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Finding a First Apartment

April 1st, 2010

First apartments are very exciting ventures but don’t let the excitement sweep you up and cause you to lose sight of the big picture. The first step to finding your first apartment is creating a list of your needs and your wants. Make sure to be practical and put only those things you need on the need this, then rank your wants and always keep this in mind when apartment shopping. With a list of priorities you’re less likely to be swayed by the pool and exercise room while forgetting important details like security and neighborhood.

The next step is obviously the budget. Look at your income and your expenses and try to figure out what you can afford. A rule of thumb is that your housing should be somewhere between 25 to 30% of your gross income. But if you can find a place that suits your needs and most of your wants for less you should definitely go that route. Most people looking for their first apartments have nominal savings and spending too much on housing is not going to help that situation.

Then you’ll want to look at the area in which you’re planning on living? Find crime statistics for the region, look at bus routes, proximity to work, school, grocery stores, parks and anything else that interests you. This is something that a lot of first time apartment hunters skip as they only review finances and amenities but safety and proximity to attractions is important.

Finally you’ll want to shop and see. Look at as many properties as you can and you may find your priority list shifting a little bit. See who is offering the best deals and as if they have any incentives attached as many landlords are trying to get tenants and will throw in some freebies.

Qualifying for your First Mortgage

March 31st, 2010

Before you go looking for that American dream and scouring the newspapers and open houses for that perfect home you should first find out how much home you can afford.

Lenders use a certain formula to determine how much they’re willing to lend you, but you can roughly count on three times your total annual income, before taxes. Of course this is just a rough estimate and a lot of other considerations will be evaluated first. And you don’t have to buy a home that falls in that price range, it’s not only allowed but in most cases you’re better off if you purchase a home that is less than the amount the mortgage lender approves you for.

Before you meet with a mortgage lender it is a good idea to get your credit rating in order, pay down your bills, and set aside a down payment.

The first step is checking your credit reports for any errors and cleaning up any black marks on your rating. The higher your credit rating the better.

Your next step is to pay down or off your debt. Mortgage lenders will look at your budget and your debt and use this to determine how much they’ll lend you so it really is a benefit to have as much debt paid off as possible.

And finally, having a down payment used to be optional or very minimal for home buyers but after the housing crisis that has changed and having a down payment can affect the interest rate you’ll be asked to pay.

Getting approved for a mortgage shouldn’t be an impulse decision, you need to prepare for your mortgage meeting so you can get the best deal possible on this huge investment.

photo credit:?tomeppy

Tips to Finding a Deal When Buying a New Home

March 29th, 2010

There are a lot of home deals on the market now, the problem is real estate is still not a sure bet and if you already own you will probably be stuck trying to sell your current home. But if you’re still ready to buy here are some tips that can help you find the best deals.

Patience

In the past real estate was about acting quickly and getting the deal before anyone else now its about waiting to get the right price and the right property. If you do your research and are willing to wait you can probably find your dream home at a reduced price.

Old Listings

Look for listings that have been on the market for 90 days or more. The rule of thumb is that listings more than 90 days old are stale and you can usually get a better deal. There doesn’t seem to be a correlation between houses on the market longer than 90 days and deeper discounts but the more owners pay that double mortgage the more likely they are to take a discount.

Look for Fixer Uppers

Many people give up on their little DIY projects when they realize their home is losing value, others just don’t care after a while. These homes can typically be bought for deep discounts and the reap the bigger rewards by doing the work yourself.

photo credit:?quimpg

Tax Tips for Landlords

March 18th, 2010

As tax season approaches there are a number of items a landlord must keep track of for tax time. Keeping meticulous records of everything will make your job easier and will help with taxes. Make sure to pay particular attention of the following items and you’ll find your taxes are easier to manage.

Purchase price. It should go without saying but sometimes the obvious needs to be stated, keep track of the actual purchase price of your property including all the additional fees that come along with a purchase.

Depreciation. This is a less concrete figure to keep track of but it’s important to keep track of your depreciation throughout the year so you get the most benefit out of your taxes.

Expenses. Every expense you have associated to your buildings needs to be itemized and documented as these are key deductions come tax time. Don’t forget to include your advertising, cleaning costs, maintenance and repairs.

