I rarely use the “M” word because I’m not an industrial hygienist or a laboratory. However, mold is commonly talked about in the real estate world and is everywhere – that simple fact doesn’t take away from the seriousness of it. A mold infestation or contamination can be extremely damaging to a property and to investment property managers. Not only does mold put your tenants/residents at risk, but you and the property owner may have to spend a significant amount of time and money to properly mitigate the environmental condition and make the rental unit a safe and comfortable place to live. Moreover, mold creates a significant stigma on a property which most certainly attaches and affects value and desirability. In addition to educating yourself about mold, one of the best things you can do is focus on the common areas (bathrooms, kitchens, laundry rooms) where mold grows and do your best to prevent it by keeping these rooms, walls, ceilings as dry as possible. However, if mold/mildew growth is already there, it’s time to take care of it before the issue becomes more serious. Remember, a property manager and/or landlord’s primary duty is to provide a habitable rental unit – a unit with mold is not habitable.
AIRBNB, VRBO, and Other Short-Term Rentals (STRs) Uses Continue to Escalate Causing Cities, Counties and HOAs to Make Regulations or Outright Restrictions Before We Lose Our Neighborhoods
Transitory residencies, also known as STRs are expanding and growing everywhere we look. Internet based services like AIRBNB, VRBO, help owners rent out their properties on a short-term basis for a small percentage fee. Many owners, especially those on fixed income budgets see this as an opportunity to have an additional income stream save for the personal privacy issue they must grapple with. Moreover, with the current housing shortage in the San Francisco Bay Area most local jurisdictions welcome any additional avenue of increased housing including STRs and accessory dwelling units ADUs, notwithstanding the potential frictions caused by them within the neighborhood they reside in.
After performing a comprehensive and exhaustive analysis and identifying realty as your next investment, one of the most important tasks real property investors can do before pursuing an investment strategy is to determine the risks associated with it. It’s virtually impossible to completely avoid risks so the more you can understand about your investment by conducting due diligence, the more you learn about your risk strategy and mitigation options, the better your chances will be of making a successful and profitable investment. Doing homework, asking many questions, and performing comprehensive investigations are just some of the things that needs to be done before you pull the trigger. Just winging it is not a strategy.
With Google’s announcement of a planned new campus in San Jose, California, investment property managers are cautiously optimistic about the opportunities that may soon become available. The plan is for Google to build an impressive eight-million square foot campus, which is about eight times as much as the office space currently available in San Jose. The transaction is not yet finalized because there are many details to be ironed out due to the sheer magnitude of the project. The entire downtown core of San Jose will be revitalized and expanded to reach levels that were never previously imagined. Small investors should be proactive and start to search out deal and be ready to make a move if you truly want to benefit from this large-scale development project. If nothing else, start with investigation and due diligence of any and all properties surrounding the proposed project – your real estate education IQ could be improved just by this step alone.
The combination of rising home prices, a shortage of available homes and a new California state ordinance for “Accessory Dwelling Units – ADUs” may lead to the resurrection of a robust inventory of granny units, also known as ADUs. ADUs are nothing new; they have been built for centuries but are not all that well known – most people call them granny units. However, due to strict local regulations like parking restrictions, cost prohibitive permitting costs, feasibility of connecting to municipal services, i.e., sewer, water, electricity, residents have historically had significant challenges implementing these buildings onto their properties. However, there is now a move afoot to simplify and streamline the process of getting ADUs or granny units installed to reduce the chronic housing shortage in certain geographical locations, especially Silicon Valley.
There are many amazing reasons to live in the Silicon Valley and the surrounding areas. A seamless, traffic-free commute is not one of them, though. That’s one huge benefit of investing in Willowgate real estate right in the heart of Mountain View – home to Google. This charming community is located minutes from Central Expressway and Highway 85, Stanford University, as well as near a Caltrain stop which can take you to San Francisco or San Jose along the Peninsula route. Its outstanding location allows residents to spend less time commuting and more time enjoying the outstanding quality of life in Willowgate.
Due to external factors such as significant capital gains tax exposure many people are choosing to rent out their homes versus selling. The more forwarding-thinking people are employing a strategy where they rent their property for two years or so, then sell their property (maintaining their IRC 121 & 1031 benefits) and exchange into another more potent cash cow. After all, in California a real property sale can trigger a 38% tax hit the following April due to capital gains issues – assuming one’s gains are greater than the IRC 121 exemption of $250,000 for a single person or $500,000 for married couples. Thus, many people are renting by themselves or through a property management company to preserve their tax efficient options. Below is a quick hit list of easy and inexpensive design ideas which may help you separate yourself from your competitors who have also listed their homes on the rental market. Importantly these improvements and/or expenses are either tax deductible against rental income or depreciable.
Green technology is the wave of the future, not just in Silicon Valley, but across the globe as well and we can all play a part in improving the environment by utilizing alternative means for generating electricity. As each individual makes an investment into global preservation by making the decision to include solar panels on their investment properties, or any alternative energy method, they have enforced the greater good principle which we should all consider during our time here on earth. This especially includes those of us who are lucky enough to own real property improved with structures. Non-owner occupied property owners are increasingly considering solar energy into their property management plans and for good reason.
If you wish to live or invest in real estate near downtown Mountain View, but not exactly in downtown, look no further. Until 1994, Shoreline West was considered to be part of downtown Mountain View. Residents banded together and won approval to form a stand-alone community with its own identity. The resulting Shoreline West enclave is known for its unbeatable location, welcoming and friendly residents, block parties, potlucks and annual special events that foster a sense of community.
The pleasantly quirky Slater neighborhood was built in the middle 1950s and is known for its diverse residential makeup and unique and varied architectural styles. When you live in Slater, your neighbors will be Google execs, young families and retirees who are the original owners of their homes. As you stroll along the wide, tree-lined streets, you will pass brick duplexes decorated with wagon wheels and charming bungalows reminiscent of farm houses. If you are looking for a distinctive non-cookie cutter community that is minutes from downtown, make sure to consider investing in Slater real estate.