North Las Vegas Now Allows Short Term Rentals
Last week, North Las Vegas City Council approved short term rental licensing. This is huge for our investors who want to leverage even more money out of their property. Here are the basic rules:
- Ownership must be over a year. This eliminates all newcomers.
- HOA rules have priority. If your property is an HOA, there is a 95% chance you have a 30 day restriction.
- There is a 660 ft distance rule AFTER the first 60 days. This means if you want licensed, you should get it now.
- The cost of the license is $1,000.
- Noise monitoring equipment will be required. This is recommended anyway.
- The owner must apply for the license.
Generally, a short term rental nets about 25% more than a regular rental. Short term rentals gross about 3 times rent. However, utility expenses, management and miscellaneous repairs are higher than a normal rental. There is way more than meets the eye on managing these. We charge 10% and $1000 to start it up. If you want to learn more about short term rentals, please read this page first.
Government & Economy
Our governor uses statistics to keep the state locked down. We are pretty much leveling out at about 3 people a day kicking the bucket due to Covid. I’m not convinced hospitals are reporting this correctly but I’m not going any further with that conspiracy. I get too many hate mails and unsubscribers. lol .
Bars are back open and restrictions are lifting. HOWEVER, 4 major casinos are closed and the unemployment rate is 13%. A lot of jobs will never come back.
My prediction was wrong on the number of foreclosures increasing. There are currently 14 foreclosures on the market which is surprisingly low. The only reason why properties are still selling at list price is because there is very little inventory. The median sale price has flattened off and will start decline in the winter. We predicted a correction back in October 2018 and we are sticking to our expectations of a considerable drop in prices. We expect prices to drop about 35%.
When will he hit bottom? We are guessing middle to late of next year. As we approach the bottom, I be increasing the frequency of these broadcasts. Investors who followed our advice in the last recession snapped up properties and made significant profits. We will do it again. Don’t worry, we will let you know when it’s time to buy.
Eviction Moratorium Ended
This madness finally ended. We all held our breath on October 15th fearing the governor would back pedal again. There is still come confusion as to what will happen if a tenant plays the “CDC Eviction Card.” We honestly don’t know what judges will do. So far, our eviction process has been effective.
Less than 3% of our portfolio is non-performing. The numbers above describe most of our competitors. Our effective system for screening tenants uses over 20 years of experience and real data to screen out bad tenants. We rock! We place excellent tenants in our vacant units by offering rents a bit below market and raise our entry standards. Rents in general will be decreasing across the board by about 5% by the end of the year. Tenants in our portfolio who have lease expirations will be given an opportunity to sign new one year leases without an increase.
What can you do in the meantime?
Get your estate in order. This page covers the basics of asset protection. If your properties are still held privately, now is the time to work on your estate. Don’t let let a bulldozer demolish your hard work.
There is nothing to buy at the moment so do some house cleaning. I took the picture below last week. It shows a vacant lot where once stood a commercial building. The commercial building was owned by one of our clients who didn’t listen to our warnings. We must have told that guy a hundred times to get his assets in order. This tragedy is what happens when investors think they are going to live forever.