Junk Fees

Inman News started a 3 part series on “junk fees” charged by brokerages. Their plan is to lay out the “legal, ethical and competitive issues involved in charging such fees.”

My brokerage charges a $195 lease administration fee to each tenant at the beginning of their lease. My research of other property management companies in town reveals that similar fees are charged or the companies make a portion of the security deposit non-refundable. Another common name for these junk fees is a cleaning deposit. There were some management companies out there that did not have any such fees and of course investors without management companies do not have the extra fees.

I dislike having to charge the fees because it makes my job of renting homes harder but the decision is out of my hands. I am an employee and my broker wants the fees collected.

It will be interesting to see how the case in question pans out and the implications of any ruling on Phoenix real estate business.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Citi on Camelback Sold

Some condo investors got a great deal today. The Arizona Republic reports that Orion Residential LLC paid $70,000 for each of the remaining 178 condos in the Citi on Camelback Development. Some of the original condo owners bought their units for as much as $300,000. The $1 billion investment group said it is looking at additional deals in the valley as well. This might look painful but it is the only way we can get back to equilibrium with supply and demand.

I would not be surprised if a lot of the units bought for $300,000 end up back with the banks. New foreclosures will lower the average price even further.

Brewer Caldwell manages properties in this complex and we are having trouble finding a renter for the $970 price tag. View the listing here. We dropped the price to $750.

Read the article here.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

30 Year Rates Climb Again

Here is another fugly looking mustard seed from Bloomberg News:

June 4 — Fixed U.S. mortgage rates jumped to the highest level this year, signaling the Federal Reserves plan to lower borrowing costs has stalled.

Our out of control spending has erased any efforts by the Federal Reserve to maintain low rates in hopes of growing out of this recession.

Treasury yields are climbing as investors anticipate a greater supply of government debt being sold to fund federal spending. The yield on the 10-year Treasury was 3.54 percent yesterday, compared with 3 percent on March 17, the day before the Fed announced its plan to boost mortgage-backed bond purchases and to buy Treasuries.

Bond investors are ignoring efforts of the Federal Reserve.

Yields on the benchmark 10-year Treasury note and Fannie Mae mortgage bonds are higher than they were before the Federal Reserve said March 18 that it would buy as much as $1.25 trillion in mortgage-backed securities to help drive down borrowing costs.

Glad to see my tax dollars at work.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Law Protects Renters From Foreclosure

MSNBC had a news story from the AP today about a new law being signed by President Obama. The law allows tenants to stay in a home for up to 90 days after a foreclosure auction. They are also entitled to stay in the home for free. Read the whole article here.

There are some missing facts in this article. Is it an Executive Order? What is the name of the law? Was there a vote in congress? Does this only apply to Fannie and Freddie loans? I am unsure on these questions but will update everyone with any new facts I can find.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

CityNorth in the News Again

The Arizona Republic had a new story on this often reported development in north Phoenix. CityNorth developers found out today that Bloomingdale’s and Macy’s have both pulled out of their preliminary agreements to be anchor tenants for phase II. The newspaper reports that phase one restaurants are doing well so far but there are still the court battles looming over the development. The court proceedings concern the parking garage and subsidies from the City of Phoenix. Read the AZ Republic story here.

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com

Jim the Realtor

Here are a collection of funny and informative videos of REO homes and foreclosures. Check him out today.

http://www.youtube.com/user/JimtheRealtor

Travis J. Bohling
Brewer Caldwell Property Management
480-212-7041 (Direct Line)
480-212-7042 (Fax)
Travisb@brewercaldwell.com