Blog > Blog > Archive by category 'Apartments and Landlords'

March 5, 2010 at 5:04 pm

Over the past few years, the St. Louis Board of Alderman have debated the prospected of a vacant property registration system numerous times. One bill almost passed about a year ago. Not taking no for an answer, Alderwoman Kacie Starr Triplett brought the issue back up recently. The new bill corrected many of the issues with the previous versions, but many in the real estate industry felt the bill still had unfair aspects.

Apparently, the Board of Alderman did not agree. I have been unable to officially verify this, or who specifically voted for it, but the bill passed this morning. From now on, whenever a property is vacant in the City of St. Louis for at least six months, and has recorded code violations, it must be registered with the City. The owner must provide their contact info and pay an annual $200 fee.  The provided information will then be placed on a  publicly available database. There will be some exceptions to this, but I still don’t know at this point if there were any last minute alterations to the bill before it was passed. Check back for more details and implications soon.

For more, check out the official Bill #322 website.

February 26, 2010 at 8:24 pm

A drive down the streets in the City of St. Louis after dark can be a telling thing. Some streets that seem great during the day show a different face at night. One of the most telling things about an area during the night is not the curb appeal of a house, but the quality of  lighting along the street.

As a property owner, you don’t really have much too say about the streetlights, but lighting your own property is totally within your control. Having a reasonable wattage light fixture on your porch and/or in other places in your front yard can do wonders for not only your property, but the entire block. The more houses on a street with good lighting, the safer the street feels.

Better lighting also makes it harder for would-be burglars and robbers to hide in the shadows. I encourage you to leave these lights on all times after dark, whether anyone is home or not. Perhaps install a light sensing fixture that turns itself on. If you use something like that it conjunction with a florescent light bulb, the costs will be low too.

I tried to take some example pictures of this affect for comparison, but nighttime pictures are a little tricky to get perfect exposure-wise. If you won’t take my word for it, drive through a few neighborhoods after dark for yourself sometime. I think you’ll agree, a few lights make all the difference.


February 26, 2010 at 3:00 pm

When renting apartments and selling multi-families, I have never really been able to figure out which people prefer: a first or second floor apartment. On one hand, the first floor apartment is usually easier to move furniture into and doesn’t require you to climb a flight of steps every time you come home. On the other hand, second floor units are usually safer because the windows are not reachable from the ground. They also tend to be quieter since you don’t have anyone above you.

My assumption has always been that the preference is slightly in favor of upper level units, but I am curious what you think. Which do you think is better? Please feel free to share explanations in the comment section.

When choosing an apartment, do you prefer a first or second floor unit?

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February 17, 2010 at 5:55 pm

If you’re new to landlording or could use a refresher, the University of Missouri St. Louis will be holding a 6-hour Landlord Training class this March.

Here is the basics on the course:

The University of Missouri–St. Louis Division of Continuing Education and its Center for Entrepreneurship & Economic Education announces the Landlord Training Program, a two-day, six-hour program leading to success in the rental housing business.

The program is from 6:00–9:00 p.m., Thursdays, March 4 and March 11. The seminar will be located in Clayton, MO, at the World Trade Center Building, Room 1009, 121 South Meramec (at Bonhomme). The registration fee is $70, which also includes a 500-page landlord resource book. Registration deadline is March 2.

Whether you’re a first-time investor or an experienced landlord, this course will teach useful, practical information that will help improve the bottom line. Participants will learn how to determine if a property is a good investment, find and select quality tenants, write proper leases, avoid housing court, and protect the investment. A Q&A session at each seminar will further aid the learning process.

Instructors include Don Benski and Tim Kanke of the St. Louis Real Estate Investors Association and Joseph O’Connell of the St. Louis County Neighborhood Preservation.

For more information, or to register, please visit the Landlord Training Program Web site or call (314) 516-5974.

February 16, 2010 at 12:59 pm

If you have ever rehabbed a house, rented out an apartment, or even simply lived in the City of St. Louis for any period of time, you are well aware of the ridiculous amount of red tape that the City throws up around just about every issue. A lot of it is necessary, but the implementation has always been wanting.

The Post Dispatch featured a very interesting article on this topic in this morning’s paper. It involves a property at 3500 Missouri in Marine Villa that the City took from an owner. If you haven’t checked it out, its worth the five minute read.

St. Louis City takes 3500 Missouri away from owner

February 8, 2010 at 3:51 pm

One of the most important things every investor needs to do before purchasing a property is a profitability analysis. At first glance, many deals seem great, but upon further review turn out to be less than ideal. You just can’t tell for sure until you do the numbers. That’s where this spreadsheet might come in handy.

If you have Microsoft Excel (or OpenOffice), this financial spreadsheet will do the analysis for you.  I find particularly useful when scrutinizing deals as you can quickly determine if a property is worth further research by simply plugging in a  few numbers. Simply enter the rents, expenses and financing and it figures out how profitable the investment will be. Of course, this is a very simplified spreadsheet. It does not account for major repairs, appreciation or tax benefits. However, it should give you a realistic snapshot of an investments potential.

