Jodi Summers = Multiunit Real Estate

CALIFORNIANS TO STOP HIGHER PROPERTY TAXES

May 25, 2013 on 8:43 pm | In Economy, Events, Fascinating Information, Government, Legal, New Developments, Of Local Importance, Sellers, Trends, Uncategorized, WOW | 1 Comment

CBPA is a founding member of a coalition that has banded together to provide education and information about the problems related with eviscerating Proposition 13. The group is named Californians to Stop Higher Property Taxes. On your behalf, our coalition provides a website with lots of good resources for news and information related to attempts to increase your property taxes, including academic studies that show the negative impacts a split roll would have on California’s economy. Click here to visit the CSHPT website.

http://stophigherpropertytaxes.org/

http://www.capoliticalreview.com/wp-content/uploads/2012/03/prop-131.jpg

YOUR FREE BUILDING PERFORMANCE TRACKING HANDBOOK HELPS CUT BUILDING COSTS

May 20, 2013 on 12:29 am | In Charts + Statistics, Economy, Government, Green, Money Saving Opportunities, Uncategorized, Utilities | 3 Comments

by Jodi Summers

Cut the expenses on your commercial property. Building performance tracking promises continuous improvement for every building. Even a building constructed to the most exacting environmental standards needs to be operated and maintained properly to perform as designed. By employing a strategy to monitor and improve the energy and system operation of commercial buildings, building performance tracking is the first step in seeing operating costs fall, asset values grow, and market differentiation improve.

“The Building Performance Tracking Handbook” was developed by the California Commissioning Collaborative with funding from the state’s Energy Commission and can be applied to commercial buildings throughout the country. It allows operators to understand how their buildings are running and improve standard operating procedures and energy usage for a building.

“The Building Performance Handbook” outlines the steps needed to continually manage building performance, demystifies the complex array of building performance tracking tools available, and provides guidance on selecting the most appropriate tracking strategy.

There are four elements to performance tracking:

• Collect data and track the performance of the HVAC and lighting systems, plus energy use data.

• Identify performance problems.

• Diagnose problems and identify solutions.

• Fix problems and verify results.

To help facility managers build a business case, the handbook identifies a range of benefits from performance tracking, including enhanced occupant satisfaction, reduced energy costs and increased property values.

Building Owners, managers, and engineers will find this handbook valuable, whether they are just embarking on a formal performance tracking approach, or are looking to take their existing strategies to the next level.

The Handbook, endorsed by BOMA California’s Energy Committee, is the outcome of research funded by the California Energy Commission, under a project managed by the non-profit California Commissioning Collaborative. The handbook was written by PECI, a non-profit organization devoted to energy efficiency.

Download a copy of the manual @ http://cacx.org/PIER/documents/bpt-handbook.pdf.

http://www.greenbiz.com/blog/2011/11/14/green-building-owners-get-help-tracking-performance

http://www.facilitiesnet.com/buildingautomation/tip/Free-Handbook-Can-Help-With-Tracking-Improving-Building-Performance–22799

http://www.cacx.org/PIER/handbook.html

LIFE COSTS MORE ON THE BOULEVARD

May 10, 2013 on 10:23 am | In Curious, Fascinating Information, Uncategorized | 2 Comments

by Jodi Summers

What’s in a name? Apparently when it comes the street suffixes, plenty. Bet you didn’t know the best street to live on is a boulevard? Of all the routes, ways, places, streets and roads you can live on, the Blvd. is the priciest. Why? It’s not because the origin of the word is French. Approximately, 37% of homes on “boulevards” are in multi-unit buildings, such as apartments and condos. In contrast, these types of homes make up no more than 16% of homes on every other address suffix – lanes and the like. Pundits have concluded that a greater concentration of multi-unit buildings drives up the cost, as they are often located in denser, urban areas where space is at a premium.

“Boulevard” may be the most expensive suffix but with only a 2% share of total listings, it’s certainly not the most prevalent one. In contrast, 22% of listings are located on a “drive.” That’s even more popular than “street” (19%), “road” (16%), and “avenue” (15%).

