Monte Mohr
April 2012
In today's struggling housing market, have you been considering renting your home instead of selling it? That can either be a great decision, or an awful one; it just depends on how you approach the idea. Here is a helpful list of some do's and don'ts when renting a home.
This is a really interesting topic. Lots of people have decided to try this, but it can be dangerous so here are some tips for those of you who are considering this option.
I've been a landlord for 10 years now and I've owned as many as 9 properties and I can tell you first-hand that I've learned most of my lessons through trial and error; nobody told me these things. That is why I want to share some important tips with others.
#1 Temperament; you've got to have the temperament to be a landlord.
You really do need to have the right temperament, and not everybody has the right temperament. You need to consider whether or not you can be "hard" to your tenants. Because if you act compassionate when the rent is late, then the priority of paying the rent just dropped another notch. Ask yourself, "Can I sleep at night knowing that somebody may not be taking care of the home as well as I would?" This is a big factor.
#2 Finding a Good Tenant; it can be tough to find the right renter.
The number one thing to remember while you are in the process of looking for a good tenant is that it's better for the home to sit empty than it is to get the wrong tenant; because it takes months to get somebody out once they are in there. The main thing is that you don't jump at the first person who wants to live in your house. Be patient and make sure that you check all the references or you will pay for it later.
#3 References; who should you ask for when gathering references?
I learned the hard way that you don't just ask the current landlord, you should also ask the prior landlord. If the person is not a good tenant, the current landlord will tell you whatever you want to hear to get rid of those people. Not only that, but you should check with the utility companies because if people do not have a bill in their name with a utility company, they may not be a good candidate for a tenant. The utility companies know how these games are played so you should always ask for utility bills as well. You want to have a track record of how they've paid and that they've been consistent with their payments.
#4 Neighbors; do you know your neighbors?
I was so fortunate that my neighbors had my contact information one night when somebody moved out at midnight because I wouldn't have known otherwise. If you don't know your neighbors, go around and introduce yourself to make sure that they have your contact information. That way they can get a hold of you if they see anything suspicious happening to the house.
#5 Rent; how do you know what to ask for rent?
Rental amounts change a lot and that's why I go to Craigslist, or something similar to it, to find out what the prevailing rent is for a property like yours; it really varies from week to week, and month to month depending upon supply and demand. The best thing to do in that process is charge a little bit less than what the prevailing rent is; you'll have a lot more people to pick from.
#6 Leasing Companies; is it better to hire a leasing company or be a landlord yourself?
If you have the margin to pay for a leasing company, by all means do so. They are far more objective and they know how things go when evicting somebody. They are not going to get emotionally attached to the clients like sometimes the temptation is as a landlord; buying into their problems and so forth. So if you have the margin it's a good idea. Leasing companies typically charge about 10% of the monthly rent. So if you can do that, by all means pay somebody else to take care of it.
About The Author: My name is Monte Mohr. I am a realtor in franklin that specializes in nashville tennessee real estate.
How to Choose a Real Estate Agent That Is Right For You
by Monte Mohr
April 2012
When it comes to buying or selling your home, does it really pay off to have a real estate agent? And if you decide to go with one, how do you make sure they have your best interests at heart? Here are some answers and tips to help you decide.
How important is finding the right tour guide, or the right realtor, when you're buying a home? Does it really matter who a person chooses to be their agent? And, can the service really vary that much from person to person?
It is so crucial to find a real estate agent that is suited for your needs; it can make a huge difference in the level of success you have when buying or selling a home. You should never choose somebody because their mother plays the piano at church, or their father is a soccer coach on the weekends. But so many times, I hear that is the very reason why someone has chosen their real estate professional; because of an outside connection. They are trying to help someone out; trying to help them get started. But we don't make decisions in that manner for other things in our life, so why should we do that when it comes to one of our largest investments? For instance, if I were going to have heart surgery, I'd want to make sure that my doctor has performed that type of surgery more than once.
What are some of the things that a person who is looking to buy a home should be looking for in an agent?
Experience
Experience is one thing that can not be surpassed in any other formula. Experience is absolutely crucial. How many years have they been in the business? How many homes have they sold? I've had listing appointments where the agent had not sold any property for a year and a half and they had tied the property up for six month; so experience is a really important issue.
Availability
Unfortunately a lot of agents have gone to part-time status because it's been so difficult in the marketplace out there. Make sure that the agent you choose is given your cell phone number and that they are available all the time - it's really important.
Areas of Expertise
So often an agent is a specialist in one particular area of town, or one particular town, and if you're not in that area you're out of their comfort zone. Do you really want to explore the purchase of your largest asset with somebody who is not familiar with that area? I wouldn't.
And something I think a lot of people don't think about is whether or not their agent has knowledge of the different financing options that are out there right now. Having this type of knowledge is crucial because just a 0.5% interest on a $150,000 loan over its term can mean $16,000 lost or saved, so it's really important that the realtor direct you to the proper lending source.
Negotiation Skills; How do you find out if that person has those?
Negotiation skills comes back to experience. I was talking to an agent the other day who says she never negotiates because she doesn't want to offend anybody. Well my goodness, in this kind of market if you're paying cover price, you're probably paying too much. So it's really important to find an agent who has strong negotiation skills; the last time I personally bought, I made everybody mad during negotiations but I said "Hey, you never know until you ask."
What about inspectors?
This is another huge factor. Once you buy a home it belongs to you, so you want to make sure that the home has been dissected by somebody who is absolutely thorough. It is such a crucial part of it.
There is a unique home-selling technique that has given rise to great success for many people.
Anyone looking to buy a home that has one to sell, should look for an agent who is willing to cut their costs in half by lowering the commission and doing their portion for free; the selling part can be done totally free of charge. The reason an agent has the ability to do that is because they can make their commission when you use their services to purchase your next home. Essentially, an agent sells two homes to make money on one, but that allows people in today's market to sell their homes when many of them would otherwise be sitting there for years at a time.
About The Author: My name is Monte Morh. A writer in Nashville Tennessee Realty Company and specializes in Brentwood Tennessee Real Estate.
