Sellers need to review the Multiple Service Listing Agreement Contracts before they sign them. Giving permission to allow their listing Realtor to divvy up the commission as their listing agent sees fit is a mistake. Make sure the buyer's agents are being equally paid for their services. Sellers need the full cooperation of buyer's agents and fair commission splits are one way to ensure this.
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[Source: Real Estate: Selling Articles from EzineArticles.com - Posted by FreeAutoBlogger]
Real Estate Marketing Advice - The Great Commission Mystery - The R-E Maven
How to Find the Perfect Renters For Your Rental Property
You have opened your house for rental and have had couple of applications from some interested people. But now, you do not known how to choose the best one who can take care of your house and still provide you perfect remuneration each week. Well, if you are in such a dilemma then this guide will show you how to choose that perfect renter for your rental property.
What kind of renters you are looking for?
The very first thing to understand while leasing a house is that your potential applicants cannot afford a home mortgage because they might have bad credit, lost a job or might have lost a house even because of their financial problems. You should understand that most tenants do not have enough of financial ability to back home loans but might have just turned their table slight with a bit of financial help. They will probably have a good rental period for at least 6 months, might have got a new job and though they have had bad credit but they must be taking care of improving the credit with paying older dues and car payments.
You should understand this situation and look out for tenants who are genuinely interested in the property and can pay the quoted rent per week mentioned in the lease agreement. It's fine if they have had bad credit history but until they are able to pay the rental that should not be a big problem to the property owner.
Will they buy your house?
You can even ask the tenants whether they might be interested in buying the property few years down the line. You can lease out the property and rip the rental each week unless the tenant eventually looks at buying the house. But you can add the option for the tenant to buy the property whenever they want. So, in case they wish to invest in your property then you can sell it for a nice profit in few years time.
The Gut Check
One of the most important things to keep in mind is gut feeling. You may have feeling that a certain person might be the most suited candidate for the rental property. They might work hard to pay of their rental each week but do ask yourself whether you can risk your time and effort in working with each applicant for rental. An old fashioned gut checking can help you decide between two equally good candidates.
Being a landlord can be extra burden and responsibility but it does bring in extra revenue each week. Its up to you to decide whether you should venture into the real estate property business or not. Even if you decide not to rent your property then you can always sell it and walk away without having to pay any extra money for gain taxes. If you are seriously looking for the rental business then do consult with your real estate agent to find more about the current rates and expense incurred in rental business.
This article is brought to you by LegalHomeForms.com Download over 60 of the most used real estate contract and forms. Find forms like the rental application, or residential lease agreement.
Understanding Property Management Fees
When you own property, you are in a great position to make your wallet fatter. Even though there is a large amount of appeal in owning property, some people need help managing them. Some people wonder if it is a good investment to have someone in control of the financial future by managing their properties. But of course just like most services, there will be some sort of real estate management fees associated with their help.
Depending on you area, you will find there are many different companies that say they will manage your property. You have to make sure the real estate management fees they charge will make it worth you wanting them to manage your property. Many companies have a contract that they want you to sign so they can ensure they get their money.
When checking out what the real estate management fees will be from a company, make sure you are getting a good value from what they are offering. Some of the different services they provide that create a value for you is risk management, financial analysis of your properties, some keep the property maintained, manage the advertising depending on what is on the property and making sure the property is being paid for. If the property you own is a rental property, usually the company will charge a small percentage of what the total rental charge of the facility is. This is where you need to determine if that is too much of a loss to part with or go along with. What kind of real estate management fees do you think to be associated with this value?
Before we go into the different types of services offered by these companies, some companies offer a formula in which the fee can be known. Usually they base the fee on how many and how big of property they have to manage. They also look at what they have to provide to you in terms of services and the formula basics might change.
In every property there is some fair amount of risk involved. You can never be too sure in this type of economy whether or not the property you own will turn in to the cash flow you were expecting. Whether it is residential, commercial or just property to raise livestock, you can not be sure in the market today if you are risking loosing money. That is where the management company comes in. They can help you create a report that accesses the amount of risk involved. After the risk is accessed the either encourage or discourage you from proceeding. The final decision is up to you.
For the people that own residential properties, the company managing your property would do most of the building work, keeping the property clean, taking care of any issues that the clients might have and advertising to fill any vacancies. The real estate management fees associated with this service might be worth it if you do not wish to spend your own time dealing with the every day property life.
There will be a fee associated with almost every service that is out there these days. There is almost nothing that you can get for free. The key is understanding what you are getting for the fee and see whether or not you are truly benefiting enough to warrant the cost. If you are not making enough money to support the fee, then it might not be a good business decision to have them run your property.
Source : Quality Assurance
Routine Property Maintenance Guide
Keeping your property well maintained involves several tasks carried out routinely. Property maintenance includes everything from daily cleaning to upkeep on the air conditioning, electrical and plumbing. Maintenance may include redesign and refurbishing or building new structures. As manager of an investment, you can do some of the tasks yourself or hire a maintenance crew to do it.
Property maintenance is important in old and new buildings. Each year the manager should do a routine health check to help prevent future costly repairs. A neglected building leads to major problems. For example a gutter that has remained blocked leads to water getting into the building. The gutters are essential for carrying rainwater away from your building and must remain clear to do their job.
The roof is probably the most important part of your structure. A leaky roof can lead to all kinds of major problems, inside and out. Roof checks should be done regularly. Hard to reach roofs might need a professional contractor to inspect them for signs of disrepair. Shingles or tiles slip and need to be replaced quickly, as well as any holes. Animals and water both get in through these holes causing interior damage. Have the chimney checked for vulnerable areas and get the flues cleaned each fall before use.
Inspect your building walls routinely. Cracks in the stone walls need to be filled with mortar while siding should be replaced if damaged. The wood around doors and windows need to be checked for signs of decay. Repair and paint where needed. If you have mold and dirt buildup on your exterior walls, wood deck or concrete patio, use a power washer to clean. Routine cleaning of the exterior will go a long way in keeping property maintenance to a minimum.
Other areas that should be included in your routine care of a property include electrical, carpentry, cleaning, painting, tiling and the garden or patio area.
The electrical maintenance might include rewiring for added appliances, upgrading outdated wiring or installing the wiring for new lighting or electrical needs. The electrician should inspect existing wiring for breaks and to make sure that the electrical box and wires meet current codes.
Carpentry maintenance includes building new structures such as additional rooms or remodeling existing areas. The carpenter reviews the plans for the remodel, establishes a time frame for the work and estimates the material needed. They are experts in property maintenance . Carpenters can be hired to build anything from a dog house to building a room addition.
Painting the interior is the simplest property maintenance project but gives instant results. You can transform your property with minimal work and time with paint. The surface being painted should be prepared properly for good results. Almost any surface can be painted, just follow a few rules. Check and replace loose caulk around window and door frames. Use a wire brush to clean surfaces of dirt and old paint that has become loose. Fill any small cracks with caulk. Allow the caulk to dry thoroughly before painting. Not preparing the surfaces properly can lead to blistering and peeling paint.
Whether you do the maintenance yourself or hire someone to do it for you, having the correct equipment beginning any type of maintenance is necessary. Protective gloves and eyewear are necessary. If working with a ladder having another person to help is a good safety precaution.
Routine property maintenance helps keep your building and its surroundings in top shape. Finding and quickly repairing small problems before they lead to costly repairs will save the owner time and money in the long term.
Should you Become a Landlord
Benefits from real estate also sometimes take extra steps and responsibilities. If you are thinking of becoming involved in real estate, then you may also be looking at the job title of landlord. While this is a good way to make an investment and a living, you will want to consider several things before designating yourself to this job.
Before beginning the process of becoming a landlord, you will want to make sure that you can profit from it. This means finding the right place for potential tenants and having the ability to market and find the right demographics that you may want in your home. Having the ability to reach out to the right people can help you if you are thinking about renting property to others.
