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Do I really NEED a property management company?

Do I really NEED a property management company?

Regardless that I am a professional property manager and real estate agent in multiple states, I wanted to take an in-depth look and actually answer your question, do I really NEED a property management company?

You can either take the advice from me, or numerous other clients who signed up with me after having a round or two at this themselves.  The number one reason that you’re going to hire me, is because you aren’t interested in spending any more time on your investment property.  This is supposed to be passive income, remember?  We will save you money on top of saving you time through a dense, third party contractor list and by not nickel and diming our clients at every opportunity.  We will complete all of the leg work on your behalf, from the beginning with marketing, be there to handle all of the legalities that will come up throughout the course of a year to year tenancy.  We will maximize your monthly income, with goals of renting your property for maximum market allowance, to the most qualified tenants of your choosing.  Finally, we will manage ALL tenant day to day activities, including text messages, emails, and phone call; as well as annual inspections, rent collection, and so much more.

 

We Will Save You Time

Going back to our initial point, this should be considered passive income for you, NOT something that you are regularly working on.  Maybe you’re young and have the additional time and energy to sacrifice, however you won’t be able to burn the candle at both ends for too long.  The single, number one reason you are going to hire me is because you don’t have the time, desire, energy, or will to do this yourself.  Don’t feel bad about that, you shouldn’t want to.  Durante & Rich Real Estate has all of the right systems in place, from technology to the right people in the right places to make sure your property is getting the attention it truly deserves.

 

We Will Save You Money

Durante & Rich Real Estate isn’t like the other property management companies or Realtors you will encounter and/or work with.  We understand that our up-front work is the most important part of the process, ultimately locating the right tenant for your property.  Our clients have complete access to our vast third-party contractor and vendor lists.  While WE MAKE NO MONEY on the maintenance process, our clients save.  Our contractors work hard to keep their prices low and competitive within our network, which is lower than what you will find through any other searches.  As the homeowner, you will have the final approval on all estimates.

 

We Will Do ALL of the Leg Work

When you meet with Durante & Rich Real Estate, we will begin to go to work for you.  We will put together a professional CMA (comparative market analysis) for our clients to review, and provide our professional recommendation for the list price.  Our offices will coordinate and facilitate all maintenance meetings between homeowners, contractors/vendors, and tenants alike.  We will conduct regular property inspections, as well as work through all legal paperwork and contractors for our clients.

 

We Will Maximize Your Monthly Rental Income

We are a marketing powerhouse, especially when compared to owners attempting to rent their properties themselves.  Remember, the beginning of the process (locating the right and most qualified tenant) is the most important part.  Whoever you (the homeowner) approve as the tenant, is who we will be working with for the length of the lease.  Through our marketing efforts we will schedule pre-qualified leads for showings we will attract highly qualified prospects at the highest achievable market price.

 

Manage ALL Tenant Day-to-Day Activities

If as a homeowner who is self-managing their property you believe that once you give your tenants the keys, that’ll be it, think again.  That is a pipe dream.  We currently manage 700 properties and there are less than a handful out of all of them where that scenario actually plays out.  That is ESPECIALLY the case when it comes to working with tenants directly.  There are professional tenants who know the laws, and know the systems in place, who will become your best friend and take advantage of you.  Case in point, reference the article written in February 2018 from New York Magazine, “Worst Roommate Ever”.  That is a true story, and these off-stories that you hear about tenants do actually exist.  Protect yourself with someone who understands the laws, and will make sure both sides are treated well and enjoy the business arrangement.

 

In conclusion there are numerous reasons why a property management company is your best solution.  My final piece of professional advice today for you is DO NOT rent to your friends, family, co-workers, or anybody else you know outside of this business transaction.  You want and NEED to keep this professional, otherwise it could cost you.  The properties that always have the absolute worst damage are the ones where the landlord was just helping someone out.

 

Call, text, or email me today to schedule a FREE, no commitment real estate analysis and consultation.  We will meet you at your property (or any other location of your choice) around what time works the best for you.

 

Matt Bonnes

Regional Manager/Real Estate Salesperson, Durante & Rich Real Estate

Direct Cell Phone: (858) 413-7290 | Corporate Office: (619) 500-3496 | mbonnes@drpropmgt.com

www.DuranteRichSD.com

CAL BRE Number: 01984769

 

But My Parents Didn’t Teach Me Anything About Investing!

