One of the major points in the panel discussions of the WMFHA 2010 Annual Economic Forecast (see my earlier blog entry on that topic) was that the economic recovery is going to be challenged by slow job growth; with a fairly diverse employment base, Seattle has the opportunity to compete to attract the pool of existing employers and jobs that exist today, and will grow as part of the recovery. Mike Scott of Dupree-Scott Apartment Advisors on the panel made the valid point that Seattle needs to get serious about leveraging this opportunity. And a few weeks ago, we got some help from two sources- in Forbes magazine's annual "best states for business" rankings, Washington moved from third place to second, and Washington, D.C.-based Tax Foundation ranked Washington No. 9 on its 2010 State Business Tax Climate Index.
Particularly with the recent Boeing 787 storyline, Washington's visibility on these lists may be a big help in competing for the first wave of post-recession job creation, and Richard Davis offers a good analysis of this in a recent Puget Sound Business Journal article.
Forbes' rankings carries solid credibility and always generates media buzz that can help drive business development efforts. Mr Davis offers a reasonable critique that while Northwest area residents usually consider Seattle to have a very high quality of life for intangibles such as natural surroundings and recreational opportunities, index lists such as these can't easily quantify those, while labor costs, heavy business regulation and a higher than average cost of living are factored in (although often overlooked as a deterrent to new businesses by local organizations).
So, whether you agree with their methods or outcomes, the lists generate interest, and ideally lead investors and entrepreneurs to take a closer look at Washington
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About RD House Real Estate and Property Management: We are a leader in relocation, in-town condo and executive Seattle rental properties, working with Microsoft, Amazon, Fred Hutchison Center, the Bill & Melinda Gates Foundation, Alaska Airlines, Nordstrom and others. Many of our listings have video blogs/tours, and can be found on our website at www.rd-house.com.
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RD House Real Estate and Property Management
Leaders in Property Management
159 Denny Way #110
Seattle, WA 98109
(206) 728-6063
In the last installments of this Rental Guide series, we talked about making the list of what you must have (vs. what you'd merely like to have- or can't live with) as the beginning of your rental home search, and finding a rental home based on your budget. One part of this to consider carefully is renters insurance- it's relatively inexpensive (it is not uncommon to see policies with premiums that are less than $20 a month) and can be excellent protection. As a tenant, renter's insurance assures you that you're protected against the damage or loss of personal property when you rent an apartment or house. Your landlord may have insurance that protects the physical building in which you reside, but this insurance will not cover your personal property. In fact, it's not at all uncommon for landlords to require the purchase of renters insurance prior to renting or leasing. This is prudent for both the renter and the landlord, protecting both from the possibility of lawsuit by alleviating each other's respective liability.
In determining whether or not you need renters insurance, the questions you need to ask yourself are:
How much would it cost to replace my belongings if they were damaged or stolen?
Can I afford to replace them?
Depending on your answers, renters insurance may be an easy choice, providing you with the protection you need. Either way, it's reassuring to have the peace of mind that comes from being protected.
Things to also consider before purchasing rental insurance:
How Much Coverage do I need? - The amount of renters insurance you choose will have the biggest impact on price of coverage. It is important to insure against all of your property. Remember, you're not just insuring against theft. In the case of a fire, for example, you could lose everything.
Deductible - The amount of the deductible premium that you're willing to pay will have a major impact on the premium costs. The higher the deductible, the lower the cost of home renters insurance.
Actual Cash Value (ACV) - Type of coverage that will pay for what the item was actually worth at the time of loss. This basic coverage payout is determined by the cost to replace, minus depreciation.
Replacement Cost - Type of coverage that will provide for the actual replacement value of the item with no deduction for depreciation. Although replacement cost coverage comes at an additional premium, it's usually worth the relatively small increase in cost.
Here are a few ways to save on renters insurance. Many insurers will offer discounts, if you have some of the following:
If you own a dog, however, it may add to your premium. Due to liability issues, some insurers won't even offer insurance if certain dog breeds are owned (but landlords also won't generally permit them on the property either).
