How can I Reduce Utility Costs? - 04/30/09 08:49 PM
There are several things a landlord can do to reduce utility and energy costs.  Some simple and very effective things are installing energy efficient appliances, installing timers, and weatherizing your building.
Many makers of appliances now have energy saver lines that save a great deal of electricity.  Some have the "energy star" designation, or other names that refer to their lower energy and water use capabilities on such appliances as dishwashers, refrigerators, washers and dryers .  When you go to shop for your rental units, remember that a little more money spent up front on the initial cost may save you … (5 comments)

Should a Landlord Allow Tenants to Paint? - 04/27/09 08:47 PM
While no set rule exists on tenants painting their own units, the issue should be addressed in your lease agreement.  If a unit requires painting due to normal wear and tear, it is always the landlord's responsibility to paint.  Chipped or peeling paint must be corrected, as problems with the quality of a paint job can be the difference between a unit being habitable or inhabitable.
Some landlords would prefer to allow tenants to paint a unit themselves, in which case the landlord should still provide the paint and equipment.  In any case, you'll want to control the colors of paint … (8 comments)

Reserves for Income Properties - 04/27/09 08:25 PM
The smart and successful landlord will have two cash reserve accounts set up, a Repair Reserve and a Vacancy Reserve.
A Repair Reserve is a savings account set aside specifically for major repairs or property improvements that may come up during the course of a year,.  There is no set amount or steadfast formula to calculate how much money each month is reasonable to set aside for this reserve.  You'll need to make an educated guess as to what expenses the building may incur over the next twelve months, and then break that savings plan down into monthly savings "payments" for … (3 comments)

Financing for Rental Properties - 04/27/09 02:13 AM
If you are considering purchasing an income property and becoming a landlord, you might be wondering what kind of financing is best for you to secure.  In short, the best possible deal is the best financing for you to seek out.  In general, landlords prefer to get a loan with the best rate, for the longest possible financing term, with the lowest loan origination fees.  These are the same three factors you most likely sought out when looking to finance your own home.
The difference in financing income property is that you will need to choose between two different kinds of … (6 comments)

Simple Ways to Conserve Engergy - 04/26/09 04:31 PM
The annual celebration of Earth day is always cause for heightened energy awareness, yet our energy and resource usage is something we need to be mindful of every day of the year.  With a few simple changes to our daily routines, we can save money, help conserve, and even hopefully repair, the state of the environment.  Here are some things to consider:
Install Ceiling Fans - in your own home or rental units, consider installing ceiling fans.  For a very small investment and less electricity use, you can install fans and cut down on the amount of air conditioning needed in your … (0 comments)

Federal HUD Laws for Landlords - 04/26/09 01:15 AM
There are many federal laws landlords must be aware of and follow carefully.  Most widely encompassing, and most important in legal and ethical terms, is the federal law that prohibits discrimination in the housing and rental markets.  The Federal Fair Housing Act of 1968 and the Civil Rights Act make it illegal for a landlord to discriminate due to a person's race, sex, religion, or national origin.  If a landlord exhibits any sort of discriminatory behavior, they could be subject to criminal and civil penalties. 
Discrimination doesn't only happen on a personal level, meeting prospective tenants or interacting with current renters.  There are … (2 comments)

What does LTV stand for? - 04/26/09 12:59 AM
LTV is the acronym for Loan-To-Value ratio.  It is a term used in real estate financing that refers to the ratio between the loan on a property and it's total value.  For instance, if someone has a $500,000 loan on a million dollar property, that is a 50% Loan-To-Value ratio.
Realtors and lenders will also use the term TLTV, or Total-Loan-To-Value.  This term is used when additional debts, such as a second or third mortgage, are secured by the property.
It is always more desirable to have a lower LTV.  The higher the equity in a property, the more assured a lender … (1 comments)

Should a Landlord be Lax about Late Payment? - 04/24/09 02:02 AM
The simple answer to this question is a resounding NO.  Keep the timeliness of rental payments professional and not personal.  If you abide by simple, basic rules that you set from the beginning of the lease agreement this will save you many a headache down the road.
Your lease agreement should have terms that state when rent is due, what the grace period is for rent not to be considered late (i.e. within five days of the first of the month), and how much of a late charge the tenant will have to pay if moneys are received after the grace … (1 comments)

