On May 22nd, board members, property managers, and other representatives will get together in order to benefit WSCAI's Legislative Action Committee. This is a one day seminar offering many different classes that are beneficial to all types of communities. Classes range from rental restrictions to legal issues boot camp for new board members. We strongly encourage all of our board members to take advantage of this opportunity and attend this seminar!
The seminar will be held at the Lynnwood Convention Center and is from 8am to 3:30pm and includes a continental breakfast and lunch. The fee is $85 for all attendees regardless if you are a CAI member or not. Contact our office for a registration form!
Hope to see you there!
Wednesday, May 19, 2010
Friday, May 14, 2010
What can you do to get the best rent under the current market conditions?
By Vickie Gaskill, CPM®, MPM@, RMP@, ARM@ OWNER/BROKER
According to a recent report published by Dupree + Scott (April 2010), we may have experienced a rather rough past 12 months and are probably looking to more of the same in the future. They’ve seen a decline of 2% in one bedroom rents, 1.25% decline in 2 bedrooms, and a 1% decline in 3-4 bedrooms over the past 12 months. They noted that the only increase in rents was found in some 4 bedroom and 5 bedrooms and that was about 1%. They asked participants in their survey how much they expect rents in their properties to change over the next six months. Only 10% plan to increase rents and about as many anticipate decreasing rents.
According to the report, the overall average rents for properties in the greater South King County area is $1,086. As you can see by the graph below, Bell-Anderson’s average is pretty much keeping step with the Dupree + Scott analysis.
So what can homeowners do to make their homes more rentable?
1. Make sure it has great curb appeal – What does it look like when someone drives by it on the street. Have the landscaping in good shape. Remember, you’ll want to have the tenant maintain the yard while their occupying the property. Give it to them in good shape to start with.
2. Price it competitively – Sometimes that means that you won’t make your entire mortgage payment with the amount of rent collected. With our overabundance of rentals today, take the advice of your professional property manager when it comes to setting the rent amount.
3. Fresh paint, clean carpets, and all appliances must be in good working order. Just because you were able to put up with the nonworking burner on the stove or the drippy faucet in the sink, doesn’t mean that a tenant won’t want everything working properly. When these negative things are shown to a perspective tenant, they make the assumption that you don’t care about your house and they can treat it the same way you did.
Market conditions are a bit challenging right now. As a landlord/homeowner, it’s imperative that you do all you can to achieve renting your property out in a timely manner.
According to a recent report published by Dupree + Scott (April 2010), we may have experienced a rather rough past 12 months and are probably looking to more of the same in the future. They’ve seen a decline of 2% in one bedroom rents, 1.25% decline in 2 bedrooms, and a 1% decline in 3-4 bedrooms over the past 12 months. They noted that the only increase in rents was found in some 4 bedroom and 5 bedrooms and that was about 1%. They asked participants in their survey how much they expect rents in their properties to change over the next six months. Only 10% plan to increase rents and about as many anticipate decreasing rents.
According to the report, the overall average rents for properties in the greater South King County area is $1,086. As you can see by the graph below, Bell-Anderson’s average is pretty much keeping step with the Dupree + Scott analysis.
So what can homeowners do to make their homes more rentable?
1. Make sure it has great curb appeal – What does it look like when someone drives by it on the street. Have the landscaping in good shape. Remember, you’ll want to have the tenant maintain the yard while their occupying the property. Give it to them in good shape to start with.
2. Price it competitively – Sometimes that means that you won’t make your entire mortgage payment with the amount of rent collected. With our overabundance of rentals today, take the advice of your professional property manager when it comes to setting the rent amount.
3. Fresh paint, clean carpets, and all appliances must be in good working order. Just because you were able to put up with the nonworking burner on the stove or the drippy faucet in the sink, doesn’t mean that a tenant won’t want everything working properly. When these negative things are shown to a perspective tenant, they make the assumption that you don’t care about your house and they can treat it the same way you did.
Market conditions are a bit challenging right now. As a landlord/homeowner, it’s imperative that you do all you can to achieve renting your property out in a timely manner.
Thursday, May 13, 2010
How Much Money Should you Put Aside for Rental Repairs?
(Excerpt from Rentals.com May 2010 Newsletter)
Becoming a landlord doesn’t just mean worrying about keeping your property rented and to the right tenants. You also need to be sure you have budgeted for necessary repairs. Read on for some tips on how to plan ahead for the inevitable repair bills.
How much to put aside
Prevailing wisdom recommends saving 1% to 3% of the value of your rental property for repairs each year. Though repair totals will vary from year to year, leftover funds from one year can help cover you for big expenditures during another one. Just be sure you set down a dollar amount to hit annually for savings. On a rental property worth $250,000, for example, try to reserve $2,500 to $7,500 for repairs each year. Hitting your annual repair-fund goals will also help you prepare for the unexpected, such as storm damage.
Be realistic
Ideally, you had your property inspected before purchase and so are aware of the age of big-ticket items like the roof, HVAC system and kitchen appliances. Accounting for normal wear and tear, you’ll have a basic idea of when you’ll need to repair or replace these items, so start socking away funds for those major repairs.
Preventative measures
You can keep small repair issues from turning into big ones with regular maintenance, so be sure to budget for maintenance as well. Everything from chimney cleaning to tree or limb removal can save you big money down the line, so be sure you’re planning for the expense. Other maintenance practices to implement are yearly HVAC checks and regular gutter cleaning.
Don’t be caught off guard by repair bills for your rental property. Prepare now by starting a savings fund to take care of regular maintenance and the cost of repairs to and replacement of systems, appliances and structural items.
Becoming a landlord doesn’t just mean worrying about keeping your property rented and to the right tenants. You also need to be sure you have budgeted for necessary repairs. Read on for some tips on how to plan ahead for the inevitable repair bills.
How much to put aside
Prevailing wisdom recommends saving 1% to 3% of the value of your rental property for repairs each year. Though repair totals will vary from year to year, leftover funds from one year can help cover you for big expenditures during another one. Just be sure you set down a dollar amount to hit annually for savings. On a rental property worth $250,000, for example, try to reserve $2,500 to $7,500 for repairs each year. Hitting your annual repair-fund goals will also help you prepare for the unexpected, such as storm damage.
Be realistic
Ideally, you had your property inspected before purchase and so are aware of the age of big-ticket items like the roof, HVAC system and kitchen appliances. Accounting for normal wear and tear, you’ll have a basic idea of when you’ll need to repair or replace these items, so start socking away funds for those major repairs.
Preventative measures
You can keep small repair issues from turning into big ones with regular maintenance, so be sure to budget for maintenance as well. Everything from chimney cleaning to tree or limb removal can save you big money down the line, so be sure you’re planning for the expense. Other maintenance practices to implement are yearly HVAC checks and regular gutter cleaning.
Don’t be caught off guard by repair bills for your rental property. Prepare now by starting a savings fund to take care of regular maintenance and the cost of repairs to and replacement of systems, appliances and structural items.
Thursday, May 6, 2010
Reminder About Your Yard
Just a friendly reminder to all of our tenants and residents living in homeowner's associations. This is the time of year when folks are getting more yard violation notices. In order to avoid this, please make sure to keep your lawn neatly mowed and beds free from weeds. Thanks in advance for keeping your property beautiful!
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