By Wendy Helfenbaum | Sep 21, 2017
Every successful home search begins with a wish list. Armed with your inventory of must-haves, you’ll know how to focus your search and recognize a potential home that isn’t worth your time.
Still, there’s a strange thing that seems to happen when you’re deep in the trenches of house hunting: The more you look, the longer that wish list seems to grow. But sooner or later, you have to own up to the fact that you can’t have everything—it’s inevitable that you’ll make some compromises somewhere.
And, in these days of tight inventory and cutthroat competition from other buyers, you might feel forced to waver far afield from your hallowed wish list in order to land a home.
That’s OK—it’s important to be flexible. But there are a few times when you absolutely should draw the line. Here are seven areas where you’ll want to dig in your heels.
1. Buying a fixer-upper when you really want turnkey
You have never swung a hammer, have a phobia of power tools, and always pictured yourself in something new and shiny. But that doesn’t mean you won’t fall in love with a charming, century-old farmhouse that needs a ton of work. Now’s when you have to decide: Are you up to the financial and emotional challenges of taking on major renovations?
It’s an option you should seriously consider (with the help of an experienced general contractor) if you’re in a highly competitive market. But if you don’t think your bank account or your marriage could survive many months of upheaval, stick to your guns and insist on a turnkey home, says Mike Kessler, a broker with TSG Residential, in Davidson, NC.
“There have been times when I’ve said to clients, ‘after being with you for a week, I really think we need to look at new construction,'” Kessler says. Many of those clients, he adds, were later grateful for the course correction, saying, “We would never have been able to enjoy ourselves in [an older] house.”
2. A good school district
Even if you don’t have children, you should make sure the house you’re eyeing has desirable schools nearby, says Tina Maraj, a Realtor® with Re/Max North Orange County in Fullerton, CA.
Does it matter if you’re not looking to have a few kids? Well, things can always change. But even if they don’t, good schools typically translate to a higher resale value—potential buyers with families will want to be in the right district.
Just make sure to do your research and determine where the home sits in relation to the school district boundaries.
“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” Maraj explains. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”
Go to the school district’s website to get a map of the district boundaries.
3. The floor plan
Does the home fit your minimum criteria in terms of number of rooms and the flow of the main living areas? If not, cross it off your list, says Sarah Garza, a Realtor and military relocation specialist with Trident Homes Realty in Arnold, MD.
Garza can share some personal cautionary tales: A military spouse, she’s moved 12 times in the past 20 years, buying and selling nine homes in the process.
“I regret that I compromised on layout in the past,” she says. “When I really needed four bedrooms, I’ve gone to three and then wished I hadn’t.”
Sure, you can add on. But don’t use that option as a fallback, Maraj warns.
“You can change a layout to make it an open floor plan, but it’s a lot more difficult to change the bedroom and bathroom count,” she says. “In the long run, you could end up having a lot of problems and taking on a really big financial undertaking.”
4. The neighbors
During your search, don’t just focus on the house you’re interested in—check out the neighboring homes as well, Maraj says. Are the properties well-kept, or candidates for an episode of “Hoarders”?
The condition of the properties around you can affect your future resale value. And they can just plain drive you crazy. Make sure you look—and listen—any time you visit your prospective home.
“You can’t change the house in front of you or to the side of you,” Maraj cautions. “And if there’s a barking dog every time you’re viewing the property, that’s another thing that you absolutely cannot change.”
5. Your budget
You’ve probably already determined how much you’re willing to pay for a home—and you shouldn’t budge on that number. But you should also dig in your heels on the additional costs beyond the sticker price. That means setting a budget for your monthly payments, HOA dues, utility costs, and real estate taxes—and sticking to it. (Hint: You want to do this before you start looking at homes, and definitely before you start making offers.)
Yes, a lender will give you a pre-approval and tell you how much house you can afford. But this is just one piece of the puzzle, and the costs of homeownership can still land you in a mountain of debt if you’re not careful, Kessler points out.
“I try to do a lot of pre-planning with clients about what can they really afford, as opposed to what the bank tells you,” Kessler says. “You never want to be house poor.”
6. Commute time
If you’ve already determined that you’re willing to take on a 30-minute commute, don’t be swayed to take something that’s even a few minutes longer, Garza says.
“Sometimes buyers fall in love with all the shiny bells and whistles of a house that’s an hour away from work, and want to compromise on what they’ve told me from the beginning,” she notes. “I tell them, ‘I know it doesn’t matter right now because you really love this house, but that’s two hours every day that you’ll be sitting in the car and not enjoying your house. Is that worth it to you?’”
She adds: Until you’ve actually driven the route to and from your potential home and your office, at the times you’ll be commuting, you should never consider compromising.
In some large cities, being just a few miles from the highway can tack on an additional hour of commuting. Could you handle that after a long day in the office? Think carefully before making the sacrifice.
