Archive for January, 2010

Renting Out Your Property – New Landlords

The credit crunch and subsequent sinking of the property market has brought reluctant landlords into the letting arena. Here is a guide of what you need to know as a new landlord.

If you can’t sell your house or if you don’t want to sell it at a rock bottom price especially if you’re not buying somewhere else then you may have to become a landlord. This scenario is not uncommon for those whose employment relocates or those who have new commitments outside their home area.

The tricky start is that you already have a property to rent. Professional landlords buy a property having researched the local area and know what their target tenants are: students near a university professionals near the city etc. However as your starting point is your property you will need to research what tenants are likely to be attracted to your house and then mould your property accordingly.

Contact your mortgage provider to check whether you need to switch to a buytolet loan or whether you can continue with your current mortgage. You will also need to notify your insurers who will need to change the policy.

Remember that you will need to cater for periods when your property is empty and you are not receiving the rental income to cover the mortgage. To cover void periods you will need to have an income of around 125 of your mortgage payments. This figure also needs to cover gas and electricity safety certificates repairs and maintenance.

You may need to be flexible on the rental payments it’s better to have good tenants at a slightly lower rate rather than an empty property or tenants that say they’ll pay but then don’t pay.

If you are redecorating your property to rent out make it neutral do not personalise it. You need to prepare your property to be run as a business. In your mind change the word “home” for “property”. It will help you become detached from your old home and help you run your property cost effectively.

If you are adding or changing fixtures do it properly and use good quality materials. People don’t want to live in shabby accommodation and remember that you are competing for a good tenant. Good tenants want good accommodation. The better quality fixtures will also last longer and so lower your maintenance costs.

When you choose tenants and if you are not using a letting agency you should vet your tenants or pay for the service through the National Landlords Association. Be sure to get references from tenants and check them.

Always treat tenants and potential tenants with respect: get back to their enquiries quickly and politely repair what needs repairing. Maintaining a good relationship with tenants is a business solution and makes the whole process less stressful and easier to manage. In turn however do not let your tenants pay rent late you need to have clear boundaries and once they’ve paid their rent late once it could easily happen again.

If you don’t want to manage the property then consider using a lettings agency which will cost you around 1015 of the rental income. However if you do this make sure you keep an eye on the agency and check that they are doing their job in getting back to the tenants as you would like them to. Check what the contracted tie in is as if you’re unhappy with their service you might then want to do the job yourself and do it according to your own standards.

You need to know the rules and regulations regarding health and safety insurance and tax. For tax you may need to use an accountant for the first year or so to know what you can and can’t claim for.

The key to renting out your home is to view your property as the tool for business. Look after it and attract and maintain good tenants. Do your homework be prepared to put some time and energy into the business and make it work.

About the writer:  Owner managed Atlanta apartments are the thing to have no matter who you are or where youre from. JAMCO Properties ensures that their clients get the best of what there is to offer in terms of GA apartments for rent at great rates thatll leave your piggy bank intact.

Renting An Apartment With The Homeowner In The Building

There are good advantages to having the owner live in the same building with the tenant. The property will be well maintained. Repairs will be prompt. Security will be tight. The owner will make sure the locks to the building are always closed and in good shape. The lawn will be cut on a regular basis and snow removal will be timely and extensive. The owner will expect that you will help to keep the property in good condition.

Overall a longterm stable relationship between a landlord and tenant based on mutual respect is what both parties are looking to achieve. Before you move in do not be afraid to ask lots of questions about how your occupancy will work. Most owners like a prospective tenant who feels comfortable enough to ask enough questions so that you both know exactly what to expect.

Set some mutually acceptable ground rules before you move in. One you should definitely bring up is whether or not the owner will enter your apartment before notifying you. A written lease that provides advance notification should address this issue. If the landlord does not want to use a lease or if there cannot be agreement feel free to back off from renting the unit.

Expect the owner to be a little nosy and very protective of the building. The owner will also be protective of you as their tenant. The landlord may make note of who comes and goes into and out of your apartment. At the same time the owner will not let unfamiliar people into the building or people you have indicated are not allowed to visit you. For example if you have teenagers you may welcome the landlord informing you of their negative activities in the apartment while you are away at work.

If the owner has an allergy to cigarette smoking or pet peeves such as loud music playing during certain periods of time this may present a conflict of interest. You may decide this is not a compatible renting situation.