Other items to consider are:
Flood and Earthquake protection is not commonly included on rental insurance policies. If you live in an area where these natural disasters are more common, you may want to purchase an additional rider.
Liability coverage is most often a standard feature with renters insurance. This can prove invaluable in case of an accident, such as a slip or fall by a guest. It provides protection against legal claims that you may be obligated to pay, such as injury, sickness and death. It is, however, limited to the amount of liability coverage provided by your policy.
In order to avoid any disputes with your insurance company, it's recommended that you take an inventory of your personal items before purchasing rental insurance. This can be done by video taping or photographing each room of your house. It is important to keep all receipts for any major purchases, as well. The above should be kept offsite, in a fireproof safe or safety deposit box.
Fortunately, renters insurance is relatively inexpensive. If you're looking for cheap renters insurance, it is not uncommon to see policies with premiums that are less than $20 a month. And, thanks to the internet, you can get a competitive online renters insurance quote with relative ease. Always make sure to go with a reputable renters insurance company when choosing a policy to eliminate any surprises should the unfortunate need arise.
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About RD House Real Estate and Property Management: We are a leader in relocation, in-town condo and executive Seattle rental properties, working with Microsoft, Amazon, Fred Hutchison Center, the Bill & Melinda Gates Foundation, Alaska Airlines, Nordstrom and others. Many of our listings have video blogs/tours, and can be found on our website at www.rd-house.com.
If you are a Corporate relocation specialist and in need of help placing clients or employees, please contact our relocation team at (206) 728-6063.
RD House Real Estate and Property Management
Leaders in Property Management
159 Denny Way #110
Seattle, WA 98109
(206) 728-6063
I just returned from the Washington Apartment Outlook panel, "Perspectives and Projections for 2010" hosted by the Washington Multifamily Housing Association, and can share some interesting items discussed there. Speakers were Rob McKenna, Washington State Attorney General; Matthew Gardner, of Gardner Economics in Seattle, and Mike Scott, of Dupree Scott Apartment Advisors in Seattle.
How we got here
Rob McKenna gave a detailed yet compelling background on the factors contributing to the housing market crash, going back to 2005. Among them are the .com stock bubble, which sent trillions of dollars out of the stock market and into the real estate market. Combined with sustained low interest rates and well intentioned federal policies increase homeownership, both broadly and among lower and middle income consumers, it became a perfect storm creating high demand to drive up exponentially. We all know the results over the past 2 years as this crashed, people lost houses, consumer spending dried up, and businesses began failing or cutting back dramatically.
But the question on everyone's mind wasn't the history review, it was "when will the recovery be here?"
The Recovery- it's on its way
All three panel speakers concurred on this, each from their own perspective. Mckenna noted that the recovery will require consumer "de-leveraging", that is, spending less on credit and paying existing credit down, and Gardner in fact showed data that consumer use of revolving credit has been decreasing since June of 2008. He also pointed out that Federal stimulus spending will continue to increase through 2010, which will help, although at some point inflation becomes a concern, as well as what will drive spending and demand after the stimulus runs out. Presumably it will be from consumers as business spending and jobs pick back up, and Gardner expects the Seattle job market to begin recovery in the 4th quarter of this year (not significantly until 2010 however), with technology, life sciences and philanthropy being the strongest areas. Mike Scott made what I thought was an excellent point, that this region needs to be aggressive about landing- and keeping- new jobs and businesses. We seem to take our relative strength as a region for granted- but could greatly increase our fortunes in this recovery with more focused attention on driving economic growth. Gardner also showed an interesting graph of job creation and loss over the full decade- which showed that in total, the US is at the same level as we were in 2000- we essentially haven't created any news jobs in 10 years. So, Seattle needs to get serious about competing for the pool of employers and jobs out there.
