Will California Abolish Rent Control in 2008

by Michael J. O’Connor

The California Apartment Association (CAA) is actively deliberating what position to take regarding the Howard Jarvis Taxpayers Association’s proposed ballot measure: California Property Owners and Farmland Protection Act (CPOFPA) commonly known as the Jarvis Eminent Domain and Rent Control Initiative. 

This measure, if it should qualify for the California June 2008 ballot, is intended to limit both eminent domain and rent control in California.

The results of a poll commissioned by the CAA found the following results of more than 800 likely voters, Democrats and Republicans, homeowners and renters: Read the rest of this entry »

Posted by Kim Ezzell on 08.18.2008. 2 Comments »

Filed under: AAOA Forum

Sign Up For Tenant Screening Before You Need It

by Julie Murphy

One unreliable tenant can cause extreme headaches–non-payment, damages, even leading to eviction.

With the easy process of tenant screening, it’s possible those problems can be avoided.

Basic tenant screening protects your investment as a landlord against tenants who make dishonest remarks about their histories.  There are many companies online that provide these services.  It is important to choose a credible organization that does thorough checks in several categories.  Read the rest of this entry »

Posted by Kim Ezzell on 08.14.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Credit Screening

Got Renter’s Insurance?

by Ilyce Glick, Inman News

The number of foreclosures has doubled since last year. That means a lot of former homeowners are now looking for a new place to hang their hats.

Many former owners are becoming renters again for the first time in a long time. And there are new lessons to learn: You’re not quite the master of your own domain, because you merely lease the property instead of owning it. You have to live by the landlord’s or building’s rules and regulations. And, you have to remember to change your insurance coverage. Read the rest of this entry »

Posted by Kim Ezzell on 08.14.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Insurance

Will Shopping Multiple Lenders Hurt Credit?

by Dian Hymer, Inman News

It’s not uncommon for home buyers to talk with several mortgage brokers or lenders to compare loan products and interest rates. One buyer who shopped around was scolded by a mortgage broker when he found out she was talking to more than one broker. He told her that she was ruining her credit score by allowing multiple credit inquiries.

Too many credit inquiries can negatively affect your credit score, but you can control the damage. And, credit inquires make up a relatively small part of your credit score. 

For example, the FICO credit score from Fair Isaac Corp. that is widely used by mortgage companies for qualifying borrowers uses five types of information to calculate a credit score. Each type counts as a percentage of the total credit score. They are: payment history (35 percent); amounts owed (30 percent); length of credit history (15 percent); new credit (10 percent); and types of credit in use (10 percent). Credit inquiries fall into the “new credit” category, which accounts for less than 10 percent of your credit score.

Only voluntary inquiries are taken into account, such as the inquiries made at your request when you shop loan rates. Loan agents usually need to know your credit score before they can quote you an interest rate.

The FICO credit-scoring model ignores all mortgage inquiries made within the last 30 days, so they will have no impact on your credit score. An older version of the scoring formula uses a 14-day time span. A newer version uses 45 days. The lender decides which version of the scoring model it wants to use.

There’s no need to panic if you don’t line up your mortgage in 30 days. The scoring formula looks for mortgage inquiries older than 30 days. It counts all the mortgage inquiries within a certain period, which varies depending on the scoring model used, as one inquiry. For some borrowers, one inquiry might not affect their credit score at all. If it did, it should be less than five points off your score.

Let’s say you talked to four lenders during a week in May. You authorized each to check your credit. Then you postponed buying until August, when you shopped rates again within 30 days prior to closing the sale. The most recent credit inquiries wouldn’t affect your credit score. The four that were made in May would count as one inquiry.

HOUSE HUNTING TIP: Interest rates moved up about 0.25 percent during the week of June 9, 2008. And, there’s a wide range of rates being quoted. This is a time when it could pay off to shop carefully for the best rate and mortgage product to suit your needs.

For example, on June 16, one mortgage broker quoted 6.75 percent on a conforming loan (to $417,000) for a 5-year, interest-only, adjustable-rate mortgage (ARM) with no points. (One point — a loan origination fee — is equal to 1 percent of the mortgage amount). Another broker offered a 5-year ARM that is fixed for the first five years at 5 7/8 percent with no points. And, this rate was available for loan amounts up to $650,000.

Nonconforming jumbo financing for mortgage amounts over $1 million is still high — in the 8 to 9 percent range. Some buyers are achieving a lower blended rate by combining a conforming jumbo (to $729,750) with a second loan. Borrowers who have good credit and an established banking relationship with a lender might be able to arrange a preferential rate.

Before you authorize a credit check, find out what kinds of mortgage products a lender offers and provide a brief summary of your financial situation. Try to focus your rate shopping within a 30-day time period.

THE CLOSING: Don’t authorize a credit check until you’ve narrowed your search down to likely prospects.

