Author Archive

Transferring Generational Family Wealth: Leveraging Delaware Statutory Trusts (DSTs)

Written by Landlord Property Management Magazine on . Posted in Blog

By Jason Salmon, Senior Vice President, Kay Properties & Investments, LLC

Real estate has long been a popular asset used to build generational family wealth. One of the key tax advantages to passing real estate property to heirs is that those recipients benefit from a “step-up in basis.” That step-up is much like hitting the reset button on a property’s current market value.  This step-up in value alone can represent a huge windfall for anyone who inherits a property that has seen even modest appreciation.

Consider a matriarch who bought an apartment building in the 1980s for $1.0 million. Thanks to careful maintenance and upkeep, along with a good location, that property is now worth $10 million. If the owner were to sell the property, he or she would face a hefty tax liability on the capital gain upon sale. Instead, the owner decides to put that property in his or her will to be inherited equally by his or her grandchildren. The grandchildren also inherit that step-up to the current appraised value at the time of the owner’s death, allowing them to avoid paying tax on capital gain should the property then be sold.

Landlord / Tenant Law “Q&A” With Kimball, Tirey & St. John

Written by Landlord Property Management Magazine on . Posted in Blog

By Ted Kimball, Esq., Partner, Kimball, Tirey & St. John LLP

·      Question?  In our lease agreements we require our tenants to pay their rent on the first of the month.  If the first falls on a holiday, such as Labor Day, do you have to give the tenant’s until midnight on the second to pay the rent or can you still enforce the late fee as of midnight on the first?

Answer.  Rent is not delinquent unless one business day has expired from the date the rent is due.  S,o if the first is a weekend or holiday, the rent is not late until after one business day has expired.

Insane Tenants and the Crazy Landlords That Deal With Them

Written by Landlord Property Management Magazine on . Posted in Blog

What you are about to read is crazy – it is absolute insanity.  What follows is a real exchange that occurred between one crazy tenant and a frustrated landlord who, at times, has clearly crossed the line.  The exchange among tenant and landlord was sourced from the professional property management firm that used to have this landlord as their client and today is “happy to say that client is a former client these days.”  Yes, you got it, the crazy landlord was release by the property management firm on his or her own recognizance.  The names have been changed and the personnel information removed to “protect the innocent” if there is any innocence in this mess.

You will laugh your “bottom” off when you read this exchange, or perhaps you will cry.  You just cannot make stuff like this up.  It is a rare “gem” for sure.  Take my advice, do not try this at home folks.

Ask Kari

Written by Landlord Property Management Magazine on . Posted in Blog

Planning of Maintenance and Repair Work concept, 3D rendering

By Kari Negri, Chief Executive Officer, SKY Properties, Inc.

  • Question: Hi Kari, can you give me some tips to help keep building expenses down?

This is such an important question.  I can talk for two hours addressing this question alone.  Let me give you 7 quick tips to keep in mind though:

Tip 1:  Respond quickly to resident’s maintenance requests.  The number one reason a tenant moves is due to lack of maintenance and having to turn over a unit interrupts your cash flow.  Not only that, but in today’s technological ecology, the miffed resident not only tells their friends, but they tell the world about the experience via the Internet.  Stopping a vacancy before it happens is a great way to cut your expenses.

Dear Maintenance Men

Written by Landlord Property Management Magazine on . Posted in Blog

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:
I am installing safety grab bars in all of my showers & bathtubs and I need some guidance on the installation procedure.    What do I need to know to install these bars correctly? David

Dear David:
The use of handrails and safety bars help provide stability and extra support required by the elderly and people with limited mobility.  Approved ADA grab bars are available in a wide variety of configurations, colors and finishes.  The most common is the stainless steel or chrome finish.   The grab-bars must be able to support a dead weight pull of 250 pounds.  The preferred method is to bolt directly into the wall studs.  This is not always practical, as the stud might not line up where they are needed.  Grab-bars can be mounted vertically or at an angle to match wall stud spacing.  If finding studs becomes a problem, alternate installation methods are available.  If your walls are in good condition, you may use large toggle bolts or if you have access to the backside of the shower or bath walls, insert a backer plate or add a new stud for an anchor point.  Safety grab bars can be located at any local hardware store.  It is advisable that you check ADA requirements with local, state and federal agencies for regulations governing height, distance & angle of the bars.  

