Park Place Property Management

Is a housing shortage coming?

06/16/2010

As the nation struggles to shrug off the worst housing crash since the Great Depression, it may be hard to believe a housing shortage could be on its way.

The nation is simply not building enough homes to keep up with potential demand. Just 672,000 new homes were started in April, less than half the long-term run rate needed to meet the nation's natural population growth.

"It is ironic, but there is a growing consensus that there may be a new housing shortage coming," said James Gaines, a real estate economist with Texas A&M.

So far, the shortfall has been masked by a weak economy that has put a damper on homebuying. Once the job market rebounds, however, people will look to have their own homes again. This pent-up demand could get unleashed on unprepared markets, causing shortages and rising local prices.

Household formation -- the technical term for people moving in together -- has been on hold during the past few years as young people, especially, have been unable to find jobs. In the past, an average of more than 1.3 million households were formed each year, causing demand for 1.5 million new homes. (More homes than households are needed to replace those destroyed by fires, floods, teardowns and neglect.)

In 2009, only 398,000 new households were formed, according to the Census Bureau. That is much lower than average and a quarter of the number formed just two years earlier.

"The decline in household formation is artificial," said Gaines. "The young are moving in with their parents. There's even doubling up among working class people. There's a pent-up demand coming if and when the economy recovers."

Those doubting a new bubble is near point to a large inventory overhang. As many as 7 million homes are vacant but not for sale, according to the Census Bureau, which should provide cushion to offset increased demand.

"The housing market hasn't been this way before," said Nicolas Retsinas, director of Harvard's Joint Center for Housing Studies. "The gravity of the problem is deeper and the challenges different. You have to get through that inventory."

The inventory number, however, can be deceiving for two reasons: People may not want to live in hard-hit areas where the houses are (think: California exurbs and Detroit neighborhoods) or the homes may be beyond repair.

"Many of these vacant homes may not be habitable or are in locations where nobody wants to live," Gaines said.

Building out of the lows

Ordinarily, the nation's homebuilders can react quickly to meet surges in demand. But several factors are preventing them from being nimble. The biggest is the difficulty getting loans, according to Jerry Howard, CEO of the National Association of Home Builders (NAHB).

"When we came out of past recessions, there wasn't the difficulty of obtaining financing that there is now," he said.

Many small builders have been unable to obtain construction loans or lost their financing in mid-project. That has prodded NAHB to support federal legislation that would make $15 billion in lending guarantees available for private builders.

Hard times also persuaded builders to postpone purchases of land they could prep for future development. It will take them that much longer to gear up production once the housing market improves.

Too, many builders went out of business in the bust, so there will be fewer companies out there to do the building. The survivors will confront a transformed regulatory environment, according to Howard, that will make new homes harder to build and more expensive.

"There is an increased focus on smart growth that will create regulatory barriers to the kind of sprawling development that has characterized a lot of recent building," said Retsinas.

The regulations come under two categories, according to Susan Asmus, NAHB's senior vice president for advocacy, covering where new homes are built and how they're built.

One category is storm water runoff. The Environmental Protection Agency tightened requirement governing how builders handle that. Builders will have to install controls such as catchments or retaining ponds that slow the flow of storm runoff into the local watersheds.

"It could add as much as $15,000 to $30,000 an acre in extra costs, depending on the soil," said Asmus.

Another proposed regulation mandates sprinkler systems in each new home. This is already state law, starting January 2011, in California, Maryland and New Jersey. That adds as much as $10,000 to the cost of construction.

Where the shortages will be

Previous overbuilding one-time boom towns, such as Las Vegas and Miami, should provide enough inventory of like-new homes to counter any strong pent-up demand that breaks free.

It's the more constrained markets, where it's particularly hard to build -- such as New York, San Francisco and Seattle -- that will field the bulk of the new bubble problems, according to Retsinas. He, however, is less worried about the purchase market than about rentals, the usual entree for the young buyers expected to lead the new housing market charge.

"Nobody is building any rental inventory," said Retsinas.

Fair housing

06/07/2010

Fair housing

Recently at Park Place we have been discussing fair housing laws and how it’s prevalent issue for every property management company. Fair housing protects groups of people from discrimination as it pertains to housing. Many people don’t even know what criteria or groups that Federal Fair Housing law protects, so for those out there here is the list Race, Color, Religion, Sex, Handicap, Familial Status and National Origin. It is illegal for us or any other property manager to base application approval or denial on anything that would fall in these categories. This includes steering to certain neighborhoods or units as well. The consequences of breaking these guidelines are real and severe, pricing into the tens of thousands of dollars. So keep those guidelines in mind when making a selection on a tenant. It’s the right thing to do and could save you a major lawsuit.

May

05/05/2010

I hope that May has started off well for all of you! It has been an extremely busy kick off to our month, with 19 tenants moving out on April 30^thand several in the first half of this month. Fortunately most all of them had given us notice first. A welcome change to several months this past winter when it seemed more just left than let us know about it. This coupled with the phone ringing off the hook with people interested in filling them up again has made it feel as if there are less hours each day. For those that have a vacant property the market could not be hotter to get properties rented again.

