“New” development north of Broad on Staples Mill
Posted: December 19, 2011 | Author: Nathan Hughes | Filed under: Commercial Leasing, Henrico County, Multi-family Housing, New Development, Office Buildings, Redevelopment, Residential, Retail | Tags: commercial real estate, Henrico County, real estate development, Redevelopment, Richmond, Virginia | Leave a comment »About once a month I get a question about the large, vacant property that borders Staples Mill Road that is just north of West Broad Street, right over the Henrico Count line. My answer is always that it was an old, rundown neighborhood that was purchased and cleared with the intention of rebuilding, and that the developer is the same group that is doing the project at Monument Avenue and Willow Lawn Drive – Gumenick Properties. As to why it hasn’t been started, well just look around at new building all around the country. The developer was obviously waiting until the economy turns around.
But, I always have to give that answer with the caveat that the last official word I had heard about it was a few years ago. I couldn’t even be sure that the same plans were in place. Thankfully I can point to this article on Richmond.com that gives us the lowdown on the current situation — which is pretty much as described as above. It sounds as though things are just on hold, but the same big plans are still on the books. In fact, this project is expected to take 10 years even once they finally get underway.
You need to go read the article to see all of the reported details, but I thought I would share a couple of details of the plans here:
What: Staples Mill Centre, proposed to include 1,096 apartments, 571 condominiums, 391 townhouses, 32 single-family homes, 60,000 square feet of offices, and 100,000 square feet of stores.
Where: About 80 acres between Staples Mill Road, Libbie Avenue and Bethlehem Road, near Interstate 64.
Don’t try to fool the insurance company
Posted: May 12, 2011 | Author: Nathan Hughes | Filed under: Commercial Leasing, Investing, Multi-family Housing, Residential | Tags: apartments, Bandazian & Holden, insurance, property management, real estate development | Leave a comment »Understanding Landlord Insurance
By: Dona DeZube
Published: September 1, 2010
Turning your home into a rental or buying an investment property? Expect to pay up to 20% more for the right insurance policy to protect your property.
Rental properties require their own type of coverage–landlord insurance, which is different than the homeowners policy you buy when you live in a house yourself. Landlord insurance protects you against losses from fire, lighting, falling trees, wind and hail, water damage, and injury to your tenants and their guests.
But it doesn’t cover the renters’ household goods. So encourage tenants to buy a renters policy to cover their stuff. You can even include a clause in your lease saying they have to buy renters insurance, so everyone is clear about what’s insured and what’s not.
Landlord insurance is expensive
You’ll pay 15% to 20% more for a landlord insurance policy than you will for a homeowners policy on the same house–and even more if you offer short-term rentals. Start your policy shopping by calling the company that sold you your homeowners insurance, then check with an independent insurance agent selling commercial and business policies.
Ask how you can get discounts if you have fire prevention devices, burglar alarms, or multiple properties.
What a landlord insurance policy probably will cover:
- Lightning, windstorm, hail, explosion, riot and civil commotion, smoke, falling objects, snow, ice, sleet, vandalism, sonic boom, sprinkler leakage, frozen pipes, water damage, burglary, volcanoes, and sinkholes.
- Things that belong to you that stay at the property, like appliances, furniture, or lawn care equipment. Keep an inventory of what’s on site.
- Outbuildings, like sheds or garages, although this coverage will have its own limit (probably 10% of the overall insurance policy amount).
- Costs to defend yourself against lawsuits filed by tenants or guests, as well as the costs awarded if you lose the case. Some policies cover medical bills for injuries; some don’t.
- Lost rental income if the property is damaged and you can’t rent it.
What a landlord insurance policy probably won’t cover:
- The tenants’ belongings.
- Your rental property if it’s vacant for more than 30 days. Seek an exemption in advance from your landlord insurance company as soon as you know the property is going to be vacant.
- War and nuclear, biological, chemical, or radiological attacks.
Optional coverage you might want to buy:
- Flood
- Earthquake
- Vandalism (if the policy you buy excludes it)
- Pool and tennis court insurance
- Liability for personal injury, wrongful eviction, wrongful entry, libel, and slander
Don’t forget liability coverage
To cover yourself in case you lose a big court case filed by an injured tenant, buy anumbrella insurance policy that gives you liability protection for $1 million to $5 million or more if you have a lot of assets to protect.
Don’t file a claim unless you absolutely have to
There’s a limit to how many claims you can file before insurance companies start charging you more or canceling your policies. Claims can quickly add up as you buy more rental properties.
One time you always want to file a claim is when someone says they’ve been injured on your property. One claim you’ll want to avoid filing: water damage for less than $10,000 because worries about mold growing in water-damaged properties will lead some insurers to immediately cancel your insurance policy.