Can you believe that your parents didn’t teach you the basics about real estate investing? 

What about investing in the stock market, nothing?  Alright, at least you have a 401K with your employer!  According to Vanguard’s annual report, the average American is just short of $97,000 when they retire.  Let’s do some quick math here, pretending that you retire at 62 years old, and live to 100. (Those of you who understand that you’re already in trouble, feel free to skip the math below)

100-62 = 38 Years of Retirement to Enjoy

$97,000 (I’m just rounding up, we’ll pretend you did just a little better than most)

 $97,000 / 38 Years = $2,552.63 per year = $212.72 per month

 

At least you can relax and know that social security will still be there to help you out!  Ok, we know and understand the probability of that is extremely low.  But we’ll pretend for the sake of this blog post that social security will still actually be around.

Social Security Benefits (Average Retired American) = $16,416 per year = $1,368 per month

 $1,368 (Social Security Benefits) + $212.72 (Amazing 401K Retirement) = $1,580.72/month

 

You better hope that you own your house outright, otherwise you’re looking at a reverse mortgage, and your kids won’t get to keep the house when you die.  It’s unfortunate really.  We were all taught specific things in school, and not taught others, and we all drank the Koolaid.  OH YEAH!  Nobody ever double checked the math, they just believed they would do what everybody else was doing.

 

401K Retirement Accounts are Garbage

There’s no way to sugar coat this, but you’ve been lied to your entire life.  Hopefully you are reading this post early enough in your life to make the necessary adjustments so you can actually retire and live the same lifestyle you were living while you were working.  401K accounts were invented in the 1970s to provide an additional tax haven for ultra-wealthy executives, never meant to be a means to accumulate enough wealth to retire on, but that is exactly what the American people were sold.  The baby boomer generation was a Guinea Pig to test out rolling this theory out to the masses, and it was only that, a theory.  Why do you think investment bankers have their Lamborghinis and Ferraris lined up outside, but you’re still pulling up in your 2006 Toyota Camry?  Trade fees, trade fees, trade fees.  Every 1% trade fee turns into 20% when compounded over the life of your investment.  I hope I just blew your mind.

PS – Whether you realize it or not, you have no control of your money for an extremely long extended period of time when invested with a 401K, unless you want to pay the 10% tax to take it out.  Your call…

 

What Are Your Options

Invest in the Stock Market

I know this article is grounding and filled with a lot of self truths that you may not want to listen to, but investing in the stock market is not as great as it sounds.  Day trading comes in and out with popularity because literally anybody could do it.  Let’s face it, you don’t have the time required to be successful, you actually need to work, remember?  Your option for stock market investing include a lot of research time on your side, understanding where to invest, and working with a FIDUCIARY.  (I’m not here to pitch you on investing in the stock market, instead on why real estate investing is far easier and superior to real estate investing.  If you’re interested however, take a look at Tony Robbin’s Book: “Money, Master the Game”.  This is my book of the year so far).  If you actually read that 600+ page book, you’ll learn the ins and outs of real estate investing, what to look for, what to avoid, and what to expect.

 

Invest on Your Own in Real Estate

You can read many blogs on the internet, read books, and work on becoming knowledgeable in the investment world.  Getting out there and doing it on your own, making your own mistakes, is the most important option for you.  You NEED to get in there and just do it.  You can try to do many things, such as whole sale, fix and flip, buy and hold to become a landlord and manage your own rentals.  It all depends what your goals are.  Right now that goal should be making sure you know enough to retire with enough money in the bank.

 

Work with a Real Estate Professional

If you pay enough attention, you will be able to retain enough information over time and through trial and error hopefully become successful, or you can work with professionals who know and understand exactly what they’re doing.  Durante & Rich Real Estate can put together many different options for you, creating a portfolio that will continue to grow and take you on the path towards financial freedom.  Some real estate investment options include:

Crowdfunding

We will take your money, usually for investors beginning with $10K or less, and pool it into an investment, promising a guaranteed return at the end of the year.

Annual Return Investment

We will take your money and work on projects individually for you, and guarantee a specific percentage return at the end of the year, as high as 20% annual returns.

Personal Real Estate Portfolio

We will work with you, consult with you, and present you options to start your personal portfolio and grow it into your retirement savings.

