Boundless Management

If you’re thinking of purchasing rental property as an investment, it’s important to go into the process well-prepared. The more forethought you use in selecting, purchasing and managing your rental property, the better results your investment can yield. Here are ten important rental property tips help you find your way.

• Be prepared ahead of time

  Before you ever start looking for rental property, you should know what kind of property you want, which neighborhoods are desirable for purchasing rental property, how much you are willing to spend, comparable rents in the area, and how much you can reasonably assume to make on the deal. People who don’t have this research done in advance are more likely to make a bad purchase.

• Arrange your financing before purchase

  Pre-qualifying with the bank ahead of time will save you a lot of headaches in the long run; it will also be a safeguard against getting over-extended or wasting time looking at properties you can’t afford.

• Shop location, not just price

  A “great deal” in a high-crime area, for example, is not really a great deal, because your turnover and maintenance costs will likely be too high (and it might be difficult to sell once you’ve bought it). Look for property in desirable neighborhoods where property values are rising and rent rates are good. Even if you pay a bit more up front, you will reap better benefits in greater stability from your tenants and more profitability.

• Beware of complex structures and ‘fixer-uppers’

  Bear in mind that older structures, no matter how beautiful, always require more maintenance, with parts that may be more difficult to replace. These can yield good rent returns in the right areas (especially with renovation) but if you aren’t the type of person who thrives on repair work, look for simpler, newer structures with fewer maintenance concerns.

• Always have inspections done

  After you make your offer and before the closing date, pay for a good home inspector to go through the property with a fine-tooth comb. If significant issues arise that reduce the property value, you may want to try re-negotiating. At the very least, you don’t want any surprises once the deal is closed.

• Know the laws that govern landlords and tenants in your state

  Before you sign a lease with any tenant, you need to know your rights, as well as your responsibilities. Ignorance will almost certainly work against you at some point. Do your homework now and avoid getting sued or stolen from later.

• Always screen your tenants

  Follow up on the application, run a credit check, and call the references. If the tenant is local, drive by their current address and see how they are taking care of the place. Being lazy on this point can cost you dearly after the lease is signed.

• Make sure you are well insured

  Rental properties are likely to encounter a lot of wear, tear and damage. Make sure your assets are protected with enough insurance. You should also carry liability insurance to protect yourself against any possible lawsuits from your tenants.

• Keep money in the bank

  Don’t be caught off guard by a sudden slew of repair requests. Set aside funds for maintenance.

• Consider hiring a rental management company

  If you own a number of properties and don’t want to be a “full-time landlord,” or even if you don’t want the headaches frequently associated with rental properties, it’s worth hiring a good rental management company to handle the busy work for you. For a modest fee, the management company will screen your prospective tenants, collect rent, handle maintenance issues and even process evictions on your behalf.

It cannot be denied that everyone will have their opinion regarding property rights regardless of whether this would be one’s own right, the right of other people, or the right of the community. Discussions on property rights can reveal diverse as well as controversial opinions. Moreover, a more complicated issue can arise like the planning, regulation, and land use.

Since there are actually no universal description of property rights, one can understand the different property rights issues by considering the various perspectives on property rights as well as its historical background.

Property Rights – What Are They?

Property rights are those rights that establish relationships among the participants of any social as well as economic system. Basically, having the rights to property is considered an expression of the power of the right bearer. Moreover, holding such right will command certain responses from other people that are imposed by the culture or the community.

For instance, a person owning a land has the right to the returns from his or her property. Moreover, he or she is protected from any trespass by his or her neighbors’ cultural customs as well as the laws of his or her community. The benefits that the right bearer will have from his or her land is his or her right to give away, sell or perhaps dispose of as what he or she sees fit.

Basically, property rights can be considered a function of what other people are willing to acknowledge. Likewise, the limits of the actions of the property owner results from the expectations as well as the right of other people as it is formally sanctioned as well as sustained by the law.

Property Rights – Where Do They Come From?

These property rights are generated from the culture and the community. A single person who is living in isolation need not fret about property rights. Nevertheless, whenever a group of individuals come together, they would need to define as well as enforce some rules of access to a property and benefits from owning a property. It is only in this way that a group of people or a community can define the stream of benefits.