More from HouseLogic
How to Correct Your Clue Insurance Report
Other web resources
Renters Insurance Brochure to Share with Your Tenants
Dona DeZube, HouseLogic’s News Editor, has been writing about real estate for over two decades. She lives in a suburban Baltimore 1970s rancher on a 3-acre lot shared with possums, raccoons, foxes, a herd of deer, and her blue-tick hound.
Visit houselogic.com for more articles like this.
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Small rental property owners breathe a sigh of relief
Posted: April 13, 2011 | Author: Nathan Hughes | Filed under: Commercial Leasing, Government Institutions, Investing, Multi-family Housing, National News, Office Buildings, Residential, Retail | Tags: Bandazian & Holden, business environment, commercial real estate, government, legal, property management, real estate development | Leave a comment »There is always a lot of new legislation passed every year that sounds like a good idea at the time and generally goes unnoticed, and every once in a while the consequences of that legislation become horrifyingly apparent afterwards.
This past year, the legislation that was causing so much heartburn for small property owners was a new IRS requirement that anyone with rental property file a 1099 for any repairs that add up to $600+ over the course of the year. (see my post about it here, from December 2010)
Good news — the provision was repealed before it could take effect!! (here is the actual legislation that was passed to repeal the IRS provision, in case you would like to read it)
Hats off to the Realtor community for standing against this for the good of the mom-and-pop investors, who are the ones would be most affected by those proposed requirements — and for Realtor Magazine’s blog for bringing the repeal to my attention. From their description of how everything unfolded, it seems as though everyone understood that this was good to do:
When the provision was included in the small business bill, REALTORS® were among the first and firmest opponents of it, helping to ensure that Congress understood the provision was an example of over-reach that was never intended to burden mom and pop property owners. Members of Congress and President Obama got the message and, in a rare example of agreement between not only Republicans, Democrats, and independents, but also between House and Senate chambers and between the legislative and executive branches, lawmakers agreed the provision needed to come out.
Nice to know that we don’t have this provision coming up to haunt us over the next few years, isn’t it?
Redevelopment plans for Carytown get nod from Museum District
Posted: February 6, 2011 | Author: Nathan Hughes | Filed under: City of Richmond, Commercial Leasing, Government Institutions, Investing, New Urbanism, Redevelopment, Retail, Shopping Centers, Transportation | Tags: business environment, business owners, commercial real estate, downtown Richmond, government, real estate development, Redevelopment, Richmond, Virginia, walkability | 2 Comments »The redevelopment of the old Verizon building at 10 N. Nansemond Street has been hotly debated and contested. (see: the official site for the Carytown Place; Don’t Big Box Carytown‘s website; & this post and the accompanying comment thread on Caramelized Opinions for a good summary & feel of the debate)
The Museum District Association had originally ruled to oppose the redevelopment based on the original plans, but Friday they sent out a press release announcing the reversal of that position. The gist of the situation can be summed up from this one paragraph in the press release:
The Board voted 13-1 in November to oppose the original SUP and subsequently provided the applicant with detailed requests for further changes to make it more amenable to the neighborhood. The applicant responded by altering the SUP to remove vehicular ingress/egress on Nansemond Street as well as reduce the number of available uses of the property to 10 uses. The applicant also agreed to limit the usable floor space of any one tenant to no more than 25,000 square feet, ensuring there would be multiple tenants in the building and ruling out a single, larger “big box” tenant.
The whole press release can be read here on the MDA’s website (right now it’s at the top, but it will shift down the page as new releases are issued).
What do you think? Are you satisfied with the MDA’s ruling, or are the changes in the plan not enough for you? In that case, what changes would be enough to get your support for the development?
Important! New IRS requirements for all landlords
Posted: December 6, 2010 | Author: Nathan Hughes | Filed under: Commercial Leasing, Government Institutions, Investing, Multi-family Housing, National News, Office Buildings, Retail, Shopping Centers | Tags: business environment, commercial real estate, government, IRS, legal, property management, taxes | 1 Comment »
Anyone receiving rental payments from either residential or commercial properties will need to review the newly-enacted small business legislation called HR5297 with their accountant and how it expands 1099 reporting requirements.
Currently, only real estate professionals that engage in property management services have to use 1099 forms to report any service provider that they pay more than $600 in a given tax year.
The changes will be enacted over the next two years as follows (details from the NAR Issue Brief released recently — can be found online here or hosted on my site here):
2011 Rule: ALL persons who receive rental payments must provide Form 1099. This affects ALL owners (both individuals and businesses) of rental properties, both residential and commercial. Thus, “mom and pop” investors and those who invest in real estate for their personal portfolios are subject to the new reporting requirement. Only aggregate annual payments of $600 or more for services (but not goods) must be reported.
2012 Rule: All businesses, including real estate businesses, self-employed individuals and independent contractors will be required to make a 1099 report of any aggregate annual payment of $600 or more to any person from whom they acquired goods and services.
Please keep in mind that I am not an accountant, so before you act on any of this information (or panic. or dismiss.) please consult with your accounting/tax professional. But when I saw this come across my desk, I thought it was important that you are aware of these new rules!
