Uncategorized October 18, 2010

Buy Vs. Rent Ratios- Seattle ranked #2 to rent!

That on October 8, 2010, Trulia released a report indicating that it is cheaper to rent than to buy in Seattle?

What does this mean for you? If your client wants to rent the property rather than lower the sales list price, this means that there is an excellent chance that rent in the current market will not cover the owner’s costs. Rents are set by the market and cannot be determined by the amount of the owner’s mortgage any more than the sales price can be based on the owner’s total mortgage debt load.

Uncategorized October 11, 2010

Cap Rate

That the cap rate is net operating income (NOI) divided by the sales price or value of the property? NOI is annual income minus expenses, before income taxes and interest.

A five unit apartment building with monthly rents of $3,750 would have a maximum gross annual rent of $45,000. ($3,750 x 12 = $45,000). If the total annual expenses were $25,200, the NOI would be $19,800. ($45,000 – $25,200)

If the sales value of the property was $450,000 the cap rate would be 4.4%. (19,800/450,000)

Uncategorized October 4, 2010

Maintenace Requests

That critical maintenance issues have to be addressed even if a tenant is behind in rent? For example, a tenant who is being evicted for non-payment of rent still has the right to a working heating system. Furthermore, while the Washington State Landlord/Tenant Act restricts the actions a tenant can take to force a landlord to make general repairs if the rent is not current, the tenant may claim that the rent hasn’t been paid because the work wasn’t done.

Uncategorized September 26, 2010

Landlord/Tenant Issues? There is free help!

That Washington State has a free advice and referral service for low-income people for civil matters, including Landlord-Tenant issues?  CLEAR has limited resources, but may:

  • Give verbal or written advice that may help solve the problem;
  • Send written legal information and/or forms to help solve the problem;
  • Try to resolve the problem through negotiation;
  • Referral to another provider of legal aid.

Contact information:

  • Outside King County: Call 1-888-201-1014 weekdays 9:15 a.m. until 12:15 p.m. 
  • King County: Call 211, 206-461-3200 or 1-877-211-WASH for information and referral to an appropriate legal services provider weekdays 8:00 am – 6:00 pm. Information on legal service providers in King County may also be accessed through 211’s website at www.resourcehouse.org.
  • Persons 60 and Over: Persons 60 or over may call CLEAR*Sr at 1-888-387-7111, regardless of income.
Uncategorized September 22, 2010

Sending Notices

That state law requires that notices mailed to tenants be mailed from the same county as where the rental property is located?  RCW 59.12.040 specifies:

When a copy of notice is sent through the mail, as provided in this section, service shall be deemed complete when such copy is deposited in the United States mail in the county in which the property is situated properly addressed with postage prepaid.