Category: Property Management

Tips and information about managing rental property.

Little Known Pool Of Potential Renters

April 10, 2008 adminrealtor No Comments

For those of you who are proud, new owners of rental properties, your now in a situation where your paying for multiple mortgages. You’ve got you primary residence mortgage(s), and now your rental mortgage(s). The sooner you can get your property ready to rent, the better off you’ll be financially. But even if you’re ready to be a landlord, you may not be getting the amount of response you thought you would from those advertisements in the local papers. What are you going to do? The clock is ticking and soon, the next mortgage payment will be due on your rental.

Enter the Federal Government.

There are numerous families in dire need of affordable housing in the United States, and our government recognizes this. The U.S. Department of Housing and Urban Development has created various housing vouchers that assist low-income families with the ability to afford safe, decent and sanitary housing in private-sector neighborhoods. Where does the government get these homes? From people like you!

It becomes a win-win situation for all when you realize the big picture: the government helps lower-income families, lower-income families get financial assistance to live in decent housing, landlords get paid. In a nutshell:

You provide your home as a rental unit in the housing program — adhering to the standards for sanitary, safe and decent housing.
A low-income family chooses to rent your home.
The family pays you a portion of the rent and the government pays the rest.

There’s no guarantee that you’ll get a tenant (after all, the families still get to pick and choose), but you will have greater exposure to more potential renters, and if your house is chosen, you’re almost guaranteed that you’ll get paid each month.

Your house must comply with living standards outlined in the voucher program: running water, heat, air conditioning, etc. More details and information about the various voucher programs can be found by clicking HERE.

Categories: Investing Property Management

Tags: housing vouchers, renting, section 8(a) housing

Does Your Home Have Lead?

April 7, 2008 adminrealtor No Comments

Surprisingly, I often come across clients who have heard about lead poisoning, but aren’t really sure how it can affect them or their family, or what they should do if they suspect their home may have lead. The following is an excerpt from a publication provided by the EPA that real estate agents are to provide customers who plan to buy or sell a home built before 1978. Landlords also should know that it is your duty to provide similar information to potential tenants prior to ratifying the lease.

If you would like a copy of the full publication, email me and I’ll send you one.

Many houses and apartments built before 1978 have paint that contains high levels of lead (called leadbased paint). Lead from paint, chips, and dust can pose serious health hazards if not taken care of properly.

It is important to know that even exposure to low levels of lead can severely harm children.

In children, lead can cause:

Nervous system and kidney damage.
Learning disabilities, attention deficit disorder, and decreased intelligence.
Speech, language, and behavior problems.
Poor muscle coordination.
Decreased muscle and bone growth.
Hearing damage.

While low-lead exposure is most common, exposure to high levels of lead can have devastating effects on children, including seizures, unconsciousness, and, in some cases, death. Although children are especially susceptible to lead exposure, lead can be dangerous for adults too.

In adults, lead can cause:

Increased chance of illness during pregnancy.
Harm to a fetus, including brain damage or death.
Fertility problems (in men and women).
High blood pressure.
Digestive problems.
Nerve disorders.
Memory and concentration problems.
Muscle and joint pain.

You can get your home tested for lead in several different ways:

A paint inspection tells you whether your home has lead-based paint and where it is located. It won’t tell you whether or not your home currently has lead hazards.
A risk assessment tells you if your home currently has any lead hazards from leadin paint, dust, or soil. It also tells you what actions to take to address any hazards.
A combination risk assessment and inspection tells you if your home has any lead hazards and if your home has any lead-based paint, and where the lead-based paint is located.
Hire a trained and certified testing professional who will use a range of reliable methods when testing your home.
Visual inspection of paint condition and location.
A portable x-ray fluorescence (XRF) machine.
Lab tests of paint, dust, and soil samples.
Home test kits for lead are available, but may not always be accurate. Consumers should not rely on these kits before doing renovations or to assure safety.