Essential Workers: Landlords Are Heroes Too!

Written by Landlord Property Management Magazine on . Posted in Blog

By Irma Vargas, RST & Associates

It’s Christmas morning and my phone rings,  I pick up the phone and it’s a tenant telling me: “I went to use my stove and it does not work.  Can you have it fixed today?”

This is just one of the many calls that landlords receive almost daily, and due to COVID-19, since March 2020, the number of these calls have only increased.  Here are just a few samples (Note: any expletives were removed so not to offend anyone reading this article):

Changes We Might Expect Once the Eviction Moratorium Ends

Written by Landlord Property Management Magazine on . Posted in Blog

By Ari Chazanas, Founder and Chief Executive Officer, Lotus West Properties

During the Coronavirus Pandemic, we have been faced with numerous challenges. One of them is the eviction moratoriums, which is legal authorization for indebted commercial and residential renters to postpone their rent payments to landlords. Tenants may wish to extend the eviction moratorium and landlords wish that it may soon end.

At this time, we anticipate that the eviction moratoriums may be extended long before being repealed; With the original due date for the State of California’s eviction moratorium having expired on January 31st only to then be extended to June 30th, one might expect that this latest expiration date to again be extended by May or June.  Many renters and landlords must now anticipate their next action steps with the latest expiration date on the horizon. The Coronavirus has certainly changed the landscape of evictions and rent collections. Even online unlawful detainer and other court hearings may become commonplace.

Dear Maintenance Men:

Written by Landlord Property Management Magazine on . Posted in Blog

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:
I am starting my planning for a major kitchen cabinet remodeling project in my rental units.  However, I am having a difficult time making material and design decisions.  What recommendations can you give?
Allen. 

Dear Allen,
When doing a kitchen or bath material selection, cohesive and functional design is important.  Kitchen and bath rehabs are some of the most expensive work you can do in an apartment unit and proper planning is a must.  In order to appeal to a larger segment of the population, try to keep the interior color scheme to neutral earth tones.  Cabinetry quality varies greatly.  Don’t let the cabinet fronts fool you.  Manufactures designed their cabinets to look good at first glance.  Keep in mind, being in a rental environment, the cabinets also need to hold up to abuse. Look at the actual construction of the cabinet box or frame.  Keep in mind; you do not need to use custom cabinets to fit your existing layout.  The use of prefabricated modular cabinetry can greatly reduce the time and cost to have a finished kitchen or bathroom.  Using real wood cabinet fronts with 3/8” plywood sides is essential for durability. The drawer fronts and sides should be connected with a dovetail or other positive lock construction.  Drawers that are held together by nails or cabinets built with particle board will not hold up to tenant abuse. 

On a side note;  if you are gutting the kitchen or bathroom, use this time to relocate and add more electrical outlets and under cabinet lighting. 

South Pasadena | City to Make Permanent Eviction Ban for Unpermitted Renovation

Written by Landlord Property Management Magazine on . Posted in Blog

By Ben Tansey

South Pasadena’s moratorium on evictions triggered by unpermitted renovation work will has been extended through mid-January, when the City Council will adopt an ordinance making the prohibition permanent. At its last meeting of 2020, the Council unanimously approved the extension despite considerable disagreement in the community over whether existing state law (AB 1482) already offers tenants such protection.

The Council also decided to give staff and the Planning Commission a couple more months to craft an ordinance setting relocation assistance payments to tenants in good standing who are evicted for so-called “substantial remodels.”

Freedom-RIP

Written by Landlord Property Management Magazine on . Posted in Blog

2020 may be remembered as the year many of the freedoms we had, or thought we had, died or were mortally wounded. It was the year we became subject to arbitrary government decree without recourse.

Time magazine missed the mark by not naming The Government Bureaucrat, Person of the Year.

Naturally, property rights are the subject of primary interest to the readers of this publication. Tenants without any showing of hardship have been allowed to remain in their units with little to no payment of rent.