Google Maps has a new feature that gives you a tag on your map listing. Basically it gives you a little flag that makes your ad standout in comparison to your competition. Right now in the property management world there is more competition than ever due to the influx of starving real estate agents so anything to stand out is a good thing. Our new location in Anaheim is not listed on google maps click on this hyperlink: Anaheim Property Management
Anaheim Property management is on the MAP
September 23rd, 2010Biggest Rent Decline since 1940!
July 16th, 2010I read an interesting article about rents in SoCal. It says that we have seen the biggest rent decline since the 1940s. Pretty amazing. To offset these losses property owners should hire a a competent property management company.
http://lansner.ocregister.com/2010/07/16/biggest-socal-rent-decline-since-1940/73053/
If you own property in Huntington Beach there is only one Huntington Beach property management company that you should call. Everybody knows who is #1 in Orange County.
43% more to sell O.C. Homes
June 28th, 2010Below is a post regarding the increasing inventory of homes in the Orange County Market. As this market continues to evolve I predict another drop in housing prices during the winter of this year and early next year. The time to buy, in my opinion is not now, not while inventory is rising. Hold off for 6 to 8 months, heck in 12 months prices might still be lower than they are right now. Unless you are upside-down on your mortgage, now is not a good time to sell. Best to rent it out wait 5 to 7 years and make some money rather than lose your shirt. Find a good Orange County Property Management Company and be patient.
http://lansner.ocregister.com/2010/06/28/43-more-want-to-sell-o-c-home/70833/
With inventory clearly rising a good prediction would be a price drop, but most likely more apparent on the homes above the $600,000 -$700,000 range.
It’s just a rental…
June 2nd, 2010Orange County Property Management can be different than other regions. Renters have higher expectations, incomes are higher, and in general the level of education is fairly high.
We receive properties in varying conditions, some are spotless and pristine while others are… well undesirable in every way. When preparing your property for rent, if you want market rent then it needs show like the rest of the market. We give property owners suggestions on how to prepare their properties for lease. However, every now and then we get some push back from clients on our suggestions.
Comments like:
“the dishwasher doesn’t work but i figure it’s just a rental, right?”
“yes it smells but… it’s only a rental”
“I know that carpet isn’t Perfect (20 year old carpet) but it is just a rental”
“the pony mural is perfect if somebody has a little girl, and you know… it is just a rental”
As if renters enjoy smelly and not so beautiful living conditions. The renters in Orange County are for the most part sophisticated and unwilling to rent places that have cleanliness issues, lacking certain appliances; they want places they would be proud to own. Renters are the property owner’s customers and the saying “the customer is always right” has some validity. When it comes to keeping and maintaining long term tenants treating them like customers will go a long way
So before you say “it’s just a rental” ask yourself would I rent this place as is? or would I keep looking? Is there another property for the same price that looks cleaner or shows better? Just know, there will always be a better deal than what you are offering, so never give potential renters an excuse to keep looking.
Huntington Beach REMax Chili Cookoff!!!
May 26th, 2010Every year Stuart, the Broker from the local Huntington Beach ReMax, puts on a chili cook-off. They had a live country band, and plenty of chili, chocolate chip cookies, hotdogs, and drinks. RE Agents, title reps, loan officers, movers, and other vendors all came together to taste and judge about 20 different chili recipes.There were 3 categories: Best tasting, Most Original, and Spiciest Chili.
Our office, Real Property Management Coast in Huntington Beach, decided to submit our own concoction. With the intent to win, we wanted to make the spiciest Chili… so we did. Secret ingredient habanero peppers. We chopped up 12 habanero peppers and added to our chili to give it some kick. And boy did it kick…we stood back and watched while people tried our chili and it was hilarious. Peoples faces turning red, sweaty foreheads, and the occasional swear word would slip their lips. After trying all the various chilies myself it was clear we would be crowned Spiciest Chili… and we were. Thanks Stuart for the great event!
