Thursday, July 19, 2012

Clients Will Thank You

The out of state investor typically assumes that our rental rates are similar to theirs. This assumption proves to be costly when it is time to locate a suitable tenant. As a general rule of thumb, it will take 25 percent down to allow a rental unit to break even. This 25 percent figure does not include the rehabilitation costs discussed earlier. As a buyer's agent assist your client by being realistic about foreclosed properties to be used as rentals. Your clients will thank you and perhaps purchase more properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit www.coloradolandlordsolutions.com website. Or visit Meer and Company website at www.meerandco.com.

Wednesday, July 11, 2012

Negative Side of Foreclosed

For investors wanting to purchase foreclosed single-family units to use as rental properties there is a negative side. These cons do exist and are significant. A buyer's agent should remember the following-generally, the condition of the foreclosed property is poor; and there is an incorrect assumption held by many investors that tenants are willing to accept tired and worn out properties to call home. While vacancy rates have fallen, it is still a tenants market. As a property manager, my customers (tenants) are demanding clean and functional homes to live in. Be certain your client is prepared for necessary rehabilitation costs connected with most foreclosed properties.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, and manages 150 single-family units in metro Denver. He is a speaker, consultant, expert witness and holds the Master Property Manager (MPM) designation awarded by NARPM. He has served on the National Board of Directors of NARPM. His firm holds the Certified Residential Management Company (CRMC) designation also awarded by NARPM.