How Landlords Can Recover From Shelter-in-place

In any crisis, like a recession or the current pandemic, there will be winners and losers. Single-family rentals are showing signs of being on the winning side.

 

 

Advantages For Landlords

“The COVID-19 pandemic will make homeownership more difficult for many Americans suffering employment loss and potential reduction in credit scores,” says Ted Jones, chief economist at Stewart Title Guaranty Company. “However, this will continue to drive rental demands, particularly for certain products. I think single-family rental markets is in the catbird seat as we speak right now.”

The new generation of home-dwellers is more inclined to rent than buy. According to Pew Research, the millennial generation—which accounts for roughly half of US households with children—are more likely to rent than own a home compared to previous generations. 

According to “The Dream on Hold,” a study by RENTCafe, an online apartment-finding service, census data showed that over the last decade homeownership by families declined by nearly 3.6 million. By contrast, the number of families living in rentals rose by 1.9 million.

Another factor benefitting single-family rentals is the impact COVID-19 is having on America’s biggest cities. Writing for the New York Times, Sabrina Tavernise reports that “the virus has found fertile ground in the density that is otherwise prized. And it comes as the country’s major urban centers were already losing their appeal for many Americans as skyrocketing rents and changes in the labor market have pushed the country’s youngest adults to suburbs and smaller cities often far from the coasts.”

 

 

Necessary Adaptations

 

Along with these favorable conditions for single-family rentals comes a series of challenges for property owners who must quickly adapt to the ever-changing guidelines and regulations concerning essential services, showings, property maintenance, and cleaning and eviction protocols. Because we are still in the thick of the pandemic, these directives are constantly changing, so be sure to keep abreast of your county and city guidelines and let your tenants be aware of them as well.

 

  • Showings

 

Like real estate agents, most landlords have halted in-person property tours and replaced them with virtual tours. Video conferencing services like Zoom, Google Hangouts, Skype, and FaceTime have come to the rescue as we continue to practice social distancing. 

Instead of doing individual virtual walk-throughs, you can streamline the process. Record a video on your phone as you walk through your rental property. It’s also helpful to take pictures of amenities you wish to highlight. Then, post it online to both advertise the property and replace the need for in-person tours.

 

  • Maintenance

 

Perform emergency repairs only. Let your tenants know that in order to keep everyone safe and healthy, non-essential repairs are suspended. If there is an emergency repair that must be fixed in a timely manner, follow the CDC’s safety guidelines

The following would classify as essential repairs:

  • Leaking pipes
  • Broken furnace or air conditioner
  • Broken washing machine or dryer
  • Leaking roof
  • Smells of gas or noxious fumes
  • Growing mold
  • Broken stove or refrigerator
  • Backed up toilet or sewage drain
  • Power outage
  • Broken key to unit
  • Fire or smoke damage
  • Water heater isn’t working–no hot water

For non-essential repairs, property owners and managers around the country are assisting renters via technology, such as:

  • How-to videos with step-by-step instructions
  • Video calls (via FaceTime, Skype, etc.)
  • Asking for pictures or videos of maintenance issues and assisting tenants virtually and/or giving access to necessary tools.

 

Evictions

California Governor Gavin Newsom has extended the executive order issued in March that allowed local governments to enact COVID-19 eviction moratoriums. The statewide order was pushed back through July 28 and applies to any local orders that were set to expire as well.

The California Apartment Association has issued the following advice for landlords weighing the concurrent legislative, executive, and judicial orders:

“Continue to follow any applicable local moratorium and the federal eviction moratorium if a property is federally assisted, as these measures may limit the ability to serve a three-day notice to pay or quit. Local moratoria also may also limit the ability to carry out ‘no fault’ evictions and give tenants financially affected by the pandemic an extended repayment period. If a property is not subject to the federal moratorium or a local ordinance, the owner can serve a three-day notice to pay rent or quit but cannot enforce it in court.”

Many landlords have also decided to stop charging late fees for rent. This takes even more pressure off of tenants and shows that you’re willing to work with them to provide some relief. You may also want to consider allowing renters to break their lease, if necessary.

For more detailed information on Landlord-Tenant Regulations during Covid-19, click here.

 

Can We Help?

Amid this rapidly changing environment with both opportunities and challenges for single-family renters, rely on the industry knowledge and experience of Julie and her team to stay on top of the game.

Call Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

Why Professional Copywriting Is Essential

Imagine you’re sitting inside a restaurant looking at the menu, and you have only two choices:

  • BBQ Peach Chipotle Chicken Wings – $13.00
  • Smothered Crisp Chicken Wings in Smoky Peach-Chipotle Glaze. A summertime favorite for years at the South Street block party! – 14

What you may not know is that both choices are the same dish, with the same ingredients.

