The holidays are a time of celebration but also a time of reflection. And as a REALTOR®, naturally I tend to reflect on the significance of home. These days we seem to spend more time than ever selecting our homes, improving our homes and focusing on our homes. After all, our home is certainly one of the most important places - if not the most important place - in our lives.
But the holidays are also a great reminder of what truly makes a home: the friends, family, love, laughter and special occasions that fill it throughout the year. So I'd like to extend my warmest wishes for a happy and healthy holiday, a prosperous New Year and, most of all, a joyous home.
Dave Straub
@properties
773.255.3180
Friday, December 18, 2009
Friday, November 27, 2009
Homebuyer Tax Credit
It's Official.
The First Time Homebuyer Tax Credit has been extended through April 30, 2010, and that's great news for you whether you are buying or selling. On the heels of an improving market, there really is no better time to take advantage of an incentive like this.
The new Tax Credit is similar to its predecessor only the government has expanded the program and sweetened the pot. Initially, only First Time Buyers were eligible for the $8,000 credit, contingent on the purchase of their first home. That opportunity is still available, but now there is a new incentive: $6,500 for existing homeowners who purchase a new home provided they have lived in their current residence for at least five years. Income limits also have been increased, so more borrowers are eligible. Homebuyers must close by June 30, 2010.
Need help establishing your qualifications? As your REALTOR®, I can help you determine how to successfully take advantage of these incentives. Whether you're looking to buy your first home, sell or move up, I'm here to offer you candid advice on market conditions, and of course the updated Homebuyer Tax Credit.
The First Time Homebuyer Tax Credit has been extended through April 30, 2010, and that's great news for you whether you are buying or selling. On the heels of an improving market, there really is no better time to take advantage of an incentive like this.
The new Tax Credit is similar to its predecessor only the government has expanded the program and sweetened the pot. Initially, only First Time Buyers were eligible for the $8,000 credit, contingent on the purchase of their first home. That opportunity is still available, but now there is a new incentive: $6,500 for existing homeowners who purchase a new home provided they have lived in their current residence for at least five years. Income limits also have been increased, so more borrowers are eligible. Homebuyers must close by June 30, 2010.
Need help establishing your qualifications? As your REALTOR®, I can help you determine how to successfully take advantage of these incentives. Whether you're looking to buy your first home, sell or move up, I'm here to offer you candid advice on market conditions, and of course the updated Homebuyer Tax Credit.
Saturday, November 14, 2009
@properties Launches New Chicago Real Estate Website
RISMEDIA, November 5, 2009—@properties, one of Chicago’s leading real estate brokerage companies launched a new company website (www.atproperties.com). According to the company, the site gives consumers all of the Chicago-area real estate listings from the MLS, neighborhood information and hyper-local market data; while also providing the company and its agents with a set of digital marketing tools that will give them a competitive advantage.
Highlights of the new @properties site include: Chicago neighborhood guides featuring business reviews, photos, detailed school reports and hyper-local news content; a customizable property search tool that allows users to draw their own search boundaries directly on an area map; an open house touring tool that allows users to choose the homes they wish to tour and get printable point-to-point directions and email listing alerts for both new properties and property status changes, so users can monitor specific properties and market segments.
“This new website is the most advanced, most comprehensive and most user-friendly online tool for Chicago real estate. It was designed around Chicago homebuyers and sellers to instinctively deliver the content they want in a usable fashion,” said Thaddeus Wong, co-founder of @properties. “At the same time, the site will also drive business and serve as a valuable marketing resource for our agents.”
For more information, visit www.atproperties.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Read more: http://rismedia.com/2009-11-04/properties-launches-new-chicago-real-estate-website/#ixzz0WrNuurdT
Dave Straub's @properties web site: http://www.atproperties.com/agents/DaveStraub
Highlights of the new @properties site include: Chicago neighborhood guides featuring business reviews, photos, detailed school reports and hyper-local news content; a customizable property search tool that allows users to draw their own search boundaries directly on an area map; an open house touring tool that allows users to choose the homes they wish to tour and get printable point-to-point directions and email listing alerts for both new properties and property status changes, so users can monitor specific properties and market segments.
“This new website is the most advanced, most comprehensive and most user-friendly online tool for Chicago real estate. It was designed around Chicago homebuyers and sellers to instinctively deliver the content they want in a usable fashion,” said Thaddeus Wong, co-founder of @properties. “At the same time, the site will also drive business and serve as a valuable marketing resource for our agents.”
For more information, visit www.atproperties.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Read more: http://rismedia.com/2009-11-04/properties-launches-new-chicago-real-estate-website/#ixzz0WrNuurdT
Dave Straub's @properties web site: http://www.atproperties.com/agents/DaveStraub
Thursday, November 12, 2009
More positive news on new-home sales
(Crain’s) — After enduring a three-year freefall, local homebuilders have nowhere to go but up — or at least sideways.
Chicago-area new-home sales rose for the third quarter in a row on a seasonally adjusted annualized basis, according to housing consultant Tracy Cross & Associates Inc., another sign that the worst is over for homebuilders.
Yet where the market goes from here will depend on the broader economy and job market, which isn’t likely to surge back anytime soon.
“You can’t get blood out of a turnip, and that’s where the problem is,” says Tracy Cross, president of the Schaumburg-based firm.
On a seasonally adjusted annualized basis, local residential developers sold 4,666 homes in the third quarter, up 15% from a rate of 4,054 in the second quarter, according to a recent report published by the firm. The market bottomed out at 2,786 sales in fourth-quarter 2008.
The bad news is that 2009 will likely go down as the worst year for homebuilders since World War II. Even with the recent pickup, the beginning of the year was so bad that Mr. Cross expects developers to sell just 3,700 homes this year, down 42% from 6,374 in 2008 and 89% from the peak of 33,287 in 2005.
Sales in the city bounced back in the third quarter, as developers lured buyers by slashing prices by as much as 35%. Chicago builders sold 1,967 units at a seasonally adjusted annualized rate, nearly triple the 674-unit pace in the second quarter.
Chicago condo developers are still sitting on several thousand unsold units, ensuring that the discounting will continue. The developer of the 168-unit Park Monroe recently reduced prices on several condos in the project at 65 E. Monroe St.; one-bedroom, one-bathroom condos there now are listed at $299,500 down 25% from $399,900 previously, according to the development’s Web site.
The quarter was tougher on the suburban market, where seasonally adjusted annualized sales fell 20% from the second quarter, to 2,699 units. One reason: The $8,000 federal tax credit for first-time homebuyers boosted suburban demand in the first half of the year, but sales petered out in the third quarter because the credit is set to expire Nov. 30, Mr. Cross says.
Because of the time it takes to build a new home, suburban buyers who signed contracts in the third quarter wouldn’t have been able to close on the purchases until after the deadline, removing the sense of urgency to buy, he says. Tracy Cross records a sale when a purchase contract is signed, not at closing.
The tax credit has been less of a factor in the city because new homes there, with an average price of $587,158 in the third quarter, are beyond the means of many first-time buyers, Mr. Cross says.
Congress is considering extending and expanding the homebuyer credit, possibly until April 30, but that won’t be enough to ensure a recovery in the U.S. housing market.
Even if the credit is extended, “home demand and prices will deteriorate again once the credit eventually expires — especially if job creation does not materialize in light of further anticipated increases in housing inventory as mortgage delinquencies and foreclosures rise,” CreditSights Inc., a New York-based research firm, writes in a recent report.
The other key factor is the availability of mortgage financing. Condo developers continue to gripe that lenders have tightened their underwriting standards so much that creditworthy borrowers can no longer get a loan to finance a new condo purchase. And mortgage rates are rising again, fueling concerns that higher borrowing costs could stall a market recovery.
Though he’s written off 2009, Mr. Cross expects new home sales to rise about 20% in 2010, rising ultimately to about 22,000 units annually.
“We don’t see Chicago ever coming back to what we saw in ’04 and ’05,” he says.
By Alby Gallun, Nov. 02, 2009
Chicago-area new-home sales rose for the third quarter in a row on a seasonally adjusted annualized basis, according to housing consultant Tracy Cross & Associates Inc., another sign that the worst is over for homebuilders.
Yet where the market goes from here will depend on the broader economy and job market, which isn’t likely to surge back anytime soon.
“You can’t get blood out of a turnip, and that’s where the problem is,” says Tracy Cross, president of the Schaumburg-based firm.
On a seasonally adjusted annualized basis, local residential developers sold 4,666 homes in the third quarter, up 15% from a rate of 4,054 in the second quarter, according to a recent report published by the firm. The market bottomed out at 2,786 sales in fourth-quarter 2008.
The bad news is that 2009 will likely go down as the worst year for homebuilders since World War II. Even with the recent pickup, the beginning of the year was so bad that Mr. Cross expects developers to sell just 3,700 homes this year, down 42% from 6,374 in 2008 and 89% from the peak of 33,287 in 2005.
Sales in the city bounced back in the third quarter, as developers lured buyers by slashing prices by as much as 35%. Chicago builders sold 1,967 units at a seasonally adjusted annualized rate, nearly triple the 674-unit pace in the second quarter.
Chicago condo developers are still sitting on several thousand unsold units, ensuring that the discounting will continue. The developer of the 168-unit Park Monroe recently reduced prices on several condos in the project at 65 E. Monroe St.; one-bedroom, one-bathroom condos there now are listed at $299,500 down 25% from $399,900 previously, according to the development’s Web site.
The quarter was tougher on the suburban market, where seasonally adjusted annualized sales fell 20% from the second quarter, to 2,699 units. One reason: The $8,000 federal tax credit for first-time homebuyers boosted suburban demand in the first half of the year, but sales petered out in the third quarter because the credit is set to expire Nov. 30, Mr. Cross says.
Because of the time it takes to build a new home, suburban buyers who signed contracts in the third quarter wouldn’t have been able to close on the purchases until after the deadline, removing the sense of urgency to buy, he says. Tracy Cross records a sale when a purchase contract is signed, not at closing.
The tax credit has been less of a factor in the city because new homes there, with an average price of $587,158 in the third quarter, are beyond the means of many first-time buyers, Mr. Cross says.
Congress is considering extending and expanding the homebuyer credit, possibly until April 30, but that won’t be enough to ensure a recovery in the U.S. housing market.
Even if the credit is extended, “home demand and prices will deteriorate again once the credit eventually expires — especially if job creation does not materialize in light of further anticipated increases in housing inventory as mortgage delinquencies and foreclosures rise,” CreditSights Inc., a New York-based research firm, writes in a recent report.
The other key factor is the availability of mortgage financing. Condo developers continue to gripe that lenders have tightened their underwriting standards so much that creditworthy borrowers can no longer get a loan to finance a new condo purchase. And mortgage rates are rising again, fueling concerns that higher borrowing costs could stall a market recovery.
Though he’s written off 2009, Mr. Cross expects new home sales to rise about 20% in 2010, rising ultimately to about 22,000 units annually.
“We don’t see Chicago ever coming back to what we saw in ’04 and ’05,” he says.
By Alby Gallun, Nov. 02, 2009
Friday, October 30, 2009
Chicago-area existing-home sales rise for 3rd straight month
Will the local housing market’s improvement hold?
Year-over-year sales of existing homes and condominiums rose in September for the third consecutive month, sparking optimism that, at least from a volume standpoint, the market is on the mend.
Pricing, however, is not. Distressed sales and lower-priced homes that appeal to first-time buyers caused September’s median sales prices to fall in all nine area counties. In fact, the area’s median sales price of $199,000 was down 10.8 percent from last year and 22.7 percent lower than in September 2007, according to the Illinois Association of Realtors.
Sales of existing homes and condominiums in the Chicago area rose 5.9 percent in September, to 6,862 homes, the real estate trade group reported Friday.
Kendall County highlighted the market’s dichotomy, as sales rose 26.2 percent but the median price plunged to $177,000, down almost 22 percent from September 2008.
Chicago recorded its first monthly, year-over-year sales gain since May 2006, as sales rose 5.8 percent, to 1,918 properties. But the median price fell 16.2 percent, to $225,000.
First-time buyers are driving the marketplace, accounting for 45 percent of transactions over the past year nationally, so the industry continued Friday to trumpet the need for an expansion of the first-time buyer’s tax credit. The $8,000 credit expires Nov. 30.
“We are turning a corner, but I don’t believe we’re stabilized yet,” said Pat Callan of Realty Executives Premiere in Wheaton. “Prices are still going down, and I don’t know that the year-over-year increase in sales is sustainable without the tax credit.”
Beyond the tax credit, the variables that will define the market going forward remain the same: the still-difficult credit environment, unemployment and interest rates.
“It’s clear that we’ve been at a plateau for the better part of 2009, but you really have to ask yourself where the risk is tilted, and I would be concerned that the risk is still tilted to the downside,” said ShoreBank chief economist David Oser.
Mary Ellen Podmolik
Chicago Tribune
October 24, 2009
Year-over-year sales of existing homes and condominiums rose in September for the third consecutive month, sparking optimism that, at least from a volume standpoint, the market is on the mend.
