Property Management For Beginners

Property Management

Property Management

Property Management For Beginners

Many real estate investors can tell you that investing in single-family homes can be quite lucrative.  When done properly with planning and wise execution a person can secure their financial future.  Over time real estate has shown to be a safe long-term investment that can help build a solid financial portfolio but before you dive into investing in real estate you may want to know a few more details on how to manage the property and tenants.

Buying a home whether it be for personal use or as a rental can be very expensive. You want to determine how the home will be used and the type of market you wish to invest in.  Typically, single-family homes do quite well in the rental market, however the rent must be what a person is willing to pay.  A good way to maintain good flexibility in how much rent to ask is by the down payment you put on the purchase of the home.  The more you put down the lower the mortgage payment will be hence you may be allowed to rent the home for a fair market price.

When setting your rent you will want to take into consideration insurance, fees, and association dues that you may be required to pay.

Even if you are buying a home to use a rental you want to make sure it is in good condition with all the appliances operational.  Remember that many tenants won’t take as good of care as things as if the owner lived there.  As the landlord you will be responsible for the upkeep of the main things in the home, such as; the furnace, air conditioner, roof, etc.

Finding the right tenant is critical to your success.  This can be tricky, especially since you spend a short amount of time with the potential tenant and really don’t get to know them.  It is always a good idea to run a credit check on applicants and it is okay to go with your “gut feeling”.

When it comes to renting out your single-family home you are responsible for the advertising, screening applicants, handling the contracts, the collection of rent, taking care of emergencies, making repairs in a timely manner, etc..  If you don’t feel up to the challenge, don’t let this hold you back, you can always hire a professional real estate management company to help with the bulk of the work.

Boise Real Estate Info provides resources, statistics, and information for home buyers and sellers in the Boise area. Visit to find a professional Boise Idaho Real Estate Agent to help you get started.

Property Management For Beginners

Buying And Renting Your First Rental Property


Areas to consider when you start out with your first rental property, and your role as a landlord. (Please note this deals with landlords in the United Kingdom…… different requirements will apply in different countries)

Once you have decided that the finances can be put together to allow you to buy a rental property, and you embark upon your project to build a rental portfolio, you have to realise that your role as a landlord gives you an inordinate number of plates to keep spinning together!

Don’t get me wrong, being a landlord is exciting and fulfilling, and with the right advice, it can be very profitable!

With your first rental property (as part of your future rental portfolio!), you will be able to lease it out for financial gain. However, you will now be responsible for a number of legal and safety requirements.

Your responsibilities:

Quite naturally, you realise that the building you have bought must be maintained by you.

In addition to the above, you are now responsible for anyone who rents your rental property.

Unfortunately, you may find that occasionally you may have to deal with tenants who are troublesome and tenants who cause damage in the property.

Legal and Safety Issues

If you are a landlord, then not only do you need to keep your property in good condition, but there are a number of legal safety and maintenance issues that you must adhere to. If you don’t fulfil these duties, you will be potentially liable for any accidents that occur to your tenants whilst they are in the property.

It is obvious that a well maintained rental property will be better equipped to attract tenants and keep your property rental income returns at a healthy level.

In order to help you keep your tenants happy and safe in your rental property, and also keeping you safe from any legal problems I have noted below regulatory requirements you really must attend to:

Repair : Under the” Landlord and Tenant Act 1985″ it is your responsibility to ensure the property being rented is looked after, and kept well maintained inside and outside

Furnishings: The regulation titled “The Furniture and Furnishings (Fire Safety Amendment) Regulations 1993” is important to understand.

Faulty or unsafe furniture and fittings could result in a tenant being seriously injured or even killed. It is imperative that you check your furnishings are both fire resistant and comply with the latest regulations.

Gas safety : Under the latest regulations ” The Gas Safety (Installation and Use) Regulations 1998 ” it is your responsibility to ensure all gas appliances in the property are fully maintained and are covered by an annual Gas Safety Certificate which is implemented by a fully qualified Gas Engineer.

Electrical safety: the regulation “The Electrical Equipment (Safety) Regulations 1994 “insists that all wiring, fuses and electrical equipment are working properly and not a danger to your tenants. An annual Electrical Safety Certificate, carried out by a suitably qualified Electrical Engineer will help ensure your electrical equipment is up to the standards required.

Smoke Alarms: Under “The Building Regulations 1991 – Smoke Alarms” you will find an important piece of legislation. If your property was built after 1992, smoke detectors and alarms that are mains operated must be fitted in the property. This does not mean that you should not fit smoke alarms in older properties. To ensure your tenants safety and your peace of mind, it is a requirement that, at the very least, smoke alarms (battery operated) are fitted in the “danger “areas throughout your rental property.

Energy Performance Certificates (EPCs) : it is now a legal requirement to have an EPC carried out by a qualified person (normally a surveyor) and have the EPC displayed in your property.

