An Effective Guide to Winterizing Your Rental Property While Occupied

Winterizing your property is a major undertaking and can be made even more complicated if you have tenants already living on the premises. That said, it is still doable and necessary for the comfort of the renters and the integrity of the property. Before you begin, you can set up a plan in steps on what tasks to handle to ensure you don't miss out on anything. 

The tasks include;

1. Notifying renters of the intended winterization project — Use various communication methods to ensure everybody is aware of the intended undertaking and the set time and dates. These include texts, emails, phone calls, and even in-person visits. 

2. Evaluating the property for minor repairs — E.g., Cracked walkways, damaged windows, broken installations, and more. Remember that some of these installations are instrumental in keeping the cold out.  

3. Inspection by licensed HVAC professionals — Their work is to check the heating systems and furnace area to ascertain they're in tip-top working condition and to repair if necessary. 

4. Working with a landscaper on the following — Keeping trees and branches trimmed, raking fallen leaves, cutting back dead growth, and preparing plants for winter. 

5. Unhooking hoses — This is so that the water doesn't freeze and burst the pipes. Also, drain pipes not in use can be filled with non-toxic anti-freeze.

6. Installing gutter guards — These prevent interference of water flow from debris and also save on cleaning time afterward.

7. Weatherstripping window sills and doors — For this, caulking in all air penetration gaps prevents cold air from leaking in.

8. Install a programmable thermostat — With this in the house, residents don't have to do much to keep temperatures bearable and living conditions comfortable. 

9. Encourage tenants to open kitchen and bathroom cabinets — This allows heat circulating in the house to radiate around pipes.

For any of the above tasks that may require using a professional, you'll need to sanitize the premises before and after working on it. Also, a healthy distance between the contracted individual, yourself, and the residents in the house may help keep everybody safe from Covid-19. 

The work may also be a bit much for you to handle if you have multiple rented units or have other projects to take care of. However, hiring a property management service to handle the work is not out of the question either. After all, they can easily handle and manage all these tasks and provide you with the finished result. Whatever you choose, make sure to be considerate of your renters during the process to ensure they're comfortable and that their needs are met. 

 

Best Practices for Open Houses Amidst COVID-19 + Flu Season

Open house visitations by potential buyers or renters remains an important part of the real estate process. While COVID-19 and the flu have limited the ability to hold open houses and changed how they operate, it is still largely possible to host an open house. Before you do so however it is important to consult this quick guide on the matter.

Can I hold an Open House?

In order to hold an Open House first meet with your property brokers to discuss whether they are allowing them or not.  The next step is to consult city, state and federal guidelines and possible "Shelter in Place" orders. Shelter in Place orders can either allow or disallow Open Houses based on if real estate is listed as an essential service or not in the specific order. These recommendations and policies affect both if you can host an Open House and how they should look if it is permissible. If you have taken these steps and carefully considered, you now can proceed to preparing the Open House.

What is the Protocol for Open House Visitors?

The most important factor in safety for Open Houses' during this time is managing the amount of visitors on the property and that they wear proper PPE.  Less than ten visitors are allowed in an Open House at the same time as per guidance from both the CDC and the president. It is also recommended to break up visiting groups so that only one group is on the property at any given time. When visitors are on the property you should ask them to limit the surfaces they touch-only doorknobs if possible. In addition to these measures, it is within your right to ask potential visitors if they are sick or have traveled recently, however ensure that you ask all visiting members to avoid discrimination. Once the visitors arrive, make sure they all are wearing proper PPE, being a face mask or other variant.

What Cleaning Procedures are Necessary?

When holding an Open House it is highly recommended to clean between visiting parties. This will ensure your safety, their safety and add an extra layer of comfort to your visitors as they survey the property.  When a party leaves, CDC guidelines are to wash your own hands for 20 seconds first. After this, clean the touch points in the house, usually doorknobs and other handles, with soap and water followed by disinfectant. In addition to this, open the windows in the house and turn on the fans to allow the air to filter properly within the house.

If you have any further questions make sure to ask your broker or consult the full CDC, presidential and local guidelines. Good luck on hosting your Open House and stay safe!

Repaint, Reface or Replace Kitchen Cabinets?

Kitchens are an important room in any home. People spend hours in them cooking, eating, and cleaning. The cabinets and countertops see a lot of action, so there comes a point when some sort of renovation is called for. The question every real estate investor asks is: Should I repaint, reface, or replace the kitchen cabinets?" There are basic factors to take into account:

The Basic Factors

1. Do you, as the real estate investor intend to rent the property or flip it?

If it is a rental, will an improved kitchen encourage prospective tenants to choose your property before others currently available for lease? If you intend to sell the property, will improving the kitchen help you to sell quickly and at a higher price, and will the higher price at least cover the costs of improvement?

2. How does the rest of the interior compare to the kitchen?

If the other rooms' fixtures, carpets, etc. are all in good shape, but are let down by the kitchen, then bringing that up to par with everywhere else may be a good decision. If the whole house would benefit from improvement, is it worth only renovating the kitchen cabinetry?

Repaint, Reface, or Replace

Consider the cabinetry as a whole:

1. Are the fronts simply out of style? If so, the decision is about repaint or reface. If the cabinetry is metal and rusty, then repainting makes less sense. There is often so much work involved in preparing old metal doors, interior surfaces, and shelves, that replacement may be the only sound option.
2. Are the cabinets too outdated, poorly designed, and constructed? If they are not very functional in terms of size, load-bearing capacity, location or the number of cabinets, then replacement may be the best solution. Families want and need enough space to store all the pots and pans, plates, drinkware, and other cooking items to meet today's fashions and needs - woks, pizza stones, etc.
3. Have the floor or walls sunk or moved resulting in gaps between them and the cabinets? If so, can that problem be solved without tearing out and replacing the cabinets? If not, full kitchen refurbishment may be the best option.
4. Is the cabinetry moldy or hygienically compromised in other ways? If so, can it be corrected to meet state or municipal standards? A buyer's home inspector or future tenant who discovers what they consider to be an attempt to hide such a problem may cause a bigger problem than replacing the old cabinets would have been.
5. If the cabinets, themselves, are sound, focus on aesthetics and cost. Can the door and drawer fronts be painted, so they look new and welcoming? If not, it may be better to avoid the "instant turn off" by a prospective buyer or tenant by refacing them.
6. What will the initial cost be, and can it be easily recovered in rental income or sale price?  Replacing a set of cabinets can cost anywhere from $10,000 and up. Refacing will cost $5000 or so depending on the materials used. Painting is the least costly solution.