7. Parking
Speaking of your car, if you own one (or two), you absolutely want a guaranteed spot to park, whether that means an enclosed garage, a driveway, or assigned parking.
“There are many communities that now restrict outside parking, guest spaces, and overnight parking, which could be a real homeowner nightmare if you have to fend for yourself,” Maraj says.
To avoid frustration after you’ve closed a deal, stick to your guns about the things that are most important to you while making your choice, and ignore the rest of the noise.
Wendy Helfenbaum is a journalist and TV producer who covers real estate, architecture and design, DIY, gardening, and travel. Her work has appeared in Woman’s Day, Metropolis, Costco Connection, Garden Collage, Parenting, Canadian Living, Canadian Gardening, and more.
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Do Real Estate Agents Deal With Rental Properties?
By Audrey Ference | Aug 24, 2017
If you’re familiar with the struggle that is finding an apartment online, the idea of a real estate agent who can help you in your search might sound like a godsend. We all know real estate agents help people buy a home, but did you know they can also help people find properties to rent?
A real estate agent can save you the hassle of tracking down landlords and property managers from Craigslist, especially in bigger cities, though the services they provide (and the fees they charge) vary by location. Here’s what you need to know.
Real estate agents and rentals
What a real estate agent does to help you find a rental depends on the location—whether it’s a large city or a small town—and the agent. Sometimes the agent will guide your search from the very start, helping you find the right neighborhood, apartment size, and price range, then go with you to open houses. More likely though, you’ll already have a lot of that information decided, and the agent will send you listings that might be of interest to you.
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No matter what, once you’ve decided on a rental and have been approved by the landlord or management company, your agent should help you read and understand your lease.
“Most tenants can find a place without a real estate agent, but they forget to seek out someone who can help them understand what they’re signing when they sign a lease,” says Dillar Schwartz, a Realtor® in Austin, TX.
Your lease has all kinds of vital information in it, including what repairs you’ll be responsible for, the penalties for late rent, and even the terms for breaking the lease. You want to be sure you’re not signing anything that puts you in a bad position financially or violates your rights as a tenant.
Where you’re looking to live makes a difference
In cities such as New York or San Francisco with huge populations of renters, it’s common to use a real estate agent to find a rental property, and there are entire agencies that specialize in doing just that. In some cities, it’s more common for agencies that focus on rentals to be called “apartment locators,” but they provide essentially the same service.
In places where rentals are not as common, you might find that apartments, townhouses, and condos are more commonly handled by the complex’s management company. People renting out their homes in primarily owner-occupied suburban areas, especially those with HOAs, will often use real estate agents to help find renters who meet the neighborhood association’s requirements.
How do you find a real estate agent who deals with rentals?
“One place to start is realtor.com®, and do a search for rentals in the area you wish to live in, then contact the agents that represent those properties,” says Teri Andrews Murch, a Realtor in Auburn, CA.
Personal referrals are also a great way to find someone. Ask friends for the names of reliable real estate agents they have worked with. Even if those agents don’t work with rentals, they probably have a colleague they can connect you with who does. It’s important to find someone you trust, since that person will be helping you find your new home.
How much are real estate agent fees for rentals?
Broker fees are another thing that vary widely by location. In many places, the landlord pays the real estate agent to help find a desirable tenant. Apartment locator services are almost always paid by the landlord. In more competitive rental markets, the tenant will often be responsible for the real estate agent fee, sometimes called a “broker fee.” In fact, even if you find the listing on your own, some rentals will require you to pay a fee to the landlord’s broker for listing the property.
Fees can be as low as $50 to $75 for a credit check or application, but more common rates are one month’s rent or 15% of the annual rent on the apartment.
Before you start to work with an agent, make sure you ask what fees you will be responsible for paying.
Need help? Contact the best property management company in Toronto.
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5 Bad Landlords You Might Meet—and How to Keep Them in Line
By Matt Christensen | Sep 14, 2017
Landlords wield an awful lot of power over their tenants—and where there’s power, it’s likely to be abused. We’re not saying all landlords are awful, but some sure can get annoying or offensive, or leave you in the lurch. To help you navigate these dicey scenarios, here’s a field guide to the five types of landlords you might encounter. We’ll show you how to deal with their worst behaviors so you can find a way to live happily under their roof.
1. The MIA landlord
You know that landlord who’s so impossible to reach, you wonder if he’s a figment of your imagination? Playing hard to get might work great for him, but tenants often need to get in touch with landlords for all kinds of issues, many of them urgent.
“All landlords, property managers, and building owners should be providing the tenant with emergency phone numbers,” says Denise Supplee, co-founder of SparkRental.com.
