July 2015
Rental Housing Journal Valley 2. Dear Maintenance Men: 3. Motivation and Attitude – Choose Your Path, Determine Your Destination 6. Ask the Secret Shopper
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Why Invest in Real Estate?
By Rebecca McLean, Executive Director of the National Real Estate Investors Association
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eal estate investment is, and always has been, one of the best ways of investing available to individuals. Real estate investing works. Real estate investing is the surest and safest road to financial freedom. In a recent article in Fortune Magazine it states that 97 out of 100 self-made millionaires have made their money today through real estate investing. In the long term, historically, Real Estate has shown a consistent growth in value, even when some other investment choices were less stable. If there is an increase in value and you are paying down your mortgage balance, it’s pretty simple: You increase your equity in the property and add to your net worth. The nice thing about investing in real estate is if you have purchased the property right – for the right price and under the correct deal structure - and maintained it properly, your residents, in effect, make your payments for you! In addition, there may be tax advantages available to you when you deal in a long term Real Estate Investment. Although there are definite limits to these potential tax advantages, they can be substantial. There are many other short term real estate strategies that have been incredibly successful over the last five years that have their own advantages. (Consult a tax or legal professional to see how your situation would be affected.) In general real estate investing allows you to: continued on page 6 Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
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How Does the New Recreational Marijuana Law Affect Oregon Landlords?
s everyone in Oregon is aware, starting on July 1st, 2015 recreation marijuana use will be legal within the state of Oregon. Whether you are for or against the use of marijuana this is something that you will have to deal with as a landlord. They have established some of the rules surrounding the use of Marijuana as I will talk about in this article, but a lot is left up for determination by the OLCC. The big question on a lot of landlords mind is if they can restrict the use of marijuana on their property. This hasn’t been officially decided yet and may never become a part of law. As it stands right now it seems that most things will follow the same rules as alcohol. Since the use of drugs and alcohol, which are not prescribed by a doctor, are not a protected class then the initial opinion is ...continued on page 4
Successful Property Managers Guard Key Relationships By Marc Courtenay
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ften in life, it’s not only what you know but who you know that can make all the difference. Knowledge is powerful, but relationships are the bedrock of the property management business. It all begins with the people we work with, the folks we depend upon, and the personnel that help keep the wheels of progress turning. Are you staying connected, in touch with your V.I.P.s? Group meetings can be useful in this regard. But there’s nothing like one-on-one time
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with your key people to really get the feel about what they’re thinking and what ideas they may be willing to share. One of my clients has lunch each month with a rotating selection of the people she relies on the most. She’s a big advocate for having a “garden filled with allies” and she keeps that “garden” nourished well. Next, if I were to ask you for a list of your most important clients, would you have it memorized? If you think about it, 80% of your business as a property manager usually comes from 20% of your clients. The
20% are your key relationships that you can’t afford to neglect. When was the last time you had coffee or breakfast with these sources of ongoing business? Do you communicate with them regularly? The other 80% of your book of clients are important, too. Make sure you have an outstanding client management system (CMS) that won’t let you forget them. A good CMS keeps people from falling through the cracks, which might make them easy pickings for your competition. Loyalty must be earned and then ...continued on page 5
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