Archive for the 'Apartment' Category
February 25th, 2012 -- Posted in Apartment, Real Estate |
Owning commercial real estate means having to deal with tenants and the problems they present. But, there are several easy methods for controlling tenants. Keeping them under control creates a more harmonious environment, making the building more attractive to prospective tenants. This level of control is one of the keys to effective property management.
It is the property management that is responsible for making certain that tenants pay their rent on time. An effective property management rule is to require the rent to be collected on the day that is specified in the lease. This keeps any confusion about the due date and other rent issues from getting out of hand.
Tenants must also respect their apartments, which can be hard to enforce. However, it’s part of owning commercial real estate and taking an active role in commercial property management. Avoiding the cost of repairs is the main reason for this type of rule. If a tenant doesn’t respect their apartment, there will be repairs needed when the unit is no longer occupied.
In order to keep peaceful surroundings for all the tenants, they must respect their neighbors. This can be accomplished with specific rules that relate to the way neighboring tenants are to be treated, such as respecting quite hours. Keeping the noise level under control is something that property management must take seriously. If a tenant does not follow this rule, it calls to the property management to enforce it. Many property management companies will have specific rules about the repercussions, which can include a number of warnings before action is taken.
The tenant that moves in and has obvious problems with drugs, there should be steps taken toward property management terminating the lease. These tenants usually have more traffic than the other tenants, and may have other character flaws that will become apparent to property management and tenants. It can also give the building and the property management a bad reputation.
Apartment building investing is one of the first steps many investors take into commercial real estate. Once the property is obtained, the tenants depend on you for property management. If your rules are followed, the tenants will be content and your apartment investing is more likely to pay off in profits.
Commercial property management can be made easier by implementing at least one rule, which is to keep the building in good repair and the exterior trash area clean. This tells prospective tenants that this is a well-run, clean building. This image will bring in the preferred type of tenants to fill your rental units. Remember there are as many good tenants looking to relocate to a new building as there are bad tenants. What kind of tenants you have will depend largely on the type of property management you have in place.
August 18th, 2011 -- Posted in Apartment |
A growing number of people in the real estate market are looking to buy a condo rather than to purchase a home or to rent an apartment. But, why are condos so hot in the real estate world? Here are the top five reasons why so many are looking to buy condos rather than other forms of real estate.
Reason #1: Condos Do Not Require Upkeep
One of the biggest reasons that so many people are looking to buy a condo is the fact that they do not require the same type of upkeep as owning a house. For those that hate mowing the lawn, pulling weeds, repainting the house, or doing other chores associated with homeownership, it simply makes more sense to buy a condo. In addition, many people simply do not have the time to maintain a home because of their careers. Therefore, a condo provides a practical solution.
Reason #2: A Condo is an Investment
Of course, those that don’t want the upkeep headaches associated with a house could always rent an apartment. The problem with an apartment is that it often feels like money is being “thrown away” as you pay your rent and effectively help your landlord buy a piece of real estate. With a condo, you can still buy the place in which you live while still enjoying the same conveniences offered by an apartment.
Reason #3: You Can Take Advantage of the Amenities
When you buy a condo, you also buy rights to a number of amenities. Since all of the money put into the condo is shared by those living in the building, it is possible to afford many of lives little luxuries that are difficult to afford on your own. For example, when you buy a condo, you might gain instant access to a pool, an on-grounds gym, and more. Even better, you don’t have to worry about the upkeep for these little perks either.
Reason #4: You Can Get More Space
Often, buying a condo is a good alternative for those looking for a large piece of real estate but that do not have the funds. If you want to buy a 3,000 square foot home, you may not have the funds for it. On the other hand, it might be within your budget to buy a condo that provides 3,000 square feet of space. In fact, there are some pretty good deals going on in the condo aspect of the real estate market right now that some savvy shoppers are happily taking advantage of.
Reason #5: You Want to Socialize
If you do not have a large circle of friends and you are looking to socialize more, a condo can help make this happen. When you buy a condo, you also buy into a community. Therefore, purchasing a condo can easily and quickly provide you with a whole new group of friends that you can get to know and enjoy.
