Preventing Pipes from Freezing this Winter

 3 Steps to Protect Your Rental Property's Pipes

Extreme or sudden freezes can be a major concern for landlords, as frozen pipes can lead to water damage, costly repairs, and unhappy tenants. However, there are steps that landlords can take to protect their properties and minimize the risk of damage from freezing temperatures.

Before we dive in, it's important to understand how pipes freeze and how to identify when they are in danger. Pipes are most likely to freeze when the temperature drops below 20 degrees Fahrenheit, and they are located in uninsulated areas, such as basements, attics, or crawl spaces. Signs that pipes may be freezing include a decrease in water pressure, a change in the color or taste of the water, or a loud banging noise when the water is turned on. Follow these three steps to prevent damage to your investment:

1. Insulate

To prevent pipes from freezing, landlords should take steps to insulate pipes in unheated areas, such as basements and attics. This can be done by wrapping pipes in insulation, using pipe sleeves, or installing heat tape. Additionally, landlords should make sure that any vents or ducts in unheated areas are properly sealed to prevent cold air from entering the space.

2. Inspect

It's also important for landlords to be proactive about checking the property for potential issues before the weather turns cold. This might include inspecting the property for leaks, checking the thermostat, and making sure that all windows and doors are properly sealed to prevent drafts. Landlords should also consider turning the water off and draining the pipes before a forecasted freeze, as well as installing a freeze alarm to alert them of potential issues.

3. Inform

Another step that landlords can take to protect their property is to provide tenants with information on how to prevent pipes from freezing and what to do if they suspect that pipes are freezing. This might include providing tenants with information on how to properly maintain their heating systems, how to properly use space heaters, and how to turn off the water in case of an emergency.

Overall, landlords can take a number of steps to protect their properties from extreme or sudden freezes. By taking steps to insulate pipes, being proactive about identifying and addressing potential issues, and providing tenants with information and resources, landlords can minimize the risk of damage and protect their investments.

Signs of a Hasty Flip

 5 Signs of a Hasty Flip That Turn Off Prospective Buyers

Hasty flips attract hasty buyers. Flipping homes is one of the fastest ways to make money in real estate. However, investors who buy homes and resell them quickly often run into trouble.

Here are five signs of a hasty flip that may turn off prospective buyers — leading to losses instead of profits.

1. Flimsy Materials

Hasty flips often use cheap materials that don't last long. If you can see that the walls or floors are made of particle board, for example, this is not a sign of quality construction.

A real estate agent with experience in flipping homes may be able to tell you if the materials used in your new home are sturdy and durable or if they will need replacing soon after purchase.

2. Fresh Paint That Doesn't Match

In a hasty flip, the paint job is often a rush job. The homeowner might have had an existing color in mind and ordered it from a paint store that was closing. Or maybe they were on a tight deadline and just grabbed some paint from the local hardware store.

Either way, if the color doesn't match the rest of your house or neighborhood, it'll turn off buyers — even if they don't know why.

3. New Carpeting That Doesn't Match

If you have new carpeting or new paint, that's great! However, if the carpeting doesn't match the rest of the house and the walls are painted a different color, this is a red flag for potential buyers.

If you are selling your home and want to make it seem like an upgrade, make sure you're using paint that matches the existing paint in your home. If you want to keep things neutral but want to add some flair, consider painting one wall a different color but keeping it toned down so that it works with what is already there.

4. Faded Paint

You may have thought your home was perfect when you bought it, but buyers know better than anyone else that nothing lasts forever when it comes to real estate — even high-end homes are prone to wear and tear over time.

One sign that your house might not have been maintained as well as you think: faded paint on walls and ceilings throughout the house. It doesn't take long for paint to lose its luster; if yours looks old and worn out after only a few years of use, what does that say about how long it might last?

5. Lack of Curb Appeal

The first thing that buyers notice when they pull up to a home is the exterior, including landscaping, paint colors and curb appeal. If you see that the exterior looks like it was put together in a hurry, it may be telling you that something is wrong with the inside as well.

While curb appeal is subjective, there are some things that can be improved to attract more buyers. For example, a fresh coat of paint on the front door and windows can make a huge difference. A new mailbox or front door mat may also be enough to make you stand out from the competition.

Vetting Potential Tenants

Vetting Potential Tenants Using Credit: How And How Not To Use It

Tenants with bad credit are a sign that something may be wrong with their ability to pay rent. If you're worried about your tenants' credit, consider why that might be the case. Is there any evidence of fraud (like unpaid debts)? Are they paying their bills on time? Is there any indication that this person has engaged in illegal activity? If so, you may have to consider whether or not you can trust them with your property.

Why Does Credit Matter?