McKenna wrapped up this topic with a discussion around policy work & market policing that is underway to support the recovery and resolve the structural issues that contributed to it (very much in his role as an Attorney General of course), which include pushing for faster turnaround on loan modifications, monitoring the reverse mortgages market to eliminate harmful practices, and aggressively fighting foreclosure rescue scams.
What about the Seattle Rental Market
This was the second most pressing question on everyone's mind. Current vacancy rates in the region sits at 6% in-city, 9% gross (which includes projects recently finished and still in lease-up, which will compete with properties already on the market in the near term). This is up from 4-4.5% 2 years ago. Add to this 2,000 new units (these figures are all 5+unit developments, so don't include smaller properties and single family) still scheduled to come on the market through 2009, 3,700 in 2010 and 2,000 in 2012 and 2013 (although these are planned, whether they get financed and built is a huge open question). So, that's 9,700 net new units onto the local market over the next 4 years. So, this will continue to be a softening impact on rents.
Before we panic, however, demographic forecasts seem pretty bright. Historically, the US has maintained a fairly stable 65/35 own/rent ratio (65% of households rent, which 65% own). Since about 2003, this has grown to 69/31, however, with the adjustment in the housing market, this is beginning to return to normal, so there are 4% of households returning to the rental market over the next few years. Also, the baby boom and echo boom demographics remain the fastest growing segments of the population, both of which are primarily rental households. Mike Scott showed data that in Seattle, the 20-34 year old demographic in Seattle will grow by 14,000 per year through 2014, including inflow population to the region. So, that's 70,000 net new potential renters who will need those 9,700+ new units. So, even with new developments and properties to fill the gap, I got the strong sense that we will see higher demand for rental units as these two market forces continue to adjust (and if they do so as forecast).
Key takeaways
The vibe among the panel speakers and the audience was optimistic, although not celebratory. I think that's because it seems to be getting better, but with no certain timeframe or milestones within the next couple years. This doesn't seem to be a recovery with a silver bullet- there are many fronts that are being tackled, and as a result, it will be slower that we are used to. Consensus was that 2010 will continue to see relief over 2009, but how much and how soon seemed to be open issues. Our guidance at RD House remains to be a vigilant knowledge of the market and comparable properties, aggressively solicit renewals, focus on effective marketing of units, and exploit every opportunity to help owners decrease operating costs.
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About RD House Real Estate and Property Management: We are a leader in relocation, in-town condo and executive Seattle rental properties, working with Microsoft, Amazon, Fred Hutchison Center, the Bill & Melinda Gates Foundation, Alaska Airlines, Nordstrom and others. Many of our listings have video blogs/tours, and can be found on our website at www.rd-house.com.
If you are a Corporate relocation specialist and in need of help placing clients or employees, please contact our relocation team at (206) 728-6063.
RD House Real Estate and Property Management
Leaders in Property Management
159 Denny Way #110
Seattle, WA 98109
(206) 728-6063
Years ago when I bought my first house, the yard was a bit of a mess and I spent many weekends trimming, digging, cutting, removing and planting all sorts of things to try and get into a reasonable shape. There was one particular pine tree along a side fence that at first I didn't pay much attention to- I didn't really know what to do with it, so I just left it and never thought much about it. One day when showing off some of my hard work to a neighbor, she saw that tree and told me excitedly that it was a Christmas tree that children of the former owner had planted years ago- apparently a live tree the family had enjoyed one holiday and then transferred to the yard. After learning this, the tree became somewhat of a cherished landmark in the yard- I left it right where it was, and whenever I looked at it I wondered what that Christmas was like for them, and what treasures the children had opened underneath the tree on Christmas morning. I hope the tree is still there today, still bringing history forward into that yard.
That bit of history really got me thinking about that house in a new way. When I moved in it was a 1927 fixer upper that I delighted in updating, anxious to put a new face on the worn surfaces. But the Christmas tree in the yard made me realize that families over many years had lived important parts of their lives there, and had carried away special memories that were intertwined with important events they lived out right there in the same rooms I now lived in. It gave me a new respect for the history of the house, which I never forgot, and which I felt somehow connected to as I lived important parts of my life there.
