Well, here it is! .. “Online Resources for Real Estate Properties Research” … Please take the time to read the article as  it contains some useful tips and advice,  all of which compliment what my  Build a Rental Portfolio Blog is all about.

Online Resources for Real Estate Properties Research

There are renters, buyers, and sellers of real estate properties. How do you meet for a “match made in Heaven?” Try the celestial realm of the Web. It offers many resources to help you find or sell promising real estate properties.

Searching the Internet for RE Information

If you are even thinking about a real estate transaction, it’s never too early to start scanning the market. By the time you are actually poised to take the plunge, you will have gathered valuable comparison information and perhaps spotted an emerging trend or two. The following are a few online resource gems to help you begin researching real estate markets.

News Services

Google News is an automated news aggregator. Use it to keep abreast of real estate industry news. Set up a Custom Section by region (country or U.S. State) to create a news feed of sources from the geographical area in which you are conducting real estate research.

RealtyTimes is a real estate news network. View daily webcasts to follow the latest in news, advice, and market conditions. Keep up with the Case-Shiller Index.

Yahoo! Real Estate Information and News provides expert advice, how-to guides, and industry news updates. Find authoritative information on everything from mortgages to timing a real estate purchase. A new feature, My Real Estate, allows you to save your searches and homes, and to manage alerts.

Real Estate Websites

CyberHomes provides access to most of the same information that real estate professionals use to evaluate homes. Explore data ranging from property facts, value estimates, and a variety of important indicators of local and national changes in the U.S. housing market. Helpful to buyers and sellers. Create a personalized homepage. Fascinating and informative featured content.

Fizber is a for-sale-by-owner website where buyers can search for homes. For a flat fee of $349.95, sellers can get a professional MLS listing with all the essentials that 6% agents provide, plus the cost saving benefits of selling as a “For Sale By Owner.”

HomeAway connects homeowners and property managers with travelers who seek the space, value and amenities of vacation rental homes as an alternative to hotels. It helps owners advertise their second homes as vacation rentals, and helps travelers find perfect vacation rentals. It has received many awards for being a top travel website.

Buy & Sell Sites

CraigsList lets you find and post available real estate properties almost anywhere in the world – that fall into local classified ads. Click through to your geographical region, and go to the Housing section. You’ll find everything listed from room shares to commercial office space.

eBay has a special Real Estate category. You can browse for-sale properties according to Timeshares, Land, Residential, Commercial, and Manufactured Homes.

Happy RE Properties Hunting!

As you explore the Web for real estate properties information, you are bound to discover many excellent sites beyond the suggestions listed here. You may also find that the more you learn, the more questions you have! But they will be better questions.

JoAnn Chateau is Webmaster of àlaBuzz.org, where she shares the best blogging information she discovers while pursuing blog development for fun and profit.

To put you in the picture,  the blog JoAnn writes on,  is a great source for free or low cost resources….. free and low cost are never bad ideas!

Her post titled “Online Resources for Real Estate Properties Research” will include a number of areas to investigate if you are serious about trying to build a rental portfolio.

I am sure her suggestions will be a useful addition to the information found on this blog, so watch out for later this week when her post goes live! 

Short term Holiday rentals are not so common in North America, but are popular and widely used throughout Europe.

This type of property can form a valuable part of your rental portfolio, and produce cash flows which can assist your business.

A mixture of long term property lets for consistent steady income with short term holiday lets to take advantage of “spikes” in demand for rental property at different times in the year,  is an ideal way to build a rental portfolio.

Major difference of a holiday let compared to a hotel

The major difference between a hotel and a holiday rental is the fact that you have access to the entire space being advertised,  which includes a kitchen / cooking area (including all utensils),  sleeping areas, a lounge,  a bathroom with bath and / or shower and a WC.

Depending on the size of the holiday rental, you may also have extra space such as a hallway and access to a garden or a balcony or a patio.

This is a very general description of Holiday Rentals, and will not cover every type of holiday rental that is available.

Who does this type of accommodation appeal to?

Tourists

Obviously tourists who want some space without having to use a hotel are prime candidates.

Travellers

You also find travellers on business want a place to stay for maybe 1 week a month, and they find this type of holiday rental accommodation much easier to live in, and the costs compared to a hotel make it very attractive.

Companies

Companies sometimes need to have a base for visiting personnel,  and they find a “Corporate” lease with a holiday rental apartment is more cost effective than using hotel accommodation,  and more convenient, as they know the property will be available at prearranged times of the year.

This can then be taken further, with the occupants having the opportunity to keep costs lower than hotel / restaurant costs, by shopping locally and cooking their own food. This can result in substantial savings compared to hotel and restaurant costs.

Living in this type of accommodation also gives the occupants more opportunity to find out about local life and culture.

The 3 big advantages of a holiday rental to the customer include

• The fact that you have complete independence in the property, it is like your “home” and your own living space while you live in another country.
• Costs of holiday rental accommodation vary, but normally doing a straight comparison with a hotel will immediately show you the savings to be made by staying in a holiday rental.

• Sometimes the price of the rental is per person, and sometimes it is per day, and sometimes it is a combination of the two.

Normally, the longer you stay, you will find the price per day reducing.

