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Short-Term Lease vs. Long-Term Lease

Short-Term Lease vs. Long-Term Lease

Short-Term Lease vs. Long-Term Lease

Short-Term Lease vs. Long-Term Lease

Every landlord needs a lease agreement that clearly outlines the responsibilities and protections of both parties. Lease agreements ensure that everyone is aware of the expectations set during the lease term — especially your tenants.

However, there are different lease term durations a landlord can offer, such as a short-term lease or long-term lease. Both have their pros and cons, so you’ll want to know which one makes the most sense for your rental property.

Keep reading to learn more about how both types of lease agreements differ and when to offer short-term lease agreements to tenants.

What’s the Difference Between Short-Term Leases and Long-Term Leases?

A short-term lease agreement lasts anywhere from three to six months, or can go month-to-month until the tenant decides to move out. Long-term leases are anything longer than six months and can go up to 15 months before needing to make a new lease.

Long-term leases are usually preferred by landlords since they guarantee a longer stream of rent payments, but the lease term duration can vary depending on the goals you’re trying to achieve.

Is It Better to Lease Short-Term or Long-Term?

If you’re looking to establish a longer stream of income through rent payments, then long-term leases may be more suitable for your rental. Short-term leases can be beneficial if you’re looking to sell your property soon, want more flexibility in adjusting the rent price, or plan on not living in the property for three to six months.

During the summer months, there may also be a higher demand for short-term rentals due to tenants seeking temporary housing in new cities for job opportunities or summer classes.

When to Offer Apartment Short-Term Leases

There are certain instances where offering an apartment short-term lease makes the most sense. Here are different types of tenants that may benefit from a short-term lease:

  • Relocating for a job: Some tenants may have had to move to a different area in a short amount of time for a new job. This can result in them needing temporary housing until they purchase a new home or find a long-term apartment.
  • Renovating a primary property: If homeowners are currently in the process of renovating their home, they may need temporary housing for a period of time until the house is complete.
  • Overseas travelers with a short-term visa: Short-term visas are typically active for a maximum of 90 days, which means they’ll need to move again if they’re unable to stay longer.
  • Temporarily visiting the area: With more companies offering fully remote positions, more people have been visiting new areas for short amounts of time. Offering a short-term lease can allow visitors from different cities to rent out your property until they decide to go somewhere else.

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

    Ready to make a Move?

    Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

     

    How Long Can a Tenant Stay After the Lease Expires?

    How Long Can a Tenant Stay After the Lease Expires?

    How Long Can a Tenant Stay After the Lease Expires?

    How Long Can a Tenant Stay After the Lease Expires?

    Occasionally, your tenant may not vacate your rental property when a lease is up. As such, you may wonder how long a tenant can stay after the lease expires. This situation can be challenging to navigate, so it’s crucial to have all the facts before you take action.

    This article will discuss what landlords should know, how to handle a tenant who won’t leave, and how to prevent the situation from occurring.

    Can a Tenant Stay After the Lease Expires?

    A tenant can usually stay at a rental property after a lease expires as long as the landlord allows them to. Suppose the original lease isn’t renewed or a new lease isn’t signed. In that case, the tenant may enter into one of two types of tenancy:

    • Tenancy at will: This is when a tenant continues to pay rent with the landlord’s permission until either party wishes to terminate the agreement. A tenancy at will is not the same as a month-to-month lease since there isn’t a binding lease in the former situation.
    • Tenancy at sufferance: If a landlord doesn’t give a tenant permission to stay but hasn’t evicted them, they have a tenancy at sufferance. In this case, it’s essential to understand your local landlord-tenant laws before taking action, as states may vary in how long tenants can stay in the property after the lease expiration date.

    What Is a Holdover Tenant?

    If either of the situations mentioned earlier occurs, your tenant is now considered a holdover tenant — someone who remains in the rental after the lease has expired. If the landlord continues to accept rent payments from them, a holdover tenant may have the legal right to occupy the property.

    Holdover Tenant Risks

    This arrangement may not bother you if you have a great relationship with your tenant and allow them to stay past the lease expiration date. However, there are risks to consider when dealing with a holdover tenant.

