Posts Tagged ‘rental property managment’
Though parents are ultimately responsible for keeping their children safe in their rental home, as a landlord, you can help make your property more kid-friendly. Take a look at these suggestions.
Make sure you meet code
Banisters and balcony railings are two places where children can meet deadly accidents. Check the code in your area to make sure that the banisters and railings on your property are an acceptable distance apart.
The EPA Residential Lead-Based Paint Hazard Reduction Act of 1992 requires disclosure of lead-based paint in all residential property built before 1978, whether purchased or leased. Besides the legal requirement, it is nice to be able to tell a prospective family that the paint on your property is lead-free. (If you need to remediate, be sure to contact a professional who will follow EPA guidelines.)
Outside the property
To help keep little runners safe, exterior stairs and walkways — foot-bridges especially — will be safer with the addition of non-slip strips.
Take care of large areas of darkness around the house, especially on walkways, with adequate lighting, perhaps with motion-sensitive activation.
If your property has a garage door, ensure the door will “bounce back” to keep a child from being crushed. (This is a fairly typical garage door feature.)
Make sure that any playground equipment is properly constructed with adequate padding and proper drainage.
If your property has a pool, make you know that the pool itself (including the drain) and the surrounding fence meet all local requirements.
Indoor safety
In bathrooms, install non-slip strips to the shower and bathtub. Also, to protect children from being scalded, adjust the water heater so that it is at 120 degrees, or below.
Though most housing laws are local, property owners are universally required to install working smoke detectors. Put them on the ceiling outside of bedrooms, the main living area and kitchen. Carbon monoxide detectors should also be installed, though all states or cities don’t yet require them.
To prevent fires or electrocution, be sure that rooms have adequate outlets so that a single outlet doesn’t get overloaded. All switch plates and outlet covers should be secure and without cracks or chips that little fingers could jam themselves or something else into. Ideally, parents will install socket safety plugs to keep children from playing with them.
Windows and doors
If there are blinds on the windows, be sure they don’t have looped cords, which can easily choke a child. Use cord wraps next to each window to keep cords out of children’s reach.
All the windows in your property should have screens, with child safety latches on the inside, as well as latches on the windows themselves. Window bars should swing open or break away.
Check that property doors open and close well and that locks work on entry doors. If you have a multi-unit property, make sure that any public doors require a key for entry or are otherwise monitored.
These are just a few of the things you might do to prepare your rental property for greater child safety. Think how impressed your prospective tenants will be to know that you thought ahead with a child’s well-being in mind.
Rentals.com
In previous years, it was embarrassing to say you rent. Today, in most cases, it is embarrassing to say you own. According to the US Census Bureau, the U.S. homeownership rate has fallen about 1.5% over the past year (from 66.9% to 65.9%). For every 1% drop in the homeownership rate, it represents approximately 1 million new renters entering the rental market.
In some cases, homeownership rates have fallen below some European countries. Italy for example, has an 84% homeownership rate. Along with Spain with a 78% homeownership rate.
High unemployment rates, difficulty in getting financing, changing demographics and increased foreclosure rates are adding to the deceleration of homeownership. In 2011, there was a 4% increase in the amount of renting households compared to 2010.
In the United States, homeownership is the least in states like California (56%), New York (54%) and Washington at (64%). States with the highest homeownership rates are Michigan (75%), Mississippi (75%), South Carolina (75%) and West Virginia at (79%).
Rental vacancy rates dropped to 5.6 percent in the third quarter of 2011, down from their record high of 8 percent in 2009, according to Reis Inc. This increase in rental demand is putting upward pressure on rental prices throughout the United States. As more foreclosures and new apartment buildings enter the market, the rental rates should stabilize and reach equilibrium.
Renting is the new buying and this trend doesn’t seem to be slowing down anytime soon.