Pricing, however, is not. Distressed sales and lower-priced homes that appeal to first-time buyers caused September’s median sales prices to fall in all nine area counties. In fact, the area’s median sales price of $199,000 was down 10.8 percent from last year and 22.7 percent lower than in September 2007, according to the Illinois Association of Realtors.
Sales of existing homes and condominiums in the Chicago area rose 5.9 percent in September, to 6,862 homes, the real estate trade group reported Friday.
Kendall County highlighted the market’s dichotomy, as sales rose 26.2 percent but the median price plunged to $177,000, down almost 22 percent from September 2008.
Chicago recorded its first monthly, year-over-year sales gain since May 2006, as sales rose 5.8 percent, to 1,918 properties. But the median price fell 16.2 percent, to $225,000.
First-time buyers are driving the marketplace, accounting for 45 percent of transactions over the past year nationally, so the industry continued Friday to trumpet the need for an expansion of the first-time buyer’s tax credit. The $8,000 credit expires Nov. 30.
“We are turning a corner, but I don’t believe we’re stabilized yet,” said Pat Callan of Realty Executives Premiere in Wheaton. “Prices are still going down, and I don’t know that the year-over-year increase in sales is sustainable without the tax credit.”
Beyond the tax credit, the variables that will define the market going forward remain the same: the still-difficult credit environment, unemployment and interest rates.
“It’s clear that we’ve been at a plateau for the better part of 2009, but you really have to ask yourself where the risk is tilted, and I would be concerned that the risk is still tilted to the downside,” said ShoreBank chief economist David Oser.
Mary Ellen Podmolik
Chicago Tribune
October 24, 2009
Lincoln Square and Ravenswood
Lincoln Square: Centered around a bustling shopping and dining district at the intersection of Lawrence, Western and Lincoln Avenues on Chicago's North Side, Lincoln Square became one of Chicago's first commuter suburbs when the Ravenswood elevated train line was completed in 1907. Today, this Chicago neighborhood still gives residents convenient access to public transportation including the CTA Brown Line and the Metra Union Pacific North Line. Likewise, the community effortlessly blends trendy hot spots with its century-old German heritage.
Lincoln Square's quiet residential streets are lined with Chicago bungalows, greystones and brick two- and three-flats, many of which have been recently rehabbed. Lovely Victorian and Prairie School homes can be found along the North Branch of the Chicago River. While single-family homes in Lincoln Square can run upwards of $1 million, vintage apartment buildings restored as condominiums are often a more affordable option. New-construction options are also available in the neighborhood, including single-family homes, town homes, three-flat condominiums and mid rise buildings.
Lincoln Square's German heritage lives on in a number of German restaurants including the Chicago Brauhaus and Lutz Continental; however, Lincoln Avenue also serves up an eclectic mix of sophisticated eateries, corner cafes and favorite neighborhood hangouts such as Jury's and Pizza D.O.C. A lively cultural scene is fueled by the Old Town School of Folk Music as well as annual festivals like the Chicago Folk & Roots music festival and the German-American Fest, which draw crowds from throughout Chicago and the Midwest.
Neighborhoods within Lincoln Square:
Bowmanville, Budlong Woods, Lincoln Square, Ravenswood, Ravenswood Gardens
Zip codes within Lincoln Square:
60625, 60640
For More Information on Chicago Neighborhoods Please Visit the All New @properties Web Site: www.atproperties.com or call Dave Straub 773.255.3180
Lincoln Square's quiet residential streets are lined with Chicago bungalows, greystones and brick two- and three-flats, many of which have been recently rehabbed. Lovely Victorian and Prairie School homes can be found along the North Branch of the Chicago River. While single-family homes in Lincoln Square can run upwards of $1 million, vintage apartment buildings restored as condominiums are often a more affordable option. New-construction options are also available in the neighborhood, including single-family homes, town homes, three-flat condominiums and mid rise buildings.
Lincoln Square's German heritage lives on in a number of German restaurants including the Chicago Brauhaus and Lutz Continental; however, Lincoln Avenue also serves up an eclectic mix of sophisticated eateries, corner cafes and favorite neighborhood hangouts such as Jury's and Pizza D.O.C. A lively cultural scene is fueled by the Old Town School of Folk Music as well as annual festivals like the Chicago Folk & Roots music festival and the German-American Fest, which draw crowds from throughout Chicago and the Midwest.
Neighborhoods within Lincoln Square:
Bowmanville, Budlong Woods, Lincoln Square, Ravenswood, Ravenswood Gardens
Zip codes within Lincoln Square:
60625, 60640
For More Information on Chicago Neighborhoods Please Visit the All New @properties Web Site: www.atproperties.com or call Dave Straub 773.255.3180
About @properties
We can tell you that we became the #1 real estate brokerage in Chicago in only eight years, because we did. We can tell you that @properties has invested millions to ensure that we stay on the leading edge of technology and marketing, because we have. We can also tell you that our agents are held to a higher standard of service, professionalism, and performance than any other brokerage in the business, because they are.
We can tell you all of that.
But what matters most is that you experience it. In short, we make it our goal to provide you with expert, caring, and candid advice throughout one of the most important transactions you will ever make. That is our commitment to you. It is a commitment we deliver on every transaction we make, one that supports our continued success. Your complete satisfaction is our priority, one that we are continually dedicated to.
For us, it is simple; we just won’t accept anything less.
For more information about @properties, please visit http://www.atproperties.com/about-us
or call Dave Straub 773.255.3180
We can tell you all of that.
But what matters most is that you experience it. In short, we make it our goal to provide you with expert, caring, and candid advice throughout one of the most important transactions you will ever make. That is our commitment to you. It is a commitment we deliver on every transaction we make, one that supports our continued success. Your complete satisfaction is our priority, one that we are continually dedicated to.
For us, it is simple; we just won’t accept anything less.
For more information about @properties, please visit http://www.atproperties.com/about-us
or call Dave Straub 773.255.3180
Monday, August 17, 2009
@properties Market Report
@properties Market Report
http://www.atproperties.com/marketReport/
The @properties Market Report is the only real estate report that takes Chicago homebuyers and sellers inside the numbers, to offer real insights into local market activity.
For attached housing (condos and townhomes), data is now divided by neighborhood, and also by number of bedrooms and number of baths. This gives consumers a true “apples-to-apples” comparison of sales in their neighborhood. Similarly, for detached or single-family homes, the report is divided into four price points, also allowing home owners to compare and contrast more similar homes.
The data itself, which includes average market time, average price and number of units sold, can now be viewed in several different ways by the user. Consumers interested in buying or selling a home right now can sort the data by consecutive seasons. This shows the latest fluctuations and market trends and is similar to the data your agent uses when helping you determine a bid or asking price. For consumers interested in more long-term pricing trends, it can be helpful to view the annual comparisons, which remove seasonal influences and fluctuations.
One of the most important concepts this report confirms is the local nature of real estate, which goes far beyond what's happening region by region or city by city. In Chicago, local means neighborhood by neighborhood, block by block.
The @properties Market Report is a great top-line resource for understanding the trends that affect your local real estate market. For a more in-depth analysis and thorough property evaluation, turn to your local @properties sales agent. No one knows the market better.
Click on a neighborhood below to view our current Market Report.
http://www.atproperties.com/marketReport/
http://www.atproperties.com/marketReport/
The @properties Market Report is the only real estate report that takes Chicago homebuyers and sellers inside the numbers, to offer real insights into local market activity.
For attached housing (condos and townhomes), data is now divided by neighborhood, and also by number of bedrooms and number of baths. This gives consumers a true “apples-to-apples” comparison of sales in their neighborhood. Similarly, for detached or single-family homes, the report is divided into four price points, also allowing home owners to compare and contrast more similar homes.
The data itself, which includes average market time, average price and number of units sold, can now be viewed in several different ways by the user. Consumers interested in buying or selling a home right now can sort the data by consecutive seasons. This shows the latest fluctuations and market trends and is similar to the data your agent uses when helping you determine a bid or asking price. For consumers interested in more long-term pricing trends, it can be helpful to view the annual comparisons, which remove seasonal influences and fluctuations.
One of the most important concepts this report confirms is the local nature of real estate, which goes far beyond what's happening region by region or city by city. In Chicago, local means neighborhood by neighborhood, block by block.
The @properties Market Report is a great top-line resource for understanding the trends that affect your local real estate market. For a more in-depth analysis and thorough property evaluation, turn to your local @properties sales agent. No one knows the market better.
Click on a neighborhood below to view our current Market Report.
http://www.atproperties.com/marketReport/
SIGNS OF LIFE EMERGE IN SALES OF RESIDENTIAL REAL ESTATE
SIGNS OF LIFE EMERGE IN SALES OF RESIDENTIAL REAL ESTATE
But it isn't a good time to speculate, advisers tell clients eager to enter market
By Jeff Benjamin
August 9, 2009, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090809/REG/308099988&ht=chicago housing market
Shared via AddThis
But it isn't a good time to speculate, advisers tell clients eager to enter market
By Jeff Benjamin
August 9, 2009, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090809/REG/308099988&ht=chicago housing market
Shared via AddThis
Rental market afloat amid turmoil
Rental market stays afloat amid housing turmoil
Those who can't buy, rent — and investors are taking notice
By Janet Morrissey
May 5, 2008, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080505/REG/609385045
Shared via AddThis
Those who can't buy, rent — and investors are taking notice
By Janet Morrissey
May 5, 2008, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080505/REG/609385045
Shared via AddThis
Thursday, August 6, 2009
Home Sales Are Gaining Ground!
Chicago's real estate market has provided homebuyers and sellers with a plethora of unique opportunities in recent months. Thanks to incentives like the first time home buyer tax credit, and record low mortgage rates, buyers and sellers alike have good reasons to celebrate. With motivations like these, it should come as no surprise that our own city's home sales have increased 1.1% over the last month, one of the best in the nation.
Utilizing Standard & Poor's Case-Shiller Index, a tool that is used to analyze sales activity, economists can report a .5% increase in home sales across the U.S. Experts alike agree that the change in momentum is rather significant, providing additional data which illustrates new home sales up an additional 11% in June. While distressed homes recently accounted for over 50% of the home sales, they have now decreased to a more satisfying 33%*. With improved builder sentiment, and an increase in investor energy, buyers and sellers alike are on the lookout for these incredible opportunities.
Thanks to these extraordinary incentives, homebuyers are materializing all over Chicago's marketplace. The first time homebuyer tax credit — which is available until November 30, 2009 — provides qualified first time buyers with an incredible $8000 tax refund. With record low mortgage rates from the Federal Housing Administration, homebuyers are provided better opportunities to qualify for home loans, and create personalized payment options. As homebuyers gain access to our diverse marketplace, sellers are better able to market and sell their home for a more attractive price.
As opportunities increase for homebuyers and sellers, it is imperative that you have a professional REALTOR® who can be an advocate on your behalf. Thanks to my knowledge, and expertise in the Chicago marketplace I am confident that we can reach your goals together. Please, don't hesitate to call me at any time for questions on market conditions, or to schedule a consultation.
*Source: Wall Street Journal, 7/29/2009
Dave Straub, @properties 773.255.3180
Utilizing Standard & Poor's Case-Shiller Index, a tool that is used to analyze sales activity, economists can report a .5% increase in home sales across the U.S. Experts alike agree that the change in momentum is rather significant, providing additional data which illustrates new home sales up an additional 11% in June. While distressed homes recently accounted for over 50% of the home sales, they have now decreased to a more satisfying 33%*. With improved builder sentiment, and an increase in investor energy, buyers and sellers alike are on the lookout for these incredible opportunities.
Thanks to these extraordinary incentives, homebuyers are materializing all over Chicago's marketplace. The first time homebuyer tax credit — which is available until November 30, 2009 — provides qualified first time buyers with an incredible $8000 tax refund. With record low mortgage rates from the Federal Housing Administration, homebuyers are provided better opportunities to qualify for home loans, and create personalized payment options. As homebuyers gain access to our diverse marketplace, sellers are better able to market and sell their home for a more attractive price.
As opportunities increase for homebuyers and sellers, it is imperative that you have a professional REALTOR® who can be an advocate on your behalf. Thanks to my knowledge, and expertise in the Chicago marketplace I am confident that we can reach your goals together. Please, don't hesitate to call me at any time for questions on market conditions, or to schedule a consultation.
*Source: Wall Street Journal, 7/29/2009
Dave Straub, @properties 773.255.3180
Thursday, July 16, 2009
The Heat Is On
The arrival of summer is just one of the reasons things are starting to heat up again at @properties this month. Thanks to the Real Trends nationwide Annual Report, we at @properties have a lot to celebrate, in particular our ranking as one of the top 100 brokerages in the U.S. As this report comes hot off the press.
The Real Trends annual research report highlights the country's most successful brokerages based on each firm's sales and volume. Their nationwide recognition as a "timely and trusted source" of Real Estate News only adds to our pride as a company that started from the ground up. With a ranking of #42 for Volume, and #62 for Closed Transactions, @properties has climbed its way into the top 100 best brokerages in the U.S. After opening our doors in 2001 @properties has made amazing strides within the industry and in a remarkably short amount of time.
