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Finding the Perfect Rental Home

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Finding the perfect rental home can feel like a daunting task. With so many factors to consider, it’s easy to get overwhelmed. However, by following a few key steps and utilizing available resources, you can streamline your search and find a place that meets all your needs. Read the tips below to navigate the rental market effectively and find the perfect home for you. We are here for any questions you might have — it’s a LOT to manage, and we are your team to guide you through so the journey can be exciting, not daunting. 

Whether you’re new to renting or rethinking your current living situation, the process of searching for a rental home can be time-consuming. Roughly one-third of all Americans rent, and while many of them are in early adulthood, many are also families, empty nesters and seniors. Fortunately, there are rentals for all household types and budgets. But to make your search smarter and more efficient, work through the process following these steps:
STEP 1: Determine what you can pay
STEP 2: Brainstorm the features you’re seeking
STEP 3: Map your day
STEP 4: Choose your rental type
STEP 5: Tackle the application and approval process
Follow these five steps to find a rental home that’s the right fit for your budget and lifestyle.
STEP 1: Determine what you can pay.
Before hunting for a rental, draw up a budget and take a hard look at where your money is going. If you’ve got some time before hitting the market for a new rental, run the numbers using services such as GoSimplifi, Mint, Yodlee, moneyStrands, LendingTree’s MoneyRight or HelloWallet.
Generally speaking, it’s recommended that most people spend no more than 30 percent of their income on housing costs. Does that seem doable to you, factoring in debt, commuting and grocery costs, savings and other expenditures? Regardless how you feel about the 30 percent recommendation, many landlords specify income limits — like that your annual income be a specific multiple of monthly rent, or that your rent shouldn’t exceed a specific percentage of your monthly income (say, 28 percent).
Keep in mind that in addition to rent, you’ll need to budget for utilities (unless your landlord covers some or all of them), cable and Internet, and other potential extras available to renters such as parking, storage and coin-op laundry. And that’s in addition to your fees for moving and furnishing your home — which, in some cases, could require special furniture (say, long curtains and room dividers in a loft with tall ceilings, patio furniture for a balcony or house with a deck, storage accessories, etc.) to make the place livable.
STEP 2: Brainstorm the features you’re seeking.
Beyond a basic bedroom and bathroom count, ask if there are other “nice-to-have” versus essential features:
  • Do you want a patio or deck, or access to a backyard or shared outdoor space?
  • Do you want a fireplace?
  • Do you need a full bathroom, or would a shower do?
  • If you’re a foodie, do you want a gas stove in the kitchen?
  • Will you be setting up a home office, and do you need electrical outlets or a nook within one of your home’s rooms where you can place your workstation?
  • Would you be willing to live on a ground floor, use stairs or take your chances on street parking?
And consider your compromises:
  • Would you give up some space and a yard in the suburbs in exchange for a smaller, close-in place that had a park across the street?
  • Would you live with a roommate in order to tap a pricey but trendy neighborhood, or would you rather fly solo somewhere quieter?

STEP 3: Map your day.
No, really — do it. Cross-reference your geographic locations and schedule, and take a look at where you spend your time. Then check out what’s available in those locations using tools like PadMapper (which uses mapping technology to plot listings from sites like Craigslist onto maps); HotPads, which offers “heat maps” that let you compare rental and for-sale home inventory across neighborhoods; or MyApartmentMap. What’s your schedule like? What neighborhoods do you travel to and from daily or weekly? Do you drive to work, bike to work or use public transit — or would that vary depending on your choice of neighborhood? What do you do on the weekends, and do you want to live near those places and activities or is it OK to live elsewhere? If you work late, or if you rise early, are there grocery stores and drugstores open during the hours you need to shop?
  • Hang out: Spend a weekend day, an after-work evening or a pre-work coffee and early-morning commute in any neighborhood you’re considering as part of your search. Do you like the vibe, the drive, the mix of friends in the area, the school choices for your kids? Is the commute doable at the hours you’d be making it? If you work from home, are there services convenient for you, like copy shops, co-working spaces (try Loosecubes to find out) and delis?
  • Investigate services: Will you be close to the services that matter to you? WalkScore lets you run searches for a given address or neighborhood so you can see its proximity to coffee shops, restaurants, grocers, public transit and schools. Aside from grocers, drugstores and coffee shops, consider how near you are to public transportation (not just for you, but for friends who rely on it), schools for your children, gift and apparel stores and services particular to you including churches, veterinary or medical offices, package/mailing centers, a fitness center, etc.
  • Research crime: Regardless of whether you choose a downtown or suburban place to live, get a read on where and what types of crime are happening in your area. In an area with a lot of car break-ins, maybe you’ll want to garage your car. If home invasion is common or late-night muggings occasionally take place, maybe look for a building with a doorperson or 24-hour security. Perhaps residents who can walk to restaurants and nightlife feel the downside in terms of noise complaints or the occasional closing-time episode. Check sites like Neighborhood Scout, Spot Crime, Crime Mapping, Crime Reports and Nixle, as well as neighborhood blogs.
  • Education: If choosing a rental in a specific school district is important, or if you want to evaluate school districts to narrow down your list of potential neighborhoods, check out School Digger or Great Schools.

STEP 4: Choose your rental type.
This step will depend on how long of a lease term you’re after and how big of a place you need. Depending on your market and your needs, you can rent a wide variety of home types from a variety of types of landlords. If you’re looking for a short-term rental (six months or less), you may want to investigate a sublet (taking over someone else’s lease or renting direct from an owner) or corporate housing, which is more expensive but convenient for someone new to an area. For longer-term rentals (typically 12 or more months), you’ll find a wide variety of options on listings portals.
As for unit types, here’s a look at the pros and cons of each:
Apartment in a high-rise apartment building 
Pros: You’ll live among lots of neighbors, maintenance is typically via a professional management company and your building may be centrally located in a walkable, urban area. You can probably also research large buildings more easily on blogs or apartment commentary sites.
Cons: Your unit may be smaller than options in suburbs, townhouses or single-family homes. It may be too small for a family. You will likely pay extra for parking in the building or a nearby lot. Management companies may be less flexible about credit scores or lease negotiation than small-fry landlords.
Townhouse 
Pros: You’ll have more privacy, with only one or two units on either side of you. You may have a yard, and the home’s layout may be on two or more floors, meaning that despite the square footage residents can spread out and enjoy privacy within the home. You may have a patio or yard.
Cons: If you’re subletting a townhouse directly from its owner, maintenance may not be predictable. You may be trading space for location, as some townhouses are in more suburban areas. Utilities may run slightly higher.
Accessory unit in a single-family home 
Pros: These units are relatively private, likely situated in a cozy neighborhood and may be one-of-a-kind spaces. Renters may feel safer since landlord-owners live upstairs or next door. Laundry is often nearby or in a room shared with the landlord, and yard access is often included.
Cons: These units may be even smaller than the average apartment, and some landlord-homeowners create accessory units illegally — meaning they haven’t registered them with the city or may have used unlicensed or under-the-radar contracting work to renovate them. If utilities aren’t separately metered, it may be hard to sort out bills with owners.
Single-family home 
Pros: If you have a larger household, children, noisy habits (like playing music loud late at night) or pets who could benefit from a yard, a single-family home may make more sense than other rental options. You’ll get a higher bedroom and bathroom count, as well as privacy.
Cons: Single-family homes can cost more to rent, and they may also carry expensive utility bills, especially if they are older and non-energy efficient. If owned and managed by individuals (versus a management company), it may take longer to get maintenance concerns addressed.
STEP 5: Tackle the application and approval process.
You’ve determined your budget, narrowed down a neighborhood and found a place you want to call home. Your work is almost over, but now it’s time for the landlord to determine if you’re qualified to rent the property. Here are some things to expect during the approval process:
  • The background check: When you find a property you want to rent, landlords or property management companies will typically ask for an application authorizing them to run a background check on you and requesting permission to verify your employment, income and bank accounts or requesting that you supply this information in the form of pay stubs and phone numbers for references. You typically will pay for your application, often in the $25 to $45 range, and it may take a few weekdays to hear back from the landlord.
  • Lease: Assuming your background is acceptable to the landlord, you will then negotiate a lease for a particular property. This is essentially a contract spelling out the terms of your rental, including when it begins and ends; the amount of deposit and how it is to be treated; who (if more than one resident will live in the unit) is responsible for payments; rules on the use of space (smoking or no smoking, pets or no pets); under what terms the landlord can enter (typically with a day’s notice); what is and isn’t included (utilities, for instance), etc.
  • Negotiation: Keep in mind that many aspects of a lease are negotiable — ranging from the lease term (or length of time you’ll live there) to a laundry list of concessions or perks a landlord might throw in — like one month free on a 12-month lease, free cable TV or reduced-price parking. You could even possibly negotiate that the landlord tackle a little light remodeling or let you paint the walls for a fee. Landlords may also place conditions on a lease before accepting you as a renter: Perhaps they want a guarantor or co-signor because of your youth or low credit score, or an extra deposit because your pet is heavier than the building’s pet weight limit. Maybe a landlord would prefer to rent for a particular set of months due to seasonality of the unit or is interested in finding a month-to-month renter because of a pending change to the building (such as a sale or remodeling effort best accomplished when units are empty.)
  • Deposit: Typically, when you move in you provide a landlord with a security deposit equivalent to one month of rent, as well as the first month of rent. The security deposit must be returned to you at move-out within the number of days or weeks set forth in your lease or as required in your local municipality or state. Knowing that paying two months of rent at once is tough for some renters, occasionally a landlord will let you pay your security deposit over several months. Keep in mind that if you damage the home beyond “normal wear and tear,” the landlord may retain part of the deposit. What’s “normal wear and tear”? That varies by landlord. But generally, normal wear and tear might mean the place could use a light carpet cleaning or some paint touchups at move-out, while excessive wear and tear might mean the carpet is so stained it needs to be replaced or that walls have holes in them where you installed a heavy piece of art or furniture.
  • Other fees: In some markets, if you use a broker or real estate agent to locate an apartment, you will need to pay these professionals a fee for their services. Depending on the market, brokerage or agent you choose, your fees can vary from a flat, set amount to a proportion of your first year’s rent. (In New York some agents are paid 15 percent of the first year’s rent — often more than two months’ rent.) If you are hunting for a rental in a market where rentals are brokered, the longer you stay the less these fees hurt.

