Jodi Summers = Multiunit Real Estate

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.

http://www.inman.com/buyers-sellers/columnists/janetportman/what-types-emergencies-justify-landlord-entry

http://www.socalmultiunitrealestateblog.com/?p=2235

http://www.caltenantlaw.com/Privacy.htm

http://www.cesinaction.org/Portals/0/Landlord%20Right%20to%20Entry.pdf

http://atpm.wpengine.com/wp-content/uploads/2009/06/angry-tenant.jpg?w=300

http://www.lawyers.com/~/media/Images/Item%20Images/Real%20Estate/Landlord%20Tenant/woman-door-chain.ashx?w=250&h=166&as=1

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http://www.tenantscreeningblog.com/wp-content/uploads/fire1.jpg

http://img.ehowcdn.com/article-new/ehow/images/a05/qo/vb/california-trespassing-onto-personal-property_-800×800.jpg

PROBATE AND REAL ESTATE < HERE’S WHAT HAPPENS WHEN YOU WILL PROPERTY TO PEOPLE YOU LOVE

February 19, 2013 on 8:55 pm | In Curious, Experts Say, Fascinating Information, Legal, Sellers, Uncategorized | 1 Comment

by Jodi Summers

Here’s an interesting factoid about real estate in the United States: Property must at all times be transferable. And having same that, once your body 6-feet under in your eternal plot of real estate, any asset transfer that may have required your signature must go through probate.* Probate is the legal process validates the deceased’s will. Essentially, probate is the legal process of distributing and retitling the assets as set forth in your will.

Allow us to share with you the answers to some basic questions about probate.

What is Probate?

A: Probate is the legal process of distributing the assets and estate of a deceased person. This may include any and all issues that come with probate property such as assignment of title, taxes, insurance, loans as well as debts and creditors. Probate is generally for the ones that die with the most toys, as it is usually applied to large estates or significant sums of money. If you own real estate in the Los Angeles area, in addition to other assets, you most likely qualify. Please consult with your attorney for details.

What is Probate Court?

The Surrogate’s Court handles all probate and estate proceedings. Probate court interprets the will and appoints the executor. Probate weighs any claims made against the estate through heirs and beneficiaries as well as taxes and debts.

When is Probate Required?

Probate court is needed to either make your claim on the deceased’s assets or to prove that you are a legal beneficiary. Experts note 5 main reasons for probate court….

1. Probate court becomes necessary if the will is declared invalid for reasons such as:

L Improper Execution -The will was not written clearly or it was not a legal will.

L Mental Incompetence – The deceased was not mentally competent when they made up the will so their decisions are questioned. (This is a favorite among jealous relatives.)

L Undue Influence – The deceased was under duress when they wrote up/revised the will.

2. Probate is required if the deceased didn’t have a Last Will and Testament. If there is no will, the law requires probate court for the legal and equitable distribution of the deceased’s assets and for transferring the title of probate property. Hard to avoid probate without a will.

3. Probate is required if the assets were owned solely by the deceased. If no one else is on title, and there are no recorded designates for the property or asset, then, most likely, the property will have to be probated to get it out of the deceased’s name and into the beneficiary’s name.

Figure if your real estate isn’t wrapped in a trust, it will most likely have to go to probate…

4. Probate is required if the assets were owned as a Tenant in Common or Joint Tenancy. (Wait! But 3. said…) If the deceased owned property jointly with another person, like in a common law marriage, then probate is required to ensure that the deceased’s share of the property is properly distributed to legal heirs.

5. Probate is required if there are no designated beneficiaries or if all of the beneficiaries died first. When it comes to life insurance policies, retirement funds or certain savings accounts, beneficiaries are usually named. But these documents don’t get updated regularly. If all the named beneficiaries have passed away or if the deceased didn’t name beneficiaries, then probate is required to transfer the money or title to the beneficiaries.

In Conclusion

Probate is required if you are lucky enough to have significant assets to be distributed, and/or have creditors to be paid outside of what is legally stated in the will. It is also needed if there is no will at all.

If any of this article applies to you or to the deceased, then you might want to consult a probate attorney.

May you inherit richly.

* Probate may be avoided if you’ve got it wrapped up in the right type of trust. Please talk to you attorney for details.

http://www.articlesbase.com/elderly-care-articles/when-is-probate-required-five-reasons-to-go-to-probate-court-879426.html

http://obituarieshelp.org/

http://en.wikipedia.org/wiki/New_York_Surrogate%27s_Court

http://reitips.com/wp-content/uploads/2009/01/probatejudge3.jpg

http://www.socalmultiunitrealestateblog.com/?p=2161

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http://cdn2.mog.com/images/002333741270820960.jpg

THE SOCAL MULTIUNIT REAL ESTATE SNAPSHOT ~ JANUARY 2013 ~ IMPROVING HOUSING

December 31, 2012 on 8:48 pm | In Charts + Statistics, Economy, Experts Say, Market Snapshot, Rents, Sellers, Trends, Uncategorized | 5 Comments

by Jodi Summers

Wow! It’s 2013! We made it. And during the tumultuous times of the past few years, multifamily has had an excellent run. Throughout the recession, multiunits were the beacon of hope in an otherwise depressing real estate market. Now apartment properties are falling back into the pack of real estate options.

