COVID-19 SITUATION ROOM
A trusted resource for all COVID-19 related information
OWNERSRESIDENTS

Oakland

Property Management

Our team of local professionals at Mynd Property Management are different than other Oakland property managers. Servicing the East Bay including the surrounding Alameda, San Leandro, Piedmont, Bay Farm Island, and Canyon areas, we leverage real-time data to consistently better our services, providing owners with seamless management experience.Customers working with Mynd can rely on us as their trusted partner, providing them with a healthy investment, and their residents with a happy home. Residential real estate joins shipping and automobile manufacturing as Oakland’s greatest investments. It’s time to make your real estate investment work for you

Get Started

It's Quick & Easy

Thank you!
Your submission has been received, and we will contact you shortly!
Oops! Something went wrong while submitting the form.
Mynd's rental income guarantee

Rental Income Guarantee

We protect your rental income

If we place a resident and they fail to pay rent at any time during their lease, we reimburse you up to $5,000 in lost rent while we resolve the situation.

Mynd's property damage protection guarantee

Property Damage Protection

WE PROTECT YOUR PROPERTY

If a resident we place moves out and leaves behind property damage in excess of their security deposit, we will cover the difference, up to $5,000.

Mynd's eviction protection plan guarantee

Eviction Protection Plan

WE PROTECT YOU

If a Mynd-placed resident fails to pay rent and an eviction is required, Mynd will cover the court costs and legal fees up to $5,000.

SELECT YOUR AREA TO VIEW PRICING

Pricing Plans That Suit Your Needs

CORE SERVICE PLAN

$99
Monthly Management Fee
75%
Rental Leasing Fee
$299
Lease Renewal Fee

AVID INVESTOR PLAN

$149
Monthly Management Fee
50%
Rental Leasing Fee
$99
Lease Renewal Fee
checkmark - feature included
Rental Income Guarantee
checkmark - feature included
Eviction Protection

PEACE OF MYND PLAN

$199
Monthly Management Fee
0%
Rental Leasing Fee
$0
Lease Renewal Fee
checkmark - feature included
Rental Income Guarantee
checkmark - feature included
Eviction Protection
checkmark - feature included
Property Damage Protection

Don't Take Our Word For It

Results You Expect

Your rental property is one of your most valuable assets. You expect concrete, tangible results, and Mynd delivers. We focus on measurable results that you can see.

Mynd offers faster leasing times

Faster Leasing

Quicker than average leasing times.

Mynd responds quickly to resident and owner communications

Quick Response

Less than 4 business hours for owners, less than 8 business hours for residents.

Mynd finds high quality residents

Quality Residents

Higher than average resident quality score (720+)

Mynd offers low delinquency rates

Low Delinquency

No need to worry about rental payments, less than 2% delinquency.

Mynd's high customer satisfaction scores show high resident satisfaction

High Resident Satisfaction

Consistently high customer satisfaction scores (Better than 4/5)

Mynd's NPS score shows higher owner happiness rates

Happy Owners

Net Promoter Score of 58 versus industry average of 7

Meet Your Local Superstars

We start by hiring the best people with deep local expertise.We equip them with the tools, technology and data. You get results.

Meet

Shea

Portfolio Manager

Shea is your local Bay Area Portfolio Manager

Oakland

In 2014, Oakland was deemed one of the best places to start a career in the US, coming in second place only to nearby San Francisco. That’s a lot of great potential tenants, and Mynd’s property managers will make sure to scoop them up and keep them. Top notch marketing, thorough screening, and excellent tenant retention means you won’t have to worry about vacancies.We’ll keep the property maintained, both in the short and long term, and we’ll respond to emergencies ASAP. We’ll also keep abreast of local ordinances and zoning changes so that you’re never slapped with a fine!

Kate
Leasing
Kathleen
Accounting
Gina
Resident Services
Matt
Maintenance

Oakland

Oakland

1611 Telegraph Ave #1200
Oakland, California 94612
United States

Mynd Property Management is local
(510) 400-5228

Oakland

Climate change has made Oakland most susceptible to wildfires. In 2017, a firestorm destroyed nearly 4,000 homes, and cost approximately $1.5 billion in damages. Explore our resources below to learn how Mynd’s property managers will keep vegetation low to protect your home, and more!