• Use credit reports as part of a tenant screening process. Credit reports can help you vet potential tenants, but they should only be used as one piece of your overall strategy. Credit checks can be done for free at any significant sites, so there's no need to pay extra money for this service.
• Tenant screening is essential for landlords. Tenants who have bad credit histories may not be able to pay rent on time or might not be able to meet other requirements like having steady employment history or being able to provide references from previous landlords who know them well enough that they feel comfortable letting them in their home without doing additional due diligence first; these people may also have lower incomes than those who do have good credit scores because they don't make enough money working full-time jobs outside their homes either—so it's essential for landlords themselves too!

Don't Use It to Discriminate.

You may be wondering how you can use credit to discriminate against tenants. Well, it's not allowed.

The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex and disability.

A landlord cannot deny a tenant based on race, color, religion, sex or national origin alone. However, the landlord can refuse to rent to someone who has been convicted of certain crimes involving violence or guns—for example, burglary with intent (a felony in California), assault with deadly weapons (a felony), attempted murder (usually defined as second-degree attempted murder if there was no injury).

Having said that: a landlord may ask you whether someone has ever been arrested for any crime before and then base your decision on whether they've been convicted of those same crimes--but only if they're asked this question directly by the landlord in person when discussing potential tenants' backgrounds during an application process!

Ask for Permission to Check Credit.

It may seem obvious, but you need to ask for permission before checking credit. If you don't get written consent, the tenant can sue you for invasion of privacy and other violations.

You'll want to ensure that the tenant has signed the form authorizing you to do this check; if not, then it's not legal for them to give permission to investigate their financial status (even if they pay rent on time). Make sure that when collecting rent or taking out a lease deposit from a tenant who hasn't paid in full yet—or even if there is no signed consent form yet—you have an agreement as well as proof that said the deal had been met with each tenant signing off on such inspections by giving them copies of their paperwork regarding any checks made during these visits. Hence, they understand exactly what kind(s) of financial information may be obtained when conducting such searches.

(Re)Check the Credit Report on Time.

The following steps should be taken to ensure that your credit report is up-to-date and accurate.

• Check the credit report before accepting a tenant. Before you apply, make sure there are no outstanding loans on their record. If there are, cancel the application immediately and find another property management company to work with in the future. After they move in, recheck their file—this time looking for any payments or collections that might indicate they're not paying rent on time or getting into financial trouble.
• Check their file periodically after they've moved out of your property (and every six months after that). Again, look for payment information, such as late fees charged by banks when tenants miss payments during their tenancy period; this will give you an idea of whether or not it's worth continuing working with them moving forward!

Take Tenant Screening Seriously.

When you're looking to rent out your property, a credit report is one of the most critical factors in determining whether or not a tenant is suitable for the job. But other factors can affect your decision-making process—and you should consider them before deciding how much weight to give credit reports.

Here's why: First, because tenants don't always pay bills on time and often leave behind broken appliances or damaged property when moving out (which could be costly), having a sound tenant screening system will help protect your investment by reducing risk and helping ensure that no bad apples make it onto the property list. Second, suppose there's one thing we've learned from recent court cases across America regarding landlords' rights under fair housing laws (FHL). In that case, it's that having good tenant screening practices will help avoid problems with tenants before they even happen!

Keep Your Credit Reports (and Tenants) Secure.

It's essential to keep your tenant's credit reports secure. Here are some tips:

• Do not share credit reports with third parties. This includes landlords, property management companies, or other real estate professionals unless they are directly involved in the tenant screening process.
• Do not post them online at any time (e-mailing them is fine), print them out and leave them in the mailbox of potential tenants as a "courtesy" (this is legal), or leave them with a security guard at the building entrance so that they can be accessed by anyone who enters the building. At the same time, you're gone—these actions can lead to identity theft if someone steals your information from those files!

View Bad Credit as an Opportunity to Educate Tenants.

One of the most important things you can do as a landlord is to educate your tenants about their financial responsibilities. Lousy credit may indicate a tenant's ability to pay rent on time and maintain the property. Still, it's also possible they could be dealing with some sudden change in circumstance—a job loss, divorce or death in the family.

If you're worried about how much money your tenant will be able to afford each month when they move into their new home, don't think twice about giving them a chance at being approved for credit by one lender over another (especially if you know exactly what types of loans those cats have been taking out). This way, when it comes time for them to start paying rent each month (or any other form of payment), there won't be any surprises down the road because now everyone knows exactly where those payments should go!

Conclusion

Remember, credit is only one piece of a more extensive tenant screening process. Your credit report holds a lot of information that can help you make an informed decision, but there are other factors to consider. If you have questions about using credit and your rights as a landlord, please contact us for further assistance. You can also visit our website, Leaf Management.

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!