    1. Reduced landlord control: Since a lease agreement doesn’t bind a holdover tenant, you’ll have to be mindful of things like property damage, unapproved pets, rental arbitrage, and more. Holding the tenant accountable or pursuing legal action may be challenging without an enforceable lease.
    2. No guarantee of consistent rental income: Rental income from a holdover tenant isn’t guaranteed. They may pay rent late or notify you of plans to vacate before a rent payment is due if they have a tenancy at will. This can leave you with less income than initially planned and provide short notice to fill a vacancy.
    3. Delayed updates and maintenance: If you had plans to update a unit as part ofthe rental turnover process, your goals might be interrupted by a holdover tenant. For example, you may need to postpone repairing a water-damaged ceiling, which can worsen the damage and ultimately cost more. Similarly, a holdover tenant can also delay renovations that could increase the value of your rental.

    How to Deal With a Holdover Tenant

    Landlords have a few options when a tenant stays after the lease expires. Here are the main four to consider.

    1. Allow the Tenant to Stay

    Allowing the tenant to stay while continuing to collect rent is an easy way to avoid confrontation. However, landlords should know the risks of allowing holdover tenants to stay without an active lease and how this can impact their rental business before choosing this route. You may also want to consult with a lawyer or refer to your local landlord-tenant laws for important rules to be aware of.

    2. Negotiate a New Lease

    By negotiating a new lease, the landlord and tenant will again have a legally-binding contract. This may help reduce the risks to the rental property since landlords can add clauses to enforce rules and restrict certain actions.

    3. Offer Cash for Keys

    A landlord may offer a tenant who refuses to leave cash as an incentive to cooperate. This is where a tenant agrees to vacate on a specific date in exchange for a payment from the landlord.

    This method is a less expensive alternative to a formal eviction, but review your local landlord-tenant laws before taking this path to avoid legal violations.

    4. Pursue Eviction

    Landlords may also consider evicting a tenant who refuses to leave after the lease expires. The process varies from state to state, so you may wish to consult legal counsel before initiating an eviction.

    If you plan to pursue this option, you must not accept any complete or partial rent payments from the tenant, as doing so will negate the eviction process.

    What to Avoid If a Tenant Stays

    Because holdover tenants have rights, there are actions and behaviors that landlords must avoid, even if the tenant isn’t paying rent. Landlords cannot:

    • Threaten or harass a tenant to convince them to leave.
    • Refuse to make repairs that affect the tenant’s health and safety.
    • Change the locks while the tenant is still inhabiting the property.
    • Perform a self-help eviction.
    • Retaliate with a rent increase.
    • Shut off the utilities.

    These and other actions could violate a tenant’s rights and lead to lawsuits if the tenant decides to pursue legal action.

    How to Prevent Tenants from Staying After the Lease Expires

    An easy way to ensure a tenant doesn’t become a holdover tenant is to explicitly state your rules and expectations of what will occur towards the end of the tenancy in your lease. Clear instructions in a signed lease agreement will ensure you’re covered if you pursue legal action against a holdover tenant.

    Source

    Looking for rental services in Orlando – we can help.

    We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

    By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

    Ready to make a Move?

    Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

     

    9 Common Tenant Complaints

    9 Common Tenant Complaints

    9 Common Tenant Complaints

    9 Common Tenant Complaints

    At some point during their lease period, your tenant may bring concerns to your attention that can vary in subject and severity. Addressing these concerns right away is important to establish a great landlord-tenant relationship and provide tenants with a great renting experience.

    Keep reading for examples of common tenant complaints and tips to help you resolve them.

    1. Maintenance Requests

    Some of the most common complaints you’ll receive from tenants are maintenance requests. Maintenance-related issues often happen randomly and can negatively impact the rental experience for your tenants if left unaddressed for too long.

    Accordingto a recent survey, tenants appreciate a landlord who is willing to respond to maintenance requests quickly and efficiently. When asked what makes a “bad” landlord, 79% of surveyed tenants cited having a landlord who’s rude about making repairs — more than the 65% who responded with a landlord raising the rent.

