Rent Escrow Program (REAP) Compliance Nightmare

Rent Escrow Program (REAP) Compliance Nightmare

By: PRWeb

Posted on May 24, 2012 at 06:49 AM EDT

PRWeb

The Madison Real Estate Group, a leader in multifamily and REO property management, was awarded the management of an eight unit Los Angeles REO property. At the time of takeover the property had been placed in the Los Angeles Rent Escrow Program (REAP).

Once a property is in REAP, it takes knowledge and expertise to get out -and even that does not guarantee full recovery of expected income. Trying to navigate those waters alone can leave an inexperienced owner drowning in paperwork, and failing profits. With this latest L.A. property, Madison Real Estate Group filed the necessary paperwork to clear the violations and obtain a refund for their client in excess of $20,000.

In the past few years, the number of REO properties has reached an all-time high, in what some are calling an unprecedented pace. With the number of REO properties hitting the market it is essential the right management company is retained. Once a property is in REAP, even those owners who immediately attend to the complaints have a lot of work ahead of them just to recover even the reduced rent if the tenant has chosen to pay the money into the escrow account set up by the city.

The Los Angeles REO property market has been plagued with problems from squatters to vandalism and multifamily property units are being placed into REAP at an alarming rate. For landlords and property owners who have fallen behind in their maintenance and repairs, the city of Los Angeles REAP can wreak havoc on their revenue and collectibles, and bury them in a landslide of paperwork. This, in addition to a complex bureaucratic structure, makes REO takeovers a logistical nightmare for firms or previous property owners that are inexperienced with it, which is where the Madison Real Estate Group can help.

As explained by an experienced member of the Madison Group, "the affected tenants are immediately given a rent reduction, usually somewhere between 10% up to 50% range, and it isn't unheard of to see a reduction in the upward range of 80 to 90%, depending on the severity of the violations. This is lost rent to the property owner and is non-recoverable. A notice of REAP is recorded and filed against the property's title with the County Recorder's Office. If this is not resolved, this recording may restrict the refinancing or sale of the property."

Immediately upon taking over the property, Madison's team of REO professionals took all the necessary steps needed to ensure their client's interest was being protected. Madison has systems in place when an REO property is placed under management, allowing them to act quickly and aggressively ensuring residents are protected and the value of the asset is being preserved.

About The Madison Real Estate Group
The Madison Real Estate Group is an entrepreneurial and experienced full service multifamily and commercial real estate company that serves as a trusted advisor to financial institutions and private investors. They have a successful track record working with city officials in getting the properties under their stewardship removed from the REAP program and recovering funds owed to their clients. They have built their reputation by offering innovative solutions to their clients property management needs, adding value to their portfolios, and consistently exceeding their expectations for service and performance.

Read the full story athttp://www.prweb.com/releases/Madison_Real_Estate_Group/REO_property_management/prweb9539065.htm

Los Angeles Property Management Company The Madison Real Estate Group Leads Industry in Mobile Readiness

Los Angeles Property Management Company The Madison Real Estate Group Leads Industry in Mobile Readiness

By: PRWeb

Posted on May 10, 2012 at 06:40 AM EDT

PRWeb

Property management for multifamily housing and commercial properties being serviced by The Madison Real Estate Group now have access to immediate high tech solutions that will save them time and reduce their liability. Portfolio managers and leasing agents are now equipped with iPads in the field, which allows them to take pictures documenting property concerns and immediately email or post those images. The Madison Real Estate Group has also implemented an Email Notice Rider allowing them to serve tenants via email on the spot.

While other managers are still thumbing away on their smartphones, Madison Real Estate managers are conducting real time move out inspections by documenting any repairs needed with both pictures and tenant signatures. The iPad allows them to submit repair requests sooner, ensuring timely turnovers and minimizing lost rent.

"Putting iPads in the hands of our representatives enables them to give our tenants piece of mind around the clock," says Jacqueline Kimaz, vice president of The Madison Real Estate Group. "Everything is real time these days and our company should be ahead of the curve in order to better serve our clients." Kimaz also stated that the benefits of timely communication help the residents, as well as the property owners.

Life and safety problems can now be addressed right away, as these managers are now able to submit the work orders onsite, thus reducing liability. The iPads also have the potential to help reduce vacancies as agents can upload property photos and share slide shows to online rental sites immediately after rent ready inspections are complete.

Additionally, if a prospective resident doesn't like the unit being shown, the leasing agent can now give a real time demo of other properties in the owner's portfolio, saving them drive time - which, in a city like Los Angeles is worth its weight in gold. Time will no longer be wasted on sending prospective tenants paperwork and waiting on a deposit either. Leasing agreements and deposits can now be completed on location.