Rents Are changing in Orange County
May 13th, 2010As an Orange County property management firm…
we stay on top of rent trends and try to educate our clients of what rents are doing and where the properties need to be priced. Below is an Article from the OC register regarding Apartment rents.
Best deals on apartments: Fullerton
May 10th, 2010, 2:26 pm . posted by Jeff Collins
Fullerton had Orange County’s biggest discounts in apartment rent during the first quarter of the year, cutting its average rent by 8.4% from the year before, according to RealFacts.
City Vacancy Rent Chg.
Newport Beach 5.8% $1,898 2.5%
Irvine 6.6% $1,752 -4.6%
Aliso Viejo 5.4% $1,563 -7.9%
Costa Mesa 5.8% $1,518 -2.7%
Laguna Niguel 5.5% $1,486 -5.7%
Orange 5.4% $1,477 -5.9%
Tustin 5.4% $1,432 -5.5%
Lake Forest 3.9% $1,396 -6.2%
Huntington Beach 4.6% $1,388 -4.5%
Mission Viejo 5.8% $1,377 -6.2%
Placentia 5.8% $1,374 -1.4%
RSM 6.5% $1,372 -8.1%
Cypress 3.2% $1,366 -4.9%
Fntn. Valley 4.6% $1,315 -7.8%
Brea 7.4% $1,298 -7.8%
Westminster 8.0% $1,294 -5.7%
Fullerton 5.5% $1,283 -8.4%
Santa Ana 4.5% $1,270 -7.2%
Garden Grove 5.0% $1,270 -7.7%
Anaheim 6.2% $1,250 -4.0%
La Habra 3.8% $1,236 -7.7%
Buena Park 2.9% $1,224 -8.2%
Stanton 5.0% $1,149 -7.5%
OC Avg. 5.7% $1,475 -4.8%
The average rent in a large apartment complex in Fullerton fell to $1,283 a month this year, compared to $1,400 a month in the first quarter of 2009. That’s a rent reduction of $117 a month.
Buena Park and Rancho Santa Margarita had the next biggest percentage drops in apartment rent, both with cuts greater than 8%.
RealFacts provides rent data on apartment complexes with 100 or more units, representing about a third of all rentals in Orange County. The average apartment rent countywide is $1,475, down 4.8% from the year before.
In addition, the RealFacts report shows:
- Rent dropped during the first quarter in 22 of the 23 cities for which RealFacts provide data.
- Newport Beach was the only city where rent went up 2.5%.
- Newport Beach remains O.C.’s highest high-rent district, with an average apartment rent of $1,898 a month.
- Stanton has the county’s lowest rent, with an average apartment rent of $1,149 a month.
- Westminster has the county’s highest apartment vacancy rate: 8% of the units in that city were empty during the first quarter. The next-highest vacancy rates were in Brea (7.4%), Irvine (6.6%) and Rancho Santa Margarita (6.5%).
- The county’s lowest vacancy rate is in Buena Park, where 2.9% of the apartments were empty.
When pricing a unit a landlord needs to realize what their competition is doing in order to compete. Lower deposits result in higher income, higher deposits result in lower income. Landlords that are competing with the large apartment complexes need to understand that many of the apartment complexes are charging $200 security deposits to get people in the door. For the single unit owner they cannot take this kind of risk so in order to be competitive their unit will usually need to be priced lower to entice a renter to pay one month worth of security deposit. Understanding little things like this could mean the difference between filling your unit right away or letting it sit for 2 months. Orange county property management is different, than management in other areas. Expectations are higher, rents are higher and typically costs are higher. Having a skilled property manager can make a big difference on the success of your rental property.
Anaheim Property Management
May 5th, 2010Our Anaheim Branch is up and Running! It is a small little place but it is our little place.
330 N. State College Blvd. Ste. 210
Anaheim, CA 92806
Due to the large number of clients we have in the Anaheim and Fullerton areas we decided to put an office in North Anaheim bordering Fullerton. This will help us better serve our clients that require Anaheim Property Management or Fullerton Property Management. All rents still go to the Huntington Beach office to our centralized accounting. We are excited about this new opportunity.
