Welcome!

Posted: 4th January 2012 by Melissa in Uncategorized
 

Welcome to the FBS Rent Sense Blog. We will be posting weekly Rent Sense Articles written by Neil and Chris. These articles can also be seen in major publications such as the San Diego Union Tribune. Our goal is to bring quality information to help counsel those already in or interested in the industry. Check back each week to see what is new and exciting in the Property Management world.

“Nearly half of all the housing in San Diego is offered for rent. This condition has existed locally for decades and will continue for the foreseeable future. It is imperative that rental owners and rental residents respect the other for their important role in the essential segment of our local economy. The more informed each are about their respective rights and responsibilities as well as changes in the marketplace the more realistic are the expectations. That just makes good sense; Rent Sense.” – Neil,  2008

Where your home matters…

Allied Gardens Spring Fest 2013

Posted: 20th May 2013 by Melissa in Uncategorized
 

Outreach Marketing is Required for the Modern Property Management Company

 

To be a successful property management company in the modern economy you must become a respected rental housing provider in your market. Experience is imperative and solid reputation within the industry is important but beyond this you must engage the consumer audiences within your market.

 

While it is true that FBS is the most experienced rental real estate professional organization within the San Diego region that we have served for over four decades. And while it is also true that we stay involved as industry leaders in local chapters of NAA, IREM and NARPM we do more…much more.

We maintain ourselves accessible as rental housing experts throughout the 69 zip codes in which we operate rental properties. We do this by writing an informative column for local newspapers, service several large blog audiences and participate in the Better Business Bureau to raise integrity standards. We make ourselves available through the local chambers and community consumer fairs. We teach at SDSU. Here we are at one of several major community gatherings (Spring Fest) with a booth to provide information, answer questions and have some fun in the process.

Rent Sense: Where are we headed?

Posted: 17th May 2013 by Melissa in Rent Sense
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Rent Sense: Where are we headed?
By Neil Fjellestad and Chris De Marco
FBS Property Management
If you’re keeping up with local real estate news you could believe that the San Diego general economy must be doing well. Home sale prices are going up while the availability of resale homes has dried up. New home subdivisions are experiencing more activity than during the last several years; both in terms of supply and demand from pent-up buyers.
On the rental side of the real estate market rents rates are still increasing though slowed somewhat in apartments. The vacancy has tamped down and mortgage money for investment real estate is loosening up.
Actually, real estate entrepreneurial sectors are leading in this recovery just as in previous recoveries going back to the early seventies even though many economists swore that this was not going to happen this time. Also, take a closer look at the seventies for an example of long sustained real estate investment growth to keep up with the need to combat higher taxes and rising inflation all during a time when individuals were coming out of school and the military to disappointing employment gains. Again, this time it is going to be slow transformation versus quick transition. Amid this reality are the current fears echoing throughout the local market that there is another bubble coming, interest rates could go way up, and there is still shadow inventory lurking to spoil the buzz.
Though popular, these fears appear to be as short-sighted as the optimism of 6-7 years ago that local real estate prices could do nothing but go up forever.  The underlying facts tell the real estate story and like any real story there are good parts for some characters and issues to be resolved; some known and others will be a surprise.
Let’s look at some of these underlying factors and explore the implications to local real estate sales and rentals-
•    The long recession has crippled the supply line of constructing new housing in the local development environment. Multifamily apartments and condos will move to market faster but still it always takes longer than intended with resistance at each stage of approval.
•    Future housing development will need to be smarter; more re-development, more urban in-fill, less suburban spread, more mixed-use, less traditional bedroom neighborhoods, more public transit, less time behind the wheel.
•    On the demand side the millennial generations (ages 18-34) have been on the sideline during the recession though this huge demographic fuels rental demand and eventually they become mature real estate buyers. Locally, this group is enjoying relatively the best improvements in employment and wants to create households. They are also the most flexible when it comes to what these households look like. Adult roommates (coming out of school and the military) with their continued incomes can be interested in apartments, rental condos and individual homes. Renters will continue to need about half the housing stock in San Diego.
•    In addition, this region is a magnet for a variety of first and second generation immigrants (39 native languages spoken locally). With comprehensive immigration reform in view and health care reform moving forward San Diego will grow dramatically.
•    Future and economic growth will cluster within mega regions described in a study 5 years ago as being composed of closely linked cities creating populations of (10-50 million) producing hundreds of billions of dollars in economic output. These mega regions can cross state and U.S. borders and harness human creativity on a massive scale. There are 10 of these regions in the U.S. and are becoming the source of the lion’s share of the world’s scientific achievement and technological innovations. San Diego is the geographical coastal center of the So Cal mega region stretching from Los Angeles to the north and into Tijuana, Mexico to the south. (Population 21.4 million with economy of $711 billion) These mega regions are also attractive to an active older population than want to stay involved and perhaps employed.
These are the large brush strokes that support our contention that our local real estate market is becoming far more dynamic than in past generations. Patience and expertise are at a premium. The real estate investment potential is robust but requires innovation. Rental ownership survives as the leading vehicle of building real wealth and producing tax favored cash flow but must be managed as a business in a demanding world of preferred renters and consumer protection. For the prepared and informed this next 6-8 years will be a welcomed, sustained, positive investment cycle.