Something similar happened the other day in our office at RD House. We'd recently put a beautiful old updated craftsman home on the market for rent, when we got the following email from someone who had driven past the house:
This house on 16th Ave NE was my Grandmother's house from about 1962 until the late 1980's. My father lived there also after he and my mother divorced in 1970. His room was the one in the basement. What a flashback. I was home in Seattle visiting when I drove by the house to reminisce and saw your sign. Whoever did the addition and remodel did an excellent job and I'm happy to see the original parts of the house looking almost exactly the same. Thanks for a walk down memory lane. I can still remember the cookie jar she kept on the counter.
What a treat to have received this from someone with a living memory of the home! It's a great reminder to us that we're really in the people business- the homes we advertise, show, and manage will hold memories for years to come from the people who live in them. They aren't just structures- they are where our tenants have Thanksgivings, graduations, anniversaries, new beginnings, holidays, and milestone celebrations with their families. It's nice to keep this perspective as we go through the day to day parts of our jobs as property managers.
Take a minute to share this with us- the original listing video we did for that property is here. See if you can smell fresh baked cookies as you watch it:
http://www.youtube.com/watch?v=D9yap7Purxg
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About RD House Real Estate and Property Management: We are a leader in relocation, in-town condo and executive Seattle rental properties, working with Microsoft, Amazon, Fred Hutchison Center, the Bill & Melinda Gates Foundation, Alaska Airlines, Nordstrom and others. Many of our listings have video blogs/tours, and can be found on our website at www.rd-house.com.
If you are a Corporate relocation specialist and in need of help placing clients or employees, please contact our relocation team at (206) 728-6063.
RD House Real Estate and Property Management
Leaders in Property Management
159 Denny Way #110
Seattle, WA 98109
(206) 728-6063
The theme of momentum has come up in my world lately. At first I didn't realize it was a theme- I was just getting from one day to the next, managing one situation or another as best I could. But when I had a chance to reflect about the course our summer season had taken - both personally and at RD House, I began seeing isolated events link together into this theme of momentum, and I think it allows a good perspective on things.
We all know how a bad day unravels itself- it's as if inexplicably anything you touch turns into a firedrill. Like spilling your coffee on your best shirt in the morning, then leaving your mobile phone at home, being late to your first appointment- and on the day goes, almost as if it's a runaway train and there's no use trying to turn it around. Momentum. Good days happen the same way don't they? Maybe you read an article in the morning paper that makes you feel positive or confident, when you get to your favorite coffee shop, your "buy 10 get the next one free" card is full and you don't have to pay for your morning joe, your favorite parking spot is waiting for you, and on it goes..momentum.
It's interesting isn't it? Here's the epiphany I had though. I think we can actually direct- or change- our momentum if we really focus on it. By making a conscious decision to stop, assess where we are, where we're headed, and how we want to direct our efforts- you can literally change your life's momentum, whether for an hour, a day, or for something bigger.
Case in point. This year has obviously been a rollercoaster in the property management, and the real estate market as a whole. Our renewals, move-out's and new business weren't on any kind of predictable pattern, so we had to be extra flexible and nimble. In June, a number of factors came together that started increasing the vacant inventory of units we had for rent. With the economy not turning around as soon as some had hoped, no one seemed to be moving, no matter how we tried to change up our advertising, the phones weren't ringing with prospective tenants like we thought they would be. It all seemed gloomy and overwhelming. One Friday morning our broker, Ricky D, called us into a meeting, and just gave us an old fashioned rally speech. Yes things weren't happening as we'd planned, he said, but we're going to make them happen. Do more open houses, get more creative with your ads, talk to more people, find more sources of information- go, go, go. If you ever watch the Bravo TV show "Project Runway", it was like one of those moments when Tim Gunn is out of things to suggest and just advises the contestants in exasperation to "just...make it work, people!". In other words, stop focusing on what's not working, and focus on making it work. Momentum.
