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When is the best time to invest in property and become a Landlord? What if the interest rates were to go up, or for that matter, go down?

In the short- or medium term there will be fluctuations in property prices. They may plateau or even decrease at times. Seasonal changes may also come into play, for example in winter the property market may be slower. However, it is a simple fact that there is a general rise in property prices in the long term.

So, the best time to be come a landlord is: As Soon As Possible. An oft repeated adage in property investment is – do not wait to buy property, buy property and wait.

But what about the interest rates?

If the interest rates are rising, fewer people enter the property market, which results in an increase in rental demand. The experienced landlord sees this as an opportunity to expand his/her property portfolio. The landlord may also be able to increase monthly rentals, provided they stay market related. This means the shortfall between rental income and the mortgage and other expenses will be reduced.

More properties will become available on the market due to buyers, who overextended themselves initially, and can no longer afford the increased mortgage repayments. This can be an ideal time to buy property at a good price. The landlord need not concern himself with a temporary reduction in property prices – the property investor does not take a short-term view.

If the interest rates were to go down, more people can enter the market as buyers. This may mean a lower demand for rental property, especially at the high end of the market. When you become a landlord, your main focus should be on entry level properties, for which there will always be a good demand for rentals. read more…

Renting a property can be a tedious task. A task that can either make or break any small landlord. Ensuring that ones properties get rented quickly and efficiently is the key to generating and sustaining healthy profits. For this reason, five tips for renting a property quickly and painlessly are discussed in the remainder of this article.

1.) Send out an “Intent to Return” form – One of the most powerful techniques, sending out a form asking current tenants if they intend to stay another year allows the landlord to prepare for a possible vacancy. If feasible, send the letter two months before the current tenant’s lease is due to expire. If the tenant is planning on leaving, this will give the property manager plenty of time to find a replacement.

Including a self-addressed stamped envelope along with the letter ensures that the tenant will mail it back within a reasonable time period.

2.) Give Incentives for Staying – Offering the current tenant a rent-deduction for a month or two shows the tenant that the landlord cares. Everyone loves a little extra money, especially those renting a home.

3.) List your Vacancy on the Web – If the local community has a web site that allows people to post listings for their rental properties, take advantage. Times are changing, and computer savvy people would rather browse through properties online than spend hours driving through local neighborhoods. These sites are especially useful and popular in communities that have local colleges and universities.

4.) Offer Referral Money – If the tenant is leaving for sure, offer them money if they can locate a new tenant. This is a win-win situation because both the tenant and landlord receive a financial benefit. read more…

As every property owner knows, the single most important moment of your interaction with a prospective tenant is during your walk through. It is the time for your property to shine and for the prospective tenants to fall in love with the place, just like you have. But no house or apartment building is perfect. Every living area, no matter where, has positives and negatives to it. So how do you exemplify the positives and downplay the negatives without misleading your tenants? Here are a few tips on wowing tenants during their walk through.

Many large apartment buildings simply choose to keep one suite empty at all times and have it as the “walkthrough suite”. Of course there are small problems with that idea if the suites in question don’t all conform to the same floor plan or square footage, but if they do, then this can be a great tool. This way, you can decorate the suite with furniture, art on the walls, appliances and even personal touches like pictures or delivery menus stuck to the refrigerator door. You can let the tenants walk around while you point out the suites amenities and explain to them that their suite will be exactly like this, only bare.

If you are managing a building where floor plans vary too much or it is not in your best economical interest to keep a perfectly rentable unit empty just for show purposes, there are small touches you can do to make a suite more welcoming. Try to keep the walls a nice, neutral color so that people aren’t instantly off-put by the space as soon as they see it. Also, visit the suite before you bring tenants there and do some last minute cleaning up and dusting/cleaning, just in case anything was left behind after the last tenants moved out. Open up any blinds so that as much natural light can come into the unit as possible. Change any lightbulbs that need fixing and make sure everything that comes with the apartment, such as a fridge or stove, is in perfect working order. read more…

As anyone who has invested in real estate can tell you, it’s a dog eat dog world out there. It doesn’t matter if you are trying to rent out a single family home or if you own a large apartment building, the competition is fierce and in the right economic circumstances, it can get downright nasty. But there are some things that have been proven to work to attract renters by the hundreds. Let’s take a closer look.

The first thing you need to do is to gauge the local real estate market and how much inventory is available. If the market is completely saturated and there is tons of inventory available then you’re going to need to get creative when it comes to attracting new renters. But if the market is tight, you probably won’t need to do anything more than place a simple ad in the newspaper and you’ll have renters flocking to you. You can gauge how clever you’ll have to be depending on the state of the local market.

They say that the quickest way to a man’s heart is through his stomach. That’s why a big, old-fashioned barbeque is one of the best ways to attract people of all kinds to your property. A small ad in the local paper followed by some flyers that can be mailed out or slid under doors advertising your open house and BBQ are a great way to attract people that might not have noticed your property otherwise. On the down side, you’re bound to get a number of people that are only there for the food and are not serious about renting from you, but you have to take the good with the bad.