If you decide to become a landlord, you will want to make sure that you are made for it. You will want to ask yourself whether you are fit to deal with different personalities from tenants. Paying rent late, taking advantage of the property, and other problems will often arise. This causes maintenance and upkeep of different rental areas to be part of the job. You will want to make sure that you can handle different situations effectively and make sure that you can find the right way to take care of the different needs for everyone in the area.
Of course, becoming a landlord could be beneficial for you. If you have the right people in the right place, you won't have to do much work and will only have to collect the rent. Most landlords, if they have a larger amount of property, will have hired help such as property managers in order to handle extra problems that may arise. If you are able to invest and grow enough this way, then you will have the ability to take a year long vacation while the rent is collected.
If you are one that wants to work with renting property and collecting extra profit from it, then becoming a landlord is a good option for you to consider. By finding someone else to live on your property, you will have the ability to collect rent instead of pay it.
Labels: Become a Landlord
You are a great investor of your money. You are not able to make bad decisions and you always profit from your investment properties. Whether it is residential properties or commercial that you own, you they grow exponentially. Your super power is being the best real estate management team the world has ever seen!
One of the reasons that some people need to choose to have a management group take care of their investments is because they should not want just anyone looking over your potential gold mind of properties. Most people with some dollars to save and spend look for the best real estate management team.
Saying you are the best in what you do is a pretty bold thing to say, but if a client or a surveyed website says you are the best, that is an accomplishment. What you need to do is get your name out there with your clients and they can boost your ratings within property investment market. Reputation is everything!
What kinds of things or services make a company the best real estate management team available? There are many reasons you can call a company the best in this field. It could be the professional way they conduct business to the amount of profit they get for their clients.
Being professional with the clients you deal with day in and day out is very important. When a client calls you and either has an issue with their property, wants information on your services, or is ecstatic about some profit they received on a property, you have to be professional. Some people are very, how we say, direct when it comes to their properties. They might fly off the handle and possibly yell at you if they do not like what they see or hear. It is up to you to as the best real estate management corporation in your area or nation, to present yourself in a way that more clients would want to take you on.
You could have such services as risk management, in which you assess the potential risk of each property the customer might invest in. Will it increase in value over the next couple of years or will it stay in its current state. You have to learn to be honest because if you tell a client what they want to hear, when it comes to investing, they may blame you later or even legally fault you for reporting incorrect findings.
As the best real estate management team, you could be there to help your clients find financing in order to purchase the properties they believe will work for you and your lifestyle. Finding the right bank or institution could be crucial to future funding.
Some of the best real estate management teams use some sort of software in order to keep track of their clients or employees. They can keep track to see what their employees or agents are doing to grow the overall business. If an agent is not doing enough to benefit the company, they have a tracker to prove that they need to improve or leave the company.
Being the best at what you do is a great accomplishment for you and your team. You should not be ashamed to say something about it or put awards in a place in which your clients can see it. If they can see your accomplishments they will be more likely to use your services to benefit their investments. Everyone wants to be profitable in the way they invest their money, but a company to help you manage your expenses and profits could greatly relieve some pressure off of your shoulders.
Source : Quality Assurance
Self Storage
Real Estate Management Firms – Making Life Easier
Real estate investment can happen for various reasons. You could invest in real estate because you need a house for yourself (that house of your dreams that you so badly want). You could use real estate as a means for supplementing your income either by buying at a lower price and selling at a higher price or by letting it out. Sometimes you might buy a property for the purpose of resale but might want to wait for a few years before you actually sell it. In such a case, again it would make sense to rent out the property and earn some money till you actually decide to sell it off.
Whatever the reason, letting out real estate demands real estate management and real estate management is not an easy job for everyone. In fact, a lot of people find it so much of a hassle that they prefer keeping their property vacant instead of letting it. Real estate management demands time, which you will rarely have. Real estate management is not just about finding tenants and collecting rent from them. Real estate management is also about ensuring that you do all the duties that a landlord/landlady is required to do. Real estate management is about verifying the credentials of the tenants before you actually let out your property to them.
Real estate management is about ensuring that all the paper work is complete and correct i.e. the tenancy agreement etc are properly done. Real estate management also requires you to do repairs as and when required. Real estate management activities also include maintenance, painting, polishing etc of the house when the tenants move out and before the new tenants get in. So, really, real estate management is not that easy a job for someone who is in a full time job. However, there is a solution to this and that is hiring a real estate management firm to do all these activities on your behalf. Yes, this will mean that what you receive as an income by letting your property will be reduced (due to the commission/ fee charged by the real estate management firm).
But that is just a small price for the convenience that a real estate management firm brings to you. However, it’s important that you choose the real estate management firm carefully. There are all kinds of real estate management firms out there (good and bad). You must check the references of the real estate management firm before you actually hire them for the job. A good real estate management firm will not only keep your property occupied at all times but will also ensure that you always receive the rent in time and without any hassle.
Commercial Property Management for Profit
When a person is involved in apartment building investing, there are several ways to increase their profits. Collecting rent from tenants is profitable, but there are many other ways to create a profit from a commercial real estate property.
There are common ways to increase income from your property, such as forced appreciation, increasing rent and creating other ways to raise the profit margin. This may entail adding laundry facilities to bring in extra profit as well as attracting potential tenants to the property.
Decreasing the vacancy rate always brings more profit, and it can often be accomplished easily through advertising. And, if advertising isn't enough, an offer of a special move-in deal is certain to attract potential tenants. Increasing occupancy will of course bring in more profit as the more units that have a tenant, the more profitable rent funds there are coming in.
The commercial property management can decrease verifiable expense flow in several ways. Things as simple as using low wattage light bulbs, using electric timers for lights in common areas and using motion detectors on lights in hallways are all items that will not hamper the tenant in any way, but will save a substantial amount of money. There are also the options of using regulated thermostats and reducing the hot water temperature to increase profits. These options can make the investment more profitable, but should not impact a tenant's life enough to dissuade them from renewing their lease. In some cases, lowering the hot water temperature is actually preferred by tenants who have small children or an elderly person in their rental unit.
There are also ways to increase cash by increasing rents and decreasing expenses using lower cost financing.
These are all simple, low or no cost ways of creating income from your commercial real estate. But, there are many other ways of generating income that are also low or no cost, such as adding soda machines. These are things that while they generate income also bring more advantages to the tenants. Buildings that are tenant friendly and well kept are ones that keep their rental units filled. Those buildings have tenants who feel their apartment is their home, complete with that make their lives easier.
About the Author:
David Jackson is a real estate investor and author who has found a niche in apartment investing. Find out how you can buy apartments while being broke and with no money of your own. You can also register for his newsletter claim a free CD here.
Property Management - Yes or No?
You just bought a small apartment building. Do you hire a good property management company or do you try to manage your rental property yourself? The best answer to that depends on what your goals are and what your skills are.
Your Goals
Do you want to be a landlord or an investor? Of course, the choice isn't that black and white, and you can be both to some extent. However, before you start spending all your time dealing with rent-collecting and fixing broken toilets, consider how that will affect your ability to go out and find more good investment properties. Certainly much of the time spent at your apartment building could be spent on finding more buildings - if you had a manager.
It's worth noting that wealthy investors often spend more time finding the deals than doing the day-to-day things necessary to operate their rental properties. They hire good property management companies, and not just because it frees up their time for more valuable things. It also has to do with the question of skills.
Property Management Skills
It may be tempting to do everything yourself. In fact, this may not be a bad way to start out investing in rental real estate. There is no question that if you do it right, you can reduce your expenses and so generate more cash flow by not hiring a property manager.
In fact, you may need to do the managing yourself in order to have any cash flow. In this case, you may have paid too much or financed the property wrong. Even if you plan to manage a property yourself, you should always buy in a way that the income covers all costs - including management fees if you decide to pay them. Any other way is too risky.
If you are thinking you'll do your own managing, can you do what is necessary? This is an important question. Do you have what it takes to collect from tenants who are late with their rent? Do you know who to call and how to negotiate for cleaning and maintenance? Of course you can learn whatever you need to know, but if you're not willing to learn, you are better off hiring a manager.
