Why Property Management Makes Sense

Blog, Real Estate

Having real estate property in your investment portfolio is a wise choice. If you have rental property, you may think that managing your property on your own is a way to save money. But there are a few reasons why property management make sense.

Dealing with Tenants

One reason why you should consider a property manager is because of all the paperwork and overall dealings with tenants that you can avoid. No one wants to deal with all the issues that come along with renting property. For example, self-management might cause your property to be empty longer than the the average time, which is 10 percent of the year.

Another issue that you will not have to worry about is dealing with tenants who are not paying their rent. A property manager will ensure that all the proper steps are taken, such as sending reminders or even eviction notices (if necessary). These are unsavory steps and not something that you want to deal with on your own.

Property Managers Help Protect the Property

You know how important it is to keep up with your primary residence. The same goes with your rental property. Overtime you could develop issues with the plumbing or electrical system. Of course, it is possible that the property is in perfect condition, but that does not mean that a tenant is going to take care of your property. Plus, it might be hard for you to inspect the property when you have your own home to worry about.

Hiring a good property manager should ensure that issues with the home are prevented. A property manager will provide tenants with a few house care tips to keep plumbing in good condition or prevent problems like mold. This could include something as simple as using a sink strainer. A good property manager will also try to detect issues before they become expensive. This is done through scheduled professional inspections of the property. The inspections usually include pest control as well, just in case.

Keep in mind that these are just a few of the reasons why you should consider a property manager instead of doing it on your own.

What You Should Know About Reverse Mortgages

Blog, Finance

A reverse mortgage is a type of home equity loan that is designed for older homeowners. This type of mortgage differs from a typical loan because with a reverse mortgage, you don’t need to make monthly mortgage payments. The loan would actually be paid off when you move out or when you die. This is a great option for homeowners who haven’t saved enough for their retirement and need more money.

Who is Eligible For a Reverse Mortgage?

  • If you are considering applying for a reverse mortgage, there are certain criteria that you would need to meet.
  • You must be 62 years of age or older.
  • You would need to own your home and it would have to be your primary residence.
  • Your home would need to be a single family home or a multi-family home with up to four units. If you live in a condominium or a manufactured home, you would be able to get a reverse mortgage as long as you get prior approval.
  • Your home is paid off or you own very little on it.
  • The home must be in good condition to qualify for the loan.

How Much Can I Get From a Reverse Mortgage?
The amount of money that you are allowed to receive would depend on the amount that your home is worth based on its appraised value and the amount of money that you still owe on your mortgage. For example, If you own a home that is worth $400,000 and you still owe $100,000 on your current mortgage, you would have $300,000 in home equity that you can take out in the form of a reverse mortgage.

There are a few other factors involved when it comes to the amount of money that you can get from the loan. The older you are, the more money you can get. For example, a person who is 82 years old would be eligible for more money than a person who is 62 years old. Also, the interest rates would also be a factor. If the current interest rates are at 4 percent, you would be able to borrow more than if the rates were 6 percent.

How Can I Get the Money From My Loan?

  • When you reverse loan application is approved, there are a few ways that you can get the money.
  • When the loan closes, you can get the money in one lump sum.
  • You can receive a monthly annuity, also known as a tenure annuity as long as you are living in the house.
  • You would get a monthly annuity for a period of time decided by you. This is called a term annuity.
  • You can take out a line of credit that can be used how you see fit. As time goes on, the credit line would grow.

Reverse mortgages are a great way for seniors to get the cash that they need to enjoy their retirement. As long as you didn’t plan to pass your house down to relatives after you die, this is one of the best financial options.

Can You Evict A Non-Paying Roommate?

Blog, Legal

When you sign a lease with roommates for an apartment or a home, you have to be extremely careful about how the lease is worded. In some cases, both parties can be listed as tenants, making them equally responsible for the rent. This means that if one party fails to pay, the other party has little ground to stand on to get them out, and may be held liable for the entire amount of the rent. Here is what you need to know in this situation.

Ask the Landlord to Draw Up Two Separate Contracts
If possible, ask a landlord to draw up separate contracts for each tenant. The contract should list who is responsible for what. This makes each party responsible for their own rent, and if the other party does not pay, the landlord can evict that party.

Get a Tenant/Occupant Agreement
If the landlord does not want to have separate contracts for each roommate, you may want to get a tenant/occupant agreement. With this type of agreement, you are listed as the sole tenant of the apartment, meaning you are responsible for providing the landlord rent. Your roommate can be listed as an occupant, meaning they do live there. From there, you can draw up a contract with the roommate where you are listed as the landlord and they are your tenant. This is a legally binding contract as to how much they pay and when rent is due. If they fail to pay, you can then turn around and evict them.

Eviction law is complicated and often favors the party being evicted, as the courts do not want to throw someone out of the streets. Unfortunately, many people make the mistake of listing roommates as tenants on the rental contract without realizing that this gives them little leverage if the other party stops paying rent. In this case, the only course of action you may have is suing them in small claims court to get back rent, but it will not help you get them out any sooner. You may have to wait until the end of the lease in order to do so.

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