Property owners with an eye towards environmentalism are trying to incorporate green living ideas into their homes but purchasing recycled materials, using self composting toilets, buying the right kind of light bulbs and other similar measures. But to really embrace green, some people are trying to find alternative building materials and save a forest or two. Some innovative architects from Australia have found a way to turn cardboard into the perfect housing material.
Archive for October, 2008
How to Sell Your Home
If you’re stuck with a home that won’t sell in this slow economy you can blame it on the financial environment or you can take steps to turn that home into a hot property that people are anxious to purchase.
The first thing you have to do is really resolve yourself to selling the home, which means admitting you?re giving it up and letting go of your emotional attachments. This seems logical but logic often has nothing to do with the heart. There are obviously some home buyers who will appreciate that you love your home and they’ll understand that you probably put a lot of care into it but they don’t want to live in your home, they want to live in their own home.
To make your home less yours you need to remove personal artifacts and little touches that make it yours. This means that the family photos should come down, little notes on the fridge, artwork from your children and all the other collected odds and ends from your life.
You may even have to paint the walls while and remove most of your furniture so the home seems larger and it?s easier for the people touring your home to imagine their furniture in the home.
And finally, turn your attention to the outside of your home. Curb appeal is absolutely essential when you?re trying to lure those drive by customers inside your home.
Finding a Rental Property
Thinking about going into the landlord business? If you are then you’d better be ready for a lot of work, even before the tenants move in.
Finding just the right rental unit is a difficult process and doing it correctly can be something that secures your future success as a landlord. To find a property you can hire a real estate agent and see the available selections or you can get in early on the desirable properties by networking with the right people. Get to know bank employees and people down at city hall so you hear about foreclosures early. Join a local landlord’s group to get more contacts and information. And be willing to make a bold move and ask a property owner if he or she wants to sell.
Study the area and see which locations are most desirable to renters so you always have a pool of quality applicants to choose from. Getting the right tenant is key and having a property that draws the right people is a great step toward that end.
Once you’ve found a few prospects, investigate the asking price and the value of similar properties in the area. Some landlords have formulas to determine a fair asking price and there are computer programs that attempt to provide you with the same information. But you basically need to make sure that the rents will cover our out of pocket costs and plan on a vacancy rate of about 5%.
In addition to examining the financial end of the properties, look at them structurally to see what expenses you may have in the future. These expenses can add up quickly and you don?t want to dive into a money pit.
Upgrade your Investment Property, Make more Money
Are you looking for a way to make more money through your investment properties? If so, consider making key upgrades. In theory, the more upgrades you make the more money you will be able to charge in rent. While this is not always the case, it holds true most of the time. Believe it or not, there are many upgrades you can make that do not cost a lot but can bring a big time return.
First things first, a clean investment property will go a long way in increasing your income. No matter if your home is in the best or worst part of town, you should strive for it to be clean both inside and out. This costs little to no money, and should be relatively easy to accomplish. For the most part, all that is needed is some elbow grease.
Have you ever thought about upgrading the kitchen and bathrooms? If not, these are two areas that attract buyers and renters alike. Again, this does not have to cost too much. In fact, you can freshen up both areas for $1k total or less. This includes new paint and flooring, as well as any other minor upgrades that may need addressed.?
Finally, if you are ready for a big project you may want to look into adding another bedroom. If you can rent a two bedroom home for $1,000 you should be able to rent a three bedroom property for close to $1,500. This math is not exact, but it goes to show you that more room, especially bedrooms, means more rental income.
By upgrading your investment properties you can increase the amount of rent that you collect each month. As you can see above, there are both small and large upgrades that can greatly help from an income point of view.
Buy Now or Wait for the Bottom
photo credit: salimfadhley
The housing market is probably not at the bottom yet, in fact most forecasters say that it’s just not there yet, at least in most markets. So do you buy now or wait a while before making that investment property purchase? Well, that answer isn’t very clear as some financial planners suggest buying now and others suggest waiting a little bit longer.
What’s most important is not what is happening on the national housing front but what is happening in your area. If you’re waiting and waiting and not checking out the local situation you might actually be in for a surprise. Some cities are already rebounding and some are holding their own. All property decisions should be done with a look at the local environment and economy.
Also, if you’re looking to buy a rental property, the percentage you can save by waiting might be washed out by the amount of money you?ll making in rent.
There’s also the chance that the property you’re waiting for will get picked up by some other investor with a lot less patience. There’s something to be said for getting what you want when it’s available rather than waiting for something better, or cheaper to come along.
The most important thing in this financial environment is making sure the investment you?re making is a sound one for your and your future. If you’re uncertain of your job status or financial stability then you shouldn’t be making a purchase and if you’re in it just to make a flip or a quick profit, then this is probably not the right time to be buying property.
Are you a do-it-all Landlord?