Is a Landlord Required to Provide Appliances? - 04/24/09 01:53 AM
As a landlord, you are not required to provide any appliances, though most landlords do and for good reason.  For one, providing appliances makes your rental property more appealing.  If your prospective tenants do not have to provide their own refrigerator, oven and range, or washer and dryer your rental unit will be much more attractive than one that does.  Few renters would prefer to go through the expense and hassle of providing their own appliances.
The other reason it's smart for a landlord to provide appliances is that by doing so, you avoid the damage that your unit could possibly … (4 comments)

Retaining Tenants When You Raise the Rent - 04/19/09 08:32 PM
No one likes to pay more for what they're already getting.  Yet rental increases are expected and often necessary to cover the increased cost of goods and services required to maintain your property.  If you are about to renew a tenant's lease agreement and are looking to raise the rent, you may be wondering what the best way is to inform your tenants of the increase.
A properly written letter which sticks to the facts of the increase is your best bet in a getting a favorable reaction and retaining your tenants.  Simply state the increase in terms of percentage, and perhaps … (2 comments)

Raising the Rent - 04/19/09 08:06 PM
When, and how often is a landlord permitted to raise the rent?
Most lease agreements are a one-year agreement, during which time the rent cannot be raised.  Some lease agreements automatically convert to a month-to-month agreement after the first year is up, at which time a landlord does have the option to raise the rent as frequently as every thirty days.  This is not advisable in any circumstance, and certainly not in this economy.  Even a modest increase in rent can be the impetus for a tenant to move if upped frequently.  Some tenants are even currently re-negotiating their rents because … (4 comments)

The Millionaire Real Estate Agent - Here comes the wind - 04/19/09 05:23 PM
It is after the dreaded April 15th and everyone now is going to be looking at a market with low interest rates and some astounding prices, pretty carefully. Those who have sat on the fences and have waited for the storm of the century are going to start getting restless, seeing the clouds spreading thin and the sunshine coming through.
 
We can all expect our business to pick up during the next couple of months due to various reasons, but one thing is for certain, this is a seasonal wind and you need to be sitting on the lake with … (4 comments)

How Can I Make My Property More Appealing? - 04/18/09 12:18 PM
In property as in life, you have one chance to make a first impression.  When a tenant sees your property, the first impression will often determine whether or not they want to live there.  Of course, the two major factors for a prospective tenants decision will be location and price.  Beyond those basic facts, the first impression will have the most impact.
Here are some questions for you to ask in yourself in reviewing your property's attractiveness:
Does the building look clean and tidy from the outside?  Do you have a fresh coat of paint, and is the exterior in good repair? … (0 comments)

Using a Realtor's Help to Find Tenants - 04/18/09 11:58 AM
As a landlord, you may be wondering if it's a good idea, or even necessary, to use a Realtor to find tenants to fill your vacancies.  Realtors are continually in contact with people who are in need of housing, and not all of those people are necessarily buyers.  Some wish they could buy, but don't have the required down payment available and therefore, at least for the time being, continue to rent.  Others have life changes come up quickly and need to rent before moving into the position to buy.  Whatever the case may be, your Realtor's job is keeping contact … (3 comments)

Tenants and Bankruptcy - 04/15/09 11:18 PM
Bankruptcy is an unfortunate reality becoming more and more common in today's trying economic times.  As a landlord, what do you do if a tenant files for bankruptcy?
When the new bankruptcy laws took effect in October of 2005, one important change was that a tenant's claiming bankruptcy no longer means a stoppage or delay of eviction.  If a landlord has already filed an eviction prior to a tenant's claim of bankruptcy and has been given a court order evicting the tenant, the filing of bankruptcy on the part of the tenant will not automatically delay eviction proceedings.
It is all in … (6 comments)

Remember to Replenish the Well this Spring - 04/15/09 10:40 PM
Springtime is a time for renewal.  It's a visible, tangible reality in nature and a time that inspires spring cleaning and starting afresh.  Are you ready to embrace all that spring offers?  Or are you feeling like you're stuck in a rut, burned out, and generally just rolling one season into the next.
Remember the old adage, "You can't go to a dry well for water."  It's so important to take the time to replenish your stores of energy, inspiration and creative thinking.  Most of us have lives filled with many pressures and responsibilities, deadlines to meet and families to care for.  … (4 comments)