We have turned on sprinklers for the spring as well, with that comes sprinkler issues and repairs. With a colder than average winter many issues have arisen this spring in regards to underground irrigation. Just know that we are working to correct all sprinkler issues as quickly and inexpensively as possible.

Thank you to all clients of Park Place Property Management both owners and tenants, we are working hard to satisfy both parties needs as quickly and efficiently each day. We appreciate your business and look forward to future dealings.

Energy Conservation

03/02/2010

I have recently received a couple fines from the Home Owners Associations in the Boise area that have frustrated me, not only because it is a fine but because of the nature of the offence the consequence is attempting to remedy. The fines and warnings have been for lights in the front yard not being turned on all night long. This is just crazy to me. In a time when energy conservation is at the forefront, there are Homeowners Associations issuing fines upwards of $500 for a light not burning. Now we all understand why Homeowners Associations exist and the part they play in keeping property values high. I just feel there needs to be some updated thinking about some of these rules. I would hate to know the amount of energy and money that is simply wasted in this country simply because in some areas you get fined for turning your lights off. So if you have any pull within a Homeowner Association in your area or in the Boise area, think about possibly updating this portion of the CC&R’s to help ensure a higher quality future for all of us.

Property Management

02/25/2010

For this blog I thought I would share a little about our Jobs as Property Managers. Generally people refer to Property Management as a difficult position that takes up a lot of time. In lots of ways this is true, but I am not sure people understand why. Property Management like many professions is a balance of people, money and goods. I think what separates this from other jobs is how personal the area within a person’s life we operate, their home.

A person’s home may be the most personal thing about them, I mean if you cannot be yourself in your own dwelling, where can you be? Property Managers have to be the ones that inquire into that aspect, making sure you are making your payments and bothering you about inspections, telling you if you are not mowing your lawn well enough or keeping your house clean enough or if you need to pay utility bills that have come past due. To tell you the truth some people are not very good at any of that and they hear from us a lot. I think that everybody would like to own their own home, but that is not a reality for many people and I feel that also has an effect on their attitude towards our position. It is not all bad however many tenants pay on time and are pleasant to deal with and to those, we all thank you!

The other half of property management is the owner side. Owners/investors of rental property are similar to anyone who invests in the stock market or other area money is spent in hopes that a profit will be realized. The difference is that these people have chosen to put their money in a more tangible asset with a human element involved. In a way it is safer because there is land and a structure that does hold some value no matter what. On the other hand a house can be difficult to stay ahead on especially in this market of dropping prices. The other difficulty is finding tenants that will take care of a rental property and pay rent in a timely manner. The last two points are mainly where a property manager comes in. There is not a lot a Property Manager can do about rental pricing. Finding an appropriate tenant however, one can have an influence. We do our absolute best to find suitable tenants for all of our rental properties. Most of the time we succeed in this attempt, sometimes however even if someone looks good on paper the reality can be quite different. Also people who have paid their bills their entire life can lose jobs and within a month or two be struggling to make ends meet. We get the privilege of juggling communication, payments, personalities, and preferences in one hand while in the other dealing with a volatile market and foreclosing homes. It is quite a task.

At the end of the day we understand the weight of this task we embark on daily. On the tenant side we manage a person’s home. On the owner side we are managing retirements, college educations for children and sometimes entire salaries. We manage enough assets to make any Broker jealous and take pride in figuring out the best solution to the complex problems that arise here on a daily basis. Your property remains our priority whether you are renting or investing.

Tale of Two Cities

02/12/2010

“It was the best of time, it was the worst of times, it was the age of wisdom, it was the age of foolishness” a quote from Charles Dickens novel a ‘Tale of two cities’ seems appropriate for the Boise, Idaho real estate market. The anxiety and suffering in what is being called the ‘Great Recession’ is all to real and painful to the tens of thousands of Boise, Idaho residents whose lives have forever changed with job losses, housing foreclosures, reduced wages, and minimized benefits. Many real estate agents were caught up in the ‘tidal wave’ of the rising market as real estate schools popped up on every corner to graduate real estate agents faster than they could say “flip that house”. But as the ‘wave’ receded it turned into a ‘rip tide’ and many real estate agents have fallen victim to the economic ills that plague America. Those remaining Treasure Valley agents including those practicing real estate in not only Boise but Meridian, Nampa, Caldwell, Star, and Eagle are constantly barraged with negativity from their client’s disappointment over negative equity in their homes or the lengthy time to close escrow. The real estate agents who are able to withstand these tumultuous times are growing fewer by the month. With over 6,000 agents at the peak in the Fall of 2006 that number has dropped almost in half to 3,000 agents by December 2009.

As Boise, Idaho real estate hovers at what many experts predict as the bottom of the market the time is perfect to become a real estate agent and/or increase your real estate investment portfolio. Boise short sales and Boise foreclosures blanket the market of properties for sale. Estimated yearly single family residential sales of approximately 8,000 units are far from anemic. First time home buyers, investors and upper end buyers are scavenging Boise, Meridian, Nampa, Caldwell and surrounding areas for unbelievable prices on homes. Throw in tax incentives and low interest rates and it is obvious that it is a great time to invest in or have a career in real estate. As difficult as it seems from many perspectives it really is the ‘best of times’ for real estate investors.

