An astounding 54 percent of apartment rentals experience vacancies every year, according to the National Center for Housing Management. From cleaning costs and repairs to lost rent, utilities, and advertising fees, the cost of tenant turnover can run into the thousands.
You can reduce your tenant turnover and avoid the high cost of vacancy by keeping good tenants in your rentals longer. Here are four tenant retention strategies you should know in order to be a more profitable landlord.
1. Treat Your Tenant Right
Most landlords don’t go the extra mile to make their tenants feel special. You can greatly improve your relationship with a tenant by simply remembering and acknowledging special dates (birthdays, anniversaries, etc.) and by alerting them to standing discounts from local businesses. You could even make it a standard practice to give each new tenant a coupon book for the surrounding area when they move in.
Think about going one step further and give a small gift at Christmas time, too. This small gesture sticks in your tenant’s mind and makes them feel appreciated and special.
2. Make Upgrades To The Property And Landscaping
Anything you can do to improve your property reduces your tenant turnover. When tenants ask, apply a fresh coat of paint. Don’t be afraid to allow them to choose the color as long as it’s not too crazy.
Nice-looking landscaping makes people happy. You can update your rental’s landscaping for cheap by doing the work yourself. Buy flowers for window boxes, trim trees and bushes, clean gutters, and fertilize the lawn to give your tenants a sense of pride in their residence.
3. Improve Security
Consider installing smart locks. Smart locks are going to be the new standard in the near future, so it pays to do it now. Smart locks allow you to grant temporary access to maintenance workers, and they give your tenants a better peace of mind.
Something else you may want to consider is installing an alarm system on your rental property. Most alarm companies will install their systems for free, and you can pass the monthly service fee on to your tenants. Most won’t mind paying this fee knowing they will sleep better at night.
4. Make Your Rental Energy Efficient
One of the biggest complaints from tenants, especially in older rentals, is the cost of utilities. You can help reduce utility costs for your tenants by making a few changes.
Energy efficient lighting is one option while adding new insulation to the home is another. Lastly, purchase a water heater blanket. For about $20, this blanket saves your tenants money every month.
Tenant retention is a big deal, especially when you consider the staggering cost many landlords incur when a tenant moves out. You can’t predict when life takes a tenant somewhere else, but you can help keep good tenants in your rental by making it a better place to be. Consider the above tenant retention strategies to keep your best tenants happy.
A great room, different than a traditional living room, is a large open space designed to be used every day by the entire family for a multitude of uses. From watching TV to reading and lounging, this room is as versatile as it is functional.
With that said, no great room is truly great without a little TLC. Below, we divulge a few suggestions that are sure to make your great room… well… great!
Light And Bright Is Key
To make your great room look and feel large and open, keeping it light and bright is key. If you’re building an open floor plan into your home, be sure the great room has plenty of windows to allow as much natural light to flood the space as possible.
Of course, you’ll want to add the appropriate window coverings to filter and block the light as needed for things like TV viewing or to keep that hot afternoon sun at bay.
Make The Tv Part Of The Decor
No great room is complete without a TV, and of course, it’ll need to be strategically placed for proper Netflix watching on the weekends. With that said, consider mounting the TV on the wall as if it were a piece of artwork. Build its placement into the surrounding wall décor so it looks to be a part of the décor and not something out of place.
If your great room includes a fireplace, consider hanging a low-profile large-screen TV above it for an impressive and interesting display.
Multi-purpose Furnishings
A great room is designed to be multi-functional with many activities taking place there at any given time. In one area, someone may be watching TV, while across the room, someone else may be doing homework at the dining table.
Keep this in mind as you choose furniture for your great room. The upholstered dining chairs you love may not be a practical fit if the dining table will be used for messy activities like crafting, so think about this and choose furniture that fits your and your family’s needs best.
Your home’s great room can be anything you want it to be. That’s the beauty of the space. Follow the tips above to make it the greatest room possible.
The question of which is better – investing in real estate or investing in stocks – has no definite answer. It all depends on the personality, preferences, and lifestyle of the person doing the investing. In fact, it even comes down to the individual investment opportunities themselves, in many cases.
So, since there’s no real answer to this age-old question, let’s take a look at some of the pros and cons of each type of investing to help give you perspective.
Real Estate Investing – Pros and Cons
When you invest in real estate, you own physical property. Whether it’s a parcel of land, a residential property, or a commercial building, it’s something you can touch and use. This aspect is why real estate investment is more appealing than stocks for many investors.
Pros
Investing in real estate is tangible. You can touch it, live in it, and drive by it with your friends
It’s more difficult to fall victim to fraud when you invest in real estate because you can see your investment, conduct background checks on tenants, and ensure the building exists before purchasing.
Using leverage in buying real estate is much safer than buying stocks on margin.
Real estate investments make great inflation hedges.
Cons
Real estate investing is a lot of work when it comes to maintaining and managing properties.
If your investment property is unoccupied, you still have to pay monthly expenses like utilities, taxes, insurance, etc. without any rent coming in.
Real estate doesn’t really increase in value very fast. What makes it attractive is the power of leverage and its potential to increase in value if inflation rises.
Investing in Stocks – the Pros and Cons
When you invest in stocks, you are buying a percentage of a company. It doesn’t matter what the company does, if the company makes a profit, you receive dividends based on the number of stocks you purchased.
Pros
Despite the risk, history has repeatedly shown that investing in stocks is the fastest way to increase wealth. By reinvesting dividends over a long period of time, you increase your chances of amassing virtually unlimited wealth.
Stock investing requires little work beyond researching the companies you invest in.
Investing and reinvesting in high-quality stocks can create an impressive residual cashflow that requires no work on your part.
Investing in stocks requires less money upfront than real estate investing.
It’s much easier to sell stocks than it is to sell real estate. You can sell stocks over and over in a matter of minutes, whereas it could take weeks or even months to sell a property.
You can borrow against your stocks a lot easier than you can borrow against your property. It’s called borrowing on margin and it’s almost as easy as writing a check against your bank account.
Cons
Investing in the stock market is stressful. Most investors are too emotional and fickle to really be successful in playing the stock market.
The cost of investing in stocks can fluctuate drastically.
Sometimes it’s difficult to see a return on your investment when you invest in stocks. However, if you reinvest your dividends to buy more stocks in a company, you’ll own a bigger portion of the company and receive bigger returns over time.
As you can see, there are pros and cons to both real estate investing and stock investing. Which is better is anyone’s guess. If you’re thinking of investing in something, make sure you do your homework to find out which type of investing will suit your life and your goals best.