Legal Questions May 2013 Part 2

Posted: 14th May 2013 by Melissa in Legal Questions
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6. Question: When not renewing a one-year lease, do I have to give the tenants a reason for  not extending their lease?

Answer: California law does not require landlords to give their tenants a reason why they are  not renewing the lease, unless the property is situated in a “just cause” rent controlled  jurisdiction.

7. Question: How can you enforce the pool rules where someone continuously leaves  underage children in the pool area?

Answer: You can document each incident, write them a warning letter and, if the violations persist, commence eviction actions.

8. Question: New tenants moved in last month. The wife now wants me to take her name off  the lease because she is moving out and getting a divorce. They agreed to a one-year lease.  What can I do?

Answer: You are not legally required to release the wife from liability under the lease. If you do,  and the husband is unable to pay or declares bankruptcy, you would not be able to pursue your  losses from the wife.

9. Question: One of our tenants owes us for past due rent, and part of his security deposit.  He has given us a check for the amount of the rent, but I want to first apply it to the deposit and then serve a three-day notice to pay rent or quit for the unpaid balance. Is that legal?

Answer: Yes, but only if the tenant did not designate where the money was to be applied on his check, or other written correspondence. You could avoid the issue by applying the payment to rent and then serving a three-day notice to pay the balance of the deposit, or quit. Failure to pay could lead to a successful eviction.

10. Question: What can you do about a tenant being cruel to an animal such as keeping a large dog in small quarters outside with the dog crying in the rain, cold and heat?

Answer: You have a right to report any criminal or inhumane acts occurring on the rental property. If the mistreatment constitutes a crime, you could evict the tenant for carrying on illegal activity on the premises.

Kimball, Tirey & St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This article is for general information purposes only. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. If you have questions, please contact your local KTS office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions and Answers, and Legal Articles, please consult the Resource Library section of our website. Thank you.

© 2013 Kimball, Tirey and St. John LLP

 

San Diego Property Management – 92071 and 92072- Santee

Fjellestad, Barrett & Short (FBS) is the Santee and Lakeside Property Management Company of choice for residential properties, rental homes, condos, townhomes and apartments for rent in Santee and adjoining Lakeside. FBS fills more residential vacancies, collects more rent and supervises more property maintenance in 92071, 92072 & 92040 than other San Diego East County property management companies.
Fjellestad, Barrett & Short (FBS) established its complete property management and advisory services in 1972 and has been operating rental properties throughout Santee, Lakeside and San Diego East County for independent rental owners in an exemplary manner that recognizes renters as their preferred customers as well.

The San Diego Better Business Bureau recognizes Fjellestad, Barrett & Short (FBS) as an accredited local business and has awarded FBS an A+ rating. Read a BBB reliability report on Fjellestad. Whether you are an independent rental owner needing property management in Santee, CA, a renter looking for the best rental housing alternatives within Santee and adjoining Lakeside; there is one property manager that stands out – Fjellestad, Barrett & Short (FBS).

These ZIP codes encompass the municipality of Santee and some adjoining neighborhoods. An aerial view shows the centrality of this valley with Scripps Ranch and Poway to the north; Tierrasanta and Mission Trails Regional Park to the west; El Cajon to the south; and Lakeside to the east. SanteeÕs evolution from being a small, backcountry village in the late nineteenth century to becoming a modern city is a fascinating and colorful story. From the communityÕs original founders to those who led the incorporation drive toward it becoming a city almost a century later, SanteeÕs history is filled with people who shared a vision of this community becoming somewhere extraordinary. This same enthusiasm has continued today including the milestone of the identification of this area as the Santee Redevelopment Area in 1981. This and subsequent events have turned this 1767 acres into one the fastest growing, diverse and well planned hubs in the region.