Now you have carried out all the above required works, you definately can say that your rental property is ready to be rented out.!

 

If you do nothing else.. read below for your own sake!

It is quite obvious that should you not adhere to the legal requirements outlined above, you will be deemed to be an irresponsible landlord, and, heaven forbid, should an incident occur as a result of your negligence, the words ” not have a leg to stand on” will have real meaning when you find yourself in Court facing the prospect of heavy fines and possible time in HM’s rental property!

The costs to comply are not as expensive as you would think, and the resulting “peace of mind” factor makes the costs involved in making your rental property safe and legal … a case of money well spent!

If you feel that you will not have sufficient time to properly look after your rental property and your tenants, it is quite in order to find a rental agent who has experience in all aspects of property rental.

Although a rental agent will charge a fee, if the rental agent is good, you will end up with a safe and secure property, coupled with tenants in your rental property, providing you with the rental income that you seek.

Give yourself a head start when looking for information and advice when it comes to creating an increasing rental property income when you start to build a rental portfolio. Visit this website http://www.buildarentalportfolio.com for free in depth rental property information and outstanding real estate tips and ideas for expanding your rental property portfolio.

Houston Real Estate Software For Higher Earnings

Asset investment is a organisation that demands more time to create the most benefit. But in the fast globe of today, who has so a lot time to invest? For the two gurus and beginners Houston Real Estate software is what it takes to decrease the time of their work. FlipSmart is the name of the software which can lead any newcomer into the corporation, and make them practiced within a short while. However, for newcomers, you should initially try utilizing this flipping software as It will eventually inform you about the kind of Property to be invested in. this will not only act as a leading tool but will also stop your investment from failing.

But, before you contemplate this software as the ideal in the industry, you should be adept with some of its features because of which, it has gained an upper hand, in the marketplace. With this software, you could see if a Property is Correct for your investment or not. A brief calculation of ten to twenty minutes will show you the appropriateness of the Houston Real Estate Asset for you to purchase it. You might well pose the question of why you should use this software, or any such software, for which matter. The very first and foremost reason is which, it establishes a realistic budget for the investor. A pretty frequent difficulty faced by most investors is that they fail to create a correct examination of their cost limit before purchase. With FlipSmart, budgeting will now be easy and wise.

While estimating the cost of a Property, investors generally forget to add the hidden costs, amidst the miscellaneous Fees. This hidden cost pushes the earnings margin further, and in a much successful way. Hence, adding them is quite essential for the Realtor. The third feature of it is even more Beneficial than The first two. Most Houston Real Estate investors tend to venture into a Property by its first sight. No matter if or not the Asset is suitable for your investment can be judged by this software. This might save you from incurring potential losses by investing in a failing project.

You could also usage this Houston Real Estate software to determine the percentage of earnings and decrease Via an investment. making use of it prior to Buying will help immensely.

If, you want to invest on a Houston Real Estate Asset for organization purpose, call us. We sell all sorts of premises at lowdown expense. In case you are searching for Houston Realtors in your location please go to our internet site today by simply clicking the backlink.

Related Real Estate Lead Generation Software Articles

Billion Dollar Property Developer Bob Andersen Reveals Proven Strategies To Build Massive Wealth


http://www.westloh.com for more millionaire interviews, plus your free report worth !

In this interview you will discover:

– Different types of property development and which type is the best for you

– The biggest mistakes made by first-time property developers and how to avoid them

– How becoming a property developer can save you thousands in fees and taxes

– How to build your property development portfolio in just a few hours a day

– The Mindset of a successful property developer as compared to a hobbyist property investor

Transcript (extract only – get the full transcript at http://www.westloh.com )
West: Welcome, folks, to today’s interview. And today, I’m very privileged to have with us Mr. Bob Andersen. Now Bob has been involved in property development for a very long time, over thirty years. And he’s in a conglomerate of people who control over billion worth of property. And that’s a super, super impressive stat.

What’s more impressive is Bob not only has a personal portfolio but he’s also doing it day to day and he’s also teaching people how to do it. So we’re very lucky to have Bob with us today. And I want to welcome you to today’s interview, Bob.

Bob: Thanks, West. Great to be here.

West: Absolutely. Now tell us, Bob, when you speak to people and they ask you what it is that you do—because I know you’ve got such a range of skill set—what is it essentially that people need to know about you?

Bob: Well West, primarily, I’m in the property investment, property development area. But ultimately, what I do is I use property development more as a vehicle for getting property investment at cost price whether it’s for myself or for investor clients. Property development is really a vehicle to accumulate the asset class of property, primarily residential property. So yup, I’m a developer but there’s a reason for being a developer.

So what do I do? I’m a developer and I’m an investor and my clients are all investors.

