New Year’s Resolutions #1: Get the Facts By Sonya Loera

New Year’s Resolutions #1: Get the Facts

Ringing in the New Year often brings a time of reflection. It is a doorway between the past and the future. As a part of this tradition, many of us, whether we admit it or not, tend to make some resolutions.

As we enter 2021, putting the past behind us and looking forward into the future seems to be a little more daunting. What types of resolutions should any of us even consider?

For apartment owners and investors, perhaps the very first resolution on the list should be: Get the Facts.

In many ways, this is a continuation of what we learned in 2020. First came the passage of AB 1482 and what we at WR Gorman & Associates termed the “New Norm.” Yet even before there was time to figure out all of the ramifications, not to mention the new rules and regulations, the pandemic struck.

Along with COVID-19 arrived another “New Norm” — one that has impacted all of us on many different levels.

No longer did following the rules mean avoiding litigation and fines, it could actually put at risk our own lives and those with whom we came into contact with. However, the real challenge — as it continues to be — is that the rules keep changing.

This is where getting the facts becomes so very important. Now, more than ever, you need to be cultivating expert and reliable resources. Know and call upon those who have their fingers on the pulse of what is happening.

Listen carefully and don’t just rely on one point of view or source of information. If you hear or read something that you think is alarming, start doing some research. Remember, there are usually at least two, if not more, sides to an issue or, even, in the way that the facts are reported.

Read your Apartment News magazine, check the AAOC website and, in the case of day-to-day management questions, have the AAOC office on speed dial. They may not have all the answers, but they have an extensive network of resources.

Make sure, as well, that you have the facts about your own property. Watch your income and your expenses. Track delinquencies and late payments carefully so that you are not caught unaware. Yes, filling vacancies is much more challenging. Know in advance what rules you will need to follow.

Although now may not be the time to raise rents, you should still be tracking what rents are being charged for other comparable apartments in your area. This is also not the time to be neglectful regarding ongoing maintenance and landscaping.

Yes, costs are higher and everything takes a lot more time, effort and energy to accomplish. However what you ignore today will still be there tomorrow and the likelihood is that the situation will not improve, but only worsen.

And, don’t forget the ownership side. Whether you are still building your wealth through real estate, relying upon the cash flow as part of your income stream or simply holding on for the By Sonya Loera benefit of your heirs now is not the time to be ignorant of either the market or the trends.

Returning to an often-repeated theme in our office — quantify, quantify and quantify. Obtain not just the asking, but the sold prices on comparable properties. Analyze the trends and find out what various experts are expecting will happen.

Accept the realities and know the facts about your position. Look, too, at your options, make some projections and run the numbers. Undertaking this process does not mean refinancing, selling, exchanging or anything else. It really is just a matter of getting the facts.

As Bill recently wrote in a letter he sent to his friends and clients, “We live in an age where information is powerful currency and knowledge is power.”

So, what’s the best 2021 New Year’s Resolution? Get the facts.

About the Author: Sonya Loera joined WR Gorman & Associate in 2013. With a background in accounting she serves as not only officer manager, but also as property manager, transaction coordinator and real estate agent.

Founded in 1972 by William (Bill) R. Gorman, this Brea-(CA)-based firm focuses on personalized wealth building through real estate. With a client-first philosophy, the firm serves as a n expert resource for informed decision-making and transitioning that creates sustainable legacies for investors and their heirs.