Final Comment

If the current kitchen cabinetry is safe and functional enough to attract tenants or buyers, then refacing or repainting may be the right choice. If simply addressing the surface issues will not deliver a lasting and sound result, then full replacement may be the right route to follow.

Rental Property Improvements for Remote Working Tenants

Why Make Improvements for Remote Working and WFH Tenants?

More people are working from home (WFH), and the number is likely to grow. As a rental property owner, if you make your property more attractive to remote working and WFH tenants, they are more likely to choose to rent your property than anyone else's, and are more likely to renew their lease, thus reducing vacancies. The improvements may also enable you to raise the rent to cover the costs of improvements and to attract your preferred tenant.

Many tenants look for an efficient and convenient workplace as well as a comfortable and pleasant home. Many suggested improvements deliver both.

The number and type of improvements you can make obviously depends on the individual property. A one bedroom apartment offers fewer options than a three bedroom house, so please look at this list from two perspectives:

• Does your property lend itself to the idea?
• Can you play with the basic idea and come up with something that you can use?

The 10 Improvements to Consider

The Property Itself

1. Repaint the walls in the "office area" so they are pleasant, calming, and bland. If the tenant attends Zoom or similar meetings, having a plain background makes sense.
2. Keep the HVAC well maintained. Efficient WFH all day demands comfort in the workplace.
3. Add shelving so frequently-used items and reference materials are always to hand.
4. If you have designated a bedroom as the home office, and if it has a walk-in closet, add shelving that will take both clothes and, say, letter-size and legal-size files. Even if the next tenant does not work from home, useful and well-designed shelving is always a plus. Children's toys will be kept tidy and safe just as easily as files and clothing.
5. Fix a magnetic or regular dry-erase whiteboard and pinboard to the office wall. If the room is used as a bedroom, a child will happily use both for fun or schoolwork.

Furniture

1. Offering a partially-furnished property adds rental value. Buying a pre-owned desk and executive chair looks good, adds to a tenant's sense of importance, and is comfortable to sit at all day.
2. Provide inexpensive filing cabinets and bookshelves. Give the tenant permission to modify the spacing by rearranging the shelves.

Computer and WiFi

1. Provide fast internet and a powerful WiFi router. You could even make it a dual band router and WiFi extender to make it easy to access fast internet service from anywhere in the property. Again, if the tenant does not WFH, many play computer games and watch films on their computer,
2. Provide a big external monitor to make multi-screen use easy and efficient.  It can be removed if not needed, but if it is wanted, it is the sort of extra that delivers the "wow factor."
3. We live in the Battery Age: laptops, tablets, phones, etc. So providing a charging accessory in the home office will send both a message about the property's unique potential, and will enable a higher rent charge.

The Takeaway

Stand out from your competition, and charge a higher rent. These improvements matter to remote working and WFH tenants. They also make a traditional home more attractive. Office furniture and technology equipment can be easily removed if not wanted.

Sincerely,

Getting Rid of Popcorn Ceilings

Popcorn ceilings were popular in the 1970s, and chances are you might own an older rental property that still has them. They are unsightly, and could potentially scare away potential tenants. If tenants are not scared away completely, you might have to drastically lower your rent price, which means you will bring in less income.

Popcorn Ceilings and Safety 

In addition to just being out of style, many believe popcorn ceilings are not safe. During the time period that popcorn ceilings were popular, asbestos was also popular and used frequently by home builders. Many associate one with the other. If a potential client sees a popcorn ceiling, he might also assume your home has asbestos, which can cause health problems. 

How to Remove Popcorn Ceilings

It might be better to have a professional company remove your popcorn ceilings. They have the tools and equipment to do it easily. And, if your home does have asbestos hidden away, the professionals can remove that while you are out of the home, so you do not breathe it in.

If you remove the popcorn ceilings yourself, there are a few steps to follow:

• Prepare for a big mess by placing drop cloths on the floor, and over the furniture
• With a large, wide putty knife, scrape the popcorn ceiling. This might be easier if the ceiling is wet. If it does not work well dry, consider spraying the ceiling with water.
• You will need to remove any ceiling fans or lights to scrape behind them.
• Take care not to scrape too hard and create gouges that you will need to fill in before painting

Is it worth it to remove Popcorn Ceilings?

Yes and no. Yes, it is worth it to remove popcorn ceilings. No, it is not worth it to do it yourself. It is a messy job, and if not done right, the dust and debris that you inhale could cause you bodily harm. It is worth it to have a professional company remove the ceilings. They have the right tools, and know how to test for asbestos. 

Reach out and contact us to discuss any questions regarding popcorn ceilings in your rental properties!

 

Why do Gutters Matter?

 

Gutters are an important part of a building's exterior. Badly-maintained gutters can result in basic roof damage because they pull away from the building, as well as in water damage to walls and foundation areas because rain and snow melt is not channeled away from the building. As the rental property owner, it is essential that the lease makes it clear who is and who is not responsible for gutter maintenance and repair.

If the tenant has or assumes responsibility, there are two problem areas which may arise:

• A careless tenant may not maintain and repair the gutters properly, resulting in direct or subsequent damage to roof, walls, sidings, interior roof space, etc.
• The tenant may fall off a ladder or off the roof and make a legal claim because the accident happened on your property.

Gutter Management and Maintenance

• Job 1 is to check the gutters are serviceable. No rust, poor joints, especially at the corners, and no holes. All these allow water to seep or run into the home or down the wall and to pool at the foundations.
• Job 2 is to keep the gutters clean of leaves and other debris. They cause two major problems: if water cannot flow, it overflows, and debris can become a home to insects and vermin which can invade the home.
• Cleaning should be done after the trees have all lost their leaves, after high winds may have blown debris onto the roof, or at any time if last year's maintenance was missed.
• Wear the right clothing: gloves, eye goggles, overalls, and headgear. If you are climbing a ladder to reach the roof, consider wearing a helmet, and how you can minimize slip-and-fall accidents.
• Use the right equipment: a roof rake, water hose, leaf blower or pressure washer as appropriate.
• Clean the roof before the gutters, so anything that goes from the roof into the gutters only has to be dealt with once.
  You may decide to hose the roof, then the gutters or use a leaf blower or pressure washer on the gutters.
• Clean out the downspouts using a flexible brush or water jet. A blocked downspout is almost as bad as a blocked gutter.

Winterize the Gutters

Ice dams can result in water damage. When the melted snow backs up behind a block of snow and ice it may find a way into the roof space and down onto ceilings. If part of the roof is susceptible to ice dams, install a zigzag heat cable from an outside GFCI, up a downspout (to keep it above freezing) and attach it to the roof edge.

