Looks like there are going to be more changes to laws on short term rentals.

As we are all aware Las Vegas and Clark County has seen a growth in population and the housing market in the last few years.  With growth comes change – and we will see changes in laws regarding short term rentals.

Make sure to check the HOA rules on rentals to start before you do anything. Almost all HOAs have a minimum of 30 day leases required and some are as much as a year.

To bring those who do not know the current rules here are what is currently on the books:

1) City of Henderson – minimum 30 day lease

2) Unincorporated Clark County – Minimum 30 day lease

3) City of North Las Vegas – no rules at this time

4) City of Las Vegas – You must apply for, and get approved, for a special use permit – only 167 approved to date – approval process includes inspections by the city, the neighbors giving their approval, the HOA approving, getting city and state licenses, paying hotel room tax, etc.

As a recent article in the RJ stated – there are approximately 3,000 illegal short term rentals in the city of Las Vegas and another 4,000 in the county. Last year, in the entire valley, there were over 500,000 booked nights in the short term rentals. In 2012 it was less than 20,000.  That is quite a difference!

If you don’t think the hotels have taken notice of this jump in short term rentals you may be enjoying the recent marijuana law changes too much.

Last week, Lois Tarkanian, proposed a revision to the law eliminating short term rentals in the City of Las Vegas. There are a number of reasons for this:

First and foremost– a short term rental is a commercial enterprise (like a liquor store or an auto repair shop) and people don’t want those in residential areas.

Second – the number of complaints the police, and government officials, have received have skyrocketed. Complaints such as loud parties at all hours of the night, cars parking and blocking neighbors driveways, trash and damage to neighboring homes, fighting, belligerent people, the list goes on and on.

Third- many lawsuits by other commercial businesses (like liquor stores or auto repairs shops) have been denied because they wanted to open in a residential neighborhood.

Fourth- lawsuits by owners who have been denied permits to have a short term rental stating that the process is unfair.

Fifth – lawsuits by people living in the city and county against the city and county for not enforcing the laws that are on the books.

There is a lot of support in the council for this change, and you can bet there is a lot of money pouring in from the hotels to encourage passage of this law. It was not in the article but the county code enforcer said that the city is not processing any more applications until this is resolved. He also said that the city, county and Henderson are “aggressively” going after people who are illegally doing short term rentals sending out up to 500 cease and desist orders per week. People, who are trying to hide their addresses from the ads and think they won’t get caught, are getting caught by code enforces posing as potential tenants. With a $1000 a day fine, this is turning into a big money maker for the various cities and counties. I guess someone has to foot the bill for all the Tylenol (from the headaches…)

I did a short 4 minute video on this subject in February 2018 – click on this link to view (https://youtu.be/gk5FszAemUs)

As I learn more I will pass it along!

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day….Jeff

Home Appraisals are (usually) Necessary When Buying a Home

Whether you are buying or selling, if the buyer is not paying cash (and on occasion, even if they are) the home appraisal is a one of the most important steps in the process and could make or break a deal on either side. So what exactly is a home appraisal?

A home appraisal is an expert opinion of a home’s value and it assures the lender that their loan will be in line with the fair market value of the property. A home appraiser is a licensed professional who has completed the required training, apprenticeships, and exams to carefully and impartially provide opinions about the value of real property, according to the the world’s leading organization of professional real estate appraisers.

This means your appraiser is not going to give a low estimate because they didn’t like your furniture. But rather, according to the Appraisal Institute, appraisers put together a series of facts, statistics, and other information regarding specific properties – then analyze this data, and develop opinions of value. The appraisal report will include recent sales information for similar properties (comps), the current condition of the property, and the location of the property as to how the neighborhood impacts the property’s value.

In most cases the buyer will need to cover the cost of the appraisal. Both the buyer and the seller should meet with their agent and find out what comparable homes in the area have recently sold for, which will give clues as to how much the property will ultimately appraise for.

If an appraisal comes in lower than you feel it should, the seller’s agent can use his/her knowledge of the area to challenge the appraisal. Home prices in the Las Vegas valley have been increasing so quickly that the comps that sold six months ago don’t yet reflect this improvement. There may not be adequate comps in your area, so the appraiser might have referenced comps from a less desirable community.

You have the right to see a copy of the appraisal report. Look it over as carefully as you look over your credit card statement each month you might just find errors or omissions and if that is the case the appraisal can sometimes be corrected.