Consider too, whether property management will really be as expensive as you think.Sometimes a good property manager will save you money. A company with experience, for example, may have tenants calling all the time looking for apartments. This means they can fill your units quickly, and without the expense of advertising that you would have had if you were on your own.
When there is a vacancy, a good property management company will (hopefully) have a carpet cleaner and housekeeping crew in there within days to get the unit ready to rent. If they get the place re-rented two weeks faster than you would have, that's two week's extra income. Good property management can pay for itself in time and money savings.
Hiring Rental Property Management
Why hire rental property management? Because doing it all yourself is the surest way to make your real estate investment experience a bitter one. You also have more time to find the next deal when there is someone taking care of the details for you. Hire a good property manager, but first ask the following questions.
1. How much is the fee? Fees vary around the country from as low as 4% of gross rents for larger buildings, to as high as 12% for single family homes. Be sure the fee is clearly stated and understood.
2. What other properties do they manage? It is best if they handle rental properties that are similar to yours. It is also helpful to drive by their other properties to see how they are maintained.
3. Who will actually handle your property? It is best if one person handles your building all the time. They should also have some experience. Get their name.
4. What costs extra? Is it extra for showings? Do evictions cost extra (beyond the legal fees)? Any other extras?
5. How is the fee collected and when? Will you be billed, or will it be deducted from your account directly? Monthly? Quarterly?
6. What type of advertising? How do they advertise the units and what does it typically cost you?
7. Cost and time to prepare units? What is the typical cleaning fee on a vacancy, and how long will it normally be before it's rented out again?
8. What needs owner approval? What dollar amount needs your authorization, and is this negotiable?
9. Hours of operation? What are their business hours, and who takes weekend calls?
10. Accounting? What reports do they send? How often? How are accounts set up?
There are probably other questions you'll have as well, based on your particular needs and the particular property. Ask everything up front, and you'll have fewer misunderstandings. With good rental property management, real estate investing is a lot less stressful.
About The Author
Steve Gillman has invested in real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com.
What Do You Look for In a Management Firm?
Valid Brokers License: In may states a brokers license is required to operate a property management company. You can check to with the local dept of real estate to validate it and see if it has ever been revoked or suspended.
Thanks for reading
Howard bell
http://www.yourpropertypath.com
We believe that knowledge should be free and freely shared.
Property Management - The Operation Of Commercial And Residential Real Estate
Property Management exists for the same reasons that management exists in any business; to run it smoothly and effectively to get results. The role between the landlord and the tenant is the most important but due to mounting responsibilities this role can often become to much for a landlord to cope with, which is why extra help is important; this extra help comes in the form of a property manager.
The help of a property management team would mean that duty's such as collecting rent, responding to and addressing maintenance issues and advertising vacancies for landlords as well as performing credit and background checks on tenants would be taken away from landlords. This will allow the landlords to get on with other jobs, making their work a lot easier.
For all of the duty's performed a landlord will pay a percentage of the rent collected every month, this percentage is typically between three and ten. This percentage will pay for duties such as all of the ones named above as well as work such as the construction, development, repair and maintenance on a property.
This provides a face for the landlord. It should also be noted that the real estate market is very competitive, which is why gaining help is important. A property management team allows you to keep your real estate in good condition in order to keep tenants in your real estate and as a way of gaining more.
As a landlord you need a management company that offers a effective, cost effective service throughout the UK. This is because the team can take away daily hassle and let you enjoy your investment.
Many people often argue the point of why not just use a letting agent for your maintenance needs? To put it simply a letting agent is good for finding your next tenant but doesn't help you with on going management needs where as with real estate team at your disposal you will be able to provide the level of care and help that is needed for your tenants needs. You wont have to go out of your way to hire a building contractor when a tenants pipe bursts or their roof leaks as you will have a building contractor team ready to help.
As well as your actually team it is also a good idea to invest in management software. This software aids the help of the team as it allows them to keep a record of aspects such as property details (room sizes, property condition, home furnishings, fire safety, etc). It also allows you to store images of all rooms and aspects of the property as well as utility details i.e. gas and electricity.
You can also set up a payment schedule, which allows you to track the payments of rent and any other services that you provide. It can also be used to store tenant's details and the lease details.
If you are a landlord it is highly advised that you enlist the help of a property management team to help you look after your property and to provide a help service to your tenants.
Helen is the web master of ARCH Property Management, specialists in all aspects of Property Management.
Please feel free to republish this article provided a working hyperlink remains to our site
Streamline Your Property Management Tasks
A landlord with a strong work ethic and loads of patience also needs to be organized. The landlord is responsible for enormous amounts of details to keep track of on a daily basis.
Having a good real estate management software program helps them stay organized. Every landlord needs these organizational systems to keep records secure and update and be able to retrieve information easily.
Suppose the landlord needs to evict a tenant. The trouble is he cannot find the lease copy for the tenant. The landlord does not know the exact terms of the lease. Instead of searching through overflowing files, the landlord finds the lease agreement quickly on his real estate management software.
It is recommended to keep your records organized easily with some kind of management software as well as having a back up paper filing system. Managers must choose software that is suited for their needs.
An important part of any system is the landlord system. The landlord is able to keep documents organized by tenant, building and owner. This way if you need all documents related to a certain tenant, you type in the name of the tenant to pull up all related documents.
There are many other reasons to use some type of management software in your property investments. Real estate management software is easy to use, makes managing any type of real estate transaction centralized and records are easily updated. Many systems are web based and accessible any where with real time information. Some of the tasks gathered include lease terms and agreements, daily operation costs and tasks and the accounting of day-to-day operations.
Residents can submit applications, request repairs and pay their rent online using the property web site. Since it is entered in real time, the landlord has instant, up to date information at his fingers.
A real estate management software program can help organize information and create property portfolios quickly. Property images are uploaded into the system for the owners and can handle the information on any size property. The software allows the landlord to quickly gather information, analyze it and print a report.
Many systems are cost and time effective for the manager and the resident. A personalized website can be created for each individual property using management software. Websites allow both prospective and existing residents to visit the site and view pictures, pay rents and perform other tasks.
Using the software the landlord can manage vacancies. Prospective tenants access the details about the property, find the terms and payment conditions and apply online. The lease can be managed and stored online to be accessed by the landlord or property owner.
The tenant is able to pay their rent online and rent receipts can be printed. The software is set up to automatically charge late fees after a certain date. In addition, lease agreements, the lease duration and rental information are organized through the software.
With the software, repair orders, contractors bids and work completed can be tracked and printed quickly. The manager is able to keep up to date maintenance records including the contractors hired for the work and when the work was performed. The software, when used simultaneously with the property website, allows tenants to send maintenance requests to the manager. Expenses related to property maintenance are easily retrieved and organized using the system.
Real estate management software is a great asset and time saver to property investors and their managers. The software is easy to use and effective in keeping a secure record of all types of information flowing through the daily routine of the property.
The original article is located at Streamline Your Property Management Tasks
To read more about related topics visit our Mystery Shopping Blog
Property Management - The Operation Of Commercial And Residential Real Estate
Property Management exists for the same reasons that management exists in any business; to run it smoothly and effectively to get results. The role between the landlord and the tenant is the most important but due to mounting responsibilities this role can often become to much for a landlord to cope with, which is why extra help is important; this extra help comes in the form of a property manager.
The help of a property management team would mean that duty's such as collecting rent, responding to and addressing maintenance issues and advertising vacancies for landlords as well as performing credit and background checks on tenants would be taken away from landlords. This will allow the landlords to get on with other jobs, making their work a lot easier.
For all of the duty's performed a landlord will pay a percentage of the rent collected every month, this percentage is typically between three and ten. This percentage will pay for duties such as all of the ones named above as well as work such as the construction, development, repair and maintenance on a property.
This provides a face for the landlord. It should also be noted that the real estate market is very competitive, which is why gaining help is important. A property management team allows you to keep your real estate in good condition in order to keep tenants in your real estate and as a way of gaining more.
As a landlord you need a management company that offers a effective, cost effective service throughout the UK. This is because the team can take away daily hassle and let you enjoy your investment.
