Blog

As an investor, it is important to be prepared for the unexpected.

Now more than ever we are seeing the grave importance of protecting the future of your investment by building a reserve fund. Your reserve fund is your “emergency” cash fund. A reserve fund should be large enough to cover unexpected situations, not only maintenance that comes up. The amount you want to set aside can vary and depend on property type, size, age, and size of the portfolio, however, a good starting point is 2-4 months’ rent. Remember, a reserve fund for rental properties is an investment itself.

An easy way to calculate a reserve fund for a portfolio with 1-10 properties, add up the following e...

HOW CAN YOU AVOID MAKING THEM?

1. LOOK AT COST ONLY: DON'T JUST LOOK AT THE COST OF THE INSURANCE POLICY. IN MOST CASES YOU "GET WHAT YOU PAY FOR". YET MANY REAL ESTATE INVESTORS ONLY CONSIDER THE PRICE. THE POLICY MAY HAVE EXCLUSIONS AND ONLY COVER VERY FEW THINGS.

2. CHECKING THE A.M. BEST RATING: THE A.M. BEST COMPANY IS THE PREMIER COMPANY THAT COLLECTS DATA AND EVALUATES THE FINANCIAL AND OPERATING STRENGTH OF ALL INSURANCE COMPANIES IN AMERICA. HOWEVER, ONE THING YOU SHOULD BE AWARE OF: A.M. BEST OPERATES WITH REVENUES RECEIVED FROM THOSE VERY SAME INSURANCE COMPANIES THAT THEY ARE EVALUATING. THEREFORE NEARLY 91% OF ALL INSURANCE COMPANIES HAVE SOME KIND OF "A" RATING.

3. LOCATION OF THE AGENC...

Upgrading the kitchen at your rental property can be much easier than you think. Here are some simple upgrades you can do without having to do a complete remodel, but make a huge difference.

Cabinets: Whether you resurface them, change out the fronts, or just update the paint/stain, this will make a major difference in the overall appearance of your kitchen.

Backsplash: Simple backsplashes can make an amazing difference. Just adding a bit of texture, color or even something simple add to the character of the kitchen.

Countertop: From complete replacement to simply resurfacing, there are many options for countertop upgrades to do. Making countertops easy to clean, neutral and s...

Keep up on Repairs

The longer you wait on repairs, the more expensive and extensive they become. Physical issues at a property tend to just worsen over time and then need to be done quickly.

If repairs are taken care of in a timely fashion and before they are too extensive, this will ultimately save you money in the long run.

Inspect Property Annually

This not only keeps tenants on their toes and keeps them accountable; it shows them that you actually care about the property. This also allows you to see how the property looks and encourage the tenants to let you know if there are any issues they haven’t brought up. This will not only help you keep the property in good condition but al...

Here are five easy steps you can take to help protect your investment property against potential damage.

1. Use glossy or semi-gloss paint

This makes it easier to clean walls and remove things like smudges and scuff marks

2. Install Door stoppers behind every door

Prevents damage if doors are slammed and bang into a wall

3. Forget about Carpet, go with tile, faux wood or bamboo flooring

These flooring options are much more durable and last much longer than carpet.

4. Simple landscaping

Renters may appreciate a few plants here and there, but less is more and it’s best to keep it as low maintenance as possible

5. Require tenants to replace AC filters

Be sure to include a clause in your lease tha...

Month-to-month lease agreements provide both the landlord and the tenant with flexibility, but as with anything they also have some down sides

Pros for Tenants:

- Flexibility to move - one of the most common reasons for a tenant to sign a month to month or opt to go month to month is so they have the ability to move quickly.

- No specific end date - unlike a long term lease agreement, month to month leases allow you to give a normal (typically 30-60 day) notice and you aren’t burdened by lease break penalties

- You can (usually) switch to a long term lease -a lot of owners give the option to sign a longer term lease if plans change

- Can look for a home - this is often an ideal o...

Rental properties are a big investment, so making sure you are protecting your investment is a must! Here is a breakdown of what your landlord insurance can cover:

Property damage: This covers damage to the home itself and personal property due to fire, storm damage, theft, vandalism and tenant damage. Ideally, your landlord insurance will cover the replacement costs for your entire rental property in the event of a total loss.

Liability insurance: This coverage protects you against liability claims and lawsuits. Whether a tenant, visitor or even a trespasser is injured on your rental property, you could find yourself in a legal headache. Your liability insurance will help you ...

Although they’re more common in suburban settings, single-family rentals have been abundant in most of the nation’s biggest urban centers. When RENTCafe looked at increases in the number of renter-occupied households by type, they found that in 22 of the 30 largest U.S. cities single-family rentals expanded faster than apartments between 2007 and 2016.

With some of the largest numbers of foreclosures and sharpest drops in home values during the housing bust, the city of Phoenix tops the list of cities with the biggest percentage increase in single-family rentals. According to U.S. Census estimates, the number of houses for rent in Phoenix increased by a whopping 7...

Finding new tenants is expensive and time-consuming. The cost of advertising, showing the property, screening potential tenants and more eats into landlords’ profits, especially as the property sits vacant.

So what are the benefits of offering incentives to tenants to renew and/or sign leases?

Keeping good tenants is always the way to go, which is where incentives can come in handy. According to a survey conducted by SofwareAdvice.com, half of males and 41 percent of females aged 26 to 35 say they would be more likely to stay at a rental property if offered an incentive when the lease is nearly up and 52% of renters prefer cash or other types of spendable rewards.

Incen...