Showing posts with label rental property. Show all posts
Showing posts with label rental property. Show all posts

Monday, December 18, 2017

The Mark of Success: 50 Common Traits of Prosperous People

Bill Gates, Warren Buffet, Jeff Bezos, Richard Branson, Mark Zuckerberg, Oprah, Elon Musk; these are some of the most successful people alive today, creating a legacy of contributions to society that also come with unprecedented wealth. But apart from being ultra accomplished, rich, and powerful, they have far more in common than you might think.

In fact, just about every person who is successful at their chosen vocation, whether it’s founding a world-changing charity, being the G.O.A.T. at their professional sport, or building a business empire, has the same traits in common.

Robert Kiyosaki, Warren Buffet, Donald Bren, Donald Trump and others may have built their success based on real estate and shrewd investments, but these traits will apply to the average person, too, helping anyone achieve great things.

Here are our first 25 common traits of prosperous people, and look for 25 more in part two:

1.         They aren't afraid to put in extra work.
People who achieve big things in life invest extra effort, thought, and creativity into everything they do, no matter how big or small.

2.         Sacrifice. 
When you look at those who achieve excellence in any walk of life, the common pattern is that that had to forgo other fun, comfortable, and even profitable activities in order to focus on a much larger goal. However, this sacrifice is always worth it.

3.         They put in long hours doing what they love.
Successful people got the hard work out of the way early, not looking for shortcuts or get-rich-quick schemes. By doing, they learned to refine their work, maximizing the outcome and minimizing the effort so they grow incredibly efficient.

4.         Problem-solving.
Instead of getting derailed by distractions and day-to-day obstacles, they're always focused on the target, asking questions like: how can I improve?  What is lacking or holding me back?  There is a built-in evaluation of every project they undertake.

5.         Self-awareness.
People who accomplish great things in life hold a deep-seeded confidence in their abilities, but also have an honest and accurate sense of their own strengths and weaknesses. 

6.         Curiosity.

Some of the most unlikely experience gives rise to the best ideas.  Great thinkers get outside their bubble, and open themselves up with a relentless curiosity about the world.

7.         Specialization.
They have become better and better at one thing instead of trying to be proficient in many things. They are specialists; not generalists.

8.         Literacy.
There is no substitute for reading and learning, and ultra-achievers read non-stop. Studies show that 88% of wealthy read 30 minutes or more every day. Reading is part of that core skill set, no matter the discipline.

9.         Organization and goal setting.
 81% of wealthy and successful people scratch things off a daily To Do list, compared to only 19% of working class people. Just the act of writing down goals is very powerful, allowing the mind to prioritize and receive a jolt of satisfaction from completing even simple tasks.

10.       Wise use of time.
Successful people use their downtime to inspire their projects and explore other ways of thinking.  Since time is our greatest asset, successful people don't spend theirs on empty entertainment. In fact, 67% of wealthy people watch one hour or less of TV every day, while 23% of poor people do, and only 6% of wealthy watch reality TV shows vs. 78% of poor.

11.       Milestones.
Setting tangible goals with concrete timetables and planning the action steps to achieve them is crucial to success.  Being able to break down big goals into smaller milestones is key, along with constant reevaluation of their plan as circumstances shift. If we don't, then we aren't experiencing progress and our projects quickly lose momentum.

12.       They understand that failure is not the enemy.
They aren't afraid of making mistakes and even failing because they know it leads to growth.  In fact, if they don't go through enough failure in their lives they understand they're not taking enough risks.

13.       Optimism bias.
Successful people don't wait around to get lucky; they create their own opportunities with hard work, smart planning, and confidence in their efforts. In fact, 84% of wealthy believe good habits create opportunity instead of luck, while only 4% of poor believe the same. Furthermore, 76% of wealthy attribute bad habits to bad "luck" vs. 9% of poor.

14.       They take responsibility.
People who own their actions - good and bad - exhibit supreme accountability. By taking responsibility for the outcomes in their life, they are automatically empowered to change and grow.

