Located just east of Stanford University and south of El Camino Real Palo Alto’s College Terrace neighborhood is an eclectic, vibrant and charming enclave of different style and types of residences – none too many similar and all of which are either aristocratic or humble and everything in between.  The homes include but are not limited to English cottages, Queen Anne’s, California Mission bungalows, California Ranchers, and Nuevo Modern homes. 

Are you surprised both small and large Chinese investors and builders are looking to build in the United States?  You shouldn’t be.

It is well known that for quite some time that the Chinese real estate market has slowed dramatically which has created a void that the United States market is filling, including the Bay Area and Palo Alto in particular.  We are not talking about just the large Chinese builders, but the small ones as well as they have followed suit and began to look across the globe to seek opportunities.  In many parts of China developers are sitting on many empty finished units, undeveloped lots, and no improved economic conditions in site.  Moreover because the market has slowed profits have been narrowed and companies are finding it difficult to stay in business – sound familiar?  In fact, homes prices dipped approximately 1% in August 2014 according to the China Real Estate Index System.

The last several years has shown the tremendous effect Chinese investors are having on the Silicon Valley real estate market.  The influx of Chinese investment in Palo Alto real estate in particular has many factors which together create the basis for this real trend.   The abundance of educated people and universities, the already diverse culture and population, the ease of immigration possibilities, the fundamentally sound federal and state government, and the mecca of the greatest high-tech companies in the world form the confluence of primary elements for Chinese investment in Palo Alto.

“Fiduciary” is basically defined by Black’s Law Dictionary as a term derived from Roman law which means, as a noun, a person or legal entity, holding the character of a trustee, with respect to the trust and confidence involved as scrupulous good-faith and candor towards another’s affairs.

A fiduciary also has duties which are described as involving good-faith, trust, special confidence, and candor toward another’s interests.  Typical fiduciary duties are imposed on and include such relationships as executor, administrator, trustee, real estate agents, attorneys, and, of course, property managers.  A person or company who manages money or property, i.e., the property manager, for other people must exercise a standard of care in that the interests of the money or property owners are placed above and beyond those of the property manager.  In some states, like California for example, a property manager is statutorily defined as an individual or entity which has the same duties as a trustee, i.e., a fiduciary.

Your commercial tenant failed to pay rent.  You have heard that things are not going very well for them, but now it is apparent.  As a property manager your duty and obligation is to resolve the issue as quickly as possible.

When the tenant failed to pay by the due date they have effectively breached the lease and you are entitled to evict the tenant from the property.  An eviction lawsuit commonly called an Unlawful Detainer action is a fairly straightforward legal process.  The important thing for property managers to know is that the steps involved in this process are critical and must be followed to the letter of the law.

A real estate attorney representing both parties in the action is common.  If your property manager has followed the law, given proper notice, and has a detailed file of all of the correspondence between the tenant and their company the unlawful detainer action should go fairly smoothly and the landlord or owner should prevail.

If you are planning any renovations to your investment or rental properties in the near future you should consider going as green as possible.  Improving your investment property’s Eco Performance has monetary and intangible benefits as well.  You can ask your property management to help you along with using some of the helpful information in this quick guide.

Property managers and rental property management companies should help owners and investors improve their return on investment with every action they take with the owner’s properties.  A prudent property manager will make suggestions on improving the exterior of the house with cost effective suggestions.  Improvements will help retain existing tenants and will make the property much easier to rent if vacant.  If your existing manager doesn’t make these types of suggestions maybe it’s time to look for a new property management company.  The following is a list of six (6) easy and cost effective exterior improvements.

First impressions matter immensely, thus a property owner should never neglect their investment property’s landscaping.

A real estate agent who is getting a property ready for sale spends time, energy and effort making the most of a property’s curb appeal to entice a potential buyer to buy for the highest possible price. A rule of thumb is that a realtor who invests $1 dollar of curb appeal improvements will gain their clients $3 of return at close of escrow.

In the same vein, a property manager should counsel his clients to invest some time, energy and effort in sprucing up their rental property exterior landscaping to help attract more potential renters or keep the ones they have.  The art of providing just enough curb appeal, just the right balance of attractive landscaping, while maintaining a fixed maintenance budget can be achieved through education, experience, and common sense.  Experienced property managers should be able to put together a plan for their owners at no additional expense.

Investment Property Tax Deductions and Tax Strategies for Real Estate Professionals

The cost of hiring a property management company to handle investment properties is significantly less than most property owners believe.  Investment property owners who manage their own property with the idea that property management costs are too much might be mistaken as to the actual real costs.  Additionally, a large percentage of property owners do not take advantage of all of the tax strategies available to them.

For example, if a property owner manages their investment portfolio out of their home office there may be some business related items they are not expensing.  Interest in all forms including mortgage interest, equity lines of credit interest, and any business loan interest are all expenses which are typically deductible.  Losses like casualties, disasters, and thefts are expenses which properly accounted for are deductible.