Property Management and Investor Information: May 2009

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

Lucas Machado is a credentialed teacher in the Sacramento Unified School District working with students with special needs.  Over the summer he offers private reading and math skills tutoring as well as any other subject for grades K-12.

You can contact Lucas at 916-995-5123 or email him at LjmTeacher@yahoo.com. 

Struggling students

Students with special needs

Students looking to keep their edge

I have been golfing now for 8 months now.  I have noted that getting better is about following a plan that is quite simple.  The interesting thing is that the same plan works for any other sport and my business endeavors.  

I have employed this simple plan over the years and it works.

Here is the plan:

1.  Learn the skill you want to know from someone that knows it well.  That could be a book, a video, a colleague, taking a class.  

2.  Put the skill into play.  Practice the skill both privately and in live situations.  Some ideas in business have to be tried on a trial basis to see how it works out.  One example might be offering a new service.  Try it on a few new clients to see how it is received and if it sells.  

3.  Make any adjustments you deem necessary while employing the new skill.  Each of us is different and we all work in different markets/situations.  Not everything a teacher teaches will work for everyone.  So modify based on the results you are seeing.  Modify to improve.

4.  Continue the cycle by going back to steps 1-3.  Keep listening and learning and modifying.  This is a career long process.  Not everything has been invented or discovered and you may be the next one to make a breakthrough.  But it won't happen unless you continue to learn and improve.

 

 

I just got home from Portland, OR where I was the keynote speaker for the conference held May 13th-16th at the Marriot downtown on the waterfront.  

It was a attended by over 120 property managers from Oregon, Washington, Idaho, Arizona, and Nevada.  The conference included a vendor show, designation classes, and speakers on various property management related subjects.

My talk covered the five fundamentals every property manager should employ to be a success.  These include Rental Pricing, Marketing, Organization, Flexibilty, and Goal Setting.  Executed properly, these five elements will make any property manager better at their job which will help them better serve their clients.

One thing true NARPM members subscribe to is not competing against one another.  There is plenty of business for all of us and it does not serve any useful purpose to knock each other's service.  By openly sharing we all are able to improve and therefore better serve our clients.

Many years ago I started my property management business with just myself and my wife.  That was 1980.  I grew my client and account list and found that in order to keep up with the demand for our services we would have to hire more people.  We did that and 29 years later my wife and I still run the company.  We have added my sister, my brother, two nephews, my daughter, and on occasion my son (he is a school teacher but helps out when he can).  

We also employ a number of other great people in our 4 offices.  These include friends I have met and hired and people that I have hired and they became friends.  

Property Management is not an easy business to run correctly.  We do our best to stay educated (I have two of the industry's certifications, Certified Property Manager, CPM, and Master Property Manager, MPM).  This is important to know for anyone seeking the services of a property manager.  Do you want to use the guy that just put out a shingle or the guy that took and takes the time to learn the profession from the best organizations in the country?   Our company is also certifed (CRMC).

We give back to the community as well. I am on the board of directors at Housing Now , a local non profit serving the housing needs of persons with disabilities.  I have also served on property management boards both locally and nationally and been the national president of the National Association of Residential Property Managers.

Being a small family business gives us the satifaction of knowing that our success is achieved by our daily effort in education and service to our clients.  We don't claim to be the best.  But we do claim to try harder.  When we falter, we do not quit, we get up, correct our mistakes, and achieve the intended goal. 

www.HomePointe.com

 

 

HomePointe Property Management in Sacramento, CA had a great month renting homes in April 2009.  We accepted 79 deposits out of our three offices which are located in Sacramento, Roseville, and Orangvale.  We rent property from Lincoln to Elk Grove, and Cameron Park to West Sacramento.

It is a testimony to our the hard working staff at HomePointe from our maintenance office staff of 5, our 10 maintenance technicians who prepare our properties for rent, our 9 property managers who show our vacancies, our 5 staff who process all applications in house, and our efficient accounting staff of 4 who make sure the funds get deposited, bills paid, and our owners get their proceeds.  Their coodinated effort helps our many property owners see low vacancy rates and great pricing on the quality work we perform.

Properly priced property is renting to good tenants.  Give us a call for a free rent quote.