Tips in Showing Your Rental Properties to Applicants

Litle trick

In order to achieve success in this form of business, it's necessary to show your unit to prospective tenants. you wish to form certain that the property is attractive to tenants to be able to rent it out and start collecting rental income. Sometimes, booking showing appointments may be stressful. If the unit is currently tenanted, you have got to urge an access approval from the tenant. making it appealing is that the key to success. The quicker you can get the unit rented to quality tenants, the quicker you can start collecting rental income.

1. Curb attractiveness is important - How will the outside of the property check out first glance? be sure that any exterior repairs are completed before the scheduled showings. continually certify unit is well painted and attention-grabbing. notwithstanding the dwelling is small and modest, it should still give a sensible first impression. whether or not it's the parking zone and minimal landscaping of an apartment complicated or the front and back yards of a rental home, certify that the grounds are maintained on a daily basis.

2. Presentable Interiors - Fix up the inside. If the property is unoccupied, certify that any problems have been mounted. If your property is not vacant, stop by alone first to avoid any embarrassing things. certify that everything appearance presentable and zip needs to be attended to before somebody views it. be sure to turn the heatth} on if it is cold outside or the air-con if it is warm (or open some windows for a breeze). If prospective tenants are uncomfortable during the showing, they will not wish to imagine living there. Scrub the floors, countertops, bath tubs, baseboards, walls, carpets and surfaces till they gleam, and do not forget to Windex those windows. notwithstanding the house lacks architectural accents or upgraded appliances, a clean house is an inviting home. The property will look much better if lights are illuminating all of the shadowy corners. Prospective tenants are going to be wary of a house they can not see, and natural light-weight isn't always sufficient. Add many lamps or turn on overhead lights to form certain every nook and cranny is visible. This way, tenants grasp you aren't hiding something.

3. Selling Points - Property Managers are sensible at this. Most rental homes have bedrooms, bogs and ceiling fans, but what will your rental property have that sets it with the exception of all the others? Tell prospective tenants about the upgraded appliances or custom crown molding to entice them to explore it any. The a lot of you touch on unique attributes, the higher your chances. it is usually an honest plan to relinquish prospective tenants the complete tour. for example, if the property features a sun deck and pool in back, you don't wish to skip that necessary selling purpose. certify they see everything.

4. Forms, Documents must be prepared - certify that you just have a rental application accessible and a duplicate of the lease you utilize. you furthermore mght have to be compelled to ought to make sure that you just have selected terms including security deposit amounts, pet deposits and key deposits. This says that you just are ready to rent at once, and can encourage renters who are currently sitting on the fence. Have additional copies for alternative candidates or occupants.

Commercial Property Agents - What Are Your Property Management Fees Today?

Comercial Property Agents

A real estate agent that's to be managing an ad or retail property can have to be compelled to cover operational prices and build a profit. that's where the fees charged are so vital. it would sound alittle crazy, however some agencies never build a benefit from commercial or retail property management; that's as a result of they are doing not understand what they're extremely to be doing and do not found out the systems to support the special skill sets. commercial or retail property management is quite special; the simple rules of residential property do not apply.

Many property agencies can also regard the property management service within the office because the 'poor cousin' to the sales and leasing division. while that concept may go in residential property management, an equivalent doesn't apply in and with commercial or retail property. commercial and retail property management is simply far too specialised and complicated to be a 'poor cousin' to anything.

If you run a real estate agency and want to start an ad property management division, then here are the essential rules:

use smart folks for the commercial and retail services you're to supply. they need intelligence and drive to specialise.

Gather the commercial and retail market data and trends so you understand what's required to make your division and business.

certify that everyone that you simply use on commercial or retail property extremely understands what they're doing, and get them trained to select up on any shortcomings.

Charge cheap fees that are reflecting the complex and special tasks of the property management job

So what are the fees for managing commercial or retail property today? To answer the question you ought to 1st conclude what different agents are charging domestically for the management services. you will soon see those that are 'cheap' with their fees; the truth is that they are doing not take the tasks of the work seriously. Low fees do not apply if you're a heavy and skilled commercial agent. In saying that, it is necessary to supply excellent services to the clients that you simply serve to justify your fee.

Here are some fees to think about in providing your property management services to commercial and retail property:

A base management fee ought to be set for managing the property on every day to day basis. which will embrace rent collection, income and expenditure management, tenant and lease management, and maintenance management. you ought to additionally embrace an allocation of time for reporting to and communicating with all the tenants and therefore the landlord, given the stress and operation of the property.

A fee ought to be set for negotiating the various varieties of lease rent reviews when and if they fall due. providing the rent reviews are of various varieties, it pays to set fees for each sort. Market rent reviews are the most time consuming and may attract the higher fees.

A fee for negotiating new leases and renewals of leases with sitting tenants ought to be set. it is common to barter leases with your sitting tenants.

New leases with businesses seeking to occupy your vacant area within the property also will attract its own fee. this will be more than the fees that you simply set with your sitting tenants, as more work is required.

Set an hourly fee for special tasks that are outside of traditional management duties. this could be out of hour's property attendance, court attendance, project management, and business planning or budgeting of the property once per year.

As a general observation, retail property is far more demanding on the property manager's time given the nature of the tenancy combine and therefore the operations of the property. watch out when setting a fee for a retail property management and provides due regard to your office and employees prices.

So what quantity profit must you build in running your commercial or retail property management division? the answer is about half-hour to 400th on top of your gross operational prices of running the division. after you recognize this variety, setting the other fees is not a retardant.

There may be different fees for you to think about additionally to the most ones above, so be aware of what the property desires in daily management, and what the local property market is doing. do not discount your property management fees to win the business; a top quality service requires a fair and cheap fee.

