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Archive for September, 2008

Tips for Landlords

September 30th, 2008

Being a landlord is easy but being a good landlord takes work and effort. Follow the landlord tips listed below to be the best you can be and to get the greatest response from your tenants.

Get it in Writing

Get everything in writing so that there is no confusion or room for errors. This not only prevents conflict but can protect you in case of future legal actions against you.

Screen Tenants

Even if you know the tenant or on the other end of the spectrum, you?re sure you?re not going to rent to a particular person, screen them. If they?ve filled out the application then your best bet is to formally screen every single tenant just to make sure you?re getting the information you need and this too may protect you against possible discrimination suits.

Be Available

Be the sort of landlord that your tenant can contact with problems and pay attention to their complaints. Sometimes quick action on small problems can prevent huge property damage in the future, i.e. a leaky faucet could be a clue to larger plumbing problems.

Provide Security

Most tenants want security and appreciate not only a secure building but additional measures that ensure a lighted parking area, well manicured shrubs that people cannot hide behind, and locks that work and are never? propped open.

Act Fairly

Treat every tenant fairly and with respect. This applies from your first contact when them until you determine how much of the security deposit to return upon their exit. Fairness throughout will keep your reputation sterling in your community.

The Community Active Landlord

September 29th, 2008

photo credit: Kecko

If you’re managing a property, whether as a property manager or as the landlord, it is a good idea to be active in your community. The lifeblood of the rental business is people and by connecting with a larger part of your community in a positive way you extend your reach and boost your reputation at the same time.

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Trust and your Real Estate Agent

September 26th, 2008

When you hire a real estate agent, it is important that you trust him or her. No matter what, this is the most important part of your relationship. If you trust your agent to act on your behalf and make essential decisions, you will find it much easier to either buy or sell a home. It is hard to know for sure from the beginning if you can trust a particular real estate agent, but over time this will become obvious.

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Where to Find a Qualified Real Estate Agent

September 25th, 2008

If you need to find a qualified real estate agent chances are that you want to do so right away. Fortunately, there are many places that you can look to find the person who will best suit your needs as a buyer and/or seller. The fact of the matter, although it may not seem like it, is that no two agents are the same. In other words, you will get along better with some real estate agents. If you are not careful, you could end up signing a contract with an agent who does not have the same vision and goals as you. Do you want to put yourself in this position?

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What Happens when Co-Tenants Split?

September 24th, 2008

photo credit: RYN TMRW

Whether your co-tenants split on you and leave the rental unit or if they split on each other and one is left holding the bag (or the lease as the case may be) you’re covered by the lease you had them both sign, you did have them both sign the lease, right?

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The Tenant is Gone but the Stuff Remains

September 23rd, 2008

Almost every property manager or landlord has run across discarded possessions after a tenant has moved. Quite often these possessions are obviously just garbage that the tenant didn’t feel like taking out to the trash. Sometimes these are “upgrades” they have made to the unit (like a microwave) that they intended to leave behind for the next tenants. And other times the stuff left behind is obviously valuable and may or may not have been left behind intentionally.

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Investment Property: Where are you getting the Money?

September 22nd, 2008

photo credit: AMagill

Are you thinking about buying an investment property? If so, you need money to pay for this. After all, property costs money no matter if you are going to live in it or if you are going to rent it out. Some people take huge risks with investment properties, and end up cashing in big time. Of course, there are others who are more conservative with their money and move forward cautiously. It is impossible to predict the future, but buying an investment property that suits you from a financial standpoint will help to increase your chances of success.

When buying an investment property you should always have a down payment. While rules are made to be broken, this is one that you should try to follow. And if you can come up with a down payment of at least 20 percent, you will be much better off. When you put money down on a home you will be in a position of equity from day one. This helps to protect against owing more on your home than what it is worth, which is commonly known as being ?underwater.?

One of the most common mistakes made by new investors is thinking that the rent they collect will pay for the mortgage on the investment property. Can this happen? Most definitely. But you should never rely on this. If you cannot afford to pay the mortgage each month without the rent you bring in, you should avoid the property. Remember, you never know when something will happen and your home will sit vacant.

