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Neil Fjellestad's Blog

RentSenseBlog.com

By Neil Fjellestad | Property Manager in San Diego County, CA
  • FBS Apartments, Condos & Homes For Rent in 69 zip codes including Hillcrest 92103

    Posted Under: Agent2Agent in 92103, For Rent in 92103, Rentals in 92103  |  December 18, 2013 10:24 AM  |  734 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.

  • Fjellestad of FBS Property Management in Mid-town & Uptown 92103 neighborhoods interviewed on San Diego television.

    Posted Under: Remodel & Renovate in 92103, Rental Basics in 92103, Investment Properties in 92103  |  December 2, 2013 9:41 AM  |  670 views  |  No comments
    Fjellestad of FBS Property Management Interviewed on San Diego television.
    http://www.youtube.com/watch?feature=player_embedded&v=Dm9tfbSxpDs
  • FBS Rent Sense in Hillcrest 92103 neighborhoods: Manage Roommates

    Posted Under: Agent2Agent in 92103, Rentals in 92103, Investment Properties in 92103  |  November 18, 2013 12:05 PM  |  742 views  |  No comments

    Rent Sense: Manage Roommates
    By Neil Fjellestad and Chris De Marco
    FBS Property Management

    You and two friends decide to lease an apartment together. Things are going well until one or these friends loses their job and moves out because he/she can no longer afford the rent. What if a roommate damages the property or has a pet that damages the property and after move-out you get the bill for the excess damages? Who pays? Who is liable? The answer is that ALL of you are liable for the damages or lost rent even if it’s not your fault. This is because most rental contracts contain the language that the tenants “will be held joint and severally liable”; all tenants are each responsible for the full execution of all the lease terms.
    So, if your roommate doesn’t pay their share of the rent on time, you are in violation of the lease and subject to late charges and eviction. Your credit may be negatively affected for a very long time due to your roommate’s bad behavior and/or poor judgment.

    Here are a few things you can do to protect yourself:

    • Every roommate should be able to demonstrate good credit, responsible past performance as a roommate and provide a guarantor if needed. Don’t be bashful about asking for details and be willing to share your own circumstances.

    • Make sure that all roommates have an application on file and have signed the current lease. Don’t move roommates in and out without proper written notice. Promptly attend to updating documents. You want roommates that are legally bound just like you are.

    • Make sure that everyone adheres to all the terms of the lease. Examples: pets, guests, noise, parking, etc. Insist that you and your roommates sit down with the owner’s representative and thoroughly review the leasing documents together. Ask questions and present “what if” scenarios so everyone starts with the same understanding.

    • Make sure that everyone holds up his/her end of the arrangement: rent payments, other charges, utility bills, etc. All roommates should acknowledge condition at move-in and requirements at move-out.

    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 by FBS.

  • Rent Sense in Midtown & Uptown 92103 Communities: Should we sell or rent our current home?

    Posted Under: Rental Basics in 92103, Investment Properties in 92103, Home Ownership in 92103  |  November 6, 2013 9:46 AM  |  746 views  |  No comments

    Rent Sense: Should we sell or rent our current home?
    By Neil Fjellestad & Chris De Marco
    FBS Property Management

    We get asked this a lot. The answer you settle on can literally make the difference between whether or not you have the kind of retirement you want for yourself including something to pass along to your next generation. So please take a moment to follow this example that came in from a local homeowner. Though our expertise is definitive for the San Diego region our advice should be considered elsewhere as well.

    Question – “I have roughly 200K as equity in my current home in north San Diego. We are going to close escrow on a new home in a week’s time in the same area. I don’t need to sell my current home to buy the new home. Since I’m not sure about being a landlord and sales prices have gone up should we consider selling our home instead of renting it?”

    Answer – You should definitely hold your current home as a rental if you do not need to sell. It might surprise you to find that many local independent rental owners got their start the same way. Of course this is a long-term proposition and you need to surround yourself with professionals that will provide consistent property management and constant real estate investment advice. Someone should talk you through your investment objectives and financial resources. This can prepare you with a long-term strategy for your real estate decisions. The first property management priority is to choose professionals to establish a competitive rent rate, get your vacancy filled with a qualified renter that wants to be treated like the preferred customer they are.