Remodeling your bathroom increases the value of your home while enhancing your lifestyle. Unfortunately, a bathroom remodel can be quite challenging, which is why many homeowners shy away from the task. The good news is, remodeling your bathroom doesn’t have to be a challenge, especially if you take the time to plan it out and you anticipate potential issues that could arise. Below are several ideas on how to remodel your bathroom.
1. Your Budget
Before jumping into a bathroom remodel, you should have some idea of the amount of money you want to spend. This budget should include a buffer that allows for unseen circumstances should they arise. For example, you may discover that the pipes need replacing or that you must hire someone to remove asbestos from behind your walls. Staying within a budget that includes extra for anything that pops up really lowers stress levels and keeps the project on track.
2. Hire A Professional Or DIY?
If you’re the handy type, you may be able to do most, if not all, of a bathroom remodel yourself. Going the DIY route saves a lot of money, for sure, but if you run into something you aren’t sure about, it’s best to hire a contractor. If you don’t think you’ll be able to complete the project yourself, it’s best to hire a professional from the start to avoid costly mistakes.
3. Supervise The Dismantle
As the contractor tears out all the old flooring, walls, and fixtures, supervise the process to ensure there are no surprises. A good contractor will catch underlying damage and suggest a replacement, but you should keep a close eye on what they unearth as they dismantle your bathroom, so you don’t have to spend any extra money later fixing something that should have been done during the remodel.
4. Add A Personal Touch
Even though a contractor may be doing all the work, you can help by suggesting little touches that reflect your personality. For instance, when it comes to tiling your new shower, be sure to choose accent tiles that you really like, regardless of the going trends in home remodeling at the time.
5. Custom Lighting
Many homeowners don’t realize the importance of proper lighting in the bathroom. It’s not until a bathroom remodel is complete that they realize something isn’t right because the lighting is too bright or isn’t bright enough.
You’ll be spending a lot of time in your new bathroom, so make sure you get the lighting right. Choose soft lighting that contributes to a welcoming atmosphere, but also make sure to include ample lighting where you need it, like over and around the mirror.
Don’t let remodeling your bathroom intimidate you. If you wish for a new bathroom, use the ideas above to help you make it happen. By planning ahead, a bathroom remodel can go smoothly, and by adding your personal touches, you’ll soon have a bathroom that’s unique and exactly what you wished for.
Not everyone loves cleaning the house but having a handy cleaning kit can make the job easier.
The list below outlines six of the most important items you need in your cleaning kit to get great results every time you clean.
1. All-Purpose Cleaner
If you only have one cleaning product in your cleaning kit, make sure it’s an all-purpose cleaner. The name says it all.
All-purpose cleaners work great on a variety of surfaces, so you can take them room to room to tackle a wide range of jobs. They work especially well in the kitchen and bathroom as they often contain germ-fighting ingredients that sanitize surfaces as they clean.
2. Glass Cleaner
Shiny surfaces such as windows, mirrors, shower doors, and faucets require a special kind of clean – one that doesn’t leave streaks. Glass cleaner is the perfect product for these surfaces as it leaves behind a shiny finish. Be sure you choose a good brand of glass cleaner, though, as cheaper brands tend to leave streaks behind.
3. Furniture Polish
Dusting is a dirty job, but someone has to do it. Make sure your home cleaning kit contains furniture polish and a soft dusting cloth so you can clean all your furnishings quickly and easily. Don’t forget to dust your wooden furniture, any shelving in the room, and all of the end tables to really make the space feel clean and fresh.
4. Rubber Gloves
Household cleaners are full of nasty things that can, at the very least, dry out your skin. At worst, they can cause allergic reactions or illness. It’s always a good idea to wear rubber gloves when working with any cleaning solutions. Besides protecting your hands from harsh chemicals, the gloves will also keep all that dirt, grime, and who-knows-what-else from coming into contact with your skin.
5. Paper Towel
Paper towel comes in handy for a lot of different cleaning jobs, but it is especially useful when cleaning glass surfaces. Paper towel not only dries the surface as you wipe, but it also removes any smears and/or streaks as well. An alternative to using paper towel if you’re an avid newspaper reader is crumpled-up newspaper.
Newspaper works as well as, if not better than, paper towel to clean windows and mirrors, so be sure to repurpose your papers after reading them for a greener alternative.
6. Cleaning Wipes
Often considered a shortcut, cleaning wipes are nice when you don’t have a lot of time to do a deep-down clean. Since most contain anti-bacterial ingredients, they work well in bathrooms and kitchens for wiping down surfaces quickly. Keep a container of cleaning wipes handy in your kit and do a quick swipe when unexpected guests are knocking at your door.
Cleaning the house can be an arduous chore. With the right cleaning supplies, however, it is much easier and faster. Put together a home cleaning kit for your house that includes the six important items listed above for a convenient way to get the job done.
Homeowner’s insurance is something most people agree is a necessity. Having said that, many homeowners fail to read and understand their policy and often have no real idea what is covered and what is not. Having adequate homeowner’s insurance does more than protect your home in the event of physical damage or theft. It gives you peace of mind. Should something unfortunate happen, the last thing you want to worry about is money. Use these five homeowner insurance tips to help you get a policy that suits your needs and your wallet perfectly.
1. Make it a point to know what your policy covers.
If you don’t know what your homeowner’s insurance policy covers, make it a point to find out. Don’t wait until something bad happens and then hope it’s covered. Basic policies cover things like fire and storm damage, vandalism and theft. It also provides liability coverage in the event that someone gets hurt while visiting your property. Should you get temporarily misplaced from your home for some reason, your homeowner’s insurance policy pays shelter costs so you don’t have to pay outrageous hotel bills until you can get back home.
Homeowner’s insurance policies also cover things outside your home, too. For instance, if an airline loses your laptop, or something is stolen from your vehicle, your homeowner’s insurance will likely cover these items.
2. Understand what the policy doesn’t cover.
While your homeowner’s insurance policy covers a lot of things, it does not cover some rather important things at the same time. Not understanding what your policy doesn’t cover can cause great financial loss should anything such as earth movement (earthquake, landslide, sinkhole), war, power failure, government action, nuclear damage, faulty repair or bad workmanship, flooding*, or bad zoning occur and your policy doesn’t provide adequate protection.
*Flooding and water damage can be questionable. Standard homeowner’s insurance policies cover water damage caused by water falling from above. For instance, a leaky or burst water pipe or rainfall damage is covered, whereas ground flooding or sewer backup is not. If you live in an area that is prone to flooding, you must purchase supplemental coverage in order to be covered in the event your home is damaged by flooding.
3. Shop around.
When deciding on a homeowner’s insurance policy, it pays to not only shp for the best price, but also for the best service. Of course you want to pay as little as possible for your policy, but dealing with an agent who is empathetic and friendly makes a bad situation a little less terrible. Be sure to check reviews online of the company and agent you plan to do business with, or ask friends and/or family members for recommendations.