Do It Yourself or hire help? - 04/14/09 08:49 PM
It's spring, and you might feel it's time to spiff up your property this time of year.  A landlord can save a lot of money by doing minor repairs and maintenance on their properties.  But what is considered "minor" by some may be a very big deal for others.  Here is a list from George Sheldon's book "The 250 Questions Every Landlord Should Ask" of some of the smaller items you can do on your own:
changing air filters in heating/air conditioning units installing batteries in smoke detectors simple landscaping such as trimming bushes and planting painting replacing and repairing toilet parts … (0 comments)

Renters' Insurance for Tenants? - 04/14/09 07:53 PM
As a landlord, it's a very good idea to ask your tenants to acquire renters' or tenants' insurance.  Many auto insurance policies offer renter's insurance as a "rider" on their policies for very little additional cost.  For a small monthly or yearly cost, renters' insurance will protect your tenants property against loss due to fire, theft, vandalism, and other causes.
How is it in your best interest as a property owner to require your tenants get this coverage?  In the event of loss or damage to personal property, a tenant with an insurance policy is much less likely to make a claim … (5 comments)

The Millionaire Real Estate Agent - Advertising - 04/12/09 12:31 PM
Doing my 2008 Taxes, I realized one thing and one thing only, the amount of money I have wasted on conventional print advertising. For the X amount of dollars I have spent on print advertising my return in 2008 has been 0 (zero). The dominant figures of our markets print advertising LA Times and some magazines have yielded 0 (zero) leads.
It is a good time to sit down and plan for 2009 and analyze new media and see what may work into our business model. The problem with Digital Media vs print is, Print cost money but less time and … (4 comments)

The Millionaire Real Estate Agent - Shifting Product Lines - 04/12/09 12:23 PM
Having been in real estate for over 20 years now and last 12 years being exclusively commercial, it is hard trying to add on new products and new marketing tactics to my business model. However, you need to read the writing of the wall, the crisis occuring is in the residential market and the government programs to rectify the situation are all being directed to the residential and new hoe buyers market. So I have 2 choices, I can sit on the sidelines and continue as business as usual, losing the new opportunities and business being created in this market or … (1 comments)

Taking Care of Common Areas - 04/10/09 01:36 AM
It is a landlord's responsibility to maintain all common access areas in a multi-family dwelling.  These include such areas as yards, walkways, laundry rooms or areas, stairs, driveways and common garages.  This can include repairs and maintenance, or cleaning of these areas.  Common areas must be kept clean, safe and in good repair.  You can either take care of these duties yourself, or hire a maintenance or management company to do them.  It may require daily, weekly or monthly attention.
The only case in which it's acceptable for a tenant to assume these responsibilities is if you have a contractual agreement … (1 comments)

Common Areas in Rental Properties - 04/10/09 01:34 AM
It is a landlord's responsibility to maintain all common access areas in a multi-family dwelling.  These include such areas as yards, walkways, laundry rooms or areas, stairs, driveways and common garages.  This can include repairs and maintenance, or cleaning of these areas.  Common areas must be kept clean, safe and in good repair.  You can either take care of these duties yourself, or hire a maintenance or management company to do them.  It may require daily, weekly or monthly attention.
The only case in which it's acceptable for a tenant to assume these responsibilities is if you have a contractual agreement … (1 comments)

When is it time to hire a Property Manager? - 04/09/09 02:30 AM
A Property Manager turns your rental property into a hands-free investment.  If you are looking to hand over the daily operations of your building to a company, or if you have invested in a rental property that is not where you live, then a property management company is for you. 
Below is a list of responsibilities a Property Manager would handle for you:
finding and screening of tenants providing lease agreements repairs and maintenance collecting rents handling complaints and problems handling eviction when necessary developing and enforcing rules and regulations Property Management leaves you with the sole responsibility of making an … (1 comments)

The Big IF in Representing Sellers in Today's Market - 04/09/09 02:14 AM
As an agent, residential or commercial, the rule of thumb is that it's always good to have listings.  The "Three L's," in Gary Keller's book "The Millionaire Real Estate Agent" refer to Leads, Listings and Leverage.  Listings are important.  They get your name out in the community, lead to more listings, and give you the opportunity to work your listing for potential buyers.  Most importantly, you are very likely to have a commission result from your listing.  In most cases, you can almost guarantee that eventually you will sell the property and make a commission.  But there's an if, and it's a … (0 comments)

