When you’re thinking about advantages and disadvantages of owning a rental property, it’s easy to narrow the thinking down to the equation of rental income minus expenses equals your profit. This is a basic formula to start with, but there are so many different factors and variables that go into making it more complex than it seems. Many rental property owners don’t realize how much of their own time and effort is required for upkeep, taking tenant calls, collecting rent, enforcing leases and more. This brings us to the point of whether it’s worth the investment of your own time to handle these duties, or if paying a property management company to handle them for you is the way to go. Everyone views these perspectives differently but getting an overall understanding of both sides will help you make the decision that fits your lifestyle best. Finally, most people I meet don’t realize there are actually four (4) different ways to make money in rental properties – spending your time managing the property might not always be in your best interests.
Posts Tagged ‘Property Management’
For some people, owning a rental property can seem like a dream scenario. For others, it may seem like a nightmare they’ll never wake up from. It’s only natural to have mixed feelings about owning a rental property, since there are so many different pros and cons to think about. Even when you take the time to weigh them all out, it can still seem like there are just as many risks as there are rewards. Most of the time, a person’s experience owning a rental property won’t be a complete dream scenario where there aren’t any issues and the rent checks just keep flowing in. But the experience won’t be a complete nightmare either. It will be somewhere in between. There will be plenty of ups and downs, things you can plan for and things you get blindsided by. Everyone has a different risk tolerance, so making a list of the pros and cons of owning a rental property can help you decide whether the risks are worth the rewards for you.
I rarely use the “M” word because I’m not an industrial hygienist or a laboratory. However, mold is commonly talked about in the real estate world and is everywhere – that simple fact doesn’t take away from the seriousness of it. A mold infestation or contamination can be extremely damaging to a property and to investment property managers. Not only does mold put your tenants/residents at risk, but you and the property owner may have to spend a significant amount of time and money to properly mitigate the environmental condition and make the rental unit a safe and comfortable place to live. Moreover, mold creates a significant stigma on a property which most certainly attaches and affects value and desirability. In addition to educating yourself about mold, one of the best things you can do is focus on the common areas (bathrooms, kitchens, laundry rooms) where mold grows and do your best to prevent it by keeping these rooms, walls, ceilings as dry as possible. However, if mold/mildew growth is already there, it’s time to take care of it before the issue becomes more serious. Remember, a property manager and/or landlord’s primary duty is to provide a habitable rental unit – a unit with mold is not habitable.
The pleasantly quirky Slater neighborhood was built in the middle 1950s and is known for its diverse residential makeup and unique and varied architectural styles. When you live in Slater, your neighbors will be Google execs, young families and retirees who are the original owners of their homes. As you stroll along the wide, tree-lined streets, you will pass brick duplexes decorated with wagon wheels and charming bungalows reminiscent of farm houses. If you are looking for a distinctive non-cookie cutter community that is minutes from downtown, make sure to consider investing in Slater real estate.
Able Glass, Window & Door has been installing windows and doors in all types of residential and commercial (apartment) buildings since 1969. Over the years we have seen many different types of windows, window systems, and installation methods come and go. Window trends appear with the different types of construction, architecture, and consumer tastes as well as the ever changing rules of the industry standards to ensure that a building is energy efficient. Window design and construction has gradually improved with technological advances in making a building use less energy, which helps reduce energy costs. Today, in the San Francisco Bay Area housing market, we are experiencing some new trends in the types of windows being constructed and installed primarily for residential rental and investment properties by professional property management companies. These trends continue to develop and evolve but here is an outline of what we are seeing in today’s environment.
If you’re looking for the perfect place to call home in the Bay Area, you may feel overwhelmed by the abundance of options. Mountain View, Saratoga, Los Gatos, San Jose, Sunnyvale, Cupertino, Los Altos, Menlo Park, Palo Alto… How do you narrow your options? You need to learn all you can about the pockets and enclaves in this amazing region of California. If you are looking for a family friendly area with charming homes that are priced reasonably, take a closer look at South Palo Alto real estate listings.
Even though e-cigarettes are increasingly being banned throughout California cities and counties Palo Alto’s City Council is not including them in their new proposed smoking ban for apartment buildings. For those of you who aren’t familiar with them e-cigarettes look like the real thing, they glow when you puff on them, and a smoker puffs out a cloud of vapor when they exhale. Many believe e-cigarettes are a “gateway” drug as the number of teenagers using them doubled from 2011 to 2012, and increased 61 percent from 2012 to 2013. Moreover, e-cigarettes have nicotine, emit formaldehyde, are addictive, and can be dangerous for people with heart problems. There are many unknowns with e-cigarettes and this is potentially the reason Palo Alto is not yet banning them in multi-family buildings.
If you are looking for a quiet, peaceful Palo Alto neighborhood look no further than Leland Manor, Garland, and Embarcadero Oaks. Located in the middle of Palo Alto, there exists these three small neighborhoods, all connected and which extend north from Oregon Expressway, to Middlefield Road, Embarcadero Road, and Louis Road.
These three neighborhoods were annexed into Palo Alto proper in the 1930s. Each quaint neighborhood has its own unique and pleasureful personality. Most of the homes in these neighborhoods were built in the 1930s to 1960s and many have been upgraded and improved with time. Many of the homes in these three mini-neighborhoods were built as three and four bedroom ranch-style homes, sprinkled with the occasional custom Eichler. The central location for Leland Manor, Garland, and Embarcadero Oaks allows for ease of access to US 101, local shopping, great Palo Alto schools, Stanford University, and community amenities.
In a historic move California Governor Jerry Brown issued an emergency order and declaration of water conservation rules which are now imposed on everyone in the state with the exception of farmers. There will be fines and potential rate hikes for residents that fail to hit stepped-up conservation targets as the state endures the fourth straight year of severe drought conditions. Governor Brown has issued water-saving orders for 25 percent statewide reduction in usage which includes bolstering enforcement of water waste, requiring drip irrigation at new construction projects, eliminating rouge farmers who divert water illegally from irrigation channels, and implementing an investment strategy in new water-saving technologies.
Are you a rental property owner? If so, it’s great isn’t it? You receive income from the rents, also known as other people’s money (OPM), and you realize capital appreciation from the equity gains in the value of the property – a rising tide raises all boats. In fact using OPM is a great strategy for paying for your child’s college education, and providing a passive income stream for yourself in your retirement. The key is buying and holding onto an investment property as soon as possible and taking full advantage of the Internal Revenue Code (IRC) allowable deductions and expenses. Becoming educated about this investment strategy is easy, fun, and should be taught to your children.