Let us help you find the perfect rental. We strive to provide exceptional service and guide you toward successful investment outcomes. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.hgtv.com/lifestyle/real-estate/5-steps-to-finding-the-perfect-rental-home]

A Guide to Investing in Rental Property

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Investing in rental property can be lucrative, but it requires planning. There are many factors to consider, from finding the right property to managing tenants and maximizing returns. We bring you some essential information here to help you navigate real estate investing. 

At Home-Solutions, our team of experts is here to enhance your personal real estate ventures by offering personalized concierge-like services, exclusively designed for you. We offer our customers professional assistance with buying, selling, renting, investment portfolios, as well as property management. Connect with us and we will get all your questions answered. (954) 545-3027

Thinking about purchasing an investment property? Purchasing rental real estate requires knowledge of leasing practices, mortgage loans, tenant and landlord relationships, and property management.

Buying real estate to rent can be lucrative but, like any investment, should be undertaken only after some solid research.

Key Takeaways

  • A hands-on landlord needs a broad array of knowledge, from basic tenant law to how to fix a leaky faucet.
  • If you can’t do it all yourself, consider paying for the services of a property manager or investing in real estate investment trusts (REITs) instead.
  • Full-time rental property investors spend a significant amount of time choosing houses, fixing them up, and managing their properties.
  • Investment rental properties include vacation homes, multi-family homes, single-family homes, and condos.

So You Want to Be a Landlord?

Buying investment property and renting it out can be a good way to earn income, but it requires a commitment of time and money. After choosing the right property, prepping the unit, and finding reliable tenants, ongoing maintenance is required.

Maintenance and upkeep costs can decrease your rental income. There’s always the potential for an emergency such as roof damage. Investors should plan to set aside 1% of their property’s value for repairs.

Rental property owners can manage the property personally or hire a property manager, who typically charges between 8% and 12% of collected rents. Although costly, a property manager can provide a wide range of services including arranging maintenance and repair work, screening new tenants, and handling late rent payments.

Rental property owners need to know the landlord-tenant laws in their state and locale. Both tenants and landlords have rights and obligations regarding security deposits, lease requirements, eviction rules, and fair housing laws.

It is important to protect a real estate investment. In addition to homeowners insurance, rental property owners can purchase landlord insurance, which covers property damage, lost rental income, and liability protection in case a tenant or a visitor suffers an injury as a result of property maintenance issues.

 

Buying a Rental Property

In order to get started, you’ll need to identify the right property and prepare to get financing to buy it.

Location, Location, Location

When choosing a profitable rental property, look for a location with low property taxes, a good school district, and walkable amenities such as restaurants, coffee shops, and parks.

A neighborhood that has a low crime rate, easy access to public transportation, and a growing job market signals a larger pool of renters.

An area that has a growing population or a revitalization plan underway represents a potential investment opportunity.

Online real estate property sites like Zillow.com provide information for investors including home rental rates and current investment property values. Airbnb.com listings can indicate the going rates for short-term vacation homes or condos in any neighborhood. Other sites like Trulia and Realtor.com list long-term rentals.

Financing Your Rental Property

The process for obtaining a rental property loan is similar to that for a primary residence mortgage, with key differences. Lenders typically charge higher interest rates on rental properties due to a higher rate of default.

Like a home buyer, an investor may choose a traditional mortgage loan or may qualify for an FHA loan or a VA loan.

Underwriting standards can be stricter for rental property applicants. Mortgage lenders focus on credit score, down payment, and debt-to-income ratio. These are the same factors that apply to rental property mortgages, but the investor may be held to a more stringent credit history and a higher down payment.

Typical requirements for a rental property mortgage:

  • Credit score: A minimum score of 620, with better rates and terms for scores of 740 and higher.
  • Down payment: For government-backed mortgages, 0% to 3% may be acceptable on a mortgage for a primary residence but borrowers for investment real estate generally have to put 15% to 25% down.
  • Debt-to-income ratio (DTI): DTI represents the percentage of the borrower’s monthly income that goes toward debt. Lenders will generally allow you to count up to 75% of your expected rental income toward your DTI.
  • Savings: Borrowers should have cash available to cover three to six months of mortgage payments, including principal, interest, taxes, and insurance.

Is it better to buy with cash or to finance an investment property? That depends on the investor’s goals and savings. Paying cash for an investment property can generate positive monthly cash flow immediately, but it’s not an option for many.

Making Money in Rentals

Operating expenses on a new rental property will be between 35% and 80% of your gross operating income.

If the monthly rent charged is $1,500 and expenses are $600 per month, that’s 40% for operating expenses.

Many investors use the 50% rule. If the rent is $2,000 per month, expect to pay $1,000 in total expenses.

Wall Street firms that buy distressed properties aim for returns of 5% to 7%. Individuals should set a goal of a 10% return.

Estimate maintenance costs at 1% of the property value annually.

Other costs include homeowners insurance, homeowners association fees (HOA), property taxes, and monthly expenses such as pest control, landscaping, and maintenance.

While stocks may offer a 7.5% cash-on-cash return, or bonds may pay 4.5%, a 6% return in the first year as a landlord on an investment property is considered healthy and that number should rise over time.

Some real estate investors choose to flip houses by purchasing a house at a below-market price, making repairs, and then reselling it for a high return. There may or may not be tenants during a “flip” and investors must consider key factors like affordable materials and labor.

Risks and Rewards of Rental Property

Rewards

  • Income is passive; investors can earn while working a regular job.
  • If real estate values increase, the investment rises too.
  • Rental income is not subject to Social Security tax.
  • The interest on an investment property loan may be tax-deductible.
  • Real estate is a tangible physical asset.

Risks

  • Maintenance costs and property management expenses can decrease rental income.
  • Monthly rental income may not cover the total monthly mortgage loan payment.
  • Real estate is not a liquid asset and takes time to sell.
  • Entry and exit costs can be high.
  • If a tenant moves out, a landlord still has to pay the monthly expenses.

 

Should I Find a Real Estate Investing Partner?

A real estate partner helps finance the deal in exchange for a share of the profits.

Alternatives include approaching your network of family and friends, finding a local real estate investment club, and real estate crowdfunding.

How Big a Down Payment Do You Need to Buy Investment Property?

Lenders typically have stricter guidelines when it comes to properties being purchased as rentals. Though you can buy a primary home with as little as 3% down, most borrowers need to put down 15% to 20% to buy a rental property.

Should I Invest in a Condo?

Condos can be a good option for rental property buyers and they are often located in desirable locations.