How to profit from every property

Profit from Property

To enable you to profit from property investment you must adopt 2 key strategies. When you invest in a property, always aim to secure a 2 way exit strategy. Your investment must be flexible and allow you to either sell or rent at any given time.

Key strategy 1:
Planning for a realistic rate of return when you sell Any property purchase or investment must have at all times enough profit in it, so should you decide to sell, you will achieve a 15-20% return on your investment.

Key strategy 2:
Planning for a positive cash flow when you let If you decide to let your property, you must always ensure a healthy and positive cash flow from the agreed rent.

Understanding market values

 

Sell at 15-20%
Over Market Value

Buy at 15-20%
Below Market Value
-Ideally your ceiling price!

 

 

The Different Approaches To Realty Management

Realty Management

Frequently during property management training the topic comes up about whether single family or multi family properties make the better investment.

Much of the answer to this is really a question of realty management, your specific real estate investment objectives, and whether or not the individual tasked with managing your rentals has the necessary property management training.

Single and Multi Tenant Properties Realty Management Review

Some of the common discussion about realty management cover these points:

Consider whether or not the market has really bottomed out. Are there too many properties on the market for the available buyers, or are unsophisticated investors bidding up property values while the smart money stays on the sidelines?

Think through the exit strategies available with each investment.

With single family properties you can:

• Sell to your tenant
• Sell to an owner-user who is not your tenant
• Sell your portfolio to another single family investor, although this is the toughest of the three to do and often times easier said than done

With multi tenant properties the exit strategy is more limited, but also more clear cut:

• Sell to another multi tenant investor
• Go condo, split up your multi tenant property into individual units for sale, and sell to either the current tenant, another owner-occupant, or a beginning residential investor

Realty Management Differences

There are big differences in the type of realty management required for each of these product types.

Here's what I see the top three being in each:

Single Family Realty Management

The realty management of a group of single family homes becomes much more difficult if they aren't close to each other.

On the other hand, the amount of ongoing repairs required is probably going to be less, since tenants in single family homes tend to have more of a "pride of ownership" in their property, even though they're renting.

But when repairs are needed, they are probably going to run on the high side, in particular when the property needs to be turned over to another renter. There's simply more of everything that needs to be spruced up or replaced, compared to a small sized multi tenant rental.

Multi Family Realty Management

The realty management of multiple units is almost always easier, since each grouping of units is right next to each other. Even if you have a real estate investment portfolio that's spread across town you've still got multiple units right next to each other.

You may have a higher level of on-going repairs, since tenants in multi family property may take a lower "pride of ownership" view than those in single family properties.

When repairs are needed, the costs are probably going to be lower due to the smaller sized units, when compared to a single family home.

The Impact Of Appreciation

I've seen a lot of real estate investors purchase property with the idea of building a legacy that they can pass onto their kids. Their intent is to never sell.

Sometimes this happens, sometimes it doesn't happen, for various reasons.

My point is that buyers of investment real estate should always think through the potential selling exit strategies of each and every investment they buy, in addition to the ease of realty management.

Here's where to start when you think about selling before buying.

Multi Tenant Investors

With multi tenant properties, you'll most likely be selling to another investor who is driven by financial performance, CAP rates, or cash-on-cash return. There won't be a lot of emotion involved with this type of sale.

So, your type of realty management should be developed with this in mind.

Single Family Buyers

Here you're most likely selling to an owner-occupant, either the existing tenant who wants to own, or an end-user who wants to buy.

With single family, other than the ability to finance the property, emotion is probably the number one driver for most buyers. The color of paint, carpet or flooring, the type of appliances, and much more all come into play.

Your realty management of the property should be done with this emotional twist in mind.

Making Money On a Vacation Home

Making Money On a Vacation Home

I'll just buy a condo on the beach, and rent it out for $700 a week, and then I will be rolling in the money." WRONG! Although you can make some rental income on a property, seldom will you make a huge profit, or any profit at all. There are many factors to consider.

Make sure you can afford the payments, utilities, insurance, and upkeep when it is not rented.

In the southeast U.S. there are many attractive places to have a condo, or home on the beach. However, that beach property is only in season as a rental certain times of the year. The rest of the time you just pay.

-There are monthly condo fees, that go on whether it is being used or not.

-Mortgage payments continue on.

-Utilities to some degree continue.

-Rental agency fees are deducted from rental income.

-Cleaning fees.

-Repair and upkeep costs.

-"Mother Nature" blowing plans to rent for that period.

-Insurance fees

The last one is a big one. After every major storm, insurance fees triple, or even higher for the beach areas. Your profit disappears.
If you are in the mind set of purchasing a place because you will be retiring there some day, and you just want to rent it out to help a little with the payments until then, it may be a good idea. Just be cautioned of the business expenses that will be involved. Do not cut yourself too short, in order to allow for the expenses, and non - rental times.

Rental Property Maintenance List

Property Management

Like any other real property, rental homes require routine maintenance to keep them optimally functional and structurally sound. Diligent upkeep of the items on this list are necessary in order to ensure your invest will continue to perform over the long-term. This checklist of maintenance items (to repair, replace, or simply inspect) are things you'll need to check/perform least once each year.

The items are broken out into two categories. "Things to Do" and "Things to Inspect". Naturally you should take note of any items that need additional repair, and make that extra trip back to the hardware store to rectify any noted issues.

Things to Do - Inside

Replace Smoke detector batteries.
Clean/Seal Tile flooring and grout.
Replace Air filter.
Replace Furnace filter.

