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Rents Are Booming, But for How Long?

The largest U.S. apartment landlords are betting that hordes of millennials streaming into cities will keep pushing rents sky-high. But an expected spike in new supply in some key markets suggests their wager might be shakier than they thought.  Click here to read the full story...

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New Law Requiring Additional Tenant Notification on Prior Bed Bug Infestations

A new law requiring additional tenant notification on prior bed bug infestations. The disclosure requirement took effect for new tenants July 1 and will apply to existing tenants Jan. 1. It requires landlords to provide tenant with a bed bug history of the apartment while prohibiting them from “showing, renting, or leasing a vacant dwelling unit that the landlord knows has a bed bug infestation.” Full text of legislation can be viewed at: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201520160AB551

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Apartment Loans

There’s never been a better time to get an apar tment loan in San Francisco! Interest rates are down and rents are up.  This makes it an ideal time to get a loan for multi-family properties in San Francisco and the greater Bay Area whether for a purchase or refinance. Why is it a good time to get a loan? 1.     Interest rates are low ·      This means properties will have more cash-flow after debt service which is a good thing for lenders and borrowers alike. 2.     Rents continue to rise ·      For refinances, higher rents result in higher debt service coverage ratios which are used by lenders to qualify a loan.  A higher DCR in conjunction with a low loan to value can allow borrowers to qualify for preferred rates and terms from some lenders or open doors to others that may not be available otherwise (like life insurance companies) 3.     Lenders want to do loans in...