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 by Ted Karsch
The commercial real estate market, including retail malls, multifamily buildings, office buildings and other non-residential buildings has already been hurt by falling prices, unemployment, economic decline and foreclosures. However, as already mentioned, commercial real estate includes many different property types, which perform differently under the same economic conditions. For example, retail malls have been adversely affected by numerous issues such as the credit crisis, lower consumer spending, retail competition from the internet and changing consumer behavior. These economic factors that have already caused the bankruptcy of major malls across the United States may not have the same affect on the multifamily real estate market due to the fact that the demand factors influencing apartment buildings are completely different from those of a retail mall. In fact, some of the issues now hurting retail malls could actually increase demand for affordable multifamily housing.
by Glenn Fydenkevez
 Conventional financing through traditional lending institutions, such as commercial banks, Wall Street brokers and major insurance companies, is becoming very difficult to find. Banks and other conventional lenders have tightened their lending standards significantly and are caught up in the credit crunch. In many cases they can’t make a loan even when they want to.
There is a very severe lack of liquidity in the major financial markets. One consequence of the banking crisis has been that more and more commercial real estate investors are turning to private, often called “hard money” lenders. Hard money commercial mortgage loans have become a primary source of funding for property owners, investors and developers all over the country. Rent it Right
Janet Portman, Inman News
I signed a one-year lease with the new tenants, then learned that my daughter and her husband lost their jobs and need to move.
I want to offer them this unit rent-free, and I’m prepared to pay the new tenants what it takes to find another unit, and even any additional rent for a comparable place. But they insist that they have the right to move in, because “a lease is a lease.” Can they force me to go through with the lease? –Arnold S.
Maybe it’s the remains of a remodeling project. Paying the construction contractor to haul it is expensive. Hauling it yourself is expensive. Even storing a dumpster is expensive. With all the regulation on disposal, these abandoned items are not easy to get rid of — and it’s only getting harder. That stands in the way of making money on your real estate investment. Performing regular maintenance on your cooling and heating systems saves energy and extends the useful life of these expensive appliances.  Energy efficiency expert David Lowe offers these tips to keep your systems in top condition:
Quick Tip #15: Hitting the Mark
 Determining the appropriate rent to charge has always been a matter of science– and target practice. You know that the figure you chose is too low if you are getting a flood of calls on your ad, and too high if only problem tenants are calling you. In today’s market, with both the high vacancy rate and high unemployment, property managers are reporting they are getting fewer applicants.
You need to set the rent with precision accuracy to maximize your chances of filling a vacancy without scaring away good prospects. To do that, you need to know what your market is. That requires a little research:
If your price is right, but the market is slow in your area, now may be the right time to consider upgrades or amenities that offer incentive for new applicants, as well as steps to retain your existing tenants.
You may also want to encourage referrals from existing tenants.
For more, see our feature, Offer Incentives, But Don’t Give Away the Farm.
How do you set the rent? Share your comments below.
See last week’s Landlord Quick Tip.
Do you have a tip to share with other landlords? Email our editor at kim@joinaaoa.org.
American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa.
To subscribe to our blog, click here. Easter Bunny Tenant to Appear on Colbert?
 You may remember our eviction story, Landlord Gives Easter Bunny the Boot. When a tenant set up a display of Easter Bunny Peeps on her interior door, no one bothered her. But, when she left it there for a couple weeks past Easter, the landlord became concerned that the sugary decorations would attract pests and posed a hazard to other tenants.When they asked her to take it down, the tenant refused, claiming she had the support of her neighbors. When the landlord took it down for her, she responded by refusing to pay her next month’s rent. She has since moved out.
Vacancy Numbers May Be 2.2 Times Worse Than Reported
 On Wednesday, July 8, 2009, the Wall Street Journal reported that apartment vacancies had risen significantly, to a 22 year high. This report used statistics furnished by independent research firm Reis, Inc.But a different research company, Axiometrics, Inc., reports that its findings are far worse.
Axiometrics claims superior methodology in its survey of apartment rental growth rates. It’s research includes a larger percentage of properties surveyed, as many as 20,000 surveys per month. In addition, Axiometrics compares the same properties from one measurement period to the next. The same property is surveyed both first quarter and second quarter, for instance.
Despite Lease, Landlord May Have to Pay for Tenant’s ‘Accidental’ Damage by Janet Portman, Inman News Q: My landlord has demanded that I reimburse him for the cost of repairing damage that was caused by a fire in my apartment. Here’s what happened:
The landlord admits that it wasn’t my fault, but claims I’m responsible, because my lease has a clause that says I’m liable for the results of my acts (”Lessee shall be liable for all damage to the premises and appliances and equipment belonging thereto, in any way caused by the acts of lessee, lessee’s occupants, guests and invitees”). This doesn’t seem right — and besides, doesn’t he have property insurance to cover just this sort of thing? –Wendy C.
Not All Woods Absorb Stains the Same
by Paul Bianchina
 Q: First-time homeowner and first-time stainer here! I had a small porch made out of untreated wood built last summer that I would now like to stain.
I like the redwood look I see throughout the neighborhood, what I think of as the most common color of stain around.
I purchased two sample packets of stain, both by Olympic. One was a toner and one was a semi-transparent version of the same redwood color. I applied them both to a piece of wood leftover from my porch and they both went on like a watercolor paint — very thin, very clear and not deep colors at all. I feel it colored it maybe only a shade darker than what the natural wood is.
I do realize this wood is not the optimal wood to build with, but it has got to be stainable! (Please tell me it is!) Do you have any suggestions as far as getting a deep red/brown coloring to soak in the wood and give it the rich look? Is there something I’m doing wrong? Is there a better stain for this type of wood, or do I just start considering paint? Any suggestions would be great.   Add Super Saver to any membership for only $ 19.95! 
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While the turmoil in the residential real estate markets continues to make headlines, some analysts and prognosticators are questioning whether we will see the same kind of meltdown and mass foreclosures in the commercial real estate side of the industry. And the general consensus of those quoted in various news services and website across the United States is not good.
Q: I’m in a bit of a bind. I own a unique, lovely duplex (we live upstairs) that I easily rented in our town of few rentals and high demand. 
There’s the tenant who ‘forgot’ his trashed furniture and personal items when he moved out, or the previous owner who never cleared out the property before he abandoned it to foreclosure.
I purchased a hair dryer, used it once, and left it plugged in (but turned off). The dryer’s switch must have been defective, because somehow it turned itself on during the night and ignited. 
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