But if yours doesn’t—or rarely returns your calls or emails—it might be time to ignore polite decorum and be a squeaky wheel. Call and email daily if you must—it’s annoying, but it will likely get his attention. Or send a certified letter. Or, since you have to send a rent check every month, include a letter, pictures, or other evidence that details your problem with that check. If and when the check gets cashed, you’ll know your landlord received your complaints.
You might be tempted to withhold rent, but that’s rarely a good idea. Doing so can damage your rental payment history and credit score, or even give your landlord cause to evict you. In some states, withholding money is a viable option, but you should set that money aside in an account, because if you go to court and lose, you’ll have to pay it back.
2. The landlord without boundaries
On the opposite end of the spectrum are those landlords who are around way too much. Your landlord might call at all hours—or worse, drop by unannounced.
“A landlord is not permitted to drop by without notice,” says Supplee. That’s true even if he’s rapping on your door because you’re late on rent! In fact, in most places a landlord is required to give you 24 to 48 hours notice before visiting, and those visits are usually kept between the hours of 9 a.m. and 5 p.m.
So if your landlord’s barging in whenever he wants, you’ll want to politely but firmly make those restrictions clear. If you’re uncomfortable with being so direct, try something along the lines of, “I work long hours, so I prefer peace and quiet when I get home.”
If the problem persists, though, you might have to draw a harder line.
“Write down every date and time a landlord violates your privacy and send him a written request to stop,” says Supplee. “If the behavior continues, you may have to contact an attorney to file suit.”
3. The lazy landlord
Whether it’s a leaky faucet or a collapsed beam, your landlord is responsible for arranging and following through on certain repairs. So if he is dragging his feet, you have a few options.
“There’s a little-known tip called ‘repair and deduct,’” says Supplee. “Each state has its own requirements, but generally speaking, if the tenant gets the repair done, he or she can deduct the receipted amount from the rent.”
Thomas Mark, an attorney who specializes in tenant-landlord disputes, explains: “In court, you must show that the landlord knew about the problem and that he failed to repair the problem within a reasonable time.”
You can bolster your case with photos of the flaws, documented repair requests, inspection reports from professionals, and even witnesses in your apartment who can testify on your behalf.
4. The subtly discriminating landlord
Of course, you’d never choose to live under a landlord who’ll discriminate against you because of your race, gender, sexual orientation, or some other factor, but you can’t always tell right away. Some studies have shown that discrimination can manifest in subtle ways, like when landlords show you the laundry room and other facilities when showing you an apartment. Once you’ve moved in, a biased attitude might affect how long it takes them to respond to an email or phone call.
And “discrimination doesn’t have to be overt to be illegal,” says Mark. If a landlord makes you feel uncomfortable or unwelcome, you could have a case. When in doubt, contact the Leadership Conference on Civil and Human Rights to find out about housing discrimination enforcement agencies in your state.
5. The BFF landlord
Being pals with your landlord: What could be better? Don’t get too excited, though, because there’s a reason—several, actually—why it’s risky to do business with friends. For example, what toll will a rent hike take on your friendship? And what about repairs? At first, your landlord buddy might rush to fix your problems, but who’s to say he won’t count on your “understanding” that he can’t get to something right away?
Bottom line: Even if you’re pals, make sure there’s a rental lease in place outlining expectations in terms of rent, repairs, and other sticky issues. If you care about your friendship—and your home—it’s the best way to avoid messy misunderstandings.
Matt Christensen, who lives in Westlake, OH, has written for Maxim, Cosmopolitan, Men’s Journal, and other publications.
‘My Landlord Is Selling the House I Rent—What Are My Rights?’
By Cathie Ericson | Aug 7, 2017
If “my landlord is selling the house I rent—what are my rights?” is a phrase you’ve Googled lately, we feel your pain. Since landlords own the property you’re living in, they do have the right to sell it whenever they want. Still, that doesn’t mean that they can just kick their renters out on the street immediately. Tenants have rights, too! Here’s what you should know and how to handle things when a landlord is selling your home.
Do you have to move when a landlord sells?
Don’t just assume you have to vacate immediately. If you’re lucky, your landlord might sell to a buyer who will be happy to sign a new lease with you once the sale goes through. So, check with the new owner. But if that’s not an option, or you’re unhappy with the new lease terms, you might have to move out.
When do you have to move?
If you’re on a month-to-month lease, in most states, landlords are required to give a 30-day written notice to vacate if they decide to sell. Some areas have different laws, though, so it’s wise to check. For example, lucky Seattle dwellers have 60 days
If you signed a lease for longer—like a year or two—you likely have the legal right to stay put until your lease ends. Even if the house sells before your lease is up, the new owner has to respect that legally binding contract.
“A lease is tied to a property, not an owner,” explains Lucas Hall, founder of Landlordology. So even if the homeowner changes, the lease remains. “Even a specific month-to-month agreement will transfer,” adds Hall.