Install Gutter Covers

There are several products on the market which are placed over the gutters to let water flow in, but which keep out leaves and other debris. They remove the need to continually clean the gutters.

Complete Laundry Room To-DO List During Tenant Turnovers

The Laundry Room

The laundry room is important. Having a laundry room as opposed to keeping the washing machine and dryer (or not having a dryer) in the kitchen or garage can have a positive impact on prospective tenants. Many people either expect the laundry room to be in good condition, and will be disappointed if it is not, or they will be pleased to see the property has one. Here is a list of to-do's to encourage a new tenant to want to move in, and to encourage them to care for laundry room while they live there.

Typical Jobs

Some tasks should always be completed during tenant turnovers:

1. Inspect and clean the floor. The corners of laundry rooms often collect more fluff and bits of tissue than other rooms.
2. Clean the baseboards.
3. Check the high corners for accumulated dust and cobwebs
4. Clean the lint traps.
5. Check all door seals are in good condition, and replace if necessary.
6. Check behind the machines to see if anything was dropped by the previous tenant. Last-minute washing can be hurried; something can get accidentally dropped, forgotten, and left. 
7. Check the dryer line to the outside is in place and clamped tight. Loose pipes allow damp air and, possibly, lint not caught by the lint trap into the room.
8. Check the electric sockets, the plugs and cables are in good condition.
9. Unplug the cables and place them neatly over the machines. This adds a professional touch, a sort of staging, when a prospective tenant walks in.
10. Check the lights in case a bulb needs to be replaced.
11. Check the HVAC outlets to make sure they are clean. Look inside the duct to check nothing has fallen in. Coins and pieces of small jewelry falling out of a pocket can finish up in the ductwork.
12. Arrange any preventive or needed maintenance by a licensed and insured contractor.
13. It is unlikely, but if the previous tenant has moved the machines, replace them in such a way that it is convenient to remove clothes from the washing machine into the dryer when both doors are open. (This can be done when the maintenance work is being done or after inspecting behind the machines.)

Possible Jobs

1. Laundry rooms are for cleaning clothes, so the room, itself, should look well cared for. If the walls need to be painted or the floor covering replaced, now is the time to do it.
2. Replace (or install) a GFCI if necessary, after testing.
3. Upgrade the lighting to make the room look brighter, especially if it is also used for ironing clothes.
4. Decide if it would help to attract new tenants, and provide an ironing board, a laundry basket to hold before washing them.
5. Consider adding a sink.
6. Provide a new box of fabric softener sheets and some washing pods, so the new tenant can do an immediate wash after moving in without having to wonder where their own items are boxed.

The Takeaway

A perfect laundry room helps prospective tenants to choose your property, it implies good management, so the conscientious tenant will take it as a signal to look after the property as well. Convenient and well-maintained laundry rooms are part of the overall strategy of encouraging good tenants to renew their lease.

How to Improve Your Rental Properties Using Lighting

Small and affordable improvements to your property's lighting can have a big effect on potential tenants looking for a new home. Most people like to live in a light and bright home, they prefer a safe and welcoming home, and they want to keep their utility bills as low as possible. Changing out or adding new lighting can achieve all three. When a potential tenant is looking at and comparing several properties - all of which may be in the right place, be the right size, and in the right condition - it is often the little things that make them choose one over all the others. The greater the occupancy, the higher the annual profit. And those small but important improvements may be written off against this year's taxes.

Light and Bright

Modern LED and CFL lighting gives out more light than traditional, incandescent light bulbs. A traditional 60 watt bulb is not really bright enough to read by and gives out about 1100 lumens.  A modern LED light with only a  50 wattage rating will give out 5,500 lumens or about five times as much light. Many LED bulbs come in different designs. Modern LED lighting can look like the traditional bulbs they are replacing, old fashion bulbs to add some quaint charm to a room, and even like works of art to add that "Wow!" factor to a dining room or lounge area. They can also be flat panels to replace the fluorescent kitchen lights which go yellow over time.

So, CFL and LED lighting can look very attractive during the day, and give much better illumination at night or on a dull day. This issue has become even more important since so many kids are now home-schooled and so many adults are working from home.

Safe and Welcoming 

Movement detector lighting helps everyone to feel safer. When an outside light comes on because it detects movement it does two things; it alerts the tenant, so they can check if there is a problem. It also warns potential intruders that they cannot hide under darkness. The other benefit is that if the tenant is arriving home after dark or if they have a visitor, the light comes on as they approach the door to make it easier and safer to get home.

Lower Utilities

Yes, CFL and LED bulbs cost more to buy than incandescent bulbs, but look at the long term and see the difference:

• Useful life: Incandescent bulbs have an average useful life of 1,200 hours, a CFL 8000 hours, and a LED 25,000 hours.
• Wattage (electricity bills are charged in kilowatt hours.) A low-light incandescent bulb uses 60 watts, a CFL bulb will use 14 watts, and a LED bulb only 10 watts.
• The cost over 25,000 hours of use for an incandescent bulb (excluding replacing old bulbs with new ones) is about $180, a CFL will cost about $42, and a LED $30.

The Takeaway

You want prospective tenants to choose your property over someone else's. A home that will be brighter will feel more like a pleasant place to live. Outside lighting offers a sense of security and "homeyness." And the idea of spending less every month on the electricity bill may just be all it needs to have that lease signed today instead of waiting another month for a new tenant.

5 Reasons to Hire a Property Manager During COVID-19

The Value of a Property Manager

Many rental property landlords and investors consider a good property manager to be worth their weight in gold. This year, that opinion has become even more deeply embedded. There are two main reasons for this:

• It has been a difficult year for everyone; many worries, concerns, and frustrations get passed along to someone else. For a tenant, that is often the landlord or the property manager.
• Necessity is the mother of invention, and in challenging times good property managers develop new or improved methods that directly benefit not just themselves, but also the property owner and the tenants.

Let us look at what good property managers are doing and the 5 reasons to hire a property management company during COVID-19.

5 Reasons to Hire a Property Manager

1. They Have the Technology

With social distancing, safer-at-home and work-from-home orders in place in many states, more people are getting more used to remote communication. Automatic email response systems, direct, regular communication and follow-ups,  Zoom and facetime conversations and meetings are becoming the norm. Property management companies will have these systems in place. The tenants will "assume" they can use this technology to moan, question, respond, and report to either their landlord or property manager.  Either the landlord must bur, install, and learn to use new technology or let their property manager do it all.

