Raanan Katz RK Centers Miami

Raanan Katz on Miami Commercial Real Estate

Top 5 Tips For Becoming a Landlord

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Top 5 Tips for Becoming a Landlord - raanan karz

With today’s housing market in a sharp decline, most people are finding that renting has become a better alternative for them. To take advantage of such a spike in the rental market, there are steps one can take to not only becoming a landlord but becoming a great landlord.

  • Know the law

If you are going to become a landlord, you absolutely must be aware of what the laws are specific to your state and how they affect you as a landlord. You need to know the laws regarding security deposits, how much notice to provide before entering a premises, and even what your rights as a landlord are. In addition to state specific laws, you’ll also have to be aware of laws that are put in place by the federal government. These laws mostly are concerned with fair housing and anti-discrimination laws.

  • Research your prospective tenants

This cannot be stressed enough. If you have prospective tenants applying for apartments, you will want to make sure that you’re picking responsible tenants who will pay their rent on time because, ultimately, this is a business (more on that later). A good rule of thumb when screening your prospective tenants is to focus on income levels, if there are any prior evictions, that they have good references, and that they generally have a clean background. By doing your research, you’ll have the best tenants possible residing in your unit(s) and can start the tenant-landlord relationship off on the right foot.

  • Respect is key

Once you’ve filled your unit(s) with tenants, you may find that you don’t “jive” with them on a personal level after all. No matter your personal feelings towards them after renting to them, if they prove that they are able to pay their rent in a timely manner, are decent tenants, and aren’t causing damage to your property, then you should afford them the same respect that you would desire they give to you. If there isn’t mutual respect in the tenant-landlord relationship, there will be disputes about small details that come along far too often and it could negatively affect future tenants if your current tenants pass on the “bad review”. Reputation always plays a factor into being a landlord. So, you want to ensure that your reputation isn’t tarnished but instead shines when prospective renters are searching for their next homes.

  • This is a business, not a hobby

All too often, the reason that most landlords fail is because they try to be the “cool” landlord who allows tenants to, essentially, do whatever they want. Landlords need to remember that this is their business. It’s not a fun hobby that they can pick up and drop whenever they want. There are property taxes involved as well as insurance for the unit(s), and obviously preparing the unit(s) for the tenants. Landlords invest a large sum of money into a property before they are able to even rent it out. You need to remember that, bottom line, you must have a return on your investment. Otherwise, you will always be in the red.

  • Forget about getting “rich quick”

As previously mentioned, being a landlord boils down to remembering that it is a business. If you’re expecting to make copious amounts of money rather quickly, you should perhaps select a different career journey to go on. There are always the upfront costs but there are also the costs of maintaining a unit or a building. There are plenty of strategies for investment available, you simply need to find the one that suits your needs and your resources.

 

Becoming a landlord is not necessarily a difficult thing to do. It just takes a good investment strategy, a firm understanding about rental laws in your state and at the federal level and, most of all, patience. Be patient with your tenants when they have requests regarding their unit(s). Be patient and know that you may not have a large return in your first year. Lastly, be patient with yourself and trust that, after all your research and preparation, you can succeed at becoming a great landlord.

Misconceptions About Working in the Real Estate Industry

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Misconceptions about working in the real estate industry

The real estate industry is one of those industries where there is a lot of potential to be very successful and make a great living. However, there are many misconceptions about working in this field for a variety of reasons. One reason could be that the whole process of buying and selling a home can seem complicated and somewhat of a mystery to those who unfamiliar with it. There’s also the way agents are depicted on television which is typically meant for entertainment but at the same time gives off the wrong impression about the job as a whole. To clear things up a bit, here are some of the misconceptions about working in the real estate industry.

 

This job is easy

This is a very common misconception out there as most people see the job as simply showing people houses or apartments and then selling them. However, there is so much more work put into it that the job almost seems a bit undervalued. Some of the daily challenges that agents face are marketing “not so marketable” properties, managing a huge client database and supervising heated negotiations, and this is all on top of the stress that comes from a commission-based income in a pretty unstable market.

 

You will make a lot of money

This is another common misconception with the job, and while it is true that the earning potential is great, sadly it is not the case for everyone. One has to realize that the average commission is six percent of the total sale price and then that commission is split between both the buyer and seller’s agent and then they each must split that with their brokers. On top of that, most agents are essentially working for free until that payout. So before they receive that big payout in the end, they would have already been working for months without a regular paycheck.

 

You will have a pretty flexible schedule

While it is true that most agents are not required to work the typical 9-5 schedule Monday through Friday, that doesn’t mean that they can simply abandon their office at will, or go on vacation at a moment’s notice. You have to remember that you are working with your clients and sometimes will have to cater to their schedules as well. You will have buyers who are constantly wanting an immediate showing of a new listing and then there will be sellers who want you constantly monitor leads. So while it is true you can choose how flexible you want to be, you have to take into consideration the needs of your clients and be available when necessary.

Ways to Prepare Your Home For An Appraisal

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Ways To Prepare Your Home For An Appraisal

Hot weather conditions, such as it is in Florida, can lead to faster deterioration of housing and the foundations they sit on. Heat causes ground shrinkage that can split concrete and unsettle the foundation, not to mention the wear and tear on air conditioning units from overuse. Fortunately, there are ways of delaying long-term damage particularly if a person is having a home appraisal done. Home appraisals are required in order to sell or even refinance for that matter. With that being said, it is essential to prepare your home ahead of time. Expert appraisers will tell you that there are a few things one can do to maximize the value of a home.

 

One of the first things to consider is finding an appraiser that’s been in the industry for a long time, has a good comprehension of the territory and is state certified. An appraiser with these attributes will be able to better detect market trends and changes. Curb appeal is also a significant factor in attaining home worth. Clean up any clutter, trash, weeds and any dead or browning plants. You want the yard to be as green and vibrant as possible. Cutting the grass right before is a great trick as it will not only be more pleasing to the eye but also have that just cut smell. Nice landscaping will lead to a positive and significant lasting impression.

 

Another great tip is to make sure all appliances, doors, doorknobs, windows, screens, carpet, light switches and fixtures, plumbing and other items are in good working condition. This should be done even if you have to hire a service repairman. It is worth the effort to fix any chipped or peeling paint. Leaky faucets should also be repaired. Damaged items will dramatically devalue your property because the appraiser will compare it to houses that are actually more aged than yours is. Having a list of repairs and replacements you have made throughout the years is helpful. List the costs next to the repair or have receipts attached. Provide the appraiser with any land surveys as well.

 

Ensure all areas of the home are accessible especially the attic and crawl spaces. Property value is determined through a complex analysis of information including size, condition, comparable sales of other homes in the area, location and how close the home is to vendors and other resources. Appraisers are generally unbiased, but it can’t hurt to make their visit a pleasant one. The temperature of your house should be comfortable, all pets should be secure, and the house should be clean and organized. Performing these tasks ahead of time will increase your chances of a higher home assessment value.