Spend enough time looking at Los Angeles apartment listings and you will find one that says something like “Property in REAP. Looking for an all-cash buyer”. Or, much worse, you might get a letter from the Los Angeles Housing Department (LAHD) threatening to place your property in REAP if you don’t comply with their demands. … Continue reading “What is the Los Angeles REAP program?”
Category: Property Management
Los Feliz Rent Survey – July 2012
It’s time to continue our regular survey of Los Angeles rents. We do these surveys to give renters, landlords, developers, lenders, and appraisers access to up-to-date information on the rental market. This time, we’re focusing on Los Feliz. Things to note: This was a whopper of a survey, because Los Feliz is a huge neighborhood, … Continue reading “Los Feliz Rent Survey – July 2012”
How you get them to believe a $1MM building is now worth $2MM
When I re-position a building, the numbers often look something like this: I buy the building for $1MM, spend $500k on renovating it, and then ask a lender or buyer to believe that the building is now worth $2MM, based on the rents I am achieving from the new tenants. Now, obviously, the lender or … Continue reading “How you get them to believe a $1MM building is now worth $2MM”
All about earthquake insurance
Potential apartment building owners occasionally ask me about earthquake insurance, which is not included in a standard property insurance plan. It’s kind of scary for owners with commercial mortgages, because recourse loans require you to pay up, even in the event of the building being seriously damaged or destroyed. I’ve never bought EQ coverage … Continue reading “All about earthquake insurance”
Beware of laundry leases!
When you first buy a building, you’re likely to be approached by someone, often the management company you hire, about signing a laundry lease. It will be pitched to you as a convenience for your tenants and an opportunity for you to make some extra cash. Be careful! What’s a laundry lease? It’s an agreement … Continue reading “Beware of laundry leases!”
Echo Park rent survey – May 2012
Just completed our semi-regular rent survey for Echo Park north of the 101, and the results are pretty interesting: Median asking rents for 1 bed / 1 bath apartments was $1,450, up a whopping 26% since February Median asking rents for 2 bed apartments was $1,995, down by 15% compared to February Median asking rents … Continue reading “Echo Park rent survey – May 2012”
When to refuse rent from a tenant
You might think that your job, as a Los Angeles landlord, is always to get your tenants to pay rent. And you’d be wrong. There is one situation where you absolutely do not want to accept rent from your tenant under any circumstances: When you have a tenant you want to get rid of and … Continue reading “When to refuse rent from a tenant”
Follow Neal and Jodi’s Landlord Adventures
Jodi and Neal, friends who I helped buy a duplex in Echo Park a few months ago, are writing an awesome blog documenting their experiences as first time landlords: soweboughtaduplex.blogspot.com. The most recent entry describes their first landlord emergency, involving a clogged pipe and a weekend call to the plumber. It’s a great reminder that … Continue reading “Follow Neal and Jodi’s Landlord Adventures”
Why we have video cameras at our buildings
Hint: It’s not what you think. We have cameras because they’re very, very useful in resolving disputes with tenants. Here are a few examples: We had a tenant in 2516 Kent St. who insisted that she didn’t have a dog. She hadn’t disclosed a dog when she applied for the apartment and certainly hadn’t paid … Continue reading “Why we have video cameras at our buildings”
When to hire a professional to lease your units
I’m all in favor of new landlords learning the business by doing. It’s only by making mistakes that we learn. But there is one scenario where I definitely recommend new landlords get some help: When they absolutely must, at all costs, lease out a unit. No one wants to buy from a desperate salesman. Period. … Continue reading “When to hire a professional to lease your units”