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Welcome to the AAOA Forum, where we discuss the the topics our members want to hear and want to talk about. We like to take an active roll in the online community to help our members learn and help educate landlords new and old. We encourage you to participate and join in our discussions. Thanks.
`5` is Magic Number in Rent vs. Buy
by Ilyce Glink, Inman News
Thanks to declining mortgage interest rates and housing values, these days it’s a lot less expensive to buy a home.
On the other hand, it’s also less expensive to rent.
Sometimes deciding whether to rent or buy is easy. If you’re not planning to live in the same neighborhood, city or state for more than five years, renting becomes the more economical option.
Read the rest of this entry »
Posted by Kim Ezzell on 04.30.2009. 1 Comment »
Filed under: AAOA Forum, Financing
Avoiding a Common Landlord Pitfall
Some landlords see the $$$ and not the $$$$$$$….they chase the few bucks they will lose if they do not rent their property QUICKLY and have to come out of their pocket for a mortgage payment and they do NOT see the many bucks they will lose if they take the wrong/unscreened residents who stop paying their rent, lose their jobs, or as is the more common case, vacate the property with no notice.Landlords who rely on real estate agents to locate and screen residents fare little better. Most real estate offices no longer have access to credit screening services as a result of their E&O insurance requirements and mandatory site inspections by the screening service. As support staff has been reduced in many offices, these services have been discontinued and the agents may not know that they no longer have access to these basic tenant screening resources.
Likewise, they rarely have the proper forms for the leasing service. The lead based paint disclosure for SALES is NOT the same lead based paint disclosure for RENTALS….agents do not know this. In many states, there are mold disclosure requirements for one or both activities.
Tenant move-in inspections may be mandated by state landlord-tenant laws and if they are not followed, claims against the tenants’ security deposit may well be forgiven at the end of the lease term.
A month of paying a mortgage versus 3 or 4 months of vacancy in mid-winter or a long drawn-out eviction is not worth the risk of not doing it RIGHT!!
See our feature, The Perfect Scenario or Landlord Nightmare?
Let us know what you think by commenting below. For questions about our blog, contact our editor at kim@joinaaoa.org.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Posted by Kim Ezzell on 04.30.2009. 2 Comments »
Filed under: AAOA Forum
Don`t Miss These Valuable Energy Tax Credits
In an effort to reward homeowners for energy efficient upgrades to their homes, the recent Stimulus Bills included some very valuable additional tax credits!Water Heater, Boiler, or A/C new Installations
A tankless water heater installation with a 90% + efficiency gets you a 30% federal tax credit up to $1,500.00. This may also qualify for a gas utility rebate of $300.00. Total job deduction $1,800.00.
Newly Installed Energy Efficient Certified Windows & Doors
Qualifying Windows and Doors purchased between February 17, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost up to a maximum credit of $1,500.
…I myself took advantage of this one and received a certified letter from the Window and Door company that I can submit to my accountant at tax time, and bingo! … $1,500 cash savings right back in my wallet!
These installations must be “placed in service” from January 1, 2009 through December 31, 2010, and must be for taxpayer’s principal residence, but if you were ever considering upgrading your home’s utilities or windows and doors for better Energy Efficiency, NOW is the time to do it, as you will get a portion of your cost paid for you in these specified cases.
Sheldon Neal is a Realtor(R) with RE/MAX REAL ESTATE LTD, serving buyers and sellers in Bergen County, NJ. You can contact Sheldon for more info on these tax credits, or any other real estate questions at 201-481-2891, or email at SheldonNeal@remax.net.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Posted by Kim Ezzell on 04.30.2009. 1 Comment »
Filed under: AAOA Forum, Going Green
Do`s and Don`ts of Deck Cleaning
by Paul Bianchina
Some common strategies can do more harm than good
A wood deck represents a sizable investment, and keeping it well maintained is an important part of every homeowner’s to-do list.
A clean deck not only helps showcase that backyard centerpiece, it prepares the wood to receive the surface coatings that are necessary to help your deck fight off the elements.
First, a couple of cleaning “don’ts”:
Posted by Kim Ezzell on 04.27.2009. 2 Comments »
Filed under: AAOA Forum
Short Sale`s Dreaded Tax Bite
by Tara-Nicholle Nelson, Inman News
Q: I’m employed in the real estate industry, which means I’m no longer employed. I would love to keep my house, but have no income right now and I have not made a mortgage payment in five months.
I understand that my lender will not likely modify my loan until I find another job.
Based on that, I would like to put my house up for sale and do a short sale, but my lender said they will issue me a 1099 and that the mortgage debt they write off is taxable income to me!
I can’t afford to pay taxes on hundreds of thousands of dollars. And what happens to all the back property taxes I owe if I do a short sale? Do I have to pay them? Read the rest of this entry »
Posted by Kim Ezzell on 04.27.2009. 1 Comment »
Filed under: AAOA Forum, Financing
2010: The Year of No Estate Tax?
by Ilyce Glink, Inman News
Inherit property next year and save?
Several weeks ago, a reader read what seemed like conflicting advice in the same real estate section. In an answer to a reader, I wrote that it’s generally better to inherit property, because you get a step-up in the cost basis.
In other words, you inherit the property at the current market value on the day of the owner’s death.
So, if you turn around and sell it for the price that is the current market value, you wouldn’t owe any taxes on the property.
Another columnist wrote that the stepped-up-basis tax law will expire in 2010, and that you would inherit property at the owner’s current basis. If you sold the property, you would then pay capital gains tax on the difference between the decedent’s cost basis and the current market value.