2. They Have the Greater Need

A rental property investor with a few properties may be tempted to put off this kind of expenditure and hope their tenants will be different from the millions of others who expect technology support. A property manager knows they must invest both the money and the time to get, learn, and use it.

3. Good Property Managers Plan Ahead

The industry will experience the same challenges everywhere in America.  The professional associations to which property managers belong have, are, and will keep looking for ways to make everything better or to stop the everyday practical problems from becoming worse. Landlords can either wait for the problem to arise, act fast after it does, plan ahead, themselves, or leave everything to their property manager.

4. Property Managers Have Their Own Network

Professionals of all sorts network with others, receive industry news reports, practical ideas, informational blogs and so on that helps them to easily stay on the ball. These networks make it easier for the manager of a property to plan and solve than it is for a landlord working alone.

5. Property Managers Handle the Headaches

This year we have seen more overdue rents, more potential evictions, etc. than usual. Individual tenants who need help can speak to their landlord or to the manager who has more experience in helping to resolve problems or to prevent them from happening.

The Takeaway

Experience, practice, professional support, and shared ideas beat the "learn as you go" or "hopefully it won't happen" stance. It is usually good business practice to hire the experts, and this year that principle may be more relevant.

Q4 Check in Why Rental Property Investment is Still a Good Idea

Rental Property Investment

Now is a good time to seriously consider investing in rental property. What matters is for current and would-be investors to understand the current situation and the long-term possibilities. When you know the whats and the whys you can make sound decisions about why investing in rental property is still a good idea.

Let us begin with the basic principles of sound investment:

• Build your profit in on the purchase instead of waiting to make it on the sale.
• Choose your rental property location carefully, so you have a ready market.
• Choose your rental property type to meet your ready market's needs and wants.

Reasons Why Investing Now is a Good Idea

1. Many Homeowners and Rental Property Owners are Financially Overstretched and Need Rescuing.

Potential rentals will come on the market at attractive prices. Anyone who is out of work, on short time, expecting to lose their job may need to sell, despite lenders are offering support packages to help people struggling to pay their mortgage.

Some investors will have over-stretched themselves, so need to sell one or more properties in their portfolio. Others will want to use a 1031 Exchange to change their current strategy so, because of strict time limits, may need to "relinquish" a property at less than they wanted.

In any event, by buying from a "must-sell" owner builds your future profit into the purchase.

2. Some Sellers Will be Happy to Rent Back.

A homeowner who must sell (they bought a new car last year, have long-term repayment plans on new furniture, etc) may want to stay in "their home." so, they will be not only ready, willing, and able tenants, but they will care for their home, perhaps better than a new tenant. This gives you, the investor, instant income from a good and reliable tenant.

3. Work From Home (WFH) Trends Offer Opportunities

Because of COVID-19, more people are working from home. They are also trying to put some distance between them and others. This suggests a trend is beginning in renting single family homes instead of an apartment, or renting a larger property with an extra room which can be used as a home office. Savvy rental property investors get in on new trends as soon as they can to give themselves a head start over their competition.

4. Buy the Fixer-Upper

Many investors buy a property in need of renovation or repair. So, instead of buying, holding, and hoping for a good tenant, savvy investors will use this difficult time when the supply of good tenants may be low in a particular area, to renovate their new investment. When it is ready for a tenant (who will pay a higher rent to live in a recently-renovated property) many of the problems our country now faces will either be lessened or over.

5. Tax Write-Offs Are Still With Us

Lost income, repair costs, business expenses which investors may suffer now mean carry-back and carry-forward options are available. Please discuss details with your CPA.

The Takeaway

Good decisions, based on the basics of sound rental property investment mean now is still a good time to focus on rental property investment.

QUESTIONS POTENTIAL TENANTS MAY ASK AMIDST COVID-19

 

COVID-19 and Your Tenants

The COVID-19 situation is complex and fluid. Different states and municipalities often announce new measures. It is important for landlords and property managers to stay up to date with official announcements, so they can answer the questions potential tenants may ask while the COVID-19 restrictions are in place. It pays to have a written list of answers to potential questions available to help people feel comfortable, and to know they are dealing with professional they can trust. This list of 8 questions will help you to consider how to answer the common ones.

1. How are you helping to keep your tenants safe from COVID?

General questions are to be expected. Most tenants either work or move in public places. Different organizations have different rules, standards, and requirements for people to follow.  If it is a multi-unit building, you will have standards in place for, say, elevators, corridors, laundry facilities, etc. Be ready to provide written guidelines and to answer any follow-on questions.

2. What if I lose my job and can't pay my rent?

Decide whether your standard lease conditions for non-payment and eviction notices are in line with Federal, State, or local policies. If not, explain what they would be after the COVID-19 restrictions end, and what they are during the pandemic.

3. If I do have a money problem will you accept partial rent, and how do I make up the arrears?

Explain that the lack of rent payment must be directly linked to a COVID-19 issue, that you will discuss the specifics in terms of why the rent cannot be paid, how long the problem may last, how high the arrears may be, and what your policies will be for paying them off. Ask the tenant how likely this could happen, and is there a way for them to put money aside in case it does happen.

4. Can I be evicted if I can't pay my rent?

Clarify the standard lease policy, then say how any current legislation does or does not protect a tenant against eviction for non-payment. If you have a "late payment" or "short payment" program, explain it. Add that evictions for other matters, such as damaging property, causing problems with other tenants, etc. are still in force.

5. If I lose my job and have to move away or can't pay my rent, can I break my lease without penalty?

Know your state and municipality's laws or executive orders on this topic. Give the "official" answer, then explain how the particular lease conditions would apply if they are different.

6. If I'm worried about COVID-19 exposure, can I prevent anyone from entering my unit?

Maintenance, repair, bug treatments, etc. are reasons for someone to enter a rented unit. Have your policy in place, and answer the question accordingly. Having a printed, standard process you can hand out will help the tenant to understand that you have already addressed that (and possibly other) concerns.

7. Will you tell me if a neighbor gets infected with COVID?

This is a privacy matter. Landlords and managers are not permitted to give out such information without permission. Tenants should take all necessary precautions themselves and follow the guidelines for masks, social distancing, etc. to keep themselves safe.

8. Can you prevent me from entering the building if I have COVID?

No.

Final Comment

As a landlord, you are ready to answer potential tenant questions about most things. COVID-19 questions are just one more topic. Check with your state and municipality for further information, and give your potential tenants contact details, so they can learn and confirm things for themselves.

Is it Smart to Refinance Your Rental Properties Now?