RentBits, Rental Property Search
This 3 bedroom 3 bath home with office offers a spacious floor plan with high ceilings. As you walk into this home you notice hard wood floors, to your left you have an office complete with french doors. Next to your office you have a formal dinning room. Enjoy cooking in a chefs kitchen kitchen with granite counter tops, lots of counter space, with large pantry and dark wood cabinetry, a large breakfast nook is also next to the kitchen with great views from the table. Relax in a comfy living room with fireplace. Off the living room is a large Master bedroom with a walk out to the deck. Master bath with shower and tub. Attached to the master bath is a large walk in closet for getting ready for the day. Also on the main floor is an additional full bathroom and bedroom. Easy access from the attached 2 car garage to the main floor. Downstairs you have a wet bar with full refrigerator, Also a huge warm family room complete with fireplace. An additional large bedroom is also downstairs. Another full bath is downstairs as well. Enjoy the mountain views on the wrap around deck great for barbequing. All yard maintenance and up keep is provided at no cost to the tenants. Close distance to Chatfield Reservoir for boating, camping, and swimming. Close to C-470. Short distance to restaurants and schools. This property is available full furnished included in the rental price.
Rent: $2,200
APPLY NOW
Freddie Mac recently released the results of its Primary Mortgage Market Survey®, showing mortgage rates easing to new all-time record lows for all products covered in the survey helping to keep homebuyer affordability high. The average for the 30-year fixed mortgage rate has been below 4.00 percent for six consecutive weeks.
The survey concluded that the 30-year fixed-rate mortgage averaged 3.89 percent, with an average 0.7 point for the week ending January 12, 2012, down from last week when it averaged 3.91 percent. Last year at this time, the 30-year FRM averaged 4.71 percent.
The 15-year FRM this week averaged 3.16 percent with an average 0.8 point, down from last week when it averaged 3.23 percent. A year ago at this time, the 15-year FRM averaged 4.08 percent.
Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week, with an average 0.7 point, down from last week when it averaged 2.86 percent. A year ago, the 5-year ARM averaged 3.72 percent.
Results showed that the 1-year Treasury-indexed ARM averaged 2.76 percent this week with an average 0.6 point, down from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.23 percent.
“Mortgage rates eased slightly this week to all-time record lows following mixed indicators in the labor market,” says Frank Nothaft, the vice president and chief economist of Freddie Mac. “Although the economy added 1.6 million jobs in 2011, which was the most since 2006, the unemployment rate remained historically elevated.”
For more information, visit www.freddiemac.com
Once you have invested in a rental property, the responsibility of maintaining and running the property can quickly become overwhelming. For many landlords, the logical solution is to hire a property management company to oversee their rental property. But is this the right decision for you? Here are several issues to consider.
- Do you have what it takes to run a rental property? If this is your first foray into property management, you could find yourself in over your head. Collecting rent may sound easy, but in reality, it can be more like a painful extraction. If you are not familiar with rent collection, you can quickly find that your tenants are taking advantage of your inexperience. In addition to rent collection, day-to-day maintenance of a rental property can be tiring. If you are not operating your property as a full-time job, you may not have the time to address tenant concerns and repairs in a timely manner. This may make hiring a property management company an excellent choice.
- Where is your rental property located? If you have purchased a rental property near your home or place of business, you’ll be able to keep an eye on the property. However, if your rental property is far away, you’ll be loath to travel to it to deal with the inevitable problems that arise. If you’re unable to check on the property on a regular basis and handle any issues that may arise, finding a local property management company can mitigate these concerns.
- Does the property need frequent visits, repairs, or attention? If your rental property is a veritable money pit, you can find yourself spending more time there than at your regular job. If you’re getting constant requests for repairs to a property, having someone who can devote the majority of their time to your property is very helpful. The more units you have, the more you can benefit from a professional maintenance worker or property management company.
- What services do you need? If you’re looking for a small amount of assistance, such as monthly rent collection, a full-service agency may be too much for your needs. Since you’ll need to budget in the fees charged by a property management company, this will cut into your profit margin. Therefore, instead of hiring a full-service company, you may be better served by a part-time property manager or specialist who can handle the most frequent problems. On the other hand, if you do need a complete solution, make sure that the company can provide you with all the services you require. For example, if you need someone who is capable of light maintenance work in addition to rent collection, keep this in mind while you shop for a property management company.
- Is the company trustworthy and friendly? Before hiring a property management company, do thorough research to ensure that it is reputable. If you are an absentee landlord, this is extremely important. You will be relying on this company to collect rent and represent you and you interests. Check references and talk to other landlords who have worked with this company. Make sure the representative of the property management company is level-headed and diplomatic. Just one bad interaction between tenant and rent collector can destroy goodwill that can take years to restore.