4. Keep records of everything.
Many a claim against a homeowner’s insurance policy gets denied because the holder fails to provide adequate documentation. In the event of damage or loss, you must document everything that takes place. Write down dates, times and names of people you talk to who have anything to do with the process. Keep every receipt, estimate contract and appraisal in a safe, secure location. If you don’t have a safe to keep paper documents, consider using a digital service such as Dropbox.
5. Don’t wait to file a claim.
Many homeowner’s insurance policies have time limitations in which to file claims, especially when waiting could potentially make damage worse. For example, if you notice water damage from a leaky pipe, make a claim right away so it can be fixed. If you wait too long, a small bit of water damage will get worse, resulting in mold and mildew. Your insurance company could decide you waited too long and refuse to pay for the repairs.
Investing in real estate requires you have plenty of available cash. The average mortgage lenders prefer borrowers to have 20 percent down, which can quickly deplete your financial resources, especially if you buy multiple properties. It can take years to save up enough to buy again.
If you currently invest in real estate this way, that’s great. The reality is, however, that most investors rarely have that kind of cash for a down payment. In fact, the most successful investors are extremely creative when it comes to financing their deals. You can buy an investment property with very little cash on hand, and below are five ways to buy your first investment property for cheap.
Seller Financing
Seller financing is one of the most popular ways for someone to buy investment property. Essentially, as the name suggests, the seller provides the financing and sets the terms of the deal. In most cases, an investor needs little to no money down in order to obtain ownership of the property in a seller-financed deal. This option is especially beneficial for investors with less-than-perfect credit or those who lack enough capital for a traditional down payment.
Wholesaling
Wholesaling is another way investors make a profit in the real estate market. In this venture, the real estate investor never really owns the property, but instead, contracts with the seller to find a buyer. Once the investor finds a buyer, he then signs the contract over to them and collects his profit, which is the difference between the seller’s contracted price and what the buyer actually pays.
Equity Joint Venture
This is one of the best ways to own investment property without having to put a lot of money down. In an equity joint venture, two or more parties contribute funds to make the down payment. Percentage of ownership depends on the number of parties involved, but each shares gains and losses according to his or her percentage.
Private Loan
Of all the strategies for buying investment property for cheap, this one is the most beneficial. A private loan is a loan between a private lender and the investor. Terms of the loan are much more negotiable than traditional bank loans, and you often have the option of negotiating a no-payment period for up to one year, which allows you to make repairs and get the property ready for occupancy before making any payments.
Home Equity Line Of Credit
If you have equity in the home you live in, you can purchase an investment property using that equity. This type of loan typically carries a very low interest rate and payments are usually low as well since they are interest-only payments.
Many investors use this strategy to buy investment properties by obtaining a line of credit on a property that’s already paid off. Banks like this type of loan because they are usually first mortgages. The best way to utilize a home equity line of credit is to purchase and repair the rental property, and then refinance it with a more permanent type of loan.
There are many ways to buy your first investment property for cheap. If your dream is to own investment property, don’t disqualify yourself just because you don’t have enough capital for a 20-percent down payment. Consider the options above to make your dream a reality.
How exciting and fun would it be to be the first person to ever live in your home? That’s one of the main reasons people choose new construction homes over older, less expensive homes. If you’re thinking a new construction home is right for you, take a minute to read through the four facts below. You may discover a thing or two you didn’t already know.
1. You May Not Find New Constructions In The MLS
The average seller typically has an agent who lists their home with the local MLS. Builders of new construction homes, however, want more control and save money, so they usually have their own salespeople right on site. For buyers, this means new homes won’t show in their agent’s MLS search.
If you’ve got an agent and you’re interested in purchasing a new construction home, be sure they explore every avenue, so you find all the new homes available in a given area.
2. New Homes Often Sell Before They’re Built
Individual new home constructions are often a part of a community or subdivision. This means there will likely be many homes similar to each other in size and design before the project is complete. In the beginning, the builder will get the financing and selling procedures lined up and begin selling the homes, often before they are even built. They will build model homes for buyers to look at and get a feel for what their homes would be like.
If you decide you’re ready to move forward with the purchase of a new construction home, you’ll likely need to put a deposit down that could be as much as 10 percent of the purchase price.
3. First Buyers Get The Best Deals
Because it’s important at the beginning of a project to get a few homes under contract, builders will often be more willing to negotiate a lower asking price than later on in the project. Getting several houses under contract looks good to the bank financing the project as well.
Being a first buyer, however, does come with some risk. Once you contract for a new home, you’re committed to the project. Should something happen that forces you to back out or should sales stall for some reason, you could lose your deposit.
4. You May Be Able To Negotiate Upgrades
If you’re interested in buying a new construction home in a project that’s nearing the end of its sales cycle, it’s more difficult to negotiate a lower purchase price. However, you may be able to get discounts in the form of upgrades instead. Don’t be afraid to ask for hardwood floors instead of carpeting or higher-end appliances to get more bang for your buck. For many homebuyers, new construction homes could be the right choice.
Most people browse online when looking for a new home to buy. If the photos of your home posted online aren’t of good quality or they don’t depict your home in a positive light, buyers won’t give it a second glance. To help you make your home look its best, use the staging tips below and watch it sell fast.
The Furniture
How your home is furnished makes a big difference in how buyers perceive it. If your furniture is old and drab, that’s how they will see the home. The good news is you don’t have to rush out and purchase all new furniture just to sell your home. Instead, there are firms you can hire to bring in modern furnishings to make your home look bright, fresh, and clean.
The Floors
It’s important the floors in your home look as clean and shiny as possible. If your floors are worn in spots, you can cover it with rugs. If the flooring is badly worn or stained, it might make more sense to replace it. You can buy cheap flooring that might not necessarily be to your liking, but if it helps your home sell, it’s worth it.
Wall Décor
Take some time to update your wall décor. Bright, bold artwork looks best, but you don’t need to spend a great deal of money to acquire it. Simply visit your local thrift store and pick out a few artsy pieces to hang on the walls while your house is on the market.
Clutter
It is vital that you get rid of anything that might be viewed as clutter. All those knick-knacks you’re so fond of are just clutter to the next person. If your closets are jammed full of stuff, clean them out and place everything you don’t need in storage until the home sells. If your rooms are full of wall-to-wall furniture, remove all but the most important pieces to allow buyers to see the potential for the space.
The Outside of Your Home
Curb appeal is most important as it’s the first impression a buyer gets when he arrives at your home. Tidy up the yard, cut the grass, trim the bushes, and paint the front door to put the outside of your home in the best shape possible. Remember, you never get a second chance to make a good first impression.
