Q: We just got back from vacation. While we were away we saw a property that I think would be a great rental investment. What do you think? Caroline, Bogota, NJ A: Property management is a hands-on endeavor and is challenging enough when your property is located near you. Managing property far away is more challenging and real estate expenses often end up costing more than they would in your local area. This doesn’t mean you can’t handle owning properties in far away places, it just means it’s more precarious. When you are a long distance landlord, the success of your investment is more dependent on your property manager and local team of contractors and handymen on the ground than […]
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Homeowners are staying put longer than ever before-median tenure for home-ownership has jumped to 10 years, up 10% from last year
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Every two years, a water heater should be flushed of mineral deposits.
continue reading Q: Our sewer is backed up. Do we have to repair it or is it the municipality’s responsibility? Ed, Elizabeth, NJ A: Great question, Ed. It depends on where the blockage or break in a pipe is–if it’s in your home, it’s your responsibility. As the pipes move away from your home, it’s not as clear whose responsibility it is to make repairs. To find out for sure, call your local government or utility company. They will have a map containing a detailed breakdown of sewage lines in and around every home. If it’s a main sewer pipe causing a problem, contact the public water utility company in your area. It is their responsibility to repair or replace the sewer […]
continue reading Q: My cousin’s tenant wants to break his lease. I know a lease is a binding contract, but are there any good reasons to let a tenant break a lease? Quincy, Chesterbrook, PA. A: That’s a great question, Quincy. And you’re right, a lease is a binding contract. But to be an effective landlord, you have to embrace the world as it comes at you and not get bogged down in the theoretical idealism of how things are “supposed to be.” So, I’m going to give you an example where it would make sense to let a tenant break their lease. Let’s say you have a tenant and the tenant lost their job – they can’t pay the rent. Let’s say […]
continue reading Don’t rent to tenants who have been previously evicted.
continue reading Q: Gerald, my mortgage broker is telling me that mortgage rates are going to go up and that I should buy a home now before they do. Even if rates go up a little, won’t they still be historically low? Should I buy now? Carrie, Boulder, CO A: Great question, Carrie. The simple answer to your 1st question is yes, even if mortgage rates go up a little they’ll still be historically low, however that doesn’t necessarily mean that you should buy now. You’ve got to look at your personal goals and financial situation to make an intelligent decision on whether to buy a home, but let’s look at how mortgage rate movements will affect your financial ability to buy. […]
continue reading Q: Gerald, I’m a real estate professional. Do you have any year end real estate tips for me? Lance, New Bedford, MA A: Hi Lance, last week I mentioned that you can reduce your tax burden as a real estate professional for this current tax year by paying more of your business-related expenses before the end of this year and by deferring some of your income til next year. Here are 3 more year-end real estate tips that’ll get through the winter: 1) Flush your water heaters. This is a cheap and easy procedure that only costs about $30. Flushing water heaters helps to control the buildup of mineral deposits, resulting in a more efficient heater. 2) Service oil or […]
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