Curiously, the median home on a “road” is respectively 8% and 9% more expensive than those located on seemingly more upscale-sounding “court” and “circle.”

http://pro.truliablog.com/industry-2/which-homes-typically-cost-more-those-on-wisteria-lane-or-sesame-street/?ecampaign=tnews&eurl=pro.truliablog.com%2Findustry-2%2Fwhich-homes-typically-cost-more-those-on-wisteria-lane-or-sesame-street

http://www.socalmultiunitrealestateblog.com/?p=2244

http://sandiegometro.com/wp-content/uploads/2010/07/Ms.-Boulevard-with-the-Boulevard-Sign.jpg

http://www.ibiblio.org/wm/paint/auth/hopper/street/hopper.prospect-street.jpg

http://www.reproductionart.org/Camille%20Pissarro%20Images/The%20Boulevard%20Montmartre%20on%20a%20Cloudy%20Morning.JPG

WESTSIDE APARTMENT MARKET UPDATE > WE’RE TALKING BRENTWOOD, WESTWOOD, BEVERLYWOOD, BEVERLY HILLS, SANTA MONICA, VENICE AND MARINA DEL REY

May 9, 2013 on 3:32 pm | In Buyers, Charts + Statistics, Curious, Fascinating Information, For Your Purchasing Pleasure, Market Snapshot, New Developments, Rents, Sellers, Trends, Uncategorized | 3 Comments

by Jodi Summers

Thinking about buying apartments on the Westside of L.A.? Here’s a tip for you, the Brentwood/Westwood/Beverley Hills submarket is expected to record the highest rent increase due to the paucity of new construction.

The last 12 months has seen 650 new multifamily units become available on the Westside, increasing stock by 0.5%, according to Marcus and Millichap in their recent Apartment Research Report. Approximately 380 of those units were delivered in the Santa Monica/Marina Del Rey submarket during that time.

Traditional vacancy rates for the area have been between 3.1% and 2.2% for the past two years. New units at high prices have pushed up the Santa Monica/Marina Del Rey vacancy rate to 3.6% in the first quarter. The Santa Monica/Marina Del Rey submarket is slated to receive 1,150 new units this year.

Effective rents at professionally managed properties on the Westside climbed 4.5% to $2,346 per month between Q1 2012 and Q1 2013. But, the Santa Monica/Marina Del Rey submarket recorded a 1.3% decline in effective rents to $2,647 per month to compete with new units. In Brentwood/Westwood/Beverley Hills, effective rents jumped 8.9% to $2,515 per month. Throughout the area, average revenue climbed 4.1% over the past year.

Competition for tenants is up, lease rates are down. Purchase prices are up, cap rates are down. Indeed, investors acquired 30% more apartment properties in the Westside Cities submarket during 2012 than 2011. In the most recent 12-month period ending in 1Q13, the median sale price climbed 11% to $227,000 per unit. The average number of units per deal hovered near 15 units as buyers sought assets that do not require on-site management. Cap rates are averaging in the high-4% range, down .4% from the previous year.

The desirability of the Santa Monica/Marina del Rey submarket is allowing sellers of local assets to command higher prices. Experts believe that future rent gains and appreciation are being priced into assets, which will raise challenges when the market begins to cool. Looking a bit further east to Brentwood/Westwood/Beverley Hills may yield purchases with better returns.

We’re here to help you with your real estate needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

https://www.marcusmillichap.com/services/research/webreports/LosAngeles/Apartment.aspx

http://www.socalmultiunitrealestateblog.com/?p=2415

http://www.kearch.com/wp-content/uploads/2012/12/koningeizenberg_village_d_1.jpg

SOCAL MULTIUNIT REAL ESTATE SNAPSHOT ~ MAY 2013 ~ AMAZING POSSIBILITIES

April 30, 2013 on 3:11 pm | In Buyers, Charts + Statistics, Economy, Fascinating Information, Investment Opportunities, Rents, Sellers, Trends, Uncategorized | 3 Comments

by Jodi Summers

Have you been astonished by all the new construction going on around town? They’re mid-rise multifamily projects everywhere! Apartment landlords have another quarter or two to enjoy tight supply growth before a large number of new properties come online.

In Los Angeles, during the first quarter, multifamily developers stepped up construction activity by 77%, permitting more than 12,700 units, notes Marcus and Millichap in their recent Apartment Research Report. As new construction comes online throughout the year, vacancy rates will pick up a minimal .2% to 3.9% while new renter demand grows 0.3%.

Get used to the term “new renter demand.” The U.S. economy is ripe for a surge of household formation, unleashing pent-up demand for everything from homes to weddings. We see it here, in Los Angeles, where our optimistic employment market is encouraging more residents to seek housing. Btw, unemployment in L.A. County has dropped to 10.2% in March 2013, down from 10.3% in February, and 11.2% from March 2012.

