Commercial Eviction Restrictions Expire
The biggest news was that the restriction protecting Commercial tenants from eviction will expire on January 31, 2022. This means that rent must be paid as usual on February 1, 2022. The moratorium does still require certain procedures for providing notices to commercial tenants. It also allows tenants who owe rent from March 2020 through January 2022 six months to a year to repay the rent (depending on the number of employees the tenant employs and whether the tenant complied with notice requirements). Those tenancies that had expired and are on a month-to-month basis, may now be terminated with a 30-day notice to quit.

Residential No-Fault Evictions
Protections for No-Fault evictions on residential units (evictions where the cause of termination is due to “no fault” of the tenant – i.e., removal from the rental market, selling the property vacant, substantial remodel/demolition, etc…) are set to expire at the end of the year, December 31, 2022.

Owner Move-In
Currently, the moratorium does allow for a landlord to terminate a tenancy for an owner move-in pursuant to the rules adopted by the County’s Rent Stabilization Ordinance, but with two added restrictions: 1) the property must have been purchased prior to June 30, 2021, and 2) the tenants could not have suffered any financial hardship due to CoVID-19. These two added restrictions will expire on May 31, 2022.

Effective June 1, 2022, and running through December 31, 2022, an owner may elect to terminate a month-to-month tenancy to move in provided that:

1) The owner occupies the premises for 36 consecutive months
2) If the Tenant is any one of the following, then the owner (or person moving in) must match these criteria “like for like”:
a. Tenant is elderly (over the age of 62)
b. Tenant is low income
c. Tenant is disabled
d. Tenant is terminally ill
3) Landlord provides relocation assistance pursuant to the County’s RSO (ranges from $7,654 to $21,411 depending on the makeup of tenants and bedroom count)

The owner move-in restrictions listed above will expire along with the other No-Fault restrictions on December 31, 2022.

Residential Non-Payment of Rent Protections
Until March 31, 2022, the protections for tenants regarding non-payment of rent are governed by the State’s moratorium (AB 832). Some municipalities in Los Angeles contend that their own moratoria preempt the State’s, however, the County cedes this protection to the State until March 31, 2022, when it is set to expire. (LA CITY has different rules)

Upon expiration of the State’s moratorium, effective April 1, 2022, and going through December 31, 2022, no tenant shall be evicted for non-payment of rent provided that the tenant has notified the landlord of a COVID related hardship no later than 7 days after the rent is due. This will then allow the tenant up to one year to repay the rent after the protection expires. However, starting June 1, 2022, tenants who are making more than 80% of the Area Median Income (AMI) will not be eligible for these protections.

Residential Nuisance
Protections from eviction for certain violations of a lease agreement, namely unauthorized occupants or pets, or from certain nuisances (where such violations or nuisances are related to the CoVID-19 emergency) shall expire at the end of the year, December 31, 2022.

Denial of Entry
Effective June 1, 2022, tenants shall no longer be protected from eviction if they deny entry to their landlords (unless such entry constitutes harassment).

Rent Freeze
The moratorium on rent increases shall remain in effect throughout the county through December 31, 2022. This only applies to those properties which lie within the unincorporated areas of LA County subject to the existing RSO.

However, the city government offices we spoke with have confirmed they are continuing to follow the original LA County Moratorium (2020) with respect to the increasing of tenant rents.  While incorporated cities certainly have the option to invoke rent increases, the ones we spoke with and listed below have reconfirmed their intent to follow the moratorium restrictions which specifically apply to unincorporated cities and apply them to their own incorporated city. 

CITIES CONTACTED

1. Baldwin Park
2. Covina
3. El Monte
4. Gardena
5. Long Beach
6. Monrovia
7. Pasadena
8. Pomona
9. San Dimas

 
See the below chart from the County of Los Angeles for additional details:

The post Los Angeles County Moratorium Current Update (February 2022) appeared first on Reynolds Realty Advisors.

However, it is important that you request feedback in the right way! You want the process to be convenient and hassle-free for the tenant and provide you with quality and actionable information.

Ready to get started? Here’s what you need to know.

