How To Maintain Hardwood Floors

February 18, 2011 By

If you have decided to add hardwoods to your property, you’ve made a wise decision – just keep in mind you’ll have to also plan on maintaining them.Hardwood flooring is created from mature trees, then treated & finished. Maintaining them can be difficult, however, because they can scratch easily and also absorb moisture.

Leaving a puddle of liquid on your hardwoods for any longer than necessary is not a good idea. The cracks between the hardwood can absorb the moisture and swell. Any amount of liquid that happens to be spilled, even in a small area, can still become damaging should it stay there for any lengthy period of time.

If you spill something on your hardwood floors, clean up the fluid immediately. Use a damp mop only when you clean your hardwoods. There are floor cleaners that are specifically formulated for hardwoods that you can use. Whichever route you go, use the minimum necessary to keep your mop damp.

Dents and scratches can occur to hardwoods over time. For some types of flooring, especially softer woods, high heels can leave indentations – you might contemplate taking them off and leaving them at your door to reduce wear. Over time the legs of your furniture can also damage the floor. A smart idea is placing area rugs underneath the furniture in order to protect the floor, or placing felt underneath the furniture legs. You may also want to add area rugs in any areas that are highly traveled in your home.

Some homeowners can appreciate the character that scratches and dents give to their wood floor. If you’re not one of those individuals and you have lots of dents and scratches, then one good option is to get them refinished. If you have your wood floors refinished every decade and stay on top of protecting them, they can stay in great condition throughout your entire lifetime.

About the Author – Josh manages an Austin real estate website, where users can learn about the Austin market, look at current market statistics, and search all active listings, including Rosedale homes for sale.

Filed Under: Seller Advice

Qualities to Look For In a Good Realtor

February 12, 2011 By

Shopping for a new home is a challenge for many people and one that will often lead to them looking for help in finding the best house. That is when a person should know what they need to look for in the Realtor that they may be working with to see if they are going to have their best interest at heart.

A good thing to look for is going to be the level of organization that the Realtor has. If the Realtor is organized you will see that they are going to be able to help you with the needs that you have quickly. However, you should also take this into consideration so you do not have to worry about them losing any of the information that you have provided them.

Another thing to look at is going to be if they are respectful towards you and others. If they are not respectful towards other people then you may not get a good deal. It’s the role of your Realtor to negotiate on your behalf and interact in a professional manner with the other parties that will be a party to your transaction.  If they are not courteous to other industry professionals then they may be problematic.

Something else that you should look at is whether they are going to be loyal to you as a buyer. Many times you will notice that agents have multiple clients that they work with. However, when you have your time set aside with them you should have them concentrate on your needs rather than answering the phone or addressing other people’s needs when they are showing you homes. In addition, be sure that they are not just showing you their listings or listings of their office.

Technologically savvy real estate agents are a huge benefit to buyers. If they cannot use the computer properly then they could easily miss out on some of the new listings that are coming out. It is imperative that your agent continue to streamline properties to you that meet your specific criteria. This process is called prospecting and any good agent ought to know how to do this for you. Without it, you are likely not getting visibility to the properties you want. So make sure that your Realtor demonstrates that technology is key to ensuring that you have the proper information when you look at any of the homes that are available.

You should also take into consideration if they are going to be a good communicator or not. This is going to be important since they are going to be the ones that need to make clear your demands and negotiate on your behalf for the best price and terms. If they cannot communicate properly, then they could easily miss out on some of the information that you are telling them to include. They should be responsive to emails and calls. If their grammar is poor in an email then what does that say about how they are representing you when you’re not looking?

This is a great time to buy. Rates are low and so are home prices in many areas. However, if you do not have the proper help in finding the deals you will miss out. If you know what to look for in the Realtor you work with, though, it will be easy to find the best agent to help you with your needs.

Filed Under: Buyer Advice

Using Real Estate to Build Wealth

February 10, 2011 By

The 20th century was one of great growth in America. Many people came to our great country for the ‘American Dream’. We have liberties like no other country in the world or in history. Many people came to seek out this dream and used homeownership as a sign of their new found independence. Homeownership and having property rights is a wonderful privilege that we as Americans should appreciate.

