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Archive for January, 2009

Find Good Tenants

Monday, January 19th, 2009

One of the most important jobs a landlord and property manager has is finding good tenants. By using the tips below you can help ensure that you’re getting the best tenants possible.

Run Your Business

Being a landlord or a property manager is a job and you should handle all of the activities associated with that job as business. Even though you may want to give a friend or family member a break, you’re just setting your business up for trouble by being lax on the rules. You can rent to friends and family members, but keep it all business and treat everyone the same.

Follow a Procedure

Find the best tenants possible by establishing a routine for reviewing candidates and then following that routine for each and every possible tenant.

Screen Every Tenant

Keep to your procedure and screen each and every single applicant, always checking credit records and references.

Write it Down

Make sure everyone completes an application and signs it. You also need to have them sign and authorize a credit check and reference check. Get everything in writing to prevent future problems.

Be Fair

Protect yourself by treating every single applicant in a similar and fair manner. Now only can you be targeted by a discrimination suit if you favor one applicant over another, you may also be very surprised that the appearances of the applicants don’t always match up with their ability to pay and their responsibility level.

The key to being a successful landlord or property manager is having good tenants, by using the tips above you will be better able to make an informed decision on the best tenants for your property.

Posted in Tenants | No Comments »

How to Deal with Pet Violations

Friday, January 16th, 2009

I am a pet owner and a pet lover but I do understand that in some situations landlords do not want animals in their buildings. If you own property and would prefer that there are no furry tenants in your buildings then you’ve got to let prospective tenants know that this is your policy from day one. You should include “no pets” in your advertisements and stay firm on this topic if questioned by the tenant. There should also be something in your lease that states that pets are not allowed. If you have exceptions to the pet rule, like weight limits or you’ll accept fish and birds but no furry four legged animals, spell all of this out in the contract and have the tenant sign it.

Then, if you learn that a tenant has a pet its time to start documenting their violation and your reaction to the violation. If you tolerate the presence of the pet you may lose your legal rights to evict the tenant or force them to remedy the situation. So it’s important to act quickly and to document every action you take.

Eventually, you may have to issue a cease and desist order which lets the tenant get rid of the pet and remain in the rental unit. Or you may have to evict the tenant. The rules on your exact legal recourse differ by state and sometimes by city so check the laws and then follow them closely. If you bend the rule for one you may end up having to bend it for everyone.

Posted in Property Management, Rental Property Management | No Comments »

Are you Really Ready for a Foreclosure?

Thursday, January 15th, 2009

shutterstock_207598541 Unfortunately, foreclosures are increasing all over the United States. While this is unfortunate for the homeowner there are others who feel that this can work in their favor. The question is: are you truly really ready to buy a foreclosure? You can ask yourself this question no matter if you are buying a home to live in or one as an investment. Even though a foreclosure may look good on the surface you need to know exactly what you are getting.

If you are going to buy a foreclosure there are two important details to keep in mind. For one, you will be buying directly from the bank. With a foreclosure the bank owns the home. This means that you and your agent will have to work with them when it comes to the asking price, etc. Generally speaking, banks do not offer much flexibility.

Secondly, most (but not all) foreclosures are in bad shape. This does not mean that the home will have major problems, but there is a chance that it will be trashed in one way or the next. Are you willing to possibly go through a long clean up process? If you are going to purchase a foreclosure this is something you should be ready to face.

There is no denying that you can save money by purchasing a home that is in foreclosure. But while there are many benefits of buying a foreclosure there are also potential drawbacks such as buying from the bank and getting involved a home that has not been kept up.

At the very least you should consider a foreclosure if you are in the market. Soon enough you will get a feel for the pros and cons of these properties, and whether or not you should buy one.

Tags: Banks, Foreclosures, Investement, Property, foreclosure
Posted in Foreclosures | No Comments »

Illegal Evictions

Wednesday, January 14th, 2009

A very unfortunate part of every business is that there are ups and downs, and for landlords and property managers, the downs include bad tenants. Bad tenants can go from the very simple problem to the extreme situation where your property and other tenants may be at risk.

