Jeco Construction
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Lepanto Townhomes
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income the past years, is suddenly unattractive? What do I do?
In our last column we noted the competencies required to be a good
administrator of rented property. Today’s property boom is spurring an
oversupply of rented property. So, if you are buying property that you will
eventually rent out, it is sensible to do some research. Check out what are
the most popular streets and the kind of housing that tenants would prefer.
Make sure there is a market for the property you want to purchase.
Today, there are many ads in newspapers and the internet of properties for
sale. Do due diligence and visit the sites and know the area. You have to be
on the lookout that the place you are acquiring is safe and secure and the
surroundings do not speak of urban blight because of the presence of
informal dwellers or troublesome neighbors that may reduce the value of
the property.
BEST PROPERTY TO RENT
What would be the easiest property to rent out? An expert on property tells
me that the best properties that easily rent out are studios and one room
condominium units. Typically, the person who rents a property is a single
professional person age, 25-35 years old with a busy lifestyle, who cherishes
the nearness to his work or school of a studio or apartment. However, s/he
is not ready to commit to buying a piece of property but desires the freedom,
autonomy and independence on living alone.
The single person renting a studio is an ideal tenant because s/he presents
less risk in terms of wear and tear, running away with unpaid rent or renting
out your property to other tenants.
LIVABLE AND ATTRACTIVE PLACE
The key criteria for deciding on what property to purchase are its “livable
and attractive character”. When one chooses property, ask yourself if you
would love to live in the property. Today, with the rising cost of fuel, many of
my neighbors in the South are thinking to stay in an apartment or studio
during the week and go back to their homes on weekends. A number of them
have decided not to renew contracts on a property of they own for rent so
they can use it themselves and save on gas. If you use this consideration,
you are likely to come up with a wise decision.
Then, the other criterion is the scarcity of available units in the area. This
may appear strange -- but properties for rent are likely to be subject to the
law of supply and demand. If supply is low, then the property will have more
tenants looking. If the supply is high as in the case of buildings coming up
with so many studios for rent, the prices are likely to go down, as the
prospective tenant has many choices.
Should one purchase newly built property or pre-selling property or old
property as second and third owner? There are advantages and
disadvantages with each option. Newly built property can be a come on to a
tenant since the unit or apartment is likely to be attractive because of its
spic and span quality, but these units may be more expensive compared to
pre-selling property. Pre-selling property may cost less but may make take a
longer time before they become available and financially attractive.
A neighbor of mine tells me that his best purchases are studios or
apartments that are “Don’t want its”. Often the owner is eager to dispose of
the property, in a hurry to sell because he is migrating overseas or changing
work assignments. The owner is likely to give a good discount to dispose of
the property. One seller actually left all her appliances and furniture giving
everything for free if the seller agrees to refund the money for the bank
amortizations and takes on the mortgage. Make sure however that the place
is not run down and it is in a strategic location. Repairs may cost you a
fortune, more than the actual cost of the property. Finally: location, location,
location. This is the final and most important decision criterion that is
sometimes overlooked. It will spell out the difference if you make or lose
money.
If you have a house in the suburbs, you may think that your prospective
tenant may want peace and quiet away from traffic and noise.
Often the tenant may be looking for property to rent near transportation
lines or near malls, to make buying groceries easy and simple. He wants
walking distance for quick meals to fast food joints or a church. Many of
them may not have cars. Many call center agents who work in the evenings
may want a place 5-10 minutes away from their place of work. Most tenants
may not be interested in landscaped gardens—in fact may consider them a
nuisance.
Finally, what to do if a property has no tenant for a long time. Check out the
neighborhood. New property developments may be coming up. The best
solution is turn around and sell the property. Then with the cash go scouting
for a new property to buy.
In our last column we noted the competencies required to be a good
administrator of rented property. Today’s property boom is spurring an
oversupply of rented property. So, if you are buying property that you will
eventually rent out, it is sensible to do some research. Check out what are
the most popular streets and the kind of housing that tenants would prefer.
Make sure there is a market for the property you want to purchase.
Today, there are many ads in newspapers and the internet of properties for
sale. Do due diligence and visit the sites and know the area. You have to be
on the lookout that the place you are acquiring is safe and secure and the
surroundings do not speak of urban blight because of the presence of
informal dwellers or troublesome neighbors that may reduce the value of
the property.
BEST PROPERTY TO RENT
What would be the easiest property to rent out? An expert on property tells
me that the best properties that easily rent out are studios and one room
condominium units. Typically, the person who rents a property is a single
professional person age, 25-35 years old with a busy lifestyle, who cherishes
the nearness to his work or school of a studio or apartment. However, s/he
is not ready to commit to buying a piece of property but desires the freedom,
autonomy and independence on living alone.
The single person renting a studio is an ideal tenant because s/he presents
less risk in terms of wear and tear, running away with unpaid rent or renting
out your property to other tenants.
LIVABLE AND ATTRACTIVE PLACE
The key criteria for deciding on what property to purchase are its “livable
and attractive character”. When one chooses property, ask yourself if you
would love to live in the property. Today, with the rising cost of fuel, many of
my neighbors in the South are thinking to stay in an apartment or studio
during the week and go back to their homes on weekends. A number of them
have decided not to renew contracts on a property of they own for rent so
they can use it themselves and save on gas. If you use this consideration,
you are likely to come up with a wise decision.
Then, the other criterion is the scarcity of available units in the area. This
may appear strange -- but properties for rent are likely to be subject to the
law of supply and demand. If supply is low, then the property will have more
tenants looking. If the supply is high as in the case of buildings coming up
with so many studios for rent, the prices are likely to go down, as the
prospective tenant has many choices.
Should one purchase newly built property or pre-selling property or old
property as second and third owner? There are advantages and
disadvantages with each option. Newly built property can be a come on to a
tenant since the unit or apartment is likely to be attractive because of its
spic and span quality, but these units may be more expensive compared to
pre-selling property. Pre-selling property may cost less but may make take a
longer time before they become available and financially attractive.
A neighbor of mine tells me that his best purchases are studios or
apartments that are “Don’t want its”. Often the owner is eager to dispose of
the property, in a hurry to sell because he is migrating overseas or changing
work assignments. The owner is likely to give a good discount to dispose of
the property. One seller actually left all her appliances and furniture giving
everything for free if the seller agrees to refund the money for the bank
amortizations and takes on the mortgage. Make sure however that the place
is not run down and it is in a strategic location. Repairs may cost you a
fortune, more than the actual cost of the property. Finally: location, location,
location. This is the final and most important decision criterion that is
sometimes overlooked. It will spell out the difference if you make or lose
money.
If you have a house in the suburbs, you may think that your prospective
tenant may want peace and quiet away from traffic and noise.
Often the tenant may be looking for property to rent near transportation
lines or near malls, to make buying groceries easy and simple. He wants
walking distance for quick meals to fast food joints or a church. Many of
them may not have cars. Many call center agents who work in the evenings
may want a place 5-10 minutes away from their place of work. Most tenants
may not be interested in landscaped gardens—in fact may consider them a
nuisance.
Finally, what to do if a property has no tenant for a long time. Check out the
neighborhood. New property developments may be coming up. The best
solution is turn around and sell the property. Then with the cash go scouting
for a new property to buy.
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