About The Madison Real Estate Group

The Madison Real Estate Group is an entrepreneurial and experienced full service multifamily and commercial real estate company with offices in Los Angeles, Las Vegas and Phoenix, that serves as a trusted advisor to financial institutions and private investors. We have built our reputation by offering innovative solutions to our clients property management needs, adding value to their portfolios, and consistently exceeding their expectations for service and performance.

Read the full story at http://www.prweb.com/releases/lapropertymanagement/laapartmentmanagement/prweb9493820.htm

The Madison Real Estate Group Awarded Property Management Assignment by City National Bank

The Madison Real Estate Group Awarded Property Management Assignment by City National Bank

By: PRWeb

Posted on April 25, 2012 at 06:38 AM EDT

PRWeb

City National Bank selected The Madison Real Estate Group because of the firm's strong property management presence in Las Vegas and substantial experience in managing bank-owned assets.

Located at 522 N. Lamb Boulevard, Saratoga Palms is a 56-unit, 47, 696 square foot apartment complex, consisting of four buildings and features covered parking, a pool, spa and laundry facilities.

The Madison Real Estate Group with their hands-on approach has been a tremendous asset in helping City National Bank re-position Saratoga Palms. Their professionals view each asset that they manage as if it were their own and look for ways to increase the asset's value through multiple value-added strategies as well as lowering operating costs.

Additionally, tenant retention and filling vacancies through proactive management are key to getting through this current cycle. It is critical that property owners have a plan in place or hire an experienced management company to create and implement a strategic plan before the property value is impacted beyond an acceptable level.

About The Madison Real Estate Group

The Madison Real Estate Group is an entrepreneurial and experienced full service multifamily and commercial real estate company that serves as a trusted advisor to financial institutions and private investors. We have built our reputation by offering innovative solutions to our clients property management needs, adding value to their portfolios, and consistently exceeding their expectations for service and performance.

City National Bank Testimonial

"It has been a pleasure to work with you and the Madison Real Estate Group in the management of Saratoga Palms in Las Vegas.

Your team performance and knowledge of the asset has been outstanding. You have consistently managed our assets in a professional and effective manner. Your personal integrity and excellent communication skills allow you to well represent City National Bank's interest in Nevada.

We look forward to working with you and your team and thank you again for your assistance."

Mike Rizkowsky
Special Assets

Contact:

For more information about The Madison Real Estate Group please visit our website at http://www.madisonreg.com or contact:

Joe Kimaz
The Madison Real Estate Group
8670 West Cheyenne Avenue
Suite 120
Las Vegas, NV 89189
Phone: 702-988-7474
info(at)madisonreg(dot)com

Read the full story at http://www.prweb.com/releases/2012/4/prweb9434001.htm

Reviews from some of our Clients

Nothing promotes a business like a good review. People are more inclined to reach out to you if they see other clients who have had great experiences and have gained peace of mind from working with you. We pride ourselves on results and we always appreciate feedback from clients, to help us learn what we are doing right and what we can improve upon. We are always yearning to go above and beyond.

Check out these reviews to prove to you how we can help not only manage, but improve your property as well, and give you the peace of mind you deserve:

"I have worked in the commercial real estate industry since 1985 as a broker and investor of multifamily properties. Given my background, I am confident my perspective will be helpful to you as you evaluate the Madison Real Estate Group. I am very pleased with Jacqueline Kimaz and the performance of her team. Jackie has managed my portfolio of properties since 1998 and I have never contemplated finding another management firm to replace her. From day one they were presented with an enormous task. Like many other landlords, my properties were properties were plagued with problems resulting from the economic downturn, Jacqueline'€™s team was able to stabilize the increasing number of move-outs by taking a creative approach when negotiating tenant leases, bringing my properties to 100% occupancy levels and maintaining them. On the maintenance side, we have made improvements to the building in the form or new roofs, plumbing upgrades, exterior/interior painting, landscaping, etc. and I have never had to worry about a thing. Jackie and her team have overseen every project from beginning to end allowing me the opportunity to enjoy the ownership of my properties without any of the headaches. I would highly recommend the Madison Real Estate Group."

-Multifamily Property Owner

"I sleep better at night since Madison Real Estate Group began managing my apartment buildings. In the year that I'€™ve engaged them, we had to deal with numerous deferred maintenance issues such as a hot water pipe burst and subsequent re-piping of the entire set of buildings, re-asphalting pavement, seismic gas valve installation, as well as new on-site managers and an eviction, on top of the usual set of normal everyday problems of owning an investment property. With each new challenge that appeared, they maintained a cool, level-headed €œkeep calm and carry-on€ attitude, quietly and professionally solving the problem. They a€™re responsive (especially during a crisis), pro-active and easy to get a hold of. They ha€™ve earned my respect and have become my rock in managing my investment - I couldn'€™t imagine owning the buildings without them and will eagerly engage the Madison Real Estate Group on future properties that I intend to acquire."

