When it comes to advertising a home, it can help to make people REALLY REALLY want it. Here in Santa Clarita, snow is an extremely rare occurrence. We don’t get to have snowball fights, make snow angels, or watch the flakes blow by the window very often. As a result, when we do get snow it is a fun time to remember!

When we head out to take photos of a listing, we try to capture the home in the best possible way. If it is a sweltering California summer and the home has a pool and spa in the back yard, guess what gets a LOT of attention in our ads? If it is fall and the home has great trees with leaves changing colors, those trees get some serious photographic “real estate”. I am sure that you can see where I am going with this, but if your home comes up for rent in the winter and you can supply us with a charming photo of the home covered in a blanket of snow with Christmas lights shining out across the frozen landscape and smoke drifting lazily from the chimney (flowery descriptions can be nice too), then guess what? I want them!  Obviously you wouldn’t want to include photos of you digging your car out of 6 feet of snow… but if you can create an emotional bond between your home and prospective tenants, then it will be much easier sledding, so to speak, to convert them into actual tenants.

If you can learn to play on the heartstrings of your customers, you will be much better off.  So get out there with your camera and risk frostbite to your extremities Maestro!

This year especially. Why? Because if they live in a home that gets foreclosed on they don’t have a choice. And from the looks of things, there will be foreclosures before Christmas. Now, could the federal government introduce or even pass legislation that would stall foreclosures until after the first of the year? Sure. They have certainly done equally drastic things in the past. But if you gamble that they will and they don’t you could lose much more than if gamble that they won’t and they do.

Last week was one of the hottest weeks in our company’s history when we talk about homes renting. We saw a flurry of applications with quick move-ins and many of our clients are now collecting handsome rent checks. Especially those clients who were aggressive with their pricing and presentation of their homes.

Now, I am going to offer a dose of realism. We don’t necessarily anticipate that our December numbers are going to beat our October or November numbers. But I do know this: they won’t be zero. In fact, we already have four homes where the leases have been signed with December move-in dates!

If you have thought about whether to buckle down and get that rental property ready for move-in now or whether to wait and be ready for the first of the year my advice is simple: err on the side of winning. Get it ready now and place it on the market, you might just collect a few thousand dollars more in 2010 and start 2011 with a head start!

Hopefully for most folks out there, the holiday season conjures up images of eggnog, family gatherings, great food, and other warm fuzziness.  I, for one, love the holiday season and all of the merriment that it brings.  On the other hand, owners of vacant rental properties have a reason to dread this festive time of year.  Why would anyone dread the flurry of fun and activity of the holidays??  To put it simply, no one wants to pack up their home and kids, schedule a move, and ask family members to lend a hand in getting all of their stuff into a new home during that time, thus effectively killing their good times!

The good news is that although the market does slow down just as much as I do after 10 pounds of turkey and cheese ball, there is hope!  This is the time for owners to seize the opportunity to price their rentals aggressively, thus placing their homes at an advantage over the poor fellow who is holding out for top dollar in a declining market.

When it comes to rental homes and rental income, math reigns supreme.  Let’s imagine that you have a home that will rent today for $2,000, but you really really want to hold out for $2,100.  Let’s also imagine that you are fortunate enough to get the asking price after 30 days.  Guess what?  By leaving your home vacant for that month you effectively passed up on $2,000 worth of rent.  As a result, it will take you almost two years with your tenant to make up that difference and break even!  And that is assuming that your tenant doesn’t decide to move at the end of his one year lease after discovering that he can get the same house in the same neighborhood for LESS money.  If that is the case, you can safely assume that the property will have at least another 30 days of vacancy at turn over.  If you haven’t broken even at that point, you have dug yourself even farther into the hole.

Do yourself and your wallet a favor.  When the holidays are around the corner, play it smart!  Then you won’t BE the poor fellow that is so wrapped up in worrying about his overpriced home that he completely misses out on the holiday merriment.  Price your home to move and enjoy your holiday!  Get yourself a prime spot under the mistletoe, and grab a huge glass of that tasty eggnog you market savvy king of the cash flow.