Check for a ‘lease termination due to sale’ clause
Also check if your contract contains a “lease termination due to sale” clause. In that case, whatever is stated there stands; even long-term leases might not have any protection, Hall notes.
In other words, if you have eight months left on your lease but your contract says the lease termination due to sale is 30 days, then 30 days is all you get.
One piece of advice—which we’ll admit is information you maybe could have used sooner—is that you can negotiate how much time a landlord is required to give you if he terminates a lease due to sale. The catch is, you have to do it before you sign the lease.
“For example, if the landlord wants the option to terminate the lease due to sale, the tenant could require the landlord give at least 60 days’ notice, and/or require a ‘buyout’ of a certain amount of money,” Hall says.
If it’s too late to put this advice into action this time around, keep that little nugget in mind for the future.
Look into a tenant relocation allowance
It sure would be nice if your landlord paid you to move out, wouldn’t it? Admittedly, it is rare, but there are some circumstances under which your landlord might be obligated to fork over some cash in order to get you to vacate, due to the fact that he’s decided to sell your building or upgrade it to condos.
In San Francisco, for example, under the Ellis Act, each tenant receives $5,555.21 if evicted from a unit. This is known as a tenant relocation allowance, or tenant relocation payment, and should be included in your state’s landlord and tenant laws.
Keep your landlord in line
While you’re still living in the rental, you have basic tenant rights. For example, your landlord can’t cut off your water or electricity, enter your rental without notice (except in an emergency), or hire a remodeling crew to work until 2 a.m. If you think your landlord is violating your tenant rights, contact a tenant lawyer or your local housing authority for help.
What happens to your security deposit
Your landlord is legally required to return your security deposit, sans any needed repairs or cleaning, after you move. State laws vary, but generally a landlord has 14 to 60 days to send you a check after you move.
When the time comes, treat the move like any other. Make sure you remove all of your property, clean the rental, and return the keys to the landlord. If possible, do a walk-through with your landlord, and give him a written notice that includes your new address. That way, you can end things on a good note before you move out, and on with life.
Angela Colley contributed to this article.
Don’t Budge: 7 Compromises You Should Never Make When Buying a Home
By Wendy Helfenbaum | Sep 21, 2017
Every successful home search begins with a wish list. Armed with your inventory of must-haves, you’ll know how to focus your search and recognize a potential home that isn’t worth your time.
Still, there’s a strange thing that seems to happen when you’re deep in the trenches of house hunting: The more you look, the longer that wish list seems to grow. But sooner or later, you have to own up to the fact that you can’t have everything—it’s inevitable that you’ll make some compromises somewhere.
And, in these days of tight inventory and cutthroat competition from other buyers, you might feel forced to waver far afield from your hallowed wish list in order to land a home.
That’s OK—it’s important to be flexible. But there are a few times when you absolutely should draw the line. Here are seven areas where you’ll want to dig in your heels.
1. Buying a fixer-upper when you really want turnkey
You have never swung a hammer, have a phobia of power tools, and always pictured yourself in something new and shiny. But that doesn’t mean you won’t fall in love with a charming, century-old farmhouse that needs a ton of work. Now’s when you have to decide: Are you up to the financial and emotional challenges of taking on major renovations?
It’s an option you should seriously consider (with the help of an experienced general contractor) if you’re in a highly competitive market. But if you don’t think your bank account or your marriage could survive many months of upheaval, stick to your guns and insist on a turnkey home, says Mike Kessler, a broker with TSG Residential, in Davidson, NC.
“There have been times when I’ve said to clients, ‘after being with you for a week, I really think we need to look at new construction,'” Kessler says. Many of those clients, he adds, were later grateful for the course correction, saying, “We would never have been able to enjoy ourselves in [an older] house.”
2. A good school district
Even if you don’t have children, you should make sure the house you’re eyeing has desirable schools nearby, says Tina Maraj, a Realtor® with Re/Max North Orange County in Fullerton, CA.
Does it matter if you’re not looking to have a few kids? Well, things can always change. But even if they don’t, good schools typically translate to a higher resale value—potential buyers with families will want to be in the right district.
Just make sure to do your research and determine where the home sits in relation to the school district boundaries.
“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” Maraj explains. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”
Go to the school district’s website to get a map of the district boundaries.
3. The floor plan
Does the home fit your minimum criteria in terms of number of rooms and the flow of the main living areas? If not, cross it off your list, says Sarah Garza, a Realtor and military relocation specialist with Trident Homes Realty in Arnold, MD.
Garza can share some personal cautionary tales: A military spouse, she’s moved 12 times in the past 20 years, buying and selling nine homes in the process.
“I regret that I compromised on layout in the past,” she says. “When I really needed four bedrooms, I’ve gone to three and then wished I hadn’t.”
