Bank of America faces hurdles in rentals
CNN Money – To help struggling homeowners, Bank of America recently launched a test initiative that will give some a chance to rent the very homes they risk losing.
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You are viewing category: Rentals Tip of the Week: Beware of “Successful Rent”The Apartment Owners Association is warning of a company called Successful Rent run by a lady named Sunny who is scamming rental property owners. Sunny calls owners who have vacancies and claims she has prospective tenants from out of the country looking for homes. She then sends someone over who fills out the rental application and gives the owner or manager a fake cashier’s check to hold the apartment. She also says that she will run the credit report for the owner for free. On the day of move-in, she calls the owner and says the tenant found another place and they would like their money back. The owner then writes a check for the deposit amount and a week or two later, gets a letter from their bank saying the original cashier’s check was fraudulent.
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Rental markets heating up, but home values continue to declineMedian rents rose 3 percent from January 2011 to January 2012, but home values continued to fall, declining 4.6 percent during that period, according to the January Zillow® Real Estate Market Reports. The Zillow Rent Index (ZRI) showed year-over-year gains for 69.2 percent of metropolitan areas covered by the ZRI. By contrast, only 7.3 percent of metro areas covered by the Zillow Home Value Index (ZHVI) saw home values rise. In the short term, national monthly rents declined slightly from December 2011 to January 2012, falling 0.3 percent to $1,218. Home values fell 0.5 percent during the same period to $146,200. Additionally, foreclosures ticked up slightly in January, when lenders foreclosed 8.4 out of every 10,000 homes. That was up from December, when 8.1 out of every 10,000 homes were foreclosed. Foreclosure re-sales also rose on both a month-over-month and year-over-year basis. Nearly one-in-five (19.5 percent) of homes sold in January were foreclosure resales.
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Bill Imposing Rent Control on Newly Constructed Housing KilledGood news for new home and condo owners! Earlier this week, the California State Senate killed SB 184 (Leno), a bill that would have, if passed:
The San Francisco Association of REALTORS® aggressively opposed the bill and, before it was considered, lobbied every moderate Democrat and Republican in the Senate. SB 184 would have made serious inroads for rent control statewide by allowing local governments to ensure that a percentage of all new developments include homes permanently affordable to low-income households. The bill would have “clarified” the Costa-Hawkins Act by establishing by legislative edict that it does not apply to locally-enacted inclusionary zoning programs. Background Over the past 30 years, local governments have exempted newly constructed rental housing from rent control laws; yet, many of those same governments adopted and enforced conflicting inclusionary housing laws (laws that impose rent control on 10 to 30 percent of the newly constructed rental housing). The California legislature assured that new rental housing would not be subject to rent control in 1995 through the Costa Hawkins Act. The reasons the San Francisco Association of REALTORS® opposed the bill:
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Rent Board Announces Annual Rent IncreaseEffective March 1, 2012 through February 28, 2013, the allowable annual increase amount is 1.9 percent. In accordance with Rules and Regulations Section 1.12, this amount is based on 60 percent of the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose region for the 12-month period ending October 31, which was 3.2% as posted in November 2011 by the Bureau of Labor Statistics. To calculate the dollar amount of the 1.9 percent annual rent increase, multiply the tenant’s base rent by .019. For example, if the tenant’s base rent is $1,250.00, the annual increase would be calculated as follows: $1,250.00 x .019 = $23.75. The tenant’s new base rent would be $1,273.75 ($1,250.00 + $23.75 = $1,273.75). The Rent Board has yet to announce the interest rate payable on security deposits for the 3/1/12 – 2/28/13 period.