The most important note is that we will manage everything listed above and keep extremely high levels of communication and transparency throughout.

 

If you are interested in exploring your investment options, well beyond the mainstream 401K, and have decided that relying on Social Security Benefits is not for you, CALL US TODAY.

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How to attract long term tenants

Setting you and your rental up for success through a diligent vetting process makes all the difference.

When you list your property for rent, especially for the first time, you may find yourself anxious as you imagine who your tenants are going to be, and hope to avoid those horror stories that have been shared throughout the industry.  Durante & Rich Real Estate was able to retain 87.5% of all of our tenants last year, out of 650.  The tenants we help our clients place also average their stay between three to four years, providing our client base with financial security and knowing their properties are being well taken care of.

Attract Great Tenants to Your Listing

It seems so obvious, but you need to attract the right tenants before jumping ahead to figuring out how you intend to keep these tenants, long term.  You want to make sure you are utilizing internet marketing, and I’m not talking about Craigslist.  While we market directly through those sites as well, we rarely actually rent to people from sites such as Craigslist, however we have before and I’m sure we will again.  Durante & Rich Real Estate syndicates our listings through our property management software, which in turn scours Google, Bing, and Yahoo search engines to place your property in front of more potential tenants.  GOOD internet exposure is key to a successful listing in today’s market.

Even if your listing isn’t moving right away, don’t take the advice from THE OTHER GUYS.  THE OTHER GUYS will tell you to accept a sub-par tenant and just charge a higher security deposit.  Hire Durante & Rich Real Estate and we will work until we find the right tenant, not just the next tenant.

 

How Well Does Your House Show?

This doesn’t mean, is your house updated or not.  This section insists that you as the homeowner and landlord need to go above and beyond to make your house show ready.  The first listing weekend is important.  Durante & Rich Real Estate will develop a marketing campaign specific to your property, including photos, videos, virtual tours, website syndications, SEO marketing campaigns, and social media campaigns to drive traffic to your property.  We want to make sure that when the prospective applicants arrive to view your home, it is in its best, show ready condition.  Are the countertops, table tops, counters all empty?  Make sure all beds are made, kid’s toys put away, etc.

While we are usually able to place a tenant inside most homes within 14-21 business days, our strong entry to market allows our clients the opportunity to have their property rented to well qualified tenants, who our clients approve, within the first week.

 

Is the Property Priced Correctly?

After we schedule our face to face meeting with you at your property we will put together a comprehensive CMA for you to review.  We will give you our professional opinion, however as the homeowner you of course have the final say.  We put our marketing expertise to work to competitively price you in the market, and place the most qualified tenants in the shortest amount of time.  Remember, with our application process the homeowners also have the final say, to either accept or decline the application.

 

Is Your Property Updated?

There are many quick things a homeowner can do that go a long way.  Fresh paint is one of the quickest updates that can be done to a property.  How is the flooring?  We hope it isn’t 10 year old carpet.  Even if your property is not completely updated, but the floors and walls are clean, that will go a long way to renting your property quickly.  If your property has a lawn, how does it look?  While San Diegans today may be accustom to thin lawns, thick lawns are extremely attractive.  As a landlord, once you have a nice lawn back, you may want to consider hiring a landscaper to maintain the lawn.  This doesn’t necessarily provide any value add, however it does make your listing more attractive.

 

Why Hiring a Property Manager is  Attractive to the Right Tenants

While showing your property to prospective tenants, our company is one of the things we sell to the tenants as an included bonus.  Well qualified tenants will appreciate working with a property manager.  Durante & Rich Real Estate offers many different communication options, including phone, texting, emailing, video calling, 24/7/365 maintenance management, and much more.  Working with Durante & Rich Real Estate offers quick turnaround for tenants and homeowners alike.

In 2016, out of 650 Units, Durante & Rich was able to retain 87.5% of all tenants.  It is just easier to have a tenant who continues to pay rent and take care of your property, renew the lease agreement.

 

CONTACT US TODAY TO SCHEDULE A FREE, NO COMMITMENT REAL ESTATE ANALYSIS AND CONSULTATION.  We will schedule a time that fits your schedule the best, meet you at your property, and provide you with our professional opinion.

