Reading Your Local Real Estate Market

 

Reading Your Local Real Estate Market-Is It Going Up Or Down?

If you're considering selling or buying a home, it's essential to know how the local real estate market is doing. Not only does this help with your decision-making process, but it also gives you an idea of what other people are paying for homes in your area and whether there's anything unusual going on with those prices.

Look for a price discrepancy.

As you search for the right home, you must keep an eye out for price discrepancies. A price discrepancy is when one property has a much higher price than another. If two homes are priced at similar rates, but one is significantly more expensive than the other, this could indicate that there may be something wrong with that home—maybe it's been overpriced or undervalued by previous owners.

Alternatively, if two homes have similar prices and yet one appears to be less expensive than its neighbor on paper (i.e., has been listed at a lower asking price), then this could mean that someone didn't want to pay as much money for their house as others did for theirs! Either way: keep your eyes peeled!

Talk to your Realtor.

You must talk with your Realtor if you're trying to figure out the market and where you can sell or buy your home.

Realtors are experts on the local real estate market, so they should be able to give you some insight into what's going on in your area. They'll also have access to data on recent sales and predictions for future trends—and if something specific about your house makes it unique, this information will be precious (like how much money someone might pay for a particular room).

If all else fails, ask them what they think will happen if you put your house up for sale!

Ask about what's selling and what's not.

When looking at homes, it's essential to know what is selling and what isn't. You can use this information to determine whether or not your home is worth the time, effort and money needed to sell in your area.

Ask about what's selling and what's not. What do people like about the houses that are selling? What do they like about the ones that aren't? How much are these houses going for compared to how many were listed?

Do some research on your own.

You can also use your research to help you determine if the market is up or down. The best way to do this is by checking out a real estate website, like Zillow, Trulia or Redfin. These sites will show you information about homes for sale in your area and how much they're selling for on average. Look at what homes have recently sold for in your community and compare them with those currently listed—you may find that more people want to buy than available houses! If the number of listings you see isn't changing much over time, then it could mean that things are slowing down overall; however, if there seems like an increase every year (or two), then maybe now would be a good time to start looking again at buying something new!

Compare the number of homes sold in your area over the last few years.

To determine whether a market is going up or down, you'll want to compare the number of homes sold in your area over the last few years. If it's decreasing, this could signal that prices are dropping and the market is likely going down. On the other hand, if it's increasing over time—and especially if there were no significant dips before—this could mean that things are getting better for sellers and buyers alike (and might even signal an opportunity for you!).

How long are homes staying on the market?

The time a house stays on the market is one of the most critical factors in determining what kind of price it will sell for. If a home is listing for $300,000 and then goes back on the market again at $325,000 within two weeks (and it doesn't sell), chances are good that you're looking at a lower sale price. However, the longer this home stays on the market, the more likely it is to drop in value because there's less competition and fewer buyers who want to see what they can get out of their investment. At the same time, they still have time before houses start selling at lower prices because everyone knows an improvement project needs to be done soon or else no one will buy anything until next year!

Conclusion

As a homeowner or potential homebuyer, it's important to stay up-to-date on your local real estate market. After all, the wellbeing of your investment depends on it! By understanding whether your market is going up or down, you can make more informed decisions about buying, selling, or holding onto your property.We hope this quick guide has helped you get a better grasp of reading your local real estate market. If you have any questions, our team at Leaf Management would be happy to chat with you and offer our expert insights.

Adding an Accessory Dwelling Unit

 Case for Adding an Accessory Dwelling Unit to Your Rental Property 

You may have heard of accessory dwelling units (ADU) and wondered what they are and if they would be a good addition to your rental property. Please keep reading to learn about ADU, how they are becoming more popular, and the benefits of adding one to your property.

What Is an Accessory Dwelling Unit? 

An accessory dwelling unit (ADU) is a small living space connected to or on the same property as a single-family home. These units are often converted garages or basements, but they can also be newly built structures. ADU can serve multiple purposes, such as providing housing for family members or generating rental income.

Why Are They Becoming More Popular? 

There are a number of reasons why ADU are becoming more popular:

1. Many people are looking for alternative living arrangements that allow them to age in place or take care of elderly family members while maintaining their independence.
2. The increased cost of living has led some people to seek out creative housing solutions that allow them to generate rental income.
3. The "tiny house" movement has sparked interest in smaller living spaces that make the most of available square footage.

Benefits of Adding an ADU to Your Rental Property 

More Living Space 

One of the biggest benefits of adding an ADU to your rental property is that it provides more living space. This can be useful if you have a large family or frequently have guests staying with you. Additionally, if you decide to rent out the ADU, you will have two separate living spaces that you can rent out at different price points. This can be a great way to maximize your profits and get more use out of your property.

The Ability to Rent Out Both Spaces Separately 

If you add an ADU to your rental property, you will have the potential to rent out both spaces separately. This can be a great way to generate additional income, as you can charge different price points for each unit. Additionally, it allows you to rent out one unit while still having the other one available for guests or family members.

Putting Unused Space on Your Property to Use 

If you have unused space on your rental property, putting an ADU, there can help you make better use of the property and increase its value. Additionally, it can provide you with extra income to put toward maintenance and repairs for the property.

Suppose you're considering whether or not to add an ADU to your rental property. In that case, there are a number of potential benefits to doing so—including additional living space, the ability to rent out both spaces separately, and increased property value. However, before deciding, it's important to weigh those potential benefits against any potential disadvantages such as increased costs associated with construction and permitting. Contact us for more information on how we help you in the case for adding an accessory dwelling unit to your rental property.

ADU - Yes or No?

 Reasons to Think Twice Before Putting an ADU on Your Property

If you have a large enough lot or home in the right type of neighborhood, placing an ADU could be an excellent way to help increase its value. When done correctly, the ability to rent out can also help lower your monthly expenses.

However, before you start thinking about putting an ADU on your property, there are a few things that you need to keep in mind.

What is ADU?

ADU stands for "accessory dwelling unit." They are smaller living units such as granny flats and detached or semi-detached cottages on your property. If you consider adding an ADU to your property, know that they have different building codes than a primary residence. 
Below are 3 reasons you should think twice before putting an ADU.

1.    Restrictions On Renting It Out As A Separate Structure

The ability to rent out an ADU as a separate unit often depends on where you live. Many cities and counties have zoning regulations prohibiting the construction of detached ADUs. While some municipalities allow for the construction of separate ADUs, many also have strict rules about their location and size. Such regulations are designed to ensure compliance with safety and health standards.