The 4 big advantages of doing a holiday rental for the owner of the property include

• The fact that the property is filled on a regular basis when properly marketed
• Because this type of rental competes with hotels, the owners can charge more than the rates for a 6 month lease, whilst still keeping below the rates per day offered by hotels.
• The property is regularly checked and any problems should be quickly spotted and sorted to prevent lengthy “empty” periods.
• When special Holiday periods or Special events occur, it is possible to increase rates to reflect the demand for the property during these popular times (you cannot do this with a long term rental)

The 4 holiday rental Cleaning requirements

1. The property must be kept clean all the time. Whilst guests are in the property it is expected that the guests will keep the property clean.  To ensure that the property is ready for the next guest(s), the holiday rental agreement  should include a paymenty for the cleaning service to prepare the apartment for the next guest(s).
2. The minute guests leave the property; it has to be cleaned to an acceptable standard before the arrival of the next guest(s).
3. It is normal to vacate the property mid morning and accept new guests mid afternoon, giving a 4 or 5 hour “window” for cleaning to be carried out.
4. A holiday rental should be fully serviced, i.e.; bedding linen and towels should be changed on a regular basis whist guests are in the property, and all bed linen and towels must be  renewed before the arrival of the new guest(s).

Cleaning Service

This should be made available during the time guests stay in the property, and should also be in place to ensure the property is quickly made ready for the new guests.

The cleaning service for the holiday rental should also include access to laundry facilities.

7 things to check when making your holiday rental booking

• Find out exactly where the property is, and how easy it is to access with the use of public transport, as well as your own car, or a hired car..
• If the property is in a remote area, you may have to consider either taking your own car, or hiring a car whilst staying at the property.
• Check when the payment for the holiday rental must be made, and how much deposit is required.
• Find out if the payment for the apartment includes the cleaning service which is used to prepare the apartment for the next guest(s)
• Because so many things can happen between you booking the apartment and actually arriving, be sure to read the cancellation policy, and find out how much notice must be given to ensure you get your deposit back.
• Be sure to ask if the price you are paying includes the costs towards heating, lighting, energy costs and TV / Internet access.
• When making your booking, ask the owner to confirm they have public liability insurance cover, and should a problem occur with the accommodation, ask what support will be made available to you to ensure minimum disruption to your holiday.

Places to look for holiday rental accommodation

The obvious place to look is through classified advertisements in papers local to the area you plan to visit.

This can be done online through many classified sites just by entering the area / city you wish to stay in.

If, you wish to stay in a different country, as many people do, it is easy to do an online search with a search engine like Google or Yahoo.

For example, say you were you planning to stay in Vienna, a popular search term on the internet would be “ Holiday rentals Vienna”.

Of course you can change Vienna to whatever country or city you wish to visit.

The results of the search should produce a vast choice as many private owners tend to advertise this way.

Many private owners have their own websites with all that you require to make a booking.

In some cases, property owners go out of their way with their websites, and include sections to help you find flight booking sites, train booking sites, car rental sites and even travel insurance sites.

This complete package helps visitors quickly and easily makes all the arrangements they need online, in a safe and secure environment with all the protections that internet booking provides.

This ensures that visitors can make a complete booking with the least possible hassle.

You often find such sites also include photographs and guides to places of interest, local restaurants,  banks,  shops  and what local events are happening when you visit.

Currently, the  economic downturn has placed many homeowners and potential homeowners in difficult financial situations.

Homeowners

Many are faced with mortgage payments they cannot afford whilst living in a property that has not fallen in value,  but plummeted in value!  It is unfortunate when this situation occurs and there is a lot of stress and worry in trying to deal with this difficult  situation whilst carrying on with “normal life”.

Unfortunately for some,  and fortunately for others, “one man’s problems becomes another man’s opportunity!”

Have to sell

You find that some homeowners are left with no choice than to sell their home or flat  at a low price just to get the burden of payment removed from their finances.

In some cases, properties are also being repossessed and sold at auction or at very low prices just to let the lender get the “bad debt”  of an unpaid mortgage off their books.

Opportunity presents itself

This is the opportunity that is presenting itself to property investors all over the world. The “credit crunch” has had a worldwide effect on property ownership and property values,  resulting in properties being sold at prices which make investment via property entrepreneur a viable proposal.

Potential homeowners

People in this category are people who are currently renting, and up until recently, were considering buying property and becoming property owners.

Banks have closed the doors!

Sadly, one of the major impacts of the economic downturn has been the complete reluctance by banks to lend money with out the security of a hefty deposit.

Many people do not have the deposit at present and cannot save towards the deposit because of the difficult job market and the uncertainty of regular employment.

Happy renting

Another reason is the fact that an increasing number of people across the world are now deciding that they are happy renting long term and have no wish to buy.

The reasons for this are many,  but include the fact that people are more inclined to consider “material” items,  combined with wanting to have a  greater amount of quality recreation time.

This overrides  the need or desire  to actually own a property outright (via the bank!)

Knock on effect

The number of properties available for renting on a worldwide scale is most definitely not increasing at the rate of people who are now coming into the rental market.

The resulting outcome

Less properties for rent + more people looking to rent = increased demand for rental properties.

I felt it was important to explain the above before putting numbers into this article … now we have the bare bones of why the property rental market is attractive,  let’s add some meat with figures and sums.

……………………………………………………………………………………..

Sharpen your pencils!

If you are in the fortunate position of having deposit monies available you are in the “driving seat” when it comes to buying property.

Let’s say you have $ 30,000 saved up in a bank account….this capital is giving you an interest rate return of 5%(for example ) .. This equates to $ 125.00 a month with no increase in capital.

2 can be better than 1!

In a previuous article   (Setting a Fair Rent)  I discussed property types, the fact that 2 can be better than 1,  and the advantage of buying 2 properties as oppossed to 1 property)

For ther purpose of this article I have assumed that you have seen 2 rental properties for sale for $70,000 each… you need to pay $ 140,000  .. you already have $ 30,000 as deposit …..

Bank lending information

The  bank is to lend $110,000 at an interest rate of 5.0% over a 20 year term on a Capital & Interest basis

( your monthly payment each month is split between a part capital payment plus the balance as interest to the  lender )

At the end of 20 years, because the mortgage is on a Capital & Interest basis, the loan is guaranteed to be repaid.

