Author Archive

DST 1031 Exchange: What is it and how might it help with my current 1031 Exchange?

Written by Landlord Property Management Magazine on . Posted in Blog

By Dwight Kay | KPI1031.com

So you’ve decided to do a 1031 exchange, meaning you have decided to sell your property and invest that money in another property in order to defer the federal capital gains tax, state capital gains tax, depreciation recapture tax and the Medicare surtax. Smart!

But are you just moving from one headache to another? If you’re looking to retire from property management but you still want to defer your taxes using a 1031 exchange and keep your invested money working for you, you might be interested in learning about a DST.

Rental Housing Legislation You Should Be Keeping your Eye On

Written by Landlord Property Management Magazine on . Posted in Blog

By Becky Bower | ApplyConnect

As the majority of the country takes a break proposing and passing new rental housing laws and regulations, let’s take a moment to review the rental housing bills that are currently up to bat. From regulations on service animals in Illinois, rental property registration in the city of Portland, and additional homeless grants and assistance in California, the rental housing legislation at this point is a mixed bag. Take a look below at the passed and proposed rental housing laws in your state.

Real Estate: Strong Fundamentals Persist—As Do Opportunities: REITs should have several more years of solid growth in property fundamentals as the economic cycle continues and many sectors have the peak in supply growth behind them.

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Kevin Brown | Equity Analyst

U.S. Real Estate Outlook 

After falling in the first quarter due to pressure from rising interest rates, the U.S. real estate market performed in line with the broader U.S. market in the second quarter. The 10-year U.S. Treasury yield increased rapidly at the start of the year but has stayed near the 2.85% rate since mid-February, bringing relative stability to real estate stocks. Given the circumstances, many investors wonder whether we are near the peak of the commercial real estate cycle—higher interest rates could pressure growth rates, cap rates, return expectations, and ultimately asset prices. Also, to the extent that low interest rates have steered investors searching for higher yield and capital preservation toward REITs, the same funds could flow out of REITs if interest rates rise, further pressuring commercial real estate valuations. 

What Do You Mean My Landlord’s Not Responsible? New Survey Shows Tenants Don’t Understand Liability Issues

Written by Landlord Property Management Magazine on . Posted in Blog

by Kyle Gelsthorpe

Airline tickets? Check. Credit cards? Check. Wireless charger? Check. Renters preparing for vacation have a checklist of items they don’t want to forget.

Unfortunately, many renters fail to consider a key question that should be at the top of the list: While they’re away, who is responsible in the event of burglary/theft or property damage from a fire, weather or negligence?

Turns out a lot of renters are in the dark about who bears ultimate responsibility.

According to a new survey by global risk solutions provider Assurant of 1,000 U.S. renters, nearly one-third (32 percent) believe either the landlord or property management company should be responsible for damage or liability protection, while an additional 25 percent said they were “not sure” who’s responsible.

FIVE RENTAL REVENUE GROWTH STRATEGIES

Written by Landlord Property Management Magazine on . Posted in Blog

by John Wilhoit

This article presents five areas to assist in rental revenue growth. But it goes beyond just rents and ancillary income. We know that most revenue from a rental property comes from rents but that’s not the whole story.

How many rental revenue growth strategies are you deploying presently on your property? How many are in process: working, operational, functional and bringing in dollars? For some folks that’s an easy question. They can rattle off those that are implemented and bringing in money and for other people you’ve got to stop and think about it.

Written by Landlord Property Management Magazine on . Posted in Blog

by Daniel Bonstein, esq.

Immigration law has become a combustible subject lately and while all politics are local, some are more local than others. The Bay Area has become a microcosm of weighty immigration issues that have recently stirred up a lot of soul searching and widespread national debate.

Our role at Bornstein Law is not to legislate or get mired into policy, but to educate the rental housing industry on legal issues that impact their business and to prepare for any anticipated changes in the law.

With California seemingly hunkering down as the capital of democratic resistance in the Trump era, the state was prophetic in enacting AB 291, or the Immigrant Tenant Protection Act. This law clamps down on unscrupulous rental housing providers who use an individual’s immigration status against tenants. Assemblymember David Chiu spoke to his colleagues on the Assembly floor and made his case for the bill.

What Do You Mean My Landlord’s Not Responsible? New Survey Shows Tenants Don’t Understand Liability Issues

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Kyle Gelsthorpe

Airline tickets? Check. Credit cards? Check. Wireless charger? Check. Renters preparing for vacation have a checklist of items they don’t want to forget.

