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During the introductions and reports from various brokers, the same message became clear;

  • Our recession will probably not stabilize until 2011 or 2012 depending on your optimism.
  • Lenders reiterated the return of the Recourse loan
  • Apartment rent increases are mixed; outlying areas are soft, while areas with high barriers to entry remain strong and continue to increase.
  • An Exchange Accommodator discussed the importance of choosing your TIC sponsor carefully as DBSI, Spectrus Real Estate recently declared bankruptcy

Ken Orvick of Orvick Management was the guest speaker and shared with the group his insight into the apartment market. Most notably; Vendor costs are increasing! Rents are strong and Ken expects 3% to 4% growth in 2009. That said, Ken admitted that studios were more difficult to rent and the number of non payers was on the rise. Ken emphasized NOT to allow tenants to place air conditioning units in the bedroom windows. It is a fire hazard as the bedroom window is considered a primary exit as by the fire department. A discussion on mold emphasized not to ignore your tenants request for assistance. Easy fixes include; pulling the bed away from the wall to allow air to circulate. Always caulk bathroom joints between tenants and consider timer switches on the bathroom fans- the longer a fan runs, the less humidity is trapped in the bathroom.

I welcome your comments and feedback. Thank you to my listeners and readers for providing their feedback. To learn more about my background, visit Consult Pete. To learn more about my company strategy, visit Commercial MasterMinds.