The factors that define the property class designation include age of the property, amenities offered, rents charges, level of service, safety of the neighborhood, uniformity of the property and more. Class A properties The newest property in the area. Features will include the greatest level of amenities in the marketplace Construction finishes will be of the “Best in Class”. Rents will be the highest in the marketplace. Located in desirable neighborhoods. Class B Properties Twenty years old and older.   Well maintained and have little to no deferred maintenance. Located in a safe and desirable neighborhoods. Tenants have stable income Class C Properties Tenants are normally hourly workers.   Located in safe neighborhoods. Turnover tends to be higher Will have deferred maintenance needs.   Everything else Properties do not fit in any of the A, B, C categories and have characteristics including: High crime 4 story walkup Non conforming floor plan or unit configuration Lower rent Lower caliber of tenant   For more go to: John Wilhoit on Amazon.com http://multifamilyinsight.net/  

Is Water Damage Covered or not? If you have a claim, it is important to know if you have coverage, or not. On Joe Fairless Best Ever Show Podcast #746 I was the guest and we discussed damage caused by water. The standard property policy EXCLUDES Water: Flood Mudslide Water that backs up from a sewer, drain  Unless through one of these the result is a fire, explosion or sprinkler leakage. Backup of Sewer or Drain. There are many companies that will give back coverage for: Backup of Sewer or Drain for limits from $5,000 to $100,000 Flood is its own policy.   If you are in a Flood zone, you have a couple of options: Purchase Flood Insurance Get a letter of Map Amendment Checkout CREPN  #35 with Steve Gill, owner of Flood Risk America             Save 20% https://qc115.infusionsoft.com/app/page/save20flood For more information about Commercial Real Estate Insurance like this, get your  Commercial Real Estate Insurance Buyers Guide  

Are you good at making sure you get found online? Do you have a brand?  Do you rely on your employer’s site?  Are you creating opportunities for you sales staff?   What are you doing to get found? The worldwide web creates opportunities for the savvy marketer and competition for those who are not. David Klein with RevLocal is an online marketing expert who is passionate about helping businesses stand out online so customers can find them.   Rules for marketing online that will help you get found. Know your audience.  This is fairly obvious, but worth mentioning.  Who are your clients, let’s find more.Brand - When you know you are, by name, logo, tagline, punctuation, etc. don’t mess with it.  Make certain that every time you post, the information is the same.  Ie; if in one post you list your business as “123 CRE” and another time you list it as “123 CRE LLC”, you are diluting your efforts.  Be the brand.Content - Create useful content for your audience.  If you have industrial space for lease, create or find and repost information useful to tenants of industrial space.  Get specific.  The deeper the better.   Pictures & Videos get higher rankingConsistency - At a minimum, you have to post something once a month and more often is better.  Your goal is to make sure machines can find you. If you don’t have the understanding, knowhow or want to do this, get some help.   Contact David Klein at RevLocal for a consultation to see what you can do. dklein@revlocal.com m (503)592-0627

New IRS Repair Regulations require property owners to account many repairs that were previously an expense must now be capitalized. What does this mean for a property owner?  How can you easily determine what qualifies for an expense versus a capital improvement? I talked with Jonathan McGuire of AKT CPA’s for an in depth look at what changed and how can property owners easily account for the new repair regulations. Download the flowchart to follow along: https://qc115.infusionsoft.com/app/form/repairregulationsflowchart We discuss: History of the IRS Repair Regulations The ruling stems from a 2003 Federal Court case FEDEX vs IRS in which FEDEX argued the engines were not a Unit of Property, UOP.  The repairs were incidental and necessary expense. How much can be expensed for routine maintenance? The current safe harbor limit is $2,500 for routine maintenance What is a Unit of Property? What are Capitalization Standards? The give back: Partial Asset Disposals The new regulations allow for expensing of a system asset that has not been fully depreciated in the year of replacement and recapitalization.   Jonathan’s article in The Tax Advisor magazine:  http://www.thetaxadviser.com/issues/2015/dec/long-term-tax-benefits-of-partial-disposition-election.html . For more go to: https://www.aktadvisors.com/ jmcguire@aktcpa.com