-Multifamily Property Owner

What if The Tenant Chooses to Quit?

What if The Tenant Chooses to Quit?

 Kaycelyn Atkinson

As a property owner or manager, we have all encountered this problem; It is the first of the month and the rent is due. The majority of tenants pay the rent, but for that one tenant, the rent does not come in and a notice to pay rent or quit is served… But alternatively, what if the tenant decides to do the latter and “quit” by vacating the property?

The first reaction is usually anger and outrage resulting from this unfair turn of events because the rent has not been received, and since they have quit so suddenly, there is a high possibility that damages have been done to the unit. After the initial emotions pass, it is more productive to look at the situation from a different perspective: It is better to have a sudden vacancy than go through the strain of waiting to see if they are going to pay, working through the excuses and behavior of a tenant stalling for time, and then having them vacate anyway; The property manager and owner now do not have to make the agonizing decision to start formal eviction proceedings or spend time waiting for the rent; Bypassing an eviction means avoiding more expenditures and time to remove the tenant; If the current tenant is not going to pay the rent, it is better to have the unit back so a paying tenant can be procured and the tenancy can be improved. Furthermore, the security deposit can be applied to damages and loss of rent.  

Still, you realize you have found yourself in a sticky situation. Here are some tips and suggestions about navigating your way through this quagmire of obstacles in which the runaway tenant has left for you.

Can you take possession? Yes, if a tenant abandons the property, you can take possession. If they have left personal properties in the unit, then consideration has to be given to the value of what is left behind and how to dispose of it. It is important that a property owner does not rush into selling off the personal properties of a tenant to regain what the tenant owes them.

Do they still owe the rent?  If they are on a lease, the tenant will still owe the rent until the property is re-rented or the expiration date of the lease, whichever comes first.  If they are on a month-to-month tenancy, the rent is normally due for what is specified in the rental contract regarding the amount of notice required.

Do you still have to send security deposit refund statement? Yes, even if it is to the property address with a “please forward and/or address correction required.” This way, the property manager and/or owner are covered for itemizing the monies deducted against the amount of the deposit. It is good business to itemize security deposit damages whether the tenant vacates suddenly or follows the terms of the contract.

Can you report them to a credit reporting agency? Yes, as long as there is written documentation, attempt at notification, and if the rental agreement and/or notice to quit contains important wording notifying the tenant that the landlord has the right to report them to a credit reporting agency. This is required under Federal Credit Reporting Act law.

Can you still seek damages?  Yes, you can always seek damages in any situation if a tenant owes rent or monies for damages. The first step is to obtain a judgment in small claims or report the loss to a credit reporting agency.

How can you collect damages? The best solution is to use a collection agency since they have the tools and expertise to track people who owe money. Although the agency does collect a fee, it is better to receive some remuneration rather than nothing at all.

How do you avoid this situation? As your property management company, our solution is to prevent this by obtaining a qualified tenant.  However, there are no guarantees this will work. People often encounter difficult situations such as divorce, drugs, loss of employment, or high medical bills, which more than often can lead to poor judgment in handling their personal situation. 

However, if the tenant quits, it is better to take the most productive course of action and move on to a better tenancy for your investment and your peace of mind. Don’t let this situation be a usual occurrence; tenant problems like this well disappear into thin air when you form a relationship with Madison, whose unusually high success and turnover rate which has each of our clients thoroughly satisfied. We invite you to be one of them!

Conclusively, though this situation has a negative connotation upon its initial encounter, here at The Madison Real Estate Group we believe that the glass is always half full and that there are plenty of management solutions to even the most frustrating of circumstances. We are here to help deliver the optimum results with minimum hassle for our property owners.  As one of the principals of The Madison Real Estate Group, with over 25 years of experience, Jackie Kimaz oversees all of our client’s needs with a friendly and professional quality that will set the right tone from the inception of your relationship with Madison.

Please feel free to contact Jackie Kimaz at 213-620-1010 for your property management inquiries and needs, or just to have a chat about how we can improve your management structure. 

MADISON REAL ESTATE GROUP Receives 2012 Best of Sherman Oaks Award

MADISON REAL ESTATE GROUP Receives 2012 Best of Sherman Oaks Award 

Sherman Oaks Award Program Honors the Achievement

SHERMAN OAKS August 6, 2012 -- MADISON REAL ESTATE GROUP has been selected for the 2012 Best of Sherman Oaks Award in the Property Management category by the Sherman Oaks Award Program.

Each year, the Sherman Oaks Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Sherman Oaks area a great place to live, work and play.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2012 Sherman Oaks Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the Sherman Oaks Award Program and data provided by third parties.

