1. ABLE TO AFFORD A NICER PLACE
Financial benefits of having a roommate include the chance to afford a nicer place. When living on your own, you might not be able to live in the neighborhood you prefer. However, if you get a roommate and share the cost of rent, you can possibly move up and settle in a desired community.
2. SPLIT UTILITIES
Not only is there the benefit of splitting rent, you can also split household expenses, such as power, water, cable or gas. This can take a huge burden off your shoulders. And if you’re still living at home with mom or dad, getting a #roommate can help you move out sooner and become independent of your folks.
3. CREATE AN AMAZING BACHELORETTE PAD
If you’re moving into your first place, you probably know how you want to decorate the home. But unfortunately, decorating and furnishing an apartment or house on one income can be challenging. However, if you move in with a friend, the two of you can combine funds and create the living space of your dreams. This can make for a fabulous bachelorette, or bachelor, pad.
4. BUILD A CASH CUSHION
Financial experts recommend a savings account with at least 3 to 8 months’ worth of income. Unfortunately, this can be challenging to save, especially if you live by yourself. With a #roommate, your disposable income might increase, making it easier to save up for a rainy day and plan for retirement.
5. PAY OFF DEBT
Whether it’s student loan debt, credit card debt or an auto loan, getting out of debt can be hard when you have several monthly expenses. Getting a roommate can speed your debt elimination goals. Rather than all your cash going to bills, your disposable income can go towards paying off your consumer debt. This can free up money in the long haul and improve your credit score.
6. REDUCE MONEY-RELATED STRESS
Do you lie awake at night worrying about money? Is there never enough to cover your monthly expenses? Chances are that you’re living beyond your means and your income is not enough to support your lifestyle. However, getting a roommate can allow some breathing room in your budget, which can reduce money-related stress.
Category Archives: property
Simplify Your Property Investment: Why Oursource Your Real Estate Investing Needs
Are you operating your own rental portfolio? Are you tired of investigating your tenants and checking them out fully to make sure you are getting solid income streams?
Are you trying to find properties where numbers work? Do you think it will be wiser to work out a deal with a professional property manager to limit the liabilities your real estate business is creating?
Are you managing forward-looking assumptions regarding bad debt, delinquencies, concessions, vacancy, rent growth, etc. all impact returns and yields?
Are you embracing technology and don’t know how to start working on your online presence?
Property investing may not be rocket science but you can be bogged down with the various challenges of the day-to-day transactions.
Real estate may be a multifaceted and dynamic industry that evolves quickly and there will always be a handful of problems in such an erratic sector you have to navigate, but dealing with these challenges is not at the top of your list of priorities.
Don’t fret.
You can delegate. You can have your peace of mind.
So you can focus on the most important stuff in your real estate business and free your time working on what you love and what you’re good at, you can delegate two important roles:
- Lease Administration
- Dedicated Staffing
Yeah, this the smartest way to run your property investing business nowadays.
OUTSOURCE.
Why should you outsource your real estate investing needs?
• To simplify your property investment
You can demystify your property investing if you’ve developed a system with a dedicated team to cater to specific tasks. Let property managers do what they’re good at doing. Let the auditing team do the numbers. Let the social media staff work on your online presence. Delegate specific tasks to the right people to get the best outcome possible.
• To allow you more time to focus on what you do best
Since you already have a system and a dedicated team working in the background at the jobs that they’re good at, you now have more time to focus on what you do best. You can’t be a one-man band to do everything. You have your own special skills and talents that are needed in your property investing and it will serve you well to do that.
• To give you the freedom to have a work-life balance
You don’t necessarily have to work hard on your property investing. You only need to work smart. With a sound system in place and dedicated staff, you can also enjoy and get a life.
5 Considerations For Resolving Home Water Issues!
For those who own a home of their own, one of the single – greatest fears, faced, is some sort of water – related issues, and/ or, obstacles! Although, these are faced, on a somewhat – regular basis, after every storm, especially, larger ones, more and more homeowners, discover some sort of water damage, around their house! How one handles these, and, perhaps, prepares effectively, to minimize them, to, as large an extent, possible, differentiates between happy individuals, and stressed ones! This damage occurs, around a variety of areas/ locations, in, and around the house, most of which, come with ways to address them, proactively, to ensure maximum preparation and protection. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 specific areas, which should be thoroughly, considered and examined.