Now this is where it gets interesting.

Interest payment per month is $ 730 .00 …

Each property has an expected rental return of $600.00 a month.

This equals $1,200 for both properties.

Your mortgage is costing you $ 730.00 a month; therefore you have $ 470 left over each month.. that is fairly easy maths!

Now compare the $ 470.00  a month, with the $ 125 a month you were receiving from the bank… again the maths here is not difficult!

“Risks” that you have to consider.

If one property is empty with no tenant, your rental income is reduced to $ 600 a month, but your loan payment is still $ 730.00.  This means you have a “shortfall” of $130 to find each month from your own resources.

Once you fill your empty property, you will be back in profit.

Obviously, if both properties were empty,  you are faced with a loan payment of $ 730.00 to be paid from your own resources.

The “Plus” points of rental property ownership

• Increase in Value

The property you have bought as your rental property, possibly as part of your expanding rental portfolio will increase in value over the course of time.

This is a fact…. Historically when slumps occur,  prices have always recovered due to the unrelenting demand for property coupled with the decreasing supply of available property.

• Annual Rent Reviews

Each year,  as part of the signed Rental Contract,  you will have an  Annual Rent Reviews clause (See Article  Setting a Fair Rent)  which will allow your rent to maintain its buying power with increases in line with inflation, or what you decide is a Fair Rent.

Make Changes to the Monthly Interest Payment

The monthly interest payment of $ 730 a month on a Capital and Interest mortgage arrangement over a 20 year term could be reduced by a number of methods

1:  Extend the Term

Ask to have the term extended to perhaps 30 years

This would reduce your monthly payments to $ 595.00

The results of this are as follows:

• A surplus of $ 605 a month ( $1,200 – $595) when both properties are filled
• Reduction on the  call on your own resources when 1 or both properties are empty.

2:  Bring down the Mortgage Balance

Whenever possible throw in a lump sum to bring down the mortgage balance .. this may come from other savings you have or a maturing savings / insurance policy.

Wherever the extra capital comes from,  it will certainly open up a number of “bonuses” for you

• Your monthly mortgage payment required will decrease as the capital owed has decreased
• You keep paying the same amount each month to your mortgage,  and as less is required to pay the monthly mortgage payment,  the “extra”  is used as a capital payment  overpayment.
• This has the effect of bringing the capital owed down more quickly,  and therefore reducing the term of the mortgage.

3:  Change the loan from Capital & Interest to Interest only.

Many property entrepreneurs rely on the value of the property increasing over the course of time and are happy to arrange an Interest only mortgage.

The term of the mortgage is irrelevant as it is only interest that you are paying.

When you come to sell the property,  the expectation is that you will have waited long enough, before selling,  to be able to enjoy higher re-sale values, and as a consequence, a healthy surplus between the mortgage loan you are repaying,  and the increased value of the property.

If prices have not increased,  hopefully, you will have the option of waiting until they do rise.

Obviously,  if values are low when you have to sell,  you may make a loss on your investment.

What will the effects be on the $ 110,00 mortgage loan?

By switching to an Interest only mortgage with no monthly payments to reduce the capital, your interest only payment on a loan of $ 110,00 at 5%  interest would change to $ 550.00 a month.

You do not have the loan amount reducing, but you have more “extra” income available each month when both properties are full,  as this works out to be a surplus each month of $650.00.

This also means that if one property is empty you still have sufficient rent from the other property to pay the mortgage payment each month without having to dip into your own resources.

What do you do with the surplus each month?

The surplus each month can be put to any number of uses,  and you can even set aside a portion each month to allow you to accumulate capital,  and after, say, 12 months ( assuming the mortgage company will not penalize you),  you could throw the capital saved,  into the mortgage.

What effect would a capital reduction have?

The effect of a capital reduction on an Interest only mortgage would mean that the Interest payment required is reduced because the capital owed is reduced.

You now have a choice

• You either reduce your payments to cover the new,lower monthly interest rate charge, or, you keep paying the same amount each month to your mortgage.

• As less is required to pay the monthly mortgage payment, the “extra” is used as a capital payment overpayment.

• This has the effect of bringing the capital owed down more quickly.

Always remember to check the small print!

It is important to point out here that mortgage companies set their own criteria for adjusting mortgages, paying back lump sums to a mortgage and changing mortgages from Capital and Interest mortgages to Interest only mortgages.

Be careful when considering adjusting your mortgage with your existing lender,  or moving to a more attractive interest rate with another lender.

Check what, if any, early redemption penalties apply  to your loan.

In addition, always check what fees the lender is going to charge, and always insist on receiving a written quote before proceeding.

Interest Only.. it can be taxing .. in the best possible way!

Depending on which country you have your property and depending on the taxation arrangements,  it is sometimes possible to offset up to  100% of the interest payments as a legitimate expense against tax,  as no capital payments are being made

Worldwide demand for rental property

The rate of home ownership varies from country to country across the world,  and as a consequence the demand for rental property varies from country to country.

I have written a couple of articles which focus on the best places to buy property,  due to high rental demand, “Where is a good place for Real Estate Rental Opportunities?” and “Hurry and Catch a Ride for Rental Property Purchase Areas!”

Future articles are in the pipeline with details on new rental “hotspots” and updates on areas already visited.

The fact that I have access to different areas in the world where rental properties are in huge demand and rental income returns are excellent,  is good news for all types of property entrepreneurswho wish to start, or grow their property rental business on a global scale.

Details

Soon I will be releasing details of areas throughout the world for my readers.

This will assist you in your search for popular rental areas,  and help you  decide if you want to invest in any of those areas with the knowledge available from my (”Men/Women on the Ground”)  correspondents who are already in place and familiar with the local property rental markets they are dealing in.

