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Have You Heard..? It’s a Renter’s Market Out There

Rental Market Update  –  Is it picking up or not ?   Phone Traffic is the Clue !

As a whole our phone traffic has been a little better this week.   Prospective tenants have been searching new places to move to and we’ve noticed they ask a lot more questions regarding amenities and rental terms such as who is responsible for water, sewer and garbage fees. 

upward graph

We’ve had calls on a condo that’s been vacant for about 45 days that was finally shown today for only the 2nd time.    We’ve had several new inquiries on a duplex in Roseville that’s also been vacant about 45 days or so and we’ll be showing this weekend to a couple of potential tenants.  We’ve had a decent amount of showings for a Town House Apartment in an 8 unit complex in Cameron Park… one gal has looked at it 3 times now.  We’ve rented up 2 of them in the last 2 weeks after we lowered the rent schedule.

We took a Holding Deposit on a Town House apartment in a small 13 unit complex in Roseville the day after the other tenant moved out.    We’re now in the process of getting it “rent ready”.    On this complex, we had to lower the rents to a new “price point” that finally worked.   Since then, we have rented up 3 units in this complex that were vacant for over 45 days.

A small amount of calls have come in on some  2 bedroom 1 bath flats in Citrus Heights that have been vacant for 2 months…but no applications to rent.    The reason for this in their case is because of a lack of “amenities”, in my opinion.   So when you couple that with a “tenants market”, you’ll find that good prospective tenants are looking for more value and utility for their money..

The only way to compete is to offer a “rent special” at move in, or perhaps lowering rents if you have an extended vacancy period.

 

Make it a great day….

Ed Favinger, Broker, CRS, GRI

favinger@rwnetwork.com    916-203-1260

Cash Is King in Sacramento Region’s Duplex – Four Plex Market..!

Fourth Quarter Stats show just over 50% are All Cash Offers.

I think one of the reasons you are seeing more cash deals is because of the tight restrictions on “investor” financing that I will have more to say about later.

If you have been looking for an investment property and haven’t been able to get in the door because of competition of other Investors, don’t feel like it’s something personal with you and your situation.   It’s a function of our current Market & Economy.

I have the list of Closed Sales for the 4th Quarter that shows:  List Price,  Sold Price,  Days on Market, Type Financing if any and the “reported rents” in some cases.   I have the Summary Below.  Click Here for the Closed Sales List in PDF format

4th qtr 2009 

I hope you take a minute to look at the list because you’ll be amazed at how many of them sold for well over asking price.

 

Make it a Great Day

Ed Favinger, Broker       favinger@rwnetwork.com, 916-203-1260

Plumbing Leak Follow Up – What We Did To Clean Up

 

A Follow Up to my post of December 6th …..

While I did give you a tip regarding shutting of water supply lines when you are going to be absent for a long period of time and you don’t have a “house sitter”, I didn’t tell you what we did to clean up the mess.

The Problem…?

Was that a water supply line to the upstairs Master Bathroom Toilet broke and the resident there said she estimated it leaked out for at least 20 minutes before she noticed water dripping down stairs through an “air vent”. 

She immediately turned off the water supply line located just below the toilet and then got out her trusty old  “shop j0349397vac” to get the water up.

 

While she did what she could, we had to call out a professional carpet cleaning company to extract the water that had filled up a large master bathroom that was carpeted and then traveled further to about 2 or 3 feet into the bedroom itself.

The Solution…..

Our experience tells us just extracting as much water as you can, you never get it all.  The carpet and pad will be wet and will cause a mold and mildew problem if not properly treated and dried quickly.

Advanced Carpet, our “preferred vendor”  extracted all the water that they could, then set up huge fans to speed up the evaporation process to get the area dry.   The next day they came out and cleaned the carpet of any residue or coloring.

While she was inconvienced by it all, the resident thought they had done a great job in restoring the area back to it’s previous condition.  

We’ve been using this company for about a year now.  You can find them on the web here at  Advanced Carpet & Upholstery Cleaning and their local phone number is 916-989-2146.   They’ve got a “helpful hints page” that you might want to also check out. 

If you call them for service and mention our property management company’s name, Haven Properties, they will offer you further discounts beyond their posted coupon prices. 

Finally, let me tell you that we think Advanced Carpet’s pricing is just about the best in the area so check them out for your “Christmas Party” carpet cleaning or call them in an emergency for water extraction if this problem ever happens to you.

