Wednesday, June 28. 2006Landlord Etiquette And The Bottom Line
DON’T be that guy. (Here, “guy� refers to all potential sexes of Landlord.) It’s hard enough managing the normal day-to-day issues that come up in relation to the physical property. But for the most part, those problems are expected and should be planned for.
Appliance failure. Overflowing toilets. Pilot light needs relighting. Typical stuff. But it shouldn’t be seen as little more than an obligatory pain in the ass. Repairs and maintenance are a fine opportunity to show tenants that you ARE NOT that guy. You won’t schedule repairs INSIDE a tenant’s unit without letting them know beforehand. Fix leaky roofs before your tenants drown. And speak to those who pay you money with common courtesy, if not outright respect. It’s beyond important to limit the variable nature of all the cost centers associated with being a Landlord. If your tenants LOATHE you, your costs will increase. Upset tenants tend to be more vindictive, don’t report small problems before they blow up, and are much more likely to withhold remittance of monthly rent. Suddenly, those cost centers will move margins into the red. If your tenants like and respect you, your job will exponentially easier. And your margins will have a better chance of staying in the black. Monday, June 26. 2006To Sell Or To Hold?
Margaret Smith and Gary Smith in the Department of Economics at Pomona College have several interesting takes on the dynamics between purchase/current-market price and reasonable rent rates. Much of it is based on return assumptions such as: I expect a total 10% annual return on the combination of my initial + ongoing capital outlay (predicted, of course), over the course of owning this property. To answer the question: Is the current market price a good deal?
Which can be a useful tool in estimating rent increases. But what the discussion really does is help a Landlord to keep their options open, and to help quantify real (expectations-based) bargains in the market (for purchase). Sure, they developed their models for the rent vs. buy question, and did not necessarily tailor it to the specific needs of Landlords. But it is a useful tool with which to approach property ownership when considering the mindsets of your tenants. Maybe, just maybe, they’d be better off buying (given their ratio of rent to mortgage) your property a price where you’d make a triple digit return on your total invested capital. If rents and property values move around at speculators’ rates in your area(s), perhaps flipping multiplexes to one of your tenants as “partial owner-occupied� is a liquidation event worth considering. Crunch the numbers, and perhaps polish up your sales pitch. Monday, June 19. 2006Liability Blurbed
Insurance horror stories. You'd think there would be a lawsuit hitting you every hour. What with tenants slipping and falling on driveways all the time. Knifings by the trashcans. Branches crashing down on baby carriages or whatever. All the insurance alternatives out there would have you believe that the sky is constantly falling on your tenants, on your property, on your watch. Constantly.
It's a bit difficult to say what's reasonable for the average Landlord to expect in terms of liability-proofing. That depends on the specifics of the property, and the legal powers that reside over its location. But there’s an over-abundance of general information out there on the liabilities inherited by you as a landlord. Mold and Mildew. Asbestos. Radon. Lead paint. Slippery surfaces, handrail quality, stairwell integrity. Emergency access. Security against criminal acts between your tenants, or brought about by outsiders (select your state, etc). In The U.K., even terrorism gets tossed on the lot. Landlords are pretty much on the hook for more than all levels of government and law enforcement combined. Fantastic. There's no real fair way of estimating your real liability. Best to keep on your guard though. Check your property regularly, and consider inviting your insurance agent over for dinner every now and again. Perhaps a fruit basket. Just to keep in their good graces. Thursday, June 15. 2006
Curbside Manner Unveiled Posted by Craig
in Leasing & Marketing at
21:19
Comments (0) Trackbacks (0) Curbside Manner Unveiled
Neighborhood profiles. Everyone can agree that it’s a grand idea. It would be fantastic to find a place where you could get the best idea as to what kind of area you might be moving into. Whether you’re buying, renting, or just planning on squatting under a nearby bridge. Curbside manner is extremely important in many people’s decisions to live somewhere.
Because where we live, in many ways, helps us define who we are. At least, how we’d like everyone else to define us. In comes Love Your Area. Sure, the focus is to funnel local MLS listings in Austin, TX. All art has to have funding from somewhere. But look at these fantastic pictorial-storyboards describing experiences and life in these neighborhoods! [click on the numbers or red dots to see stories] Such an explosion of creative personality! The stories told by people who actually live in these areas are fascinating (except for the ones which are white text over white photos, which is rather painful to try and decipher, but we digress). Just tool around the site. Gives great resident insights. Special shout-out to starkserious, where we wandered into the Love Your Area link. Wednesday, June 14. 2006
Why Hire A Property Manager Posted by Eryn
in Leasing & Marketing at
08:08
Comments (0) Trackbacks (0) Why Hire A Property Manager If you are currently a do-it-yourself landlord, you may wonder why anyone would choose to hire a property manager. It is entirely feasible for an individual to be solely responsible for the day-to-day function and maintenance of his or her properties. However, most serious investors work with a group of professionals who can help with a variety of responsibilities. A property manager’s role is far more complex than simply showing space, signing leases, and collecting rents. In reality, the property manager attempts to generate the greatest possible net income for the owners of an investment property over the economic life of that property. Thus, the property manager has three goals: A property manager can become one of your greatest assets, second only to the properties themselves. A good property manager can mean the difference between whether your business continues to grow or becomes stagnant and dies. Property managers can assist with the following responsibilities:
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