Condos are usually less expensive than single-family homes, and they have fewer maintenance requirements.

However, association dues and the potential for expensive special assessments are a risk. It is important to investigate the financial health of the homeowners association and the current condition of the overall building and the individual unit.

The Bottom Line

A rental property can be a lucrative investment, providing a passive, steady income for the investor.

As always, do your research in advance. Investing in rental property requires knowledge about tenant and landlord laws, leasing practices, mortgage policies, and property management issues.

Start 2025 as a real estate investor. Let us help you find the perfect rental property and maximize your returns. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.investopedia.com/articles/investing/090815/buying-your-first-investment-property-top-10-tips.asp]

Reasons Why Your Home Isn’t Renting 

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If your rental property has been sitting vacant for an extended period, it’s time to reassess your rental strategy. Several factors can hinder the rental process, from pricing and marketing to property condition and tenant screening. We will help you explore some key reasons why your home may not be rented and provide actionable tips to enhance its marketability.

One of the worst feelings as a landlord or property manager is watching a rental sit on the market week after week, month after month. Whether you are getting few to no leads or entirely unqualified leads, a property that remains vacant is costing you important profit.

While it can feel like an unsolvable puzzle when your rental sits vacant, the solution is likely well within your reach.

Following are six common reasons why your property isn’t renting and tactics for determining a solution.

1. Your rent price isn’t competitive.

An important aspect of leasing a property is pricing the rental accurately and competitively. Without an accurate price point, you might face a longer-than-normal vacancy.

First, do your own research on similar rentals in the area. Scour Craigslist, Zillow and other major rental listing websites. Create a document with the pricing of similar rentals in your area and find the average.

Another method when pricing your rental property is to purchase a rental comparison report. If you go this route, be sure to still do your own research into your rental property’s specific neighborhood.

While a price is simple to change, you should take the time to explore your other options prior to simply knocking dollars off the rent amount.

2. Your rental isn’t being seen.

One of the biggest mistakes new landlords will make is limiting how much effort they put into marketing their property.

Promotion should be far more than a sign in your yard. Over 50% of people living in rentals are under the age of 30, a demographic that turns to technology to find what they need. This means online marketing is key.

Not only should you be posting your rental across the web, you should also make sure your promotion is well written and paints the property in the best light possible. Include vital information, such as the following:

• Number of bedrooms and bathrooms.

• Square footage.

• Appliances included.

• Important policies.

• Cost of rent.

• Required deposit.

It is also important to include a gallery of photos with your listing. Take high-quality photos of each room when the property is clean and in good condition.

Often revamping your promotion of the property will be key in improving the amount of renter interest.

3. Your policies have restricted your market.

In highly competitive markets, your policies will play a huge role in how many people are interested in the rental. For example, if you need to set your property apart from others in the area, you might consider having a pet-friendly policy. By opening up the market to pet owners, you will see a drastic increase in the number of interested parties.

Consider your deposit amounts and lease terms as well. In a market where short-term rentals abound, you might need to adjust from a 12-month lease to a six-month lease or even change to month-to-month.

While you need to protect your property, you also need to weigh the cost of your vacancy against loosening your policies. Do your research and determine if your policies are actually costing you more than they are helping.

4. Your rental property isn’t appealing.

If you see a lot of interest in your property up front but after showing the space you see a decline in interest, it could be that the property itself at fault. Ask yourself what you would think about the property if you were seeing it for the first time. Consider everything from the curb appeal to the condition of the interior. Take time to repair items and invest in improvements.

Beyond appearances, consider what amenities other rentals in the area offer. Updated appliances can go a long way in not only garnering more interest in the property but also in keeping happy, long-term renters.

While improving the property is more costly than other items on this list, it can pay back over time if you invest wisely.

5. You are battling an oversaturated market.

In some cases, it can truly be the market you are in that is holding you back. Demand will play a role in how quickly you fill a vacancy.

While you cannot create a demand that does not exist, you can take into consideration the cycle of rentals in your area when creating lease policies. If, for example, you operate in a market influenced by the presence of a college, be sure you align your lease dates with the demand. Lock in tenants with a year-long lease that ends at the ideal time for you.

If you are already stuck in a dead spell of your market, consider tweaking some of the components mentioned above to secure a tenant. You might need to lower your price to get a tenant in mid-February, but you can sign a lease that ends in July so you can remarket with a higher price in the prime rental season.

6. Your rental isn’t in an ideal location.

Where your rental property is located will determine a lot about the tenants interested in the property. Of all the items on this list, this is the least possible thing to change. However, there are still a couple of valuable ideas to keep in mind.

First, learn from your mistakes. Be sure during the buying process that you truly understand the market for the specific area.

Next, if you own a property and realize the location is the main issue, recognize you will need to make up for it in other ways. For example, someone might be willing to be in a less desirable part of town if the property is dog-friendly with a fenced-in yard. Make the best of what you have by changing what you can.

The bottom line is that if your rental property sits vacant, you are losing money. Take the time to assess what you are doing wrong and have the humility to learn from your mistakes. Never leave the rental process up to chance. Landlording is far more than a hobby — it truly is a business.

Ensure your property is always in top condition. Our comprehensive property management services can help you protect your investment and increase its value. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionsp.

Reference: [https://www.forbes.com/sites/forbesrealestatecouncil/2017/10/30/why-your-property-isnt-renting-and-what-you-can-actually-do-about-it/]

Maintaining Your Rental Property

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Owning a rental property requires maintenance to ensure its value and attract quality tenants. Proper upkeep not only preserves the property’s condition but also protects your financial investment. We have here essential tips for maintaining your rental property, covering topics such as regular inspections, timely repairs, and addressing tenant concerns. 

How to Properly Maintain Your Rental Property

One of the biggest landlord responsibilities facing any property owner is rental maintenance. In fact, in a national survey conducted by SmartMove, rental maintenance was ranked as the third biggest “pain point” for landlords after loss in rental income and uncooperative tenants.

That’s not surprising. Rental property maintenance requires year-round vigilance, representing a significant amount of time and money. However, landlords can avoid the “pain points” if they follow some simple rules, stay organized and budget accordingly. Below we talk about some of the strategies for managing rental maintenance.

Regular Maintenance

Some rental maintenance issues, such as a leaky faucet, often can’t be anticipated or avoided. Other issues can be addressed before they become serious problems by following a regular maintenance schedule. These are the items that should be checked on a regular basis, whether weekly, monthly or annually, such as a yearly furnace inspection. Regular maintenance isn’t just about avoiding costly repairs but ensuring a pleasant living environment for tenants.

The rental property maintenance checklist below is not meant to be exhaustive. Each landlord will need to tailor a regular rental maintenance schedule based on his or her property.  Here are some examples of items that many good landlords do regularly.

  1. Check for leaks, especially following strong rainstorms or after significant snowmelt. Water damage is the enemy of every landlord.
  2. Replace air filters frequently.
  3. Test smoke and carbon monoxide detectors regularly.
  4. Check for pests quarterly if not monthly.
  5. Re-caulk showers and bathtubs to prevent mold and leaks.
  6. Tighten any handles, knobs, locks, faucets, etc.
  7. Check fire extinguishers.
  8. Flush water heater.
  9. Clean gutters.
  10. Trim or remove trees on the property threatening power lines or structures.

Landlords should also create rental maintenance schedules for bigger ticket projects, or capital expenditures, such as replacing carpets or repainting walls. The schedule will depend on the general wear-and-tear on each individual unit, but professional property managers recommend doing these sorts of projects (i.e., interior painting, carpet replacement) about every three years unless needed sooner.

Regular Inspections

One of the keys to maintaining your unit is to conduct rental property inspections  on a regular basis. There are four types of inspections landlords can do to help ensure their properties stay in tiptop shape.

  1. Move-in Inspection: This walk-through inspection is typically done with the tenant. This provides an opportunity for the tenant to identify any concerns and for the landlord to document the condition of the property when it was turned over.
  2. Routine Inspection: Landlords should schedule regular inspections of the property with the tenant, ideally on a quarterly basis. A landlord should provide prior notification before entering the property; often the terms of the lease will specify the particulars regarding these visits, or local law will. This is an opportunity for the landlord to identify maintenance issues or for the tenant to discuss any problems such as that leaky faucet.
  3. Drive-by Inspection: Routinely stopping by the unit to observe its outside condition can help spot issues such as the unauthorized presence of a pet.
  4. Move-out Inspection: As the name implies, this inspection comes when the tenant moves out. This inspection is not only the time to identify any damage a tenant may have caused but for the landlord to note what normal wear-and-tear repairs or maintenance issues may need to be addressed before the unit is rented out again.

