Running a rental business is about more than just collecting rent; it’s managing your properties carefully and professionally. Many investors, especially new ones, often cut corners to save time or money. However, making informed decisions when setting up your business can help everything run smoothly and avoid expensive problems down the line. Here, I’ll discuss how to structure your rental business, manage finances, comply with legal requirements, and handle property management effectively. I’...
Sep 17, 2024•14 min•Ep. 1434
The streets of San Francisco may be known for Dirty Harry, movie car chases, and the birth of the hippie movement, but they will no longer be associated with rental price-setting software. That’s because the Golden Gate City is in line to be the first in the U.S. to ban the tech tools allegedly associated with landlord price fixing. The San Francisco Board of Supervisors unanimously approved an ordinance introduced by its supervisor and mayoral hopeful Aaron Peskin that bans landlords from using...
Sep 16, 2024•12 min•Ep. 1433
You’ve found what appears to be a great property, and you just received the inspection report. It listed many defects, most of which are typical, and the cost to correct them is well-defined. However, a few items are disconcerting because the report listed symptoms rather than specific defects, such as mold, Kitec plumbing, China drywall, aluminum wiring, roof leaks, settlement, etc. These ill-defined problems are red flags because remediating them is not “fixed.” For example, suppose mold was d...
Sep 15, 2024•10 min•Ep. 1432
Trying to predict the next hot real estate market is like catching an eel with grease on your hands: The moment you think you’ve got a handle on the next hot spot, everyone else has the same idea. Inventory shrinks while prices shoot up, and what once looked good suddenly cools. However, if you’re prepared to be specific in your search, you can pinpoint the next great investment opportunity for different market segments. Keep reading the article here: https://www.biggerpockets.com/blog/the-next-...
Sep 14, 2024•21 min•Ep. 1431
For first-time and aspiring house hackers, avoiding mistakes early in your investing career is crucial in speeding up your momentum when building your foundation. Right now, competition is high, and investors are finding themselves in markets where great deals are becoming rare. It could not be a more important time to sharpen your skills, round out your education on your strategy, and learn from those who have made mistakes so you avoid starting your investment journey on the wrong foot. Keep r...
Sep 13, 2024•18 min•Ep. 1430
With the housing crisis being one of the major issues Americans face today, politicians have recently offered various ideas on how to combat it, from President Biden’s rent hike cap to the latest bill from Massachusetts Senator Elizabeth Warren, who has proposed investing $500 billion in an attempt to make housing more affordable over the next decade. Keep reading the article here: https://www.biggerpockets.com/blog/senator-warrens-new-bill-targets-private-equity-and-looks-to-incentivize-afforda...
Sep 12, 2024•13 min•Ep. 1429
If you’re looking to diversify your investment portfolio in 2024, investing in ATMs should definitely be on your radar. We all know that economic conditions for real estate investors have gotten tougher in the last few years. Tighter margins, smaller ROIs, and fewer investment opportunities are a reality. Not so in the ATM industry. ATMs are a remarkably resilient, though still often overlooked, source of long-term, steady cash flow, with minimal active involvement, minimal risk, and a ton of op...
Sep 11, 2024•18 min•Ep. 1428
When you’re competing for ranking on VRBO or Airbnb, playing by the rules of the algorithm is everything. Take too long to get back to a tenant question, and watch your placement slide. But how important is it to update your short-term rental’s headline? The truth is, the best intel we have is not directly from the listing sites. Just like with Google ranking, these sites don’t want you to “game” the algorithm by telling you exactly how it works. Keep reading the article here: https://www.bigger...
Sep 10, 2024•8 min•Ep. 1427
The New York real estate industry is fuming. New legislation might force landlords to pay the hefty broker’s fees that tenants have traditionally paid to real estate companies. Should the law pass, many landlords might skip brokerages to preserve their cash flow. They won’t get much sympathy from tenants, though. With soaring New York rental prices and the city caught in an affordability crisis, renters are struggling to pay the sky-high fees brokers charge—usually 10% to 15% of the annual rent,...
Sep 09, 2024•16 min•Ep. 1426
On June 11, the city of San Jose became the first municipality to update its zoning code in accordance withCalifornia Assembly Bill 1033, which went into effect at the beginning of the year. The law allows for local ordinances that permit homeowners to sell accessory dwelling units (ADUs) as condominiums, but cities must opt in. "Keep reading the article here: https://www.biggerpockets.com/blog/is-californias-adu-law-the-beginning-of-a-new-era-in-housing Become a member of the BiggerPockets comm...