Many people often argue the point of why not just use a letting agent for your maintenance needs? To put it simply a letting agent is good for finding your next tenant but doesn't help you with on going management needs where as with real estate team at your disposal you will be able to provide the level of care and help that is needed for your tenants needs. You wont have to go out of your way to hire a building contractor when a tenants pipe bursts or their roof leaks as you will have a building contractor team ready to help.
As well as your actually team it is also a good idea to invest in management software. This software aids the help of the team as it allows them to keep a record of aspects such as property details (room sizes, property condition, home furnishings, fire safety, etc). It also allows you to store images of all rooms and aspects of the property as well as utility details i.e. gas and electricity.
You can also set up a payment schedule, which allows you to track the payments of rent and any other services that you provide. It can also be used to store tenant's details and the lease details.
If you are a landlord it is highly advised that you enlist the help of a property management team to help you look after your property and to provide a help service to your tenants.
Helen is the web master of ARCH Property Management, specialists in all aspects of Property Management.
Please feel free to republish this article provided a working hyperlink remains to our site
Rental Property Management - Ten Questions
Why hire rental property management? Because doing it all yourself is the surest way to make your real estate investment experience a bitter one. You also have more time to find the next deal when there is someone taking care of the details for you. Hire a good property manager, but first ask the following questions.
1. How much is the fee? Fees vary around the country from as low as 4% of gross rents for larger buildings, to as high as 12% for single family homes. Be sure the fee is clearly stated and understood.
2. What other properties do they manage? It is best if they handle rental properties that are similar to yours. It is also helpful to drive by their other properties to see how they are maintained.
3. Who will actually handle your property? It is best if one person handles your building all the time. They should also have some experience. Get their name.
4. What costs extra? Is it extra for showings? Do evictions cost extra (beyond the legal fees)? Any other extras?
5. How is the fee collected and when? Will you be billed, or will it be deducted from your account directly? Monthly? Quarterly?
6. What type of advertising? How do they advertise the units and what does it typically cost you?
7. Cost and time to prepare units? What is the typical cleaning fee on a vacancy, and how long will it normally be before it's rented out again?
8. What needs owner approval? What dollar amount needs your authorization, and is this negotiable?
9. Hours of operation? What are their business hours, and who takes weekend calls?
10. Accounting? What reports do they send? How often? How are accounts set up?
There are probably other questions you'll have as well, based on your particular needs and the particular property. Ask everything up front, and you'll have fewer misunderstandings. With good rental property management, real estate investing is a lot less stressful.
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
All Properties Need Maintenance
Any business can benefit from property management, not just landlords and rental property. Property management guarantees a proper environment to live, do business, or whatever the purpose of the property will be. Each property has to take into consideration the different needs of the people that will be passing through or using the space. Typically there should be three categories that should be taken into consideration when dealing with property management: atmosphere, maintenance, and appearance. This segment will explore the property management of a gym.
Gyms should provide the same professional atmosphere that any other business would provide. Given the nature and purpose of a gym, they should create different images, healthy, clean, friendly, and accessible. Given those images, the gym interior should try to recreate feelings associated with those images. When done properly, a person entering a gym should get the impression that it is warm, happy, and inviting. Employees should be dressed professionally and be neat and clean (or at least have a uniform with no visible holes or stains). Employees typically will work closely with the gym members so their appearance is an important factor.
Maintenance is the next priority. Maintenance involves making sure that all equipment is working properly, and that no repairs are needed to the structure. Depending on the gym, there can be a lot of equipment that needs to be maintained. For a gym, start out by keeping the exercise equipment in tiptop shape. These are the bread and butter for the gym so all pads need to be replaced after showing significant wear. All belts, pulleys, and chains should not show any heavy signs of wear. Imagine if one snapped while a member was using the machine. Water fountains should always be functioning, or there should be alternative methods of obtaining water in case the fountains break down. Everybody at the gym is going to be sweating so keeping up hydration is an important health factor. Some other gym attractions need to be maintained as well. Some gyms have hot boxes or saunas. These should have regular maintenance, as they can be a fire hazard. All hot tubs should have properly function jets and temperature controls. There is nothing worse than having tight muscles from working out and not being able to relax them away in a hot and bubbly hot tub. Regular property maintenance should be considered as well. This process can get extensive, especially if it has been a while since the last time repairs were made. Walls should be checked to make sure all cracks and holes have been patched and painted. Any missing or broken ceiling tiles should be replaced. All leaks should be fixed. Special care should be taken with the locker room and shower areas. Many different chemicals are used to keep these areas sanitary. Some of those chemicals can cause metal surfaces to rust (i.e. sprinkler systems and faucets).
First impressions are important so the general appearance of the property counts for a lot in the eyes of. The first thing people see will be the outside. Trash should be picked up outside and all signage on windows should be attention getting and professional. Upon entering the gym another demand is a clean interior. This means that all trash needs to be picked up. All carpet and floors should be swept and all exercise equipment should be dusted. Being fully stocked also gives the impression that anything they customer wants is available. Empty product spots tell the customer that what they want might not be in stock and they may go elsewhere. So sports drinks, water, and protein bard should be always stocked. All windows and mirrors should be free of fingerprints and dirt. With all these considerations for property management, any gym should be successful or at least look successful.
The original article is located at All Properties Need Maintenance
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Contracting With a Property Manager
If you are planning on using a property manager or management firm to take care of your real estate, you will need to make it legal - with a contract.
Most states require that property managers be registered real estate brokers, so that they can legally accept rent and take care of other monetary matters. Other states do not require this - but in all states there must be some sort of registration for property managers. Additionally, a contract for property management makes sure that the real estate owner is protected in case of any problems with their management company, as well as outlining what the property management company is and isn't responsible for.
It is pretty easy to find forms that can be used for a contract online, or you can choose to hire a lawyer that is experienced in real estate law to handle the paperwork. Whichever way you choose to do it, a signature from you and your manager will be required to make sure that the document is legal and binding. A lawyer can also help you decide which clauses and specific statements to put in your document, making sure that you have the best coverage legally. If you choose to use a premade contract or write your own, it's best to have a legal expert look it over before signing.
Most contracts detail that the property manager is responsible for collecting the rent from all of the tenants and forwarding that rent on to the property owner. Contracts may also state that the property manager is responsible for making decisions about the upkeep of the property, as well as taking care of any needed repairs or routine maintenance of the property and its grounds.
Additional clauses may provide for the amount of money or fees that the property manager or management company will be paid by the property or real estate owner. They can also state whether or not the management company will be responsible for eviction and other items pertaining to the legal issues surrounding tenants and rental property. These clauses will all be different depending on whether the type of property being managed is commercial or residential.
Having a document to reference when you need to is an important part of any business agreement. Finding the right contract for property manager can make sure that both parties know the exact things that are expected of them.
Aazdak Alisimo writes about property management companies for PropertyManagementServiceCompanies.comHow to Avoid Being Sued When You Own Rental Real Estate
The decision on whether to manage your own rental property or to outsource it to a professional residential property management company is a personal decision that only you can make. Two important aspects of owning and managing property are knowing how to properly screen tenants and developing adequate knowledge of property law. Let's look at both of these very important issues.
Tenant Screening - When a potential tenant submits an application for housing with you, you have to make a determination as to whether or not you want to rent to them. A hundred years ago you might have been able to reach a decision based upon a gut instinct, but you can't rely on instincts or hunches if you want to maximize your chances of a positive experience with a tenant you don't know.
As an individual real estate investor, you have limited information at your fingertips. While you can call past and present employers, landlords, as well as other references, that doesn't necessarily paint an accurate picture of what kind of tenant you'll get if you opt to rent to them.
Because information is power, you will want to obtain as much high-quality, detailed information about potential renters as you can to reduce your potential liability in the event that something unexpected happens. For instance, what do you do if it turns out that your "good renter" is a pedophile or a rapist? Can you afford a lawsuit from another one of your tenants if something happens and you get sued?
