Landlording Archives - Page 2 of 3 - Real Estate Investor Magazines

The Secrets of Being a Successful Landlord

July 27, 2020/in Keys To Success, Landlording, News/by dulce

By Kathy Kennebrook (The Marketing Magic Lady)

You’ve all heard the tenant horror stories from people who have had tenants in properties, but being a landlord doesn’t have to be difficult as long as you learn some strategies for handling your tenants. My husband used to say that handling tenants was like having a group of children that you have to train and discipline. But it doesn’t have to be that difficult.

You do have to make some specific rules for your tenants and stick to them. Every time you change the rules you give your tenants the upper hand. You must also have an iron clad lease that specifically addresses the issues that you may have with tenants including getting your rent paid on time.

This is one area in which I am steadfast with the rules. I don’t care what the tenant’s situation is, their responsibility is to pay me on time and in full or they are stealing services from you without paying for them. My tenants are responsible for having the rent in our post office box or direct deposited through zelle or paypal on or before the date it is due or they are served with a three-day notice the next morning as required by law where I live in order to begin the eviction process. There are no exceptions. We even have tenants who send their checks to me priority mail to make sure they get to me on time. Most of our tenants have been with us a long time and many pay early.

You must also take the time to pre-qualify your tenants’ right from the beginning so you can avoid some problems right from the start. Don’t just accept a tenant into your rental property because they have the money to move in. Don’t let greed be your guide. Have your tenants fill out a specific rental application. Then you run must a tenant check with a reputable company. Don’t try to do this yourself just by looking at public record. You will miss credit issues and anything that may have occurred out of state. You need to find out the information you need to know about your tenants’ right from the start before renting them your unit.

For example, if the tenant check shows the applicant was just evicted from another premises, this certainly isn’t going to be a tenant you want in your property. Or if your tenant has had recent felony convictions, this isn’t a tenant you want in your rental unit. If your applicant has multiple animals, this is also not someone you want in your rental unit. I will mention however, that I will allow a tenant with a small dog or cat to rent my units. I find that usually a tenant who has a pet that they have had for some time will make a good tenant who will stay longer in your unit.

I also have a separate pet lease which addresses specific rules regarding pets in my units. The pet lease requires that the dog or cat is an indoor pet and I have an additional non-refundable amount of security deposit for the pet lease and additional pet rent of 25.00 per month. I find that this works out very well. If the tenant gets a pet that is not on the lease, this is grounds for immediate eviction, and we do have someone who checks our units about every 60 days for us to make sure all is well with our rental units.

I also check out where they were living before by going by the address and checking it out and I talk to their previous landlord. I want to see how they have been treating the place where they were living before. If it looks like a pig pen or if they have multiple animals, this is not someone I want in my unit. If they don’t give me this information on the rental application, I won’t even consider them to rent my unit.

I know some of this is just common sense but it bears discussion. If a tenant makes it through my rigorous screening process, I also have them pay first month’s rent, last month’s rent and the security deposit either by cash, cashiers check or by money order. I do not accept personal checks for the move-in amounts.

During the following months I do not accept personal checks from them for the rent, we only accept money orders or direct deposit. The first time a check bounces for insufficient funds or any other reason, they must make it good immediately or I will immediately begin the eviction process. This is all covered in the lease they have signed. I also make sure that the person I have putting tenants in units for me thoroughly covers all the items in the lease with them before they sign it.

If a tenant does get their rent to us late, they are responsible for additional rental fees of one percent per day. These fees are in our lease as additional rental fees as opposed to late fees since some courts won’t allow you to get a judgment for late fees. Within the body of our lease we also require our tenants to have renters insurance and I want to see proof of the policy before they move in. This way I can’t be held liable for any injuries or the loss of their possessions due to an accident, fire, hurricane or any other natural disaster.

Additionally, once my tenants sign a lease with me, I will not give them keys until I see proof of utilities in their name for the unit. In certain counties like ours, the landlord can’t turn off utilities in their own name. The only way the name changes on the utilities is with a new lease and then utilities get put in the tenant’s name. This rule may be different where you live, but a lot of the time if the tenant doesn’t pay their utilities it falls back to the landlord. This is just one way for you to protect yourself.

These are just a few of the basic techniques that will make you a happy and successful landlord. Monthly cash flow is a wonderful thing if your properties are managed correctly.

For more information on becoming a successful landlord and finding all the deals you need for your real estate investing business, check out my website at www.marketingmagiclady.com. While you are there be sure and sign up for my Free Monthly Newsletter!!

Back in Black/Airbnb is on the Upswing

July 7, 2020/in Landlording, News/by dulce

By Michelle Corsetti

At the beginning of the Covid-19 Pandemic, Airbnb occupancy rates dipped significantly as people opted to cancel their travel plans. Also, many counties put into place restrictions stopping Airbnb rentals from operating. Some counties restricted all but first responders and essential workers from renting Airbnb locations.