How to set up the survey:

A digital survey is going to be the easiest and most appealing option for most tenants. To set up the survey itself you can use a platform like SurveyMonkey or Google Forms. Both will allow you to choose a question type (multiple choice, short answer, dropdowns or checkbox) and will allow you to create a link that you can send out to your tenants. You may also want to set up the survey with anonymous responses so that your tenants are more comfortable giving honest feedback.

When choosing a platform, it is helpful to select one that shows you individual responses as well as summary data in graphic format. (Both SurveyMonkey and Google Forms offer this.) This is very important because you will primarily be looking at trends and aggregate data but may also be helpful to see an individual response or survey to see how one person responded to all of the questions.

What to ask in the survey: 

You have to ask the right questions to get the right information! So make sure that any questions you ask provide you with data that either helps you understand your tenants better or tells you about pressing issues you want to know more about.

Don’t overload your tenants with too many questions or ask them to write an essay. Mix up the question formats and include a mix of yes/no, short answer and scale/rating questions.

Below are some ideas to help you choose topics and write your questions. But remember– these ideas are simply for inspiration. Again, you should only ask questions that provide a useful answer for you and your business. 

1. Ask them to rate areas or aspects of the property on a scale (for example a one-to-ten scale or a “strongly disagree” to “strongly agree” scale.)

A few aspects of the property you may want to ask about include:

• Interior fixtures such as flooring, counters, lighting, etc.
• Exterior walls and roofing
• Safety and security features
• Outdoor spaces such as dog runs, pool, or lawns
• Availability of parking and laundry facilities 

2. Ask about their satisfaction with maintenance requests.

For this question, a yes/no and a short answer to elaborate is helpful.

3. Ask for feedback on your staff and customer service

This is another question that works well as a series of scale or rating questions. Include prompts about availability, friendliness, helpfulness, communication, etc.

You’ll also want to include a short answer space for additional feedback. If you want more responses here, ask a direct question such as “How can our management be improved?” or “What would you like to see more of from our staff?”

At the end of the survey, you can link to your review sites like Yelp and Google and ask them to leave a public review!

How to promote the survey:

The primary way of promoting your survey is likely going to be through email. If your online tenant portal allows announcements or messages, you can also include a note about the survey there. Similarly, if you regularly offer text reminders to your tenants, you can send out a link to the survey via a text blast so tenants can easily fill it out on their phones. (But be sure to space out these messages! You don’t want to bombard your tenants.) Finally, it is also a good idea to have a QR code in the office so when tenants come in, you can remind them to take the survey and they can simply scan the QR code with their phone and complete the survey right away. If you are not familiar with QR codes, check out this step-by-step guide.

To increase the timeliness and the number of responses, make sure you set a deadline for completing the survey– otherwise most people will decide to “do it later” and forget. Also consider offering an incentive or giveaway. This can be something small such as a gift card or movie tickets or something significant like a tablet or smart watch.

How to use the survey results:

You’ve done all of this work, so it is important that you get the most from the results. Once your responses come in, go through the aggregate data and see what your tenants identified as most successful and least successful. Be sure you keep an open mind and take the responses seriously. If you find negative feedback, don’t get discouraged or overwhelmed. Remember that this is an opportunity to improve your tenants’ experience, your property value and retention.

Then, make sure you take action. It is important that your tenants know this is not an empty gesture. If you find someone reported a serious issue (and they provided their name) be sure you follow up with them! If there was an overwhelming request for something, see if you can make it happen or what changes you could make to work towards that request.

And finally, remember you don’t have to do this alone! Our team at Reynolds Realty Advisors is here to help you with a smooth application and leasing process, compliance management, maintenance and more. Click here to learn about our full-service management.

The post The Complete Guide to Tenant Satisfaction Surveys for Multi-Family Properties appeared first on Reynolds Realty Advisors.

Revenue Generating Property Management Strategies

One of the first ways property owners often think of to increase revenue is to increase the rent. And this might be a good strategy! However it is not as simple as deciding how much money you want to make and dividing by the number of units. Instead, you should start by researching the market rent prices and looking at similar (age, amenities, size, etc.) complexes and their rent and vacancies. (Pro tip: this is where a property management company comes in handy! It is our job to know the market trends and identify income generating opportunities for you.)

