rental hotspots such as metro Chicago (6.3%) and San Francisco (11%).

These are the top ten markets in the country identified as those most likely to incur long-term financial gain (long-term monthly profit is defined as follows: This includes home equity gains, tax benefits and the difference between monthly rental income and mortgage payments after holding onto the property for six years on the median home)

10. Honolulu: $2,512

9. Sacramento, California: $2, 694

8. Seattle: $2,861

7. Boston: $3,009

6. New York: $3,179

5. Riverside, California: $3,659

4. San Diego, California: $4,165

3. Los Angeles: $4,328

2. San Francisco: $6,078

1. San Jose, California: $8,927


Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos and apartments) in 69 zip codes throughout the region. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals

If you're a qualified renter you deserve to be treated like the preferred customer you are.
Educate yourself
www.RentSenseBlog.com

If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors by Neil Fjellestad and Chris DeMarco

We often get asked whether it is viable to purchase an individual condo or detached single home as an investment operating the property as a rental home. Then there are those that are currently in this position as they move from their current residence. Should they rent it out or go ahead and sell even if the sale won't achieve their goals? Their real estate agent is often recommending a sale and the owners are concerned whether this investment strategy as a rental can work over the long term.

Our four decades of real estate experience gives us a unique perspective which is very direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make a long term hold possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic real estate doctrine for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.

So keeping our experience in mind and the fact that FBS currently operates rental property in 69 zip codes throughout the SD region we are encouraged by the latest findings coming out of the research department of Zillow. The following was published on August 15, 2014:

Homeowners are faced with two options when choosing to move up the property ladder: sell the old home or rent it out. According to a new report from Zillow, homeowners might want to think twice before selling if they live in these 10 cities

“When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow Chief Economist Stan Humphries.

“However, the greatest returns are actually in markets like San Jose and San Francisco where there are short-term monthly losses, but the long-term earned equity makes them the best markets to invest in,” Humphries added.

Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and 9.1% since June 2011.

And on a local level, the Zillow Rent Index has gone up as much as two to three times that amount over the past year in rental hotspots such as metro Chicago (6.3%) and San Francisco (11%).

These are the top ten markets in the country identified as those most likely to incur long-term financial gain (long-term monthly profit is defined as follows: This includes home equity gains, tax benefits and the difference between monthly rental income and mortgage payments after holding onto the property for six years on the median home)

10. Honolulu: $2,512

9. Sacramento, California: $2, 694

8. Seattle: $2,861

7. Boston: $3,009

6. New York: $3,179

5. Riverside, California: $3,659

4. San Diego, California: $4,165

3. Los Angeles: $4,328

2. San Francisco: $6,078

1. San Jose, California: $8,927


Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos and apartments) in 69 zip codes throughout the region. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals

If you're a qualified renter you deserve to be treated like the preferred customer you are.
Educate yourself
www.RentSenseBlog.com

If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

FBS Apartments, Condos & Homes For Rent in 69 zip codes throughout the S.D. Region

FBS operates Rental Properties for Independent Owners in 69 zip codes throughout the region. We do so utilizing Industry Best Practices which has direct benefits to our renters. We have provided superior housing alternatives for more than 4 decades. Our available rental inventory changes daily. www.fbs-pm.com/rentals

As professional managers we must stay on top of a variety of laws, regulations and housing codes that can be very important to our independent rental owner clients as well as our renters by choice. We review and update our forms, policies and routines with the the help of KTS. Kimball, Tirey and St. John. Here are some of the situations that we asked Ted Kimball to weigh in on -

Landlord/Tenant Questions & Answers

Ted Kimball, Esq. July, 2014

Question: Can I accept rent after serving a notice for an issue other than payment.  For example: an unauthorized occupant notice.

You should always check with a knowledgeable attorney to determine whether you should accept rent or not if the notice served was for something other than payment. Often times accepting rent after serving a notice can waive the notice.

Question: At what point does my property require an onsite resident manager?

If your property has 16 units or more, you are required to have a person onsite who represents the owner.

Question: A resident at my property was taken to the hospital and passed away.  Since the lease requires a 30-day notice, what is the law as far as reimbursement of the deposit?

When a tenant passes, the month-to-month tenancy is terminated 30 days from the date of the decedent’s last rent payment. Therefore, you have 21 days from that date to account for the security deposit assuming that you have taken over possession of the unit.  If anyone else is claiming a right to possession, you would need to go through the eviction process.

