Friday, November 20, 2015

Ready for El Nino

Many property owners have been preparing for El Nino, requesting extra attention to their gutters and so forth. While this is a standard fall time practice for property managers, the looming fear about the coming rains has pushed us to take some additional measures this year. The two early rains of this year, one week apart, and lasting one day only, were extremely helpful in identifying weak points in our various roofs. We are confident that coming into the main winter months, we will have minimal issues, thanks to the timing and duration of the early rains.

Friday, October 30, 2015

Rental Market Update by Scott Safadi

After 5 years of double digit annual growth, the rental market in the Bay Area appears to finally be flattening out. There is always a seasonal slowdown at the end of the summer; however, in 2015, this slowdown came in early August, when things are usually peaking. Rent to income ratios remain at 2.5-3.0X comfortably, but one has to bear in mind that the majority of new renters today, tech employees, are making six digit salaries. The current bay area rents depend on this sector and the salaries it provides. One must ask how the others survive - those not making six digit salaries in tech. The reality is that they are being forced into areas and neighborhoods that they would not have considered living in before, or they are moving out of state.

Friday, October 23, 2015

No Emails outside of work hours

One thing I've noticed is that I really can't stand how many emails always await me when I come into the office at 7:00 AM every morning. When I leave at 5:30, I have zero unread emails,but somehow I have 25-30 new emails waiting for me between the hours of 5:30 PM and 7:00 AM the next morning. One day, it would be nice to come into the office with a blank slate for the day, without having to spend my first two hours catching up on emails from my night owl associates. I suppose the only thing within my control is to not check emails outside of business hours and that's what I'm going to do. People can call or text in emergency cases, but after a 10.5 hour day, I'm done!

Friday, October 16, 2015

Scott Safadi on Rent Control

Scott Safadi believes that rent control is not the answer to the affordability problem when it comes to Bay Area rents. Scott Safadi acknowledges that the rising rents do, in fact, pose a challenge for many in the renter community. However, pragmatically speaking, rent control only helps a few, while it harms many others. Specifically, Scott Safadi believes that rent control creates an unreasonable burden on incoming renters, such as recent graduates or people just moving into the area, while creating an unreasonable benefit, on the shoulders of landlords to long time residents. Scott Safadi believes that the reality is that no renter is entitled to live wherever they want at the price point they want. This is dictated by the market. If an area becomes very popular (demand) and prices are driven up, renters who cannot afford those prices need to relocate to an area that is within their budget. Scott Safadi believes that, while the millennials are the ones who have been referred to as the entitled generation, there are previous generations that actually believe in an entitlement system within a free market. Scott Safadi believes that rent control is not the solution to our problems. San Francisco is a perfect example of how ineffective it really is.

Friday, September 18, 2015

Syria, a total disaster

With Russia stepping up their efforts to bolster the Syrian government, I can't help but wonder if they might be doing the right thing. The country has become so destabilized at this point, with so many warring factions at play, the most peaceful solution may just be to help the Assad regime regain control of their country. The problem is that they have committed unspeakable acts for the past several years and the only way they will regain control of the country is likely by committing more unspeakable acts. It is a war, after all, and they have never shown any kind of commitment to human rights or any shyness with regards to committing war crimes in plain view of the world. Perhaps there simply is no solution - the situation may just be too far gone.

Rents down, interest rates steady

Here we are in our fifth straight year of double digit rent growth in the Silicon Valley. As was inevitable, the rents have finally stabilized and in many cases, dropped by as much as 15% in a recent, late summer correction. With a background of a soft stock market and steady interest rates, it reminds us that this recovery is tenuous and that we should be careful not to be too bullish in this fragile world economy.


twitter Delicious facebook Digg Stumbleupon Favorites More