The owner will expect the rent to be paid on time. This shouldnt really be a problem if you have rented before and are accustomed to notifying your landlord or property manager of late rent.

If you want to have a party in your apartment let the owner know in advance. Do not surprise the owner with a lot of strange people coming and going in the building. Consider your notification as a courtesy to your neighbors.

The owner may get to know a lot about your personal life. At the same time most landlords do not have a lot of time to get into their tenants business. Homeowners like their privacy too. Some of the same issues you may have as a tenant the owner may have as well. Open and honest communication before you move in will greatly decrease landlord and tenancy concerns.

In summary renting from a landlord who lives in the same building means that you share most of the values of the owner. Or you understand and accept their rules and behavior as it pertains to the property. It does not mean the owner is your parent nor does it mean you have to behave like a teenager going through growing pains. Rather the expectation is that both landlord and tenant have mutual expectations of apartment living and both are comfortable sharing the same building space.

About the writer:nbsp;nbsp;Carolyn Gibson a Certified Property Manager specializes in providing consulting training and due diligence in all operational facets of residential property management.

As the former owner of a property management company Carolyns firm managed conventional city state and federal government subsidized and nonprofit housing low income tax credit housing public housing condominiums and rooming houses.

Carolyns web site is www.synergyprofessionals.com. She is a contributing author on www.ezinearticles.com www.helium.com and www.searchwarp.com. Her popular book on tenant screening titled How to Pick the Best Tenant is available at www.Amazon.com.

Rent-Back Sales: Another Option In A Difficult Market

Theres no doubt that times are tough especially for those trying to sell their homes. Enticing advertisements like We Buy Ugly Houses can catch the eye of a homeowner eager to avoid foreclosure leading them to participate in a quick sale and rentback situation. Like any real estate transaction there are both advantages and disadvantages to this scenario and its important that homeowners understand all the ramifications before jumping into something that might not be as good as it seems.

WHAT IS A RENTBACK SALE?

A rentback sale general involves a quick sale of your home to an investment company that will then look for another buyer. While the company does this you may be allowed to stay in your home but you will need to pay rent. The rent is usually at market rate for your area but as your rental will most likely be shortterm you may pay several hundred dollars extra each month.

When you participate in a rentback sale its important to recognize that you may take a loss on the property. If you need to sell quickly and would like the advantage of being able to stay in the home for a short while after the sale a rentback sale could be to your advantage despite the potential loss.

WHO IS IT FOR?

If foreclosure looms a rentback sale might seem like a good way to buy some extra time. Todays economy means that many people are being forced to make hard decisions but if youve lost your job outspent your income or are planning a divorce it might be to your benefit to take a potential loss on your property in order to sell quickly.

Some parents might find an advantage to being able to stay in their home and allowing their children to finish the school year before moving. Moving is a stressful time and avoiding a midyear switch for kids can be a real benefit.

If youre considering building a new home a rentback sale gives you the cash you need to start building right away and the flexibility to stay in the home throughout construction giving you a cushion during those inevitable construction delays.

You might also find a benefit to a rentback sale if youre ready to start looking for a new home and want to be sure you have the cash on hand when you find the right place without waiting for your existing home to sell. If youre downsizing and dont expect to need as much money for your new place a potential loss might be offset by the freedom to move quickly when you find your new dream home.

WHAT ARE THE DISADVANTAGES?

There are some important issues to be aware of when considering a rentback sale. First and foremost understand that you are selling your home to an investment company whose main priority is to find another buyer. When that new buyer comes along your rental period will most likely come to an abrupt end leaving you little or no time to find a new place to live. Its important to determine what type of notification youre entitled to before a new owner takes possession.

In a rentback sale the house is often sold asis meaning the buyer agrees to take on any necessary repairs. However what if something happens while you are in your rental period? Are you responsible for those repairs? Is the investment company responsible or the new buyer? Be sure to address these issues upfront to avoid legal problems later on.

IS IT RIGHT FOR ME?

Only you can determine if a quick sale and rentback is right for you. Take time to learn everything thats involved and dont be afraid to ask questions. Even if youre feeling a bit desperate to sell your home a regular sale may still be best for you. Its a big decision so take your time and do it right.

About the writer:  Paul Burrows a leading UK property developer and a leading internet marketer with his years of experience in overseas investment properties has come up with his new site http://www.globalchoice.co.uk which provides detailed information about true investments that work overseas. For more information log on to the website Properties for Sale in Thailand