There is a lot of media buzz going around about being the right time for refinancing, but is it the right time to refinance multiple properties? "The best time to refinance your rental property is when the value of the property is high and interest rates are low." There are other factors to consider.

Importance of Having Liquid Cash On Hand

Other than having actual cash in the bank, "liquid assets are things you own that can be quickly converted into cash without losing value."  Whether you own one or multiple rental properties, without full-time occupancy, expenses can quickly result in a negative return on investment. 

Impact of Economic Downturns 

As our country appears to be slowly recovering from the COVID-19 economic crisis, it's vital to understand how this impacts you as a real estate investor. 

1. The Negative Impact on Cash On Hand
   
   1. You may have to lower rental prices.
   2. You may end up with vacancies or non-paying renters. 
2. A Positive Impact from Cash On Hand
   
   1. There could be opportunities to acquire additional rental properties. 

Home Improvement Loans Should Figure into the Decision

If you're going to take advantage of refinancing a property, you may want to figure in cash for home improvements to increase the value of your property. While cash-out refinancing may be a good idea, it's an even better idea to understand all of your options to make the right decision for you and your properties. 

Considerations in Refinancing Multiple Properties at the Same Time

"Refinancing could be the best idea for some, but that doesn't mean it is ideal for everyone." By having one lender you trust to handle all of your properties, they can help you determine "if it is better to refinance the homes separately, or if it's better to refinance them all at the same time." 

With limits on the number of mortgages you can carry, you may be setting yourself up to miss out on acquiring new ones. Along with missed opportunities, there is more to factor into your decision-making. 

1. "It may be better to pay down one loan more than the other in order to get the best rate and/or terms."
2. "You will typically need a higher credit score than if you were financing just one home."
3. You may also "need more equity when financing more than one property."

Interest rates should not be the only driving factor in refinancing your rental properties. With professional evaluation and guidance, you will have the information to determine when is the right time to refinance your properties, whether one, two, or all of them at the same time. 

Making Stairs Safer in Your Rentals

 

Landlords renting out two-story properties must keep the safety of the tenants in mind when it comes to dealing with the stairs. The safer the stairs are, the more comfortable tenants will feel in their home. Keeping tenants safe is the utmost priority for landlords. Keeping the stairs in your rental safe is a great way to start safety-proofing your rentals.

The following are some great tips to help keep the stairs in your multi-story rental as safe as possible for your tenants:

Install Sturdy Handrails:

Providing your tenants with sturdy handrails to use while they climb up the stairs is one of the best ways that you can help prevent falls in your rentals. Some tenants who have problems walking, climbing, or with their balance may need the assistance of a railing to move safely throughout the home.  Extending the handrail or a safety bar past the last step at the top or bottom of possible to help those who need additional assistance.

Choose Quality Flooring:

When looking at the stairs, you want to choose floor material that helps the tenant maintain their footing while climbing the stairs. Choosing a contrasting floor color can help your tenant clearly see each step. It helps to choose a non-slippery finish to your floor so that clients do not slip or fall while climbing or descending the stairs.

Install Permanent Carpet Runners:

If your staircases have a wood flooring, then you want to consider installing a permanent carpet runner on the stairs. Carpet is much easier to grip onto than hardwood with a slippery wax or finish to it. Permanent carpeting will stay put when people are on the stairs. It will also not rumple to avoid the person slipping or falling. 

Lighting:

Providing good lighting in the area where the stairs are will help people clearly see where they are going. The lighting can help people see that they have sure footing and keep their step steady as they go up or down the stairs. Make sure that there are no glares that keep people from clearly seeing where they're moving to. 

Stair Inspection:

Having your stairs inspected by a certified inspector can help ensure that your stairs meet building and safety codes for your area. Tenants will rest with peace of mind knowing that the stairs in their homes are up to safety standards. It can also help keep you as a landlord out of hot water if a tenant were to fall while living in your rental property by proving that your home upheld the required safety standards in your area.

Consider Lifts/Alternatives:

Some tenants may not be able to use stairs at all. Consider having alternatives available such as lifts to help your tenant navigate your multistory properties. Proper working equipment to assist tenants will ensure their safety in their home.

Conclusions:

These are some great tips to help keep your stairs safe in your rental properties. Limiting falls and helping keep tenants safe is key for landlords who own multiple-story homes. The safer tenants feel, the more likely you are to earn a good reputation as a caring landlord, and the more likely people are to rent your multi-story properties.

Landscaping Strategies for Easy Rental Property Maintenance

Renting homes to tenants involves more than providing places to live. A great rental property is designed to be beautiful, enjoyable, and low-maintenance for everyone involved. This applies not only to the home, but also to the surrounding yard. Smart landscaping can allow tenants to enjoy a great yard without constant maintenance or landscaping services needed. Today, we're covering three low-maintenance and easy rental property landscaping strategies.

 

Flowering Bushes

Bushes are, by far, the best way to create privacy and dynamic landscaping for little-to-know maintenance is flowering bushes. The right bushes will depend on your region. Ideally,  look for fluffy bushes that have soft leaves and non-spiny bark. Flowering bushes are best because they can be decorative, sometimes for most of the year, as well as providing a bit of privacy and greenery.

Flowering bushes may only need to be trimmed once or twice a year, something your tenants can choose to do or you can send someone around for. This type of landscaping doesn't even require a service, just a property manager with a pair of clippers. Flowering bushes are both attractive and low-maintenance.

 

Xeriscaping

There is a new trend in home landscaping called xeriscaping. This is a method of choosing plants that need very little water and very little maintenance. Depending on your climate, xeriscaping might involve year-round plants that survive well in the local climate or you might create a lovely array of cactus and succulents.

Xeriscaping creates interesting and shapely landscaping designs that are not soft, but they do look good and require minimal care.

 

Decorative Mulch and Gravel

Finally, there's the landscaping option that involves little to no plants at all. Decorative gravel or colorful mulch can be used to make a rental home's yard attractive, but in no need of watering or trimming. Woodchips, asphalt shreds, and mulch might be used, for example, in a backyard with an installed playground instead of grass or flowerbeds that need tending. Shapely beds of gravel can create aesthetic patterns in the yard and beautiful curb appeal with no plant-maintenance required. You can also use spacious gravel or mulched flowerbeds between well-spaced low-maintenance plants like trees or bushes.

 

Landscaping your rental homes doesn't have to require constant mowing or care from your tenants or from property management.

Top Basement Renovations with Highest ROI for Flipped Properties

Flipping a home is all about making the smartest choices for your ROI. Investments are only profitable if they proportionately increase the home's value in the next sale. A basement in your flip-project home can provide huge potential, but only if you put it to good use. Finishing a basement or renovating a finished basement can be a boost to your ROI if you make the right upgrades. Let's take a look at the top 3 high-ROI ways to upgrade your flip basement.