Watch out for my “Men/Women on the Ground” articles to help you locate attractive property rental areas combined with attractive purchase prices.

I will be releasing details of these areas for my readers in the near future.

What better way is there to find a property bargain than to have your own “Men/ Women on the ground” who are hunting out the best property deals for you?

Be sure that you are ready to read my future “Men / Women on the Ground” articles.

The ability to have access to a robust,  efficient and easy to use system  for obtaining potential tenant / renter  references is a fantastic tool for landlords … it avoids wasting so much time trying to spot the problem tenant / renter,  and gives  American landlords the  protection their business needs.

So much to do  ..  so little time!

Over 75% of rental company’s and landlords either do not have the time available to carry out a comprehensive credit check on their potential tenants,  or they just plain don’t know what to do to get a proper check done on their potential tenants / renters

Does this sound a bit like you?

You can be an independent rental owner or a small property management company.

You want access to the same comprehensive databases and powerful analytical systems used by large commercial property management firms.

You want to gain access to these powerful referencing systems instantly

You want easy to use, instant online access to a referencing service that allows quick payment by either yourself or the applicant.

The Solution

A major player in the referencing market called TransUnion SmartMove can give you the answers to your worries about potential new tenants

All you do is quickly create an online account by consenting to the electronic agreement sent to you by the TransUnion SmartMove …. Now you are in business!

Why will this system work?

With expertise in 25 countries spread over five continents, TransUnion SmartMove knows how to develop local relationships to increase their service to you, the landlord.

TransUnion SmartMove regularly consults with local legislators and local businesses to increase awareness of the central role that credit reporting plays in both stable,  known economies,  and emerging economies.

This benefits landlords directly by ensuring rental businesses can quickly screen tenants and, most importantly, quickly weed out the potential problem tenants.

TransUnion SmartMove provides results within hours.

500,000,000 consumers is a great recommendation!

TransUnion SmartMove has experience of maintaining credit histories for an estimated 500 million consumers worldwide

TransUnion SmartMove’s criminal database is continually updated and is available 24 hours a day, seven days a week.

Is it that easy?

Yes!  The system you get instant access to, is designed specifically for independent rental owners and smaller property management groups.

It  combine powerful analytics with a comprehensive database of credit and criminal background information to offer you the same technology used by the larger property management firms in an easy-to-use, cost-effective solution.

What is it you will get?

You will have access to the industry’s first web-based rental screening solution.

What is the process?

The referencing is all done online.

You simply enter your prospective tenant’s / renter’s email address into the system…  an electronic request is immediately sent to the prospective tenant / renter asking for their permission to proceed, and verify their identity.

You, the landlord, are then sent a comprehensive, reliable screening recommendation and results direct to your account.

You can now make a reliable leasing decision backed up by the solid data and predictive scores provided by TransUnion  SmartMove.

The process in America is quick and comprehensive!

TransUnion Smart Move has full access to the following referencing databases which are essential if you want to produce a comprehensive and accurate referencing report for anywhere in America:

• America’s most wanted
• FBI’s most wanted
• More than 15 terrorist databases
• National; Sex Offender Public registry
• Us Marshals Drug Enforcement Administration
  • U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
  • U.S. Secret Service
  • U.S. Customs and Border Protection (CBP)
  • U.S. Office of Foreign Assets Control (OFAC)

I would say these are 9 great reasons to be confident in the accuracy of the report.

Protect your business and your investment

TransUnion SmartMove helps you chose, the most qualified tenants by the following steps

• Gathering of credit data: TransUnion SmartMove looks at lines of credit provided by financial institutions, collection accounts, bankruptcy proceedings and other public financial records are all made available for the screening system.

• Additional risk factors— TransUnion SmartMove then accesses comprehensive criminal background data and also examines income-to-rent ratio, payment histories, criminal, terrorism and fraud databases.

• Advanced analytics— TransUnion SmartMove now applies highly predictive modelling to the collected comprehensive screening data to determine the risk level for an individual who wants to rent one of your properties, or for a group of applicants wanting to be your rental tenants.

• Credit report—TransUnion SmartMove provide you with an easy-to-read credit report,  which  highlights specific tenant risk factors.

• Tailored recommendation—using proven credit data and advanced analytics, TransUnion SmartMove provides a simple, straight-forward leasing recommendation based on your specific property’s risk criteria.

What do landlords receive?

• Landlords are provided with immediate access to tenant screening tools that leverage one of the largest credit, criminal and eviction databases in the industry.
• TransUnion SmartMove gives independent property rental owners access to the same tenant screening used by the largest property management groups

What do Tenants / Renters receive?

TransUnion SmartMove gives renters /  tenants the ability to apply for a lease while protecting their personal identifying information.

Tenants / Renters gain the security of providing their personal information directly to TransUnion Smart Move —in a safe and secure online environment.

When they use TransUnion  SmartMove, they provide their Social Security number directly to TransUnion Smart Move —not to an unknown landlord.

TransUnion Smart Move verifies their identity and provide the landlord with a leasing recommendation, credit report and criminal history.

The landlord does not see personal identifying information such as Social Security number or bank account numbers.

The system used means that the potential renter’s / tenant’s sensitive information remains safe with TransUnion.

Plus, the renter’s / tenant’s credit score is not impacted when they use TransUnion SmartMove.

This is unlike when a landlord or lender retrieves your credit report,

TransUnion SmartMove lets the renter / tenant be the one to initiate the request for their own file to be sent,  making it a ’soft hit’ on your history, which doesn’t impact your credit.

Simple and transparent
There are no monthly service charges, set-up fees or other hidden costs with TransUnion SmartMove. Landlords simply choose whether to pay for the screening themselves or enable the applicant to pay directly.

