Infotube.net: Homes for Sale - For Sale By Owner (FSBO) - Real Estate Listings

At InfoTube.net, we strive to help home owners sell their property, whether it is listed by owner or listed with an agent.  Sellers, who can afford the luxury of a full service real estate agents, often get less expertise and help than they deserve and pay for. 

6 Ways to Determine that you Hired a Crummy Realtor or Real Estate Agent:

1. Bad Behavior:   Each state has a real estate association that moniters agent behavior and tracks compliants.   Check the agents record before you hire them.  If you are already working with an agent that you suspect has acted in an ethical or unlawfile manner, contact your state association to review compliants from previous customers.   The state association also tracks criminal behavior by agents.
2. Part-Timers:   If you are willing to pay thousands of dollars in fee’s to a real estate agent, make sure they aren’t a waiter in real life.   Just because an agent is licensed, it doesn’t mean real estate is their full-time job.   Insist on a seasoned, full-time agent, before you give up six percent of your sales price.  The 6 percent real estate monopoly means they all charge the same amount to sell a home, so hire a pro.
3. No Contact:   When you are spending big bucks to sell your home by agent, instant communication is a “must do”.   If your agent doesn’t return calls in a timely manner, use email, or they have only one contact number…the relationship won’t work.    The last thing a seller needs in a bad market is to find they lost a buyer to the competition because no one could reach the listing agent.
4. Insists You Use Their Partners:  Realtors who insist or push a particular lender, inspector, title company, mover or lawyer, are likely receiving “kick backs” and making undisclosed money.   Agents scamming a referral fee should send up a huge red flag.  It’s your money, so you should use the services of whoever you want in your transaction.
5. Clueless:  Good Realtors are not the shy, quiet type.  They are sales people and they are full of advice.  If your agent makes no suggestions about improvements, drippy faucets or something…they are probably not fully engaged in selling property.  If they don’t firmly recommended a sales price and have facts to back it up, they probably don’t have the experience, confidence or personality to get the job done.
6. Push In House Listings:  Some real estate brokerages hold listings “in house” for some time, giving their company a chance to “double dip” and earn both the listing and selling commission.   Avoid brokerages who push in house listings and Insist that your property be placed on the MLS immediately upon signing of the listing agreement.    This questionable business practice is also known as a “pocket listing”.  Agents who pocket list harm buyers by limiting the inventory they can select from, and cost sellers time and money by limiting their exposure to all buyers in the market and increasing the odds the listing will look stale, once it is placed on the MLS.

InfoTube.net has thousands of home listed for sale by owner and by agent.  Search our database of fresh listings today and if you want the advantage of the MLS without paying 6 percent of your sales price in fee’s, get a low, flat fee MLS and sell today for thousands less.

Thanks for visiting InfoTube.net and good luck on the sale or purchase of your home

“Should I buy or rent??” is question people are asking themselves a lot these days.   The answer can often be found by using the Real Estate Rule of 15.

Here is how the Rule of 15 works for real estate investors:

1. Determine the rental rates for the area you are interested in.   Rental rates can be found at Zillow, Trulia or a new fun website Rentometer.
2. Calculate how much you would pay in rent for one year.  (Example:  $1000/month x 12 = $12,000/yr)
3. Multiple the annual rent by 15.  (In our example, $12,000/year x 15 = $180,000.
4. Look up and compare the asking prices of comparable properties in the same area.
5. If the sales prices in the area are higher than the annual rent times 15, the location is still over priced for the market and prices will continue to fall.  In other words, keep renting and banking cash.
6. If the sales prices of homes in the area are lower than your annual rent times 15, the market has probably gone through most of the bust cycle and if may be safe to step in and buy.

If you want to dip into your local housing market, make sure you do the research before you buy.  There is a lot of inventory to consider, including a vast pool of foreclosures and distressed property.  The best advise is to proceed, but do so with caution and all the facts.

Thank you for visiting InfoTube.net.  Don’t forget about our new video uploads .  It easy and fun to create a virtual open house for your home.  With our free Youtube uploads it also means you attract a whole new audience of home shoppers.

Show and Sell!!

Real Estate

Asheville, NC - (August 5, 2008) –Crow Erickson Inc, the leading manufacturer of outdoor marketing materials for real estate agents, home builders and individual home sellers announced today that www.infotube.net has been enhanced to include “do-it-yourself” video tours of homes for sale. 

