Xanthus Management Company

August 2009

Mark Allen, Financial Planner/Real Estate Broker/Rental Manager/Financial Manager

            Real estate property values have fallen over the past several years and rental property owners had been feeling strong growth of rents and price increases until just recently.  Most recently, rental prices have fallen as gas prices increase, the mortgage crises continues and the new Presidential choice for the nation has given little hope that the economic troubles will end anytime soon.  Rental conditions and prices are as bad for landlords as I have seen in three decades.  Even with falling rent prices you still retain many tax benefits for rental properties and we have hope that the dip in rental values is a short term consequence of the falling real estate values.  (Some pockets of houses may defy this trend, but for the most part, several areas of our economy are “resting” from the long rise of good news we have been experiencing).  It is especially bad for commercial landlords as not only are many existing tenants closing up, but even remaining ones are attempting to renegotiate leases at a lower rate.   Lots of headlines in the local and national papers discuss the glutted rental market, the vacancies and the “housing bubble” that has recently burst.  These uncertain times have caused us to tighten our belts and get even more serious about the management of the money flow into our real estate investments.  The competition for rentals now is tipped well in favor of the tenant as we watch our list of available homes and commercial locations increase to a record high number of available properties.  Tenants today have many properties to choose from and rental prices are driven down because of this supply and demand scenario.... much the same way that prices of real estate were driven upwards over the past years.  Currently we are renting 2 bedroom houses from $900-$1100, 3 bedroom houses from $1100-$1700 with most of them being in the $1600 range, and 4 bedroom houses from $1700-$2100 depending on the size and amenities.  Some unusually nice homes might rent for more, but bargain hunting tenants are generally not looking to pay much more than they have to so check the competition before choosing a high rental price.  Most of the rents have decreased between $200-$300 over the past year or so.  Commercial rentals have dropped from 30% to 40% over the past several years and troubled landlords are hurting one another to fight for the occasional commercial tenant who is looking to lease.

            Our rental management company has been specializing in managing the assets of rental property owners since 1983.  We provide a service to owners for a reasonable fee and produce results that benefit property owners toward the goal of making their real estate investments profitable, while limiting problems.  Our services include advertising a property for rent in the Ramona Sentinel, the rental sheet posted around town, the 24 hour rental hotline, the newsletters sent out each month, craigslist and other internet sites, our web page at www.xanthushomes.com and in our other ways.  Often times for residential and always for commercial properties, we direct mail postcards or letters inviting lessees.  We screen potential applicants by not only checking creditworthiness, but also calling references, previous landlords, jobs, etc.  After selecting a qualified tenant based on legally and ethically acceptable means, we go over a very thorough written rental agreement or lease getting them to agree to pay for and care for your property.  We collect a security deposit and document the condition of the property at the time of move in.  We collect rents, dealing with any collection problems, deal with any repair problems during the tenancy by using one of our vendors that give you the best possible price. (a management company may command a better discount from plumbers, carpet cleaners and painters) We give you an annual year end statement for tax purposes, pay your bills and mortgage payments if you choose and send the balance to you.  You will get a monthly accounting statement with your check.  We basically deal with all the problems and headaches of management for you so you don’t have to.  We will inspect the property at move out, make security deposit deductions and repairs, then start the entire process over again.

            There is nothing we do that you could not do yourself!  We do however have a staff on call for service of the problems as they arise.  No more dinner time calls for you.  We have lots of experience and have “heard all the excuses and stories”.  We know the rules about security deposits and various notices and we have a practical “hands on” training program everyday with lots of rentals and tenants.

            We like to think that with our aggressive style of rent collection, avoidance of vacancy, cost savings, good tenant selection and experience to not make costly mistakes, we can actually save you money over your self management system.  One bad tenant that doesn’t pay, does damage to your property and/or requires eviction could ruin your entire attitude about rental property in general not to mention your opinion about tenants.  The same could happen with an extended vacancy situation.  Let our experience save you money and heartache.  Call Xanthus Management Company today for a free no obligation meeting to discuss your Ramona rental property today.

            Some commonly asked questions about property management:

 

Q.        WHAT DOES A PROPERTY MANAGER DO FOR ME?

A.        A property manager has the job of taking the headache away from the owner with regard to real estate rental ownership.  A property manager will advertise the property, screen and sign on a tenant and deal with the tenant and the property and its problems on a day to day basis for the benefit of the owner and the property.