November « 2008 « AllPropertyManagement.com

Archive for November, 2008

Calculating Government Rental Assistance for Tenants

Friday, November 28th, 2008

Landlords that rent to tenants receiving government assistance may want to take note of the Rental Housing Integrity Improvement Project or RHIIP. RHIIP falls under the Office of Housing and its goal is to ensure that low-income families getting rental assistance are getting the right amount. To figure this amount the family’s annual income minus deductions is determined which means that property owners or managers who rent to these individuals are responsible for making sure they have accurate annual income information for their tenants.

Because the government is theoretically getting all income information through Social Security and Supplemental Security Income benefits, and W4 information as well as a number of other agencies and sources that supply annual income information to the HUD, they compile all of this information and make it available in the EIV System.

Property managers who use information received on the EIV System are required to first contact the tenants and let them know that they are using this information to recalculate their income which may affect the amount they receive as rental assistance.

Since its inception, the EIV System has helped reduce errors and improper payments due to improperly reported income information. By working together the tenant, landlord, property owner and government can insure that proper assistance is provided to those who really need it.

Posted in Taxes & Finances, Tenants | No Comments »

Selling Real Estate in a Down Market

Thursday, November 27th, 2008

Real estate markets all over the United States are on the decline. This has led to more homes than usual for sale, as well as prices falling below previous market value. If you find yourself wanting to sell real estate in a struggling market, you need to know what you are up against. It is much more difficult to sell today than it was during the real estate boom that took place five to ten years ago.

Even though things are bad right now, you can still sell your home if you know what you are doing. It may take some creativity and marketing know-how, but you can make a deal happen if you put your mind to it.

At this point in time, you need to be willing to negotiate if you are going to sell your home. This is especially true if you are going to price your home higher than the competition. With so many homes on the market, you need to be willing to negotiate in order to ?stay in the game.? While you want to get the best possible deal, you should also be open to negotiations.

Who is going to sell your home? Some people feel that hiring a real estate agent is the best move because they can help find qualified buyers. Others would rather sell by owner to avoid paying a commission. There are both pros and cons to hiring a real estate agent.

The market in your area may not be as bad as other parts of the country. But of course, it could be worse. Selling real estate in a down market has a lot to do with your willingness to negotiate, your home, and your creativity.

Posted in Real Estate Market | No Comments »

How to Avoid Foreclosure

Wednesday, November 26th, 2008

Your home is your castle, but unfortunately many Americans are currently facing dethronement, or foreclosure. If you’re one of these unfortunate people who may be losing your house due to foreclosure, there are some steps you can take to help you avoid losing your home. (more…)

Posted in Foreclosures | No Comments »

When to Buy your First Home?

Tuesday, November 25th, 2008

Are you thinking about buying your first home? Is now the best time for doing so? If you are unsure of when to make this move, you are not alone. There are a lot of details that you need to consider before you take the leap of buying a home for the first time. Right now, the real estate market is on the decline. For this reason, you may be able to find a great deal. But at the same time, the economy is also struggling. In turn, this may make it more difficult for you to find a lender. (more…)

Posted in Real Estate Market | No Comments »

What does the Office of Housing Do?

Monday, November 24th, 2008

Many people have heard of the Federal Housing Administration (FHA) but when pressed its hard to come up with a description of what this group does or how they help American people purchase homes.

The FHA provides mortgage insurance for loans made by approved lenders. It is actually the largest mortgage insurer in the world. FHA insurance protects lenders from people who default on their loans as long as they meet certain requirements. If someone does default the lender receives a monetary claim that helps defray the lender’s expenses. Remarkably the FHA is the only government agency that is completely self funded and costs taxpayers nothing.

By helping lower income Americans purchase homes with lower down payments and more generous household income calculations, the FHA stimulates the economy by encouraging more home ownership, more jobs for builders and contractors and other related industries, improves tax bases in certain targeted areas which in turn help local schools and other government funded groups.

Unlike regular loans, if you have an FHA-insured loan you don’t have to come up with a 20% down payment. The cost of the FHA insurance is passed through your lender to you and is tacked onto your monthly mortgage. As you continue to pay down your mortgage balance the FHA insurance will drop.

The FHA has a storied history of over 70 years of helping American people who own homes or who are affected by the industries that are supported by an increase in good economic housing, so basically everyone.