Over the course of this country’s history many individuals have made a tremendous amount of money through owning land. People have taken different approaches in ownership; raw land, multi-family, spec building, and simply just living in the home with their family.

Regardless of the reason for purchasing, if your parents owned property anywhere in the US fifty years ago the value has likely gone up dramatically. Here are a few reasons why owning real estate is a great strategy to build wealth:

  1. Demand – According to the US Census Bureau, the total US population is expected to reach 392 million people.  This will be an increase of 50% compared with 1990. Think of areas that may attract more people in the future based upon jobs, cost of living, and climate. Remember, 100 years ago there was nobody living in areas like Las Vegas, Los Angeles, and South Florida.
  2. Other People’s Money (OPM) – This is a term that was brought out in recent decades but is a long lived concept. Using other people’s money will help you leverage to own more property or any at all. Buy a home with 20% down, break even most of the way, and in 30 years the property is paid off leaving you with nothing but pure income and equity.
  3. Rates – Rates are at historic lows. Now people have been saying this for years but they really are. Clearly, these low rates will not last forever. Every $100,000 you borrow will cost you only about $500/month on a 30 year fixed with no points.
  4. Inflation hedge – Did you know that a nickel 100 years ago is equivalent to a dollar to day. Over periods of time we have had steady inflation. Real estate is an excellent hedge against inflation. In fact, those that own a lot of real estate actually make a ton of money during inflationary times. Sure, the cost of gas and butter go up but those that have significant real estate holdings build wealth by inflating property values.

Clearly there have been cycles in the past. Property values have plummeted in the past and will certainly go through another cycle of highs and lows. However, owning real estate is a great long-term strategy to build wealth.   If you have good credit and enough for a down payment you ought to consider adding real estate to your investment portfolio. If you have cash, or can get access to cash, and are seeking returns, real estate can offer some very high yields vis-a-vis renting.

Filed Under: Real Estate Investing

Special Offer from Local Boston Author Matthew Martinez

February 7, 2011 By

Perhaps you have noticed over the past several weeks that we’ve partnered with local Boston bestselling author and real estate investor Matthew Martinez to advertise his collection of real estate books, including his latest, How to Make Money in Real Estate in the New Economy.

Martinez contacted us to share a sweetener for the purchase of his bestselling titles, as described below.  This special offer is valid through Sunday, February 13, 2011:

I will give you $350 worth of additional products and services if you order any one of my three books through Amazon this week.  Those bonuses include:

#1 – A detailed worksheet to figure income and expense for qualifying for a mortgage when buying investment property.
– Created by Dale Robyn Siegel, author of The New Rules for Mortgages.

#2 –  Free underwriting of your investment property. A well-known investor and multifamily broker based in Southern California will offer a FREE apartment building evaluation.  You will be put in contact with him to receive a complete written analysis on the value of any apartment building. This offer is limited to the first 100 people.
– By Frank Ponce of Scott Anastasi Realty

#3 – There’s No Free Lunch in Real Estate. The report is a proven program to help you start on the path to building life-changing wealth through real estate. If you had $60,000 to invest, what asset class would provide you with the best return over a 30 year period? The obvious (or soon to be obvious) answer is real estate. The reason is all of the benefits a person gets from owning real estate, including depreciation, appreciation, passive income, and leverage. This Free Report explains this in dollars and cents and gives an easy visual demonstration of why this is so.
– Created by Jon Swire, Author of There’s No Free Lunch In Real Estate

#4 – A discount on the Offer Generator. This program calculates wholesale offers on investment properties. “I think it is the best tool a true investor can own. It creates offers that will cash flow right from the start. I’ve been buying for almost 40 years and still own every property I’ve bought. Over time, the cash flow becomes phenomenal.”
– Created by Mike Summey, author of The Weekend Millionaire’s Secrets to Investing In Real Estate.

