Category Real Estate

The Merriam-Webster Dictionary defines the phrase “due diligence” as “the care that a reasonable person exercises to avoid harm to other persons or their property.” When it comes to real estate and buying or selling a home, you will find that there is a due diligence period (usually of 15 days in Florida contracts, but this can be negotiated) during which any investigations that could impact decision-making on the part of the buyer must be carried out. 

You’ll often hear people reminding you to “Do your due diligence,” but what does that mean exactly? How do you go about doing your due diligence? What are the steps? Read below to discover the Atlas Law team’s recommendations for things to take care of during your due diligence period.

1. If you haven’t already, get to know the market.

Some people fall in love with the first house they see and spring for it without seeing what else is out there. If you aren’t already familiar with the market, you should look at some other comparable houses in the area at this time to make sure that the home you are buying is fairly priced (and to make sure it’s really what you want).

2. Calculate prices of potential repairs.

You’ve probably already had the home inspected by this point. If you haven’t already, now is the time to go over the inspector’s notes in detail. Then, you should get down to the nitty gritty details of what any necessary repairs are going to cost you. This may require calling a contractor for an estimate or even taking a trip to the hardware store to look at the costs of materials.

3. Look into insurance options.

Some buyers don’t look into insurance options until it is too late. They find out their home can’t be insured because, for example, it’s in a hurricane-prone area, but by the time they learn this it is too late for them to back out of the purchase. Don’t let this happen to you. Talk to some insurance companies and get some bids during the due diligence period.

4. Review Homeowners Association documents.

Some homeowners associations are better than others and it can be a big mistake to buy into the wrong one. Take some time to review the Homeowners Association documents so that you will be sure you know what you are getting into.

If you are buying or selling real estate in Florida, contact Atlas Law today. Our firm is unique in that we handle cases across jurisdictions through the state of Florida. We are extremely experienced and committed to helping our clients make the best real estate decisions possible. We can’t wait to chat with you about how we can help you!

Investing means putting your assets to work so that you can increase your net value, enjoy additional income, have more funds when you retire, or save up for a child’s college tuition. In fact, once you have enough assets, investing is the only logical way of taking care of your growing wealth. However, when making a decision to invest, people usually face a dilemma: “What should I invest in?”

The stock market is likely one of the answers that most readily come to mind. Indeed, investing in stock can yield great returns – but it doesn’t come without its risk. If you are looking for a reasonable alternative to investing in stock – one that would offer comparable or better returns but without the volatility – the real estate market might be a perfect option for you. In this blog, we will consider 4 reasons to consider investing in real estate.

High Tangible Asset Value

The value of some assets will decrease over time. This can be true both of a stock – the market value of a company can drop rapidly and the company’s shares will plummet – but also of concrete things and items like, for example, cars. A house or land, on the other hand, will always have value. In addition, it is likely that a real estate property will steadily gain its value over time. And even though special circumstances or trends on the market can make the value of these assets drop as well, you can protect yourself from heavy losses with homeowner’s insurance.

Better Returns Than the Stock Market

It may seem counterintuitive to think that the real estate market provides better investment returns than the stock market, but this is what the data tells us. Since 2000, the annual returns on investment in the stock market averaged 5.43%, whereas real estate investment earned 10.71% annually. The reasons for higher returns from the real estate market investments are both appreciation (or the rise in value – currently, it averages 3% to 4% annually) and the income generated from renting out the property.

Tax Benefits

There are numerous tax advantages that come with owning a real estate property, especially if you own a rental property. In such case, you can deduct, for example, the interest portion of the payment towards the loan you took to buy the property. You can also deduct operating expenses, insurance, and depreciation. In fact, rental property owners are allowed to take tax deductions for any legitimate cost related to running a rental property.

Rental Yield

Speaking of rental property, the rental yield – or in other words the annual rental income – is yet another financial advantage you gain when you own a real estate property that you decide to rent. Renting out a property is a great way of earning passive income – money that you earn without an active involvement.

Investing in Rental Property? Contact a Landlord’s Advocate

At Atlas Law, you will find a host of experienced, dedicated attorneys who can help you with all the aspects of property management, investment protection, and more. We can also provide advice related to difficult landlord-tenant relationships and represent you in litigation. Contact us today to experience the comprehensive legal care and assistance we offer.

Property can be a great investment and return vehicle, but managing and maintaining the property can also eat up a lot of the profit margin. This does not have to be the case, however, if you know where to look and what to change.