 

Matt Bonnes, Durante & Rich Real Estate

CALL/TEXT: (858) 413-7290 | EMAIL: mbonnes@drpropmgt.com

www.DuranteRichSD.com

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Property Management | Selling | Buying | Investing

The Value of a Good Property Manager

A good property manager will save you more than money, however they still need to do that too!!

 

Maybe you have a single property that you rent out, or you have numerous.  Either way you are considering hiring a property management company to handle all aspects of management.  There are many reasons why someone would want to hire a property manager, ranging from housing and dealing with the tenant from hell to simply not wanting to be involved with the day to day work that is involved.  We currently work with clients who have many different reasons to begin looking for a property management company, however it is important to find a property manager who presents value for you and your property.

 

How Much Is Your Time Worth?

There is a saying that you can always make more money, but the time you spend on something you will never get back.  I have read some people’s opinions that there isn’t too much time that needs to be spent on each property annually.  That may be true, until it isn’t.  Dream tenants are out there but they aren’t guaranteed, and many different things go into ensuring the success of a well-run rental.  Starting from the beginning, you will need to spend time taking quality photos and listing them online to draw prospective tenants.  Once you have some showings that you will need to spend time coordinating and actually doing, you will need to put together an application process.  I have seen time and time again homeowners who rented their properties out and accepted a credit report run and turned over to the homeowner.  I’d recommend against that!  After you place the tenant, there are still numerous things that need to be addressed:

  • Signed Lease Agreement
  • Security Deposit
  • Rent Collection Established
  • Move In Inspection conducted and properly documented

Once the tenants are in the property, there are still many day to day tasks that can and will come up.  Some of these tasks can be extremely time consuming, including coordinating maintenance issues, obtaining quotes in a timely fashion, HOA issues, parking violations, and the list goes on and on.

 

Maintenance Issues

This is probably one of the biggest hot ticket items for both homeowners and tenants.  Homeowners are worried about their investment being taken care of, while still being cost effective.  Tenants simply want the issue resolved, FAST!  Durante & Rich Real Estate works diligently to ensure the tenants maintenance requests are addressed in a timely fashion.  When the maintenance issue is reported, we will spend the necessary time with the tenant to determine the severity of the issue, as well as to possibly trouble shoot the ticket.  We already have a solid list of third party contractors, who all require your approval to start working.  Their pricing is more than in-line, and we don’t up-charge the invoices at all.  If you receive an estimate that you aren’t comfortable with or simply don’t like, don’t worry, we will obtain additional quotes to compare for you.  If you have your own contractors, they’re more than welcome to work on the properties as well.

 

Regular, Day to Day Activities

There are a number of reasons we would regularly work with the tenant, ranging from calling about rent payments, lease questions, questions regarding the property, cable company restrictions, HOA information, and the list can continue as I’m sure you can and do understand.  We have a full office staff who are well versed and trained to handle all property management situations.  We will keep all documentation for your property organized and readily available to you.  We utilize technology, including electronic payments, online tenant portals, online document execution, and property management software built to enhance the experience for homeowners and tenants alike.

 

Placing Qualified Tenants

Placing a qualified tenant is the most important part of the deal.  If you place a problem tenant, your experience will probably be summed up as less than pleasurable.  A number of clients who I have signed over time have come to me because they placed a tenant themselves and now were having issues, usually around collecting the rent on time, or at all.  Each tenant we place goes through an full credit check, background check, eviction history check, income verification, and residential rental history.  We will break down each application received and share it with the homeowner, along with our recommendation to accept or decline, but the homeowner still has the final say.  Durante & Rich Real Estate provides a deep marketing skillset, allowing us to locate top tier tenants.  Many of our tenants move on to purchase property after their rental.  Durante & Rich Real Estate will handle all aspects of move in and move out inspections (Photos, videos, and detailed inspection reports), lease agreements, and other required paperwork.

 

Ability to Achieve Higher Monthly Rent

We have time and again placed tenants for homeowners at much higher rents than they were achieving themselves, with higher quality tenants.  Durante & Rich Real Estate has achieved rents of almost $1,000 higher in some of our more extreme cases, but usually a couple of hundred are left on the table by homeowners who manage their properties themselves.  When you do the math, Durante & Rich Real Estate basically pays their client to let them find higher quality tenants, handle all aspects of rental and management (saving hours and hours of time), and achieves a higher rent.

 

Contact us today to schedule a FREE, no commitment real estate consultation and analysis.