However, as of May 28th, there has been a 17.1% increase in occupancy rates. Overall, Airbnb is still down for the year but is hopeful as some restrictions are lifted. The good news is that places with smaller populations are gradually picking up the pace. People are venturing out to get rid of the lockdown blues.

According to Pittsburgh Action News, most rentals have been within 50 miles of home. Since traveling abroad has been halted to a standstill, people are having mini-vacations close to home.

While some people are optimistic about the increase in bookings and sales, others are opting for a more drastic change. CNN reported that some Airbnb hosts are giving up on their short-term rental properties and are proceeding to sell.

These hosts report that because of loss of sales and income, they are planning on selling not just their properties, but their furnishings as well.

Other hosts are changing from short-term term rentals to long-term rentals to compensate for the loss.

Only time will tell what the real impact of COVID-19 has on Airbnb and other short term rental platforms. As of now, while slow, things are looking on the upswing.

Holly Lynn is still very busy in business as a short-term rental expert and host. If you need your property rented– short-term or long-term, she can do for you what she does best–make you money!

For more information or booking, contact Holly at [email protected] or 415-317-6071.

U.S. Department of Justice Files Sexual Harassment Lawsuit Against Landlord

July 3, 2020/in Landlording, News/by dulce

By Stephanie Mojica

The U.S. Department of Justice recently filed a lawsuit against an Iowa landlord alleging that he sexually harassed and committed acts of retaliation against a female tenant.

The defendants in the lawsuit are Juan Goitia and 908 Bridge Cooperative in Davenport, Iowa, according to a press release from the Department of Justice. The reported incidents occurred between March and August 2018 and are blatant violations of the Fair Housing Act, according to the Department of Justice.

Goitia, an owner and manager of residential properties, allegedly touched a female tenant’s body on multiple occasions without her consent and made repeated and unwanted sexual remarks, according to the Department of Justice. When the woman filed a fair housing complaint with the Davenport Commission on Civil Rights (DCRC) and the U.S. Department of Housing and Urban Development (HUD), he engaged in acts of retaliation against her, according to the Department of Justice. The press release did not elaborate upon what those alleged acts of retaliation were.

“No woman should have to endure sexual harassment to keep her home,” Assistant Attorney General Eric Dreiband of the Civil Rights Division said in the press release. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will vigorously pursue those who engage in such reprehensible and illegal conduct.”

After the DCRC and HUD investigated the woman’s fair housing complaint, they forwarded it to the Department of Justice for further action. The lawsuit filed on June 29th calls for the woman to be compensated financially. Also, the Department of Justice asked for a court order to be issued to prevent further discrimination against the woman.

“Women have a hard enough time finding a decent affordable place to live without having to be subjected to unwanted sexual advances,” Assistant Secretary Anna Maria Farias of HUD’s Fair Housing and Equal Opportunity Office said in the press release. “HUD applauds the action the Justice Department is taking in this matter and remains committed to working together to protect the housing rights of women when those rights are violated.”

Vacation Rental Investment Opportunities

July 2, 2020/in Credit Crisis, Landlording, News/by dulce

By Rick Tobin

In 2019, the travel and tourism sector represented 10.4% of the global GDP (Gross Domestic Product), including vacation rental properties. Over the past 12 years back when the best known vacation rental company named Airbnb was formed in San Francisco, each consecutive year for vacation rentals had record growth. However, the current 2020 year has experienced some significant economic challenges related to the global pandemic designation that slowed down travel tremendously.

Airbnb is the best known vacation rental company in the world because it’s the largest. However, there are many other popular vacation space rental brands under the names of HomeAway, VRBO, Booking Holdings, Trivago, Booking.com, Homestay, and TripAdvisor.

Vacation rental ownership can become either a part-time or full-time career for property owners if they are consistent with their marketing efforts, treat their guests fairly, and have affordable monthly mortgage payments and maintenance expenses. With today’s record low mortgage rates, many property owners may be able to refinance and reduce their mortgage rate by 2% or 3% while increasing their net cash flow by $500 or $600 per month, depending upon their loan amount.

Let’s take a look below at some of the latest vacation rental data trends:

Vacation Rental Properties, Income, & User Numbers

Worldwide, an estimated $57.669 billion (USD) was generated in 2019.
The projected number of vacation rental users was over 297 million.
According to the National Association of Realtors (NAR), 30% of vacation rental or second-home property homeowners also leased them as short-term rentals in 2018.
The NAR reported that 32% of investment homeowners were likely to lease them as short-term rentals.
Of the nine million second homes in the US, approximately 44% were professionally managed and upwards of 25% to 35% were rented out, per Hostfully.
There are more than 23,000 vacation rental companies across the nation.
As per VRM Intel, 45% of investment property buyers purchased their property with the intent to generate some rental income instead of just “fixing and flipping” or holding long-term for price appreciation.
It’s projected by Statista that the number of vacation rental users may surpass 57 million by 2023.
The average revenue per user (ARPU) reached $438.49, according to Statista.
Vacation rental income comprises about 24% of the average owner’s total overall annual income, per VRMA.
VRBO estimates that 29% of vacation properties are owned by more than one person.
Approximately 63% of investors and 52% of vacation property buyers purchased a detached single-family home with a median size of 1,500 square feet, according to VRM Intel.