But don’t get too excited, new construction and rising rents will limit the pace of absorption. We seen rents in the Westside Cities and Downtown have climbed nearly 20% since the Great Recession. Renters that signed bargain leases a couple of years ago in non rent control properties may find themselves relocating to less-expensive areas. In the boom markets, robust job growth will refill most newly vacant units.

In 2013, professionally managed apartments are expected to record an average increase in effective rents to $1,705 per month, up 4.5% from the average at the end of last year. In 2012, effective rents climbed 2.1%.

If that’s not enough good news, here are more statistics as to why apartment rentals will stay strong…If you take traditional financing methods; rents at hip apartments are $500 per month higher than the monthly mortgage obligation on a median-priced home. But here’s the catch, in 1Q the median single-family home price in L.A. County was $330,300. The median household income of $53,600 is currently $21,000 below the minimum qualifying income for a median-priced home. Mortgages may be more reasonable than rents at newer apartments, yet less than half of the households in Los Angeles County qualify for a median-price home. Thus, our apartment market will stay strong.

Buyers should note that multiunit cap rates are currently in the low-6% range because of stiff competition for properties. If you’re looking for a higher return, try the Mid-Cities area returned, which are currently seeing returns in the 7% range.

http://www.bloomberg.com/news/2013-04-18/new-households-created-as-u-s-kids-leave-home-cutting-research.html

http://www.multifamilyexecutive.com/cap-rates/is-multifamily-heading-toward-a-bubble.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=MFEBU_042513&day=2013-04-25

https://www.marcusmillichap.com/services/research/webreports/LosAngeles/Apartment.aspx

http://www.socalmultiunitrealestateblog.com/?p=2404

http://www.moorerubleyudell.com/sites/default/files/image007.jpg

http://www.labormarketinfo.edd.ca.gov/

WHEN CAN A LANDLORD ENTER A TENANT’S APARTMENT?

April 19, 2013 on 8:10 pm | In Curious, Experts Say, Uncategorized | No Comments

by Jodi Summers

We’ve had our earthquakes. The East Coast has their hurricanes. Power lines go down. Gas pipes get broken. Last November, after Hurricane Sandy, no one was permitted to turn on the gas until their property was inspected. You have tenants. Under what circumstances can you enter your tenant’s unit without giving them appropriate notice?

The law says, a landlord should not force entry except when there is a true emergency, such as a fire, to address a suspected gas or water leak, to respond to sounds of distress inside…the common thread is that landlords may enter to stop serious property damage or personal injury

Under California Civil Code 1954, a landlord may enter a tenant’s unit without permission ONLY:

(1) in an emergency, like a fire or broken pipe, or

(2) upon reasonable advance notice, and then ONLY:

(A) to inspect, repair, or show the apartment,

(B) during normal business hours [presumably Mon.-Fri. 8AM-6PM]

(D) The tenant does not have to be home when they come, but the landlord is liable for anything stolen or broken.

(D) The notice must identify a date and reasonable time range [like an hour] within which the entry will occur

(E) The notice MUST be written, except if a WRITTEN notice that realtors will be showing the property is given, for the next 120 days only an oral telephonic 24 hour notice is required [business hour limit still applies]

(G) The right of entry can’t be “abused”, so that an open house, lock box, extended repair, daily entry, or excessive range of entry time are probably all “abuses” which the tenant has the legal right to prevent.

Gas leaks are a particular interesting scenario. If the gas is shut off at the street, any remaining gas in the house lines is quickly used up by the pilots. Relighting pilots can be tricky, especially when you’re dealing with empty gas lines that have just been reopened. In addition, many pilots are in hard-to-reach places, such as under stoves and in furnaces located in attics.

A professional may come inside to relight the pilots to avert the possibility of any nasty surprises. In other words, they’re coming in so that they can avoid an emergency.

Sure, a landlord can ask the professional to coordinate a time with the tenant, or after the landlord had either posted 24-hour notice. But, more than likely this will result in additional costs and an angry tenant, as gas appliances become nonfunctional, and hot water disappears.

If a tenant is repeatedly unreasonable in denying the landlord access, the landlord can legally enter anyway, during reasonable times, provided he does so in a peaceful manner. However, in no case should the landlord enter if the tenant is present and saying “stay out.”

If a landlord has a serious conflict over access with an otherwise satisfactory tenant, neighborhood mediation programs may assist in gaining consent. Help. If attempts at compromise don’t work, a landlord can usually evict the tenant for violating the lease or rental agreement, assuming it contains an appropriate right-of-entry provision.