There is a glut of information available in a variety of computer databases, but if you don't know where to look, it's useless. In addition, as an individual you might have difficulty running criminal background checks, credit checks, and other public notice checks. A professional residential property management firm can complete these checks very quickly and easily, and is well-versed in the best ways to go about gathering this information.
Property Law - You're not a lawyer, but you almost have to be in order to understand the myriad laws, rules, and regulations that pertain to how you manage your property. Federal, state and local laws vary and change regularly. Just a few of the laws that affect you and your property include the Americans with Disabilities Act and Federal Fair Housing regulations. Ignorance is no excuse in the eyes of the law, so if you run afoul of just one of these laws, you open yourself up to being sued by a tenant, or being fined by a governmental regulatory agency - or both.
Do you know if your property has to have a wheelchair ramp or safety rails? What about the rules pertaining to wiring? There are hundreds of laws, rules, and regulations that directly apply to you and you're expected to be in compliance with all of them at all times.
You can learn these various rules, but they change so frequently that it can be a full-time job just staying on top of all the changes. If you aren't in compliance, there's always an attorney willing to file a lawsuit seeking money from you for having the temerity to violate the law.
If you aren't able or willing to be a "hands on" landlord, a residential property management company can provide the knowledge and expertise to decipher and sort out all of these rules and regulations and keep you in regulatory compliance.
Rates are reasonable and you will rest easier knowing that the heavy lifting is being performed by knowledgeable professionals who have a vested interest in seeing to it that you're in full compliance with all of the rules and regulations.
Copyright (c) 2008 Michel Lautensack
Mike Lautensack is the owner of full service Residential Property Management company based in and around Philadelphia, PA. He advises real estate investors how to build wealth and financial security through hassle-free ownership of investment real estate with their "No-Hassle" Property Management Program. This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation while it GUARANTEES you will never receive a late night emergency call, deal with a lengthy eviction proceeding or ever have to interact with an irate tenant.
Looking After Your Home or Building
When it comes to looking after a building, prevention is definitely better than the cure. Buildings, as we all know, are expensive to buy and if you don't look after them properly, you're letting yourself in for a lot of trouble. These are some maintenance tips to help you save money in the long run.
Firstly, you need to make sure that the structure of your building is sound. That means getting a survey done before you even consider investing any money in it. So many people fail to do this and only realise they have a problem when it's too late. A survey is relatively inexpensive compared to being stuck with a lot of work.
There are things you can do to make your building more cost-effective. These include installing double-glazing and adding extra insulation. A building should be kept warm in winter so the pipes don't freeze, and to guard against things like damp. Making sure your building is well-insulated will save on your fuel bill too.
If you have an older property you should think about carrying out a survey yourself every year. Check the roof and look for cracks and other signs of disrepair. Ensure that any external woodwork isn't falling to pieces. Most problems of this sort can be solved easily if they're caught early, so a yearly check-up is definitely a good move.
Certain areas are more prone to damage than others. One such area is the drains; check these often for blockages. Rising water can cause all sorts of damage and can sometimes be a health hazard. Clean them out regularly and you'll keep them in good working order.
If you get a lot of traffic in your building you might want to think about investing in some heavy-duty wall protection. This can protect walls, corners and doors from damage and is especially useful in public buildings. You'll find that you can match your decor and get a durable look that lasts for years.
Paintwork, although it looks good, needs a new coat every few years. For large areas think about investing in panelling instead that doesn't need the same amount of attention. You don't have to go for plastic; natural wood panels can look great and last for years if they're properly treated before installation.
Older materials like cast iron can be replaced in some cases by modern alternatives that are just as durable. Check with your planning office to find out what you can do in your area, but don't think you're constrained to stick to what's already there. If your guttering needs replacing, look for a modern material that looks just as good but comes at a cheaper price.
Giving your home or building regular attention allows you to catch minor problems before they become major ones. A bit of work here and there saves money in the long term and ensures that there are no nasty surprises round the corner. Prevention in this case is the best option; don't wait till you need a cure.
Sylvia Kittens lives in Harrogate, England
Property Preparation for the Rental Market
When a couple get together and they own a property each they have to make a decision, Which property do we live in and which one do we rent out.
Obviously the one you live in is the one you are both happy to be together in, but sometimes the one you rent out is the one that has the most sort after area and is easily accessible to local shops or businesses.
Rental properties have to comply with certain issues that when living in the property yourself are never an issue.
Kitchen:
• In the kitchen there has to be a tiled splash back area to all work surfaces
• There should be no electric sockets over lapping the cooking area
• There should be at least 300 mm of work surface either side of the cooker or hob
• Tenants expect the kitchen to be modern and clean
Bathroom:
• Try and supply a shower over the bath either electric or mixer from the taps
• Tenants expect the bathroom suite to be clean and tidy maybe change the toilet seat before viewings start.
• If tiles are dated think about removal and replacement with large tiles to give the room a larger appearance.
Redecoration:
• Redecorate throughout in a neutral colour, this will encourage the tenant to keep it tidy through there tenancy
Lighting:
• Replace pendant fitting with shades for spotlights, this gives a better illusion of height to a room and avoids dust gathering on the lamp shades
Flooring:
• Replace flooring in hallways to either vinyl with a fitted doormat or dark laminate. This has a longer tenancy life than carpet and the tenant will be able to keep it cleaner also
• If the lounge flooring is in need of changing then I would recommend replacing with dark coloured laminate
• Wet areas kitchen and bathroom and w/c make sure the flooring is vinyl. However tidy a tenant is there are always spillages to these areas.
Window dressings
• Even if the window dressings you have are of good quality, if they are coloured or have a personal pattern, which matches your duvet set, this will be off putting to a tenant. Remove and use in your own property if you want, but replace with stainless steel poles and ring top curtains. I suggest these types of curtains because there is no resistance when pulling the curtains too, unlike normal plastic tracks with the drawstring top curtains.
You might be thinking, 'I can't do all that' well if you approach any major letting agent in your area, they should be able to help put you in contact with a reliable maintenance business.
In Peterborough one such letting agent Belvoir Lettings, has a relationship with Westone Housing Services. Westone Housing Services carries out all aspects of property maintenance and can get your property ready for the rental market in a very short space of time.
Liz Lucking, owner of Westone Housing Services said 'even if Belvoir start marketing the property before work begins as soon as the potential tenants see work start they usually apply
We pride ourselves in transforming properties either for the rental market or for homeowners.
We keep a property refurbishment portfolio on our website of all the makeovers we have carried out, so that new clients can see the standard of work we achieve.'
Liz Lucking is the owner of Westone Housing Services and specialises in supporting investment landlords with property maintenance issues. Her website is http://www.westonehousing.co.uk
Saying Goodbye to Your Property Manager
There are a few ways to say goodbye to your property manager. One way is to say it in a different language: adios, au revoir, wiedersehen, ciao. Another way is to end the lease and properly check out of the rental property or apartment rental. But if you rent enough apartment rentals during your lifetime, you at one time or other will want to end a lease early. It could be for many reasons. Job relocation, money issues, marriage, and home buying are all reason for wanting to end a lease early. Usually, a property manager does not have a problem with an early goodbye. They have beef when it is not forewarned and unexpected. So if you ever plan on getting out of an apartment rental lease before the time is up, consider the following to get on the good side of the property manager.
If you are planning on leaving an apartment rental early, before you even sign the lease try to negotiate a lease term with the property manager. This way the property manager will know your intensions and an agreement will be in writing when you want to leave. The property manager can also take steps to prepare your apartment for future rental.
Regardless of you initial intentions to fulfill the terms of the lease, unexpected events may cause you to seek early lease termination. Anxiety is not necessary. This happens all the time. Usually, a property manager will not have a problem with ending a lease early. The least you can do to show your thanks is to try to find your replacement. But of course the person must be acceptable to the property manager.
Hopefully you do not have a property manager who is a stickler to leases. A property manager is under no obligation to end your lease early. This does not mean give up. Try to negotiate a new lease. This type of property manager only cares about is liability. As long as your name is on the lease you are liable for any damages that may happen to the apartment rental. If you can give him a reasonable move out date, it will give him time to find a new tenant. Some property managers will try to keep your security deposit. But if you have been a good tenant and maintained a good relationship with the property manager, you should not have a problem getting the full deposit returned.
