Livable Content Team

As a Housing Provider, managing expenses is an essential aspect of maintaining a healthy return on your investment and ensuring long-term success. One area where costs can add up quickly is utilities, such as electricity, gas, wifi access, sewer, trash collection and – especially – water. Utility costs continue to rise and water bills have shot up dramatically over the last several years in many areas. 

By encouraging your Residents to conserve any master-billed utilities, you can not only reduce operational costs but also contribute to environmental sustainability. Read on for effective strategies to motivate Residents to conserve utilities, ultimately saving everyone money.

By Dwight Kay, Founder and CEO, Kay Properties and Investments

Forward:
As one of the nation’s leading expert real estate investment firms specializing in Delaware Statutory Trust investments, Kay Properties is regularly asked about the nuances and strategies surrounding Delaware Statutory Trust investments for 1031 exchanges or direct cash investments. Recently, I sat down to discuss some of Frequently Asked Questions investors ask regarding Delaware Statutory Trusts and 1031 exchanges. I recorded and transcribed this informative article, so investors can have easy access and use it as a reference for their own Delaware Statutory Trust and 1031 exchange questions.

I believe this is a “must-read” interview for any potential investor because I provided a straight-forward and direct answers to the most frequently asked questions regarding Delaware Statutory Trusts.

Key Takeaways:

• What is a Delaware Statutory Trust (DST)?
• How does the Delaware Statutory Trust Differ from a Tenant in Common (TIC) Investment?
• Are Delaware Statutory Trusts Eligible for 1031 Exchanges?
• How are the Proceeds from Delaware Statutory Trusts 1031 Properties calculated?
• What is the Typical Hold Period for Delaware Statutory Trust properties?
• Can you 1031 Exchange out of a Delaware Statutory Trust?
• What are Some of the Advantages of Delaware Statutory Trusts?
• What are Some Examples of Delaware Statutory Trust 1031 Properties?

Instead, try making it easier to build more housing!

STEVEN GREENHUT

Several California Assembly members this year introduced a constitutional amendment that declares housing a “fundamental right.” Who knew? Lawmakers have wrestled with innumerable complex issues over the years, but finally someone realized that all they needed to do to magically solve any problem is to pass a new “right” to something.

Expected soon: constitutional amendments declaring “rights” to a million dollars, to a brand-new electric SUV, and to a dog that’s properly housebroken. Sorry for the facetiousness, but Assembly Constitutional Amendment 10 epitomizes the lack of seriousness we’ve come to expect from the Legislature. Actually fixing the housing problem is a tough slog.

By Kari Negri, Chief Executive Officer, SKY Properties, Inc.

• Dear Kari, how should I handle allowing tenants with pets?

In recent years, a remarkable trend has emerged that is reshaping the way we view pet ownership—the rise of the millennial “Paw-rent.” With millennials’ unique values, lifestyle, and priorities, they are leading in a new era of pet companionship that reflects a deep connection with their furry friends. Gone are the days when pets were simply seen as “man’s best friend” or mere companions. For millennials, pets have become cherished family members, their babies, confidants, and sources of comfort in an increasingly fast-paced and interconnected world.

By Austin Bowlin, CPA

Internal Revenue Code section 1031, which establishes the transaction structure referred to as a 1031 Exchange, is one of the most advantageous sections of the US tax code. A 1031 Exchange allows for the deferral of taxes when investment property is sold in conjunction with the purchase of another replacement property. The tax savings alone is reason enough to justify a 1031 Exchange — but there are secondary benefits that can often be even more valuable.

As a wealth-building tool, a 1031 Exchange gives investors access to a property’s appreciation to increase buying power without a tax penalty. Armed with more buying power, investors can purchase quality assets, expand their portfolio, diversify into new property types, and even adopt a new ownership strategy.

By Livable Content Team

Single-family homes, duplexes, multifamily complexes and businesses have traditionally fought for idyllic lawns with the aim of causing envy among neighbors and passersby. But at Livable, we think we have a better idea! 

It’s time to level up and consider trading the battle of lawn envy for a healthier, more colorful and more sustainable option: building a garden. Replacing lawns with gardens is a fantastic option for a better environment and overall way of living. Check out our reasons for installing a garden over the manicured grass, plus suggestions for the kind of garden you could opt for. Now is the time to start planning for an amazing garden this summer! 

Kimball, Tirey & St. John LLP

June 2023

1.  Question: How can we determine if the roaches in the apartment were the result of bad housekeeping?  Is it our responsibility to get rid of the roaches?

Answer: Ask your pest control professional to give their opinion.  The court will rely heavily on expert testimony in these cases.  If you can prove the tenant was responsible for the infestation, they are responsible for the pest control cost. Landlords are responsible to make a unit habitable, which means free from pest control issues.

California voters may soon have to decide whether to enshrine a “right to housing” in the state constitution.

Assembly Constitutional Amendment 10 provides, in its entirety:

“The state hereby recognizes the fundamental human right to adequate housing for everyone in California. It is the shared obligation of state and local jurisdictions to respect, protect, and fulfill this right, on a non-discriminatory and equitable basis, with a view to progressively achieve the full realization of the right, by all appropriate means, including the adoption and amendment of legislative measures, to the maximum of available resources.”

By Steven Greenhut

SACRAMENTO — It didn’t take long for my predications of an insurance crisis to come true.

In my American Spectator column in January, I predicted that California’s “rigged” insurance market was careening toward a crisis and leading “some companies to pull out of the state or, at least, to reduce their activity here.” In March, I wrote in the Wall Street Journal that “[i]nsurance companies are quietly fleeing California” as the state’s price controls leave consumers “more vulnerable to disasters.” These facts have been obvious, especially after recent wildfires.

On Friday, State Farm General Insurance Co. — the state’s largest insurer, which writes more than 20 percent of homeowners’ policies — announced it has stopped writing new policies in California but will service existing ones. The company still has to deal with the California Department of Insurance, so it was careful in its announcement. Its action, it said, was “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.”

Before COVID reared its ugly head, our office would typically field calls from worried housing providers who were owed one, two, or perhaps three months of rent. Every now and then, however, we would encounter clients who were owed tens of thousands of dollars in rent. In these cases, the first thought that crossed our minds was, “Why have you been sleeping behind the wheel so long?”

Fast forward to today and it is commonplace for tenants to owe tens of thousands of dollars in rent debt, some with a genuine hardship and others who are gainfully employed with the means of paying rent but refused to pay simply because they were shielded by eviction moratoriums.