Sure, you can add on. But don’t use that option as a fallback, Maraj warns.
“You can change a layout to make it an open floor plan, but it’s a lot more difficult to change the bedroom and bathroom count,” she says. “In the long run, you could end up having a lot of problems and taking on a really big financial undertaking.”
4. The neighbors
During your search, don’t just focus on the house you’re interested in—check out the neighboring homes as well, Maraj says. Are the properties well-kept, or candidates for an episode of “Hoarders”?
The condition of the properties around you can affect your future resale value. And they can just plain drive you crazy. Make sure you look—and listen—any time you visit your prospective home.
“You can’t change the house in front of you or to the side of you,” Maraj cautions. “And if there’s a barking dog every time you’re viewing the property, that’s another thing that you absolutely cannot change.”
5. Your budget
You’ve probably already determined how much you’re willing to pay for a home—and you shouldn’t budge on that number. But you should also dig in your heels on the additional costs beyond the sticker price. That means setting a budget for your monthly payments, HOA dues, utility costs, and real estate taxes—and sticking to it. (Hint: You want to do this before you start looking at homes, and definitely before you start making offers.)
Yes, a lender will give you a pre-approval and tell you how much house you can afford. But this is just one piece of the puzzle, and the costs of homeownership can still land you in a mountain of debt if you’re not careful, Kessler points out.
“I try to do a lot of pre-planning with clients about what can they really afford, as opposed to what the bank tells you,” Kessler says. “You never want to be house poor.”
6. Commute time
If you’ve already determined that you’re willing to take on a 30-minute commute, don’t be swayed to take something that’s even a few minutes longer, Garza says.
“Sometimes buyers fall in love with all the shiny bells and whistles of a house that’s an hour away from work, and want to compromise on what they’ve told me from the beginning,” she notes. “I tell them, ‘I know it doesn’t matter right now because you really love this house, but that’s two hours every day that you’ll be sitting in the car and not enjoying your house. Is that worth it to you?’”
She adds: Until you’ve actually driven the route to and from your potential home and your office, at the times you’ll be commuting, you should never consider compromising.
In some large cities, being just a few miles from the highway can tack on an additional hour of commuting. Could you handle that after a long day in the office? Think carefully before making the sacrifice.
7. Parking
Speaking of your car, if you own one (or two), you absolutely want a guaranteed spot to park, whether that means an enclosed garage, a driveway, or assigned parking.
“There are many communities that now restrict outside parking, guest spaces, and overnight parking, which could be a real homeowner nightmare if you have to fend for yourself,” Maraj says.
To avoid frustration after you’ve closed a deal, stick to your guns about the things that are most important to you while making your choice, and ignore the rest of the noise.
How Can I Get Approved to Rent With No Rental History? Honest Answers Ahead
By Jeanne Sager | Sep 1, 2017
“How can I get approved to rent with no rental history?” This is a common chicken-and-egg conundrum for first-time renters, since landlords are often wary of opening their doors to tenants with no record of paying rent. So if you’re young and/or have never rented your own place before, how are you supposed to convince a landlord that you’re a solid bet?
Never fear—overcoming this hurdle is entirely within your grasp, provided you do a little prep work first.
“It can be challenging to find a place to rent with no rental history, but it’s not impossible,” says Denise Shur, a Realtor® with 1:1 Realty in San Jose, CA. Just follow the steps below on getting a rental with no rental history under your belt.
How to get approved to rent with no rental history
Basically, landlords want to see that you have money to pay your rent and will do so in a timely manner. So before you start cold-calling landlords or perusing rental listings, make sure to gather some evidence that makes a convincing case on your behalf.
The main thing you need? A stable income, which suggests you have the cash to funnel toward rent.
“Normally, if you go talk with a real estate agent or property manager, they will be able to look at your work history and finances and help you get approved to get into a rental,” says Lana Lavenbarg, a Realtor® with Re/Max Ideal Brokers in Grants Pass, OR.
In addition to proving you have money coming in to pay your monthly rent, there are other things that can strengthen your case.
Shur suggests putting together the following paperwork to bring along for your meeting with a potential landlord:
How to nail the deal with a landlord
Shur says personal details can swing a landlord your way. Here are a few tidbits landlords love hearing:
Source: http://www.realtor.com/advice/rent/how-can-i-get-approved-to-rent-with-no-rental-history/ | Sept. 1, 2017
7 Secret Thoughts Landlords Have About Renters—Revealed
By Audrey Ference | Aug 17, 2017
Whenever you hand over your rent check late (again), do you wonder what your landlord is really thinking? Well, we’re here to help you find out! This is important intel for all sorts of reasons. For instance, landlords can choose to raise your rent once your lease is up, or hold it steady. They can jump on repairs right when you need them at 3 a.m., or wait until morning. So here’s a peek at some of landlords’ secret thoughts—along with some eye-opening lessons on how to stay on their good side.