You want to ensure that the rent increases at minimum, cover your costs and, ideally, create a higher profit margin. But you also want to be wary of increasing rent too much or too quickly and creating a high vacancy for your property. To help avoid this, whenever possible, create some added value when increasing your rent prices.

One of the key strategies for marketing your property at your ideal price point is to determine a property theme and target customer. Are you marketing your property for low-income singles? Professional commuters? Young families? Once you know who you want to market the property to, you can refine your services and offerings for that group. Identifying and understanding your ideal client will help you generate income in two ways.

The first is that your property will become better known in the community you are marketing it to— meaning you will get increased interest and referrals. And if your property is well suited for your target market, you can also decrease turnover and vacancies.

The second way that having an ideal client helps generate income is by being able to offer value added services, where you offer amenities and/or services for an additional fee. And the more tailored your market, the easier it will be to sell! For example, if your complex is primarily multi-room apartments, marketed towards families, additional storage units, housekeeping services, or small gardens might be very good offerings. Or if your property is mostly studio apartments, with young singles, laundry services or live fitness classes could generate additional income.

(This tactic is also a cost saving technique, as one of the biggest mistakes investors make is to over-improve a property without focusing on the ability of the improvement to increase revenue. AKA if you upgrade your units with marble countertops but your ideal tenant isn’t willing to pay a higher rent or stay longer at the property for them, you are wasting your money!)

Finally, you may have the option of adding additional units to your existing property! Under new laws passed in 2020, you can add 2 new ADU units to any multi-family property AND up to 25% more units— all without additional parking, given your property is located within a half a mile of a local bus stop.

For example with a… 

• Duplex: You can add up to 2 units + 25% (convert the garage to a unit), giving you a 5-unit complex
• 4-plex: You can add up to add 2 units + 25% (1 unit), becoming a 7-unit complex
• 20 unit: You are able to add up to add 2 units +25% (5 units), creating a 27-unit complex
• 100 unit: You can add up to add 2 units + 25% (25 units), now a 127-unit complex

As you can see, the larger the complex, the more exponential your growth opportunities. 

Cost Saving Property Management Strategies

The first step in reducing costs is to look at your costs! Go back over the past three years of expense statements and see where the money is going. Often utilities are one of the largest expenses— especially if there have been cost increases that were not passed onto the renter. (AKA the silent profit killer!)

If utilities are currently included in rent, consider making some upgrades to the units, such as installing low-flow shower heads and energy effect light bulbs. You can also switch to Renters Utility Billing Service (RUBS.) This is where you, as the landlord, pay the utilities upfront and bill the tenant their portion. Billing amounts may be derived from sub-metering and/or by allocation. This is a way you can insure you break even or make money. It has been found that water usage is cut by up to 80% when the tenants pay for their usage.

Do keep in mind that some municipalities have laws regarding the methodology permitted for RUBS and could impact the total amount of your rent increases.

Also be sure to take a look at your maintenance costs and see if some preventative maintenance and regular inspections could help you keep costs down. Oftentimes small changes upfront can help you avoid much larger repair bills down the road.

Finally, you might even want to consider refinancing for a lower rate. Even a reduction of 1/2 of a percentage point can make a big impact on your bottom line. However, this is not always the best option for everyone. It will depend on your goals and finances. To see if it is an option for you, calculate the break even point— determine the costs of the refinance and divide that by the monthly savings and see how long it will take to recoup your costs.

In summary, increasing your rental property cash flow will not only help you sleep better at night but in many cases, these strategies also increase the value of the property itself! Giving you a future of good sleep. And should you ever have questions or want a professional on your side, the Reynolds Realty Advisors team would be honored to help you make your property as profitable as possible. Contact us for a free property assessment today.

The post Ways to Increase Cash Flow for Your Multi-Family Property appeared first on Reynolds Realty Advisors.

As everyone knows, the past year has been filled with plenty of ups and downs. But it’s been over a year since our first shut-down due to COVID-19 and, here at Reynolds Realty Advisors, we are excited to say that when it comes to the real estate market in Orange County, many trends have been steadily and substantially on the rise!