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Maintenance Management & Your Investment Property

Why Third Party Contractors Are Your Best Bet When It Comes to Your Investment Property

Maintenance.  This is probably one of the many reasons you decided to turn your property over to a professional property management company.  Maintenance issues are an important bridge to gap between homeowners and tenants, who both may have different goals when it comes to maintaining the rental property.  The tenant wants their property to fully function.  The homeowner wants to remain cost effective and cash flow positive.  Durante and Rich Real Estate wants to ensure both of those goals are met, each and every day.

RECEIVING THE MAINTENANCE REQUEST

Our philosophy is to make sure all homeowners are able to see all maintenance tickets and requests in real time.  Each tenant we work with has numerous points of contact, including:

  • On-line Tenant Portal
  • Numerous Points of Contact, Including Full Time Office Staff, Cell Phone Numbers, Email Addresses, 24/7/365 Emergency Services Line

 

ASSIGNING THE MAINTNEANCE REQUEST

Carin, who heads our maintenance department assigns the maintenance request to the most appropriate vendor.  Each homeowner is different, and many want to handle maintenance different ways.  Carin spends a great deal of time getting to know each homeowner and their maintenance preference.  She shoes truly un-matched levels of care, as she only assigns contractors who she trusts.  Durante & Rich Real Estate doesn’t up-charge any invoice, or charge additional for maintenance management.  When we send out our service ticket, the homeowner would immediately be alerted to  the issue, and who the vendor assigned to the issue was.

Vast List of 3rd Party Contractors

Homeowners discuss and approve costs with contractors directly.  As an additional side note, we do not upcharge any maintenance fees.  We are not obligated by any measure to use one contractor over another.  If you would like us to provide numerous quotes, we are more than happy to.  Our contractors keep their prices low (and we review the prices) because we are able to provide lots of work to them.  They pass any discounts they would provide with us directly onto our clients.

 

Home Warranty Systems Are a Solid Option

There are many things that can happen with any property, at any time.  Many of these things can be covered through a home warranty system.  Imaging your EXPENSIVE refrigerator stopped working, and you didn’t budge to have this item replaced.  If you had a home warranty system this wouldn’t matter.  Imagine replacing your refrigerator, HVAC, Dishwasher, Oven/Range, Microwave, Garbage Disposal, Water Heater, Washer, Dryer, Plumbing, and Electrical.

US HOME GUARD INFORMATION

Why Property Managers Who Own Their Own Contractors Aren’t a Good Option

Are you able to see a complete breakdown of the invoice?  Do you have approval of work based on the contractor’s quote?  What happens if you don’t like the quote, are you able to get a second opinion?  Who coordinates that additional quote?

These are all questions that immediately come to mind when working with a property management company who “owns” their contractors.  While these property management companies may tout their ability to save you money because they own labor and directly manage the contractors, it is important to understand they aren’t doing this for free.  When it comes to the bottom line, if you aren’t sure of their quote, you will need to spend the time you hired someone else to spend to get additional quotes, just to be sure.  If you allow them to get additional quotes, you probably can’t be sure they would allow people to under quote them to win the job.  Instead of worrying about the best intentions of the management company, choose to work with someone who will recommend the contractors who keep their prices in line, get the job done in a timely fashion, and who warranty their work.  If you don’t like a quote you receive, rest well assured we will work to provide additional quotes from numerous contractors to ensure the best craftsmanship and price-point are both met.

 

END OF YEAR TAX REPORTING

For each maintenance issue we coordinate, we receive a receipt or each invoice and hold for your record keeping purposes.  At the end of each year, we will send out a solid accounting record for your property.  Everything you spend on your property annually is tax deductible, including our services.

 

CONTACT US TODAY FOR A NO COMMITMENT AND FREE PROEPRTY MANAGEMENT AND REAL ESTATE CONSULTATION AND ANALYSIS

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Why Now is the Time to Buy

From Millennials to Baby Boomers, It’s Time to Get In or Get Back Into the Game!!

I have heard many people giving home-ownership a bad reputation for some time now.  It may sound enticing to not purchase based on the idea that you have the freedom to move across the country on a whim, with nothing in the world holding you back.  Who knows what your future has in store for you.  Manhattan? Los Angeles?  Miami Beach?  While those ideas are grand in nature, what if you fast forward five years from now and you’re still in the same place (geographically, hopefully you’ve advanced in other aspects of your life) and you’ve been paying rent the entire time.  Let us pretend you live in an area where rent averages $2,500 per month, meaning you’ve put $150,000 in equity back into the homeowner’s bank account over those past 5 years!