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Rental IncomeAnother way to produce residual income through real estate is as an investment property. The two biggest values of http://www.realestatesecretcode.com To use this method, you buy a property with income. By income, I mean a POSITIVE cash flow. I am sure you realize that asking the owner of the property whether it has a positive cash flow may not yield the whole truth, particularly if the answer is no! So, how do you find out the truth? You ask them to show you the bank records for the past 5 years and the expenses for the past 5 years. If they don’t have them or won’t show them to you, simply walk away from the deal. If they do show you the records, you simply add up the income per year to get net income and add up the expenses per year to get the net expenses. Subtract the net operating expenses from the net income to give you the net operating income. Now subtract the debt service fees and that gives you the cash flow. Just as in foreclosures, you need to be known as “the buyer”. Get known by the CPA’s, attorneys, real estate brokers, mortgage companies, refinance companies, and anyone else that may be “in the know” about rental properties before these deals get out to the general public. Essentially, you need to have these “plump” deals referred to you. Example: Let’s take a look at a real life example. I have a friend who found out about a Co-op in the same neighborhood with the United Nations. The Co-op was 300 sq ft and going for $100,000. That is not a misprint! Trust me, this is prime real estate! She financed $79,200 and since she had at least 20% down, she didn’t have to have personal mortgage insurance (PMI). The debt service costs her $6403 per year. During her first year, she made $1107 or 4.5% return. During her second year, however, she didn’t incur any closing costs, so she had $5683 or 22.9% return. As the years went along, the rental prices increased somewhat and she went from a 25.3% return in year three to a 30.6% return in year 5. Her five-year pretax average return was 22.2%!! If you had one of these deals each year for the next ten years, you would make
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Northwest Corner Views at the St. Regis!FOR LEASE: Northwest Corner Views at the St. Regis ! Residence #30B The oversized door to #30B leads to a formal Foyer with luxurious dark hardwood floors. An adjacent Powder Room is highly designed, featuring a thick honed marble basin of Cream Ivy color. In the oversized Living Room, whole-house solar shades open automatically to expose expansive windows providing sweeping views from Twin Peaks to the Market Street Corridor to the landscaped tranquility and al-fresco concerts of the Yerba Buena Gardens. Uniquely, a group of windows are architecturally angled inward to serve as a focal point of the room creating a most dramatic living and entertaining space. Below, benches of honed cream limestone complement each large window. Overhead, accent lighting uniquely highlights sculpture and art. An adjacent, windowed open-plan Designer Kitchen boasts Poggenpohl cabinetry, custom-selected polished granite countertops and back-splashes – as well as luxury appliances by SubZero and Miele. The Master Suite features a large Bedroom with urban views which include a Northern view of Montgomery Street, a deep Walk-In Closet, a spacious Bathroom — which includes dual vanities, separate large bathtub and shower highlighted by flooring of polished Calacob Bella marble in geometric, decorative patterns. At the opposite end of the Apartment, a Guest Bedroom with En Suite Bath enjoys stunning Western views. This smart-home features triple-zoned Air Conditioning & Heat, in-home laundry, operable windows in every room and is cable/Internet ready. LUXURIOUS AMENITIES LOCATION Minutes from Union Square, St. Regis is located in San Francisco Arts District, adjacent to the masters housed at the SFMOMA, the Contemporary Jewish Museum, and the newly opened Museum of the African Diaspora. More photographs and a full description of the St. Regis Residences may be found at Offered Unfurnished at $9,000 Per Month Minimum One Year, Please.
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San Francisco: Vacation Rentals On the Rise“They are taking away from the city’s affordable housing stock and the amount of units available for permanent residents,” said Christine Haw, code enforcement supervisor for the San Francisco Planning Department. According to census figures released last month, converting private San Francisco residences into makeshift vacation rentals is on the rise, reports The Bay Citizen. The census counted 5,564 vacation homes in San Francisco – up from 3,764 in 2000. This should come as no surprise to anyone who’s sought out an alternative to staying at a hotel when they go on vacation. And now with websites like Airbnb and VRBO, it’s almost too easy to list your property as a short-term rental. Although conversions are largely illegal under San Francisco’s rent-control laws, cases are difficult to prove. “We call it the ‘hotelization’ of San Francisco,” said Ted Gullicksen of the tenants union. “Seniors, families and low-income tenants are being pushed out. We have to fight for every affordable unit.”
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FOR LEASE: UPPER HAIGHT 2500 SF RETAIL/GROCERYDeRose & Appelbaum Vintage Haight Ashbury Retail Space Features: * High Ceilings (15+ Ft) With Enormous Skylights Offered By
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