February « 2009 « AllPropertyManagement.com

Archive for February, 2009

How to Find a Vacation Home

February 5th, 2009

Looking to escape the winter blahs, or maybe just get away from your day to day routine? Maybe its time for you to purchase a vacation home.

A lot of thought should go into the purchase of a vacation property before you make the leap as they are generally pretty pricey and you’ll only be using them for short periods of time, unless you plan on becoming a snowbird and spending half your year in the warmer climates. Before you purchase a vacation home make sure you’ve done a lot of research so you know that the area is exactly what you want. You may think that being on the beach is all you’ll need, but after a few weeks you may find that you’re actually a bit bored, or that the local restaurant scene offers nothing for you. If possible, rent for a couple years in the area to really see if you think this is the best place to have a vacation home.

Then its time to review the real estate market, price of homes in the area, and price of insurance and any condo fees. Home owner’s insurance is something people often over look when purchasing a vacation home, but many ideal winter hot spots face some serious weather during the off season which can mean home owner’s insurance can actually cost as much as the monthly mortgage payments.

Once you’ve determined that the location and finances are a fit, its time to look at yearly maintenance, especially when you’re not at your vacation property. Lawns still need mowing, in hotter climates you’ll still need to run air conditioning, in colder climates you will have to watch for water leaks or pipe breakage.

Finally, when it’s all ironed out you can sit back and enjoy your vacation property and live in luxury in your own home.

photo credit: Toprural

Buying a Home Online

February 4th, 2009

There are a lot of people who don’t believe in making purchases online, they feel you’re just asking for trouble. But on the other hand there are a whole lot of people who will purchase anything and everything online and feel it’s just more convenient. If you’re looking to purchase a home the internet can be an extremely useful tool in helping you shop for the perfect property but its still probably not a wise idea to buy a home online, sight unseen. And it’s definitely not a good idea to purchase a home without having a home inspection.

If you’re thinking about buying a home then, by all means, begin your search on the internet. There are tons of sites that list homes for sale in every area and include not only the price of the home but also give you specifications and photos. Some websites will also give you information on homes in the neighborhood and what they recently sold for and how that compares to the assessed value. The information on these sites is invaluable and will really make you a better informed consumer.

Once you’ve used the internet to narrow down your options you can contact a realtor to see if they can get you into each home so that you can take an actual tour. If you live remotely it’s a good idea to contact a realtor in that area to see what they know about the property, not necessarily the seller’s realtor because they work for the current homeowner and are looking to make the sale. Then make sure you have that home inspection no matter where the home is and how you found it, you’ll be glad you did.

Using Media To Promote Community In Multi-Unit Dwellings

February 4th, 2009

The idea of using any sort of media to encourage your tenants to communicate with each other might be terrifying to you. This need not be the case. It is a simple matter of understanding where you stand with your tenants and acting accordingly.

Do you consistently underserve your tenants with inferior housing for their money?
Are you slow to respond (more than 4hrs) to tenant emergencies?
Are you difficult to deal with in every-day tenant-landlord interactions?

If you answered yes to any of the above questions, you’ll want to work on changing your business approach before attempting to build community among your tenants.

If you think you do a pretty good job at meeting the needs of the people you provide housing for, consider incorporating some new media into your community approach.

Set up a page on your website (you have one, right?) where tenants can log in and participate in discussions that pertain to their location.
Provide some extra value for your tenants by making them aware of upcoming events that relate to the complex they live in.
Build lines of effective communication by using email and your website forums to make it easier for your tenants to share their delights and concerns with you and your staff.

Opening new lines of communication doesn’t mean you need to commit to talking all the time…just that you’re open to the idea and willingly fostering a community. Your tenants will appreciate the effort and you’ll reap the rewards.

Buying a Home that is for Sale by Owner

February 3rd, 2009

Some people love to do things themselves, other just like to have someone else show them the way or to take care of the difficult parts. Home purchases work just the same way, some people want to sell their home themselves because they know more about it than anyone else and they’ll save money in the process, and others want to hire a realtor to handle all of it so they don’t have to mess with the details.

If you’ve found the perfect home and it’s for sale by owner you can hire a realtor or you can actually do like the home seller and manage most of the transaction by yourself. Although, if this is the route you’re going it is a very smart idea to hire an attorney, preferably one who specializes in real estate law, to help you wade through the paperwork and contracts so you are protecting your best interests.

Much of the process is the same if you’re buying a home through a realtor or an individual who is selling their own home, you want to make sure you know what the going rate is in the neighborhood, the home’s features and faults, learn about the neighborhood and hire a home inspector. Make sure that when you hire an inspector or any other professional to help you with the home purchase that you do not go with the current home owner’s recommendations as their main priority is selling their property, not making sure you’re making a sound investment.

Finally, have your real estate attorney review all of the paperwork to make sure everything is legitimate and fair.

Buying a home that is listed FSBO or For Sale by Owner can be a very easy and amicable process that can actually go more quickly than a traditional sale with realtors involved, and you’ll both be saving money by avoiding costly realtor commissions.

Can you Manage Rental Property as a Side Job?

February 2nd, 2009

Many people want to get involved with real estate investing, but have one important detail holding them back: their day job. This leads to the question of whether or not it is possible to manage rental property as a side job. If you can find a way to work this into your life, without quitting your day job, you may be onto something.

Simply put, it is possible to manage rental property as a side job. But that being said, this is far from easy. If you are going to get involved with real estate investing you need to make sure that you are willing to put in the time. Unfortunately, many new investors underestimate the amount of time that it takes to manage a rental property.

You may find that you need help sooner or later. In this case you should not be afraid of looking for outside assistance. For instance, if you cannot get around to making every repair you can hire a handyman to help you out if you get in a bind. Yes, this means you will have to pay money out of your pocket, but over time this is not as bad as you may think. By hiring help you will be able to keep your rental property in good standing without having to spend every waking moment thinking about it.

If you are up to challenge you can most definitely manage rental property as a side job. Before you buy your first property make sure you are aware of the pros and cons, and that you have a backup plan in place in case you get bogged down at your regular job. Once you get started you will have a good feel for what goes into rental property management. What are you waiting for? If this is your dream go for it!

photo credit: Skaneateles Suites

What Happens When A Member Of Your Staff Says Too Much?

February 2nd, 2009

The New York Times gets wind of it and plasters?the mistake across the globe.

According to the article, a young couple was not offered a new lease when their current lease ran out. This was a decision made by a upper-level manager who determined that the money brought in by leasing an apartment to the couple was not worth the trouble caused by that couple. The couple had a history of being difficult tenants and the building manager decided it was better to worry about leasing an empty apartment than to deal with the couple spreading their discontent.

There was no legal issue as a landlord is not required to offer a new lease to any tenant nor required to disclose why the lease is not being offered.

But the staff couldn’t keep quiet and the employee who had direct contact with the male tenant, David Griffiths, referenced remarks made on a tenant discussion board and told him “Dave, we understand that you’re not happy living here, so we made the decision for you”. With just a few words, a simple process was transformed into a media-chased discussion that promoted a stereotype of the landlord as being a cruel and unfeeling entity.

Whether your rental property is letting a room to your brother or leasing millions of square feet, it is important that you define how you will deal with specific problems before they happen. That way, when a tenant is being evicted, a sewer pipe breaks, or somebody discovers a cockroach in their living room, you and your staff will already know what to say.