Throughout the recession, apartment REITs was the darling of commercial real estate investment. Multifamily has led the industry’s recovery since it hit bottom in 2009. The sector was one of the very few that has been able to secure financing for new construction amid strict lending requirements.

It was multiunits gone wild for a couple of years, and many wise buyers and sellers got their jollies during the peak, which may be why there has been a 12.6% drop in inventory in the past year. The drop in supply and the shorter time on market has caused prices to go up, and may continue to do so. Sellers, are you listening? We have buyers looking for properties like yours.

Multifamily are a strong addition to your portfolio. Over the past year median sale prices in Los Angeles have risen 2.1% to $137,203 per unit, according to Loopnet. The current median sale price is down by 9.9% from the highest median sale price over the past three years, which was $152,354 set in October 2009. In comparison, the current price is 3.7% higher than the April 2012 figure, which was the three-year low.

The National Association of Realtor’s latest Commercial Real Estate Outlook concludes that multifamily housing is projected to see vacancy rates decline from 4.0% in the fourth quarter to 3.9% in the fourth quarter of 2013. They say, “Vacancy rates below 5% are considered a landlord’s market with demand justifying higher rents.”

Areas with the lowest multifamily vacancy rates currently are Portland, Ore., at 2.1%; New York City, 2.2%; and Minneapolis, 2.3%.The Los Angeles vacancy rate in 3Q 2012 was 4.6% according to CBRE.

Average apartment rent were said to have increased 4.1% in 2012 and will grow another 4.6% next year. Multifamily net absorption is likely to be 219,700 units this year and 234,600 in 2013.

Results from the Urban Land Institute’s Emerging Trends In Real Estate poll or investors found that they consider the best housing markets to be in areas with better commercial real estate options – because a housing sector recovery generates more jobs, and demand for vacant commercial real estate. Demand and interest in apartments in “American infill” locations like our local Koreatown and Silver Lake remain attractive, leading to a boom in apartment development. Leading the multifamily move is the echo boomer generation, which is delaying plans of home ownership.

We’re here to help you with your commercial and investment property 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.

http://blogs.wsj.com/developments/2012/12/12/investors-assess-apartments-after-the-love-is-gone/

http://www.uli.org/press-release/u-s-commercial-real-estate-recovery-to-advance-in-2013-with-nationwide-gains-in-leasing-rents-pricing-according-to-pwc-us-and-urban-land-institutes-emerging-trends-in-real-estate-forecast/

http://www.realestate.com/advice/wp-content/uploads/2012/08/Fotolia_34591631_XS-300×300.jpg

http://www.realtor.org/news-releases/2012/10/commercial-real-estate-vacancies-slowly-declining-rents-rising

http://www.scribd.com/fullscreen/116742486?access_key=key-1on4f9dkq5d9bz8mcjb9

http://www.cbre.com/EN/aboutus/MediaCentre/2012/Pages/101012.aspx

http://extras.mnginteractive.com/live/media/site36/2011/0816/20110816__for-rent~p1.jpg

http://www.socalmultiunitrealestateblog.com/?p=2282

http://img.xcitefun.net/users/2012/11/310675,xcitefun-happy-new-year-5.jpg

http://www.loopnet.com/Los-Angeles_California_Market-Trends

http://trends.truliablog.com/2012/12/trulia-price-rent-monitors-nov-2012/

RESIDENTIAL VACANCY UPDATE

December 10, 2012 on 12:58 am | In Charts + Statistics, Experts Say, Fascinating Information, Rents, Trends, Uncategorized | 2 Comments

edited by Jodi Summers

“The economic data indicates that current rental markets are very strong with low vacancy rates, rising rents and solid demographic trends,” indicates David Brickman, senior vice president of Freddie Mac Multifamily. “What this research demonstrates is that these conditions are likely to remain in place for several years to come…”

The national vacancy rates in the third quarter were 8.6% for rental housing and 1.9% for homeowner housing, the Department of Commerce’s Census Bureau reported.

The rental vacancy rate of 8.6% was 1.2 percentage points lower than the rate recorded in the third quarter 2011 and the same as the rate last quarter.