If you are going to invest in an investment property you need money. First and foremost, you should have enough cash on hand to make a down payment. After this, you need to make sure that you can cover the mortgage even if the property is bringing in no income. When your finances are in line you will find that investing in property is much easier.

Getting a Tenant Credit Check

September 18th, 2008

photo credit: amishsteve

The first step in performing a credit check on a prospective tenant is getting their permission. The easiest way to do this is to include it on the application or as an addendum to the application form. This way you can have a written statement that explains to them that you are going to check into their credit history and then collect the necessary information as well as a signature.

You can check with the credit bureaus on your own or, if you have a large number of tenants, you may want to hire a company that specializes in credit checks so you don’t have to do all the leg work.

When you check their credit history look for any claims made against them by previous landlords or if a creditor has had to take them to court in the past. This should immediately set off alarm bells and most likely send you looking for another tenant. A couple late payments to credit cards may give you a little pause, but unless there?s a history of this activity its probably not a big deal.

If you’re confused by credit scores, remember that the national average is 678, which is considered only fair. If you’re looking for a tenant with “Good” credit look for a score between 720 and 749, anything above 750 is considered “Excellent”. On the other end of the spectrum, anything between 620 and 659 is considered “Uncertain” and “Poor” credit risks fall below 619.

Luxury Rentals

September 17th, 2008

photo credit: pingnews.com

Want to live high on the hog but not buy into the lifestyle? Consider renting one of world?s most expensive rental properties instead.

Necker Island

How about spending a week on Richard Branson’s Necker Island? a mere $300,000 will get you a week of lavish treatment on the island? or you could go the thrifty route and spend $46,000 for one night on Necker. Sure, it?s a lot of cash but you’ve got an entire island all to yourself.

Waldorf Towers

Maybe the isolated island life isn’t for you, you want something happening, maybe a rental in New York City. If you?d like to follow in the footsteps of Frank Sinatra and Cole Porter, then unit 33A of the Waldorf Towers is the perfect home for you, fetching a mere $120,000 a month. Quite a bargain compared to Necker Island.

Nygard Cay

If you like the idea of big city amenities but the privacy of an island toyourself, then do like Oprah does, and escape to Nygard Cay in the Bahamas. As the world?s second most expensive rental, boasting a $40,000 a night price tag during high season, this tropical oasis gives you everything you could desire. A staff of 20 will see to your whims and treat you like the big spender you are.

It may only be temporary but even a night in one of these prestigious rentals is more than the average person can afford.

Investing in Foreclosures: Are the Profits still there?

September 16th, 2008

photo credit: salimfadhley

Do you remember a few years back when investing in foreclosures was almost a sure thing? While those days are long gone, many investors are still wondering if foreclosures have anything to offer. In other words, can you still profit by purchasing a foreclosure, fixing it up, and selling? This is a difficult question to answer due in large part to the many variables that are involved.

Here are three basic, yet useful tips to keep in mind if you are thinking about investing in a foreclosure:

1. You must exercise caution. You can no longer expect that every investment will turn into something huge. Instead, you need to be cautious with what you buy. Consider the price, location, comparables, and anything else that may affect your chance of success. Of course, if you are thinking about investing in your first foreclosure, you need to take even more caution as you move forward.

2. How are you going to pay? This is perhaps the most important detail to consider. Again, in the past you may have been able to get away with paying more for a foreclosure than you should have. But in today?s world, you need to earn every possible penny. Simply put, if a foreclosure does not fit into your budget, keep looking.

3. Find a mentor. If you are new to investing in foreclosures or just want some help, find a mentor that has been around this game for a while. The knowledge and advice that they can offer is invaluable.?

There is no denying that you can still make a nice profit through foreclosure investing. Does this mean that you are guaranteed to make out in the long run? Definitely not. With so many variables, including the ever fluctuating real estate market, you never know what is going to happen. At the very least, use the three tips above to get in the right frame of mind. From there, deciding whether or not to invest is up to you.