SIMPLE STEPS FOR AVOIDING RENTAL PROPERTY HASSLES
If you find your Las Vegas rental property without a tenant this fall, it may not take long before you’re tempted to take the first applicant who shows up. Sometimes it doesn’t take much longer to remember why that can be a costly mistake! Hastily selected tenants can transform your Las Vegas rental property from a dependable revenue-producer into a sputtering headache-producer. Troublesome tenants are hard to manage, can cause serious damage to your Las Vegas rental—and can be infuriatingly difficult to remove. Of course, the best solution is to avoid renting to trouble-making tenants in the first place. Whenever your rental property falls vacant, you’ll be much more likely to sign a quality tenant if you follow the basic self-protection procedures: 1. Be Wary of Cash Buyers A tenant who’s willing to pay cash upfront for months in advance might seem like a walking windfall—after all, doesn’t it seem as if the offer would eliminate a degree of risk? But sometimes cash shouldn’t be king. Experience shows that there is, usually, reason an applicant wants to rent on such seemingly advantageous terms. It may be because they want to distract from a poor rental or credit history, hoping that the cash offer will deter the landlord from asking too many awkward questions. Less likely (but possible) could be that they want to use the property for some illicit purpose—such as storing or manufacturing drugs. 2. Check Employment Records On your tenant application form, ask for an employer’s name and a point of contact at the workplace. Few employers object, so applicants who are reluctant to provide this information (or who do not have regular employment) will be flashing caution lights. Don’t neglect to follow up on the information: a short, courteous phone call will confirm what the application form says. 3. Credit Record Checks A credit check will help you to sort ideal tenants from those more likely to have trouble paying on time. A credit check is inexpensive, especially measured against the cost and hassle of reluctant payers. Credit record checks are available through a number of online services (they, usually, require the applicant’s social security number). But it’s also important to realize that any kind of reference check is only useful if you are researching the right person! Make sure to properly confirm the identity of the person applying for your rental property. Check identities using a government-issued identity document, with a photograph, and social security number. Trouble tenants can, at least in the short term, waste valuable time and effort. You can avoid the whole problem by enlisting a qualified Las Vegas property management firm, but if you choose to handle the details yourself, taking these simple precautions will prove well worthwhile. If you are already a local landlord, or are in the market for a rental property in {Your Region}, there are many good prospective investments from which to choose. Give me a call to take a look!
ARE DRONES THE NEXT BIG THING IN LAS VEGAS REAL ESTATE
When you hear the word “drone,” you’re more likely to think military target than local residential listing. But drones could be the Next Big Thing in real estate photography—that is if they don’t run afoul of the law. Technically known as Unmanned Aerial Vehicles (UAVs), drones have swooped and dived into the public consciousness in a big way within the past year. In addition to the amusing tiny model helicopters that have been found under many a Christmas tree over the few holiday seasons, their more ambitious cousins, remote-controlled, lightweight flying vehicles have begun to be used by firefighters, filmmakers, and the military. And as the technology becomes less and less expensive, everyone expects to see drones in more applications than you could imagine—for instance, CBS’s 60 Minutes report that previewed Amazon.com’s plans to test online purchase deliveries via driveway drop-offs by creepy four-rotor drones. What’s the connection with Las Vegas real estate? Just ask commercial photographers, who think the lightweight vehicles would be their key to the perfect high production value property shots. Think of it: instead of chartering an expensive helicopter flight to photograph the site from the air, a real estate photographer could use a much cheaper and more easily controlled lightweight drone. The result? Dramatic, breath-taking shots that used to be only rarely seen in listing video tours (and then, only in million-dollar listings). With more than 90% of prospective home buyers now using the Internet, those kinds of shots could make the difference between a stagnant listing and a quick turnaround. But don’t hold your breath for the rise of drone-based real estate photography—at least not yet. The Federal Aviation Administration requires a permit for each flight whose goal is the “commercial use of airspace”—even by small devices like photography drones. As a consequence, the National Association of REALTORS® is advising real estate pros not to use drone-based photography until next year, when new FAA guidelines will be announced. Until then, a special FAA waiver has to be obtained for each flight (and you can bet a local property would have already been sold long before that came to pass!) While we may heave a sigh over the exciting drone videos that might have been, the real possibility that drones will become a factor in {Your Region}’s residential real estate reinforces the importance of having your home sale-ready from all angles. Imagine the fallout if drone photos revealed a leaky roof—or an unkempt backyard! Bottom line: it’s always going to remain vital to prep a property to shine in more than just the “curb appeal” photo. That planning can start with a call to my office for a no-obligation review of how to set into motion a proven marketing plan that gets your Las Vegas home sold!
IS A LAS VEGAS HOMEOWNERS ASSOCIATION FRIEND OR FOE
Homeowners Associations (HOAs) are not a new idea. They were first formed in nineteenth century America, as the Industrial Revolution spurred migration from rural to urban living. Owning real estate has always been considered a big deal, so it’s right to think of Homeowners Associations as exclusive clubs. Sort of. Las Vegas Homeowners Associations are open to membership only for those who own a home in a Las Vegas HOA development—definitely an exclusive group! (The reason for the ‘sort of’ is because of the other qualification: homeowners are required to join). Exclusive membership has its advantages, to be sure, and also some disadvantages. For instance, members have to pay fees and dues for the privilege of belonging. And, like membership in any legendarily snooty club, members have to behave themselves. Unlike most of those, the rules of the HOA are legally binding for all residents in the development. Homeowners Association covenants can specify things like exterior paint colors and what kinds, if any, of fences and/or hedges an owner can install. They also may specify whether things like swing sets, or basketball hoops are allowed. There will almost certainly be vague language in any Las Vegas Homeowners Association covenant to require things like “reasonable” standards of repair for the property. In general, the whole idea can be a good thing, because when working as intended, it protects everybody’s property values. Indeed, a March study by the Association Management Group showed that 70% of HOA residents are happy with their HOA experience. However, if you are ever in the mood for some HOA horror stories, the web is where you’ll find some really juicy ones. For example, there’s the one about the 77-year-old Arizona condo owner who was repeatedly fined for allowing her dog to walk through the lobby. The HOA rules specified that dogs must be carried through the lobby. Then there was the case of a California widower whose home was seized by the HOA because he owed $600 in dues and fees. It was sold at auction to a third party for a mere $2,000 (okay—even the Internet admits that he eventually did reclaim his house). So, on balance, what’s a buyer to do? Below are a few ways to approach the decision before you buy a house in an HOA development (if I’m your REALTOR®, I’ll be able to help with these): • The easy part: get a copy of the covenants and bylaws. The hard part: read them. Make a note of the restrictions, and pay close attention to the sanctions the HOA can invoke. • Review the details of recent actions and pending changes to the rules (they’re probably posted on the HOA website). Request copies of any past and present actions or notices filed by the HOA against the selling homeowner. • See if you can talk to Homeowners Association board members to get a feel for whether the rules are strictly enforced, or a more laissez faire regime is in place. There aren’t any guarantees, though—board membership and attitudes can change. If you do decide to buy into an HOA development, remember the best defense is a good offense. Get involved in the HOA by attending meetings and keeping up-to-date with proposed changes to the covenants.
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