Need somewhere to put tenants.

02/10/2010

Spring is nearing and call volume for people seeking properties seems to be ramping up by the day as we move once again towards the busy season for property management. Our largest issue at the moment seems to be that we do not have enough vacant properties of certain types to put people in, if that can even be considered a problem. If you currently have a property and you are considering the possibility of renting it out now is the time. We have a tenant for you. This is a welcomed trend after a slow December and January. This is not uncommon during the holiday season it is just nice when call volume rebounds again houses start going off the rental market seemingly as fast as they go on it. Even though it is February the Treasure Valley rental market is heating up, here is to a successful 2010!

Evictions and Skipping

01/27/2010

Evictions and Skipping have become a bit more prevalent this past year than all of us would like to see. Skipping is when tenants leave a residence without paying rent or giving notice and I am sure everybody understands eviction. In the past three months 1/3 of the vacancies that we have, are a result of skipping and evictions. I feel some of this comes simply due to the time of the year with Christmas tapping out many families’ savings; also it always seems that the New Year brings a few more people just leaving after the holidays. One other factor is that winter is a slow time for many jobs and this seems to be the most financially taxing season for many people. One bright side to this is that tax season is upon us and many tenants are able to catch up or get ahead with refund checks. We had quite a few owners see the benefit of Eviction Protection a program that Park Place offers to alleviate the high cost of eviction. If you are not on this program and would like to be let us know.

Boise Real Estate Investments

01/26/2010

Recently there has been allot of information about Boise, Idaho real estate in the news. Although Boise has not been immune to economic challenges and as the Idaho legislature grapples with budget cuts and financial difficulties the Boise real estate market continues to move. In 2009 there were 3,256 residential properties sold in Boise, Idaho. The average purchase price was $193,552 and the median price was $163,475.00. Compare that to 2008 where there were 3,259 residential properties sold in Boise, Idaho. The average purchase price was $234,292.00 and the median price was $194,900.00. Although purchase price’s dropped the volume of sales was constant. That is great news for investors in a market that saw average rents stay constant during that same period. In other words higher return on investment.

Investors should purchase real estate in areas that they have a certain level of familiarity and knowledge. Single family residential homes make a great option for real estate investors who are skittish or unsure of their abilities to dissectreal estate investments. Most have purchased several single family residential properties to live in as a primary residence in their lives. That process has created the valuable skill of being able to understanding the most difficult issues of real estate investing including financing, property values, taxes, property repairs, and property saleability . Evaluating neighborhoods and competing properties can be helped by selecting the right real estate professional. A Realtor can help provide you with information and negotiating purchase price to advocate on your behalf to get the best real estate investment available. For more information on Boise Real Estate investments contact RE/MAX Elite Properties at (208) 377-3227 to speak to a Realtor or go to www.investmentproperties-idaho.com for more information.

Stabilize

01/13/2010

A word has started to surface in the rental world as of late and that word is, “stabilize”. It seems that in late 2009 and now the beginning of 2010 rents and occupancy rates have begun to stabilize. Rental rates while not at the level many of us would like, have seemed to plain off in the 3^rd and 4^th quarters of 2009. This is more than likely due to the housing sales market starting to stabilize as well, since these to markets are in many ways, linked. Park Place has seen a vacancy rate in the 2% to 3% range while the valley average during the 3^rd quarter of 2009 was around 7% not bad considering all the turmoil in the housing market. It has been quite a ride in unfortunately the wrong direction for much of 2008 and 2009, hopefully 2010 can be the year that things turn around and start heading in a more positive direction in the months to come.

Boise Real Estate Flipping

01/13/2010

With the start of 2010 we get questioned frequently about investment strategies for purchasing and selling Boise Idaho real estate. Although I personally like to buy and hold rental properties, the strategy of the ‘FLIP’ is once again becoming viable to Boise real estate buyers and sellers. Market conditions are prime for savvy buyers of real estate in Boise, Meridian, Nampa, Caldwell, Eagle, and all Treasure Valley locations to buy and sell real estate quickly and profitably. Although ‘flipping’ can be a financially risky move and highly suspect if done surreptitiously; if done properly it is ethical and serves a purpose in a recovering economy. The keys to a successful and legitimate Boise real estate flip is the following:

1. Disclose the intention of the Investor Flip in writing during the offer stage. This ensures that the seller, realtors, banks, and all parties to the transaction are fully aware.

2. Thoroughly study the market and property to understand what the potential cost of rehabilitation and resale of the property will cost and what you can net from the sell of the property.

Boise Idaho Real Estate IRA Purchase

01/07/2010

Over the last two years economists, politicians and prognosticators have proclaimed our current state of affairs as ‘The Great Recession’. According to the Department of Labor at the start of the recession in December of 2007 we had an unemployment rate of 5% and approximately 7.7 million Americans out of work. In December of 2009 the unemployment rate was 10% and the number of unemployed was 15.3 million Americans.

Flash back to October of 2007. Real Estate was booming as owners borrowed from their homes with HELOCs and the DOW closed at its all time high at over 14,000 points. Then the trouble started with the failure of Bear Stearn’s and Lehman Brothers bankruptcy. Between the stock market peak in October and it’s low in March of 2009 the stock market dropped over 50%. Over 3 trillion dollars in net worth was lost my Americans.

