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Neil Fjellestad's Blog

RentSenseBlog.com

By Neil Fjellestad | Property Manager in San Diego County, CA
  • FBS Rent Sense Points to Recent Fannie Mae Latest Economic Outlook as additional proof supporting projections in Otay Ranch

    Posted Under: Market Conditions in Otay Ranch, Rentals in Otay Ranch, Investment Properties in Otay Ranch  |  September 18, 2014 10:33 AM  |  13 views  |  No comments
    FBS Rent Sense Points to Recent Fannie Mae Latest Economic Outlook as additional proof supporting their projections being emailed to their clients

    3rd Quarter FBS Property Newsletter for Independent Rental Owners & Serious R.E. Investors

    “ All Economic Indicators Look Good for Long Term Ownership in Certain Regions of the U.S.”

    by Neil Fjellestad and Chris DeMarco

    Fjellestad, Barrett & Short (FBS)

    FBS has over four decades of real estate experience. This experience and expertise gives us a unique perspective which is straightforward, direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make long term ownership possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic "real estate doctrine" for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.

    While the forecast for the economy is positive, the outlook for the housing market has deteriorated as housing activity lost momentum and near-term indicators only suggest minor improvement, Fannie Mae said in its latest economic outlook report.

    “The August outlook supports our expectation that the economy will grow in the second half of the year at slightly above trend and push full-year growth into positive territory, albeit still weak by historical standards,” said Fannie Mae Chief Economist Doug Duncan.

    But when it comes to housing’s contribution to the economy, Duncan said, “We have downgraded our outlook following the disappointing housing activity seen during the first half of the year.”

    “In the first six months of the year, total sales have run below last year’s pace,” Duncan said. “Additionally, on the demand side, there appears to be a conservatism among consumers and their willingness to take on big-ticket purchases, such as homes.”

    And next year does not look to be too much better. “We currently estimate that 2014 will finish lower in total sales figures than 2013 – and that 2015, while stronger than 2013 and 2014, will not be the breakout year some are expecting,” Duncan continued.

    Despite housing’s lack of contribution to the overall economy, improvements in consumer spending, inventories and employment helped support an upward revision in growth expectations to approximately 3% for the second half of 2014, raising the forecast for all of 2014 by four-tenths to 1.9%.

    If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.


    Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos, apartments and commercial) in 69 zip codes throughout the region.

    Our renters can view available rentals, apply and pay their rent online. In addition, professionals will give them personal attention to walk the property, attend to needed maintenance items, review leasing documents and move-in. This is modern customer service required when rent is the #1 household expense. Our independent rental owners have their own personal portal where they are kept in the loop on all financial elements of their important real estate investment. In addition, a team of professionals advise on real estate decisions while managing every detail of the rental property.  Please visit us now. Our mobile version will come up if you visit us from your smart phone or pad www.fbs-pm.com 

  • FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors in Otay Ranch

    Posted Under: Agent2Agent in Otay Ranch, Rentals in Otay Ranch, Investment Properties in Otay Ranch  |  August 30, 2014 7:10 AM  |  24 views  |  No comments

    FBS Property Management eNewsletter for Independent Rental Owners & Serious R.E. Investors by Neil Fjellestad and Chris DeMarco

    We often get asked whether it is viable to purchase an individual condo or detached single home as an investment operating the property as a rental home. Then there are those that are currently in this position as they move from their current residence. Should they rent it out or go ahead and sell even if the sale won't achieve their goals? Their real estate agent is often recommending a sale and the owners are concerned whether this investment strategy as a rental can work over the long term.

    Our four decades of real estate experience gives us a unique perspective which is very direct and transparent. Well located real estate should be owned as a long term investment since it is the safest, most productive method for average people to build wealth. We also believe that property should be kept rented in order to make a long term hold possible since rent collected is helping to keep the property well maintained and paying down loan principal. Eventually the property will be debt free and the rent can become an excellent safe source of additional retirement income for the investor. We have taught and utilized this realistic real estate doctrine for decades while keeping our clients on track with comprehensive advisory services and "best practices" property management.