As a landlord you will have a lot on your plate. You will wear many hats, and will take on responsibilities ranging from collecting payment to making repairs. But the extent to which you take your duty as a landlord is up to you. Some landlords decide that they only want to be involved with the investment part of the deal. Others not only want to buy an investment property, but they also want to communicate with tenants on a regular basis. There is nothing wrong with either option, or something in between.
There are both pros and cons of being a do-it-all landlord.
Pros
The number one benefit of doing it all is that you will keep the majority of your profits. You do not have to pay a property management company, or hire professionals every time a small job needs completed. Instead, you can take on all of these tasks and keep the majority of the money in your pocket.
Another benefit of taking on every duty is that you can learn a lot about what it takes to become a successful investor/ landlord. In fact, it is a good idea to do-it-all with your first property as to get a better feel for what it entails. In time you may decide that you have too much on your plate, and in turn outsource some of the work.
Cons
While increased profits are important, you must realize how much work goes into being a full-time landlord. Do you have the time necessary to handle every detail of this job? Will you be able to make repairs in a timely manner? When it comes down to it, the biggest drawback of being a landlord is the time constraints. You have to ask yourself what is more important: money or time. If you don?t want to shake up your whole life you may be better off hiring outside help when need be, and taking care of the core duties on your own.
Which type of landlord are you? If you are just getting into real estate investing you should study the pros and cons above to get a better idea of how you will act as a landlord.
Are you Comfortable Dealing with Tenants?
As a landlord you need to be comfortable dealing with tenants on a regular basis. If you are not suited to communicate with tenants you may want to consider another type of investment. This does not mean that you will be speaking with them day in and day out, but from time to time you will need to call on them for payment, to gain access to your property, etc.
Although it may sound scary at first, you will find that most tenants are more than willing to be friendly and respectful at all times. And since you get to select your tenants (for the most part), you can make sure that they are the type of people who you like to associate with.
There will be times when you have to become authoritative in order to get what you want. Remember, you own the property you are renting, not the tenant. Are you willing to play the role of collection agency if this situation comes about? How about starting the eviction process? Some landlords say yes, others hope that they never have to deal with similar situations.
Over time you will become more comfortable with how to best communicate with your tenants. With each problem you encounter you will learn more about how to act in the future. This does not mean that you should search for problems, but you should learn from every experience, both good and bad.
If you want to become a successful landlord you will want to learn how to comfortably deal with every aspect of the tenant relationship. You do not have to communicate with your renters on a daily basis, but every so often you will need to get together in one way, shape, or form. Are you ready to deal with any situation that comes up? If so, you are well on your way to investing in property and managing it with success.
Life in a Shoe
photo credit: diskychick
You may think that it was just the little old lady of fairytales that lived in a shoe, but apparently several other people have decided that shoe shaped homes are a perfect fit.
The Haines Shoe House in Hellam Pennsylvania was built in 1948 for the self-promoting shoe wizard, Colonel Mahlon Haines. The five story tall home was used as a weekend vacation home for elderly couples and came with a live-in butler and maid but didn’t last as a resort. Currently the Haines Shoe House serves as a roadside attraction.
On the other side of the states another shoe man created his very own shoe shop, literally. Deschwanden’s Shoe Repair resides in Bakersfield California and has been in business since 1947.
Not to be outdone, a few other countries have added their own shoe homes to the collection. South Africa has a shoe house at Abel Erasmus Pass, Branddraai Mpumalanga which was created by hotelier and artist, Ron Van Zyl. For his wife who said she wanted a shoe, one has to wonder if she was really serious.
India joined the fray by adding a shoe home to its Hanging Gardens and Kamala Nehru Park on Malabar Hill in Mumbai.
So if traditional living isn’t quite your style, why not come up with your own shoe and live like the little old lady did.
What do Renters Want?
If you want to attract renters to your rental property, as any good landlord or property manager does, then you have to know what renters want. A national survey was conducted earlier in 2008 and they results were that most renters want an on location health facility. Unfortunately, this is out of reach for many property owners, but if it’s not out of your budget, you may want to consider adding an exercise room to attract new tenants.
If you’re like most landlords, not only is a work out facility too expensive, but it may not be practical for your situation. Instead you need to focus on the positive. Research your area and see where the local gyms are. If you have a health club near your home us that in your advertisements as an enticement. Maybe you can even work out a deal with a local club to give your tenants a discount for signing up at their gym.
Or you can be even more creative and highlight other things which may appeal to the health conscious. Is there a bike trail nearby, tennis courts, a local swimming pool? Include information on local recreation facilities in the apartment information to make your rental units seem more convenient and appeal to a broader tenant base.
Act fast when it comes to Property Repairs
As a landlord you need to keep your properties safe and in good condition. While this sounds easy enough, you know that this is not always the case. If there is a repair that need completed, make sure that you act fast. The worst thing that you can do is wait too long. In this case, only bad things can happen. Not only can the problem get worse, but it may also put your tenant in danger. In both cases you are putting yourself in a bad position.
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