And the good news doesn’t stop with real estate. Before we dive into the specific markets here in the OC, it is important to take note of the general economy. Throughout Q1 2021, Orange County has been ramping up– tourism is on the rise, hotel occupancy is up, and retail sales continue to increase to numbers higher than 2019 and 2020.

Jobs are also coming back, as companies are beginning to hire and expand once again. At the end of March, 2021, unemployment numbers in Orange County were just above 6%, nearly 2% less than the national average. While, similar to life, things are not quite “normal,” everything is trending in the right direction and we are looking forward to an even better Q2.

Now, let’s turn our focus to the real estate market. In this article we will be focusing on four areas of real estate: the office market, the industrial market, the retail market, and the multifamily market.

Office Real Estate in Orange County

Not surprisingly, the office market has had a tough time over the past year. Q1 2021 was the fourth consecutive quarter of negative absorption, this combined with new supply coming to the market has resulted in office vacancies continuing to rise, reaching 12% at the end of this March. Contributing to both the vacancy rates and the higher supply, is the continued trend of many companies continuing to let go of office space, at least for the time being, as more people are working from home.

However, with more companies letting go of space, more subleasing has been occurring and subleasing offers some exciting opportunities. There are companies using the high volume of available space to expand their operations. For example, California Pizza Kitchen is moving from their current 33,000 sqft space in Playa Vista space into Costa Mesa to take up residence in a 37,000 sqft space.

On another positive note, Q1 2021 was the strongest quarter when it comes to leasing since 2019. We started the year off strong when Anduril signed a 450,000 sqft lease in February at The Press in Costa Mesa, which was the largest lease in Orange County since 2016.

With all of that said, annual office rents dropped for the 3rd quarter in a row. This is primarily due to newly built, Class A properties having to compete with the high number of properties on the market, as well as the Class A sublet spaces offering a lower rent price. Class C properties have seen some positive rent growth as they are able to offer a competitive, affordable price. And finally, it is worth noting that while rents did decrease, they are still higher than 2018 numbers.

As the state and country continue the re-opening process, these numbers will likely change and how companies decide to go back will have a significant change on the market. For example, if more companies choose a hybrid approach of in office and virtual employees, they may need smaller private spaces or utilize coworking spaces. But if companies opt to bring everyone back, many may choose to spread out and will need more space for their employees. These next few quarters will be key and should offer more insight.

Industrial Real Estate in Orange County

While the office market has been having a tough year, things are undoubtedly looking up in the industrial space. Q1 2021 was the strongest quarter for growth in the industrial market in Orange County since 2019.

As 2020 was a major year for e-commerce, it is natural that a significant number of companies have been expanding their industrial space over the past year. This trend of course includes Amazon, who has leased a significant amount of space in the area over the past year, including the former Mitsubishi and Boeing campuses. A number of biotech and biomed corp companies are also expanding their industrial footprints in the area.

Overall, we are seeing a lot of positive trends in this sector including increasing demand, low vacancies (just over 3% at the end of Q1, well below the historical and national average) and steady rent growth, even throughout the past year.

Over the past year, some of the strongest submarkets for rent growth have been La Plama, Buena Park, Orange, Anaheim, Garden Grove and other northern parts of the county. These areas in particular offer warehouse space, which has really driven rent growth in those markets.

Some areas with more modest growth include southern communities such as Irvine Spectrum, Laguna Hills and Newport Beach. In general these areas are more expensive but they also have a higher percentage of R&D and flex spaces.

We are excited to conclude the industrial report by saying that the majority of the county is back above its historical average for industrial rent growth.

Retail Real Estate in Orange County

Similar to the office space, retail vacancies continued to expand in Q1 2021, as retail spaces were still closing in the beginning of the year. Although, as we are reopening, these numbers may shift in the other direction as more previously closed businesses reopen and new businesses are created.

Unfortunately, there is still a decrease in the number and size of leases. This trend toward smaller leases is evident when looking at the 5 year average size of retail spaces in Orange county being 3,030 sqft, compared to the average for 2,100 sqft in Q1 2021. It is interesting, though perhaps predictable, to note the larger leases that have been taking place have been signed by more affordable retailers, such as Dollar Tree, Dollar General, and Grocery Outlet.