Make it a Great Day

favinger@rwnetwork.com – Mobile 916-203-1260

 

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Plumbing Leaks Can Ruin A Vacation – Here’s a Tip to Avoid a Mess

What Happens When A Water Supply Line Leaks & You’re Not Home…?

Before I answer that question, let me implore you to obtain and maintain a Hazard Insurance policy for your rental properties that does cover water leaks.

So now let me answer the question…    The Answer is..?   There’s gonna be a whole lot of water spilling into the room and spreading throuthumbnailCA5LCWSF - aghout the house until it’s turned off.

If this is a leak for example,  from a Toilet Water Supply line in an upstairs bathroom,  which recently occured in a rental home here in Folsom that we manage, the water will find a way downstairs…  In this case, it came through a vent and dripped in an area right below.

We were lucky because the tenant was home and was able to turn off the water supply valve.   This lady estimated that the water had to have been leaking for about 20 minutes.

An emergency call went out to one of our vendors to extract all the water we could and place fans to dry up the carpet to prevent mold and mildew from forming.

We were lucky because this lady just happened  to be home.

So here’s the tip… If you are going to be gone for several days and do not have a house sitter, you might want to consider turning off the water supply lines in the house,  or… just turning off the water supply line at the gate valve.

I can’t imagine the damage that would have occured if this tenant had not been home and even if you have insurance, there is the hassle of dealing with it all.

Make it a Great Day

 

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A Great Duplex + Nice Street – Poor Curb Appeal = Low Price

An Opportunity on One of My Favorite Streets – An Area that does not turn over often.

So here’s a monster duplex that just came on the market in Carmichael.   To get to this property you have to drive by some really beautiful single family homes.   When you first turn on Oakgreen Circle in Carmichael, you aren’t sure if you are looking at a neighborhood of duplexes because of the lush landscaping and mature trees and shrubs.

This property just came on the market yesterday and is listed at $235,000.  With a Gross Annual Income showing of $30,600, you get a deal at roughly 7.6 GRM.  The configuration is a 1,600 sq. ft. 3 bedroom 2 bath, 2 car garage and a 1,354 sq. ft. 2 bedroom 2 bath 1 car garage … 

You can see from the pictures it’s got some vaulted ceilings and at this price it’s got some upside potential.   It’s too bad that either the owner or the tenants leave all this much “stuff” laying around the premises and allow what could be nice landscaping to be ignored.

Cash Flow Estimates will come later.

Make it a great day.

Ed Favinger – Email: favinger@rwnetwork.com – Mobile (916) 203-1260

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Is Curb Appeal Important for Duplexes or Any Investment Property..?

 

A Side by Side Comparison – Which One Would You Live In…?

I was out and about driving in the area looking at property and saw two Duplexes side by side and thought I’d show them to you here.

Let me guess which place you would want to live in.

MVC-001S 

DUPLEX NO. ONE

As you can see this one is nicely landscaped… well manacured that shows “pride of ownership” because it’s got an Owner that runs it right. 

 

In fact when I took this picture today she was getting a bid to have the exterior painted.   She got a chuckle when I told her why I was there to take a picture.   

  

MVC-002S

DUPLEX NO. TWO

 

This Duplex is located directly next door and to the right of the picutre above.  In my opinion this not only impacts the rental value of this property, it also effects the rental value of the one above as well.

 

  

MVC-003S

 

DUPLEX NO. ONE 

A FULL VIEW FROM ACROSS THE STREET

  What is there negative to say about this property?    Yea… maybe it does need a new paint job to update the curb appeal a bit.  This owner knows the value of putting money back into an investment to get a consistant return.  That’s why she was there with a painting contractor to make sure it’s kept up. 

   

MVC-006S

 

DUPLEX NO. TWO

A VIEW FROM ACROSS THE STREET

While I don’t know how often the owners drive by his property, if they don’t have time…?   Maybe he should hire a Property Manager that would have this responsibility. 

I think you would agree,  that if you as an owner,  don’t maintain or care about the curb appeal of your property, don’t expect a tenant to pick up the slack.   Chances are they will make it worse if you don’t have expectations and rules for them.

Folks…  You know… I’m not saying that you have to spend a lot of money on landscaping, but an initial investment in some trees, flowering shurbs, a timed sprinkler system and some lawn area will pay you back big time in the form of higher rents paid by quality tenants.   They will pay you on time and when you go to sell this asset…?  Ask your Agent or Broker how much the Sales Price is affected if it’s got a lush landscaped “curb appeal”.

Make it a great day…!

 

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First Time Buyers and More Get Tax Credits

Fresh from the National Association of Realtors.

Check it out

Make it a great day…!

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