When a tenant occupies a room for only a partial term (month, week, day, etc.), the amount a landlord charges is known as “prorated rent.” 


Prorated rent is charged only for the number of days the unit is occupied. It’s based on a monthly rate rather than daily since a daily rate tends to be pricier. 


Here’s everything you need to know about prorating rent.

Why prorate? 

If your tenant moves in or out in the middle of the month or sublets to someone else, then it’s practical to use prorated rent. For example, if your tenant moves in on the 15th, which they often do, you can charge them a prorated amount for those days and then set the regular rent due on the first day of their first full month.

Explaining prorated rent to your tenant


Prorating rent isn’t a landlord’s legal responsibility, but it does help establish a good relationship with your tenant. A good relationship is essential. It makes your tenant more likely to re-sign (reducing the likelihood of vacancies), recommend other potential tenants to your properties, be a good tenant, and follow any rules you may have (like your fire prevention tips). 

How do I prorate rent?

There are four methods to calculate prorated rent. 

A Quick Math Lesson

Prorated rent at a rental property

Before moving on to the actual formulas for calculating rent, here’s a quick high school math lesson about performing the proper order of operations for mathematical equations. You’ll need to know this because the formulas for calculating rent tend to require multiple operations.


  1. Parenthesis
  2. Exponents
  3. Multiplication
  4. Division
  5. Addition
  6. Subtraction


The mnemonic device for this is PEMDAS, or “Please Excuse My Dear Aunt Sally.”

Method 1: Number of Days in the Year

This is the most accurate way to prorate rent when dealing with a year-long lease. Here’s the formula. 


((Monthly Rent X # Months in a Year) ÷ Number of Days in a Year) X Number of Days the Tenant is Paying For = Prorated Rent


Here’s the formula with a move-in date of September 15th with a rent of $1,500.


( ( $1,500 x 12 ) ÷ 365 ) X 15 = $739.73


This formula is slightly more confusing than the monthly one, so your tenants may require more explaining. The extra amount of money you'd make isn't worth the effort because a confusing formula may make your tenants feel like something fishy's going on. Best to keep things simple.

Method 2: Number of Days in an Average Month


This formula is based on the number of days per month, given that 365 days per year divided by 12 months is 30.42 average days. Here’s the formula:


((Rent ÷ 30.42) x Number of Days Occupied) 


Here’s the formula for when your rent is $1,200 per month, and the tenant is staying for ten days.


($1,200 ÷ 30.42) x 10 = $394.50


Method 3: Flat 30 Days (Banker’s Month)

This method entails diving the monthly rent by 30, no matter how many days are in the month. In some states, like California, this is the exclusive method used to calculate prorated rent. Here’s the formula.


((Rent ÷ 30) x Number of Days Occupied) 


Here’s the formula for when your rent is $1,200 per month, and the tenant is staying for ten days.


($1,200 ÷ 30) x 10 = $400

Method 4: Monthly Rent

Monthly calculations at rental properties for prorated rent

This is the formula for prorated rent based on the number of days in the month. Here’s the formula:


(Monthly Rent ÷ Number of Days in the Month) X (Number of Days of Rent Being Paid For) = Prorated Rent


Here’s the formula with a move-in date of September 15th with a rent of $1,500.


( $1,500 ÷ 31 ) X 15 = $725.80


In addition to requiring less explanation formula, the monthly formula has the advantage of making your tenant feel like they’re getting their money’s worth since it frames their rent in the short-term rather than the long term.

Considerations for Prorating Rent

These are some things to keep in mind when calculating prorated rent. Which of these influences your calculations will impact how many days you divide your rent by in your calculations.


  • The number of days in the month.
  • Months with 30 days: September, April, June, and November
  • Months with 31 days: January, March, May, July, August, October, and December
  • Month with 28/29 days: February
  • Is it a leap year?
  • What day of the month are you billing your tenant?
  • What’s the number of days in the first month?
  • What’s the number of days in the second month?
  • How much are you charging per day for the first month?
  • How much are you charging per day for the second month?
  • What’s the number of billable days in the first month?
  • What’s the number of days in the second month?
  • What’s the official start/end date of your tenant’s lease?

Tips for Prorating Rent

Your prorating policy should be in writing or your lease agreement


If it’s a leap year, divide your prorated calculation by 366 days if you plan on using the yearly formula.