Standard Pricing gives such a lot

For the standard price of $25 the landlord receives:

• Credit-based leasing recommendation/security deposit recommendation
• National criminal report
• Renter fraud warnings
• Automated renter identity verification

For an additional $5, the landlord may also receive:

• Immediate access to a credit report (a complete report formatted for readability while still keeping the renter’s personal data private)
• Viewable credit score
• Renter fraud warnings
• Detailed rental address history

Cut costs and Save Time!

TransUnion SmartMove definitely are at the cutting edge of computer technologoy when it comes to being able to deliver what Landlords and potential Renters / Tenants want in America!

The outlay involved is very reasonable compared to the hassle and heartache a bad renter / tenant can give your business.

Reduce the 75%

As already mentioned, there are a large number of people involved in property rental who do not carry out sufficiently comprehensive referencing checks on their potential new Renters / Tenants.

TransUnion SmartMove gives you the opportunity to quickly and easily access a superb online tool designed to help you reduce your stress by giving you  the ammunition you require to make a quick and sound business judgement with a complete referencing report to back up your decision.

What are the Benefits of a long term Tenant / Renter?

The question is a very easy one to answer! .. the longer your tenants  / renters stay in your rental properties,  the more consistent your monthly rental income will be.

This then lets you plan into the future with more confidence.

How to nurture happy tenants / renters

One of the best ways to keep your tenants / renters happy is to have in place a maintenance program which they are made aware of.

They can live in your rental property and know to expect maintenance tasks to be carried out at certain times in the year.

The effect of this is twofold

(1)  Your tenant/ renter feels cared for and comfortable with your style of management,

(2)  They are going to be less inclined to look “over the bridge” and want to move.

The longer your property is filled by a tenant / renter you will find a number of additional psychological factors start to have an effect.

• They become familiar with the neighbourhood
• Friends and family become familiar with the place they are staying
• They become more involved with the community
• They get a feeling of  belonging.

These factors are all latent, hidden factors which, when combined, help to make your tenant / renter comfortable and happy.

Give more reasons to be cheerful

It is part of your job to make sure that you add to their feeling of comfort by ensuring that your maintenance tasks,  which you have listed and shown to your tenant / renter,  are carried out by the dates you said they would be completed.

You have started to establish an important bond of trust which can grow the longer they stay, as long as you do what you say you are going to do.

Tenants / Renters problems become your stepping stones

You also have to ensure that whenever a problem occurs with the property (at 22.00 on a Friday night a phone call comes in about a leaking pipe, or a blocked toilet or a problem with the gas  … in fact a problem about anything!) you have to attend to it straight away!

The hassle and inconvenience of late night call outs can be mitigated considerably by having in place a list of Trades people ( see the article “Prolong the Life of your Rental Property Tenant” ) who can carry out the work timeously and to an acceptable standard.

Knowing me .. knowing you

Always make sure that your tenant/ renter can contact you either on your office number,  your mobile or by email.

Often,  if a problem is reported late in the day or late on a Friday, or over the week-end, the tenant/ renter does not expect it to be attended to until the following Monday (unless it is really major).

If you have your Trades people in place, more often than not,  they will attend to the problem before the Monday,  and you will be in the good books even more!

A problem quickly solved

Again, the very fact that a problem at your rental property is quickly solved,  means you have turned a problem into your own stepping stone of progress to acceptability. Now your tenant / renter feels even more cared for, and increasingly less inclined to move away.

What I have noted above is all common sense and not difficult to do.

Don’t slip up!

If, however, you breach the trust that you have built up, it can take an inordinate amount of extra time to repair the damage and get back to where you were before.

During a spell like this, you have more chance of losing your tenant and losing your regular monthly happy rental cheque.

So,  the moral of the story is “don’t let a slip become a landslide!”

Insurance for your renters and their personal possessions.

Firstly let me ask this question……

Would you buy an umbrella if it didn’t keep you dry? … I wouldn’t!

We all know that insurance is a good idea, because it gives you peace of mind.

The people who rent from you,  and live in your rental property,  deserve to have the opportunity presented to them of being able to obtain the insurance they need.

They deserve the chance to have proper insurance cover, ensuring they are completely covered (and kept dry).

What is the reason for renters insurance cover?

Quite simply put, renters with the proper cover in place are provided with protection for both their personal well being, and their financial well-being.

Without warning events happen totally outwith your control.
In the blink of an eye your life can change so dramatically. What you once thought was safe and secure … suddenly is gone.

Renters personal property may be worth more than they realize

Renters Insurance must contain sufficient benefits so as to provide a completely tailored policy.
This then will ensure that the particular potential insurance needs of every renter is taken care of.

Easy to use and quick decisions maketh the Company!

For quick answers to the type of cover most suited to a renters circumstances and budget, an insurance company should have access to the technology that will give new clients immediate access to a no obligation, easy to use renters Insurance Quote System.

After a few clicks of your keyboard, it should be possible to see just how affordable rates are……
for example complete cover can start from as little as little as $16/month for $15,000 worth of coverage.

Renters don’t need Insurance! .. and it’s never going to rain!

Many people who rent think they don’t need renter’s insurance.

The truth is that many of the daily concerns renters face are no different from those confronting the average homeowner.
A renter is still at risk of losing all their possessions to fire, burglary, theft, storms, water damage, and other unexpected perils.
As a landlord, or real estate owner, the chances are that your own property insurance policy will most likely not protect a renter in the event of them losing all their possessions.

Renters in America need the best umbrellas!

Renters deserve to have access to a company that can offer a comprehensive Renters Insurance package for anyone who rents a home. This can be a house or an apartment.

What are the 3 main problems long associated with US Homeowners Insurance?