Location, Location, Location for Rental Property - 04/08/09 01:20 AM
It's the real estate mantra we've all heard, "Location, location, location."  It's the first factor we think of when buying a home, but is it, or should it be, the first consideration when looking at investing in a rental property?
Renters are much like home buyers, in that location, a general feel for the neighborhood, and nearness of certain amenities are of primary concern when finding a place to call home, even it it's not a permanent one.  Of course, each person has a differing opinion as to what factors are most important, and price will be a determining factor for … (1 comments)

California First-Time Buyer Mortgage Protection Plan - 04/08/09 12:26 AM
As if interest rates below 5%, high inventory of homes and low prices weren't enough incentive, the California Association of Realtors just instituted a First-Time Home Buyer Mortgage Protection Plan.  With the undercurrent of fear still plagueing a lot of otherwise ready and willing first-time home buyers, this couldn't come at a better time. 
The Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP) was officially launched Friday, April 3rd.  Through this fund, should a first-time buyer lose their job due to a layoff, he or she may be eligible to receive $1,500 per month, for up to sixth months to help pay … (0 comments)

How much of a Security Deposit can a landlord require? - 04/06/09 12:03 PM
Unless otherwise stated in your local or state laws, a landlord can charge as little or as much as they want for a security deposit.  The standard security deposit is equivalent to one month's rent. 
You are not required to ask for any security deposit at all, though not charging a security deposit would not be advisable in any circumstance.  It's much harder to try to collect funds for damages, or for not fulfilling the terms of the lease, after a tenant is already gone.  If pets are allowed in your building, it's advisable to ask for an appropriate additional "pet … (3 comments)

Just the Facts, please. What questions can I ask a prospective tenant? - 04/06/09 11:44 AM
In the litigious world we live in, a landlord should pay careful attention to what questions he or she asks a prospective tenant.  Remember to keep it to the facts, and make sure all questions pertain to a tenants ability to pay rent and adhere to the rules and regulations of the building.  Any questions that can be construed as discriminatory are strictly prohibited by the US Department of Housing and Urban Development, otherwise known as HUD.  Below are some guidelines set forth by HUD:
HUD clearly states that no one may take any of the following actions based on race, color, national … (3 comments)

Mortgage Rates Drop to Lowest On Record - 04/03/09 05:17 PM
Mortgage giant Freddie Mac reported on Thursday that mortgage rates fell to an all-time low of 4.78% this week.  That's a more than a full percentage point difference from rates a year ago.  If you, or your clients, have been considering when to buy, the time is now!
Lenders have tightened their standards considerably compared to lending practices of a year ago, so loans with the most favorable rates are available to buyers with solid credit. 
There's even more incentive for first-time home buyers, with a Federal Tax Credit of $8,000 available to those who purchase before the end of the calendar … (0 comments)

The Millionaire Real Estate Agent - Science of Success - 04/02/09 09:29 PM
As in all things there is a right way to do something and a wrong way.  Doing things the right way can lead to positive results; finding a better way to do something leads to amazing results and finding the best way to do something leads to life changing results.
 
We are all born with an innate sense that spurs us to find the right way to do something.  At some point we all learned to walk through trial and error.  Eventually our toddler brains realized that if we shifted our weight in just such a way we could walk … (4 comments)

Southern California Home Buyer's Fair - 04/02/09 01:44 AM
If you haven't already heard, the California Association of Realtors and the Los Angeles Times is sponsoring The Southern California Home Buyer's FairApril 18th and 19th at the downtown Los Angeles Convention Center. 
And here is what I love most about this upcoming weekend event...the stated objective:  To address and alleviate fears about the current real estate market through educational "how-to" seminars on the home buying process.  Knowledge is power!  And if you, or your clients, have good credit and a modest down payment you may qualify for an amazing loan right now.  Rates are the lowest they've been in decades, … (0 comments)

Put it In Writing! Accepting and Rejecting Tenants - 04/01/09 10:20 PM
Whether accepting or rejecting prospective tenants, it's always important to put it in writing.  The initial news may be given over the phone, however you should always be sure to follow up with written correspondence, whatever the message you are conveying.
If you reject a  prospective tenant based on information gathered from a Credit Reporting Agency, the Fair Credit Reporting Act (FCRA) requires a landlord to send written notice informing the applicant of the reason for the "adverse action" of not offering tenancy in the building.  They applicant then has the right to obtain a consumer report from the agency used, … (1 comments)

 

James Engel KW Beverly Hills

Beverly Hills, CA

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Keller Williams Realty Beverly Hills

Address: 439 North Canon Drive, Penthouse, Beverly Hills, CA, 90210

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