Our success as a brokerage is founded on the belief that our clients receive an exemplary level of premiere service. We made a decision, when the market began to turn, to plan clearly, become more innovative through our web presence, continue our creative marketing strategies and to expand our exposure when others have not, continually working harder than we have ever before. Thanks in part to your valued business, @properties has been nominated as one of five brokerages nationwide as Most Innovative Brokerage by another trusted source within the industry, The Inman News group. Our desire to service you to the best of our abilities drives us to develop new technology, and create unique marketing tools that will benefit your needs. With these strategies and our growing network of dedicated clientele, @properties is also proud to announce our claim in 11.91%* of the market share in Chicago, as well as our ranking for #1* in closed volume within the city.
It is my priority to educate you on current market conditions, investment opportunities and advice on buying or selling your home. Thanks to @properties outstanding marketing efforts, brokers recognition, and accolades I feel confident that I can assist you with any of your real estate needs. Please, feel free to contact me at any time with your questions or to set up a consultation.
*Information provided by MRED/MLSNI for city [Chicago] properties 01/01/2009 - 07/02/2009
(@properties July 2009 Newsletter)
Dave Straub @properties 773.255.3180
The Real Trends annual research report highlights the country's most successful brokerages based on each firm's sales and volume. Their nationwide recognition as a "timely and trusted source" of Real Estate News only adds to our pride as a company that started from the ground up. With a ranking of #42 for Volume, and #62 for Closed Transactions, @properties has climbed its way into the top 100 best brokerages in the U.S. After opening our doors in 2001 @properties has made amazing strides within the industry and in a remarkably short amount of time.
Our success as a brokerage is founded on the belief that our clients receive an exemplary level of premiere service. We made a decision, when the market began to turn, to plan clearly, become more innovative through our web presence, continue our creative marketing strategies and to expand our exposure when others have not, continually working harder than we have ever before. Thanks in part to your valued business, @properties has been nominated as one of five brokerages nationwide as Most Innovative Brokerage by another trusted source within the industry, The Inman News group. Our desire to service you to the best of our abilities drives us to develop new technology, and create unique marketing tools that will benefit your needs. With these strategies and our growing network of dedicated clientele, @properties is also proud to announce our claim in 11.91%* of the market share in Chicago, as well as our ranking for #1* in closed volume within the city.
It is my priority to educate you on current market conditions, investment opportunities and advice on buying or selling your home. Thanks to @properties outstanding marketing efforts, brokers recognition, and accolades I feel confident that I can assist you with any of your real estate needs. Please, feel free to contact me at any time with your questions or to set up a consultation.
*Information provided by MRED/MLSNI for city [Chicago] properties 01/01/2009 - 07/02/2009
(@properties July 2009 Newsletter)
Dave Straub @properties 773.255.3180
Wednesday, July 15, 2009
Some Information Regarding Tenant's Rights
Renting in Illinois & Chicago - This is Not Legal Advice
The landlord-tenant relationship is older than recorded history. Papyrus rent receipts survive from ancient Egypt. Feudal lords of western Europe brought their form of the landlord-tenant relationship to England in 1066, and from there the English took it to America. Now it's in Illinois. Landlord-tenant friction has sparked murders, revolts, and civil war. Our court of appeals knows there is a "historical disparity between the bargaining powers of landlord and tenant." Plambeck v. Greystone Mgmt. & Columbia Nat'l Trust Co., 281 Ill. App. 3d 260, 266-267 (1st Dist. 1996). Tenants have gotten the short end of the stick since Moses.
I. LEASES & BREAKING THEM: "Let my people go"
Except in DeKalb, Mount Prospect, and Oak Park, Illinois apartment leases need not be in writing. Leases in DeKalb Mount Prospect and Oak Park for residential rentals must be in writing. Everywhere else in Illinois, if a tenant has no written lease, they are probably renting on a month-to-month basis. This kind of lease is valid and enforceable. It still requires written notice to terminate properly.
Even though a written lease is not a prerequisite to renting, a tenant may prefer a written lease. Verbal rental agreements are enforceable, but unreliable. Who promised what exactly? It's not clear. Still, a tenant may want no written lease so they can move out on short notice. Landlords usually want a written lease so they can bind their tenants to paying rent for a long term. A written 12-month lease is a promise by the tenant to pay 12 months of rent. Landlords might successfully sue tenants for all the rent due under a written 12-month lease even if the tenant never moved in. So there are times when signing a written lease is good, and times when it's bad.
If a tenant breaks a lease improperly, that tenant is probably on the hook for rent for the rest of the lease term. Under no circumstances should a renter rely on a landlord's VERBAL agreement to let the tenant break the lease. Nor should the tenant give only a VERBAL 30-day notice to terminate a month-to-month rental. This is true even if the lease itself isn't in writing. If an agreement to terminate a lease before its natural expiration date it isn't in writing, the renter is foolish to rely on it. That unfortunate renter will owe rent and may get sued. They'll at least jeopardize their security deposit. A renter can wind up owing rent for months that the tenant doesn't even live at the property. A renter might even have to pay the landlord's lawyer fees after the landlord sues for rent. See VG Marina Mgmt. Corp. v. Wiener, 371 Ill. App. 3d 201 (2nd Dist. 2007). There are cases where a tenant simply cannot legally terminate their lease early, no matter how much they need to. Even in Chicago. Be careful breaking leases. If you can't do it right, don't do it.
Roommate problems? Tenants cannot escape a lease they signed with roommates just because some, but not all, tenants are violating the lease or making the apartment disgusting. Tenants on a lease are jointly and severally liable. That means the landlord can sue any one of the tenants on a lease for ALL the rent due under the lease. Yes, you may be responsible for your deadbeat roommate's rent, even if you paid all of your rent. So be careful who you sign a lease with. At least in Chicago you may have grounds to legally break the lease and get a fresh start on your own or with a more responsible roommate. Talk to a Chicago landlord-tenant or renters-rights attorney about this option.
Some renters in Oak Park have a defect in their lease that can get them out of the written lease on 30 days' written notice.
Renters in most of Illinois have no certain means to legally terminate a lease before its written expiration date. These tenants' best hope is to negotiate some resolution with their landlord and commit it to signed writing.
II. ARE YOU COVERED BY THE RLTO IN CHICAGO? TENANTS HOPE SO.
Most apartment, condo, and house rentals in Chicago are covered by the RLTO because the RLTO applies to all rental agreements in the City, written and unwritten, unless the rental is subject to some exclusion found under section 020 of the RLTO. That section excludes a number of rentals, and this discussion touches only on a few of those exclusions. Tenants are advised to make sure they don't take any action or inaction in reliance upon the RLTO without consulting an attorney. It won't turn out well if the RLTO doesn't apply. The Chicago RLTO only applies in Chicago; not all of Cook County.
Owner Occupied + < 7 Apartments
The RLTO does not apply to a rental in a building if the owner of the property lives in the building AND the building has only six units, or fewer. It does not matter how many of the units are actually being rented at the time. See Meyer v. Cohen, 260 Ill. App. 3d 351, 358 (1st Dist. 1993).
A single-family home will be covered by the RLTO in Chicago, because the owner of the rented house does not live in the rented house. Only the renter lives in the rented house. Same goes for a single condo unit rented out in a large building. Even if the condo landlord only owns one unit in the building, they are covered by the RLTO. See VG Marina Mgmt. Corp. v. Wiener, 378 Ill. App. 3d 887 (2d Dist. 2008).
The Illinois court of appeals has held that town-homes in a row under the same roof are still separate buildings under the RLTO. Allen v. Lin, 356 Ill. App. 3d 405, 413 (1st Dist. 2005). So if there is a row of five town-homes and your landlord lives in one, and you rent the one next-door, you may still be protected by the RLTO. On the other hand, if you rent a unit in a duplex, and the owner lives in the other unit, you are not protected by the RLTO. But if the building has seven or more units and the landlord lives in the same building, you are still protected.
Co-op
The RLTO does not apply to a unit rented by a member of a co-op that holds a proprietary lease. Our office was involved in one case where the landlord alleged that a huge building it managed was a co-op, and so not covered by the RLTO. The court decided that this was not true, because the tenants did not own any shares in the corporation that owned the building. True holders of "proprietary leases" in a co-op own shares in the co-op corporation, and the tenants in our case did not own shares in the "Tenants Association" that held title to the building.
Monasteries, School Dorms, Hospitals, Transitional Care Facilities, Not-for-Profit Homes for the Elderly, Asylums
All of the above are not covered by the RLTO. Until the beginning of 2008, a college dorm was only excused from coverage by the RLTO if it was owned AND operated by the school. But if you rented at a private dorm, not owned by the institution, it may still have been covered by the RLTO. However, city council amended the RLTO in early 2008 to turn the "and" into an "or" so that previously covered buildings became excluded from RLTO coverage. This amendment probably came at the desperate request of institutions like Roosevelt and DePaul Universities, as certain residence hall of theirs were being sued in class action lawsuits alleging violations of the RLTO. It is also important to mention that, even though a not-for-profit home for the elderly is not covered by the RLTO, if it has 25 or more units and is not "public housing," it may still be covered by the Illinois Security Deposit Interest Act and Security Deposit Return Act.
Hotels, Rooming Houses, Bed & Breakfasts
If you rent at a flophouse-type establishment, and pay rent daily or weekly, you are not protected by the RLTO until you've rented there more than 32 days in a row. Then, you might be covered if you start paying a monthly rent. The RLTO is unclear about what happens if you keep paying weekly or daily rent for more than 32 days, and never pay a "monthly rent." It is our opinion that renters at a hotel or boardinghouse with 25 or more units who give deposits and stay more than six months are protected by the Illinois Security Deposit Interest Act regardless of whether the RLTO applies or not.
Purchaser or Seller Pursuant to a Real Estate Purchase Contract Prior to the Transfer of Title
The definition of "real estate purchase contract" in this section is regrettably open to interpretation. Does this exclusion encompass to a rent-to-own situation? How about an option, or a right of first refusal? Unless there will be a transfer of title, for sure, according to the written terms of the contract, tenants renting to buy or holding other options can reasonably argue they do not have a "real estate purchase contract." Only the courts or City Council can resolve the ambiguity arising from this exclusion.
Employee of a Landlord Whose Right to Occupancy is Conditional Upon Employment At the Premises
Tenants who get an apartment because they work on or at the property are not protected by the RLTO. If you are the building super, the renter across the hall might be protected by the RLTO while you aren't. There are situations we have encountered where tenants have leases and pay rent, but their rent is discounted on account of work the tenant does at the building. Coverage of these arrangements by the RLTO is unknown. Those tenants may argue that their occupancy is not "conditional upon employment" because, if they just pay the higher rent amount, their employment doesn't matter. Only the courts or City Council can answer this.
III. Chicago's RLTO is More Than Just Security Deposit Law
If it applies, there is more to the Chicago Landlord Tenant Ordinance than just security deposit law. Chicago law also offers opportunities to break a lease, and recover damages for excessive late fees, annoying apartment showings, and retaliatory evictions, to name just a few common violations. Forcing a tenant to renew their lease more than 90 days before it expires, trying to enforce a lease provision requiring the tenant to pay the landlord's attorney fees, threats to lock a tenant out, failure to turn over possession at the beginning of the lease, and failure to disclose code citations against a building before the tenant signs a lease all can entitle a tenant to automatic damages even if the tenant suffered no actual harm. We have recovered substantial damage awards for Chicago renters who did not even give security deposits. Chicago apartment laws are more complicated than just paying interest and returning the security deposit within 45 days.
IV. Application of Tenants' Rights Law Outside Chicago in the Rest of Illinois
With few local exceptions, Apartment rentals in the rest of Illinois are governed only by the Illinois Security Deposit Interest Act and Illinois Security Deposit Return Act. These Acts are not as generous towards tenants as the local ordinances in Chicago, Evanston, Mount Prospect, Oak Park, DeKalb, and Urbana. DepositLaw has obtained very favorable results for tenants under the Evanston RLTO which is unique in the state because it requires security deposits be returned and accounted for within 21 days after a tenant moves out.
The Illinois Security Deposit Interest Act only applies to renters of landlords who own or manage properties with 25 or more units. The Illinois Security Deposit Return Act only applies to renters at buildings with five or more units.
The Illinois Security Deposit Interest Act requires that a tenant show their landlord "willfully failed" to pay interest as required by the Act, or refused. Proving a compensable violation under either of the Security Deposit Acts is more complicated than in Chicago. DepositLaw files many class action cases under these Acts against large downstate and Cook County suburban landlords of apartment complexes with hundreds of units.
Under the Illinois Security Deposit Return Act, the tenant is only entitled to penalty damages equal to two-times the amount the landlord withholds if "bad faith" or a refusal to provide a written statement supplemented by receipts is proven. This may not be easy. However, a tenant is entitled to return of their deposit in full if the landlord claims to have paid outside contractors or vendors to do work on the apartment but fails to provide the tenant with copies of paid receipts within 60 days after the tenant moved out. Even if this failure was not a refusal, or in bad faith, the deposit itself must be returned (without penalty damages or attorney fees for the tenant). If the tenant can show the failure was a refusal, then the penalty damages and attorney fees may be awarded. DepositLaw helps tenants draft letters to their landlords in order to prove "refusal."
