By Mike Hurney - Sunday, April 2, 2023
There's a fine line between what you'd Like to Charge for Rent and When a Tenant will move. So we began with a SF in Swampscott, then a SF in Marblehead and Finally with a 3 Family in Salem. Using software that relies on GPS and MLS Comparables:
We found that Swampscott had plenty of room to get to Market rate, especially since the same Tenants had been been there 20 years:-0
The Marblehead SF was closer to Market since there had been changes in Tenants every couple of years but still had room for $100/month increase.
However there had been overuse of water, paid by the Landlord, about $250/quarter overuse and when asked they had said "Of we heard the Toilet running but didn't want to bother you. And yes the kitchen sink is leaking:-(" How to handle this after a Plumber had been called and scheduled ASAP to rectify the problem. So One time charge or include it in the Rent from now on. Folks had different ideas but I'd just as soon have the Tenants decide!
Salem MF had room for Rent increases, Tenants had been there over 6 years and rents could almost double. You picking up a common theme here? Good, Long Term, Tenants tend to have smaller Rent increases.
Rules of Thumb:
DSR - Debt Service Ratio anyone? This is what I use to quickly evaluate a Property to see whether I'm interested or not.
How about you? Cap Rate?
Whatever you use be consistent, otherwise you'll manipulate your numbers so the Rules of Thumb come up favorably, ok so you want it and lean towards it However what happens when you uncover something else like Ground Water, environmental issues, Tough Tenants, hidden water damage. Then you may wish you stu,k to your guidelines Including Reserves and Repairs.
Lincoln's Market Update - On another Blog go 65752348621486
I brought my copy of the State Building Code, (didn't include the International Codes now included) which I'm required to keep with me at all times when I pull a permit with my Builders License. My point was there's a lot to it! I'll have all the Codes (and up to date versions at the next meeting.
By Mike Hurney - Saturday, April 1, 2023
My Property has Sustained Water Damage, so the question is:
"Now what do I do?"
The First thing to do is answer these questions:
*Where did the water come from?
*What caused the water damage?
*Is the water damage covered?
*Do I have the right coverage?
*Do I have enough coverage?
These are the questions that hit us when water damage has occurred. It pays to be prepared!
*Did the water come from the outside into the property or did the water start inside the house and mover out of the stricture?
There are many avenues for water to sneak through, so let's examine some of them. The question of what constitutes a water claim and what constitutes a flood claim creates a great deal of confusion among insureds. Water claims are submitted as flood claims and flood claims are submitted as water claims. Insureds may think "What's the difference and why should I be concerned?" There's a big difference between the two losses. Flood claims require their own policy, whereas water claims are covered under your hazard policy.
"Wind caused a tree limb to break, which in turn broke my window or punctured a hole ij the roof. It was raining and water entered in through the window and soaked my flooring, ceiling and walls. Framing around the windows had been damaged by the tree limb and water" Read More...
By Mike Hurney - Wednesday, March 22, 2023
Partnerships
If you have everything you need to run your business, there’s probably no need for a partnership. A good partnership is created by finding someone that has a gift, talent, or resource that you don’t have.
An example is maybe you are good at finding and acquiring great deals but you need a money partner. Or you are good at repairs but not good at managing tenants.
There’s a little more to consider when seeking a partner. I have had many partners in my real estate business and I have much experience to share that may be helpful in your future endeavors.
When you find someone that seems to be a good fit, check the court records for any civil suits or find out if they have any liens or judgements against them, Depending on how you plan to take title to property, you would not want anything to attach to your deals. Also do a google search to see if there is any bad publicity present. You can’t believe everything on the internet but your customers and associates may see it and pre-judge your business.
I like to spend time with a potential partner by going to dinner, meet at coffee shops or even a baseball game to get to know their c
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By Mike Hurney - Tuesday, February 28, 2023
*Highlights from the Stimulus Bill of 12/20
Senator Portman (R-OH) worked hard to get a deal done on additional COVID-19 relief, and was a key negotiator on housing related issues, especially the Emergency Rental Assistance, detailed below. The bill passed with only a handful of Senators and several Congressmen opposing it. The bipartisan package authorizes a second round of PPP loans for the hardest hit small businesses, additional unemployment benefits, support for health care providers, additional funding for vaccine development and distribution, funding for testing and tracing, and funding for a litany of smaller programs.
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By Mike Hurney - Tuesday, February 28, 2023
It is that time of the year (and oh, what a year it has been) for all the prognostications about what’s going to happen in the new year of 2021. Realtor.com says that anyone who said 2020 was&n
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By Mike Hurney - Tuesday, February 28, 2023
Are Your Properties Ready for Winter?
Outsmarting Jack Frost
By Christian Bryant
Even though the current legislative climate for landlords (especially in Oregon) is very distracting, don’t let it keep you from protecting your property and preparing for winter. If they take the proper steps before winter comes, many landlords will avoid damage, unnecessary after-hours repair expenses, and lawsuits. These expenses can soar up into the tens of thousands of dollars. Next to improvements that will increase rent, and properly managing your tenant, investing in repair and maintenance avoidance will have the largest impact to your long-term bottom line. If you manage your own properties, you really can’t afford to skip these steps. And if you have a professional manager, you need to verify that their weatherization policies and procedures mimic these guidelines. To be as prepared as possible, there are three areas to focus on: the property, the tenants, and your business procedures.
When it comes to preparing your rental property, there are the obvious things like having the gutters cleared from some of the craziest sewer clogs, roofs cleaned, and providing vent and hose bib insulation covers. If you really want to invest in damage prevention due to winter weather, there are many precautions you can take:
- If you live in an area that has prolonged periods of freezing temperatures or your water pipes are exposed
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