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.”
WESTSIDE APARTMENT MARKET UPDATE > WE’RE TALKING BRENTWOOD, WESTWOOD, BEVERLYWOOD, BEVERLY HILLS, SANTA MONICA, VENICE AND MARINA DEL REYMay 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 | No Comments
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 – email@example.com or 310.392.1211, and let us move forward together.
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,
(C) 24 hours is presumed to be sufficient notice
(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.
Time flies. Do you remember back in 2007 when Arnold Schwarzenegger was governor and the state assembly passed AB 1103 Commercial Building Energy Use Disclosure Program? It was supposed to begin in 2010, but of course, it got changed and delayed and modified and finally, low and behold, the time to disclose energy data is upon us. The first phase of the Energy Use Disclosure Requirements begins July 1, 2013.
To refresh our memories, Assembly Bills 1103 and 531 require owners of nonresidential buildings located in California to disclose energy usage of such buildings in advance of any sale, lease, or financing of the entire building.
Here is the schedule for when commercial buildings need to keep and disclose energy usage records:
2. On and after January 1, 2014, for buildings with a total gross floor area between 10,000 square feet and 50,000 square feet; and
3. On and after July 1, 2014, for buildings with a total gross floor area between 5,000 square feet 10,000 square feet.
AB 1103 and 531
Assembly Bill 1103, signed into law on October 12, 2007, requires the tracking of the energy use of all nonresidential buildings and the disclosure of such energy use as part of the sale, lease, or financing of an entire nonresidential building. T
The disclosure requirement is intended to “motivate building operators to take actions to improve their buildings’ energy profiles” and “to allow building owners and operators to compare their buildings’ performance to that of similar buildings and to manage their buildings’ energy costs.”
Since we’re talking government, AB 1103 then added Section 25402.10 which contained a compliance deadline of January 1, 2010. Assembly Bill 531 removed that deadline, and replaced it with the disclosure of energy usage data on a schedule of compliance established by the State Energy Resources Conservation and Development Commission.
Compliance with Assembly Bills 1103 and 531 expects owners of nonresidential buildings to take certain actions at least 30 days before the sale, lease, or financing of the entire building.
1. Register for an account with “Portfolio Manager,” the U.S. Environmental Protection Agency’s ENERGY STAR program online tool for managing building energy use data.
2. Create a profile within Portfolio Manager for the nonresidential building.
3. Use Portfolio Manager to request that utilities serving the building release the last 12 months of energy use data for the building to Portfolio Manager. What you’ll get is:
- Disclosure Summary Sheet;
- Statement of Energy Performance;
- Data Checklist; and
- Facility Summary (collectively, the “Disclosure Data”).
4. After the utility data has been provided, download the Disclosure Data; and provide the Disclosure Data as part of the sale, lease, or financing.
(Regulations section 1683(a) + 1684(c).)
Here’s the curious caveat, there is no specific penalty for non-compliance, but a failure to disclose a building’s energy usage could be viewed as a material fact in the transaction.
by Jodi Summers
According to the newest data from Apartments.com, many Gen Y-ers and other first-time renters are way off on what the going rate is for an apartment in many of the most popular U.S. cities. And the price they are hoping to pay just doesn’t exist in many markets.
Los Angeles is 7th and North Hollywood is 10th on the list of the Top 10 cities where renters severely underestimate the actual cost of rent when conducting their apartment searches online. Sometimes what someone wants to pay is nowhere close to what they will have to pay. Here’s the cities where renters and landlords are the furthest apart…yo shout out to Brooklyn:
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.
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.
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 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.
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.