When renting outside of Chicago, an Illinois tenant needs to understand that there may be no law governing their security deposit return except the provisions of their lease, or the common law of conversion.
Also, unlike in Chicago and Oak Park, there is likely no way a downstate Illinois tenant can legally get out of a long-term lease. Tenants cannot escape liability under their leases due to economic hardship, a job transfer, marital discord, or alleged "mold." A landlord can always accept a tenant's surrender and voluntarily release a tenant from their lease obligations, but make sure to get that in WRITING. If a tenant can really prove that habitability issues render the apartment or house totally uninhabitable, according to a competent government agency or licensed inspector, the tenant may be able to get out of a lease by claiming "constructive eviction." This is not easy though.
Renters outside Chicago in Illinois are protected by a watered-down version of the RLTO provisions allowing for rent-withholding when a tenant has to make repairs the landlord ought to. The Illinois Residential Tenants' Right to Repair Act does not let tenants break leases, but may allow them to withhold from rent up to $500 or half the monthly rent, whichever is less, for payments the tenant makes to contractors to fix problems that are the landlord's responsibility. But this is allowed only after the tenant has written the landlord a certified letter (return receipt) informing the landlord of the problems and giving the landlord at least 14 days to fix the problems themselves. Obviously the tenant cannot exercise this right if the tenant caused the damage.
The Illinois Safe Homes Act does also provide that a tenant may be able to avoid liability under the remainder of a lease if they moved out under a "credible imminent threat of domestic or sexual violence at the premises; and (2) the tenant gave written notice to the landlord prior to or within 3 days of vacating the premises that the reason for vacating the premises was because of a credible imminent threat of domestic or sexual violence against the tenant or a member of the tenant's household." What's a "credible imminent threat"? It's up to the judge or jury.
Finally, downstate renters have some protection against retaliatory evictions or refusals to renew leases under the Illinois Retaliatory Eviction Act. If a tenant has exercised their rights under state law or complained to a government agency about the landlord, or PROPERLY withheld rent under the Right to Repair Act, then the tenant may have a defense to eviction. This is only if the tenant is current on rent and not otherwise in breach of their lease.
ATTENTION: Because the Illinois General Assembly and the Illinois city councils may change, amend, or abolish the law without notice, the statutes provided here are not guaranteed to be an exact reproduction of the law at this time. The laws provided here are for informational purposes only and should not be relied upon before taking any action. Please consult an attorney.
This web site is intended to supply general information to the public. Although the information is generally accurate, it cannot be guaranteed. The nature of Legislation is that laws change quickly, and visitors should always insure that legal information is accurate before relying on it. The above information applies the law of the State of Illinois and City of Chicago. The law in your jurisdiction may be different. This information is necessarily brief and may or may not apply to your situation. In all cases, PLEASE, consult a lawyer before acting.
This web site is not intended to be advertising, solicitation, or legal advice. Thus, the reader should not consider this information to be an invitation for an attorney-client relationship, should not rely on information provided herein, and should always seek the advice of competent counsel in the reader's state.
-from http://www.depositlaw.com/ Mark Silverman Law Office, LTD
The landlord-tenant relationship is older than recorded history. Papyrus rent receipts survive from ancient Egypt. Feudal lords of western Europe brought their form of the landlord-tenant relationship to England in 1066, and from there the English took it to America. Now it's in Illinois. Landlord-tenant friction has sparked murders, revolts, and civil war. Our court of appeals knows there is a "historical disparity between the bargaining powers of landlord and tenant." Plambeck v. Greystone Mgmt. & Columbia Nat'l Trust Co., 281 Ill. App. 3d 260, 266-267 (1st Dist. 1996). Tenants have gotten the short end of the stick since Moses.
I. LEASES & BREAKING THEM: "Let my people go"
Except in DeKalb, Mount Prospect, and Oak Park, Illinois apartment leases need not be in writing. Leases in DeKalb Mount Prospect and Oak Park for residential rentals must be in writing. Everywhere else in Illinois, if a tenant has no written lease, they are probably renting on a month-to-month basis. This kind of lease is valid and enforceable. It still requires written notice to terminate properly.
Even though a written lease is not a prerequisite to renting, a tenant may prefer a written lease. Verbal rental agreements are enforceable, but unreliable. Who promised what exactly? It's not clear. Still, a tenant may want no written lease so they can move out on short notice. Landlords usually want a written lease so they can bind their tenants to paying rent for a long term. A written 12-month lease is a promise by the tenant to pay 12 months of rent. Landlords might successfully sue tenants for all the rent due under a written 12-month lease even if the tenant never moved in. So there are times when signing a written lease is good, and times when it's bad.
If a tenant breaks a lease improperly, that tenant is probably on the hook for rent for the rest of the lease term. Under no circumstances should a renter rely on a landlord's VERBAL agreement to let the tenant break the lease. Nor should the tenant give only a VERBAL 30-day notice to terminate a month-to-month rental. This is true even if the lease itself isn't in writing. If an agreement to terminate a lease before its natural expiration date it isn't in writing, the renter is foolish to rely on it. That unfortunate renter will owe rent and may get sued. They'll at least jeopardize their security deposit. A renter can wind up owing rent for months that the tenant doesn't even live at the property. A renter might even have to pay the landlord's lawyer fees after the landlord sues for rent. See VG Marina Mgmt. Corp. v. Wiener, 371 Ill. App. 3d 201 (2nd Dist. 2007). There are cases where a tenant simply cannot legally terminate their lease early, no matter how much they need to. Even in Chicago. Be careful breaking leases. If you can't do it right, don't do it.
Roommate problems? Tenants cannot escape a lease they signed with roommates just because some, but not all, tenants are violating the lease or making the apartment disgusting. Tenants on a lease are jointly and severally liable. That means the landlord can sue any one of the tenants on a lease for ALL the rent due under the lease. Yes, you may be responsible for your deadbeat roommate's rent, even if you paid all of your rent. So be careful who you sign a lease with. At least in Chicago you may have grounds to legally break the lease and get a fresh start on your own or with a more responsible roommate. Talk to a Chicago landlord-tenant or renters-rights attorney about this option.
Some renters in Oak Park have a defect in their lease that can get them out of the written lease on 30 days' written notice.
Renters in most of Illinois have no certain means to legally terminate a lease before its written expiration date. These tenants' best hope is to negotiate some resolution with their landlord and commit it to signed writing.
II. ARE YOU COVERED BY THE RLTO IN CHICAGO? TENANTS HOPE SO.
Most apartment, condo, and house rentals in Chicago are covered by the RLTO because the RLTO applies to all rental agreements in the City, written and unwritten, unless the rental is subject to some exclusion found under section 020 of the RLTO. That section excludes a number of rentals, and this discussion touches only on a few of those exclusions. Tenants are advised to make sure they don't take any action or inaction in reliance upon the RLTO without consulting an attorney. It won't turn out well if the RLTO doesn't apply. The Chicago RLTO only applies in Chicago; not all of Cook County.
Owner Occupied + < 7 Apartments
The RLTO does not apply to a rental in a building if the owner of the property lives in the building AND the building has only six units, or fewer. It does not matter how many of the units are actually being rented at the time. See Meyer v. Cohen, 260 Ill. App. 3d 351, 358 (1st Dist. 1993).
A single-family home will be covered by the RLTO in Chicago, because the owner of the rented house does not live in the rented house. Only the renter lives in the rented house. Same goes for a single condo unit rented out in a large building. Even if the condo landlord only owns one unit in the building, they are covered by the RLTO. See VG Marina Mgmt. Corp. v. Wiener, 378 Ill. App. 3d 887 (2d Dist. 2008).
The Illinois court of appeals has held that town-homes in a row under the same roof are still separate buildings under the RLTO. Allen v. Lin, 356 Ill. App. 3d 405, 413 (1st Dist. 2005). So if there is a row of five town-homes and your landlord lives in one, and you rent the one next-door, you may still be protected by the RLTO. On the other hand, if you rent a unit in a duplex, and the owner lives in the other unit, you are not protected by the RLTO. But if the building has seven or more units and the landlord lives in the same building, you are still protected.
Co-op
The RLTO does not apply to a unit rented by a member of a co-op that holds a proprietary lease. Our office was involved in one case where the landlord alleged that a huge building it managed was a co-op, and so not covered by the RLTO. The court decided that this was not true, because the tenants did not own any shares in the corporation that owned the building. True holders of "proprietary leases" in a co-op own shares in the co-op corporation, and the tenants in our case did not own shares in the "Tenants Association" that held title to the building.
Monasteries, School Dorms, Hospitals, Transitional Care Facilities, Not-for-Profit Homes for the Elderly, Asylums
All of the above are not covered by the RLTO. Until the beginning of 2008, a college dorm was only excused from coverage by the RLTO if it was owned AND operated by the school. But if you rented at a private dorm, not owned by the institution, it may still have been covered by the RLTO. However, city council amended the RLTO in early 2008 to turn the "and" into an "or" so that previously covered buildings became excluded from RLTO coverage. This amendment probably came at the desperate request of institutions like Roosevelt and DePaul Universities, as certain residence hall of theirs were being sued in class action lawsuits alleging violations of the RLTO. It is also important to mention that, even though a not-for-profit home for the elderly is not covered by the RLTO, if it has 25 or more units and is not "public housing," it may still be covered by the Illinois Security Deposit Interest Act and Security Deposit Return Act.
Hotels, Rooming Houses, Bed & Breakfasts
If you rent at a flophouse-type establishment, and pay rent daily or weekly, you are not protected by the RLTO until you've rented there more than 32 days in a row. Then, you might be covered if you start paying a monthly rent. The RLTO is unclear about what happens if you keep paying weekly or daily rent for more than 32 days, and never pay a "monthly rent." It is our opinion that renters at a hotel or boardinghouse with 25 or more units who give deposits and stay more than six months are protected by the Illinois Security Deposit Interest Act regardless of whether the RLTO applies or not.
Purchaser or Seller Pursuant to a Real Estate Purchase Contract Prior to the Transfer of Title
The definition of "real estate purchase contract" in this section is regrettably open to interpretation. Does this exclusion encompass to a rent-to-own situation? How about an option, or a right of first refusal? Unless there will be a transfer of title, for sure, according to the written terms of the contract, tenants renting to buy or holding other options can reasonably argue they do not have a "real estate purchase contract." Only the courts or City Council can resolve the ambiguity arising from this exclusion.
Employee of a Landlord Whose Right to Occupancy is Conditional Upon Employment At the Premises
Tenants who get an apartment because they work on or at the property are not protected by the RLTO. If you are the building super, the renter across the hall might be protected by the RLTO while you aren't. There are situations we have encountered where tenants have leases and pay rent, but their rent is discounted on account of work the tenant does at the building. Coverage of these arrangements by the RLTO is unknown. Those tenants may argue that their occupancy is not "conditional upon employment" because, if they just pay the higher rent amount, their employment doesn't matter. Only the courts or City Council can answer this.
III. Chicago's RLTO is More Than Just Security Deposit Law
If it applies, there is more to the Chicago Landlord Tenant Ordinance than just security deposit law. Chicago law also offers opportunities to break a lease, and recover damages for excessive late fees, annoying apartment showings, and retaliatory evictions, to name just a few common violations. Forcing a tenant to renew their lease more than 90 days before it expires, trying to enforce a lease provision requiring the tenant to pay the landlord's attorney fees, threats to lock a tenant out, failure to turn over possession at the beginning of the lease, and failure to disclose code citations against a building before the tenant signs a lease all can entitle a tenant to automatic damages even if the tenant suffered no actual harm. We have recovered substantial damage awards for Chicago renters who did not even give security deposits. Chicago apartment laws are more complicated than just paying interest and returning the security deposit within 45 days.
IV. Application of Tenants' Rights Law Outside Chicago in the Rest of Illinois
With few local exceptions, Apartment rentals in the rest of Illinois are governed only by the Illinois Security Deposit Interest Act and Illinois Security Deposit Return Act. These Acts are not as generous towards tenants as the local ordinances in Chicago, Evanston, Mount Prospect, Oak Park, DeKalb, and Urbana. DepositLaw has obtained very favorable results for tenants under the Evanston RLTO which is unique in the state because it requires security deposits be returned and accounted for within 21 days after a tenant moves out.
The Illinois Security Deposit Interest Act only applies to renters of landlords who own or manage properties with 25 or more units. The Illinois Security Deposit Return Act only applies to renters at buildings with five or more units.
The Illinois Security Deposit Interest Act requires that a tenant show their landlord "willfully failed" to pay interest as required by the Act, or refused. Proving a compensable violation under either of the Security Deposit Acts is more complicated than in Chicago. DepositLaw files many class action cases under these Acts against large downstate and Cook County suburban landlords of apartment complexes with hundreds of units.
