All Forum Posts by: Russ Cowley

@Natalie Johnstone

This is a great question. I'm a professional property manager very close to you in Pleasanton. We have clients still buying properties in the tri-valley; there are still some great opportunities locally for long-term wealth building. As you're probably aware, cashflow is very difficult without a large down payment or the ability to cover negative cashflow with other sources of income. However, if you can weather the storm for a while, Danville, San Ramon, Pleasanton, Dublin, and Livermore all offer amazing appreciation, tax benefits, and principle pay-down opportunities. 

I'd be happy to chat more about how we can help you achieve your goal.  Feel free to contact me anytime.

 Happy to hear that things worked out for you in the end. 

We only manage rental properties in the East Bay, so we don't have any experience with CalTrain stations.  

The ACE Rail station in Livermore doesn't seem to be a problem.  We manage several properties within walking distance.

Yes, Dublin BART. Who would have thought, right?  It didn't occur to me until we had lots of problems, and then I asked a friend who is a police officer. He confirmed that BART enables criminals to travel to the Dublin/Pleasanton area to commit crimes. 

My comment was very general, so there may be resident groups, like traveling nurses, that still prefer the convenience of being walking distance to BART.  However, 10+ years of data suggests that the majority of tenants prefer low-crime properties.  These properties are generally not close to a BART station. 

For what it's worth, we used to manage an apartment next to San Leandro BART and had similar problems.

We're happy to manage properties near BART stations, but I want property owners to be aware of the issues.

I do not recommend purchasing a rental property close to any BART station.  BART=high crime. 

Dublin, CA is a pretty safe city overall, but the buildings within walking distance of BART experience very high crime. We manage a number of properties near Dublin BART. The HOA emails about break-ins frequently, despite a secure parking garage and enhanced security. One of my employees had their vehicle stolen while parked in front of the building just a few blocks from the BART station.

Second, the idea that proximity to BART will attract more residents hasn't proven to be true. Properties near Dublin BART station take longer to rent and have shorter average tenancy compared to our other managed properties. 

Hi Sandra,

I'm a professional property manager in Pleasanton, CA. I've owned rentals in the East Bay, as well as out of state in OH and TX.  It's really hard to beat the long-term wealth building opportunity that the Bay Area offers.  The East Bay offers great appreciation and a lower price than the South Bay or Peninsula.  As previous responses have indicated, it's almost impossible to cashflow anywhere in the Bay Area without a substantial down payment.  If you have a large down payment (or the ability to cover negative cashflow), the East Bay's appreciation and principal pay-down benefits have been historically very strong compared to other markets.  

Avoid strong rent-control cities like Oakland, Berkeley, San Leandro, Concord, Fremont, Union City, Martinez, Antioch, and others.  

I've always found that suburbs with great schools are the best locations for long-term appreciation.  Cities like Pleasanton, Livermore, Dublin, San Ramon, Danville, Castro Valley are worth consideration. 

Let me know if you have any additional questions about the East Bay.

Hi Gayle, thanks for adding more information about your specific situation.  If I understand correctly, there are 2 properties on 1 lot sharing utilities because there's only 1 meter.  Is this correct?

Internet: the resident can get their own internet account as long as there is phone/cable in the ADU. If you didn't run wiring to the ADU and that's why you're providing WiFi, the solution is to run wiring and ask the resident to get their own account. You generally should not be providing internet to residents. If you do have a separate account for the resident, modify the lease to require them to pay you back 100% (it must be exclusively for the use of the resident).

If I were you, I would pass along the utility/services cost instead of raising rent. This will insulate you from price increases from service providers as well as service abuse from a resident.

If you share utilities, you can install submeters or use a Ratio Utility Billing System (RUBS). RUBS is a method used to allocate utility costs in multifamily residential properties when there aren't separate meters.  RUBS are usually based on the number of occupants with a small allocation for common area.  

At the end of the day, it's your call on how to generate more income from the ADU to offset the ever-rising cost of being a Landlord. I hope I was able provide helpful information.

Colleen, this is great advice. Too often we see Landlords keep rent down to reduce headaches, only to find out later that they can't raise rent due to rent control regulations.  Raise rent at every lease renewal or annually if you have a month-to-month lease. If the market doesn't support an increase, keep the amount low--$5 - 20/month.  It would be rare for a resident to move with such a small increase, and it sets an expectation for rent increases each year. 

Sorry to hear about your negative experience with Jonathan. I have never worked with him. 

As an alternative, take a look at KTS in Walnut Creek.  I have not used them for Ellis evictions but I would interview them if I needed help with an eviction.  https://www.kts-law.com/practice-areas/landlord-tenant-law/

Good luck!

Daniel Bornstein is the most prolific in SF and Oakland.  https://bornstein.law/