Today’s announcement is the latest example of how InfoTube.net is investing in new technology to assist home sellers in today’s market place. 

“Our new video service, with free uploads to YouTube.com, creates a fantastic opportunity for home sellers, real estate agents and home builders to expose their property to a world wide audience,” said Tommi Crow, Founder and President of Crow Erickson, Inc.   “Our technology, combined with the power of Youtube.com, makes it easier than ever to create a video home tour that is accessible from anywhere.”

While it is not news that 80% of would-be homebuyers start their search for a home on the internet, the practice of using video to view real estate is just beginning to boom.  Unlike still photographs or 360-degree tours, video clips add a personal touch that helps home shoppers decide which home might be right for them.  “Our videos are an actual walk-through of the property, just like you were walking through the home yourself,” said Crow.  “The content is user generated and often features scenes from the neighborhood and town, too.  Each video is unique and has a personality all its own, which can really make the task of home screening a lot quicker and more fun.”

Only a small fraction of home sellers and real estate agents take advantage of the marketing potential that video brings to an entirely new audience.   As Crow explained: “While video tours won’t replace seeing a home in person, they certainly provide an exciting opportunity to capture the attention of an elusive creature…today’s homebuyer.  InfoTube is excited to be a part of this powerful, new trend in marketing homes.”

 About Crow

The September issue of Consumer Reports magazine has some great news for home sellers.    Haggle on the real estate commission before you sign a listing agreement.  

The 3 year study released Monday by the respected, non-profit group found that:

• 71% of home sellers were successful in getting the agent to reduce their fee. 
• Seller’s who paid a 3% commission were just as satisfied with the job performance as those who paid the “traditional” 6% fee.  
• Seller’s who paid the most commission, ironically had the most regrets about their selling experience.  
• Nearly one-third of home sellers said they should have been more aggressive when negotiating the commission they were charged.
• Over half of the 9141 polled responders reported they paid less than a 6 percent commission to sell their home by agent.
• Re/Max and independant brokers were more willing to deal and lower their fee’s.   77 percent of sellers who listed with these firms reported that they cut the commission.
• 67 percent of Keller Williams, Prudential and Century 21 agents agreed to lower their fee’s, when ask.  While only 64% of Coldwell Banker agents lowered theirs in response to the seller’s request.
• According to Consumer Reports, “We found that paying an agent a lower commission rarely had any effect on the sales price.” 
• 82 percent of respondents sold with the help of an agent, and received an average price of $5000 below the asking price. 
• 17 percent of respondents sold their home without an agent, and they reported receiving roughly the asking price for their homes. 
• A shocking fact was also revealed in this report.  Only 46 percent of home sellers attempted to negotiate the fee at all. 

In conclusion, if cutting the costs of sell your home is important, it pays to haggle, negotiate or walk away if you are not successful in getting an agent to reduce their commission.    Nearly all Agents will cut their fee’s or you can easily find one who will . 

Another alternative for sellers in tough times, list on the MLS , act as your own agent and save a bundle of cash.

Thanks for checking in with www.infotube.net .  We appreciate your business, feedback and questions.

InfoTube.net launches “Do-It-Yourself” Home Video Tours starting Monday, August 4, 2008, as a part of our Featured Home Ad program.

Our goal with video is to drive buyer traffic and provide another avenue for seller’s to reach the largest audience possible.   We will also automatically distributed all video’s to YouTube.com, as a part of our service.

Grab your digital camera or phone this weekend and create a movie about your property, neighborhood and home town.   Video’s are easy to make and a lot of fun to watch.   Best of all, today’s tech savvy home shoppers love video’s!! 

Lights, camera, action, InfoTube.  Let’s Show and Sell.

Thanks for visiting www.infotube.net and best of luck on your home sale.

Children or Not… A big part of determining “location, location, location”, is the quality of the school district. 

Often, a school’s report card, actually determines the locations a buyer would consider moving to.   And, for sellers living in a good school district, the schools are essentially an invisible upgrade can make the difference between For Sale and Sold.

With a new school year rapidly approaching, check out ratings for over 120,000 school districts at GreatSchools.net.

GreatSchools was founded by a former teacher, as a free resource for people concerned about education.   And, it has evolved into a great resource for real estate investors, too.

Greatschools offers comprehensive profiles for thousands of schools.  Profiles include exclusive ratings, parent reviews, powerful search and compare tools, helpful advise and an online library with hundreds of articles that help parents navigate the K-12 process.