Airbnb Statistics

In the US, there are more than 660,000 host properties.
Since the formation of Airbnb in 2008, there have been over 500 million Airbnb stays.
There are more than seven million listings in over 220 countries and regions.
There are 150 million users worldwide.
There were over 100,000 host cities worldwide as of January 2020.
Each night, there are over 2 million people staying at Airbnb rentals worldwide.
On average, six guests check into an Airbnb every single second.

Top 10 Profitable Airbnb Regions

Surprisingly, many of the most profitable Airbnb areas were located outside of a major tourist hub, crowded metropolitan region like in New York City, or in scenic coastal regions, according to an analysis by the investment property exchange company IPX 1031. This is partly because the host’s property maintenance and mortgage costs are generally more reasonable than in pricier metropolitan regions.

In 2019, the Top 10 cities for highest profit margins for property hosts included:

#1 – Moreno Valley, California: $33,720 annual profit
#2 – Virginia Beach, Virginia: $32,208 annual profit
#3 – Pasadena, Texas: $29,988 annual profit
#4 – Garden Grove, California: $29,772 annual profit
#5 – Fremont, California: $26,700 annual profit
#6 – Grand Prairie, Texas: $24,432 annual profit
#7 – Columbus, Georgia: $23,820 annual profit
#8 – Oxnard, California: $23,256 annual profit
#9 – Orlando, Florida: $22,020 annual profit
#10 – Shreveport, Louisiana: $19,992 annual profit

Top Airbnb Destinations for Summer

In the summer of 2019, the top Airbnb destinations in the entire nation for the peak travel season were ranked as follows:

#1 – Los Angeles
#2 – San Diego
#3 – Phoenix
#4 – San Francisco
#5 – New York City

In San Diego, Airbnb reported that there were 345,000 guests that generated upwards of $79 million in revenue for the property hosts. For the smaller neighborhood regions in San Diego County, the most popular areas for Airbnb travelers included:

#1 – Pacific Beach
#2 – Mission Beach
#3 – East Village
#4 – North Park
#5 – Ocean Beach

The Global Pandemic’s Effect on Tourism and Investments

In February and March 2020, the Dow Jones stock index experienced eight of the 10 worst all-time trading days in history due to investor fears about the coronavirus pandemic. Between February 12th when the Dow peaked at 29,551.42 on February 12th and March 23rd when the Dow plummeted to a low of 18,213.65, the Dow lost 38% of its overall percentage value in just over five weeks. However, stock prices have been moving much higher through the end of June as the Dow Jones had the best quarter since 1987 and the S&P 500 index had the most positive quarter in 22 years.

Unfortunately, the travel and tourism industry has been hit hard during the first half of 2020 due to so many hotel, motel, theme park, and transportation restrictions or complete shutdowns. For many vacation rental owners, they have seen their income fall to lower levels than in previous years. If so, the loss of rental income has inspired some vacation property owners to think about either selling or refinancing their property to generate much needed cash or to hopefully improve their monthly net cash flow.

Surprisingly, real estate continued to have much more positive news than perhaps any other investment sector during the 1st half of 2020. Specifically, the fact that 30-year mortgage rates reached all-time record lows in the month of June was probably the primary reason why as some rates hovered somewhere in the mid-2% rate range. By comparison, the 30-year fixed mortgage rate hit a whopping 18.63% in October 1981.

Other positive first half of 2020 trends for real estate and mortgages included:

Mortgage application numbers reached 11 year highs.
Home purchase applications also rose to 11 year highs while home inventory remains low.
Suburban home market regions are expected to hit record boom sales highs because so many people want out of crowded metropolitan regions while realizing that they can work from home.
US home prices rose for the 9th consecutive month in April, per Case-Shiller.
Prices of the most affordable third of US homes increased 5.5% during the 2nd quarter, per Redfin.

In the second half of 2020 and beyond, more people will likely be very eager to start traveling again after being restricted from travel for much of 2020. As a result, the revenue streams for vacation rental hosts may continue back towards historic highs if the annual positive data trends continue like they have over the past 12 years.

Rick Tobin

Rick Tobin has a diversified background in both the real estate and securities fields for the past 30+ years. He has held seven (7) different real estate and securities brokerage licenses to date, and is a graduate of the University of Southern California. Rick has an extensive background in the financing of residential and commercial properties around the U.S with debt, equity, and mezzanine money. His funding sources have included banks, life insurance companies, REITs (Real Estate Investment Trusts), equity funds, and foreign money sources. You can visit Rick Tobin at RealLoans.com for more details.