Drink up my friend!  You’ve earned it…

“Craftsmanship, fueled by passion”

As a property manager, I have probably been into the homes of more strangers than the average joe.  As a result, I get to check out a LOT of different styles of home decor!  While the majority of these homes is tastefully decorated without anything too strange, there is one thing that does seem to be a common thread.  A lot of the homes have the same stuff!

While there is nothing wrong with buying nice things that are common, wouldn’t you rather buy nice things that are custom?  Things that are unique?  Things that set you apart from the herd?  If you answer yes to any of these things, there is hope!  A local start-up is in the process of manufacturing high-end wall decor, tables, and lamps at down-to-earth pricing!  Ladies and gentlemen, I give you…Thrasher Custom!

Anyone can run down to Bed Bath & Beyond and plunk down a pile of cash for something that was mass produced with the cheapest methods possible and packaged attractively to drive the price up…but then again, anyone can jump off a cliff or skydive without a parachute!  Just because it can be done, that doesn’t make it the right choice.  For myself, I would rather spend my hard earned dough on something that screams “quality” and “craftsmanship” than something that I can find in every house on the block.  Thrasher is planning to arrive on the Santa Clarita scene in time for the holidays, so all you guys out there, keep your eyes peeled for this up and coming brand!  Get someone a gift as unique as they are!

24850 Avenue Rockefeller – Valencia, CA – 91355 – (661) 755-7500 – jjimprints.com

Here at Classic we like to take a bit of time occasionally to put the spotlight on local companies that we think deserve recognition.  Today’s spotlight goes to a company that many of you probably don’t recognize.  Not long ago, Dana Hutchins (Outside Sales) stopped by our office to let us know about J&J Imprints.  She told us that they were by far the best screen printer in the area and that we should give them a call if we ever needed anything.

Shortly after that, we found ourselves in need of t-shirts for the Magic Mountain Arthritis Walk.  We gave Dana a call at J&J Imprints and let her know what we were planning.  Within days we were sporting some of the best looking shirts at the walk!  I was so impressed with the quality and speed of the whole process, that we then ordered custom embroidered company shirts for day-to-day Classic business.  The result?  Not only are we the best property management company in the area, but we are the best dressed as well!

After testing the waters with two Classic orders, I decided to take the plunge and align my own start-up children’s clothing line (Skeletots) with J&J.  After all, with major clients like Sony Music, Hot Topic, and Warner Music who contract J&J Imprints to produce tens of thousands of shirts, I am sure that they can handle a little order like mine!

I swung by their facilities to take a look at the company first-hand and was blown away by the size and scope of their operation.  Behind the modern reception area and through a couple of doors lurks a staggering 11,200 square feet of product producing power capable of turning out over 10,000 garments per day by utilizing multiple fully automated and manually operated machines.  In fact, during J&J’s 10 years in business, they have rapidly grown to become the largest screen printer in Santa Clarita, and one of the largest in north Los Angeles.  Although the photos below don’t do this operation justice, you may be able to get an idea about massive amount of work this facility can handle.  If you need shirts printed, stickers and decals produced, or vehicles wrapped, this company can handle it all!  Give them a call!

]]> http://santaclaritapropertymanagement.com/2010/09/17/jj-imprints-a-screen-printing-powerhouse/feed/ 1 Jon Mitchell Lic. #01790601 J&J Imprints Skeletots 1st Run J&J Imprints J&J Production J&J Production http://santaclaritapropertymanagement.com/2010/08/13/should-i-rent-my-home-furnished/ http://santaclaritapropertymanagement.com/2010/08/13/should-i-rent-my-home-furnished/#comments Fri, 13 Aug 2010 17:08:53 +0000 Jon Mitchell http://santaclaritapropertymanagement.com/?p=539 ]]> When I speak with new rental property owners, I am often asked if it is better to offer a home that is empty or a home that is furnished.  The short answer is that while there is a market for both types of homes, the market for an empty house is generally much larger.  Lets take a peek and examine the reasons!