The homeowner vacancy rate of 1.9% was 0.5 percentage points lower than the third quarter 2011 rate and 0.2 percentage points lower than the rate last quarter (2.1%).

The homeownership rate of 65.5% was 0.8 percentage points lower than the third quarter 2011 rate (66.3%) and approximately the same as the rate last quarter.

In the third quarter 2012, the median asking sales price for vacant for sale units was $137,000.

Among regions, the rental vacancy rate was highest in the South (10.5%) and lowest in the Northeast (7.1%) and West (6.5%).

For the third quarter 2012, the homeowner vacancy rate was higher in the South (2.1%) than in the West (1.7%).

Construction financing was even more restricted. Just 8% of respondents indicated construction financing for new apartments was available in all markets for all property types. The vast majority reported construction financing as only available for either the top properties in the top markets (37%) or for all property types in the top markets (36%).

Meanwhile, the single-family rental market, a growing and distinct market from multifamily, has expanded 16% (about 3 million units) since 2007.

“The economic data indicates that current rental markets are very strong with low vacancy rates, rising rents and solid demographic trends. What this research demonstrates is that these conditions are likely to remain in place for several years to come,” Brickman said.

http://www.costar.com/News/Article/Apartment-Market-Dynamics-Look-Strong-for-Next-Two-Years/143041?ref=100&iid=305&cid=383F14EEE265B182474DA2442BACBBBF

http://www.socalmultiunitrealestateblog.com/?p=2209

http://www.apartmentguide.com/blog/wp-content/uploads//2012/03/iStock_000019654584XSmall.jpg

http://econintersect.com/wordpress/wp-content/uploads/2012/04/For-Rent-houseSMALL.jpg

http://www.housingwire.com/sites/default/files/imagecache/fast_news_photo/shutterstock_75568579%281%29.jpg

REHABBING RELEVANT APARTMENT BUILDINGS

November 20, 2012 on 10:47 pm | In Experts Say, Fascinating Information, Historic Properties, Problem Solving, Recycling | 2 Comments

Edited by Jodi Summers

The National Trust for Historic Preservation defines rehabilitate as: “To repair a structure and make it usable again while preserving those portions or features of the property that are historically and culturally significant.”

To successfully rehabilitate a historic building, they are offering us 10 basic principles to keep in mind when undertaking a rehabilitation project.

Of course, every project is different and will have different needs and solutions. But this handy reference guide is a great way to get you started.

PreservationNation

http://www.slideshare.net/PreservationNation/10-on-tuesday-10-basic-principles-for-rehabbing-the-right-way

MULTIUNIT REAL ESTATE SNAPSHOT ~ OCTOBER 2012 < YOU CAN MAKE MONEY

October 1, 2012 on 10:48 am | In Charts + Statistics, Experts Say, fUNNY...mONEY, Market Snapshot, New Developments, Sellers, Trends, Uncategorized, WOW | 2 Comments

by Jodi Summers

Sellers, you will love the results. There is money to be made in the multifamily marketplace in the near future. If you have been contemplating selling your apartment property, let us save you several night of restless contemplation. For new-to-the-market, well-priced apartment properties, it’s easy to get satisfying sales results.

You’ve been hearing great praise for the Los Angeles area apartment market for some time. But with a tremendous number of new multiunit properties in the pipeline, cap rates will come down – particularly on older properties. That’s why now is the time to move.

Here are the facts on Los Angeles County multifamily properties,comparing the recession autumn of Sept. 2010 with our more optimistic Sept. 2012:

The number of Under Contract properties is up 59%
The median sold price is up 61%
The median price of for sale properties is up 19%
The average months supply of inventory is down -72%
The number of For Sale properties is down -46%
The number of New properties is down -23%

>>>> If you’d like to know more about a specific neighborhood, please let us know. <<<<

Also signs are go. Now is a particularly good time to be proactive, as there are many multiunit properties in the construction pipeline. In the UCLA Anderson Forecast national report, senior economist David Shulman expressed optimism about 2013 and 2014, buoyed by, “the lone bright spot in the economy” — the long-awaited rebound in housing construction.

“Led by multi-family construction,” he writes, “housing starts are ramping up, from 612,000 units in 2011 to 763,000 units this year and just under 1 million units in 2013. By 2014, we anticipate that housing starts will be in excess of 1.3 million units and the growth in housing will account for about a full percentage point in GDP growth by 2014.”

The National Association of Home Builders notes that starts in buildings with five or more apartments for June came in at 213,000 (at a seasonally adjusted annual rate). On a year-over-year basis, five-plus starts were up 29%, reflecting the generally upward trend that has prevailed in this segment of the construction industry since the end of 2010.

Economist Shulman reasons that the strength in housing is fortified by gradually rising home prices, record low mortgage rates, improved household formations and modest employment growth.