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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.

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.

Stay Away from Get Rich Quick Real Estate

February 12th, 2010

There is something about those late night commercials and get rich schemes that is appealing but be wary because they’re just as big of a scam now as they were in the past. Sure the real estate market has changed and it’s easier to find a great deal but the economy isn’t right for many and buying any real estate may be too financially taxing.

Before you buy the sales pitch and toss well earned money at these real estate gurus, remember that few of them (if any) can actually back up their claims. And even if the pitch isn’t entirely a scam, it’s definitely not a no effort, immediate way to roll in the dough.

Buying real estate is typically a good investment, but few people have the time, money and ability to purchase more than one or two homes. Then there is also the time involved with real estate investments. They don’t immediately appreciate over night, typically it takes a long time for real estate to jump in value and quite often you’ll need to make improvements to the property to keep with the times. At the very least there will be maintenance that will drain your finances.

If you’re interested in investing in real estate there are ways to make money, you can make substantial money in fact, but you’re going to have to be willing to invest time learning about the business and the area as well as the property itself and you’ll have to have a significant amount of money to invest in the initial purchase and maintenance.

Creating the Best Website for your Property

February 11th, 2010

Having a website today is almost a requirement, but having the wrong website can actually hurt your business. Create a website that attracts renters and presents your property in the most positive light by using the following guidelines.

Photos

Take photos of the property that show it in the best light possible. If you’re having a hard time getting photos that look good, hire a professional photographer. It will be worth the expense.

Text

Be informative and descriptive in your text but only describe the property, not your ideal tenant. Your job is to sell the property, not weed out tenants on the website.

Online Convenience

Add some modern conveniences to your website such as online applications, links to neighborhood businesses, schools, bus lines and anything else a tenant may want, online bill payment options, and direct contact to you and/or your maintenance crew.

Current and New

Don’t just think about potential residents, but consider your current tenants as well. Divide the site into areas of convenience and information for both.

Be Diligent

Stay on top of your website and respond to all inquiries in a timely fashion. You don’t want to put off potential tenants and you can’t afford to ignore established ones. You should also post new text and/or photos whenever applicable. Don’t list info on specific units as you’ll create too much work trying to keep up with them, but do provide information on major renovations or upgrades.

photo credit:?tomeppy

Three Tips to Finding a Good Deal on a New House

February 8th, 2010

It’s a buyer’s real estate market out there, so if you don’t have a home to sell you may be able to find a killer deal on a new home. But there are still some things you can do to ensure you’re getting the best deal possible.

Look for Old Sales

Houses that sit on the market for more than three months are considered stale. It’s an old adage and really, logically, shouldn’t apply when the market is so slow but it does and it can mean a big deal for you. Look for homes that have been on the market for more than 90 days, the longer the better as the sellers are probably almost willing to accept any reasonable offer. You may find owners who are holding out for a price that is too high for the market, but this is the exception, not the rule.

Find the Discounts

Do the research (or have your realtor do it) and find homes that have already been discounted at least once and for a pretty big chunk. Typically these homes are a burden on the homeowners and paying the mortgage is getting to be too much so they’re looking to make a quick and easy sale.

Come Preapproved

Having a mortgage lender firmly in place and your loan amount preapproved is a big bonus, especially for sellers that are anxious to close the deal quickly. You suddenly are a known quantity and basically a sure thing as long as you’re happy with the inspection. This not only makes you more enticing to the seller but makes the process easier on? you as you know what to expect and how much you can actually afford.

Foreclosed Homes as Rental Property

February 5th, 2010

With so many foreclosed homes on the rental market it’s easy to imagine picking up a property or two at a deep discount and turn it into a money making rental unit. But it’s not that simple, there are some things to consider.

Location

Like all home purchases, location is key. If you’re looking to get quality renters you have to be in a location that they want to be in. It’s not a deal if you can’t get a renter.

Bank or Homeowner

Will you be buying the home from a bank or from the homeowner? If the home has already been foreclosed upon then you’ll probably have to deal with the bank. If it hasn’t quite been foreclosed yet you might be able to deal with the homeowner, and this can be an ideal situation.

Inspect the Home

Do as much due diligence as possible inspecting the home, even chat with neighbors to find out about the owner’s habits. People that have foreclosed homes often do not put the care and pride into them as other homeowners.