Housing Market Chit-Chat
April 20th, 2010Discussing top ideas for housing and comercial realty, with Jonathan Litt, Land and Buildings Founder & CEO.
Deals being found in the Orange County Apartment Market
April 20th, 2010By JEFF COLLINS THE ORANGE COUNTY REGISTER
Irwin “Tres” Trester spent more than a year looking for income property before buying a four-plex in Huntington Beach.
“The advantage I was looking for was cash flow. … Going from a (rental) house to a multi-family seemed like the right way to go,” he said. “And the place to go seemed to be Orange County.”
Like Trester, a lot of people are looking to invest in real estate as an alternative to a roller-coaster stock market and low-yield CD’s.
While most bargain-hunters are shopping for houses or condos to use as rentals, some agents advise that investors consider small apartment buildings instead.
Two- to four-unit buildings often generate more rental income than a similarly priced house. And properties with four units or less qualify for the same type of loans as single-family homes and condos. Commercial loans are required when the number of units hits five or more.
The down side, of course, is the headache of becoming a landlord. There’s maintenance, repairs, chasing down rent and dealing with leaky plumbing and plugged toilets at all hours. Not to mention the current problems due to rising vacancies and falling rents.
You can hire a property management company for a percentage of the rent to deal with those hassles, but only if you get a good one.
“It was more of a chore,” recent San Clemente buyer David Snyder said of his first apartment building. “There’s a lot more maintenance involved.”
Still, agents argue that the fit is right for some people. And since prices are falling, the timing is right as well.
“What you need to do is buy income property and let other people pay it off,” Huntington Beach agent Mike Thornton told a group of potential investors at a recent seminar on buying four-plexes. “I like four-plexes. They’re kind of easy to understand. The banks like them.”
Agents differ over how hot the “multi-plex” market is right now.
Thornton and “Old Town Al” Ricci, another agent specializing in this market, maintain that the multi-plex market is “on fire” right now.
But Bill Webster of Vanguard Investment Properties, another multi-family expert, disagreed.
“The market is not on fire. But it should be,” he said. “It’s a perfect time to buy. It really is because the interest rates are so low and the values are so low.”
As with the house and condo market, many people bought small apartments at the peak of the market, only to lose their shirts — and their properties — to foreclosures and short sales.
According to Steve Thomas of Altera Real Estate, almost one in four of the 421 two- to four-unit buildings listed for sale in the Orange County is either a foreclosure or a short sale, or a property offered for less than the loan balance.
High levels of distress translates into lower prices for buyers. According to Webster, units that once sold for more than $1 million now are listed for $800,000 or less; $750,000 buildings are going for under $500,000.
But Webster said many investors are staying on the sidelines, waiting for prices to drop further. Rules limiting the number of multi-family loans an investor can have has limited the number of deals being made as well, he said.
Still, buyers are out there. According to Thomas, 147 small apartment buildings went into escrow in March.
Thornton, the Huntington Beach agent, drew a group of 17 potential investors when he pitched small apartment buildings at an Irvine hotel recently. In Thornton’s view, “negative cash flow” is really “wealth insurance.”
“These tenants pay the mortgage for you,” he told his audience.
Jeff Busche, 47, of Huntington Beach seemed convinced.
“My mother owns real estate, so I’ve seen how her investments have gone over the years, and they’ve done pretty good,” Busche said. “Single-family homes, I think they’re good (investments). … But with a four-plex, if one of your tenants moves out, you only lose 25 percent (of your income).”
Trester said that he had one tenant move out soon after he bought his Huntington Beach four-plex in October. He lowered the rent by $25 a month and charged just $25 for the first month to draw a new tenant to fill his vacancy. He also rejected a suggestion that he raise rates for the coin laundry on his property.
