real estate investing: Don’t Trip Over Dollars to Pick Up Pennies
- 03/15/10 11:21 AM
I was reading some Tweets the other day on the landlord forum. One Tweet in particular stood out. Essentially, the individual, who was a tenant, had just found out that the landlord was charging him for the cost of heat. His Tweet asked, among other superlatives, “Do you know how expensive heat is?” I almost fell off my chair laughing. Yes, I know how expensive heat is. That’s why I never pay for utilities in my rentals. It is that simple. I never invest in a property that does not have separate utility meters for each unit. Every tenant needs to … (2 comments)
real estate investing: Location, Condition, and Upgrades
- 03/08/10 06:03 AM
Three important considerations for your next rental property are location, condition, and upgrades. Rental property is not immune to the location, location, location mantra of real estate. In fact, it may be more important with your rental. For example, you may want to avoid buying a rental on, or backing to, a busy street. When the tenant goes into the backyard or opens their windows at night, they do not want to hear the roar of traffic. Something else that is often overlooked with investment properties is future maintenance. If the exterior is brick or stucco, that might require less long-term … (0 comments)
real estate investing: Just Doing My Job
- 03/02/10 06:10 AM
Just got finished with our team meeting. I noticed one of our rental properties, which has been listed for a little over seven days, received very little interest over the last week. When I enquired further, I found out that the price set on the property was $200 over market. “How did that happen?” I demanded.
“The owner wanted to try for more money,” was the response from my agent. “In fact, the owner wanted to list it $500 over market, but I talked her down.”
This situation is not unusual for first time landlords. They are convinced that … (0 comments)
In most of the country the MLS is the go to source for marketing a property for rent. However, in my market of Santa Clarita, California, there seems to be a small hesitation in the property owner’s mind as to the benefits of the MLS. Here are my top five reasons for using he MLS.
The MLS feeds Realtor.com, and Realtor.com in turn syndicates this … (4 comments)
real estate investing: A Versus B
- 12/09/09 09:37 AM
A professional property manager will bring you quality tenants; and attracting good qualified tenants is the name of the game! Moreover, a good tenant is more likely to become a long term tenant. Having a long term tenant reduces the vacancy rate. And reducing the vacancy rate increases your profit dramatically. At SCV Leasing we believe that there are two types of tenants out there: "A" tenants and "B" tenants. "A" tenants are motivated, ready to move, and they are qualified. They have good credit, stable jobs, reserve funds, and a security deposit. "A" tenants are less likely to try and … (1 comments)
real estate investing: I’m Not Craigslist, and This Isn’t Let’s Make a Deal
- 12/02/09 03:44 AM
We had an owner that had a large, lovely, home. The problem was, they had the house stuffed full of their possessions. The "office" was piled literally to the ceiling with paper. The dining room, which normally seated eight, was occupied by a huge table and set for sixteen. The master bedroom was completely filled with furniture. Each and every nook and cranny of that house was filled. Every prospective tenant we took through there couldn't get passed the owner's "stuff." "I don't understand," said the exasperated owner, "don't they know I can have all this stuff out of here in … (0 comments)
real estate investing: Me Love You Long Term
- 11/20/09 03:28 AM
Our normal lease term is 1-year. Sometimes we are approached and asked if the owner would consider a multi-year lease at a reduced rate. I'm not against a multi-year deal; but what assurance do you have that the tenant is going to stay in the home for the entire term. I would advise that if you do go for a reduced rate, on a multi-year contract, that you include some language in your contract like: "Landlord and Tenant have entered into an agreement wherein the original rent amount of X has been reduced to Y based on a longer time period … (0 comments)
real estate investing: Common Pitfalls of the Self-Managed
- 11/17/09 02:27 AM
If you have ever considered managing your own property, please take with you the following list of pitfalls that many self-managed landlords fall into. If you need advice on any of them, please call us. We will always be glad to consult with you at no cost. Not running their rentals like a business. Not fully screening applicants. Not reviewing State landlord/tenant laws. Failing to have a written agreement. Hiring the wrong contractors and repair people. Not enforcing late rent policies. Not inspecting your property on an annual basis and automatically replacing smoke alarm batteries and filters. Entering a property without … (1 comments)
real estate investing: Hey Tenants, Stop Wasting Your Valuable Time!
- 11/05/09 09:10 AM
Your first experience finding a rental was most likely in you early 20s, where the criteria was price, proximity to university or work, and price. It involved a lot of time in the classified section of the local newspaper and phone calls, which may or may not have allowed you to see the properties in a timely manner. But you were young and had the time. But as we all mature, our criteria mature, making the search more challenging. Your criteria may now involve proximity to good schools, two work locations, transportation networks, safe neighborhoods, allowance of pets, as well as … (0 comments)
real estate investing: Is There Really Security in a Month-to-Month?
- 11/03/09 08:31 AM
We have recently been approached by various owners that want to rent their properties out on a month-to-month basis. Most of these owners have been "stung" by previous tenants. It's possible that the tenant wasn't properly screened; but it's also possible that bad things just happen. Either way, the owners think that a month-to-month arrangement would work in their best interest. The theory goes, if I don't like them, then I can get rid of them. From a professional standpoint, here are a couple of things to consider. First, finding a quality tenant is time consuming. We advertise, show property, prepare … (0 comments)
real estate investing: You Can’t Handle the Truth
- 10/27/09 08:37 AM
You can't handle the truth. That's exactly what I feel like yelling out when my homeowner wants to be present during a showing. Renters are a particular subset of the overall real estate market. Unlike some buyers who are looky-loos, there are very few to no looky-loos in the rental market. Those people want to, or need to, move. If they don't want to rent the home we are showing them, then I need to get them into another home, and fast. The one way to make them not want the home they are seeing right now is to have the … (1 comments)
real estate investing: Water, Water, Everywhere and Not a Drop to Drink
- 10/13/09 07:04 AM
Two days in a row, two water leaks in a row, both in the ceilings of units we manage. Both issues also in condominium/townhome type structures. The HOA does not typically cover anything inside the units, so what happens next? First, be thankful that you hired a professional property manager to handle this situation or you would be living the headache of the self managed. Second, make sure that you have a home warranty plan in place well before your tenant takes possession. One of the homes had such a plan, but the owner delayed purchasing the plan until the tenant … (0 comments)
real estate investing: Getting Into the Investors Mindset
- 10/09/09 09:45 AM
With a general decrease in home values in our marketplace, many owners are renting out their homes because they "can't afford to sell." As rental property owners, when we decide to rent out our homes, we need to reset our minds to that of an investor. An investor is more detached from the asset, and the home you are renting out is an asset. The asset needs to be attractive to the potential renter. As homeowners we often overlook many of the smaller items. Perhaps the paint is a little old, maybe a drawer in the kitchen gets stuck, or if … (9 comments)
I was reading some Tweets the other day on the landlord forum. One Tweet in particular stood out. Essentially, the individual, who was a tenant, had just found out that the landlord was charging him for the cost of heat. His Tweet asked, among other superlatives, “Do you know how expensive heat is?”
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