#5 – 10 Ways to Buy Low. This report details 10 different ways for investors to buy properties below market.
– Created by Andy Heller, bestselling author of Buy Low, Rent Smart, Sell High! and co-founder of the free real estate networking site www.realtyjoin.com

#6 – 27 Ways To Buy With No Money Down. This report provides no-money-down techniques if you are just starting out; or if you have all your money tied up in other investments; or you want to control as many properties as you can with little or no money. As you are exposed to different investment opportunities,  determine which one of these techniques gives you the option of getting into the deal with no money down.
– Created by Dave Lindahl, founder of RE Mentor and author of Multi-Family Millions: How Anyone Can Reposition Apartments for Big Profits

To take advantage of these bonuses, follow two simple steps:

1. Buy any one of my books through Amazon by clicking on their respective links below:
How to Make Money in Real Estate in the New Economy

2 Years to a Million in Real Estate

Investing in Apartment Buildings: Create a Reliable Stream of Income and Build Long-Term Wealth

2. Send a copy of your order receipt to the following email address: nfo@beaconhillpg.com

I hope you recognize an outstanding return on investment when you see it! Best, Matt.

Filed Under: Real Estate Investing

Protect Your Credit by Freezing It

February 3, 2011 By

In today’s world where you are able to purchase everything from all season radial tires to downloading your favorite groups latest mp3 album, we have grown accustomed to making purchases online without a moment’s thought. And over the last few years this practice of making online purchases has opened up more and more people to identity theft.

Identity theft occurs when someone is able to access another’s credit information, and uses this information to make unauthorized charges using that other person’s credit, without their prior knowledge. This is a crime whose statistics are staggering to say the least as it was reported that more than 10 million Americans were the victims of identity theft between 2008 through 2009. When someone’s identity has been stolen there are many consequences that become attached to this crime which can adversely affect the victim. One way of fighting identity theft is through the process of freezing your credit.

When you are the person who is the victim of identity theft, and you have decided that freezing your credit is your only avenue for recourse, there are a few things that have to happen. First you need to understand what freezing one’s credit actually means. The process of a credit freeze, also known as a “security freeze” involves a person working with all of the recognized credit reporting agencies and having their credit information locked or frozen so that if someone were to try to use your credit, it cannot happen if the action has to be accomplished by it being reported to one of the credit reporting agencies. Once you have decided to go with this course of action, either a password or a pin number will be established and this is for the purpose of your being able to either temporarily lift the freeze or permanently have it removed.

The problem is that this solution can become a double edged sword. On the one hand you have essentially stopped anyone including a credit card company from being able to take a look at your credit history and information. This makes it difficult for a credit card company to issue a credit card in your name, so someone attempting to fraudulently have a credit card issued in your name will not be able to do this, but it also means that while the freeze is active you will not be able to get a credit card either. And for someone who is trying to re-establish their credit history, this makes that a pretty tough thing to do. And another issue arises when your address and or your name needs to be updated. These two things usually happen automatically when either occurs, but with your credit information frozen, you will have to do some extra leg work and do it manually. All three of the reporting credit services, Experian, Equifax and Trans Union have been on board with the practice of credit freezes for several years now. Each of these credit reporting agencies have different fees associated with this service which usually range from $5 to $10 dollars but in a few states can run as high as $20 dollars.

The other thing that freezing your credit does not accomplish is limiting someone from attempting to commit identity fraud by using your already established accounts including any non-credit checking accounts, savings accounts and any established credit card accounts, but if you suspect that someone has or is using your identity and committing identity theft, it is still a prudent move on your part to contact the above mentioned credit reporting agencies and have them apply a credit freeze for you.

As you consider this information from the standpoint of purchasing a home, be aware that lending practices have become more stringent in the past several years, making it more difficult for buyers to secure mortgage financing on a home purchase, making it that much more important to maintain, and even grow, your credit score.

Filed Under: Lending Markets

Getting closer to an era of owner financing?

February 1, 2011 By

With the fallout of the U.S. recession that began at the end of 2007, credit standards have tightened making it more difficult for many home buyers to secure a home loan.  In some cases, borrowers have the income to cover their note and cash for a sizable down payment, but are still unable to secure a loan through conventional means for various reasons.  In these circumstances home buyers must often resort to high interest rate loans, come up with large down payments exceeding 20%, or forgo purchasing a home altogether.   Buyers often tend to give up at this point.  However, there is an additional option that is available to buyers given a willing seller.  This option is owner financing.