2.    HOA Restrictions

If you are part of a homeowner's association, you may have restrictions on how many rental units you can have on your property. If you are a member and want to add an ADU, check with your association to see if they have restrictions and how you can get permission to build one.

3.    Safety Considerations

Building an ADU can create a new set of safety concerns for homeowners. This includes proper fencing if the ADU is to be placed in the back or side yard. Similarly, safety measures like the applicable fire codes must be fully met before making your ADU. 

4.    State Processes

If you decide on putting an ADU, you will need to go through your state's process before constructing. You may also need to go before your local government and get special permission to add an ADU to your property. Depending on your state, the process for adding an ADU can vary and take different periods to complete. 

In conclusion, building an ADU on your property can be an excellent way to create additional space for guests or family members. However, do proper research to understand what rules may apply to building an ADU in your area.
 

How to Keep Real Estate Premiums Affordable

 5 Tips to Keep Your Real Estate Insurance Premiums Affordable

You know how fast things can get expensive if you're in the real estate business. Repair costs, insurance premiums, and taxes can run your property bill through the roof, especially if you have several buildings or properties to keep up with. So here are five tips on keeping your real estate insurance premiums affordable so you won't go broke trying to maintain your buildings and properties.

1) Shop Around

Shopping for a better deal is one of the easiest ways to lower your insurance premiums. Reviewing rates with other carriers may not only help you save on your current premiums, but it will also help you avoid future rate increases. But first, find out if they're eligible for any discounts: Not all insurance companies offer the same values, so find out what deals your provider has available and how they might be able to lower your costs.

2) Look at Rates Based on Your Current Portfolio

Consider the value of your current portfolio. For example, if you have a lot of property, it might be worth paying more for insurance to keep your premiums manageable. On the other hand, if you have only one or two properties, it might be worth looking for cheaper insurance and seeing what companies are willing to work with you.

3) Work with Property Managers to Reduce Risk

Property managers can help you reduce insurance-related risks by taking care of things like scheduling maintenance, managing tenant relations, and keeping the property clean. If a risk does happen (like an apartment fire), your property manager will be on the scene immediately to take care of the situation. You'll also save on premiums because your property manager will have a better idea of what's going on with your building than anyone else—meaning they can tailor coverage to suit your needs.

4) Examine Expenses Across the Board

The first thing that you can do is examine the expenses across the board. This will help you understand where your money is going and where it could be cut. You might also want to speak with an agent specializing in real estate insurance to see what they recommend or if they have any suggestions for finding lower rates. You may even find that working with a property manager can reduce your insurance-related risks, ultimately leading to lower premiums. Lastly, shopping around for different policies and rates might also be beneficial.

5) Don't Opt Out of Coverage 

You may be tempted to opt out of coverage if your property is vacant, but doing so can lead to severe consequences. If you do not have insurance and someone becomes injured on your property, you could find yourself in legal trouble. If there is a fire or a natural disaster, the damage to your property could be worse than if you had bought insurance from the start.

Final Thoughts

It's essential to ensure you're adequately insured in case of an accident. However, it's also important not to fall prey to high premiums that can dent your budget. So when it comes time for renewal, don't be afraid to shop around and find the best rates available for your portfolio. You could also reduce risks by working with property managers on alarm systems and other devices that make it harder for people to break in.

If you are interested in receiving short-term funding or lending to flip a home, Michael Leafer is one of the top brokers in the area. Contact him today to see if you are eligible for some funding to help with your real estate goals!

Buy a House With or Without a Pool?

 

Should You Buy a House With a Pool or Build One?

Do you fancy having a private swimming pool? The freedom and privacy of having your pool drive many home buyers to have a pool in their homes. Should you buy a house with a pool or buy a house and build a pool later?
In this article, you will learn the pros and cons of buying a home with a pool and buying and building one later before you make the big decision.

Buying a House with a Pool

A pool has multiple advantages; it can improve physical health, complement your house, and boost your mental health.
 

The advantages of buying a house with a pool

•    There is less work involved. You get a house with a pool and you do not have to cater for the installation costs
•    Cool off in the heat. When you buy a home with a pool, you get to enjoy the advantages of having one right away instead of waiting for years to install one
•    Great way to exercise. If you buy a house with a pool, you can start your regular exercises immediately

The cons of buying a house with a pool

•    The increased cost of utilities and maintenance. When you buy a house with a pool, you inherit its maintenance and utility cost
•    You get an already designed pool which might not please you. The pool might be big or small or may have a design you will have to restructure, which takes a lot of money and resources

Buying a house and building a pool

A pool is an excellent amenity in your home. However, finding a home which meets your standards and with a pool can be so challenging. If you find a house which meets your search criteria and doesn't have a pool, you can go ahead and buy the house and later build your pool.

The Pros of Building your Pool

•    You get to design your pool to the design and size of your liking
•    You are prepared of the maintenance and utility cost

Cons of Building your Pool

•    You may never build that pool. Most people buy a house intending to build a pool sometime later, which may never happen
•    It is expensive to develop your pool as you will have to cater for all the expenses

Bottom Line

Whether you choose to buy a house with a pool or buy and build your pool, you should understand the pros and cons of each of them and settle on the one that suits you best.

Calculating Rental Property Costs

 How to Calculate the Cost of another Rental Property

The rise in interest rates has caused a lot of jitters in the real estate market. If you're a continuing or prospective investor, you may wonder if now is the time to put your investment plans on hold. But before you make any decisions, it's essential to take a closer look at all the costs associated with buying a property. By doing this, you'll be able to get a more balanced view of the current market and decide if investing now is right for you.

The Cost of the Property Itself

The first cost you need to consider is the property's price. This is usually the most considerable expense involved in buying a rental property and will have the biggest impact on your bottom line. To get an idea of how much you can expect to pay, start by looking at comparable properties in the area. Look at similar properties in size, number of bedrooms and bathrooms, and other amenities. Once you know what's available, you can start negotiating with sellers to get the best price possible.

The Cost of Upgrades and Improvements

Once you've purchased the property, there will likely be some upgrades and improvements that need to be made before it's ready to be rented out. These costs can range from small expenses like painting and minor repairs to larger projects like remodeling kitchens or bathrooms. Make sure to factor these costs into your budget, so you don't get surprised later. Also, keep in mind that some upgrades may add value to the property and help offset your initial investment.