Thank you for visiting www.infotube.net and best of luck on the sale of purchase of your property.

The National Association of Realtors reports that 30%-40% of all homes currently on the market are foreclosures, bank owned or distressed property.    For the average home seller, that means a lot of competition from banks and lenders when they sell their home. 

While this fact may seem dire on the surface, smart home sellers see the silver lining.  The successful have learned to use the vacant, abandoned foreclosure home as a tool to sell their well-loved and cared for home.  

Smart Sellers Know:

The Comparable Sales Data for all competing homes on the market in their area because banks don’t do give aways.   Sales facts can quickly dispell the misguided shopper who believes they can purchase a Mac Mansion for $50,000. 

• Contrary to the “Buy a Foreclosure and Get-Rich-Quick” late night infomercials, buying a foreclosure is usually no bargain unless the home is a dog, or medicore property at best.  
• Banks list homes that are in good locations and condition near the full market value, so the upside is extremely limited.  The lender typically recoops their investment and the costs of the foreclosure sale, when the property is sold.  Many buyers falsely believe that foreclosures are deals of the century.   For the most part, they are certainly not.

Smart Sellers Know:

To make all home information readily available to buyers because foreclosures are a crap shoot.   This includes warranties, guarantee’s for work done, appliance and equipment manuals, details about workmanship and home improvements.  Utility bills and a list of contractors who have performed work or maintanence should also be prominently displayed for the buyer on the first showing. 

• Foreclosures are sold as ”Buyer Beware” properties.  In other words, the Seller has no knowledge about the property or its condition, and full responsiblity for purchase lies with the buyer.
• Lenders are exempt from disclosure laws that alert buyers to home defects and problems.    Meaning that the lenders often have no knowledge about the property and have no duty to disclose major problems, even if they are aware of them.

Smart Sellers Know:

Their home should be “in move” in condition because foreclosures certainly aren’t.   All repairs and maintenance should be done before the buyers inspection.   The home is free of clutter, freshly painted, landscaped and shows a geniune “pride of ownership”.

• Abandoned, unkept foreclosed homes often sit vacant on the market for months.  They are overrun with weeds, dirt, vermin, and are as a whole, disgusting to imagine oneself living in.
• Foreclosures are sold “As Is”.  The buyer can not ask the lender to pay for basic repairs.
• Many foreclosures are complete wrecks.   The homes have been stripped, vandalized and abused.   Buying a neglected home is a gamble at best.
• Most foreclosures can’t be properly inspected, if at all.  The power and water is disconnected.  Hidden water pipes were probably exposed to freezing temperatures last winter.   Cluelessly buying anything , especially foreclosures that offer no legal recourse or seller responsiblity, are deals for those with experience and high risk tolerance only.
• Foreclosure buyers usually spend $400-$600 for a limited home inspection, just to find that the repair list is more terrifying than a late night horror flick.   When the lender refuses to fix problems, the buyer walks the deal.  The buyer is back on the street and the money paid for the worthless inspection is gone.

Smart Sellers Know:

To make the purchase of their home very certain, quick and easy for the buyer.   A “No Brainer”, if you will.  

• Only 1 in 10 offers made to banks and lenders ever makes it to the closing table.   If a buyer needs a home to live in, odds are, a foreclosure won’t work.
• There is always a problem getting accurate information about a foreclosure.  There could be liens, judgements or more than one note or deed of trust.   If buyers don’t know exactly what they are doing, they can lose their shirt.
• Buyers have to deal with mounds of paperwork when buying a foreclosure.  Most of the added legalise pertains to covering the tail of the lender.
• Buyer can not usually designate a closing attorney or title company to work with. 
• Buyers often wait months to close on a foreclosure.   Contrary to common sense, lenders are in no real hurry to get deals done.  Weeks can pass before questions are answered or contract terms are addressed.  Buyers can count on additional problems with legal work, title insurance, appraisals and financing.  If time to possession is important, buyers would be well advised to avoid bank deals entirely.

While competing against banks to sell your home can be a challenge, smart seller realize that the sword cuts both ways.   Home buyers are not investors.  They buy a home from the heart.   

If you need to sell your home, show a little love for the ole ”Home Sweet Home”.  The bank won’t stand a chance.

Thank you for visiting www.infotube.net.  

