Jun 22

Adversity For Some Brings Opportunities For Others

By Property Management ProfileNo Comments

Author: Lambert Munz 

This economic crisis has caused a great deal of hardship for many. Losing a home and losing a job is devastating. For others, this may be an opportunity to buy affordable homes that were unreachable before. If people have a job and feel comfortable with the future, now is the time to take advantage of the low prices and interest rates. 

For investors, now is the time to buy investment property if they are able and ride on up the increased values that will happen again. 

I knew the market would eventually crash, and when a realtor friend asked me if I was planning to “move up” using all of the equity I had acquired with my present home, my response was, “my home is overpriced and so are the others”. I remember Alan Greenspan, the former fed chairman, stating that real estate would experience a soft landing. I thought, well, he is an expert he should know. 

I secretly felt that the market would crash, but didn’t want to appear negative to my real estate buddies. Anything that increases in value that quickly will come down hard later, especially when the values are higher than the median income of the community. 

What then, was driving the market?

Speculation along with fraudulent loans made to unqualified people. Speculators sell to other speculators until the last one gets the one before the crash. 

I feel very lucky because I bought my home nine years ago and the value went way up but later dropped about $200,000. Yet, I still bought $55,000 less than the current value today. Some financial planners will tell you to not pay off your home quickly, but rather to invest in more lucrative investments that will return more than what your current interest rate is along with the tax deduction. I wonder what they are saying today. 

I am not a financial planner, but my advice is to pay your home off as soon as you can. Some will say I will lose my tax deduction. Think about this scenario. You are paying $1.00 and depending on which bracket you are in, for example 30%, you are saving 30 cents. I have a plan for you – pay off your home and pay me the amount of your former house payment for real estate services and deduct 30 cents for each dollar you pay me. You will have a free and clear house and still have your tax deduction. 

My best to you and good luck in the future. Good times will return again. 

My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Dept of Real Estate. I currently am President of Arbour Real Estate Management, Inc. Background was as a Buyer’s Broker for Investment properties. Currently a property manager and have been for 27 years. We offer residential and commercial management services. I hold two designations: RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers. Past President of NARPM Sacramento chapter. My services are available in Sacramento CA. Visit my web site at Arbour Real Estate Management, Inc.

Property Management
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Jun 22

Expert Tenant Cons – How Do They Operate?

By Property Management ProfileNo Comments

Author: Lambert Munz 

Eviction is a slow process that gives tenants anywhere from thirty days to four months of free living while the courts walk through the legal steps. Most of the time, the tenant leaves in the middle of the night, right before the final hearing. Even though the landlord gets a judgment, it becomes a useless piece of paper. In order to collect the landlord must track the suddenly invisible tenant, find any assets or locate the place of employment. 

New right to privacy laws make tracking difficult. After all, where does the tenant go, now that they no longer live under the evicting landlord’s roof free, like an adopted wayward adult child?

There are two types of evicted tenants. The first is seriously down on their luck, maybe the tenant lost a job, had a family crisis or severe illness. Regardless of the reason, they have no experience living life without an income. This type of person pays as much as they can, but it never is enough to make a full month’s rent. When eviction time comes, they move in with a friend or family, live in their car or find a location in a vagrant village or homeless shelter. 

The second class of evicted tenants is the professional deadbeat. They not only know the system, they perfect their use of it like a fine art form. This group has a job when they move into the rental, they have plenty of cash in their hand and they pay on the spot. Their last landlord sounded sincere when you called, gave them rave revues and had a sound reason that the two parted ways. They had adequate experience on the job, working for a small company for several years. Sometimes this might not be the real income source. These may not be legitimate people or real jobs. They are friends and family that pose and give false information. 

The second class of evicted tenants never leave the previous landlord on the application, because they were evicted for past due payments. They make it their profession to move every seven months. The pattern is clear, two months payment in advance as a deposit and the first month’s payment. The second month comes a little slow and into the third month a partial payment is made. Eventually the well dries up and the landlord dips into the deposit. The tenant lived at the rental long enough to use the deposit and remain four months in arrears. They move right before the enforced eviction. In the mean time, they saved enough cash to move to the next unsuspecting landlord that doesn’t have access to their history and begin the scenario again. 

How does this happen? Most landlords are individuals, not companies or corporations with access to all the background information and credit reporting. These are “mom and pop landlords” that want to believe the person that so convincingly tells the tale. They have no weaponry against the professional deadbeat that hones the story to perfection. 

The wayward tenants usually find that the individual managing their own property is an easy mark and they know what to say to make the situation appealing.

Without a thorough background check by a professional, the landlord loses valuable time and money with these professional cons. They have the cash and the hungry landlord can’t resist the temptation to move them in now. Especially, if they have been suffering a long term vacancy.

These pros don’t call property manager ads, but purposely look for ads without agent identification. The law requires that an agent Identify themselves in an ad If not by a company logo than with the word – Agent.

My eviction attorney informs me that he evicts the majority of the people are the same ones over and over again.

Be careful out there. 

My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Department of Real Estate. I currently am President of Arbour Real Estate Management,Inc. Background was as a commercial broker. Currently a property manager and have been for 27 years. We offer residential and commercial management services.I hold two designations – RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers.Past President of NARPM Sacramento chapter.My services are available in Sacramento, California. Visit us at Arbour Real Estate Management, Inc. 

Learn more about Arbour Real Estate Management, Inc.

Property Management
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May 03

Commercial Property Manager

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Professional property management is an essential aspect of real estate, and a commercial property manager will help both property and business owners to increase profitability.

A commercial landlord may own several properties. Owning property involves more than just collecting rent and calling it a day. One must maintain positive relationships with tenants. Concerning commercial property, location and maintenance are two very important factors that a business owner will consider before renting commercial property.

Maintaining Commercial Properties

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The maintenance of commercial properties includes frequent inspection to make sure all regulations are being met and that there are no problems and taking the steps necessary to fix any problems that may arise. With the assistance of a commercial property manager, you don’t have to worry about a thing!

Business owners will suffer profit loss in a commercial residence that is not as well maintained as a professional management company can assure. In the long run, a failing business can also affect the rental capabilities, so it is important to give the best you can for your tenants.

Maintaining Financial Records and Other Book Keeping Tasks

Not only does a commercial property manager take care of maintenance and repair of property, but they will also relieve the financial burden of being a commercial property owner. From writing and enforcing lease arrangements or changes in rental agreements to the book keeping and other financial aspects, a commercial property manager will help make sure your rent is paid on time, your expenses are recorded appropriately, and you’ll be prepared for tax season without any headaches.

Giving You Total Freedom

One of the greatest things about hiring a commercial property manager is that it gives you total freedom. You can purchase more properties, and geographic location is no issue. With a commercial property manager on your side, it’s a small investment with a big pay off. You can sit back and relax and collect your income without any hassles.

In fact, you can even take a vacation to the Bahamas!

Choosing a Commercial Property Manager

Naturally, you will want a commercial property manager who works for you as well as for your clients. When you choose a commercial property manager, you will trust that individual with your reputation. The cost of a commercial property manager should only be a small fraction of the contributing factors to your decision.

You will also want to look at the experience of that commercial property manager. How long have they been in business? How many referrals can they provide? Don’t be shy about speaking to those referrals as well.

The commercial property manager you choose will be managing your book keeping, maintaining and repairing your property, and will be responsible for rent collection and enforcement. Choose a commercial property manager that you can count on.

Property Management
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