There are many reasons to buy a condo rather than other forms of real estate or rather than renting an apartment. At the same time, a condo is not the right answer for everyone. Therefore, you should weigh the pros and cons of all of your options in order to find the right place for you.
August 12th, 2011 -- Posted in Apartment |
Subletting your apartment can be a great option if you need to move out of an apartment before your lease is up. By doing so, you can avoid having to pay the fees associated with breaking your lease and, depending on the arrangements you made with the person you sublet to, you can effectively hold your spot in that apartment if you plan to return later. Nonetheless, there are several things you should keep in mind when deciding to sublet your apartment.
Keeping it Legal
Before you start showing people your apartment, you first need to check with your lease to make sure you are allowed to sublet the apartment. Some leases strictly forbid subletting and, therefore, you would be in direct violation of your lease if you attempt to sublet your apartment. Violation of your contract can result in legal issues as well as fines, so, if you are unsure, discuss it with your landlord before following through with subletting. Furthermore, you can only sublet for as long as you legally have the apartment. Therefore, if you have a one year lease, you can only sublet the apartment for that one year.
Finding a Suitable Tenant
Subletting an apartment is a relatively simple process once you have approval from your landlord. All you really need to do is post ads in various places, such as newspaper classifieds, message boards, or other places. Be sure to specify in your ad when you will need the person to move in and move out as well as the amount of the rent and a way that you can be reached for more information. More than likely, it won’t take long for you to start receiving phone calls from people that are interested in subletting your apartment.
Drawing Up Your Agreement
After you select a tenant to sublet your apartment to, keep in mind that this person will be entering into an agreement with you. You are still the one that is legally bound to the lease with the landlord and, as such, you are still responsible for the apartment. As such, your written agreement will be between you and the subtenant.
The lease that you create with the subtenant must include a provision that the subtenant will follow the same rules of the lease while he or she lives in your apartment. If the subtenant fails to follow the written agreement and your lease is violated in any way, you will be responsible to the landlord and the subtenant is responsible to you. In other words, if a violation occurs that results in a fee or a fine, you will need to pay the landlord and then you will need to pursue the subtenant in order to regain the money that you lost.
Remember that you are the one that is still responsible to the landlord. Therefore, the subtenant will send you the rent for the apartment and you will be responsible for sending rent to the landlord. If the subtenant fails to pay the rent to you, you are still responsible for making the payment.
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June 21st, 2011 -- Posted in Apartment |
When you rent an apartment, you will most likely be asked to pay a security deposit. In many cases, the deposit is equivalent to one month’s worth of rent, though it might be more. Your landlord is within his or her rights to request that you pay a security deposit, but there are several things you should know about the deposit before you sign a lease agreement and move into your apartment.
What is the Security Deposit For?
When you rent an apartment, you will likely be asked to pay a deposit in order to protect the landlord. If you fail to make your monthly payment or if you break your lease, the landlord may be able to keep your deposit in order to recoup the loses he or she experiences. Similarly, if you cause damage to the apartment before moving out, your landlord can keep the money or a portion of the money in order to make repairs to the apartment.
If the landlord does keep all or a portion of your security deposit when you move out, he or she must provide you with a detailed account of why the money was retained. For example, if you caused damage to the apartment, the landlord must detail that expense and demonstrate why the money was retained.
What is a Security Deposit NOT For?
Some unscrupulous landlords will attempt to keep a security deposit when a person moves out of the apartment, and some get away with it because their former tenants simply do not know their rights.
One thing that a security deposit is not for is wear and tear. If the dishwasher in the apartment needs to be replaced because it has worn out or the walls need to be repainted because the paint is getting dull or discolored, you are not expected to pay for these expenses.
In most states, landlords are required to return a deposit within 30 days after the tenant moves out of the apartment. It is a good idea to check with your state if you are uncertain about the time frame your landlord has.
