• About Frank

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  • 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.

7 Property Management Mistakes To Avoid

Whether you are a property manager, homeowner, landlord or investor there are some key property management mistakes you want to avoid.

Sometimes being penny wise is being dollar foolish. Owning property is a long-term investment with the building, the land and the tenant so planning ahead is important.

Here are some tips to help you along the way:

1. Screen and Interview Tenants. Do your due diligence, have the tenant fill out a rental application, collect the fee for a credit report, criminal background check and call to confirm employment. Remember when doing your tenant background check, fair housing laws require that what you do for one you do for all, be consistent. And get a copy of the ID to make sure you know who you are dealing with.

2. Hiring New Contractors Every Time is a Big No-No. You want to create a relationship with the local contractors where when you have a problem you call them and it gets done. Shopping around for the best price all the time will just cause you headaches and more time in the long run. So find someone local that has been in business for a while and knows what they are doing, create a relationship and stick with them.

3. Hiring Unskilled Workers to Save Money. This will just come back to haunt you. They probably have no insurance, no or little experience, no guarantee on work done. On top of all this no background check, who knows who you are hiring, this could be a huge safety issue.

4. Letting Tenants Do Their Own Maintenance or Repairs. This is almost as bad as hiring unskilled workers, it might seem like an easy way out but this could lead to further damages, more repairs and you could be liable for damages or injuries.

5. Failing to Do Routine Inspection and Repair. Owning property has a lot to do with preventative maintenance. In the short term it will cost a little and in the long term save you much. Routine inspections can help you spot problems before they become huge and shows the tenant that you care. Depending on the age of the property you can do yearly inspections, bi-annually or quarterly.

6. Communicate with the Tenant. You need to keep open communication with the tenant; e-mail is the best since it is documented. If you have any concerns you reach out, if there are any problems tell the tenant to let you know ASAP. This will create a sound landlord-tenant relationship.

7. Do Not Wait Until the Last Moment to Renew the Lease. Talk to your tenant 60 to 90 days before the end of the lease to see what their plans are. Also communicate if there will be an increase of rent and if so why. Remember this is a two way street where you want it to be a win-win for both parties.

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Construction Lull Leads to Fewer Apartment Vacancies

Freddie Mac released its U.S. Economic and Housing Market Outlook for December showing what some of the market features are expected to look like in 2013.

Outlook Highlights

Look for long-term mortgage rates to remain near their record lows for the first half of 2013, then rising gradually during the second half of the year, but remaining below 4 percent.

Expect property values to continue to strengthen with most U.S. house price indexes likely rising by 2 to 3 percent in 2013.

Household formation should step up further to a net 1.20 to 1.25 million household increase in 2013 with housing starts up around the 1 million annualized pace by the fourth quarter.

Vacancy rates for both apartments and the single-family for-sale market could bring aggregate vacancy rates down to 2002-2003 levels as household formation outpaces new construction.

While the refinance boom will continue into early 2013, it will be less compared to 2012 so look for single-family mortgage originations to decline by 15 percent, conversely, expect multifamily lending to rise approximately 5 percent.

Frank Nothaft, Freddie Mac vice president and chief economist explains,”The last few months have brought a spate of favorable news on the U.S. housing market with construction up, more home sales, and home-value growth turning positive. This has been a big change from a year ago, when some analysts worried that the looming ‘shadow inventory’ would keep the housing sector mired in an economic depression. Instead, the housing market is healing, is contributing positively to GDP and is returning to its traditional role of supporting the economic recovery.”

A short preview video and the complete December 2012 U.S. Economic and Housing Market Outlook are available here. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

Parting Ways (Quick Tip)

It’s easy to lose money when tenants move out.

Here are 3 ways to avoid costly move-out mistakes:

1.  Do not agree to allow the tenants to apply the security deposit to last month’s rent.  The fact that they are asking to do that is a sure sign that something is broken!

2.  Do not allow the tenants to leave without walking through the property together, after all their stuff is out.  Schedule a specific time and date a couple weeks in advance, and remind the tenant that you are coming through.

3.  Do not move the next tenant in before you have recorded any damage that occurred from the last tenant.