Rental Property Maintenance Expenses

Determining how much money to allocate for rental property maintenance expenses can be tricky. Many professional property managers use what they call the 1% Rule: One percent of the total property value should be set aside to address rental maintenance expenses. Following this rule, a rental property valued at $200,000 would have a $2,000 annual budget line item for maintenance expenses.

Keep in mind this is only a rule of thumb. Factors such as the age of the property or cost of living in the area may require a larger or smaller annual budget for rental property maintenance expenses.

To account for large capital expenditures, such as a new roof, you may want to apply a different formula: the 50% Rule. This model suggests that half of all rental property income should be used for operating costs, which includes not only rental maintenance and repairs but also things like taxes, insurance, fixed fees and an escrow account for big-ticket expenses like a new roof. That means a landlord who rents a property for $1,500 per month would squirrel away $750 for rental maintenance and operating expenses.

To DIY or Hire A Professional?

A rental maintenance budget will also depend on whether a landlord opts to personally do most of the maintenance or hire the service to a contractor(s). The landlord should do an honest assessment of his or her skills and availability before making this decision. While it is certainly tempting to save money and go the do-it-yourself (DIY) route on rental maintenance, a landlord may find that his or her time is better spent on other parts of the rental management business.

Keep in mind that rental maintenance requires a varied skill set, from plumbing to electrical, and the ability to troubleshoot problems. Service calls can come at any time day or night. A landlord who chooses to do rental maintenance directly should be prepared for all eventualities.

Landlords should also remember that a tenant doesn’t care how much money a landlord might save in expenses by doing the work himself or herself. One of the leading causes of tenant turnover cited by renters as to why they didn’t renew a lease is poor maintenance. Maintenance should also be completed as soon as possible, as some tenants might try to make the necessary repairs themselves, which could cause additional problems, or even withhold rental until the issue is resolved. And renters could even call local housing authorities to inspect a property they feel is poorly maintained and unsafe.

There are plenty of options out there for landlords who need maintenance help. Websites like Thumbtack match professionals to those in need of services such as carpet installation and interior painting. Other companies like American Home Shield offer warranties on major appliances and systems such as furnaces and HVAC for a monthly paid subscription. Each service call is then charged a flat fee, with a guarantee to either repair or replace the item under warranty.

Doing Rental Maintenance Helps to Have Happy Tenants

Andrew Syrios, a real estate investor in Kansas City whose company owns more than 500 units in four states, maintains that good property management boils down to good rental maintenance.

As a way to keep your good tenants happy, landlords should consider it very important to conduct routine maintenance and inspections, as well as make timely repairs when needed.  “Maintenance is the face of your company, and good maintenance is the best form of tenant retention there is,” he writes on BiggerPockets. “Many tenants are used to poor quality service, so if they come to your place and get good service, it substantially increases the chance that they will want to continue renting from you.”

Be sure to follow up on maintenance calls, Syrios advises, with perhaps a short survey or phone call to determine if the tenant is satisfied with the work. It is also a good idea to document any service calls with notes and pictures before and after any maintenance work.

Good rental maintenance should really start with the tenant screening process. A responsible renter, with a good credit history and strong references, is more likely to take care of a property. That’s where TransUnion SmartMove can really pay off with its comprehensive screening process. SmartMove reports include a credit report for renters, a tenant background check report, and renter eviction history.

Follow these suggestions and rental maintenance doesn’t have to a “pain point” for landlords but a point of pride and a way to retain good tenants.

Let us handle the hassle of rental property maintenance. Our experienced team can provide comprehensive property management services, ensuring your property is well-maintained and your tenants are satisfied. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.mysmartmove.com/blog/rental-property-maintenance]

How to Read a Lease

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A lease is a legally binding contract that outlines the terms and conditions of a rental agreement between a landlord and a tenant. Understanding the contents of a lease is crucial for protecting your rights and responsibilities. As a family-owned business, we are dedicated to ensuring your family receives the highest quality of care available. Understanding the contents of a lease is crucial for protecting your rights and responsibilities. Here, you can find essential information on reading and understanding a lease agreement, including key clauses like rent amounts, lease duration, maintenance responsibilities, and terms for renewal or termination. Knowing these details ensures you make informed decisions that benefit you and your family.

Someday, between the time you move out of your childhood home and when buy your first residence, you’ll probably find yourself staring at a lease. A lease is a contract between someone who owns real estate (the landlord) and another person who occupies that piece of real estate (the tenant), covering the conditions under which the tenant may possess, occupy, and use the property.

Reading a lease can be befuddling, and often the first impulse is to just go ahead and sign the thing, rather than try to wade through and decipher all the legal language. However, it’s important to understand that a lease is a legally enforceable agreement, and you could find yourself in a predicament later on if you fail to abide by the terms–the very ones you agreed to by signing on the dotted line. Before you sign, take the time to read the entire document.

Here’s what to look for in a lease to rent a dwelling, be it an apartment or a house.

Key Takeaways

  • A lease is a contract between someone who owns real estate (the landlord) and another person who occupies that piece of real estate (the tenant).
  • A lease details the conditions under which the tenant may possess, occupy, and use the property.
  • Details about any deposits—such as an upfront security deposit or fees for parking or pets—should also be clearly stated in your lease, along with conditions for getting your money back.
  • In some rental arrangements, the landlord is responsible for taking care of all repairs and maintenance—whether it’s a leaky faucet or a broken air conditioner.
  • There are also agreements where the tenant is responsible for all the costs of repairs and maintenance.1
  • If you have a pet, read the lease to find out if animals are allowed, and if so, whether there are any size or breed-specific restrictions.2

Include Property Details

The lease should include basic facts and data about the property, including the physical address and the landlord’s name and contact information. It should also state the date the lease was signed; the beginning and end dates of the rental period; and options for lease renewal, including policies for rent increases. If any appliances are in the unit (such as a range, refrigerator, or washing machine), or if the unit is furnished, that should be included, too.

Define Deposit, Rent, and Fee Amounts

People tend to pay close attention to how much rent will cost each month, but there may be other costs that should be noted as well, including various deposits and fees. Details about any deposits—such as an upfront security deposit or fees for parking or pets—should also be clearly stated, along with conditions for getting your money back.

The lease should state particulars about the rent:

  • Monthly amount due
  • When it is due
  • Methods of acceptable payment
  • Any allowable grace period for late payment
  • Amount of any late fees

Moving soon? Check out our special Moving Checklist for Sellers so you don’t forget anything!

 

Utility Inclusion

The lease should indicate policies regarding utility service and billing. Be sure to find out which, if any, utilities are included as part of your monthly rent, and whether you are expected to cover any of the costs.

Some landlords, for example, pay for electric, water, and sewer services, while the tenant pays for cable and Internet.

 

Repairs and Maintenance

This is something to pay close attention to since it can end up costing a lot of money, time, and headaches. In some rental arrangements, the landlord is responsible for taking care of all repairs and maintenance—whether it’s a leaky faucet or a broken air conditioner.

In other situations, the landlord might repair or replace only major appliances but leave the tenant responsible for everything else. And then there are agreements where the tenant is responsible for all the costs of repairs and maintenance. There may also be stipulations about the maintenance of the yard or outside areas.

As you can see, it’s imperative that you read the lease to determine your landlord’s responsibilities—as well as yours—when it comes to repairs and maintenance issues. Make sure you’re clear on who pays for what, who arranges service calls, and the amount of time you and your landlord have to address any issues.3

 

Pet Policy

If you have a pet, read the lease to find out if animals are allowed, and if so, whether there are any size or breed-specific restrictions (some rental properties allow most dogs, but not pit bulls, for example).

You might be required to pay a “pet deposit” that may or may not be returned once you move out (assuming no pet damage). Sometimes the “pet fee” is nonrefundable because it is used for treating the space for fleas and deodorizing and shampooing the unit’s flooring and upholstery after you move out.

In some cases, you might also pay “pet rent,” a monthly or yearly fee tacked on to your rent to cover normal wear and tear from pets.

If the lease contains a no-pets clause and you violate it by bringing a furry friend into your unit, the landlord generally has the legal right to evict you. A no-pets clause cannot be added to a lease once it’s signed, however, so your landlord can’t change the pet policy in the middle of your lease.