It’s not your responsibility to prorate rent if your tenant signs a lease for the first of the month but moves in on a later date. Similarly, it’s not your responsibility to prorate rent if your tenant chooses to move out earlier, but their lease runs to the end of the month.


Offer a prorated rent calculator on your website. 


Find out if your state requires you to use the flat 30 method for prorating rent.

Bottom Line on Prorating Rent

Keep your tenants happy when calculating prorated rent

Prorating rent is easy to do and an easy way for a landlord to start or maintain a good relationship with their tenant. It makes tenants feel like they’re getting their money’s worth and like the landlord is on their side. 


Unless you have to use the flat 30 option, the monthly method of prorating rent is a landlord’s best bet because it’s easiest to explain to the tenant. 


And a happy tenant is the best bet for a happy landlord.


View full post

Thinking about purchasing a rental property in Tacoma, WA? Learn how looking at the rental statistics, the demographics, and having a local property manager as a partner can ensure you are looking at real numbers when deciding if the area fits your investment strategy.

Before investing in an area, you will want to look at the demographics, home prices vs rental prices, forecasted economic growth, and other important statistics to see if it fits with your investment strategy to help you reach your goals. Will the area give you the cash flow or appreciation you are looking for?

About Tacoma, WA

Tacoma, WA, one of “America’s Most Livable Cities”, is a port city on the Puget Sound and is known for being one of the most walkable cities in the US. From its beautiful waterfront to its numerous city parks that include the country’s second largest city park (700 acres), the area has seen a 12% population growth since 2010.

Tacoma property management

Tacoma offers more affordable investment opportunities than the Seattle area which can be expensive.  Cash flow opportunities are better in Tacoma because the prices of homes are not as high.  

Home prices in Tacoma

Median home price: $354,019

Home prices have gone up 9% in the past year.

 

Diverse types of renters

Commuters – Many choose to work in Seattle but live in Tacoma because it is more affordable.  

Students - Several universities are in the area including the University of Washington’s Tacoma campus, so there are a lot of student renters.  

Military - McChord Air Force Base is South of Tacoma, so there are military families renting in the area as well.  

Between the port, universities, military presence, and proximity to Seattle, Tacoma is a great area for investors looking for an area whose economy is being fueled by a diverse mix of industries.

 

Economy and industry in the area

Tacoma is the 7th busiest container-handling port and attracts businesses in multiple industries. It is known for its high-tech industry that includes Intel and Expedia which are headquartered there. Agricultural and forest products are also large contributors to the local economy.

  • Unemployment rate: 5.3%
  • Average income: $75,649

Tacoma has seen steady job growth over the last 10 years and expects 39.9% in future growth. With its strong industry presence and growth record, it is a great place to invest in rental property for less than a home in a Seattle would cost.

If you are considering investing in Tacoma, contact us at Mynd. We can help you determine if this market fits your strategy to reach your goals. If it doesn’t, we have offices in 19 markets and can help you find an area that does.

How to accurately set rent for my Tacoma, WA rental property

The rental market is cyclical, so you want to make sure you set rent to match today’s prices. Just because you rented your property for a certain amount 3 years ago doesn’t mean it will rent for that amount today. The price could be higher or lower depending on what the market says is the going rate. To avoid extended vacancy time, you will want to accurately price the property, so you are getting the maximum return while also filling the vacancy quickly.

Tacoma rental statistics

  • Median rent for a single-family home: $1750
  • More single-family homes available since 2007
  • 45% Renter Occupied
  • 55% Owner Occupied

Steve Rozenberg, Head of Investor Education for Mynd, says he sees this as a good, steady mix of renter/owner occupied homes which makes it a great market to have a rental property. You should always be able to find a renter.

Knowing the trends and statistics for the area is key to your success as an investor.  Consider hiring a local Tacoma property manager like Mynd who can help you determine the correct rent rate.  Mynd has access to proprietary information so you are getting current, accurate numbers to base your decision on. If you want to know what you can expect to rent your home for, Mynd offers a FREE rental analysis.

 

Why should I hire a property management company in Tacoma, WA?

What does a Tacoma property management company do?

They take care of the day to day operations required when you own a rental property such as:

Do you have the time to manage the property? How valuable is your time to you? If you are managing it yourself, do you know that you are doing it correctly and following the laws?