Today Santee is steadily becoming the center in San Diego East County for residents, employers and retailers. Much of this current pattern is due to the growing accessibility to the entire San Diego region via the 3 freeways that now transverse the valley (SR-67; SR-52; and SR-125). In addition, the Santee Transit Center serves city-wide bus transit and links to the Mission Valley East (Green Line) providing trolley service to SDSU, Allied Gardens, Qualcomm Stadium, Mission Valley and Old Town. Alternative local access is provided to the Orange Line. Currently 91971 has a population of 54000 (29% renters) and 92072 has an additional 22,000 (25% renters). There are 1660 local businesses employing over 15,000. River View is a 1.9 million SF master planned, 104 acre, mixed-use campus designed for technology, R&D, and professional offices.

Santee has more than 100 national retailers located in 10 local shopping centers. All the box stores are represented including: Costco, Target, Wal-Mart, Kohl’s, Home Depot, Lowes and two Walgreens featuring drive-thru pharmacies. City Aquatics Center and YMCA facility are the start of Town Center (a master planned, 55-acre family recreation playground). Santee Lakes Recreational Preserve has been voted one of the best campgrounds in San Diego County featuring 190 acres of picnicking, hiking, boating, fishing and camping with 300 full hook-up campsites and a 130 space RV site.

Rental options in Santee and Lakeside include older rental properties (duplexes to fourplexes), mobile homes, newer mid-size apartment communities, and an increasing number of individual condos, townhomes and single homes to rent.

Legal Questions May 2013 Part 1

Posted: 7th May 2013 by Melissa in Legal Questions
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Kimball, Tirey & St. John LLP

Questions & Answers

Ted Kimball, Esq.
May, 2013

1. Question: In our lease agreements we require tenant’s to pay their rent on the first of the month. If the first falls on a holiday, such as Labor Day, do you have to give the tenant’s until midnight on the second to pay the rent or can you still enforce the late fee as of midnight on the first?
Answer: Rent is not delinquent unless one business day has expired from the date the rent is due. So if the first is a weekend or holiday, the rent is not late until after one business day has expired.
2. Question: I own a fourplex. Unit B has two cars, one is broken down. What kind of demands can I place on B about the broken down vehicle?

Answer: You can create a lease term by requiring all vehicles to be in operable condition or they will be towed. To put this into place, you need to either serve a thirty day notice of change of terms to a month to month agreement, or wait until the lease expires and have the new condition in the renewal lease.

3. Question: I rented a condominium unit to a couple on a year’s lease. After one month, they had to move out to take a job out of state. My daughter wants to move in and that’s all right but she will not be paying me rent. Does the tenant still owe me the rent for the lease?

Answer: Under California law, a tenant who vacates early is liable for the remainder of the lease period unless the premises are re-rented or otherwise taken back by the landlord. When your daughter moves in, the tenant is relieved from further payment.

4. Question: Can I bill my tenant for excessive water usage if I can prove they neglected to fix two leaky faucets for over three months?

Answer: Most rental agreements and California law require the tenant to maintain the premises in good condition and repair. Failure to meet their obligations would therefore be a breach of the lease and you should be able to recover all losses suffered, provided you have sufficient proof.

5. Question: Our tenant’s lease is up in six weeks. Can we serve a thirty-day notice at the beginning of the last month of their lease if we do not want to renew?

Answer: Unless your lease requires a thirty-day notice of intent not to renew, California law does not require either the tenant or landlord serve a thirty-day notice to terminate a fixed term lease. If the tenant remains in possession after the lease expires without the landlord’s permission, an immediate unlawful detainer action can be filed.

Linkedin and FBS- Making Connections!

Posted: 7th May 2013 by Melissa in Uncategorized
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The FBS team considered the connections with Linkdin as an important means to reach the audiences we serve including- independent rental owners, industry suppliers, preferred rental customers and real estate investors. We have a growing number of our team making connections including-

Chris- http://www.linkedin.com/pub/chris-de-marco/8/b03/15

John- http://www.linkedin.com/pub/john-malega/32/531/245

Lucinda- http://www.linkedin.com/pub/lucinda-garland-cpm-gri/9/796/976?trk=pub-pbmap

Melissa- http://www.linkedin.com/pub/melissa-de-marco/4b/169/a27?trk=pub-pbmap

Chloe-http://www.linkedin.com/in/chloemoreno?trk=pub-pbmap

Jay- http://www.linkedin.com/pub/jay-scheinok/34/19b/35b

Pam-http://www.linkedin.com/pub/pam-neillo/16/949/98

 

FBS at the BBB Mixer!