So you tried everything and your property manager still will not terminate your lease early, what is next? Well you are still legally responsible for all remaining apartment rental payments. You can try subleasing your apartment rental. But you are still legally responsible for damages.
Perhaps you fulfilled your lease, what is next? The property manager will try to get you to sign another lease. Unfortunately, transitions from one apartment rental to another are not always smooth. But if you are planning to leave the apartment rental shortly after the lease is up sign a month to month lease. All this requires is a written 30 days notice before you are planning on moving out to the property manager about your intentions. He will already know your intentions when you sign the month to month lease, but the 30 days will give the property manager time to find a new tenant. Month to month leases are usually not granted until you have completed a one year lease.
The original article is located at Saying Goodbye to Your Property Manager Please also visit our Car Storage Search Engine.
Starting a Real Home Business
Starting a Real Home Business is something that many people yearn to do, yet many people never follow through with. Why is this? Perhaps it is that you do not have the time, or you are just too confused on how to go about it. Let us solve that problem today and get you ready to start your home business today so that you may begin realizing your dreams of self-sufficiency without the horrid daily commute.
Internet Marketing is one of the most powerful ways to generate an income for your home based business. The tools for internet marketing are simple. You only need a domain with web hosting, a file transfer protocol program (that will allow you to transfer files from your computer to your website), and it is that simple. The only expenses for this business (besides you standard computer and internet costs) are the cost of the domain and hosting, which are fairly manageable even for people that do not have a huge amount of start-up capital. A web site does not require a professional these days, so it will be easy for you to set up. Using internet marketing, you get your business name out there on the web, and you generate customers.
The thing about it is every small business needs help with their internet marketing strategies. This is where you and your home business come in. You can make your real home business by offering internet marketing services to other small business like yours trying to get a start.
How on earth do you manage this? It is simple. In your internet marketing campaign for your own business, you make sure that your website advertises the services you offer targeted to other small businesses. This way, clients can hear about you through your own marketing. You also can generate clients by traveling to local small businesses, and talking to them about the services you offer and how those services will help the business to generate more clients of their own, and in turn, more sales. However, you cannot expect every business owner to come running to you for information, with his or her wallet in hand, so you need to prepare yourself for this and be ready to make sure you have definitely gotten your foot in the door. You do this by approaching your leads in a non-confrontational, non-sales lead. You want to spark their curiosity and make them come to you for more.
As you can see, starting a home business in internet marketing is not as difficult as it sounds. All it takes is a little time, hard work, and dedication. You will soon be on your way to success.
About the Article Author
Craig Glenn is a professional investor, business owner and SEO expert. Craig is the founder of http://www.testmarketingllc.com You can find more information about starting a real home business by clicking here: http://www.checklistreports.com/offlinegold/offline.html
Increase Profits On Your Apartment Buildings
Management: There are two types of management. You can manage your properties yourself or you can hire a management company. Typically, as a new investor it's best to find property within an hour or so of your home (less is even better) or office so that you can start off managing yourself. This will help you learn what works and what doesn't and when you end up hiring property managers you can properly manage them. If the property has a strong NOI and you can afford to hire a management company (typically they'll charge 10% of your gross collected rents - this will vary from area to area and with size of property), you can set up meetings with them regularly so that you understand the process well. If you own buildings now or are considering buying apartment buildings, you can get some great training at www.-R-E-A-N.com.
Increasing Profits: There are generally only three ways to increase your profits. You can increase your rents, decrease your expenses or you can increase or maintain rents/revenue by keeping your vacancy to about 3%-5%. Anything higher than that means you (or your property manager) may need to sharpen your skills to attract new tenants. If the vacancy rate is lower than that your rents may actually be too low.
Things to consider when dealing with rents:
• Always be somewhat on the aggressive side with respect to rent increases. You want to be in the top 5%-10% of your local rents.
• The best time to increase rents is when you have a unit empty and you need to fill it.
• Another great time to increase rents is at the yearly anniversary. It's almost expected by most tenants. A small increase of about $15-$25 is what I call an annoyance increase. Your tenant may be slightly annoyed but it's not enough to drive them out. That is important because tenant turn over could be expensive for you.
• Increasing your rents, in addition to providing actual cash flow, also increases the value of your property as your NOI (net operating income) improves with each increase assuming stable or decreasing expenses.
Controlling & Decreasing expenses:
• Get 2-3 bids for each job over $500 on your property because most of your budget will be repairs and maintenance.
• The biggest mistake new investors make is avoiding repairs to keep costs down. When you do that you can run into other challenges. Other challenges could include things like: decreasing your property value, making it more difficult for you to rent to new tenants looking in the area, extremely annoyed existing tenants who may leave to a better kept building in the area.
Seven ways you can reduce expenses:
1. Charge your tenant for any repairs or required maintenance that is their fault. Make sure your rental and lease agreements stipulate that.
2. Get three insurance bids each renewal period at least 60 days before renewal time. Don't assume insurance rates are the same for all agencies -you will be surprised.
3. Install motion lighting in common areas and incandescent lighting in the halls.
4. Install water saving shower heads and faucets in your units.
5. Put all heat on a controlled thermostat unless the tenant is responsible for their own.
6. Put all common lighting on a timer.
7. Give one of your tenants some incentive to watch the place for you and to pick up for you and handle small things that pop up. I've found when one tenant is designated as the on site helper (or watch dog!) they take pride in that and treat it like it's their home. Clearly, home ownership carries with it a different respect for the property than renters.
Chris Prefontaine is a Internationally recognized real estate coach & trainer. Whether you're a seasoned investor, or new to the industry be sure to check all state guidelines and laws before you invest. You can visit http://www.hugewhy.com and sign up for a FREE weekly e-zine. It's the perfect way to jump-start your week! Sign up today and start receiving the 7-Day Focus on Success, dedicated to success!
Article Source: http://EzineArticlesProperty Management - A Good Investment Or A Waste Of Money?
I was contacted yesterday by a prospective renter for one of my homes. This time the questions were a little different than usual. She wants to rent my home for a week, while she shops for a vacation home of her own. She started to pose all of the questions I have heard time and again about the intricacies of renting out a vacation home when you are not using it. Basically, "How do I rent my home from another state?" The task sounds daunting. You have your rental home, townhouse or condo ready for guests. You have gone through all the steps. Now panic sets in.
What does Property Management mean? What does it entail? Will it cost money? time? Can I handle it? Where will I find someone to manage my property? These are all questions that now have simple answers for me since I have traversed the subject, but I remember my concerns and apprehension in the beginning. "Property Management" is just a scary term for maintaining you rental property and renters.
If you are going to manage your rental property yourself, it is quite easy. It just requires a little organization and time, but is saves you money, and we are all about squeezing every penny out of our investments! This means that you will handle any concerns or issues your renters have with the property while they are staying there. This can be as simple as their arrival and departure, to problems like how do I change the thermostat? What you are really doing is just handling the little annoying calls about simple things. You MUST handle every question and inquiry with a friendly and accommodating solution or advice. You MUST be available to run to the property and do things like hit the re-set button on the garbage disposal or flip a breaker for your guests. Remember, this is not their house and renters are usually apprehensive if anything minor goes wrong and they are afraid of breaking things. If something needs a professional repair you can find a contractor at Reliable Remodeler. They offer a FREE service that matches you with licensed & insured contractors in your area. Basically, you are babysitting the house. It sounds bad, but it is like having a child, you do not need a masters in Engineering, just a little patience and a friendly smile. If you can handle this, you are saving 6%-12% of your rental income. A dollar saved is a dollar earned!