1. Roof: The reality is, every roof, no matter, how well, it was installed, and how strong the materials, etc, has a finite – useful life! Therefore, it is wise, to inspect, maintain, and take the best care of this, on a regular basis! Obviously, even then, there is a possibility of issues, related, arriving from hurricane – strength winds, and rains, so there is no absolute – guarantee! It is wise to have installed, a roof, composed of the highest grade materials, by the finest professionals!
2. Walls: How well constructed, and how is the quality, and condition, of your walls? When there is something, impacting the integrity, and consistency of, outer, and/ or, interior walls, this often leads – to, significant challenges, to its effectiveness, and ability to protect the house, against potential, water damage, etc! A smart homeowner pays attention to cracks in the foundation, exterior walls, interior ones (especially, in the basement, and, near potential entry areas, such as near the chimney, corners, etc.
3. Windows: On a regular basis, windows should be checked, to see, if they are properly sealed, especially, around the exterior components! Many tend to ignore, and/ or, take – for – granted, the structural integrity, of these, and many potential water leaks, come from these structural inconsistencies!
4. Underground streams/ water: When, there is ground water, especially, from shallow, underground streams, and/ or, other water supplies, when heavy rains, occur, especially, when the ground is, either cold, or, there is no place for the new water to go into the ground, because it is saturated, by recent rains, etc, this generally means, it will be a recurring occurrence! These must be addressed, proactively, using, French Drains, which are trenches, etc, dug, usually, around the outside walls (usually, inside the house, but, sometimes, inside), and use special types of PVC pipes, with holes, and which, lead into something, such as a sump – pump, to remove the water, as soon as the level rises,
5. Exterior ground maintenance/ work: Often, when other things, don’t fully address these types of issues, exterior work is recommended! Installing a dry well, in specific areas/ locations, improving land – grading, properly, and pitching the land, away from the house, to a properly functioning location, are some of the potential steps, some take.
5 Things to Do Before Renting Out Your House
Renting your property may seem like an easy way to increase your passive income, but upon starting the process, you may find it to be more complicated than expected. Your house may sit on the market for months without a rental applicant because it is priced above the fair market rent. A bad tenant may be late or outright refuse to pay rent; they have the potential do thousands of dollars in property damage and may ignore your attempts to evict them from the property until authorities are involved. If you are looking for a Realtor who can help you with all your Pinehurst Real Estate, then don’t hesitate to visit Pinehurst Real Estate Office for more information.
So how can you avoid the headache of these common difficulties associated with renting a property? Here are five things to do before renting out your house to reduce the risk and stress of being a new landlord.
1. Take Photographs of the Property
Photographs of the property are necessary for several reasons. They are an important part of online advertising – otherwise favorable rental listings without pictures of the property are often passed over by potential tenants because they do not want to have to wait for a house tour to find out that the property does not have a layout or design that suits them. These photographs will also be helpful when your future tenants are moving out, as you can use them to measure any property damage that occurred during the rental period.
2. Assess Fair Market Rent
While it may be tempting to charge higher rent to make money back on recent renovations you may have done or moving costs from when you left the property yourself, the best thing to do is conduct market research: check with rental websites, newspapers, local landlords, realtors, and property management companies to determine the amount that properties of similar location, size and condition are renting for.
3. Create a Concise, Effective Rental Application
An effective rental application will not intimidate potential renters with its length, but will be comprehensive enough that it can be used for tenant screening purposes. Any additional information that you need from the tenant should they pass screening can be included in the lease documents. A good application will have spaces for the following items:
- Name
- Date of Birth
- Social Security Number
- Phone Number
- Current/Previous Addresses (last 7 years, including landlord name(s) and contact information)
- Current Employer (name, address, hire date, income, contact information)
- Authorization to Obtain Consumer Report Statement
- Tenant Signature
4. Consider Using a Property Manager
Property managers will typically charge a percentage of the monthly rent for their services, but in exchange, they will take care of things such as finding new tenants, creating/signing the leases, collecting the rent, and issuing legal notices (including evictions). Hiring a property manager cuts down on the profit you will make from your tenants’ rent payments, so you should carefully consider the cost-benefit of these services.
5. Find Good Tenants
Finding a decent tenant is easier said than done – many applicants can be friendly, polite, and will seem to be a good fit, but will create a flood of problems for you. The best way to improve the quality of tenants that you are leasing to is to conduct tenant background checks – that is, choosing tenants based on measurable fiscal and rental responsibility. Most landlords will charge rental applicants an application fee to cover the cost of tenant screening.