‘Why did you sign your lease without reading it?’
“Renters are often so excited about getting the keys to their new rental that they rush to sign their lease agreement without carefully reading it,” says John Nuzzolese of the Landlord Protection Agency website. “I prefer to sit and explain each clause of the rental agreement to the tenants before they sign it. It’s crucial that tenants completely understand what their rights and responsibilities are before finalizing the agreement.”
Why is this so important? So you and your landlord are on the same page—about when rent is due, what penalties there are for violating the lease, and what you can and can’t change in your place. For instance, “I once had a tenant take it on himself to remove our new carpeting and replace it with carpet of an ugly color,” says Nuzzolese. “I was so annoyed—and it came out of that tenants’ security deposit to change it back.”
Source: http://www.realtor.com/advice/rent/secret-thoughts-landlords-have-about-tenants/
6 Neighborhood Red Flags to Look for When Renting
By Cathie Ericson | Aug 10, 2017
Finding the ideal home or apartment to rent can be tricky. Even though there’s less financial commitment than with buying, you’re still selecting a place that will be home, sweet home, for what could be years. That’s why you want to make sure that the property, as well as the neighborhood, suits your needs. Keep an eye out for these neighborhood red flags; they’ll help you figure out what it’s really like to live there.
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1. The overall rental market
Do you see a plethora of properties sitting vacant? That can be a worrying sign, says real estate investor Brian Davis, who teaches courses in rental investing at SnapLandlord.com.
“Healthy neighborhoods should have only a handful of vacant properties at any given moment, even if they are being marketed for rent or sale,” he says.
When you’re browsing listings, pay attention to how many apartments are actually up for rent. If the number seems suspiciously high, the neighborhood could be a real dud.
2. The condition of other properties in the area
If you see too many homes in obvious disrepair that aren’t being renovated, it means the properties in the neighborhood aren’t worth fixing up, Davis says.
Also, watch for the general level of upkeep among homes in the areas. Eyesores worth paying attention to are trash on the lawn or sidewalk; blinds or curtains hanging outside of the window; cars parked in the yard; and holiday decorations up year-round, says Roslyn Lash, an agent with Realty Select in Rural Hall, NC.
3. The commercial property scene
You want to see most of the commercial spaces occupied with healthy-looking businesses, says Davis. This not only reflects well on the vibrancy of the market, it can also make your life easier when you have grocery stores, restaurants, and other amenities close by.
On the other hand, you also want to make sure there’s not too much of a good thing, notes renter Shane Lee, who lives on the Lower East Side of New York City.
“While it’s convenient to live in a neighborhood full of restaurants and bars, don’t forget you will also have to deal with the trash and noise,” he points out, adding that his apartment often smells just like the restaurant downstairs.
4. The area’s crime rates
Before you sign on the dotted line, make sure you check out how prevalent crime is in the neighborhoods you are considering. A few resources that will give you the 411 are AreaVibes, SpotCrime, and NeighborhoodScout.
5. 24/7 activity on the streets
In addition to touring the property on a Saturday afternoon, it’s smart to take a look at the neighborhood at different times of the day.
Check for daytime loiterers, Davis advises.
“It’s a good sign to see neighbors shooting the breeze in the evening, but think twice if you see a pack of unemployed-looking people just hanging out on the street in the middle of the day,” he says.
Visiting the neighborhood at night can give you a sense of how safe you’ll feel—and, of course, what the noise levels are.
Lee has one other practical tip: look down. He was annoyed by all the dog waste near one apartment he was considering: “It made me feel that the neighborhood was dirty and residents there didn’t really care about hygiene or how other people feel.”
6. The scoop from neighbors
Finally, seek out neighbors to really get the scoop beyond what you read on the property listing. If you don’t run into any people, quiz the landlord or ask for some references.
“Talking to people who live there is a sure way to gain inside knowledge about the neighborhood,” notes Lash. “You’ll also get a good idea of whether people are short-timers, which could be a red flag in itself.”
Source: Cathie Ericson | August 12, 2017 | http://www.realtor.com/advice/rent/neighborhood-red-flags-when-renting/
Protect Yourself When Rejecting Applicants
One of the hardest parts of landlord management is having to reject prospective tenants who don’t meet your requirements. Accepting a tenancy is the easy part, assuming of course you’ve done your due diligence throughout the ever-important screening process. By the time you’re ready to accept a tenancy, you should be happy and confident in your choice. You’ve met with everyone, reviewed applications, and followed up with references. You’re confident in your choice. But assuming again that you’ve gone through a thorough screening process, that means you now have applicants to reject as well. Nobody likes to be rejected, and nobody likes to do the rejecting either. It can harbor ill feelings and negative scenarios. Understanding of course that this is a touchy process, there are ways that you can both respectfully and legally reject an applicant. In doing so, you’ll be protecting yourself, your investment and you’ll have the peace of mind of knowing that you did everything you could to make the rejection process as painless as possible for all parties involved. Displaying that level of respect for the process and for the applicants will go a long way in protecting your rear end.
