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Some things which a property owner (landlord) can take note of when renting out property

1. Get a good “feel” of each other

Landlord-tenant relationships can either be smooth-sailing or extremely rocky. Some tenants may not be familiar with local culture, common market practices or may sometimes have over-expectations in service quality standards. It’s important for both parties to be more understanding, learn a bit about each others positions and differences and hopefully, as they say, “live happily ever after”.

2. Check tenant’s particulars

By law, the landlord is supposed to check and ensure the tenants are not illegally staying in Singapore. This can be easily done by verifying:

(1) with the HR of the company that the tenant is working in,
(2) through ICA,
(3) through MOM.

3. Have a contact list of maintenance personnel ready

Prepare a contact list of regular contractors (or ask for some recommendations from friends), and take note of the brands of appliances in the house and write out a contact list of the companies acting as service agents for these appliances.

4. Be flexible when handling lease proposals and requests

Some tenants may offer higher rental in exchange for additional requirements to the lease package. For instance, giving higher rental, but landlord takes full charge of all repairs and maintenance of the property (instead of implementing a “repair clause”).

5. Do not disturb the tenant

Within the contract (Tenancy Agreement), there’s a specific covenant which clearly states the tenant having full right to the use of the property during the term of lease and landlord shouldn’t “check up” on the tenants, or constantly pop by to inspect the condition of the property.

6. Attend to urgent repairs with urgency

It’s only fair, when urgent repairs are needed, that the tenant (who pays rent promptly) receives assistance as quickly as possible. Some landlords are really busy and the matter may have slipped their mind. One suggestion is to allow your representative agent to handle all the repair matters on your behalf, trusting that as a professional, he will be able to source a fair deal for you. Sometimes, the item may really be beyond economic repair and the only way is to discard and buy new.

7. Take stock of inventory and maintain property in good condition

During the vacancy period, it is advisable to take stock of the items in the house which might need changing soon. So, you can instruct your representative agent to simply proceed if those items break down during the term of the lease – don’t even need to worry about getting quotes for repair, save hassle, save money (inspection quotes may sometimes need to pay for transport charges). Keeping the items in the property in good condition will help to entice tenant to renew lease with you later.

8. Accept the market rate

Although it will be nice to get “above market rate” rental, do work the sums and think of the vacancy period (loss of income) whilst waiting for the offer to come to you. If your property IS higher floor, better view, more well-kept, in a better condition and more newly furnished than other rental units, you should of course ask for higher rental.

9. Keep proper accounts

Always a good practice to keep proper accounts so that you can report to IRAS promptly when they ask you to, and ask them for “discounts” when you can.

Download for free – Rental Income Statement (excel spreadsheet) for reporting to IRAS

* New – Register Subletting of Rooms with HDB

From 1 Feb 2010, flat owners who sub-let rooms in their HDB flats will have to register with HDB within 7 days of doing so. They are also required to notify HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants’ particulars. There is no need to seek prior approval for sub-letting of rooms.

One of the basic lessons of real estate is that it is just as easy to flip a house for $10,000 as it is for $100,000, there is just a few more zero’s there. But the truth is that when you send an email out and you start talking about commercial property, you could almost hear people starting to get a little jittery like they are nervous enough about houses and things like that. Then you couple that with all the bad news about the economy and all the impending real estate foreclosures, so you may ask why now, why the focus on commercial short sales now, what is the big impact that it can have on people?

When you talk about commercial vs. residential, when you buy a 20 unit apartment building, think about 20 houses all under 1 roof. So you are going to get some economy to scale but they pretty much work the same way, you can flip them, you can rehab them, you can option them, you rent them and the nice thing about commercial real estate is unlike houses is you have to keep finding deal after deal to make more money.

The nice thing with commercial real estate is that you can do 1 deal and you can make enough money to live off of for the rest of your life. It doesn’t mean you are going to go out and make millions but you don’t need to hit it out of the park to create 2,3,4,5, or 10 thousand dollars a month of income coming in from the rental only to scale but they pretty much work the same way. Just an average plain vanilla deal will provide that kind of income so it is really worth understanding how it works because unlike how people think it’s really not that complicated.