 

Finished Living Space Ads Square Feet to the Home

Taking a basement from unfinished to finished has inherent value. Good-quality walls, floors, and ceiling alone can transform a musty storage space into additional square feet of living space. Unfinished basements are not supposed to be listed as square feet of the home because it is not livable. But a finished basement can be an extended living room, den, craft room, or even suites for bedrooms. The square feet alone will increase the selling value of your flip.

 

Additional Bedrooms and Bathrooms

Everyone knows that home value is calculated by the bedroom. A five-bedroom home has greater value in most neighborhoods than a three-bedroom house. Consider transforming a finished basement into one or more additional bedrooms, turning the basement into a darker, quieter place to sleep for new owners with a big family. Extra bathrooms are also inherently valuable. Not only is there another bathroom in the house stats, but a bathroom in the basement ensures convenience of a bathroom on every active floor.

 

Basement Apartment Suite

You can even renovate the basement into a separate suite, like a mother-in-law suite or a space ready to be vacation-rented by the next owners. Basement suites are great for subletting, roommates, or families with teenagers. Not to mention the additional value of another bedroom, bathroom, living space, and/or kitchenette.

 

Best Carpet Colors for Rental Properties

Choosing the right flooring for your rental properties can be a challenge. For living spaces and bedrooms, carpet is often a welcoming choice. The real challenge is choosing the right carpet color and pattern for your rental home. The key is choosing a carpet that is durable, stain-hiding, and creates a canvas for the lives of your tenants.

Here are a few basic tips for choosing the right carpet color for rental homes.

KEEP IT IMPERSONAL WITH NEUTRAL SHADES

Any vivid hue may be a dream carpet for some tenants and a turn-off for others. Color is deeply connected to our personality and self-identity. That's why rental homes should feature neutral-tone carpets in the gray and beige range with undertones of accent colors.

WARM OR COOL CARPET COLORS

Most homes are designed with a subtly warm color scheme. Our lights are a warm yellow-white and wood features in a home are always warm browns. In this design scheme, a carpet that is beige with warm undertones is the better choice. Beige with accents of yellow, orange, and red are warm colors.

In homes with a cool theme with silvered metal and blue-gray paint, the entire design might be cool colors. In this case, choose a soft gray with blue, green, or purple undertones. Blue is the most commonly appealing color.

USE DARKER CARPET SHADES IN THE BEDROOMS

If you use similar carpet of a slightly darker shade in the bedroom, this will create the impression of a more lush environment. Bedrooms will have a psychological transition in the colors of the floor, and stepping into a bedroom will feel like a more personal transition.

SUBTLY IRREGULAR PATTERNS HIDE SMALL STAINS

Last but not least, choose a carpet with a subtly irregular pattern.  Carpets that look attractively mottled are the best at hiding stains and the light damage of use over time. The irregular pattern will help other irregularities to blend in, so the carpet will look better after years of use.

Which Windows are The Right Fit For Your Rental

When you are choosing windows for your rentals, there are so many choices that it can seem overwhelming. Finding the windows that fit your needs can be challenging, and sometimes frustrating. The following are a list of things to consider when choosing the windows to use in your rentals:

PRICE POINT MATTERS:

The price point is key for many investors when they are upgrading windows in their rentals. The more expensive the windows, the more expensive it is to replace all the windows in a rental property. The higher the cost the investors have when maintaining the property, the higher the rent has to be for that unit in order for them to make a profit. Investors look to keep the costs low as possible, so choosing windows on a budget is key to keep costs in control. Most investors will go for a lower-to-mid priced option when selecting windows.

ENERGY EFFICIENCY:

Consider that some energy-efficient windows can help keep the cost of your renter's electric bill in check. Renters will appreciate the savings. The windows are also good to help the environment healthy. There are several companies that offer energy-efficient windows. It's up to the investor to determine if these windows are an investment that they wish to make in their rental properties.

CONSIDER THE WEATHER:

Consider the weather that you get in your area when installing the windows that you are installing in your rental property. If you experience sand, rain, wind, snow, etc. you will need different windows that are built to handle those elements of weather that you get in your geographic area. You will find that windows have different price points based on what kinds and types of weather they are meant to withstand

CONSIDER SPECIAL TYPES OF WINDOWS:

If you are looking for a "special type of window" for a rental property, you will likely end up paying more for those windows. Certain styles of windows like sliding windows, casement windows, fixed windows, picture windows, or bay windows. These windows all have different features and purposes that can raise the windows cost to purchase and install. 

TAKE STRUCTURES OF WINDOWS INTO ACCOUNT:

Certain windows that are structured to be double-glazed or double-paned are likely to be more expensive than the traditional builder-level windows. Consider the style and structures of the windows, you need and what price you are willing to pay for those windows. Other "extras" that can raise the price of you windows include windows made from fiberglass, aluminum, or vinyl as well as having a "sash" that can be moved and tilted in.

Finally, make sure that you get the proper e-coating for the windows that you have purchased. Windows that have e-coating outside protect against heat are e-coated on the outside and those that protect against the cold are e-coated inside.

CONCLUSIONS: 

There is a lot to consider when installing windows in your rental property. Considering the types of weather that you get in the area where your rental is located is a great first step to choosing the right windows for your rentals. Keeping the cost down while choosing the right types of windows for the climate in your area will help you get the best return on your investments when it comes to installing windows in your rentals.

4 Color Palettes for 2020 House Flips

Every year it seems like there are new color palettes and trends that break onto the scene. Color trends change along with people's tastes and the constant "modernizing" of the way we decorate our homes. When flipping homes, it's important to ensure that we are choosing colors that will appeal to the buyers or renters of the property. Choosing the right colors can help people see themselves living in a property (versus not living there), which makes the property more likely to be rented out or purchased.

For 2020, 4 of the latest color trends include the following:

Neutral Colors with Pops of Color:

Jewel-tones come back into style, again and again, making them a great bet when painting your flipped property. Many of these jewel-tones are marked by pops of color that draw the eye to a specific space and highlight the best features that space has to offer. The pop of color does a great job to bring some drama and flair to any space. Relying on pops of color can give almost any space the "oomph" it needs to be a lot more attractive and eye-catching.

Warm Cream Tones:

Warm cream tones are a color palette that never goes out of style.  These are your warm, creamy, earth-like tones that are expected to be popular throughout the remainder of 2020. Terra-cotta is another trend that is performing strongly throughout 2020. 