Unfortunately, many renters fail to consider a key question that should be at the top of the list: While they’re away, who is responsible in the event of burglary/theft or property damage from a fire, weather or negligence?

Turns out a lot of renters are in the dark about who bears ultimate responsibility.
According to a new survey by global risk solutions provider Assurant of 1,000 U.S. renters, nearly one-third (32 percent) believe either the landlord or property management company should be responsible for damage or liability protection, while an additional 25 percent said they were “not sure” who’s responsible.

This misunderstanding among U.S. renters is significant, especially considering that more Americans rent their homes now than at any other point in the past 50 years and the value of their possessions continues to rise.

Education is Key

It is incumbent upon apartment owners and managers, property management companies and leasing offices to spend more time not only educating renters about damage and liability protection but also helping them understand that a renter’s policy is very affordable.

Not surprisingly, of the 45 percent of respondents from the Assurant survey who said they didn’t have insurance, many cited cost as the reason. Multifamily housing professionals can boost their value and strengthen relationships by:

 Providing specifics on the affordability of a renter’s policy. In other words, how the average annual cost is only $160 a year, which includes $10,000 in coverage for belongings and $100K for liability coverage and replacement costs.

 Discussing how the cost of repairing damage, paying hospital bills or replacing stolen items is often much higher than the cost of protection.

 Positioning a renter’s policy as a competitive advantage. In other words, many landlords and building owners require renters insurance, so having insurance when applying for a new apartment is beneficial.

 Informing renters that insurance may also offer liability coverage if a guest or visitor is injured on the property and litigation ensues.

To Post or Not to Post

Another important area where renters need guidance is around how to mitigate risks while out of town.

Start by offering renters a salient piece of advice: wait to post vacation photos on social media until after they return. Among the 85 percent of Americans who post their vacation news on social media, 38 percent do so while they are away. Frankly, this is concerning because most burglaries and thefts happen while tenants are not home. Bottom line: these posts may be unintentionally sending an open invitation to thieves and other bad actors to break-in to their homes.

Compounding the problem, few renters take precautions to prevent a robbery.

Despite 41 percent of renters experiencing or knowing someone who has experienced a theft, the Assurant survey found that more than one-third (35 percent) do nothing more than lock the door to prevent it. In fact, one-quarter of respondents said they never lock up their valuables when on vacation while an additional 25 percent only do so occasionally.

Because renters are choosing the path of least resistance when it comes to protecting their property and possessions, there is an opportunity to educate them about the risks that come with renting an apartment.

It behooves apartment managers and owners, PMCs and leasing offices to work with renters to help them understand the true value of their possessions, the affordability of insurance policies and the responsibility they may bear if something goes wrong – especially while they’re away on vacation.

Kyle Gelsthorpe, Vice President of Client Relationships and Business Growth

Kyle Gelsthorpe is Vice President of Client Relationships and Business Growth at Assurant, where he is responsible for identifying new domestic and international markets, channels and growth opportunities, as well as directing teams with disciplined prospecting, analysis, negotiation, and implementation of business partnerships throughout multiple product lines.

Gelsthorpe has consistently lead his teams to profitable year-over-year, double digit growth and established strategic partnerships with apartment management companies, owners, and other aggregators of renters, to provide risk mitigation through renters insurance programs and security deposit alternatives. He joined Assurant Specialty Property as a Sales Consultant in 2005 and has since risen through the roles of Senior Sales Consultant and Executive Sales Consultant, and VP National Sales Manager of Assurant’s Multifamily Housing business unit.

Gelsthorpe earned his bachelor’s degree in marketing from Valdosta State University.

Formerly Bankrupt Stockton is Fiscally Healthy Again, but Offers Warning to Others

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Steven Greenhut

Two mid-sized California cities, Irvine and Stockton, have topped a national list of financially healthy governments compiled by an influential watchdog group. Irvine’s top ranking shouldn’t surprise anyone, given that the affluent Orange County city has long been a model for prudence, despite some high-profile spending miscues over the years. But the second-place ranking for the formally bankrupt and chronically mismanaged Stockton is an eye-opener.

Is the poor San Joaquin Valley city really a model for the nation?

How to Produce Eye-Catching Photography in Multifamily that Attracts Renters

Written by Landlord Property Management Magazine on . Posted in Uncategorized

By Tim Blackwell

A picture is said to be worth a thousand words. But when it comes to photography in multifamily, a shot featuring the property shouldn’t be that verbose. The right picture with the right angle, the right composition and the right lighting should send the very concise message to prospective renters that this is the place to be.

PayRent.com