This link compiles various news articles about the latest housing numbers, conveniently located in one place.    

A CNBC report, which is included here, states that from 30%-40% of all homes currently for sale are bank-owned or are in the process of foreclosure.

Our next blog post will address competing with the bank to sell your home and winning.   Homeowners have distinct advantages, so please check back in with www.infotube.net/blog.

Thank you!

News Flash:   The housing slow down has a big upside.   Homeownership is now within the reach of millions of Americans who previously found themselves priced out of the real estate market

Today’s reduced home prices, combined with low interest rates, mean that many of you who believed homeownership was out of your grasp, now find that you can well afford a home to call your own.

So, with the ecomonic stars aligned in your favor, is the now the right time to jump in the market and buy a home for your family?    

To find the answer, ask yourself the following 4 questions.   If your answer is “YES”… NOW is Your Time.

1. Will homeownership save you money on taxes?   Property taxes and mortgage interest are fully deductible in 2008, meaning that Uncle Sam pays part of your mortgage for you.   Ask your accountant how much money you will save, if you own a home versus renting one.
2. Would you like to lock in your monthly housing expenses?    Buying a home, with an affordable fixed payment, eliminates the uncertainty of rising rents in the future.    (Caution:  Remember that mortgage payments stay the same.  Taxes, homeowners dues and insurance are always subject to change.)  If setting a limit on future housing expense is important to you, then buying a home and locking in your monthly payment is the answer.
3. Will owning a home improve your lifestyle?   Homeownership is a wonderful thing.    In addition to building equity, nothing provides a sense of peace and well being like ownership does.  If you enjoy your own style, privacy, working around the house, having additional space or a pet, ownership is the only way to go.   
4. Would you be OK with breaking even?   Buying a home is not an investment.   It is where you live, and, you have to live somewhere.   While the possibility of making money on a home is great, there are no guarantee’s.   If you were to sell in 2-3 years, would it be OK, if you only got your money back???    

If you answered “YES” to the four questions above, then you should seriously consider the opportunity you now have to buy and finance a home for a low price.

After all, if renting is so great…why does your landlord own???

Unless you were alive when Herbert Hoover was sitting in the oval office, this is probably the worst home selling market you have ever experienced.   

Certainly, things are not horrible everywhere.  Charlotte, NC and Rochester, NY are holding on, but elsewhere, housing sales and prices are still falling, while inventories are growing.    

So, what should you do if life circumstances dictate that you MUST SELL your home in this market?  What actions can you take to beat out your competition??    Yes, the situation is painful.  But, if you have to sell, InfoTube can help.

5 Tips to Help You Sell, When you Have To Sell:

1. Don’t Spend Money.

Your house needs to make a good impression on buyers, but DO NOT spend money on big ticket items or home improvements.   Focus your attention and budget on a new paint job, deep cleaning and a lot of sprucing up.   But, absolutely, make all repairs.  

     2.    Don’t Sit on the Sidelines.

If you have to sell, now is the time.   Don’t make the mistake of hanging on, hoping prices will improve any time soon.   They won’t.   I expect another year to pass before we see any bottom in pricing.  Forget the market timing approach and put your home up for sale today.

     3.    Get Real.

Separate your emotional attachment to your home from your family’s financial best interests.  Selling a home is strictly business and should be treated as such.  

Don’t forget that smart home shoppers read the news.   Buyers expect a bargain, so give them one.  Don’t make the mistake of letting the house languish on the market.  Set a realistic price target for your home from the beginning.  Better yet, crush your competition and price your home 5%-10% below theirs.  Forget about pre-crash appraisals or the sticker price for those custom upgrades, those comparisons won’t fly, so don’t try it.

    4.    Early to Bed.  Early to Rise.  Advertise. Advertise. Advertise… Ray Crock

Whether your home is for sale by owner or by agent, you need to be active in the promotion of your property.   Your home should be advertised in the local classifieds, company newsletters, church bulletins, university or employee bulletin boards, bill boards or anywhere buyers are looking.

While local print advertising is important, don’t forget the power of the internet.   90% of all buyers begin their search for a home on the world wide web.    The internet is also the only means of effectively reaching out of the area shoppers and those from foreign countries.

Whether you are selling by agent or owner, take advantage of websites such as InfoTube.net, which offer a free home listing web page with photo’s.  Infotube.net also uploads its home listings to other websites and search engines, leaving a lot less work for you to do.   Other websites, such as craigslist also offer home listing services and should be utilized in your sales efforts.