Americans now more than ever are taking charge of their own future and managing their own retirement accounts. With the challenging times we face investing in solid inflation fighting real estate investments are a good alternative to traditional investing. With the value of future retirement accounts greatly diminished it is time to grow the ‘nest egg’ by utilizing all the potential tax strategies and tactics available to us.

As an investor it is important to realize that you can make decisions in your IRA or 401 K plan yourself. While the stock market is confusing for many the idea of purchasing a rental property in your retirement account makes great sense. Cash flow in addition to property appreciation can make for a very good avenue of diversification to the tumultuous stock market. A purchase and sell in your IRA or 401 k is tax deferred allowing you to increase the value of your portfolio without triggering tax consequences. You can also get a real estate investment loan in your IRA or 401 k giving you the ability to leverage more real estate.

As always before making a move to manage your own IRA you should consult your professional accountant, tax attorney, and realtor. If you are interested in more information on purchasing real estate in your retirement account please contact Park Place Property Management at 208-377-3227.

November home sales leap

12/23/2009

After surging 10% in October, sales of existing homes jumped again in November, growing 7.4% compared with October to an annualized rate of 6.54 million units, according to the National Association of Realtors.

"This clearly is a rush of first-time buyers not wanting to miss out on the tax credit," said NAR's chief economist, Lawrence Yun.

November was originally going to be the last month in which sales to first-time homebuyers would qualify for a federal tax credit of up to $8,000. However, that deadline was extended and expanded, and buyers now have through June to purchase homes.

The strength of sales in November surprised the industry. A panel of experts compiled by Briefing.com had forecast month-over-month sales growth of just 2.5% to 6.25 million from 6.1 million a month earlier.

The sales total was a also huge improvement over a year ago. Sales rose 45.7% over the paltry annualized rate of 4.49 million units during November 2008.

The contribution made by first-time buyers is evident in a separate survey NAR conducted of its members. They estimate that 51% of sales in November were by newcomers to the market, up a point from 50% in October. Normally, first timers account for about 40% of sales.

Also propelling sales higher were rock-bottom interest rates. The average for a 30-year, fixed-rate loan during the month was just 4.88%, down from 4.95% in October and 6.09% a year ago.

With rates that much lower, homebuyers can save more than $150 a month on a $200,000 mortgage.

Responsibilities of Renting in the Winter

12/16/2009

Winter Renting

Cold weather has reached the Treasure Valley for the winter. With that come the issues that arise from freezing temperatures, most prevalently snow and freezing pipes. We had a long string of cold days that I think everyone is glad to see go, but in its wake was a plethora of frozen pipe issues. For those owners and tenants with affected properties know that you are not alone. There are a few things that can be done during this time period to prevent any issues they include.

· Keeping the heat at least 55 degrees or higher

· Keep your garage closed at all times

· Close the vents in the foundation of the home

· Keep sidewalks and driveways clear of snow as to not incur an HOA fine

If heater and water issues do arise fill out a maintenance request order online and the will be handled as first priority. Thank you for the help during the winter months and Happy Holidays from all of us here at Park Place.

Going the Extra Sales Mile

12/10/2009

Park Place Property Management pays no attention to normal business hours, and we see the benefit with very low vacancy rates. Park Place answers the phones from 8:00 AM to 9:00PM Monday through Saturday. We have found that many people look for rentals on Saturday and feel that we gain a huge edge by providing to potential customers service during the weekend, and after business hours. Something that we have found is not being done by any other Management company in this area. This study below conducted by www.rentmarketer.com gives some hard figures to our theory.

We collect a massive amount of data that helps us improve the efficiency of online rental advertising. One piece of data we recently collected was total leads that are generated after business hours? During our research, we found that 32.79% of phone and email leads come after the normal 8 – 5 business hours. The graph is below:

There is also a correlation between the amount of time it takes to get back to a potential resident and filling vacancies. In fact, a recent MIT study shows that the odds of contacting a lead in 5 minutes vs 30 minutes drops by a factor of 100.

Advertising

12/05/2009

Most of Park Place’s advertising is focused on online advertising and with good reason. Here is the result of a survey done of 1,000.00 rental seekers. 72% say they begin their search online. In fact, only 17% go to the newspaper, 5% look for yard signs, and another 5% rely on referrals from friends and/or family. When asked, "On average, how many rental sites do you search to find a rental?” an astonishing 25% selected more than ten sites. In total, 93% of respondents indicated that they search at least two sites or more when looking for a home to rent.

Additionally, a study conducted by Rent.com reports that 67% of renters think of using a search engine to locate a home, while only 21% think of using a specific site. This means that 2 out of 3 potential tenants begin their search on Google or Bing rather than going to a specific site.