15.       Flexible thinking.
Mental agility takes practice, but it’s a necessary skill. Successful people have firm moral and ethical values but flexible thinking based on new information, adjusting their sails depending on how they wind blows. 

16.       Create vs. consume.
Instead of just building wealth and acquiring material comforts, they focus on providing value and building something of worth, whether it's a new business, building a house, or forming a non-profit.

17.       Presence of mind.
The single most important step to happiness is focusing on being fully present and immersed in the moment. This, combined with incessant gratitude, is the mark of super successful people.

18.       Motivation.
Mega high achievers dare to dream about the unattainable...then they attain it!  In fact, 80% of wealthy and successful people are focused on a singular goal – and never take their eye off the ball.

19.       Persistence.
They just don't quit, because it's not even an option. You hear great minds talk about setbacks and disappointments, but they understand that their success is earned by bouncing back.

20.       Dissatisfaction with the status quo.
It’s really about developing a vision rather than accepting mediocrity. 

21.       They lock in and focus – not multi-task.
Multi-tasking is a myth that amounts to “do everything badly.” The human brain can only fully focus on one thing at a time.  Successful people know this and don’t try to juggle – work in immersed short bursts of concerted effort.

22.       Tireless ambition.
Achievers don’t compromise, soften, or quit on their goals. They forgo the safety of too much routine and instead push toward larger self-directed achievements.

23.       They seek out positive learning relationships. 
No one gets great in isolation, and any genius will tell you that they had tons of mentors and also taught themselves.  Exchanging ideas with people who are not like you but may have complementary skills can push you from being very good to excellent.

24.       They surround themselves with people they emulate.
Understand that whoever you spend the most time with is going to determine what you do yourself. Therefore, seek out positive, inspiring, energetic, kind, and dynamic people as friends, co-workers, and collaborators.

25.       They’re consummate networkers.
As the saying goes: your network is your net worth.  We have to talk about our projects in the same energizing way that successful people do to draw in support and create partnerships. In fact, 79% of wealthy people network five hours or more each month to move their projects forward.


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Wednesday, August 23, 2017

Inside the world of landlords – attitudes, challenges, and fears of investment property owners

Currently, there are 111,532,119 renters in the U.S., with 2,654 new renters every day. But there are also 22,910,370 landlords or rental property owners in the U.S., which means 1 in every 14 or so people are landlords in America. 

While some may think that being a landlord is all sitting back and collecting profit, the reality couldn’t be further from that perception. In fact, landlords exercise a tremendous amount of time, risk, work, their own money, and even legal exposure.

But when done correctly, they ensure the win-win scenario of making a good investment AND providing a safe, comfortable, and nice home for deserving renters.

You’ll find hundreds of blogs about renters and the rental market, so today, we wanted to bring you a profile of landlords, including their attitudes, fears, and challenges with being property owners. I break these down into the categories of Tenant screening, Repairs & maintenance, Landlord stressors, problems, & fears, Profit!, The dreaded “E” word (eviction), and the Damage Deposit.

Landlord stressors, problems, & fears:
The #1 concern for landlords is non-payment of rent.

Only 51% of landlords say that being a landlord is more attractive or lucrative than it was a year ago, a shockingly pessimistic stat.

Even worse, 33% say that it’s less attractive or lucrative to be a landlord now compared to a year ago.

According to surveys, this is what stresses out landlords the most:

22% Loss of income
22% Troublesome tenants
16% Maintenance
13% Tenant evictions
12% Tenant turnover
10% General stress of the role
5% Staying on the right side of the law

A second survey yields similar landlord stressors:

18% High turnover of tenants
12% Tenants not paying rent
10% Keeping up to date with safety checks and
8% Keeping up to date with changes in legislation
5% Finding good tenants
5% Property maintenance
3% Time consuming

But when asked if they’ve ever had to deal with a problem tenant, 51% of landlords surveyed said “yes,” while only 49% had not.