Under the Illinois Security Deposit Return Act, the tenant is only entitled to penalty damages equal to two-times the amount the landlord withholds if "bad faith" or a refusal to provide a written statement supplemented by receipts is proven. This may not be easy. However, a tenant is entitled to return of their deposit in full if the landlord claims to have paid outside contractors or vendors to do work on the apartment but fails to provide the tenant with copies of paid receipts within 60 days after the tenant moved out. Even if this failure was not a refusal, or in bad faith, the deposit itself must be returned (without penalty damages or attorney fees for the tenant). If the tenant can show the failure was a refusal, then the penalty damages and attorney fees may be awarded. DepositLaw helps tenants draft letters to their landlords in order to prove "refusal."
When renting outside of Chicago, an Illinois tenant needs to understand that there may be no law governing their security deposit return except the provisions of their lease, or the common law of conversion.
Also, unlike in Chicago and Oak Park, there is likely no way a downstate Illinois tenant can legally get out of a long-term lease. Tenants cannot escape liability under their leases due to economic hardship, a job transfer, marital discord, or alleged "mold." A landlord can always accept a tenant's surrender and voluntarily release a tenant from their lease obligations, but make sure to get that in WRITING. If a tenant can really prove that habitability issues render the apartment or house totally uninhabitable, according to a competent government agency or licensed inspector, the tenant may be able to get out of a lease by claiming "constructive eviction." This is not easy though.
Renters outside Chicago in Illinois are protected by a watered-down version of the RLTO provisions allowing for rent-withholding when a tenant has to make repairs the landlord ought to. The Illinois Residential Tenants' Right to Repair Act does not let tenants break leases, but may allow them to withhold from rent up to $500 or half the monthly rent, whichever is less, for payments the tenant makes to contractors to fix problems that are the landlord's responsibility. But this is allowed only after the tenant has written the landlord a certified letter (return receipt) informing the landlord of the problems and giving the landlord at least 14 days to fix the problems themselves. Obviously the tenant cannot exercise this right if the tenant caused the damage.
The Illinois Safe Homes Act does also provide that a tenant may be able to avoid liability under the remainder of a lease if they moved out under a "credible imminent threat of domestic or sexual violence at the premises; and (2) the tenant gave written notice to the landlord prior to or within 3 days of vacating the premises that the reason for vacating the premises was because of a credible imminent threat of domestic or sexual violence against the tenant or a member of the tenant's household." What's a "credible imminent threat"? It's up to the judge or jury.
Finally, downstate renters have some protection against retaliatory evictions or refusals to renew leases under the Illinois Retaliatory Eviction Act. If a tenant has exercised their rights under state law or complained to a government agency about the landlord, or PROPERLY withheld rent under the Right to Repair Act, then the tenant may have a defense to eviction. This is only if the tenant is current on rent and not otherwise in breach of their lease.
ATTENTION: Because the Illinois General Assembly and the Illinois city councils may change, amend, or abolish the law without notice, the statutes provided here are not guaranteed to be an exact reproduction of the law at this time. The laws provided here are for informational purposes only and should not be relied upon before taking any action. Please consult an attorney.
This web site is intended to supply general information to the public. Although the information is generally accurate, it cannot be guaranteed. The nature of Legislation is that laws change quickly, and visitors should always insure that legal information is accurate before relying on it. The above information applies the law of the State of Illinois and City of Chicago. The law in your jurisdiction may be different. This information is necessarily brief and may or may not apply to your situation. In all cases, PLEASE, consult a lawyer before acting.
This web site is not intended to be advertising, solicitation, or legal advice. Thus, the reader should not consider this information to be an invitation for an attorney-client relationship, should not rely on information provided herein, and should always seek the advice of competent counsel in the reader's state.
-from http://www.depositlaw.com/ Mark Silverman Law Office, LTD
Wednesday, June 10, 2009
Window of Opportunity is Wide Open in the Real Estate Market
Experts across the nation all agree that home prices are becoming more attractive than they have been in recent history. Thanks to incredibly low interest rates, new accessibility to home loans, and a thriving market inventory, buyers and sellers are in a prime position to make the market work for them. As home prices begin to stabilize, buyers and sellers have good reason to look forward to the summer 2009 market.
Given the historically low interest rates, buyers are in a prime position to purchase their new home. If interest rates were to climb, even 1/4% over the next year, buyers would miss out on an additional $12,000 in savings over the life of a 30-year fixed loan. A savings like this is the equivalent of an FHA down payment on a $250,000 condo in the Chicago-area neighborhoods. With opportunities like these buyers can utilize their capital more effectively by creating greater long-term investments. Thanks to recent price adjustments we are urging our buyers to take advantage of these incredible opportunities.
Sellers can also benefit from the market's recent adjustments. As buyers gain access to home loans and low interest rates, many are eager to purchase their long awaited dream home. Thanks to the buyer's new purchasing power, sellers can look forward to the upcoming summer market. Sellers should experience shorter market times and expedited closing transactions.
With the summer market upon us, we at @properties are urging our buyers and sellers to take full advantage of this window of opportunity. Thanks to our innovative marketing techniques, and my expertise as a Real Estate consultant I am confident that I can suit all of your needs.
If you have any questions regarding market conditions, or want to set up an appointment feel free to contact me at anytime. I look forward to working with you.
(@properties June 2009 Newsletter)
Dave Straub @properties 773.255.3180
Given the historically low interest rates, buyers are in a prime position to purchase their new home. If interest rates were to climb, even 1/4% over the next year, buyers would miss out on an additional $12,000 in savings over the life of a 30-year fixed loan. A savings like this is the equivalent of an FHA down payment on a $250,000 condo in the Chicago-area neighborhoods. With opportunities like these buyers can utilize their capital more effectively by creating greater long-term investments. Thanks to recent price adjustments we are urging our buyers to take advantage of these incredible opportunities.
Sellers can also benefit from the market's recent adjustments. As buyers gain access to home loans and low interest rates, many are eager to purchase their long awaited dream home. Thanks to the buyer's new purchasing power, sellers can look forward to the upcoming summer market. Sellers should experience shorter market times and expedited closing transactions.
With the summer market upon us, we at @properties are urging our buyers and sellers to take full advantage of this window of opportunity. Thanks to our innovative marketing techniques, and my expertise as a Real Estate consultant I am confident that I can suit all of your needs.
If you have any questions regarding market conditions, or want to set up an appointment feel free to contact me at anytime. I look forward to working with you.
(@properties June 2009 Newsletter)
Dave Straub @properties 773.255.3180
Friday, April 24, 2009
A Spring Thaw Indeed!
A Spring Thaw Indeed!
Traditionally, Chicagoans could count on two springtime occurrences: an early April snowstorm and a ramp-up in real estate sales. The former came right on schedule this year, socking the Windy City with up to 5 inches of the fluffy white stuff. But the latter? Well, many Chicagoans weren't so sure. However a number of recent data points, including @properties' own sales figures, do indeed point to a spring thaw in the real estate market. And the news is as welcome as the season's first tulips peeking through the soil in Grant Park.
First comes word from the National Association of Realtors® that pending home sales rose 2.1 percent between January and February. The leading indicator is a sign that sales activity is due to pick up in the coming months. Contributing to this theory is another NAR report from late March that shows housing affordability at its highest level EVER. According to NAR, "The Housing Affordability Index shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970."
Yes, it is literally the best time to buy a home in 40 years.
At least that's the view from 30,000 feet. But what's happening on the ground? At @properties, we've been experiencing a steady increase in web traffic, showings and most importantly sales. In fact, sales have increased week by week throughout the spring, climbing from $14.8 million for the last week of February to $29.8 million for the last week of March.
In addition, first-time buyers seem to be warming up to the $8,000 federal tax credit, which requires that a home purchase be made within the next seven and a half months — by Nov. 30. According to the National Association of Home Builders, 1.5 million visitors logged onto the government web site (http://www.federalhousingtaxcredit.com) between February and March.
Yes, it's springtime in Chicago, and after a long, long winter, things are finally beginning to heat up. For more information about today's real estate market or any other questions on buying or selling a home, please contact me anytime.
(@properties April 2009 Newsletter)
Dave Straub 773.255.3180
Traditionally, Chicagoans could count on two springtime occurrences: an early April snowstorm and a ramp-up in real estate sales. The former came right on schedule this year, socking the Windy City with up to 5 inches of the fluffy white stuff. But the latter? Well, many Chicagoans weren't so sure. However a number of recent data points, including @properties' own sales figures, do indeed point to a spring thaw in the real estate market. And the news is as welcome as the season's first tulips peeking through the soil in Grant Park.
First comes word from the National Association of Realtors® that pending home sales rose 2.1 percent between January and February. The leading indicator is a sign that sales activity is due to pick up in the coming months. Contributing to this theory is another NAR report from late March that shows housing affordability at its highest level EVER. According to NAR, "The Housing Affordability Index shows that the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970."
Yes, it is literally the best time to buy a home in 40 years.
At least that's the view from 30,000 feet. But what's happening on the ground? At @properties, we've been experiencing a steady increase in web traffic, showings and most importantly sales. In fact, sales have increased week by week throughout the spring, climbing from $14.8 million for the last week of February to $29.8 million for the last week of March.
In addition, first-time buyers seem to be warming up to the $8,000 federal tax credit, which requires that a home purchase be made within the next seven and a half months — by Nov. 30. According to the National Association of Home Builders, 1.5 million visitors logged onto the government web site (http://www.federalhousingtaxcredit.com) between February and March.
Yes, it's springtime in Chicago, and after a long, long winter, things are finally beginning to heat up. For more information about today's real estate market or any other questions on buying or selling a home, please contact me anytime.
(@properties April 2009 Newsletter)
Dave Straub 773.255.3180
Saturday, March 21, 2009
Independence Keeps @properties on the Right Path
Independence Keeps @properties on the Right Path
Volatility begets change, so it should come as no surprise that there's a shakeout occurring in today's real estate brokerage industry. Over the past 15 months, Chicago brokerage has experienced a consolidation trend as a number of independent offices have been acquired by, or rolled into, bigger shops. Notable independents have left the marketplace.
@properties is well-positioned to take advantage of the inevitable market recovery. That's because our growth — while extraordinary in market share — has been controlled, non-leveraged and almost entirely organic. Our largest investments have been in technology, training and marketing programs that assure our clients the best service, greatest exposure and strongest representation in the marketplace. As a result, despite the challenging market, @properties increased its market share by 30 percent in 2008. In the city of Chicago, our '08 sales volume of $1.875 billion was second in the city only to a firm with three times as many agents. And for the third consecutive year, @properties was #1 among all major Chicago brokerage firms for shortest market time (68 days) and had one of the highest ratios of selling price to listing price.
Most importantly, we have maintained our independence. At @properties, we control our own destiny. Financially, we have the strength to weather the changes in the economy. And culturally, we continue to promote the values that attract great agents and great clients like you. So if you're getting ready to buy or sell, or you have questions about today's market, remember that the city's #1 independent real estate broker is not only here to help, we're also here to stay.
(@properties March 2009 Newsletter)
Dave Straub @properties 773.255.3180
Volatility begets change, so it should come as no surprise that there's a shakeout occurring in today's real estate brokerage industry. Over the past 15 months, Chicago brokerage has experienced a consolidation trend as a number of independent offices have been acquired by, or rolled into, bigger shops. Notable independents have left the marketplace.
@properties is well-positioned to take advantage of the inevitable market recovery. That's because our growth — while extraordinary in market share — has been controlled, non-leveraged and almost entirely organic. Our largest investments have been in technology, training and marketing programs that assure our clients the best service, greatest exposure and strongest representation in the marketplace. As a result, despite the challenging market, @properties increased its market share by 30 percent in 2008. In the city of Chicago, our '08 sales volume of $1.875 billion was second in the city only to a firm with three times as many agents. And for the third consecutive year, @properties was #1 among all major Chicago brokerage firms for shortest market time (68 days) and had one of the highest ratios of selling price to listing price.
Most importantly, we have maintained our independence. At @properties, we control our own destiny. Financially, we have the strength to weather the changes in the economy. And culturally, we continue to promote the values that attract great agents and great clients like you. So if you're getting ready to buy or sell, or you have questions about today's market, remember that the city's #1 independent real estate broker is not only here to help, we're also here to stay.
(@properties March 2009 Newsletter)
Dave Straub @properties 773.255.3180
Sunday, February 22, 2009
Reliable Property Management Available in Chicago!
Reliable Property Management, LLC has a simple and clear-cut mission: We use our experience and local market knowledge to best represent our client’s interests and to establish long-lasting relationships. We take over the responsibility of managing, maintaining and leasing properties, giving our clients the peace of mind to focus on their other business and personal priorities.
With over fifty years of combined real estate experience in the Chicago market, Reliable Property Management provides clients with the best combination of quality services, effective pricing, and reliability available.
Please visit our web site:
www.reliablemanager.com
Reliable Property Management, LLC
2106 West Belmont Avenue
Chicago, IL 60618
Telephone: 773-244-3200
Fax : 773-244-9999
For Leasing Services:
Dave Straub, @properties
773-255-3180
Reliable Property Management, a full-service property management company focused on residential and commercial properties in the City of Chicago. We manage condominium and homeowners associations, multi-unit rental buildings, investor properties, single-family homes, and small commercial properties. We also offer management services to developers and REO properties for banks and others. With a staff with a combined experience of more than fifty years, we provide the best combination of quality service, effective pricing - and reliability. More than in any other industry, property management and maintenance really comes down to good old-fashioned experience.