• High fixed costs
• Limited distribution
• Minimal technological innovation

What should the American Home Insurance business provide?

Expert catastrophe management systems… in other words, consumers want access to

• Industry leading technology
• Quality Insurance products
• Outstanding customer service
• Low premiums
• Nationwide coverage

In a stroke of a pen renters can open their umbrellas!

The service and cover a renter needs can be found through a company called Homesite Insurance, and their Renter’s Insurance policies.

Get a Renters Insurance Quote and Purchase a Policy Online in Minutes

Their policies are designed to
• protect renter’s personal possessions
• protect against any personal liability
• provide renters with assistance if the home they are renting is damaged due to a loss.
• Homesite renter’s insurance policies are based on the ISO HO-04® and provide coverage for personal property.

Ok.. Who are Homesite?

Homesite is a company that was founded in 1997, and focuses exclusively on two specific markets:
• Homeowners insurance
• Renters insurance

Are they stable?

Solid financial stability and extensive management experience provide the foundation for Homesite’s comprehensive coverage and exceptional service.
The equity financing for Homesite was arranged by Morgan Stanley Capital Partners, the private equity group of Morgan Stanley, the global financial services firm.

Are Homesite acceptable to lenders?

Homesite has an A’ (A Prime) Unsurpassed Financial stability rating from Demotech, a firm whose rating is accepted by mortgage companies and acceptable for use by Fannie Mae and Freddie Mac.

You can lead a horse to water.. and you can make it drink!

At the very least, and as a responsible landlord, you should be offering all your renters the chance to consider taking out a renter’s insurance policy.
You could make the insurance policy payment each month a condition of their lease, as it is in their own interest to protect their personal possessions from all the hazards associated with owning a whole variety of “things” which form each person’s personal possessions list.

Cost is always a factor, and renters will have to weigh up the cost of having the insurance and peace of mind it gives them, compared to not having the insurance and facing complete loss should an insurable event occur ( like fire damage, theft of items or storm damage).

When the rain starts it’s always good to know you can get complete shelter under a good umbrella!

Get a Free Renters Insurance Quote,  and surprise yourself at the low cost!

Over the course of the years that you own and rent out your rental property, you will undoubtedly be faced with wear and tear of the property.

If your sole aim from the property is to achieve the maximum rental income for the least expense, the chances are that you will ignore basic maintenance tasks and wait for major problems to occur before having to pay out cash for repair work to be carried out.

The above type of approach is okay, but it certainly stores up a lot of problems which can combine and have detrimental knock-on effects further down the line in the guise of not the best tenants,  plus, unnecessary tax payments to the IRS!

Let me explain

The property fabric has a value which is your “Equity“ when you come to sell.

In order to enhance the equity in the property you want to have the lowest possible mortgage loan (or even better no loan!) against the property.

That is quite obvious; however, the value of the property can be greatly influenced by the condition of the property.

A well maintained property will command a better value than a poorly maintained property.

A well maintained property will attract tenants who are more than likely going to help you look after the property and as a consequence reduce your overall expenses in keeping the property in good condition.

Before you start to worry about the cost of repairs to keep the property in a good condition you can take heart from the fact that you will be eligible for tax relief on the costs incurred in keeping your property in good condition.

Tenant-Paid Expenses

If your tenant pays for an expense on your behalf, this is considered income… for example; he pays for an emergency repair to the washing machine.

• Make a claim

Now, you can claim the repair bill for the washing machine as a rental expense.

Services from the Tenant

If agreeable, you may agree to forgo rent from the tenant in lieu of his time to,  for example, paint and / or paper the rental property.

Let’s say the rent was $650 a month, and you agreed to waive this rent for 1 month as his costs for carrying out the work.

• Make a claim

You have to include this $650 as income,  even although you did not physically receive the money, however,  like all good stories there is a happy ending here!…  because you can deduct the$ 650 as a legitimate expense!

Improvements are not always the best treatment!

Be aware of how the IRS view repairs to a rental property as opposed to Improvements / Renovations.

What is considered a repair?

Repairs include

• Painting,
• Fixing a broken toilet
• Replacing a faulty light switch
• Depreciation
• Insurance
• Taxes
• Lawn care
• Tax return preparation fee
• Losses from causalities (hurricane, earthquake, flood, etc.) or thefts

Repair and taxes

A repair keeps your rental property in good condition and is a deductible expense in the year that you pay for it.

What is considered an Improvement Renovation?

Improvements can include a new roof, patio or garage.

Improvements / Renovations and taxes

Improvements add value to your property and are not deductible when you pay for them. .. read that again … Improvements add value to your property and are not deductible when you pay for them!

The cost of recovering the improvement / renovation costs have to be depreciated over the lifespan of the property.

Do not Repair .. do not pass go .. do not collect $ 200.00!

If you leave repairs undone, and the problem starts to become worse and worse, you may find that the repair suddenly is classed as an Improvement or Renovation by the IRS

As stated earlier, Improvements are not deductible when they are paid for … you have to depreciate the cost of improvements over the property’s lifetime.

Recap on Repairs vs Improvements / Renovations

So, with Repairs you get immediate tax relief if claimed for in time…. This can make your IRS bill so much better to read!

Whereas your Improvements / Renovations don’t qualify for immediate tax relief and your IRS bill will look worse!

The IRS does give you a certain degree of flexibility with regard to the items you can class as either repairs or improvements.

Whatever you are claiming for, you have to be able substantiate your claim by producing receipts.

It is also important to remember that money spent on Improvements / Renovations could be set against your taxable liability when you come to sell the property.

Keep good records and always keep receipts.

There are other areas to consider with regard to taxes, and these include

• Security deposits
• Mortgage expenses
• Travel expenses
• If you own a rental condominium or cooperative, each has some special rules.
• Are you a passive real estate investor?
• Are you a real estate professional?

