Mixed emotions–Jealousy and Rage–about Rent Control

On the MyFace today I stumbled on an article about the now-famous Herbert J. Sukenik who lived in rent-controlled apartment overlooking Central Park.

http://www.celebritynetworth.com/articles/entertainment-articles/stubborn-tenant-holds-absolutely-insane-amount-money-finally-leave-rent-controlled-nyc-apartment/

Herb was a bit of a loner who moved into a small 350 square foot apartment back in 1974 and settled in for the long haul.

The short version of the article above was that a developer eventually paid Herb $17-million to move out of his apartment AND let him live in another $2-million apartment for the rest of his life at a newly negotiated LOWER rent of $1 – a month!    All this in order to be able to demolish the old structure on Central Park West for which they had purchased for $401-million and developed for $1-BILLION.

I would LOVE to be that guy!

Argh! Can you imagine?    You move into a little studio for $750 per month and eventually turn it into $17-million and a free apartment for life?   And you never put up a dime of your own money?     Amazing!

What kills me…

The whole notion of real estate ownership is that YOU (as the owner) should be allowed to do whatever you want – because it’s YOUR property.

It makes my entrepreneurial soul cringe when I hear that a property owner is losing $1800 a month because a rent-controlled apartment SHOULD be renting for $2500 a month but is rent-controlled at $700 a month.    Where’s the incentive to be a landlord?     How do you plan for improvements?    Besides the fact that you can’t afford to upgrade the apartment, nor why would you when someone is paying below-market rent….   But what if the building needs upgrades like an updated fire-safety system, or a new roof, or new elevators?

What would YOU do if you were in Herb’s shoes?

Or better yet, what would you do if you were in the OWNER’s shoes?

We don’t have rent-control in South Florida so this isn’t an issue that we have to deal with here.   In fact, I’d say that the climate is even more favorable for landlords and property owners in South Florida.    A lot of landlords let tenants rent on month-to-month leases, which are convenient for the tenants that need flexibility (or are deadbeats who are barely living month-to-month anyways) but it sure makes it easy for a landlord to give notice and move a tenant out of an apartment for nearly any reason.   In fact, on month-to-month leases here in Florida, without a longer notice written into a lease, the required notice is TWO WEEKS!    Yikes!

You’d think this was illegal, wouldn’t you?

Check out this story from the Sun Sentinel about a condominium association near Venice, Florida.     This association just passed a new rule prohibiting leasing to unmarried couples.    The only permitted lease or sale is to a single person, or to a married couple consisting of a husband and wife.

And here in Florida this is perfectly legal.

 

 

This surprised the daylights out of me as I came from Chicago where people were protected by three layers of laws.    The city of Chicago had an equal protection law; Cook County had a Human Rights Ordinance; and the State of Illinois also passed a law banning discrimination against discrimination of gay couples (and unmarried domestic partners) in most accommodations.

Well it looks like we have some work to do down here in the backwater of Florida.

I am officially declaring a moratorium on red walls when putting your house on the market

Nearly forever in the realm of Real Estate has the Red Accent Wall been the darling of would-be decorators and home owners that desire a little extra spice in their interiors.

Your Guide is officially declaring the era of the Red Dining Room and/or Red Powder Room over. At least when it comes time to sell.

Though the pop of color could be interpreted to “add some character” all too often it’s the wrong kind. Red isn’t everyone’s cup of tea. And it is VERY hard to cover up – or at least buyers perceive it as a challenge to cover up.

Invariably, these red rooms get passed on from homeowner to homeowner because no one has the courage or tenacity to apply layer upon layer of KILZ primer to undo the dastardly deed.

In the photo below, the third set of home owners is currently enjoying the sizzling red dining room (VHT did seem to go overboard with the color correction, nonetheless it is RED.)

Let’s all agree: Henceforth for a pop of color, we will add it with throw pillows, an accent blanket and a vase of roses!

1221 grace dining2 (Medium)

Red Dining 1

Red Kitchen 1

Red Bath 1

What a year in the car biz has taught me

 

After moving to South Florida from Chicago just about two years ago, I of course jumped both feet into the real estate business in Fort Lauderdale.

But whether I was uncomfortable with the local customs, or my unfamiliarity with the marketplace, or even perhaps just because entering a new marketplace was a daunting task, I got cold feet.

It was just about 13 months ago that a friend of mine recruited me into the car biz and I found myself selling for Toyota in Fort Lauderdale.

Well I’ve worked my ass off for a year, and put in a boat-load of hours on the sales floor.    But just last week I resigned and have jumped back into real estate with both feet.

I have a myriad of take-away experiences from selling cars.

First of all the work ethic is strong.    The minimum day is around ten hours, and many days stretched to 13 or more.

The work WEEK is also long – with six days as the minimum and often seven days of selling.

The car business also makes you brutally efficient on the phones.    Days with over 100 phone calls were not uncommon at all.    We worked the telephones from early to late.    If there was a hot prospect we could not reach, we would often call as many as five times a day.

(As an aside here, it’s likely I’ll be calling YOU one day soon!)

But coming back to Real Estate, and to my home at Keller Williams in Fort Lauderdale, I have found myself feeling like I’m back at home.

I’m paraphrasing from author Dave Ramsey, but I’ve found FIVE THINGS here that were either missing or lacking from my experience in the car business.

  • People Matter – Everyone has a story and I enjoy sharing mine just as much as catching up on my colleagues, and my clients.
  • An incredible team and a culture of excellence matters – You would think that working for such a respected brand as Toyota would instill the culture of excellence, and I truly believe this is what Toyota strives for.    But the message gets lost at the store level and the drive for production on a daily basis sometimes buries this message.
  • Slow and steady matters – the sales cycle in the car business was often only a few hours from beginning to end, and the opportunities to cut corners were rampant.
  • Financial principles of discipline matter – I really had not complaints here as the rewards could be great in the car business.
  • A higher calling matters – this one really resonated with me.    My personal beliefs and the Keller Williams organization really instill a value system that is more than just trying to accomplish one transaction after the next.    This seemed to be lost on my mentors in the car business as each week the pitch at the sales meeting to the sales force focused entirely on how much money would be made if we only put in the extra hours and devoted the extra effort to this next sales cycle.

All in all, I think I’ve learned a lot.     And I’ve fulfilled a fantasy.    I had always wondered how much fun it would be to sell cars for a living.     And now the dream is satisfied!   

I’m very glad to be back where I belong and am looking forward to making your dreams of a home in the Sunny South Florida a reality.