 

House Rules

The lease should describe the acceptable use of the property (e.g., “The premises shall be used exclusively as a private residential dwelling for the tenant and his immediate family only”), plus any policies for things like.

  • Maximum occupancy
  • Quiet hours
  • Overnight guests
  • Parking and storage
  • Smoking
  • Landlord right of entry
  • Granting access to maintenance workers
  • Property alterations
  • Long absences (on your part)
  • Insurance requirements
  • Eviction

 

Early Termination

The lease should explain what you need to do before moving out. How much advance notice is required? What type of cleaning are you responsible for? The lease should also state your options if you have to move out before the lease expires.

Can you sublet the property, for example? If so, are you required to find the sublet tenant, or is that the landlord’s responsibility? What are the penalties for breaking the lease if you can’t find someone to sublet?

 

The Bottom Line

To make sure you understand what you’re getting into, take the time to read your lease. If there’s something you don’t understand, ask the landlord for clarification, or consult a local specialist in real estate law. Bear in mind that while many of these policies are at the landlord’s discretion, others (such as the landlord’s right of entry and eviction) may be regulated by state or city ordinances.

Once you and your landlord have signed the lease, it’s a very good idea to save a copy. This document can become important if any disagreements arise regarding the property or anything related to your tenancy.

Also, plan on doing a thorough property examination before signing the lease. Check the general condition of the property and make sure items such as appliances, faucets, plumbing, windows, and window fixtures are in good working order. Note and document any existing damage in the lease or in a provided damage assessment form, and keep a copy of this with your contract—just in case.

Ensure a smooth rental experience with our property management services. Our knowledgeable staff can help you prepare and understand your lease agreement and prevent misunderstandings. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.investopedia.com/articles/personal-finance/090315/millennials-guide-how-read-lease.asp]

5 Tips for Renting Out Your Home

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Renting out your property can be a lucrative venture, but it’s essential to approach it strategically. There are numerous factors to consider, from finding reliable tenants to managing maintenance and finances. Check our tips below and partner with Home-Solutions. With our expertise in tenant screening, property upkeep, and financial management, you can enjoy the benefits of rental income without the daily stress.

Many people mull over the idea of renting out their homes. They may want the benefit of extra income to save money or pay down debt, or they may see it as an alternative to selling during a housing slump, a way to wait things out until the economy improves.

The motives are many, but renting may become more trouble than it’s worth when appropriate considerations aren’t made. Here are five steps that will get you going in the right direction.

If you are lucky enough to live in a tourist-friendly area, like near the beach or a major city, renting out your home as a short-term or seasonal rental may be an option, too. Before you list your property on a site geared toward short-term rentals, such as Airbnb or Vrbo, find out the rules and regulations for these types of rentals in your town and city.

Key Takeaways

  • The responsibilities of landlords are vast and can often come with unexpected costs. It helps to have some cash reserves, if possible.
  • When screening a potential renter, running a deep background check is advisable. Make sure to ask for multiple references from renters you are considering.
  • Know your rights and the rights of your tenants—it’s a good idea to familiarize yourself with the Fair Housing Act.
  • During peak seasons you can rent your unit for even more, according to a study by Renthop.com. July through September appears to be the best time to locate a tenant; however, this seasonality can vary from city to city.
  • If you have a home on a lake, near a beach, or close to another seasonal venue, it may be worth it to investigate short-term rental platforms.

1. Understand the Responsibility Involved

First, you must determine whether being a landlord is an obligation you can even handle. The benefits of renting are numerous, such as the ability to deter the vandalism that often plagues an empty home, the ease of tax breaks, and the ability to generate income that covers the bills and possibly even creates a profit.

However, being a landlord is also one more responsibility you’ll need to fit into your life, and it’s safe to assume that things will sometimes fail to run smoothly. You’ll need to stay on top of repairs and maintenance, collect rent, dole out more for your homeowners insurance policy, and try to avoid wear and tear on your property by keeping an eye on your tenant’s housekeeping skills.

It’s important to note that the Internal Revenue Service (IRS) typically requires that landlords report rental income on their tax returns. However, the IRS has a Minimal Rental Use rule, which states that if a dwelling unit is used as a residence, meaning your home, and was rented for fewer than 15 days, the rental income does not need to be reported. However, if rented for fewer than 15 days, the landlord does not get the tax benefits of deducting expenses, such as utilities, which would normally reduce taxable income.

2. Prepare Your Home for Renters

In a down market, you probably won’t be able to get away with renting out the home as is. Tenants are more attentive and choosy at such times, because of the increased availability of rental homes, and their expectations are much higher.

Prepare for the new tenant by thoroughly cleaning your home and making sure appliances are working and are in good condition. If you’ve decided that you are renting out a room or area within your house, make sure that you can secure that area from the rest of your home.

3. Market Your Home

Once the house has been straightened out, develop a list describing what makes it appealing so you can put it on the market. Take note of those commonly desirable features such as a washer and a dryer, air conditioning, and a garage. Use rental terms to help “sell” the property.

Words that’ll help you get a renter include: “granite,” “stainless steel,” “vaulted ceilings,” “maple,” and “hardwood floors.” Be sure to use all of the terms that apply to your home.

Next, post an advertisement for the home on reputable websites and in local newspapers. In addition, some real estate agents will work with owners to help rent out their homes, although the agent will take a commission if they find you a renter.

You can also hire a property management company to handle the legwork of renting out your house, but you will have to pay them. The cost varies by company but it is often between 8% to 12% of the monthly rent, and there may be other fees involved.

4. Hire Professionals to Help You Navigate the Financials

Turning your home into a residential rental property may seem like a simple task, but it’s important to talk with real estate attorneys and accountants to make sure you are abiding by tax laws, zoning ordinances, and local property rules.

You may qualify for tax deductions, but it’s important to know which exact expenses are deductible. Plus, there are limits on how much you can deduct each year, and the amount you are able to deduct may differ from the rental activity reported on your tax return.

An attorney can also help you navigate landlord-tenant regulations, which vary from state to state, and help you understand your community’s rules governing rental properties. You can also seek help drafting the lease, making sure that it follows local laws. Finally, talking with an attorney can help you determine suitable house rules and emergency contacts.

Set the cost of the rent by learning what other rental properties are going for in your neighborhood and community. Remember, potential tenants will be scouting around for deals, so set the rent at a competitive price and make sure you highlight all the most valuable aspects of your home.

5. Screen Tenants Carefully

Start looking for a tenant as soon as your property is ready to be shown. Then, choose your tenant very, very carefully. You need to be able to depend on this person not only to pay the rent on time but also to keep your home in good condition. Also, if the person is someone you may be cohabitating with, learn their habits so you won’t run into any nasty surprises.

Don’t forget to gather references for potential tenants and check their credit histories. You should also take safety precautions when screening a tenant⁠—after all, this person is a stranger. Once you’ve found the right tenant, ask for a reasonable security deposit and arrange an appropriate payment schedule.

 

Should I Run a Credit Check on a Tenant?

It’s always a good idea to run a credit check on a potential tenant. The information contained in a credit report can tell you a lot about how financially responsible a prospective tenant is, and it can help you predict if they have the ability to pay rent on time. You can pull the tenant’s credit report directly from one of the three main credit bureaus (Experian, TransUnion, and Equifax) or use a specialized agency to gather the information you need.

What’s a Common Mistake Landords Make?

Not screening tenants thoroughly is one of the most common mistakes new landlords make. This, unfortunately, can lead to problems in the future, like late payments, issues with neighbors, and damage to the property.5 Even if a prospective tenant can move immediately and offers to pay a deposit, landlords should take the time to check out the person’s background. A standard rental application form can provide you with the information you need to obtain a credit report, and you also should contact employers and former landlords.

Is It a Good Idea to Hire a Property Management Company?

It can be a good idea if you are renting out your property but you don’t have the time or experience to handle the business. Keep in mind, though, that the property management company you hire will take a percentage of the rental profits. Most property management companies charge a monthly fee of between 8% and 12% of the monthly rent collected.

The Bottom Line

Renting out a home can be beneficial for both owners and tenants⁠, but only if you take the time to address and prevent potential pitfalls. The chance to make some money, particularly in a tough housing market, is appealing, but don’t cut corners when finding and screening the tenant. After, all it’s still your house.