Most property owners feel that they have the right to use, treat, and enjoy the property that they own according to their preference. Indeed, property owners have various rights to the property that they own. However, basing in the historical actions of the government, the property rights of the private owners are actually shared with the public. In line with this, it cannot be denied that the description of property has definitely changed over time.

What Are Examples of the Rights of Property Owners?

There can be various rights that property owners possess. These rights will include the right to lease, sell, donate, mortgage, grant easement, and subdivide the property. In line with this, the community will also have its own set of rights. The community has the right to tax, regulate the use of the property, and take the property for public use. Recently, additional community rights have been acknowledged. These rights would include the right to air quality and water quality protection, the right to farm, the right to species conservation and the right to species preservation.

Things To Note When Discussing Rights of Property Owners

Basically, property rights are not considered absolute. This can change over time with influence coming from the community, history and recent events. Moreover, this is a function of what the society or the community is willing to acknowledge, enforce, and defend.

If you have any additional questions about property rights, or need someone to manage a property, give us a call today.

The Fair Housing Act, otherwise known as the Civil Rights Act of 1968, states that is not legal, in virtually every circumstance, to discriminate in the rental or the sale of a residential property based on sex, national origin, religion and race. In 1988, the law was amended to include marital status and disability to the protected categories list. Since this law is federal, it applies in all areas of the U.S.

Housing Discrimination Laws

There are also some cities and states that have housing discrimination laws that include certain charistics that are not contained in the federal law, such as gender identity and sexual orientation. There are currently thirteen states that have laws preventing sexual orientation based housing discrimination. There are also cities that are not in those states that have the same laws.

Despite these laws being in effect, and being strictly enforced on a regular basis, the United States Department of Housing and Urban Development (HUD) believes that roughly 2 million illegal housing discrimination cases take place in the U.S. each year.

Do not be a victim

The following steps can help you avoid being a victim of housing discrimination, and also if you have already been victimized.

1. If you see a listing that has a discriminatory preference clearly mentioned, do not reply to it. Even if you do not fit into the particular category that is being descriminated against, you should not want to do business with a person who would participate in blatant discrimination. Since stating a discriminatory preference in a listing is not legal, contact HUD and file a complaint. However, most people are very subtle in their discrimination to avoid being caught.
2. It is critical to be able to spot owners who are engaging in discriminatory practices. Therefore, you need to be aware of methods that these owners use that are more subtle than a blatant real estate listing that has a discriminatory preference mentioned in it. For example, owners will often decline applications submitted by people belonging to a certain group. If you belong to a group that the property owner does not like, you may have your application rejected without explanation. In situations like this, it is hard to tell if any discrimination occurred. However, thanks to online reviews, you can see if the owner has routinely turned down qualified renters belonging to a certain group, while instead accepting less qualified renters who don’t belong to the group in question. If you file a complaint and you have enough evidence to back it up, HUD will conduct an investigation.
3. If you believe that you have been discriminated against, you have a few options. The easiest thing to do is file a complaint with HUD. However, HUD may not investigate your complaint.
4. If you feel that filing a lawsuit against the seller or renter is the proper course of action, there is a lot of work involved. You will need a lawyer experienced in housing discrimination cases. This process will most likely be long, and there is no guarantee you will win.
5. You can also voice your concerns on various websites that allow tenants to review the practices of landlords. If you are certain that a landlord is discriminating against qualified tenants, tell the public so that people will not want to rent from the landlord. You must have proof of your allegations, or you can be sued for slander and defamation.

Rental property discrimination is an unfortunate fact of life. However, if you are prepared for this possibility, and if you know your rights, you have the ability to fight back. There is no reason to be a victim.

Any time you are planning to move to a new apartment it is essential to conduct research prior to making your decision. The more you know about the various apartments you are interested in the more likely you are to be satisfied with the choice you make. There are a few things to look out for when renting an apartment that can ultimately save you any hassles in the future.

1. Review Your Budget

   Before you begin comparing available apartments near you, review the budget you have available to invest in the space and how much you are limited to on a monthly basis. When you have a budget set it becomes much easier to eliminate properties that are not affordable to you or completely out of your current price range.

