Landlord Hard Times
LANDLORD HARD TIMES
We are asking our tenants to be more understanding with our landlords. Most are reluctant landlords. What is a reluctant landlord vs. an investor landlord? An investor landlord is in the landlord business. They understand the rental business. Most want to maintain their properties because when the market will allow good prices they may wish to sell their investments for a profit. Other investor landlords are long term holders and may be enjoying a cash flow that is positive.
The reluctant landlords are renting only because they canít sell or the prices in the current market wonít allow them to recover their costs or make a profit. They plan to continue until the market improves and then they will be gone. The majority of our landlords are not enjoying a positive cash flow. The mortgage payment is greater than the rent they are receiving, plus they have taxes, insurance, maintenance, and management fee costs.
We ask our tenant customers to allow our landlords to do replacements with lower priced items than the original item. Some owners simply donít have the funds to do otherwise.
This is a true story Ė a tenant asked us to send someone to water his rear yard because he didnít have the time. The point here is they think the landlords are rich. We property managers are not paid enough to send someone to take an hour or two plus travel time to water yards. Our management fees are very low and cover bookkeeping and on-call emergencies. If it were not for a large volume of rentals to spread the costs we would go out of business.
We have owners going into foreclosure every week- their wallet is empty. Habitability items will be corrected, but some cosmetic items may have to wait until the owner experiences better times.
Thank you for your understanding the ownerís position during these hard times. By Lambert Munz MPM, RPM Arbour Real Estate Mgmt, Inc. , www. Arbourpm.com
Lambert Munz is licensed with CA Dept of Real Estate 44 years as a broker. Commercial investments. Currently property manager with 27 years experience residential and commerical Hold two designations MPM Master property manager and RMP Residential Management professional awarded by National Association of Residential Property Managers Read chapter one of our new Book House Investors' Manual at www.arbourpm.com
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