About Sherman Oaks Award Program

The Sherman Oaks Award Program is an annual awards program honoring the achievements and accomplishments of local businesses throughout the Sherman Oaks area. Recognition is given to those companies that have shown the ability to use their best practices and implemented programs to generate competitive advantages and long-term value.

The Sherman Oaks Award Program was established to recognize the best of local businesses in our community. Our organization works exclusively with local business owners, trade groups, professional associations and other business advertising and marketing groups. Our mission is to recognize the small business community’s contributions to the U.S. economy.

SOURCE: Sherman Oaks Award Program

CONTACT:
Sherman Oaks Award Program
Email: PublicRelations@awardprogram.org
URL: http://www.awardprogram.org

Los Angeles Property Management Company the Madison Real Estate Group’s Vice President Jacqueline Kimaz Arrests Five Individuals for REO Vandalism

The Madison Real Estate Group rescues property owner from squatters and vandals upon being awarded management of the building and arrests the five individuals responsible. Despite alarmingly high rate of these instances in Los Angeles, the Madison Real Estate Group is bringing properties such as this one into compliance within 90 days.

The Madison Real Estate Group, a leader in multifamily property management, was awarded the management of an eight unit REO property in Los Angeles.   At the time of takeover the property had been placed in the Los Angeles Rent Escrow Program (REAP). Squatters were rotating in and out of the vacant units and it was continuously being vandalized.

Subsequently, upon takeover of the asset, five individuals were arrested for vandalizing the property, the squatters were removed and the REAP case was brought into compliance within 90 days.  The necessary paperwork was filed with the city and Madison filed the necessary paperwork to obtain fund in excess of $20,000 being held in the escrow account and placed the property on the market for sale.

In the past few years, the number of REO properties has reached an all-time high, in what some are calling an unprecedented pace.  With the number of REO properties hitting the market it is essential the right management company is retained.  The Los Angeles REO market has been plagued with problems from squatters to vandalism and are being placed into the Los Angeles City Rent Escrow Account Program at an alarming rate.    

For landlords and property owners who have fallen behind in their maintenance and repairs, the city of Los Angeles Rent Escrow Account Program can wreak havoc on their revenue and collectibles, and come close to burying them in a landslide of beaurocracy and paperwork.  It’s a legal and logistical mess most property owners don’t have the experience necessary to handle on their own.

The affected tenants are immediately given a rent reduction, usually somewhere between 10% up to 50% range, and it isn’t unheard of to see a reduction in the upward range of 80 to 90%, depending on the severity of the violations.  This is lost rent to the property owner and is non-recoverable.   A notice of REAP is recorded and filed against the property's title with the County Recorder’s Office.  If this is not resolved, this recording may restrict the refinancing or sale of the property.

Once a property is in REAP, even those owners who immediately attend to the complaints have a lot of work ahead of them just to recover even the reduced rent if the tenant has chosen to pay the money into the escrow account set up by the city.  The owner must then attain three separate sign offs  on all outstanding orders from the LAHD city inspector assigned to the property and a case manager from the cities outreach program before being sent to the city council for final approval and release.  

Clearly, owners should be aware of violation notices, and diligently make repairs to avoid this situation. Those that put it off too long are looking at rough waters.  Once a property is in REAP, it takes knowledge and expertise to get out – and even that does not guarantee full recovery of your expected income. Trying to navigate those waters alone can leave an inexperienced owner drowning in paperwork, and failing profits.

This coupled with squatters and vandalism at the property were creating life and safety concerns for the ownership that needed to be address immediately.  Immediately upon taking over Madison’s team of REO professionals took all the necessary steps needed to ensure their client’s interest were being protected.  Madison has systems in place when an REO property is placed under management, allowing them to act quickly and aggressively ensuring residents are protected and the value of the asset is being preserved.  As standard protocol during the takeover process of an REO asset, The Madison Real Estate Group notifies the local authorities of the change of ownership and files a Trespass Arrest Authorization form with the local police department. This allows the police department to arrest anyone on the premises who isn’t a resident or a proven guest of a resident without having to contact the ownership of the property.  This gives Madison the ability to call in a potential threat to the police department and allows the police to make the arrest without confrontation, protecting the client’s interest, as well as, the residents of the property.  

About The Madison Real Estate Group

The Madison Real Estate Group is an entrepreneurial and experienced full service multifamily and commercial real estate company that serves as a trusted advisor to financial institutions and private investors. They have a successful track record working with city officials in getting the properties under their stewardship removed from the REAP program and recovering funds owed to their clients.  They have built their reputation by offering innovative solutions to their clients property management needs, adding value to their portfolios, and consistently exceeding their expectations for service and performance.