Posted in Real Estate Law | No Comments »

To Rent or Buy

Friday, November 21st, 2008

photo credit: Betsssssy

There is no one answer to the question to rent or buy, as the answer changes per person and at different times in a person’s life cycle.? Before you answer the question for yourself, evaluate your situation, lifestyle, income and other factors and then make an educated decision.

Debt and Credit

What is your credit rating and how do you handle debt. If you want to buy a home you’ll need to have really good credit and not a lot of outstanding debt. But a deeper evaluation of your typical credit transaction will give you insight on your financial responsibility level.

Job Stability

How long can you count on your job being around? How long are you planning on staying at your current job? If you’re pretty certain of your financial stability and your employment status then a home purchase may be the more logical decision.

Rent vs Mortgage Costs

Look at the expenses that each option will cause you to incur. Can you afford both options or is one of them more viable for your current situation. No matter which way you decide to go, renting or buying, make sure you don’t exceed your means.

Maintenance Issues

If you’re a low maintenance person who doesn’t like to take care of things then a rental is for you because home ownership comes with a lot of additional maintenance issues. There are things that you will have to do for yourself and there are added expenses which can be very pricey.

Posted in Real Estate Market, Rental Market | No Comments »

Why Buy an Investment Property?

Thursday, November 20th, 2008

photo credit: Chad Jones

Even though the real estate market is battered and bruised, you may still have the urge to buy an investment property. If you are new to this type of investing you will want to cautiously move forward. Yes, you can still earn money through investing in real estate, but right now it takes a lot of work and planning. You don?t want to buy the wrong home. If you do, it could result in a loss of money as well as other resources such as time. (more…)

Posted in Investment Property | No Comments »

Lead Paint Information

Wednesday, November 19th, 2008

photo credit: eMaringolo

Lead paint and lead poisoning is a hot topic nowadays and if you own an older home or rental property you’re probably pretty aware of the issue but may not know much about lead paint and what to do if your home has it.

Oil based paint made between 1940 and 1960 often had lead in it as a drying agent. Homes built between 1940 and 1960 are often most suspect but homes built both before and after this range are not automatically exempt. It’s best to have any home that was built before 1980 inspected for lead paint.

Lead poisoning occurs when the lead is ingested but most people laugh at the idea of kids or anyone else eating paint chips. It’s actually more likely that you’ll inhale or ingest lead dust which can form from such simple acts as raising or lowering a painted window frame.

If you find lead paint on your walls you have a few solutions available, repainting the walls does help but doesn’t eliminate the hazard completely. Having the paint removed by a professional will cure the problem but its expensive, very involved and the process can actually create a lot of lead dust.

If you decide to simply paint over the lead paint then you may want to do routine dust removal with a high phosphorous cleaning solution. This will not eliminate your problem but will help you control the dust issues.

Posted in Mixed Bag | No Comments »

Rental Property Income: Do you collect?

Tuesday, November 18th, 2008

photo credit: pfala (injured)

Investing in real estate takes more than money. There are many details that go into buying and managing a rental property. That being said, millions of people are successfully doing so and it is safe to say that many more will be getting involved in the years to come.

One of the most difficult parts of rental property management is collecting from tenants. In other words, if you are going to rent out a property you will want to get paid. While some tenants make good on their word and pay on time every time, many others will try to duck you for as long as possible. Are you ready to deal with this? (more…)

Posted in Rental Property Management | No Comments »

Home Inspection Basics

Monday, November 17th, 2008

Home buyers are constantly told that they need to get a home inspection before they make the big purchase.? But why the concern, what can a home inspection tell you that you don’t already know or that the home seller hasn’t told you?

Home inspectors have a checklist of items they’ll be checking for. It’s a good idea to follow them on their walk through. If possible see if they have an additional checklist for you to make notes on.? Expect to examine the structural elements, the exterior, the roof and attic, plumbing, electrical, systems and components, appliances, and the garage.

If you’re concerned about a specific issue such as asbestos, mold, radon, insects and rodents and lead you’ll need to find an inspector who is licensed in these areas. General home inspectors are not required to check for these hazards.

Your final home inspection will not have a condition list for every item inspected, just the segments that appear to in poor condition or in need of repair. Your home inspector in most cases will not give you estimates on the repairs, this is a task you’ll have to research yourself.

Each state has different rules regarding home inspectors and the inspection and there are several professional organizations to which home inspectors can belong. Look for referrals from other home owners and realtors as well as professional accreditation.

Posted in Mixed Bag | 1 Comment »