The Market for Residential Property Management today…. Executive Home Rentals
It has been well-documented that there is a shift in the marketplace from home ownership to simply renting. For the renter, the limited commitment to a specific location and the losses that many have experienced as prior homeowners has caused a national shift in how individuals look at the investment in home ownership. There has been an increasing demand for rental properties and rental rates have experienced a 5% per year growth rate over the last few years.
In addition to these changes in behavior, large players in the housing market have identifi ed this trend and are actively working to provide more opportunities for investors to tap into the rental real estate market. The Federal Housing Finance Agency (FHFA) is working with Freddie Mac and Fannie Mae on an REO Rental Program and Bank of America recently announced that they are developing a similar program to sell foreclosure properties to investors for the purpose of having those properties rented. Residential property management and single family property rentals are
amongst some of the fastest growing real estate opportunities in America. Record numbers of defaults, foreclosures, residential downsizing, and family consolidations have created a huge demand for innovative Property Management services.
In 2011 Executive Home Rentals (EHR) brought innovation to the field of real estate. You’ve probably heard about their unique “Lease Your Listing Program,” designed to save homeowners, renters, real estate investors, and real estate agents time and money…well they have taken this concept to a whole new level. Combining there team’s 30+ years of property management and franchising expertise, this past December, they launched a franchise system that caters specifi cally to individuals with a real estate licenses or background. is exciting franchising opportunity gives individuals the training and support for greater probability of success, features an affordable start-up price, plus the ability to open for business in approximately 60 days.
EHR has developed a complete property management solution whereby it provides its franchisees with a turnkey
operation, from the collection of tenant rent amounts via EFT, to preparing reconciliations for each property owner’s invoice monthly, and remitting payment monthly back to all the property owners. Franchisor and selected approved vendors provides services to the entire system. Understanding that maintenance of the property represents a large portion of the time spent by all property management companies , EHR has contracted with a national maintenance service company to provide 24/7 support and coordinate repairs and maintenance on behalf of property owners and there franchisees. By the Franchisor effectively managing the flow of funds and the maintenance management, franchisees can focus their time of leasing new properties to tenants and contracting with new property owners for their inventory.
If being in business for yourself but not by yourself and utilizing a turn-key business model sounds like something
you’re interested in, then you owe it to yourself to learn more now. They have 24 Colorado franchise territories to award, to individuals that want to get in on the action of this rapidly growing home rental market.
Feel free to contact Jon Rivera President of Executive Home Rentals at info@homesirent.com or at 303.988.9999, with questions or comments.
The stars are aligned to make 2012 an extraordinary year for rental income. The decline in homeownership is translating into rising rents and the multifamily apartment sector, though booming today, was late catching the wave. If it weren’t for the new investor-driven single family rentals in many markets, rents would be zooming even higher than they already are.
The New Normal in Homeownership Creates Demand
Changing attitudes towards homeownership have been pushing up rental demand since 2004, before the housing bust. The number of homeowner households declined by 805,000 from 2006 to 2010 and the number of renters rose steadily for six consecutive years, increasing 3.9 million during that period, according to Census data. The net increase of in 2012 alone was 1.4 million new rental households, a 1.5 percent decline in the national homeownership rate and a 4 percent rise in the number of tenants.
Much of the rental demand is from younger households that are postponing or even canceling homeownership in favor of renting. The decline in the homeownership rate has been sharpest for those household heads under 30 years of age. Owner rates have fallen by 4.4 percent (to 21.9 percent) for those under 25 years of age and by 7.0 percent (to 34.7 percent) for those aged 25 to 29 years, according to Freddie Mac.
Multifamily Struggles to Keep Up
Multifamily rental housing can’t keep up with the demand. Census Bureau reported that third quarter vacancies for rental housing were only 9.2 percent, 1.4 points lower than a year ago and .5 percent below the first quarter. We haven’t seen a 9.2 percent vacancy rate since 2003. A Reis Inc. survey of professionally managed buildings in metropolitan markets found vacancy rates stood at 5.9 percent during the third quarter, the lowest since 2007 for that class of apartment.