For an affordable monthly fee, we handle all aspects of the management and maintenance of your property, helping you retain and increase its value, and avoiding costly mistakes. We use our expertise to provide our clients with peace of mind about their valuable properties.
We offer a full range services, allowing you to pick and choose only those services that best suit your needs and budget, with no complicated package deals or charge for unneeded services. Please visit the “description of services provided” section in our website to learn more about the scope of our services. From the simplest to the most complex management or maintenance task, we are here to help you 24 hours a day, 7 days a week.
What is a Property Manager?
Ever ask yourself, what is a property manager, or what does a property manager do?
A Property Manager or a Property Management Company is responsible for taking charge of operating a rental property, or manage an HOA (Home Owners Association), when the property owner contracts with them to do so. Typical this includes finding and evicting tenants and generally dealing with day-to-day tenant issues, home repairs, home improvements, general clean up, snow removal and overall management of a property. A property manager may service home owners associations, commercial and residential properties.
These arrangements typically require the property manager to collect rents and pay necessary expenses and provide periodic reports to the property owner. A property manager may arrange for a wide variety of services to be performed, as requested by the owner of the property, for a fee.
Property management services may also include commercial rental properties or vacation rentals. The property manager has a primary responsibility to the property owner and a secondary responsibility to the tenant.
The relationships the property manager has with the rental property owner and with the tenant are crucial in forming the expectations of both parties to the lease since both parties will seek and expect certain rights and benefits. The property owners expectations from the Property Manager are to carry out the owners instructions, control costs and maximize revenue to maintain a stabilized cash flow as a return on investment. A property manager will exercise control over the property to safeguard the capital investment, provide a duty of care through proper maintenance of the building, to be professional and well informed and enhance the value of the property by making improvements that will increase its market value, retain and enhance pride of ownership.
The tenant’s expectations from Property Manager are to provide the "quiet enjoyment" assurance of the use and enjoyment of the premises for the intended purposes. They seek a comfortable living environment which is properly heated, cooled and ventilated with as many amenities as possible compatible with the rental level.
Are fees paid to a Property Management Company for managing my property tax deductible?
The answer is yes.
For those of you who are new to real estate investment, it is important to have a good understanding of the following tax deductions/tax write-offs associated with income producing rental properties.
All Operating Expenses incurred during the operation and maintenance of an income producing property is tax deductible. They include such things as property management fees, property taxes, repair costs, salary and wages, snow removal service, misc. supplies, telephone, trash removal, vehicle mileage expenses, utilities, accounting fees, advertising costs, legal fees, insurance premiums, janitorial service, lawn maintenance service, leasing commissions, license fees, office supplies and expenses, pest control, etc.
All Mortgage Interest paid on loans secured by income property is tax deductible
Closing Costs incurred for with the purchase of an income property such as title search fees, title insurance, appraisal fees, loan application fees and recording fees are deductible in the year of purchase.
Depreciation is the loss in value of an asset or building over time due to wear and tear, physical deterioration and age. The IRS allows you to depreciate income producing properties over their useful life which is determined by law.
Capital Improvements are subject to the same depreciation method as the building above. Capital improvements are things such as a new roof, new siding, new windows, and a new addition to a building, etc. Capital improvements to a residential income property are depreciated over a period of years.
The information contained on this page is not intended to be legal or professional tax advice, consult a professional tax advisor or the Internal Revenue Service for more information on allowable tax deductions.
How does a Property Management Company find and keep good tenants?
Many responsible tenants will only consider renting from a professional Property Management Company for a multitude of reasons. For example, a professional Property Management Company will have a website full of information about the available rental properties including photos, maps and pertinent information about the neighborhood. A professional Property Managers website will contain information about the local municipalities as well as the convenience of online forms such as necessary rental applications and contact phone numbers.
A professional property manager will adhere to State and Local laws and will offer the peace of mind in knowing they have a reliable maintenance team available on call 24/7.
A professional property manager will be available Monday through Friday to answer any questions or handle any problem that may arise as well as an afterhour’s emergency number or paging system to reach a maintenance technician for a maintenance emergency. An individual property owner managing their own rental property may not be able to answer emergency maintenance calls that come in and do so in a timely fashion.
A professional property management team will be set up to do background and credit checks on individuals filling out a rental application. They will also be set up to call on references to prior landlords and offer current employment verification. Allowing an unqualified tenant into a rental unit can only lead to delinquency and damages to the rental property.
What is a homeowners' association (HOA), a community association and a managed community?
Homeowners' Associations (HOA) are non profit committees that manage communities. An HOA is typically hired to oversee the maintenance of a community and enforcing their covenants, convictions, and restrictions, also referred to as CC&R, to help protect the appearance and safety of the neighborhood.
The CC&Rs are put into place to define how a property may be used. For example, a covenant may put a limit on the height of a fence or determine the allowable color schemes to be used when painting the exterior of a home. Although CC&Rs may be a pain for some home owners or renters living in an HOA, they are necessary to ensure a positive ambiance and curb appeal. There are also many benefits HOA members enjoy that they might not have been able to afford otherwise.
Part of being in an HOA includes paying assessment fees or association dues. These fees vary depending upon the square footage of the area and what kind of association it is. Because the assessments are paid by the community, HOAs are able to have well maintained landscapes, community pools, and in some cases, even community country clubs. On occasion, association dues provide for your home owners insurance premium as well. If you ask community members of an HOA, most would agree that the costs of the assessment fees are a reasonable price to pay for what you get in return.
Because HOAs must maintain multiple properties and a large area of landscape, many of them hire a property manager or property management company to oversee the operations, maintenance, and financial aspects of the community. The property manager or property Management Company is responsible for maintaining the community, finding tenants for the rental properties, and most of the time providing accounting services. The accounting proves to be very helpful to an HOA. When managing so many properties and allocating assessment fees into the community, accounting can be quite a daunting task to committee members. For more information on property management services please read our article.
How to Screen for Qualified Tenants
The problem with tenants who not have been properly pre-screened range from broken windows and stained carpets to damaged walls and late rent or worse yet, no rental payment, legal
expenses, and the list goes on and on.
Problem tenants are the leading cause of frustration and headache in the rental industry. Hundreds of property managers deal with bad tenants on a regular basis. This is why it is crucial that management companies take the appropriate steps to screen tenants, and when I say appropriate, I mean there are wrong ways to screen tenants as well.
It is VERY IMPORTANT that the property manager truly understands and follows Fair Housing Laws to avoid discriminating and being taken to court. A little time taken out to properly screen tenants could potentially save thousands of dollars of damage to your rental property. Lost income due to a delinquent tenant added to damage done to the property can be devastating to a rental property owner. Some property owners do not recover from these types of situations and end up in bankruptcy. Don't let this happen to you!
The first step is to have the prospective tenant fill out a rental application. The information gathered on a rental application should include the applicants employment history, monthly income, proof of identification (i.e. social security number, copy of driver's license, etc.), and references of previous landlords or employers to get a sense of character.
It is very important to check references. Just because they are on paper, doesn't mean they are legitimate references. Many management companies request references but never check them! With your rental application you should include a written code of conduct. The code of conduct should clearly detail the roles of both the tenant and the management company. This code could protect you in court, so it is very important to include this.
It is also very important to obtain a copy of the applicant's credit report. In order to obtain this information, the manager must first get permission from the applicant. If you do not have permission, do not run the credit report. The following information must also be gathered: Tenant's name, address, and Social Security number. Get their approval to run the credit report right on the application by having them sign a statement authorizing you to do so.
The next step is to find a credit report agency. If the information obtained by the credit report is not to your standards and you decide to decline their application, you must send an adverse action letter. Remember, even if the tenant asks you for a copy of their credit report, it is illegal to give it to them. By sending them the adverse action letter explaining the reason for the rejection, they can obtain a copy of their credit report through the agency from which you obtained it.
Whenever possible, meet your applicants in person. This will give you a better idea of what the person is like and how they might treat your property. Do they try to make a good first impression? Do they come off as well educated? This will also give you the opportunity to start a good tenant relationship right off the bat.
Renting your property to just anyone could cost you some serious time and money. It is not uncommon to see a property rented to bad tenants due to improper background checks or application processes. Follow these steps and you will protect yourself from court, property damages, and the headache of dealing with delinquent tenants.
Q & A about Fair Housing Laws. What is illegal to ask of a prospective tenant?
The purpose of the Fair Housing Laws are to protect a person’s right to own, sell, purchase, or rent housing of his or her choice without fear of unlawful discrimination. The Fair Housing Laws are intended to allow everyone equal access to housing.
State and Federal Fair Housing laws prohibit discrimination in the housing market on the basis of race, color, sex, religion, national origin, handicap, or familial status. To discriminate against a person on the basis of his or her membership in one of these protected categories is against the law.
Question: Do the Fair Housing Laws apply to all housing transactions?
Answer: Yes, except for the following limited exemptions:
The rental of a unit in a multi-family dwelling with not more than four units where the owner (or a member of the owner's family) lives in one of the units
The rental of a room or rooms in a private house where the owner (or a member of the owner's family) lives in the house
Lodging owned or operated by private clubs which give preference to their members
Religious, charitable, or educational institutions or organizations which are operated, supervised, or controlled by religious institutions or organizations that give preference in real estate transactions to their members, provided the organization does not exclude members of a protected category
Single-sex dormitories
Discriminatory Practices and Fair Housing Laws
Question: What are some common unlawful acts of discrimination?
Answer: Refusing to sell, rent or negotiate - It is against the law to take any of the following actions because a person is a member of one of the protected categories:
To refuse to engage in a real estate transaction
To refuse to rent or sell housing
To discriminate in terms, conditions, or privileges for the sale or rental of housing
To refuse to receive or fail to transmit a bona fide offer to engage in a real estate transaction
To indicate that housing is not available when it actually is available
To discriminate by providing different facilities or services
To refuse to negotiate for housing
Steering - Discouraging a person from seeking housing in a particular community, neighborhood, or development because the person is or is not a member of a protected category. For example, a real estate agent shows a black person housing in predominately black neighborhoods and a white person housing in predominately white neighborhoods.
Interference, coercion, or intimidation - Trying to limit the benefits of renting or buying housing in an area because the person is a member of one of the protected categories. This includes trying to coerce, threaten, intimidate, retaliate against, or interfere in any way with the use and enjoyment of housing.
Discriminatory advertising - Advertising or making any statement which indicates directly or indirectly intent to make a limitation, specification, or to discriminate with respect to members of one of the protected categories.
Blockbusting - (also referred to as panic peddling) - Trying, in a direct or subtle way, to scare a person into moving out of a neighborhood by representing that a person from one of the protected categories is considering or is in fact moving into the neighborhood. For example, stating that the neighborhood would decline or that the crime rate would increase if members of a protected category moved into the neighborhood would be unlawful.
Redlining - Being denied or subjected to stricter conditions in applying for a loan on property in a particular area because of the racial composition of the area, including loans to purchase, construct, improve, repair, or maintain housing.
Question: Can a person other than the seller or landlord be guilty of violating the Fair Housing Laws?
Answer: Yes. Anyone involved in the real estate transaction that discriminates based on a protected category has violated the fair housing laws. For example, a local banker informs a real estate agent that if the agent allows anyone else with kids to move into the neighborhood, the bank will not do business with the agent or the agent's customers.
Question: Does an owner have to rent or sell to a person just because he or she is in a protected category?
Answer: No. Owners may rent or sell to whomever they choose as long as their decisions are not based on the fact that a would-be tenant or buyer is a member of a protected category. If someone is from a protected category becomes a tenant, the owner may hold that tenant to the same standard of performance and behavior as everyone else.
Question: Can landlords protect themselves from complaints of discrimination when they reject someone from a protected category?
Answer: Yes. A landlord should have detailed standards for deciding who is acceptable as a tenant and who is not. However, these standards may not be based upon a prospective tenant's membership in a protected category. Such standards are particularly important in decisions to reject a tenant applicant because of poor credit, and to place would-be tenants on a "waiting list." The landlord should then apply these standards equally to every tenant applicant. If a waiting list is used, the landlord must make sure that every applicant who is told that his or her name will be placed on the list is indeed put there and that, as an applicant's name comes up; the applicant is notified of this fact.
What are the advantages of a 1031 exchange?
A 1031 exchange provides real estate owners with a range of opportunities to meet personal investment objectives including increased leverage, diversification, improved cash flow, reduction of management obligations, geographic relocation and/or consolidation. The tax dollars saved by an exchange may be maximized to increase an investor's overall net worth. Ultimately, the exchange process allows investors to reorganize and improve their real estate portfolios to best suit their unique interests and needs.
Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 Exchanges do not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property
Properties are of like kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States is not like-kind properties.
Real properties generally are of like kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Why should I hire a property manager to manage my rental properties?
Managing a rental property can be a full time job. You must be available 24 hours a day, 7 days a week to respond to tenant’s needs and emergencies. You're also responsible for collecting rent, managing maintenance of the property and finding new tenants when old tenants decide to vacate. This can turn into a lot of work especially if you own more than one property.