Interview With Bruce Norris of The Norris Group, Riverside, California

May 4, 2020/in Experts, Keys To Success, Landlording, Loans, News/by dulce

By Christina Suter, FIBI Pasadena

I recently spoke with my industry colleague and good friend Bruce Norris about what it took for him to break through from who he was as a young man to the guru he is today. Bruce is an active investor, hard money lender, and real estate educator with over 30 years of experience. He is the founder of The Norris Group and has been involved in more than 2,000 real estate transactions as a buyer, seller, builder, and money partner. Bruce has dedicated himself to understanding the economic field in Southern California, and it shows in his work.

Photograph of Bruce Norris, courtesy of Christina Suter.

Bruce was married at 17, fired five times in a row, and eventually got the hang of getting a job. After reading How To Win Friends and Influence People, Bruce said he learned about avoiding the acute angle, which is finding a way to find an argument in everything. The book taught him to diffuse it and to enjoy the skill of learning to diffuse it.

Bruce then got a job in sales, where he sold electrical supplies for six years. One day he was invited to join a man to watch his attempt to buy a house wholesale. After the house was purchased, Bruce realized his life experiences could translate into the real estate buying business. In his electrical business, Bruce sold supplies to people who already had suppliers. In real estate, he convinced people to sell their house to him because he had cash and people could close in a few days.

One of the skills Bruce has mastered is the power to close a deal. When he negotiates with a seller, he lets them know that based on his experience, things work or they don’t, so his offer leaves with him. Bruce tells sellers if they call him back the next day, he will let them know that he’s no longer interested because he wants the power to close and know he’s telling them the truth.

Bruce has earned a reputation in the industry based on his integrity. He will often spend the first 15 minutes speaking with an owner just suggesting things for them that have nothing to do with him making a profit. Bruce will ask about their situation and make recommendations that don’t always lead to him, as a cash buyer, closing the deal.

Someone once referred a couple to go talk to him. He visited the couple for two hours. During that meeting, the husband made it clear to Bruce that he desperately wanted to move to another state, Tennessee, where he had a job waiting for him and his wife. The husband wanted such a full price without commission that he basically got in his own way, Bruce remembered.

There was an underlying desperateness to the man’s situation, so Bruce told him he could sell his house to him that night if he was willing to take less for his house. Bruce closed on their house.

Ten years later, that couple’s 21-year-old son visited his office and informed Bruce that he had been causing trouble in their house, due to his gang involvement. He told Bruce that had if he not bought their house, they wouldn’t have been able to move — and that kid would have ended up dead. He asked Bruce to teach him what he knew and how he was able to purchase his childhood home. That kid went on to open an office on Magnolia and Riverside and bought houses.

The first foreclosure Bruce ever door-knocked was an elderly woman who had $13,000 of debt on a $64,000 house. Because he didn’t want to make the woman homeless, Bruce was able to get the lender to arrange a loan for her — largely thanks to the equity she had in the house. Therefore, she was able to keep her house.

Bruce said he wants both sides of that when he’s a buyer. He wants to be able to look across the table and if he can help the seller make the decision he’d make if he were in their situation, he also wants to be kind enough to let them know when they’re making a mistake.

I asked Bruce how he switched from real estate as a job to having freedom and creating financial stability.

“It really wasn’t a priority to me, so I kept very little inventory for rentals for the first 15 year plus years; I just flipped,” he said.

Bruce added that Jack Fullerton was influential in saying, “That’s great, but what happens if you get hurt or sick? How are you going to have income coming in?”

Bruce said he took that question to heart. While on vacation in Maui, he listened to Robert Kiyosaki’s Rich Dad, Poor Dad. Thus, he learned Kiyosaki’s four ways to make income quadrant.

Bruce said he was always working for someone else or self-employed (the left side of the quadrant) — but on the right side of the quadrant, he was attracted to the two that involved running a business that didn’t need him and collecting checks from investments.

From that vacation on, Bruce changed the way he made income. He said he’s not self-employed because when he goes on vacation, his business can run without him. Thus, he runs a company. Bruce’s loan business, education business, and rentals all started to run without him, and he said he’s probably the least needed person at The Norris Group.

According to Bruce, it took him until late 2005 for his rental income to allow him to feel financially free. He had to think long term and at age 33, a $30,000 profit from a flip was more appealing to him than a cash flow of $200. Bruce said it took him a while to want to be methodical with the rental income and to actually fulfill that vision.

Bruce and The Norris Group can be reached at www.thenorrisgroup.com

Christina Suter

As the founder and lead consultant of Ground Level Consulting, Christina L. Suter brings two decades of real-world experience as a serial small business owner and real estate investor. She developed her extensive financial and operational skills firsthand as she faced and overcame each difficulty that appeared along the way. As a result, she started up, managed and sold several businesses successfully, while developing an extensive real estate portfolio.

In 2002, Christina made the decision to leverage her experience into helping other small business owners and property owners through a consulting practice that works the way an entrepreneur works, dealing with the pressing problems of a business on the ground level and in real time. Since then, she has supported numerous companies throughout southern California and the western United States move beyond surviving to thriving.