Apartment developers and investors are a conservative lot and they took a wait-and-see attitude towards the rapid and dramatic changes in the rental market. Now, however, things are popping. In November starts of residential developments with two or more units saw a 25.3 percent increase from the previous month , the construction of apartments, town houses and other multifamily developments, evidence that rising demand for rental housing has encouraged developers to begin building again. Newly issued building permits, a gauge of future construction, climbed 5.7 percent in November from a month earlier to an annual rate of 681,000, a 24.3 percent increase from November 2010 and the highest rate since March 2010. The overwhelming majority are for multifamily units.
Even so, developers can’t keep up. Two-thirds of developers surveyed in the third quarter by the National Multifamily Housing Council said construction activity is underway, and 20 percent are breaking ground on new projects at a rapid clip. The other 47 percent reported an increase in pre-construction activities-acquiring land, lining up financing, getting building permits-but not much actual construction yet. Yet even with this increased activity, more than half (54 percent) think new development remains considerably below demand.
Single Family Fills the Void
In the dorky world of real estate economics, single family rentals are the newest kid on the block. Just recently have databases serving the residential investor tracked single family apart from multifamily, but it’s very clear that in many markets today single family rentals are taking up the slack. From 2005 to 2010, single-family rentals grew at 21 percent versus just a 4 percent increase in total housing units, according to Zelman Associates.
Single family demand is closely linked to foreclosure activity in the hardest hit markets as families displaced by foreclosure prefer to rent a single family home rather than crowd into an apartment. In hot foreclosure markets attractive to investors, such as Nevada, Arizona and Florida, single-family rental units have increased 48 percent, while apartment units were virtually unchanged. According to the Census Bureau, since 2004 there are 3.60 million homes built for sale that are being utilized as rental today.
2012 Rental Outlook
The national median rental rate rose to $1,004 in the third quarter, up from $981 in the third quarter of 2010, according to Reis Inc. Although overall rent growth will vary greatly by metro, on a national median rent increase will come in somewhere between 2.5 to 4.0 percent for 2011, depending on whose data you use.
However, 2012 could be even better. Fannie Mae is currently projecting that average asking rents on a national basis could experience an annualized increase of between 2.0 percent and 3.0 percent. Others are less conservative. The National Association of Realtors forecasts multifamily rents to rise 3.5 percent next year. Axiometrics’ research forecasts a national rental growth rate of 5.5 percent. Christina Aragon, Director of Marketing and Customer Insights at Rent.com, predicts the vacancy rate will hover at a only 5 percent and rents will explode. Now, Aragon expects rents to spike 7 percent or so in each of the next two years.
As we all know, there is no such thing as a “national” real estate market. Numbers like those cited above are merely estimates of national medians across hundreds of local markets. Relying on a national real estate forecast to predict prices or rents in your market is like using a national weather forecast to tell you whether it will rain in your backyard this afternoon. The big picture may or may not be relevant to your market situation.
Local Market Rental Outlooks
However, the good news is that many of the hottest markets for investors, rents are going to the most. Increases will likely top the 10 percent mark annually for the next couple of years, according to John Burns Real Estate Consulting quoted in CNNMoney. In San Diego, rents will rise more than 31 percent by 2015 and in Boston, they may jump between 25 percent and 30 percent. Seattle rents will climb 4.5 percent next year and 6 percent in 2013.
A number of metro areas have actually had double-digit effective rent growth. High-density, west coast metro areas such as San Francisco with 14.8 percent and San Jose with 11.7 percent year-over-year effective rent growth rates are not totally unexpected. Charlotte with 7.2 percent rent growth; Miami with 5.6 percent; and even Denver with 6.6 percent effective rent increases, are less predictable examples. Axiometrics expects San Jose, San Francisco, and Austin to remain among the top 10 markets in effective rent growth in 2012 and Las Vegas is expected to become one of the most improved markets in 2012.
Local economies, especially jobs, will drive local demand. Over the next three years, Local Market Monitor expects rents to rise 18 percent in Houston, 15 percent in Grand Rapids, 25 percent in Rochester, 16 percent in Dallas and 19 percent in Tulsa.