Navy Blue:

Navy blue is considered a "new neutral" color that will likely be popular throughout the rest of 2020. Pantone's color of the year for 2020 is a great example with Classic Blue holding the prestigious title. Another example is the Sherwin-Williams color of the year being Naval. Blue isn't thought to be losing popularity any time soon, making it a safe bet for painting your flipped properties.

Warm Pastels:

Warm pastel colors rarely lose popularity. Recently, the trends have shown that pastels with earthy undertones are becoming more popular among both renters and buyers alike. Mixing both spring and autumnal colors are becoming the most popular.

Conclusions:

These are 4 of the hottest trends in color palettes for the rest of 2020. When flipping your property, choosing the right color palette for your flip can help encourage renters to choose your property to rent. It can also encourage buyers to purchase a property that they can envision their family living in for years to come. 

Understanding Fair Housing Laws

A clear understanding of national fair housing laws is a must for anyone who manages their own rental properties. Landlords who fully self-manage their rental properties increase their chances of unintentionally running afoul of these laws. Here's what you need to know about renting and national fair housing laws.

Federal fair housing laws cover most rental properties, but certain types of property are exempt.  These laws prohibit landlords from discriminating against people based on:

• Race
• Familial Status
• Color
• Sex
• National Origin
• Religion
• Disability

When renting to individuals with a disability, the law requires landlords to make reasonable accommodations for such individuals to access the property. If requested, landlords must also allow the tenant to make reasonable disability-related modifications to his or her unit.   

What These Laws Forbid

It's illegal for landlords to engage in the following behaviors because someone is a member of one of those protected groups:

• Make their rental property unavailable
• Have a different process to qualify for a rental
• Charge a different amount for rent or other fees
• Deny access to amenities or services
• Publish or state anything that implies discrimination or preference in renting
• Only allow them to rent units in a certain section of the building or units in a particular building
• Remove a tenant or the tenant's guest

Compliance Is Challenging

Reports of blatant and obvious disregard for these regulations are uncommon. Frequently, accidental violations get landlords into trouble.  For example, if the size or location of a rental inspired a landlord to advertise it as "perfect for a retired couple", that's problematic. The argument could be the landlord is discriminating on the basis of familial status because the ad implies families with children aren't welcome. 

Practical concerns and good intentions can also result in accidental violations. A landlord may seek to prevent noise complaints by housing all families with children in the same part of the building. The law would also view that as discrimination due to familial status. 

Those are just a couple of examples. Unfortunately, there are many other ways a landlord could unintentionally fail to comply with national fair housing laws.

Energy Efficient Improvements for Rental Properties

Managing a rental property means choosing your upgrades carefully. Between tenants, it is practical to improve the home in ways that will result in higher rents and happier tenants in the future. Naturally, you're looking for the best return on your investment. These improvements will repay themselves more quickly than others, either because they cost very little or because tenants value them very highly, or a profitable balance of both.

Energy efficiency is your best route for practical, high ROI improvements. Let's look at the top five high-ROI energy efficiency improvements for your rental properties.

Weather Stripping

Weather stripping around doors and windows is used to seal in the HVAC and prevent unnecessary use of electricity. These strips are affordable and easy to install. They also have a profound improvement on a house's energy efficiency, especially if the house had old or insufficient weather stripping before. The change in power bill could be profound with this simple, affordable improvement.

Upgrade & Seal Vents

Pay attention to the ducts and vents of the HVAC system. Replace old vents with new vents that seal when closed and direct air aply. Then use caulk or silicon sealant to attach the vents to the walls. This way, air only goes where it is directed inside the house.

Programmable Thermostats

Most people do not set their own thermostats optimally throughout the day. Who has the time to keep changing the setting to perfectly balance the outside temperature and the current needs of the family inside? A programmable thermostat can handle daily temperature changes, including running at a minimal setting when tenants are away.

Attic Insulation

Adding insulation to the home is a great way to quickly improve energy efficiency. The easiest place to add insulation (without opening up a wall) is in the attic. Add layers of loose or sheet insulation and consult with a roofer on placement.

New Doors & Windows

Last but not least, replace old doors and windows with items of newer and more efficient construction. This is a bigger investment, but also has a var greater ROI, because tenants can visually see and love the new apertures. Curb appeal is a big factor, along with new layered doors and well-sealed windows.

What Smart Home Features to Add to Your Rental Property?

When wondering whether you should be using smart home technology in your rental property is a question many landlords have asked. There is no cut-and-clear answer for every landlord. However, you want to consider who you are marketing your property to when you decide which smart home technology may be useful in your rental.

Many potential clients will find a wealth of smart home features in their rental to be overwhelming. Older individuals may not be sure how to use many of these features. Putting these features into a rental can also be quite expensive.

However, certain smart features may be more practical and useful to renters than others.

The Home Security System:

One smart feature that many tenants may find useful is the home security system. A home security system is a smart home investment that saves the landlord time and frustration in the future. If the tenant accidentally loses their keys or leaves them in their rental, a simple change of the access code solves the problem. 

Many low-cost options for automated home security systems can start as low as $149.99 in up-front costs. Moreover, renters value home security in the 21st century. A home security system can help your renters feel safe in their homes. That's a premium people will be willing to pay for.

Thermostat Home Control Features: 

People like to be in control, especially when it comes to their comfort and the environment. Allowing tenants to control the basics in their home from one central location can be appealing. Having one central location that is easy to operate to control things like the temperature of the home is a perk to many tenants. The system should be easy to use. Ideally, allowing someone to use the system from anywhere in the home makes it even better. Tenants will love pushing a button from their couch or armchair and controlling the temperature in their rental.

LED Light Bulbs:

Whether it's considered "smart home technology" or not, LED light bulbs do the planet, and your tenants both a favor: they help reduce the electric bill. LED light bulbs have become the standard for most homes today.  These light bulbs are not overly-expensive. They are better for the environment. These light bulbs are available at most regular hardware stores.

Moreover, tenants will appreciate the lowered utility costs.

Keep It Practical:

Smart features like a home security system or thermostat controls are practical for most tenants to use. However, going overboard with smart home features and appliances like Smart TVs, smart refrigerators, etc. might be a little much for the average tenant. People may have no clue how to use these appliances. Others have no needs for these exact features in their rental.

Conclusions:

Smart appliances may have places in very upscale rentals, but for most day-to-day needs of tenants. These features will not break the bank if you add them to your rentals. They will be practical for the use of your tenants without costing the landlord a ton of money to install them.

Is it Safe to Invest in Real Estate Today?