Christina’s solid background and education–including a Bachelors in Business, an Associates in Teaching and a Masters in Psychology–strongly influence her work with your company as a Ground Level client. Not only does she have a keen insight into what will make or break the success of your business, but she can teach you the skills you need going forward. And she does this in a warm, supportive, non-judgmental way that is always highly respectful of your personal values.

U.S. Single-Family Rental Home Market Poised for Near-Term Real Estate Growth Opportunities, According to SVN | SFRhub Advisors

April 22, 2020/in Landlording, News/by dulce

By Ruth Seigel

Abrupt global economic downturn caused by COVID-19 leads investors to seek refuge and diversification
in opportunistic CRE asset classes growth, risk-stabilization and yield.

Phoenix, AZ – (April 16, 2020) – As the world grapples to tame the coronavirus pandemic and overturn the economic effects of this unprecedented event, commercial real estate (CRE) investors are monitoring all asset class financial positions to lessen short-term portfolio risk while augmenting investments for long-term growth. SVN | SFRhub Advisors, along with industry experts, predict ongoing consumer demand for housing will position single-family residential (SFR) rentals as an investment portfolio standout. A CRE brokerage firm, SVN | SFRhub Advisors, dedicated solely to SFR/BFR (Build-for-Rent) portfolios recorded a 650% uptick in investment activity since mid-March 2020 for SFR/BFR portfolios on their technology platform, SFRhub.com, averaging 10,000+ listed homes.

Recent data from John Burns Real Estate Consulting (JBREC) outlines CRE sectors most likely to be affected following the pandemic, especially in the short-term, are hospitality, retail and office/co-working. Conversely, JBREC states SFR (while not unscathed in the short-term) should be positioned for faster market recovery and a better long-term play. Housing rental defaults will prove painful in the short-term, but the low supply of newly built rental homes in most markets, and capital seeking safety, yield and inflation hedge, should help SFR recover earlier than other residential real estate asset classes.

Jeff Cline

“Investors have reaped financial advantages of a 10-year bullish marketplace, notably the past few years with SFR portfolios, and the newer BFR market,” said Jeff Cline, executive director and principal of SVN | SFRhub Advisors. “For the first time in U.S. history, rental household growth outpaced U.S. home ownership.” He added, “Looking ahead, consumer economic, lifestyle, and work-at-home popularity indicate global investors’ near and long-term outlook for capital growth and income opportunities in single-family detached homes for rent is better than it’s been for several years.”

BFR communities encompass single-family homes built from the ground up specifically for renters and not home owners. These homes help to fulfill the vast housing need and rental shortage occurring across the U.S. According to JBREC, recently surveyed BFR projects had a very strong 97% stabilized occupancy rate prior to the COVID-19 pandemic.

U.S. homebuilders may turn to REITS, private equity and individual investors to purchase completed or near completed single-family communities for rental investment should the new home buyer market continues to retract. “For the first time, we now have several private capital group clients with tens of billions of dollars to specifically invest in the BFR space,” said Michael Finch, executive vice president of SVN | SFRhub Advisors.

Michael Finch

Demand from millennials and older adults/retirees has destigmatized renting and touted SFRs’ benefits like increased space, yards and amenities representative of living in a single-family detached home. Skyrocketing unemployment, job uncertainty, and hefty student debt loans imply the SFR/BFR market should remain strong among millennials as home ownership moves farther out in time and remote working becomes more popular.

Cline notes, “SFR/BFR investors’ main concerns are rent revenue and occupancy. In the short-term, unemployment may impact rent rather than occupancy issues. As the economy recovers, demand for SFR/BFR will be a favorite among alternative investors with capital on the sidelines seeking refuge and stock market diversification for growth and income.”

About SVN | SFRhub Advisors

SVN | SFRhub Advisors, based in Phoenix, is an independently owned and operated SVN® office. SVN comprises over 200 offices with 1,600 advisors. SVN | SFRhub Advisors is the only national single-family residential (SFR) & Build-for-Rent (BFR) dedicated brokerage that introduced the first-to-market digital commercial real estate fully transactional platform, SFRhub.com. SFRhub.com is the only SFR/BFR industry data provider with clean and verified data. SVN | SFRhub Advisors currently features a pipeline of over $2 billion SFR/BFR investment portfolios consisting of five or more homes and is also a member of the Forbes® Real Estate Council.

# # #

Ruth Seigel
President – RS Marketing & Assoc.
[email protected]
602 320 4182

Covid-19 and Airbnb

March 13, 2020/in Landlording, News/by dulce

By Holly Lynn

The outbreak of the Covid-19 Virus has put a damper on short-term rentals around the world. With travel restrictions tightening the necks of travelers; Airbnb is experiencing a downturn in rental stays. Especially in affected areas.

Airbnb has reformed its cancellation policy to both hosts and travelers. If you are an Airbnb host, you may experience a fluctuation in rentals and cancellations. Reviewing the updated policy is essential. Airbnb is also announcing More Flexible Reservations In Times Of Uncertainty. This is a program that Airbnb is developing to assist hosts and guests when situations like the Coronavirus outbreak happens and to help them cancel or postpone their plans.