 

RENT COSTS $150,000.00 OVER A 5 YEAR PERIOD

What if, you could purchase a property with the same amount of money it takes to rent a property, all while saving you with a lower monthly mortgage payment?  The best part is when you make a payment as the homeowner, you’re really paying yourself with equity.  Let’s take a deeper look at the benefits of home-ownership.

No Landlord Can Force You to Move

If you have small children, you may appreciate this section the most.  There is no worse feeling than receiving an official notice that when your lease comes to an end, you need to figure somewhere else out to live.  Usually you would receive this notice about 60 days prior to the end of your lease, which isn’t much time to figure everything out.  If you are proactively looking into your best interests and preparing to purchase before the end of your current lease, this wouldn’t be an issue to worry about.  No more bouncing around.  You will have the comfort and ability to begin to spread your roots, make lasting relationships, and truly feel a sense of community and security.

A Fixed Rate Mortgage Won’t Go Up

In San Diego County, house values have been rose in the past year by 4.7% and are projected to rise by 4.2% the following year.  In the same time frame, rent has raised by 6.2%.  If you own your property, you create massive amounts of equity while paying your mortgage that hasn’t raised one penny.

Tax Benefits

One of the key components to home-ownership are the tax deductions.  As a homeowner, you are able to write your interest payments off at the end of the year.  In some cases homeowners will be able to avoid other federal taxes on money earned through the sale of the home.

You Can Finally Make Your Home, TRULY YOUR HOME

Not only will a landlord never be able to kick you out of your property at their convenience, you will never need to ask permission to do anything to your home again.  Once you own your home, if you want to change something, CHANGE IT!!  If you want different floors, a new kitchen, new paint, DO IT!!

Should You Sell or Rent Your Home

Regardless of the reason you need to move, you have a decision you need to  make

 

There may be many different reasons you are asking yourself this question, however there are many important aspects to consider.  I have found many of my clients today want to rent their property out with the full intention of eventually returning to the property in the future.

Why Rent your Home?

When a well-qualified tenant moves into your home and pays you rent, they are essentially paying for you to earn equity in your home.  Once your mortgage is paid off, you have created a stream of residual income!!  Owning properties will also come in handy when it comes time for retirement.  While you will have residual stream of monthly income, you will have the opportunity to pull equity out of these homes, or sell them completely if you need cash quickly.

If you Own Your Home Outright

If you own your home outright, you should keep the property as an investment and begin to take in the additional residual income.  With this scenario, it is extremely easy to continue to put money aside each month that will cover associated maintenance and other costs associated with being a landlord.  Hiring a property manager makes this process even more manageable.  Durante & Rich Real Estate does all of the work for you, while keeping you in the loop with any issues that come up, in real time.

Equity Towards Retirement

Being able to retire is important, and this is one way to help you get closer to your goals.  While owning an investment property or two will bring residual income to you, the ability to pull equity out of the property as you need it is huge plus.  Home values in Chula Vista, CA rose by 4.7% and are further projected to increase the next year by 4.2%, all while rents are expected to increase by 6.2%.

Time and Stress

While many people would initially want to put this into the “Sell Your Home” category, with the right property management company efficiently running the show, you would barely even notice your investment.  Starting from the beginning, locating a qualified tenant is important.  With Durante & Rich Real Estate, we strive to eliminate the stress factors for our clients while raising the level of customer service our tenants will continue to receive.

Why Sell Your Home?

In San Diego County, homeowners have owned the market for the past two years, which would initially make one think the time is now to sell.  If you are a person who is financially strapped, are barely making the bills as it is now and needs the cash, sell.  If you want to retire elsewhere and need a down payment, you may still want to consider keeping your home as an investment.  There are many benefits to owning investment properties, especially in San Diego, which include:

  • Continuous residual income while continuing to build equity in your property, which is appreciating over 4% annually today, while rents are raising over 6% annually!!
  • Tax Benefits
  • Investment Diversification
  • Owning a property you can come back to intermittently, when you want a nice vacation spot!

