Service Animals Q & A

Service Animals

Q: What defines a service animal?

 A: The ADA defines service animals as a guide dog, signal dog, or other animal individually trained to provide assistance to an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability.

Q: Does a service animal need to have any identifying collar or harness?

A: Although many service animals wear special collars or harnesses, by law they are not required to wear any special identification equipment.

Q: How can I tell if my tenant or applicant requires a service animal.  They do not look disabled to me.

A: When it is not obvious what service an animal provides, only limited inquiries are allowed.  Staff may ask two questions: (1) is the animal a service animal required because of a disability, and (2) what work or task has the animal been trained to perform.  Staff cannot ask about the person's disability, require medical documentation. require a special identification card for the animal, or ask that the animal demonstrate its ability to perform the work or task.

Q: Can I still charge a security deposit for a service animal?

A: No.  "Pet" deposits cannot be charged for service animals.  Nor can you charge "pet rent".

Q: I have a tenant that has a service animal that is never on a leash.  He barks and is disruptive.  He has bitten a member of my staff.  What, if any, recourse do I have?

A: Service animals must be under control of their owners at all times.  If a leash or harness interferes with the animal's work or the individual's disability prevents the use of these devices, the individual still must maintain control through voice, signal or other effective control.  If you have a service animal that is out of control, you can issue a lease violation.

Athena Magruder 

VP Operations

Mission Real Estate & Property Management, Inc.
3600 Pegasus Dr #15 Bakersfield, CA 93308

www.MissionRE.com

Thinking about making your home rental or apartments smoke free?

Thinking about making your home rental or apartments smoke free?

A few articles ago I quoted the price of an average 2 bedroom turn at $4,000.  This includes the cost of vendors, replacements, advertising and payroll for the leasing agents.  That cost is multiplied exponentially if your tenant was a heavy smoker.

“To turn the unit, it costs at least 3-4 times more if the person in the unit was a heavy smoker,” says Eric Wiegers, California Apartment Association Senior Vice President Communications.

That is significant.  If you are already looking at a $4,000 bill, tripling that cost will triple the time it takes to realize a return. 

Let’s say you are charging $800 rent on a two bedroom.  For this example, let’s assume that your tenant left your apartment in a reasonable condition and it only costs you $2500 to turn your unit.  At that price it will take you approximately 4 months to see a return on that investment.  If you have a heavy smoker and need to fully restore your unit you are now looking at nearly a full year of rent to recoup your cost.  With the average lease term running 12 months in California, you are turning your units faster than you can realize a return.

So how will you stop the bleeding and increase your NOI?  Many owners are now restricting smoking to the exterior of their units.

Mission Real Estate & Property Management has a lease addendum available that can instruct your tenants regarding a smoking ban within your units.  Call us if you have any questions on transitioning your investment to a non-smoking property.

http://www.missionRE.com

Athena Magruder

VP Operations

Mission Real Estate & Property Management, Inc.
 3600 Pegasus Dr #15 Bakersfield, CA 93308

(661) 829-7839

Bakersfield Rental Demographics

Know your Customer and Know your Price Point

Effectively marketing to your target demographic and knowing if your asking price is reasonable are the keys to properly renting your investment property.  The information below should give you a starting point. For further information or for a property specific quote, please call (661) 829-7839.

Bakersfield Demographics and Average Rental Prices by Neighborhood

Bakersfield Median Age: 32
Bakersfield Median Income: $39,982

Neighborhood            Average Price per Bedroom

42nd St $453 Amberton $375 Artisan $425 Avalon $475 Baker St $333 Belsera $449 Benton Park $342 Brighton $467 Brimhall Estates $467 Campus Park $450 Casa Loma $371 Castle Ranch $360 City in the Hills $500 Country Rose $699 Crystal Ranch $529 CSU Bakersfield $591 Downtown $338 East Ridge $493 East Side $328 Emerald Estates $425 Fruitvale $481 Greenacres $398 Greenfield $358 Haggin Oaks $542 Hampton Woods $517 Hillcrest $387 Homemaker Park $321 Kern City $450 La Cresta $325 Lakeview $275 Laurel Glen $488 Liberty $417 Masterpiece Estates $625 Mobile Town $375 Mondavi $431 Mountain Meadow $524 Oak Ridge $319 Oildale $321 Oleander Sunset $333 Olive Dr $399 Park Stockdale $388 Pheasant Run $431 Polo Grounds $330 Quailwood $376 Rexland Acres $350 Ridgeview Estates $450 Riveroaks $533 Rosedale $449 S. San Lauren $465 Seven Oaks $550 Southern Oaks $450 Spice Tract $399 Stockdale Ranch $508 Stone Creek $492 Stone Meadows $444 Terra Vista $450 Tevis Ranch $445 The Oaks $467 Tyner Ranch $392
Athena Magruder
VP Operations
Mission Real Estate & Property Management, Inc 3600 Pegasus Dr #15 Bakersfield, CA 93308
www.missionre.com
(661) 829-7839 *Pricing information from Trulia.com

Resident Retention

Resident Retention

Does your current management company have a resident retention plan?  Do you have a clear idea of what it is and how they plan to execute it?

Turning an apartment on average costs $4000.  You can calculate your actual cost here: http://www.multifamilyinsiders.com/apartment-turnover-cost-calculator.