An experienced property management company can help take the guesswork out of maintaining your properties. Many property management companies have an experienced network of professionals such as plumbers, electricians, and marketing professionals to keep your property not only in good condition but rented out and making you money.
Many first time rental property owners feel they can manage their rental property on their own. In some cases that works out just fine. However, with the rules, regulations and laws put in place by local and state governments, often leaves a self-managing investment owner with problems they are unable to handle. These problems could be detrimental to your bottom line.
By placing unqualified tenants in rental properties without the proper tenant pre-screening can not only result in property damage and lost income but can also create issuance of covenant violations with Home Owners Associations.
How would you handle emergency maintenance issues at 2:00 a.m. on Thanksgiving Day, or when you're on vacation or worse yet, out of the country? Maintenance issues on rental properties such as sewer back-ups, water heater issues or furnace failures in the dead of winter can be extremely overwhelming when you don't have qualified repairman ready and willing to attend.
Routine inspections of your rental property, followed up with pro-active maintenance programs, are necessary to ensure that you capture the highest rental rate, home-proud tenants, and compete in the competitive rental property market.
What is a homeowners' association (HOA), a community association and a managed community?
Homeowners' Associations (HOA) are non profit committees that manage communities. An HOA is typically hired to oversee the maintenance of a community and enforcing their covenants, convictions, and restrictions, also referred to as CC&R, to help protect the appearance and safety of the neighborhood.
The CC&Rs are put into place to define how a property may be used. For example, a covenant may put a limit on the height of a fence or determine the allowable color schemes to be used when painting the exterior of a home. Although CC&Rs may be a pain for some home owners or renters living in an HOA, they are necessary to ensure a positive ambiance and curb appeal. There are also many benefits HOA members enjoy that they might not have been able to afford otherwise.
Part of being in an HOA includes paying assessment fees or association dues. These fees vary depending upon the square footage of the area and what kind of association it is. Because the assessments are paid by the community, HOAs are able to have well maintained landscapes, community pools, and in some cases, even community country clubs. On occasion, association dues provide for your home owners insurance premium as well. If you ask community members of an HOA, most would agree that the costs of the assessment fees are a reasonable price to pay for what you get in return.
Because HOAs must maintain multiple properties and a large area of landscape, many of them hire a property manager or property management company to oversee the operations, maintenance, and financial aspects of the community. The property manager or property Management Company is responsible for maintaining the community, finding tenants for the rental properties, and most of the time providing accounting services. The accounting proves to be very helpful to an HOA. When managing so many properties and allocating assessment fees into the community, accounting can be quite a daunting task to committee members. For more information on property management services please read our articles.
What is renters insurance and why is it so important?
Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord's insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.
By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.
There are two types of renter’s insurance policies you may purchase:
Actual Cash Value - pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
Replacement Cost - pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing a floater. A standard renter’s policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
Information provided by the
Insurance Information Institute.
What is Sustainable living and how do I reduce my carbon footprint?
If the polar ice caps melted and all life on Planet Earth ceased to exist, could you honestly say that you did everything in your power to prevent global warming? It is not certain that global warming will reach this extreme. It is certain however, that our modern day lifestyles are contributing to the Planet's climate change. The environment is an increasingly controversial topic nowadays. It's sad to say, America is the number one polluter and biggest contributor to global warming. We emit more fossil fuels into the atmosphere than any other country in the world!
Going "green" has never been more important for Americans, considering how far behind we are and how little time we have before global warming could turn into a serious problem.
The question is, where do we start? The answer is sustainable living. Changing the little things around the house of everyday use can drastically reduce our impact on the environment. According to an article by McKinsey & Company "Curbing Global Energy Demand Growth", the residential sector is the single largest energy consumer worldwide, accounting for 25% of the global demand.
As property owners, landlords and property managers, it is our responsibility to make sure our rental properties are environmentally friendly and encourage sustainable living. Here are a few ways to not only help save on energy bills, but increase the value of your property, attract and retain tenants, and progress in the fight against global warming for years to come.
Insulate your home. The University of Harvard did a study that showed there are over 46 million under insulated homes in the United States. Heating and cooling consumes the most energy in residential properties. A poorly insulated home could cost up to 34% more in heating expenses. How do you know if your property is under insulated? The best way to find out is to hire a licensed inspector to complete an energy audit. They can tell you if your home needs more insulation and where the most energy is being lost. Insulation is a cheap, easy, and efficient way to save money and reduce energy consumption.
Use fluorescent lighting. Incandescent light bulbs are slowly becoming a thing of the past. Compact fluorescent light bulbs last ten times longer and consume two thirds less energy than a normal incandescent light bulb. So how much of an impact could change a light bulbs actually have? According to the U.S. Environmental Protection Agency, if every American changed five light bulbs in their home to a fluorescent light, it would make an incredible difference. Each household would save up to $60 a year and keep about one trillion pounds of greenhouse gases out of the air!
Apply weather stripping to doors and windows. Leaky windows and doors have the same effect as a poorly insulated home. When energy escapes, the home is more expensive to heat or cool. By simply applying weather strips, you will trap more energy in the home making it less expensive and more comfortable for living.
However insignificant these three things may seem, they really add up over the long run. The value of your property will go up, tenants will be more satisfied, and you will be doing your part in putting a stop to greenhouse gas emissions and encourage sustainable living.
Please visit our web site:
www.reliablemanager.com
Reliable Property Management, LLC
2106 West Belmont Avenue
Chicago, IL 60618
Telephone: 773-244-3200
Fax : 773-244-9999
With over fifty years of combined real estate experience in the Chicago market, Reliable Property Management provides clients with the best combination of quality services, effective pricing, and reliability available.
Please visit our web site:
www.reliablemanager.com
Reliable Property Management, LLC
2106 West Belmont Avenue
Chicago, IL 60618
Telephone: 773-244-3200
Fax : 773-244-9999
For Leasing Services:
Dave Straub, @properties
773-255-3180
Reliable Property Management, a full-service property management company focused on residential and commercial properties in the City of Chicago. We manage condominium and homeowners associations, multi-unit rental buildings, investor properties, single-family homes, and small commercial properties. We also offer management services to developers and REO properties for banks and others. With a staff with a combined experience of more than fifty years, we provide the best combination of quality service, effective pricing - and reliability. More than in any other industry, property management and maintenance really comes down to good old-fashioned experience.
For an affordable monthly fee, we handle all aspects of the management and maintenance of your property, helping you retain and increase its value, and avoiding costly mistakes. We use our expertise to provide our clients with peace of mind about their valuable properties.
We offer a full range services, allowing you to pick and choose only those services that best suit your needs and budget, with no complicated package deals or charge for unneeded services. Please visit the “description of services provided” section in our website to learn more about the scope of our services. From the simplest to the most complex management or maintenance task, we are here to help you 24 hours a day, 7 days a week.
What is a Property Manager?
Ever ask yourself, what is a property manager, or what does a property manager do?
A Property Manager or a Property Management Company is responsible for taking charge of operating a rental property, or manage an HOA (Home Owners Association), when the property owner contracts with them to do so. Typical this includes finding and evicting tenants and generally dealing with day-to-day tenant issues, home repairs, home improvements, general clean up, snow removal and overall management of a property. A property manager may service home owners associations, commercial and residential properties.
These arrangements typically require the property manager to collect rents and pay necessary expenses and provide periodic reports to the property owner. A property manager may arrange for a wide variety of services to be performed, as requested by the owner of the property, for a fee.
Property management services may also include commercial rental properties or vacation rentals. The property manager has a primary responsibility to the property owner and a secondary responsibility to the tenant.
The relationships the property manager has with the rental property owner and with the tenant are crucial in forming the expectations of both parties to the lease since both parties will seek and expect certain rights and benefits. The property owners expectations from the Property Manager are to carry out the owners instructions, control costs and maximize revenue to maintain a stabilized cash flow as a return on investment. A property manager will exercise control over the property to safeguard the capital investment, provide a duty of care through proper maintenance of the building, to be professional and well informed and enhance the value of the property by making improvements that will increase its market value, retain and enhance pride of ownership.
The tenant’s expectations from Property Manager are to provide the "quiet enjoyment" assurance of the use and enjoyment of the premises for the intended purposes. They seek a comfortable living environment which is properly heated, cooled and ventilated with as many amenities as possible compatible with the rental level.
Are fees paid to a Property Management Company for managing my property tax deductible?
The answer is yes.
For those of you who are new to real estate investment, it is important to have a good understanding of the following tax deductions/tax write-offs associated with income producing rental properties.
All Operating Expenses incurred during the operation and maintenance of an income producing property is tax deductible. They include such things as property management fees, property taxes, repair costs, salary and wages, snow removal service, misc. supplies, telephone, trash removal, vehicle mileage expenses, utilities, accounting fees, advertising costs, legal fees, insurance premiums, janitorial service, lawn maintenance service, leasing commissions, license fees, office supplies and expenses, pest control, etc.
All Mortgage Interest paid on loans secured by income property is tax deductible
Closing Costs incurred for with the purchase of an income property such as title search fees, title insurance, appraisal fees, loan application fees and recording fees are deductible in the year of purchase.
Depreciation is the loss in value of an asset or building over time due to wear and tear, physical deterioration and age. The IRS allows you to depreciate income producing properties over their useful life which is determined by law.
Capital Improvements are subject to the same depreciation method as the building above. Capital improvements are things such as a new roof, new siding, new windows, and a new addition to a building, etc. Capital improvements to a residential income property are depreciated over a period of years.
The information contained on this page is not intended to be legal or professional tax advice, consult a professional tax advisor or the Internal Revenue Service for more information on allowable tax deductions.
How does a Property Management Company find and keep good tenants?
Many responsible tenants will only consider renting from a professional Property Management Company for a multitude of reasons. For example, a professional Property Management Company will have a website full of information about the available rental properties including photos, maps and pertinent information about the neighborhood. A professional Property Managers website will contain information about the local municipalities as well as the convenience of online forms such as necessary rental applications and contact phone numbers.
A professional property manager will adhere to State and Local laws and will offer the peace of mind in knowing they have a reliable maintenance team available on call 24/7.
A professional property manager will be available Monday through Friday to answer any questions or handle any problem that may arise as well as an afterhour’s emergency number or paging system to reach a maintenance technician for a maintenance emergency. An individual property owner managing their own rental property may not be able to answer emergency maintenance calls that come in and do so in a timely fashion.
A professional property management team will be set up to do background and credit checks on individuals filling out a rental application. They will also be set up to call on references to prior landlords and offer current employment verification. Allowing an unqualified tenant into a rental unit can only lead to delinquency and damages to the rental property.
What is a homeowners' association (HOA), a community association and a managed community?
Homeowners' Associations (HOA) are non profit committees that manage communities. An HOA is typically hired to oversee the maintenance of a community and enforcing their covenants, convictions, and restrictions, also referred to as CC&R, to help protect the appearance and safety of the neighborhood.
The CC&Rs are put into place to define how a property may be used. For example, a covenant may put a limit on the height of a fence or determine the allowable color schemes to be used when painting the exterior of a home. Although CC&Rs may be a pain for some home owners or renters living in an HOA, they are necessary to ensure a positive ambiance and curb appeal. There are also many benefits HOA members enjoy that they might not have been able to afford otherwise.
Part of being in an HOA includes paying assessment fees or association dues. These fees vary depending upon the square footage of the area and what kind of association it is. Because the assessments are paid by the community, HOAs are able to have well maintained landscapes, community pools, and in some cases, even community country clubs. On occasion, association dues provide for your home owners insurance premium as well. If you ask community members of an HOA, most would agree that the costs of the assessment fees are a reasonable price to pay for what you get in return.
Because HOAs must maintain multiple properties and a large area of landscape, many of them hire a property manager or property management company to oversee the operations, maintenance, and financial aspects of the community. The property manager or property Management Company is responsible for maintaining the community, finding tenants for the rental properties, and most of the time providing accounting services. The accounting proves to be very helpful to an HOA. When managing so many properties and allocating assessment fees into the community, accounting can be quite a daunting task to committee members. For more information on property management services please read our article.
How to Screen for Qualified Tenants
The problem with tenants who not have been properly pre-screened range from broken windows and stained carpets to damaged walls and late rent or worse yet, no rental payment, legal
expenses, and the list goes on and on.
Problem tenants are the leading cause of frustration and headache in the rental industry. Hundreds of property managers deal with bad tenants on a regular basis. This is why it is crucial that management companies take the appropriate steps to screen tenants, and when I say appropriate, I mean there are wrong ways to screen tenants as well.
It is VERY IMPORTANT that the property manager truly understands and follows Fair Housing Laws to avoid discriminating and being taken to court. A little time taken out to properly screen tenants could potentially save thousands of dollars of damage to your rental property. Lost income due to a delinquent tenant added to damage done to the property can be devastating to a rental property owner. Some property owners do not recover from these types of situations and end up in bankruptcy. Don't let this happen to you!
The first step is to have the prospective tenant fill out a rental application. The information gathered on a rental application should include the applicants employment history, monthly income, proof of identification (i.e. social security number, copy of driver's license, etc.), and references of previous landlords or employers to get a sense of character.