Along with these changes, Airbnb is also offering incentives for hosts who are willing and able to offer refunds on cancellations that would have otherwise been subject to charges. They will also provide promotions to boost listings and bookings.

As an Airbnb host, there are things that you can do to make the guests you do have to feel safe and assured that their accommodations are up to standards set forth by common sense and the World Health Organization or WHO.

Here are some ideas that may help you:

Post Hygiene Standards List

Post proper hand washing techniques in the kitchen and restroom.
Clean your hands often
Wash your hands often with soap and water for at least 20 seconds especially after you have been in a public place, or after blowing your nose, coughing, or sneezing.
If soap and water are not readily available, use a hand sanitizer that contains at least 60% alcohol. Cover all surfaces of your hands and rub them together until they feel dry.
Avoid touching your eyes, nose, and mouth with unwashed hands.

Supply Surface Wipes and Sprays

Supplying surface wipes or sprays such as Clorox, Lysol, and Purell for daily cleaning of surfaces that are touched often as a preventative measure. These include counters, tabletops, doorknobs, light switches, bathroom fixtures, toilets, phones, keyboards, tablets, and bedside tables. Surfaces that may have blood, stool, or body fluids on them should also be cleaned.

Wash All Bedding, Linens, Towels, And dishes

Washing all bedding, linens, towels and dishes is important even if the guests did not use them. You can’t be certain if an ill guest has coughed or sneezed on a dish or a throw blanket. Better safe than sorry. Putting dishes in the dishwasher is extra work but satisfying knowing that you are doing all you can for the health of your guests. Assuring them that these practices are in place will give the next guest a feeling of security and comfort.

Provide Snacks, Coffees, Cereals In Single-Serve Size

Providing snacks, coffees, cereals, and single-serve packaging will prevent cross-contamination. Using bins to hold oatmeal or coffee can spread germs from one guest to the next. In actuality, it should be practiced all of the time.

These are just some of the things that you can do to keep the coronavirus at bay. With ever-evolving information made available through sites such as NIH, CDC, and WHO, a daily check-in will keep you updated on changing information and areas affected.

Just remember that this too shall pass. We always bounce back from adverse situations. The human race is enduring.

If you need staging and Airbnb management, hard money loans, or private lending, email me at [email protected] or call me at 415-317-6071.

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

Millennials and Short-Term Rentals

February 28, 2020/in Landlording, News/by dulce

By Holly Lynn

Millennials or Generation Y are a demographic that range in birth dates between 1980 and 1996. They are becoming an increasing group that is opting for short-term rentals instead of purchasing homes. Especially the younger members of the millennial group.

There are many reasons why this is a growing trend among young people. One reason is that millennials are staving off parenthood until later in life if at all. This brings about change in the family dynamic. There are more single people now than ever. With the decision to go solo, a millennial might choose to go on more vacations or work outside of their community. Short-term rentals are being favored by millennials for business as well.

Short-term renting provides patrons with access to full kitchens, larger living spaces, and a home away from home feeling. More often than not, these rentals are easier on the pocketbook than traditional hotel stays. Hotels may offer more services for additional upcharges, but more millennials prefer accommodations that offer much more than a set of towels and bathroom coffee.

According to a report published in 2016 by Airbnb, millennials when asked the question “How likely are you to consider staying in a home as opposed to a hotel, hostel, etc on future trips?” They answered 67%. This makes sense when you factor in that millennials are spending their money on traveling and vacation in lieu of purchasing homes.

Some of the decisions to travel may be due to the “Instagram lifestyle.” Everywhere you turn there is a post showing somebody living their best life on a beach somewhere. Or videos panning far and away places in New Zealand or the south of France. This would inspire anyone to want to vacation or work abroad. In addition, these travelers often partner with friends. Which makes staying in a short-term rental a wiser, financial decision.

Many companies are now offering their employees short-term rentals as housing. There are sites that provide a platform for traveling nurses, medical and business professionals. This tends to be a more cost-efficient way for companies to provide housing in lieu of hotels.

There are some millennials who choose to purchase homes just for short-term renting. The idea of roommates it’s still a viable option. Many people take on roommates to offset mortgage payments. Now they have the option to rent their spare rooms to travelers instead of permanent renters. This is a great way to make more money by charging by the night, rather than by the month.

The very idea of Airbnb was founded by young men trying to make an extra buck by renting out an air mattress in the living room. These entrepreneurs are in fact Generation Y. So the fact that the leading platform for short-term rentals was founded by millennials is a good indication that the market is here to stay.

