Consider Consistent Rent Increases
After a period of barely being on the radar, inflation has begun to become an issue again. If you are a landlord this directly affects your bottom line. There are many things to consider when implementing rent increases to keep up with inflation.
First, increasing rent in a courteous manner includes communicating with your tenants in a way that will protect your relationship with them. This is a topic estate author Kevin Ortner educates landlords on in Realtor Magazine. Below are some of his recommendations:
- Consider raising rents on a regular schedule. An excellent time for this would be during the lease renewal. If it is a month to month agreement a year of tenancy would be a suggested period. Increasing in small amounts annually is a better more tenant friendly way to handle rent increases rather than a large amount arranged more infrequently.
- You should be competitive. You need to consider what price tenants will be willing to pay to rent from you. The actual amount must be in compliance with Florida and local laws of course. When considering a price go to the Bureau of Labor Statistics’ annual estimation of Shelter Cost Changes. At the end of August, it was 3.4%. While national trends are important, the amount other Coral Spring’s tenants are paying to rent similar properties is more significant.
- Give the tenant more time. While you must adhere to the law and the terms of your lease, it will make it easier on a tenant if you give them a little extra notice of any impending rent increases. This may be especially important if you have a particularly good tenant that you wish to hold onto. If you are keeping your rent competitive, they will they will see that it is a sensible increase if they research what other similar properties are renting for.
- Always work with your best tenants. It is important to take the individual situations of tenants you want to retain into consideration. Show them what the rent increase was going to be. Then show them a smaller number that they will be asked to pay. Consider sharing with them any operating cost increases that have led to their rent increase.
These recommendations on rent increases by Ortner can help you get the most money from your property while protecting your relationship with your tenant. If you are looking for assistance in finding investment properties, give us a call today!
Curb Appeal Window of Opportunity
The Best Time To Get Your Lawn Ready For Summer Curb Appeal
Southeast Florida garden enthusiasts already know. But for the rest of us who don’t have green thumbs, this is a very special time of year for your home’s curb appeal.
Or at least as far as gardening and landscaping are concerned.
The fall is prime season for transplanting existing plants and planting new plants.
Even if you’re not planning on selling your Coral Springs home anytime soon, it is still in your best interest to maximize your home’s curb appeal. Where pride of ownership is concerned, having beautiful plants in your front and back yard will have a major positive impact on visual appeal. Your neighbors and casual joggers may not notice the aesthetic difference your pleasantly appointed yard makes, but fresh landscaping is one area that is readily available, and within full control of every homeowner. (Unless you live in an HOA community, then there may be some restrictions.) Experienced gardeners will tell you, now is the best time of the year for making the most aesthetic difference in your curb appeal, for the least amount of money. Who doesn’t want to save money, right?
Fall’s cooler temperatures are what make all the difference. The soil maintaining much of summer’s warmth, along with the cool air temperature will cause less stress on the plant’s roots, as well as the gardener doing the work. Like squirrels in the winter, perennials hibernate in the winter. Their time in dormancy over the winter gives them a nice time to restore themselves. Additionally, it’s a stress-free way for their roots to take hold.
Most amateur gardeners begin by enhancing the variety of color in their gardens when spring begins. However, for spring blossoming bulbs, shrubs, perennials and trees, this is not the best time for planting and transplanting. Experts will tell you, the fall season is the best time to divide clusters of perennials that did well throughout the year. This is one trick the will help you spread color to other parts of your garden for a total investment of zero dollars. Keep an eye out for sales at local garden sales. There are a lot of places in Coral Springs that are trying to unload their garden inventory to make room for holiday inventory.
For house flippers with a short timeline, planting and transplanting may not be ideal. But for homeowners that don’t see selling their house on the horizon anytime soon, taking the long view of landscape enhancement is ideal and cost effective. The best time to begin your plans for the summer’s lush garden is October. And when the time comes to buy or sell real estate in Coral Springs or Broward County, we hope you’ll give us at The Miranda Team a call. We’re always here for FREE, no obligation counseling and advice.
Selling a Rental Property Can Be Smooth and Easy
How To Sell Your Cash Flow Property
Even investors whose real estate rental property have served them well with cash flow eventually decide to sell at some point.
When considering home prices have been going up since 2010 and today’s low inventories, today’s market makes complete sense to consider selling your income-producing rental investment.
In fact, it may be one of the most timely financial moves you make.
A wise purchase in rental property real estate can add up to thousands of extra dollars in your pocket every year.
A savvy investor knows an even wiser purchase, can mean tens or hundreds of thousands of dollars in appreciation.
That is as long as you sell at the height of the market and not during the fall.
If one should happen to be considering selling an income producing rental property it begs the question. What do you do with the tenant-occupant? Which leads to the next set of questions. Do you wait until the lease expires so the vacant property can be shown without disturbing (or possibly angering) the occupant? Or is it better to sell the property with the tenant still living there? Whatever you decide, just be sure you’re not violating any of the Florida landlord-tenant laws. The specifics will be in the terms of the rental lease (contract), but past experience will teach that following a few simple guidelines will almost always prevent any tenant-occupied rental property sales issues before they become an issue.
When dealing with “people” matters, it’s always a good idea to keep an open line of communication. Basic communication will be a major factor to ensure your transaction remains smooth through-out. Including letting the tenant-occupant know as soon as possible that their home will be going on the market. Reassuring your tenant-occupants that your agent and you will work with the renter to keep inconveniences to a minimum. Somewhere during these discussions, it may not be a bad idea to suggest they consider purchasing a home of their own. This could be a major step to curb further complications.
Be Prepared to Handle All of Your Renter’s Concerns, Including:
- Moving Out. Because your renter has such a great history, this is a slim possibility. Keep in mind, when the new owner takes possession of a rental property they must honor the previous lease. Don’t forget to provide a copy prior to closing. However, once the lease expires, the new owner is under no obligation to continue to offer the property to lease. The lease will outline specifics about what the options are when it nears expiration.
- Strangers Coming Into Their Home. Generally speaking, this is an issue for most people. I don’t know many people that are thrilled about complete strangers coming into their dwelling to “just take a look”. One way to ease the tenant’s mind is to ensure they know that only qualified buyers will be allowed showings. Plus, they will always be accompanied by a Florida-licensed real estate professional. At The Miranda Team we accompany every showing on our listings, even if the buyer’s agent will be there. Not only will it ease the seller and renter’s minds. It also gives us more opportunity to market and sell the property.
- Life Interruption. Nobody likes their life being interrupted by another person. Be sure to communicate to the tenant the terms of your showing agreement regarding advanced notice being required for every showing with your Realtor® , as well as having your Realtor® communicate the same. This will go a long way to ease your tenants mind.
At the end of the day, every situation will be different and will require individual attention to specific details. For example, if your properties highest and best use would be to maintain rental status, then keeping a tenant in there might not be a bad idea. But, if you’re selling an upscale home that will likely attract an owner occupant then a vacant home, staged to the 9’s is probably the best route (always a good idea!).
No matter what the case is, the best advice will come when you call The Miranda Team at The Keyes Company. We can discuss the property, and develop a marketing plan together to discuss with the renter. This is how a winning game plan is developed. So whether you’re looking to buy or sell in Coral Springs, or anywhere in Broward County we would love to see how we can make your sales process as smooth as possible.