With more vacant space and reduction in leasing, there has also been a loss in rent asking price. The height of 2020 retail same-store asking rent had around 5% YOY increase and in Q1 2021, this number was less than 4%. This of course is not helped by the increase in competition with e-commerce, which has picked up even more in the past year than before.

On a positive note, there are some new and unique development possibilities for the retail space. We may begin to see more of a blending of retail and multifamily in the same complexes. For example, the Fountain Bowl in Fountain Valley, a 4.88 acre lot, was recently sold for $17.4 million. The new owners have said they are interested in developing this space into multifamily and mixed use space.

There are still a lot of questions and potential changes when it comes to office and retail space but if you have any questions, we encourage you to reach out to us at elizabeth@reynoldsrealtyadvisors.com.

Multifamily Real Estate in Orange County

Apartments got hit hard in the first half of 2020 but since then, we have seen a strong recovery throughout the county. Let’s take a look at demand numbers for example. Last year, demand for apartments dropped well below historical averages in March, April and May. But since then, demand has been very high. In fact, with the exception of March 2021, which was slightly lower than the historical numbers, every month since June 2020 has been above historical averages. The trends we are seeing from early 2021, point to a very strong spring and summer leasing season.

In the first quarter of the year, apartment vacancy has been very low, even lower than pre-pandemic numbers. Alongside the low vacancy, there has been a steady increase in rents both in Orange County and nationally. In Orange County specifically, the data seems to show a trend to 1+ bed units, rather than studios. While studios have returned to similar rent prices of pre-pandemic times, 1, 2 and 3 bedroom apartments have soared above January 2020 numbers. This seems to be a reflection of the stay at home orders and the popularity of working from home.

The other trend worthy of note is where people are moving in Orange County. In the second half of 2020 and beginning of 2021, there has been significant rent growth in South County, Newport Beach and other coastal submarkets, as well as Irvine, which was able to fill many of the new units built in the early part of the year.

Finally, last summer, concession rates increased as managers tried to make up for the low spring leasing season. During that summer, 1 in 4 properties were offering concessions. The end of the year also saw higher concessions but they were much lower value concessions than what was seen in the summer. As we moved into 2021, concession rates have returned to lower numbers of properties offering concessions and the trend of more modest concessions continues.

As for all of the markets, it is clear that Orange County, and the nation as a whole, is undergoing a lot of change. But there is a lot to be hopeful about, as well as some real and exciting growth in particular markets. If you are interested in getting involved in the Orange County commercial market, the Reynolds Realty Advisor team would be honored to answer your questions and assist you in finding and managing the right property. Please reach out to us at (866) 613-7772 or elizabeth@reynoldsrealtyadvisors.com. You can also connect with our team on Facebook or our founder, Elizabeth Reynolds on LinkedIn.

*Data and analysis from this article is courtesy of CoStar. This material should not be relied upon for predictions of future results but to provide you with background, information and education.

The post Market Update: Orange County appeared first on Reynolds Realty Advisors.

Communication is KEY

While here at RRA, we are fortunate to already have a work from home procedure and setup in place, many teams are going fully remote for the first time. Our best piece of advice for you on working as a remote team is to communicate. Schedule regular check in calls, keep a group task list, create a shared calendar, whatever you need to make sure that your team is all on the same page. And don’t shy away from some social communication as well. If your team is used to all working in the office together, schedule a lunchtime zoom call so everyone can eat their lunch and catch up or schedule some 1:1 coffee chats between supervisors and their departments.

Use Your Time Wisely

In an uncertain world, we must take comfort and find strength in things that we can control. More than likely your schedule has drastically changed. If you find that you have a lighter load than usual, put that time to use! Think over the past few months and all the items you wanted to do “if only you had the time.” Well, whether you want it or not, the time is here, so you might as well take advantage of it. Even if you don’t start any “big” projects, spend the time getting organized, clearing out old files, or updating your website. You might even find some ways to get ahead. Many of us have required and recommended annual trainings. Get a jumpstart on those! Whatever you choose to tackle, be sure to give yourself deadlines or the time may slip away from you.