Things to Inspect - Inside

Faucet, drain, and garbage disposal.
Kitchen cabinetry for anything loose (hinges or mounts).
Door hardware functionality.
Doorframe Squareness.
Furnace ducts.
Electrical panel for any rust or water signs.
Fire extinguisher.
Ceilings and Walls for any signs of moisture.
Fireplace (if applicable).
Attic - Signs of water damage, mildew and rot.
Any signs of pest infestation.
Bathroom faucets, drain, and drain plug.
Toilet - fill valve, flapper, seat, and floor. 

Things to Do - Outside

Clean gutters and downspouts from any leaves or debris.
AC Unit - Clean and remove any debris.
Check Dryer vent for any debris.
(If applicable) Pressure Wash wood siding in order to prevent mold.
Trim any overgrown trees or bushes.

Things to Inspect - Outside

Exterior Paint.
Exterior Caulking.
Windows and Door sills for any leaks (caulk).
The Foundation.
Sprinkler system.
Decks, railings, and stairs for any looseness.
Fences, gates, and associated hardware.
Inspect the roof to confirm soundness.
Window screens.
Garage and Garage Door.
Septic system.
Storm windows and all hardware.
Grading of the house to ensure proper water drainage.
Exterior walls for signs of pests or damaged wood (i.e. termites).

While many of these items will incur some cost, it will be a nominal amount compared to the cost of replacing the aforementioned items. If you are the one personally attending to you own rental property, it's easy to ensure that everything is done correctly. If a property management company is maintaining the home on your behalf, it becomes a necessary to make sure they are properly caring for your investment. Ask to see receipts and/or labor statements that can satisfy that everything has been properly maintained.

With routine maintenance and proper inspection, your rental property will provide years of quite enjoyment and profitable use.

Multifamily Residential Property Management Best Practices

Properly implemented, tracked and monitored property management processes and procedures are integral to the establishment of successful multifamily residential real estate. These types of property management best practices include effective standard operating procedures, installing well-run maintenance programs, obtaining package discounts on insurance and other items, monitoring unit inspections, and developing resident retention programs. These all serve to increase NOI (net operating income) while preserving, protecting, and enhancing the property's physical assets and resident welfare.

Property Management

Beyond establishment of effective protocol, extensive involvement with governmental agencies like HUD (Housing and Urban Development), the USDA agency for Rural Development, and the California Housing Finance Agency (CHFA) is crucial to developing a successful place of business that is also a happy place for people to live. HUD alone has eight major operating branches, several of which interact with multifamily housing developments. These include Fair Housing and Equal Opportunity, Healthy Homes and Lead Hazard Control, and the Housing Office (responsible for the Federal Housing Administration). Each branch has separate concerns regarding the proper operating standards of multifamily property management.
Local housing authorities and community development agencies that serve various types of residences are also integral to successful multifamily property management. In addition to extensive involvement and frequent contact with such agencies and organizations, regulatory compliance is clearly critical. This includes regulations from HUD, Low Income Housing Tax Credit (LIHTC), and other related agencies, and necessitates an experienced compliance coordinator to monitor and assist with these issues. Development of residences qualifying for the Low Income Housing Tax Credit can bolster a community and yield substantial tax deductions, but only if the guidelines of section 42 of the Internal Revenue Code are met. Failure to comply with HUD, LIHTC, or a number of other regulatory bodies can result in fines, reducing or eliminating profits and jeopardizing the ongoing successful operation of the property.
Historically, investment in real estate has proven a generally sound strategy for increasing capital when held for adequate periods of time. Implementing multifamily residential properly management best practices is a key component in enhancing capital growth, as the decisions pertaining to property positioning, maintenance practices, and long-term strategy will greatly impact the value of the asset at time of disposition. This includes everything from structural soundness to grounds keeping to reputation. Only through a comprehensive approach can stable, long-term growth be achieved. Focusing on properly implemented, tracking and monitoring property management processes and procedures, including the creation of a best practices protocol will help ensure optimum value for multifamily property holdings.

Ms. Burger serves as Senior Vice President of Eugene Burger Management Corporation (EBMC) and has managed a full-spectrum of real estate including common interest developments, multifamily residential including both conventional and subsidized housing, commercial, medical, single-family home and mini-storage. One of Ms. Burger's greatest attributes is holding the fundamental knowledge of the management practices in all real estate management disciplines.

Learning Real Estate Consulting

 

Learning Real Estate Consulting

 

With the guidance of real estate consulting, you'll learn how to maximize your profits by investing in foreclosures and short sales. Most individuals look at the current state of the real estate market and see nothing but a black hole. But, you'll learn that investing in these properties not only earns you a significant profit, but it also helps revitalize neighborhoods that are slowly going downhill by getting families into the homes that you invest in.

Why Invest in Foreclosures?

Lenders foreclose on a property when the borrower has defaulted on their payments for 90-days or more. In an effort to recoup some of their loss, the bank typically lists the property for sale for the balance that the borrower owes on the property rather than the actual property value. Therefore, you can often find properties listed for $100,000 that are in actuality valued at $250,000 or more. By purchasing the home, you've instantly gained $150,000 in equity.

However, the largest profit can be had when investing in luxury foreclosures. This allows you to receive up to 50% to 70% off. Therefore, if the home is valued at $600,000, you may be able to swoop in and purchase it for as little as $180,000. If the home is in a distressed condition, simply upgrade the necessities to bring the home back to par and sell the home close to full value to the right buyer. If you purchase the home for $180,000, invest an extra $30,000 into the property and accept an offer for $550,000, your profit is $340,000 on just one home. It would take the average person over six years to earn $340,000 in their day job. As a real estate investor, it can only take a few months.