    2. Noise Complaints

    A tenant may approach you with a noise complaint if you own a multifamily property. There are many reasons why a noise complaint arises, each of which can be resolved differently.

    If it’s a one-time complaint about a tenant you’ve enjoyed renting to, a one-on-one conversation to politely request they monitor their noise can be an effective solution. In other cases, you can remind your tenants of the noise clause in your lease and that violating it may result in an eviction. 

    3. Privacy Concerns

    Privacy is an integral part of the rental experience and a right your tenants have when living in your rental property. To protect your tenant’s privacy, ensure all the windows have effective coverings during the turnover process.

    A tenant’s main privacy concern may be about you as their landlord. While tenants do live in properties you own, landlord-tenant laws often require landlords to provide proper notice before entering.

    To help ease these concerns, it’s important to be familiar with the local landlord-tenant laws of your area. Notice of entry laws may vary by state, but it’s a common requirement for the landlord to provide advance notice to the tenant if they need to visit the property.

    Ignoring this rule can violate your tenant’s rights and result in severe consequences if your tenant tries to pursue legal action. They may also have the right to break the lease without paying any fees, so make sure you understand the local ordinances to protect your tenant’s privacy.

    4. Safety Concerns

    Similar to privacy concerns, safety concerns can also be a top priority for tenants. To provide a comfortable renting experience, avoid neglecting the security of your tenants.

    One way to ease these concerns is to take extra care to review the safety features of your property when conducting the initial rental property walk-through with your tenant. This can include anything from door locks to advanced alarm systems. If anything is not in the greatest condition, prioritize repairing or replacing it as quickly as possible.

    This is in your best interest as a landlord, as your state may have laws concerning locks, keys, and security. Prioritizing compliance with these laws will protect your rental business and give your tenants the peace of mind they desire.

    5. Pests

    Pests can come in many forms, but any complaints from tenants should be taken seriously. They can be more than just bothersome to tenants — a serious infestation may make your property uninhabitable depending on local law and could force your tenant to vacate the premises.

    Rather than let a pest complaint go unaddressed, prioritize implementing a solution. You may be able to contact your city’s public health department for information on the pest you’re dealing with, as well as find effective ways of dealing with them.

    It may also be worth contacting a professional pest control service to prevent future issues. Remember to communicate with your tenants and inform them of scheduled visits.

    6. Environmental Concerns

    Environmental concerns like mold, mildew, asbestos, and lead-based paint could negatively impact your tenant’s health. It’s essential to address these concerns as soon as they arise.

    Landlord-tenant laws typically mandate that a lead-based paint disclosure is included in a lease, but you may find that your state requires additional disclosures for other environmental issues. Depending on the severity of your tenant’s complaint, you may need to address it professionally.

    7. Housing Discrimination

    The renting process can be stressful for tenants, and the fear of housing discrimination can add to that. Understanding the Fair Housing Act and other laws protecting tenants from discrimination is essential to being a successful landlord.

    According to the U.S. Department of Housing and Urban Development (HUD), the Fair Housing Act protects people renting a home from discrimination based on race, color, religion, gender identity, disability, and more.

    As a landlord, there are several ways to ensure you aren’t violating tenants’ rights. For example, implementing the same tenant screening requirements for all applicants ensures you’re being fair about the information you’re collecting, regardless of who is applying.

    8. Rent Concerns

    As a landlord, you may encounter tenants who have concerns regarding rent payments. They may worry they won’t be able to pay in full on time, or in your preferred manner. Addressing rent concerns can help encourage on-time rent payments regardless of the situation.

    9. Lack of Communication

    There are many aspects of rental property management that independent landlords must be mindful of, and communication isn’t one to be overlooked. Keeping your tenants informed can be the key to a stress-free tenancy and a healthy landlord-tenant relationship.

    Looking for rental services in Orlando – we can help.

    We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

    By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

    Ready to make a Move?

    Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

     

    Normal Wear and Tear vs Excessive Tenant Damages

    Normal Wear and Tear vs Excessive Tenant Damages

    Normal Wear and Tear vs Excessive Tenant Damages

    Normal Wear and Tear vs Excessive Tenant Damages

    “Normal wear and tear” is one of those landlord-tenant law phrases that is subjectively difficult to define. It’s one of the leading contributors to security deposit disputes purely because of how vague it is.