    You should also know that if your estimated 200k equity does not represent at least 30% of current value then you need to start paying down existing loan balances though refinance or savings. You are going to be in the rental business for a long time and need to stay safely capitalized. Forget those books and infomercials that preach you can buy with no money and flip for scads of cash. Did we mention you’ll be rich and retired by the end of the year? Remember, if it sounds too good to be true, it is. There’s a reason these exaggerations about real estate get started. It has history as the foundation of smart wealth and San Diego rental property captures the most advantages of this wealth strategy. There are correct methods that cannot be ignored.

    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

  • FBS Property Management e-newsletter for Mid-town and Uptown 92103 neighborhoods: Take a Quick Look

    Posted Under: Agent2Agent in 92103, For Rent in 92103, Investment Properties in 92103  |  October 27, 2013 5:51 PM  |  668 views  |  No comments
    FBS Property Management e-newsletter: Take a Quick Look

    http://email.e-mailnetworks.net/private/zHh9/hU3/QU4wqCL/browse/19694685

    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

    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.

    If you're a qualified renter you deserve to be treated like the preferred customer you are.

  • Rent Sense for RE Investors in 92103 Mid-town & Uptown Communities: Some things don’t change (Part 2)

    Posted Under: Agent2Agent in 92103, Rentals in 92103, Investment Properties in 92103  |  October 13, 2013 9:21 AM  |  660 views  |  1 comment

    Rent Sense for RE Investors: Some things don’t change (Part 2)
    By Neil Fjellestad and Chris De Marco
    FBS Property Management

    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

    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.

    Here are key factors for successfully turning your rental ownership into the financial bedrock of your retirement prosperity:

    • Own well-located homes, condos and apartments maintaining at least a 30% equity position. Pay down loans to achieve this safe equity position as quickly as possible.
    • Repair and refurbish the property to maintain physical quality which attracts preferred renters that pay market rent while demanding quality conditions.
    • Carefully qualify applications from potential renters and retain quality residents by responding to legitimate service requests via a professional manager that keeps you buffered from the daily drama, personal liability and/or premature sale.
    • Keep good records to document expenditures and optimize your tax write-off.
    • Protect yourself with adequate insurance and control your liability with professional property management that inspects your property and respects your renters as customers.
    • Generally, rental property should be acquired, maintained, improved and held; never sold. Instead, periodically evaluate whether you should refinance existing property and purchase additional property but the end goal is rental ownership free of debt.
    • Don’t lose valuable equity to selling expenses. Rather, retire with tax-favored rental income and a reserve for contingencies.
  • Rent Sense for RE Investors in 92103 Mid-town & Uptown neighborhoods: Some things don’t change (Part 1)

    Posted Under: Rental Basics in 92103, Rentals in 92103, Investment Properties in 92103  |  October 3, 2013 9:59 AM  |  748 views  |  No comments

    Rent Sense for RE Investors: Some things don’t change (Part 1)

    By Neil Fjellestad and Chris De Marco

    FBS Property Management

    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

    Educate yourself www.RentSenseBlog.com

    San Diego is a great place to live but an expensive place to build, own, improve and maintain residential properties. Nearly fifty percent of the area’s residents rent and will continue to do so even as the local economy picks up. So, regardless of whether real estate prices are coming back fast and dynamic or slow and variable dictated by neighborhood, price range and lending policies here are some realities you can count on. San Diego’s mild climate and a healthy lifestyle will attract and hold onto renters. These renters are increasingly demanding which makes being an independent rental owner difficult. 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.

    Don’t believe anyone that tells you can’t lose at real estate investing. There are mistakes that can lead to a reversal of fortune while owning rentals even in the best of San Diego neighborhoods. Let’s highlight a few:

    • Forget what those infomercials are preaching. Owning too much of a good thing: too many properties; too little equity can unravel the whole thing. Buy and hold less is better.
    • Real estate decisions are important. Terms of purchase, mortgage restrictions, management choices and maintenance priorities must conform to a long-term holding strategy while adhering to best practices.
    • Churning real estate is expensive. Buying, flipping, selling and trading in the pursuit of a bigger or better property often drains equity with transaction costs and taxes.
    • Selling prematurely because of a problem tenant, deferred maintenance or bad loan needs to be compared to hiring better management, renegotiating loans and/or adding capital.
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