Investing in Short Sales

You may be asking yourself, "Why should I invest in a short sale when I can purchase a foreclosure for less money?" Well, short sales are sometimes a better deal than a foreclosure as you're dealing with the current homeowner, rather than just the bank. It is in the best interest of a homeowner to sell the property. Therefore, you are far less likely to find that a short sale is in distressed condition.

When you're considering buying a home that is in good condition and can be had at a bargain-basement price, it's an ideal scenario. Because the home isn't distressed your expenses involved with bringing the property back to an acceptable standard of living are going to be less. Therefore, your profit margin is higher. Just like foreclosures, short sales are listed for the amount that is owed by the borrower rather than the market value. Therefore, you're often able to purchase a quality property at a steal.

Investing in foreclosures and short sales holds the keys to transforming your financial life. Making the right investment decisions requires a hard work, skilled eye, negotiation skills and the ability to spot the right property at the right price. Real estate consulting can help you make the profitable investment choices for you.

How to determine Market Value (MV)

Market Value

Your aim to negotiate a substantial discount on a property can only be achieved by understanding and establishing the market value. There are several ways to work out the market value of a property.

Firstly, collect comparables in the area by researching property magazines, newspapers, websites
and similar properties on sale.
This process once collated, can be used to find the market value of a property.

Secondly, ask approximately 3 estate agents for their view on the market value of properties in specific areas. Once this information has been passed on to you, work out the average price.
This process can be employed for letting agents to find the rental value of a property.
You can also obtain records from the Land Registry of properties sold within the area and over specific time periods. However, there will be a fee for this information but it will give you a realistic picture of how much the properties are being sold for.

Homebuyer’s Survey
A Homebuyer’s Survey and Valuation (HSV) is a report accepted by the Royal Institution of Chartered Surveyors (RICS) as a credible way to determine the valuation of a property. This type of report covers many major structural defects that may be discovered in the valuation. The report also covers defects in the roof, loft space, flashing, chimneys woodworm, damp and dry rot plus other lesser known defects.
The HSV does not cover 100% of the possible problems that can occur within a property, however, the report is sufficient and thorough enough for the lenders to rely on for mortgage purposes.

Buildings Survey
A Buildings Survey is a very comprehensive way to establish the defects and valuation of a property. It generally covers a more detailed inspection and results in a thorough understanding of the state of a particular property. This kind of survey is better suited to properties with structural problems or a property that may have been empty for a long period of time.

What Does a Good Property Management Company Provide?

Property Management Company

A good property management company will streamline the process of renting your investment property and managing tenants. What differentiates the good from the bad comes down to some universal areas. This article outlines those necessary traits.

1. Responsive Service.

If a manager doesn't handle all incoming leads quickly, you can believe that they'll move on to the next place. In a market where the competition for renters is stiff, you need to jump on every opportunity. Also needless to say, they should be located within a reasonable distance from the property.

2. Ability to deal with all types of tenants.

Being a landlord sometimes requires less-than comfortable interactions with tenants. If you either can't bear with the idea of confrontation, this isn't the role for you. At the same time, understanding and compassion is a key trait. If you lose your temper easily or tend to act out of emotion, hire someone else. In the event that a tenant turns out to be a deadbeat, they handle the eviction process and legal proceedings for all damages.

3. Experience in Marketing and Applicant Screening (Judging the good from the bad).

One bad tenant can turn your profitable venture into a money pit. You will benefit from an established procedure that a property manager uses. Appropriate market analysis, tenant screening, statement accounting will ensure that your property is well-managed. In most states, a property manager must be a licensed real estate agent, which means they understand the laws and duties that are required.

4. Guru of Home Maintenance and Repair.

While much of the time will consist of quite enjoyment on behalf of the tenant, maintenance and repairs will occasionally be necessary. Whether it's unit preparation between tenants or a plumbing issue, the Property manager will supervise all work done by preferred vendors.

5. Value for Service. No Markups.

The industry standard is 8-10% of collected rent and 50% of the first months rent for tenant placement. While this will lessen your overall return, it ensures that you're property will be well-managed. There should be no markup on maintenance or repair, and any funds resulting from late-fees or penalties should be yours in full.

A Property Management Company is essentially a partner in your rental business. A company that exhibits these traits will become an essential entity and ensure you the best chance of success. Don't be afraid to contact multiple companies to find the one that best delivers on these crucial areas.

How to Rent My Property

Property for Rent

One of the most common questions landlords often ask of us is "I can't find tenants - please can you help me rent my property?" or "what do we need to do to rent my property quickly?".

Often we are shown the property of landlords who are struggling to find tenants, yet on many occasions we can tell within minutes of walking through the door, why they have had little interest. Usually with just a little bit of work, these properties can be made more rentable, without having to commit a large budget.

Some tenant find principles

Most tenants will view five or six properties before choosing one to rent; and will often make up their mind based on a single viewing. After considering the type of tenant you want to attract, you need to help them choose your property over the others.

To successfully rent my property it is essential you know your market. The location and type of property you have to rent will in most cases dictate the type of tenant you should try and attract. Which ever category of tenant you are after, it makes commercial sense to attract the best tenants you can. If you want professionals in your property then you need make your property appeal to the expectations of that type of tenant. If you are after students, LHA or house share; then your property needs to attract tenants who look for something different.

So if "how do I rent my property" is a question on your mind, here are some key pointers to help you rent your property quickly.

Rent My Property - Our Top Tips

1) First impressions: The tenants' first view of your property is made as they walk up road or up the drive. How does your property compare with others on the street? How does it look through the windows (often the first things prospective tenants see are the backs of curtains and blinds)? Outside; a tidy garden, clear path, freshly cut lawn, clean walls and paint work, have greater tenant appeal.