Investing in real estate during a recession has its pros and cons. While conventional wisdom would tell you that investing in real estate "never goes out of style", staying aware of the potential pitfalls will make you a more savvy investor. 

Interest Rates for Investors

You have probably seen that interest rates are at record lows however buyer beware. The purchase of an investment property may mean more scrutiny by banks. Given the uncertainty of the job market, those who are getting those great rates have stellar credit and collateral. While you may have a great pay stub to show a banker today, this is no guarantee to the mortgage industry that you will have that same level of income in two or four weeks. Therefore, those mortgage rates you see are reserved for those that can provide evidence that you can cover the payments in the future.

Rent Forbearance for Landlords

With the government giving the green light for renters to not pay their rent, as a landlord, this leaves you entirely responsible for paying the mortgage. Before you invest, determine your ability to manage this type of payment not only now but in the future, should there be another wave of stay-at-home orders. 

Concerns for Flippers

If your goal is to buy and flip a home, consider the following. What will be the Ripple Effect? Be prepared for a backlog of services when this crisis is over. Currently, in many states, homes are not undergoing home inspections or appraisals. This is creating a problem for those currently wanting to sell and, in time, will have longer term ramifications. Another concern is access to materials. Although much of the country is focused on getting essential food items to market, home building materials have taken a back burner.

The big question everyone has at this time is... Will the buyers, or renters, be there at the end of this crisis? The answer is that there is every indication that the government is doing everything possible to ensure that they will be. The question is can you weather the storm?

Checklist to Make Your Homes Move-In Ready

Preparing a home for sale or for renters requires a similar process called move-in ready. A move-in ready home is one that could begin housing a family the moment they arrive with boxes. This means ever latch locks, every appliance works, and the water heater is ready to go. All the necessary comforts of home are what makes a house move-in ready.

If you're new to the process, we're here to help with a complete move-in-ready checklist for sellers or landlords, plus a few helpful COVID-tips for minimizing contact in your upcoming real estate interactions.

Checklist For Making a House Move-In Ready

Getting a house move-in ready is easier than you think. It's really about being considerate and ensuring everything works properly before handing the keys to the new residents. Here's what to do:

• Put Bulbs in Every Light Socket and Ensure They Work
• Run the Taps to Confirm Hot & Cold Water
• Test the Stove Burners & Refrigerator
• Check Every Cabinet and Closet for Left-Behind Items
• Sour the Yard for Sharp Hidden Objects
• Make Sure Every Door, Lock and Handle Works Properly
• Test Shower Heat and Water Pressure
• Flush Every Toilet & Leave 1 Roll Per Bathroom
• Test Every Outlet With a Small Plug-In Device
• Wipe Down and Swiffer Every Room

How to Minimize Contact in Real Estate Deals

In the age of coronavirus, it's important to minimize your physical contact with others. Even though real estate is a traditionally very in-person business, it doesn't have to be. Use these tricks to keep yourself safe:

• The Real Estate Elbow-Shake
• Online Communication and Planning
• 6-Foot Distance for Tours and Inspections
• Owner-Not-Present Services

As a home seller or new landlord, making a home move-in-ready is an essential part of doing friendly business. Ensure that the home's new residents have working appliances, hot running water, and a secure home from the very first day they arrive with boxes. For more real estate insights, contact us today!

Home Renovations for Selling Your Home Amidst COVID-19

The COVID-19 outbreak has made selling a home more challenging than it was just a few months ago. Buyers are gun-shy and are looking for new priorities in home design. If you're ready to sell and hoping to sell fast during Coronavirus slowdowns, there are a few upgrade that are now more valuable than ever. Let's look into the top 5 home renovations for selling during the outbreak:

1) Replace Carpet with Easy-to-Clean Tile

Homes that are easy to clean are in high demand right now. Replacing old carpet with tile or laminate wood will make the home far more appealing to families aware of the new world cleanliness standards.

2) Install an Air Purifier in the HVAC System

COVID-19 can hang in the air, but it's less likely to survive with good HVAC circulation and an in-line air purifier. If you're already repairing or replacing the HVAC system, adding an air purifier is a great upgrade that buyers will love.

3) Build a Security Gate for the Front Porch

Currently, social distancing and answering the front door are contradictory, but you can fix that. A security gate set a few feet out from the front door will ensure that the home is quarantine-safe, while still being able to answer the door for deliveries and services.

4) Secure the Backyard Fenceline & Gate

For families with pets or small children, the backyard fenceline matters a great deal. Make improvements to the fence by reinforcing the under-line (to prevent digging escapes) and ensure the gate is sturdy, well-hung, and can latch securely.

5) Upgrade the Internet Connectivity

Last but not least, consider an improved internet service installation like high-speed cable or fiber. With everyone working and seeking entertainment at home, a house with great internet signal is worth its weight in gold to new buyers.

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What makes a home most appealing to buyers changes from season to season. This season, you're more likely to sell a home quickly with features that make the house more appealing for families sheltering in place during the COVID-19 outbreak.

How to Secure Favorable Home Improvement Loans Amidst COVID-19

If you're a real estate investor looking to acquire a new property, you probably know that buying a new home is just one part of a big puzzle. You still have a million decisions to make. And one of them is how to secure favorable home improvement loans.

The process of getting home improvement loans may seem easy, but you must do some homework first to get favorable terms. In this blog post, we outline these tips in detail.

Be Specific About Why You Need The Loan  

Home improvement loans are linked to specific maintenance or upgrade projects. So when applying, explain to the lender why you need the money to increase your chances of getting approved. 

For example, if you need the loan to install a new kitchen, say so. The lender will understand that the money is being used to increase the value of the property and will probably offer favorable terms. 

Request For A Specific Amount

It's not uncommon to find investors asking for too much money than needed when applying for home improvement loans. But if you want to secure the loan, you must demonstrate that you've done your homework.  

Lenders prefer working with investors who know exactly what they want and why. So, get a good estimate of the cost of the project before submitting your application.

Know Your Home Equity

Loan providers usually look at how much equity you have in your property when checking your application. Therefore, make sure you know that number and let the lender know it too. The more equity you have the higher your chances of getting favorable loans.  

Check Your Credit Score

Just like any other loan, home improvement loan approval greatly depends on your credit score.   As such, it's prudent to check your financial health ahead of time to make sure it's adequate for a favorable loan. Make sure there are no errors on your credit report that could adversely affect your application.

Interest rates are at an all-time low. However, keep in mind that home improvement loans come with repayment responsibilities. So focus on getting favorable terms to make the most it.  We hope these tips will help you achieve that. Good luck!