Posted: 7th May 2013 by Melissa in Uncategorized
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When Annette Kay is home, she forgets what fresh air smells like. Secondhand smoke from a neighbor’s townhouse regularly drifts into her Rancho Peñasquitos property, triggering sinus infections and repeat trips to the doctor.

“My landlord, not sympathetic at all,” said Kay, who’s on a fixed income and has decided to move out by late May.

Cases like Kay’s were the focus of a bill that would have banned Californians from smoking inside their homes. The measure died last week, but long-standing talks to regulate smoking at multi-family units in the city of San Diego are still alive.

In San Diego, anti-smoking activists have met with landlords for two years, trying to craft an ordinance that would make both sides happy.

A ban at the city level, considered too extreme, likely won’t be on the table. One option being discussed would require landlords to designate their buildings either smoking or smoke-free. A task force of property managers and community activists, which met Thursday, is slated to convene again in late May to continue discussions.

The debate centers on two main issues: Fear of over-regulation and fear of health risks.

Property managers worry that the creation of more rules would mean the burden of enforcement shifts to them. They also want nothing to do with regulating tenants’ personal lives.

“Owners and managers, we don’t want them to be the smoking police,” said Molly Kirkland, director of public affairs at the San Diego County Apartment Association, which opposed the state bill.

Anti-smoking advocates say a ban would keep dangerous secondhand smoke away from renters, especially those most vulnerable such as children, the elderly and the sick. Restrictions could also help smokers quit and live a healthier lifestyle, they add.

“It’s in their best interest to protect their property and assets, including the people who pay them rent,” said Manuel Andrade, a San Diego community organizer whose goal is to encourage landlords to go smoke-free.

Smoking rules now

Rules that address smoking in public areas such as restaurants and workplaces have been around for decades and are now considered the norm. No one would imagine lighting up at, say, an airport bar in the US.

Landlords are allowed by state law to adopt smoke-free rules voluntarily. The proposed California legislation would have required such enforcement at all homes with shared walls and vents. That measure, which met heavy opposition from property managers, was nixed in an Assembly committee last week on a 5-2 vote.

The number of bans or limits on smoking on private property, mainly multi-family housing, is limited in California but continues to grow.

More than 20 cities and counties have put in place some kind of non-smoking policy within the past six years, shows an analysis by the Center for Tobacco Policy and Organizing. The center is an arm of the American Lung Association.

Some are all-out bans while others limit smoking in certain parts of complexes. Those policies stem mainly from Northern California, but Southern California has seen some recent representation. Santa Monica officials in October approved a policy that restricts smoking at all housing with two or more units.

People should feel safest in their homes and should be protected (there) as well,” said Kimberly Amazeen, vice president of programs and advocacy at the American Lung Association in California.

For some renters, it’s a quality-of-life issue.

Kay, the Rancho Peñasquitos renter, is concerned the secondhand smoke from her neighbor’s home is causing her health to spiral. She’s tired of the wheezing and having to take regular courses of antibiotics to deal with her sinus infections.

She says neither her landlord nor her neighbors are sympathetic, so her only option is to move. “It’s caused a big hardship on me,” Kay said.

Health studies show secondhand smoke can cause heart disease and lung cancer in adults. Nationwide, about 46,000 heart-disease deaths occur each year due to exposure, based one numbers from the Centers for Disease Control and Prevention.

Kids are also affected. Secondhand smoke can cause ear infections and asthma attacks.

With smoke, you can’t control where it goes’

By law, landlords in San Diego County have the option of going smoke free.

President John Adams Manor Apartments, an affordable housing complex in Oak Park, is among the complexes that has voluntarily chosen that route.

Its smoking ban goes into effect in January 2014.

The move was prompted by tenants’ complaints of secondhand smoking over the years.

Before the change was announced, management surveyed 90 percent of renters and discovered the vast majority of tenants, including smokers, wanted a smoke-free complex, said Vanessa Garcia, assistant manager of the 300-unit building.

“We’re not trying to tell people what they can and can’t do with their lives,” Garcia said. “But with smoke, you can’t control where it goes.”

Education is part of the complex’s transition to smoke-free status. Management will offer classes to help residents understand the change and a health fair has been planned for the summer.

