Tag: #market

How to Rent Your House, Part 2

Posted on | by Allison Zuck

Here’s the second part about how to rent your home! With this list, you should have a good start on thinking about renting your property!

Charging Rent

This actually simpler than you may think. You don’t have to think about a price yourself; check the market instead! You want to compare to places around that are similar. You can look on places like Zillow, or call other landlords in your area. If you have a property manager, they are also a good source to check on this. Don’t forget your security deposit, which should go into a bank account untouched. Check your local laws, but typically it’s a month’s worth of rent!

Rental Application

You’ll want information such as the employers, social security number, past addresses, phone numbers, and all other identifying information. Don’t forget to charge a rental application fee. This should cover the background check that you should always do. Decide what you’ll be comfortable with after the background check. It’ll show information of felonies, bankruptcies, or other history that could be of interest to you. Decide who you are comfortable with allowing to rent your property!

Release of Information

Require a release of information signature. You should check up on all your potential tenant’s claims, but the most important is their source of income. You want to know their job stability and earnings. Then, check on previous landlords. Ask about what rent they paid, if they got the security deposit back, and if the landlord would rent to these tenants again. These sources of information will give you a great idea of what this tenant will be like.

Choosing Your Tenant

Make sure to process your tenants in the order they come in. That way you will not get complaints about discrimination. If you deny a tenant, provide written documentation for the reason you turned them down. When you choose your tenant, you can verbally let them know.

Rental Lease Agreement

Usually these lease agreements are for a year long. They should include information such as the tenants names, the lease agreement, how much rent is, how much the security deposit is, what rules there are, and other things like this. When the tenant is ready to sign the agreement, walk them through it. Verbally repeat these things so you are sure the tenant knows their responsibilities.

Property Inspection

Once the lease agreement is signed, walk through the property. Take detailed notes of what condition the property is in, and have the tenant note any issues as well. This is to know what is a preexisting condition, and what damages the tenant may have done to the property.

These are just a few basic steps to renting your property! Make sure that you are well prepared before stepping into the role of a landlord, and it will go just fine!

 

To learn more about this topic, check out the article that inspired our blog: https://www.biggerpockets.com/blog/how-to-rent-your-house

Renting Your House

Posted on | by Allison Zuck

There are a few reasons why you could be interested in renting out your home. It can turn your property into a financial asset, while also paying for itself. If your rent is the right price, you can pay off your house expenses while still making some money. Renting a house is also a great option if you had to relocate temporarily and know you will be moving back into the area. Therefore, renting can be a great option. If you want to avoid the stress of managing it, a property manager is always a great option to do much of the on-the-ground work. Here are some tips for some of the details of that process.

Tenants

The first issue you run into, though, is finding possible tenants. It actually isn’t as hard as it seems! Craigslist is quite popular for this (just remember to not put the exact address on the listing), or, if you want to go the old fashioned route, just put a sign in the yard.

Tenant Information

As people apply then, you look at their information. Before you meet them in person, you should make sure they meet a set criteria, which usually includes employment, gross monthly income of 3x the rent, and a few other specifications. This way you can easily discount some unfavorable candidates.

However, do not discriminate when it comes to giving prospective tenants the application. Make sure you require an application fee (this should cover the background check), but don’t bother with the background check if the candidate does not meet any other criteria. Your application should ask for information including the applicant’s birthday, social security number, previous addresses, phone number, as well as other information. Each application should be viewed on a first-come, first-serve basis.

Learning About Your Tenants

The next step will be background and credit checks. You ultimately get to decide what you will allow each of the limits of these histories to be, but make sure to consider a few different things. For background checks, look for felonies and other criminal history. For credit checks, call their current employer and verify their job status and claims. Another resource is former landlords. Be sure to check with landlords from the previous 5 years. Make sure that there aren’t any landlords that your possible tenant did not list on their application.

When you reject a tenant, put it in writing and very clearly state your reasons for rejection. However, when you accept tenants, you can give them a call and let them know they’ve been approved.

Rent

There’s no set amount you should be charging for rent. The easiest way to figure out the range you are working with is to search houses in the area and see their rental rates. Make sure that you are viewing properties that are similar in size, location, and condition. In addition to rent, the security deposit is usually around the sum of one month of rent. Hold the security deposit in a separate location, so that you can return it to the tenant when they move out. States can limit the amount you can charge on a security deposit, so make sure you look up that information before finalizing your amount.

Leases

Your lease can vary in the time amount it binds your tenant to the property. You are also allowed to make your own stipulations in the lease. Just make sure you have all the information necessary in the lease, such as: rent amount, security deposit, laws, fees, any restrictions, etc. It can be helpful to walk through the lease with your tenant. That way you make sure they understand your conditions, and they sign each place that they need to.