And guess what? That very day was when things started to pick up. We did a renewed focus on open houses that weekend, changed up all our ads to throw conventionalism out and creativity on (one 19th floor loft was billed as "Batmans Gotham City Hideaway"), the phones started to ring, and we never looked back. Since the beginning of July, we've rented 23 units, and are back to our average days on market of 22 days for unit rentals. Momentum.
Yes, it can seem impossible to change the direction of things sometimes, and I'm saying there aren't things entirely out of our control. But we can decide how we react to them, and where to focus our efforts in relation to them. It's a lot like Oprah's definition of Luck, which is "preparation combined with opportunity", which I think is so well put. If you don't prepare for things to turn around, you won't change your momentum as easily when the opportunity to do so arises.
You will always have bad days- and good days, for sure. But when things start to spiral downhill, try stopping, reflecting and be aware of what's happening. Change your momentum. If all else fails, you can laugh about the fact that nothing is going to go right today, and focus on how you're going to start out again tomorrow.
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About RD House Real Estate and Property Management: We are a leader in relocation, in-town condo and executive Seattle rental properties, working with Microsoft, Amazon, Fred Hutchison Center, the Bill & Melinda Gates Foundation, Alaska Airlines, Nordstrom and others. Many of our listings have video blogs/tours, and can be found on our website at www.rd-house.com.
If you are a Corporate relocation specialist and in need of help placing clients or employees, please contact our relocation team at (206) 728-6063.
RD House Real Estate and Property Management
Leaders in Property Management
159 Denny Way #110
Seattle, WA 98109
(206) 728-6063
Redefining Property management with Pride of service ownership, Getting the basics right all the time Delivering Exceptional Management SERVICE for OWNER’S & Tenants WE LIKE WHAT WE DO & It Show
Ricky D Sadler, Designated Broker and Senior Property Manager
Ricky brings extensive experience in local property management. His career includes experience in every
aspect of property management and operations with several property management companies before
opening RD House. He has deep experience in all aspects of the business and is highly respected client
owners and tenants alike, and excels at delivering remarkable turnarounds with properties requiring deferred
maintenance, improved unit and building appeal, vacancy challenges and rental income parity. His strengths
enable RD House to offer crucial expertise to property owners, while enabling us to design and operate a
company that employs the best business practices available to achieve more competitive results.
In Ricky's own words, "Knowing each property, personally- driving by often, walking the neighborhood,
being aware of what's going on, is the single most important way to care for an owners property as if it
were our own"
"seek qualified tenants, get to know them and what their needs are, take care of their concerns
effectively, and treat them with respect, and they will occupy the property as if were their own"
Robert Armstrong, Business Manager
Robert has spent years in the software technology industry, and is able to help us reach forward to build
innovative solutions to business, owner and tenant needs. Our property management system integrated with
Microsoft Office, and our email, web presence and internal business systems are based on Office and OfficeLive
software. He also has an MBA and key business experience that enable us run the management and operations
of the business effectively.
we love what we do and it shows!
Our operational management is more efficient, more responsive, more cost effective and provides better results, because we build technology and innovation into our operations from the ground up, including automatic debit for rent payments, automatic deposit for owner funds disbursement, online bill payment for vendors, and other computerized systems to provide faster, better service to every part of the business.
Single Family and 2-4 Unit Buildings
Standard Management Package
This includes the property leasing services, plus
Optional services
Platinum Management Package
This includes the property leasing services and Standard Management Package, plus
5-16 Unit Buildings
Property Management
Unit Leasing
Business Planning and Market tracking
17 or more unit buildings
We can create customized plans to meet the many specific needs of larger buildings, to include
Sorry We Have High profile Owners ! per request of Families
The fundamental management of a property defines how well it performs financially, how it competes for tenants in the local rental market, and how satisfied the owner is with their property investment. Nothing else we provide owners makes sense unless we execute the basics extremely well"
Thank you for your Business!
Ricky D Sadler
RD House Property Management INC.
206-728-6063
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