- by Jeff Takle on November 25, 2008
Free Pet Addendum. I thought you might find it useful if we periodically posted up some of our most-download landlord forms.
All forms are available for your use, free from RentingYourHome, but to do so I need to make the disclaimer that if you download a form, you agree to hold RentingYourHome harmless for any damages and indemnify the company. We make no warranties or guarantees that every legal form works in every jurisdiction under every situation. So, when in doubt check with a local attorney, real estate agent, or fellow landlord.
That said, we aim to strike a balance between forms that are meaty enough to protect a landlord’s liability, but general enough to avoid violating any state laws. As always, we welcome feedback.
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- by Jeff Takle on November 24, 2008
Did you know that 80% of rental single family homes are owned by individual landlords who do not use a property management service? It’s a huge market. Around 10 million homes in America.
Did you know that over 90% of those landlord owners used a real estate agent?
Did you know that less than 1% of those agents provide any ongoing service to those landlords?
For the amount of money — and value — that a good real estate agent brings to the table when a landlord is buying or selling, it’s mind-boggling that after closing, agents immediately walk away and look for the next client.
More…
- by Jeff Takle on November 21, 2008
Just got back from this year's Greenbuild conference, an absolutely HUGE annual builder's conference, this year in Boston, MA. There were probably 1,000 vendors selling everything from flooring, to rain barrels, to reusable shingles, concrete, desks, automated homes…you name it.
For a bunch of stuff, my wife turned to me and said, "Is that really eco-friendly?" Probably not.
Which boils down to one thing: call something "Eco" or "Green" and it sells.
So this year, I'm becoming the first "Green, Eco-friendly Landlord". Just ask me what I've done to go green and I'll get into the weeds about the flyash content of my cinder blocks. I'll talk about the eco-friendly asbestos and plaster I use. Will you buy it?
Apparently most people would.
- by Jeff Takle on November 20, 2008
I like reading a wide spectrum of news sources, some of which are heavily slanted in their coverage. I like to think that it's good. Helps keep the mind open to new ideas and different perspectives.
In this month's issue of The American, a right-leaning publication that covers politics, ethics, and the economy, they ran an interesting poll…What are the most prestigious occupations?
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- by Jeff Takle on November 18, 2008
We're in the middle of some tough times. I got a call last night from another good friend who's just been laid off. That makes a total of about 30% of my graduating class at Babson College MBAs who are still looking for a job or who've been laid off. That's not encouraging.
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- by Jeff Takle on November 17, 2008
Generally, you should advertise wherever potential renters in your area are likely to see the ads. For example, if you live in a college town, put up flyers ($) at the college bookstore, Laundromats, and coffee shops. There are also numerous free online advertising sites like www.Craigslist.com, www.Oodle.com, and many others. Additionally, you may choose to pay for advertising in the local newspaper ($$$$) or online pay sites like www.Apartments.com ($$$). Finally, consider offering referrals (if allowed) to friends, family, and your current tenants.
The three issues you'll want to consider are:
- How much time do I want to spend advertising?
- How much money do I want to spend?
- How much "Flake Factor" am I willing to tolerate?
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- by Jeff Takle on November 11, 2008
Check out this report from last week, courtesy of Urban Land Institute's brain trust. If everyone's scrambling because of dropping home prices, it's probably time to buy.
I've also been reading more lately, comments from "experts" who say the market is going to drop again next year by 20%-30%. My problem with that is this: Those are the same experts who predicted in 2005 that prices would continue to rise steadily through 2010.
Take a look around you. In some Boston areas, home prices have dropped 40% in the past two years. That's the evidence that property is cheaper now than before. The big question is, do you think prices have dropped back to what you would consider "fair value" based on the economic conditions in your area? Are they at a place where a reasonable family on an average income (for your area) can afford a place to live? Or, have prices dropped below "fair value" in your estimation? These are the questions we should be using to decide whether or not to buy today. The "experts" forecasting…future guessing…crystal ball using…that's what got the country into this mess.
- by Jeff Takle on November 10, 2008
House Resolution H.R. 7126, proposed in September by Congressman Bill Richardson, would put a few new restrictions on landlords buying or selling homes in foreclosure.
Among the provisions are:
- Landlord must notify the tenant that the property is going into foreclosure.
- Tenant retains right to serve out the rest of their lease, even if that extends beyond the foreclosure date.
- It also appears that the tenant cannot be evicted for a 6-month period beginning upon the foreclosure of the mortgage.
What does this mean for you? So far, it looks like Congress is putting reasonable restrictions on landlords who face foreclosure. If you're looking to buy up foreclosures to add to the number of rentals you own, this bill would require that you keep the existing tenants, which may not be such a bad thing.
Most foreclosed homes haven't gotten "tender love and care" in a while and need your cash for improvements. By retaining the old tenants but putting money into improvements, tenants see their homes getting better. This is a good way to retain good tenants. It's also a good justification to bump up the rents to market value if they leave.
So far, the bill is stuck in the House. But I'll keep an eye out.
- by Jeff Takle on November 5, 2008
The best answer is to look at what other rentals that are comparable to yours (comps) are being rented at. If you own a modern two-bedroom two-bath condo near public transportation with assigned parking, find comps in your neighborhood and see what they are renting for. Websites like www.Rentometer.com can provide general guidance, but a better technique would be to visit 2-3 comps in your area and take a look inside. A good rule of thumb is not to be the highest priced rental on the market. It's better to charge a moderate price and have it rent quickly to a high quality tenant than to overprice a unit and have it sit vacant or only get 1-2 tenants to choose from.
Due Diligence Checklist. I thought you might find it useful if we periodically posted up some of our most-download landlord forms. Use this due diligence checklist to screen any new rental properties that you might want to buy. Having a good list helps prevent you from making stupid mistakes!