Another good way to use clever marketing is simply offer something that no other property in your area does. If at all possible, you can make a comprehensive list of every amenity that surrounding buildings in a 5-square mile radius offer and then make a second list of amenities that are affordable that you could add, and from then on, push that one thing to the forefront of your advertising. One of the most desired amenities these days in a wireless Internet connection free throughout the entire building. Many businesses like coffee shops and most hotels offer this and it costs surprisingly little to set up and maintain. You’ll also appeal to a higher-end clientele who would need an Internet connection on a daily basis for work. read more…

Playing the real estate game has made more people more money than almost any other industry in America. However, those that have been successful have learned how to protect their personal assets and property while maintaining a strong investment portfolio. Keeping investment properties in your own name can lead to legal problems if there are any issues concerning them. These kind of issues arise when renting properties and can be disheartening as well as financially straining. For this reason it is a good idea to organize a company or business to deal with your investment properties exclusively.

The best way to set about this is to start a land trust. A land trust protects not only your financial assets but the actual properties as well. If you are only renting a single property or a part of your actual home then this step may be a little drastic for a single property, but if you are planning on owning several properties then it is something that you may want to investigate. The process of forming a land trust essentially conceals your ownership from public record, with the added bonus of protecting your land assets from any judgments and or asset claims.

Another thing that is essential for successful renting of properties is a detailed contract that clearly states all the terms and conditions of the rental and what happens in any situation where the terms and conditions of the contract are violated. Make sure that the contract clearly and concisely defines these terms, ambiguous language can be a real downfall if the contract ever comes into question. Taking the time to ensure the protection of your assets and interests is perhaps the best investment you can ever make when establishing a presence in the world of real estate. read more…

Do you own rental property? Are you a real estate investor? Have you had problems getting your tenants to pay the rent? This article will cover some important policies that you need to conduct the financial business of collecting residential rent.

Rent pays the mortgage and the expenses of a property, even if you lease a single-family house. If you are an investor, a monthly positive cash flow is critical to owing investment property. Therefore, collecting the rent is a major part of your property’s success. Collecting rent is a business, because it is what pays for the long-term maintenance of your building. It should be your priority. You may believe that you have your current collection efforts under control. Still, as long as you rent apartments, at some point in time, you will have a rent collection problem.

Today, there are strong state laws that govern, restrict, and outline how, why, and when you can collect your rent. For example, many rent control laws dictate how much rent you can charge, and the methods by which you can collect your rent. Evictions for non-payment of rent can be avoided if an owner develops and follows a few basic policies and procedures. The more consistent you are in maintaining your policies, the better your rent collections will be paid monthly and on time.

My advice is to review your expectations about how and when the rent is paid before you give your tenant the keys. Even if you use a lease, there is no substitute for an eye-to-eye discussion about how you want your property to be treated, and when the rent should be paid. It is important to have a meeting of the minds before you commit your apartment to a person or family that may intend to violate your rules. read more…

Buying an apartment building is certainly a serious matter and requires a lot of time, knowledge of the minutest details and other property implications to decide on the best possible deal. As a rule, though, apartment buildings are usually substantial business deals, whether in the case of selling or buying. The recent boom in real estate has been attributed by some largely to apartment buildings. Buying apartment buildings require careful thought and analysis in order to ensure that you get the result you want out of your purchase. Historically booms are often followed by busts, so buyer beware in buying or selling whole buildings, just as in most other markets.

There are several things to consider when buying an apartment building; of these utilities is a particularly important part. For example, if the apartments do not have individual electric meters then you may have to pay all the electricity bills which is not an ideal scenario when renting out a place. In this case, if you do not want to install electric meters. You may include the electricity charges in the rent itself and therefore charge a higher amount. Of course if the people kept on rent realize that they are not specifically being asked to pay for the electricity used then they may simply misuse or overuse it deliberately or even unconsciously. And this can cause your electricity bills to be particularly high and therefore can result in reduced financial results in some months.

The apartments also have to measured before buying an apartment building. There are less takers for very small apartments. Also, the number of rooms in an apartment may determine the odds of getting new tenants. Typically, the higher the number of rooms, the more are the chances of successfully renting it out. The location of the apartment building has to be taken into account as well. If it’s located nearer to important structures such as schools, hospitals, businesses or public transport points, then the apartments will become much more appealing. read more…

Things to Know

1. The General Contractor or the person that the Building Permit was issued to must make all inspection requests.
2. Building Permit Cards must be posted and building plans must be available at the jobsite or the inspection will not be performed and a penalty can be charged.
3. Permit Fees are based on the valuation of project defined as labor, materials, plus profit
4. If the project is large enough a plan review will have to be completed by the building inspector

Who are They

The BDI inspects approves and issues all permits required by code for new construction and for repairs and additions to all public and private buildings. They assure safe building standards for the general safety and welfare of us all. When Do I Need a Building Permit Building permits are required when any structural change or major alteration is made or for new construction. Normal maintenance doesnt need a building permit.

Here are some common examples, although this list is not complete:
1. New structures
2. Enlargement of existing rooms
3. Porches, decks, and retaining walls
4. Anything involving structural beams, joist replacement or bearing support
5. Foundations and footing repair, underpinning or shoring up of a structure
6. The conversion of basement or attic space to living quarters
7. All new fences except the replacement of existing fences
8. An entire new roof, when roof work is not replacement of like material

When Don’t I need a Building Permit read more…