Landlords increasing rents by 2 to 4 percent this year may find tenants won’t be surprised. Consumers expect home rental prices to increase by 3.2 percent over the next year, according to a recent Fannie Mae survey. Some 41 percent said rents will increase next year, 48 percent expect rents to stay the same and only 6 percent expect them to fall. The November numbers showed a slight retreat from October, when 43 expected rents to rise and 47 expected them to stay the same.
“Most Americans expect no improvement in their personal financial situation in the next 12 months and will likely remain wary about undertaking the significant financial obligation associated with homeownership until their view of their income, expenses, and job security heads in a more positive direction,” said Doug Duncan, vice president and chief economist of Fannie Mae.
By Steve Cook, Bigger Pockets Blog, December 28th, 2011
Looking to rent your Colorado home, but don’t know where to start?
Executive Home Rentals Property Management Company will:
- Find you a qualified tenant
- Advertise your home throughout CO and the US
- Complete background checks on all applicants
- Maintain your home as if it where ours
- Handle all tenant and maintenance requests 24/7
- Collect and disperse all rents electronically every month
For a your FREE Home Rental Analysis, Call 303-988-9999
Executive Home Rentals Property Management System was developed to eliminate the the two biggest hassles of being a property manager: Maintenance & Repair and Rent Collection.
Maintenance & Repair:
- All property maintenance and repair requests are handled 24/7 by our Customer Service Representatives
- Maintenance and repair vendors are thoroughly screened and managed by our Maintenance Division Experts with no liability or expense for the franchise
- All maintenance billing and accounting issue are managed by our Business Services team
Rent Collection:
- Convenient monthly electronic fund transfers that automatically collect and disburse rents from tenants to owners
- All financial accounting and homeowner statements managed by our Business Services team
Residential real estate is not rocket science. We know that this housing crisis is:
1. Explainable – bad lending, mad speculation, wild expectations, government meddling
2. Isolated – bad mortgages, negative equity, strategic default, government meddling
3. Temporary – demand for housing always catches up to supply eventually
Anyone with any experience and perspective will agree that this market will recover over the next 10 years, but what will this particular recovery look like? Since the root of the problem was unprecedented, the solution might be as well.
My belief is that renters are going to solve the housing crisis.
Home ownership rates have fallen by a few percentage points, which has translated into more than four million new rental households in just the past few years. According to the Census, 1.4 million of those were added between July 2010 and June 2011, showing that this trend is accelerating.
As a result, rental rates are growing at more than 5% per year, and this trend is also accelerating.
As a result of this, investors are pouring capital into American housing with a long-term mindset, kicking this trend into hyperspeed.
This crisis will not be solved by enticing home buyers. Their confidence is waiting for unemployment to come down and government to act responsibly, which could take a while.
But investors are confident right now. Why? Because they see the big picture. Rental demand equals stable cash flow. So what can be done to encourage them?
How about eliminating archaic waiting periods for investors who want to buy foreclosures? How about eliminating waiting periods for investors who paid cash and want to tap it with a refinance? Today they have to wait months to put that money back to work. Why not eliminate the overall bias against investors in FHA, Fannie Mae and Freddie Mac and require big down payments to make it safe to lend, and lend.
Better yet, keep your eyes peeled for a private sector player to seize this opportunity to create America’s first national investor mortgage brand. The estimates are that half a million investor loans close every year, and who owns that niche? No one.
The Martial Arts teach you how to use the weight and momentum of your opponent against them (or so they say in the movies). This is the same thing. This drastic increase in rental demand is a by-product of the foreclosure crisis. Use it against the crisis by turning it into positive cash flow investments for those willing to be confident and take a risk in this environment.
Burn off that shadow inventory and create housing options for newly minted renters, which will, in turn, stabilize rental rates, and everybody wins. Good credit renters and buy-hold investors will be the heroes at the end of this saga.
Greg Rand is CEO of OwnAmerica.com and former managing partner of Better Homes and Gardens Rand Realty.
Are you ready to transition your rental home from the old year to the new? Read on for tips on gearing up for a holiday celebration and getting next year off to a clean, new start.
Cold-weather preparations
As you prepare to host family and friends for the holidays, make sure that your rental home is up to the change in weather. Help keep out drafts with weather stripping at exterior doors and windows. Switch ceiling fans to a clockwise rotation so warm air that rises to the ceiling is pulled down for you to enjoy. Also, check out your chimney before you begin to use the fireplace for the season. (You may need assistance from your landlord or rental management company for this.)