It is very important to check references. Just because they are on paper, doesn't mean they are legitimate references. Many management companies request references but never check them! With your rental application you should include a written code of conduct. The code of conduct should clearly detail the roles of both the tenant and the management company. This code could protect you in court, so it is very important to include this.
It is also very important to obtain a copy of the applicant's credit report. In order to obtain this information, the manager must first get permission from the applicant. If you do not have permission, do not run the credit report. The following information must also be gathered: Tenant's name, address, and Social Security number. Get their approval to run the credit report right on the application by having them sign a statement authorizing you to do so.
The next step is to find a credit report agency. If the information obtained by the credit report is not to your standards and you decide to decline their application, you must send an adverse action letter. Remember, even if the tenant asks you for a copy of their credit report, it is illegal to give it to them. By sending them the adverse action letter explaining the reason for the rejection, they can obtain a copy of their credit report through the agency from which you obtained it.
Whenever possible, meet your applicants in person. This will give you a better idea of what the person is like and how they might treat your property. Do they try to make a good first impression? Do they come off as well educated? This will also give you the opportunity to start a good tenant relationship right off the bat.
Renting your property to just anyone could cost you some serious time and money. It is not uncommon to see a property rented to bad tenants due to improper background checks or application processes. Follow these steps and you will protect yourself from court, property damages, and the headache of dealing with delinquent tenants.
Q & A about Fair Housing Laws. What is illegal to ask of a prospective tenant?
The purpose of the Fair Housing Laws are to protect a person’s right to own, sell, purchase, or rent housing of his or her choice without fear of unlawful discrimination. The Fair Housing Laws are intended to allow everyone equal access to housing.
State and Federal Fair Housing laws prohibit discrimination in the housing market on the basis of race, color, sex, religion, national origin, handicap, or familial status. To discriminate against a person on the basis of his or her membership in one of these protected categories is against the law.
Question: Do the Fair Housing Laws apply to all housing transactions?
Answer: Yes, except for the following limited exemptions:
The rental of a unit in a multi-family dwelling with not more than four units where the owner (or a member of the owner's family) lives in one of the units
The rental of a room or rooms in a private house where the owner (or a member of the owner's family) lives in the house
Lodging owned or operated by private clubs which give preference to their members
Religious, charitable, or educational institutions or organizations which are operated, supervised, or controlled by religious institutions or organizations that give preference in real estate transactions to their members, provided the organization does not exclude members of a protected category
Single-sex dormitories
Discriminatory Practices and Fair Housing Laws
Question: What are some common unlawful acts of discrimination?
Answer: Refusing to sell, rent or negotiate - It is against the law to take any of the following actions because a person is a member of one of the protected categories:
To refuse to engage in a real estate transaction
To refuse to rent or sell housing
To discriminate in terms, conditions, or privileges for the sale or rental of housing
To refuse to receive or fail to transmit a bona fide offer to engage in a real estate transaction
To indicate that housing is not available when it actually is available
To discriminate by providing different facilities or services
To refuse to negotiate for housing
Steering - Discouraging a person from seeking housing in a particular community, neighborhood, or development because the person is or is not a member of a protected category. For example, a real estate agent shows a black person housing in predominately black neighborhoods and a white person housing in predominately white neighborhoods.
Interference, coercion, or intimidation - Trying to limit the benefits of renting or buying housing in an area because the person is a member of one of the protected categories. This includes trying to coerce, threaten, intimidate, retaliate against, or interfere in any way with the use and enjoyment of housing.
Discriminatory advertising - Advertising or making any statement which indicates directly or indirectly intent to make a limitation, specification, or to discriminate with respect to members of one of the protected categories.
Blockbusting - (also referred to as panic peddling) - Trying, in a direct or subtle way, to scare a person into moving out of a neighborhood by representing that a person from one of the protected categories is considering or is in fact moving into the neighborhood. For example, stating that the neighborhood would decline or that the crime rate would increase if members of a protected category moved into the neighborhood would be unlawful.
Redlining - Being denied or subjected to stricter conditions in applying for a loan on property in a particular area because of the racial composition of the area, including loans to purchase, construct, improve, repair, or maintain housing.
Question: Can a person other than the seller or landlord be guilty of violating the Fair Housing Laws?
Answer: Yes. Anyone involved in the real estate transaction that discriminates based on a protected category has violated the fair housing laws. For example, a local banker informs a real estate agent that if the agent allows anyone else with kids to move into the neighborhood, the bank will not do business with the agent or the agent's customers.
Question: Does an owner have to rent or sell to a person just because he or she is in a protected category?
Answer: No. Owners may rent or sell to whomever they choose as long as their decisions are not based on the fact that a would-be tenant or buyer is a member of a protected category. If someone is from a protected category becomes a tenant, the owner may hold that tenant to the same standard of performance and behavior as everyone else.
Question: Can landlords protect themselves from complaints of discrimination when they reject someone from a protected category?
Answer: Yes. A landlord should have detailed standards for deciding who is acceptable as a tenant and who is not. However, these standards may not be based upon a prospective tenant's membership in a protected category. Such standards are particularly important in decisions to reject a tenant applicant because of poor credit, and to place would-be tenants on a "waiting list." The landlord should then apply these standards equally to every tenant applicant. If a waiting list is used, the landlord must make sure that every applicant who is told that his or her name will be placed on the list is indeed put there and that, as an applicant's name comes up; the applicant is notified of this fact.
What are the advantages of a 1031 exchange?
A 1031 exchange provides real estate owners with a range of opportunities to meet personal investment objectives including increased leverage, diversification, improved cash flow, reduction of management obligations, geographic relocation and/or consolidation. The tax dollars saved by an exchange may be maximized to increase an investor's overall net worth. Ultimately, the exchange process allows investors to reorganize and improve their real estate portfolios to best suit their unique interests and needs.
Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 Exchanges do not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property
Properties are of like kind if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States is not like-kind properties.
Real properties generally are of like kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
Why should I hire a property manager to manage my rental properties?
Managing a rental property can be a full time job. You must be available 24 hours a day, 7 days a week to respond to tenant’s needs and emergencies. You're also responsible for collecting rent, managing maintenance of the property and finding new tenants when old tenants decide to vacate. This can turn into a lot of work especially if you own more than one property.
An experienced property management company can help take the guesswork out of maintaining your properties. Many property management companies have an experienced network of professionals such as plumbers, electricians, and marketing professionals to keep your property not only in good condition but rented out and making you money.
Many first time rental property owners feel they can manage their rental property on their own. In some cases that works out just fine. However, with the rules, regulations and laws put in place by local and state governments, often leaves a self-managing investment owner with problems they are unable to handle. These problems could be detrimental to your bottom line.
By placing unqualified tenants in rental properties without the proper tenant pre-screening can not only result in property damage and lost income but can also create issuance of covenant violations with Home Owners Associations.
How would you handle emergency maintenance issues at 2:00 a.m. on Thanksgiving Day, or when you're on vacation or worse yet, out of the country? Maintenance issues on rental properties such as sewer back-ups, water heater issues or furnace failures in the dead of winter can be extremely overwhelming when you don't have qualified repairman ready and willing to attend.
Routine inspections of your rental property, followed up with pro-active maintenance programs, are necessary to ensure that you capture the highest rental rate, home-proud tenants, and compete in the competitive rental property market.
What is a homeowners' association (HOA), a community association and a managed community?
Homeowners' Associations (HOA) are non profit committees that manage communities. An HOA is typically hired to oversee the maintenance of a community and enforcing their covenants, convictions, and restrictions, also referred to as CC&R, to help protect the appearance and safety of the neighborhood.
The CC&Rs are put into place to define how a property may be used. For example, a covenant may put a limit on the height of a fence or determine the allowable color schemes to be used when painting the exterior of a home. Although CC&Rs may be a pain for some home owners or renters living in an HOA, they are necessary to ensure a positive ambiance and curb appeal. There are also many benefits HOA members enjoy that they might not have been able to afford otherwise.
Part of being in an HOA includes paying assessment fees or association dues. These fees vary depending upon the square footage of the area and what kind of association it is. Because the assessments are paid by the community, HOAs are able to have well maintained landscapes, community pools, and in some cases, even community country clubs. On occasion, association dues provide for your home owners insurance premium as well. If you ask community members of an HOA, most would agree that the costs of the assessment fees are a reasonable price to pay for what you get in return.
Because HOAs must maintain multiple properties and a large area of landscape, many of them hire a property manager or property management company to oversee the operations, maintenance, and financial aspects of the community. The property manager or property Management Company is responsible for maintaining the community, finding tenants for the rental properties, and most of the time providing accounting services. The accounting proves to be very helpful to an HOA. When managing so many properties and allocating assessment fees into the community, accounting can be quite a daunting task to committee members. For more information on property management services please read our articles.
What is renters insurance and why is it so important?
Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord's insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.
By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.
There are two types of renter’s insurance policies you may purchase:
Actual Cash Value - pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
Replacement Cost - pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy
With either policy, you may want to consider purchasing a floater. A standard renter’s policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.
Information provided by the
Insurance Information Institute.
What is Sustainable living and how do I reduce my carbon footprint?
If the polar ice caps melted and all life on Planet Earth ceased to exist, could you honestly say that you did everything in your power to prevent global warming? It is not certain that global warming will reach this extreme. It is certain however, that our modern day lifestyles are contributing to the Planet's climate change. The environment is an increasingly controversial topic nowadays. It's sad to say, America is the number one polluter and biggest contributor to global warming. We emit more fossil fuels into the atmosphere than any other country in the world!
Going "green" has never been more important for Americans, considering how far behind we are and how little time we have before global warming could turn into a serious problem.
The question is, where do we start? The answer is sustainable living. Changing the little things around the house of everyday use can drastically reduce our impact on the environment. According to an article by McKinsey & Company "Curbing Global Energy Demand Growth", the residential sector is the single largest energy consumer worldwide, accounting for 25% of the global demand.
As property owners, landlords and property managers, it is our responsibility to make sure our rental properties are environmentally friendly and encourage sustainable living. Here are a few ways to not only help save on energy bills, but increase the value of your property, attract and retain tenants, and progress in the fight against global warming for years to come.
Insulate your home. The University of Harvard did a study that showed there are over 46 million under insulated homes in the United States. Heating and cooling consumes the most energy in residential properties. A poorly insulated home could cost up to 34% more in heating expenses. How do you know if your property is under insulated? The best way to find out is to hire a licensed inspector to complete an energy audit. They can tell you if your home needs more insulation and where the most energy is being lost. Insulation is a cheap, easy, and efficient way to save money and reduce energy consumption.
Use fluorescent lighting. Incandescent light bulbs are slowly becoming a thing of the past. Compact fluorescent light bulbs last ten times longer and consume two thirds less energy than a normal incandescent light bulb. So how much of an impact could change a light bulbs actually have? According to the U.S. Environmental Protection Agency, if every American changed five light bulbs in their home to a fluorescent light, it would make an incredible difference. Each household would save up to $60 a year and keep about one trillion pounds of greenhouse gases out of the air!
Apply weather stripping to doors and windows. Leaky windows and doors have the same effect as a poorly insulated home. When energy escapes, the home is more expensive to heat or cool. By simply applying weather strips, you will trap more energy in the home making it less expensive and more comfortable for living.
However insignificant these three things may seem, they really add up over the long run. The value of your property will go up, tenants will be more satisfied, and you will be doing your part in putting a stop to greenhouse gas emissions and encourage sustainable living.
Please visit our web site:
www.reliablemanager.com
Reliable Property Management, LLC
2106 West Belmont Avenue
Chicago, IL 60618
Telephone: 773-244-3200
Fax : 773-244-9999
Thursday, January 15, 2009
Mortgage Rates Have Plummeted!
Mortgage Rates Have Plummeted! After the rate cuts by the Federal Reserve over the last few months, buyers can now lock in a 30-year mortgage rate with a 10% down payment (on a conventional loan) with an interest rate at approximately 5% for 30 years. This is an unprecedented event and offers what might be the opportunity of a lifetime. A buyer today can obtain real estate with affordable monthly payments and a historically low fixed interest rate. While it is January, and early in the year for the traditional "Spring selling season," we would advise anyone thinking of buying or selling real estate to consider this incredible opportunity in the current marketplace.
We have all been looking for hope with the economy and we feel we have been given a belated holiday present, but it is your choice to unwrap it! Please take the time to contact me if you are considering a move; there are many options open to buyers. And if you are considering selling, please contact me to discuss the best way to position your property to take advantage of this historical situation. This moment in time will not last — please take advantage of it.
-Dave Straub @properties 773.255.3180
(@properties January 2009 Newsletter)
We have all been looking for hope with the economy and we feel we have been given a belated holiday present, but it is your choice to unwrap it! Please take the time to contact me if you are considering a move; there are many options open to buyers. And if you are considering selling, please contact me to discuss the best way to position your property to take advantage of this historical situation. This moment in time will not last — please take advantage of it.
-Dave Straub @properties 773.255.3180
(@properties January 2009 Newsletter)
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