News: Real Estate, Risk, Economics. Aug. 30, 2014

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Table of Contents
(Click to sections below.)

1) How To Make Sure Your Properties Will Attract The Right Tenant | Backlog of business

2) Florida condo owners being forced out make plea to governor

3) Longmont City Council votes unanimously to appeal judge's decision on fracking ban – Longmont Times-Call

4) Lafourche Parish approves tougher dog ordinance – Washington Times

5) North Las Vegas bulldozing blighted homes that are crime magnets – Las Vegas Sun News

6) Texas proposes tougher rules on wells after quakes – SFGate

7) The Next Wave in Video Marketing For Your Property: Hyperlapse – Multifamily Blogs

8) Exterior Painting Prep Checklist – Sound Painting Solutions

9) FICO 9 got it wrong (in my opinion) – The Credit Guy TV

10) mainly macro: Eurozone delusions

11) Economic history: Germany's hyperinflation-phobia | The Economist

12) Grand Central: Fed Job Index a Year Away From Normalcy – Real Time Economics – WSJ

13) Evictions Soar in Hot Market; Renters Suffer – NYTimes com

14) Real Estate Weekly – Blog Archive – Foreign investment in US real estate widely underreported

15) Apartment Rent Growth Levels Soften in Richmond – YouTube

  1.    How To Make Sure Your Properties Will Attract The Right Tenant | Backlog of business

    Whatever you decide to do, make sure that you have a decent landlords insurance policy to back you up, because if things do go wrong, then having the financial backing from insurance means that you can afford to get your property back in working order and rented out again.

    Add your comment.


  2.    Florida condo owners being forced out make plea to governor

    "Madison Oaks Partners has made a generous offer to the attorney representing a group of individual condominium owners at Madison Oaks, and we are awaiting a response. The partnership continues to exercise its contractual rights pursuant to the Madison Oaks Condominium Declaration. We would like to reiterate that we are not violating anyone's rights in pursuing this termination; we are simply exercising our rights as provided for in the Condominium Declaration."

    State Rep. Carl Zimmermann, who failed earlier this year to pass legislation that would change the law, sent an open letter to Scott this week. He called it, "a matter of great urgency" that requires, "immediate action."

    "We can't do anything as a legislative body until we go back in session, which is in March, and what I want him to do is simply issue an executive order to the Department of Business and Professional Regulation, telling them not to approve any more conversions until we have definitive word from either the courts or the legislature on whether and how this can be resolved," said Zimmermann.

    Would an executive order like that be constitutional in Florida?

    Add your comment.


  3.    Longmont City Council votes unanimously to appeal judge's decision on fracking ban – Longmont Times-Call

    Applause and a standing ovation greeted the 7-0 vote Tuesday night by the Longmont City Council to appeal Boulder County District Court Judge D.D. Mallard's ruling in July that said Longmont had no right to ban fracking within its city limits.

    Add your comment.


  4.    Lafourche Parish approves tougher dog ordinance – Washington Times

    Under the new ordinance, owners of dogs declared dangerous or vicious are required to hold liability insurance, pay breeding fees and have their animals micro-chipped.

    Add your comment.


  5.    North Las Vegas bulldozing blighted homes that are crime magnets – Las Vegas Sun News

    North Las Vegas officials are taking a cue from their Rust Belt counterparts and bulldozing abandoned homes that have become magnets for criminal activity, squatters and fires.

    Asbestos-removal and demolition began last week on some of the 20 homes slated for removal. City officials said the empty lots will be an improvement over the gutted, boarded-up houses scattered in North Las Vegas' older neighborhoods.

    Add your comment.


  6.    Texas proposes tougher rules on wells after quakes – SFGate

    In Texas, where earthquakes were all but unheard of, the Railroad Commission has hired a seismologist in part to calm residents from two small towns west of Dallas experiencing unprecedented swarms.

    Add your comment.


  7.    The Next Wave in Video Marketing For Your Property: Hyperlapse – Multifamily Blogs

    Not bad.

    I am a huge fan of video for marketing apartments, with one of my favorite companies being ShowMyProperty.tv, and now, there is another tool that you all will definitely want to check out! The system is called Hyperlapse, developed by Microsoft, and will be an amazing way to create time lapse videos of the areas around your communities, or possibly even within your communities. This video explains the process, and I hope you can see the possibilities of creating videos for apartment communities:

    Add your comment.


  8.    Exterior Painting Prep Checklist – Sound Painting Solutions

    This is not a plug. We just like the informative content.

    Add your comment.


  9.    FICO 9 got it wrong (in my opinion) – The Credit Guy TV

    The change that FICO made to FICO 8 was good although, with FICO 9 I think FICO went the wrong direction. Here is why, if you have a paid collection on your credit report it will no longer (in the FICO 9 version) count toward your credit score.