Sep 08, 2024•16 min•Ep. 1425
It’s one thing to attract a tenant to your rental property. It’s another thing entirely to retain them. Here, we provide guidance on how to retain tenants and the financial results of doing so. "Keep reading the article here: https://www.biggerpockets.com/blog/how-to-retain-tenants Become a member of the BiggerPockets community of real estate investors - https://www.biggerpockets.com" Learn more about your ad choices. Visit megaphone.fm/adchoices
Sep 07, 2024•12 min•Ep. 1424
Most people drift along life’s current. They work 9-5 jobs, live within 30 miles of where they grew up, and don’t change careers often, if ever. There’s nothing inherently wrong with any of that—if you’ve considered all your options and then intentionally chose that lifestyle. The problem, of course, is that most people living that lifestyle just fell into it. "Keep reading the article here: https://www.biggerpockets.com/blog/the-freedoms-that-make-the-perfect-life Become a member of the BiggerP...
Sep 06, 2024•13 min•Ep. 1423
Landlords can expect two things to be true: The profit potential is exceptional, and tenants will have complaints. Homeownership comes with natural ups and downs, with the ongoing hassle of maintenance issues, frustrating neighbors, and even occasional financial hardship. As a landlord, you get to handle these issues as they arise for your tenants, so knowing how to handle tenant complaints and concerns is essential. "Keep reading the article here: https://www.biggerpockets.com/blog/how-to-deal-...
Sep 05, 2024•15 min•Ep. 1422
As you start to explore real estate investing, one of the first things you’ll hear about is the importance of finding deals. It’s a topic that dominates articles, BiggerPockets forum posts, YouTube videos, and conversations within the industry—and for good reason. Finding deals is the lifeblood of real estate investing. Here are four key reasons why a successful real estate investor focuses so much on finding the deal. Learn more about your ad choices. Visit megaphone.fm/adchoices
Sep 04, 2024•9 min•Ep. 1421
The Fair Housing Act (FHA) ensures any person can buy or rent a house or apartment wherever they want regardless of their race, ethnicity, gender, religious preference, disability, family status, or national origin. In 2015, the United States added discrimination based on sexual orientation or gender identity to the list of protected classes. As a landlord, you should be familiar with the FHA and what it covers. Both federal and local governments have rules regarding fair housing, and you need t...
Sep 03, 2024•21 min•Ep. 1420
Not all tenants work out the way we hope. Maybe a renter is habitually late paying rent, disruptive to other tenants, or engages in illegal activity. Whatever the reason, you may be wondering: “Can a landlord break a lease?” The short answer is—it depends. Before you break a lease agreement, make sure you have a valid reason and that you follow all the legal requirements. Learn more about your ad choices. Visit megaphone.fm/adchoices
Sep 02, 2024•17 min•Ep. 1419
For landlords feeling the pinch of high interest rates or would-be investors wondering how they can cash flow, there’s some good news: Rents will continue to rise. However, for rent-burdened tenants, the outlook is not so rosy. “We’re gonna build 600,000 apartments this year,” Barry Sternlicht, CEO of Starwood Capital, an investment firm specializing in hotels and market-rate multifamily housing, said recently on CNBC about America’s construction of apartments, “and 400,000 the year after and 23...
Sep 01, 2024•15 min•Ep. 1417
Real estate is typically an excellent choice for long-term investment. However, as with any investment, there are potential pitfalls to consider. One is ensuring you make adequate plans to handle the complex web of property tax regulations. The tips we’ll share here will help you make smarter decisions about your property tax strategies to maximize your returns. Learn more about your ad choices. Visit megaphone.fm/adchoices
Aug 31, 2024•12 min•Ep. 1417
The question is asked all the time: How can I estimate average rehab costs? Well, there is no average rehab cost because there is no average rehab. Some properties will need major structural modifications; others just a lipstick approach. Some may have a recently remodeled kitchen, and others may have a 1950s galley kitchen. But since this is such a popular topic, let’s see if we can try to make it at least (a little) feasible for a newbie to the construction world. Learn more about your ad choi...