The Cost of Financing

If you're taking out a loan to finance your investment property, additional costs will also be associated with that. In addition to interest charges, lenders typically require points, origination fees, appraisal fees, and other closing costs. Be sure to ask your lender for a detailed breakdown of all these charges so there are no surprises when it comes time to close the loan.

Bottom Line

There are a lot of different factors that go into calculating the cost of buying a rental property. By taking the time to understand all these costs, you'll be in a much better position to make an informed decision about whether or not investing in real estate is right for you. Contact Leaf Management for a free consultation. We can help you assess your current financial situation and develop a plan that works best for you – whether that's acquiring more properties or refinancing what you already own.

Tactics to Prevent Real Estate Insurance Premiums from Increasing

 Top 4 Tactics to Stop Your Real Estate Insurance Premiums From Ballooning

Real estate property owners are faced with unavoidable expenses, such as the cost of real estate insurance. Real estate insurance acts as a security blanket for property owners. The price of real estate insurance is rising, and you may be wondering how to stop the high premiums. 

 

The good news is that you can use tactics to stop your real estate insurance premiums from inflating. Below are the top tips to reduce and halt your insurance premiums from ballooning. 

 

SHOPPING AROUND

 

It might take some time, but it will save you considerable cash. Check the Yellow Pages or contact your local insurance department. The National Association of Insurance Commissioners website also has valuable data that can assist you in picking the best insurer near you.  

 

Insurance agents, consumer guides, online insurance services, and companies can help you know the approximate price ranges. This will help you shortlist companies that offer the lowest prices. 

 

FIND AND COMPARE RATES BASED ON YOUR CURRENT PORTFOLIO

 

Your current portfolio can help you find and compare rates that have more affordable per-unit pricing. Real estate investors invest in properties that earn higher returns or are below replacement expenses. Real estate investors are interested in how much a home seller asks for per unit. 

 

INCREASE YOUR DEDUCTIBLE

 

Before the insurer pays a claim per your policy's terms, the amount you use towards a repair is deductible. Raising the deductibles can stop your real estate insurance premiums from ballooning. You can save more on premiums by taking care of possible repairs that may result in filing a claim. The Insurance Information Institute reveals that increasing your premium by $500 to $1000 could save an investor as much as 25% on premiums.

 

WORK WITH PROPERTY MANAGERS TO REDUCE INSURANCE-RELATED RISKS

 

Irrespective of your real estate portfolio size, a property manager is liable for property damage. There's little a property manager can do to prevent insurance-related risks, such as an exterior breakdown. Working hand-in-hand with your property manager and exploiting risk control options can help reduce insurance-related risks. Conducting regular inspections can help you identify and deal with minor physical damages.

 

Ballooning real estate insurance premiums can be contributed by policy changes, hardening market, and inflation, but you can take the above measures to reduce it. Leaf Management is a corporation that provides private financing for real estate investors. Contact us for more information. 

BRRRR Investing in 2023

 Will the BRRRR Method of Real Estate Investing Still Work in 2023?

If you're interested in residential real estate investing, you have probably heard of the Buy, Rehab, Rent, Refinance, Repeat (BRRRR) method. Like house-flipping, the BRRRR investment method focuses on buying properties that are not in good shape and fixing them up. But rather than reselling the renovated property for a one-time gain, you rent it out, getting income while building equity for your next purchase. 

There is both good news and bad news about the BRRRR investment method. The good news is that the method does work, while the bad news is that both properties and the materials to fix them have become a bit expensive. This will affect the strategy's purchase and repair by eating into your profits. Continue reading to learn more about how the method work in 2022 and what to expect in 2023. 

Common BRRRR Approach

BRRRR investors find properties that are not in good shape and try not to pay more than 70% of the ARV (After Repair Value) of the house minus the renovation cost. The approach will work like this, based on a $300,000 asking price of the property, you discover you need to invest $35,000 for rehab. After rehab, the property will now be valued at $375,000, which is its After Repair Value. This means that you invested $35,000 to add $75,000 in property value. 

A New Approach

It's impossible to buy a property in the current market at 70% After Repair Value. Hence, you will need to figure out if purchasing a property at a higher price will still be profitable. Again, labor and material will likely cost not less than 25% in today's inflationary times.

So, Will the BRRRR Method Still Work in 2023?

Yes, because there are some factors to consider, the refinance and rent part of the BRRRR. Rent across the United States has skyrocketed over the years, with some cities experiencing up to a 40% average price increase. You just need to research the rents for areas where properties cost around $375,000. Chances are you'll get $3,000 per month in rent from a property you bought for $344,000, which is a good deal. 

Conclusion

The BRRR real estate investing approach will be profitable over the years and will still be in 2023. You just need to know your onion. 

Neighborhood Considerations for Rental Properties

 3 Neighborhood Factors to Consider Before Buying Your Next Investment Home

One of the factors you have to consider when buying an investment home is the location. Finding the right neighborhood is key to getting good returns on your investment property. You need to do thorough research on neighborhoods to get the best one. 
When you find a good neighborhood, you'll have an easier time managing your property, and get the right rental pricing, and the right initial purchase price on your investment. Here are three neighborhood factors that you should consider. 

1. HOA Restriction on Rentals

Buying a property that is part of the Homeowners Association (HOA) comes with its challenges. Do your research first to find out if there are any restrictions on rentals. Go through the rules, to review their conditions and restrictions before investing. Remember the rules can't change after you buy the property. 

2. Proximity to Amenities

A good neighborhood should have amenities such as good schools, shops, grocery stores, gyms, medical facilities, and restaurants. Areas with such amenities appeal to renters because of convenience. Therefore, choose a neighborhood with quality amenities to boost your investment's potential. 

3. Number of "for rent" signs

When doing the neighborhood evaluation, you should also look for the number of rental or for sale signs. If there is a high number of for rent signs, it is an indication that the properties have a low demand. It could also be that there are too many rental properties. It is ideal to invest in an up-and-coming neighborhood since they have a low vacancy and high rentals demand. 

Location is a vital factor in real estate investing. When you buy an investment property in a bad neighborhood, you will have lower returns. It, therefore, is important to research the neighborhood to make an informed choice. The neighborhood should have good schools, low crime rates, and quality amenities. A neighborhood with desirable characteristics will ensure your property increases in value with time. 

