By leaps and bounds rental inventories are up in every financial category. I am seeing exponential rental listing growth as property owners are unable to sell their investments and countless investors are snatching up REO properties. Fortunately, with consistent marketing we are able to find qualified applicants to fill these vacancies. Egos and preconceived notions must be checked immediately in this market--price is what distinguishes your property. November through February are always the slowest four months of the year. In November/December potential tenants are occupied with family and friends--shopping and traveling for the holidays. In January/February they are paying off holiday debts and discouraged by the poor winter weather. Once March and Spring arrive the tax refund checks come in, weather improves (savvy property managers have leases open up).....and masses of potential tenants begin to look for property to rent. The annual cycle is predictable; however, in this current market the competition is greater than ever. With the real estate market tanking there is a growing trend of investors feeding off the gluttony of foreclosed homes. New investors have a much more advantageous cash flow nut to factor than the traditional home owner/investor who owes some 50% more in principal that their new competitors. This competition increases inventory and significantly drives down price. Many homeowners are still unrealistic: they want highly qualified tenants who are willing to pay high end rents. In this market you must either relax your standards or drop the rent. It is my experience that rent reduction is always a better strategy than reducing your rental standards. Receiving 10% less monthly in rent is much more tolerable than collecting top of the market rent from a ticking time bomb of a borderline qualified tenant.
If you or anyone you kow is interested in using our company's services, polease contact me.
James Safonov
Much like the news from my most recent blog--the communities along the interstate 80 corridor are experiencing increased vacancy rates. I am receiving mutliple calls daily from investors with homes ready to rent or homes in escrow they need to rent. These individuals have a significant advantage over those who purchased investment property within the past 4 to 6 years. Not surprisingly even the new investors want the highest rent possible for their rentals. With this economy and this time of year we are asking our clients to consider renting to individuals who have lost their homes to a foreclosure. By allowing our professional processors to perform their due diligence on each application wea re able to determine if the former home owner is worth renting to. With qualified income many of these applicants are looking to rent a like property for a rent that is half the mortgage they defaulted on.
James Safonov
As this slow economy continues to dip the prospective tenants of Natomas are finding rents drop and rental inventories increase. Homeowners who are unable to sell are now forced to compete with the growing number of investors encroaching on the rental market. Homepointe is seeing a significant rise in new account activity from both the reluctant homeowner and the opportunistic investor. The current challenge is exacerbated by the time of year: November through February are notoriously the slowest times of the year to rent out investment property. Prospective tenants use the winter months to shop for holiday gifts and visit family--they simply do not have the time or money to move. After the holiday season they have the burden of debt prohibiting them from moving as well. Once the weather improves, the tax refunds get mailed out and the debt is addressed the mass movement begins.
Homepointe knows this trend and intentionally atempts to structure our leases to expire in the spring and summer months. If the tenant decides to vacate we can ideally plan for it to happen when the homeowner is in an advantageous position--during the summer when the majority of tenants move.
James Safonov
Once a landlord or property manager discovers the squatter they may be fortunate enough to scare them out by their presence alone. Often it is kids or individuals who do not want to be subjected to law enforcement. If they do not leave your first step should be to call 911 and report a breakin in progress. Be prepared to wait as this type of call does not generate a prompt response unless someone is in harms way. Once law enforcement arives they typically escort the squatter out--they may or may not be arrested.
In the case you have a savvy squatter: unfortunately an eviction will be required. Some educated squatters are able to forge rental agreements and change locks so they can show the responding law enforcement their "right" to occupy the home. In this case the officer will tell you it is a civil issue and you must employ the courts to evict them.
Some groups posing as "civil rights" advocates actually detail in handouts how a squatter can "legally" occupy a rental for months until all appeals are exhausted.
My original article was intended to educate managers and rental property owners of some simple steps you can take to help prevent squatters from taking advantage of them.
James Safonov
jsafonov@homepointe.com
www.homepointe.com
In the wake of the Natomas Park Master Association's landmark decision to exclude all tenants from accessing the Club House common areas, rival Natomas communities are benefiting. Communities with immediate proximity to Natomas Park such as Regency Park are now seeing their rents increase with like property. The luxury of a free pool, gym and more no longer distinguishes Natomas Park.
James Safonov
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Property Management Rentals and Maintenance in Sacramento, Yolo, Placer, and El Dorado Counties from offices located in Sacramento, Roseville, and Orangevale, CA We manage residential and commercial.
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