Contact Why 6%.  Why 6% will guarantee that your home listing appears on all Realtor owned web sites, even if you are selling your home by owner.   The company also uploads home listing information to the local MLS, Realtor.com, Zillow, Trulia, Cyberhomes and others, in one easy step. 

     5.   Accept the Offer

If you need to sell now, you would be well advised to accept any reasonable offer from a qualified buyer.   It is easy to determine what “reasonable” is.  Ask your agent for comp’s or just review the asking and selling prices for your neighborhood on a website such as Zillow. 

If the first offer is low, but reasonable, you can negotiate, but remember the buyer has more power now.  Don’t blow a sale arguing over a few dollars.  Your home is only worth what someone will pay for it, which might be far less than what you think your home is worth. 

Best advise:  If the buyer makes an offer that is close, don’t counteroffer.  Sign the contract on the spot and congratulate yourself on nailing down one of the few buyers out there these days.  

   Thank you for visiting InfoTube.net.  Have a great weekend and best of luck on the sale of your property.

A frequent topic of lunch and dinner conversations these days is whether or not it is a good time to invest in real estate.    And, the answer to that question is “It Depends”.

“It depends”… on what time and investment mean.    

If you are attempting to time the market, you are actually speculating that price levels have reached a bottom and  that they will go higher in the near future.   While buying on price speculation is fine and can be highly profitable, smart speculator’s realize it is also risky.   Since no one truly knows the exact time that property values will reach their lowest level, smart speculators should gamble only with money they can afford to lose.

Investment, on the other hand, is analyzing each situation or property on its own merit to determine a good value.   And, while no one wants to pay too much money for a property, timing the exact lowest price point isn’t what the investor is focused on. 

So, what is the investor looking for??  What determines a good real estate investment??   

Many people believe that their home is an investment.   It can be, but it is probably not.  Unless you plan to rent out rooms, or use your house in a way that generates more income than expenses, it is not an investment.  It is where you live.

The only way to determine investment versus speculation, is to look what the property would rent for versus the cost to own it.   If the property would easily rent for more than the monthly mortgage, taxes, insurance and expenses, it qualifies as an investment.    If the monthly costs exceed the rental income, then the buyer is speculating and paying a premium to own the home.

Bottom Line:  Rent equals Value. 

If you’re a value shopper looking to purchase a home as an investment, don’t buy a property, if you could rent it for less money.   While buying a home from the heart is fine, remember that anything you pay above the market rent is not an investment.  It is speculation or self-indulgence.

The next time the dinner conversation turns to real estate investment, impress your friends and explain the difference between investment and speculation… 

Will they understand….it depends.

Thank you for visiting InfoTube.net.   If your dinner conversation happens to turn to real estate, please tell your friends about us.  We really appreciate it.

Average Days on Market

Source: Altos Research & Real IQ

In today’s tight credit market, obtaining approval for financing BEFORE shopping for a home is a crucial step that borrowers must take.   Sellers and buyers are familiar with the phrase Pre-approved” or “Pre-qualified” for a loan.  Many of us assume they mean the same thing.  They don’t.  There is a huge difference between the two terms. 

Pre-Qualification:  Pre-qualification is not a loan commitment, it is a quick indication of whether a borrower should qualify for a loan or not, based solely upon the opinion of a loan officer.  With a pre-qualify situation, the loan officer peeks at the borrowers finances, pay stub and credit report and estimates the approximate amount of a mortgage that the buyer should be able to qualify for. 

The loan officer will usually issue a “pre-qualification” letter or certificate which indicates the borrowers finances have been reviewed and that it appears they could qualify for a mortgage loan.   It is not a guarantee that the borrower will actually be able to get a loan.

• It is easy to determine if you have received a “pre-qualification” letter.  If you have not signed an application and/or you have just given information over the phone…your approval is nothing more than an estimate or opinion made by a loan officer.
• If you have not paid non-refundable fee’s along with the signed application, you have not received a loan commitment by the lender.
• Pre-Qualifications should not be taken seriously by borrower or seller.   Pretty much anyone can get the favorable opinion of a loan officer these days, as they are paid only on commission.