Other Things to Consider

Make sure you have a property inspection before your tenant moves in. Both you and the tenant should note the condition of every room, so that when the tenant moves out, it is clear if they caused any damage to the property. Requiring renter’s insurance is another way that you can protect yourself.

 

For more information about renting out your house, check out the article that inspired this blog: https://www.biggerpockets.com/blog/how-to-rent-your-house

 

 

Rental Costs

Posted on | by Allison Zuck

It can be hard to figure out how much to charge for rent. You want to make a good amount of income off your rental properties, but if you charge too much per month, tenants will look for better deals with other landlords. You’ll need to walk the thin line that makes sure you don’t overcharge or undercharge.

Figuring out how to price rentals

One of the first things you can do while pricing out your properties is look at the value of other rentals in your area. This is called looking for the market rent. There are a few ways to learn what the market rent is for your area. First, you can look on websites like apartments.com to get an idea of places in your area. You can also call any properties where you see a rent sign to see what they are charging. Just remember, the price that you are going for should be similar to properties that have a similar floor plan and amenities. You can also tour nearby rental sites and decide if your rent should be similar to what they are charging.

You can also double check your rent based on your occupancy rates. Occupancy rates are just how much of your space is rented out. So, if your rates are lower or higher than your area’s average, you may need to readjust your rent. If your space is fuller than most units in your area, you may be able to charge more for rent, while, conversely, if you have trouble filling up your building, you may be charging a bit too high.

One other thing you can always do is ask your property manager. They may have a handle on the current rental rates in the area. Make sure to double check the information they give you, as your property is still in your control, though. They may also have ideas for how you can improve your property to raise rent more.

How much to actually charge

First, look at the minimum you could possibly charge on rent. This will cover the expenses of the rental, while also covering any debt or emergency funds. You need to also be putting money in your pocket, so if you add up how much each of these cost, you can figure out the minimum you need to be charging.

Second, look at the maximum rental price. Try to find properties that are affordable for the most amount of tenants. Cater to the types of tenants that are reliable and will not cause many issues.

Lastly, look at how many square feet your apartment has. You can’t charge the same price for an apartment that is 200 square feet smaller than another, even if they are both one bedroom. Make sure your price is fair for the amount of space you are offering.

Deciding on your rent is a difficult balance, but with these tips, you should be able to find the right price for your properties.

To learn more, check out the article that inspired this blog: https://www.biggerpockets.com/blog/how-much-to-charge-for-rent

Off-Market Properties are the New Market

Posted on | by Allison Zuck

Off-market properties are hard to find. You don’t have the ease of access of it popping up on the internet. But, they can be very profitable for you to invest in. Think of them like the hidden gems of real estate. There are three main reasons why these off-market residences are so great for investors.

Negotiation

First, you don’t have to jump through as many hoops to negotiate on the property. In fact, you work with less people than a traditional piece of real estate. This means that you are better able to obtain a price that works for you and the seller, because you don’t have the same amount of middle men involved in the process.

Competition

If the property isn’t on the market, then other buyers aren’t looking at it as closely. Sometimes, for marketed real estate, you will have to outbid other interested investors. This isn’t as much of an issue with an off-market property, because not as many people will know about it.

Lower Price

If this property isn’t getting as many bids, you can open a negotiation that satisfies you and the seller. The market sometimes drives the prices of houses up, but an off-market find can enable you to get the best deal possible.

It can be helpful to your business to pursue leads that are off-market. These leads can hopefully grow into some of your most lucrative investments!

 

Real Estate in Atlanta

Posted on | by Allison Zuck

Atlanta is a fast growing metropolitan area, with a cultural mix of sports, art, entertainment, and nature.

What a Healthy Real Estate Market Looks Like

First, the market needs to be in a growing population. A good indicator of a growing population is whether there are a good amount of jobs available. If jobs are available, people will relocate to them. However, with COVID, more people are working remotely, so they could be moving to their dream location. Growth is not the only scale to be aware of, though, as market affordability is very important. Comparing median house prices and median incomes nationally and in the area will show if your investments will be worth it.

Atlanta’s Market

Once you know what a general healthy market looks like, you can locate great deals in the Atlanta area. Here are a few tips to get you started:

  1. Look for a growing population. Many young people are flocking to Atlanta, and they aren’t ready to commit to owning property yet. This helps boost the rental property needs in the area. For example, by 2050, Gwinnett County will have one of the largest populations of all other counties, besides Fulton County.
  2. Look for more affordable neighborhoods. While Atlanta’s housing market is typically more affordable than other large cities, it does have more desirable areas. Instead of investing in real estate in established neighborhoods, invest in lesser known areas, near jobs that people will be moving to.
  3. Look for the jobs. Jobs are growing in Atlanta, and, therefore, it’s important to invest in property in the area. People can’t work a job without a home to come to every night, and therefore, investing in locations with jobs near by will make the renters flock to you.

Atlanta has many opportunities for investors. With the growth Atlanta is experiencing, the market could be yours!