Confused?
According to Chet Burgess, an enrolled agent who owns Brookwood Tax Service in Atlanta, as the law currently stands, the basis step-up would expire with the estate tax, which is also set to expire in 2010. However, President Obama has already made it clear he will not allow the estate tax to expire, and is proposing to hold the estate tax exemption and tax rates at or close to their current amounts. If he succeeds in that effort, he generally is expected to maintain the basis step-up.
President Obama has indicated that he would support freezing the current estate tax exemption at $3.5 million per person, or $7 million for a married couple. Next year, the estate tax exemption is scheduled to fall to zero, meaning you can inherit any amount estate tax-free. The exemption is currently expected to resume at $1 million in 2011.
Burgess said that since an extension of the current estate tax laws has not yet been brought up for a vote in either house, figuring out what will happent would be pure speculation at this point.
To contact the writer, click the byline at the top of the story Copyright 2009 Ilyce R. Glink.
See Ilyce Glink’s feature, 10 Years to Retire? Go Refi.
Share your insights by commenting below. For questions about our blog, contact our editor at kim@joinaaoa.org.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Posted by Kim Ezzell on 04.27.2009. 2 Comments »
Filed under: AAOA Forum, Financing
Landlord Quick Tip
Quick Tip #2: Friends Don’t Let Friends Rent Their Units
Accepting referrals from friends or family can spell disaster for a landlord.
Why? Because, often the landlord is not as diligent when they screen the referral.
“A rental prospect who is a friend of a friend?! PERFECT! until the friend/tenant loses their job and your friend is not returning your phone calls and neither is your tenant.”
“Renting to friends, family and friends of family rarely works successfully. Finding good residents should be done the old fashioned way – one or two applications at a time!”
This week’s tip is from property manager Wallace Gibson, CPM.
Do you have a tip to share? Email it to our editor at kim@joinaaoa.org
Miss last week’s tip? See Landlord Quick Tips.
See our feature, Is Your Rental Application Falling Short?
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.To subscribe to our blog, click here.
Posted by Kim Ezzell on 04.27.2009. 2 Comments »
Filed under: AAOA Forum
The Perfect Scenario or a Rental Nightmare?
by Wallace Gibson, CPM
In the TLC show “Say YES to the Dress!” the brides have an idea what they want their bridal dress to look like and they “will know it when they see it!”Unfortunately, many Reluctant Landlords feel the same way: a corporate rental — GREAT!! Rent checks come in like clockwork. A part-time resident, only in the area a few days out of the month — WONDERFUL!!! Less wear and tear.
Corporate rentals, unless there is a personal guarantee by the actual resident occupant, can be a nightmare. If the tenant is fired or the corporation goes into bankruptcy, if there is not sufficient corporate documentation as to why the employee’s rent was being paid, the trustee in bankruptcy can actually call BACK the lease payments.
Additionally, residents who do not LIVE at the property FULL TIME can give the landlord a false sense of security. In a power outage, heat can go off and pipes can freeze and no one knows until it is way too late. Routine items are not handled and likewise maintenance ends up being delayed or not at all.
See our feature, 12 Tips for Retaining Tenants.
Let us know what you think by commenting below. For questions about our blog, contact our editor at kim@joinaaoa.org.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Posted by Kim Ezzell on 04.23.2009. 1 Comment »
Filed under: AAOA Forum
8 Things to Do Before Refinaning
by Ilyce Glink, Inman News
With 30-year interest rates well below 5 percent, and 15-year interest rates between 4 percent and 4.5 percent, it’s time to start seriously thinking about refinancing your mortgage.
But before you high-tail it to the nearest mortgage lender and fill out a mortgage application, there are eight things you should do:
Posted by Kim Ezzell on 04.23.2009. CLICK to Leave a Comment »
Filed under: AAOA Forum, Financing
The Top 10 Commercial, Multifamily Lenders
Bank of America and Wells Fargo were the top commercial/multifamily originators in 2008, according to a set of listings released today by the Mortgage Bankers Association (MBA).
Eight different companies topped the 11 lists reporting originations by investor groups:
• Capmark Financial Group as the top originator for Freddie Mac, FHA/Ginnie Mae, and specialty finance;
• Bank of America for commercial banks/savings institutions and conduits;
• MetLife Real Estate Investments for life insurance companies;
• PNC Real Estate for Fannie Mae;
• KeyBank Real Estate Capital for REITS, mortgage REITS, investment funds;
• TIAA-CREF for pension funds;
• GE Real Estate for credit companies; and
• Wells Fargo for other investors.
By dollar volume, the top five intermediaries in 2008 were Holliday Fenoglio Fowler, L.P., CBRE | Melody, Wells Fargo, NorthMarq Capital, and PNC Real Estate. The top five lenders were Bank of America, Wells Fargo, Wachovia, PNC Real Estate, and GE Real Estate.
The MBA study is the only one of its kind to present a comprehensive set of listings of commercial/multifamily mortgage originators and the different roles they play. The MBA report, Commercial Real Estate/Multifamily Finance Firms – Annual Origination Volumes, presents origination volumes in more than 140 categories, including by role, by investor group, by property type, by financing structure type, and by the location of the originating office.
See our feature, 7 Key Reasons to Invest in Apartments.
American Apartment Owners Association offers discounts for landlords on products and services related to your rental investment, including real estate forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org.
To subscribe to our blog, click here.
Posted by Kim Ezzell on 04.23.2009. 1 Comment »
Filed under: AAOA Forum, Financing