In the early 80’s interest rates reached a peak of 18%, making homes in their target price range unaffordable for many buyers due to the high interest payments, which required creative financing options to purchase a home.  Many sellers resorted to offering owner financing at lower interest rates in order to get their home sold.  In this environment owner financing often made sense to both sellers and buyers and as a result, owner financing was a common occurrence.

In today’s market the playing field has changed.  Interest rates are at low levels that have not been seen in decades, housing inventory is sky high, and home values are low.  On the surface this seems like the perfect time to buy a home.  However, the number of qualified buyers is down significantly due to the tightening of credit standards and the overall loss of people’s net worth due to the global economic meltdown.   As a result, many of those who need to sell their home are not able to secure a buyer and many of those who want to buy a home are not able to secure financing.

Although circumstances have changed since the early 80’s, the need of a buyer and seller to come up with creative financing options exists. The combination of continued tight credit standards, low home values, high inventory, and a struggling economy will only exacerbate the need for creative financing in the coming years.

Austin Texas REALTOR® Brian Talley of Regent Property Group LLC was recently faced with a financing challenge while working with a client he was helping find and purchase a home.  Brian explained, “My buyer was a doctor with 20% cash down and income to cover a note for a house they targeted to buy.  They were preapproved to purchase a home but after securing a purchase contract for a home they loved, the bank decided the buyer was too high of a credit risk and rejected the file.  Since the buyer had 20% cash down, we suggested that the buyer and seller consider owner financing.  At first the seller was hesitant to take this path, but they needed to sell so they entertained the option.  The buyer really liked the house and was willing to consider owner financing.  I connected both of them with a local third party Austin attorney and title agent that specializes in owner financing.  He explained the process and risks to the buyer and seller, and both decided that it made sense.”

Brian Talley went on to say, “The buyer offered a slightly higher price than the list price and a 20% down payment for a 2 year balloon loan.  The sellers would net a large amount of cash after paying closing costs to help them find alternative housing in the short term.  Once the buyer refinanced the home within the next two years the seller would receive the balance of their equity from the sale.  They both decided to proceed with the sale via owner financing.  Not only did the seller get the home sold only 7 days after the buyers initial conventional loan was rejected, the seller received a higher price for the house, paid less in closing costs, and got the home sold after sitting on the market for months.  Regarding the seller risks, if the buyer were to default on the loan then the seller would get the house back via foreclosure and the seller would get to keep the 20% down payment on the home.  The seller could then put the house back on the market with the chance of making even more money on another sale.  Meanwhile, the buyer was able to purchase the house they wanted at a fair price and can now take the time to sell an asset to come up with the cash to refinance.  It was a win-win.”

While not all circumstances are right for owner financing, it is a viable option that can be considered in today’s market.  With the prospect of increasing interest rates and a struggling economy in the future, the need for owner financing should only increase.  Unfortunately, many buyers and sellers are not aware of this option or may not understand it.  Simply understanding this option is a good start.  The first step is to connect buyers and sellers with a qualified professional and/or attorney that has experience handling owner financing transactions.  Once the process and risks are understood, buyers and sellers will be prepared to exercise this option if the right circumstances present themselves.

About the Author: Austin Luxury REALTOR® Brian Talley of Regent Property Group LLC, an expert in Lake Austin homes for sale and Austin luxury homes for sale.

Filed Under: Lending Markets

Loan Modifications: An Alternative to Foreclosure

January 28, 2011 By

In March 2009, the federal government introduced the Home Affordable Modification Program (HAMP), which assists homeowners by providing incentives to lenders which are willing to modify the terms of an existing primary or secondary mortgage and allow for lower monthly payments.

Qualifying homeowners whose mortgage lenders agree to participate in the HAMP program can benefit from lower monthly payments that result from a renegotiated lower interest rate as well as a 40 year repayment period.