Do your calculations and consult with a qualified tax adviser to make sure you are doing the right thing and paying the least taxes!

Prolong the life of your tenant  ..  It is not rocket science here, it’s pure common sense  ..  Trades people are your “gold dust” ..  When people talk .. others listen and believe!!  ..  Freshen up all the time  ..  Internet technology and nettles  ..  Create a website that is an offshoot of your main property rental website  ..  By now your grey cells must be working overtime!  ..  Free Home Delivery is a great add on!  ..  Now take another step!  ..  Arms & Legs!  ..  No need to think twice  ..  Why stay in contact?  ..  Stability and cheques!

Prolong the life of your tenant

Running a property rental business has many issues to address, but the number 1 issue you have to address is to fill your property, and whenever possible, prolong the life of your rental property tenant!

If your tenant is going to leave,  for whatever reason,  you are then faced with the task of filling your rental property again!

If you have taken on board the ideas in the article “Advertising ideas!” … you really should not have too much bother filling your property …. But why not totally avoid this situation happening? .. or at the very least, reduce the number of time a rental property tenant says they want to leave!

It is not rocket science here, it’s pure common sense.

Your tenants need to be treated like real human beings; they need to be contacted on a regular basis.

Any, and I mean any problems they report, about the property should really be dealt with immediately.

I cannot recommend strongly enough that to keep your business ahead of your competition, you need to have tradesmen on hand who can respond to water, gas, electric or other problems “at the drop of a hat”.

Trades people are your “gold dust”

Because you are running a rental property business, it means that you are always going to need trades people, and they know it.

They want to give you a service you can rely on….. if they don’t,  it is quite simple for you to say “goodbye” and move onto another tradesperson who is keener to make an impression,  and keener to establish a long term relationship with a firm they know will give them work on a regular basis.

When people talk .. others listen and believe!!

The knock on effect of having quick, reliable and competent trades people on hand, feeds down the line for you.  You don’t know when it will happen … but people will talk about your business

“ I called late yesterday and they were out after only 1 hour .. I was relieved to not to have to wait! “

“The water leak was sorted so quickly by my landlords’ plumber! ”

“I had a problem with my washing machine and the landlord had someone  out within 4 hours,  and they mended it there and then .. that was great!”

These are the sort of comments you want to hear from your tenants time after time after time!

Your tenant feels  important and comfortable with you, and as a consequence less inclined to look about for other places to stay if they know they are being looked after.

Freshen up all the time

Wherever possible, try to keep your property “fresh”   .. well maintained and well decorated.

There are two  reasons for doing this ..

(1)    You are maintaining value.

Whenever you come to sell your rental property, you do not want to be faced with huge costs to “get the property ready” … it’s far easier to do little tasks regularly to keep improving and upgrading your property.

(2)    Your tenant will like that!

If your tenant is living in a property that is being looked after .. they will feel looked after.  This really does add to their” comfort zone” and is another reason for your tenant to stay your tenant.

Internet technology and nettles

Grasp a nettle and you feel pain,.. but, touch a nettle carefully…. and you will avoid pain,  allowing  you to move on to bigger and better things…

Think about this for a minute.. You have a website advertising your properties… you have touched the nettle of internet technology and you can now use it without pain …  so why not take it a stage further and harness more possibilities from the internet…. and use the internet to help you grow?

Create a website that is an offshoot of your main property rental website ….

Tell your tenant that because they are your tenant, they will gain special access to your special and exclusive Online Shopping Website.

By now your grey cells must be working overtime!

Take this as far as you want.

In setting up your online shopping website, you will have affiliated with a number of big name stores …. They want the business and they will pay you a commission for you sending customers to them.

Your tenant gets access to exclusive deals and vast choices, all from the comfort of their chair in their warm house.

Free Home Delivery is a great add on!

Free Home Delivery cuts out the hassle of having to find parking and practise Olympic weightlifting as they  carry shopping bags for what seems like miles and miles!

The convenience of tapping a few computer keys makes this a great “add on” for your tenants.

Now take another step!

You can even expand your website idea further and offer your preferred trades people a spot on your website under “property maintenance”  …. Any enquiries you receive can then be passed on to your trades people …they will appreciate this advertising on their behalf!

Arms & Legs!

Now you will find this website idea developing arms and legs….  as you realise you can offer your tenants online booking for Holidays, Plane journeys, Train journeys, Car rentals……. this list can just grow and grow!

So many companies are happy to “affiliate” with you, and you can offer your tenants a service which they would lose if they left your rental property.

No need to think twice

All the above points in this article will help to create a more than convincing case for a tenant to think twice before deciding to move.

Why stay in contact?

Keeping in contact with your tenant definitely helps to prolong their tenancy.

This simple task has so many beneficial effects that will let you build a rental portfolio that consistently has tenants in situ for long periods of time.

Stability and cheques!

This stability cascades down into your pocket.

You will receive regular and consistent property rental cheques, and if your online shopping takes off. who knows where that will go!

Stable and happy tenants let you achieve a peace of mind that many property rental businesses do not have.

Before you look at particular rental “hotspots”  throughout the world,  there are a number of parameters you have to factor into your thinking before making a rental property investment decision.

How to be attractive

For a town or a city to be attractive for people to live in you have to consider not only how stable employment is, in and around the area,  but also, what career prospects look like for the future,  in relation to the industries in and close to areas of interest.

Career prospects are always linked to what the growth prospects of the industries in these areas look like.

Before the Credit Crunch

Before the credit crunch really hit home, tourism, energy, manufacturing and finance were the driving forces behind many economies.

A year later we find these industries have declined as quickly as snow melting on a sunny day, and now we are finding government programmes with complicated financial structures that are propping up many sectors of many economies.