A few of those a month could seriously affect your bottom line.

So how do you mitigate these costs?  The easiest way is to staunch the flow of move outs.  A knowledgeable manager has several tricks up their sleeves to accomplish this.  An effective resident retention plan should include the following:

1.       Knowledge of the submarket.  All managers should know what the rental outlook in the city where your asset is located looks like. (If they don’t it’s time for a change!) In addition to that they should be an expert at their submarket, the 5 mile radius surrounding your property.  Touring, market studies and constant communication with their direct competitors is a must.  How can they sell your asset over another if they have no idea what their competitor is offering?

2.       Knowledge of your asset.  This should be a given, but I think if you were to interview your current manager you might be surprised at how little they know about your asset.  Do they know what year was built, what the current demographic is or what your number one lead generation tool is?

3.       Customer Service. This too should be a given but have you had a chance to read your resident’s comments on www.apartmentratings.com? I think you might be surprised by what your tenants say about the current staff and the way their concerns are handled.  No one will resign a lease if they feel that they have been mistreated, their service requests not handled or they get attitude when they come into the office.

4.       Lease expiration matrix. This is not a new idea but it is one that isn’t widely utilized.  Making sure that your lease expirations are spaced throughout the year can lower your vacancy loss significantly.  For instance if you have a 40 unit property, you do not want 8 leases to expire in December (traditionally the slowest leasing month).  Those apartments will likely sit vacant for several weeks, maybe even a few months killing your NOI.  A good manager will make sure that the majority of your lease expirations are occurring in the warmer months therefore making them easier to rent and lowering your vacancy loss.

5.       Vendor Relationships. If your manager does not know your turn vendors on a first name basis, they are probably not getting you the best deal.  Most vendors will offer discounts to the companies that utilize them the most.  They will also make sure that they are mitigating costs and giving you the best service because of the established business relationship.  Your manager should be your number one cheerleader and should be running your asset as if it were his/her own.

Not all tenants will renew.  Some must move for financial, family obligations,  a job or they have purchased a home.  We cannot save every lease.  Make sure you know why your tenants are moving though.  Find out what is your number one contributing factor to turnover.  Then do everything you can to stem the tide.

Athena Magruder

Vice President Operations

Mission Real Estate & Property Management, Inc.
3600 Pegasus Dr #15 Bakersfield, CA 93308
www.missionre.com 

Renters Insurance?

If your current Property Management Company is not requiring your tenants to carry renters insurance, they should be!

The cost to repair a 1,000 square foot apartment in the 93308 zip code from a typical water leak averages over $12,000. (estimate from www.homewhyse.com)  Ask yourself how many tenants do you have that could come up with that much cash to reimburse your expenses?  In my experience there will not be many.

Requiring renters insurance is a must to protect your investment.  For a minimal monthly fee, your tenants will have the liability coverage they need to assure you are not stuck footing the bill and then subsequently tracking down a previous tenant for a debt that they will never be able to repay.

In addition to covering your investment, renters insurance can be a lifesaver for a renter who experiences a burglary.  In November of 2012 (while I was in the hospital after the birth of my daughter) my home was robbed.  In the two hours the house was empty, the thieves made away with over $7,500 worth of my personal belongings.  We were hit again in December, (while we were away for Christmas) for a total loss of over $5,000 this time.  Thankfully we have a renters insurance policy that covered replacements for all of our things.

Mission Real Estate & Property Management requires that all of our tenants carry a minimum of $100,000 in liability insurance.  Our technology partner, Appfolio, makes this process easy for us with integrated insurance solutions.  We are able to offer our tenants liability insurance with rates as low as $9.50 a month. The average renter's policy costs just $185 a year, according to the National Association of Insurance Commissioners.  Very affordable for nearly every budget.

The idea that requiring prospective tenants to carry renters insurance will drive away business is no longer the case.  It is becoming an industry standard.  According to a Rent.com survey, 40% of renters have carried renters insurance.  Nearly half of the prospects we tour will already be familiar with renters insurance. A survey last year for The National Multi-Housing Council, a national association representing the interests of larger apartment companies, indicated that 66 percent of the 45 participating companies required residents to have renters insurance in 2010. That was up from 44 percent in 2009 and was a big leap from 24 percent in 2008. The companies represented a total of 750,000 apartments.

Don't set yourself up for a serious financial liability.  Ensure that your tenants carry renters insurance and save your self the hassle, expense and headache.

Athena Magruder
Vice President Operations
Mission Real Estate & Property Management, Inc.
3600 Pegasus Dr #15, Bakersfield, CA 93308
www.missionre.com

Welcome

Welcome to Mission Real Estate & Property Management, Inc. A Real Estate and Property Management firm servicing Kern County.

Mission Real Estate provides each client with a line of services including:
Full service brokerage firm providing our clients with a full spectrum of services including the acquisition, management and disposition of your asset.
Local representation from a broker and agents that work out of our Bakersfield office.
Ability to work with all types of financingincluding, FHA, VA, Conventional and cash purchases.
Specializing in investment purchases with an emphasis on return.
Ability to coordinate with pre-screened vendors. Due to the volume of business we give our qualified vendors, we have established competitive prices with them. Nevertheless, we still bid out large repairs or improvements to be sure we receive a competitive bid from them.

www.missionre.com