Support Each Other

While the saying “a little compassion goes a long way” has always been true, it is now something we each must take to heart. Each and every one of us is dealing with an uncertain time right now. Offer your clients, your tenants, and your community whatever support you can. If you have valuable advice or resources, now is the time to share it!

And on that note, our team is here for our YOU 100%. If there is a question we can answer for you or a resource we can provide, please do not hesitate to contact us– client or not.

The post We Will Weather This Storm…Together! appeared first on Reynolds Realty Advisors.

State of the Market for Office:  Currently there is approximately 250K sqft of office space under construction, down from the all-time high of 2.7M in 2017.  Vacancy rates remain steady at approximately 9.7%, while delivery and absorption remain constant at approximately 8.5%.  The Irvine Spectrum in Orange County has consistently brought online new product year over year since inception, realizing over 3M sqft of office space since 2011.   Tustin, Fountain Valley and Newport beach fall second to the Spectrum individually and cumulatively and have delivered over 3.2M sqft of office space since 2011.  Rental growth for office space nationally averages 1.5% in 2019, down from the high of 8.7% in 2015, with the lowest rental absorption of -13.1% in 2009.

State of the Market for Industrial:  Since 2017, 50K sqft of industrial real estate has been demolished in order to create space for new real estate product within these in fill lots throughout Orange County.  Thus, we have seen a very low delivery of new industrial product coming online.  Vacancy rates remain low, and the vacancies are generally associated with outdated industrial properties.  Demand vs. supply is very strong for the industrial product in the market, which has been maintained.

State of the Market for Retail:  There is approximately 400K sqft of retail space under construction in 2019 within Orange County, down from 1.4M in 2016.  Given the slow-down of product coming online, the net absorption rate is steady just behind the delivery of new product; with vacancy rates remaining at approximately 4% given mostly within the older product.  The malls and entertainment centers are thriving as customers continue to enjoy the experience of shopping, entertainment and gathering.  The strip center tends to be struggling more than malls.  Repurposing brick and mortar is the new trend, as we are seeing online companies such as Amazon leveraging places such as Kohls for returns, bringing shoppers into the stores who in turn realize a discount to shop at that location.  Staples is offering conference room rental spaces, Citibanks are opening coffee shop style banking centers and Starbucks continues to be the location of choice for students to gather and study or socialize and for business meetings across all industries.  Other retailers are offering trying new offerings such as yoga classes and live entertainment.  Re-inventing the retail experience is the trend today.

Investment by Product:  Office space has dominated the market in terms of sales volume in Orange County since 2006, reaching a high in 2015 at $3.5B dollars’ worth of sales.  Currently office space sales transactions are at $2.9B dollars.  Industrial sales volume fell just behind office space realizing $2.4B dollars in sales in 2019, followed by Multi-family at $.9B and retail at $.6B dollars in sales transactions.  Much of these sales transactions are a factor of the product availability within Orange County, driving demand and absorption rates respectively.  Multi-family dominates all product types in terms of price index, reaching 220 in 2019, with Industrial falling just behind Multi-family with a price index of 180 in 2019.  Retail and office space are tied with a price index of 142 in 2019.

Cap Rates by Product Type:  Cap rates remain very strong across all product types within Orange County: with office space realizing an average cap rate of 5.8%, retail cap rates overall are at 5.2%,  industrial cap rates are running out at 4.9% and Multi-family cap rates remain very strong averaging 4.1%. Overall commercial products continue to be a strong investment and are thriving in this market.

The post The State of Our Economy: A Decade in Review appeared first on Reynolds Realty Advisors.

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As stated in the article “How Rent Control Laws Hurt Tenants,” by Steven Greenhut, California is about to get a real world lesson in how rent control laws can’t solve a housing crisis alone, |  In this article, Steven articulates several key points regarding this new legislation.  We will likely see a trend in that landlords will no longer maintain the properties to the high standards they did in the past and we will see an increase in deferred maintenance.  Additionally, landlords and builders will exit the market and turn apartments into condos, which will create an even greater shortage of rentable units.  For those that continue to rent to tenants, they will no longer have the luxury of increasing rents to their highest at the right time, but instead will need to increase rents to their maximum yearly, creating more friction between landlords and tenants.