Eligibility is limited to borrowers who are facing foreclosure on their primary residence, which was financed on or before January 1, 2009 and which has an unpaid principal balance of $729,750. The goal of the modification is to ensure that monthly mortgage payments do not exceed 31% of the borrower’s monthly income, so that any or all of the following steps may be considered when modifying the terms of the loan:

  • Reduction of the interest rate to as little as 2%
  • Extension of the loan term to 40 years
  • Reducing the amount of the principal that must be repaid per month by deferring part of the principal repayment until the loan is paid off – in such cases, interest on the deferred part of the principal can be waived.

Once a homeowner qualifies and the monthly payments are modified, a trial period of three to four months is necessary to ensure that the new monthly payments are indeed kept current. After the successful conclusion of the trial period, the mortgage is permanently modified, and the new monthly payments and terms remain in force until the loan is paid off.

It should be noted that there is no fee to participate in this program, and that the Department of Housing and Urban Development (HUD) provides free loan counseling as a part of the HAMP program, and paying for any type of HAMP related consultation or advice is strongly discouraged. However, the final determination of whether or not a borrower is able to participate rests with the lender, which determines eligibility according to federally issued guidelines and formulas.

Lenders are granted incentives for each HAMP modification that they approve; however, they are under no obligation to approve any application and they do so only in cases where it is clear that the incentives make it worthwhile for them not to proceed with foreclosure. The decision of whether or not to approve a HAMP application takes into account not only the ability of the borrower to make the lowered payments on a regular basis, but also the lender’s own interests concerning the property.

In addition to lender incentives for participating in the program, a lender receives additional incentives for the first three years so long as the borrower makes timely monthly payments. The borrower also receives the same incentives of one thousand dollars per year in monthly installments for every mortgage payment made on time during a given year. Even if the borrower has been late on one or more payments, the incentive payments are made for the months in which the payments were made on time so long as the loan remains in good standing.

Separate programs for secondary mortgages, as well as specific programs for borrowers who become delinquent in their mortgage payments as a result of unemployment, are also available under the HAMP program. While the criteria for qualification are very strictly applied, and the lowered payments may still be too high for some borrowers, the HAMP program offers a viable method of staving off foreclosure for borrowers who are able to qualify and to maintain timely payments under this innovative federally guaranteed mortgage relief program.

Filed Under: Mortgage Information

Is it Time to Refinance?

January 24, 2011 By

The question of when to refinance or even if to refinance has plagued homeowners for years. Millions of people around the country have to take out mortgages on their homes because they are not able to come up with the entire purchase amount for the home that they are buying. A mortgage is a loan, but it’s oftentimes viewed as “good debt” because the loan is on a piece of property that will potentially increase in value over time. For this reason, it is recommended to have a mortgage to help build your financial stability and to establish your credit. Once you have purchased your home and closed on your mortgage you may begin to think about refinancing your home to get a better interest rate. There are a few key points that you should consider when evaluating whether it is the right time to refinance or whether you should wait.

The best time to refinance your home is when you can refinance your mortgage to take advantage of a lower interest rate that will lower your monthly payments. To determine whether it’s a good time to refinance you will need to do a simple calculation to see how long it will take to recoup the expenses that it will cost you to refinance.

Let’s take a very easy example to see if a person would be better served to refinance their mortgage or not. Our example is a mortgage on a home for $100,000 at 6.00% interest. This person has a mortgage for a term of 30 years. The monthly payment for this mortgage would be $600. For our example, let us say that the person has been living in their home for 5 years, so they have 25 years left on their loan, and they are able to qualify for a new lower interest rate of 4.5% if they refinance their mortgage and move it to a new loan company. The biggest question that this person will need to find out is how much it will cost them to refinance. Just like when this person closed on their original loan there are a lot of fees that must be paid to complete a refinance. There might be origination fees, points, appraisal fees, attorney fees, title insurance, or inspections. All of these fees could add up to thousands of dollars. Let’s pretend that this person’s fees would total $1500.

Our next step is to run the numbers. What we find is that when this person does a refinance their monthly payment lowers by about $133. With this lower monthly payment, this person in our example is able to recoup their costs for the refinance in exactly 12 months. If this person intends to stay in their home for longer than 12 months, they will save money by going through the refinance process. Additionally, if this person stays in their home for the remaining life of their loan, they will save over $12,000 in interest because of the lower interest rate.