Outdoor Living Trends

 Four Outdoor Living Space Trends Worth the ROI for Rental Property Owners

There's no doubt about it – outdoor living spaces are popular. According to a study by the National Association of Home Builders, nearly three-quarters of homeowners want an outdoor space that they can use all year round. And for rental property owners, that's good news!

A well-designed and well-maintained outdoor living space can add value to your property and may even increase demand from potential tenants. Let us look at the top trends in outdoor living spaces and whether they're worth the investment for rental property owners.

- Decks and patios

Decks and patios are a great way to add value to your rental property. Not only do they provide tenants with additional living space, but they can also be used for entertaining or simply relaxing outdoors. If you're considering adding a deck or patio to your rental property, be sure to choose materials that are durable and easy to maintain.

- Pergolas

Pergolas are a popular trend in outdoor living spaces. They provide shade and can be used to create an intimate outdoor space for entertaining or relaxing. However, pergolas can be expensive to install and maintain, so they may not be the best option for every rental property owner.

- Fire pits

Fire pits are another popular trend in outdoor living spaces. They can be used for entertaining or simply for relaxing outdoors. However, fire pits can be expensive to install and maintain, and they may also increase your insurance premiums. So, before you add a fire pit to your rental property, be sure to weigh the costs and benefits carefully.

- Outdoor kitchens

Outdoor kitchens are a great way to add value to your rental property. They provide tenants with additional living space and can be used for entertaining or simply relaxing outdoors. However, outdoor kitchens can be expensive to install and maintain, so they may not be the best option for every rental property owner.

As you can see, there are many trends in outdoor living spaces that can add value to your rental property. But, as with any investment, it's important to weigh the costs and benefits carefully before you make a decision.

What to do if you Purchase a Home at too High of a Price

 How to Protect Your Finances If You Purchase a Home at Too High a Price

One of the most significant risks involved in purchasing a second home or an investment property is overspending on the property. It often happens during market peaks when buyers become caught up in the excitement and buy a property for more than it is worth. Such a mistake can have serious ramifications both in the short term and long term.

Potential Ramifications

Examples of likely ramifications include

1. You may be unable to sell the property for a high profit 
2. You may lose equity
3. You may lose cash flow if rental prices decrease 

Countermeasures to protect your financial interests

If you find yourself in such a situation where you worry that you may have purchased the property at too high of a price, there are measures you can put in place to protect your short-term and long-term financial interests. These include

1. Talk to a financial advisor. 

Always talk to your financial adviser as the first step in taking any monetary action. They can help you develop a plan to weather the market downturn and protect your financial interests. 

2. Understand the market conditions. 

Take the time to research recent sales in the area and compare them to the asking prices of comparable properties. This approach will give you a good idea of how much the property is worth and what your next step should be. 

3. Turn to your Insurance plan.

Having the right insurance policy in place can help protect you from any financial loss if the property value does decrease. Therefore, it is essential to review your insurance policy and ensure you have the right coverage in place. 

4. Shop around for a new loan. 

If you are worried about being unable to make your mortgage payments, talk to your lender. They may be able to work with you to develop a plan that can help you stay afloat financially. If not, you can also try and find a new lender. Even if you have a prepayment penalty, you may find a lender willing to give you a better rate.

5. Consider renting out the property. 

One way to offset any potential loss in value is to rent out the property. Renting can provide a steady income stream that can help offset any likely loss in value. 

 

Purchasing a home is a big decision. Therefore, it is always important to be aware of the risks involved. If you're worried that you may have purchased a home at too high of a price, take action to protect your financial interests. By following the tips above, you can help minimize the impact of a market downturn and keep your finances on track.

Letting Tenants Run a Side Hustle From Your Property

 Should You Let Your Tenant Run a Side Hustle From Your Property?

Before allowing a tenant to run a side hustle from your property, knowing what you're getting yourself into is crucial. You also need to know the tenant's rights regarding running a business from home. 

Is it Illegal for a Tenant to Use a Residential Property for Business?

First, it's essential to note that there's a difference between occasionally working from home and basing the entire business on a residential property. Both approaches are legal, provided the property remains primarily residential. That's to say that no more than 40% of the property should be for commercial use. Most small businesses run from home offices, and it shouldn't be a problem for a tenant to use your property for business. 

However, your tenant should have confirmation in writing that you're happy to let them run their business from your property. Ensure you're confident of their intentions before permitting them. 

Factors to Consider Before Letting a Tenant Run Business from Your Property 

While you can allow a tenant to run a business from your property, many legal factors come into play. Running a business from a rental home has many risks and is likely to conflict the tenancy rules. Running a business instead of using the property for residency may also impact your landlord's insurance cover and make it void. 

Don't take the decision lightly, and don't grant permission until you carefully consider the following:
•    Does the council allow tenants to run businesses from residential properties?
•    Has the tenant got the relevant documents and insurance to run the business?
•    If you have a mortgage on the property, does the bank allow business operations on the property?
•    Does the Homeowners Association or any other corporate body that governs the property permit tenants to run businesses? 
•    Is the tenant aware that the landlord insurance doesn't extend to their business?

If you permit the business to run on your property, ensure you amend the rental agreement with a specific clause specifying that business insurance is the tenant's responsibility. They should agree to ensure the insurance remains current. 

Protesting Property Taxes

 

Effective Strategies To Protest Property Taxes for a Rental Property

As a homeowner, you may know how to protest property taxes on your primary residence, but how do you go about protesting the taxes on an investment property. This guide will help explain how you can effectively protest property taxes for rental properties.

How property taxes work for investment properties

To successfully protest property taxes on a rental property, you must first understand how the assessment of investment property works and what factors contribute to the total taxes you owe. Tax assessors typically base Real estate property taxes on the property's market value. They consider the size and features of your property and apply the tax rate set by your municipality to calculate your total property taxes.

You should also understand that investment property owners are not eligible for the same exemptions as owner-occupied homes, meaning the assessed value of your property is likely to be higher. For example, investment properties do not qualify for the homestead exemption, which allows you to lower your property taxes by capping the number of taxable value increases on your home.