If you are selling your home, how it appears to others in person and online in photos makes the difference between it selling fast or it sitting on the market for weeks or even months. Take the time to stage your home right so it sells as quickly as possible.
As a landlord, you have an obligation to maintain and contribute to the upkeep of your investment property. Did you know that you also have another obligation – one that many landlords fail to realize? You also have an obligation to invest in the neighborhood that surrounds your real estate investment. Since the community around your property has a lot to do with its value, it pays to put in some effort to ensure it’s a thriving one. Here are five ways you can invest in the surrounding neighborhood.
1. Do Your Part To Support Neighborhood Watch Programs
Whether you’re a local landlord or one that lives in a different state than your investment property, you can still support the local neighborhood watch programs that work to keep your tenants safe. You can encourage your tenants to become active members, and contribute physically (if you can) and financially to the cause.
2. Sponsor Local Youth Programs
If you have long-term goals as a landlord, you need to do your part to support the youth in the surrounding community. Look for local boy and/or girl scout troops to donate financially to or contribute to an after-school program in the area. The benefits of supporting and encouraging today’s youth go far beyond increasing the value of your investment.
3. Take To Social Media
You don’t need to spend hours upon hours tweeting on Twitter or posting on Facebook, but every once in a while, it’s nice to share good news about the community with the people who care. As a landlord, it’s your job to encourage your neighbors and share the news that affects them most.
4. Take Care Of Your Front Yard
How your property looks to others is almost as important as the amenities you offer inside. When your front yard is well-manicured, it shows your tenants and your neighbors that you care as well as increases the security of the property. If you don’t have the time it takes to maintain the curb appeal of your rental property, it’s a wise and financially sound decision to hire a professional for the job.
5. Don’t Ignore Neglect
If you notice obvious signs of neglect in the surrounding neighborhood, don’t ignore it. Speak up and let the right people know about it. Even if it’s just a burnt-out street light or an overgrown lawn, make sure it’s taken care of so the rest of the neighborhood doesn’t follow suit.
When you own an investment property, your obligation doesn’t end at the curb. The surrounding neighborhood plays a big role in the value of your property, so it’s also your obligation to put effort forth to encourage and foster its growth. Use the tips above to build equity by investing in the community surrounding your property.
Each color has the ability to generate either positive or negative feelings. It’s important then, to choose a color that not only enhances the appearance of your home but also evokes positive emotions.
Many homeowners feel that painting the walls a neutral color is the answer. While it does enable the buyer to easily envision his belongings in your home, neutral colors can be boring, especially when the buyer has already seen several houses all painted in shades of neutral. Primary and secondary colors also make great wall colors, too.
What Do Primary Colors Say?
Reds
Although the color red is a strong color with a reputation for boosting self-confidence, it can be overwhelming for homebuyers. Often used in restaurants to stimulate appetite, red used in a home can be over-stimulating and agitating.
Pink, on the other hand, is a nice choice since it is soothing and promotes understanding. However, as pink is considered a feminine color, it could be off-putting to male buyers.
Blues
Almost every shade of blue instills a positive impression. Dark blues are thoughtful and promote concentration, while lighter blues bring about tranquility. Aqua blues are also a good choice since they also help with deep thinking.
Yellows
Yellow is a great color because it boosts brain function, stimulates intelligence, and enhances focus. Brighter shades, however, may distract and overwhelm homebuyers, especially if they are used on large walls.
How Do Homebuyers Perceive Secondary Colors?
Oranges
Orange is a positive color as its cheerful nature is associated with celebration and youth. It instills confidence and creativity. Although orange is a great color choice, it can be a distraction if used too much throughout the home.
Purples
Add an elite vibe to your home by painting the walls purple. Darker shades are often associated with royalty or celebrities, while softer shades such as lavender foster humanity and encourages connectivity.
Greens
Shades of green tend to evoke feelings of wealth. Whether it’s wealth of well-being or money, darker shades of green give the impression of stability, good health, and rejuvenation. Shy away from bright greens, however, as too much isn’t always a good thing.
As a final note, it’s always a good idea to paint your home’s walls when selling to get rid of any scratches and nicks that make them look shabby. A fresh coat of paint, no matter the color, always gives a fresh, new life to old walls and, barring any off-the-wall color choices, promotes a positive first impression for prospective buyers.
Selling a home is a many-faceted process that can be confusing at the best of times. It’s common for homeowners to make mistakes because they aren’t sure of or aren’t aware of important steps that could end up costing them a lot of money in the deal.
If you’re selling your home, pay close attention to the four mistakes to avoid below so you don’t end up with the short end of the stick.
1. Asking The Wrong Price For Your House
It can be difficult knowing what price to set for your home. Several factors go into the price including the appraisal, the current market, and more. To ensure you’re setting a fair price for your home, it’s important to do a little homework to find out what similar homes in the area are selling for. This information, along with your home’s appraisal will help you set an asking price that will attract potential buyers and get you the most money for your home.
2. Not Taking Advantage Of Social Media Marketing
If you think a simple sign in your front yard is enough to sell your home, you’re sadly mistaken. You never know who is moving to your area from somewhere else in the world, so your marketing scheme needs to span wider than just your local market.
Use social media to post your house for sale. Be sure to include high-quality photos that illustrate your home at its best. Outdoor pictures should feature a well-kempt yard and landscaping, while the indoor shots need to highlight the best things about the house.
For example, if your home has a lot of natural lighting, daytime pictures are a must. Avoid posting photos of untidy or cluttered spaces. To that end, it’s best to de-clutter and clean before even putting your house on the market.
3. Not Making Much-Needed Repairs
Nothing turns buyers off more than walking into a house in need of obvious repair. Unless a buyer is looking for a fixer-upper (most aren’t), it’s best to make sure all maintenance and repairs are done before ever showing the house.
Put a fresh coat of paint on the walls if they are peeling or stained. Clean out the gutters and have the roof repaired, if need be. Anything you can do to improve the appearance of the home will greatly improve your chances of selling it faster and for a much higher price.
4. Not Being Hospitable To Potential Buyers
The more hospitable you are to potential buyers, the more likely they will be to strike a deal on your home. It’s called common courtesy, and everyone that enters your home deserves it.
Welcome homebuyers to your home and provide cold drinks and snacks. Avoid following them as they walk through your home as it makes most people uncomfortable. Give them plenty of time to look at the house on their own, and when they are finished, be sure to thank them for looking.
Selling a house can be exhausting work and many homeowners make mistakes that could cost them dearly. Follow the tips above to avoid making some of the more common mistakes when selling your own home.