If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.
So, What Can You Do and What Can’t You Do?
First and foremost, you need to know how you are legally entitled to act, and you need to understand what would put you into a legal grey area. According to Canada’s Human Rights Act of 1984, a landlord cannot reject a tenant based on a variety of recognized and prohibited grounds of discrimination. We’re talking race, nationality, gender, sexual orientation, origin, skin colour, religion, marital or family status, pardoned offences, and disability. If you reject a tenant based on these grounds, you will be in direct violation of the Human Rights Act. Now, it’s important to understand that this doesn’t mean that you can’t reject an applicant of a certain colour, race, religion, sex etc. What it means, is that if you plan to reject an applicant, you’d better have a good reason that doesn’t apply to any of the described characteristics.
With that said, Ontario landlords can accept or reject an applicant based on a multitude of criteria, including credit checks, income information, personal or professional references and rental history. Which brings us back to a reoccurring theme on these blogs: have a proper screening process!
As a landlord, you are required to treat every candidate equally. With that said, it’s part of your job to make judgements against the applicant’s’ character. How else are you supposed to decide on who to accept? Making this decision can be the scariest part of landlord management, as being stuck with a bad tenant can be a massive source of stress. You are entitled to accept or reject an applicant based on your own judgement calls, but you must ensure that your judgement does not break Canada’s Human Rights Code. Just understand that when making your selection, your reasoning should be based on who is the best fit, and nothing else. The best way to ensure that there is no grey area in which an applicant can claim discrimination, is to require the same process from each applicant across the board. You should require the same rental application from all prospects, and you should do the same credit checks, background checks and reference checks for all. Once you’ve made your decision, applicants should be contacted within an appropriate window of time whether you are accepting or rejecting. This will give the applicants time to make other living arrangements, and will ensure transparency. It’s typically recommended to follow this process in writing, as to create a legally sound record of the process.
Make the Phone Call
In addition to sending a written rejection, you should give the prospects a call. Speaking directly shows respect and character. It also gives you a chance to properly thank the applicant for their time and interest. This will greatly limit any ill feelings a rejected applicant may feel.
The big take home here, is that the power to choose is in your hands. With that said, there are right and wrong ways to do anything, and the rejection process requires a touch of tact. Don’t be afraid to reject, just make sure you’re doing it for the right reasons, and in a respectful manner.
Are You a New Landlord? Don’t Make These Costly Mistakes
Owning a rental property is a very smart move. It can be a reliable source of additional monthly income, not to mention the potentially large payoff when it comes time to sell the property and cash in on it’s equity. But it’s not all fun and games. Failing to properly manage your rental property can be a massive source of headache, and extremely costly both from a time and financial perspective. If you’re new to the game, be aware that this is a business, and as such, remain business minded. Recognize areas where other landlords have failed, and use them as learning experiences. On that note, avoid making these costly mistakes:
If you need help with property management, tenant management services, or looking into a property investment – contact CMG Toronto today. The best property management company in Toronto.
Failing to Properly Screen Tenants
The most important aspect of landlord management, is properly screening your prospective tenants. Failing to do so is like playing Russian roulette. You may get lucky…or you may bite the bullet. Think of your tenant as the arms and legs of your business. They are living in the space, and therefore have direct impact on the properties maintenance and liveability. The last thing you want is for your tenant to run a muck on your property, as this will leave you with the headache of fixing the space up, and the bill that comes along with it. More importantly, you are relying on the tenant to pay their rent for your investment to be worthwhile. If a tenant fails to pay their rent, it can take months for you to evict them, and there is no promise that you’ll ever be paid out on the months of back rent – so be smart and screen your tenants thoroughly.
Allowing Tenant Renovations
Some landlords think to themselves: “my tenant wants to renovate? Fantastic, free service for me!” That’s a potentially dangerous thought process. For starters, you should be heavily involved in any renovations or fixes being done to the space. Once the tenant leaves, you’ll need to find a new tenant; what if the renovations or fixes from the old tenant were performed poorly? Then you’re going to be stuck cleaning up the mess. Moreover, tenant renovations can potentially cause damage to your property, or even tenant injuries that may lead to legal trouble. If your tenant is offering to pay for certain renovations, that’s fantastic, but make sure you pick the professionals to do the work, and make sure you know exactly what work is being done.