2) Clear the clutter: If your current tenants are messy, consider waiting until they have left until you show prospective tenants round. New tenants often cannot see past the clutter and therefore struggle to see themselves living there. If previous tenants have gone and left clutter inside or out - get rid of it.

3) Re-fresh and fix: The decoration and presentation of your property will affect the speed of letting and the rent you will achieve. Pay special attention to the paint on the walls (plain paint is often best); the carpets and the floors. Clean and repaint where necessary; fixing any broken door or drawer handles and taps. You are setting a standard so you should refresh according to how you would like your property to be looked after (and grubby properties attract grubby tenants).

4) Focus on the kitchen: Many tenants look at the kitchen more than any other room in the property. If you are to spend money on any room in the house, make this the one you look at first. If your kitchen looks "tired" then a repaint and new cupboard handles can make a major difference for a minimal cost. Any loose doors need to be fixed or replaced. Appliances do not have to be new but they should be clean - especially ovens and hobs.

5) Do not worry about "white goods": Your property should supply a cooker as a minimum; other appliances are beneficial but not essential. If there are not any "white goods" in your property then you may be best waiting until tenants view the property before deciding whether to supply them (you have to maintain them if you do). Some tenants already have their own. You can always state to viewers that you will supply if required.

6) The bathroom: The second most important room in the house is the bathroom. A "tired" bathroom will put many tenants off. It does not need to be new but it should be clean and clear of clutter. All units and bath sides should be firmly fixed; taps and showers should work smoothly. Showers are now a modern day necessity so if your property does not have one, consider installing an electric shower over the bath as your property will rent quicker if you have one.

7) Carpets and floors: If your property has old or worn carpets, with heavy patterns or dark colours; consider replacing them with more modern, plain carpets. A good choice of colour can brighten up a room and make it feel more spacious. An important room to look at is the living room. If your budget is restricted, this is the room to look at first. With the right choice you will recover the cost with the extra rent you will likely achieve.

8) Windows and views: You can never let too much light shine into your property. Make sure all windows are clean and any curtains are open when tenants are shown round; and remove any old net curtains. You should supply curtain rails but curtains are not essential as tenants often prefer to provide their own to personalise the property. If your property has good natural light then use it and if at all possible conduct viewings during daylight hours.

9) Lamps and shades: It is possible to improve the appearance of a room with new lights and/or shades. In many properties for rent these are old or have never been cleaned, contributing to a grubby feel. New shades can add that finishing touch. Subtle is best as anything unusual runs the risk of not appealing to the tenants taste.

10) Furniture: There is little difference in rent values for furnished and unfurnished properties. Smaller furnished properties can appeal to younger tenants; the recently separated; or students. Larger properties generally attract families who tend to bring more furniture with them. If you are willing to supply some furniture, don't rush out and buy it in advance. Prospective tenants may not have the same taste as you and involving the tenant in the buying decision can be a plus point for your property over others.

11) The final clean: The last yet most important action to rent my property is the thorough clean. This means doing more than just going round your property with a vacuum cleaner. A full professional clean can transform your property from average to desirable. For less than a week's rent, it will make your property stand out and attract a better quality tenant.

Rent My Property - Final Thoughts

All landlords hate to have an empty property but rushing to rent my property without investing time to refresh and prepare it, can mean your property is empty for longer. It is better to adopt the principle that you are competing with other landlords and you want to attract the best tenants you can in your target market.

When competing to rent my property, you are usually better to refresh your property as above - even if it takes a week or two to complete and comes with a small cost. It will help you rent your property to a better tenant, who is prepared to pay more rent. Your property may ultimately rent faster.

 

Why some investors fail to make money

Investors Fail

Having a DIY mentality can be one of the biggest causes of time wasting when investing in property. Failure to manage time wisely causes so many to fail in achieving their goals. There are a limited number of hours you can physically work in a day and so you need to utilise every minute wisely.
This is especially true when starting on a part-time basis as you will have a lot of time restrictions to begin with. Firstly, let’s look inside the mind of a typical DIY property investor and focus on the decisions that needs his/her attention and time draining tasks that need to be dealt with on an average day.
Due to page limitations, I have highlighted only a fraction of the important tasks that need to be addressed however, there are sufficient to illustrate the point

This graph illustrates some of the typical areas that may need your attention in sourcing properties.

PROPERTY INVESTOR
1. Sourcing Properties

     - News Paper

     - Magazines

     - Networking

          a. Development Evening

          b. Property Shows

          c. Seminars

          d. Clubs
    - Sourcing Agencies
    - Website
    - Viewing Properties
    - Negotiating
    - Estate Agents
    - lettingAgents
    - Auctios
    - Friends & Relatives
    - Researching Area

2. Selling
    - Solutions
    - Estate Agents
    - Letting Agents
    - Accountant
    - Surveyors
    - Mortgage Brokers
     - Viewings
    - Website
    - Negotiating
     - Revorbishment
     - Home Staging

3, Buying

4. Renting

5. Finance

6. Marketing

7. Administration

8. Refurbisment


So what’s the solution?
Outsource. This is the solution. Look at every task you need to get involved with and then find a trusted professional to do it for you. Looking for professionals or ‘Super Heroes’ that fit your needs and budget will itself take time but it must be in your plan if you are to succeed. There’s simply too much to do yourself. You might be saving £180 in painting the walls in your new house but if your spending 2 days doing this then someone else is sourcing the properties with over £10,000 profit. Isn’t that false economy?
When is it best to outsource?
To judge when it’s best to outsource a task or when to do it yourself, you need to assess what your time is worth. Then calculate if it’s better to outsource the job or if it’s better to do it yourself

 

How to calculate what your time is worth
Here’s an example of how you can work out what your time is worth.
Your ideal salary £80,000
How many hours a week do you work? 40
How many hours a week of non-productive time? 15
(Non-productive time is time spent where you are not actively making money including talking to
friends, surfing the internet, reading emails, answering phone calls, learning, traveling etc.)
How many productive hours a week? 25
How many working weeks a year? 46
25 hrs X 46 weeks = 1150 hrs of productive time.
£80,000 / 1150 hrs = £69.56 per hour
So, if your task can be done for less than £69.56 per hour then outsource it!