There is no rule that says you have to be a certain age to buy multiple properties, but if you’re a parent, the ideal age is in your 50’s. By then, your kids are grown and likely out of the house. You have more time to devote to another home and probably some disposable income, too.
Important Questions to Ask Yourself
Before you contact your real estate agent, ask yourself these important questions.
Am I ready to commit?
If you’re buying a vacation home, will you like vacationing in the same place 5 or 10 years from now? If you’re buying an investment property, are you up for the responsibility of being a landlord?
What are my financial obligations?
Just because you have the extra money doesn’t mean you should spend it. Think about how buying a second property will impact you financially. What does it mean at tax time? How much money will you need to maintain it? What about monthly bills like utilities? If it’s a rental property, will it generate enough money to make it worthwhile? If it’s a vacation home, will you be able to use it enough to justify buying it?
Do I have enough money upfront?
Buying a second home is expensive. You’ll need at least 25 percent upfront to cover the down payment and closing costs. Can your bank account handle that kind of deduction? What about emergency expenses? Will there be enough left to cover any emergencies that may arise?
What is my exit strategy?
If you decide that owning a second home isn’t for you, what is your exit plan? Can you rent it out or sell it quickly to recoup your money? It’s always a good idea to have an “out” should something happen, or you simply decide that owning a second home isn’t for you.
Buying a second home is a big undertaking that’s not right for everyone. If you’re in a position to buy and are thinking you might want a second home for vacation purposes or investment purposes, be sure you ask yourself the questions listed above first. Really exploring the answers will help you figure out if you’re ready to buy a second home or not.
1. You Could Lose the Mortgage Rate Your Bank Quoted
Mortgage lenders will “lock in” an interest rate at the beginning of the mortgage process. This lock usually only lasts a specific number of days. Once the lock expires, the bank is free to change your quoted interest rate to whatever it is at the time – be it higher or lower than what you were originally quoted.
Many things can cause a delay in closing. From improper renovations to missing permits, your closing date could be delayed indefinitely while the issues are resolved. Don’t be surprised if something comes up that pushes your closing day back and you lose your locked-in interest rate. It’s all part of the home-buying game.
2. Don’t Assume You’re Good to Go Once You’re Approved
Many homebuyers think that once they’ve been approved for a loan, they are good to go. The reality is, many lenders will continue to check your credit, verify your employment, and double check your assets right up until the very end of the mortgage process. This means if you make any changes to your financial status – apply for a credit card, buy a car, or change jobs – it could have a negative impact on your approval for buying a home. Wait until you hold the keys to your new home before making any changes to your financial status.
3. Take Advantage of the Walk-Through
In some places, the walk-through is simply a formality, while in others, it’s a big deal. Many real estate contracts allow for a walk-through and you should definitely take advantage of it.
While most sellers will do what they have to to sell their homes quickly, others will try to get away with not doing what’s expected. A walk-through the day before closing gives you a chance to make sure everything is working properly and that the sellers have done everything they were supposed to. If you notice a major system isn’t working, or repairs haven’t been made, you can delay the closing until the issues are fixed.
4. Be Prepared to do Your Homework
In many states, it’s the seller’s responsibility to make sure any issues are resolved before closing. In some states, however, it’s the buyer’s responsibility to make sure the seller has dealt with any outstanding building permits, taken care of any issues with the local health department, assessor, or building departments, and cleared all liens from the title report. If you live in a state that puts this responsibility on you as the buyer, be prepared to do your homework and stay on top of the seller to remedy any outstanding problems with the property.
When you’ve found your dream home and are waiting for closing day, it can seem to take forever. As you wait, be sure you keep the above things in mind.
The home inspection is an important part of the home buying process because it lets the buyer know if there are any undisclosed problems with the home they’re buying. Should the inspection turn up any underlying issues, the buyer can usually walk away from the deal with his earnest money intact.
Below, we explore several helpful tips to make the home inspection process easy.
Get the Most Out of the Home Inspection
In most cases, a home inspection isn’t required, but having one done protects you (the buyer) from purchasing a home with underlying, expensive issues that’ll be your responsibility to fix after you sign on the dotted line. Here are a few tips to help you get the most out of your home inspection.
Be present – you aren’t required to be at the home inspection but being there when it takes place lets you see the issues for yourself.
Prepare yourself – bring a blank checklist and write down any questions you may have to ask the inspector once the inspection is complete.
Review seller disclosures – take some time to look at any disclosures the sellers have made. Ask the inspector to pay special attention to these areas. If the home is a foreclosure, there likely won’t be any disclosures.
Don’t interrupt the inspector – Allow the inspector to do his job. Reserve questions until after the inspection is complete.
Ask questions – after the inspection is finished, ask any questions you may have before the inspector leaves. Have the inspector point out any major issues so you can see them for yourself.
A Personal Home Inspection Checklist
Having your own checklist of things to look at during the inspection will help address any concerns you may have. You can pass these concerns on to the inspector so he can pay special attention to these areas.
Inside
Water damage – Look for evidence of water leaks or damage. Stains, bubbling, cracks, etc. in walls, ceilings, cabinets, attic, basement, below windows, etc.
Appliances and major systems – make sure everything works
Signs of age – old wiring, old windows, few outlets, cast iron plumbing
Outside
Roof – look for damage or stains. How old is the roof? How soon will it need to be replaced?
Water damage – foundation damage, mold, mildew, rot
Foundation – cracks, raised foundation/walls, trees near the home (roots cause damage you can’t see)
The Cost of a Home Inspection
Because the home inspection is designed to protect the buyer, the buyer is responsible for the cost of the inspection. With that said, you can expect to pay between $300 and $500 for the inspection depending on the location of the home and its size and condition.
If you suspect anything like pest infestation, you’ll need a specialty inspection, which will cost extra. Specialty inspections aren’t usually included in a pre-sale visual home inspection.
Don’t let the cost deter you from getting a specialty inspection if you suspect something is wrong with the property. The last thing you want to do is end up with a home that needs major work before you can even move in.
The home inspection is an important, straightforward part of the homebuying process. Keep the above tips in mind as you prepare for your home’s inspection.
As a landlord, you already understand the delicate balance between charging too much for rent and not charging enough. You want to make sure the monthly rent covers the mortgage payment plus expenses, while still giving you a positive cash flow every month.
The problem is, however, charging too much can cause your rental to sit vacant for weeks – and sometimes even months – before someone is willing to pay what you want, and charging too little means you earn less of a profit.
How do you know how much rent is appropriate? Follow the tips below to figure out how to set the correct rent prices for your rental properties.