Rates are at historic lows right now so it would behoove you to run this exact scenario for the current state of your mortgage if you have one to see what rate you might qualify for, and then to see how long it will take you to recoup the cost that you will pay for your refinance. If you plan to stay in your home longer than it would take you to recoup the cost of the refinance, then it is generally a wise decision to go through with the refinance. These steps will help you make the best decision for your situation!

Filed Under: Mortgage Information

Financial District Broadluxe Open House

January 22, 2011 By

There’s currently more than 189 open houses scheduled for Sunday, January 23, 2011 as Bostonians plan to brave the winter elements to preview some of the latest properties to hit the Boston real estate market.  One open house worth checking out on Sunday is a studio loft-style condo at 99-105 Broad Street in Boston’s Financial District.

Broadluxe Financial District Studio

If you’re searching for a first-time homebuyer opportunity, a turnkey pied-à-terre, or a downtown Boston investment property, unit 5F at the 44-unit Broadluxe condominium development should be on your list to see. The approximate 539 square foot studio condo, which features exposed brick and beam, is listed for $309,900.  Broadluxe is a concierge-served building with an excellent downtown location, and units feature extra deeded storage in the basement of the building. Unit 5F will be held open on Sunday, January 23, 2011 from 11:00 AM to 1:00 PM.

Broadluxe Financial District Condos

Broadluxe Loft 5F

Filed Under: Boston Open Houses

Vacation Rentals for the Savvy Investor

January 20, 2011 By

Investors sometimes forget about other options for rental properties.  Most people buy an investment property to rent out yearly. If an investor chooses a home or condominium wisely and manages it as a vacation rental, the return on their investment can far outweigh a typical yearly rental property.  Here are some things to consider when pursuing a vacation rental.

Location – You must first decide on the location and if the city ordinances and condominium or housing associations allow vacation rentals.  One of the most important decisions you will make is the location.  The location should optimally be a resort or vacation destination where you rent the property out year round.  Winter does not always mean you wouldn’t be able to rent it out.  There are several ski resort destinations in the winter that are also golf destinations in the summer.  You want your property to be busy all year, not just in a specific season. Although sometimes you might be able to make enough money during the season that you would be able to slide through the off-season.  I would highly advise you to visit the location you decide in the winter and summer before making a purchase. Since the owner usually wants to reserve the home for their own use a few times a year, it’s important that the homeowner enjoy the area as well. If you’re concerned that you want a high return on your investment, you should look at vacation rental web sites and look at other owner’s property calendars and rates.  Find out if they’re busy or not. You should do all the research up front before you decide if the location is right for a vacation rental and you.

Amenities – After you decide on the location, what should you look for in a vacation rental property? Think of what you would like if you rented out a property with your family on one of your own vacations.  In the warmer regions, a swimming pool is a must and in the winter months a hot tub would be best especially for the smaller homes or condos where the property only sleeps 2-4 people.  If you were vacationing and wanted to go snow skiing, think how nice it would be to come back to your rental and jump into a bubbling hot tub. Likewise, if you were vacationing in a warmer climate you would like a pool to cool off during the warmest months. It would be best if you had both! If you don’t have a swimming pool or hot tub, it doesn’t mean that the property won’t rent out, it just means it might not rent out as much, or at a comparable rent to other nearby properties, since these types of well equipped rental properties go first.  For larger rentals that sleep 6 people and more, not only pools and hot tubs but game rooms with pool tables and video games are very nice. Sometimes during the winter the weather is not desirable to even go out in and if the property has some of these amenities, the guest wouldn’t mind spending the day at the rental.  Upgrade the TVs to flat panels and put TVs in the bedrooms too or at least the master bedroom.  Make sure the beds are large, king size beds are the best. Don’t think of this as a regular rental where you put the minimal amount into it.  The guests are paying as much per night as a hotel or resort most of the time, so you have to make sure they want to come back and the amount they are paying reflects what they’re getting.