Question: We rent garages out to our residents. One of the residents moved a bed and some furniture into the garage and we believe someone is sleeping there. What can we do to make sure we do not have any issues with the use of the garage as a bedroom?

If you have a separate month-to-month agreement for the garage, you can terminate the garage rental with a 30-Day Notice to Perform Conditions or Quit to require the removal of the bed.

Question: My resident is not parking in his assigned parking space on the property. Can we issue him a parking citation for parking in the wrong place?

No, you cannot issue a parking citation. Only the local traffic enforcement agency has the ability to issue parking citations.  You can either issue a Notice to Perform Covenant or Quit if the resident is violating your parking rules, or tow the resident’s car.

Question: I have a resident who has bed bugs in his unit. He refuses to allow access to his unit so that we can start treatment.  Can we evict him?  Can we charge for the cost of treatment?

First, you need to send a Notice to Perform Covenant of Quit for refusal to allow access.  If your resident fails to provide access prior to the expiration date of the notice, you can start the eviction process.  As for charging the resident for treatment, if you can show that the resident is responsible for the infestation, you should be able to charge. It is important to have a professional pest control vendor who specializes in bed bugs that can provide you with a detailed report regarding the source of the infestation, how long the unit has been infested, and any other information which will help show that it was the resident who caused the infestation.

FBS Apartments, Condos & Homes For Rent in 69 zip codes throughout the S.D. Region

FBS operates Rental Properties for Independent Owners in 69 zip codes throughout the region. We do so utilizing Industry Best Practices which has direct benefits to our renters. We have provided superior housing alternatives for more than 4 decades. Our available rental inventory changes daily. www.fbs-pm.com/rentals

As professional managers we must stay on top of a variety of laws, regulations and housing codes that can be very important to our independent rental owner clients as well as our renters by choice. We review and update our forms, policies and routines with the the help of KTS. Kimball, Tirey and St. John. Here are some of the situations that we asked Ted Kimball to weigh in on -

Landlord/Tenant Questions & Answers

Ted Kimball, Esq. July, 2014

Question: Can I accept rent after serving a notice for an issue other than payment.  For example: an unauthorized occupant notice.

You should always check with a knowledgeable attorney to determine whether you should accept rent or not if the notice served was for something other than payment. Often times accepting rent after serving a notice can waive the notice.

Question: At what point does my property require an onsite resident manager?

If your property has 16 units or more, you are required to have a person onsite who represents the owner.

Question: A resident at my property was taken to the hospital and passed away.  Since the lease requires a 30-day notice, what is the law as far as reimbursement of the deposit?

When a tenant passes, the month-to-month tenancy is terminated 30 days from the date of the decedent’s last rent payment. Therefore, you have 21 days from that date to account for the security deposit assuming that you have taken over possession of the unit.  If anyone else is claiming a right to possession, you would need to go through the eviction process.

Question: We rent garages out to our residents. One of the residents moved a bed and some furniture into the garage and we believe someone is sleeping there. What can we do to make sure we do not have any issues with the use of the garage as a bedroom?

If you have a separate month-to-month agreement for the garage, you can terminate the garage rental with a 30-Day Notice to Perform Conditions or Quit to require the removal of the bed.

Question: My resident is not parking in his assigned parking space on the property. Can we issue him a parking citation for parking in the wrong place?

No, you cannot issue a parking citation. Only the local traffic enforcement agency has the ability to issue parking citations.  You can either issue a Notice to Perform Covenant or Quit if the resident is violating your parking rules, or tow the resident’s car.

Question: I have a resident who has bed bugs in his unit. He refuses to allow access to his unit so that we can start treatment.  Can we evict him?  Can we charge for the cost of treatment?

First, you need to send a Notice to Perform Covenant of Quit for refusal to allow access.  If your resident fails to provide access prior to the expiration date of the notice, you can start the eviction process.  As for charging the resident for treatment, if you can show that the resident is responsible for the infestation, you should be able to charge. It is important to have a professional pest control vendor who specializes in bed bugs that can provide you with a detailed report regarding the source of the infestation, how long the unit has been infested, and any other information which will help show that it was the resident who caused the infestation.

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Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability (Government Code Section 65583(c)(5)).

San Diego Metro Office
6398 Del Cerro Blvd., Ste 8.
San Diego, CA 92120
Phone:
(619) 286-7600

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