Like most people, you’d probably choose the second dish, making the restaurant earn an extra 8% just by having used mouth-watering adjectives (smothered, crisp, smoky), de-emphasizing price (14 vs $13.00), and spicing the dish with a story no one wants to miss out on (South Street block party!).

“Chefs write the music and the menu becomes the lyrics. When the music is gorgeous but has the wrong lyrics, the lyrics will torpedo the music.”

—Danny Meyer, Founder & CEO of New York’s Union Square Restaurant Group

Why Good Copywriting Matters

As with food, so it is with everything else people purchase—including real estate. 

A keen understanding of consumer psychology under the pen of a professional wordsmith accompanied by top-quality images (insert link to article, “Homesellers, Why Professional Photography Is Essential”) is a three-punch approach of sheer marketing artistry at your service when you team up with Julie and our team.

When listing homes, we don’t just describe them. We paint lively pictures and write captivating stories to create a vivid feel in buyers’ imaginations of what it will be like to own and live in one of them. For example, under our creative touch, ‘large windows’ become ‘panoramic windows which permit plenty of natural light.’ A ‘large backyard’ is transformed into a ‘spacious outdoor gathering space for friends and loved ones.’ ‘Great views’ become ‘sweeping vistas.’ While we never exaggerate (a tactic which always results in home-shoppers’ disappointment), we creatively embellish the best a home has to offer.

If your house happens to be ‘at the epicenter of a vibrant culinary scene,’ or if your neighborhood has a ‘staggering number of artisan coffee shops,’ we’ll leverage these distinctions to pique buyers’ interest by appealing to their senses. Or, perhaps your home is ‘located in a world-class school district’ (a top choice for millennial parents in the Bay Area), or ‘within walking distance to miles of pristine nature trails.’ Our team strives to weave the unique selling-points of your neighborhood in an irresistible narrative bound to draw multiple offers.

Our Copywriting Goals

When highlighting the features of a home, our expert copywriting team are also rigorous grammarians and will never, ever describe your home’s ‘spacious walk-in closet’ as a ‘walking closet.’ Grammar and spelling DO matter. In fact, more than 40% of 1,291 people surveyed online say they would be much less inclined to tour a home if its online listing contained misspellings or improper grammar.

It all boils down to either selling plain old chicken wings or showcasing a mouthwatering plateful of smothered, crisp delicacies meant exclusively for discerning palates.

Your home is special and deserves to have its story written only by the best.  Let our creative team craft its unique narrative for maximum appeal.

Furthermore, Julie realizes that home-selling is a very personal endeavor. She believes all sellers deserve the best marketing available for their homes, especially in the Bay Area where homes command premium prices. By partnering with dedicated real estate copywriters, Julie and her team ensure that your home will be presented at the highest caliber possible.

Can We Help?

Making your home stand out in written form is an invaluable advantage. That’s why so many savvy Bay Area home-sellers have relied on Julie’s cutting-edge marketing tactics to sell their properties fast and for top value.

If you want your property to stand out from the pack, please contact Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

Why You Need An A-Team To Market Your Home

Gone are the days when a portable FOR SALE sign and a one-page flyer were enough to sell a house. In today’s digital age, you need a comprehensive multi-media marketing campaign run by professionals. 

In other words, you need an ‘A-Team’—a group of specialists who are skilled in positioning your property in the best possible light. This ultimately attracts the greatest number of qualified buyers who will pay a premium price. If the agent you are interviewing for your listing does not offer a similar approach to the following, then it’s in your best interest to find an agent who does.

Bringing The Most Value

For instance, Julie and other top Realtors® know that a property with attractive curb appeal can increase perceived home value by 5 to 11% and will help sell a home faster. So, they offer their clients expert guidance on key projects.

Savvy agents also have a constant finger on the pulse of the rapidly changing media preferences of the upcoming generation of homebuyers. Thus, they connect across generations by deploying a multi-channel strategy to span various audiences and interests. This reach can include social media and online platforms, messaging apps, public-facing websites like Zillow, Trulia, and Realtor.com, agent-specific groups like the MLS, Top Agent Network (TAN), VLS Homes, and private online networks exclusive to an agent’s brokerage.

 

Enhanced Marketing

 

High-caliber real estate marketing IS effective—and the proof is in the numbers. Agents like Julie know that 87% of buyers who search online for a home find photos to be among the most useful features, and that homes with high quality photography sell 32% faster. Thus, top agents choose to recruit first-rate photographers (insert link to article, “Homesellers, Why Professional Photography Is Essential”) whose professional and artistic eyes capture the distinct essence and features of a property in stunning, high-resolution images. This imagery is capable of capturing the attention of the most discriminating buyers by standing out from the many low-quality images out there.