When you’ve got one of the worst tenants around it may be tempting to simply lock them out of the home or have the utilities turned off and force them to move, but this is illegal and the end result could be you losing rights to your property and having to house the offender even longer. This rule applies to roommates as well as landlords, so if you’re having a tiff with your live in mate or roommate don’t even think about changing the locks.

So even though the living situation may be intolerable or you’re worried about your other tenants, you still have to follow all of the rules for an eviction. If you’re not sure how to deal with an eviction, check with the fair housing bureau or other local government agency that handles tenants and landlords.

You don’t need an attorney for an eviction so as long as you follow all of the proper steps to the letter you can handle it yourself and eventually you’ll be able to get rid of the problem tenant.

Posted in Rental Property Management, Tenants | No Comments »

Investment Property Mortgage: Play it Safe

Tuesday, January 13th, 2009

shutterstock_22262407 Are you interested in buying an investment property? Will this be in addition to your primary home? If so, and you are taking out a mortgage, you need to play this situation safe. If you decide to take a big risk you should realize that this could come back to haunt you in the long run. Are you willing to deal with the consequences? As you can imagine, it is best to play it safe so you can stay sane knowing that you are in a good position.

What does it mean to play it safe? First and foremost, you must have a large enough down payment (at least 20 percent in today?s economy) when taking out a mortgage on an investment property. There are a couple of reasons for this. Not only will the lender require this, but it will also put you in the driver?s seat from the first day of owning the property. It is always good to start out with equity in a home.

When shopping for a mortgage for an investment property you may notice that interest rates are a bit higher than you have come to expect. If this is your second mortgage you should expect to deal with a higher rate. That being said, you should not give in and take the first offer from the first lender. Although the mortgage rate may be higher than it would be on a primary home you can still shop around to get the best deal possible.

Taking risks is a part of life. If you are going to buy an investment property you want to minimize your risk so you can maximize your returns and potential in the long run. This starts with the mortgage you obtain. Make sure you have a large enough down payment, and that you are ready to shop around for the best lender. By taking care of these two details you will get off to a good start while playing it safe.

Posted in Mortgages | No Comments »

Security Deposits and Responsibility

Monday, January 12th, 2009

Security deposits can be a stick issue between landlords and tenants, most tenants feel they deserve their entire deposit back and many landlords are looking for a little extra financial compensation for their efforts in cleaning and/or repairs.

If you’re wondering which repairs and cleaning costs are the responsibility of the tenant and which belong to the landlord the standard measure is normal wear and tear is something that every landlord should expect. This means that worn and faded floors, carpets, and walls are to be expected as is a less than stellar performance from appliances, toilets, doors, etc.? But if the damage is more profound then the landlord may expect to receive some financial compensation for the repairs. If the floors are stained or there are cigarette burns, if there is anything that is broken, if there is excessive dirt that requires additional cleaning or a cleaning service then the tenant can expect to lose some of their security deposit.

Remember, whether you’re the tenant or the landlord, you should document the apartment to prove what its condition is. With digital cameras it’s very simply to take the photos and then erase them when they’re not needed anymore, no expense and no bother.

Posted in Money & Finances, Rental Property Management | No Comments »

Residential Property Manager

Friday, January 9th, 2009

If you’re feeling this financial crisis personally, then it might be time to try and cut corners wherever possible. One great way to cut your housing costs is by becoming a residential property manager for your landlord?s complex. If this position isn’t open at your current apartment and your lease is about to expire, consider moving to a complex where you can become the residential property manager.

Typically residential property managers receive a break on the rent they must pay in return for handling a few aspects of managing the property. If you’re more skilled and qualified you might be able to find a landlord that needs a fulltime manager for his or her properties and then you’ll not only receive free housing, but you will most likely get a stipend on top of that.

