Blog

The topic of HOA’s is a very opinionated one. People seem to either love them or hate them. Here are some pros and cons to consider before purchasing, renting, and/or investing in a property in an HOA.

PROS:

Amenities

• 
  

  pools, gyms, a community clubhouse, or landscaping can be ideal for convenience and may be cheaper than paying for these services individually

  
  

The neighborhood will look good

• 
  

  HOA typically maintains common areas and community areas and has rules about keeping lawns manicured restrictions on parking boats and other large vehicles on the street, and limitations on exterior paint colors.

  
  

Deals w/ neighbors for you

• 
  

  If you hate having to confront neighbors, whether it's for being...

Improve curb appeal

Make sure the property looks the best, both inside and out. Take flattering photos, make sure landscape is cleaned up and maintained, and exterior paint is clean and fresh.

Update appliances

Look to keep appliances matching and in good condition. Be sure they are installed and vented properly and maintained.

Keep up on maintenance and repairs

Regular maintenance is important as it keeps down on big issues and surprised down the road.

Add value

New interior/exterior paint, new flooring, updated kitchens and bathrooms, energy-efficient appliances, etc.

Keep competitive with the market

Know the current market and market values and stay competitive. Know how aggressive you are w...

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 ...