Advertising – There are several websites out there advertising vacation rentals, but as always, you get what you pay for.  When anybody looks up anything on one of the search engines, the larger more popular websites come up on page 1.  Those are the ones you want to advertise on or get your management company to advertise on.  Type your city name followed by “Vacation Rental” into Google and see what websites come up on page 1 or 2. Your local management company nor your personal website will more than likely not come up on page 1 or 2.  This is very important that you research where your management company (if you decide to use one) advertises since most will not spend much money to advertise. Someone in Europe will never see that your property is even up for rent if you don’t advertise on the major sites. They will never see your local management company that has their own local website with your property on there. It’s great to create your own website for the property to include your availability calendar, rates, additional pictures and more information, but it should only be as a link from the major vacation rental websites.  I would suggest a website that covers the United States and Canada and one or two additional websites that cover European and Latin American countries including the UK, France, Germany, Spain, etc….Before you signup on any website, logon to their site and see what vacation rentals are being advertised in your city or state. If there are just a few, then the website is probably not worth advertising on.  The most expensive ones are the ones that are worth it and you’re probably going to be spending anywhere from $600-$1,000 per year on the advertising costs depending on the number of countries you advertise in. You should cover at least some European countries and the United States and Canada.

Contracts and Charges – Contracts are very important.  Each of the major websites have contract examples for you to review.  Start with one of them and add your own information according to your location.  If you have an attorney, it would be a good idea for them to review it.  You can put almost anything in a contract including that they have to vacate the property if they disturb the neighbors within a number of hours, no parties (if that is your wish), pet policy, smoking policy, weather issues, cancelation policy, security deposit returns, vacation insurance suggestions.  The contract has to cover more than just the amount of money and dates.  Most vacation rental contracts are from 3-5 pages long.  Security deposits are a must and the same amount should be charged for anybody whether they stay for 2 nights or a month.  Don’t make it too expensive that would scare people away.  Look at the other rentals in the area and see what the norm is in your area for the size of the home and its level of furnishings. Security deposits can be used for not only damages to the property, but policy violations including not picking up after their dog, smoking in the home, etc.

Management –  You can manage the vacation rental yourself if you’re one that answers emails and voicemail quickly.  Remember when someone searches for a vacation rental, they’re excited about going to the location and are sending out numerous requests for quotes for their stay at a number of properties.  If you or your management company decide to answer their email days later, most likely they have already chosen another property.  It’s very important that you answer email from the renter the same day, and it’s best within hours, with a quote of total costs including all security deposits and cleaning fees. No hidden fees. As part of vacation rental management, the owner or management company must make sure that the property is extremely clean and sanitized inside and out.  Pay attention to detail, cleaning windows, baseboards and ceiling fans at least on a rotational basis.  If there are hot tubs and/or pools, these must be clean as well with the water being changed in the hot tub often, most of the time after each guest.  If you’re going to manage it yourself, check up on your cleaning person and also pay them more since you must insist on very detailed cleanings.  The cleaning person must also restock all the paper products, soaps,.. etc.. and a number of loads of laundry so they’re doing more than a regular cleaning person does that might be cleaning your home weekly.  Pay them well and they will want to do the extra detailed cleaning. Most all vacation rentals charge a cleaning fee on top of the rental fees so give that to them, don’t try and make money on the cleaning fees.  Calendars should also be managed and kept up-to-date online so guests can see them.  This probably means management of more than one calendar.  Remember if you’re advertising on a few of the major vacation rental websites, they have calendars on their sites and if you build your own website, then link to one of theirs so you minimize the number of calendars you keep up to date.

Vacation rentals can be very profitable and a great alternative for real estate investors. This opens up a whole new market for realtors once they understand the level of investor they have and if they could buy and operate a successful vacation rental.

About the Author: Eric Miller is a broker associate /owner with Keller Williams Realty in Fort Lauderdale with over 10 years of experience. Eric Miller and Associates is an award winning team of Ft. Lauderdale realtors and can be found online at FortLauderdaleGroup.com, where you can view every Fort Lauderdale condominium listed for sale.

Filed Under: Real Estate Investing
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