Landlords must comply with ever-changing laws and regulations

Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them.  If you must evict a tenant, there may be new laws in place that limit how you can do that. If managing property isn’t your full-time job, you are more likely not up to speed on current laws such as:

  • 120 day notice to purchase property if you intend to change the use of the property
  • 60 day notice of no cause termination of a resident
  • 60 day notice of rent increase
  • Several tenant’s rights laws. For example, tenants can complain to the city of Tacoma about code enforcement violations.

There are a lot of laws that have to do with tenant’s rights, and you must be sure you comply. If you aren’t up on the laws, you may find yourself getting in trouble which can cost you $1000s in fines and court costs.

 

Consider hiring a Tacoma property manager

Our Tacoma property managers can help you make smart decisions and ensure your property is following the laws. Mynd has in-house counsel to help ensure your property is complying with the laws.  Contact us today at Mynd about property management in Tacoma or finding your next investment property in one of the19 markets we serve.

View full post

As an investor, you want to know that investing in a rental property in Everett, WA aligns with your strategy and helps you achieve your goals. Identifying the right data and numbers to calculate your return is an important step in making an informed, smart decision.  Having a local partner like a property manager makes this process easier.

What kind of return do you want from your investment property?

Are you looking for monthly cash flow? Is the property you are looking at going to give you what you need to at least cover your expenses?  Are you only interested in appreciation or debt paydown?  Your strategy must be defined before you start looking for a property.  

About Everett, WA

Everette is a coastal city on the shores of Port Gardner Bay and is located 25 miles north of Seattle. It attracts families with its world class schools, over 30 city parks, and numerous outdoor sports, activities, and art experiences.

Everett population and home prices

  • Population: 111,000
  • Average age: 33
  • Median income: $57,999
  • Median home value: $362,000

 

The median income for the area is about average for the US, but the home prices are significantly higher than average. You might be able to make enough cash flow to cover your expenses, but you are more likely looking at making your money in appreciation.

Many of the homes in the area were built between 1970-2000.  Being older properties, they may require some maintenance or updates to attract a quality tenant and meet Property Code.

 

Everett Property Management

 

Industry and the Economy

  • Unemployment rate: 5.8%
  • Cost of living index: 116.2  (US average is 100)

Boeing’s 747, 767, 777, and 787 Dreamliner airplanes are constructed in the world’s largest building located in Everett, and they offer a popular tour of the facility. Everett’s proximity to Seattle is an advantage because it is going to be fed by the strong industry nearby.

Best neighborhoods in Everett

  • Darlington
  • Edgewater
  • Pinehurst
  • Riverside
  • Bayside
  • South Forest Park

When you buy a property in one of the more popular areas, you are probably going to see more appreciation. With an average age of 33, residents are likely families interested in the quality schools in the area.  They are also more likely looking homes with multiple bedrooms for their growing families.

 

Talk to an Everett, WA property manager about the local market and what trends they are seeing. They can answer questions like:

  • Is the city growing?
  • Are rents going up or down?
  • What is the average eviction rate?
  • What are the average days on market?
  • What is the average vacancy?
  • What type of homes are rented quickly? What are most people looking for?
  • Are there certain features people are looking for in a home?

These are the questions you want answered before purchasing a property, so you have the proper expectations. Contact us at Mynd for more information on the Everett area. They can tell you what types of properties are renting quickly, what renters are looking for, and more.

If Everett doesn’t fit your strategy, we can help you find a market that does. Mynd has offices in over 19 markets. Our local property managers can use Mynd’s proprietary data to help find you properties that match your strategy, whether you want to invest locally or diversify across several markets.

 

How to Accurately Set Rent for my Everett, WA Rental Property 

It is important to know what the market is dictating when setting rent for your Everett rental property. The goal is to get the right amount of rent while leasing it quickly, so pricing it right is critical.

Leasing has seasons

You might not be able to get the same amount of rent if you lease your property in the Winter (off season) vs the Spring/Summer months (peak season).

The economy can affect rent

If the industries in the area are in a downturn or upturn, that can influence the rent you can expect to receive.

Everett rental statistics

  • 42,000 housing units
  • 37% Owner Occupied
  • 67% Renter Occupied
  • 44% single family homes 36% Apartments
  • Median rent: 1,990
  • 48% of homes were built between 1970-1999

The rent amount will vary depending on the property type, square footage and number of bedrooms.  When comparing rents, look at properties that are the same as yours. Being that many of the homes are older, you may find you can get a little more money in rent by doing some updates to the property.