West: So a lot of people who are kind of thinking of getting into development but maybe they’ve only done a couple of residential or maybe they haven’t done any property and they’re looking at getting into something on a small level, is that something that you help people primarily and teach people how to do as well?

Bob: Yeah. I heard Mal saying, “Never pay retail.” So myself, that’s part of the reason I got involved in property development, really. It was a vehicle for getting property investments at a—well, not wholesale price—but absolute cost price.

So people, sometimes they haven’t done a development at all and they’re investors with one or two investments of their own and they see that potentially property development could be a great way of accumulating property investments fast and at cost. So with those people, I have a whole property development education program for those people who want to make the next step up from property investor to just more property developer.

(end extract)

If you enjoyed this interview, please share, rate and comment. Thanks for visiting!

🙂

http://www.westloh.com for more millionaire interviews, plus your free report “The Money Mindset” worth !
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8 Steps Needed To Buy Your Next Rental Property In 90 Days Or Less

Rental Property

Rental Property

8 Steps Needed To Buy Your Next Rental Property In 90 Days Or Less

http://www.biggerpockets.com/renewsblog/2014/03/08/buy-rental-property/ Discover the 8 steps needed to buy your next rental property in 90 days or less. Also, download a free one-page PDF to help you see the “big picture!”

I was sitting down for dinner with a friend the other night and he said to me “Brandon, I want to buy my first property but there is so much information out there. I just want to see the whole process, neatly outlined, so I know my step by step plan.”

And I thought “Isn’t’ that we all want when learning something new?

We want to see the whole picture, not just broken up parts.

Today I want to help you do just that — learn the step by step process for getting your first rental property in the next 90 days. For those of you who like something tangible to look at, at the end of this post I’ll show you where you can download a free 1-page PDF summary of this process- neat and clean, just like my buddy ordered.



Alright, let’s get started.

Step one: Get Pre-Approved.

Unless you plan on paying cash (which would be great) you are going to need a pre-approval letter from the bank or other lender.

We start with this step because I don’t want you wasting time only to find out you can’t afford it. Your lender will help you know exactly how much cash you’ll need.

Step Two: Get in Touch With a Real Estate Agent.

Don’t just call the name on the park bench by your house.

Look for an agent who is willing to spend the time needed to help you get the perfect deal.

Get recommendations from others and pick someone you get along great with.

The best part is, a real estate agent is paid by the seller- so it’s free for you to use one!

Step Three: Define What You are Looking For.

Let your agent know exactly what kind of property you are interested in. If it’s a duplex, you don’t want to waste time looking at single family homes. And vise versa.

Step Four: Start Looking

Yes, you’ll actually need to spend some afternoons with your real estate agent looking at potential properties. And like dating, the more you look at, the better you’ll recognize “The right one” when it comes along.

Don’t be afraid of looking at properties that might need a little TLC, but don’t get in over your head either. Once you find the right one, you’ll need to do Step Five, which is




Rental Property

Step Five: Do The Math

A rental property is only as strong as it’s math. (yes, you should Tweet that)

Run the numbers and make sure it pencils out. Be conservative, and be sure to plan for property management, vacancy, repairs, and more.

I’d recommend running the numbers through a good property analysis tool, like The BiggerPockets Rental Property Calculator to make sure you are looking at all the facts and figures.

Moving On

Step Six: Make an Offer

Okay repeat after me:

I WILL NOT OVERPAY

Negotiate with the seller and stick to your math from step 5.

You might go back and forth a few times, and you might even lose the deal and have to start over. But whatever you do …

Do Not Overpay.

Soon enough you’ll get an offer accepted and you’ll be ready to move on to

Step Seven: Do Your Due Diligence

At this point, you want to make sure there are no hidden surprises at the property.

Hire a property inspector to walk through every inch of the property looking for potential problems.

If you find any, either :

suck it up if it’s not too bad,
ask the seller to fix it if it is bad,
and if it’s really bad — walk away.
During this time your agent will help you shuffle the correct paperwork between them, your lender, and your title company.



Step 8: Close on the Property

It’s been a journey, but finally you are ready to close.

You’ll show up to the Title Company (or attorney) and they’ll take care of the rest. You might even get some chocolate at the front desk! Once the title and deed are recorded at the county, you’ll get the keys and be the proud owner of your very own rental property!

Now comes the fun part — managing your properties. And for tips on that, you’ll have to wait for another blog post!

Screen Shot 2014-03-07 at 5.27.08 PMAs promised above, I created a simple 1-page PDF of these steps so you can print it out and hang it on your wall or just keep in your files. To get it, simply click the photo on the right and head over the BiggerPockets FilePlace and download it for free!

Finally, if you could do me two quick favors:

Share this video on your Facebook or Twitter account
Leave me a comment below. I love comments and would love to chat more about this stuff!

8 Steps Needed To Buy Your Next Rental Property In 90 Days Or Less