Strategies for protesting investment property taxes

There are several strategies you can use to protest your investment property taxes. Below are the most common methods used by investors are:

1. Look for errors in the assessment

Often, an assessor may make mistakes when your property. Errors such as incorrectly measuring the square footage of your property, the plot size, or including inconsequential features are grounds for protesting your property tax. Therefore, if you believe the assessor has made an error, you can appeal the assessment and have your property taxes lowered accordingly.

2. Compare your assessment to comparable properties 

If you do not believe the assessor has made an error, you can still protest your assessment by comparing it to similar properties in your area. This process is known as a market value analysis. To do a market value analysis, you will need to find comparable properties recently sold in your area. Once you have found these properties, you can compare them to your property to see if your assessment is fair. 

3. Is the assessment reasonable

The most crucial factor in a property tax appeal is whether the assessment is reasonable. Therefore, if it is unreasonable and the value exaggerated, you have grounds to protest the property tax.

4. Gather evidence to support your case

Once you have decided on the best strategy for your appeal, you will need to gather evidence to support your case. The evidence may include recent sales data for comparable properties, property tax bills, photographs, or appraisals. 

Seek professional support

Protesting your property taxes can be a complex and time-consuming process. If you do not have the time or resources to protest your property taxes, you can always hire a professional firm to do it for you.  A professional will have the experience and knowledge to negotiate effectively on your behalf and get your property taxes reduced. 

Rolling Blackouts

 Keeping your Property and Your Tenants Protected From Rolling Blackouts

During the summer months, the days get very hot which puts a large strain on the power grid virtually everywhere. But in many places, the strain on the grid can lead to a rolling blackout. While this reality is one that both tenants and property owners must deal with, the process can be a little easier with some pre-planning. The following are ways you can better prepare your tenants and your property for summer blackouts. 

Install a Smart Thermostat

This is a win-win for everyone involved. Smart thermostats automatically adjust the temperature based on your personal habits over time. When no one is home, the temperature adjusts to something less strenuous on the power grid and also the electric bill. Smart thermostats have become more affordable, and they are also a desirable amenity for renters these days. 

Keep Freezer Full

Freezers that are full can keep contents cold for up to two days! Educating your tenants to move essential perishable foods into the freezer immediately during a blackout could be a useful tool to minimize the loss of food. It can also keep most of the frozen food useable, saving big money at the grocery store. 

Know Your Insurance Policy

Some insurance policies will allow claims on the loss of perishable food during blackouts. Some policies will not cover any damage due to a blackout. Knowing your policy and knowing the first point of contact right after a blackout occurs is very important. 

Establish Rules Concerning Generators

A generator can be useful during a blackout, but too often, people try to move the generator indoors, which is highly dangerous. Under no circumstances should a generator be allowed inside the property, and this should be spelled-out in your lease agreement if you live in an area prone to blackouts. 

Have your Electrical System Serviced 

Getting an annual check on your electrical system can be a useful tool to protecting your property. Make sure everything is in peak condition by having air conditioning units serviced, and your fuse box checked on an annual basis before it gets too hot. Technicians will have time in non-peak months, but trying to get them to check the system in the middle of the hottest part of the year, or right after a blackout could be next to impossible. 

Flooring Replacements

 Tips on How Often You Should Replace Different Flooring Materials

Many homeowners hardly know the best time to replace their flooring. Some follow strict remodeling rules, while others wait until a tile is missing or their hardwood floor gets warped to replace floors. You can always look for signs of wear, depending on the type of flooring in your home. This guide should help you.

Hardwood Floors

Wood floors are the best for the long haul. If well-maintained, they can last for 20-30 years. However, they're prone to water damage as wood expands when wet, and scratches and dents show easily. This is usually an excellent time to replace such floors.

Tile Floors

Tiles are great for kitchen and bathroom spaces because they're easy to waterproof and clean. Although tile floors are durable, they're prone to chipping and cracking, which creates a safety hazard if the grout comes loose. A significant advantage of tiled floors is that you don't have to replace the entire flooring. You can change the chipped tiles to give your floors a new look.

Carpet Floors 

Carpets come in handy for homeowners looking for affordable and comfortable flooring. The synthetic fibers create a soft surface to walk on, and modern rugs are made of nylon or polyester fibers, which are stain-resistant and durable. Carpet floors may last 7-10 years, but if they look stained and worn out, it is time to replace them.

Vinyl Flooring

Vinyl is an excellent alternative to stone floors. It doesn't need regular resealing and provides a more comfortable surface to walk on. Vinyl floors are also waterproof, making them impervious to stains and spills. However, vinyl is a little more delicate than other floor types, and you need to be extra cautious when dragging heavy materials on the surface.

Laminate Floors

This durable flooring type lasts a decade or longer before a replacement becomes necessary. Moreover, technological advancements have improved its quality and thickness, enhancing longevity. Laminate floors are also prone to water damage, stains, and wear, which indicate when to replace them.

Strategies to ensure tenants pay on time

  Strategies to Ensure Tenants Pay Rent Checks on Time

All landlords crave an ideal situation where their tenants pay rent checks on time. Unfortunately, this is not always the case. Some tenants will likely experience hiccups and fail to make rent check payments on the agreed time. Untimely rent payments can happen severally either due to tenants' forgetfulness or financial hardships. 

If you are a landlord who is struggling with tenants whose rent checks are always late, there are strategies that you can implement to remedy the situation. Below are six strategies you can implement to ensure timely payment of rent each month.

1. In-person Communication with Your Tenant 

It is essential to communicate with your tenants one-on-one on the issue of late rent check payments. When the behavior persists, talking to them will help you understand why they pay late and whether that will change. It will also be an opportunity to clarify the rent due dates and highlight possible consequences as stipulated on the lease contract. 

2. Introduce Online Payment Methods

The use of cash or paper checks is an outdated payment method. It would be best to consider whether hiccups associated with this obsolete method could be the course of late rent check payments. If that is the case, it will be prudent to consider introducing online payment. Online payment is more simplified and will increase the likelihood of your tenants paying on time.

3. Send Rent Checks Reminders 

Thanks to modern-day technology, landlords have the means to communicate with their tenants remotely, such as emails or phone numbers. As a landlord, you can utilize these communication channels to send reminders on rent checks to tenants who are always late. 

4. Introduce Payment Incentives

They show gratitude and appreciation when your tenants pay rent checks on time. For instance, tenants could earn a discount on rent when they pay their rent checks on time. A discount strategy can be applied if it does not affect business profitability. For instance, ensure the rent is higher to cover the discount incentive.

