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Memphis, TN

What Is A No Fault Eviction?

July 20, 2016 by Kevin

The term “No Fault Eviction” has become a rather hot term in the headlines lately. Teachers in San Francisco want protection from them. Across the Country in Boston tenant groups are asking the city to stop landlords from using them.

But what is a “No Fault Eviction?”

How do they work?

And why are people suddenly getting so upset about them?

A so called “No Fault Eviction” is an eviction where the tenant is evicted through no fault of their own. They paid their rent on time. They followed the rules. However, the landlord has decided at the end of the tenant’s lease term that he no longer wishes to rent to that tenant. He has chosen not to renew the lease or let it run on perhaps on a month to month term.

If the landlord chooses not to renew the lease, he will ask the tenant to vacate the property. Usually this is done by letter at least a month or more before the landlord wants to retake possession of the property. However this time frame could vary depending on state and local laws or the terms of the lease.

Most of the time, the tenant chooses to leave and find a new place to live. But sometimes they do not. They want to stay despite the landlord’s wishes. If that happens, the landlord is them forced to evict the tenant.

Not really a “No Fault” to me. The tenant has violated the landlord’s property rights by not leaving when legally asked to do so. The landlord owns the building, the terms of the lease are up and the landlord should be able to retake possession of the building.

So why are people so upset about this?

It is because of the recent rapid rise in rents.

Rents have been going up all over the country in recent years. Landlords are thus often able to raise the rents at their properties. In some areas, quite significantly, as much as 400%! That simply is too good of a story for some media outlets to pass up.

Incomes have not caught up yet. Thus many renters feel that they will have to leave their longtime neighborhoods. Or worse, might not be able to afford new housing. A concern for sure.

While the recent rent increases have many causes, many choose to blame the landlords and have been petitioning local authorities to enact laws to prohibit or restrict “No Fault Evictions.”

No one likes to go through an eviction. It is just not a pleasant experience for either side. I try to avoid them almost any way I can. Thankfully in my experience, most tenants have agreed to move when I asked them to. Then again, we have not had the significant price increases here in Memphis either.

But what have you experienced in your part of the world? Are your tenants refusing rent increases or refusing to move? Please let me know with your comments.

 

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Filed Under: Dealing With Tenants, Everything, Evictions and Abandonment, Landlord Law, Memphis, TN, The Business of Landlording

Podcast – Investing In Multi-Family Properties with me, Kevin Perk

June 28, 2016 by Kevin

I recently did a podcast with Curt Davis over at Investor Talk Radio on investing in multi-family properties. In the podcast Curt and I discuss several aspects of investing in multi-family properties, including how to get started, financing them, the risks and rewards and much, much more. Give it a listen here.

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Filed Under: Buying and Financing Properties, Everything, Getting Started, Maintenance and Repairs, Memphis, TN

Reaching The Top Again?

December 31, 2015 by Kevin

According to the S & P Case Shiller composite index home prices continue to rise. The latest data show a 5.5 percent gain in prices from October 2014 to October 2015. That means that as of October 2015 home prices have returned to their 2007 levels in the 20 cities included in the index as can be seen in the chart below.

 

 

 

 

 

 

 

The real estate boon is and has been on again folks. Real estate is sexy again. And prices are likely to continue rising. There is simply not enough supply for the demand. Even here in Memphis, TN homebuilders are scrambling to get any buildable lot they can get.

If you are on the fence regarding selling any properties, 2016 may be the time for you to hop off onto the sell side. If you can find a good deal, now is the time to consider doing a flip and even buying more rental property. Be careful though. Stick to the fundamentals of cash flow, cash flow, cash flow! Don’t bet on constantly increasing rents and increasing prices. Nothing goes up forever.

Will prices make it back to the 2005/2006 highs? Who knows?

I am interested in what you think or what you see happening in your market. Let me know with your comments.

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Filed Under: Everything, Memphis, TN, Real Estate News

Have Home Prices Rebounded In Your Area?

February 18, 2015 by Kevin

Have home prices rebounded in your area? Check out these maps and graphics from the New York Federal Reserve.

I can say that here in Memphis, TN prices seem to have ticked up a bit, especially in the parts of town I deal in. It also seems to me that there are fewer deals out there and more people chasing them. Are the boom times coming back?

How are things in your part of the country? Are prices up? Deals harder to come by? Please share with your comments.

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Filed Under: Buying and Financing Properties, Memphis, TN, Real Estate News

The SmarterLandlording Podcast – Episode 5 – The Turnkey Provider

September 25, 2014 by Kevin

The SmarterLandlording Podcast – Episode 5 – The Turnkey Provider

“Just getting out there and doing it is the best way to learn!”

 

 

 

 

 

 

 

 

 

 

 

 

 

Links We Mentioned

Mid South Home Buyers – Terry’s turnkey company. If you are thinking of investing in Memphis or want to contact Terry, this is the link for you.

Due Diligence Questions – Click here to see Terry’s 19 due diligence questions that will help you identify the best turnkey sellers.

MemphisInvestorsGroup.com – Stop by on the 2nd Thursday of every month for informative real estate presentation and networking opportunities.

Landlord Locks – A great system of locks that have helped me become more efficient.

Check out all the podcasts at iTunes on the Smarter Landlording Channel.

Like the Intro Music? Check out my good friends in the band Kitchens and Bathrooms (Kind of fits right!). They write and play some awesome, original music from right here in Memphis, TN.

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Filed Under: Everything, Memphis, TN, Podcasts

Investors Are Being Watched

April 7, 2014 by Kevin

We should all be aware by now that serious Wall Street money has gotten into the landlording business.  Hedge funds have been buying up thousands of foreclosed homes all over the United States and placing them on the rental market.  I have been watching this process take place here in Memphis, TN and have wondered how it is all going to shake out in 5 or 10 years.  Looks like others are starting to watch and wonder as well.

This article from the Memphis Daily News takes a look at the impact investors have made on the Memphis real estate market over the past few years.  The article notes that according to Jim Reedy, who owns Reedy & Company here in Memphis:

“Memphis is a 50 percent rental town now and I expect that to go to 60 percent, possibly 65 percent.”

What will the impact on the city be upon loosing so many homeowners?  The article goes on to say:

“The role of investors is growing and the impact on different kinds of neighborhoods is largely unstudied and unknown.”

People are watching this process develop however.  Some, like the Center for Community Building and Neighborhood Action (CBANA) at the University of Memphis are watching rather closely.

In a rather detailed 2010 study of lending patterns in Memphis which examined the roles of some of this City’s largest investors and turnkey providers, CBANA concluded that:

            The significance of the investor-driven market, however, has been anything but clear.

While CBANA can’t say that all of this investor activity is bad for neighborhoods, one can tell from the tone of their reports that they do not think it will turn out very well.

So while none of us may know what the future holds, here is the moral to this story.  With folks like CBANA and others watching us investors, we investors need to be sure we are keeping an eye what CBANA and others like them report.  Why?  Because at the first sign of trouble it will be folks like CBANA calling for new regulations, restrictions and registrations. 

And it will not only happen here in Memphis as there are similar situations in cities all over the country such as Atlanta, Dallas, Indianapolis.   Landlords and real estate investors of all types need to keep tuned into what is said and make sure their voices are heard as well.  Their business may depend on it.

 

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Filed Under: Everything, Memphis, TN, Real Estate News, The Business of Landlording

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Kevin Perk has been investing in real estate in the Memphis, TN area for over 20 years. Read More…

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