If the appraisal is not adjusted enough to get to the original contract price, and both parties still want the sale to go through, it could make sense to split the difference, with the seller dropping the price a bit and the buyer adding cash to the down payment. For example, if the difference between the sales price and the appraised value is $10,000, the seller could lower the price by $5,000 and get the buyer to bring another $5,000 to closing. This solution depends entirely on the relative willingness and financial positions

of the two parties. Of course, neither party is obligated to compromise and if a new agreement is not reached, the buyer and seller can part ways and (most real estate contracts contain a provision that states) the buyer will have their earnest money returned to them.

When an appraisal comes in low, don’t panic. Remember to stay calm, assess the situation, and let your agent walk you through the process. Often, there is a fair and equitable resolution for all. It just may take some extra time.

Are you ready to buy or sell a home? Do you have a need for commercial / industrial / retail space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day….Jeff

Summerlin attracting more Commercial Development

The office market in the Las Vegas Valley has been marching forward on the path to recovery after the Great Recession. The master-plan community of Summerlin, known for its award winning home development and Downtown Summerlin, is expanding the development of office space buildings due to a great demand.

The Howard Hughes Corp. expects to complete the six-story Class A office building in Downtown Summerlin this fall.  They already have many spaces preleased according to Summerlin president Kevin Orrock.  This is the second office building in the open air mall with many types of tenants like attorney offices, brokers and gaming technology companies.

Orrock stated “I think it gets down to what we’ve done here in Summerlin.  We’re providing an urban core.  We’re providing a place where people want to live, work and play- plus the sports venues that are here or will be here.”

A couple of miles away from Downtown Summerlin, the Howard Hughes Corp is almost finished with another office development for Aristocrat Technologies, an Australian slot machine maker.

The commercial submarket in Summerlin has seen less vacancy averages than other commercial markets in Las Vegas.  A senior director at Cushman & Wakefield said that Summerlin is the most desirable location for commercial consumers in the valley.  He also said that many employers are considering millennials predominantly when making decisions on the location of their offices.

Do you have a need for commercial / industrial / retail space? Are you ready to buy or sell a home? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

CapRock Partners from California Invest in Las Vegas

 

CapRock Partners, an industrial real estate firm from Newport Beach California has just acquired about 300,000 square feet of multi-tenant industrial space in the western and southwestern part of the Las Vegas Valley.

Taylor Arnett, vice president of acquisitions at CapRock, stated “An estimated 6 million square feet of industrial space is set to come on-line in 2018 and similar figures for 2019, with more than 90 percent of those projects estimated to be big box distribution space.”

CapRock owns and invests in multi-tenant industrial properties with smaller tenants and they see this type of property as hard to find in Las Vegas at the moment. A good reason for them to invest in the Las Vegas area, and they are looking at other sites to develop.

Brian Gordon, principal at Applied Analysis, agreed that most of the industrial ventures in Las Vegas are aimed at larger tenants. He believes that multi-tenant buildings can be a main component in the industrial market. With Las Vegas growing as fast as it is, having industrial space for smaller tenants can only be seen as a huge plus for companies that would like to move to our great city.

Do you have a need for commercial / industrial / retail space? Are you ready to buy or sell a home? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

Commercial Real Estate Is Moving In A Positive Direction In Las Vegas

Look around the Las Vegas Valley, strip malls have more retail spaces filled (just a few years ago they were vacant).  The Boulevard Mall has converted space for offices that were once retail stores. The conversion of retail spaces in the mall to call centers has been very successful largely due to amenities in the mall and readily available parking.  In Downtown Summerlin the second office tower (Two Summerlin) is well on the way to be completed with lots of interest in available spaces.

Daniel Palmeri, senior director at Cushman and Wakefield stated “We’re kind of seeing a westward movement of companies looking to be in Summerlin or the west side of town.” Brian Gordon, principal at Applied Analysis, stated “The general feel is that the economy is remaining relatively healthy, and we’ve moved beyond the effects of the past downturn and looked more toward growth in the future.”

We are seeing a lot of new segments being added to the Las Vegas economy – Major League sports, the tech industry and an increase in tourism. The Golden Knights have already made an impact on the economy and the commercial real estate market.  There are more retail stores thriving around the T-Mobile Arena and adding employment opportunities.  The Raiders will be in Las Vegas by 2020 and more retail and office space will be filled by their employees.

The tech market has seen an increased local presence of national companies, as well as the acquisitions of local startup companies. This has made Las Vegas a credible hub for technology companies with more opportunity for upward movement for local tech talent and a good reason for more tech talent to move here.