“I think prices are still tumbling. (But) the vacancy factor is increasing. In that little area I bought in, the word is people are moving out. They’re moving in with relatives, they’re moving in with friends, or they’re leaving the country,” Trester said. “It’s a great time to buy, but at the same time, you’re running the risk of a higher vacancy factor.”
How to choose an Orange County Property Management Company
April 15th, 2010How to choose an Orange County Property Management Company
Many first-time-landlords are not sure who to turn to when they take on the task of managing an income property in Orange County. For those planning on hiring someone to manage their newly acquired asset this article will discuss some of the ins and outs of picking a competent management company.
Whether it is a rental house, a fourplex, or an apartment building many new landlords ask the advice of their real estate agent about property management services. Due to the economy and the state of the wallets of many real estate agents many have been recommending their own property management services. So the question remains does real estate brokerage experience qualify one to manage properties?
If they are managing only a couple properties they may do a fine job and their shortcomings are easily hidden. To manage a large portfolio of properties requires other skills beyond those mastered in the brokerage field, which is primarily a sales and marketing position. Effective property management boils down to doing four core competencies: leasing, rent collection and disbursement, maintenance, and communication. No matter what product type effective property management is the same, the systems to achieve the proper results may differ but the core competencies are the same.
Leasing:
How does a real estate agent handle leasing? This is where real estate agents feel at home and where they may do a fine job. Real estate agents when they are not chasing larger commissioned deals they can be very effective in leasing. However, when push comes to shove if they have a listing presentation or a lease showing the listing presentation will win out 100% of the time. Leasing consists of sales and marketing but it also requires effective underwriting to ensure a consistent income stream throughout the lease. Underwriting is not something that agents worry about on the for-sale side of real estate; this function is limited to the lender in a sales transaction. When determining what group or individual will be managing your property it is important to understand their approach and criteria for underwriting applicants and make sure that you are satisfied with their approach. Doing proper due diligence on potential tenants can save owners thousands in lost rent and avoidable expenses. Finding a management company that is focused strictly on property management will ensure that your manager is not neglecting the management of your property to chase larger sales commissions when the opportunities present themselves.
Rent collection:
Money in, money out. In managing a real estate portfolio there is a lot of money coming in and a lot of money going out. With this wave of money rushing in and out sound accounting serves as the keystone of any stable property management company. Systems and processes must be in place to handle the rent collection, accounting, disbursement and reporting. The handling of clients’ funds and the proper reporting of those funds tends to be a weakness of many management companies. Property management is more of an accounting business than a sales business. The management companies that fail in their accounting will ultimately fail in the rest of their operation. It is vital that when choosing a property management company that the rent collection, accounting, disbursement, and reporting are solid otherwise you are placing a significant investment in uncertain hands.
Maintenance:
Maintenance is necessary to preserve the value of the asset and to appropriately maintain customer service among current tenants. If the maintenance is done correctly it can result in longer tenancy and higher rents. This core competency needs to be systematic so that necessary repairs are not left undone and that each repair is made in a timely manner. On a small scale this is not an overwhelming task, however, when dealing with a large number of properties the navigation of this task proves to be more difficult. In selecting a manager dig a little deeper on the maintenance and make sure that the organization and the process of dispatching vendors and completing work is well addressed. A real estate agent may struggle to stay on top of a myriad of maintenance when also striving to please their listing owners, potential buyers, and the constant self marketing required to be a listing agent.
Communication:
Most issues that arise can be solved by open communication between property owner, property manager and tenant. Real Estate owners want to stay informed about their property; whatever the news good or bad, property managers need to communicate effectively with their clients. A major part of keeping tenants happy is communication whether it is setting expectations, explaining the lease, or quick response on maintenance requests. A property manager serves as the liaison between the tenant and the owner and is constantly relaying pertinent information between the two parties. When selecting a management company call them, see if they pick up their phone, if you leave a message how long does it take for a return call or email. Make sure you are comfortable with their ability to communicate and process answers to your questions. The problem of hiring a single individual to manage is that most just do not have the time to properly service their clients. This is a volume business and one person can only do so much.