5. Impose a Penalty Fee for Late Payment

To curb subsequent late payments, the lease contract between you and the tenants should prescribe consequences for late payment of rent checks. Tenants are more likely to pay on time to avoid penalties. 

6. Hire a Property Management Company

Sometimes tenants fail to pay their rent checks on time due to a lack of adequate follow-up. Hiring a property management company can ease the burden of a landlord who is constrained to collect rent checks and follow up promptly. Property management companies will manage the property on your behalf, collect rent checks, and do day-to-day follow-ups.  

Notably, tenants have an obligation to pay their rent checks on time, just like property owners have responsibilities to keep the property habitable. If you need any assistance on property management, feel free to contact Leaf Management. We guarantee the best and exceptional service. 

Flooring Replacements

 When To Replace Existing Flooring Based on Materials' Lifespan

Different types of flooring have different lifespans. Aside from unexpected damage and stains, the material used plays a critical role in determining how long your flooring lasts. Every material differs in longevity and durability. However, the material is just one among various factors that dictate the duration a floor will remain in good condition. Other factors include:

• Installation
• Quality of the material
• Regular maintenance
• Amount of traffic

Below is a quick guide to help rental property owners and investors determine the appropriate time to replace existing floors and what materials are best. 

1. Tile Flooring

Tile flooring is one of the most durable options on the market. With proper installation and care, tile floors can last for 5 decades. However, tile is not indestructible. Heavy traffic, dropped objects, and poor maintenance can lead to cracked or chipped tiles. 

2. Carpet Flooring

Carpeting is not as durable as tiling, but it can last several years with proper care. The average lifespan of a carpet is 5-7 years. However, this can vary depending on the quality and amount of traffic. High-quality, low-traffic areas can see carpets lasting up to 25 years. 

Carpet padding also affects the durability of your flooring. The most favored foam-based carpet padding, Rebond, lasts 10 years. However, high-quality padding like urethane can last for 25 years.

3. Vinyl Flooring

Vinyl flooring is a popular choice for rental properties because it is durable and easy to clean. However, vinyl is not as durable as tile or carpet. The average lifespan of vinyl flooring is 10-15 years. 

4. Hardwood Flooring

Hardwood floors are a classic choice for rental properties. They are relatively easy to clean and maintain and can last a lifetime with proper installation. The average lifespan of hardwood floors is 100 years. However, the elegant glossy shine of wood flooring will start fading after 25 years. 

5. Synthetic Wood Flooring

Synthetic wood flooring is a popular alternative to hardwood floors. It mimics the appearance of real wood and is more affordable and easier to maintain. The average lifespan of synthetic wood flooring is 15-25 years. 

 

Although some flooring types have long lifespans, you may need to replace them sooner due to unexpected damage, poor installed and maintenance. Rental property owners and investors should consult with a flooring expert to determine. 

Increasing Property Security

 3 Ways to Increase Property Security Without Deterring Prospective Tenants

Security is a key aspect that any home owner considers as a top of priority for his tenants. Leaf Management estate emphasizes the importance of enhanced security measures, even if privately installed, to protect clients in case of any eventualities.  

Why Enhance the Security on Your Property?

The world is very unpredictable, and so it's better to be safe than sorry where home security is concerned. A protected house is less likely to attract burglars as the intruders prefer easily accessible property. To avoid any possibility of negative branding of insecurity, the property owner can install discreet and effective security measures that are not conspicuous to potential clients. 

Below are three ways to enhance security without deterring potential clients:

1.    Clear Any Bushes, Trees or Shadowy Areas in the Property

Trim any bushes, hedges and trees that may conceal the main entrance to the house. Mow down the grass to lit up any dark and shadowy areas in the compound. A well-lit and clear compound will not conspicuously appear as security measure to a potential tenant, but it will effectively deter any potential intruders. 

2.    Install Private Motion Sensors 

Install motion sensors lights to light up dark areas lie the backdoors and the side of the house, that are rarely visited at night. Whenever there is a movement in the darkness the motion sensors light up. Since the sensors only light up at night whenever they is a movement in the dark, the client will not perceive their installation as a sign of insecurity. 

3.    Install a Video Doorbell

With a video doorbell, a tenant is able to monitor and answer front door calls from anywhere.  The doorbell allows the client speak to visitors at real time and can also detect motions at the door.  A client may consider the video doorbell an efficient and convenient feature, while it also enhances security on the property. 
Yes, it's prudent and advisable for a property owner to enhance the security in his own, but can also do it inconspicuously to avoid any negative image to potential clients.  The installed security measures can be discreet and at the same time effective. 

Sincerely,

Strategies for Late Rental Payments

 4 Strategies To Deal With Tenants Whose Rent Checks Are Always Late

Nothing can be more frustrating for a landlord than tenants who always pay their rent a little late. Such behavior can frustrate your efforts, disrupt your cash flow and make it challenging to keep track of your property investment. If you find yourself in this situation, below are a few strategies you can use to try and rectify the issue.

1. Talk to your tenants about the issue

Having a sit-down and discussing the issue with your tenants is always the first and most reasonable approach. By talking with them, you can work out a solution that works for both of you. However, if this conversation does not bear fruit and the tenants continue with late rent payments, it might be time to consider other stricter, more efficient options. 

2. Hire a property management company

If dealing with late rent payments proves too much of a hassle, you may consider hiring a property management company. A property management company can handle all aspects of rent collection, from sending out late payment notices to evicting tenants who fail to pay their rent on time. This measure can take the stress and frustration out of the rental process for you.

3. Switch to electronic payments

Switching to electronic payment is another measure you can use to deal with late tenants without the constant stress and frustration. Electronic payment systems can automate the rent collection process and make it easier for you to keep track of payments. Additionally, many electronic payment systems allow tenants to set up automatic payment measures that deduct rent from their bank account on the same day each month.

4. Introduce a late payment policy into your rental agreement. 

If late rent payments become a recurring problem despite the above measures, you could introduce a late payment policy into your rental agreement. Such a policy can stipulate that tenants who pay their rent past a specified date will be penalized by being charged a certain fee. This approach can incentivize tenants to pay their rent on time and help you recoup some of the costs associated with late payments.