Being a residential property manager means you handle certain specified operations of the property and it tends to vary from property to property. In general you will be responsible for small maintenance and upkeep around the property and filtering tenant’s phone calls and requests. You’ll also be “on call” and expected to respond to emergencies immediately. On the other end of the spectrum you would also add all of the financial responsibilities of the property to your duties as well as screening and selecting the most appropriate tenants. And in bad times, you’ll be forced to handle evictions and the legal proceedings connected to this.

Posted in Money & Finances, Rental Market, Rental Property Management | No Comments »

Upgrade your Home’s Exterior in the New Year

Thursday, January 8th, 2009

shutterstock_19364572 Are you looking for a way to upgrade your home in the new year? If so, you should consider one of the many exterior home projects that you can complete. Believe it or not, there are many things you can do on your own without the help of a professional. To go along with this, most of these projects are quite affordable and will help increase the value of your home. Does it get any better than that?

First things first, you need to consider what type of upgrades your home could use. This can range from landscaping to a new paint job to a new roof. There are hundreds of projects that you can consider. Which ones will be best for you and your home? You may want to start with one project and then move onto others if you have enough time, money, and energy.

Many homeowners think they should only upgrade the exterior when selling their home. Of course, nothing is further from the truth. No matter if you are selling or plan on living in your home for years to come, a good upgrade can go a long way. Not only can this make your home look better, but it will do a lot in terms of increasing its value as well. This may not be your primary interest, but it is a benefit nonetheless.

Why not set some goals for the new year based around the exterior of your home? This will help you to stay on track, and hopefully get started shortly after the first comes and goes. It is not always easy to decide which projects to take on first, but soon enough you will realize which ones are most important. And when you do you will be well on your way to getting started.

Posted in Mixed Bag | No Comments »

When to Refinance

Wednesday, January 7th, 2009

I’m currently starting the process of refinancing my condo. The key for me was seeing that interest rates are now about 1.5% lower than they were when they bought, which will decrease my loan payments pretty dramatically. I’ve also figured out what the charges and fees for refinancing will be and determined that in the long run a refinance at this point is a good idea.

If you’re thinking about refinancing your home or your investment properties, then you should consider similar factors. There are also a couple other things to think about before you decide to go ahead with a refinance. These other mitigating factors are how long do you plan on being in your home, your current equity position in the home, and are you thinking about doing a cash-out refinancing. Another thing to consider is whether the current equity in your home will eliminate your PMI insurance.

There are always fees associated with refinancing, even if you wrap them into the mortgage and pay with them that way. If the new mortgage rate is not significantly lower than your current one you may not be getting the deal you’re hoping for. Also, if you plan on moving or selling the property soon then you may not appreciate enough savings from your lower percentage rate to erase the closing fees.

Each situation is different, so don’t just jump at the chance for a lower rate, look at the picture from all sides before making a decision.

Posted in Investment Property, Money & Finances | No Comments »

A Basement Remodel can Increase the Value of your Home

Tuesday, January 6th, 2009

shutterstock_21637621 No matter who you are, if you own a home you may want to increase its value at some point in time. Not only will this increase the value but it will probably make your home more comfortable to live in. If you have a basement, and it is not finished, this is one project you may want to consider taking on soon enough. Believe it or not, a basement remodel can go a long way in increasing the value of your home.

Many homeowners think that it will cost entirely too much money to take on a project of this magnitude. But guess what? This is not always the case. For a few thousand dollars, at the most, you can finish your basement.

While a basement remodel sounds good to some, others want to know the benefits of doing so. For one, this allows you to add more livable space to your home. And as you know, this will immediately increase your home?s value.

There is a lot that goes into a basement remodel. If you are starting with a blank slate you will have to add flooring and ceiling, while also considering the walls. Is any of this already in place? If so, the cost of your project just got smaller. If you are trying to keep costs to a minimum, opt for less expensive materials.?

If possible, try to do a lot of the work on your own. This will give you the chance to upgrade your basement without spending too much money on professionals. But of course, when and if the time comes you should call on somebody with more experience.

Don?t overlook a basement remodel or finishing project if you are interested in increasing the value of your home. This may be the best project you ever decide to complete!