The significant downside is for landlords who have kept their rents under market to retain great tenants, as they it will be more challenging for them to catch up to the market through typical rent increases.  Now, more than ever, is the right time to secure a property management company who will ensure you and your assets remain complaint during these ever changing times.

There is a new group of investors who are buying motels and hotels and turning them into low cost apartment housing.  Additionally, some savvy investors are buying mobile home parks and modular homes for the same purpose, as they realize there is a large pool of government funding to pay the rents to these landlords in support of their tenants who qualify for these state funded programs.  Yes, our tax dollars will go to these great causes until the funds run out.  At which time, these landlords will need to determine what they will do with these properties.

There are many additional ways we can work to help our communities dealing with the rise of homelessness and lack of mental illness support. We need to fund programs dedicated to supporting those in need and help them to transition into a long-term solution and improve their overall situation.   Additionally, employers need to look for new ways of thinking of teams and offices, for example allowing staff to telecommute, so that they can live in affordable housing areas and still be employed by the firms of their choice.

During this information age and with the rise of AI and robotics changing virtually every industry, there are endless possibilities to improve our current situation regarding these key issues.  We need to focus on “Moon-Shot Goals” and fund them, which will give rise to a better future for us all.

Contact us today for a free property management assessment and action plan for your properties!

www.ReynoldsRealtyAdvisors.com

Elizabeth@ReynoldsRealtyAdvisors.com

866-613-7772

The post Rent Control Is Back appeared first on Reynolds Realty Advisors.

1. Keep in Mind the Advantages of a Team Approach: By building a team to support you with your investments, you are able to enjoy the passive income from your portfolio. There are two primary ways to approach team building (1) hiring a property management company and (2) self-managing, in which you manage and hire for all key functions directly.
2. Finding a Good Property Management Company: Your ideal property management company will have experience with the type of properties you own and familiarity with the area(s) in which your properties reside. The property management firm of choice will provide you with a comprehensive team and the oversight of the same including; Real Estate Broker, Real Estate Agents, Office Staff, Regional Property Managers, Onsite Property Managers, Maintenance Management, Contract Managers, HR and payroll management, Controller, Accounts Receivables and Account Payables, CPA/Tax Advisors and IT support for their team.  Additionally, the ideal property management company will have proven systems and processes in place to ensure property optimization and maximizing NOI while ensuring compliance in all areas.
3. Who should be on your Team for self-managing owners? In addition to all of the above applicable functions, owners of real estate portfolios need to have the below team members:
   • Attorney: Contract management, acquisition, and entity structuring support and helping to avoid litigation.
   • Leasing/Marketing Agents: Ensuring the properties remain leased and occupied at all times.
   • Banker/Lenders: Bank account structure, financing and re-financing options and lending support.
   • Escrow/Title Agent: Ensuring clear title and providing critical information upfront regarding the real estate property and transaction. Offering support throughout the real estate transaction and title changes thereafter.
   • Association Memberships: Continued Education to ensure compliance management in all areas including Federal, State, local laws, property policies, ADA, Fair housing as well as employment law compliance.
   • Key Vendor Partners: Maintenance with specialties in all areas in order to maintain the properties.
4. Structuring your Team Members: Team Members can be full-time and/or part time employees and they can be paid on an hourly or salary basis. Team members can also be consultants and paid only for their times, as needed.

Questions/Answers:  Please email us directly at Elizabeth@ReynoldsRealtyAdvisors.com with your questions and we will get back to you promptly.  We are also working on our next Q/A article, where we would like to feature your questions and our responses.

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Keep in mind…

• “Good” is a state of execution that meets one’s customers’ expectations at a given point in time.
• “Great” is the execution of good property management services measured over time
• “Premier” Property Management is excellence in execution, sustained over a long period of time

Question 1:  Is owning Real Estate a good idea?

