Posts Tagged contractor
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 13, 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.
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The Professionals you Need with your Home Purchase
Posted by Top Home Loans in Mortgage Advice on October 27, 2008
When making the huge decision of buying a property, it is something that you won’t want to do alone. You will want to make sure that you enlist a team of seasoned professionals to help make sure that you are making the correct decision. You will need to analyze the people you want to help you to make sure that you are getting what you want from them.
The Real Estate Agent
The most important player in the home purchasing process is the realtor. The real estate agent will also be paid the most out of all the people that you deal with, so make sure that you select a strong real estate agent for the process. The real estate agent’s job is the following:
- Help you to find the house you are looking for.
- Draft and complete and offer to purchase.
- Negotiate the mortgage on your behalf to get you the best possible deal.
- Inform you details about the neighborhood and research the neighborhood.
- Arrange and complete the appraisal and inspection on your behalf.
Make sure to ask the realtor a lot of questions before enlisting a realtor. Some real estate agents will charge a fee to the buyer and some will receive commission from the seller. A good method to identify successful realtors is to look for the ones that are experienced, wealthy, and effective. A well-versed realtor should be able to walk you step by step through the process with ease. They should, also, be able to field any questions that you have with ease.
The Lender or Mortgage Broker
The lender or mortgage broker plays a very important role in your new property. If you haven’t completed a pre-approval before signing an offer to purchase, then consider finding a lender that fits your needs. Some excellent places to find a good lender is by doing the following:
- Ask a friend, family member or relative where they had got their mortgage from.
- Search the internet or check in the Yellow Pages for mortgage brokers or banks.
- Contact the local association of mortgage brokers.
The lender is going to be with you throughout the course of your mortgage, so you will want to pick one that suits your needs, provides you with the options that you are looking for, and can provide you with the service that you are looking for. The lender will also play a second role of providing you with financial advice. Also, a good lender will provide you with the details of what you should do in the mortgage process. The professionals will set you up with a no stress mortgage and make the whole process easy and painless.
The Lawyer/Notary
You will need a lawyer to complete the mortgage process. The lawyer will ensure that there are no liens against your house, and that your house is free and clear so that no one else may make a claim to your property. They will, also, review all the documentation with you to confirm that everything is clear to you before you enter the agreement. It is best to enlist a lawyer to review the purchase agreement with you before signing it. The lawyer will give you peace of mind to make sure the entire process runs smoothly. Legal fees can vary widely based on what needs to be completed.
Some details that you ensure about your lawyer before hiring includes:
- The Lawyer/Notary should be fully licensed.
- They should be local and understand all the local rules and regulations surrounding the mortgage.
- Should have realistic and acceptable fees.
- They speak in a language that is easily understandable.
The Home Inspector
It is a highly suggested thing that you should get the house appraised before you commit to purchasing a property. You should make sure that this clause is included in your purchase agreement. A good real estate agent will make sure that you complete an appraisal before committing to the purchase of the property. Don’t be forced into closing on the property within a short time frame or without appraising the property.
The home inspector will thoroughly review the property in full. the inspector will tell you what needs to be repaired, replaced and what is unsafe. The inspector will complete a report that indicates everything that needs to be modified and give approximate costs of the repairs.
All inspections should show the following details:
- Doors and Windows
- Roof and Outside Walls
- Attics
- Foundation
- Plumbing Systems
- Electrical Systems
- Heating and Air Conditioning
- Ventilation
- Septic Tanks, Sewer, and Wells
- Insulation,
- Detached buildings
- All lot issues and Landscaping
- Overall review of the integrity of the property.
- Review of all common areas if appropriate
Unfortunately, there is no legal requirement to have a home inspection completed when purchasing a property. Also, there is no generally accepted accreditation when choosing a home inspector; however, in most cases, your realtor should have a relation with several professional home inspectors. Home inspections can cost around $500 depending on the size of the property, and make sure that when you get the home inspection report, that it looks professionally completed.
The Insurance Broker
When making a purchase of a property, the lender will require you to get property insurance. This is required because it protects the investment for both you and the lender. Should something unforeseen happen to the property, then you will not have to worry about being responsible for the replacement of the property.
Another important insurance that the lender will suggest is mortgage life insurance. This insurance is designed to protect you and your family in case one of the borrowers passes away unexpectedly. If one person dies, then the rest of the family will be responsible for the mortgage payment in full. This is a great way to protect yourself against unforeseen emergencies. Speak to your lender about this coverage.
The Appraiser
The appraiser is an important part of the mortgage process. This will help you to determine if you are paying too much for the property or if you are getting a good deal. You can hire an independent appraiser for approximately $250-$350, depending on the neighborhood. The appraiser will review the valuation of the property to confirm the true market value of the property. The appraisal should be an unbiased estimate at how much the property is worth. The appraiser will analyze the property against comparable properties. The appraiser will also analyze the property to determine how much it would cost to replace the property.
Your real estate agent can help you find an appraiser that suits your needs.
The Builder/Contractor
If you are planning on purchasing a brand new property, or you need immediate renovations to a resale home, then you will require a builder/contractor. The following are some elements your should keep in mind when enlisting this individual:
- Visit other projects that firm has completed.
- Check the companies references for satisfied customers.
- Ask if the firm is part of a local association.
- Search the company on the internet for reviews.
If you are completing a custom home, then you may want to hire an architect and make sure that all the details of the contract are in writing and verrified by a lawyer before any exchange of funds is conducted.
Make sure that all your contracts are specific, reviewed by a lawyer for verification and confirmed.
Once you have associated a team of experts, then your property purchasing experience will be a lot easier and you will have a lot less stress. If you hire the right people, then they will do the hard work for you, while you will be able to relax instead of being stressed out.