February « 2010 « AllPropertyManagement.com

Archive for February, 2010

Top Ways You Can Avoid Foreclosure

February 26th, 2010

Nobody wants to lose their home, but sometimes in the midst of your family financial crisis, you may not be thinking straight enough to see all the possibilities for avoiding foreclosure on your mortgage. Some ideas to consider include:

Talk to your bank or lender. It’s actually better for them if you are able to keep paying on your mortgage, even if it is at a lower rate for a while, compared to foreclosing and them having to sell your home. They might offer several different options, if you ask early enough, like restructuring the loan over a longer period of time, or reducing or suspending payments for an agreed length of time.
Your lender might also provide financial counseling and advice which would include assistance to help you set up a budget and pay at least part payments towards your mortgage.
Get a second job for a limited period of time. It may involve sacrificing hobbies or family time, but if it is only for the short term and it obviates the need to sell your home, it’ll be worth it. If you’ve lost your job, be prepared to do any kind of work for a while rather than waiting for a new opportunity in your own profession.

Small-Scale Renovations That Can Add Value to a House

February 25th, 2010

If you are looking to add value to either the home you’re living in or an investment house, there are a few different ways that you can make some relatively small changes to do so, without commencing full-scale renovations, which can be expensive and time-consuming.

To start with, you should consider minor renovations to the usual suspects – the kitchen and bathroom. If you can get away with changing some appliances or just modernizing the tiles, it can make a big difference to the feel of the home. Old-fashioned kitchens and bathrooms are a major turn-off for those in the market for a newhome.

You should also look for opportunities to create extra space. If your property has a basement, then consider what you can do to improve the usefulness of this space. If you can remodel it into useful living space or even include a spare bedroom down there, your home’s value will rise. Similarly, if you have an unused attic space which can be converted into an additional bedroom without a huge remodel, then do it.

Finally, getting a wood deck added on to the side of your home is extremely popular at the moment, and can be done at a minimum of cost, especially if you take over some of the labor yourself. The cost will depend on the type of wood you choose, but all kinds of decks will add value to a home.

photo credit:?Schilling 2

Questions to Ask a Property Manager

February 24th, 2010

If you’re considering using a property manager you’re relinquishing some of your regular property responsibilities but you’re also removing yourself from your investment so you want to make sure it’s in good hands. Use the following questions to screen property managers before hiring them.

Experience

What is their experience level, not only how long have they been in the business but what types of properties have they managed and what services have they provided?

Work Load

It’s important to know what kinds of duties they are willing to perform but also how many other properties they’re managing concurrently.

Professional Credentials

Anyone can be a property manager but there are organizations that offer professional credentials, continuing education and support systems, most landlords prefer someone with a professional group affiliation.

Who Will be Managing

Many property management systems are large companies and the person you speak with often won’t be the one doing the management. Find out who will be doing the work and make a point to meet them and speak with them directly.

Established Policies

Learn the property management company’s established procedures and see if they jive with yours. If there need to be concessions either way, make sure they’re in writing.

Your Responsibilities

Learn what will still be expected of you as the property owner. Some property management companies prefer the owner being hands off, others still require a lot of contact and effort from the owner.

Find that Down Payment

February 23rd, 2010

No down payment loans were available a few years ago, but after the housing crash those loans have all but disappeared from the market. Today you’ll probably have to come up with a down payment to prove to the lender that you are serious and do have some finances on your side.

Begin Saving

One way to come up with a down payment is the good old fashioned way of saving. Tuck aside every spare dollar that you can. You’ll need some spare cash after the house is purchased too so this is a good habit to establish.

Borrow from Savings

If you have money tucked away in stocks, a 401K plan or another retirement plan you may want to zap those funds and use them as your down payment.

Public Programs

Look for public programs or governmental assistance that is set up to help homeowners come up with a down payment. There are a number of different programs and you might be surprised at what you qualify for.

Putting up a sizeable down payment means you can borrow less money for the home, you will get a lower interest rate, more mortgage lenders may want your business, you’ll pay less mortgage insurance, and you may be able to totally avoid PMI payments.

photo credit:?faungg

How to Become a Property Manager

February 22nd, 2010

If you’re considering moving into the property management field congratulations. Property management can be a very rewarding and lucrative job, especially for people with the right personality type.?

There are no real steps to becoming a property manager as no schools offer a degree in this field. But degrees in finance and business are helpful for property managers.

Although there aren’t any degrees in property management there are a number of classes, certifications and professional groups. You should try to take as many courses as you can to educate yourself and then gather certifications and professional affiliations.

Check with the state you live/work in to see if they require any licensing examinations. Not all states do but if yours does you’ll need to have this taken care of.

Getting experience in the real estate world is quite useful, maybe more useful than management experience. Real estate is a tricky field and knowing the ins and outs can be very helpful in the future. Being involved in this field can also open doors and introduce you to local landlords and property owners.