2. Review Space and Amenity Needs

   Understanding the amount of space you need for your household and belongings as well as any amenities you prefer will help to save time by eliminating properties that do not meet your needs. Whether you are looking for an apartment with on-site laundry or if you are seeking a spot that allows pets, knowing what you need before you move is essential.

3. Rent Prices

   Be sure to compare average apartment rental prices near you to get the best possible deal for the space you need. Comparing prices and the quality of apartment complexes will help you to determine which location provides the very best value.

4. Included Utilities or Extra Services

   Check each apartment that is available near you for potential included utilities and extra services such as cable and high-speed Internet. If you want to cut back on costs, search for an apartment complex that includes these services with the rent you pay.

5. Surrounding Neighborhood

   Research the surrounding neighborhood of all apartments you are considering, especially if you are searching for areas with schools and markets nearby.

6. Maintenance Quality

   Ask about the quality of maintenance and the services provided in each apartment complex before signing a new lease.

7. Reviews of Apartment Complexes

   Be sure to review all apartment complexes you are interested in online before visiting them in person to read real reviews and testimonials from current and past tenants.

8. Lengthy Leases

   Compare various lease options with different apartment complexes you are interested in living in. Determine which lease options are right for you based on your household, current job and the income you have.

9. Inspection Options

   Ask your future landlords about inspection options and whether you can thoroughly inspect the apartment yourself before signing a lease. Inspecting apartments before moving in is also highly recommended if you are moving from out of state or if you are interested in a long-term leasing option.

10. Possible Negotiations

    Looking for apartments that offer negotiations is highly recommended if you are planning on moving shorter than your lease or if you are unsure how long you may be living in the area. Speak openly about negotiating your contract or lease before signing.

Having a clear idea of the type of apartment you are seeking and understanding the areas you want to live in will save you time and in many cases, money. The more focused you are on your moving goal and the more ideas you have in mind on where you live, the easier it is to find locations that are right for you and your household.

It is difficult to manage property and there are many different reasons people choose to become landlords. For starters, a rental property is a good investment to include in any portfolio. Or maybe you’re what is called an accidental landlord, meaning you never intended to rent your property, but bought a new home and have had difficulty selling your old one. You may have finally purchased that long awaited vacation home, only to find that the only way to cover unexpected expenses is to bring in short-term renters. Whatever the situation, you will find being a landlord presents unique insurance needs.

How do I know when I need landlord’s insurance?

If you’re only renting out your property for a few weeks a year, your homeowners policy should provide sufficient protection. However, when rentals become more than occasional, additional coverage will be required. Four weeks is generally a good rule of thumb.

If you are residing in the same dwelling as your tenants, you can acquire a homeowners policy tailored to that situation. But, when you are renting out a separate home from the one you are living in, then you must have a separate insurance policy as well.

You may be tempted to just stick with your existing homeowners policy and let the chips fall where they may, but this is very risky. In the event that you have to make any sort of claim, it’s very likely that you will be denied coverage. It’s much better to be safe than sorry, and to be up-front with your insurance company.

What type of landlord’s insurance is right for me?

Policies can go by several names, but in general are called dwelling policies, and are sorted by three categories:

• DP-1: This is the most basic policy, and covers calamities such as vandalism and damage caused by fire.
• DP-2: This is a broader policy that covers your home from wind and hail damage, as well as vandalism and fire. It even covers you in the event of a car colliding with your home.
• DP-3: This is also referred to as an open peril policy, which means that unless a peril is specifically excluded from your policy, it will be covered in the event it occurs.

Most insurance agents suggest opting for a DP-3 policy for the simple reason that a DP-1 will only pay out the actual cash value of the property, while a DP-3 will provide for its replacement cost.

What other areas of coverage should I consider?

Policies are also available for loss of rental income in the event that your rental property should ever have to be vacated for any reason. Many landlords believe if their unit has to be vacated for repairs or due to eviction that this is a covered loss. They find to their dismay that this is not the case.

Landlord protective policies are another option to consider, so that an equipment malfunction, such as a furnace breaking down, doesn’t turn into more of a nightmare than it already is.

