HARRY'S BI-WEEKLY UPDATE 9.22.20
September 22, 2020
HARRY’S BI-WEEKLY UPDATE
A Current Look at the Colorado Springs Residential real estate Market
As part of my Unique Brand of Personal Service, it is my desire to share current real estate issues that will help to make you a more successful and profitable buyer or seller.
THE TIME TO INVEST IN A NEW HOME IS NOW…
It doesn’t matter if you want to sell and trade up, move to a new neighborhood, help a family member purchase a home or buy for investment purposes…. there’s no better time than the present.
Interest rates are still historically low and home values locally are simply off the chart, so the equity in your present home is likely greater than you might imagine. The securities markets are in a constant state of flux, but home values are continuing to rise.
Realtors all over are asking each other, “Have you ever seen a market like this?’ And the answer is, “NO. NEVER”. The pandemic has not stopped the consistent home price growth we’ve witnessed in recent years and is a very bright light in the recovery of the economy.
Folks are looking at their living conditions in a different light in terms of what they need in order to work from home, tutor their kids from home, eat more meals at home and in general, simply spend more time at home.
These are all reasons why you might want to give me a call so we can discuss your personal wants, needs and budget requirements if you’ve at all wondered whether you might either want to trade up or buy another home for a family member or for investment purposes.
The price of lumber is continuing to escalate according to the National Association of Homebuilders, which means that new construction costs will rise along with them and further increase the value of existing homes. The price of lots is also on the rise which will again affect the price of existing homes.
If new construction is something you’ve considered, NOW is the time to make your move. I can help you in that area at no additional cost to you. I know the ins and outs of site selection, home features and so much more. On top of that, I can also help direct you to the best mortgage financing for your individual needs.
Rental prices are higher than ever and don’t look to decrease any time soon. That makes buying for investment purposes a great choice for those who might have considered this option in the past. Of course, it’s always smart to talk to your tax advisor before becoming a landlord, but I can tell you from personal experience that I’ve found my investment properties have provided a more lucrative rate of return than those from stocks and bonds.
Do you have a student in college? So many are learning remotely from their dorm room or apartments these days. Why not purchase a home and let your student live there while renting out rooms to others? The increased equity by the time your student graduates could possibly pay for a major part of their tuition. It certainly is worth discovering if this is a possibility that could work for you.
No matter what the reason, there’s no better time than NOW to call me at 593.1000 or email me at Harry@HarrySalzman.com and discuss all the possibilities. I look forward to talking to you soon.
FIRST-TIME BUYERS RUSH TO LOCK IN LOW MORTGAGE RATES
Realtor Magazine, 9.18.20
A new wave of first-time home buyers are being drawn in by the record low interest rates according to Freddie Mac. “In August, activity among first-time buyers rose 19% from July to the highest monthly level ever for Freddie Mac,” said Sam Khater, chief economist for Freddie Mac. He added that the rebound “has come at a critical time for the economy.”
Mortgage rates have dropped more than 80 basis points since the beginning of 2020, the National Association of Realtors reported. And, the qualifying income to buy a starter home has dropped by 10% to nearly $43,000. Further, the monthly mortgage payment dropped by $100.
This is prompting homebuying activity to move higher than pre-pandemic levels according to NAR. If this doesn’t get you thinking, it should at least cause you to give me a call to discuss how this might affect you or one of your family members.
The following chart demonstrates just how amazing this is:
Any questions? Just give me a call.
10 LANDLORD RESPONSIBILITIES YOU MAY HAVE OVERLOOKED
RisMedia’s Housecall, 3.2.2015
I’ve posted some of this previously, but it’s always good to remind my clients who are landlords of their responsibilities. Reading this every year is a good reminder for all-- even those who hire property managers for their rental properties.
Some of the duties of a landlord are clear, such as collecting rent and finding new tenants for a vacant property. Our may be less clear and the more you know, the more success you’ll have with your real estate investments.
- Knowing the Landlord-Tenant Laws for Your Jurisdiction. Ignorance of the law is not an excuse. It’s your responsibility as a landlord to know and understand all tenant-landlord regulations for your city and state. Landlords can be (and often are) sued for not obeying their state’s law, even if they weren’t aware they existed.
- Preparing a Legal Lease Document. The lease agreement and any other legal paperwork is part of a landlord’s duties. It’s your responsibility to ensure the rental contract is legally written and abides by all laws. Leasing periods, monthly rental rates and tenant names must be clearly indicated. In some jurisdictions, legal disclosures, such as security deposit details, must be included. The lease should also contain all appropriate clauses, such as advising tenants to purchase renters’ insurance. Many states have required language that must be included.
- The Duty to Deliver Possession. Once a lease contract is signed, it is the landlord’s responsibility to deliver possession of the rental unit to the tenant on the agreed-upon-date. The unit must be in move-in condition and any previous tenants must have vacated the premises.
- Implied Warranty of Habitability. Another obligation is to make sure the rental unit is in a safe, habitable condition. The property must not have any serious deficiencies, and any supplied appliances, fixtures, plumbing and heating must be in good working order and the property must be free of insects and pests. Pest control is a responsibility even after the tenants have moved in, but most states allow landlords to avoid this by specifying in the rental agreement that pest control is the renter’s responsibility.
- Respect the Tenant’s Right to Quiet Enjoyment. According to most landlord-tenant acts, tenants have the right to quiet enjoyment—meaning to have the benefit of living in their home without being disturbed. Once a tenant is in possession of a property, the landlord may not interfere with this right. It’s therefore the landlord’s responsibility to ensure he or she does not enter the rental unit without proper notice. When a landlord enters a rental property, it must be at a reasonable time of day and for a valid reason.
- Completing Repairs in a Reasonable Time Frame. Tenants have the responsibility of reporting any repairs that need to be done. Landlords’ responsibilities include responding to these reports and completing repairs in a timely manner. Urgent repairs should be done right away, while minor issues can be addressed more conveniently. But beware that unrepaired damage tends to encourage tenants to vacate the rental property.
- Providing Safety Measures. It is your duty to protect your tenants, to a point. In some jurisdictions, landlords must provide specific safety measures. These may include fire and carbon monoxide detectors, fire extinguishers, front door peepholes, deadbolt locks on exterior doors and window locks.
- Reporting Crime. If a landlord becomes aware of any criminal activity taking place in one of their rental units, they must report it to authorities. For example, some landlord-tenant acts have specific laws that can find a landlord liable if their property is used for dealing or creating drugs.
- On-Site Property Management. In some states, the law requires on-site property management of multi-plex buildings of a certain size.
- Responsible for Property Manager Acts. An often-overlooked concern is that you can be liable for your property manager’s acts, including illegal ones. If a property manager does not follow local landlord-tenant laws and a rental application is refused based on their religion or race, for example, the landlord can also be held responsible. Stay up to date on your rental property’s operations and keep a watchful eye on anyone who works for you.
Being a landlord involves a steep learning curve when starting out, and the laws aren’t always simple. Taking the time to learn about your responsibilities as a landlord can mean the difference between earning a nice profit and losing money—or worse. Protect yourself by learning the laws that apply to you and surrounding yourself with a team of professionals.
