August « 2009 « AllPropertyManagement.com

Archive for August, 2009

Maximize Your Online Presence

Monday, August 31st, 2009

Sure managing properties means a flexible schedule, a constant change of scenery and a lot of face time with tenants, contractors and interested renters, but what about your presence elsewhere?

Online property management has become a key part of the success of many professional managers? businesses. It?s becoming essential to have a web presence these days, as both the rental market and property management services move more towards online accessibility and ease.

Here are a few ways to optimize your web presence and make your responsibilities as well as those of your tenants, a little easier.

Obviously if you don?t have one, start a website.

If you already have a website, make it more interactive. Add a blog or a forum as a way to connect with tenants and prospective renters. Join a social media site like Twitter or Facebook to make yourself more accessible, or offer online services like bill pay or maintenance forms.

Also, if you haven?t already, look into investing in property management software. Not only can it reduce the stacks of paper files on your desk, but it has a host of tools and options to make organizing and updating information quick and easy.

Finally, get involved in the community?the online community! There are dozens of forums, groups and blogs just for property managers. Exchange ideas, ask questions, even give advice?you never know when you might need a resource to help you with your business, or be one for someone else.

With these simple additions to your online presence, you can make your property management business stand out to tenants and prospective renters alike. Just be sure to follow through with what you started?a Twitter account won?t do you any good if you never check it, and neither will online software if you don?t use it.

Posted in Uncategorized | No Comments »

What is a Managing Agent

Friday, August 28th, 2009

Being a landlord or a property manager can be a very challenging job with an overwhelming workload. That is why some people turn to managing agents for help.

A managing agent is not the same thing as a property manager or a management company, instead of setting house rules, interviewing tenants, and handling evictions the managing agent is responsible for the more day to day activities.

You can expect your managing agent to inspect and maintain common areas, perform small maintenance tasks, organize and deal with garbage and recycling collections, administrative responsibilities, acting as a go between for tenants and managers or owners, and other small regular duties in and around your property.

In some situations, like new construction, a property manager is only needed for a short period. Other property owners like to have a property manager on hand at all times for those little things that take time but aren?t very complicated.

There are many managing agents in every region and you can find them online or in the yellow pages, but some landlords have found that hiring one of their best and most trusted tenants as a property manager is a win/win situation. Using a tenant as the property manager you know they have a vested interest as they live on the property too and they?re happy to get a discounted rent charge. But they may not be as biased as an outsider would which can complicate things in the future.

Posted in Property Management | No Comments »

Should you Mediate

Thursday, August 27th, 2009

Being sued is obviously something you want to avoid, but suing someone is typically something you?d want to avoid as well. Rather than taking your conflicts to court it may behoove you to try mediation instead.

Mediation is typically a better solution that court because it?s faster, private, and inexpensive and tends to be fair to both parties. This is especially useful if the person who is suing or being sued is someone with whom you?re going to have continued relations in the future. Mediation tends to be a bit more gentle and can help preserve the relationship a bit.

One aspect of mediation that most people forget is the privacy issue. Court events are public record and can be researched by anyone, but mediation is kept confident, which is one way it may help preserve future relationships by protecting reputations.

You can find mediators through traditional routes such as the internet or phone book, or you can contact an attorney and see if they can recommend a mediator to handle your disputes. Remember that while typically being less expensive than a full blown trial, mediation still has a price tag attached so the first step in any dispute is to try to figure it out on your own first and if you can?t come to an agreement, then proceed through other channels.

Posted in Real Estate Law | No Comments »

Mortgage and your Down Payment

Wednesday, August 26th, 2009

For most people, buying a home means applying for a mortgage. Unless you can buy in cash, you will need a mortgage to make your dream a reality. There are hundreds of lenders that offer mortgages, and you will find out soon enough that some are better than others. Before you begin to shop for a mortgage you will want to get a good idea of how much money you can afford to put down. This is something the lender is going to want to know before they can offer a loan and let you know what rate you qualify for.

How much money do I need? In the past, you may have been able to get away with 100 percent financing. But in today?s world the economy is bad and the real estate market is struggling. For this reason, lenders are no longer offering this deal. Instead, they are asking for at least 5 percent and in most cases more.

To be safe, you should have 20 percent for a down payment. Not only will this give you instant equity, but it will also allow you to avoid private mortgage insurance. If you don?t have 20 percent to put down you have two options: you can wait to buy and continue to save, or you can attempt to find a lender that will offer a good deal with less than 20 percent down.

Don?t be afraid to shop around for the best mortgage. Lenders offer different rates, and depending on your down payment you may find your pool of options getting smaller.

Posted in Mortgages | No Comments »

Add Foreclosures to your to-see List

Tuesday, August 25th, 2009

Are you shopping for a new home? Do you want to get involved with investment properties? If you answered yes to either question it is important to consider all options, including foreclosures. A foreclosure is not right for every buyer, but you don?t know where you stand until you consider them. Once you learn the pros and cons of foreclosures you will have a better idea of what they can and cannot do for you.

Why would I buy a foreclosure? The reason for this is price. The bank is usually willing to offer a great price on a foreclosure because they need to sell it in order to recoup some of their money. Does this mean that all foreclosures are a steal? Definitely not. But if you look long enough you will realize just how much money you can save.

On the downside, you may not like foreclosures because most of them are rundown. This is not always the case, so you should keep an open mind. But it is very uncommon to find a foreclosure that does not need some work.