Be sure to have sufficient liability coverage. You don’t want to find out your coverage is inadequate if the time comes that you need it.

Insurance, and especially rental property insurance, can seem like a confusing maze of mumbo-jumbo, but if you break it down into little bite-sized morsels, and take it step by step, it’s really not so bad. With the help of seasoned professionals at your side, it’s easier still.

Buying a residential property is not where your investing opportunities end. Once you own the house and turn it into a home, there are plenty of home renovations that you can invest in to increase the value of the property. While most homeowners take time to improve resale properties after they buy them and move in, several of these homeowners fail to choose upgrades and modifications that will increase both functionality and property value. Read on and find out which projects will be an investment and not just an expense before you take on your next renovation project.

Home Renovation Projects That Will Deliver the Biggest Return on Investment

1. Updating Plumbing and Electrical Systems in Older Homes

   Not all projects that you pay for are going to completely pay for themselves in the form of ROI. One project that is reported to offer an average ROI of 260% is updating plumbing and electrical systems in older homes. These projects may not require demolition, but you will need to hire a professional plumbing and electrical contractor to get the work done. Not only will this translate into a home with a higher value, you will also receive discounts on your insurance and save on your utility bills.

2. Updating Your Traditional Kitchen Into a Modern Chef’s Kitchen

   The kitchen is the heart of any home. If you ask any experienced real estate agent, most will tell you that lack of upgrades in a kitchen can actually break a sale no matter how updated the rest of the property is. If you are looking for the best room to invest in, the kitchen is more than likely the place to start. Kitchens remodels will return between 60 and 80%, depending on the upgrades that you make. You will need to consider the the price of your home to determine how much money you should invest in the kitchen. All too often, people go overboard in the kitchen and price their homes out of the market. Here are some upgrades that are sure to add value:

   • New granite counter tops
   • Refacing or replacing cabinetry
   • Upgrading flooring
   • Upgrading to steel appliances appliances
   • Building a kitchen island if space permits

3. Turn Your Master Bath Into a Haven

   People who are buying homes are looking for spacious master baths with room for both partners. Because space and amenities are highly desirable in the master bath, you can turn your master bath into an investment opportunity. Depending on the layout, you may only need to focus on upgrades. If the room is entirely too small, this is where projects can get expensive. You can expect your master bath remodel to yield more than a 60% return, but you need to choose the right upgrades. Upgrading to dual sinks, a custom shower, and an efficient toilet should do the job to increase value.

4. Transform the Outside of Your Home With New Siding or Gutters

   You do not have to focus all of your renovation efforts on the inside of your home. In fact, curb appeal and exterior upgrades can tack on a lot of value. Not only does new siding add curb appeal, it can also make your home more efficient. With upgrades like siding, gutters, and even decks, you can expect your projects to yield an increase in value of between 75 and 85%.

You need to consider trends in the buyer’s market and what buyers are looking for when you focus on choosing investment opportunities that will increase property value. Believe it or not, a majority of renovations that people focus on do not really add value. By focusing on the right systems in your home and choosing the right rooms, you can improve upon your home and benefit from the improvements in the long run.

For a rental property, time is money. The longer a property sits vacant, the less profitable your investment becomes. Even if your property is in a hot market, you will face competition from other property owners to attract the best tenants. Here are eight inexpensive ways to make your rental property stand out from the rest.

1. Create More Curb Appeal

   It’s a good idea to start from the outside. If the place doesn’t appeal to renters before they walk in, you risk losing them before they ever step inside. A good first impression is easy to create with fresh paint on the front door and outside trim, a new welcome mat, clean light fixtures and a yard free of weeds and debris. Add some colorful blooms in planters by the front door, neatly trim the lawn and, of course, make sure there are no dead plants in the yard.

2. Liven Up With Paint

   One of the most economical ways to spruce up a property is with paint. A fresh coat of paint can revitalize a tired interior, brighten dim spaces and highlight interesting features. For a rental, it’s advisable to use semi-gloss or satin paint, which can be cleaned easily.

3. Get Rid of Dirty Carpets

   One of the most common complaints about rental properties is dirty, dingy carpets. If the carpets in your rental unit are tired, worn or stained, remove them. Replacing carpet or adding hardwood or another type of durable flooring is one of the best investments you can make as a property owner.