Pre-Approval:  In the case of pre-approval, the borrower actually applies for a loan.  Pre-approval is a written commitment by the lender, not a loan officer, which states the specific amount of money the applicant is qualified to borrow.  Pre-approval involves a loan underwriter and takes some time to complete.  The file contains a detailed credit report, income and down payment verification, along with a confirmation that the borrower has the ability to pay closing costs.   

• If you have met your lender in person, completed an application and paid fee’s, you have started the process to become pre-approved for a loan.
• A letter of pre-approval states a maximum amount of money the borrower can obtain financing for.
• The property address will be added to the loan application and the appraisal will be ordered, once the borrower locates a property.
• The borrowers’ bank and employer will be contacted and the information submitted on the loan application will be verified.

 In Conclusion:

Unfortunately for seller and buyer, the terms pre-qualified and pre-approved are not interchangeable.  The difference between the two terms causes a great deal of confusion and problems.  

Please keep in mind that neither is a guarantee that a mortgage will be issued.  The home must qualify, too.  But, a borrower that is pre-approved for a loan, is the only type of buyer a seller should take seriously.  

    Finding and keeping good tenants is top priority for any property manager and landlord.   A good tenant is money in the bank.  They pay on time and you don’t hear from them for another 30 days.  On the other hand, a bad tenant can be nightmare that you can’t wake up from.

As a real estate professional, I have managed my own properties and those of my clients.  During that time, I learned a lot about the value of fostering good relationships and the importance of a well thought out lease agreement.  

 A good lease recognizes potential problems or events where misunderstandings can occur.  It spells out in pure language what the remedies and expectations are for both parties.  Remember that a good lease can make life a lot easier for landlord and tenant.  If you do not have a lease agreement, you can get a free copy of a residential lease by clicking here.

Please review the following idea’s and topics for successful landlord/tenant relations.  Consider adding any clauses to your lease that clarify confusion about expectations or address situations that may leave room for interuptation.

1. Get Paid on Time:   Obviously, leasing property is a business and the landlord needs to be paid.   A positive way to encourage on time payment is to offer a discount of $25-$35 for rent paid on or by the 1st.   Also, include a $25-$35 late penalty clause for rents received after the 5th.
2. Cut Repair Expense and Calls:   Charge a $50 deductible for all repair calls.    I have found this invaluable in getting small things done by the tenant versus having to call a repair man to fix a minor item.
3. Repair and Maintenance Clause:  Specify that the landlord is not responsible for damage or repairs caused by the tenant.   (This clause saved me $100 last month for a garbage disposal failure that resulted from woody flower stems that clogged my disposer.)  In addition, spell out expectations for lawn and shrub care, trash removal, etc that the tenant is responsible for.  Include all remedies and charges for non-compliance in writing.  (If your home has central heat and air, provide the appropriate number of filters for the rental term and advise the tenant in writing about the schedule for changing the filters.)
4. Occupancy Clause:  State the number of tenants that can live at the property.   Insert a $50 per month charge for each occupant over the maximum number agreed to in the lease.   The number of people on your property affect the wear and tear, utilities, etc.   Make the tenant understand that if you rent to 2 people and 3 live there, then the rent goes up.
5. Pets:   If you agree to accept pets, describe and specify the pets you are allowing on the property.  Include a $50 per month rent increase for any additional pets that were not a part of the original lease agreement.   (Note:  If you rent to people with pets, always get a separate, additional deposit for the pet.  Pet deposits are not a part of the property security deposit.
6. Security Deposit:   Ask for a security deposit amount that is higher or lower than the monthly rent.   This will eliminate confusion by the tenant that the security deposit is the last months rent.
7. Expenses:   List all expenses that each party is responsible for.   Tenant shall pay electric and gas.  Landlord shall pay water and trash pickup.  Etc.
8. Applicances:  Attach a list of all appliances that are provided with the property.   A list can be essential at checkout, if your microwave is missing.
9. Tenant Insurance:  Advise the tenant in writing that they need to obtain insurance protection for their contents.  Further, add that the landlord bears no responsibility for personal possessions or losses of personal property.
10. Nuisance, Noise and Illegal Activity:   Most leases have boiler plate clauses for these items, but add any clause that is applicable to you, your property or your homeowners association to the lease agreement.
11. Move In/Out Inspection:  Have a Move In Checklist and photo’s of the property condition at the time the tenant took possession.    Have the tenant acknowledge in writing that they agree with the content list and the condition of the property at the time of inspection.   Use this move in checklist when you perform a checkout walk-thru.   This step can eliminate a lot of battles about security deposit refunds.
12. Smoke Detectors:   Address the number, location and inspection date for all smoke detectors.   Instruct the tenant that damaging or removing smoke detectors is a violation of the lease.  The tenant also has a duty to report any problem that arise with the smoke detectors during their occupancy.
13. Safety Issues:  At the walk-thru, show the tenant where water and gas cut off valves are.  Also, point out cut off’s at sink and toilet faucets.   Advise the tenant about any water penetration or flooding concerns.  Explain the electric fuse panel.  Instruct the tenant about lighting pilot lights for fireplaces, water heaters and furnaces.   Safety is job 1, so make sure everyone knows what needs to happen in the case of an emergency.