Decoration check
Before you get ambitious with your holiday decorations, you’ll want to check in with your landlord to make sure it’s okay to hang garlands and lights, if they are part of your holiday season. Also, find out if there are any concerns about putting out large lawn decorations, in case your neighborhood is restrictive about such things. Once you’ve got the all-clear, have a ball using the space of your rental home, inside and out, to celebrate the holidays just the way you enjoy.
When the celebration’s over
Once house guests have gone and the holiday celebrations have passed away with the old year, it can be hard to find the energy to put everything back in order. Your first step, as with any organizing project, is to put everything back where it belongs. If you don’t already have them, purchase bins to store artificial wreaths, lights and all of your holiday decorations safely away until next year.
Consider buying storage containers for particular items in your decorative arsenal. An ornament organizer, for example, has separate storage spaces for each fragile piece so that you don’t have to worry about whether it will survive for next year’s tree. Wrapping material cases let you store gift paper in one compartment, ribbons and bows in another, and cards in their own special place. And special dishware can go into china keepers to be safely stored until the next feast.
Recycle what you can
To start the new year in the green, try to repurpose as much of the holidays’ byproducts as possible. If you have sections of wrapping paper that survived the gift-giving frenzy, roll them around an empty paper towel spool and fasten with a paper clip to be used next year. Gift bags can also keep on giving. Keep yours in good shape till next year by folding them flat and storing smaller bags inside larger ones. Why not save ribbons and bows, as well?
Removing the tree
Don’t put your holiday greenery in the garbage can! Check your local government Web site, scouting organizations or non-profits for information about ways to recycle your tree. Often, municipal yard waste pick-up is expanded to include trees for a specific period of time. If you can’t get curbside rescue for your drooping tree, check for a post-holiday chipping service, often found at home improvement stores.
There is a lot to do to see out the old year and prepare for the new one in your rental home. Get started now so that you’ll have everything you need to enjoy the holidays fully — and then put them neatly away when they’ve passed!
Rentals.com
As an owner of a mortgaged rental property, how do you know when it might be a financially beneficial time to refinance?
Know your goals
Before you set out to get refinancing information, decide what it is you’re looking to accomplish. Do you want have more cash available by making a lower monthly payment? Would you like to pay off your property faster? Do you want to use the equity in your property to make improvements (and raise rents) or earmark money for the purchase of another property?
Also, consider how long you plan to keep the property. If you’re planning to sell in three years, for instance, investing in a refinance effort — with its associated closing costs — might not be the most profitable move.
Questions to ask
You can make a better decision between many loan options once you’ve determined the most important aspects of refinancing for you.
As you make specific inquiries about loans, compare the details carefully. Determine the details of the rate and the term of the loan you’re interested in. The most important question is whether the interest rate, the length of the loan, or the combination of the two will lower your monthly payment or your pay-off amount, thanks to less accrued interest.
Be sure to assess whether the rate is fixed or variable. With a variable rate, what is the ceiling on the rate, if any? Read the terms and conditions of the loan carefully before you sign. A borrower can find himself in a bad situation with a low introductory rate that turns into a rate far beyond what was originally budgeted for.
You’ll also want to find out about closing costs. If there are some (and there usually are), can they be rolled into the refinance? And, if so, is your new monthly payment still low enough to make the deal worthwhile?
Consider the economy
Though there is no crystal ball to predict economic ups and downs, there are indicators that can help you make informed decisions. In a downturn, mortgage loans can be harder to get approved, potentially creating a higher demand for rental properties. If a refinance of an existing property would make it possible for you to make improvements to that property or buy additional rental properties to fill new demand, it might be the right choice for you.
Shop around
Though you can compare rates online through a variety of sites, consider having a professional do the footwork for you to offer advice on the many different kinds of loans available. It helps to have someone point out the pros and cons of individual loans and give insight on what might be the best match for your investment goals.
Refinancing can help make a rental property you’ve been considering selling viable again or give you the equity to buy an additional one. Shop carefully, read the fine print and you may soon have more money in your pocket even after paying the mortgage payment on your rental property.
Rentals.com
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