Dian Hymer is a nationally syndicated real estate columnist and author of “House Hunting, The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide,” Chronicle Books.What’s your opinion? Leave your comments below or send a letter to the editor. To contact the writer, click the byline at the top of the story.

Copyright 2008 Dian Hymer. Distributed by Inman News

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Tags: protect+your+credit, landlords, landlord+associations, apartment+owners+associations

Posted by Kim Ezzell on 08.14.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Financing

Lower Your Electric Bills Now

Every time you start up an appliance that runs on a motor, electricity is drawn into your home. Your meter spins, tracking usage, and your bill is calculated on that amount.  But not all of the electricity that is metered is actually used.

A lot of it is wasted. You’ve paid for it, but it never gets used in your home or business. 

“Power factor” is the term that describes the percentage of electricity that’s delivered inside and used effectively, compared to what is wasted. For example, a 1.0 power factor means that all the electricity that’s being delivered to your home is being used effectively for its purpose. However, most homes in America today have a .77 power factor or less. This means that 77% of the electricity that is coming through your meter at your home or business is being used effectively, the other 23% is being wasted. With a low power factor, the utility has to deliver more electricity to do the same work. Read the rest of this entry »

Posted by Kim Ezzell on 08.11.2008. 1 Comment »

Filed under: AAOA Forum, Make Extra Money

Want a Fancier-Looking Room? Try Wainscoting

by Paul Bianchina, Inman News

One way to really dress up a room and try your hand at some different decorating techniques is to consider wainscoting. There are a number of ways to combine materials to create some very attractive wainscoting effects, and the cost doesn’t need to be prohibitive.

Traditionally, wainscoting is tongue and groove boards or raised or flat paneling sections that are applied to the lower part of a wall. The wainscoting extends from the top of the baseboard up to a height of usually between 3 and 5 feet off the floor, and is topped off with a horizontal molding. In addition to its decorative appeal, wainscoting had the very practical advantage of protecting the lower portion of the wall from wear and tear.  Read the rest of this entry »

Posted by Kim Ezzell on 08.10.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum

New Solutions For Getting Your Home Sold

by Tara-Nicholl Nelson, Inman News

Q: I need to get my home sold — now. It’s in great condition, but it has been sitting on the market for months. I’ve reduced the price to where my Realtor thinks it should be.

Do you have any out-of-the-box suggestions for moving my house?

A: Welcome to the wonderful world of real estate in 2008. You are not alone — sellers across the country are struggling to figure out what they can proactively do to unload their homes.  Read the rest of this entry »

Posted by Kim Ezzell on 08.10.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Property Sales

Clearing the Air: Smoke-Free Apartments

by Matt DiChiara, My New Place

When renting an apartment, one usually feels as though they are free to do as they wish, as long as it is within the bounds of reason, legality and the terms of their rental agreement.

Whether renting an apartment or owning a house, everyone wants to feel like the king or queen of their respective castles. Smoking, however, is a contentious subject; should one be allowed to smoke in his or her own apartment?

According to a recent article in Units Magazine, apartment owners are favoring a more restrictive policy when it comes to smoking and are seeing happier tenants and a higher demand for their smoke-free apartments as a result. A survey done by the Portland-Vancouver Metro Area Smokefree Housing Project found that 75% of renters prefer smoke-free apartment buildings and half would pay more for smoke-free communities. Read the rest of this entry »

Posted by Kim Ezzell on 08.10.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Marketing Vacant Units

Put Part-Time Rental Cash in Your Pocket

by Tom Kelly, Inman News

It’s the time of year for weddings in faraway churches and family reunions in relaxing places. Perhaps friends (or friends of friends) have approached you about renting your home or vacation cabin when you are not using it this year. And, they are willing to pay — an amount in line with the best rental properties in the area.

Do you have to declare the income to the Internal Revenue Service on your annual income tax return? How much is too much before crossing into different tax threshold? Read the rest of this entry »

Posted by Kim Ezzell on 08.07.2008. CLICK to Leave a Comment »

Filed under: AAOA Forum, Make Extra Money

Granite Countertops Get Fifteen Minutes of Fame

by Louisa May

Andy Warhol would have loved this. The late American artist coined the phrase, “fifteen minutes of fame.” He was referring to the fleeting condition of celebrity that attaches itself to an object of media attention briefly until our collective short attention span moves on to something new.   

 The last week of July, our attention was focused on the dangers of radon gas seeping from granite kitchen countertops. It started with a New York Times newspaper article appearing in the July 24, 2008 Home and Garden section titled, ” What’s Lurking in Your Countertop?”

Catching consumers’ attention were the two homeowners featured. They were concerned with higher than normal radon emissions from their granite countertops. Granite is a naturally occurring igneous rock, and it’s possible for any piece of granite to contain varying concentrations of uranium. Radon is a naturally occurring, colorless, odorless gas generated by the decay of trace amounts of uranium, and its presence in indoor air is considered a health hazard.   Read the rest of this entry »