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The following is excerpts of an article that expresses our philosophy at Waypoint Residential about the importance of a happy, healthy Tenant-Agent relationship. Just like with anything in life, when you create an environment that includes the best interests of all parties, everyone wins. I use this philosophy as a landlord myself and I believe it has added greatly to my personal and professional success! ~ Shannyn Flory Aim For Long-Term Tenants First, treat your tenants like they are the most important people in your life. In fact, since they are likely paying for your retirement, they really are the most important people in your life. Acting and conducting yourself in a respectful manner will usually make your life a lot easier and your properties more profitable. It doesn’t work every time, but hopefully if you choose this strategy it will be successful. Treating your tenants well helps you keep them in your property longer. Every time your rental unit turns over, even if you have a new tenant ready to move in the next day, you will probably spend a month’s worth of rent fixing and repairing normal wear-and-tear items, not to mention countless hours completing the whole leasing process — advertising, taking phone calls, interviewing, showing the property, getting credit reports, drafting the leases, discussing the lease, move in day, etc. It’s a lot of work. So why not just try to keep your tenants as long as possible by treating them really well? And that starts by acting toward them the way you would like to be treated. Remember The Basics Additionally, in order to keep tenants a long time, maintain your cash flow and avoid angry tenants or having to re-lease the unit: Keep your properties well maintained and fix any issues in a reasonable period of time. Don’t try to charge your tenants for items like plumbing or repairs — I’ve never had a tenant intentionally damage one of my properties — just pay for it. Ask reasonable rents, maybe even a bit under market, so that you have a large pool of applicants and can select the best credit quality group that you think will be good tenants. If there are problems, like a broken water pipe, deal fairly with your tenants and compensate them a reasonable amount if it ends up being a big hassle for them. That way they are happy, they stay and they keep paying rent. If they pay on time, take care of your property and are good tenants, reward them with minimal rent increases. Keeping these tips in mind should help you minimize vacancy and costs, plus have reasonable people in your property who will take care of it. And you’ll learn over time why treating your tenants well — the ones who are paying for your golden years — is just a good idea! Written by Leonard Baron, America’s Real Estate Professor , is a San Diego State University Lecturer, blogs at Zillow.com, authored several books including “Real Estate Ownership, Investment and Due Diligence 101” , and loves kicking the tires of a good piece of dirt! See more at ProfessorBaron.com. Link to original article from Zillow.com here.
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Another bursting housing bubble — characterized by huge price declines — seems unlikely, because prices haven’t gotten nearly as out of whack as they did in 2006, when the last bust began. What seems more plausible is a long period of tepid demand for housing, as potential buyers increasingly decide to rent instead of buy and forego the hassle of owning a home. At the moment, economic forces are still discouraging potential buyers, since unemployment remains elevated, raises are scarce and consumer confidence is balky. But there are also signs of longer-term changes that suggest owning a home is simply less desirable than it once was. Here are 4 signs Americans are losing interest in home ownership: Americans now view a home as a poor investment. The Case-Shiller-Thompson survey of home buyer expectations shows potential buyers, on average, expect a home to appreciate just 3% per year over the next decade. That’s about 1.5 percentage points lower than the average mortgage rate right now, which means money invested in a home would basically offer a negative return. In 2004, near the peak of the bubble, the expectation was a 12% annual gain for a decade. That was clearly outlandish, yet in a healthy market, expected gains on a home should at least be higher than the average mortgage rate. When it’s lower, rational people will spend their money on something else. More young people may prefer renting. Many Americans in their 20s and early 30s found jobs tough to come by during the recession, while also dealing with onerous levels of student debt. Committing to a big purchase like a home may be the last thing they’re able or willing to do as the economy recovers. It remains to be seen whether young workers will generally sour on homeownership, or just end up owning homes later in life than their parents. For now, however, they seem to prefer renting in cities over growing roots in the suburbs or other places where homes tend to be more affordable for first-time buyers. (And some, regretfully, are still living with their parents.) Institutional buyers may be largely responsible for the housing rebound. Sales of residential properties to investors spiked in 2012, to about 8% of total sales, according to research firm RealtyTrac. That may not sound like a large percentage of the total, but in a market characterized by tepid demand and limited supply, investor activity may have been enough to account for much of the 11% gain in home prices in 2013. If so, that may have created the false impression that healthy demand from ordinary buyers was pushing up prices. With interest rates and home prices both heading higher in 2014, housing may be less of a buyer’s market, scaring off investors hoping to buy at the bottom. That could reveal a market in which fundamental demand is weaker than expected. Americans are spooked about the entire economic outlook. Consumer confidence has been up and down and remains far below where it was before the recession. The portion of Americans who feel the country is on the wrong track is more than 30 points higher than those who feel things are going right. Buying a home generally requires a sense of optimism about your own circumstances and, more broadly, the economy in general. Americans aren’t feeling it. It’s entirely possible that, at some basic level, homeownership still retains the same allure it has for the past 50 years, and we’re still in the process of shaking off the psychological and financial sting of the housing bust. In the meantime, however, homes are getting less affordable, especially for first-timers. Tomorrow’s homeowners could be waiting themselves out of the market. By Rick NewmanFebruary 25, 2014 Rick Newman’s latest book is Rebounders: How Winners Pivot From Setback To Success. Follow him on Twitter: @rickjnewman.
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