 

The winning power of storytelling in marketing is employed by expert Realtors® through the use of skilled copywriters (insert link to article, “Homesellers, Why Professional Copywriting Is Essential”). These writers are tasked with creating a vivid feel in buyers’ imaginations of what it will be like to own a particular home and live in it, while weaving the unique selling-points of its neighborhood in an irresistible narrative bound to draw multiple offers.

An Elevated Perspective

Top agents like Julie have been in the industry for years, even decades. They understand the importance of keeping the quality of every piece of marketing collateral—both print and media—consistent with the quality and distinction of the property being offered. A premium home advertised through poor-quality mediums will automatically make it lose value in a buyer’s mind.

On the other hand, agents are just now beginning to understand how crucial it is to expertly stage a home (insert link to article, “Homesellers, Owner-Occupied Vs. Vacant Homes”). In fact, surveys show that 40% of buyers’ agents say staging has a direct effect on most buyers’ view of the home, and 83% percent say it makes it easier for a buyer to visualize the property as a future home.

Only truly forward-thinking agents offer their clients access to a network of staging professionals, which increases the chances of a potential buyer falling in love with a home at first sight.

Can We Help?

Marketing a home in today’s world is a big-league game where winning requires sellers to team up with the best players. Recognized as one of the top agents in the nation, Julie and our ‘A-Team’ of marketing professionals stand ready to help you win. 

Recruit our excellence and experience. Contact Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

Why internet marketing is important

In today’s digital age, getting noticed is harder than finding the proverbial needle in a haystack. 

 

Today’s average person is inundated by over 30 gigabytes of daily information. So, getting someone’s attention requires sophisticated knowledge of how the internet works and ready access to a broad platform and network of communication channels. Putting all eggs in one basket no longer works. These dramatic changes require casting the widest net possible to attract the eyes of prized homebuyers.

 

Shifts In Marketing

In 1981, 22% of buyers read newspaper ads to find a home. By 2018, 44% were first looking for properties online. Buyers now have apps that allow them to search by location and neighborhoods. Online listings have virtual tours so viewers can look at many potential homes while narrowing their search to a select few in an effort to save time. Online searching maximizes the ability to compare and contrast homes by selected features. Most of this is done before a potential homebuyer connects with a real estate agent.

81% of older millennials, 80% of younger millennials, and 78% of Generation X found their home on a mobile device compared to 68% of younger boomers. 

—REALTORS® 2019 Report: ‘Real Estate in a Digital Age’

How Does Internet Marketing Help?

What this means is that savvy agents must now make use of all online access they can get their hands on. This may include social media and online platforms, messaging apps, public-facing websites like Zillow, Trulia, and Realtor.com, agent-specific groups like the MLS, Top Agent Network (TAN), VLS Homes, and any private online networks exclusive to your agent’s brokerage.

 

It means deploying the persuasive power (insert link to article “Homesellers, Why Professional Photography Is Essential”) of high-quality, professional images to make your home stand out from the rest.

 

It requires an up-to-date understanding of the ever-changing preferences in social media use by the majority of today’s buyers (millennials) while simultaneously responding to their desire for personal connection, authenticity, and honest dealings. It also means knowing how to use technology to make real estate transaction processes simple and straightforward. 

Finding the right property was ranked highest among all generations as the most difficult step in homebuying.

—REALTORS® 2019 Report: ‘Real Estate in a Digital Age’

How Do Agents Stay Relevant?

Part art and part science, today’s real estate marketing landscape requires cutting-edge knowledge, keen insight, and skillful use of a wide range of promotional tools.

 

In what seems a real-time race toward excellence, Julie and our team remain one step ahead, always adapting and refining our marketing approach to reach the greatest number of prized buyers to meet the timeline and value objectives of home-sellers.

 

But we always knew that (insert link to article “Homesellers, Selling Your Home With Julie”).

Our constant reach toward greater excellence is what’s kept us in business for close to twenty years, and it’s the reason why we’re recognized as one of the top agents in the nation.

Can We Help?

Securing attention is hard to come by in the digital age. That’s why so many savvy Bay Area home-sellers have relied on Julie’s cutting-edge marketing approach to sell their properties fast and for top value.

If you want your property to stand out from the pack, please contact Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

Why Professional Photography Is Essential

Let’s face it: We now live in a digital age, and there’s no turning back.

By 2011, Americans were absorbing five times as much information per day as they did in 1986—the equivalent of 174 newspapers! During our leisure time (not including periods of work), experts estimate that each of us processes 34 gigabytes, or 100,000 words, every 24 hours. This doesn’t mean we read that much a day. It means that 100,000 words cross our eyes and ears in a single 24-hour period.

Photo Marketing Makes A Difference

With so much information, the most valuable commodity for marketers and advertisers is now our attention—and the most effective way of capturing it is through images. Images are crucial in marketing because they’re digested quicker. It takes readers almost ten seconds to process and decide on the value of written text, not to mention the time required to read it. On the other hand, the mental and emotional impact from an image happens almost instantly. 

