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Archive for April, 2009

What are your Real Estate Investment Options?

April 16th, 2009

Are you interested in buying real estate as an investment as opposed to somewhere to live? If so, you need to know that there is more than one option. Saying that you want to invest in real estate does not cover a lot of ground. Instead, you need to pinpoint exactly what you are trying to do.

The most common options are as follows: buying real estate and renting it out to tenants; and buying real estate, fixing it up, and reselling it for a profit. These are the two most common ways of investing in real estate. Which option sounds best suited to your situation?

Once you have an idea of how you are going to invest in real estate you can plan better for the future. Remember, there is no right and wrong way to invest. Some people would rather buy, hold, and rent. Others would rather flip homes as a way of making quick money.

Before you invest in real estate, no matter how you do it, make sure you are aware of the pros, cons, and risks that are involved. Remember, not every real estate investment is going to make you rich. Are you willing to take a risk for the chance to make a lot of money? There is no denying that real estate investing is a risk, but the rewards are many if you succeed.

Now that you know the basic options you can decide which one is best, and whether or not you are cut out for investing in real estate.

photo credit: lumaxart

How to Rent or Sell a Home

April 15th, 2009

The housing market has obviously slowed and some landlords are also feeling a pinch but there are some things both homeowners and landlords can do to make their property more attractive to the market.

Make all Repairs

Prospective homeowners and renters alike are looking for a well maintained home, home’s that appear neglected in some way hint at other possible problems that may be deeper rooted. You may have overlooked the little things for so long that you don’t even notice but prospective inhabitants will definitely notice so take the steps to make those repairs.

Staging the Home

There are two thoughts on this, but if the property is furnished you should definitely remove clutter to make it look larger and more comfortable. Some people feel that showing an empty home is best because the future residents can better visualize themselves in the home, others feel that having a professionally staged home is best because it gives them an ideal image of how the home can look. No matter what you decide to do cleaning is the most important part of staging for you, make sure everything is clean and smells good.

Make a Highlight List

In addition to the realtor’s spec list you’ll want to create your own highlight take away page that lists the benefits of the property and the surrounding area. If you have an attractive home or rental unit include pictures, perhaps photos from each season. Photos give shoppers something to reference back to when they’re trying to make their decision.

Exterior Maintenance of a Rental Property

April 14th, 2009

Do you own a rental property? If so, you know that it is your job to care for both the interior and exterior. Generally speaking, it is easier to keep up the exterior of a property because you don?t have to get permission from tenants to enter. That being said, exterior maintenance is often times labor intensive and time consuming. If you are not careful about how you manage your time you may find the exterior condition of your property quickly deteriorating.

There are many areas of exterior maintenance that you will be responsible for. This includes windows, siding, the roof, landscaping, snow removal, and much more. Not only do you want to maintain the exterior for good looks, but you also want to do so in order to keep your tenants safe. For instance, if you do not clear snow from the steps in the winter and a tenant falls, there is a good chance that you will be slapped with a lawsuit. Is that something you want to deal with?

If you don?t have the time to keep up with regular exterior maintenance you will need to hire an outsider to assist you. This is something that many landlords do, and you may find out soon enough that it is your best option as well. Hiring somebody to cut the grass, remove snow, and take care of other minor details can be a great way to save time and reduce stress.

Overall, don?t overlook the exterior maintenance of your rental property. You want to keep your investment safe, sound, and looking good at all times.

photo credit: pnwra

How to Enforce a No Pets Rule

April 13th, 2009

Most landlords either allow pets or they don’t with no middle ground. If you’re a landlord that really doesn’t want pets on your premises then you’ve got to hold a firm ground because you can lose your legal rights if you tolerate a tenant having a pet for a significant period of time.

Your first step is making sure your lease clearly states that pets will not be allowed or you can specify that you will accept certain pets, like fish, and that others will not be tolerated. If you’re very strict about this rule you can even ask your tenants to sign or initial this part of the lease.

Then, when you become aware of a pet violation you must act immediately and inform the tenant in writing that you’re aware that there is a pet on the premises and that this will not be tolerated. You may want to give them a warning or notice initially or you can dive right in to a Cure or Quit notice which basically lets the tenant know that if the pet isn’t removed you will begin eviction proceedings.

If it does come down to an eviction situation make sure you have written documentation that the tenant was informed about your policy, the date you realized there was a violation, your efforts to notify the tenant of the problem and the Cure or Quit notice.

Do You Need a Lawyer?

April 10th, 2009

There are a lot of legal matters involved with being a landlord but quite often you can handle them yourself if you keep good records, follow the law and are willing to stay abreast of what’s happening locally in the landlord/tenant realm. But there are some times when you may want to hedge your bets and hire an attorney.

Contested Eviction

Most evictions you can handle yourself as long as you follow the rules and the detailed procedure but if you have a tenant who is contesting the eviction and has retained their own attorney then it might be time for you to pull out the big guns and get your own attorney involved.

HUD Investigates

If a tenant has filed a complaint against you and Housing and Urban Development (HUD) thinks there is enough merit to investigate then you may want to have a lawyer on your side as the fines issued by the HUD are very large.

Personal Injury Case

If a tenant claims that they became injured or sick because of something related to your property then you will probably want to have an attorney help you through the case as personal injury cases can be extremely expensive.