Bad Property Managers and Mistakes We Made

Bad Property Management

We are still picking up the pieces from a very bad experience we had with an out of province Property Manager. It turned out to be an incredibly costly, stressful and time-consuming process that set our real estate investment goals back several months.

Initially our PM seemed great, he came with a great reputation, impeccable references and an extremely professional demeanor. Where did it all go wrong?

Looking back, it's easy to see where cracks started to appear. We took our eye off the ball, so to speak. We put far too much trust in what our Property Manager told us. It certainly didn't help that the property was in another city, in another province. The first warning sign was when the once monthly statements became more and more infrequent. Excessive charges began to be applied to our account, some for regular maintenance work, other charges for miscellaneous services such as the time a hefty snow removal charge was applied when it hadn't snowed for weeks. Rental cheques got later and later and vacancies took longer and longer to fill.

Looking back, we ask ourselves what we could have done differently? Without a doubt, we cut corners on our due diligence. We should have put more time and effort into the due diligence that is required when hiring a good PM - it's just as important as the due diligence required when purchasing the property. It was up to us to put strict processes in place to manage our Property Manager.

Communication is a certainly a big part of the process. Once we realized that his performance was not improving, and there was a continued lack of responsiveness from him, we should have taken immediate action. We put ourselves in a position that ended up costing us a lot of money.

Don't make the same mistakes we made. Keep in touch with your Property Manager often enough for them to know you - that's at least every month. Put your requests in writing. Make sure they're not on auto-pilot when things are going wrong. Be brutally honest with them and let them know you're on the ball. Good Property Managers find great tenants, report back to you regularly, conduct business efficiently and ensure you make as much profit as possible. When you find one, not only will you stand to reap all the benefits of property investing, you'll dramatically increase your peace of mind.

We learned lessons the hard way but it has certainly made us more vigilant. We continue to work with PM's who manage various parts of our portfolio - when they are good they are very, very good. Despite having difficulty with one PM, we have made up for it with the awesomeness of our other PM's.

How to Find a Property - Knowing Your Market Area and Market Value

Knowing your Market Area

There are 6 key methods which you can use to find a property but before you actually start the search, it is imperative that you know the market area to be a successful investor.

To fully understand the market you'll need to narrow your focus to a few selected areas as your target point for purchasing investment property. Because of the number of properties on the market available in any city you simply cannot know the entire city market. In fact, in the larger cities the average investor with limited time will be doing well if they have a good grasp of only one or two percent of the market.

Based on your analysis of the demand and supply issues in each city you should be able to narrow your focus down to a few selected areas. You'll need to do thorough research in these areas before choosing a property to purchase.

You must know what prices properties in your target area sell for. You need to be able to walk into a property and know within 5% what it is worth and what it would rent for.

When it comes to understanding the property market, there is no better way than old-fashioned foot-slogging. You need to get out and visit home opens, look at rental properties, and be aware of the market so that when an opportunity arises you will be able to seize it.

Astute investors always keep a careful eye on property values in the areas in which they are interested in. This way, they can avoid paying too much for a property and can always be in a position to distinguish a bargain.

So what is market value? In general terms, the market value of a good or service is the price at which a willing, but not anxious, buyer will pay to a willing, but not anxious, seller for that good or service.

For products which are plentiful, transacted often, and are largely the same as each other, determining market value is relatively easy. But property is typically not like this. Each property tends to have features that make it unique in the market - its location, size, age, etc. Even two properties side by side on the same street will be valued differently if they differ in size or age. To make things even trickier, property is typically not transacted very frequently, making it hard to compare a property you are interested in to a similar one that has sold recently.

Fortunately there are a number of information sources available to make your estimates of market value as accurate as possible. It's also a good idea to drive through the neighbourhoods you are interested in and check with real estate agents the prices that recently-sold properties fetched.

 

How to view a property correctly!

Check your Property

When you view a property, there are certain facts you need to establish from the inspection. These facts will help you understand the layout of the property and the amount of work required to refurbish to the market’s requirements.

To establish all the necessary information from a viewing, you will need to spend some time at the property. Do not allow the agent to pressure you into completing a quick inspection because they have another viewing elsewhere. If this is the case then re-book the viewing to allow for more time.

The viewing should be done in two stages.

Firstly, you should wonder around the property to establish the layout and consider any layout changes to make the property more habitable. You should imagine yourself in the shoes of your prospective buyer or tenant and what they may pick up as potential problems with the existing layout.

Secondly, start from the main door again and review the whole property so that you can check every possible detail. I would always advise to have a camera phone for taking pictures along with a PDA, notebook or a small recorder for making notes. This is important as you progress to viewing several properties over a short period of time, the details may become blurred and its always handy to refer back to your notes.

You need to make notes for costing purposes. They will become useful to refer back to when estimating the cost of the refurbishment and requesting various tradesmen to establish the extent of the work needed.

Ensure that you make notes on the following areas of the property.

Front and back gardens
What is the state of the garden walls?
Do they need repair work?
Is there any rubbish in the garden?
Does the garden need landscaping?

Outside of the house
Are there any visible cracks or damaged areas to brickwork or rendering?
Are there any cracks around doors and windows?
Are there any cracks close to the ground?
What is the state of the mortar?
Are there any signs of damp?
Do the walls seem straight?
What is the condition of the guttering?

Inside walls
Are there any visible cracks or damaged areas of plasterwork?
Are there any cracks around doors and windows?
Are there any cracks close to the ground?
What is the general state of the walls?
Are there any signs of damp?
Do the walls seem straight?

Windows and doors
What are the windows made from?
What are the doors made from?
Is there a FENSA certificate?
What is the condition of the frames and window panes?

Roof
What is the condition of the roof?
Are there any stains in the internal ceilings showing evidence of leaks?
What is the condition of the ceilings?
Can you get access to the loft space to check for daylight through the roof?
What is the condition of the felt?
What is the condition of the chimney?
Does the flashing need repair?

Floors
What are the floors made of?
Do the floor boards creak?
Are the joists showing signs of movement?
Is there any evidence of dry rot in the wood work?

Damp Proof Course
Is there a valid Damp Proof Course guarantee?
Is it worth conducting a Damp and Timber survey (usually free)?
Are there signs of damp?
Check around ceilings, water pipes, windows, doors and floors.
Are there any air bricks or vents installed?

Electrics
How old are the electrics?
Is there a valid NICEIC certificate?
What is the state of the electric wires, light fittings and sockets?
Does the circuit board need replacing?

Gas
What is the condition of the gas pipes?
Is there a valid Corgi Gas Certificate?

Bathroom
What is the condition of the bathroom suite?
What is the condition of the plumbing?
Are there any water leaks?

Kitchen
What is the condition of the kitchen?
Are the kitchen units in need of repair or replacement?

Heating
What is the condition of the central heating system?
How old is the boiler?
Is it a combi-boiler?

Drainage
What is the condition of the sewage drains?

External buildings

Using the answers to the previous questions, assess the condition of any external buildingsincluding garage, sheds and greenhouses etc.

Driveways
What is the condition of paths and driveways?
Do the walkways need attention or weeding?

General
Does the house need modernising?
Does the house need wallpapering or painting?
Does the house need new floor coverings such as carpet or laminate?
Does the layout of the house need to altering to make it suit the market place?
Do the internal walls need knocking down or new partitions need building?

The questions give a general idea of what a professional surveyor may look for in a property to obtain a valuation. The answers will also help in compiling a quote for the amount of work needed to get the house back on the market.

Renter Beware

Finding a decent apartment while you are settling down in your new environment can be a real headache, so here is a list that might help you with that process.

• You really need to take the time to understand the lease if there is one; don't let them rush you into signing so fast, ask if you can review it first, take it home, and if need be take it to a lawyer. However, it is important that you sign and initial in front of the leasing agent once you decide on an apartment.
• On the subject of leasing agents, if you encounter an unpleasant one, make note of a red flag because they represent the company and that's not acceptable behavior in any business setting. You should be treated with respect at all times and they need to listen to any questions or concerns you may have.
• Always inquire about a walk through. RED FLAG: When they tell you they do the walk through. That's when you walk away before you sign. What their standards are and yours may be on the opposite ends of the earth.
• If you do decide to let them do the walk through and you are not happy, contact the property manager immediately and try to rectify the problem or problems, try not to get too emotional but do stay strong on your concerns.
• A lot of apartments are becoming more lenient on allowing animals and so therefore you will encounter animal smells in the common hallways. This is disturbing, and a simple solution would be to have animal free buildings for those tenants who prefer not to encounter the mess. The same should go for smokers. This is another red flag.
• Do your homework on apartment complexes; visit their website, Google feedback right into the search engine. You will always find negative feedback and as well some positive. Only you can weigh what is really important when you read this information.
• If you do sign the lease and decide at the last minute you made a mistake, you will end up paying for that decision. In most cases, it's a 2-month break lease agreement in addition to the first months rent you already paid, so food for thought. More than likely you will get your security deposit back, but make sure what they tell you is in writing. If for some reason you cannot get your security deposit back, or only a portion of it, contact the property manager first, then the regional manager and demand a thorough explanation why and if you have been more than fair with them, they need to be fair with you.
• Stay on top of the progress and escalate if you have to the Regional Manager. Again, stay firm, but unemotional in all cases, sometimes it cannot be helped and if you get the right person, you should be satisfied with the end result.

This should serve as a guide to you when you are seeking to relocate to another city or state or just happen to be a first time apartment dweller. Good luck.

Money makes moving easier, among so many other things so if check out how to get a loan

 

Should You Sell or Hold Your Property Development?

Hold Property

For many property investors, the appeal of property development is the promise of creating enormous capital gain in a short space of time. Most people assume that to make money out of property development you need to sell the properties you develop. Is this a common misconception?

The decision of whether you should sell or hold the properties you develop depends on a number of things, including your financial position, the market conditions and the type of development you are undertaking. But primarily it comes down to your objective in doing the development in the first place. Some property developers aim to increase rental returns, while others seek to make a cash profit or simply to increase and unleash their equity. Developing property can also be a way of obtaining new property at wholesale prices. It's important that you are clear on your objective prior to starting a development as it can influence many aspects of the development.

People often sell properties they have developed because they think they have to sell to make money or "realise the profit". However, by refinancing you can still access the equity you have created. Why might this be a better option than selling? It comes down to the risks and costs associated with developing to sell. Developing to sell requires expert market timing to get the property cycle right. Plus, if you sell properties that you have developed you will likely have to pay Sales Agents Fees and Marketing (3-4%), GST on the Profit Margin (2% if a 20% margin), and Income Tax (as much as 9% if a 20% profit margin).

