Archive for category Landlord Guide
Landlords and Tenants; What to Repair and When to Renovate
Posted by Top Home Loans in Investing, Landlord Guide, Property Management, Real Estate on April 13th, 2009
Why is it Important to Renovate and Repair
Renovating and repairing a property is common to perform when maintaining a property. It is not uncommon to replace of repair floors, walls, electrical, and plumbing in units. It is important that these common upkeep methods are done many times through the lifetime of the property. This is important for a few reasons. First of all, by renovating a property, the property will have a new look and feel to the property. If a tenant thinks that a property is new or fresh, then the potential tenant will be willing to pay more money for the property per month. Using white or a bright color can make the property seem larger than it actually is.
The second reason to renovate is to maintain or increase the intrinsic value of the property. The return on investment for properties is based on how much you had initially invested in the property, and what the property was eventually sold for. The difference between those two numbers is the return. A property can obtain a higher return on investment if it is able to be sold for higher when it is marketed.
A property maintains and grows in value when renovations are completed on the property. These renovations are important to maintaining the upkeep in the property and keeping it marketable. If you wait until when you are selling the property to complete the renovations, then the damage might be already done on the property.
When can I Renovate if I Always have Tenants?
Finding time is difficult if you always have the property rented out in full. It is difficult to get in and get out to even get any minor repairs completed. If a landlord is entering an apartment, usually the tenants will not feel at ease. It is best to hire a contractor if you need to complete renovations while a tenant is living in the unit. If a tenant is moving out, then take this time to invest in renovating the property. It may take a few months to complete; however, the results will be worth the effort. If renovations are a necessary, then your municipality may have laws to evict the tenants so that you can complete the necessary repairs and renovations.
What is best to renovate or repair?
When a person is viewing a property to rent or own, the main selling places of the area include the washroom and the kitchen. These two areas of the house are critical to the sale or lease of a property. To retain the best value, then consider putting the most work into these areas. In a rental unit consider putting tile and hardwood floors in the entire unit. Carpets go neglected by clients and can easily grow mold. When painting consider white colors and colors that are bright. Choose gender neutral colors. Also, make sure that the house is in a clean upkeep. Getting rodents or bugs in the house can be a nightmare. Make sure to review the property in full from time to time to make sure everything is in working order. Gutters must be cleaned and roof work must be completed annually. These items are critical to complete because if they are not, then they can cause the house to depreciate faster.
When renting a residence, make sure that you take advantage of the tax advantages of owning a rental unit. Make sure that you take the time to put the effort into making the property stay in a good upkeep. The better you take care of the property, the better return you will receive at the end of the day.
Welcome back!
Landlords and Tenants; How to Market for a Tenant Successfully
Posted by Top Home Loans in Landlord Guide, Mortgage Advice, Property Management on April 11th, 2009
Hiring a Property Management Company
If you are looking to have a unit filled and looked after with no effort at all because you are too busy with other things in your life, then this is the way to go. They will do all the marketing of the unit, they will respond to any request for repairs, they will deal with all legal requirements in terms of the property, they will show the property, and they will maintain regular upkeep. They will do all this for a fraction of the rent price.
This method is extremely effective if you live a long range from the property, or if you are too busy in life to take care of the property on your own and need a helping hand. Most property management firms are quite reasonable in what they charge, and what you get back in return is extremely important. If you valuye your time over looking after the rental property, then this is the way to go.
Marketing the Property Yourself
Many apartment seekers use online apartment postings to find a dream unit to rent. This is because it takes the least amount of time to search a lot of units to find the perfect one to rent. Someone can search by criteria to find a dream unit in a limited amount of time. This is extremely important for a tenant because it takes a lot of time searching units for a tenant to find a dream unit. This way it is effective to post using popular internet websites like: Craigslist or Kijiji.
These popular websites have been even merged with other sites, like Google Maps, to make the search even easier. Padmapper has mashed up Craigslist with Google Maps to make find a property easy for a perspective tenant.
When posting a listing make sure that it includes the following information and is presented in such a way that it attracts the tenants that you are looking for:
- Price of the listing
- Exact property address of the listing
- Number of bedrooms
- Square footage of the rental unit
- State of upkeep of the rental unit
- Details on other tenants at the location
- Details on the type of tenant that you are looking for
- Details about the surrounding amenities
- Many pictures showing the unit in full
With these details all provided upfront, then you will have less people calling about the unit and not ending up renting. Make sure that you provide potential tenants up front full disclosure on the property, and you will complete the transaction much more efficiently.
By either hiring or successfully marketing your property, you can save yourself a lot of time and money. The revenue that you will earn of marketing a rental unit yourself is great, so it would be a good idea to learn the skills to be able to market your property successfully.
The stronger you are able to market your rental units, then the quicker you will be able to achieve full rental income for longer amounts of time. You will also be able to find the tenants that you are looking for and maximize on your rental income. The better your postings, then the more rental income that you can expect to receive for your unit. A strong online posting and presence, will give you much larger results in terms of dollars at the end of the day.
Landlord’s Guide – A Guide to Finding the Optimal Tenants
Posted by Top Home Loans in Landlord Guide, Mortgage Advice, Property Management, Real Estate on April 8th, 2009
If you are a new or seasoned landlord, it is always a good idea to update your skills for tenant selection. The tools that become available to help you choose the optimal tenant become larger and larger as technology advances. Only limited tools were available years ago; however, the tools available have grown so much that it is a chore to keep track of all the upgrades.
Initial Applications and Pre-Approving
When someone first puts in the offer to lease your property, the first step is to collect some basic information. Some of this basic information is does the tenant have pets, do they smoke, the current employer of the tenant, previous addresses, and other basic information. There are plenty of free applications available off of the internet for download.
The following is an example of a lease application.
Once you have received a series of applications, then it is best to review the applications to see if there are any applicants that can be easily removed. Once you have reduced the amount of potential tenants, then it is best to start checking initial references. It is also a good idea to check the references of the references. For example, if someone claims to work for a particular company, then for most company’s, you can contact the HR department and confirm that the person actually works there.
Once you have successfully spoke with enough references, then it is time to investigate with even more in depth tools.
Amazing Tools to get Background Checks on Tenants
With the advent of the digital age, it is almost scary how much information can be found on the internet. The first thing that you should check is a persons credit report; unfortunately, you will not be able to see there credit score; however, you will get some information that can only be found on the credit report. The first thing is the potential tenants current address. Make sure that this matches the tenants current address and the reference that you spoke to is the landlord for that address.
The second thing to review is the ratings. All the rating should be R1 or I1 rating. If they are anything less, then the potential tenant may have some financial difficulties. Also, make sure that the balances on their accounts are low. If they have high balances, then it could indicate that live off of credit. Also, make sure that they have no outstanding collections.
Google and Social Networks
Google, Facebook, and other social networking sites are a great way to get even more background information on someone. By googling someones name, most of the time it will provide you with some very important details about the person you are allowing to live under your roof. Many times when you google someones name, you find out details that you should know, or that the person has never told you. Also, by reviewing a persons Facebook profile, this can tell you a lot about the individual.
If all these items check out and the tenant still seems like a great person, then you may have just found the perfect tenant. Someone who is clean, quiet, pays there rent on time, and is a hard working individual is the characteristics that you are looking for. Using these tools, it should allow you to find the perfect tenant that much easier.