4. Neutral Décor

   When you paint or redecorate, use a neutral color scheme. Though you might love the idea of a turquoise bathroom or a deep red kitchen, most people probably won’t. Prospective tenants want to be able to imagine themselves living in the property, and it’s easier to do that if you present them with a blank canvas. Pick inoffensive, timeless and high-quality items that won’t require continual updating.

5. Create More Storage

   If closet space is an issue, try to create some extra storage. Built-in closet systems are inexpensive and impressive, as are built-in bookshelves, extra kitchen shelving or a pantry closet. These items make it easy for people to imagine themselves already moved in and organized.

6. Make the Property Feel Safe and Secure

   One of the most important aspects of choosing a home is that it feels safe and secure. Make sure the property is immaculately clean and free of any remnants of previous tenants. Change the locks and add deadbolts if necessary. Make sure windows are secure and lockable. If you’re in a high-crime area, consider adding an alarm system for even more security.

7. Update the Kitchen

   A more expensive, but potentially lucrative, fix is to update the kitchen. This is especially important if the fixtures are outdated or if the last tenants left the place looking a bit worn. You don’t have to completely renovate, but consider replacing worn-out flooring, updating light fixtures and cabinet doors and handles, and upgrading dingy countertops.

8. Find the Unique Selling Points

   Finally, the best way to make your property stand out is by figuring out and emphasizing what’s special about it. Check out the competition and determine your property’s unique selling points. A great location, lots of sunlight or a pretty backyard can all be selling points.

Buying a rental property can be an option for those who want to make a steady income each month. If you buy a duplex, you can live in one part of the house while renting the other section of the house to a tenant. Regardless of why you are buying a rental property, what are some things to keep in mind before making such a purchase?

Where Is Your Property Located

Properties that are not in prime locations will take longer to rent. Additionally, the rents for properties that are in out of the way locations are generally lower. Therefore, you have to make sure that you know how much you can charge for rent and how easy it is to rent a property before you buy it.

How Do You Find Tenants?

Purchasing the right property is only half the battle. You now have to find tenants who can be trusted to keep your house clean and will pay the rent on time each month. Advertising your rental online, putting signs in front of the house that indicate it is for rent and asking friends or relatives to be your tenants are three ways that you can find interested tenants. When someone does indicate an interest in your rental, you should do a proper tenant screening and a credit check. This will ensure that your tenants are worthy of renting your home.

What Are Your Obligations As A Landlord?

Although your tenants have to pay their rent on time each month, you have to provide your tenants with a suitable living space. This means that you may have to pay for repairs from time to time. These repairs can range from a new doorknob to a new water heater. Make sure that you are budgeting for these expenses before you buy a property. If you fail to provide your tenants with a livable space, they can leave without owing you any money.

What About Commercial Real Estate?

Commercial properties can be attractive because the tenants generally will stick around for several years. If you are interested in commercial real estate, you need to buy properties in areas where businesses can conveniently conduct operations. Therefore, you don’t want to buy an abandoned building in the middle of nowhere because your rental will sit vacant for months on end. You will also need to get special financing to buy commercial properties.

Purchasing real estate with the intent to rent it to someone else is a good investment strategy. It will bring you an income for as long as you own the property while also providing you with some diversity in your investment portfolio. As long as you are willing to do your homework prior to buying a property, you should have no problem being successful in the world of real estate.

Rental properties can be subject to some complex laws, and not all of them are intuitive. Property managers and property owners need to be aware of the landlord-tenant codes in their areas to make sure that they are not in violation of any of them, as any infraction can eventually lead to severe ramifications.

1. Deposits Cannot Be Held For Rent

   A rental deposit needs to be used only if there are repairs or cleaning that needs to be done to the property after the move out date. A rental deposit cannot be held for back rent or as a last rent payment, even if the renter requests this. Instead, the rental deposit must be clearly returned less any applicable fees, and any rent due needs to be paid in separately by the renter.