Buying/Selling Property

A real estate attorney can be an invaluable asset if you’re thinking about buying or purchasing property. They know all the ins and outs and the really good ones have a great handle on the value of property in the area and the current local market.

First Time in Court

You don’t need an attorney for your first court appearance, but it may help you understand the process and get your paperwork and information in order. You probably can do it alone but for some, having an experienced teacher at your side is well worth the expense.

Save Money on Foreclosures, not always Time

April 9th, 2009

The number one reason to buy a foreclosure is the chance to save money. Banks are anxious to get foreclosures off their books, so they will often time sell at a discounted price. This is usually the case, and most people realize that saving money is a big benefit. But before you buy a foreclosure simply because you can save money, consider that time may not be on your side. What does this mean? Most foreclosures need some work in order to be lived in. Are you willing to put the time into making the necessary upgrades and repairs?

How much work do foreclosures need? This is not an easy question to address. Some foreclosures are in good shape, and can be moved into without doing much work. But the majority of them need some help. As a buyer, you want to find a foreclosure that is not going to take up too much of your time; unless you do not mind the work, of course.

You can definitely save money when buying a foreclosure. But if you think you will be able to move right in you may be mistaken. Before you buy a foreclosure, or even contact the bank about moving forward, get a better idea of how much money and time you will need to sink into the home in order to bring it up to par. This way you know what you will be up against once the home is yours.

photo credit: Joshua Davis (jdavis.info)

Three Tips for Decorating a Small Bathroom

April 8th, 2009

Do you have a small bathroom in your home? If so, you may neglect this space because it is not one of the bigger rooms. While this may make sense to you, keep in mind that decorating a small bathroom can be an easy task. After all, a smaller room means fewer decorations and less money that you have to spend.

Here are three tips for decorating a small bathroom:

1. Less is more. If you are decorating a small space you want to use a minimalist approach. Instead of loading your bathroom full of decorations and accessories you should stick to the basics. You will be surprised at how much bigger your bathroom feels if you do not load it with unnecessary items.

2. Choose your paint color wisely. As you can imagine, some paint colors will make your bathroom look and feel smaller. If you opt for a lighter color your bathroom will appear larger.

3. Don?t use oversized pieces. For instance, if you want to hang a picture make sure it is not overpowering. Every piece that you add to your bathroom should feel ?to scale? so that it does not take over the space.

If you have a small bathroom that needs updated use the three tips above to keep on track.

photo credit: SharkeyinColo

Historic Locations in San Francisco

April 8th, 2009

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It’s one of the most historically significant cities on the west coast of the United States. Arguably, it’s THE most significant. San Francisco, like the United States, got its start in 1776 when the Spanish built a fort to watch over the Golden Gate, the entrance to San Francisco Bay, and built a mission dedicated to Saint Francis of Assisi. A few decades later, with the coming of the 1848 California Gold Rush, rapid growth and expansion would hit the city. Today, San Francisco is home of many historic sites.

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Safety from Pollutants

April 7th, 2009

One of your most important jobs as a landlord or a property manager is making sure your tenants and their guests are safe and secure in their home. It’s your job to make sure that the home is pollutant free before the tenants move in.

Indoor air pollution has become a more prevalent problem as people have been working to eliminate drafts and air leaks, thereby trapping more pollutants inside. If this is a problem in your rental units you’ll have to improve the ventilation to alleviate the problem.

If you have a large amount of nitrogen dioxide or carbon monoxide in your apartments they you’ve probably got a poorly maintained or vented range, heater, dryer, gas appliances, or fireplace or other heating element. Make sure that all of these appliances are properly vented and that the vents are clear. Check for cracks in the appliance itself and make sure there is a working ducts on heating systems. Perform all routine maintenance procedures as recommended by the manufacturer.

Lead paint is a hot topic for a lot of people, but if your home has been repainted since 1978 you’re probably safe. Most paint stores have inexpensive kits you can buy to test the paint if you’re uncertain.

Asbestos is another pollutant you hear about regularly, asbestos was used in the 1940s and the 1950s to make fire-resistant structures for the home. It becomes hazardous when the small fibers break off and crumble. If your rentals were built after 1972 you’re probably in the clear, but if not you’ll want to have professionals remove and replace all of the asbestos.

It is your duty to keep your rental units up to code when it comes to the safety and security of your tenants.

Do your own Repairs to Save Money

April 6th, 2009

shutterstock_17794888 As a property manager or landlord you know that items need repaired from time to time. This can include everything from a faulty furnace to a leak under the sink. While you should expect these situations to occur you need to keep one thing in mind: you can save a lot of time and money by doing your own repairs. To go along with this, you may also save a lot of hassle for your tenants as well. How does that sound to you?

There is no denying that completing your own repairs can save you money, and plenty of it. Remember, it is not the parts that make a professional repair costly. In most cases it is the labor that goes into the job. This is particularly true if you need to hire a skilled professional such as an electrician or plumber. Fortunately, there are a lot (but not all) of repairs that you can probably make on your own.

If you don?t ever attempt to make a repair you will never know if you have what it takes to complete the job. To go along with this, practice makes perfect. Sure, you may struggle to fix that leak under the sink the first time. But if this issue ever comes up again you will know what you are doing. Over time you will learn the ins and outs of many repairs, which will in turn make your job easier.

As a property manager or landlord saving money is important. You can keep more green in your pocket by doing your own repairs.