Profit!
88% of property managers were able to increase rental prices in the last year.

In fact, rental properties now generate 31% of the average landlord’s annual income!

Homeownership rates are at a 50-year low, but at the same time, rental inventory is at a 20-year low, causing the average renter to spend 10.4 weeks looking for a new home or apartment!

California is ranked #4 (behind D.C., New York, and Hawaii) for states with the highest percentage of renters. In fact, 43% of California residents now rent.
88% of the property managers they surveyed increased their rental rates over the past year.

Tenant screening:
36% of landlords just “trust their gut” when screening renters, and not all run eviction reports or criminal background checks.

38% didn’t screen a particular potential tenant because they “didn’t raise any red flags.”

13% didn’t want to spend the money to screen tenants properly, and an astounding 21% of landlords just weren’t aware that they could screen tenants online.

But more than 95% of landlords say that tenant screening is beneficial – they just aren’t doing it or doing it right.

When screening prospective tenants, 59% of landlords felt that a steady income was more important than a solid credit history.

Another shocking revelation is that 66% of landlords would overlook a relevant criminal history when accepting a renter.

But only 56% of landlords would take a tenant if their credit was bad!

These days only 38.6% of renters have a credit score of 660 or above.

Unfortunately, many landlords set up their tenants to fail because they accept applications they shouldn’t (costing themselves a lot of money and aggravation in the process.)

For instance, 40% of potential tenants are cost burdened, which means they would be paying more than 50% of their income in rent, which magnifies the risk of late and missed payments.

Repairs & maintenance:
According to data, the most common (and costly!) maintenance problems for landlords include:
·      Smoke detectors
·      Water heaters
·      Getting keys organized
·      Pests like termites, ants, roaches, etc.
·      Furnaces and flues
·      Clogged sink drains and toilets
·      Electrical systems

When it comes to their opinion or renting a tenant with pets, landlords are just about split down the middle, as a pet can cause a lot of damage.

 In fact, 53% of landlords said that they would rent to a tenant with pets compared to 47% would not.

The dreaded “E” word (eviction):
The average eviction now costs landlords $3,500 and takes at least 3-4 weeks (past the month(s) of non-payment. However, if not handled correctly the first time or in extenuating circumstances, there have been cases where evictions cost the landlord up to $10,000!

Interestingly, new eviction filings spike in the summer months, specifically July, August and September every year.

The damage deposit:
54% of rentals have tenant turnover every year.

Landlords commonly have to withhold a tenant’s deposit because of maintenance issues, damage to the property, or other conditions. The common reasons include:

49% State of the garden/lawn/landscaping
15% Damage to fixtures and fittings
13% Cleaning
12% Rent in arrears
1% Damage to furniture
9% Other damage


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If you have any questions about purchasing a rental property, being a landlord, or even how  a property management firm can help you, feel free to contact us.

Wednesday, February 24, 2016

Do you own rental homes? The city is coming to inspect your property, and here is everything you need to know to be prepared.

Dear Property Owner;

Pursuant to section 16.20.900 of the City of Sacramento Housing Code, rental housing property shall be subject to inspection…

If you’re a landlord or investment property owner in Sacramento city, county, or even surrounding counties, you very well might have received a letter starting like this recently. In fact, rental housing programs are a vital tool to ensure that landlords maintain safe, clean, and livable standards for tenants who pay good money to occupy these properties. Conversely, the rental housing inspection is valuable for landlords and owners, who get to make sure the tenants are keeping their property in good condition and following all housing and community regulations.

From the Rental Housing Inspection Program web page for the City of Sacramento:


“The purpose of the Rental Housing Inspection Program is to address the issue of substandard rental properties, promote greater compliance with health and safety standards and preserve the quality of Sacramento’s neighborhoods and available housing. The program achieves compliance of health, safety and welfare code violations in/on residential rental properties that are a threat to the occupant's safety, structural integrity of the building, and a negative impact on the surrounding neighborhoods.”