The Fully-Furnished Home:

We, as a company, do have experience in dealing with homes that are fully furnished.  In fact, they are furnished right down to an exact number of forks and spoons!  When a tenant moves into these homes, they can literally just arrive with a suitcase of clothing and nothing else.  While that might seem a bit odd for those of us here in Santa Clarita, there are times when that arrangement might be exactly what the doctor ordered.  For example, we often rent these properties to families that are being placed by insurance companies after losing their own homes to disasters like fire, flood, earthquake, etc.  A large part of the demand for a furnished home has to do with location as well!  For example, tourist destinations like Lake Tahoe, Las Vegas, beach towns, and similar places will likely have more success with furnished homes because vacationers looking for vacation rentals generally don’t travel with all of their furniture.  Here in Santa Clarita, we don’t have a high vacationer draw other than Magic Mountain, and those folks generally just stay in a nearby hotel.

The Empty Home:

There are a LOT of great reasons to rent an unfurnished home if at all possible.  For starters, if you are managing your home yourself, it can be very, very tedious to go through the home and try to document the condition and number of every single item that is being left behind.  Is your stuff nice?  What if you leave a $5,000 desk behind and it gets a gnarly scratch across it?  What is it worth now?  Of course, you can always choose to accumulate a lot of cheap furniture just in case someone wants a furnished home, but where do you put it if someone wants the place empty?  I assume you would have to put it in storage…at a cost to yourself.

Obviously this blog is geared more toward rental home owners in Santa Clarita, but the universally applicable truth is that you need to know the market in which your home is located!  If you are in a hot destination area that is constantly packed with tourists, the furnished route may work out great.  If you are in a quieter more family-oriented area, your best bet for landing a renter who wants something fully furnished is to hope for a natural disaster to displace another home owner.* As always, the key to landing a renter quickly is to make sure your home appeals to as many people as possible!  If you were to tell us you HAVE TO rent the home furnished here in Santa Clarita, I would have to say, “prepare to wait a long time!”

*Classic obviously does not condone wishing for the misfortune of others.

While I admit that I am not familiar with every tenant law in every state, I do know that here in sunny Santa Clarita, CA an owner is not on the hook for ANY utilities!  In fact… I can think of very, very few people off the top of my head that volunteer to pay for anything but the H.O.A. dues and a gardener or pool guy.  Occasionally the H.O.A. will cover a utility or two as part of the agreement with the owner, but if that isn’t the case, don’t assume that anything is being thrown in for free.

There are several reasons that owners don’t want to pay for their tenant’s utilities.  What if their tenant is fond of 3 hour showers?  What if they prefer to run the air conditioner all day while leaving the windows open?  What about the heater?  What about lights?  What about TVs?  Computer equipment, etc.?  As you can see, if an owner agreed to pay for utility costs, they could potentially be on the hook for hundreds of dollars each month!

For all the tenants out there, the best idea is to ask which if any utilities and services are going to be included before you sign a lease. Especially if you are moving into a new area that may have different rental laws than the area that you currently live in.   Neither party likes to find out that there were assumptions being made that turned out to be inaccurate!

Did you know that in California, you can’t just wait for a tenant to leave on a grocery run and have the locks swapped out?  If you do, YOU could be in some very hot water with the authorities.  Just like everything else in the Golden State, there are hoops to jump through and obstacles to overcome.  Even when you are clearly in the right!

The first step you should take after deciding to get a non-paying tenant out of a property is to to serve them a little piece of paperwork commonly known as a 3 Day Notice (cue ominous background music).  Here in California, not only do you have to serve the 3 day notice, but you also have to serve it in a certain way!  If you get all the way to court day and the judge finds out that you did not serve the tenant a notice properly, or did not serve them a notice at all, guess what?  You are back to square one my friend!  You get to start all over and get back in line for another shot at a court date in our swamped legal system.