Mynd’s Everett Property Management company offers a FREE rental analysis so you can see what your property can expect to rent for.

 

Why Should I Hire a Property Management Company in Everett, WA 

When you own a rental property there are a lot of day to day operations to take care or not to mention all the ever-changing laws you must follow.  Should you continue to do this yourself or does it make sense to hire an Everett property management company?

 

Treat your investment like a business.

If you own multiple rental properties or plan to in the future, the tasks required increasingly take up more of your time.  Keeping up with all the laws you must comply with can become a heavy burden.  Maybe you got into investing because you wanted a safe, secure retirement investment or passive income, but you did not realize the amount of time that was involved in managing it yourself.  You thought you were gaining free time and ended up having a second job.

It is entirely possible that you will not end up where you hoped because you may not be doing something right. Not complying with a law could result in your ending up in court owing $1,000s in fines.  

Getting that great deal when you buy the property is only the first step in the process that leads to your success. Steve Rozenberg, Head of Investor Education for Mynd, thinks it is important to have a team to help you maximize your return.

 

What does an Everett property management company do?

They take care of the day to day operations required when you own a rental property such as:

They know the laws and regulations

You must follow Federal, state, and local Property Code that dictate how a property must be maintained. When it comes to fixing things in the property, who is responsible for them? The tenant or the landlord?  There are things you can’t ask on an application or during the screening process.

Landlords must comply with Federal, state, and local laws that apply to rental properties. These laws are constantly changing, and as a landlord you are expected to keep up with them.  If you have to evict a tenant, there may be new laws in place that limit if or how you can do that.

Maintenance issues

Mold can be a problem in the Everett area due to the amount of rain it gets. You will need to make sure the roof, ventilation, and plumbing is in good shape to prevent mold.  There are laws that protect the tenant to ensure they have a safe home to live in. Property managers know what you have to do to comply with any laws in regards to Property Codes.

If you don’t have the time or desire to keep up with the laws and regulations, it might be a smart decision to hire a knowledgeable property manager.  Mynd has local property managers that know the laws to ensure you are following them as well as in house legal counsel.

A good property manager helps you make smart decisions and ensures your property is following the laws. Contact us today at Mynd about property management in Everett or for help in finding your next investment property in one of the 19 markets we serve.

View full post

The development of new rental units skyrocketed in Oakland in 2018 as more businesses, especially tech companies, flocked to the East Bay from San Francisco. This mass exodus has placed upward pressure on regional rents over the past two to three years, thus justifying the construction of new, ground-up multifamily properties. More than 11,000 units were under construction at the end of 2018 in Oakland, which is more than the number of units planned for San Francisco or San Jose. View a list of some of the most notable projects currently rising in Oakland, courtesy of Oakland Magazine.

Downtown Oakland Remains a Hotbed for Growth

More than 45% of the new apartment supply – or 5,000 units – is coming online in Downtown Oakland. While primarily aimed at wealthy renters, this new inventory is a welcomed addition. It's welcome because booming demand has led to strong rent growth and a lack of desirable options for renters.

Aerial View of Downtown Oakland California

As Oakland property owners know, new units have been leased up quickly throughout 2018. Vacancy remains at the historically low, despite this recent addition to supply. Yet, as multifamily development continues to increase and cranes keep filling the skyline, market analysts expect vacancies to rise moderately through 2020. However, vacancy for 4- to 5-star properties could peak at a high of 16% in 2020 as a possible economic downturn looms in the region. As a result, vacancies for 3-star buildings are expected to remain relatively stable through next year, according to CoStar. Therefore, Oakland property owners may have an easier time leasing up mid-tier properties, which are always in demand during every economic cycle.

Traffic Prompts Building Near Public Transit

Over the past several years, traffic congestion has plagued the entire Bay Area, clogging up major freeways and thoroughfares from Livermore to San Rafael and then down to San Jose. As a result, developers are building rentals within walking distance of BART stations and other public transit. Savvy investors may want to target these infill locations for long-term investment opportunities.

