I found this little article and video on McKinley Village interesting – Let’s go take a look!
Keith Klassen, Real Estate Broker
In a past blog post we explored the benefits and disadvantages of keeping a tenant while trying to sell. As noted in that post, most know that a 60 day notice must be served when tenant has lived at the property for over a year (12 months), when not on a lease. If on lease, then the lease trumps all, except cash of course. This is another discussion, but a tenant can always agree to move if paid to do so – many know the phrase from the bank owned property days, “cash for keys.” This question was asked recently, “When a tenant is not on a lease, they’ve lived there for over a year, and I want to raise the rent… do I have to give them a 60 day notice? Or will a 30 day notice do?”
Answer: If the increase is less then 10% of the rent, then 30 day notice will suffice. If the increase is more than 10%, then a 60 days notice is needed.
Rents are going up in Sacramento and there is always a decision to be made between keeping up with rents vs. keeping a tenant. If you do not raise rents a little bit over time, the shock of a one time, big raise will certainly drive a tenant out. Other would argue that a good tenant is hard to find and is worth keeping, even if it means leaving their rents low. I find including a note with the rent increase stating how much you love them as tenant… how you want to keep up the maintenance, and how expenses have risen… this seems to take some of the sting away. I do believe in keeping good tenants, and surely the cost of re-renting, the cost of making the place ready to rent, and potential vacancy may not be worth the extra $30-50/mo.?
What’s your strategy and experience in raising rents?
Keith Klassen, Real Estate Broker
Klassen & Associates / 916.595.7900
Most of us are completely distracted on a day-to-day basis, and for good reasons. There are so many options for eating and entertainment, new restaurants and things to do abound. In Sacramento, CA we live surrounded by beauty, history, rivers, and a quick ride to the coast or Lake Tahoe. We have more contact and connection opportunities via social network than every before. As a father of two boys, now 11 and 13 years old, my wife and I give much thought to this idea of focus – being present and not distracted; Being attentive and giving attention. I fail miserably at times, nodding to my son’s/wife’s questions while doing some work or reading, only to ask, “What did say?” And maybe acknowledging, “Uh, I’m sorry, I wasn’t listening/paying attention.” Specifically in the realm of technology, distraction lurks. Many forms of technology can be wonderful tools and has made our lives better on so may fronts. I cut myself some slack here – 10 thousand songs in my pocket and a world of information at my finger tips. How can we not be distracted! Technology clearly has an addictive quality that can work against our productivity, our relationships, our attentiveness.
I was stunned by a TED talk (a bit older now) that highlights studies showing how technology (including primarily video games and pornography) have become an addiction. He makes the point that boys, in particular, are not maturing and intimacy is lacking. Watch the clip. It’s less than 5 minutes. “What’s the solution?” Zimbardo asks, “… not my job. I’m here to alarm…”
I too have no solutions, but I have a few thoughts. I’m a guy. I have two boys. My boys play video games, and I partake at times. I have a computer, laptop, iPad, iPhone… I’m concerned.
Ahhhh, it’s a constant battle, but feels so good when we get intimate, centered, and fully engage.
What are your areas of struggle and victory in this area of focus, technology, family? This is where we help each other. Please share.
Keith Klassen, Real Estate Broker – 916.595.7900
A good portion of my business has trended toward investors and investment properties, I get this question/scenario posed to me often. If the question is not asked directly, I’m usually bringing up the issues revolving around selling with a tenant in the property. There are a lot reasons why the answer could go either way on this topic, but let’s explore some of the main concepts that will help you make a good decision based on your situation. (Qualification: This discussion mainly has to do with single family income properties, rather than multi-family units).
Many agents just don’t want to deal with the hassle of selling with a tenant. There are scheduling conflicts, posting of notices, and high emotions when treading on someone’s living situation – all potentially emotionally charged and exasperating situations. While these can be good reasons to sell vacant, they may not be the best. A good agent knows how to handle and deal with tenants in a caring and professional manner. It does, however, make the process a bit more grueling and cumbersome.
I find the main issue boils down to is loss of income. Most owners balk at asking tenants to leave, because they don’t want to lose the monthly rents. In most cases I’ve found that the loss in rent is less than the higher amount a home will fetch when vacant. Why?
Call or write to discuss your situation in more depth.
Ketih Klassen, Real Estate Broker – 916.595.7900
I just read an interesting article that motivated me to convey some thoughts and experiences on solar panels.
It’s exciting to see the progress solar power and panels have made in the last decade – more affordable and more efficient. I visited a remote village in Northern, rural India where no power line reached… but to my surprise, they had a communal solar panel in the middle of the village to, yes … charge their cell phones. Solar farms are popping up in open spaces – I saw a huge one recently on a drive to Las Vegas. When I visit my home town of San Francisco and look out over a view, it seems more homes had solar panels than ones that do not. I’ve sold new homes that now have solar panels as part of the purchase package – what home owner doesn’t love almost free energy! And I’ve now interviewed three companies to hear their pitch for solar panels on my own home.
While I’m all for solar power, saving the planet, and money if possible, my experience was a little discouraging. I hope that you might get a few tid-bits from my own journey.
It seems that purchasing panels is still not very popular, as the out-of-pocket expense out weigh the benefits/savings. Some might argue, like buying a hybrid car, “You don’t buy it for the saving, rather for the planet.” There are also many incentives in California that go along with the purchase of solar panels. The federal government gives tax credits (write-offs) for owners of solar panels. And, there are a bunch of local incentives to look into if you are going to purchase panels. Like a car, there are avenues and incentives to finance the purchase of solar panels too. This attracted me, because it seemed that one could save money on power, then eventually own the panels. However, I was also informed that the life of the panel’s efficiency is only about 20-25 years, which just so happens to be the life of the loan. Take the time, look into the kick backs for your area, do the math and then make a decision. Purchasing may be the right path for you?
Leasing the panels is another option where you pay a set amount (lower than your average monthly utility bill), but I found that a “power purchase agreement [PPA]” seems to be most popular route offered. Leasing and the PPA are similar in that there’s little to no money out-of-pocket. With the PPA, it’s as if you are agreeing to a fixed utility rate (lower than your average monthly utility bill) and allowing the company to use your roof to harvest solar power. The company I spent the most time with asks for a 20 year agreement.
At the end of the day, while I love our planet and believe solar power and panels are a great move, I decided against it for now. Here are the issues I came against:
Again, I have friends and associates that it’s worked great for, and I love the idea. For me, it’s not the right time. What experience have you had? What am I missing here? Surely my experience is not all-inclusive.
Picture from my trip to India in 2015, with small solar panel on roof.
Keith Klassen – Real Estate Broker