    Most states have individual versions of this law, each with different wording. This is an issue for you as a landlord. However, the general premise stays the same from state to state. Tenant damage is separated from normal wear and tear by implying the property damage resulted from negligence, abuse, or carelessness.

    Of course, what constitutes these phrases differs from person to person. A person with severe OCD likely has a different definition of negligence and deterioration than someone else who is messy. The difference between normal wear and tear versus damages beyond normal wear is blurred at the best of times, and that presents a problem for your investment property.

    With all of this being said, it is possible. So, how do you define normal wear and tear vs. excessive tenant damages for your rental real estate property?

    Normal Wear and Tear vs. Tenant Damage

    The Department of Housing and Urban Development has excellent documentation for defining what is and isn’t normal wear and tear.

    Normal Wear & Tear Examples

    According to the definitions laid out in the document, normal wear and tear constitute the following examples:

    • Ripped or faded wallpaper.
    • Peeling, faded, or cracked paint, including ceiling paint.
    • Holes in the wall, including nail holes and pins.
    • Cracks in the walls.
    • Cabinet doors sticking.
    • Hardwood floors in need of a coat of varnish.
    • Loose grouting or tiles.
    • Damaged window pane as a result of faulty foundations.
    • Thin and faded carpet.
    • Rusty shower rod.
    • Lightly damaged enamel in the bathroom.
    • Dirty or faded lamps and window shades.
    • Clogged sinks resulting from old plumbing.

    Excessive Wear & Tear Examples

    If a tenant caused damage, the tenant must pay to replace or repair the damage as opposed to normal wear and tear. Examples of negligence on the tenant’s behalf include:

    • Crayon markings, drawings, different paint colors, or wallpaper not approved by the landlord.
    • Holes in the walls or plasterboard.
    • Gouged or chipped hardwood flooring.
    • Heavily damaged or ruined wallpaper.
    • Broken windows.
    • Doors ripped off of the hinges.
    • Missing fixtures.
    • Holes, stains, burns, or other damage to the carpets.
    • Holes in the ceiling.
    • Missing or cracked bathroom tiles.
    • Clogged or damaged toilet from improper use.
    • Damaged sink and bathtub, including chipped or broken enamel.
    • Torn, stained, or missing lamps and window shades.
    • Missing or bent shower rods.

    Useful Life Expectancy

    The documentation also lays out the useful life expectancy of various appliances proportional to the tenant’s age. Examples of this are:

    • Hot water heaters – 10 years – All units.
    • Air conditioning units – 10 years – All units.
    • Refrigerators – 10 years – All units.
    • Ranges – 20 years – All units.
    • Plush carpeting – 5 years for family / 7 years for the elderly.
    • Interior enamel painting – 5 years for family / 7 years for the elderly.
    • Interior flat painting – 3 years for family / 5 years for the elderly.
    • Tiles or linoleum – 5 years for family / 7 years for the elderly.
    • Window shades, screens, and blinds – 3 years for family and the elderly.

    Excessive Damage Repairs vs. Routine Maintenance

    As the landlord, you have a responsibility to maintain the premises. This includes the standard turnover checklist between tenants. You usually cannot charge the tenant for this.

    Cleaning

    As the landlord, you must have the premises professionally cleaned when in-between tenants. Professional cleaning involves outsourcing the job to a certified cleaning company and cannot be done by yourself without the relevant qualifications. Outsourcing like this will ensure that the property is in pristine condition for the next tenant and allow you, as the landlord, to more clearly define normal wear and tear.

    Being a landlord, you cannot bill your tenant for the regular cost of this cleaning. However, if the tenant never cleaned the unit during their time there, you may be charged extra by the cleaning company. This extra charge is a result of the tenant’s negligence and can be forwarded to them.

    If you expect that your tenant will clean before they move out, be sure to include it on your lease agreements.