Benefits of a Property Management Company
Some might think that hiring a property management is just not worth effort, and go to the extreme of saying it is just not worth the effort. While it is true for people who are managing their own assests to say so, it is different for others who don’t reside in the same vicinity as the assets they own. This article throws light on the beneficial aspects of property
- Representation: If you are landlord, a professional management company will represent you in your absence to fulfill the required procedures on your behalf. This will be a buffer between you and the tenant and you would not be required to invest your time and effort. Tenancy management needs consistent follow-up to see that not only the rent is received on time but the assets is well taken care of and maintained properly.
- Setting the right rent: You have chosen the property manager because of his local knowledge and the right kind of information he posses. This will ensure that you do not set the rent lower than what actually the assets deserves, nor high to deter potential clients. A high rent will actually make the property sit idle for a long time, this will only result in loss of income for a month. An efficient property manager will set the right rent and will make all possible efforts to let your property to the right people at the right price.
- Professional promotion of property: A good property manager will understand all the avenues to promote the assets properly both online and offline. He will use of combination of promotional activities to attract the right tenant. In India, the property manager gets paid only when the property is let out, hence it is in the interest of everybody to rent out the property at the earliest.
- Screening the tenant: A good property manager will be able to advice you about the kind of client your property should attract. They will help you screen the clients who come looking for your assets, and help choose the tenants who will take good care of the assets and pay the rent on time. Also they will vacate without issues when on the expiration of the “Leave and License’ agreement.
Property Inspection Tips: A Handy Checklist
The detailed inspection of the property you are planning to purchase, is an essential step before entering into an agreement with the seller. Sellers usually try to hide minor damages, so that they can later pin them on the buyer and avoid the repair costs. Checking the property for any hidden damage or structural issues is always a good idea so that you don’t have to pay for the repair of these complications. Here’s what you should look into:
1- Check For Water Leakages
One of the basic damages that go unnoticed during casual checks are the small gaps that later go on to cause water leakages. Another unnoticed issue is water seepage, which causes damp walls. This problem is more prevalent in apartment buildings, where water seepage in an apartment, causes damp walls in the room directly below the faulty water seepage.
2- Lookout For Cracks
Thorough inspection of walls and ceilings for possible cracks is very essential. Usually, what looks like just a minor line on the wall turns into something substantial with time. So instead of running through the house inspection, it’s better to take your time and closely inspect every area to detect cracks.
3- Inspect The Plumbing
Proper plumbing is the foundation of a well-built house. Without this, the water supply and drainage pipes become faulty and can cause massive damages for you. A comprehensive check of the plumbing system can be done by checking the condition of the pipe material used for draining, waste, and venting purposes.
4- Test Window And Door Fittings
Another important aspect of the property inspection process is the absolute and thorough checking of the window and door fittings. A loose window or door is an invitation for accidents and should be properly checked to avoid mishaps. Also the setting-in of windows in their frames must be ensured, so that they can close easily during rains and sandstorms.
5- Measure Room Size
Before finalising the property, measure the size of each room on your own and map out how much space you will require for placing furniture and other items. Estimating just by looking may not be a good idea, as later you will realise that the room is actually smaller than what you had anticipated.
6- Ensure Proper Ventilation
Passage of fresh air through the house is of utmost importance for the health of the inhabitants. Ensure that proper ventilation vents are provided in every room for brisk air, and that the rooms have good scope of receiving sunlight. Also, if you are installing a central AC, make sure that all the wires and connections are safe.
Ten Reasons Why Property Proposals Need Permission
1. Lenders Permission To Rent A Buy to Let Property. – Inherently this includes permission to rent – or does it?
a. Even this type of mortgage will exclude certain tenancies.
b. E.g. it is likely that a landlord’s family-members are excluded from occupation.< letting to benefit recipients.
d. Therefore, it is important to always establish whether there is either implied or actual permission.
e. A former landlord-home will probably require lender-permission to rent.
f. Lenders are likely to require any tenancy to be an AST and contra wise may exclude common law and commercial tenancies.
g. Lenders’ permission to allow alterations and extensions: probably requires lender consent to build a property extension.
h. Some lenders restrict the number of tenants to say four tenants.
i. So if you extend your four-bed apartment to five bedrooms, your lender might contend that your mortgage product does not permit renting to five tenants.
j. In such circumstances the borrower must do one of three things:
i. Swap mortgage products to enable an additional tenant. However, such a swap is likely to come with a lower loan-to-value and a higher interest rate.
ii. Switch mortgage lenders. This may not be as easy as it sounds in a depressed market.
iii. The only remaining option might be to do nothing. Certainly do not waste money renovating if this will breach the terms of the mortgage agreement.
k. Lenders might require confirmation that borrowers have appropriate permissions before in turn permitting renovations
l. Lenders might demand that a damp basement must be ‘tanked’ within say three months of granting a mortgage, meantime withholding a retention. But if the property is a listed building the local authority may not permit it. So unwittingly, conflicts can arise for the unwary.