    So keeping our experience in mind and the fact that FBS currently operates rental property in 69 zip codes throughout the SD region we are encouraged by the latest findings coming out of the research department of Zillow. The following was published on August 15, 2014:

    Homeowners are faced with two options when choosing to move up the property ladder: sell the old home or rent it out. According to a new report from Zillow, homeowners might want to think twice before selling if they live in these 10 cities

    “When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow Chief Economist Stan Humphries.

    “However, the greatest returns are actually in markets like San Jose and San Francisco where there are short-term monthly losses, but the long-term earned equity makes them the best markets to invest in,” Humphries added.

    Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and 9.1% since June 2011.

    And on a local level, the Zillow Rent Index has gone up as much as two to three times that amount over the past year in rental hotspots such as metro Chicago (6.3%) and San Francisco (11%).

    These are the top ten markets in the country identified as those most likely to incur long-term financial gain (long-term monthly profit is defined as follows: This includes home equity gains, tax benefits and the difference between monthly rental income and mortgage payments after holding onto the property for six years on the median home)

    10. Honolulu: $2,512

    9. Sacramento, California: $2, 694

    8. Seattle: $2,861

    7. Boston: $3,009

    6. New York: $3,179

    5. Riverside, California: $3,659

    4. San Diego, California: $4,165

    3. Los Angeles: $4,328

    2. San Francisco: $6,078

    1. San Jose, California: $8,927


    Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos and apartments) in 69 zip codes throughout the region. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals

    If you're a qualified renter you deserve to be treated like the preferred customer you are.
    Educate yourself
    www.RentSenseBlog.com

    If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

  • FBS Apartments, Condos & Homes For Rent in 69 zip codes throughout the S.D. Region including Otay Ranch

    Posted Under: Agent2Agent in Otay Ranch, For Rent in Otay Ranch, Rentals in Otay Ranch  |  July 25, 2014 8:37 AM  |  30 views  |  No comments
    FBS Apartments, Condos & Homes For Rent in 69 zip codes throughout the S.D. Region

    FBS operates Rental Properties for Independent Owners in 69 zip codes throughout the region. We do so utilizing Industry Best Practices which has direct benefits to our renters. We have provided superior housing alternatives for more than 4 decades. Our available rental inventory changes daily. www.fbs-pm.com/rentals

    As professional managers we must stay on top of a variety of laws, regulations and housing codes that can be very important to our independent rental owner clients as well as our renters by choice. We review and update our forms, policies and routines with the the help of KTS. Kimball, Tirey and St. John. Here are some of the situations that we asked Ted Kimball to weigh in on -

    Landlord/Tenant Questions & Answers

    Ted Kimball, Esq. July, 2014

    Question: Can I accept rent after serving a notice for an issue other than payment.  For example: an unauthorized occupant notice.

    You should always check with a knowledgeable attorney to determine whether you should accept rent or not if the notice served was for something other than payment. Often times accepting rent after serving a notice can waive the notice.

    Question: At what point does my property require an onsite resident manager?

    If your property has 16 units or more, you are required to have a person onsite who represents the owner.

    Question: A resident at my property was taken to the hospital and passed away.  Since the lease requires a 30-day notice, what is the law as far as reimbursement of the deposit?

    When a tenant passes, the month-to-month tenancy is terminated 30 days from the date of the decedent’s last rent payment. Therefore, you have 21 days from that date to account for the security deposit assuming that you have taken over possession of the unit.  If anyone else is claiming a right to possession, you would need to go through the eviction process.

    Question: We rent garages out to our residents. One of the residents moved a bed and some furniture into the garage and we believe someone is sleeping there. What can we do to make sure we do not have any issues with the use of the garage as a bedroom?

    If you have a separate month-to-month agreement for the garage, you can terminate the garage rental with a 30-Day Notice to Perform Conditions or Quit to require the removal of the bed.

    Question: My resident is not parking in his assigned parking space on the property. Can we issue him a parking citation for parking in the wrong place?

    No, you cannot issue a parking citation. Only the local traffic enforcement agency has the ability to issue parking citations.  You can either issue a Notice to Perform Covenant or Quit if the resident is violating your parking rules, or tow the resident’s car.