Unlock the potential of your property. Our expert property management team can help you navigate the rental market with ease. From tenant screening to financial management, we’ve got you covered. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.investopedia.com/articles/mortgages-real-estate/10/renting-out-home.asp]

How to Increase Your Home’s Value

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Title: How to Increase Your Home’s Value

Whether you’re preparing to sell your house or rent it out, maximizing its value is key.  Strategic improvements can significantly enhance its appeal to potential buyers or tenants. Let’s explore the secrets to transforming your house into a highly sought-after haven!

Even in a seller’s market, where inventory is scarce and bidding wars are common, it still pays to invest some time and energy in positioning your home to sell for top dollar. This can involve a variety of steps, from working with a real estate agent who truly understands your local market to spending some money to make sure your home looks its best for buyers. Here are 10 tips for selling your home that Realtors say will separate you from the competition — and help you bring in a higher price.

1. Find a real estate agent

Working with a skilled local real estate agent who knows your area inside and out can help you sell your home more quickly, and often, for more money. In fact, data from the National Association of Realtors shows that between July 2022 and June 2023, homes listed without the assistance of a Realtor sold for a median price of $310,000, while those sold with one fetched a median of $405,000. Interview several candidates before you commit to one agent — the better you get along, the smoother the process is likely to be.

2. Invest in value-adding improvements

Determining which home improvements to invest in can be daunting, and the costs can add up quickly. The key is to spend your money on projects that will provide the most return on your investment.

Minor kitchen upgrades are typically a wise choice, says San Diego–area Realtor Jade Lee-Duffy. “The heart of the home is the kitchen, and many buyers will judge a property by its kitchen,” she says. Just don’t go overboard: “While a complete overhaul of this space can run into the tens of thousands, a minor update is where you can gain the greatest return,” she says. “Think about resurfacing cabinets, replacing countertops, a fresh coat of paint or updating the fixtures and hardware.”

Updating a bathroom is another smart investment, says Katie Severance, a Realtor with Douglas Elliman in Palm Beach, Florida, and author of “The Brilliant Home Buyer.” “Renovated kitchens and baths are the ‘money rooms’ — those that add the most value to a home,” she says.

3. Up your curb appeal

As the saying goes, you don’t get a second chance to make a first impression. “Make sure your front yard is free of debris, the bushes are pruned and the grass has been cut,” says Lee-Duffy. “Also, add some bright potted plants by the front door to make buyers feel welcome.”

Some other easy updates that can improve curb appeal include:

  • Touching up exterior paint
  • Adding window flower boxes
  • Installing a new mailbox
  • Adding new mulch around shrubs and trees

4. Get a pre-listing inspection

Investing in a home inspection before putting your property on the market is another step to consider. “You don’t want any unexpected surprises,” says Lee-Duffy. “It’s best to find out beforehand if there are any issues that you can fix, before buyers find out on their own.” That would give them negotiating power for a lower price or, worst case scenario, a reason to back out of the deal. So it may be worth a few hundred dollars for the peace of mind.

There is, however, a downside to a pre-listing inspection: “Beware, because once a seller becomes aware of an existing defect and does not correct it prior to listing, they are obligated to disclose it to a buyer,” says Severance. “Defects that a buyer learns were known but not disclosed, prior to accepting an offer, can kill the deal.”

5. Highlight the positive with professional photos

Spending a bit of money on high-quality photography can go a long way toward helping your home sell for a higher price. “The majority of people search for properties online,” says Lee-Duffy. “If the photos pop, it can translate into a higher sale price — and sell faster, too.”

It’s OK to leave some things to the imagination when it comes to your home’s online listing, though. “I advise against photographing every square foot of the home,” says Severance. “The goal of photographs is not to give all the goodies away online; it’s to make a buyer want to see more — to whet their whistle enough to entice them to see it in person. If they don’t come see the house, they probably aren’t making an offer.”

6. Stage your home

When it comes to home staging, says Severance, there are two rules of thumb: less is more and keep it neutral. “It’s very important to capture buyers’ interest from the front door,” she says. “Pay extra attention to the entry: Repaint; place flowers; buy a new area rug, an impressive mirror or a dramatic piece of art.”

Remove objects and clutter that visually shrink a room, such as large ottomans or too many plants, and remove everything from the kitchen counters except for one or two new-looking appliances. “And don’t forget to stage the deck or patio, because that is an extension of the house that can make a small home feel much larger than it is,” Severance adds.

You can do the staging work on your own or up the ante by hiring a professional stager.  A pro will average around $1,800, according to HomeAdvisor.

7. Set the right asking price

Identifying the best price for your home can be critical to your success. “Setting the price too high can be detrimental and prevent buyers from walking through your front door,” says Lee-Duffy.

How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.

“Good pricing requires the expertise to thread the needle,” says Severance. “List at a number that is lower than comparable properties, in order to draw attention to it, but not so low that you will be disappointed if you only get one offer right at list price.” If enough buyers are enticed, you might even set the stage for a bidding war.

8. Remove personal items

“The goal of any showing is for the buyer to envision their own belongings in the space,” says Severance. So, while family photos and other knickknacks might seem like they have no bearing on how much money your home commands, they really do matter — especially if you are still living in the home while you’re trying to sell it.

If buyers are distracted by personal items, then chances are they won’t be able to see themselves in the space, and will not end up making an offer. “Buyers are thinking of their own furniture, where it will go and how it will fit. It’s the house they came to see, not the items inside of it,” she says.

9. Be ready to move fast

Once your property is listed on the market, things can happen quickly. It’s important to be well prepared ahead of time so that you can be as responsive as possible to potential offers. “Fill out all the necessary documents, such as any seller disclosures, and have paperwork for recent repair work, home renovation costs and utility bills on-hand for any buyer requests that come in,” says Lee-Duffy.

Sellers who are slow in reaction time or unresponsive can lose buyers, adds Severance. “If the buyer feels that they are not being dealt with fairly, they are very likely to walk away,” she says.

10. Use your head, not your heart

Finally, try to remove emotion from the equation and see the process as a simple transaction — your home is no longer “home” but a product for sale. It’s not unusual for prospective buyers to request credits or repairs, and it’s easy as a seller to take offense, so try to have a clear understanding of what issues and items you may be willing to make concessions on.

“It’s important to take emotion out of it and remember that the buyer usually doesn’t expect to get everything they ask for,” says Severance. “Take a closer look at which requests are valid and fair, and offer something. The cost to you is not in giving the concession — it’s the expense of losing the buyer, putting the property back on the market, starting all over again and getting a potentially lower offer.”

Maximize your rental income! Our team of professionals will help you prepare your property for the rental market, set the right rental price, and find qualified tenants. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.bankrate.com/real-estate/tips-for-selling-home/#fast]

10 Tips for Selling Your Home

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Are you excited to embark on a new chapter? Our tips below are your roadmap to a stress-free and successful sale. Unlock the secrets to a smooth and joyful selling experience with Home-Solutions.

Even in a seller’s market, where inventory is scarce and bidding wars are common, it still pays to invest some time and energy in positioning your home to sell for top dollar. This can involve a variety of steps, from working with a real estate agent who truly understands your local market to spending some money to make sure your home looks its best for buyers. Here are 10 tips for selling your home that Realtors say will separate you from the competition — and help you bring in a higher price.

1. Find a real estate agent

Working with a skilled local real estate agent who knows your area inside and out can help you sell your home more quickly, and often, for more money. In fact, data from the National Association of Realtors shows that between July 2022 and June 2023, homes listed without the assistance of a Realtor sold for a median price of $310,000, while those sold with one fetched a median of $405,000. Interview several candidates before you commit to one agent — the better you get along, the smoother the process is likely to be.

2. Invest in value-adding improvements

Determining which home improvements to invest in can be daunting, and the costs can add up quickly. The key is to spend your money on projects that will provide the most return on your investment.

Minor kitchen upgrades are typically a wise choice, says San Diego–area Realtor Jade Lee-Duffy. “The heart of the home is the kitchen, and many buyers will judge a property by its kitchen,” she says. Just don’t go overboard: “While a complete overhaul of this space can run into the tens of thousands, a minor update is where you can gain the greatest return,” she says. “Think about resurfacing cabinets, replacing countertops, a fresh coat of paint or updating the fixtures and hardware.”

Updating a bathroom is another smart investment, says Katie Severance, a Realtor with Douglas Elliman in Palm Beach, Florida, and author of “The Brilliant Home Buyer.” “Renovated kitchens and baths are the ‘money rooms’ — those that add the most value to a home,” she says.