(*Warning! Sales pitch!*) And, by the way, here at Bandazian & Holden, we have dealt with these reporting requirements from when they were first enacted for real estate professionals in the property management field, and we are accustomed to handling the necessary paperwork for our clients. If you don’t feel like dealing with it on your own, let me know and come on board with us. (*End of warning. Enjoy your day!*)
Business is getting better, Richmond
Posted: October 18, 2010 | Author: Nathan Hughes | Filed under: B&H News, City of Richmond, Commercial Leasing, National News, Restaurants, Retail | Tags: Bandazian & Holden, business environment, business owners, commercial real estate | 6 Comments »Business is booming! Relatively speaking, at least, the economy is buzzing along. Things certainly aren’t where they used to be, but they are getting better. Running a small business is tough, no doubt about it — but it’s always tough.
One of the first questions I hear is “how is business” — and the answer lately has been that business is great! The business I’m in (commercial real estate and business brokering) is busier than it has been in the past couple of years. I can’t speak for the entire industry, but our small piece has been rolling along quite briskly. The period between the 4th of July and Labor Day weekend is usually dead for us, except for the residential leasing, but this year defied past trends and was the busiest we’ve had in a long time.
As I’ve said in the past, I’m a small business. I’m not Coca-Cola or Dow Chemical. I don’t need the whole economy to be in a bubble to be doing well. I just need to do well with and by my clients and customers to be rewarded. Conversely, I don’t need the whole economy to be in recession for my business to be spiraling downward, either.
It’s not just our business at Bandazian & Holden that has been on the upswing lately. I’ve been hearing from more and more friends that their businesses are doing the same thing, and that brings me great hope for everyone.
Don’t take my word for it, though. The news outlets are tapping into the data and things are starting to spring back (or at least stop going down) all over:
From Nation’s Restaurant News: Atlanta’s restaurants seeing better days
Operators in the city pointed to an increase in private parties and convention business, which they expect to continue as the holiday season nears. And while diners remain value-conscious, some restaurateurs reported that increased drink and appetizer orders are giving check averages a boost.
U.S. retail sales rose for a third consecutive month in September, posting a stronger-than-expected increase that should fend off fears of a double-dip recession but doesn’t signal a strong recovery.
For the second quarter, area sales totaled $2.59 billion compared to $2.64 billion in the second quarter of 2009. The decrease of 1.89 percent is the smallest quarter to quarter change since BizSense began analyzing taxable sales data at the end of 2008—a sign that the slowdown may be flattening out.…Restaurants and bars are also doing a little bit better, growing sales by more than 6 percent in the second quarter. That is a big change from the 1 percent to 2 percent decrease reported for previous quarters.
What has changed? I don’t know. Maybe people are tired of being scared and sitting on the sidelines, waiting for more bad news. What I do know is that we got ourselves into this mess, and it’s up to us to dig our way out — everyone working on their small piece of the hole. There is plenty of money to be made in good times and bad times, trick is that the people have to earn their money in the “bad times”. Let’s keep making this work!
What do you think? Have you seen business improving in your corner of the world?
Should I wait to sign a lease, or is this as good as it gets?
Posted: July 9, 2010 | Author: Nathan Hughes | Filed under: Commercial Leasing, Office Buildings, Restaurants, Retail, Shopping Centers | Tags: business environment, business owners, commercial real estate | Leave a comment »Fear is a strong motivator, but so is hope. They’re especially strong when they come together. It’s a special moment when we’ve made it through an especially bad economic downturn and your business starts to tick upwards for the first time.
Commercial landlords have been through that hard time right along with every other business owner, and they are ready to see that uptick themselves. They are ready to deal to get in good steady tenants. At the same time, businesses are seeing new contracts come in (I know we have!) and they are ready to start taking advantage of the deals on leases — are you?
2217-2219 W Main Street
I’m certainly not the first to point this out, and I’m taking my cue from a recent online article on National Real Estate Investor — “Office Tenants and Landlords Battle for Upper Hand”
Landlord concession packages are not likely to get any bigger… “They’re as good as they’re going to get.” The same may be true with rents, he adds. “Rents may fall in some markets a bit further, but the ship starts to turn before a lot of people know they’re on it.”
Robert Bach, senior vice president and chief economist at Grubb & Ellis, agrees. “More tenants are active now and willing to sign a long-term lease because they are more confident in their own outlook and realize now is a good time because of the concessions available.”
They’re talking about office leases in the article, but it makes just as much sense with retail and restaurant spaces, too.
Of course you never know when the economy has hit bottom until it’s too late to take advantage of the best deals. The great part is that as long as you’re not making decisions out of fear, you can keep your eye on your own business and use cues from your business activity help you decide when is the best time to move.
So if you’re seeing cues that things are getting better in your business, perhaps it’s time we talk about finding a good deal now…?