Park Place syndicates out to over 200 different web sites so chances are that if they are searching online for rental property in the Boise area it will be difficult not to see a Park Place advertisement. www.parkplaceid.com/Advertising.aspx

Boise Idaho real estate agents and investors have great opportunity

12/04/2009

Category: Boise Idaho real estate.
Tags: Boise, Boise Idaho real estate, Boise Idaho real estate agent, Boise real estate, Boise real estate agent, Boise real estate investment, Boise Short Sales, Idaho short sales

Boise Idaho Short Sale Steps with Lender

12/03/2009

Category: Boise Idaho real estate, Short Sales, Uncategorized.
Tags: Boise Idaho real estate, Boise Short Sales, Homes for Sale in Boise ID

One of the keys to a successful closing on a short sale in Boise, Idaho is submitting a complete package to the negotiator for the short sale sellers lender. Once the lender is contacted you will be assigned a negotiator that will be your direct contact with the lender. These negotiators are extremely overwhelmed and the more complete and professional your package is the easier it is and quicker the lender will get you submitted for approval. Each lender has it’s own criteria but most require these fundamental documents prior to approving the short sale. The information requested is extremely personal and specific. Great care should be taken to provide the seller with security that the information is kept confidential between the parties.

1. Loan information release form: This form is signed by the seller of the property allowing the real estate agent authorization to receive information about the loan made to the seller.

2. Purchase and sales agreement: The purchase and sales agreement are the terms and conditions that a buyer has agreed to purchase the subject property for less than is owed by the seller. The purchase and sales agreement should stipulate that it is subject to ‘Third Party’ approval.

3. Hardship letter: The Sellers lender will require a hardship letter that explains in detail why the seller is unable to make the payments on the subject property. As much detail as possible explaining the ‘hardship’ is preferable. All information is private and must be guarded by the real estate professional and lender.

4. Loan approval for Buyer: The sellers lender will require verification that the purchaser of the sellers ‘short sale’ has unconditional loan approval. The short sale sellers lender want’s the highest certainty that the subject property will close.

5. Most recent W-2 for seller: Part of the seller’s lender package is request for financial information. That can include tax information and pay stubs. If seller is an independent business person financials and profit loss statements may be required.

6. Bank statements: sellers short sale lender will typically request copies of the sellers bank statements for last 2 months. The lender wants to see what accounts and reserves are available to the seller.

7. Listing agreement: The listing agreement between the seller and the real estate company is required by the sellers lender. This demonstrates to the sellers lender that the property has been marketed for a certain marketing period.

8. Estimated proceeds and expenses: The sellers lender will require an estimated HUD-1 closing statement. The estimated HUD-1 (Housing and Urban Development) closing statement includes the fees that the seller’s lender will pay and any proceeds allowable to any other lien holders behind the sellers first lender. Any taxes, homeowner’s fees, or expenses will be sent to the sellers lender for approval.

Understanding these steps can greatly enhance your ability to succesfully close a Boise, Idaho short sale.

6:15 am mst Comments

Important Things to Know About Short Sales in Boise, Idaho

12/02/2009

Tags: Boise Homes, Boise Short Sales, Buying a Home in Boise ID, Foreclosures in Boise ID, Homes for Sale in Boise ID, Short Sales, Short Sales in Boise ID

I’m sure a lot of you haven’t been able to turn on the TV these days without hearing something about “short sales.” Don’t worry too much if you think you’re the only person around who isn’t fully up to speed with exactly what a short sale is, a lot of people are in your shoes. Many think they know what a short sale is, but actually misunderstand some of the key things to know about short sales. A short sale is when the home is worth less than the existing mortgage and the homeowner usually has stopped making payments. Sometimes the owner is still making payments, but the value of the home has decreased substantially.

At this point, there are only two options left, a foreclosure or a short sale. The foreclosure will have to be carried on the bank’s books and on the credit report of the homeowner. A short sale could avoid this. The buyer will probably have to pick up most of the closing costs and the bank will not make many concessions, still a good price on a home can be open to the buyer. Short sales will take more time than the usual closing so you must be patient.

When you decide on your price for the home, you should also contact the lender. The lender must agree to the price of the short sale, no matter what the seller tells you. The bank may not even know that the home is up for sale. The bank may see that the owner is still paying the mortgage and is in good financial condition, thereby, refusing the escape valve of the short sale.

Hiring a good real estate agent to walk you through this process would be wise. Now, not all real estate agents have experience in short sales. Complex issue may arise that require a great agent, such as two liens against the home. If the bank believes it can recover more money through a foreclosure, it will not accept a short sale. In the Boise, ID area many short sale properties are available and there are a lot of expert real estate agents to assist you in becoming a homeowner.

Blog Archive

12/01/2009

Renting in Winter

Winter renting sounds worse than it actually is. I can’t speak for other areas of the country or other points in time, but if this winter shapes up anything like last year, having a vacancy in a cooler month is not as big a problem as in the past. Last winter Park Place racked up several record breaking months of leases signed through the winter months with the top month being February, with more than 60 leases signed in one of the shortest months of the year. While this is a surprising trend it does not break our hearts to see it happen. We did see the period between Christmas and New Years stay quite slow, which I think everyone expects but other than that phones were ringing and properties were coming off our vacancy list. So if we receive a dreaded 30 day notice to vacate for your property this winter don’t be too disheartened it is likely we will get it off the market again soon.

