Arizona Rental Housing Journal April 2015

Page 1

Rental Housing Journal Arizona

April 2015 - Vol. 7 Issue 4

2. Student Loan Debt Affects Real Estate Investments in a Big Way 3. Taking A Pulse Check On Your Attitude 4. Tenant Screening – Between a Rock and a Hard Place 5. Serving a Noncompliance Notice

6. Behind The Leasing Desk with Heather Blume 8. Can You Afford to Lose $230,400 In Leasing Revenue? – The Coach 10. Secret Shopper Multifamily Apartment Marketing: Are You Missing Out On New Leases?

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

A Monthly Circulation To More Than 10,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

Federal Legislation & Budget Proposal Threaten 1031 Exchanges

I

RC 1031 allows owners of investment property to defer capital gains taxes, on the sale of property, so long as another investment property is purchased, per the rules of IRC 1031. Tax deferred exchanges have long been utilized by apartment complex owners to to defer taxes and build their investment portfolios. Many owners of multifamily portfolios initially bought their first apartment complexes, by exchanging single family rental house(s) for multifamily properties, utilizing 1031 exchanges. Currently there are three federal government proposals to restrict or eliminate IRC 1031 Exchanges: • The President's proposed 2016 Budget limits the deferral of gain for IRC 1031 exchangers to $1,000,000 per taxpayer per year. • A draft proposal from US House Ways & Means Committee Chairman Paul Ryan, expected to be released by August 2015, proposes eliminating IRC 1031 exchanges entirely.

Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007

PRSRT STD US Postage PAID Sound Publishing Inc 98204

• Senate Finance Committee Chairman Orrin Hatch has stated that this summer is the time to do a tax reform bill. Discussions have included total elimination ...continued on page 5

T

Metro Phoenix Apartment Market Update

he Kasten Long Commercial Group has specialized in apartment brokerage in metro Phoenix since 1998. Agents have brokerage more than 1,000 communities with gross sales in excess of 1 billion dollars. The company also provides weekly updates (by e-mail) on apartment sales and publishes an apartment market update on a quarterly basis – past issues are available on the company’s web site (www. KLCommercialGroup.com). Vacancy Decline Led by Smaller-Size Apts Vacancy rates for the 4th quarter for stabilized 50+ unit multifamily properties decreased from 6.6% to 6.1%. This is the 14th decrease in the past 15 quarters. We have been predicting that the lack of construction for the B and C product – combined continued on page 7

I

Sunset of the Protecting Tenants at Foreclosure Act

n May 2009, the Protecting Tenants at Foreclosure Act of 2009 (the “PTFA”) was enacted. The Act provided various protections to those tenants who were currently renting a property at the time of foreclosure and provided limitations on the ability of the new owner to change terms of the lease agreement and/or terminate the lease agreement. Pursuant to the PTFA, an immedi-

ate successor in interest “of any foreclosure on a federally-related mortgage loan or on any dwelling or residential real property” is required to (i) honor the remainder of the term under a “bona fide lease” entered into prior to the notice of foreclosure and (ii) give at least 90 days notice to vacate to a “bona fide tenant” who does not have a lease or has a lease terminable at will. In almost all cases where the PTFA

WE TURNED 59% OF OUR CLIENTS’ JUDGMENTS INTO MONEY WITHIN FIVE YEARS*

was asserted as a defense, the legal issue invariably became whether or not the lease was a “bona fide” lease. The PTFA defined a “bona fide” lease or tenant is one in which (a) the borrower or his/her child, spouse or parent is not the tenant, (b) the lease or tenancy is the result of an armslength transaction; and (c) the rent is “not substantially less than fair market rent” or is reduced or subsidized continued on page 6

Law Office of James R. Vaughan, PC Arizona & Washington Collection Attorneys

Call Now for a Free Attorney Consultation

*Past results no guarantee of future collections. All accounts are different.

James R. Vaughan

Managing Partner Arizona & Washington Attorney

Eric W. Logvin Partner Arizona Attorney

www.phoenixatty.com

11445 E. Via Linda, Ste. 2-610 Scottsdale, AZ 85259

602-279-0778 Ext. 2

Contingency Rates Only – No Hit, No Fee Aggressive Asset Location You Evict, We’ll Collect


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.