    Question: I have a resident who has bed bugs in his unit. He refuses to allow access to his unit so that we can start treatment.  Can we evict him?  Can we charge for the cost of treatment?

    First, you need to send a Notice to Perform Covenant of Quit for refusal to allow access.  If your resident fails to provide access prior to the expiration date of the notice, you can start the eviction process.  As for charging the resident for treatment, if you can show that the resident is responsible for the infestation, you should be able to charge. It is important to have a professional pest control vendor who specializes in bed bugs that can provide you with a detailed report regarding the source of the infestation, how long the unit has been infested, and any other information which will help show that it was the resident who caused the infestation.

  • FBS Rent Sense RE Investor Alert in Otay Ranch, CA: SD County Apartment Association Reports Lowest Vacancy in 12 yrs

    Posted Under: For Rent in Otay Ranch, Rentals in Otay Ranch, Investment Properties in Otay Ranch  |  June 24, 2014 8:39 AM  |  155 views  |  No comments

    Making headlines this week, the San Diego County Apartment Association's Spring 2014 Vacancy and Rental Rate survey has been featured in local and national news about the region's rental housing market. Commentators noted the recent data indicating that the San Diego region is at near-record levels for low apartment vacancies and consumers agree with many complaining it has rarely seemed more difficult to find a rental unit. The survey joins a local debate about what policymakers can do to avoid a rental housing crisis in San Diego and encourage development of new rental housing stock.  

     

    The Vacancy and Rental Rate survey is made available to SDCAA members in the RentalOwner magazine.

    SDCAA's popular survey was featured in national and local outlets. Check out a few from the collection below.

    Click here to read the Trulia Property Agent's blog on the state of the tight San Diego rental market.

    Click here to see George Chamberlin's take in "Money in the Morning."

    Click here to read analysis from the San Diego Daily Transcript's real estate reporters.

    Click here to read UT San Diego's Jonathan Horn on the difficulties of finding a rental in San Diego today.

    View the Times of San Diego piece on our survey by clicking here.

    10 News San Diego featured the vacancy rate drop as a lead story in this week's newscast.

    Rent Sense: FBS & BBB Warn Against Rise of Rental Scams During Shortage

    To be a successful property management company in the modern economy you must become a respected rental housing provider in your market. Experience is imperative and solid reputation within the industry is important but beyond this you must engage the consumer audiences within your market.

    We maintain ourselves accessible as rental housing experts throughout the 69 zip codes in which we operate rental properties. We do this by writing an informative column for local newspapers, service several large blog audiences and participate in the Better Business Bureau to raise integrity standards. We also provide leadership to the San Diego Apartment Association.

    As a partner of the BBB, we value their continued support and education. The BBB is a trustworthy source to consumers. Read below a recent BBB article!

    http://sandiego.bbb.org/article/hand-over-the-keys-avoiding-apartment-rental-scams-43448

    We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished daily for longer than four decades. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals
  • FBS Property Management eNewsletter for Independent Rental Owners & Serious RE Investors in Otay Ranch, CA

    Posted Under: Rental Basics in Otay Ranch, For Rent in Otay Ranch, Investment Properties in Otay Ranch  |  May 30, 2014 6:37 AM  |  513 views  |  No comments
    2013 Property Manager Pricing Survey

    Please shop and compare; not just price but services and expertise. We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos and apartments) in 69 zip codes throughout the region. Our rental vacancies change daily. Take a peek today www.fbs-pm.com/rentals

    If you're a qualified renter you deserve to be treated like the preferred customer you are.
    Educate yourself
    www.RentSenseBlog.com

    If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

  • FBS Rent Sense Includes Investor Tax Planning: Improve Now & Add Future Value in Otay Ranch, CA

    Posted Under: Remodel & Renovate in Otay Ranch, Rentals in Otay Ranch, Investment Properties in Otay Ranch  |  May 21, 2014 6:52 AM  |  308 views  |  No comments