3:08 pm mst Comments

Tuesday, November 10, 2009

Home Buyer Tax Credit FAQ

Check out the Tax Credit FAQ page.

http://www.federalhousingtaxcredit.com/

7:01 am mst Comments

Thursday, November 5, 2009

Evictions

Evictions in the Treasure Valley are at an all time high. In speaking with other property managers and local law enforcement September and October were a total nightmare, with evictions within some companies rising 100% to 200%. Hopefully November will improve, however with many seasonal summer jobs coming to an end it is difficult to know what to expect. While a tenant just leaving the house without paying rent is bad, at least it’s a result, a result that allows us instant access to the house the get it turned around and ready to rent. Evictions take a long time; waste everyone’s money, and generally when evicted, people leave the house in rough shape. Park Place fortunately has not seen a rise in eviction proceedings but it seems one is consistently in the works. On most occasions we are able to get people out of a house without having to go to court. We are always working to keep people in houses but when they go we do our absolute best to get the house rented again in a timely manner.

8:05 am mst Comments

Wednesday, November 4, 2009

First Time Home Buyer Extension Update

The first time home buyer tax credit extension and expansion is ALMOST done! It has been a long, winding road but we have almost reached the destination. Diana Olick of CNBC reported today that it is almost a done deal that the extension and expansion will be signed on Friday. Lawmakers in the Senate moved closer to signing the bill by voting 85-2; this would extend the home buyer tax credit until April 2010 rather than November 30th, 2009.The next step is for Senate Republicans to finalize the vote; this could be interesting as some of these Republicans are unhappy with the Democrats for blocking their amendments to the plan. With that being said, many analysts feel that we are going to see this extension sealed due to the Senate vote last night.The new plan will extend the current $8000 tax credit for new home buyers through April 30th and will also offer a $6500 tax credit for move up buyers who have been in their current residence for over five years. This extension could be very important in the continued effort to stabilize the housing market. Not only are first time home buyers going to receive a tax credit but so will “move-up” buyers; now it is time to find out if this will help to increase home prices.

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Monday, November 2, 2009

PPPM Update for November

Fall is here and the buzz of summer is beginning to subside as move outs slow and our vacancy list shrinks even more. Park Place continues to rent properties on a consistent basis keeping our vacancy rate at around the 2% mark. We are proud to boast that this is well below the valley average that has ranged from 5.5% to 10% in the residential sector. Park Place continues to exude sizable amounts of time and effort in collecting rents each month. Money is tight everywhere and we put in the time to make sure that rent payment is at the top of the priority list for our tenants. We remain tireless in our efforts each month, calling people several times a day and stopping by to collect. Tough times take hard work and all of us here at Park Place are doing what it takes to manage your property effectively through a less than ideal economy.

7:05 am mst Comments

Thursday, October 29, 2009

$8000 First Time Homebuyer has been Extended

You have most likely heard about the tax gift of $8,000 which was set to expire at the end of November this year. This is has created a great opportunity if you were a first time homebuyer but now this gift has just been approved and extended to existing homeowners as well! At this time we know the $8,000 tax gift extension has been approved but we don’t have all the final details as they are still being finalized. Here is what we know so far: — The tax credit would be $8,000 for first-time home buyers and $6,500 for move-up buyers (from December 1, 2009 to April 30, 2010).— Move-up buyers will be eligible, so long as the home they are leaving has been used as their principal residence for 5 years or more. — The tax credit would sunset on April 30, 2010. However, there would a binding contract rule that will permit those with contracts as of April 30th to qualify for the credit so long as they complete the transaction within 60 days.— The income limits for both first-time home buyers and move-up buyers would be $125,000 for single return and $225,000 joint return.— Cost of the home may not exceed $800,000 to be eligible.— For purchases made in 2010, taxpayers would be able to claim the credit on their 2009 income tax return.— Home buyers would not have to repay the credit, provided the home remains their principal residence for 36 months after the purchase date.— The amendment includes a military waiver provision, meaning the recapture provision would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on qualified official extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.— The amendment also includes anti-fraud language that provides math authority to the IRS to do greater oversight during the processing of the return rather than waiting for an audit situation. The amendment requires the taxpayer claiming the credit to be 18 or older as well as requiring a HUD-1 settlement statement to be attached when claiming the credit.

10:39 am mdt Comments

Saturday, October 24, 2009

2009 National Association of Residential Property Managers (NARPM) Convention

Currently we are sitting in the Orlando Airport waiting on my flight back to Boise, and we hope to be able to take the new ideas we have learned to make Park Place Property Management better. We highly recommend that no matter what profession you are in, seek out your trade association, join, and become active in it. Since Park Place became involved in NARPM, our company has become much more efficient, creditable, and profitable.

3:55 am mdt Comments

Thursday, October 1, 2009

Internet Rental Scam Alert

Your Governmental Affairs Committee wants to warn you about an internet rental scam that has been making its way around the country. Scammers are copying information, photos and text, from legitimate online rental ads and then posting that information on Craig’s List. It is listed with a significantly reduced rent and the property manager’s contact information has been replaced by the scammer’s. In some ads the text is full of misspelled words and bad grammar but not always. This is because many of the scammers are operating outside the country, typically Nigeria, but many cases have also involved local scammers who are able to meet potential tenants in person. With international scams, the potential tenants are usually required to send the deposit and first month’s rent through Western Union and are promised that the keys will then be over-nighted to them. Local scammers are often able to copy a key or simply break into a vacant property and replace the door lock with their own so they can actually provide the new tenant with a legitimate key. In one situation an unsuspecting tenant was actually able to completely move into an apartment without the knowledge of the legitimate property manager. The property manager was only alerted to the problem when the tenant called the office to request that the “For Rent” sign be removed from their front yard.