If you do not live close to your rental property or do not have the patience or time for this, then a Property Management Company is the way to go. They will charge anywhere from 6%-12%. They will be available for your renters to Check-in and Check-out, they will handle any concerns your renters have during their stay. They will be the one getting the phone calls. If you live out of state, the Property Management Company will also make sure your lawn service, and pool services are showing up on a weekly basis. They will notify you of any problems with the home that may need repair and coordinate the repairs. If you are out of state, Property Management Companies offer an invaluable service. http://www.fastrenting.com
The Importance of Property Management
The term property management describes a liaison between the landlord and the tenant. There are many duties that are included in the property management role such as accepting rent, responding to and addressing maintenance issues, advertising vacancies for landlords, and doing credit and background checks on tenants.
Landlords employ a property management company to provide services like the ones named above and pay them a percentage of the rent that is collected each month, this percentage is usually around the 3-10% mark.
A property management company will mainly be dealing with the property maintenance of a landlord's property. Regular property maintenance will make the property safer and will actually save you money in the long run as it will extent the life of your property. All property will require maintenance and in the case of rented property this duty will fall on the shoulder of the property management team.
Depending on the age of a property you may find more problems need to be dealt with in one property than in another. This is why it is highly important that before tenants move into a property it is checked so that any problems that are found can be sorted out in a hope to reduce the amount of problems that will occur once the property has been rented out.
There are many different forms of property maintenance that will need to be taken care of when it comes to property that is being rented out. This maintenance can range from being major problems through to minor jobs such as interior painting, plastering, carpentry skills and gardening projects.
Some of the more major problems that will need to be taken care of in the sense of maintaining a property are building repairs. The term building repairs is a broad term that covers a range of services including interior and exterior repairs such as; windows, brickwork, damp course treatments, timber wet or dry rot in which any rotten timbers would be replaced and the cause of the problem (e.g. poor ventilation, leaking roof) corrected, electrical replacement, floorboards being replaced or property renovation.
Another highly importance aspect of maintenance as part of property management is ensuring that the electrical installation of a property is safe and doing the job that it should be. Electrical installation covers a range of tasks ranging from simple work such as changing a light switch through to more complex work such as a complete house re-wiring.
Property management not only refers to the looking after of the interior of a property, it also concentrates on the taking care of the exterior of the property as well. One of the biggest examples of this is maintaining the roof of a property. Out of all the exterior problems that occur with a property it has been seen that roofing is one of the aspects that tenants request to be sorted out the most; mainly the fixing of leaks. This maintenance work should be carried out by the property management team.
Helen is the copywriter for ARCH Property Management, specialists in all forms of Property Management. Please feel free to republish this article provided a working hyperlink remains to our site
Maximizing The Rental Income From Your Rental Properties
As a rental property owner, I am always looking for ways to maximize the rental income and keep my units marketable without having to do any major renovations. I am always keeping my eye out for potential properties that I can buy, and easily rent out that will cover the mortgage and a little more. That being said, one of the biggest mistakes that I see other landlords and rental property owners make is that they are reluctant to or just flat out won't put any money into their properties because they don't think they will see a return for that investment. When I tell some of my counterparts that I put new kitchens and bathrooms into all of my rental units they think I am nuts. To quote one of my friends who has some properties, "Why would you spend $4,000 on an apartment that is just going to get destroyed by the next people that rent it?". To answer his question, I thought I would write this article.
First, let's think about the mathematics behind it. Granted each market or city is going to have a different result, but for where I live in the Philadelphia area this holds true. By doing a little research and finding comparable apartments in your market, you can find out what the magic number is. What are the three features that are going to stick out about any apartment? The condition of the rugs, the bathrooms, and the kitchens. If any of these items look worn or beat up, it is going to be harder to rent and you won't be able to get as much for it... that is just a fact of life. So let's say you spend $3,000 to upgrade the kitchen and bathroom(s). Yes, it is possible to spend that little on upgrades and I will show you how later on. Assuming the rest of your unit/building is in good condition, that $3,000 investment can produce an extra $200 a month in rent for me per unit. At $200 a month, you made your investment back in just over a year and you are now making more money per unit. Think about it. If a prospective renter is looking at two apartments: one with a dated kitchen and one with a modern kitchen and bathroom, which one is he/she going to choose? Not only that, but a nicer apartment is going to command a higher rent which in turn brings in a higher income renter who is less likely to abuse and destroy the apartment.
For some of you, I am sure that $3,000 to renovate a kitchen and bathroom(s) probably made you chuckle. If you are still shopping at the big box stores for your supplies, then you have a reason to laugh. To update both the kitchen and the bathroom in an apartment using their cabinets could easily cost you double if not triple. After doing a lot of research, I found a source for cabinets that saves me at least 30-40% per apartment. I started buying my cabinets on-line. If you do a search for RTA Kitchen Cabinets, you will find my secret. Not only are they cheaper, but they are also made of stronger materials and easier to assemble and install. By buying cabinets on-line, direct from the importer/manufacturer you can get them much cheaper because they don't have the high overhead cost of a retail store. I have been using them for years now in my apartments, and you wouldn't be able to tell the difference if you put them side-by-side with store bought or store ordered cabinets. The biggest benefit is that you don't have to wait 6-7 weeks for cabinets like you do if you go to Home Depot or Lowes. These are delivered straight to your office or property in around 2 weeks.
So the next time you are trying to figure out why you empty units, or the guy across the street is renting his units for hundreds more, take a look at your kitchens and bathrooms. I simple upgrade will not only get you a quick return on your investment, but it will also continue to generate more revenue for years to come.
I have been able to save thousands of dollars on discount kitchen cabinets by buying RTA cabinets. If you are interested in finding out my secrets, go to my Kitchen Cabinets article at Hubpages
Less Work Can Mean More Money
One of the most time consuming parts of property management is the coordination of rent collections and increases. What for many people is a nightmare can be made quick and easy by taking a very few simple steps. In order to simplify your property management for greater profitability, focus on the following three items first:
1. Have all rent due on the first day of the month. Some people collect rent based on when during the first month a resident or tenant moved into the space. This is a recipe for disaster. Experienced property managers will tell you to always pro-rate the first month's rent and then collect all future rents on the first of the month. Imagine the headache of trying to coordinate rent collections, statements, and billings if each space required its own timing.
2. Increase rent on all (no exceptions) leases at renewal. When a lease is first signed, it should be understood that rents will go up at the end of the lease period, whether it is six months a year, or whatever term you use. The best way is to have the resident or tenant agree to the rent increase in their original lease. They are excited to get in and will typically think; "Fine, in a year from now you can raise the rent by $50 a month and if we like it here we'll stay, otherwise we'll move."
3. Increase all month-to-month rents at the same time. If you use a firm lease period with the resident having an option of extending on a month to month basis, then schedule all increases at the same time. This way you can sent out a blanket letter to all residents that fit in the category. When a group receive the same letter they are less likely to feel that they have been singled out for the increase and that others are getting a better deal. In addition, it is easier to change your accounting/billing program one time per year for this purpose than multiple times. In addition, if you choose wisely what time of year to implement these increases you will have less people leave due to the additional rent because they will be too busy to look for another place, it will be too hot or too cold, or they will want to be stable through the holidays. The make-up of your residents will tell you what the best time of year will be.
If you evolve your business to take advantage of this type of management process in a systematic manner, you will find that property management is not as difficult or time consuming as you may have once thought. The Middle Class Millionaires course on property management can step you through the process of building an effective system to handle all of your property management operational challenges while accessing all of the income opportunities available. Property Management can be a wonderful and profitable part of the business.
Roger Beattie is a long time real estate broker, investor, owner and operator. He believes in a practical, functional approach to real estate investing without any of the hype or obscene promises. You can learn more about his approach to real estate investment education at http://www.middleclassmillionaires.com
The Importance Of Home Inspection
It is very probable that your real estate agent have included a clause in your offer to purchase that makes a condition upon a home inspection that meats your satisfaction. If there is no such clause, it is most recommended that you insist to include it. Furthermore, it is highly suggested that you add a clause says that if the inspection report suggests additional inspections is required to cover specialized professionals (for example a heating specialist or an electrician), there would be an allowance to conduct them as well. The agreement of purchase is basically very similar to a binding contract and after it has been signed; there may be no room for changes and additions. Before making any signed offer, advice of a reputable real estate lawyer is required to ensure your interests are protected within the contract.