Research Listings
This may sound like common sense, but you’d be surprised by the number of landlords not willing to put the time and effort in to do this important step. While it may be time consuming, knowing what other landlords are asking for rent in a given area goes a long way to letting you know what you should charge.
You can take it upon yourself to research listings yourself, or you can incorporate specialized sites to do it for you.
Ask Someone Who Knows
Anytime you want to know something, it’s always best to talk to someone who’s “been there, done that.” Experience breeds success, so talk to others who have prior experience setting rent prices.
Fellow landlords are a great place to start. Try to find ones that have similar properties as your own (same number of bedrooms, similar square footage, etc.). Watch out for the landlord that hasn’t raised rent in several years, though.
Real estate agents are another great source for rent pricing knowledge. Not all agents are created equal, though, so be sure to speak only with those who have experience working with rental properties.
You can find a host of real estate professionals by joining associations that cater to such groups. Landlord clubs, real estate investment clubs, and rental housing associations are all great sources of knowledgeable people who can help you figure out what price to set for rent.
Compare Actual Rent Prices In A Given Area
The majority of the listings found online and in newspapers give rent prices the landlord hopes to receive, not what he or she actually receives when a tenant agrees to a lease. It can take some time to gather actual rent prices in any given area, but it’s worth the time to get accurate prices so you know if yours meets the standard.
If you want to set the correct rent for your rental properties, you have to take the time to do your homework. The more you understand about the other rental properties in your area, the more able you will be in setting a price that generates you a profit while making your tenants happy. Use the information above to figure out how to set the correct rent price for your rental properties.
On average, we spend about 90 percent of our time indoors, and thanks to COVID-19, it’s likely even more for some people. Now that you know that, it’s also important to know that many studies suggest that you can improve your physical and mental wellbeing by bringing the outdoors in.
Your home should be a place to collect your thoughts and refresh your mind and body. As such, bringing Mother Nature into your home is a great way to make your indoor space into a sanctuary. Here are several ideas that will help you bring nature into your home.
1. Build Around A Tree
The idea isn’t new, but it is timeless. If you’re building your dream home, try building it around a large tree to instantly bring the beauty and ambiance of nature indoors.
2. Kitchen Herb Garden
To bring nature into your kitchen, plant an herb garden along a wall or two. Hanging flower boxes make for the perfect garden setting, and when stuffed with fresh growing herbs like thyme, rosemary, mint, parsley, basil, and tarragon, you might be inspired to release your inner chef.
3. Build A Greenhouse
Greenhouses aren’t just for commercial growers. You can build one in your home or in your yard where fresh fruits and vegetables abound and beautiful flowers spring forth. There’s nothing quite like harvesting home-grown veggies in the summer and cutting fresh flowers for the table in the winter.
4. Choose Rustic Finishes
Rustic touches such as a natural wood countertop or a wood paneled accent wall can transform a room from cold and uninviting to warm and welcoming in an instant.
5. Bring In A Houseplant Or Two
Even if you don’t have a green thumb, there are many varieties of houseplants that can thrive in an indoor environment with little care. Spider plants, for example, require little care but will add a lovely natural touch to the space and will improve air quality, too.
6. Choose Earthy Colors
Earth tones such as shades of gray, green, and blue bring a sense of nature into the home, lending a soothing vibe to any room.
7. Use Raw Wood Accents
Raw wood accents such as reclaimed barn wood beams, trim, and cabinetry can give a room a warm atmosphere that’s both rustic and beautiful. Most people marvel at the effect old barn wood has as a décor accent in a country home.
8. Use Natural Fibers
Adding natural fibers to a room is an easy way to bring the outdoors in. Wicker furniture, woven sea grass rugs, faux fur, etc. are all nature-inspired fibers that instill a sense of the great outdoors inside your home.
9. Incorporate A Water Feature
The sound of running water works wonders to soothe and relax. Try adding a desktop fountain or, if possible, build an actual babbling brook right through the center of your home.
10. Nature-inspired Art
Another easy and effective way to bring the beauty of nature into your home is to hang nature-inspired artwork on the walls. From a simple sunset landscape to wildlife shots and nature scenes, you are only limited by your own imagination.
There’s never been a better time to invest in real estate. People are increasing their incomes by buying up and renting out investment properties all over the globe. Before you can take advantage of real estate investing, however, it’s critical to understand how these properties are valued. Below are four ways to value investment properties.
Sales Comparison Approach
The sales comparison approach (SCA) is simply an estimated comparison of similar residential properties that have sold or rented out in a given area over a particular amount of time. This method is one of the most commonly used methods for valuing real estate.
As an example, if a 2,000-square foot property rents for one dollar/square foot, it’s safe to say that an investor can expect the same return on his investment when he purchases a similar property in that area at that time. Of course, every home has features that make it unique and sometimes hard to quantify, so the SCA is really just a generic measurement and shouldn’t be relied upon as fact.
Capital Asset Pricing Method
The capital asset pricing method (CAPM) takes into consideration the risks associated with investing in real estate. This method helps you decide if it’s worth taking the risk to rent a particular piece of real estate.
When figuring the CAPM, the potential return on investment (taken from the rental income) is compared to other risk-free investments such as real estate investment trusts. If the expected risk-free investment return is more than the expected return on investment from the rental income, it just doesn’t make sense to take the risk on that property.
Income Approach
Used commonly for commercial real estate investing, the income approach details what the potential income of a rental property is in relation to what the initial investment is. Using the annual capitalization rate, the income approach divides the projected yearly income from the rental income by the current value of the property.
For example, if a commercial rental property costs $120,000, and the expected monthly rent is $1200, the expected annual capitalization rate is 12 percent.
The downside to this calculation is that it only takes into consideration one year’s worth of income, and it does not include any additional expenses such as mortgage interest and the like.
Cost Approach
The cost approach is typically used to place a value on vacant land. This method tells investors that an investment is only worth what it can reasonably be used for. It is determined by adding the land value and the depreciated value of any improvements.
A good example of the cost approach is if you are an apartment developer looking for land to build condos on. If the land you want to purchase is surrounded by oil fields, and the closest residents live 20 miles away, it makes more sense to not use the land for condominiums, but instead, to use it to expand drilling rights to find more oil. The value of the land is based on its best use.
Real estate investing is a great way to fund a better lifestyle or save for retirement. Understanding how investment properties are valued is the first step in getting your feet wet as an investor.
To help you find a buyer for your home quickly, use the four tips on how to sell your home fast listed here.
1. Be Reasonable about the Price from the Beginning
Whether it’s to make a profit or the outstanding balance is more than the property is worth, many sellers think starting high and then lowering the asking price later if it doesn’t sell is a smart thing to do. The reality is, this tactic can result in the house sitting on the market for longer because buyers and agents just don’t think you’re serious about selling. If you have time to wait, by all means, start high and see what happens. However, if you need to sell your house now, set a reasonable price from the beginning, and there’s a good chance you’ll sell within the first 30 days.