These scammers are often very sophisticated and can play the part of a legitimate property manager well enough to fool potential renters. Make sure you are checking your vacant properties and Craig’s List on a regular basis. If you find an unauthorized ad flag it so that others will know that it may be fraudulent and contact Craig’s List to request that they remove it from their website. Some property managers have even posted an additional listing with the same name but included, “THIS IS A SCAM” or similar language at the end of the post to help warn people. This way it will come up in the listing right after the fraudulent post and give the property manager an opportunity to provide the correct information.

The FBI has received countless complaints about this and other rental scams but they explained that this type of crime is low on their list of investigative priorities. If one of your properties gets caught in this scam, we recommend you visit www.IC3.gov and report the crime. The Internet Crime Complaint Center (IC3) is a partnership between the Federal Bureau of Investigation (FBI), the National White Collar Crime Center (NW3C), and the Bureau of Justice Assistance (BJA). IC3's mission is to serve as a vehicle to receive, develop, and refer criminal complaints regarding the rapidly expanding arena of cyber crime. If you encounter a potential tenant who has been scammed and made the mistake of providing sensitive personal information such as their social security number, it is highly recommended that they go ahead and put a freeze on their credit.

10:07 am mdt Comments

Tuesday, September 15, 2009

September 2009 Park Place Post

September 2009 Park Place Post

Hello from Park Place. It has been a very busy summer here for many different reasons. Even though the days are longer, the work days seem shorter due to the effort it takes to manage your property effectively. This economy is not easy for anyone, and unfortunately, it is no different in Idaho.

Tenants interested in Park Place rentals remained steady the past several months and rental pricing, while low, seems to be holding. Month after month we continue to stay in the 2% vacancy rate range. This percentage is in no way a valley average which has ranged from the 4% to 11% in the past year. We attribute this partially to a good supply of renters looking for houses but mostly to the extremely aggressive tactics we use to advertise your property. With the amount of turnover we are having due to financial hardship, people downsizing, or using the first time home buyers credit to purchase a home, we are proud to have the formula to rent houses quickly.

Rents continue to be a struggle to collect each month from a never before seen portion of tenants. In talking to other management companies, this seems to be an area wide trend. The slouching economy has in no way passed the valley over. We try our best to work with tenants that have come through with commitments to pay in the past. In addition to getting rent late, we are having many of our tenant’s vacate the property and do not pay. Skipping out on leases has been a trend that we would love to see go away. However in this economic climate, it is a battle we fight on a daily basis. We remain vigilant in our pursuit each month to collect full rent from each tenant.

Late summer is also crunch time for HOA and CC&R violations and fines. If you receive any documentation from those businesses, please forward the notices to us as soon as possible. We will contact your tenants and have them take care of the issues. Many of these companies do not send notices to the rental houses. We have seen a large decrease in the notices this summer, the weed and feed application many of you opted to do this spring was a contributing factor. However If the tenant does not assist in taking care of the lawn we still get notices. We also have a lawn company at Park Place. We can correct the problem and try to collect from your tenant. Let us know if that is the route you would like to take.

House prices are at historical lows in all sectors of the market, distressed homes also make up a significant portion of what is available. Many of these homes are perfect single and multifamily investment properties, that if purchased now would cash flow immediately. This is an opportunity our area has not seen in quite some time. If you are interested in possible investment opportunities or know someone who is, please contact us.

Thank you for your business and rest assure that we are working harder than ever to protect your investment. Let us know how we can assist you in the future.

7:19 am mdt Comments

Tuesday, September 1, 2009

Protecting Tenants at Foreclosure Act

Protecting Tenants at Foreclosure Act

On May 20th, President Obama signed a new law that included the “Protecting Tenants at Foreclosure Act” (PTFA) which provides additional protections to bona fide tenants living in foreclosed homes. The Center for Housing Policy recently hosted a conference call forum regarding this Act featuring Catherine Bendor of the National Law Center on Homelessness & Poverty, Danna Fischer of the National Low Income Housing Coalition, and David Rammler of the National Housing Law Project. The 30-minute call briefly covered the legislative history of the provisions, the meaning of the law and the impact of the provisions on state and local laws and practices. The audio from this forum has now been posted to their website and can be accessed by clicking here. After the call there was an online Q&A session, click here to see how the panelists responded to questions.

On September 22nd, the Center for Housing Policy will be hosting an additional conference call forum on the Act along with an online Q&A session. This call is open to the public but specific information has not yet been released about the time or how to access the call. Please check their website in the coming weeks for more details.

This information is provided solely for the purpose of offering NARPM® members additional opportunities to learn about the PTFA. The non-profit organizations represented in this forum are not affiliated with NARPM® nor does NARPM® necessarily endorse the views and opinions they express. We hope that you will find this information useful as you begin to deal with the changes set forth by this new law.

