More single-family rental investors are building homes to rent rather than to sell especially in local markets where building and land costs are lower and where there is more entry-level home building.
continue readingPay for property renovation projects by the job not by the hour. When you pay by the hour, it normally takes more time and costs you more money.
continue readingQ: Should I care about a foundation crack in my home? -Eugene, Harrisburg, PA A: Good question, Eugene. Cracks in the foundation of your home that are wider than 3/16 of an inch can be very serious. If you do have a foundation crack that’s wider than 3/16 of an inch you should immediately seek the assistance of a structural engineer to check things out. The longer you let structural problems in your house fester, the more expensive the remedy often is. Thanks for your question, Eugene—good luck. For more real estate tips and information, visit geraldlucas.com or performanceproperty.com. I’m Gerald Lucas and I’ll see you again soon.
continue readingThe break-even point for months supply of housing inventory is about 6 months–if housing inventory is higher than 6 months prices normally fall, when housing inventory is lower than 6 months, property prices normally increase.
continue readingEviction history is more important than personal credit score in determining whether a prospective tenant will pay their rent on time.
continue readingWhen you rent a property, set up all appointments to show the property at the same time–this saves you time and creates more urgency for tenant applicants to make a decision.
continue readingIf you relocate for a new job and rent our your property, you a landlord in the eyes of the IRS, so make sure you report your new rental property on your federal incomes taxes.
continue readingQ: Can I raise my tenant’s rent every year, and if so by how much? Carrie, Bloomfield, NJ A: The key to being an effective landlord is knowing your local real estate market, where it is and hopefully where it’s going. While landlords would always like to raise their rents to increase their profits and sometimes to offset increases in their expenses, the market ultimately decides how much rent you can charge. If you charge too much rent relative to similar properties in your area, your property will sit vacant or your existing tenants may move out if they know they can pay cheaper rent for similar digs somewhere else. For this reason I strongly recommend that you monitor market […]
continue readingQ: What’s the best legal entity to buy a property in? -Scott, Georgia A: In my opinion, an LLC, which stands for limited liability company is the best legal entity to buy property in because LLCs provide both liability protection and tax flexibility. In addition, I’ve found LLCs to be easier and cheaper to set up and maintain than other legal entities. Owning an LLC will require you to adhere to certain corporate formalities like preparing meeting minutes on a regular basis. As I said last time, it’s also a good idea to consult an experienced CPA and real estate attorney before you make a final decision. Thanks for your question, Scott. Good luck. For more real estate tips and […]
continue readingQ: Gerald, we finally got rid of a terrible tenant in our rental property-he didn’t pay for months and he tore the place up. We’re looking for a new tenant now, how can we avoid another disaster? -Patrick, Orlando, FL A: Sorry to hear about your trouble, Patrick. As a long-time landlord myself, I can certainly relate. What I’m going to do is give you three warning signs of a potential bad tenant: 1) The prospective tenant is in a hurry to move in right away-this often is because they just got kicked out of their last place. The key is to have rules and regulations and to stick to them. Never allow yourself to be rushed through your own […]
continue readingAs a landlord, it’s best to have a thorough written rental policy that uniformly applies to all tenants and all tenant applicants.
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