• About Frank

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 613 other followers

  • Frank Rizzi manages Bos Commercial in West Covina and has been in real estate since 1988. Since then, he has made millions for his investors over the last decade.

    With his team of experts, he has built a solid reputation as a responsive expert with in-depth market perspective of a local firm coupled with the sophisticated capabilities of a national company.

    BOS Commercial has positioned itself to handle every aspect of your commercial property
    investment whether it be purchases, management, leasing, renovations, or sale of your property.

Pets…YES or NO?

Whether or not landlords should allow pets is always a concern among tenants and property owners. People are very attached to their pets which can determine if they will be taking your rental or not. Allowing pets will make you more money by obtaining an adequate security deposit and charging sufficient rent and pet rent; even some damage will not outweigh the benefit of having allowed the pets.

Over 75% of tenants say they have pets, while less than a quarter of landlords say allow them. Landlords that allow tenants to bring pets into rental properties have an advantage. It’s simply supply and demand. Allowing pets and securing deposits up front dramatically increases your  qualified renters which translates to filling vacancies sooner and making you more money faster.

By collecting extra security deposits up front and charging tenants additional rent and pet rent each month you are protecting your investment.

Let’s break this down, a unit that would have otherwise rented for $1000 can now rent for $1100. An additional $40 per month per pet in pet rent and that is a total of $1,680 extra per year. Next, you charge an increased security deposit which is usually $250, I strongly stress to the tenants that this is refundable.  If they clean up properly after their pet and there is no damage, they will get the money back.

Lastly, I limit the amount of pets per apartment, no more than 2 pets per unit. Limiting the weight of the pets to 10 pounds each assures you that your possible damages will not be as great as that of a large animal. And I also do not allow the 10 most aggressive dogs to stay on the property due to secondary liabilities. The ten most dangerous dogs are as follows from least to greatest:

10. Dalmatian

9. Boxer

8. Presa Canario

7. Chow Chow

6. Doberman Pinschers

5. Alaskan Malamutes

4. Huskies

3. German Shepherds

2. Rottweilers

1. Pit Bulls

 So the next time your looking to rent your place be friendlier to the four legged friends, they will ultimately end up doing you more good than harm… and if not at least their owner will cover the tab!

Craigslist Helpful Tips on Posting Rentals

Renting residential property is one of the most important aspects of my career. Being able to find the most effective way to advertise and market an investor’s property is crucial for assuring revenue is always growing.  For vacancies here are some great tips that help get that rental…Rented!

Craigslist is one of the smartest places to start; it can become one of your top generators. The only thing is, you have to know how to use it to your advantage. Here are some tips for making the most out of Craigslist.

  1. Post your rentals up on Sunday. For the rental industry on Craigslist, the highest traffic day is actually Sunday. Sundays have the highest average views than any other day for e rental industry! This is true for any type of rental on the market.
  2. Remember to use all the services available to you; come up with creative and fun looking ads, track traffic, provide analytics and of course don’t forget to maximize your craigslist ads by using Postlets and Rentsentinel that link your advertisement back to Craigslist.
  3. Always, always, always include pictures. Bright, clear, vivid, new pictures. Noting sells a great place like itself!
  4. Should you have the traditional organic Craigslist ads or the jazzed up ones with hyperlinks, pictures, formatting, etc. Do both! Switch it up, it will add variety.
  5. Point out great features in your ads! Make each ad specific to what your trying lease. For your spacious two bedrooms, accepting pets, or are near a school… whatever the case may be it is ok to point out the variety in your ads.
  6. Mention your ads that you are pet friendly or do not accept pets.
  7. Highlight if your rental is in a smoke free rental or smoking is permitted.
  8. Don’t forget to include search engine friendly terms in your ads, so that renters can find your ad easily.
  9. Post your ads daily but don’t overdo it and do it every hour either.
  10. When you get a call, be cordial, available, and knowledgeable of the particular unit.

Happy posting!

 

The Importance of Having a Good Property Manager

When I am asked to take on the responsibility of managing a new property I am always amazed to find property owners puzzled when I outline for them my responsibilities as a property manager. Property management involves finding good tenants, collecting rents, maintaining the facility, and the issues that come up on a “day-to-day” basis. A multiple unit complex is rarely without constant issues ranging from the smallest to the complex. Because of the nature of these kinds of properties a professional property manager can save the investor time, headaches, and above all money.

