|
|
| Property Matters | January 2012 |
|
 Greetings!
Happy New Year!
After a very slow 2009 - 2010 and rents climbing quickly in 2011, 2012 promises to be "the year of the landlord" according to a recent report by Morgan Stanley.
The Rent Board seems to be joining in this mantra as it publishes its annual allowable rent increase amount of over 1.00% for the first time in two years.
I expect rents to continue to climb, but am also seeing tenants demanding more for the high prices. Therefore, I urge all my clients to take advantage of these rising rents by putting their best foot forward when marketing vacant apartments. That means at the minimum a fresh coat of paint, if not updating the kitchen and bathroom. Remember, you are going to be locked in to this rent with nominal increases for the lifetime of the tenancy. Therefore, do all you can to get the best price from the get-go.
Best, Natalie Drees
Lingsch Realty |
ANNUAL RENT INCREASE AMOUNT ANNOUNCED
| Effective March 1, 2012 through February 28, 2013, the allowable annual increase amount is 1.9%. In accordance with Rules and Regulations Section 1.12, this amount is based on 60% of the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose region for the 12-month period ending October 31, which was 3.2% as posted in November 2011 by the Bureau of Labor Statistics.
To calculate the dollar amount of the 1.9% annual rent increase, multiply the tenant's base rent by .019. For example, if the tenant's base rent is $1,250.00, the annual increase would be calculated as follows: $1,250.00 x .019 = $23.75. The tenant's new base rent would be $1,273.75 ($1,250.00 + $23.75 = $1,273.75).
Also, don't forget to include your bond pass through worksheet which allows you to raise the rent even more.
For assistance, please feel free to call us. We are always happy to help.
|
OTHER IMPORTANT AMOUNTS FROM THE RENT BOARD
| SECURITY DEPOSIT INTEREST
March 1, 2012 - February 28, 2013 0.4%
RENT BOARD FEES
2011-2012 Tax Year $14.50
CAPITAL IMPROVEMENT INTEREST RATES FOR PASSTHROUGHS
2.7% for 7 Year Amortized Improvements
3.2% for 10 Year Amortized Improvements
3.6% for 15 Year Amortized Improvements
4.0% for 20 Year Amortized Improvements
CAPITAL IMPROVEMENT UNCOMPENSATED LABOR RATES
August 22, 2011 - August 21, 2012 $26.89
RELOCATION PAYMENTS FOR EVICTIONS UNDER THE ELLIS ACT
Date of Filing of Notice of Intent to Withdraw Rental Units under the Ellis Act 3/01/11 - 2/29/12 - Relocation Amount Due Per Tenant $5,105.20
- Maximum Relocation Amount Due Per Unit $15,315.56
- Add'l Amount Due for Each Elderly or Disabled $3,403.45 Tenant
RELOCATION PAYMENTS FOR EVICTIONS BASED ON OWNER/RELATIVE MOVE-IN, DEMOLITION/PERMANENT REMOVAL OF UNIT FROM HOUSING USE OR TEMPORARY CAPITAL IMPROVEMENT WORK OR SUBSTANTIAL REHABILITATION Relocation Amount Due Per Tenant $5,101.00 Maximum Relocation Amount Due Per Unit $15,304.00 Add'l Amount Due for Each Elderly, Disabled Tenant or $3,401.00
Household with Minor Child(ren) |
|
| Join the Lingsch Realty Community | |
|
| Enjoy Discounted Rates from Lingsch Realty's Preferred Service Providers | |
One great way Lingsch Realty serves their clients is by negotiating discounted rates with its vendors.
Even our clients who own one small property get the advantage of our bulk service rate.
Best of all, Lingsch Realty's preferred vendors have a proven track record of providing great products and service at a great price.
Add your investment property to Lingsch Realty's portfolio today and begin enjoying the benefits of our established vendor relationships and excellent customer service. |
| Questions? | |
Have a property management question? Chances are others do too. Submit your question and see the answer in next month's newsletter.
|
Get Paid for Referrals | |
Know someone who needs property management services?
Refer a friend to Lingsch Realty's property management division and receive $100 off property management services. |
| Lingsch Realty is a Proud Member of: | |
|
|
|
|
JUST RENTED
|
Address
|
Neighborhood
|
Bed
|
Bath
|
Description
|
Price
| |
215 Guerrero #5
|
Mission Dolores
|
2
|
1
|
Updated apartment
|
$2,700
| |
1232 Shelter Crk
|
San Bruno
|
0
|
1
|
Studio with sleeping alcove
|
$1,100
| |
225 Accacia
|
Daly City
|
2
|
1
|
Single-Family Home
|
$1,900
| |
620-A Spruce
|
South San Francisco
|
1
|
1
|
Updated in-law
|
$1,175
| |
38 Gambetta
|
Daly City
|
2
|
1
|
Updated apartment
|
$1,600
|
|
AVAILABLE
|
Address
|
Neighborhood
|
Bed
|
Bath
|
Description
|
Price
| |
3180 Mission St.
|
Mission District
|
0
|
2
|
Commercial Storefront
|
$1,980
| |
998 Divisadero #304
|
Alamo Square
|
1
|
1
|
Updated apartment
|
$2,100
| |
360 Coleridge
|
Bernal Heights
|
2+
|
1
|
Updated Victorian
|
$3,200
|
|
COMING SOON
|
Address
|
Neighborhood
|
Bed
|
Bath
|
Description
|
Price
| |
1256 Treat
|
Mission District
|
2
|
1
|
Large Victorian flat
|
$3,000
|
|
|
|