Preparing for Disputes
If your 30 days has come and gone since you moved out of the apartment and your landlord still has not returned your security deposit, it may be time to file a claim in small claims court. In order to prepare for this possibility, you should always document the condition of the apartment before you move in as well as at the time you move out. Taking photographs is also a good idea as this will give the judge a visual idea of the condition of the apartment both before you moved in and after you moved out.
Although no one anticipates having difficult with getting their security deposit back when moving out of an apartment, it is always a good idea to plan for the worse situation. That way, you will be protected regardless of the situation.
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April 28th, 2011 -- Posted in Apartment |
Apartment investments provide low risk compared to residential investing. A $250,000 home can rent up to $2500 a month. While a $250,000 10 unit apartment building at $500 per unit can rent for $5000 a month. If your tenant moves out of your home, all cash flow is immediately gone until new tenant is found. It would take all of your tenants to move out of your Apartment Building. Short-term leases allow the potential for increasing income as the market rises. Apartment investing may produce both cash flow and equity appreciation returns. In many areas single-family home prices are often beyond affordability for a majority of the population, which make apartments a permanent necessity.
How much cash/equity is required to get started?
The average down payment required for investing in apartment buildings is anywhere from 0%-30% of the purchase price of the building depending on your knowledge. The lower the amount of your money you invest in an apartment can change the risk associated with an investment and explode your returns on the investment. There are tricks of the trade on how to buy apartments without using any of your money or credit.
How do I qualify for a loan for the balance of the purchase price?
The building qualifies for the loan; it has nothing to do with your personal credit, employment, or financial statement. You just provide additional security to the lender. Most lenders for apartment buildings require you to personally guarantee the loan; however, they won’t issue the loan unless the building generates sufficient cash flow and provides a margin for error. Lenders have a lot to say about how much cash is invested in an apartment offering.
How do you manage the investment?
It is not recommended that you manage any property, however, there are some people who prefer to manage their properties themselves while others feel their time is more productive elsewhere and turn the management of the property over to a professional. A basic rule of thumb is that any building with 20 or more units will support the cost of professional management and a live-in manager. A 10 to 20 unit building will usually support a live-in manager only who will perform routine maintenance tasks, leasing, and banking. So, the larger the building the more management you can afford. Professional management companies are plentiful and there are ways for you to find the right one for your property and screen out the bad ones.
How do you analyze a possible investment?
This part can be very complex to a beginning investor or someone who has never invested in apartment buildings. This detailed analysis, is commonly referred to as the “due diligence”. Main factors will include at least the following: gross rental income, vacancy loss, operating expenses, debt service, and cash flow. The object of the detailed analysis is to get the understanding of the likely performance of the investment and to identify areas of concern.
You can replace your income with one deal – Financial Freedom
Apartments are the fastest way to leaving your (J.O.B.) ‘Just Over Broke’. It is one of the only businesses that you are literally one deal away from retirement and the fastest way to build wealth than any other real estate business out there. Commercial real estate investors play by a different set of rules slanted in their favor and designed to make them rich.
April 25th, 2011 -- Posted in Apartment |
Wow! Some real estate agents pay $300.00-$400.00 per month for leads.
Is there a cheaper, yet equally effective way to get leads to grow your business?
Absolutely, but how do you find them?
Below are three simple, but proven real estate marketing tools and strategies that’ll get you securing more leads than you’ll be able to handle. In fact, you could end up with so many you’ll start your own “Team Dynamo”.
Build A List
The name of the real estate marketing game nowadays is capturing the names and email addresses of everybody you meet to develop your own list of responsive buyers and sellers.
Why? Because with email addresses you can market to folk on your mailing list until the cows come home…and for a little of nothing.
Regular postage is .41 cents a letter, sending the same letter via email is free. If you mail 500 letters it would cost $205.00 in postage, plus the cost of printing, paper and envelopes. You could easily be out of $225.00 – $250.00 for so for just one mailing.
Now, contrast that with emailing the same list of folk; no postage, paper or envelopes required.
Total cost? Nothing.
Hopefully the point is understood. While there are certainly times and places for direct mail campaigns, so too are there for email marketing campaigns.
