“In times like these, it helps to recall that there have always been times like these.” ~Paul Harvey
This last month we did lease deals with our local State Assemblywoman and U.S. Congressman. As part of our standard qualifying process we ask about who signs leases and financials and credit. You will appreciate the humor of the congressman’s chief of staff’s sense of humor:
Nancy,
Thank you again for all your help yesterday. I am asking our office manager to send you a copy of what our standard gov lease looks like. We will have to confess regarding our current financial situation is that we are $16.3 trillion in debt, but we are working on raising everyone’s taxes to pay for it. But truthfully, we think that this will be a good fit. Thank again.
Needless to say the landlord took the deal despite the week financials!
One of those areas already being affected by government cut backs is the court system. You should be aware that the Unlawful Detainer and eviction process is much slower because San Diego has reduced from four to two, the number of courts that hear these actions.
With things seemingly getting a little better and momentum building it is time to tighten up the reins on your tenants. Many of you have let tenants get lax on paying rent or paying on time. You may not want to evict yet but you should be sure to re-establish your right to on time payment. Some tenants have routinely ignored their obligation to pay rent on the first of the month. Not only does this tardiness hinder cash flow, but it also undermines your lease. Fortunately, even if you’ve let a tenant consistently get away with late payments, you’re not stuck forever with late rent. You can re-establish your right to on-time payment and to evict the tenant for late payment at a later time if needed. You should consult with your lawyer (or ask me for a referral to one) but your letter might say something like:
In the last month I have been enjoying watching old episodes of West Wing on Netflix. I used to enjoy this show because it gave you a sense of the inner workings of the White House and Washington. Now what amazes me is that nearly 20 years latter we are talking about the same issues; deficits, gun control, gays in the military and “revenue enhancements (taxes).” Some things never seem to change. On the other hand, Google is set to roll out retail stores and Apple is getting ready to release a wrist watch-technology seems to be ever-changing. I recently read that Sharp Electronics started as a mechanical pencil company and Nintendo started by selling playing cars.
We have seen an interesting start to the new year. It appears that owners, tenants and buyers have all decided that “life is what it is” and it is time to make decisions and move on. In some cases this is closing or downsizing in others selling or growing. This has lead to a surge in activity (but nothing paid yet.) The residential market appears to be on fire. This is leading to an uptick for the construction industry. What we are missing so far is the formation of new small businesses. Interestingly, despite the burst in activity, we had a 15% decline in inbound sign call activity. This means either we are generating more business (cold calling & relationships) or the quality of the inbound call is better (ready to do a deal.) Either way we’ll take it.
So as you are feeling like you are banging your head against the wall, remember that in this time of transition and change that some things never change. Hope you enjoy the story.
The Wall
A lady CNN journalist heard about a very old Jewish man who had been going to the Western Wall to pray, twice a day, every day, for a long, long time.
She watched him pray and after about 45 minutes, when he turned to leave, using a cane and moving very slowly, she approached him for an interview.
“Pardon me, sir, I’m Rebecca Smith from CNN. What’s your name?
“Morris Fienberg,” he replied.
“Sir, how long have you been coming to the Western Wall and praying?”
“For about 60 years.”
“60 years! That’s amazing! What do you pray for?”
“I pray for peace between the Christians, Jews and the Muslims.”
“I pray for all the wars and all the hatred to stop.”
“I pray for all our children to grow up safely as responsible adults and to love their fellow
man.”
“I pray that politicians tell us the truth and put the interests of the people ahead of their own interests.”
“How do you feel after doing this for 60 years?”
“Like I’m talking to a wall.”
