Archive for the 'Property Management' Category
You don’t have to tell us, finding a good property management company is hard. When we first started investing in residential real estate we went through several property managers, struggling to find one that was truly exceptional.
Good tenants are hard to find. Add to that the cost of advertising for new tenants, the cost of cleaning and restoring the unit, and the loss in rental income during the vacancy, you want to make sure that your best tenants don’t move out any time soon. Here are a few tips to keep your tenants happy and ensure that they stay with you as long as possible.
As real estate investors we need tenants to occupy our rental properties so that we continue to receive the cash-flow we love each and every month. Many of us rely on our property managers to market and advertise the property, but some of us manage our own properties. Even if you’re a highly passive investor using the services of a manager, you may want to share this list with your property manager to help you out the next time you have a tenant turn-over.
If you’re looking for a reason to reject a potential tenant because of a gut feeling, here are 99 reasons to do so. If something seems “off” and you don’t know why, trust your instincts. Your neighbors and other tenants will thank you.
1. They try and get you to lower the rent before they even see the property.
This is a sure sign that this tenant can’t really afford the property. Asking before the showing means that the value of the property means little to them, they only care about the cost.
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For some residential investors, capital expenditure terminology — CapEx for short — is unfamiliar. Capital expenditure reserves are common in the commercial real estate sector but lesser known in the residential real estate space.
Hiring the right property manager is important for protecting your investment and achieving reduced vacancy time and maximized income.
A good property manager will bring high quality tenants to your rental investment properties. They will have a strong screening process and stay on top of maintenance issues. He or she will generally make your life easier by using technology to run an efficient operation and reach a large audience of potential tenants.
How does a real estate investor go about finding a good property manager?
US home rental prices continued to climb at a modest pace in December, but rapidly escalating costs in cities such as San Francisco and Denver suggest that renters are facing more financial pressure.
Prices rose 3.3% in December compared with 1 year ago, according to real estate data from Zillow.
Although the rise is less than recent appreciation in home values, the surge in rental rates in several of the hottest markets indicates renters who aspire to buy homes face mounting financial challenges.
All good investors are visionaries. That is, before making an investment they make predictions about the future – which may or may not come true.
That said, and working with the humility appropriate for any investor with a healthy appreciation for risk and instinct for survival, here are eight trends we believe will make their mark on rental real estate going into 2015 and beyond.
A better class of renter is changing the fact of Rentorship in America, creating a climate for higher rents.
Rental applicants, especially those applying for less expensive units, continue to see improvements in their credit risk, according to the latest TransUnion Rental Screening Solutions industry report. The average ResidentScore, a measure used to assess a rental applicant’s risk level, improved by 0.8% between Q2 2013 and Q2 2014.
When you own income-producing rental property, it’s important to attract renters and keep tenants happy without sinking a small fortune into luxurious upgrades that won’t get you much return on investment. On the other hand, not taking care of your property or offering upgrades will likely cost you more in the long run, as you’ll have a harder time finding and keeping responsible tenants. Luckily, there are some property improvements that are relatively affordable and can increase your rental home value and overall rental income.
Landlords have enjoyed the upper hand since the housing crisis as increased interest from renters coincided with little new supply of rental units. Rising mortgage rates, tighter borrowing requirements and higher home prices have taken many people out of the home-buying market. Plus, many remain burned by the housing crash and don’t want to own a home.
Property management, in its broadest terms, is the oversight of real estate. This can encompass everything from personal property to capital assets. Property management is a service provided by local businesses who do their best to manage your assets. The current state of the local and national economy will play a huge role in their decision making process. Before you invest your hard earned capital, you have to ask the question – is their personal best sufficient for the betterment of your business?
The question of whether it makes good financial sense is important. Many of the smaller investors just don’t have the answer. Lack of knowledge prevents them from bringing on professionals – leaving them to manage the property on their own. Does this short-term savings result in long-term profits?
Earlier this year Norada Real Estate added a One-Year Rent Guarantee as part of every investment property purchased through their network. The response by investors has been very positive and overwhelming.
A few people made the comment that it sounded, “too good to be true”. In response to those comments, I present the following excerpt from an interview conducted with Robert T. – a landlord with several properties. Rob’s properties are protected by the same policy we provide all our investors. Shortly after his policy was placed, he experienced a vacancy and filed a claim. The following is an excerpt of an interview conducted with Rob in February, 2013.
Non-payment of rent is a serious problem. It is one of those predicaments that places the landlord in a difficult situation. Moral and ethical values are often challenged by the need to collect the rent. If your only two choices are to evict a family that has fallen on hard times, or to go weeks or months without getting paid, the right choice isn’t always obvious. Most landlords have a conscience and genuinely care about the safety and well-being of their tenants. So the challenge is finding a solution that works out well for your tenant, as well as for your bottom line.
The number one goal of your rental business should be to make money, not give it away. One way to protect you and your investment is to have proper insurances in place. Let me introduce you to four insurances that you should consider.
A Good Lease
The first insurance that I posses is the insurance of a good lease and a thorough move-in inspection. More than once I have referred to the pictures of a move-in inspection to counter a tenant’s claim about a pre-existing condition. I remember one time during a preliminary move-out inspection I noted a cracked ceramic floor tile. The tenant claimed that it was like that when they moved in. I turned on my laptop, pulled up the appropriate picture from the move-in inspection, and proved to the tenant that the crack was in fact not there when they moved in.