Rent and other fees. Rent is something most landlords know to keep track of and all the good ones keep accurate records but it’s not just the rent that needs to be taken into consideration. All fees coming in to the landlord or your property management company need to be recorded for tax season.

photo credit:?Josh Thompson

5 Ways to Increase Property Value

March 12th, 2010

Whether you’re a property manager and want to increase the property value to draw a higher class of tenants, or if you’re a homeowner and just want to increase your home’s value for a future resale, the following five tips can help you increase your property value.

Storage

Storage is a key issue for renters, home buyers and homeowners. Improve the storage options on your property by adding more, cleaning them up, or adding compartments that make storage easier.

Make Repairs

Too many homeowners and landlords ignore little repairs and let them slide as they’re not essential but this habit should be avoided and all repairs should be made as promptly as possible.

Curb Appeal

Curb appeal is always essential, make sure your home looks good from the road, whether it’s just a simply lawn cutting or something more complex like intricate landscaping, every home looks better when the lawn and exterior is well cared for.

Safety

Take additional safety steps by adding home security, improved locks, motion detectors and improved lighting.

Clean

Not the typical cleaning where you dust a little and run a vacuum once a week, but thorough regular cleaning will keep everything in the house looking its best and in optimal working order.

New FHA Insurance Fund

March 9th, 2010

New news for homebuyers and sellers, the FHA has announced a plan to secure the solvency of the Insurance Fund. There are a number of ramifications of this plan and some are predicting that the end result will once again be a slow down in the housing market which had just begun to see a little lift in the last year.

One of the big changes that we’ll be seeing is an end to the first time homebuyer tax credit. Not an entirely shocking announcement as this tax credit was so generous it was pretty clear that it would not be permanent.

Another change will be that the government’s purchase of mortgage backed securities will end. In 2008 almost all loans in the secondary market were bought by the government by stepping out of the market, mortgage rates are almost certain to rise, causing a whole slew of repercussions.

To make matters a little bit worse guidelines are being tightened on loans. The goal is to lessen defaults but it will ultimately mean fewer people can purchase a home and the qualifications will be more stringent.

Of course this is just the FHA’s announcement about their plan, it’s not a certainty at this point but it does seem fairly certain that things will go forward.

photo credit:?Kamal H.

4 Ways to Keep Your Tenants Happy

March 8th, 2010

Keeping tenants is much more profitable than finding new tenants so the key to being a prosperous landlord who doesn’t have added troubles and work is to keep your tenants happy. The following four tips can help you keep your tenants in your property and insure everyone’s happiness.

Business Attitude

Treat your tenants with professional respect. Don’t gossip with tenants or become their buddy but treat them with respect, a polite demeanor and take them seriously. Let them know that you will listen to their complaints in an even and fair manner and treat no one with favoritism.

Be Available

Whether it’s you, a manager, or a property management company, someone always needs to be available to deal with tenant issues. Some of these issues will be emergencies and others can be handled later, but no matter what your tenant will want to be heard. Taking initiative and routinely contacting your tenants through a phone call, email, letter, or in person will go even further to let them know they matter.

Safety First

Always put your tenants’ safety first and don’t be afraid to let them know this. Let them know when safety related repairs are being made or if you’re taking steps to prevent break ins and theft.

Additional Conveniences

Whenever possible, give your tenants those little extras. Bus tickets, group discounts, a picnic table, new landscaping or any little thing that you can provide that will be appreciated by most of your tenants. If they feel respected and like you care they’re more likely to treat you with respect and hold up their end of the agreement.

Tips for Good Property Management

March 1st, 2010

It’s time to turn over a new leaf with your property management skills and get things in order and running smoothly.

Screen Everyone

Make it a policy to screen every single person who wishes to be a tenant of your property. Use the same thorough procedures for each one and you’ll get great tenants and avoid future lawsuits.

Security Deposit Policy

Establish a fair security deposit policy that fits within all local guidelines and is timely and then stick to that policy fastidiously.

Written Record

Get in the habit of writing everything down and keeping written records. When dealing with others, try to get them to sign all documents as well.

Make Maintenance a Priority

Stay ahead of repairs and maintenance and respond promptly to any tenant notifications. Handling these issues promptly will keep tenants happy and may prevent costly replacements or major repairs.

Be Available

Be promptly available to tenants and employees whenever they have an issue to bring up. Let people know you care about them and your property and you’ll receive equal respect.

Security Priority

Make security a priority and do the big and little things that make tenants feel safer, deter criminals and makes your property more desirable to the public.

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