Improvements that Depreciate Quickly

 4 Home Improvements That Depreciate Quickly

Home improvement is one of the best strategies for increasing your home or property value. The list of home remodeling projects with a high return on investment (ROI) is endless. However, you should know some trendy remodeling projects depreciate quickly. This article will look at 4 home improvement projects that will depreciate fast because of technology.

Smart Thermostats

Smart technology is gaining popularity among home and property owners because of its potential to increase property value. Programmable thermostats have been with us for some years and are among the top most needed technologies in homes. These devices help to adjust your home's energy usage. The good news is you can program and control the thermostats remotely. Although smart thermostats are an excellent ideal for your home improvement project, the technology is advancing quickly, and what would be the best thermostats today may be outdated in the next five years.  

Automatic Blinds and Smart Textiles

Smart home technology is fast getting into our homes. The future of this technology is automating minor aspects that make life bearable at home. Smart textiles and automatic blinds are two features that can attract potential home buyers to purchase your property. This smart technology helps in adjusting the lighting in your home. They bring immense possibilities for controlling lighting and give you control over how much light should enter your house at specific times. With this technology, you can control light during the morning, midday, or evening. Unfortunately, this home improvement project may depreciate fast after introduction of better smart textiles and automatic blinds. 

Smart Connected Appliances

A recent survey shows that 65% of Americans have installed a smart home device. Smart connected appliances work as components of one large system. According to EnergyStar, these appliances are more energy-efficient than conventional appliances. For your next remodeling project, you can consider a unified system comprising refrigerators, washers, freezers, dishwashers, and dryers. This notwithstanding, remember the technology is advancing very fast, and the appliance may depreciate with the introduction of more innovative appliances. 

Smart Security Systems

Typically, home security systems have a high ROI and can significantly increase your home's resale value. They include smart doorbells, smart locks, smart security cameras, and smart doors. We control most of these security features via apps of Wi-Fi remotely. Since the value of security can't be overstated, home buyers find these devices attractive. As the technology advances, a security system you've installed today may be outdated soon. 

Technology is advancing at a quick rate. When choosing trendy home improvement projects, consider how quickly they depreciate. Visit Leaf Management & Funding website for information on smart home improvement projects that attract high ROI and don't depreciate quickly. 

Increasing Security at Rental Properties

 How You Can Increase Property Security Without Deterring Prospective Tenants

While it is important to make sure that your property is kept as safe and secure as possible, it is also important to make sure that these security features don't scare away current or future tenants. It is important to let your tenants know that the security features on your property are not an indication that the area isn't safe, because this will cause them to want to avoid renting the property. Here are three ways that you can increase property security, and what you can tell your prospective tenants, so they aren't deterred from renting from you. 

Front Fence

Adding a front fence to your property is a great security feature, but it can also have other purposes as well, that will be appealing to potential tenants. For one thing, a front fence is a great way to increase the curb appeal of your property. A front fence can also increase the amount of privacy your property has, which is often very appealing to potential tenants.

Security Door

Installing a security door is a great way to keep out intruders, but your tenants will also like it for other reasons. A security door is an excellent protection from different kinds of weathering as well, such as strong winds, heavy rains, hail, etc. This will help your tenants feel safe during severe weather, rather than fearful of intruders. 

Floodlights

Another property security that is beneficial, and will not deter tenants, is a floodlight. While this light is meant to stop intruders from entering your property unknowingly, this is also a great light for anyone to have. It helps to light up your property at night and is great for helping your tenants to see the property when they get home after dark, or leave home before the sun comes up. This can also be a comfort to them when it comes to things like wild animals.

What to Do if You Purchased a Home at Too High a Price

 Purchased a Home at Too High a Price? Here's What To Do

If you bought a second home or an investment property when the market peaked, you are probably worried that you made a wrong decision. You need to know that the real estate market - like any other market - experiences upheavals and fluctuations in prices.

Ramifications of buying a home at too high a price

Knowledge of the implications of purchasing a home at too high a price can help you determine what to do to manage the situation. Here are some ramifications of buying a home during market peaks:

•    You may lose equity: You may not be able to recover the original value of the home because new buyers may not be willing to pay more than the current market price.
•    Decrease in resale value: The value of the home or investment property may not go over the purchase price for a long time, meaning you will sell it at a lower price than you bought it at.
•    Potential loss of cash flow: Rental prices may decrease resulting in reduced income from the property or home.

What to do

If you bought your second home or investment property at too high a price you really don't need to worry. Here's what you can do:
•    Be patient: Markets don't stay the same forever. Don't be in a hurry to resell the home or investment property. 
•    Add value to the property: you can increase the value of the property by making some additions such as a swimming pool, or giving it a new coat of paint.

Before you worry too much about the home you bought at a very high price, you need to remember than that markets are always changing. You may need to be a little more patient and see what happens to the prices. You may also add more value to the home to get a better prices. For more information, please contact us today. 

Diversifying Real Estate Portfolios

 6 Easy Ways to Diversify Your Portfolio and Include Real Estate Holdings

When it comes to protecting your finances, investing in real estate is a sound decision. And, with the current state of the economy and stock market, now may be a good time to consider adding real estate holdings to your investment portfolio. Let us show you how easy it can be to get started.

Here are 6 easy ways to diversify your portfolio and include real estate holdings:

- REITs: A REIT, or real estate investment trust, is a company that owns and operates income-producing real estate. By investing in a REIT, you can gain exposure to the real estate market without having to directly purchase property.

- Home Equity: If you own a home, you can use the equity in your home to invest in real estate. There are a few different ways to do this, such as taking out a home equity loan or line of credit, or selling your home and using the proceeds to purchase an investment property.

- Economic Development Zones: Economic development zones are areas that have been designated by the government for economic growth and revitalization. By investing in these areas, you can receive tax breaks and other incentives.

- Tenant-in-Common Property: A tenant-in-common property is a piece of real estate that is owned by two or more people. This can be a great way to invest in real estate with less money down.

- Real Estate Investment Trusts: A real estate investment trust, or REIT, is a company that owns and operates income-producing real estate. By investing in a REIT, you can gain exposure to the real estate market without having to directly purchase property.

- Real Estate Exchange-Traded Funds: A real estate exchange-traded fund, or ETF, is a type of investment that allows you to invest in a basket of real estate-related securities. This is a great way to diversify your portfolio and get exposure to the real estate market without having to directly purchase property.

By diversifying your investment portfolio to include real estate holdings, you can protect your finances and potentially see greater returns over time. And with so many easy ways to get started, there's no excuse not to add real estate to your investment portfolio today.