Additionally, it is not always easy to buy a foreclosure because the bank does not offer much flexibility. They probably won?t entertain lowball offers, and in many cases you may not have a right to an inspection. These are details to discuss with your real estate agent as you are shopping and ultimately making a decision.

You should add foreclosures to your to-see list even if you don?t think you will move in this direction.

Posted in Foreclosures | No Comments »

Learning the Jargon of Property Management

Monday, August 24th, 2009

Acceptance Fee ? Some lenders charge a fee to give you a mortgage, this is your acceptance fee.

Bridging Loan ? A bridging loan is a temporary property loan when the borrower is between selling their old home and buying a new one.

Common Areas ? Property that is shared by all the tenants in an apartment or owners of a condo.

Deposits ? A deposit is an amount of money that is put forth in earnest to hold a property or to help defray costs when the tenant moves out.

Equity ? The equity in a home is typically the value of the property minus the remaining mortgage.

Fixed Rate Interest ? A predefined interest rate charged for the full term of the loan.

House Rules ? A set of rules that must be maintained by residents.

Interest Only Mortgage ? The interest only mortgage lets you pay only the interest during the loan and at the end of it you owe the principal.

Lease ? The legal document that binds landlord and tenant together in regard to the rental property.

Management Company ? A group that functions as head of a property in place of the owner, handling or delegating all of the day to day responsibilities.

Negative Equity ? When a home owner owes more on their home mortgage than the home?s value.

Unit ? Each individual living space within a multifamily dwelling.

Posted in Property Management | No Comments »

Apartment or House Rules

Friday, August 21st, 2009

If you?re new to the multifamily housing world and making your first foray into the business of being a landlord you?re going to want to establish some rules before you even think about renting your property.

If you?re doing the property management yourself you should research what rules are common and what rules are discriminatory. You want to establish fair rules that fit with your standards but ones that do not discriminate any renters or potential renters.

For landlords who?d rather have a property management company handle the ins and outs of the business you?ve got an easier road ahead when it comes to establishing rules for your renters. As long as you get an experienced property manager they?ll know the ins and outs of renter rules. The only work you need to do there is make sure you agree with their predefined rules and if you?d like to add a couple of your own you?ll have to iron that out as well.

In addition to establishing your rules there should also be a written explanation of how rule violations will be handled and the process for dealing with complaints from other tenants regarding rule breakers.

All of this information should be presented up front and in the lease. This ensures that the tenants and the landlord and/or property manager are on the same page and should make things go more smoothly.

Posted in Property Management, Tenants | No Comments »

Flooring Options: From Cheap to Expensive

Thursday, August 20th, 2009

If you are interested in changing your flooring you should be aware of all your options from cheap to expensive. With so many flooring options it can be difficult to decide which one is right. Not only do you have to consider the cost, but you also have to look into other details such as durability, your decor, etc.

Price may be most important to you; there is nothing wrong with this. But even then you still have to make decisions on what type of flooring is best. For instance, ceramic tile is going to be cheaper than travertine or slate. It may not look as high end, but it is a cheap option that gives you a similar look and feel. The same holds true when buying wood flooring. Laminate flooring is cheaper than real wood. But while it looks the same in many ways it is not going to appear as high end or as durable to the feet.

As you can see, flooring ranges from cheap to expensive and everything in between. This is true no matter if you are buying tile, wood, vinyl, or carpeting. As a buyer you need to know what type of flooring you are interested in, as well as how much you are willing to spend. Shop with these details in mind, and the perfect flooring will present itself to you soon enough.

photo credit: Velo Steve

Posted in Mixed Bag | No Comments »

Make It Right

Wednesday, August 19th, 2009

Brad Pitt?s Make It Right Foundation was founded as a reaction to Hurricane Katrina and the slow reaction of emergency crews and the government. Town hall meetings brought some issues to light and a unique opportunity. The leveling of sections of the Lower 9^th Ward made it possible to rebuild with an environmental bent that will save money and the environment in the long run. Thus Make It Right was born.

At this point there are 14 new designs for single family and multifamily homes and they will be built in the Lower 9^th Ward of New Orleans along with more than 100 other homes as the reconstruction begins.?

The multifamily home is a new addition to their line up as the Make It Right Director, Tom Darden, knew there would be a demand as they neighborhood used to be filled with this type of home.

Not that there is any bright spot in the devastation that Hurricane Katrina created but there really is an opportunity to bring the area innovative living situations that are affordable, safe, ecoconscious and livable. No matter how you feel about Brad Pitt and his beliefs you have to give him credit for his work in New Orleans as these homes may turn into architectural innovation leaders that people in other regions look to for their own inspiration.

Posted in Mixed Bag | No Comments »

Selling a Rental Property when it becomes too much

Tuesday, August 18th, 2009

Most people buy a rental property because they are looking to make money. Even if things start out this way, you never know how your life and vision is going to change in the future. There may come a time when you want to sell a rental property because it is becoming too much for you to handle.

Here are three times when selling a rental property makes sense:

1. You no longer have the time. Keeping up with a rental property is a lot of work. You have to keep tenants happy, maintain the property, and collect rent payments. Do you have the time for all of this and much more?

2. The money you are making is not more than what you are spending. In other words, you are not making a profit. Not every rental property is going to be profitable. And even if your property is making money right now, this can change in the future. Positive cash flow is a must in the rental property industry.

3. You don?t have the patience. One of the greatest skills you need as a landlord/property manager is patience. Are you willing to deal with tenants that don?t care? How will you deal with late payments? If you are ?burnt out? on the rental property game it is time to get out.

photo credit: lemonjenny

Posted in Rental Property Management | No Comments »