3. Up your curb appeal

As the saying goes, you don’t get a second chance to make a first impression. “Make sure your front yard is free of debris, the bushes are pruned and the grass has been cut,” says Lee-Duffy. “Also, add some bright potted plants by the front door to make buyers feel welcome.”

Some other easy updates that can improve curb appeal include:

  • Touching up exterior paint
  • Adding window flower boxes
  • Installing a new mailbox
  • Adding new mulch around shrubs and trees

4. Get a pre-listing inspection

Investing in a home inspection before putting your property on the market is another step to consider. “You don’t want any unexpected surprises,” says Lee-Duffy. “It’s best to find out beforehand if there are any issues that you can fix, before buyers find out on their own.” That would give them negotiating power for a lower price or, worst case scenario, a reason to back out of the deal. So it may be worth a few hundred dollars for the peace of mind.

There is, however, a downside to a pre-listing inspection: “Beware, because once a seller becomes aware of an existing defect and does not correct it prior to listing, they are obligated to disclose it to a buyer,” says Severance. “Defects that a buyer learns were known but not disclosed, prior to accepting an offer, can kill the deal.”

5. Highlight the positive with professional photos

Spending a bit of money on high-quality photography can go a long way toward helping your home sell for a higher price. “The majority of people search for properties online,” says Lee-Duffy. “If the photos pop, it can translate into a higher sale price — and sell faster, too.”

It’s OK to leave some things to the imagination when it comes to your home’s online listing, though. “I advise against photographing every square foot of the home,” says Severance. “The goal of photographs is not to give all the goodies away online; it’s to make a buyer want to see more — to whet their whistle enough to entice them to see it in person. If they don’t come see the house, they probably aren’t making an offer.”

6. Stage your home

When it comes to home staging, says Severance, there are two rules of thumb: less is more and keep it neutral. “It’s very important to capture buyers’ interest from the front door,” she says. “Pay extra attention to the entry: Repaint; place flowers; buy a new area rug, an impressive mirror or a dramatic piece of art.”

Remove objects and clutter that visually shrink a room, such as large ottomans or too many plants, and remove everything from the kitchen counters except for one or two new-looking appliances. “And don’t forget to stage the deck or patio, because that is an extension of the house that can make a small home feel much larger than it is,” Severance adds.

7. Set the right asking price

Identifying the best price for your home can be critical to your success. “Setting the price too high can be detrimental and prevent buyers from walking through your front door,” says Lee-Duffy.

How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.

“Good pricing requires the expertise to thread the needle,” says Severance. “List at a number that is lower than comparable properties, in order to draw attention to it, but not so low that you will be disappointed if you only get one offer right at list price.” If enough buyers are enticed, you might even set the stage for a bidding war.

8. Remove personal items

“The goal of any showing is for the buyer to envision their own belongings in the space,” says Severance. So, while family photos and other knickknacks might seem like they have no bearing on how much money your home commands, they really do matter — especially if you are still living in the home while you’re trying to sell it.

If buyers are distracted by personal items, then chances are they won’t be able to see themselves in the space, and will not end up making an offer. “Buyers are thinking of their own furniture, where it will go and how it will fit. It’s the house they came to see, not the items inside of it,” she says.

9. Be ready to move fast

Once your property is listed on the market, things can happen quickly. It’s important to be well prepared ahead of time so that you can be as responsive as possible to potential offers. “Fill out all the necessary documents, such as any seller disclosures, and have paperwork for recent repair work, home renovation costs and utility bills on-hand for any buyer requests that come in,” says Lee-Duffy.

Sellers who are slow in reaction time or unresponsive can lose buyers, adds Severance. “If the buyer feels that they are not being dealt with fairly, they are very likely to walk away,” she says.

10. Use your head, not your heart

Finally, try to remove emotion from the equation and see the process as a simple transaction — your home is no longer “home” but a product for sale. It’s not unusual for prospective buyers to request credits or repairs, and it’s easy as a seller to take offense, so try to have a clear understanding of what issues and items you may be willing to make concessions on.

“It’s important to take emotion out of it and remember that the buyer usually doesn’t expect to get everything they ask for,” says Severance. “Take a closer look at which requests are valid and fair, and offer something. The cost to you is not in giving the concession — it’s the expense of losing the buyer, putting the property back on the market, starting all over again and getting a potentially lower offer.”

Time to sell your house? We understand the need for speed and fairness. Connect with us, and together we’ll guide you on this journey to a swift and equitable deal. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [https://www.bankrate.com/real-estate/tips-for-selling-home/#fast]

Renewing a Rental Lease Agreement

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Feeling settled and happy in your current place? Fantastic news! At Home-Solutions, we understand the value of a comfortable and familiar home. Learn below our tips for a stress-free lease renewal process.

What You Should Know About Renewing a Rental Lease Agreement

When the end of a lease is on the horizon, you have a decision to make. If the current tenant wishes to stay longer, you can choose between renewing a lease agreement and finding another tenant. Finding a new tenant can be a time-consuming and costly process that involves marketing the property, sorting through applications, showing the unit, and screening potential renters. The longer it takes to find a new tenant, the more expensive the process becomes.

If you’re wondering whether or not to renew a current lease, check out our list of pros and cons and our tips on how to handle lease renewals.

Reasons to renew a lease

The Balance outlines a few reasons for renewing a lease, and the first two involve time and money. If a tenant chooses to stay with you, you can save the time you would have to spend searching for a replacement and then getting the apartment ready for a new tenant.

Eliminated the cost of finding a new tenant

The expense of turning over each vacant unit averages around $1,750 a month. This is before you even take into consideration your own personal time (or that of your property manager’s), which could be better spent on other endeavors.

If you increase the rent to keep up with market value, but don’t raise it so high that you make the current renter consider moving, you’ll receive more money each month without shelling out bucks to find a new tenant. You also won’t need to give the property a major overhaul, unless you agree to during lease negotiations.

Saves Time

Not only do you secure your cash flow and save money when you renew a lease, but you save time as well. Consider all the steps to finding a new tenant: advertising the property, sorting through applications, meeting with prospective tenants, and thoroughly screening them. Renewing a lease can be a much simpler process.

Reduces the Risk of vacancy

With a vacancy, you’re not earning income but you’re still potentially shelling out for a mortgage, utilities, and other expenses. Lost rent is especially significant when you rely on rental income to pay the mortgage. According to BiggerPockets, vacancy can leave a property exposed to potential break-ins and vandalism.

Reduces the Risk of Having a Bad Tenant Move In

Even with a thorough screening process, there’s always some uncertainty with a new tenant. If the tenant is responsible and pays their rent on time, it’s to your advantage to keep them around.

The Tenant is Unfamiliar 

Finally, you already have systems in place with the current tenant. For example, you are accustomed to how they pay each month and they know how to get in touch with you regarding maintenance issues. There’s always a learning curve with someone new.

Reasons not to renew a lease

May Not Have Reliable Tenants In the First Place

Finding a new tenant can cost you time and money, but so can chasing down rent. If your tenant has been late with rent on numerous occasions or broken the rules in the lease agreement, you may not wish to renew their lease. In this type of situation, it might make sense to look for a more reliable tenant.

Can Take the Opportunity to Renovate

Upgrading a unit can be a hassle when someone is living on the property, but our article on rental property features tenants look for shows that strategic upgrades such as installing stainless steel appliances can add more value to your unit. Using the time in between tenants to complete renovations can help you raise the rental price of the unit and attract higher paying renters in the long run.

There May Be Limits to the Amount You Can Raise

According to Realtor, rent-controlled areas have local statutes governing how often and how high a landlord can raise rent.

Even in areas not governed by rent control laws, if you raise the rent too high, you risk losing a stable tenant. Before raising the rent on a tenant that you want to keep, you should factor in the money you’ll save on tenant turnover.

How to Renew a Lease

Avail points out that some states require you to follow guidelines about renewal timeframes. In general, you should be proactive with renewals. Ask your tenant 90 days in advance whether they wish to renew the lease. This could get them thinking about renewal ahead of time so you potentially have advanced notice of their intentions. Then you have more time to get the ball rolling on advertising and searching for a new tenant.

According to RentPrep, you should create a new lease with appropriate changes to the rent and lease terms as appropriate. You can update the renewal to anything you agree on with your tenant, be it six months or two years.

How to Handle Negotiations for Lease Renewalls

If your tenant is requesting optional updates or changes, Avail suggests weighing the cost of turnover against the cost of their request. For example, a request to repaint the apartment might seem reasonable given the expenses associated with finding a new tenant. You might even find that you would need to update your property in order to rent it, so you’re still saving money.