For more information on how I can assist you with your short-term rental, private lending, or hard money loans, contact me at: www.hollylynn.com or [email protected]

Holly Lynn

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

Real Estate Investing: A Market Correction is Coming

January 29, 2020/in Investing Tips, Landlording, News/by dulce

By Tim Houghten

It’s inevitable. A market correction is coming. The market has been on a high for years now. In 2018 alone, the Dow Jones Industrial Average broke a record high 15 times. If history has taught us anything, it’s that the market cannot sustain those highs for that long without a correction. Real estate markets across the country are still very hot. Even with the “cooling” that some markets are seeing, real estate prices are still well above records and competition is hot. “A cool-down has been predicted for over in a year in our local market. However, I’ve yet to see it. Sure there are some longer list times for sellers but properties are still selling in record time over asking price. It’s still a hot market,” says Eric Jones, Director of Sales and Marketing for Freedom Real Estate Group.

With all that being said, the question on every wise investor’s mind: how can I prepare myself for the next recession? The short answer, diversify. The long answer, diversify into buy and hold, long-term strategies.

“The short-game (fix and flip) is good. It’s instant return. But you get hit hard by the tax man. Buy and hold has some of the best tax advantages of any asset class,” Jones stated. “Depreciation, property taxes, mortgage insurance and more are all deductible expenses. Plus, with fix and flips, it’s simply not a long-term strategy. It’s not a way to build true wealth.”

To lessen the risk of any big swing in the market, the answer is to diversify your investment portfolio so all your eggs aren’t in one basket. The problem many individuals faced in 2008 was that most of their 401k or other retirement accounts were tied up in stocks and mutual funds. When the market tanked, so did their accounts. Now imagine if half of those funds were diversified into buy and hold real estate. For many, the outcome could have been vastly different. Here’s why.

The key to cash flowing, rental properties is that even during a down economy, they’re still cash flowing at the same amount. In some cases, even higher. Let’s look at it this way. If you were getting an 8% return on your stock investments, and the market crashes, you’re likely going to be reduced to 2%-4% if you are lucky. With rental properties, the rent amount stays the same. Your mortgage stays the same. Your property management fees, if you have them, stay the same. Essentially, if you were getting 8% returns on your property before, you’re still getting that. In a down economy, rents rarely go down. You may not be able to get rent increases during that time, but you will at least have a steady, consistent amount of cash coming in each month.

Rental properties tend to weather a down market in a consistent or even appreciating way. Not necessarily appreciating in value of the asset but appreciating in terms of cash flow being received. In a bad economy, a few things are happening. People simply aren’t buying homes. Credit is tighter. People are scared. The pocketbook is squeezed. Instead of purchasing, individuals and small families tend to continue renting during a recession. In addition, those that may be losing their homes to a foreclosure turn to single-family or duplex style rentals since it’s more private and familiar than a large apartment complex. Therefore, demand may actually increase in a down market which is a huge win for rental property owners.

With all that being said, a down market is definitely not the time to sell your rental properties. It’s a buy and hold strategy. During a down market, it is always best to hold these properties unless there is some absolute reason you must sell. When the market begins to climb again, then you may want to consider selling to upgrade to another investment property in a better neighborhood or better yet, purchase two and double your cash flow.

The best part of investing in rental properties is investors are wealth building while cash flowing. Very few investments offer this kind of opportunity. With a buy and hold strategy, you are receiving the benefit of monthly cash flow while also building a portfolio of tangible assets that will always – no matter the market – have value. “If you have the right plan, with a decent amount to invest, you can quickly scale up to a very healthy portfolio. We worked with a dentist who had $400k to invest and wanted to receive $10,000 a month in cash flow so he could retire. We built a plan and got him to his goal in three and a half years. He was able to retire early. However, not only did he keep receiving the cash flow each month, now he has tangible assets that he can sell off if he ever needed to and can pass on to his children and grandchildren,” Dani Lynn Robison, Co-Founder of Freedom Real Estate Group stated.

Something else to consider is how you are using the power of inflation to your advantage. Most 401k plans aren’t able to keep up with inflation. With the small returns and high managements fees, unless you are able to invest a lot in those funds, you may not even be able to keep up with the rate of inflation. However, with rental property, you are working with inflation to win in two ways. First, your mortgage payment doesn’t change. Let’s say when you purchased the property it was a $500 per month payment. If the market tanks, it’s still a $500 payment on a fixed rate loan. If the market is great, same payment. When the market is doing well, your asset, if all goes as planned, is increasing in value. You’re actually earning value on the asset while effectively reducing the value of the money you’re paying due to inflation. Second, you will likely be able to increase the rental amount between 1%-5% per year. That’s additional cash flow and value you will be receiving yearly.

Finally, it’s important to note that this is an investment and with any investment, there is inherent risk. No investment is guaranteed. However, real estate is one of the most proven, asset-based investment classes in history. Most millionaires were either made through investing in real estate or find large value in investing in real estate. As you explore this investment opportunity, look for markets that do not have super highs or super lows in market crashes (like 2008). States affected greatly were Florida, California and Arizona. One of the cities most notorious for being hit hard in the crash was Las Vegas. These may be markets to steer clear of. If a market crash occurs again, it may cause migration out of those areas resulting in rent losses. “Consider markets that may seem ‘boring’ like many in the Midwest including our market – Cincinnati and Dayton, Ohio. These have proven to weather a down economy and not have big drops in real estate values or population. These are the markets where you truly win.” Eric said.

