Monthly Archives: February 2006

February 7, 2006 · 4:58 pm

Good Time of Year

I am not trying to be a high pressure salesman here…but now is a great time to be purchasing property. Inventories are higher than they have been in a while. Going into Spring with a house that still hasn’t sold has some sellers nervous. When Spring gets here you are likely to see inventories increase at a negative pace as buyers come out to buy. So if you are looking for property, especially investment property, now might be the time to jump in!

What Kind of Landlord Do You Want To Be?

Here are a few thoughts while still enjoying the KU comeback over OU…

Many, if not most, of the rental homes I view have been taken care of in a less than pristine manner. There really can only be two reasons for this. The first is that the landlord purchased the property at too high of a price to be able to make the property profitable so that he has to cut corners wherever possible to not get into the red ink. This is a problem that can be avoided by purchasing the property correctly from the beginning. Or moving on to another property.

The second reason is negligence on the part of the landlord. I suppose the reasoning is that since he and his family does not live there it doesn’t have to be perfect. Another one I hear is that the tenants will just tear it up so it doesn’t pay to fix it up. Either way, the landlord is letting the property fall into a state of disrepair that will make it difficult to sell for top dollar when the time comes. Not to mention the quality of tenants a property in disrepair will attract.

Look, most tenants are people looking for quality housing at a fair price. Some are abusive to their properties and/or landlords and should be weeded out during the qualification process. But if they get through your screening and still tear up the property you should have provisions in your lease to get them out.

Attractive homes make it easier to demand a higher quality tenant. And I feel better about myself knowing that the children of my tenants are walking on clean carpet and are not embarrassed to invite their friends over. Yes, I’ve been burned. But by in large tenants show the same respect back that they are given.

The Intangibles

I love the mathematics of real estate. Numbers never lie. Or do they?

Here are some intangibles that you will want to look for when dealing with investment properties;

Does the house have a big back yard? Is it fenced? Is it too big? Where is the elementary school? What school district? Does that school offer any special services that you need to be aware of? Are there any major draws that a prospective tenant might want to be close to like a place of worship, or a shopping mall or a business center? Is the house loaded with low maintenance items like brick or a steel roof?

There are, of course, many more items to think about and weigh. But I just wanted to make the point that there are more than just numbers to deal with when dealing with real estate!