Answer:  Owning real estate is always a good idea over the long run.  There are so many benefits to owning real estate such as; cash flow, equity growth, leverage, tax benefits, appreciation, pride in ownership, and the ability to will these assets onto the next generation.  Building wealth in real estate can be done, but it is not always easy.  Successful real estate investors become the experts in the territory in which they invest and the type of products they hold within their portfolio.  Further, successful real estate investors know every aspect of property management, whether they manage the properties themselves or hire the right firm to manage it, on their behalf.

Question 2:  What is the benefit of hiring a property management firm vs self-managing?

Answer:  Hiring the right property management firm is key if you want to enjoy your real estate investment, realize passive income, travel and not deal with the plumbing issues in the middle of the night.  As Robert Kiosoki details in his “Rich Dad’s Cashflow Quadrant” book, one can be an Employee, Sole Proprietor, Business Owner or an Investor.  Purchasing your real estate portfolio, which allows you to quit your JOB, is an outstanding step in the right direction.  This will move you into the Business Owner quadrant.  However, property management of your portfolio is a 7/24 job, which does not allow for vacations, family time, days off or sick time.  This will ultimately take its toll on you as the Business Owner/Operator.  The investors we meet are highly energetic, adventurers by nature, love the art of sourcing and closing on a good deal and take great pride of ownership.  By partnering with Reynolds Realty Advisors, our clients are able to focus on what they do best, growing their portfolio, securing new deals and enjoying the benefits of their passive income.   Reynolds Realty Advisors focuses on all the operational aspects of the portfolio for our clients, ensuring we maximize our clients’ NOI and exceed their expectations through employee training/retention, compliance management, strategic marketing, property common area management, maintenance management, tenant management, accounting/cost management, repositioning/ renovation and owner reporting.

Question 3:  How do I find the right property management firm?

Answer 3:  There are several factors to consider when looking for the right property management firm such as:

• Will they help you to source your next property?
• Will they help you to evaluate the deal you’re considering to purchase?
• Can they help determine the capital improvements, costs, and repositioning opportunity of this property?
• Do you have a connection with the management team of the firm? Are they personable?
• Do they have experience managing the type of properties that are in your portfolio?
• Do they have proven best practices in place, ensuring compliance in every aspect of the business?
• Do they have a proven track record for increasing clients’ NOI?
• Do they leverage best in class accounting systems and owner reporting methodology?
• Do they provide “value-add” to your portfolios?

Question 4:  I would like to have more time, but not sure I am ready to let go of my portfolio to be managed by a third-party management company.  How can you work with me?

Answer: Many owners who have been self-managing their portfolio, but would like to turn it over to third party management, have a difficult time letting go.  Premier Property Management services is all about providing “Excellence in Customer Service,” customizing our model to best fit our clients’ needs.  Trust is the foundation to every relationship, to include that between an owner and his/her property management team.  To build trust, we must work together to find the balance that works for our clients.  Some clients like to take time up front to complete a lengthy due diligence process about our firm and then turn over their portfolio, all at one time.  Whereas others, decide quickly that we are their firm of choice, but transition the properties over to us gradually.  We have other clients who like to walk the properties with us in order to receive verbal updates, whereas other prefer to have reports distributed monthly or bi-monthly.  The key to moving forward with the right property management company is to find the company that will work with you.

Question 5:  Cost management is very important to me, how can I stay involved in this area of property management, while having a third party management firm manage my portfolio

Answer 5: Transparency is key and our clients receive just that.  With owner access to the portfolio operating bank accounts, accounting system, budget development and alignment, cost reporting monthly and quarterly, our owners are completely apprised of the income and expenses associated with their portfolios at all times.  We realize that maintenance and repair costs are a big part of what makes the property cash-flow or not.  As such, we pay close attention to that category, tracking spend to budget weekly, ensuring we are within or under budget every month.  Capital improvements, remodeling and renovations is one of our areas of expertise, understanding the highest and best use of the property and where to spend the capital improvement dollars in order to realize big returns is what sets us apart from our competitors.

Call us today for a free Property Management Assessment at (866) 613-7772 #1, or visit us on our website at www.ReynoldsRealtyAdvisors.com.

We look forward to helping you to achieve your personal and financial goals through real estate!

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