The path in the next few years from high school to college may be very different than the previous generation.
The nest eggs set aside by the Baby Boomer generation for their children’s education is gone with the recent crisis in the economy with the stock market and stock options for many households being negatively affected.
The increase in job layoffs of many top executives in large corporations has forced many parents to change their philosophy of paying high tuitions for private universities.
In addition, many cannot mortgage their homes as in the past to help finance the monies needed for college tuitions. Many banks are not eager to refinance and even the threat for thousands is the possibility of losing their homes.
The new slogan should read, Do I Need It, or Do I Want It?
What does this mean? In the past when high school seniors applied to college and the larger envelope arrived in the mail everyone had smiles. The reality of today is the look of fear and anxiety, as parents have to tell their children you cannot go away to college right now.
The students of 2009 will thus be attending Junior Colleges and working to help their families as they did prior to the Baby Boomer generation. The reality is many students may be working while their parents are unemployed.
The budget cuts that have hit our California State, University of California and Junior College campuses are causing all to be over crowded. In addition with people out of work they too are returning to college.
We will all have to watch the trends and reports across the nation as the graduating high school classes of 2009 will be making their decisions over the next few months.
A new phenomenon has recently occurred in our current market that is changing the commercial leasing market for Lessor and Lessee.
The current owner who has flexibility and creativity will be successful in leasing their properties.
The stringent rules regarding monies required for three to six month of rent as a security deposit upon signing of leases are now being negotiated in order to lease space in a very competitive market. This strategy allows for a win-win for both the lessor and lessee.
The lessee moves into the property and the lessor does not sit with a vacant commercial property.
I have found this to be true when often working with new start up companies who have strong financial backing but do not want to put several months of working capital monies into a security deposit in order to sign a lease.
Thus, the owners who have the financial flexibility are being successful in leasing when their competition is not as fortunate in these unpredictable times in our economy.
#1. Join the California Apartment Association or Your Local Apartment Association in your state. Order CAA’s Managing Rental Housing Encyclopedia Book.
#2. Sign up for an Education Course in your area.
#3. Have available all the up to date required forms for prospective tenants who will be leasing your property and new housing laws as they are updated. Understand the instruction sheets and be well informed of your rights and the tenant’s rights.
#4. Have a contact person at the Apartment Association that you can call with any questions and concerns, networking is very important.
#5. Have your business polices in place and have them documented in writing when you provide an applicant with an application. Be specific to your income requirements etc.
#6. Advertise in various mediums that you will be comfortable in managing and always be consistent. Successful ideas have been Craigslist, Rental Portals such as
Apartments.com.
Renters.com, local newspapers and College Community Housing Sites.
#7. It is very important to understand the local housing requirements in the city that your property is located. For example, in the city of Palo Alto owners are required to offer good residents the option for renewal of their leases.
#8. Have an updated lease with a complete move-in move out form so both you and the tenant has a complete understanding and agrees to the condition of the property.
#9. Be advised of the correct items such as a copy of a driver’s license and birth dates in order to run a credit check.
#10. It is important to remember that the first month’s rent and security deposit upon move-in should be in the form of a cashiers check or money order. Always be accessible by giving tenants your contact office and cell numbers.
Yes your rents in 2008 were higher and prospective tenants were lining up with their applications and their money in hand. But, here we are in 2009 and you are faced with a vacancy and what to do to with your unit.
You have a proposal to renovate and it is several thousand dollars so your question is what to do? The answer is YES, YES, Renovate ASAP, because prospective tenants in 2009 are very successful in negotiating on their terms with their rental amounts because of the simple economics we all learned in ECON 101, which is Supply And Demand…
My personal experience in down markets is that I recommend that all owners should invest wisely in their renovations. To compete your apartment needs to be extremely clean, freshly painted and updated with appliances or you will sit at an empty screen with no e-mail responses.
Location, Location, Location once was the only major requirement for prospective tenants but remember if you renovate and market your property well you will be successful in renting your apartment, condominium, house or townhouse.
Why is this unique Brisbane community unaffected by the negative Real Estate Economic conditions we read about everyday in the papers and hear on the news?
The answer is simple for local business owners, who know there is a sense of community, safety, ease of doing business here in Brisbane and most of all the LOCATION, LOCATION, LOCATION.
Minutes from a metropolitan city like San Francisco local businesses have a small town feel but accessibility to their local client base.
Our recent positive experience here in Brisbane with business owners purchasing and leasing space for their companies has been their desire to be located only in Brisbane.
The motivating factors for these owners were to be close to their current business locations and for others their desire to work close to where they live. They know their employees are happy as well with the local restaurants, park areas and very close proximately too accessible highways.
For more information on recent sales and leasing information contact Steve Bianchi, Realty World-Bianchi & Associates by phone (650) 941-5494 or E-Mail:
