Posted by Teresa on September 2, 2010 under Landlord Tips | 
Realtors know that holding an open house is a great way to get lots of exposure for a property. They also use open houses to find potential new clients, often to the homeowner’s chagrin. But there are plenty of success stories of homes selling because of a well-run open house.
So why don’t more landlords adopt this idea? It’s certainly worth considering if you have a rental vacancy.
There are pros and cons to hosting a rental open house:
- You save time by showing the rental to multiple people at once;
- But you might not be able to spend quality time with each potential tenant;
- An open house can cause a sense of urgency, when a potential tenant sees others interested in the property;
- Spending too much time with Potential Tenant A could mean missing out on selling the rental to Potential Tenant B;
- You could waste time with nothing but “tire-kickers.”
Qualify Potential Tenants Prior to Holding the Open House.
Pre-screen over the phone. Ask callers responding to your for rent ad where they presently live and work. Tell them the rent, the security deposit, and any other important lease-qualifying information. Let them know you will be conducting a thorough tenant screening on all applicants. Then, if they’re still interested, let them know you’ll be holding an open house and they’re welcome to view and apply to lease the property then.
Repeat this process for the next several interested callers. You may have a dozen people show up for your open house; you may have two. No matter—you’ll still save time showing it to multiple people at once.
Getting Ready for a Rental Open House
Make sure the property is at its best. Thoroughly clean the walls, floors and ceilings. Pay close attention to the bathrooms and kitchen. Make sure the tile gleams and the floors are spotless. Put a plant on the counter.
Inspect the property from the outside. Pick up trash. Trim low-hanging tree limbs. Cut the grass, and plant some flowers outside to add to the curb appeal.
If you have some extra furniture, place a chair and table in the living room and a bed in the bedroom, so potential tenants can envision their belongings in the space. Wash the windows and turn on all the lights.
Print up flyers and leave them where visitors can find them. Include photos and a list of the basic information as well as amenities offered with the property. Don’t forget to tell potential tenants what’s nearby that they might enjoy: parks, coffee shops, grocery stores, or bike trails.
Allow open house visitors to wander through the space. Don’t crowd them, but let them know you’ll be close by if they have any questions.
Be sure you have lease applications on hand—and don’t let any qualified potential tenants leave without filling one out! If anyone is super interested, offer to collect a security deposit and first month’s rent to hold the property, and inform them it will be refunded if they do not pass your tenant screening.
People might be more receptive to viewing your property through a friendly open house than in a one-on-one showing, so why not consider hosting one?
Posted by Teresa on April 13, 2010 under Landlord Tips |
Becoming a landlord is not for everyone. A few of the attributes one needs are patience, people skills, and good business practices—and there is still no guarantee it’ll work out.
But if you’re thinking about buying your first rental property, the same factors that most landlords consider before diving into the business apply to you, too. Here are a few reasons to consider investing in rental property:
You want a diversified investment portfolio. Ask your financial advisor (preferably a professional, not your brother-in-law!) how rental property would fit into your investment mix. Diversification can help you protect your assets.
You want additional income. Most rental property owners are middle-class working people who decide another income source would be beneficial. It takes time to manage a rental property business, but you can do it part time and keep your day job. And who knows? If you’re successful, you can always work into making your rental business a full-time venture.
There are tax advantages. Again, check with your tax professional, but real estate is one of the most favored investments, tax-wise. A few benefits are deductible expenses, depreciation write-offs, and favorable capital gains tax rates. Writing off depreciation alone can offer a large tax break against annual cash flow.
In the long run, real estate holds value. Despite the housing bubble the US recently experienced, depreciating home values and foreclosures, over the long term, rental properties have held their value through all the boom and bust housing market cycles. Of course every business has up periods and down periods, and rental property is no exception. Think long term, and be cautious.
Investing in rental property can help you in retirement. Done well, and with a thought-out strategy, real estate investment can augment your retirement fund. As with any investment, the earlier you begin, the better your results will be. Think about holding properties for 20—30 years, not 5. Think tortoise—not hare—when it comes to making decisions about rental property as an investment.
The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining tax advice applicable to your situation.
Posted by Teresa on November 9, 2009 under Housing Trends |
Coldwell Banker, the nationwide real estate firm, released a report on the most affordable college towns for investors. From Syracuse, NY, home of the University of Syracuse, to Athens, GA, where the UGA Bulldogs play, to the University of Notre Dame’s South Bend, IN, the comparison was limited to big football schools and homes of 2,200 square feet, four bedrooms, and two and a half baths. 120 markets were surveyed.
The results show that in 62% of the markets surveyed, real estate investors can pay less than $250,000 for homes of this size. Clearly, college towns offer great affordability for rental homes. Plus, the culture and ambiance of a college town makes these markets even more appealing to renters.
Some interesting facts that the study highlighted:
• The PAC-10 is the most expensive real estate conference, with an average of $747,180 for 4BR/2.5B/2200 SQ FT homes.
• Most affordable is the Mid America conference, where the average comparable home costs just $182,222.
• The ten most expensive college markets have average home prices ranging from $568,317 in Seattle, WA (University of Washington) to $1,489,726 in Palo Alto, CA (Stanford University).
• If those prices are too rich for your investing pocketbook, look to the middle portion of the US, where the ten least expensive college towns in this survey lie: Akron OH, Muncie, IN, Ann Arbor, MI, Ypsilanti, MI, Fort Worth, TX, Tulsa OK, Denton, TX, Houston, TX, Bloomington, IN, and Kent OH. Average prices for the four-bedroom comparison home in these markets are in the $122,000 — $166,000 range.
The president of Coldwell Banker called college markets a “best-kept secret” of the real estate industry. And, real estate pros have been investing in them for years. If you’re looking for your next investment opportunity, a rental home in a football-friendly college town just might be it!
Posted by Teresa on April 9, 2009 under Landlord Paperwork and Forms |
Keeping files in perfect shape is an elusive goal for most of us. But for landlords and property managers, a reliable record-keeping system is a must. If your strengths lie in areas other than document tracking, you may want to consider a property management company, rather than managing income property yourself.
Rental property owners who manage things themselves will benefit from strong record keeping skills. Start with a basic filing system, with separate sections for each rental property you own. Your local office supply store will be full of options, from simple accordion folders, boxes, and plastic tubs, to locking filing cabinets. When you outgrow your simple system, it’s a good idea to invest in fireproof, locking cabinets.
All property ownership documents, such as purchase offers and contracts, appraisals, loan documents, and insurance policies, should be accessible and protected. Store these items separately from the rental paperwork for the property. Keep accurate records of any incidents or claims against your insurance coverage.
Track income and expenses manually, or on spreadsheets. Or consider one of the many financial management or property management software packages available. Software varies in price range and features; check out a few to see which works best for you; or ask around to see what other landlords are using. Reports, correspondence templates, income and expense tracking, and other features may make a software package a good investment for you. But even if you track all your expenses electronically, paper receipts are still required for tax purposes. Keep them in expense folders for each property.
You’ll also want folders for all rental and tenant documentation. These include maintenance records, tenant applications, rental agreements, legal notices, and tenant correspondence. You never know when you’ll need proof of notices, complaints, or maintenance. If you are involved in a court dispute with a tenant, your good record keeping will definitely pay off. You don’t want to be in a situation where it’s your word against your tenant’s!
Rental property records should be maintained for three to five years, depending on the state where you live and/or own property. Property purchase and capital improvement records should be kept for as long as you own the property. Any records pertaining to injuries, evictions, or other legal matters should be maintained indefinitely.
Setting up and maintaining an efficient record-keeping system will pay off again and again. If you find yourself in court with a tenant or in an IRS audit, you’ll be grateful that your records are well organized!
For more landlord resources, including everything you need to know about
tenant screening, turn to
E-Renter.com. You’ll know that you have the best possible tenants when you
prescreen.