I like to pay particular attention to both cash-on-cash return, which consider real-world financing scenarios, and the always popular cap rate.  The percentage cash-on-cash return tells you how much money you will get back in a given year for the money you put it, while the cap rate is the yearly return assuming the property was purchased with cash.

You can download this spreadsheet for yourself by clicking on this link: Rental Property Analysis. Hope it comes in handy.  If you have any questions or comments of the spreadsheet, please contact me.

February 4, 2010 at 1:16 pm

Filling vacancies in your apartment units quickly can be the difference between success and failure with real estate investments. Looking for tenants anywhere you can find them increases your odds of success, but never forget that not all situations are equal. One area to be especially careful of is when working with renting to family members. I am not talking about renting a unit to a member of your own family, although that can be an issue as well. I am referring to the situation where you have a vacancy in your upstairs unit and the downstairs tenant refers their cousin Billy as a potential renter.  Should you run across this situation I just have one simple thing to tell you: “Be careful.”

The first thing to ask yourself is whether the tenant doing the referring has been a good tenant. If they haven’t, a referral from them should be avoided. If they have been exemplary, it might be worth giving the person a shot, but make sure you run your normal background checks and that the person truly qualifies.

Even if they do, just use good judgment on how you handle things. I have been witness to a few horror stories where two or more units in a building were rented by family members, who seemed to think that since they knew each other that they could do anything they wanted. Keeping discipline in an apartment building can be a challenge in an situation, but things like these can make things even more murky.

You also can face problems if the referrer or referee family member defaults on their lease and you have to evict them. Some tenants might not blame you at all if you evict their relative and they deserve it, but others might walk out on their lease along with their departing kin.

The morale of the story is simply to be aware that things can be too to be true in the world of property management. Should you encounter a situation such as this, just make sure you consider the baggage that comes along with taking on related tenants.

December 29, 2009 at 7:00 pm

Being a landlord or rehabber can be a tough business. Juggling tenants and repairs are a struggle in their own right, but sometimes the most stressful things can less tangible. For instance: keeping up with occupancy codes. And as of late, the City of St. Louis has been rabid in their enforcement.

In the past couple months I have personally experienced incorrect condemnation warnings and heard similar stories from numerous clients. As any City-investor knows, just about any property in a Housing Conservation District needs to be inspected by the City of St. Louis before it can be occupied. These inspections need to occur whenever there is a change in property ownership or a new tenant moves in. Simple enough right?

The problem is that one of the ways the City polices these changes is utility bills. If the gas, electric or water bill user switches at a property it is often as evidence of one of these changes. A warning is typically sent to the property owner followed by eventual condemnation if the owner does not comply. And when accurate, I have no problem with this. The trouble is that the system is not always inaccurate. Read more

December 8, 2009 at 1:08 pm

I had a little debate with a client yesterday about ceiling fans (Don’t I lead a glamorous life?), and it has me wondering what most people think of them. When buying a house or renting an apartment, what are your feelings towards ceiling fans? Are they a perk or an eyesore? Read more

November 11, 2009 at 9:19 pm

It’s 5:30pm and you just got home from work.  Your iPhone alerts you to an email you just received from a perspective tenant. It just wait until the morning can’t it? Not if you want to rent your unit to a good tenant ASAP. Read more

September 10, 2009 at 6:18 pm

Landlords of Missouri, it is time to celebrate. Common-sense has finally won the day in terms of our eviction law. From now on, when an eviction occurs, there is actually a legal pathway to removing the tenants property thanks newly signed Senate Bill 231. Read more

September 8, 2009 at 6:40 pm

When it comes to trees in the city, it is amazing how unaware people are. Take the tree lawn in this picture. These recently planted maple trees are wrong on so many levels: too large a species to be planted so close to a building, too small a tree-lawn to support the tree, and most importantly… they are planted UNDER A POWERLINE! Read more

August 31, 2009 at 1:10 pm

Last night at 2am I got a surprising wake-up call: the alarm was going off at my rehab project in Tower Grove South. The police were already there and requesting a key-holder to come over. Upon arriving on the scene I witnessed the sobering site of a backdoor kicked in. Read more

August 27, 2009 at 1:13 pm

Dealing primarily with the foreclosure market in the past two years, lately I have been involved in many Fannie Mae transactions as both a buyer’s agent and a buyer. Unfortunately, although they are often some of the best deals on the market, that fact might be changing. If you are a real estate investor, Fannie has now stacked the deck against you. Read more

August 21, 2009 at 12:29 pm

Frequently visiting vacant, sometimes unsecured buildings, I must admit that at times I have been quite uneasy when entering a property. Especially by myself. That’s why I bought a mace gun. Read more

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