Aug 30, 2024•12 min•Ep. 1416
I think we can all agree that the economic outlook is uncertain. You can pick almost any economic indicator (inflation, labor market, real GDP, etc.), and find conflicting and confusing signals. As investors, this can be daunting. How can we make wise investing decisions when the economic climate is so murky? Here are four tips on how you can continue to invest successfully in an uncertain economy. Learn more about your ad choices. Visit megaphone.fm/adchoices
Aug 29, 2024•13 min•Ep. 1415
Morgan Stanley real estate analyst Laurel Durkay appeared on CNBC recently to deliver the financial behemoth’s latest housing outlook. It was great news for property owners and a call to action for potential buyers sitting on the fence, waiting for rates to fall. Such is the shortage of inventory; in the next decade, 2 million homes will need to be built to satisfy demand. This means the rental market is set to soar. Learn more about your ad choices. Visit megaphone.fm/adchoices
Aug 28, 2024•16 min•Ep. 1414
You put a lot of time, money, and effort into finding the right tenant. From writing a rental property listing to showing the property, the process can require a lot from you. But that’s OK. The end result is well worth it. With a tenant lined up and a move-in date scheduled, it’s time to take the next step: prepping the property. This move-in checklist for landlords will keep you on track from start to finish. Learn more about your ad choices. Visit megaphone.fm/adchoices
Aug 27, 2024•13 min•Ep. 1413
A lease is a binding legal contract that includes protections for both the landlord and tenant. Just as you are required to uphold your end of the agreement as the landlord, tenants also have certain obligations they are required to uphold. You have discretion in determining what to do when a tenant violates the lease. It doesn’t always have to lead to an eviction. It depends on the severity of the violation and other factors, like a medical emergency, temporary job loss, or something else. Lear...
Aug 26, 2024•18 min•Ep. 1411
HomeRise, a nonprofit housing developer that has received more than $200 million in grants and loans from the city of San Francisco, declares on its website that its mission is “to help people experiencing homelessness secure housing and become self-sufficient.” However, in April, an independent audit revealed questionable spending of the organization’s funds. While the scope of inappropriate spending was not clear due to incomplete record-keeping, the audit found that most of the grant money we...
Aug 25, 2024•20 min•Ep. 1411
As of June 28, Freddie Mac CFO Christian Lown will resign from the government-sponsored enterprise (GSE) mortgage provider to join CoStar, the behemoth real estate listing and data and analytics company valued at around $30 billion. Usually, when someone leaves a government job for the private sector, there’s a tacit understanding that the new position comes with less public scrutiny and more—much more—money. There’s little reason to doubt that is the case here. Learn more about your ad choices....
Aug 24, 2024•12 min•Ep. 1410
Maybe you’re looking to diversify your investment portfolio, or maybe you’ve done your research into real estate investing and just realized you don’t have the time and energy required. Real estate investing is almost nevertruly passive, and it is not immune to problems like reduced cash flow during between-tenant periods. Whether you are a seasoned real estate investor looking for additional revenue streams or you’re looking for opportunities that are less hands-on but still lucrative, these ar...
Aug 23, 2024•17 min•Ep. 1409
Raise your hand if you got burned by real estate in 2008. You can’t see it, but I’m raising my hands, feet, and even the hairs on my neck. United Wholesale Mortgage (UWM) recently made news by launching a 0%-down mortgage program. And it reminds many real estate analysts of the subprime mortgage frenzy that helped fuel the market collapse back in 2008. So, as you scope out the new program, what’s the potential impact on real estate investors? Learn more about your ad choices. Visit megaphone.fm/...
Aug 22, 2024•13 min•Ep. 1408
Over the past 16 years, I’ve worked with nearly 200 first-time investors. From my experience, until they go through our training, most are completely focused on ROI and cash flow. Here are some key points new investors must keep in mind: You’re not buying real estate—you’re buying a lifelong income stream. Vacancy costs can be a killer, so estimating them is critical. ROI and cash flow only predict a property’s performance under ideal conditions on the first day of a lifetime hold. They tell not...
Aug 21, 2024•15 min•Ep. 1407
Last week, the federal government announced plans to block medical debt from credit reports, which are used to evaluate a borrower’s financial fitness for large-ticket items, specifically mortgages and car loans. This would make it easier for folks to acquire more debt and not be “judged” for it. All things being equal, it’s not a good idea. Let’s ignore for now whether this is right or wrong and try to exclude all political thoughts. Let’s just look at the facts. Learn more about your ad choice...
Aug 20, 2024•14 min•Ep. 1406
A housing cartel? No, not in a lawless narco-state, but in major American cities, where corporate landlords have been accused of conspiring with Texas-based real estate software company RealPage to drive up rents. Most recently, Atlanta-based Cortland Management, one of America’s largest landlords, was served a warrant by the FBI concerning an ongoing antitrust investigation into multifamily housing price-fixing by the Department of Justice (DOJ). According to Cortland Management’s website, the ...
Aug 19, 2024•15 min•Ep. 1404