    Carpet Cleaning

    You do not need to outsource your carpet cleaning to a professional. You are free to do it yourself. You cannot charge your tenant for this kind of cleaning unless the carpet is excessively damaged. However, it would help if you suggested that your tenant cleans the carpet themselves before they move out. Keep in mind that if there is no significant damage to the carpet, they are not required to give it a deep clean.

    If the carpet is damaged so severely that the tenant can’t clean it, there is something you can do. You can charge your tenant for the remaining life expectancy of the carpet. You cannot charge for a full replacement unless you can prove the carpet was brand new as carpets deteriorate naturally over time.

    Carpet damage is a bit of a grey area when it comes to property deterioration. You will need to determine if it’s normal VS excessive wear and tear. Carpets are typically a very sore spot for a lot of landlords. It’s easy to damage one, and very hard to clean it. In the future, you might consider getting vinyl floors instead.

    Paint

    If you recently painted the unit, but the walls were filthy, you might be able to charge for the repaint as this doesn’t fall under regular wear and tear. This would include things like an excessive build-up of dirt, painting, and drawings on the wall.

    However, if the tenant has been living in the unit for three or more years, you cannot charge them for a repaint as it is considered routine maintenance, as long-term deterioration would be regarded as wear and tear.

    Light Bulbs

    Every light bulb should be working when a tenant moves into the unit. As such, it is expected of them that every light is operational when they move out. This means that they bear the responsibility of changing any light bulbs that burn out.

    The Importance of Security Deposits

    It is vital that you, the landlord or property manager, collect a security deposit before the tenant moves into the rental unit. This acts as a form of insurance against any damages.

    It provides you with the means to cover any tenant damage caused by negligence, and it serves as motivation for the tenant to look after the premises.

    Typically, the security deposit amount is one month’s rent. This should be given to you in tandem with the first month’s rent in advance.

    If there is no property damage when the tenant leaves, the landlord cannot keep the security deposit and is legally required to return it to them. Failure to do so entitles the tenant to seek legal action against you.

    Lease Agreement Clauses

    Having a comprehensive lease agreement is vital for landlords. Not just for when it comes to normal wear and tear vs. property damage, but in general.

    These lease clauses will legally protect you against a variety of situations that may be individual to the tenant renting the property.

    For example, you should include pet clauses if the tenant is bringing one to the rental property.

    Without the proper clauses in place, it will be much harder to use the security deposit for damages.

    As well as distinct clauses covering the individual tenant, there are a few that you need to make sure you’re on all of your lease agreements regardless of who is going to be renting the property:

    • How the moving in and moving out inspections are going to work.
    • If the tenant is required to clean the carpet or repaint when the tenant moves.
    • Exactly what type of cleaning should be done by them before leaving.
    • What is considered normal wear and tear, and what is considered damage.
    • The procedures if the landlord discovers damage after the old tenant has moved out.
    • How the security deposit is going to work.

    Videos and Photographs

    Taking videos and photos of rental properties is considered routine by landlords and renters alike. It prevents both parties from fraudulent claims and is a crucial piece of evidence in a legal dispute.

    Landlords and tenants should both video and photograph the rental property before any renters moving in. This allows both parties to document any pre-existing damage, the condition of appliances, the condition of wood floors and carpet, the quality of the paint job, plumbing fixtures, and a variety of other features.

    It is essential for both you and any renters to be thorough with this process. Furniture, walls, flooring, skirting board, light fixtures, and everything in between should be included in the recording.

    Both should also take photos of the features included in the video to back up the evidence.

    Similarly, the same process should be repeated by both parties when the renters leave the rental unit.

    The tenant should take photos and a video themselves right before they finish moving out. This allows them to document the exact condition that they left the property in.

    Once you inspect the property after the tenant has left, you should take photos and videos yourself. This way, there is clear documentation of the unit’s state at both ends of the tenant’s stay.

    It allows officials to get a clear picture of the unit’s damage and deterioration, rather than just hearing testimony from the landlord or tenant.

    A court judge will define normal wear and tear specifically for that situation, and that ruling is final unless you want to appeal it.