Lazily Written Leases
Take your time when writing up the lease. The lease is your failsafe in case of disputes. The lease should thoroughly outline what is expected of the tenant, and what steps can be taken if the tenant fails to live up to the lease requirements. If the lease is missing vital details, or lacking specific required information, it may be deemed null and void in the case of a legal dispute. Do not skimp on the lease.
Verbal Lease Agreements
Some landlords settle with a verbal lease agreement. A verbal agreement will not hold up legally, and causes a ton of grey area. Without proper documentation, you have no leg to stand on if need be. A written, and signed lease agreement, is the only way to protect your rear end.
Not Having Insurance
Like any business, you need to be covered legally as legal disputes can arise with your tenants; rent can go unpaid, damages can arise, liability issues can come up; understand that a landlord can be held liable in the case of injury to your tenant or one of their guests. A good insurance plan will protect you and your investment.
Not Requesting Tenant Insurance
On the same note, you’d do well to ensure that your tenants have tenant insurance. It’s not uncommon for tenants to cause damage to a landlord’s property. Fires, floods, broken structures etc. are all possible, and if your tenant doesn’t have insurance, you will likely get stuck with the bill.
Accepting Alternative Methods of Payment
Why did you purchase a rental property to begin with? To make money, right? So why on earth are their landlords who accept alternative methods of payment? In some cases, tenants will offer to pay for certain renovations or repairs. In this case, how do you know the job will be done well, or at all? Accepting anything other than money for rent, negates the very purpose of renting out the space to begin with.
These are just a handful of big errors that many landlords make. If you’re new to the game, be smart and avoid these common mistakes.
Tenant Customer Service is Paramount
The most successful landlords treat their venture as a business. Like any good business, customer satisfaction must be a priority. Failing to view it as such is a guaranteed way to fail. Customers drive business, period. Like any business, however, you will encounter bad customers. Accept this now, and accept that your job is to manage them. With that said, I’m not encouraging you to allow yourself to be taken advantage of. “Professional tenants” do exist, and their aim is to suck the landlord dry. This is not OK, and I would encourage any landlord to take the necessary steps to evict in these given scenarios. But all too often landlords will treat minor discrepancies as if they represent the end of the world. This leaves them stressed, leaves their tenants unhappy, and breeds a negative environment for both parties.
Making the effort to view your tenants as customers, and understanding the importance of customer satisfaction, will ultimately lead to a more satisfactory tenancy for both parties; tenant satisfaction leads to wilful cooperation on their part. This will make your life as the landlord infinitely easier. The long-term effect is equally beneficial as it is essentially indirect marketing: a satisfied tenant will be more likely to give you less headache, and want to stay on board once their lease is up. If not, they are more likely to bring you future business throughout positive word of mouth. The ultimate effect for you as a landlord, is less vacancy, and better tenant cooperation. This should be the ultimate goal for any successful property manager.
So, what sorts of actions should a landlord/property manager take to ensure customer satisfaction? Glad you asked:
First and foremost, a thorough lease agreement fully outlining your expectations as a landlord must be put in place. I would also recommend spending time to go over the vital details with your tenant either in person or over the phone. Many landlords send over the lease agreement without discussing the terms with the tenant. In turn, many tenants fail to actively read the agreement. This creates grey area, which is a recipe for disaster. Clear communication, on the other hand, will ensure that both parties are on the same page. This will give both parties confidence entering into the agreement, as they understand what will be expected on a daily, weekly or monthly basis. No surprises mean less headache.
Hand in hand with this is ongoing communication. Don’t just fall off the map once your tenant has moved in. This can lead to many unwanted scenarios including tenants slowly easing off lease agreement details because they feel they aren’t being monitored. More importantly, your tenants may need you from time to time. In these instances, it’s important that they can easily reach you. If they feel that you don’t prioritize customer service, they’ll be less inclined to treat your property with respect. Make sure you are easily reachable, and timely to respond to inquiries.
Always remember that you are a professional, and conduct yourself as such. When your tenants see that you are a serious landlord who takes on full accountability, they are more likely to respect you. When meeting with your tenants, be well dressed and well groomed. Be friendly and courteous, but be sure to keep a clear distinction between friendship and professional relationship; most of us have taken advantage of a friend at one point or another in our lives. But how many of us have taken advantage of a superior? Small talk is a nice middle ground that will put your relationship in it’s place.
Lastly, stay organized. This will show your tenant that you are a professional who commands respect. Maintaining a sense of order and organization will give your tenant confidence in dealing with you and living in your space. They will feel that they are in good hands, and will be more likely to adhere to rules and clear communication throughout their tenancy with you. An organized landlord is inadvertently encouraging and promoting easy cooperation from their tenants.
These are just a few key details to keep at the forefront of your mind. By maintaining clear communication, professionalism, organization and clear agreement details, you’re setting up a successful tenancy in both the immediate and long-term future.