Many professional fund managers think of property investments as a way of diversifying their portfolio. In simple terms, diversification means putting your eggs in lots of different baskets instead of just one. The thinking behind it is that if one sort of asset class, stocks say, declines then you hope that your losses in that asset will either be offset or ameliorated by the performance of your investments in other assets classes. Traditionally the main form of diversification that investors rely on is to split their money between stocks and government bonds, which are often known as treasuries or gilts. The reason for this is that stocks and bonds often move in opposite directions to one another. When stock markets fall investors often seek safety and drive up the price of bonds. Similarly when stock markets race ahead then many investors move their money out of bonds and into stocks.

Property is usually thought of as a form of asset that fits somewhere between stocks and bonds since it has some characteristics of both. Property prices usually rise or fall more slowly than those of stocks do. This volatility, as it is called, is however higher than it would normally be for government bonds. At the same time investments in property usually produce an annual income, normally known as yield, which is higher than both that produced by bonds and stocks. These characteristics usually encourage most professional investors to put a portion of the money that they manage into property.

The same recommendation is often made for private investors. David Swenson, who manages the Yale endowment fund, suggests that people put about a sixth of their money into commercial property securities known as real estate investment trusts. His argument is that these securities provide some of the growth that investors would hope to get from equities while also diversifying their portfolios. In Britain many people have gone a step further by investing in residential property. Instead of doing this through professionally managed funds many thousands of people have invested directly. This is known as “buy-to-let” in Britain. Despite its popularity it has proved to be a risky strategy with large numbers of people having lost their investments over the past two years because both property prices and average rents have declined.

Commercial Real Estate is commonly defined as real estate with the potential to generate income for the owner of the property. Commercial real estate investments can be broken down into basic asset classes, each with unique set characteristics that address a wide range of investor needs.

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Commercial properties are generally classified by type of use, such as Residential Rental, Office, Industrial, Hospitality, Land, and Retail.

Unlike stocks or bonds, investing in commercial real estate gives investors the opportunity to trade up and reposition a portfolio of investment properties while deferring capital gains taxes through the proper use of a 1031 exchange. This allows an investor to use their gains to build greater value over the course of their lifetime while taking advantage of changing markets.

Each classification of investment properties has specific set of qualities that dictate their potential risk and return. This article will focus on Residential Rental/Housing properties. While the specific details vary, the same approach can be used on all investment properties.

The basic appeal of Residential Rental or Multi Family properties is that we all need to live someplace, regardless of what the economy is doing. Performance of Multi Family investments is driven, as all markets ultimately are, by supply and demand.

Demand for Multi Family is sensitive to expansion or contractions of local population and affordability and desirability of other forms of housing, be it condominium or single family residences. As demographics change (the socio-economic climate of a location) both supply and demand for Multi Family is affected.

For example, over the last several years interest rates have been at historically low, making ownership in single family homes and condominiums attainable to many renters. This has put upward pressure on the supply of single family homes and condominiums while putting downward pressure on rents. As interest rates have risen we are seeing the opposite occur making Multi Family attractive commercial real estate investments because of potential future rent increases.

Some points for consideration in evaluation of a Multi Family investment are:

Location:

The type of neighborhood is a major factor; is it established or new? If the demographic includes children then proximity of schools is significant. Over all, access to churches, synagogues, and convenience of amenities such as shopping and entertainment are major considerations.

Demographics:

Who lives in a particular area and how likely are they to rent? The “who” in the equation is governed by the type and location (commute time) of jobs in the area. The level of income governs the propensity to rent. Generally, the more affluent the less likely renting will be the choice. However in areas such as New York and San Francisco where residential pricing has skyrocketed, many residents don’t have an option and renting may be the only realistic choice.

Economic Cycles:

Most Americans prefer to own and economic cycles clearly influence our ability to do so. Recent history illustrates this concept as low interest rates allowed those who traditionally rent to become home owners. Increased demand for ownership sparked a boom in converting apartments to condos (condo conversions), effectively decreasing the supply of Multi Family properties for investment. As interest rates increase, demand for ownership decreased, forcing the converted apartments back into the rental market.