2. Landlords Cannot Enter The Home Without Notice

   Many landlords, especially those who live on the property, may see nothing wrong with entering the property to either check in on something, inspect it, or even just leave a note for the tenant. However, landlords are not allowed to enter a home without giving notice, unless there is an emergency such as water damage or smoke. The amount of notice necessary varies by state.

3. Landlords Need To Give Notice When Selling Property

   Landlords need to give notice to their tenants when properties are about to change ownership.

4. Rental Income Needs To Be Reported

   Many landlords avoid claiming their rental income, either because it comes in as cash or because it goes directly to the payment of the property’s mortgage. Rental income needs to be reported as income on taxes, and it may also need to be reported to the state for either sales tax or general excise tax payments.

5. Landlords Cannot Change Locks

   Even after an eviction, a landlord cannot change the locks to keep a tenant out, nor can the landlord remove the tenant’s property on their own or make any other physical attempts to drive the tenants out. In order to remove tenants, strict legal processes need to be adhered to, or the tenants themselves will be able to claim damages.

6. Court Orders Are Required For Eviction With Cause

   While landlords can evict without cause, the process can take from 30 to 60 days. If the landlord does have cause for eviction such as severe property damage or illegal activities taking place in their rental property, a court order will be needed to evict the tenant any earlier.

7. Landlords Must Honor Service Animals

   Even landlords who have properties that do not allow animals need to accept tenants who have service animals, though paperwork can be requested that proves that the animals are necessary for the disabled person’s health. Properties cannot turn away tenants because of their disabilities and need to make reasonable accommodations for them.

8. Landlords Cannot Discriminate

   Landlords cannot discriminate between tenants based on race, age, gender, sexual orientation, or disability. However, there are exceptions for landlords who are renting out properties that are attached in some way to their own living quarters.

9. Landlords Need To Keep Properties Up To Code

   Landlords need to keep repairs and maintenance up on their properties, and need to follow the local state laws on what qualifies a property as being up to code.

10. Landlords Cannot Stop Utilities

    On rental properties in which the utilities are under the landlord’s name, the landlord is not allowed to stop utilities in an attempt to drive a non-paying or even evicted tenant out. However, the landlord should check the landlord-tenant code because this may not apply if the utilities are not included in the rent but are instead supposed to be reimbursed to the landlord on a monthly basis.

All property management companies are not the same, and you will want to find one that specializes in the area you are interested in, such as residential properties or commercial properties.

What you can do

As you go through the selection process, be sure to contact several real estate management firms. If you make a hasty decision in order to save time, you may come to regard this as a mistake later on.

As a guide in making your final decision, compile of list of those things you feel your property manager should provide. It isn’t necessary to share this with everyone you interview, but it is essential to have a checklist to ensure that your investments will be secure.

Note that your goal here is to decide which property manager offers outstanding services while charging the lowest commission. Ideally, those services will include the following:

• Your property manager should be aggressive in advertising vacancies. Remember that you will suffer the consequences if they are lax in this area and they will escape unscathed.
• The way in which they show properties can make a difference because they must exercise caution and find quality tenants at the same time. Property managers should also be willing to show properties outside of regular business hours.
• A reliable property manager will make use of backgrounds checks to uncover potential tenants’ negative history and help you avoid significant financial losses at a time when you expect to be profiting from your investment.
• A reliable firm will have a policy in place for collecting rents that are past due, and they should be prepared to explain it in detail.
• Property managers should also be ready to explain how they conduct regular maintenance of the property and how maintenance costs are controlled.
• Find out what kind of accounting services the property manager is ready to offer you as the owner. If their response is satisfactory, that will simplify things for you when you are ready to file your tax return.
• Have them explain their fee structure, which they should be ready to do, and it is also essential for them to have some kind of liability insurance so that you will be protected from lawsuits.

Making your final decision

If you reach a point where you are trying to choose between two reputable companies, that is the time to study every detail of the contract. You will also want to determine if this property manager will work with you in expanding your investment, rather than merely maintaining what you already have.

If you get the impression that they are ready to help you succeed and may even work with you in finding new investments properties, you should be able to find property at an affordable price and your profits should increase. In addition, authorities will tell you that finding the right property manager takes time and effort, and it is a significant step for anyone who is serious about investing in real estate.