Current Las Vegas market trends data indicates an increase of +2.8% in the median asking price per sq ft for office properties compared to the prior 3 months, the current median price of $176 per square foot in Las Vegas.  In the industrial market the median price is now $118 per square foot and retail space prices are still rising at a slower pace.

Do you need commercial space? We can help you with that… just call us at 702 SELL NOW or click on this link to my website http://www.702SellNow.com

Choose to have an amazing day…..Jeff

New Rules for Short Term Rentals in Las Vegas

Any landlords that wish to offer short term rentals through services such as VRBO, AirBnB & Homeaway are required to comply with Las Vegas Municipal Code Section 6.75.

To read the entire statute, click this link; https://goo.gl/bAwu5x

Here are what I feel are the highlights;
On June 21, 2017, the Las Vegas City Council passed Bill No. 2017-16 by a vote of four to three, requiring that all short term rentals be required to obtain a special use permit prior to commencing operations.
First, the owner must apply to the City Planning Department for that permit for each separate unit. Then, have the property inspected to verify the number of bedrooms and compliance with safety and other minimum housing requirements. Once the Conditional Use Verification is approved, the applicant is also required to submit a business license application and affidavit to Business Licensing by the next business day.

In order to secure the permit, owners are required to produce proof of liability insurance for $500,000.00 and install letter-size placards outside the properties with contact information and maximum allowed occupancy. Any until with more than five bedrooms is now required to maintain a resident manager on site during the term of the rental.

Other provisions of Municipal Code Section 6.75 state that the owner must collect and remit Room Tax and it appears you cannot require a minimum number of nights – even over big events like New Years Eve.

If you have a short term rental and don’t want to deal with the new rules, we will sell it for you quickly! Just call us at 702 SELL NOW (702-735-5669)

Shockingly good news; (IMO) It’s about time Green Tree was punished

As a real estate agent who has successfully negotiated many short sales, I eventually had my short list of horrible lenders to deal with. Green Tree Funding was on that list. Funny story; few years back, I was complaining over the phone to Green Tree about how horrible they were, the woman on the other end of the phone told me I was exaggerating, so I walked around my office with her on the phone and took an impromptu survey. Without explaining to my fellow agents who was on the phone, I asked several of them what they thought of negotiating short sales with Green Tree. As near as I can tell, most of them probably figured I was having a conversation with another Realtor, and they all in run either said that they had not dealt with Green Tree at all, or that they hated dealing with them. One agent, Paul, realized asked me (embarrassed) after he answered if that was Green Tree on the phone.

Well they were just formally punished by the CPFB (Consumer Finance Protection Bureau) for (allegedly) “mistreating borrowers attempting to avoid foreclosure on their homes.” The federal agencies announced last week that they will compel Green Tree to pay a total of $63 million – $48 million in “redress to victims” and an additional $15 million civil penalty – for (allegedly) refusing to honor loan modifications on mortgages transferred from other servicers, demanding payment for the provision of loss mitigation options, and charging borrowers “convenience fees” for pay-by-phone services while presenting those payment services as the only option. Later, Green Tree also (allegedly) withdrew from those same accounts for more payments even though the original payment had been presented as a one-time withdrawal. Green Tree also (allegedly) harassed delinquent borrowers with “anywhere from seven to 20 phone calls per day” when they fell as few as two weeks behind in their payments; these calls included threats of wage garnishment and arrest.

The feds have opted to allow Green Tree to refuse to admit wrongdoing in return for paying through the nose. Richard Cordray, CFPB director, clearly believes that this is the right option in light of the huge payday for the government and the victims. “We are holding Green Tree accountable for its unlawful conduct,” he said in a public statement about the settlement. In the meantime, all entities other than Cordray must continue to refer to the alleged misdeeds as just that, alleged, because Green Tree has not admitted or been convicted of bad behavior.

FTC blogger Lesley Fair recently wrote a column praising the settlement, pointing out that the move will encourage other loan servicers to actually service loans rather than “making misleading statements about what people owe, [causing] deceptive delays, and [making] unauthorized withdrawals from [borrowers] accounts.” Since many customer complaints hinge on Green Tree’s refusal to correct “iffy information” in new loan portfolios, the company also has promised to institute a “comprehensive data integrity program” designed to make sure customer accounts hold the right information and are being handled appropriately. I am not as optimistic as Lesley.