2. Up Your Home’s Curb Appeal
First impressions are everything, and prospective buyers form a strong opinion about your home the moment they pull into the driveway. Take the time to update landscaping and take care of any repairs to the outside of the home that will make it look better. What buyers see on the outside sets their expectations for what they will see on the inside.
3. Give Your Home A Modern Makeover
Your home may be lovely and well-kept, but if its décor is outdated, it will deter buyers. You can update your home’s interior cheaply and easily by updating fixtures and giving the walls a fresh coat of paint. Your goal is to make your home stand up against the market’s current conditions and what’s in style at the moment.
4. Give Buyers A Chance To Imagine
When a prospective buyer walks into your home, you want them to be able to picture themselves in it. In order for this to happen, you have to remove as much of yourself from it as possible. Take down family photos and remove any religious items. Give it a good deep cleaning (carpets, windows, etc.) or hire a cleaning company to do it for you. Lastly, get rid of as much of the clutter as possible to make rooms look and feel bigger. This may require you to rent a storage unit to keep your belongings in while your home is on the market.
Bonus: Be Courteous and Accommodating
People looking to buy a home aren’t all on the same schedule. If you aren’t accommodating, you could be missing out on the perfect buyer for your home. Be prepared to show your house in the early morning or later in the evening, and always leave when someone is looking at your home so they can openly discuss their feelings about it without feeling like intruders.
Many homeowners put their homes on the market with the hopes that the property will sell quickly. For many, this doesn’t happen. To help you find a buyer for your home quickly, use the four tips on how to sell your home fast listed above.
A well-kept contemporary home showcases a sophisticated lifestyle, refined tastes, and high social standing. Even if your home isn’t modern and high-end, you can give it an air of contemporary design by following a few décor tips many professional interior decorators use. Adding these touches to your house will perk up its boring ambiance and make it a more comfortable and inviting space to come home to.
1. Arranging And Decorating The Living Room
Since the living room is usually where family and guests hang out, it should convey a welcoming atmosphere. If the TV is the focus of your living room, be sure to surround it with plenty of elegant, comfortable furniture. Use end tables and/or a coffee table to provide plenty of space for drinks, making sure each table is proportionate to the furniture it sits beside.
2. Choosing Wall Colors
Wall colors inside your home should invoke positive feelings. Avoid choosing colors based on how they look in the store, but rather how the swatches look in your own home. It’s always good to remember that lighter colors should be used over the majority of a room, while darker colors should be used to accent one wall or special areas of interest.
3. Adding Curtains For Emphasis
Curtains aren’t just for covering the windows. When chosen correctly, they can really jazz up the appearance in any room. Choose matching curtains or drapes for subtle décor or opt instead for coordinating colors or patterns for a dramatic effect that draws the eye and wows the viewer.
4. Flooring
Today’s home improvement stores carry so many flooring options it can be hard to choose. While this may sound overwhelming, it can be fun browsing the options to find a suitable floor for your home. The only rule of thumb here is to choose something that enhances the beauty of the room’s décor while being easy to care for in the long-term.
5. Adding Plants And Flowers
Green plants have a calming effect on the senses, making the room feel more comfortable and relaxing. You can add an array of green plants to your home to enhance its appeal and increase its comfort quotient.
Alternately, flowers also add to the appeal in any room. While fresh flowers are nice, artificial ones last longer. The only thing you must remember is to clean them periodically, so they stay looking good.
6. Hang Contemporary Art
Whether you’re an art lover or not, hanging pieces of contemporary art is a great way to add a contemporary flair to any room. If you’re an artist yourself, don’t be afraid to hang some of your own framed work on the walls, too.
7. Decorate Your Ceiling Fans
While ceiling fans add some sense of style to the rooms in your home, they can be somewhat boring. Up the ante, by decorating the blades of your ceiling fans to coordinate with the rooms they hang in.
Using fabric and some Mod Podge or a matching color of paint, cover the blades, allow them to dry, and enjoy the oohs and aahs you get when guests stop by.
You don’t have to have a lot of money to make it look like you live in a modern house. Using one or all of the tips above, you can add a contemporary touch to any room in your home and make your home look more appealing to family and guests.
Sure, slippers were invented for a reason, but once you’ve lived in a home with heated floors, you’ll throw every single pair you own in the trash.
Heated floors are more than just a luxury. They are energy-efficient and help lower your heating bills in the winter. While the initial expense might sound like a lot, heated floors pay for themselves via your energy savings in a very short time.
2. Dimmer Switches
Installing dimmer switches in your home is probably the cheapest upgrade on this list. However, don’t underestimate the impact it will have. You’ll be surprised at how much changing the lighting in a room can change the ambiance instantly. If you hate how harsh your overhead lighting is, try installing a dimmer switch and see how warm and cozy the room becomes.
3. A Mudroom
Having a functional mudroom is something that many people overlook. This room is especially helpful when it’s situated between the house and the garage. A mudroom is meant to get a little messy, so whether someone is coming home from the gym, coming in from the garden, or shoveling snow, the mudroom catches all the dirt and mess before it enters your home.
4. A Finished Basement
If the basement in your home is unfinished, it may seem like the only thing it’s good for is storage. Give the space a little TLC, however, and it’ll change the way you live in your home forever.
A finished basement gives everyone extra space to live the way they want. If you add separate rooms down there, it’ll open up even more possibilities for its use.
5. Upper-Level Laundry
Sure, having a dedicated laundry room is nice, but having one on the second floor right outside the bedrooms? Priceless!
Doing laundry is so much easier since there’s no need to lug heavy loads of laundry up and down the stairs.
6. Double Sinks in the Bathroom
Once you’ve experienced the convenience of a double sink, you’ll never be able to go back to a single again. Having a double sink in the bathroom makes sharing the space with a partner or roommate tolerable, especially when it comes to coordinating spit and rinse cycles while brushing. If you have the space, installing a double sink in your master bath is definitely worth considering.
Many smart homeowners make upgrades to their homes. Unfortunately, not all upgrades are worth the time or expense you put in. Avoid luxury upgrades that require a lot of maintenance (like the hot tub) and instead, focus on projects like the ones mentioned above that are totally worth the consideration.
Painted floors are hardly a new concept, but in today’s modern home design, they can lend warmth, charm, and a rustic touch that fits any budget. If you’re the DIY type and are considering painting your floors, here are a few things to think about before you begin.
