Are you thinking of renting out your home? In that case, you need to ask these 10 questions to anyone wanting to rent your house:
1. When are you planning to move in?
This is the question that shapes the rest of your engagement with the potential tenant. The answer here will help you determine whether or not the tenant’s timelines synchronize with yours. If, for example, a tenant wants to move in a month from now but you want to rent it out sooner than that, then there is no point in engaging the person any further.
2. Why are you relocating?
If the tenant is moving into your property after falling out with their previous landlord, you need to know what led to the fallout. Was it because of dishonoring their rent obligations? Was it because of neglecting their other tenant responsibilities as per the lease agreement? The answers they give will tell you whether or not to let them rent your property. In the same vein, ask them how long they have lived in the previous apartment and how long they intend to live in yours. If you establish that they have a habit of hopping from one apartment to another within unreasonably short durations, politely decline their application.
3. Have you ever been evicted for any reason?
This question seeks to clarify the #2 question even further. Maybe they weren’t evicted in their immediate former home, but you cannot conclude that they have never been evicted in the past. Ensure that they give you sufficient details about their journey since they started renting.
4. How stable are you financially?
If they are unstable, chances are that they will give you problems with the rent. Experts say that a good tenant is the one whose monthly rent doesn’t exceed 40% of their total monthly earnings. That is to say that if you expect the tenant to pay $1000 in monthly rent, they should be earning at least $2500 per month. And because monthly income isn’t a perfect indicator of financial stability, make a point of running a credit check to determine how much debt the tenant is in. If your new tenant is in the Gig economy, you might want to ask more questions if they are financially stable.
5. How many people will you be living with?
The last thing you want is to rent your house out to an individual, only to realize later that he brought in his extended family and some of his friends to live with him. There is nothing wrong with housing a needy friend or relative, except that more people mean more wear and tear to your property. Besides, overcrowding in homes is listed by most fire departments and health professionals as a major health and safety risk.
6. Do you own any pets or support animals?
If yes, how many do you have? This is important to know if you have a renting policy that doesn’t allow pet ownership. If you have a set monthly/annual deposit for pets or a limit as to how many pets a tenant can have, make it clear to them beforehand.
7. How clean is your criminal record?
As a tenant’s credit history is significant to your property’s financial future, so is their criminal history to your - as well as your other tenants' - security. Don’t underestimate the number of ex-convicts looking for rental homes in the US today. In 2015, a tenant screening by SmartMove showed that at least 22% of all tenants-to-be had a criminal record. Even if you don’t have a problem renting out to an ex-convict, having this information with you is necessary when planning your rental unit's overall security.
8. Are you prepared to pay all moving costs upfront?
Some landlords require tenants to pay a security deposit, one month rent deposit, and first month rent in full upon signing the lease. If you are such a tenant, or if there are other moving costs attached to your house, then let the tenant know beforehand.
9. What kind of a neighbor can you describe yourself as?
A new tenant can be so unruly that they force their neighbors to end their lease earlier than intended. If they like to play loud music or bring home too many friends, you need to know so that you can append a rule within the lease that will keep their unruly behavior in check.
10. Do you have any follow-up questions?
This sounds obvious but it is very important. You need the tenant as much as they need your property, so you will be wrong not to give them the chance to ask you the follow-up questions they could have. This presents you with the opportunity to appeal to the tenant.
Here are 5 Reasons listing your home for sale this spring makes sense.
The latest Buyer Traffic Index from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing, and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other for the same home.
Take advantage of the buyer activity currently in the market.
Housing inventory is still under the 6-month supply needed for a normal housing market. This means that, in most of the country, there are not enough homes for sale to satisfy the number of buyers.
Historically, the average number of years a homeowner stayed in his or her home was six, but that number has hovered between nine and ten years since 2011. Many homeowners have a pent-up desire to move, as they were unable to sell over the last few years due to a negative equity situation. As home values continue to appreciate, more and more homeowners are granted the freedom to move.
Many homeowners were reluctant to list their home over the last couple of years for fear that they would not find a home to move in to. That is all changing now as more homes come to market at the higher end. The choices buyers have will continue to increase. Don’t wait until additional inventory comes to market before you to decide to sell.
Today’s competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. Buyers know exactly what they can afford before home shopping. This makes the entire selling process much faster and simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to 47 days.
If your next move will be into a premium or luxury home, now is the time to move up! The inventory of homes for sale at these higher price ranges has created a buyer’s market. This means that if you are planning on selling a starter or trade-up home, it will sell quickly, AND you’ll be able to find a premium home to call your own!
According to CoreLogic, prices are projected to appreciate by 4.6% over the next year. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.
Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?
Only you know the answers to these questions. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.
“I have observed that not the man who hopes when others despair, but the man who despairs when others hope, is admired by a large class of persons as a sage.” – John Stuart Mill (1840s)
Even back in the mid-1800s, people knew that negative news sells. That is still true today. All forms of media realize that they will get more clicks, likes, and engagement by posting something negative. However, they must realize that negative headlines impact markets.
Just last week, the National Association of Home Builders released a survey showing the following:
“Negative media reports making buyers cautious was a significant problem for 48% of builders in 2018, but 62% expect it to be a problem in 2019.”
Even today, the good news is headlined with a negative spin in order to get attention.
Here are 2 recent examples from mainstream media:
The real story: The headline is accurate – to a point. It is true that the percentage of refinances in which the homeowner received cash at the closing has increased to levels that existed in 2006. However, the actual amount of equity homeowners “cashed-out” compared to a decade ago isn’t close.
The dollar amount last year $63 billion was cashed out. That seems like a really large number until we compare it to 2006 when homeowners cashed-out $321 billion. That is more than five times the current amount.
In 2006, people did use their homes as ATMs. They purchased new cars, boats, and lavish vacations. Today, the cashed-out equity is being used to consolidate debt, as seed capital for a new business, or to help a child with their college tuition.
The real story: The first sentence of the headline is accurate. The second sentence couldn’t be further from the truth. Total consumer debt is the highest it has ever been. That’s because the population continues to grow, and so does the economy (prices and wages).
The important number is how that total debt ranks as % of disposable personal income. That is currently at its lowest ever! People are not “diving deeper and deeper into debt”. The exact opposite is true. They have less debt now than ever before.
If you are thinking about buying or selling a home, it is important that you have a true professional handling your real estate needs. Someone who knows the truth about the current economy and its potential impact on the housing market.
Call me today! 781-626-1110
Perla Walling, Realtor
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