Images also help make sales.

When people hear or read information, they’re likely to remember only 10% of that information three days later. However, if a relevant image is paired with that same information, studies show that people retain 65% of the information three days later. That’s the reason 80% of marketers today use visual assets in their social media marketing.

Quality Matters

Recent studies reveal that 67% of online shoppers consider the quality of an image as very important when choosing and purchasing products. Customers also think that image quality is more valuable than product information, a detailed product description, or customer ratings and reviews. 

In real estate marketing, the impact of using high-quality, professional images could not be more convincing:

  • Eighty-seven percent of homebuyers who searched online for a home found photos to be among the most useful features of REALTOR® websites, according to the 2018 NAR Profile of Home Buyers & Sellers.
  • Homes with high-quality photography sell 32% faster.
  • Homes with more photos sell faster, too. A home with one photo spends an average of 70 days on the market, but a home with 20 photos spends an average of 32 days on the market.
  • For homes in the $200,000 to $1 million range, those that include high-quality photography in their listings sell for thousands of more dollars.

Keeping Up With The Times

Julie fully realizes the revolutionary transformation in the way homebuyers now search, view, select, and purchase a home. So, her team has partnered with a first-rate real estate photographer whose professional and artistic eye captures the distinct essence and features of a property. This attention to detail results in each home’s spaces being showcased by stunning, high-resolution images. The high level of professionalism these photos exemplify is capable of capturing the attention of the most discriminating buyers, standing out from the many low-quality listing images that inundate the local real estate marketplace.

Furthermore, Julie realizes that home-selling is a very personal endeavor. She believes all sellers deserve the best marketing available for their homes, especially in the Bay Area where homes command premium prices. By partnering with a dedicated real estate photographer, Julie and her team ensure that your home will be presented at the highest caliber possible.

Can We Help?

Securing attention is hard to come by in the digital age. That’s why so many savvy Bay Area home-sellers have relied on Julie’s cutting-edge marketing approach to sell their properties fast and for top value.

If you want your property to stand out from the pack, please contact Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

How A 1031 Exchange May Help You

If you’re an investor who is looking to upgrade your investment property, but want to avoid the capital gains tax, a 1031 exchange might be the way to go.

The IRS assesses capital gains taxes on the difference between what you pay for an asset and what you sell it for. Capital gains taxes can apply to investments, such as stocks or bonds, and tangible assets like cars, boats, and real estate.

A 1031 exchange is an alternative that could be utilized to help you achieve your financial goals. However, it cannot be used in conjunction with other IRS capital gains exemptions.

How Can It Help?

Thanks to IRC Section 1031, a properly structured exchange allows an investor to sell a property to reinvest the proceeds in a replacement property and defer all capital gain taxes. By utilizing the money otherwise paid to the IRS in taxes, investors can increase their overall buying power to acquire a more expensive and profitable replacement property, which could mean the purchase of a larger, better investment property.

NOTE: Section 1031 is intended for real estate investors. If you are looking for ways to save money while upgrading your primary residence, Julie and her team can connect you with tax professionals who can advise you accordingly.

Are There Requirements? 

Although the tax code doesn’t exactly state how long you must hold the investment property for rental purposes to enact a 1031 exchange, most tax professionals agree that one to two years is long enough.

The IRS, though, is clear on two points:

  • Merely declaring your house is a rental property isn’t enough. You can’t live in your house at all and you must actually rent it out for some period of time. You can rent out the residence to a relative, provided: 1) the rent you charge represents fair market value for that type of property, and 2) your rental agreement is in writing, and the terms of the agreement are enforced. Most important is the clause dealing with the late payment of rent.
  • Once you’ve established that your property is a rental property, you can perform a 1031 exchange and defer the capital gains from the sale. Section 1031 requires the larger, better property acquired be of “like-kind”—meaning it must also be an income-generating residence.

Additional Points

There are several other stipulations that must be followed to validate a 1031 exchange.

These include:

  • All proceeds from the sale of the original investment property must go towards the replacement investment property, or else they will be taxed.
  • The purchase price of the replacement investment property must be the same as or more than the sales price of the original property.
  • There are strict deadlines by which you will need to identify and then obtain the title of the replacement property. 

Consult A Professional 

1031 exchanges are complex transactions. If you plan to eventually upgrade your current investment property by purchasing another investment property through a 1031 exchange, check with a real estate lawyer or tax professional to ensure you’re 100% compliant with IRS rules and regulations at every stage of the process. Julie is familiar with these proceedings, and can refer you to the proper professionals to make your 1031 exchange a success.

Click here for a detailed look at Section 1031 of the United States Internal Revenue Code. 

 

Can We Help?

For more information on how we can help with your upgrade needs, please contact Julie at 650.799.8888 or Julie@JulieTsaiLaw.com to schedule a free consultation.

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