While there is some expense and effort required of the landlord, the inconvenience should be minimal.

I’ll base this on Sacramento city’s program and then give links for Sacramento County and surrounding areas, too.

1) Property owner registers their rental unit with the city program.
This is done with a quick rental housing registration form that confirms the mailing address, how many units are on the property, etc. Registration packets will be mailed to property owners but it’s up to the property owner to proactively register in case they did not get one.

2) Pay the program fee.
To register with the Rental Housing Inspection Program there is a $16 fee. For the actual unit inspection, there is a $127 fee for each unit ($254 for a duplex, etc.)

3) An inspection will be scheduled.
Notices of scheduled inspections are sent to the owner with at least two weeks notice until the appointed times, but usually more. The appointment will have a date and time of the inspection. A separate appointment letter will be sent to the tenant, along with a consent form for them to allow entry if they cannot be present at that time.

4) The unit will be inspected.

5) Inspection findings will be reported.

6) Based on the findings, the tenant and landlord need to bring the property in compliance.
If the inspector finds items that need to be addressed or fixed, the owner will have 30 days from the initial inspection. Failure to do so will result in additional fees, as well as missed appointments or appointments rescheduled outside of a 7-day window. The city will come out to re-inspect the property to make sure the necessary items were fixed/addressed properly.

7) Enrollment in the Self-Certification Program for future inspections.
If no violations were found on the property at the time of the inspection, or they were subsequently corrected, the inspector will issue an approval and the property will “graduate” to the Self-Certification Program.

8)  Going forward.
The Self-Certification Program allows owners to perform their own inspections each calendar year (or upon change of tenant), instead of scheduling a city inspector. Property will fill out the same inspection checklist and submit it to the city, and retain for their records.

The city will randomly inspect units enrolled in the Self-Certification Program (about 10% of those units are still inspected) to make sure property owners are actually in compliance and doing the work.

As long as no violations or issues are found, the property can remain in the Self-Certification program.

Some common questions about Sacramento’s Rental Housing Inspection Program:

Is it mandatory for property owners to register in the Rental Housing Inspection Program and pay the fees?
Yes. Failure to do so is a violation of city statutes and code enforcement will be notified.

Are there any exemptions to the program?
If rental properties are regularly inspected by another agency or the housing unit is less than five years old, property owners may file for an exemption.

What if property owners live out of the area or out of state?
If it is not feasible for a non-local property owner to attend the scheduled rental inspection, they can assign a Local Contact Representative to let the inspector in and be present the day and time it is scheduled. This can be a friend, real estate agent, property manager, or relative. As long as they are listed on the registration form and their contact information and signature are valid

What are the most common violations?
According to the City of Sacramento Code Enforcement Department, the ten most common violations are:

1)   Lack of working smoke detectors
2)   Faulty electrical service or panel
3)   Not having GFCIs in the bathroom
4)   Lack of weather protection on the roof
5)   Front door that does not have door viewer (peephole)
6)   Water heater installed improperly
7)   Improper roof venting
8)   Unapproved plumbing
9)   Hazardous wiring
10) Inadequate permanent heating


Where do I get more information about the Rental Housing Inspection Program or contact the city?


CONTACT US
Phone: (916) 808-7368
Fax: (916) 288-9955
NOTE:
For appointment changes, rescheduling, etc. or for urgent matters please contact us by phone as e-mail replies are subject to delay.

We’ve also attached some common forms that you will need if you’d like to get started. Or even if you are not in the city or a county that requires these inspections, you might want to proactively inspect your own units with this checklist.

Sacramento County has its own program, pursuant to Sacramento County Code 16.20.900. While the basis is the same, there are some fundamental differences to registration, fees, the self-certification program, and inspections.

You can find out more here:


or contact the appropriate county office at:
916-876-9020 phone / 916-874-8409 fax

9700 Goethe Rd. Suite A, Sacramento, CA 95827 

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Email us if you'd like a copy of all the relevant forms you need to go through the rental property inspection process.