Choosing a property management company to oversee your rental can seem like a daunting task. How do you effectively vet a property management company?
For one thing, you know that the relationship will most likely be a long-term, ongoing one, so finding a solid property manager is important. Additionally, when entrusting one of your largest assets to someone, you’ll want to make sure they’ll manage it properly, and will be able to help you get the best returns possible. It’s a tall order!
But while there’s no shortage of property management companies; it’s important to remember that not all companies are the same. While a great manager will make life easier, and will be able to help you get the most out of your investment, the worst of the bunch will allow unscrupulous tenants in, charge exorbitant fees, and cause havoc with your rental.
But don’t let this scare you off! Fortunately, finding a solid property manager isn’t as difficult as it may seem. As when sourcing tenants, your search for a qualified property manager starts by knowing what to look for. To help you in your quest, here are a few things that you should ask in order to find a property manager that’s not only qualified –but excellent.
Check Out Their Credentials
A reputable property management company should have a number of credentials and accolades to their name. Once you have a prospective property management company lined up, head over to their website and see what you can find. You shouldn’t have to search too hard; if they’ve received recognition in a specific area, they should have that prominently displayed on their website.
See What Their Fees Are Like…Read more
Last year was the strongest year yet for home flipping, with gains on flips in 2015 hitting $102,400 per flip on average, up from $98,500 in 2014 and significantly higher than the peak of $90,900 during the last housing boom, according to a report from real estate brokerage Redfin.
Unlike flipping, what if you purchased the same home with the intentions of holding onto it as a long term rental? People always need a place to live and why not have a steady flow of income, a nice tax write off and equity that someone else is creating (tenants paying down the mortgage).
To make this as passive as possible you should have a property manager take care of all your rentals. If you're already a landlord please ask for a FREE Rental Analysis.
This list of the top 10 neighborhoods for home flippers has a lot do with that lofty rise.
This townhouse only had two bedrooms and no loft, and desperately needed a dedicated workspace & playspace. Angie was struck with inspiration — why not build a loft?
She had her husband and father-in-law build this clever, creative loft and made it into a little nook for working and playing. Now Angie and her daughter both have a little place of their own to get away and color, play, and maybe even get a little work done. Here are some photos of the building process, and one more of the final result:
According to Robert Berger of U.S. News and World Report, rental properties can provide a meaningful source of consistent income as part of your retirement planning and portfolio. He claims, “Buying a property or two could provide enough income to allow you to retire sooner.” However, you’ll need to ensure your investment properties will provide steady, positive cash flow throughout your retired life. You don’t want a rental property to become a drain on your retirement resources! Here are some things to consider before diversifying your retirement portfolio with investment properties:
Explore your Financing Options. In a post-financial crisis world, those with good credit and a steady work history can purchase rental properties through a variety of finance vehicles. One should consider the use of a portfolio lender (like Colony American Finance). These lenders have greater flexibility and can act outside the terms imposed by Fannie Mae or Freddie Mac. That being said, lending requirements are understandably stricter than they have been in the past. Lenders are now requiring increased down payments (25% or more) and more stringent credit and liquidity profiles.
Get Familiar with the Tax Implications. Rental properties offer some valuable tax benefits. To name a few, you can claim depreciation on rental properties (but not the land), reducing your tax burden year by year. Depreciation, along with the interest expense on a mortgage, may enable you to minimize taxes for some time. Keep in mind, however, that you’ll have to deal with depreciation recapture down the road If and when you sell the rental. In many cases, rental properties operate at a tax loss. One of the hidden benefits of being a landlord is that these “losses” can be deducted on your tax returns (up to $25,000 a year). There are some requirements that must be met, so be sure you understand the rules. The tax implications of owning rental properties can be beneficial, but are also complex. Seek out the help and advice of a tax professional before you delve into the world of residential rental investments…read more
Can’t afford an apartment in San Francisco? So-called “co-creative housing” is offering a bunkbed and lots of company. But is it legal? “It’s decorated nicely, looks clean,” she said.
Other pluses: a communal kitchen, well stocked. And three bathrooms per floor, though Heidi found them not always spotless.
“You still have those typical roommate issues but times that times 30, because there’s 30 people sharing a house,” Heidi said.
The minuses: Small bedrooms.
“So the four-person bunk room is pretty tight. I mean its small, the bunk beds are backed up to each other,” Heidi said.
Even her two-person bunk room she says was tight. “It’s not like I would sit in my room and hang out. There’s a bunk bed and a desk, you know? And it’s small,” Heidi said.
Heidi told us most of the residents are in their 20s, from out of town, many from out of the country.
“I think it is just one of those, I need to get to the city and this is going to be the first stop. And then I’ll find something else,” she said.
The tenants seemed happy. But is it legal? Chief housing inspector Rosemary Bosque said bedrooms have to be 170 square feet to accommodate four adults.
Bosque says her inspectors can’t go in to measure unless there’s a complaint from inside. And so far there hasn’t been. “Whenever we do an inspection, it’s a consensual inspection,” she said.
As for using the building for what appears to be a hostel? “That is really a policy matter that I would leave then to the board and to the Planning Department,” she said.
“We do have a complaint, an active complaint on that property which we are investigating,” said Scott Sanchez with the Planning Department.
Now THIS is efficiency at its finest.
Oh popcorn ceilings, bless your heart. Your day has come and gone. Yesterday’s standard in residential construction is today’s eyesore. Such is life in the world of home design.
Are you the owner of a popcorn ceiling? If so, don’t fret because the Internet is chock full of DIY popcorn removal tutorials. We even covered a nifty alternative to traditional popcorn ceiling removal which is generally less messy (and more attractive) than the old way…read more