    The Importance of Tenant Screening

    Before landlords think about wear and tear, rent collection, security deposits, or anything in between, they need to screen their tenants.

    This typically involves meeting the tenant for a tour of the property. It allows you, as a landlord, to get a feel for the other person’s personality. It’s an informal interview that gives you subtle clues as to whether or not you want that tenant living in your property.

    Things like how they’re dressed and keep themselves, their manners, and how they conduct themselves can be significant indicators of whether they can be trusted with the property.

    You should not let any personal bias or discrimination factor into your decision. You cannot base your decision to rent a property to a new tenant based on race, age, sexual orientation, gender, religion, ethnic origin, physical or mental disabilities, or family status. You also cannot refuse to rent a property based on the tenant having kids.

    It’s not unusual for landlords to be wary of renting to the likes of young people, but don’t let that hesitation cloud the reading you get from the screening.

    If you are found to be refusing rent based on one of the criteria above, then you might end up in legal trouble.

    Screening should be done exclusively to determine how much wear and tear vs. damage a landlord needs to be concerned about.

    The Last Note

    As a last note on normal wear and tear vs. damage, try and keep a clear image in your head of the difference between the two.

    While understanding what is considered normal versus damage is essential, you also need to recognize the impact of normal depreciation. The value and condition of appliances decrease over time. You cannot charge a tenant on grounds based on that.

    Faded paint doesn’t warrant a replacement cost taken from the tenant’s security deposit.

    It’s situations like this that put so much value into your lease clauses, though.

    When you are drafting up your agreement, remember to be comprehensive but reasonable. If you want the tenant to repaint the walls, that’s acceptable, but don’t ask that automatically of tenants renting your unit for six months.

    Understanding how to tell the difference between damages and wear and tear is just the tip of the iceberg for a real estate landlord.

    We hope this guide will be useful for you going forward.

     

    Source

    Looking for rental services in Orlando – we can help.

    We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

    By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

     

    Ready to make a Move?

    Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

     

    How Much Profit Should You Make on a Rental Property?

    How Much Profit Should You Make on a Rental Property?

    How Much Profit Should You Make on a Rental Property?

    How Much Profit Should You Make on a Rental Property?

    The objective of a rental property business is to generate gross monthly income that can help cover operating expenses and result in profits. But in order to achieve this, you’ll first need to determine how much profit you should make on a rental property based on the goals of your business.

    In this article, we walk you through the steps of calculating profits from a rental property and the top considerations to keep in mind.

    How to Calculate Profit From a Rental Property

    One of the benefits of investing in real estate is the ability to make passive income. However, generated income is not the same as profits, since operating expenses will need to be subtracted. To help you calculate the profit from your rental property, here are three steps to follow.

    1. Forecast Rental Property-Related Expenses

    Just like any other business, there will be operating expenses that will need to be covered monthly. Generally, costs you can expect to deal with are:

    • A mortgage payment and property taxes: This expense varies depending on which financing method you used to purchase your rental property.
    • Maintenance repairs: Older rental properties may require more maintenance than newer properties.
    • Apartment turnover expenses: You will need to turnover an apartment whenever a tenant decides not to renew their lease agreement. This requires you to advertise your rental online, require tenant screening reports from applicants, create a new lease agreement, and prepare the property for the next tenant.
    • Landlord insurance: Landlord insurance is highly encouraged to ensure your property is protected when rented out to tenants. The amount of protection your policy offers will influence your monthly cost.

    Once determining the total amount of expenses you will need to cover, this can then be taken into account when setting a rent price.

    2. Determine Your Set Rent Price

    There are a few factors to consider when determining how much to charge for rent. Here are the main four to keep in mind when determining a rent price.

    1. Seasonality: You’re able to charge more for rent when the local demand for rentals is high. On the other hand, low demand makes it difficult to charge a higher rent price.
    2. The value of your amenities: Certain apartment amenities can increase the value of your rental property. If your unit offers in-unit laundry or stainless steel appliances, then this allows you to charge more than units that do not offer those amenities.
    3. Consider current events: There may be instances where current events could be impacting the operations of your rental business. Whether that’s changing landlord-tenant laws or tenants unable to pay rent due to the pandemic, you should consider what’s happening in the rental industry when setting a rent price.
    4. Operating expenses: Your rent price should help cover monthly operating expenses, while still considering local rent comps to avoid overcharging.