1. Do You Have Time And Money To Prepare The Floor Professionally?
When you hear of a painted floor that didn’t last, likely, it wasn’t prepared properly in the beginning. Preparing the floor correctly is the key to getting a painted floor to last a long time. If you don’t know how to prepare the floor correctly, hiring a professional to do it will greatly improve the chances that your floor will last. Even if your budget doesn’t allow for an entire professionally completed project, consider hiring a professional for the preparation part to ensure a good result.
2. Do You Have A Historical Home?
If you own a historical home with original flooring, keeping it as-is is often preferred. That said, historical homes often have additions with newer flooring that can be painted to enhance modernization or keep with the historical décor.
3. The Room’s Natural Light
If you have a small, dark room that gets little natural light, painting the floor a bright shade (white or off-white) will help bounce light around, so it feels bigger.
4. How Thin Are Your Wood Floors?
If the original wood floors in your home have already been refinished several times, it could be that they are too thin to refinish again. In this case, rather than the expense and hassle of replacing them, painting offers a way to breathe new life into old floors without breaking your budget.
5. Your Modern Home Lacks Charm
New constructions can lack charm and history, so painting the floors can give yours the character it lacks. Consider a design that works with your home’s architectural style, but don’t be afraid to let your personality shine through your painted floors.
6. Are Your Floors Damaged Beyond Repair?
If your floors are damaged beyond repair or they are structurally unsound, painting them only covers up the problem without addressing the real issues. If they are warped or uneven, paint won’t be able to cover them. If your floors are beyond repair, it’s best to bite the bullet and get them fixed, so they look great and you know they can support you and your belongings the way they should.
7. Will You Want To Go Back To The Original Floor?
Painting is pretty permanent, so if there’s a chance you’ll want to go back to your original finish, it’s a good idea to skip this project. If you do paint your floors and ever want to “undo” it, keep in mind that it’ll be another major undertaking to do so, and there’s no guarantee the floor will be the same as it once was.
Millennials are the biggest generational group of homebuyers. If you want to be competitive and appeal to this group when selling your home, you must be sure to include features they are looking for. Below, we discuss several home renovations you may want to consider if you hope to appeal to this generation of buyers.
A Dedicated Workspace
Working from home is something many companies embrace. As such, a large portion of the population now works from home, at least on a part-time basis. For millennials, a home must contain a dedicated workspace complete with plenty of outlets and room for shelving.
If your home contains a spare room, adding a few tweaks here and there to make the space feel like a home office is recommended. If no spare room is available, a nook or something similar in a kitchen that has good lighting works, too. The space doesn’t have to be large, just something an up-and-coming remote worker can picture themselves using daily.
A Smart Home
Millennials are all about the digital age, and as a result, they crave smart technology. From smart thermostats and keyless locks to smart doorbells and more, millennials appreciate the convenience and added security these smart options bring to a home.
If you’re hoping your home appeals to the millennial generation, be ready to discuss your smart home features as well as the wi-fi carriers and signal strengths in your neighborhood.
Charging Ports
The younger generation has their smartphones with them all the time. As such, these devices need regular charging to keep up. Switching out some of the regular outlets in your home with USB outlets will be a huge plus with the millennial generation.
Adding USB charging ports in bedrooms, living spaces, and in the kitchen is a great way to market to the millennial generation.
Neutral Color Palette
A neutral color scheme is very popular among millennials. If you want to appeal to this group of buyers, consider giving the rooms in your home a fresh coat of paint in a palette of gray variations, white, and soft neutrals throughout. If your kitchen has cabinets in vibrant or dark hues, think about painting them a lighter, neutral color and switch out the hardware for a look most millennials will appreciate.
Outdoor Living Space
If you want to hook younger buyers, having an outdoor living space where they can spend time entertaining family and friends is a must. Whether your yard is big or small, millennials will be able to see themselves hanging out in it around a fire pit in comfortable seating under some urban-chic lighting. Even if you’ve never used your yard like this before, it pays to stage a space like this in your backyard while selling your home.
Since millennials make up a large portion of homebuyers, it makes sense to market to them as much as possible when selling your home. Add a few of these upgrades and/or renovations to your home to appeal to this generational group.
As an investor, you’re always looking for the next big opportunity. For many savvy real estate investors, this means buying properties near college campuses. While this may sound like a bigger risk than reward, there are actually some really good reasons to buy and then rent properties in college areas. Check them out!
1. You Don’t Have to Work So Hard to Market Your Property
The sheer nature of a college town sells itself. With high walkability ratings, these towns are full of restaurants, entertainment, and shopping. Finding renters in a college town is really easy because there’s always an abundance of people hoping to find housing close to the school and all the activity.
2. There’s No Shortage of Potential Renters
Many students relocate when they enter college. A good majority of them come from far away, which means they need somewhere to live while they attend school. Renting is the obvious option since most of these students will either return home or move away after graduation. Even if a renter moves out of your unit, there’s always another waiting to move in immediately.
Aside from the student body, there’s also the school’s staff and faculty, as well as graduate students. While many of these people are longer-term residents, they may still prefer to rent rather than buy.
3. You Can Maintain Competitive Rental Rates
Because there’s such a high demand to live in the area, you can set and maintain competitive rental rates that keep up with the going market value.
4. Vacancy Rates are Low
Renting in a college area is a balancing act because vacancy rates tend to climb during the summer months when students return home for the break. You can avoid this pitfall of renting to college students by making them sign a year-long lease. This obligates your renters to year-round occupancy, so you don’t have to worry about vacancies during the offseason.
The Risks of Buying Property in a College Town
As with any investment, there are risks to be aware of when buying property in a college town.
1. College Students are Notorious for Causing Property Damage
While renting in a college town has many benefits, no landlord is immune to the property damage college students almost always cause while living in a rental unit. You can offset this damage by factoring it into the security deposit you require when they sign a lease.
2. You May Have to Dedicate More Time to Finding Renters
College students move around a lot, so you may have to spend more time looking for new renters than you would in another area. The good news is, there’s usually no shortage of prospective tenants waiting to rent your property.
3. It Can Be Difficult Finding Renters for the Summer Months
As stated before, summertime tends to result in more vacancies as students return home for the break. Having tenants sign a year-long lease solves the problem of seasonal vacancies in a college area.
4. College Students Can Be Demanding
Because they’ve never lived away from home before, college students tend to have a lot of questions and be quite demanding when it comes to needing something. It’s easiest if you live nearby so you can address their needs quickly, or if you can’t live nearby, hire a reputable management company to handle all the landlord responsibilities in your place.
If you’re an investor looking to increase your earning potential, consider buying rental property in college areas. While there are some risks involved, there are ways around them to make investing in college town real estate a smart move.
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