Improve Your Rental Returns

 

Once you purchase a property with the intention that it will give you good returns, you need to make sure it pays you to the fullest.
In case of rental properties, you want to earn more but don’t want to be the rude landlord that increases rent every few months.
Below are some of the ethical and effective ways to improve the returned income on your rental property:

Hire a Good Property Manager:
Managing a property, especially multiple properties at the same time can be very time consuming and confusing if you don’t have experience.
It may be hard to find a competitive and experienced property manager but it isn’t impossible. Paying someone to deal with your headaches can release a lot of stress from your life.
An experienced individual in this field will guide you better about how you can make improvement in your relationships with the tenant.

Self-Management:
If you are owning one or two rental properties, managing them might not be a tedious task. You don’t have to spend extra money on a property manager because that would only complicate your relationship with the tenant.
Keep your communication direct and simple with the tenant if you have ample time on your hands. However, only aim for self-management if you have experience in real estate dealings.

Increase/Decrease the Rent:
Increasing rent after a certain period becomes a necessity. Because if you don’t, the tenant might think of you as someone who is very lenient in that aspect.

There are landlords that haven’t increased the rent on their properties for years. You must always keep your rent at the market rate if not above.

Research for market rates and keep the rent increases affordable for the tenant. Refrain from mentioning unrealistic figures when you advertise for your rental property.

Upgrade your property:
Renting out a property does not mean that its affiliation with you has ended. You still have to keep the emotional attachment alive and keep upgrading it after intervals.
Keeping a check on the flooring, paint and ceiling condition are some of the common observations you can do before applying necessary fixes and improvements.
An up to date and well-furnished property will attract more tenants.

Five Steps To Downsize Your Home

Everyone has a different perspective on how their home should shape to be. People in Nanaimo however, are switching towards more compact and simpler homes.

As the birth rates appear to lower in the region, the need for having huge homes also appears to be coming down.

 

Considering the option of scaling down to a smaller place and doing it are two things separated by a huge amount of effort. You must go through a whole process of reallocating your resources and come up with a new lifestyle for a newer, smaller home.

In this post, you’ll find five easy to take approaches for downsizing your home in Nanaimo.

 

  • Start by considering your real and most necessary needs. You can do this by making a list of your daily life priorities and how you view the importance of different parts of your house. Having a spacious living room with multiple rugs on the floor and a formal lounge area may appear to be charming, but how many times do you utilize that space in a day?

 

  • Second, you’ll have to explore your wardrobe like you never have. Make sure you dig into each and every cabinet and take out everything you find. Collect every piece of clothing that you have in the house and gather it in one place. Take a hard look at each of the clothing items and only keep what’s necessary. Having excessive clothes requires more storage space. The clothes that don’t make into your wardrobe shall be donated.

 

  • Thirdly, categorize your furniture into multiple categories ranging from most important to “I have no idea what this is doing in my house”. Furniture takes up the most amount of space in a house. Therefore, go through all the sofas, rugs, decoration pieces and collective items that take up unnecessary space. Imagine how all the furniture will fit into your new place as you shift into a smaller home. This shall help you in making a better decision on which furniture to keep.

 

  • Afterwards, take a look at all the stuff you have after inventory downsizing. Now reconsider the amount of space you’ll require to fit all of your stuff into comfortably. This will give you an idea about the dimension of housing that you should search for.

 

  • Finally, start the search process. Decide on a neighborhood where you would like to live in your smaller, simpler home. Also, because you’ll be looking for a smaller home this time, you’ll have the liberty of looking for homes in somewhat posh areas. This shall help you towards living an improved lifestyle.

Market Value vs Assessed Value

Houses and properties do not have their prices written on the doorstep. Real estate properties are objects whose value keeps on varying that makes property trading more thrilling.

It may be frustrating as well if the prices don’t happen to be in your favor.

Whenever you head to the real estate market either to sell or to make a purchase, there will be two different values or prices conveyed to you. These two are known as assessed value and market value of that specific property.

The two terms may appear to be similar but the numbers can differ from each other by a fair margin. So what’s the difference?

 

What is Market value?

Our real estate experts say that market value can be defined in technical terms as the most obvious price that a property can get you if sold in open market.

In simple terms, its the price that both the buyer and seller can agree upon if a deal has to be made for that property.

Real estate agents possess expertise in pointing towards the market value of a property and justifying it by using certain characteristics related to that property as a weapon. These characteristics include:

  • External Appearance: They’ll emphasize on how good the outer paint, size of the garden and view in the street are, making the deal more catchy for you.
  • Internal Appearance: Agents often use the number of rooms and internal spacing as a plus point. The latest heating systems may also be part of the deal.
  • Demand: An agent would tell you that this sort of home is in high demand these days.

What is Assessed value?

When trying to understand the assessed valued of a property, you must know who is doing the assessing and why the property is being assessed.

Before we get into the definition, you need to know who assesses values of properties.

Municipal authorities in most regions hire an assessor to create a set of values for different kind of homes in that region to imply taxes on these houses.

The assessor carries out the task by observing the surroundings for similar kind of homes. An observation about values of similar properties is made to make a rough assumption about how much can the property be sold for.

Other factors that affect the assessed value include any improvements occurring in the area, any income that can be made out of the property in the future and how much would it cost to renovate the property in case of an emergency.