Market Supply:

Vacancy rates, competing projects, current projects under construction, zoning and possible future zone changes in addition to land available for future competing projects are major factors affecting market supply.

Characteristics of the Actual Site and Building: Proximity to transportation, safety, noise factors, age of building and unit mix (demand factor) are also a significant part of an investor’s evaluation.

Younger investors are attracted to Multi and Single Family investments for the simple reasons that they are most familiar with residential properties (we have all lived in some form of residential property) and the low financial barriers to entry (10% to 20% down payments with generally lower interest rates on debt).

When considering Residential Rental investments it is important to take into account the potential impact on the quality of life of the investor. Historically, successful investors have built their wealth with residential investments; adding value by managing the property themselves. While many younger investors welcome the opportunity to build their net worth by managing rental properties, older investors frequently find the management aspect of Residential Rental investments an unacceptable burden.

It is common for investors to accumulate significant wealth by investing in Multi Family properties in the first half of their lives and then switch to other, less management-intensive forms of commercial real estate as they grow older.

Examples of commercial real estate investments requiring little or no management are triple net lease single tenant properties (Walgreen Drug Stores for example) or Tenants in Common properties.

By using the 1031 exchange investors can diversify their commercial real estate holdings, thus reducing risk, eliminate management responsibility and not infrequently increase their cash flows.

In contrast to many areas looking at a downturn in residential sales due to a lack of consumer confidence, hotspots like Vaughan, Ontario, the “City above Toronto” are actually seeing a ‘seller’s market’ due to fast paced expansion. The city of Vaughan has reshaped itself over the previous 20 years from an agricultural township to a fast paced urban hub of a number of communities with a rustic feel. The population of Vaughan grew 276 percent in the ten year timeframe from 1986 to 2006, and by 2031 there may very be well over 1.5 million residents in the region.

The census numbers from 2006 reveal that Vaughan is bringing in a lot of young residents, with 81 percent of the city under 55 years old with a median age of 35.9 years, which is significantly smaller than the 39 year-old average for Ontario. Even though up to 65% of the houses in Vaughan are single-family detached buildings, high end multiple-row houses and apartment condominium are increasingly more popular, based on research by the York Region Planning Department.

The median household income is 31 percent above the national average, as a result Vaughan real estate ranges more than the average price of residences in Toronto.The spin-off of this can also be felt in Markham homes for sale as well which has also seen a rise in demand from home buyers and is welcome news for sellers.

One of the more popular attractions of Vaughan real estate is how close it is to Toronto’s services, however without the hustle and bustle of an urban center. Purchasers are also attracted by the emphasis on public green areas set amid As opposed to many ‘bedroom communities,’ Vaughan has plenty daycare and health care services — including a new regional hospital — and high end shopping centers, restaurants and well-maintained public recreational facilities.

As the population in Vaughan has increased, the infrastructure has kept up with the demand for access to Toronto for the daily traveler, and there is an impressive grid of four lane streets that connect the highways and toll roads to city streets and thoroughfares. The local Viva bus system has a fleet of stylish Van Hool buses that connect transportation providers at the ‘Vivastation’ which features new ticket machines and ‘smart’ monitor to inform passengers of all departures. The Greater Toronto Transit Authority, known as as GOT, supplies rush hour commuter trains for stops in Vaughan and the Toronto Transit Commission (TTC) has bus routes that connect to subways and RT stations in Toronto.

Another rationale for the Vaughan real estate rise is the amount of land still procurable for development. Because Toronto has such a tightly packed population, there are less occasions to custom build houses and estates in the immediate area. The wide open areas also demonstrate there is potential to develop new attractions like the Canada’s Wonderland theme park located in Maple, one of Vaughan’s districts, that brings in a wide range of visitors to boost the local economy.

A few of these open spaces are zoned as agricultural land and there is some worry that soon it will all be developed The additional communities that make up the city of Vaughan are Woodbridge, Klienburg, Markham, Concord and a part of Thornhill. The extraordinary flavor of each area is a result of the blending of older family properties, upscale master-planned areas and multi-family homes that are combined with industrial sections and retail centers.

The market is always in flux and Stefan Hyross is a writer for both Vaughan real estate in addition to keeping track of the property market in general. If you are intent on finding out more or would like to explore Markham homes for sale please visit the website.