Bay bridge traffic

How has this onslaught of new construction impacted the Oakland/East Bay rental housing market as we approach the second month of 2019? Our latest State of the MYND East Bay/Oakland report takes a look. The report also contains a wealth of real estate trends to watch in the East Bay, including:

  • Rental rates
  • Vacancy forecasts
  • Construction starts
  • Local infrastructure

If you own Oakland rental property, or plan to invest in 2019, this resource is a must-read.

View full post

At Mynd, we want you to think of us as more than just an Oakland property management company. We want you to view us as your investment partner.

And as your investment partner, we scour listings and pore over endless research briefs to stay up to speed on market trends. What are occupancy levels? Asking rents? How much new supply is coming online? These all impact a landlord’s pro forma and must be monitored closely.Let us do the heavy lifting.Below is a snapshot of the Oakland Multifamily Market heading into Q3 2017. Data courtesy of the CoStar Group, Real Capital Analytics, and Marcus & Millichap.Oakland Multifamily Market Highlights

  • The Oakland multifamily market has been the beneficiary of a booming local economy and new household formation. People are starting to see Oakland as a viable () alternative to rentals in the San Jose or San Francisco metro areas, and as a result, are moving to Oakland in droves. The Oakland area is expected to add another 136,300 residents () between 2017 and 2022.
  • As of Q1 2017, an estimated 43% of Oakland households were renters.
  • Total employment in Oakland increased 2.8% between Q1 2016 and Q1 2017. Oakland employers added an estimated 31,400 jobs during this period. These jobs were heavily concentrated in government () and education and health services (). Job growth is expected to climb another 2.2% in Oakland this year.
  • Revitalization efforts in downtown Oakland have led to a boom in new multifamily construction. Approximately 1,740 new apartment units came online last year. That number will nearly double in 2017 with the delivery of an estimated 3,300 units over the course of 2017. The majority of these units are located in downtown Oakland, with some real estate experts expressing concern that the urban core may be reaching its saturation point of high-end units.
  • Multifamily apartment rents have climbed a staggering 6.0% so far this year. As of the end of Q2 2017, the average effective rent in the Oakland metro area is now $2,190 per month. Class A multifamily assets have experienced the most robust year-over-year rent growth, increasing 7.3% since Q1 of last year. The average Class A rent in Oakland is now $2,781 per month.
  • Vacancy rates in Oakland have climbed 30 basis points this past year but remain low, at just 3.1%. Elevated vacancies are most pronounced at newer properties. At buildings constructed since 2010, the average vacancy rate was 6.3% as of the end of Q1 2017.
  • Despite record supply growth, experts anticipate the vacancy rate across metro Oakland to increase a meager 20 basis points this year.

Oakland Submarket Trends ()SubmarketVacancy RateY-O-Y Basis Point ChangeEffective RentsY-O-Y % ChangeHayward/ San Leandro/ Union City2.1%40$1,8932.7%Fremont2.2%-10$2,242-0.5%Concord/ Martinez2.8%40$1,8732.5%Northeast Contra Costa County3.1%40$1,5487.9%San Ramon/ Dublin3.1%-40$2,2511.4%Livermore/ Pleasanton3.6%20$2,2552.2%Walnut Creek/ Lafayette3.7%90$2,2577.8%Northwest Contra Costa County3.8%0$1,6356.4%Oakland/ Berkeley4.8%130$2,5763.8%Overall Metro3.1%30$2,0973.4%Sources: CoStar Group; Real Capital Analytics

Oakland Multifamily Investment Trends

The excitement over Oakland’s multifamily market has drawn competition from additional investors, driving up prices and suppressing cap rates in the process.Investors are increasingly opting to buy and hold their Oakland assets which has limited supply and led to significant price appreciation. As evidence:

  • Transaction volume has decreased 6% over the past year;
  • The average price per unit increased a staggering 19% to almost $236,200 per door; this marks the third straight year of double-digit price increases; and
  • Year-over-year cap rates declined in Oakland; average cap rates hover just around 7%.

In Oakland, the bulk of trading continues to be in the Class C multifamily segment. Class C properties offer higher returns and there’s more supply than either Class A or B in Oakland. The majority of trading occurs in downtown Oakland and Berkeley, though investor interest has picked up in Fremont and Hayward over the past year as well.Demand for Oakland multifamily apartments is expected to remain strong for the latter half of 2017, driven by demographic trends and a robust local economy.As your investment partner, we will continue to monitor these market trends throughout the year.