Diversification is the key to weathering a down turn in the market. More specifically, investing in buy and hold rental properties not only is a proven strategy to survive and even thrive in a down market, but one that holds many positive attributes such as consistent cash flow, numerous tax benefits, and true wealth building.

HOW TO DEAL WITH DAMAGES DONE TO YOUR PROPERTY

January 27, 2020/in Landlording, News/by dulce

By Glenn Mananeng

To some landlords, owning a rental property is not only an investment, but it can also be their sole source of income to feed their own family. There can be times where being a landlord can be too much especially when dealing with problematic tenants. A common problem that owners have to face is dealing with the damage left by tenants. Just because you have tenants it doesn’t mean you have nothing to worry about so you should just sit on your couch and wait for the rent money. Any major damage done to your property is your worst nightmare. Repairing it is one thing, dealing with evictions because of the damage done is another headache. Proway Property Management is here to help you out when it comes to dealing with such a problem.

Identify the type of damage done

Give the benefit of the doubt to your tenants. Reevaluate whether the damage done was intentionally or by accident. Knowing why and how the property was damaged in the first place is crucial before making any judgment as a landlord.

Accidental

– no house can last an eternity, your property will also undergo normal wear and tear. This is the usual case, especially when the property has been uninhabited for quite some time. The timing might be awful sometimes but these are not something that we can predict. If this is the case, then it might have been bound to happen anyway in the near future and as the landlord, you are responsible for fixing it. Under the Landlord-Tenant Law, the former is responsible for maintaining the property to keep it safe and habitable.

Intentional

– in cases of a bad tenant, they may leave the property in bad shape especially if they had a negative experience with their eviction. Bad tenants are more or less people who simply don’t want to take any part of maintaining the property. Even if they’re not the owner, they still need to partake in the maintenance of the house to some extent.

The damage has been done. What now?

In situations of involuntary damage, an agreement between you and your tenant should be cemented in order to agree on how to go about repairing the damage. In these cases, you’re most likely facing the brunt of the costs. It doesn’t have to be always but it pays off to be prepared for something unannounced. A sudden faulty heating insulator or problems with plumbing or electrical systems should be fixed right away before any major risks that may put the tenant and landlord harm develop.

If the damage was intentional, however, some serious actions need to be done. That’s why it’s important to take before and after pictures of the property as part of your agreement with the tenant. Although showing the house to them is necessary, taking photographic proof before your tenants settle in gives you the added assurance that the damage wasn’t there before. Generally speaking, the tenant is responsible for covering the cost of repair in those circumstances.

Proper use of the security deposit

Not every tenant agrees to pay for the damage even with hard proof. The security deposit can be used to cover the damages in this case. Under Michigan’s Landlord-Tenant Law, the deposit is limited to the amount equivalent to one and a half month’s rent. The deposit should not be used in cases of wear and tear and should be strictly limited to cover damages due to the negligence of your tenants.

If the tenant moves out or gets evicted, you should return their deposit together with a notice of damage. This itemizes the deductions to their deposit. The notice should be given to the tenant within 30 days after they’ve moved out. Tenants can file a dispute with the deductions about their security deposit within 7 days of receiving the notice.

We differentiated intentional and accidental damage done to the property. We also mentioned that the security deposit can be used for covering the costs of damage done by the tenant to the property if they refuse to pay up. However, it’s easy to mistake damages and routine maintenance wherein the deposit shouldn’t be used to cover up the latter.

For example, the deposit shouldn’t be used just because the property needs a new paint job which it really needs in the first place. If the tenant has been staying for years in the property, adding a new paint job is considered as routine maintenance. However, if the walls were newly painted and the tenant left the walls in a state of filth or even allowed their kids to draw on them, deducting from their security deposit would be justifiable. The verdict whether or not to use the deposit relies on the landlord’s standard practice and the appliance’s life expectancy. An example for a commonly damaged appliance are AC units. These have a life expectancy of 10 years. Replacing the unit doesn’t allow you to use the tenant’s deposit because it’s old and faulty. If the unit was newly bought and damage was done by the tenant, deducting from the deposit is plausible.

If the damage exceeds the amount of the security deposit

After calculating the costs of the damage and the security deposit isn’t enough to cover it, you can file a case in small claims court. Remember, under Michigan Law it is illegal for a landlord to take more than the limited amount of the security deposit. That’s why garnishments (money judgement against a previous tenant that owes you money) is a legal tool that you can use as a landlord in these cases.

It doesn’t matter if it was intentional or not though cause at the end of the day, damages to your property will still give you a headache either way. As much as possible, a landlord should provide a habitable living space for their tenants. Dealing with these problems is part of the long list of responsibilities along with being a landlord. If you don’t want to deal with the said hassles, Proway Property Management is the answer to what you’re looking for. We’ll take care of everything so you can literally sit back and just wait for your money to come. Contact us now by phone: (734)744-5080 or by email: [email protected]