We recently had a house flood when a valve behind the toilet busted in the middle of the night.  A call to the owner had to be made to tell them that the house had flooded and the cleanup costs would be considerable.

Of course, no one wants to make that call, to tell the owner the bad news.  

But, when the call is made, I think it should be as soon as possible and with as much information as possible.  The information should includle the initial known costs and the likely future costs to complete the repair.  It should also be noted that the repair and cleanup is a possible insurance matter.  That might soften the blow to the owners pocketbook.  

I think the best way to handle this is to put yourself in your clients shoes.  "Mr Owner, I know this is upsetting, and I am upset too.  I am sorry to have to deliver this news to you.  Here is how we can solve the problem"

Having the solution along with the problem will go a long way to making the call much easier to swallow.

I am used to getting blamed for all sorts of things.  The air conditioner goes out and it is my fault.  The house won't rent, it is my fault.  The rent check bounced, it is my fault.  I don't return phone calls, wait, that one actually would be my fault!  But, most of the time I get blamed and yet I am just the guy you can reach.

The newest thing to blame me for is a foreclosure.  Tenants think that we should know what is going on with the house payment at all times.  Well, most of our clients make their own house payment.  I collect the rent and send the proceeds to my client.  I do not make the mortgage payment in most cases.  

Often times, an owner goes into default with their bank only to recover and start making payments again.  The deal is that until the house actually becomes owned by the bank, it is owned by our client.  Until the bank takes ownership or enforces an assignment of rents, the rent must be paid to that owner or the tenant is subject to getting evicted.  

So don't blame the property manager.  Many times the first one to hear (except the owner) is the tenant when the house is posted with a Notice of Default.  Once the sale takes place there will be ample time for the tenant to negotiate a move from the property.  

My sister has a son who is 15 years old.  He is freshman in high school, B+ student, and an athlete.  His mother is worried about his choice of friends as they seem rude and headed for trouble.

I took him golfing this weekend and told him 

1.  Keep your grades up as it gives you options for college.  Your goal is to get into college.

2.  Stay in sports and do what is necessary to get better in the sports you like.

3.  Once you get your drivers license drive carefully and slow.

4.  Work on getting along with girls.  Date them and make some friends besides your guy friends.  Stay away from sex.  Too much risk at your age.  It is not cool to get someone pregnant or to get STD's.

5.  Don't try to be too cool, the nerds of the world tend to take over.  Make them your friends.

Most of our clients come to us because they want to have their property managed to its’ best advantage. They know HomePointe will achieve the maximum market rent in the quickest time. They also know that HomePointe will get them good deals on maintenance and will not recommend unnecessary repairs. Finally they know HomePointe will be available to the tenant 24/7, pay the property’s bills and get them their proceeds in a timely manner. Peace of mind without having to be available for a very reasonable price.

Some potential clients do not have time to do all the work necessary to locate and screen for tenants, but still do not trust that a property manager, even HomePointe which rents to nearly 1,000 tenants a year, will do as good a job as they will. They think this because they know that their motives are only good, but the property manager may be just trying to earn a commission. This thinking is faulty since property managers build their reputation on their ability to screen and select qualified applicants. Just renting a house for a quick commission is not only unethical, it is bad for the business and its’ reputation.

In addition to this, possible Fair Housing violations are at risk for both the property manager and the owner that shares the screening and approval of rental applicants. HomePointe sets the standards for each property ahead of time. When a person applies to rent the property, they know what the standards are. HomePointe takes the application and verifies that the standards have been met. We check income, credit, and rental references and/or ownership history. If an applicant passes we rent to them. If an owner wants to have the final say, what will the owner be checking? If HomePointe has approved the application and the owner declines it, what will the tenant say? I think they have a good Fair Housing complaint. In reverse, if HomePointe declines the application and the owner approves it, what standard was ignored? Other declined applications may have a Fair Housing complaint.

For these reasons, HomePointe will not allow an owner to create a situation that may drag both HomePointe and the owner into a Fair Housing hearing and possible heavy fines.

HomePointe has been locating, screening, and selecting tenants since 1982. It’s the lease we can do! HomePointe, the place to be.

Effective immediately an REO Lender or buyer who buys a foreclosure must give a 90 Day Notice to Terminate any tenant where the lease is a month to month agreement.  It does not matter whether the buyer is an investor or owner occupant.  If the buyer is an investor the tenant can now stay until the end of any written lease they have.  

This applies to foreclosures of federally related mortgage loans or residential real property (FHA, VA, FNMA, FHLM).  

The law expires December 31, 2012.

I have noted recently that there is a feeding frenzy going on with REO sales at the bottom end.  Anything less than $100,000.00 list prices are getting mulitple offers within days or even hours of the property being listed on MLS.

I have heard that a lot of REO's are coming, but the lack of them right now makes it difficult to acquire properties.  

This is a sure sign that we have hit bottom in that market.  It will hold true as long as there are renters to fill them.

InAlliance, a local non profit agency that supports people with disabilities in the greater Sacramento area is hosting a fundraiser this coming Friday.

There will be 6 professional chefs who will have 45 minutes to turn 5 surprise ingredients into 3 power packed dishes in front of 1 live audience.

You can sample food, beer & wine from over 50 vendors.  Tour the automotive museum as well.

More information at www.ChefEvent.com or call 916-381-1300 x 170.  Tickets are $50 per person.

Location:  Towe Auto Museum, 2200 Front Street, Sacramento, CA  

While HomePointe does accept any legal source of income, our clients reserve the right to not participate in the Section 8 Program. The Section 8 Program involves signing a government lease, not ours. It also involves submitting to mandatory inspections both at move in and annually. Finally, it also mandates longer notices than currently in force in the State of California.

Here is a quote from the California Apartment Association for your review.

"Can I turn down a prospective resident because he/she receives a federal or state subsidy?"

No. State law, defines source of income as “lawful, verifiable income paid directly to a resident or paid to a representative of a tenant.” The intent of this law is to protect residents from discrimination in housing based upon their source of income. The law, however, does not require an owner to participate in the Section 8 rental assistance program.

www.caanet.org

In your market, what is the average cost per hour for good, qualified service vendors? Assume a sole proprietor with company name, clean late model service vehicle and insurance, experienced and capable in one or more of the main trades such as plumbing, appliances, HVAC, electrical, etc.

$15 hr or less = 0%

$15-$25 per hour = 4%

$26-$35 per hour = 12%

$36-$45 per hour = 12%

$46-$55 per hour = 8%

$56-$65 per hour = 28%

$66-$75 per hour = 20%

$76-$90 per hour = 8%

$91-$120 per hour = 4%

$121 per hour or more = 0%

At HomePointe we employ both outside contractors and we have our own repair service that goes by the name RAM Property Services. Our rates tend to fall into the middle categories with some rates as low as $50.00 and hour, most at $65.00, and some specialty work at $85.00 an hour.

Keep in mind that RAM Property Services is licensed and insured. Make sure the labor you use on your properties is as well.

Our weekend showing schedule is published on Saturdays in the Sacramento Bee's Real Estate Section and is published 7 days a week at our Website. Clink on Residential Rentals. You can see our ad in the Sacramento Bee here.

Our office works 7 days a week to get it's rentals shown and rented. Our office rented out 80 properties in April 2009 and we are on target to rent more than 60 properties in May 2009. Why not work with the most aggressive management company in town to both find a rental and to get your rental filled with a great tenant?

HomePointe