In addition to increasing revenues, screening prospective tenants, maintaining the property, collecting rents, overseeing eviction procedures, and submitting reports and revenues to the owner, the property manager often has to deal with all sorts of property management issues, tenant problems and requests. The investor will have a peace of mind intrusting his/her property in the hands of someone who will employ reliable people to handle these problems.

Properties that have been mismanaged by inexperienced landlords can be an opportune moment for the experienced investor. Our brokerage division has helped our investors take advantage of such opportunities 26 times so far this year.  Most importantly, a property manager with profitable experience is a great asset to any landlord, and should not be looked at as an expense.

Is Now A Good Time to Buy?

Investors are questioning if “now” is a good time to purchase a home/condo/investment while property values are low. In addition to property being low right now, a tax credit could also be a plus for buyers.

If you are thinking of making an investment you should be anticipating to keep it at least for 5 years. It wouldn’t be safe to turn it around any sooner than that. You’ll minimize the risk in making such a big investment if you hold on to it a little longer.

Make sure you trust your agent /broker and that they are very knowledgeable. Make sure they know; the area where you are looking to buy, networks well with other agents, has a very good understanding of property value, knows the contract inside and out, and can negotiate the right price for you.

The difference between a good agent and a great agent is their knowledge and their ability to use that knowledge to their advantage. Anyone can “try” to find the right investment for you, it’s the good agents that can actually make worth your while.

So if you feel like all the above mentioned categories are checked, go ahead and make that investment and good luck as you watch it grow!

Are Condo Association Fees to High?

I am often asked, “Why is my association fee so high?” The answer depends on the budget of your building. You have to take into account how much it costs to run, operate, and also how to save for future repairs. One of the biggest problem Associations face is that they don’t save enough for painting, roofing, and deck issues. Because those things are overlooked the building deteriorates and large special assessments for improvements are often needed but discouraged.

By establishing a proper budget for your Association you should be able to set aside money for future repairs and continual maintenance. Also, it is crucial to analyze all your vendors who maintain and repair the property. You have to make sure that you are getting the most value for you money. Another problem Associations face is that they don’t change their vendors or bid out the work properly, this leads to over paying for common services.  

A perfect example would be, in one of our Associations we were able to bring in a new Insurance Company on board and save the HOA $1,700.00 a year in addition to increasing the buildings coverage of over $400,000.00 with a triple A rated company. Additionally, we were able to save $2,400.00 a year on landscape work by finding another vendor. With minimal amount of effort I was able to save the Association $4,100.00 a year that we can now add to the reserve account for future use.

In short, if you don’t charge enough Association fees to maintain the building and establish some type of reserve, then the outcome will be a greater loss of value to your property and the re-sale price of your unit.

What is the Cost of Poor Management: Part 1

Today’s Issue: Decks

I recently took over management of a condo association and wanted to share with you the frustration and cost that I am dealing with because of poor deck maintenance. To put it simply, a properly maintained deck requires regular washing (a pressure washer to remove dirt, grime, oil, etc.), cleaning (the proper cleaning agents that are designed for your particular deck), and lastly, painting and sealing (for sustainability and protection).  Had the previous property manager properly maintained the deck there wouldn’t be a need to spend so much on correcting an avoidable problem.

This lack of maintenance will cost nearly $20,000 in repairs; we need to replace  the decks, replace the termite infested wood, and replace the stucco in the garage.  Most decks are part of the common area (please check your CC&R’s to make sure) and should therefore be up kept to preserve the property and avoid unnecessary future costs.

It should be the responsibility of the Association in conjunction with the Property Manager to make sure the decks are serviced regularly so issues like this do not arise.

Does Loopnet Really Help?

Keeping up With the Trend a New Tool in the Toolbox

 

October 5, 2010

Loopnet has helped me sell, lease, and purchase dozens of properties. I use it as a tool to help me  accomplish my goals with less time and more ease.  Loopnet not only aids a Broker with advertising available listings but also provides property records, property history, tax records, ownership history, mortgage/lender history, and tenant information  to name a few.   

Brokers who fear they are being outsourced by loopnet should consider another profession.  True commercial brokers are professionals in their trade and should know how to evaluate a property, create accurate rent roles and proforma profit and loss statements, know about construction issues that might arise, and stay up to date with any political/legal activities concerning a particular investment.  Aside from these items a Broker’s primary obligation, if representing a seller¸ is to get that property in front of as many eyes as possible. Loopnet, unlike many other listing services helps you do that quick and easily.  Brokerage firms who use to hold listings within their firm, with the hopes to double end a deal, in my opinion are not meeting their fiduciary obligation they swore to when they became brokers.