Maintenance Charges

12/01/2009

Maintenance calls are expensive; I think everyone can agree on that. In the Treasure Valley just to get a technician to your door, ranges from $95.00 to $200.00. Keep in mind this is before they even pick up a tool, or look at your issue. For this reason Park Place has a number of things we do to combat high maintenance bills. First off, we have our own maintenance staff that does not charge a doorbell fee, and charges a below average hourly rate for any repair we do, from remodel work on up to HVAC issues. We also make every effort to troubleshoot the issue by phone with the tenant, which solves 25% to 35% of most issues and doesn’t cost a dime. Repair issues are never welcome, however we have seen time and time again that keeping on top maintenance issues in a timely manner, keeps tenants happy and in there rentals longer. This lowers overall investment cost. Nothing is more expensive than a vacancy.

Check us out on our new social networking websites

07/14/2009

11:33 am mdt Comments

This article is a must read for any Idahoan!

Today all we ever hear is the negative news. Below is a link to a story on MSNBC which talks about Idaho’s job recovery being in the top 5 of the nation. I wanted to pass this on to you to lift your spirit and give you the opportunity to send this on to anyone else you know.

If you want to be in the right place when the recovery starts, that place may be in Colorado, Idaho, Oregon, Texas or Washington…

http://www.msnbc.msn.com/id/30991972/sp-tx/page-1

New Law Impacts Foreclosed Property Tenants

06/02/2009

“Helping Families Save Their Home Act of 2009” (S.896) was signed into law by President Obama on May 20, 2009. The bill was sponsored by Senator Chris Dodd (D-CT) and included the “Protecting Tenants at Foreclosure Act” and amendments to Section 8 of the “United States Housing Act of 1937.” Both portions of the bill set forth a new 90 day rule for tenants living in a foreclosed property.

Effective immediately, tenants can remain in the foreclosed home until the end of their lease, unless the bank sells the property to someone who intends to make it his/her primary residence. Even without a lease, renters must be allowed to stay in their home for 90 days after the foreclosure. The bill included a sunset clause which scheduled this provision to expire at the end of 2012.

The bill text for these two sections of the bill has been pasted below. Click here to access the full bill text. Click here to access a recent Washington Post article about the new law.

TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT

SEC. 701. SHORT TITLE.
This title may be cited as the `Protecting Tenants at Foreclosure Act of 2009'.

SEC. 702. EFFECT OF FORECLOSURE ON PREEXISTING TENANCY.
(a) In General- In the case of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property after the date of enactment of this title, any immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to--

(1) the provision, by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice; and
(2) the rights of any bona fide tenant, as of the date of such notice of foreclosure--
- (A) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90 day notice under paragraph (1); or
- (B) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90 day notice under subsection (1), except that nothing under this section shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants.

(b) Bona Fide Lease or Tenancy- For purposes of this section, a lease or tenancy shall be considered bona fide only if--

(1) the mortgagor or the child, spouse, or parent of the mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length transaction; and
(3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit's rent is reduced or subsidized due to a Federal, State, or local subsidy.

(c) Definition- For purposes of this section, the term `federally-related mortgage loan' has the same meaning as in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602).

SEC. 703. EFFECT OF FORECLOSURE ON SECTION 8 TENANCIES.
Section 8(o)(7) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(7)) is amended--

(1) by inserting before the semicolon in subparagraph (C) the following: `and in the case of an owner who is an immediate successor in interest pursuant to foreclosure during the term of the lease vacating the property prior to sale shall not constitute other good cause, except that the owner may terminate the tenancy effective on the date of transfer of the unit to the owner if the owner--

(i) will occupy the unit as a primary residence; and
(ii) has provided the tenant a notice to vacate at least 90 days before the effective date of such notice.'; and

(2) by inserting at the end of subparagraph (F) the following: `In the case of any foreclosure on any federally-related mortgage loan (as that term is defined in section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602)) or on any residential real property in which a recipient of assistance under this subsection resides, the immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to the lease between the prior owner and the tenant and to the housing assistance payments contract between the prior owner and the public housing agency for the occupied unit, except that this provision and the provisions related to foreclosure in subparagraph (C) shall not shall not affect any State or local law that provides longer time periods or other additional protections for tenants.'.

Park Place Property Management Boise Nampa Caldwell Kuna Meridian Idaho Rental Homes Apartments Rent

01/12/2009

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Boise Idaho Short Sale Steps with Lender

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Important Things to Know About Short Sales in Boise, Idaho

Blog Archive

Internet Rental Scam Alert

Protecting Tenants at Foreclosure Act

Maintenance Charges

Check us out on our new social networking websites

New Law Impacts Foreclosed Property Tenants

TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT

Park Place Property Management Boise Nampa Caldwell Kuna Meridian Idaho Rental Homes Apartments Rent

Category: Boise Idaho real estate.
Tags: Boise, Boise Idaho real estate, Boise Idaho real estate agent, Boise real estate, Boise real estate agent, Boise real estate investment, Boise Short Sales, Idaho short sales

Category: Boise Idaho real estate, Short Sales, Uncategorized.
Tags: Boise Idaho real estate, Boise Short Sales, Homes for Sale in Boise ID