View full post

Will the Oakland Raiders Departure Affect Local Real Estate?

It’s only April but all eyes have been on the NFL lately. There was another major shakeup in the league last week as the NFL gave its approval for the Oakland Raiders to move to Las Vegas. The move had been rumored for years, and comes on the heels of the St. Louis Rams and San Diego Chargers announcing their relocation to a shared stadium in Los Angeles.Raider Nation is heartbroken. I am personally sad because Head Coach Jack Del Rio coached at the New Orleans Saints when I was there in the late 90s. Jack is a great coach, but more importantly, a great person. Not having him in the Bay Area is going to be a big loss.The team has already left its home city once before. Fans believed the Raiders’ return to Oakland in 1995 meant the team was there for good. But once again, Oakland is being abandoned.Will Oakland real estate be abandoned next?Given the recent news, we wanted to take a look into whether the Raiders’ departure will affect local real estate. Will real estate values plummet around the Oakland Coliseum? And what impact will the move have on the city of Alameda, where the Raiders headquarters and training facility are based?Good news: there’s no reason for Oakland and Alameda property owners to panic. Most NFL players rent due to the transient nature of playing in the NFL so the Raiders move shouldn’t cause any widespread sell off. If anything, it should open up some rental opportunities for others.On the whole, we expect the area’s real estate market will remain strong – and perhaps improve – once the Raiders leave.It may sound counterintuitive. The Raiders are the fourth largest employer in Alameda, and tens of thousands of fans descend upon Oakland for the Raiders’ home games. But believe it or not, a recent analysis finds that there has been no measureable improvement in Coliseum-area housing prices since the Raiders’ return to Oakland in 1995.We ran a quick search using Collateral Analytics and found that since 2002, homes in Oakland appreciated an average of 6.9% per year, whereas in the Coliseum zip code (), homes have only appreciated an average of 3.8% per year.Another survey finds that as of last year, apartment rents near the Coliseum were 31% lower than apartment rents citywide.It is important to remember that housing prices are a reflection of the region’s economy—and the Bay Area’s economy is one of the strongest in the nation. So on the whole, we suspect the Raiders’ move will have little impact on the local economy.“The city of Oakland and county of Alameda, economically, won’t even notice that the Raiders have left,” says Rodney Fort, a sports management professor at the University of Michigan. “The history of teams leaving has been no noticeable blip whatsoever in the region’s economic activity.”Holy Cross economics professor Victor Matheson notes that the Coliseum hasn’t added much to the region’s economy, anyhow. “You’ve had this stadium there for 40 years, and yet all you have is basically this gigantic walled fortress and a moat of parking lots around it. It’s got to be the worst use of real estate in the Bay Area.” Matheson suspects Oakland will be better off without the team. The city can stop giving away millions in subsidies each year, and fans will start shopping at local bars, restaurants and shops instead of only spending money inside the stadium.Oakland Mayor Libby Schaaf is already looking towards the future. Now that the Raiders’ departure has been solidified, Schaaf is focused on how to optimize real estate near the Coliseum in a way that creates jobs for East Oakland residents.“An entertainment complex, hotels, restaurants – they would all create entry-level jobs,” she says. “It’s a prime piece of land with a BART station, train station and easy access to the airport.”Several tech companies () have already opened offices in the Oakland area, a less expensive alternative to San Francisco or Silicon Valley. Redevelopment of the Coliseum creates an opportunity for others to follow suit.Just look at what’s happened at Candlestick Park, the former home of the San Francisco 49ers. When the 49ers built a new stadium, it created a massive redevelopment opportunity at Candlestick Park. The first phase of the project, dubbed “Candlestick Point” is now underway and calls for more 2,214 housing units, more than 1 million square feet of commercial space, and 9 acres of parks and open space. This mixed-use development will certainly been a boon for the local economy.None of this may be solace for the Raiders fans whose hearts are bleeding, but Oakland-area real estate investors can rest easy knowing their portfolios won’t take a blow in the wake of the team’s departure. There’s little correlation between hosting an NFL team and local real estate prices. In the case of Oakland, evidence suggests keeping the Raiders could be doing more harm than good. The Bay Area economy remains strong and will bolster the housing market more than a single football team ever could.

View full post

Want to learn more?