    How Do I Know If My Rental Property Profits Are Good?

    Determining whether or not the profits from your rental business are good will depend on the goals you’re hoping to achieve. Although some landlords approach any profit as good profit, that may not be the case for everyone.

    Creating a rental property business plan can be one way to help you establish what good profits look like and determine how much you hope to make in profits at the end of the year. Setting a goal towards rental profits will give you a benchmark to help you determine if profits you’ve made so far are good or bad.

     

    Looking for rental services in Orlando – we can help.

    We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

    By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

    Ready to make a Move?

    Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

     

    How to Buy Your First Rental Property

    How to Buy Your First Rental Property

    How to Buy Your First Rental Property

    How to Buy Your First Rental Property

     

    Owning a rental property can be a great way to start investing in real estate. However, buying your first property is just a small portion of running a successful rental business. If approached with no strategy, this can result in long vacancy periods or unfavorable experiences with tenants.

    To avoid that from happening, we share our best tips for buying your first rental property and important factors to consider as a soon-to-be landlord.

    7 Tips for Buying Your First Rental Property

    Managing a rental property can become stressful as a DIY landlord, but there are ways to make the process of buying and managing your first rental property easier. Here are nine tips to keep in mind as you go through each step.

    1. Determine if You’re Ready to Become a Landlord

    Even though many consider rentals as a way to generate passive income, there are still some responsibilities that will need to be handled throughout the year. In addition to managing tenants, becoming a landlord requires you to create rental applications, lease agreements, collect rent, and handle sudden maintenance issues.

    For that reason, it’s advised to determine if you’re ready to become a landlord prior to buying an investment property or if you’ll want to hire a property manager instead.

    2. Secure a Larger Down Payment

    There are various ways to finance rental properties — all of which may require more in a down payment and overall fees than owner-occupied properties. Most mortgage loans require a down payment anywhere from 3% to 20%, but some real estate loans require a minimum of 20% of the asking price since there’s a higher risk to financing an investment property.

    Not all lenders require 20%, especially if you can purchase mortgage insurance, but having a savings account can help you cover any down payment or property-financing expenses.

    3. Find Local Investment Properties

    The types of properties worth buying are located in a great area, offer in-demand amenities, and are close to highly-rated schools. You can either work with a Realtor that specializes in real estate investing to help you find investment properties or you can use websites like Realtor.com® to find properties yourself. 

    You also have the option to work with a local wholesaler or buy a foreclosure from a courthouse auction, but those properties may require more work to get them ready for tenants.

    4. Create a Rental Property Business Plan

    Creating a rental property business plan can be a great way to determine the goal of your business, your strategic plan, and outline the objective of your business. Although not required, establishing a plan prior to launching your rental business can ensure you enter the market prepared to handle hiccups with ease.

    5. Determine Your Rent Price and Operating Expenses

    Both your rent price and any operating expenses you expect to pay will need to be identified to determine your property’s profitability. Some landlords explore rental sites to see how much other landlords are charging for similar properties.

    Operating costs can include costs like maintenance repairs, listing your property online, turning over an apartment, and tenant screening reports. Each cost varies depending on where your property is located, the amount of times you turnover an apartment, and how comprehensively you want to screen prospective tenants.

    6. Purchase Landlord Insurance

    You never know what could happen when renting out your property to tenants, which is why it’s advised to invest in landlord insurance. Most insurance providers offer policies with different levels of protection to landlords. However, tenants should still be required to purchase renters insurance to ensure their own belongings are protected during the lease term.

    7. Familiarize Yourself With Landlord-Tenant Laws

    As a landlord, you’ll need to follow local landlord-tenant laws and Fair Housing laws during the rental process to avoid legal situations that can damage your rental business. These laws can also impact how you handle rental security deposits, screen tenants, and evictions. By regularly checking your local laws and any changes that directly impact the rental industry, you can avoid any lawsuits or violation of any renters rights.

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