But list building is a slow process and typically doesn’t result in quick sales. Instead, know that as you acquire names over a period of months, then years, you’ll have long term prospects who’ll come to trust you and your opinions and seek you out when they’re ready to make real estate transactions.
Real Estate Marketing Reports
The buzz on the internet is all about content marketing. The premise is that internet surfers are looking for information, and are not necessarily looking for you and/or otherwise interested in what you have to sell.
Instead, they are wanting and seeking information to help guide them in their quests to buy and sell real estate. No wonder the most successful lead generating web sites are those that offer an abundance and diversity of information.
There’s an old saying that goes “he who gives shall receive” and it is as true today as ever.
Agents who give away information, like information found in pre-written real estate marketing reports, are rewarded by prospects eagerly exchanging their email addresses for the information contained in the reports.
And the outcome? Prospects will continue to come back to you again and again until they’re ready to buy or sell real estate. And guess who’ll be there ready and able to help them?
Multiple Streams of Leads
Perhaps the best advice I can give anybody is this; do not put all of your leads in one basket. Instead, diversify your lead generating strategies for more listings and sales.
Leads and listings can be gotten via nearly every way imaginable, including but not limited to direct mail campaigns, real estate marketing flyers, post card marketing, networking, buyer and seller seminars, fsbos, etc.
While each approach offers its unique advantages and disadvantages they all work.
Conclusion
There you have it, three real estate marketing tools and strategies that can push your marketing success to new heights.
February 26th, 2011 -- Posted in Apartment |
When it comes to selling commercial real estate, there are certain procedures that should be followed and some considerations that keep in mind prior to placing the property on the market. A careful consideration of these procedures will result in a much better outcome when the property is sold.
One of the things that should be done is to prepare an apartment analysis form to give to potential buyers. This shows them in writing what they can expect from their apartment building investing venture. This analysis will also keep the asking price from being lowered as you have given concrete evidence about the value of the building that will be heeded by those interested in apartment investing.
Some of the other considerations are determining whether you are willing to give a second mortgage, and whether you have investigated the market and know what the interest rates are for commercial properties of this caliber. By doing this, you can decide how much you will charge and at what interest rate. This can bring in potential buyers who may not have been able to begin apartment investing in your property otherwise. continue reading »
February 22nd, 2011 -- Posted in Apartment Financing |
Purchasing any commercial real estate is an investment, and many people beginning apartment investing need to learn what type of financing will best work for them. Real estate financing can take several different forms, all of which should be considered before buying any commercial real estate.
There is traditional financing, which is using a bank to secure a mortgage. This works well in apartment investing when you have a down payment and proof that the commercial real estate you are investing in is fluid. Private money is also consideration for apartment building investing. Many investors find this to be their best choice for real estate financing.
Another method is to get together with partners for apartment building investing. With partners, it’s necessary to consider the partnership carefully, as it can be risky, depending on the partners you choose. Some partners can be categorized as risks rather than strong investing support. There are good partnerships where both equally put effort into the apartment investing. Another positive arrangement is when one partner puts up the main part of the investment while the other contributes by running the everyday affairs such as property management and repairs. continue reading »
February 12th, 2011 -- Posted in Apartment |
The Internet has quickly become a valuable resource in a variety of ways, and apartment searching is no exception. In fact, using the Internet can be the ideal method for apartment hunting, particularly if you are interested in moving to a new area that is quite a distance away from where you are currently located.
Of course, searching for an apartment online is not without its risks. Therefore, there are a few things you should keep in mind when searching for an apartment through the Internet that will help guarantee a pleasant experience resulting in an apartment you love.
Use Many Sources
One of the biggest mistakes that apartment hunters make is using just one resource when searching for an apartment online. Keep in mind that different web sites will have different listings. Therefore, in order to achieve the most comprehensive look at the available apartments, you will need to check with many different sites.
When looking for sites with apartment listings, you should also utilize different search engines. Since each search engine has its on method of bring back search results, using more than one search engine may help bring back some different results. At a minimum, you should use the major search engines, including Yahoo, Google, MSN, and Ask. continue reading »