There are state and federal programs in place to ensure that testing is done safely, reliably, and effectively. Contact your state or local agency for more information, or call 1-800-424-LEAD (5323) for a list of contacts in your area.

Categories: Buying Investing Property Management Selling

Tags: homes in lead, lead in homes, lead testing, pre-1978 homes

Room By Room Renting

April 1, 2008 adminrealtor No Comments

Congratulations on investing in real estate! A savvy move for the organized, prepared, and patient investor!

I know your smart and you’ve done your research. You have reviewed any Property Owner Association documents for any restrictions or guidelines that you must abide by, and now you’re ready to get some tenants in there and make some money! What’s that you say? You also know how much the average rental amount is for rentals in the neighborhood? That’s great! But is that rental amount per home or per room?

In some cases, renting out rooms versus the entire home may be more lucrative. There are some pros and cons to consider, but with a little bit of planning, you may find that you might prefer to offer room by room renting.

Pros:

Lower rent amounts give you a broader range of qualified applicants.
In most states, room by room renting gives you greater control over who can rent a room — i.e., women only, etc.
If one room tenant fails to pay their rent, you may still get paid from the others. Some rent is better than no rent!
You can charge different amounts for different room sizes or amenities.
Individual room rental amounts may add up to more than what you could get renting the entire home to a single tenant.

Cons:

More tenants, means more paperwork and organization.
You’ll have to find a way split utility payments among the tenants, although your tenants can manage this.
Individual tenants may mean more neglect to prepare for in common areas such as the kitchen or laundry area.

So weigh your options, and think about your own pros and cons to room by room renting. Good luck!

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Categories: Investing Property Management

Tags: Property Management, room renting

Getting Paid On Time

March 27, 2008 adminrealtor No Comments

As a landlord, you are bound to face the reality that your tenant may not always pay on time. If you are depending on that rental payment to cover the mortgage payment on that property and you receive the rental payment late, then your mortgage payment may be late as well.

But don’t fret, here are a few things you can add to your lease agreement to encourage on-time payments and discourage late payments:

Include an early-bird discount. For example, if your lessee pays 5 days before the payment due date, knock off $50.00 as a discount.
Include a late fee amount. No one wants to pay extra for being late. How much should the late fee amount be? You could make it similar to the amount the late fee would be for the mortgage payment.
Include a 5-Day Pay Or Quit clause. This is actually the start of an eviction process, but making sure that the tenants see the clause in agreement may discourage them from paying late.

Your tenants should also know that on-time or early payments will be noted by you, should they ever need a future reference.

Categories: Property Management

Tags: preventing late payments

Landlord Virgin

March 26, 2008 adminrealtor No Comments

So, Mr. Roper, you think you found the perfect rental property, huh? And this is your first one too? Congratulations! You’ve realized that real estate is a great investment, especially long term, and if you played your cards right, you may be able to generate positive cash flow each month. Let’s take a moment review a checklist of items you need to consider for your newly acquired rental, and before you know it, you’ll be on your way to the joys of property management:

Draw up a lease that protects you and your property.
Get to know the people in the neighborhood. Exchange phone numbers if possible.
Do a credit and background check on all your applicants.
Determine where you want to receive the rental payments.
Make sure you know the condition and state of all major appliances. Be prepared for repairs.
Make sure you know the condition and state of interior and exterior structures. Are the pipes old? How old is the roof? Set funds aside if needed.
Set a schedule for annual maintenance and don’t forget about it! Neglecting general maintenance can have expensive repercussions.
Get a market analysis report from a local real estate agent to help set your rental price.
Do a pre-move-in walk-through with your renters and include photographs.
Know the eviction process in the property’s jurisdiction.

A lease is a legal contract and your best bet is to consult with a real estate attorney for advice about terms you can include in your rental agreement.

These are just a few items to consider, but you’re smart, you’ll do well! Good luck and happy landlording!