We all know that first impression last, it is the point of make or break-therefore, as a realtor you must always find ways to instill the images of your real estate in your clients mind for them to be lured into purchasing it.

Marketing strategies are not limited to just the person who is selling it-that means you-the realtor. But it also includes your marketing strategy as well the product that you are marketing. So if you are selling a real estate, like a house, always make sure that your clients see the best side of it and let their minds wander how it would be like living in your home.

Here are a few easy things that you can do to make your real estate a show stopper!

1. Always make the front lawn looking clean. Haven’t you noticed how your eyes get fixed into a lawn that looks just like in the pictures? This type of image is always in the minds of any buyer and therefore, it is best to feed their minds with the image they chose to see.

2. Fix the spots on the lawn that needs to be repaired. This makes the lawn more enticing for the buyers.

3. Repaint or retouch the house paint job. Always make sure that paint jobs of the house are done and that the house looks new.

4. Check the house walls as well as cabinets for any paint problems such as cracks and chipping off.

5. Organize the things and the furniture’s inside as well as outside the house. If your house has a backyard, make sure that things-like toys and grill stuff are well kept and organized. Don’t just limit yourself on the front lawn as buyers will search your house inside and out.

6. Make sure that screens and glass panels are clean and spotless.

7. Lighting of the house must also be adequate. Be sure that all bulbs and light switches are working.

8. Sockets must have no rust as well as other hazard things like loose wirings.

9. Doors and cabinets must be free from squeaking noise-this is totally irritating.

10. Curtains, coaches and throw pillows must be free of dust. There are buyers who are very meticulous and some are hypersensitive. You wouldn’t want to trigger an allergy as they set in, since this will certainly irritate them and want to leave instead of looking into the house.

11. Keep the bathroom floor free of water and make sure it smells and looks clean. It is said that you will know the persons hygiene by looking at the person’s bathroom. So make a good impression not just for your house but for yourself as well.

12. Let a good and clean smell linger around your house. It may not seem much, but a great smelling house will always have a good effect of relaxing the mind and body which might make your clients feel more at home.

With the dozen tips that is lined for you, you will certainly be a show stopper and without much ado, you will be able to give a lasting and luring first impression that no client will be able to resist. Beat the raise and be on top and gear up your chances for a successful sale.

There’s good news for the Houston real estate market. According to the Houston Association of Realtors(R), the amount of single-family homes that closed in March 2010 was 11% higher than those in March 2009. This included the Kingwood, Atascocita/Humble and southeast Montgomery County (which experienced a whopping 17.4% increase).

Active listings have also received a dramatic increase over the same numbers as last year. The Atascocita/Humble and Kingwood areas both saw a 10% increase in active listings while the southeast Montgomery County market experienced a 7% increase from the same time last year.

Although the home buyer’s tax credit has been responsible for some of the increase, it is not the only reason that the Houston market is experiencing an influx of homebuyers. In the past, typical homebuyers relocating to the Houston real estate market have done so due to a job transfer. However, since companies are downsizing their relocation packages or cutting them out altogether, the people relocating to the Houston area are oftentimes settling in the area because they have found it to be a wonderful place to raise a family and a prosperous place to live.

HAR’s March report also indicated that home values are beginning to increase. Overall, the median home value in the Houston area has increased 6% over March 2009′s statistics. While Kingwood experienced a modest 2.4% gain, the southeast Montgomery County area saw an astounding 28% gain in its median home values. It appeared that the only area to see a decrease was in the Atascocita/Humble area. But that decrease was only slight (3.5%). It appears that the first time homebuyers who have been taking advantage of that tax credit by scooping up the lower priced homes has caused the median home values to dip slightly. The Atascocita/Humble area still remains one of the fastest-growing areas in all of Texas.

Keller Williams Realty Northeast is one of the fastest-growing real estate companies in America for good reason. It is our people and culture that set us apart from other real estate firms. We want to help you find the best Kingwood home for you. To learn more about Keller Williams Realty Northeast, please visit our website at http://www.clickkwne.com. We’d love to help you with your Kingwood real estate needs.