In our effort to help the “do-it-yourselfers” out there, we have made it our mission as a company to ensure that everyone who stumbles across this blog will become better equipped to deal with their rental homes than they were before they found us.  Arrive at court prepared and you will improve your odds of success.  With that goal in mind, here is a copy of the three day notice that Classic uses.  Please feel free to use it and the included instructions if you need them!

3 day notice

Let me start with the tenant’s point of view. To many pet owners, their furry little bundle of joy is essentially a member of the family.  Especially here in Southern California where pet shrinks, groomers, and luxury boarding facilities abound!  To these tenants, the thought of giving up their dogs and cats in order to move into a home is absolutely ludicrous!  Often times, they will offer to have us inspect their current home for pet damage, show us photos of “Fluffy”, and swear on the graves of various ancestors…all to convince us that THEIR animal is different.  They can’t understand why anyone would hesitate to rent to them and their pets.

Now let us examine the owner’s point of view. Just about every owner that I have met with has heard some kind of horror story from a friend, neighbor, or family member about a renter/pet situation that went awry.  As soon as they hear that an applicant has a pet, their minds conjure up images of destroyed yards, urine soaked carpets, and smells that will linger for years.  It is just like the media…the happy news doesn’t get reported and spread!  In order for a story to be worth repeating, it has to be shocking or horrific in some way.  As a result, most owners won’t hear about the hundreds of times that we rent to people with pets and have nothing go wrong.

Now for some stats: We estimate conservatively (based Classic’s on hundreds of managed properties), that more than 85 – 90% of renters own some kind of cat or dog.  Here in Santa Clarita, the rental market has become increasingly competitive!  An increase in the number of available properties coupled with an unchanged pool of renters means that if you want to rent your home quickly, you need to appeal to the largest market share that you can.

In conclusion, I would encourage home owners to at least consider the prospect of renting to folks that have pets.  Is it because of some wacky idealistic world that I’ve imagined where people and animals live together in a dreamy rainbow filled wonderland?  Absolutely not.  As a rental home owner, I want to make sure that my home has as little vacancy as possible.  If my home comes up vacant, I don’t want to make a decision that will eliminate all but 10% of potential renters.  For the average home in Santa Clarita, one month of missed rent on a vacant home is about $2,000.  With dough like that on the line, every day counts!  After all, you can use every dime of the tenant’s security deposit to correct pet damage if need be.  In fact, it is completely acceptable to increase the rent for folks with pets, take a larger deposit (make sure you know the legal deposit limits), etc.  There are plenty of ways to safeguard your home and investment from the potential pet carnage!

Always remember…  Less vacancy means more money in your pocket!

Be punctual!

When I have a busy day of showings lined up, one late viewer can set off a chain reaction of schedule-destroying mayhem that causes me to fly through Santa Clarita like Steve McQueen trying to get to my next showing on time.  It also makes me wonder about our odds of rent coming in on time if the viewer doesn’t show up on time.  Obviously things do pop up unexpectedly.  Should that be the case however, it is a good practice to call and let the agent/owner know that you are running behind, unable to make it, etc.

Be respectful!

Oftentimes, the properties that we show are occupied by either the property owner or an existing tenant that is planning to move out.  Should you find yourself being shown an occupied home, you should try to keep the crazy to a minimum.  I have shown properties to people who will flick cigarettes onto the driveway, lawn, and bushes at the home they are viewing.  I have shown homes to folks that allow their children to run through the house like wild banshees, picking up the occupant’s belongings, chasing pets, scream at the top of their lungs, etc.  I have been shocked by applicants that swear loudly in front of current occupants, the occupant’s children, and neighbors.  Consider this: if the current occupant is the owner of the home, what do you think the odds will be of him renting to you after observing that madness?  Property managers are hired to keep the owner’s best interest in mind.  If two applications come in on a home where one applicant was polite and respectful and the other was the human embodiment of total chaos, guess who is getting the home?

Even though an owner may not live there anymore, they may still have friends among neighbors that they will want to keep happy, or they may have an emotional attachment to their home coupled with a very real fear of it being destroyed.   So if you want a quality place to live, just remember that when it comes to viewing a home, common sense should reign supreme!