Market Update From Empire

      The rental market is smoking hot right now. Here at Empire we have been watching and managing property for nearly 17 years and have not seen the market more competitive. This has been good for landlords who have been struggling with the low rents and higher vacancy rates that the 2008 depression gave us, but not good for new landlords entering the market and certainly not good for tenants who are struggling to make ends meet.Currently, we seem to be at the top of the boom cycle as the amount tenants can pay has pressured the market down a bit.
       A boom bust cycle is dangerous place for investors. If you timing is right investors can do well. However, many are caught at the wrong time with assets that turn toxic. The solution is simple, but it is impossible to buy votes with a simple solution. In the end landlords are left with the passage of laws that complicate business. Do not worry about the management side. Empire has you covered. We are on top of all the latest laws from Salem.

 Ed Waggoner - Lead Manager at Empire

Pink Flamingos- The Thin Line Between Tacky and Tasteful

Pink Flamingos

 The Thin Line Between Tacky and Tasteful

The rental market is full of strange and varying creatures called people. If you are a landlord these people are your customers. That means we must try to design and color your rental property to appeal to the largest slice of your customer base. With such varying tastes the goal is to appeal to most without offending any. How is this to be done without being boring?

• Curb Appeal-  In this digital age prospective tenants will see your ad online and then drive by before contacting you. If the paint and front of the home are not  fresh and pretty then your home gets crossed off the list. You want colors that attract all and do not offend anyone. There is no secret ingredient or magic color scheme (Sorry- Wish I knew it). Getting creative can be risky. I once picked colors at the paint store, left for the weekend and came back to a purple house. My limitations were then realized and I now rely on copying other color schemes that work. Your best judgment will be needed here to attract attention without being tacky. 
•  Landscaping- The landscaping needs to be tight and tidy. No overgrown bushes and obvious work to be done. This is time consuming but well worth the trouble. A low maintenance yard shows well and will reduce friction between you and your tenants in the future. And yes, leave the plastic flamingos out.
• Clean- First of all there is no substitute for clean. Clean is the ingredient all  tenants want. Clean is safe and welcoming. Clean is not complicated. Dirty and disorderly means this home is not ready to live it. As the saying goes- "Nothing is as gross as someone else's dirt!"
• Finish- Old tacky carpets, vinyl flooring, countertops, appliances, and such look tired and uncared for. Good prospective tenants will cross your home off their list and you will be left with lowering the rent until you meet the market. Case in point- A local landlord I know owns only older homes. She is a master at keeping the rentals up to date. She rents her homes quickly and for top dollar since her tenants can see that the landlord cares about her business and will treat them as valued paying customers.

Overall, your job as a landlord is to attract a good customers and then keep them. it is not really much different than any other business model. A tacky and tired rental can be a sign of future failure. A tidy rental tastefully painted and decorated is a sign that someone cares about their business and wants to succeed. Happy landlording!

Ed Waggoner -Lead Manager at Empire

A Moldy Situation

A rental property with a mold issue is not new news. However, with all the bad press landlords get, the sight of mold for some tenants conjures images of greedy landlords sending hapless tenants to the hospital. Because of this we have to work double time to keep our tenants in the know and to work quickly and in good faith if a situation does come up. Here are some facts that will keep us out of trouble.

• As long as there is a moisture problem there will be a mold problem.
• Some homes are more prone to mold than others. If you have a home that has constant mold issues, stop just treating the symptom and fix the problem. 
• Even though the tenants are introducing the additional moisture to the home it is not necessarily their fault there is a mold issue.

This brings us to mold prevention. The landlord first needs to do their part. That is provide a product that your customers can enjoy. Among other items, this is an environment that is not conductive to growing mold. This includes functioning roof, heat, windows, plumbing, and ventilation systems. Big producers of moisture are dryers with broken or plugged ductwork, ventilation hoods over the stove that do not work or vent right back into the living space ( I have seen it), bathroom fans that do not work or do not move enough air. If after these items are fixed or updated consider adding a timer or hydrometer switch to the bathroom fan.

We recently added a hydrometer switch to a rental that always had a muggy feeling to it with the start of a mold issue in the bedrooms behind the dressers. We added the hydrometer switch to the bathroom fan and did some light cleaning in the bedrooms. Amazingly, the moldy situation and the heavy moisture laden air problem vented away.

Consider adding the ROA's Mold Prevention Agreement (Form 54)to your quiver of addendums. Often just making the tenants aware of what they can do and what is expected of them is most of the battle. Happy Landlording.

This was taken from an article published for the Rental Owners Association of Lane County.

Rental Security

Security and Locks

You can imagine that in this business we get to deal with a lot of locks and keys. On occasion we get locked out on a tenant move out and get to resort to more interesting methods of entry. Through the years we have had to become amateur locksmiths as real locksmiths are hours away and very expensive. So some of us at Empire (I am one of them) can pick locks fairly well. This saves you money and saves us time. So how secure is your rental and your home? In reality, probably not very secure at all. Most locks are easily defeated in a matter of seconds with just a little practice and until you spend about $150 on a front door lock set your not anymore secure than your neighbor. These locks from Kwikset and Schlage have been the industry standard for many years. We re-key the  locks  between tenants and keep the door and window locks in good working order. The rest is up to the tenants
By Ed Waggoner

More Rent Control!

More Rent Control
and worse!

With the rental market finally on the mend, the politicians in Salem are trying to purchase more votes by promising an utopia to tenants. The inventory of available rental is at an all time low. This in turn is putting pressure on existing inventory. With supply short and demand high, rental rates are on the rise. This is good for everyone, as some landlords have dug to the bottom of their savings since the beginning of the recession/depression and cannot dig any deeper. Tenants can now see improved living conditions and a landlord that may be in a better mood. If the red tape and local governments were amiable to development, new housing would spring up and prices would balance back out. This problem exists because we often forget that government has no wealth of its own and cannot give us anything that it did not take from us first. I urge you to call your congressman and tell them to vote "no" on any new landlord tenant laws. Here is a link to their website and a link to the bill.

By: Ed Waggoner

Rent Controls

Rent Controls

Below in a copy of the letter we sent to all our legisatures this week. Rent controls will damage the rental industry for as long and the controls are on place.

Dear Congressman,

It has come to my attention that you have a strong resolve to bring new legislation regarding rent controls to the legislature. I understand that the desire for this is to reign in seeming out of control rental rates. However, after 17 years of managing property in the Eugene/Springfield area I can assure you that additional regulations will only exacerbate the situation. 

I have observed over the last two decades as new legislation has passed the relationship between the tenant and the landlord has deteriorated. The time honored business relationship between the landlord and the tenant is strained by each side feeling they are a victim of the other. This induces legislatures to pass more regulations and laws for both sides adding to the already difficult situation. Currently, the atmosphere is war with each side feeling they must secure the next victory in order to stay ahead. The losers are the property managers, landlords and tenants who are just trying to live their life.

In the real world of economics  price is driven in any industry by supply and demand. When the price is high the demand is high and supply is low. When the price goes up this should induce builders and investors to enter the market thereby bringing the supply to market level and bringing prices down again. Additional regulations will have the exact opposite effect. New regulations will only push investors out of the market and thus reduce already strained supplies.

In the end you may be given great accolades for your effort to help tenants, but in all intellectual honesty you will be only hurting them. Please think about your constituents and their families and stop this legislation before it starts.

With warm regards,

James (Ed) Waggoner
Empire Property Management LLC
541-913-8451