Advantages of Buying Your Own Home, Instead of Renting

There are still many people today who rent instead of buy, for no other reason than they don’t understand the first steps to take, and just how affordable homeownership truly is.  While many have an ideology that renting a home has many benefits, such as the flexibility to move when you would like.  We have had the opportunity to speak with many people who were interested in renting one of the properties we manage.  One of the top responses we hear is that they are only planning to live in the area for a few years at best, and will be moving elsewhere after.  To put a dollar figure to better make one understand the ramifications of renting, $2,500 per month over 3 years equals $90,000.  Instead of building equity in a property that will most likely appreciate within those three years, you put it directly into your landlord’s pocket!!

Build Equity

One thing that a renter cannot do is build equity over time.  Homeownership allows homeowners to invest back into themselves and their property.  With more of the principal paid and the property continuing to appreciate, a homeowner will have essentially put money away for their future.  When you work with the right lender you will better understand what your monthly payments will be.  As a homeowner, you won’t need to worry about moving out of  your property due to someone else’s life circumstances.

Tax Benefits

There are many benefits to homeownership, and taxes are a big part of that.  There are a number of tax benefits out there, however not all homeowners will qualify.  We would recommend discussing all tax benefits and breaks with an accounting professional.  Some options you may want to look further into include:

  • Mortgage Interest Tax Deductions
  • Capital Gains (On properties that have significant appreciation)
  • Homestead Exemption
  • Federal Tax Deductions

Sense of Belonging and Community

Homeowners typically stay in their property longer than renters do, meaning as a homeowner you would be more likely to lay down roots.  As a homeowner, you would be more likely to care about how your property looks, who your neighbors are, and what developments are occurring within your community.

 

If you are considering weighing the pros and cons of purchasing a home or continuing to rent, give us a call! (858) 413-7290.  Even if you are unsure if you are able to purchase, we offer FREE no obligation consultations and will connect you with our team to determine the best route for you.

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Choosing the Right Property Management Company

Landlords, are you facing the daunting task of choosing the right property management company to locate a quality tenant, maximize your profit potential, and still be cost effective?  If you’ve ever self-managed your own property, you should be familiar with the process, however I’m sure you’ve asked yourself in the past, is it time to hire a property manager?  If you’ve decided that you want your time back and you’re interested in exploring your options, there are some questions that you should be asking the company you are interviewing.

How Do you Handle Maintenance Issues?

This is one of the most important aspects to successfully and properly managing a property.  It is important to fully understand the maintenance aspect, how the process works, how much flexibility you (the homeowner) has, and how much the overall costs are.  Durante & Rich Real Estate works with third party contractors.  Working with third party contractors allows our company the flexibility to obtain the best price for each issue that occurs.  All costs are discussed with the homeowner and approved prior to completion.  Durante & Rich Real Estate does not add any fees or charges to any maintenance issue, in an effort to keep the costs as low as possible.

We also offer a home warranty program!!

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How are the Tenants Selected

As a homeowner we find it important for you to understand who will be moving into your property.  We have an extremely thorough application process.  We run a full credit check, background check, eviction history check, income verification, and residential rental history verification.  Our office will break down the application in its entirety and discuss the application point by point with each homeowner, as well as provide our professional recommendation to either accept to decline.  The homeowner has the final approval with Durante & Rich Real Estate.

How is Rent Collection Handled

Durante & Rich Real Estate automates the rent collection process for all homeowners and tenants.  We create a convenient collection system for the tenants to ensure timely and trackable payments.  Our process is expedited, and the payments are sent directly to the bank account of the homeowner’s choice.  Durante & Rich Real Estate does not charge a monthly management fee, so there is no need for the funds to be sent to our bank account, only to be re-deposited into the homeowner’s account.

 

Choosing the right property management company for your rental property or portfolio of properties in an important decision.  It is important to understand the property management company is working for you and needs to have your best interests in mind.  Hiring the right property management company can lead to increase profitability through lower vacancy rates, better tenant satisfaction and lower turnover.  In 2016 Durante & Rich Real Estate had 87.5% of their tenants renew their leases!!  Contact us today to schedule a no pressure FREE Real Estate Consultation.  Whether you want to rent your property, purchase a property, sell a property, or build an investment portfolio, we would love to speak with you.

 

Matt Bonnes | Durante & Rich Real Estate | mbonnes@drpropmgt.com | (858) 413-7290