And finally, get noticed in your community. Join the chamber of commerce and other professional groups that bring business leaders together. Network with realtors and property owners. Arrange meetings whenever possible to let people know of your services. Establish a reputation for yourself as a hardworking, go getter who is a leading professional in their business.

Typical Complaints Againsts Home Owners’ Associations

February 19th, 2010

Home owners’ associations should be there to make sure a complex of homes is run smoothly, efficiently and to the satisfaction of all the owners, but unfortunately that is not always the case. It can be good to be aware of the typical problems and subsequent complaints that can arise from owners, and be on the look out for similar problems in your association.

Obviously, any mismanagement of money is a major problem for the members of a home owners’ association. This could fall into several categories, including money that is poorly spent (for example, completing some major work without getting multiple quotes to ensure value for money) or worse, illegal uses of the money. At the same time, it can be just as bad if your home owners’ association charges fees which are too low, and the reserve fund is then unable to cover necessary maintenance such as painting or emergency replacement of broken items.

Other complaints against home owners’ associations can include unfair elections for the leading roles, incorrect or illegal use of home owners’ records, or fining home owners excessively or unnecessarily for apparent violations of the rules. If you have a complaint against your association, be sure to follow it up with the relevant offices.

Pros and Cons of Buying At A Home Auction

February 18th, 2010

An auction can be an exciting event, but is it the right place for you to buy a home or an investment property?

There can be several advantages to buying a property at an auction, and the most significant of these is probably the possibility that you can buy a house for a cheaper price than through a regular sale. Also, once you have won the auction you can’t lose the house by having another potential buyer come in with a higher price, which can happen if you are buying through a normal house sale situation.

However, there are also some significant disadvantages to consider. There may be auction fees involved, so you should check these before you calculate your maximum bid. It is also possible to get carried away at the auction event and bid higher than you are able to afford. Another problem is that because the nature of the auction process means the entire sales process is faster, you may not spend the necessary time investigating the property before you have to bid on it. Do not get involved in an auction unless you feel confident both about the condition of the property and the state of your finances.

photo credit:?LakeMartinVoice

Raise the Rent or Keep A Tenant?

February 17th, 2010

If you’re self-managing your own rental property, or your managing agent has said you should consider raising the rent, there’s an important point you should think about before you just see the dollar signs of more rental income being paid into your account. Unless your tenant is leaving, think twice!

When you have a suitable tenant in your property, and there is no sign that they will be leaving any time soon, it is often not worth raising the rent they have to pay. Doing so can be a catalyst for them leaving, and then the amount of income you gained from your rent increase will be eaten up by the costs of changing a tenant. Even if you are managing the property yourself, there are always costs when you change a tenant, even if it is just the lost days or weeks of rent, and the cost of advertising. For example, if you raise the rent by $10 a week, but then your tenant leaves your place empty for even just one week, think about how many weeks it will take to recoup this lost rent.

Take the time to consider your options before you increase the rent. Sometimes getting more money one week means you might get less the next.

Considerations When You Buy A Condominium

February 16th, 2010

There are many different reasons why you might want to buy a condominium rather than a house, but there are some important considerations to make before you take the plunge. These include:

Checking the maintenance and general condition of the whole complex – and find out what the plans are for repairs and regular maintenance like gardening and painting.
Finding out exactly what additional fees and charges are involved with owning the condominium – make sure you know exactly what the maintenance and homeowners’ association costs are, and if there are additional levies to be paid at any stage.
Reading the rules and bylaws of the complex very carefully, in case there are rules that you are not prepared to abide by – for example, bans on pets.
Knowing whether you are buying freehold or leasehold – if you are only able to lease the land, then the value of the condominium should be lower to reflect this fact.
Examining the financial statements of the body that runs the complex. Check that the money seems to be spent in a way you can agree with, and be sure that there is a suitable reserve fund being built and maintained for any emergencies that may arise.

photo credit:?Christopher Barson

Avoid Real Estate Mistakes

February 15th, 2010

Investing in real estate can be an exciting venture, whether you’re looking to make a mint by flipping houses or if you’re more practical and just want to buy a home for you and your family. But there are also some pitfalls to home ownership, although some of them can be avoided by steering clear of the mistakes listed below.

Real Estate Pipe Dreams

It’s the get rich quick real estate dream that will probably never come true. Real estate is typically a good long term investment. Most people shouldn’t think of real estate as anything but a long term venture.

Paying Too Much

Everyone is looking for a good price when buying a home but some people still pay too much. Learn about the neighborhood, the value of the home and its amenities. Break down the investment as you would a major purchase to make sure you’re getting what you’re paying for.

Falling in Love

Yes you want to love the home you live in but you don’t want your emotions to control your purchase decisions. Try to be as clinical as possible and treat the purchase portion of the deal as a business venture. After that you can let your emotions run wild.

By avoiding the common mistakes above you’re more likely to find a great deal and a home or investment that works for you.