• 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.

How to Avoid Common Landlord Tenant Dispute

The definition of normal wear and tear and damage is often a sticking point between landlords and tenants.

The property managers at REI Liaison in St. Louis have some tips to help defuse those tense discussions:

Normal Wear and Tear vs Damage

As a landlord state law allows you to collect a security deposit, but the deposit must be refundable if the property is in the same condition as move in, minus normal wear and tear.

This means landlords may only charge tenants for damage done to the property.

Here are a few examples of normal wear:

Worn carpet and linoleum
Cracks in walls caused by settling
Faded or blistered paint

Here are examples of damage:

Stained carpet and linoleum
Holes and dents in walls caused by accidents or carelessness
Drawings on walls or unapproved painting by tenant

Although normal wear and tear vs. damage can be hard to define, there are a few things you can do to protect yourself from any confusion.

As with most things, communication is the key: if both you and your tenants are clear about the condition of the unit at move-in, the importance of promptly reporting needed repairs, and expectations at move-out, the tenancy and the end of the tenancy will be smoother.

Insist on a walk-through with new tenants. At the walk-through the tenants will have an opportunity to note in writing existing damage and wear and tear in the rental. Also, take dated photographs to keep on file. This way both the landlord and tenant are protected. The tenant can’t be charged for damage that was not documented in the walk through, and the landlord has picture proof of the unit’s condition at move in.

Have your lease outline the requirements for taking care of the property and promptly calling for any repairs needed. Make the tenants aware if they do not not notify the landlord in a timely manner of any issues, they can be charged for any damage that occurred from their negligence. Make your contact information readily available to the tenants, such as a business card, fridge magnet, or website.

Before move-out refer tenants to the “Wear and Tear versus Damages” document and cleaning checklist. This way the tenant knows what is expected of them in preparation for move out and cleaning of the unit.

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Real Estate Investors Eager to Turn the Page, According to New Outlook Report

Frustrated by continued uncertainty, a sluggish recovery, and a challenging investment environment, investors generally appear eager to put the past behind them and adjust to the new normal.

That, according to Expectations & Market Realities in Real Estate 2013—Turn the Page, a new annual report published jointly by Real Estate Research Corporation (RERC), Deloitte, and the National Association of REALTORS® (NAR).

According to the report, investors appear to realize that this environment will likely be with us for the foreseeable future, and that adjustments may need to be made to maximize commercial real estate investment performance and yield in our continuing slow-growth economy.

The three organizations have drawn on their respective capabilities to examine the economy, capital markets, and commercial real estate property markets; to thoroughly assess and analyze existing research; and to offer an outlook for commercial real estate for 2013 and beyond. Findings indicate that the economy is expected to improve only modestly in 2013, with the budget deficit, tax increases, and cuts in government spending expected to continue the economic uncertainty. In general, capital remains available for commercial property investments, but the discipline for capital has been inching upward and is becoming more selective. The report also carefully analyzes and offers an assessment of the office, industrial, apartment, retail, and hotel property sectors, as well as for commercial real estate as an asset class, for 2013.

“It is time to stop waiting for the economy and the investment environment to get better. This is it—this is the new normal—and we need to turn the page on the past and make the adjustments needed to be successful for the balance of this decade,” stated Kenneth Riggs, Jr., chairman and president of RERC. “Investors are facing the challenges ahead, and commercial real estate continues to be an attractive investment for a variety of reasons in this economic climate.”

“Moderate positive and stabilizing trends in commercial real estate markets are expected to add value to institutional portfolios as we turn the page to the next chapter of the real estate cycle,” noted Matthew Kimmel, principal and U.S. real estate sector leader for Deloitte Financial Advisory Services LLP. “Overall the office, industrial, retail, apartment and hotel property sectors are expected to experience various elements of slow fundamental increase and growth.”

The group expects the commercial real estate recovery to continue throughout 2013. “A pent-up demand for commercial property space has been developing with the nearly 5 million net new job creations in the past three years,” noted Lawrence Yun, Ph.D., NAR chief economist. “That demand steadily reaching the market, combined with little new construction, will likely help lower vacancy rates and push up rents.”