We have to remember that there are some items that cannot be inspected properly. For example, air conditioners cannot be inspected during the winter time and therefore a clause to ensure their satisfactory operation should be added and would allow the buyer the option to test the unit under in the summer.
Generally you may be granted a limited period of time to make all the arrangements for your home inspection. The inspection is usually done right after the parties have agreed on the price, the closing date and other details. At this point, it obvious that you intend to purchase the property and now is your chance to determine the small details about what you are buying by calling the services of a registered Toronto home inspector
Showing the Rental -Tips to Rent Your Property Faster
Staging the rental: First impressions are valuable. If your property doesn't show well, you may not get a second chance. Give them a bright clean look! You will not often get a second chance to show to people you might like to rent to if they have rejected the rental because it was dirty or dark or cluttered. Your only hope might be to lower the price to entice them back.
1. Be sure it's clean
2. Keep the clutter down
3. Consider flowers for some color and scent
4. Put a mirror over the fireplace or in the living room so that people can see themselves in
your property
5. Paint can really brighten a room and dollar for dollar is good
6. Open the drapes, let the light in and creates a more spacious feeling
Vacant property by appointment only:
This is time consuming. If the property is a high rental and you feel that personal attention is necessary or expected then set an appointment with just a few viewers in an evening or weekend day. If not then advertise for and expect a group. Be sure to arrive first and open the blinds to let light in or turn on the heat to warm during colder weather.
1. Be sure to allow at least 15 minutes for each viewer
2. Dress for business
3. Be enthusiastic and positive. People will take cues and mirror your mood
4. Bring applications, a pen and have a table available for filling out applications. Consider having a list of your house rules for everyone, its an easy first screen.
5. Have a list of amenities and any other information you think is a selling point. A list of schools and transportation is very helpful and can be a good selling point.
6. Don't forget to ask for the application - this is sales!
7. Be sure to have a friend call you periodically. It can be dangerous when you are alone with strangers and a call from a friend or colleague can keep you safe.
8. Leave all valuables at home or in your car.
9. Count the number of people in the viewing group and be sure they all leave before you lock up.
Occupied Property by appointment only:
1. Always clear appointments with the current tenant and give at least 24 hours notice in writing
2. Be aware of any cats or dogs in the property
3. Respect the current tenants needs, they still live there
The Rental Application:
Don't discriminate! There are some people who know the law well and look to create nuisance law suits for a quick settlement. This is an area where many discrimination law suits take place.
1. Take all applications
2. Be sure they are signed
3. Continue to show until you have a rental agreement
4. Have a list of all your requirements, such as FICO score or financials and your house rules attached to the application.
5. Have your contact info on the application
6. Be sure to let all know prior to bring a checkbook for application fees. Do not accept cash for safety reasons.
Fair Housing
Fair housing laws specify illegal reasons to refuse to rent: Race, religion, ethnic background, sex, age or because she has children or a disability. Basically, your reasons for refusal must be applied equally to everyone, but you can refuse to rent for the following reasons:
1. Your rental criteria. This really should be written down so that anyone questioning your subjectivity can be satisfied quickly. Objectivity is the key and the burden of proof is on you.
2. Poor credit history, insufficient income to pay the rent
3. Past behavior, such as neighbor complaints, damaged property, evictions or bankruptcies.
4. A valid occupancy policy limiting the number of people per rental unit . Know the law in your state before you refuse renters based on the number of people allowable in your unit.
Thanks for Reading
Howard Bell
http://www.yourpropertypath.com We believe that knowledge should be free and freely shared.
The Landlord Business - Building Your Future With Investment Property
So, do you think it's a bad time to get into the investment property business and become a landlord? After all, property values aren't literally going through the roof anymore like they were during the real estate bonanza of the past several years. Instead, the opposite scenario is currently taking place - property values have dropped (and are predicted to drop even further) in many parts of the country.
The fact that the real estate market has cooled and is "coming back to reality" shouldn't discourage anyone from buying rental property and becoming a landlord. The truth is some very attractive buying opportunities are now being created for real estate investors who can (and are willing to) take advantage of them.
As of this writing, many of the top real estate experts believe that these opportunities will peak during the next six to twelve months before they begin to fade. They're predicted to reach levels that haven't existed for many years. The world's greatest investor, Warren Buffett, has long practiced his famous philosophy: "Be fearful when others are greedy, and be greedy when others are fearful." It's the perfect investment acumen that also applies to real estate - buy low and sell high when the opportunities exist.
With that being said and with real estate prices currently on the decline, it's hard to know just when prices will reach rock bottom before they level off and begin to rise again. However, no matter what the pundits may advise, trying to "time" and predict the future of the real estate market is impossible without having a crystal ball.
The truth is no one really knows for sure what the future will hold. But one thing is certain - real estate history has proven repeatedly that the markets eventually bounce back and reward those shrewd investors who had the wisdom to invest and take advantage of opportunities and low prices during weak markets.
But in the landlord business, buying investment properties at attractive prices, while extremely important, is not an end in itself. The other part of the equation that makes the business thrive is effective property management. Learning how to manage rental property effectively (and applying that knowledge) are the key ingredients for developing a rental property business that operates smoothly with maximum cash flow. And this is really the name of the game for achieving long term financial success in the business.
Time will take care of property values and appreciation - the longer an investment property is held, the greater its chance for price appreciation. And, effective property management is the key element that allows a landlord to "hold onto" and operate a rental property long enough to let market forces work and increase its property value over time.
In summary, building your financial future by maximizing your financial success with investment property relies primarily on three factors;
- Buying Property at Discount Prices (i.e., during "Buyer's Markets")
- Learning and Applying Effective Property Management Techniques, and
- Holding the property long enough to let "Time In the Market" perform its job of providing price appreciation.
All three of these factors will secure and maximize your success in the landlord business.
John Turchetta has been an experienced diy residential landlord for more than 23 years. His website, http://Great-Landlord-Info.com/ features a wealth of terrific information on the residential landlord business that all residential landlords, from novice to experienced, can benefit from. He has also written the comprehensive "Landlord's Library" series of e-books that cover the complete spectrum of subjects on the residential landlord business.
How to Lease Residential Property for Profit
Basically there are two ways to make money off your real estate investment. You can sell it at a higher price, or rent/lease it out.
Finding possible buyers is not much different than finding possible tenants for your residential property. You can place ads at apartment complexes, shopping centers, and the local newspaper. Then you can hold open houses, arrange appointments to view the property, and negotiate terms.
The most obvious benefit of renting out your residential property is that you earn money while still holding ownership over the property. Although it may sound great there can be problems. You could possibly get a bad tenant that skips payments or damages the property during his/her stay. Of course you have the authority to kick them out but the damage has already been done. You now have to deal with the costs of repairing the property, losing out on the earnings that would have been earned while you find another tenant, and the devaluing of your property because of the damage.
To avoid bad tenants you need to screen them by asking them to fill out a rental application form. You should ask for all the information necessary to do a background check, evaluate their ability to pay, and you can ask for information that could be used to track them down incase they damage your property and skip town.
After you’ve found your best candidate, you will need to legally protect yourself (and your tenant) with a Residential Lease. A Residential Lease is a form that lays out any terms and obligations you provide to the tenant or that you want your tenant to follow. Any policy('s) you have on things like rules on damages and repairs or your policy on subletting should be included in your Residential Lease.
The Residential Lease legally protects you from any squabbles that often occur between tenants and landlords. What if their pet ruins the carpet? What if your tenant damages the wall(s)? What if your tenant misses a payment? What if your tenant abandons the property? It's best to clear these questions up immediately in your Residential Lease than argue about them later and not be able to do anything legally about them.
Having a Residential Lease will legally protect you and your property. The benefits of having one is obvious and the consequences of not having a Residential Lease are alarming.
"How to Lease Residential Property for Profit" has been brought to you by LegalFormsBank.Biz, where you can download legal forms online. Download your state's Residential Lease Agreement today. We also have many other legal forms like your state's Promissory Note Form.
Labels: Lease, Profit, Property, Residential
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