Pet-Friendly Rentals - Yes or No?

 During the COVID-19 pandemic, more Americans than ever adopted pets, with the American Society for the Prevention of Cruelty to Animals estimating 23 million American households added new furry friends to their households in the last few years. What does that mean for you as a rental property owner? There may be a huge market of renters you're not reaching if you don't allow pets in your units. It's not an easy decision to make, however, because there are certainly risks. Before you make any decisions, think closely about the potential pros and cons.

Pros:

• More tenants to choose from. This is the big one! There are many pet owners looking for places to live with fewer options to choose from. If you're struggling to find good tenants, this might just be what makes it worth it. 
• Many pet-owning tenants are willing to pay a premium to bring their furry family members with them. In addition to higher base rent, this can also come in the form of a pet deposit or monthly pet rent and help put more money in your pocket.
• Responsible tenants. While you may be worried about the risks of pets in your units, oftentimes pet owners can be excellent tenants. They have taken on the responsibility for owning a pet and often understand they must be on the best behavior to keep a place for their dog or cat.

Cons:

• You risk damage to your unit. Dogs and cats may chew, scratch, or have accidents inside. There are several ways you might mitigate this risk, from establishing a higher pet deposit to creating a strong pet policy in your lease. Get advice from others as to what a good pet policy looks like. You might also include a policy that requires renters to have the unit professionally cleaned upon move out.
• Pets might disturb neighbors in the building or on the block whether through barking or running around overhead another unit. Again, you should outline how issues like this will be addressed in your pet policy. This might include warnings and fines. If you're worried about this risk, consider a cats-only rental. They are still in demand, but you likely won't have to deal with as many noise issues as exist with dogs. 
• There are potential liabilities to think about, especially related to the risk of dog bites. While you can't ever eliminate the risks here, talking to a rental professional about the kind of liability insurance you should have and what you should require your tenant to have is an important first step.

There's no right or wrong decision, just like many other aspects of managing a rental. Thinking about the potential risks you are comfortable with is a critical first step in deciding if making your units pet-friendly is the right choice. 

Rehab, Renovate or Remodel

 Is there a difference between Rehab, Renovate, and Remodel?

Do you know the difference between rehab, renovate, and remodel? More importantly, do you know when each term applies? While they're all terms that get thrown around in the building world, it's easy to use them interchangeably. But in a real sense, they are different.

This article will help you understand the differences between these terms and help you choose the best option for your home improvement project. Ready? Let's roll.

Rehabilitation

Rehab is the first step in a home's transformation. It's defined as any work necessary to bring a property to local building codes and basic habitability standards. 

This can include installing a new roof, replacing broken windows, fixing faulty wiring and plumbing. Additionally, it can involve cosmetic upgrades, such as new flooring or painting.

Renovation

On the other hand, renovation is restoring something to its original condition. It is often used when referring to property restoration, including buildings, monuments, and residences.

A renovation project could be as simple as painting the walls and repairing the floors to replacing old pipes, electrical wiring, and HVAC systems. It can also include repairs on foundation or reinforcing beams to specifics like replacing countertops and appliances in kitchens and bathrooms.

Remodeling

Remodeling could be as simple as removing a load-bearing wall between two rooms or as complex as building an addition to your home. 

Remodeling usually involves changing the layout of an existing space — removing or adding walls, for example — rather than just updating finishes.

While renovations and remodeling may sometimes overlap in scope, rehabs are more invasive than either of those processes. A rehab intends to take a dilapidated house and make it livable again. 

Rehabs are typically done when a house has been neglected so long that it's no longer habitable. 

Bottom Line

Ultimately, the important question is what you want out of it. If you're trying to sell your home and want to give it a facelift, a remodel best serves you by remodeling. But if you'd like to make it truly your own space and renovate what you can, this is likely your best option. 

 

Ultimately, rehab will work the best after a disaster since it will make your home livable.

However, either way, we hope we've made it easier for you to make the right decision for your next DIY project.

Home Improvements to Raise Property Value

 7 Property Upgrades That will add Value in Today's Housing Market

Many homeowners choose to make updates or repairs to increase the value of their property. It's important to remember that the norms for home upgrades may have changed since the market crashed in a tough housing market. A few home upgrades consistently generate a high return on investment (ROI). So, which upgrades still make sense in today's market?

1. New Siding

Siding is a great way to improve the overall look of your home, and it can also add value. If your home needs new siding, now is a good investment. If your home currently has vinyl siding, consider replacing it with something more luxurious, like cedar shake siding.

2. A New Roof

A new roof is a wise investment in any housing market. It can add value to your home and also make it more energy-efficient. Asphalt shingles are a popular choice among homeowners, but metal roofs are becoming increasingly popular. In addition, a new roof will protect your home from the elements and could even lower your insurance premiums.

3. A New Deck

Adding a new deck or patio is a great way to add value to your home. Outdoor living spaces are becoming more and more popular, and you can use them for entertaining, relaxing, or even working from home. If you have an area, this is an upgrade that will pay off in the long run.

4. A New Kitchen

A new kitchen is always a good investment. Whether you're planning to sell your home soon or stay put for years to come, an updated kitchen will add value to your property. A new kitchen can be a central selling point if you're planning to sell. Buyers are always looking for homes with updated kitchens and bathrooms. If you're not planning to sell anytime soon, a new kitchen will still increase the value of your home and make it more enjoyable and cozy.

5. A New Bathroom

Like a new kitchen, a new bathroom can be a significant expense – but it's also one of the best ways to increase the value of your home. Updating your bathroom is one of the smartest investments you can make in your home. Not only will a new bathroom increase the value of your property, but it can also provide you with years of enjoyment.

6. A New Garage Door

If you're looking to give your home an instant facelift, a new garage door is a great place to start. It's a relatively affordable upgrade that can make a big difference in the curb appeal of your property. A new garage door can give your home an instant facelift, and it's a relatively affordable upgrade.

7. New Windows

Replacing your windows is a great way to improve your home's energy efficiency – and it can also add value. Installing new windows is a great way to enhance your home's appearance and energy efficiency. New windows can save you money on heating costs in a cold climate.

Final Thoughts

Making home improvements is a great way to add value to your property. Whether you're planning to sell your home soon or stay put for years to come, these upgrades will make your home more enjoyable to live in and increase its value.