Tenants

Often landlords become overwhelmed by economic crises, if the current homeowner is a landlord then there’s a good chance there are already tenants. Learn everything you can about their lease and if you’ll still have to abide by it.

Buying a foreclosed home as an investment can be a lucrative idea as long as you do your homework and make sure it’s a sound investment.

Things to Have in a Property Management Contract

February 3rd, 2010

For a landlord hiring a property manager is no small task, it takes work to find a company or person you trust and are willing to rely on when it comes to your investment and quite possibly yours and your tenant’s well being. To get some added peace of mind add the following elements to your property management contract.

Communication Expectations

Detail what you expect to be notified about and how you expect to receive that notification. It wouldn’t hurt to also specify a timeframe for notifications.

Finances

Your state will have some sort of laws regarding the accounting practices of property managers so you should familiarize yourself with the law and the minimums, but you may want to ask for a little more due diligence or information than is traditionally given. You may also want to break down financial obligations and establish procedures for dealing with the tenants and their finances as well.

Tenant Responsibilities

Tenant responsibilities will be the primary responsibility of the property manager but you’ll want to specify exactly what those responsibilities are and how they will be processed.

Termination

And most importantly for both parties, you’ll want to try to protect yourself if the company does not fulfill your expectations. Trying to get out of a contract is often difficult so you will want to try to work in a clause that lets you terminate the contract if the property manager isn’t working out to your expectations.

5 Tips for First Time Homebuyers

February 2nd, 2010

Buying a home is a very exciting and equally stressful experience. Going into the process knowing as much as you can about the business and the game can help you get the best deal and the property you want. The following five tips will help you buy your first home.

Do Your Research

Learn the neighborhood and the value of surrounding homes. This information is available through several different online locations, from sites like Zillow.com with comparative home values and local police blotters and predator websites that tell you which areas are more desirable.

Put on Your Poker Face

This is where a little game play comes into the process, don’t let anyone know you’re head over heels in love with the property and will pay just about anything, because if you do then you’ll end up paying top dollar. Keep your emotions to yourself.

Waiting Game

Another aspect of real estate is knowing that values wax and wane and being wise enough to time those trends to get the most bang for your buck.

Understand the Paperwork

Most people rely on a realtor and/or a real estate attorney that will help you wade through the enormous piles of paperwork. Whichever way you go make sure you understand everything that comes your way, and more specifically, everything you sign.

Patience

So much of the home buying process involves waiting and the better you are at waiting the better deal you’ll get and oftentimes you’ll find a better home if you wait and shop carefully.

photo credit:?army.arch

Dividing Property in a Breakup

January 28th, 2010

If you and your non marital partner have decided to go your separate ways there are a lot of issues to consider, the good news is that it should be easier because you are not legally bound by marriage.

If you own property together there are several different ways in which that can be divided. If only one of you has their name on the deed or title then the property is legally theirs, but the other party may have some legal right to it as they have probably contributed to the expenses of maintenance and any upgrades. These disputes can be handled in a court, through arbitration or through your own agreements if you can amicably come to an agreement.

If the two of you owned the property together then it can get more complicated. You can just come to an agreement on your own between the two of you and one can file a quit claim deed which gives the other entire possession of the real estate. But if it’s not that easy then you may need to again see arbitration or a legal judgment that will determine how to divide the property. If both sides have a considerable amount invested in real estate it’s not uncommon to have to sell the property so both parties get their fair share.? photo credit:?alancleaver_2000

Fixing a Bounced Check for Rent

January 26th, 2010

Sometimes it’s just an accident, sometimes you’re skating on the edge and other times you’re writing checks you can’t cash on purpose. Whatever the reason you’ve bounced a rent check you had better make amends immediately or you could end up without a home.

The first step is to tell the landlord of your mistake, believe me your landlord will take it better coming from you than the bank.

The next step is to try to arrange a payment schedule that will work for both of you. If you’re going to have the money in a day or two be sure to let the landlord know and then pay it as soon as you can. If you’re hit hard times you may need some sort of extension, see if your landlord will agree to a written extension.

If you think there will be a problem making the rent payments on time and in full for a while you should talk to your landlord about a possible temporary rent reduction. During this difficult economic time some landlords are having trouble getting tenants so having one that’s already there, proving to be fairly reliable and in need of a small discount in rent might be just fine.

But whatever you do, if you bounce a check to your landlord, don’t ignore the landlord or the situation, it won’t resolve itself.

photo credit:?jurvetson