Wednesday, June 30, 2010

Selecting a Tenant -- Leasing a Rental in Los Angeles

When advertising a vacant residence that is appropriately priced in Los Angeles, you are likely to get between 40-50 calls from potential tenants. These potential tenants can of course range from very reasonable and easy to work with to more difficult.

Before you begin the tenant screening process, it is beneficial to develop objective criteria to determine eligibility. This will allow you to fairly evaluate potential tenants in a way that reduces your liability. I have seen cases where a potential tenant will question the legality of tenant screening and it is reassuring to have objective criteria that has been documented prior to beginning the tenant screening process. Obviously all renting criteria must be in accordance with the Fair Housing Act. We often use a credit score minimum combined with a rent-to-income ratio requirement. We find that these requirements are highly correlated with not only a tenant’s ability to honor the financial component of the lease contract, but also a tenant’s ability to take good care of a rental.

Like many things in life, we find that undertaking a large effort to find a high quality tenant up front prepays huge dividends in the long-term.

Tuesday, June 29, 2010

Renting Can Be a Good Option for Sellers

Home owners who have been trying to sell their properties for a year or more might consider lease or a rent-to-own option.

A lease option agreement gives the tenant the option to buy at a predetermined price for a rent that is slightly higher than market. In a lease purchase, a buyer commits to buying the property. In exchange, the seller credits a percentage of each payment toward the purchase price.

Either arrangement is likely to attract serious renters who would like to buy the property if they can. In exchange, they’ll take good care of it.

Negotiating these agreements can be tricky, and the owner should always get help from a real estate attorney.

Source: The Wall Street Journal, June Fletcher (06/16/2010)

Thursday, June 24, 2010

We are interviewing for several unique real estate agent positions in Los Angeles--it entails both traditional real estate sales as well as leasing assistant work--base pay + commission! It is a great position for new agents who are just starting their real estate career!

Thursday, June 17, 2010

Just starting integrating all of our operations to the Yardi system which is the premier software for property managers. This will add tremendous value to our clients, especially those with multifamily properties!
Just opened escrow on a GORGEOUS 3bd/2bth house in Del Aire. Wood floors throughout, huge windows, 2 sets of french doors leading to deck, updated kitchen w/ steel appliances, and much more!

Friday, June 11, 2010

Just Rented 6641 W 6th St! Found terrific tenants with almost 800 FICO scores and very low Rent to Income ratios!