Improving & rehabs

Radon is a colorless, odorless gas that occurs naturally in the earth from the decay of radioactive uranium in the soil. However, radon exposure in a domestic setting is actually a dangerous threat to your health and your real-estate business.

What are the risks?

Radon gas has been found to be an extremely toxic carcinogen. Studies on the effects of radon gas on the human community are considered conclusive since they use human test subjects instead of animals. A definitive link has been found between radon exposure and lung cancer in humans. Smokers are at a higher risk for developing lung cancer due to radon exposure than nonsmokers. According to the latest EPA studies, radon accounts for approximately 21,000 lung cancer deaths in the United States each year.

Where is radon found?

Radon gas is found naturally in the soil and in groundwater. Unfortunately, it can seep up through the earth and leak into your home or property. The construction of contemporary houses to be relatively airtight for air conditioning efficiency also allows for the accumulation of radon gas within the structure. To put it in perspective, outside air typically has traces of radon that measure .4 pCI/L. According to the EPA, the average level of radon gas our homes is 1.3 pCI/L. This doesn't mean that you're safe if you have a radon level of 1.3 in your home. It does mean that two non-smokers in a thousand who are exposed to this level could develop lung cancer as a result. For smokers, 20 out of 1,000 could develop lung cancer from radon exposure. As you can see, this is not a laughing matter.
Continue reading "Radon Gas: An Invisible Threat to Your Real-Estate Business"

If you own a home built before 1978, chances are that it was built with materials and paint that contain lead. While this may seem of little consequence, it can have a serious impact on your real-estate business.

What are the risks of lead-based paint?

Lead poisoning is a common problem among children and can even affect fetuses in utero. Lead poisoning has been associated with numerous neurological issues including behavioral problems, memory loss, and learning disabilities. In most cases, the damage is permanent and irreversible.

Where is lead commonly found?

Lead is most commonly found in paint applied internally or externally to a house before 1978. Lead-based paint in good condition usually isn't considered a hazard. However, if any chipping or deterioration of the surface of the lead-based paint occurs, it's important to have repairs made immediately. Also, if you find lead-based paint in areas where children could put paint chips in their mouth or chew on the surface, such as windowsills, have the paint removed immediately. Continue reading "Paint Chips Risk More Than Health"

New investors often aren't sure where to begin when updating a property. The wrong choices in colors or materials can completely turn off a potential tenant or buyer. Owners and investors must use their judgment regarding the needs of each individual property. Assuming that the property has no structural issues, you can't go wrong if you focus on these five areas of improvement.

Lighten and Brighten

Natural lighting induces feelings of well-being. To help maximize its effect, make sure all windows are clean. Raise or remove heavy window treatments that block light. Solar screens improve energy efficiency but reduce natural light. Consider removing solar screens while showing a property, and return them as a bonus feature after you sell or lease the property.

When you're showing a property to a potential tenant or buyer, make sure all blinds/curtains are open to let in the light. Replace tacky window treatments or damaged blinds/shades immediately, as they can cause a huge distraction. If a room has few windows, investigate options for adding can lights or track lighting to brighten things up a bit. Keeping wall colors neutral and light can also maximize lighting effects in a room.

Clean and Declutter

Nothing turns away a potential tenant or buyer more quickly than a property that is dirty and littered with trash and debris. Cleaning is not costly and will drastically improve the look, feel, and potentially the smell of your property.

If you don't intend to replace carpets, have them professionally steam-cleaned and spot treated. Also, have the bathrooms and kitchen cleaned and sanitized, and ensure that the windows are cleaned throughout the property.

Outdoors, focus your energy on getting rid of anything that remotely resembles trash. Remove any clutter that could detract from the look of the property.

Plumbing and Electrical

If you're working with an older property, it's a good idea to bring the plumbing and electrical systems up to code. This is especially important if you plan to act as landlord and don't want to spend every spare moment as a handyman. Electrical issues are also dangerous and present a threat to not only your investment but also to the health and safety of your tenants.

Landscaping

Landscaping can be as involved or as minimal as you want. Botanical enhancements can add greatly to curb appeal. In general, try to select plants that are low maintenance, hardy, and not seasonal. You may want to research plants that are native or that thrive in your area. In Nevada and other areas of the country, xeriscaping is very popular. Creating a rock garden is another way to minimize maintenance and water use. Whatever you decide, the best places to focus your efforts are near entrances to the dwelling and along porches and walkways.

Kitchen and Bath Upgrades

Many people will advise you to spend most of your money on improvements in the kitchen and bathrooms. I completely agree -- however, this category can raise your initial cost from the hundreds to potentially thousands. Flooring, counters, and fixtures are typically the first places to start in these rooms. You'll find that certain materials will increase your overhead but not necessarily your return on investment.

If your property contains old, cracked, or peeling vinyl flooring, you might find it worthwhile to replace the flooring. If you can afford higher quality flooring, current trends lean toward large tiles, stained/etched concrete, and wood or wood-laminate flooring. In homes that were built before 1960, you could be surprised to find original hardwood flooring beneath existing carpet. In this case, you've found a jewel in the rough because real hardwoods are currently very sought-after and expensive to install. Although it may be more expensive, consider refinishing the hardwoods to drastically increase the resale of your property. Carpet is still popular in bedrooms, but living areas and heavy traffic areas are typically being upgraded. Carpet in kitchens or around the wet areas in a bathroom is a huge no-no. If you own a property that features carpets in these areas, don't hesitate to upgrade immediately.

Countertops are also a nice improvement that can increase the appeal of a kitchen or bathroom. Tile is popular, but the grout around tile makes it less desirable for areas of food preparation. Grout also has a tendency to mildew and stain, but a good sealant can minimize these problems. In higher-end homes, countertop materials like granite, marble, and even custom concrete look appealing but are more costly.

Fixtures provide the widest range of possibilities for upgrades. Replacing lighting or plumbing fixtures in kitchens and bathrooms can vastly improve the look and feel of a property. Make sure the fixtures add interest but don't seem out of place. One improvement that can make a difference to the resale of a property is to replace a traditional tub with a garden or jetted tub. Many buyers and renters in today's market find this a necessary amenity.

As a general rule, draw up a plan for the subject property before you begin upgrades. Decide how to maximize the impact of your improvements with minimum initial cost unless you're targeting a market that values quality materials and upgrades. Again, check the location of your property to determine whether the neighborhood can support your asking price. Before you get gung-ho about renovations, remember that you can't justify the upgrades if you can't expect a return on them.

I recently discovered the Sell Right Home Staging website, the most informative tool I've seen to date about improvements you should make to prepare a house for sale or rent. I particularly recommend reading the site's useful statistics about home-improvement investments (PDF).