2. Building Control Approval – Permission is likely required prior to conducting structural alterations.
a. Any structural alterations, even replacing a bathroom may require ‘Part-P’ permission to fit an electric shower unit. Likewise other ‘wet’or ‘notifiable locations’.
3. Planning Permission – This may be required if it is outside ‘Permitted Development’, e.g. a large extension requires permission, whereas say a small porch will not – unless it is a listed building or in a conservation area when normal permitted development requires written permission anyway). After 4 to 10 years following unpermitted works, any required permission is deemed granted and no longer an offence.
a. If the Property is a ‘Listed Building’, ‘Planning Permission’ is required.
b. If the property is in a ‘Conservation Area’ yet again Planning Permission is required to lop. top or fell a tree.
c. A house in an area designated as covered by Article 4 requires planning permission under the Town and Country Planning Acts and Orders.
4. Ex Local Authority Homes – If the property was formerly owned by a local authority then there is likely to be a restrictive covenant in the deeds preventing alterations to the external appearance – without the local Council Estates Department’s permission. So even if a small porch would e within permitted development permission may still be required.
5. Mandatory Licensable Property – A property is in England or Wales and comprising three or more storeys and 5 or more unrelated tenants is classed as a large HMO and as such requires LA approval to be let as a Mandatory Licensed Property.
6. Discretionary Licensable Properties – This also require permission to let and this covers Additional and Selective Licensing. See previous articles by the author on this topic.
7. Sui Generis – A property is in England or Wales and comprising seven or more unrelated tenants is classed as a large HMO and is in also a category of its own called ‘Sui Generis’. As such this requires LA approval to rent regardless of the number of storeys.
8. An Empty Property pending letting also requires permission from any home insurer if vacant longer than a set period – normally 30 days.
9. A Landlord’s or Owner’s Permission is required to do anything stipulated within a tenancy agreement which requires the landlord’s permission: permitting pets, subletting as an inferior landlord and or tenant, changing colour / decor, etc. Similarly, proposed works at or near a neighbouring property-boundary (vertical – walls, or horizontal floors and ceilings if flats) will require notice and Party Wall Act (1996) consent or arbitration with any adjacent owner.
10. Permission to Act subject to Declaring Personal Interests. Failure to declare a personal interest can result in a breach of Consumer Protection Regulations. If there is a presumption of a personal interest this can create a conflict of interest. Once the personal interest is declared to the other party and that party agrees, or permits the act, then there is no conflict. E.g a landlord must be told that a letting agent or staff member is related to the new tenant or to a service provider to avoid a presumption of impropriety. The tenant might only be paying half the true value of the rent or the contractor may not be competitive both to the detriment of the landlord. Once informed the landlord is likely to scrutinise such a deal to ensure correctness before granting permission to rent to the relative or agree to works by a relative.
Tips On Finding The Right Property Management Company
It is a hassle, more often than not, to find the right guy to do the job. This is certainly the case when searching for a property management company. While it’s true that the risk of property management is reduced considerably if a reliable real estate manager is on the job, you have to find the right property management company for the process to be successful. Read on to learn how to find the right one.
Search Your Local Network
Your local network will comprise trusted and reliable people. Ask your realtor, contractor, or handyman if they know of any property management company that you can work with. Also seek advice from network meetings and investment clubs. Gather all the options you can from the people you know and trust.
Ask The Company Officials Important Questions
Once you have a list of property management companies ready, you to need to speak to the concerned people in each company and ask them a number of questions. Find out who their other clients are and collect references. Look into the property portfolios they managed in the past and find out how efficient they were with these ventures. This can be a good measure of how likely it is that the company will succeed in managing your property portfolio.
Value For Money Is Key
After gathering all the necessary information, you should enquire about the pricing. Property managers are responsible for performing a multitude of functions that vary in both cost and responsibility. Before entering into an agreement with the company, ensure that you are getting everything you want from them, and all of that at a satisfying price.