Landlording is a business that moves along much more smoothly if everyone understands what is expected of them.  For more information about landlording responsibilities and rights visit the law center at Nolo Press.

Thank you for visiting InfoTube. net and email any questions or responses to tommi@infotube.net

I have received a lot of questions about property management, lately.   Yesterday, we addressed what it is that a property management company does, along with a list of criteria to help you determine if you need a property manager at all.

For those of you who need or want a professional property manager, today we offer up some good interview questions designed to give you insight and help you identify what  it is that you need to know before you sign a contract.

Questions to Ask When Interviewing a Property Manager:

1.  Monthly Cost:   Most managers charge a monthly fee to maintain, watch and care for your property.  Fee’s can vary widely, but generally you should expect to pay 5%-10% of the monthly rental for the management fee. 
2. Vacancies and Leasing Fee:  Most managers charge a fee for procurring a tenant for a vacant property.  This fee offsets the managers costs for advertising, showing the property and the time spent with paperwork.   The leasing fee can vary, but generally agents charge 1/2 of the first months rent for a signed lease with an approved tenant.  
3. Contact Information:   This is a big issue for me, as reaching my manager, if necessary, is essential.   I require that my manager uses email (my preference for non-emergencies) and also has a cell and office phone with voice mail. 
4. Accounting:   State laws dictate the rules of procedure for mailing checks to you and how security deposits are handled.  Verify that the company is licensed and fully compliant with your state association of Realtors.  Check with reporting bureau’s, such as the BBB, to see if any compliants have been filed against the management company and the status of resolution.   Get a committment in writing about the mailing schedule for rent checks and monthly expense statements before you sign.
5. Repairs and Maintenance:  Determine who handles maintenance and repairs for your property.  Does the management have in house service or do they subcontract the work?   Ask what services they can provide and which do they need to hire out?    You will also need to know the billing rate or how the repair charges will be based.   I usually allow my managers to make repairs up to $100 without contacting me beforehand.  This is up to you, but note that you can set a maximum with your manager.
6. Reserves:  What is the required cash reserve for anything that comes up?  Most managers will charge a reserve that is refundable if unused.
7. You’re Fired:  What is the termination policy, in case you discover that the relationship isn’t working out?  Find out what it will take to terminate, before the trouble starts.  Many companies charge a fee for early termination of the management agreement.
8. Statements:   Does the company provide monthly or quarterly accounting statements?  I personally don’t do business with companies that don’t provide a monthly accounting.
9. Yard Work:   Does the company have a lawn service that tenants can use?   Do they handle leaf and snow removal?  Landscaping or removing trash or debris?  If so, how much do they charge and how is it billed?  This type of service is a real plus for single family homes, especially those with treed lots, locations in storm areas or others with cold winters.
10. Property Checks:  Does the company have a drive by schedule for the property it manages?   Do they verify that the property is in good condition and leasing terms are adhered to during the lease term?
11. Advertising:  You want your property advertised.  Ask where they advertise the property?  They should use yard signs with an InfoTube or InfoBox, have a good website with a lot of photo’s of the property, upload your listing to free rental websites and make use of local classifieds.
12. Evictions:  Sad, but something landlords have to address upfront.  Does the company handle all evictions?  They should.   If so, what are the costs to evict a tenant?
13. Section 8:  Properties that qualify for affordable housing assistance should have a manager that is qualified to handle all the rules and regulations, so ask.  You never know when you might buy a piece of property that requires knowledge of the laws.

When interviewing property managers, these are the questions you will want written answers to before you sign any agreement.  

Tomorrow, we will look at little clauses and common sense items you can add to leases to protect yourself and your property.   They are also tools that your property manager will appreciate, should you decide to hire one.