1) Use your utilities wisely. Of course, as a landlord, you are required to provide your tenants with functioning utilities that are consistent and reliable. Within that obligation, however, you can still implement some cost-saving measures such as switching out incandescent lights with LEDs that use less energy and last longer. Consider putting outdoor lights on timers so that they only come on when needed or during dark hours. Look into installing insulation to prevent heat and cold from escaping or getting in, depending on the season. Also, keep an eye on your bills and make sure you are actually using all that you are being charged for.

2) Outsource when possible. Outsourcing is a fancy way of saying you’re hiring someone else to handle the problem. While this measure involves spending money, the savings in the long run may very well justify the move. For example, outsourcing tenant calls or service complaints, or billing to a property management company can free up your time for other duties or problems that need attention.

3) Maximize your taxes. A tax specialist may be a very wise investment with a large return in tax savings. Even just having a review of your property tax situation can mean a reduction in your overall tax burden.

4) Give your tenants incentive to stay. Changes in tenants are a giant hassle not only in costs associated with preparing the apartment for the next tenant, but in screening and finding new tenants. Then, there is the lost income if the apartment remains unrented for more than a month. If possible, have tenants sign onto extended leases or at least give them incentives to stay longer as the less turnover there is, the less cost there will be for you.

5) Scrutinize your bills and try to renegotiate if possible. Always be aware of what services or goods associated with your properties you are paying for. If you feel that a service or commodity has become overpriced, you may have some leverage with the vendor to negotiate a new and better rate. Most vendors will be happy to negotiate rather than lose a customer altogether.

6) Consider long-term cost-saving investments. Going green is great for the environment, but if done right, it can also mean substantial long-term savings for you as well. Solar panels, solar-powered hot water heaters, and solar-powered lights can all help to reduce electricity costs. You may even be able to get tax rebates for using solar power.

One of the easiest and least stressful methods of cost saving is to have a qualified, experienced, and knowledgeable attorney assisting you in the management of your property. Attorney Brian Chase is uniquely suited to provide these services to landlords and property managers all over Florida. Contact us today to get started.    

Property managers have a lot on their plate at any given time. There are the rental agreements to keep track of, the properties to market, the apartments to service, and the tenants to keep happy. And, that’s just in the morning. It is possible, however, to be a successful property manager with a few good tips.

1) Know what you’ve got. Understand and know your portfolio of properties inside and out. This means knowing both what they rent for but also the type of family or renter for whom they should be marketed. A high rise apartment in the city may not appeal to the family with small children just like the suburban apartment may not appeal to the Millennial. Also know the areas in which you have properties and what elements of those areas might be attractive for particular renters. Maybe one unit is near a commuter train station or another is in the heart of the arts district.

2) Provide great service. Nothing is more frustrating for a tenant with an emergency on a weekend who gets no response from their property manager. This does not mean that you need to be hooked to a phone 24/7, but it does mean that you need to have processes in place to ensure that issues are handled promptly and that residents are assured that you have heard their complaint and are working to fix it. Great service should not end once the tenant moves in. It should last for the entire relationship.

3) Use social media. Let social media work for you to help you find tenants, but also to help you maintain your good reputation. Keep tabs on the reviews of your business on social media and if you see problem areas, address them. You should also become familiar with SEO optimization, keywords, and other methods of getting your properties in front of eyes.

4) Maintain your properties. This will require investment on your part to maintain and in some cases, upgrade your properties. The flip side of this investment, however, is that it usually can command a higher rental price. Tenants want to live in safe, habitable places that have the usual modern conveniences and fit their lifestyle. If your properties are not meeting that requirement, it might be time to consider some investments. Similarly, it is always important to maintain properties up to the relevant code for your area. Failing to do so can create a huge liability later down the road.

5) Find and hire good people. Depending upon the number of properties that you have, you may not be able to wear all hats at the same time. If this is the case and you need to find additional help, screen very carefully for employees who share your vision of great customer service and who are ready to work with you. Often times, the person you hire may be the tenant’s only point of contact with your organization and you want it to be as positive as possible.

6) Retain good counsel. There are going to be issues that arise that are complex or can turn into potential liabilities that will require the advice and help of an attorney. It is inevitable and you should be prepared for it by retaining an attorney who understand the needs and issues facing property managers. It is also critical to have an attorney on your team to advise you of changes in regulations, state and federal laws, as well as tax code implications and similar legal issues.

Brian Chase has extensive experience representing and advising property managers through the various regulatory and liability issues that arise. He is ready to join your team and help make it as successful as possible. Contact him today to get started.