Neil Fjellestad, who owns a local property-management company, sympathizes with residents who are affected by exposure to secondhand smoke. But he’s wary of smoking bans because they would require landlords to be in the middle of regulating rule breakers.

Instead of a full ban, Fjellestad prefers gradual limits to smoking at multi-family units that occur over a course of a few years. He said apartment owners and property managers would be more willing to voluntarily implement non-smoking policies if there are incentives involved.

 

http://www.utsandiego.com/news/2013/apr/26/smoking-ban-california-san-diego-apartments-rental/?page=2#article-copy

 

 

Why FBS Can Add Value to Your Investment in Rental Properties

There are numerous articles highlighting the latest investment strategy of Wall Street. The financial prowess of the likes of Warren Buffet and Blackstone seem to be focused on the following strategy: acquisition of thousands of distressed homes, fixing and operating as rentals going forward maybe selling them at a later time but maybe just hold as income property.

The acquisition of single homes and operating them as rentals is not new. For more than a decade FBS (though always headquartered in San Diego) was the largest rental operator of single homes in the state of Arizona. Purchase criteria had to be established based on our investment objectives. Utilizing this criteria a buying team was assembled and trained. Thousands of acquisitions were considered one house at a time and turned down. Relatively few (50 or fewer per month) were negotiated one seller at a time and closed one escrow at a time. During this incubation period we assigned each acquisition to one of our holding entities, an individual investor or small group of investors we represented. The acquisition and assignment of these assets went on for years and was a lot of hard work that was questioned by more than a few critics.

However, the required energy and organization that went into this acquisition process paled in comparison to the leasing, maintenance, rent collection, property operational reporting and ongoing management of these homes. All accomplished without today’s technologies including: showing and application online via smartphones, rent payments and maintenance requests via mobile internet access, property inspections with financial reporting and investor cash flows all getting to owners in real time via secure portals. As a matter of fact back then we could not find an out-of-box property management computer application to handle our Arizona rental portfolio that had grown to over 3000 single homes. In addition, we operated other real estate-related businesses that needed to be coordinated with our rental portfolio. Last but not least, we operated an 1008 unit apartment community while executing a major remodel and repositioning to capture additional market value. We learned in house what we needed to computerize our operations and created FBS proprietary software that kept our departments and property management teams on track.

Then there were the tax planning, physical improvements and equity refinancing to reposition these assets for resale and/or exchange to optimize return on investment. Perhaps as many as one-third of these properties are still held for investment and operated as rentals. It was all harder than we could have imagined and taught us more than we could have hoped. We had always understood that the financial benefits of real estate are long-term. We had always suggested to our investors that there are only two REAL problems with independent rental ownership.  One is the lack of comprehensive professional advice over the life of each real estate investment. The other is the daily business management of each rental property. The practical experience of more than four decades of specialized activities that define our experience has created a body of FBS expertise and best practices. This legacy continues today with the value we add to every assignment we do for our clients and the quality rental housing we make available to preferred renters.

Sincerely,

Neil Fjellestad

FBS RENTAL Feedback- Resident Review

Posted: 25th April 2013 by Melissa in Uncategorized
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Not very often do we hear when people are happy and a lot of time is spent defending ourselves on a site like Yelp….but we understand it is just the nature of our business… but today we got some kind words and I thought I’d share…

I’ll explain a little of my past and you will quickly see how I need to grow and adjust to having a property manager. I am really not use to this type of business relationship, people have told me horror stories but you can’t believe everything you hear. So far, I am more than pleased with FBS and the service they have provided me.

I rented a place for 29 years. The property manager’s job was to collect the rent and evict those that didn’t pay. He would show or advertise his vacancies but once they were filled, he went back to collecting the rent. My apartment was never painted in 29 years and the carpet on the floor was 25 years old when I moved out.

Getting maintenance done was the responsibility of the owner. He was in his late 80′s and was well into enjoying his retirement. He did maintenance on his schedule, regardless of the severity of the problem.

Now I rent from FBS and this is a whole new world. I like this! I like the fact that I can call someone and the dishwasher gets fixed. I like the fact that the water heater is getting looked at and I am at work. I like the fact that I have representatives at FBS that look out for the place where I live. It’s new, exciting and a huge concern that I don’t have to be involved with.

So as you can see, you are probably going to need to have some patience with me. I’ll learn and adapt as we go. At first, I’ll probably flood you with information trying to do things right. I want to earn my respect as an outstanding tenant. I am sure you will understand and point me in the direction I need to go.