Be smart about the money. Some companies may offer their services for a percentage of your monthly rent, but there may be others offering more services for a marginally higher price. It’s recommended that you decide exactly as per what suits you.
You Should Take The Calls
You and your property manager should work like a team, with no lapse in communication. Remember that it’s your property in question and so you are in control. The buck stops with you. So for instance, if the company relies on your rental income for their salary, they might look for ways to increase your rent amount. You should stay a step ahead and make sure this doesn’t affect you. Nobody should have the final word on your property but you.
Be Sure About Who You Finally Pick
Take your time in choosing the most suitable property manager. Not all those who make a good first impression will deliver. Even if a manager was referred to you, you should do your research anyway and run a thorough background check.
Important Property Investment Strategies
It is the right time to invest in the property market. As the real estate market is growing faster than ever before, you can definitely take it under consideration. Many national and international property developers have been showing their interest in it. To roll money in various markets, many new business tycoons are choosing real estate market as the best option. This is a very good decision helping them make more money. Side by side, they can make more profit and show the government lower account balance.
If you are a new investor interested in investing money in the real estate market, you must follow some important investment strategies. This will help you maximize profit and minimize loss. To do so, you must be well aware of the tax rules and latest real estate laws. Clearly speaking, you should know the property guidelines of a place for a safe, secure and profitable investment there.
Given below are some important guidelines:
Examine the site for investment
This is the first and the vital step for taking any property investment decision. If you are going to invest in a city, you must find out a site which is very close to the industrial belts, business hubs and special economic zones of it. Here you should critically justify and judge the proposed project site. To do so, you must think about the location and communication system of a place. Your planned area must be well-connected to the important parts of the city. It should not be far from the heart of the city.
Learn the property size and ongoing market price:
This is another important thing to consider before starting a new real estate project. You must know the size of the land. Get it measured and calculated with an experienced engineer. You should know the ongoing market price of that area. Make a comparison of the prices with the nearby sold areas.
Know the tax laws and investment rules
This is mandatory for a realtor to know the tax laws and property rules of a city. Violation of any of these rules is subject to various risks. It is worthy to mention here that the tax and investment laws of your targeted area must be flexible.
Buy a fair property:
Buy a property, which has no objection, litigation or dispute. If you buy a wrong property, you cannot take it under your possession. You will only lose your money. A right property selection will give you an extra advantage and confidence.
3 Tips for Home Staging an Empty Property
You might be familiar with the concept of home staging as a way to increase mass appeal of your for sale home to the general public. But what if the home you wish to sell is empty? Can an empty home also be effectively staged? The answer to this question is: definitely yes! Read on for more information.
The first tip is that, believe it or not, there are home staging professionals in existence today that excel in staging empty homes. Some of them are so effective at what they do that empty, the home receives multiple offers before entertaining even one open house. If the home you want to sell is empty and you are seeking to have it staged, you would do well to ask around to the different staging companies to find out if they have anyone on hand who specializes in empty homes.
Another important tip is the concept that less is more. That means the less your home is cluttered up by too much furniture, art pieces, or any other decorative items; the more appeal it will have to potential buyers. This is because the majority of potential buyers enjoy imagining what the home will look like with THEIR furnishings inside of it. If the home is too crowded they cannot easily do this. Then they may move onto a different home instead of buying yours.
Still another tip is regarding the cost of professional home staging companies. This can vary from one company to another, based on your home’s particular needs and the market for home buying you are currently in. Another factor that will determine how much you pay them is whether or not that staging company uses their own sets of furniture or buys some especially for your home. Of course the amount of time they spend staging your home also will factor into your cost.
We have a bonus tip for you as well. That is the person you select to stage your home should know your potential market. Is it families with children and pets or possibly a single professional who prefers a lot of space? Perhaps it is a retirement age couple with homes in a couple of states? Part of the answers to these questions lie in the neighborhood your home is in. Who makes up the majority of your neighbors right now? Odds are good that whatever demographics are there now will determine if more of the same type of neighbors will be attracted to your home. Then make sure your hired professional home stager knows how to set up your home accordingly.
When you are ready to sell your home, either empty or furnished, be sure to contact a local home staging company. They can work wonders when it comes to actually selling your home. Remember; the better your home looks, the more potential buyers it will attract. Then you can be assured of a successful and relatively quick sale. Everybody will be happy.