These measures are holding fragile economies together,  but,  they are not permanent and we have to consider how long governments will be able to sustain these massive financial intervention methods.

How to be in Pole Position

Currently, cities with robust job prospects and stable employment are proving to be most attractive for the real estate rental sector.

It is interesting to observe that the degree of severity during a downturn like this has less impact on employment areas where people have to create new ideas, in other words, where people are paid to think.

Taking this a stage further, consider the professions where people work in the likes of science, engineering, architecture and education.

These types of careers are providing the better job opportunities, and the areas to factor in when looking at where you want to build a rental portfolio.

Now let’s look at America, and the American rental sector

In America there are cities of different sizes which include outlying areas all of which contribute to the overall stability of the “economic bubble” within these city and suburban areas.

Top 10 rental cities in America

Research has shown that at present ( July 2009 ) areas now at the vanguard of the American economic recovery include:

• Huntsville, Alabama  (population about 545,770 as of 2008 census ).
• Albuquerque, New Mexico   (population about 521,999 as of July 2008 census
• Washington, D.C. ( population about  6,549,224 as of 2008 census )
• Charlottesville, Virginia. ( population about  41,228 as of 2008 census )
• Athens, Georgia. ( population about 173,442 as of 2008 census )
• Olympia, Washington . ( population about 45,322 as of 2008 census )
• Madison, Wisconsin ( population about  231,916 as of 2008 census )
• Austin, Tex.  population about  757,688 as of 2009 census )
• Flagstaff, Ariz. population about  127,450 as of 2007 census )
• Raleigh, North Carolina ( population about  392,552 as of 2008 census )

So if you are looking where to buy rental properties in America and you want to know that long term employment prospects will keep your tenants in your rental properties for a long time with stable job prospects, the above areas are certainly worth considering.

Australian rental sector

Sydney and Canberra are well placed in the areas of employment and public sector involvement, making them areas where there is a strong demand for rental properties.

It appears that people are unable, or unwilling to commit to house purchase in these areas due to the very high property prices

Rental Demand continues

Due to the high property prices in Sydney and Canberra, you will find, of the people wishing to live in these attractive areas;  a large proportion are looking at rental properties as being the best way to establish themselves in these areas.

Obviously when demand is strong, rental prices are also strong and more importantly, liable to remain stable.

This scenario is a great “decider” for people who wish to invest in real estate for rental purposes,  and does not only apply to Australia!

The United Kingdom Rental Sector

Before the credit crisis hit the United Kingdom,  lending policies were so slack that everybody and their auntie was taking out a mortgage!

Now these lenders are weeping and wailing ……wishing they had been more prudent in their lending!

It’s too late to look back.

Currently,  many foreign investors are seeing certain areas throughout the United Kingdom as being prime targets for investment properties.

The excesses of the property boom in the UK, when many thousands of people were given mortgages they couldn’t really afford,  has resulted in the country being seen by bargain hunters as a preferred target as re-possessions rise.

Below I have indicated some of the larger populated parts of the UK … please take note here that some of these areas have been severely effected by job losses and therefore unemployment is on the rise ( almost touching 2.5 million for the whole of the UK, as of 12th August 2009 ).

Rental Opportunities

Property investors are aware of the potential value in buying repossessed property,  and see some parts of the UK as ideal “opportunity areas” for purchasing rental property.

The population figures indicate the potential for demand for housing accommodation.

Due to the chronic shortage of good housing stock, rental properties will continue to be in demand.

Help with the rent!

Obviously, employment is an important issue in all these areas,  but Government help in the form of Local Housing Allowances  has resulted in people who are no longer in work,  or in lesser paid jobs, to still to be able to afford their monthly rental payments.

Ability to meet rental payments is an important part of your decidion making process,  no matter what part of the world you are investing in,  when deciding on the location(s) of your real estate purchase.

Areas Investors are looking at…  for bargain properties!

I have noted below areas that are being targeted by investors looking for a bargain

• The Greater Metropolitan area of London ( population 13,000.000 from census in 2007)
• Birmingham ( population  1,006,500 from census in 2006 )
• Liverpool( population  435,500 from census in 2007 )
• Leeds: ( population 761,100 from census in  2007 )
• Newcastle: ( population  189,863 from census in 2001 )
• Bristol: (  population  416,400  from census in 2007)
• Cardif( population 321,000 from census in 2006 )
• Edinburgh ( population  471,650 from census in 2007 )
• Perth( population   43,450 from census in 2001 )
• Stirling( population  41,243  from census in 2001 )
• Glasgow( population   580,690 from census in 2005 )
• Aberdeen( population  202,37 from census in  2007 )

Above is a selection of cities/ areas,  all with potentially strong housing demands and,  as a consequence, potentially strong rental demand.

Many of these areas are well positioned to capitalise on the recovery ( when it happens).

This will mean that employment and career prospects in these areas will certainly look promising, as the entire country begins to experience the “green shoots of recovery” .

This article has only touched on a few areas throughout the world that show potential for Real Estate Rental Property investors who wish to start to build a rental portfolio, or wish to expand their current Rental Portfolio.

Further articles will be released in the coming months on this topic, and I will  “travel round the world” providing helpful information to all my readers.

It would certainly be of great benefit to my readers, if anyone reading this knows of good property rental demand in their local area.  This can be anywhere in the world.

So, if you want to contribute with your knowledge and or experience,  why not pop an email to Rentals@buildarentalportfolio.com and tell us a little about the rental demand in your area.

I will say thanks now for your support!

The next article is about how to Investment in Rental Property with little or no deposit!.. and it also explains how people from anywhere in the world,  with access to a computer can turn themselves into successful real estate rental entrepreneurs!