    The problem with that is that FICO Credit Score predicts the likelihood that you'll pay in the future based on your past history. If FICO remove a paid collection completely out of the scoring model there will be an over appraisal of that particular borrower. FICO is skewing what would otherwise be a negative score, up higher than it should be. The person with no collections is a different risk than somebody who had collections and paid them off recently.

    Add your comment.


  10.    mainly macro: Eurozone delusions

    Simon Wren-Lewis goes after Germany and rightly so.

    Monetary policy is not working because of the liquidity trap, so we instead have average Eurozone inflation at about 0.5%, with Germany at 1% and France/Italy at nearer zero. That implies a huge waste of Eurozone resources. That waste can be avoided, in a standard textbook manner, by at least suspending the Stability and Growth Pact (SGP), and preferably by a coordinated fiscal stimulus.

    Why is this not happening? There are two explanations: ignorance or greed. Ignorance is a non-scientific belief that fiscal stimulus cannot or should not substitute for monetary policy in a liquidity trap. Greed is that Germany wants to avoid having 3% inflation, because it controls fiscal policy.

    … inexplicable is that the rest of the Eurozone is allowing Germany to get away with it.

    Inexplicable is that Germany thinks it's doing what is best for Germany.

    Germany would be far better off raising all boats in Europe rather than worry about hyper-inflation, which wouldn't happen if Germany spread the wealth around making the whole of Europe richer, including Germany itself.

    Add your comment.


  11.    Economic history: Germany's hyperinflation-phobia | The Economist

    Deflation is now a greater risk than inflation in Europe. The euro zone's underlying or "core" inflation rate is now as low as just 0.8%: the lowest level in the short-life of the single currency. Britain and America, by contrast, have yet to suffer from destabilising levels of inflation because of reflationary policies like quantitative easing. Neither it is clear that the same set of policies that the German public credits for its economic and political stability will work in places like Greece or Italy, with very different structural contexts. A selective memory of the past may prove worse than no memory at all.

    Add your comment.


  12.    Grand Central: Fed Job Index a Year Away From Normalcy – Real Time Economics – WSJ

    An index of labor market conditions watched by Federal Reserve Chairwoman Janet Yellen is on track to return to long-term norms in the second half of 2015 — about when many Fed officials say they expect to start raising short-term interest rates.

    The index, produced by the Federal Reserve Bank of Kansas City, aggregates 24 indicators of labor market conditions and assesses how far they are from their long-term averages going back to 1992. The indicators include measures inculding long-term unemployment, the rate at which individuals quit their jobs, the labor force participation rate, and surveys of job availability and expectations.

    Ms. Yellen cited the index in her speech in Jackson Hole last week as evidence that the unemployment rate — at 6.2% in July — overstates the amount of improvement in the broader labor market. (See footnote 14.)

    Kansas City Fed economists Craig Hakkio and Jonathan Willis say their index is more in line with a jobless rate of 7.1%.

    Add your comment.


  13.    Evictions Soar in Hot Market; Renters Suffer – NYTimes.com

    Perhaps the simplest explanation for the rise in evictions is a severe shortage of rental housing caused by a lack of new construction during the recession and the wave of foreclosures that turned homeowners into renters and occupied housing into abandoned blight.

    A vast majority of renters live in cities, but evictions are not limited to urban settings. Rural areas like western Oklahoma, where an oil and gas boom has increased demand for housing, have also seen an increase in eviction filings.

    The rising demand for, and tight supply of, apartments means landlords can now afford to be more exacting in their standards, if not outright aggressive in replacing renters with those who can pay more.

    As a society, we're not building enough affordable housing, plain and simple. Generally speaking, people shouldn't have to move because housing gets tighter.

    Housing shouldn't get so tight; or special arrangements should be made to keep people in their rental units, barring simple solutions well within the renters' control, such as getting readily available work the renters can perform. Construction should be kept up with demand as much as possible.

    It is just callous and shortsighted public policy to throw out the mentally unstable and the poor who can't find high enough wages and others whose problems are beyond their reasonable control.

    Add your comment.


  14.    Real Estate Weekly – Blog Archive – Foreign investment in U.S. real estate widely underreported

    …despite the focus on foreign investment and the splashy headlines, the media have only managed to report on the tip of the iceberg — the actual amount of foreign capital pouring into U. S. real estate is vastly underreported.

    An increasing number of U.S. real estate companies such as Blackstone, Tishman Speyer, Brookfield and General Growth Properties are sending executives on frequent trips overseas — from Europe to the Middle East to Asia — in an attempt to woo potential foreign investors into becoming limited real estate partners on various projects in the United States. Significant foreign resources are being quietly invested in domestic asset and property managers as well.

    Add your comment.


  15.    Apartment Rent Growth Levels Soften in Richmond – YouTube

    Richmond's economy has recovered all the jobs lost in the recession. Apartment occupancy rates have been consistently solid. But apartment rent growth levels have slipped — counter to the national norm.

    Add your comment.


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