When it comes to negotiating, your best bet is to do your research first. Use a fair market rent calculator and check similar properties in your area to see whether or not you should adjust your rent price. If the rent is too high, you may lose a good tenant to some place that is more affordable. Do you have good tenants who pays rent on time? You may want to encourage them to sign a longer lease at a reduced rate, or suggest renewing a lease agreement on a month to month basis. In the end, you’ll need to weigh the risks and costs of tenant turnover and decide if you are willing to make concessions to keep a good tenant longer.

If you do decide to not renew a lease, be sure to check your local and state housing laws on the matter so that you follow appropriate rules and regulations regarding lease termination, including required notices.

Common Questions on Renewing a Lease

What if the tenant does not want a rent renewall? 

When a lease expires, a tenant may opt to move, renew a lease, or continue to pay rent as a month to month tenant. If you offer a lease renewal, agreement is at the tenant’s discretion. If they choose not to renew a lease, they must vacate the property in accordance with the expiring lease.

Can the landlord or property manager include changes in a lease renewal agreement? 

Renewing a lease agreement might require a new contract with specified terms which is signed and dated. If there have been any changes to your rental policy during your renter’s period of tenancy, renewal may be a good time to update the lease to reflect these changes.

How long before the lease expiration should a renewal offer be sent?

This will be depend on the terms in the lease and applicable law. It’s wise to speak to your tenant 90 days before the lease expiration in order to give yourself enough time to find a new tenant.

Conclusion

There are often pros and cons to both sides when considering lease renewals. Keeping courteous tenants longer not only saves you time and money, but it also gives you the peace of mind that comes with having someone familiar in your rental unit. However, if you currently have an undesirable tenant, it may be worth the time and money to consider turning over your rental unit.

If you decide to turnover your rental unit, a thorough screening process can greatly increase the chances of you getting a higher quality tenant with a longer average tenure. TransUnion SmartMove helps you make smarter leasing decisions with a full tenant credit report, tenant background check and criminal report, as well as an eviction check report, from a source you can trust. You also receive a ResidentScore check, built specifically to look at lease outcomes.

Empower yourself with renewal knowledge and keep your happy place thriving! Connect with Home-Solutions experts for personalized guidance and solutions for property owners. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [ https://www.mysmartmove.com/blog/what-landlords-should-know-about-lease-renewals ]

Pros and Cons of Allowing Pets in Rental Properties

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For many renters, pets are cherished members of the family. But for landlords, the question of allowing furry friends in their properties can be a heck of a dilemma. Let’s explore both sides of the leash.

Pros and Cons of Allowing Pets in Rental Properties

Most pet owners consider their pet as family, and won’t even consider an apartment that would require them to give their beloved animal up. When you think about how many potential tenants are looking for a rental property that will accept pets, it may be worth your while to welcome furry, four-legged creatures. On the other hand, you may be concerned about pet damage to your rental property.

As with any decision in the rental business, there are pros and cons to your choices. We’ve outlined these below, along with information on how to screen a tenant with pets and some tips for allowing pets in rental properties.

Take a look at our guide on whether or not you should allow pets in your rental property and use the information to determine which stance towards pets is the best for your rental business.

Pros to Allowing Pets in Rental Properties

There are several positives to establishing a pet-friendly property:

1. Higher Rent

Market value determines the amount you can set your rent. By allowing pets in rentals (large dogs in particular), especially when very few properties in your neighborhood are pet-friendly, you may be able to command a higher rent. At the very least, it could give you a leg up on the competition if a decision comes down to your property and a similar one that doesn’t allow pets.

2. Longer Tenure

The more a tenant considers an abode their home, the more likely they are to renew a lease. Certainly, settling in with a pet can make a rental feel like a permanent residence. Additionally, The Balance points out that it can be harder for pet owners to find alternate dwellings that will take both them and their pet.

3. Larger Pool of Applicants

Pet ownership in the United States is at an all-time high. According to the 2017-2018 APPA National Pet Owners Survey, 68% of U.S. households own a pet. If your rental property is marketed towards a younger market, there’s an even higher likelihood that a pet is part of the package. Zillow reports that over 76% of millennial renters own pets. Allowing pets attracts more tenants to your property and gives you more tenants to choose from, so you can find the best fit.

4. Responsible Pet Owners Are More Likely to Be Responsible Tenants

Rentalutions points out that taking care of a pet requires a lot of time and attention, and there’s a likelihood that behavior will translate into renters treating your property with the same amount of respect and energy.

Cons to Allowing Pets on Your Property

Allowing pets on your property can pose risks, although some of these can be reduced. Here are a few concerns that may arise:

1. Pet Damage

There are certain behaviors that landlords associate with pets and property damage, including urinating on carpets, chewing wood, leaving “calling cards” in public spaces, and destroying landscaping.

2. Noise

Excessive barking can be disruptive to neighbors, and it can be hard to keep noise levels at manageable levels when there are multiple dogs, cats, and birds on the property.

3. Odor

If litter boxes aren’t cleaned or pet accidents occur in the hallway, offensive odors can build up in common areas. Animals that aren’t properly groomed or bathed can cause other odors inside the unit.

4. Injuries to Other Tenants

There is a risk of physical injuries to neighbors and yourself. You may want to consider requiring pet owners to hold adequate renters insurance. NerdWallet states that renters insurance may potentially provide coverage against dog bites on the property.

How to Screen Tenants with Pets

Whether or not you want to approve the owner should be your first consideration, and their pet second. A thorough online tenant screening is your first step to determining if a tenant is a good fit for your property, and may help you answer questions about their responsibility as a pet owner. Along with checking a prospective tenant’s credit, criminal, and eviction history, checking references is always a good idea. A reference check can also help you determine whether there has been trouble with their pets in the past.

The Massachusetts Animal Coalition recommends meeting the pet along with the tenant in order to assess whether the applicant is a responsible pet owner. Rather than simply limiting certain pets based on weight or breed, they suggest basing your decision on a case-by-case basis.

You’ll want to see for yourself if the animal is well-groomed and well-behaved. In the case of a dog, you’ll be able to note if they are calm and responsive to the owner’s commands.

Some questions you may want to ask:

  1. Is the pet left alone for long periods of time?
  2. What type of regular exercise does your pet get?
  3. Are they spayed or neutered?
  4. Who looks after the pet when you are away?
  5. Has your dog had any obedience training?
  6. Is your pet properly licensed?
  7. How do you control fleas?

While there are generally no right or wrong answers to this line of questioning, it can tell you if the owner is responsible and reasonable when it comes to their pet.

Rental Pet Policy Tips

If you’re concerned about damage to your property, it would be wise to include a pet policy and address pets in the lease. You should provide all tenants, including those without animals, with a copy of your pet policy. A tenant may decide to get a pet later, and it’s important they are clear on your expectations and provisions up front.

Nolo advises you to only allow pets you approve beforehand, and to make it clear that you reserve the right to ask the tenant to remove the pet if they don’t comply with your policies. You may want to change the policy later on, so it’s a good idea to state clearly that you have the right to amend the rules by giving tenants reasonable notice.

Another option to mitigate risk is to charge pet fees that will cover potential damages or pay for professional carpet and air duct cleaning so that you don’t lose future tenants (some of which may have allergies). Bankrate points out that tenants are more motivated to prevent pet-related damage if the fee is refundable. You’ll also want to check your state and local housing laws to see whether you can add an additional pet deposit and how much you are allowed to collect.

How to Avoid Potential Pet Damages

According to the San Francisco SPCA, there are a few guidelines to consider when setting up your pet policies. The first, which we’ve already mentioned, is to make sure your policies are in writing.

Careful tenant screening of each applicant is your best bet at successfully handling pets on your property. Finding a good tenant is based on much more than whether or not they have a furry companion, and if they are responsible in other ways–such as managing their finances–pets may not pose a problem.

TransUnion SmartMove is the landlord’s online tenant screening solution for great reports, great convenience, and great tenants. Landlords receive a renter credit report, rental criminal background check, and eviction check to make informed, timely screening decisions.

Ready to make a positive decision about pets in your rental property? Connect with Home-Solutions! We are experts in personalized guidance and solutions for property owners. Call us today at (954) 545-3027 and follow us on Instagram @homesolutionspm.

Reference: [ https://www.mysmartmove.com/blog/allowing-pets-in-rental-properties ]

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