    FBS Rent Sense Includes Investor Tax Planning: Improve Now & Add Future Value

    We have built a healthy San Diego business out of advising independent real estate investors, acquiring and managing rental properties for clients while providing superior housing alternatives for qualified renters. We've accomplished all of this daily for longer than four decades and currently operate rental properties (houses, condos and apartments) in 69 zip codes throughout the region. Our rental vacancies change daily. Take a peek today
    www.fbs-pm.com/rentals

    If you're a qualified renter you deserve to be treated like the preferred customer you are.
    Educate yourself
    www.RentSenseBlog.com

    If you're a local rental owner now you hold a winning ticket if you want a preferred retirement. A preferred retirement includes a personal residence plus rental properties held without debt and managed by professionals. This financial condition allows you some important lifestyle choices where you live and how you live. The ONLY challenge according to Warren Buffet? Comprehensive and constant professional management of your rental business. The solution in San Diego is complete property advisory and management services by FBS.

    Rent Sense: Improve To Add Value
    By Neil Fjellestad & Chris De Marco
    FBS Property Management

    Now could be a good time to improve your property in order to preserve its condition overall, enhance its rental value and/or upgrade the appraisal for generating better mortgage terms. If you are looking for additional tax write-off why not re-invest in your rental property?

    Renters that rightfully want to feel value for their largest household expenditure are asking for repairs and improvements. Rental increases go down easier when improvements are apparent. Preferred renters stay longer when improvements are consistent. Items such as landscaping, exterior paint, new roofing, plumbing and electrical upgrades tend to benefit investors more than trendy renovations. Floor plan design items that delight residents and most often add value are kitchen or bathroom renovations and wall changes that create usable space and natural light.

    More rental owners are taking advantage of low interest rates and better loan terms to borrow against their property equity in order to make improvements. Of course, the interest and cost of improvements are additional tax benefits as well.

    Real estate investors need to remember that upgrades to property don't automatically yield an immediate increase in property value that is equal or greater to the costs of the project. Often, the benefits to your property are long-term. Savvy property owners always keep an objective eye toward the surrounding neighborhood and changing home ownership trends so they don't over-improve their real estate and/or pick the wrong improvements

  • FBS Apartments, Condos & Homes For Rent in 69 zip codes including Otay Ranch

    Posted Under: Agent2Agent in Otay Ranch, For Rent in Otay Ranch, Rentals in Otay Ranch  |  December 16, 2013 11:04 AM  |  556 views  |  No comments
    FBS Apartments, Condos & Homes For Rent in 69 zip codes

    FBS operates Rental Properties for Independent Owners in 69 zip codes throughout the region. We do so utilizing Industry Best Practices which has direct benefits to our renters. We have provided superior housing alternatives for more than 4 decades. Our available rental inventory changes daily. www.fbs-pm.com/rentals 
     
    Rent Sense: Pet-Friendly Requires Ownership
    By Neil Fjellestad & Chris De Marco
    FBS Property Management

    Q. I have an apartment community that is “pet friendly”. My problem is this. The pet owners on the 2nd floor are letting their dog urinate and defecate on the balcony. It falls on the neighbor’s patio below. What is the best way to proceed?

    A. Considering that 60-70% of renters have pets we understand the decision to be “pet friendly”. However, this marketing decision requires strict enforcement of lease and pet addendum policies that ensure quality living for all residents. First, review your existing documents then write a letter asking your residents on the second floor to conform to what the documentation requires of pet owners. Make specific references if your lease spells it out and include a copy of those references. If the language is more general and/or vague you will still be specific in your enforcement. Let there be no mistake, this pet is infringing on the lifestyle of the resident below and that cannot nor should not be allowed to continue. Furthermore, if this should happen again the pet can be removed from the property. As a policy consideration going forward you might restrict pets to the first floor only or designate certain apartments, floors and/or buildings as “pet-friendly”.

    Let’s get back to your residents on the second floor. If they don’t want to or can’t comply they will need to look for a new home. If their situation can be resolved by transferring within the community to a first floor apartment this might be another option depending on your availability and length of their residency. The cost should be their responsibility and could be a less expensive option than moving to a new community. We’re pet lovers and respect others that are not. In an apartment community and in a neighborhood responsible pet ownership is the absolute standard if a “pet-friendly” policy is to be maintained while respecting the rights of others.

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