It's clear that if you develop and sell, transaction costs will eat away at your profit. For that reason, I believe developing to sell should not be the first choice in every instance. You could be far better off by hundreds of thousands of dollars by holding the properties. Many of the most successful property developers, such as Frank Lowy (developer worth $6 billion who has built a worldwide shopping centre empire) rarely sell.

So when should you develop and hold? The simple answer is when it is feasible. Depending on the type of development you do, you will generate either additional rental income over and above the interest costs OR you will generate additional equity. But preferably you will do both.

So when is the best time to develop and sell? Being a successful property trader requires focus, commitment and a lot of time. You need to do much more market analysis and it is inherently more risky as you are timing the market. To justify continual buying and selling, you need to generate high returns to warrant the transaction costs (agent fees, stamp duty, income taxes). You also have to be prepared to "landbank", which is common amongst developer, who may hold land for 10 or more years.

Depending on the project there may be an opportunity to develop and hold some of the project (e.g. 3 units of 6) and sell the rest to pay down some debt. Professional developers can make a lot of money developing and selling, but it is a full time profession. Most developers still hold some part of their portfolios for long term investment.

Facts about Property Management

Property management is the concern of many of us, taking into account the fact that our society is in continuous movement and change. Property management information is available not only in specialized magazines and research papers, but also online, on websites that have as their major concern study, market research, covering issues regarding marketing and leasing, land use and development, maintenance and other important subjects. There are also property management companies that offer their consultancy and assistance during an investment and management period.
The advantage of reading property management magazines is that they present both the academic and professional point of view. Besides, some of them are available online, too. Another advantage of property management magazines is that some of them are focused either on the national or international perspective regarding important issues. Property management magazines are a valuable resource for people who want to be informed about changes of this domain.
There are various online resource centers offering news and information about property management. You can find there information about property and real estate, tax deductions for landlords, frequently asked tenants concerning the legal or practical issues of tenants and landlords. Property management resource centers also offer useful tips for landlords and valuable details about usual issues. Tenant injuries is a subject discussed by online property management resource centers, pointing out insurance facts and landlord liability. There are also legal updates to previous information offered on the website so that the landlords would be well informed about recent changes.
Landlords may be amazed by the fact that there is property management software available. This property management software is of great help for landlords with a few rental units and for management of big properties. In this way, you can have your rental properties organized, benefiting from the smart Windows based software. This popular property management software reminds you of expiring leases, late rent, providing extensive reports in various categories. Property management is made easier and more accessible with simple software that provides necessary and valuable information in due time.
There are also National Property Management Associations focused on personal property and fixed-asset professionals. These associations can offer training, educational opportunities as well as certification programs, all of them concerning the subject property management.
You can find information and assistance concerning agriculture, industry property management. There are property management divisions concerned with some particular branches: real property, personal property and physical property. Property management can become easier with support, implementation and monitoring of procedures, regulations and policies for the management of real and personal property.
Property management companies have to deal with multiple responsibilities and aspects of management of ownership of real estate. These companies offer to negotiate and stabilize the relationships between landlord and tenant. They also manage income and activities involving expenses, repair, maintenance and other aspects of the construction and development.
Property management is much more than a matter of responsibility, awareness and information. It requires time, intelligence and witness, great attention to details, but also management qualifications.

Property related issues explained clearly at [http://propertymeet.info] Up to date property business and management factors that are affecting your monetary return.

Terms Found In Your Lease Contract

Many renters simply sign their apartment lease without reading the agreement in its entirety. We suggest that you understand the contract before you go ahead and sign on the dotted line. We have listed some terms that you will no doubt come across as you read your lease.

Please know that this in NOT legal advice. If you have specific questions about your lease, be sure and seek the services of an attorney. If you don't want to pay their high fees, you might be able to consult a local bar association for a reduced rate. You might even qualify for discounted services.

The Conditions

This will include the rental amount that the tenant will need to pay by a certain date. Usually if one party to the lease does not meet all of the conditions, the other party may be able to seek unspecified damages.

Guarantor

A guarantor is different than a co-signer. The guarantor is a party no on the apartment lease who will be responsible for paying the rent if the tenants cannot or will not. Usually the guarantor must make up to 5 times the rental amount per month. This guarantor usually will be needed if the original applicant does not meet the monetary requirements.

Wear and Tear

This pertains to the tenant receiving the security deposit refund. If the tenant moves out and there is "reasonable wear and tear", they should be able to receive their money back in full. But this term does not mean much as it is not very specified. Its always a help if the tenant can take photos when they move in the community. This helps to document any damage if the landlord decides to withhold part or all of the deposit.

Assignment of Lease

There should be something in the lease that says whether you can live in the middle of it. If assigning the lease to a third party is not allowed, then you will still be responsible for the payments to the leasing office.

Some apartments will allow you to sublease while others will not. You will have to look at the contract language to be sure.

Warranty of habitability

The landlord must provide you with a safe space to live in. The tenant should read the lease to see if there is anything that relates to interfering with the landlord's obligation. This might mean tenants cannot block the fire escape.

 

What is a “No Money Down” deal?

No Money Down

A “No Money Down” Deal means funding a purchase of a property by spending little or no money of your own. This means that you have little or no capital invested in the property, which is ideal for property investors.

To structure a no money down deal you must be able to find different sources of finance for a deposit, mortgage, repairs, legal costs etc. The source of the funds can be from a combination of personal loans, credit cards, mortgages, remortgages, gifted deposits and so on. If you have sourced a BMV property then you can even structure a deal whereby you end up with a ‘cash back’ after the purchase. You will need a good credit record to be able to find finance from several sources over a short period of time.