Despite what HGTV may show you, real estate investing is not for the faint of heart. New investors are often surprised by the challenges that come with managing cash flow, tenants, taxes, insurance or housing market instability. Below, we share our tips to keep top of mind BEFORE you invest.
Have you come across a property listing that seems too good to be true? You might have witnessed a rental scam! Rental property listing scams aim to steal money from interested renters or buyers. Oftentimes, they’ll try to get you to send a check for a security deposit or move-in fee without ever seeing the space, then they keep the money without any intention of renting a unit to you. They may not even own or manage the property in question! Protect yourself by identifying warning signs, and learn what to do if you’re a victim of a fraudulent listing. RENTAL RED FLAGS How often are properties “scammed” on social media, Craigslist, or other listing sites? It depends on the type of home, the time of year, and how many properties are out there. For whatever reason, it seems like there are more scam issues during the warmer months when more people are moving. There are a few key signs to note when you’re eyeing a new property. 1. A “landlord” offers to mail the keys or invites a potential tenant to peek in the windows of a house. A reputable property manager will schedule an in-person walk-through of a property or allow you to use self-showing software through reputable programs like Rently. They’ll hand over the keys in-person or in a lockbox. You should always physically walk through the interior of the property before moving forward with an application or making any type of payment. 2. The “owner” gives a story about being out of town or out of the country for a few years and/or requests irreversible or nontraditional payments (like gift cards). Trustworthy landlords and property managers accept payments in a legitimate method convenient to the tenant. Most scammers ask tenants to wire money out of town, send it through an online payment service or request another anonymous (and/or irreversible) form of payment. Some even ask for things like gift cards. If that happens, it’s a huge red flag. 3. The property is listed in just one place...or it has multiple listings at different prices. Craigslist offers free listings, so it tends to experience scams more often than other sites. But no third-party site is immune. Even sites that charge for rental listings may attract savvy scammers hoping to capitalize on their trustworthy brand. Scammers are getting smart and often removing their fake postings as soon as they garner interest from potential tenants. It’s important to note that the safest place to look for a property is on a reputable property manager’s website. 4. The price is low. Very low. Many scammers use pricing that is not in line with the market to entice buyers to send money quickly. Watch out for shockingly below-market rents and/or small security deposit amounts. Most single-family residence leases require at least one month's rent as a security deposit, but many scammers might list the deposit as half (or less) of one month's rent. 5. The “landlord” has few contacts or followers, or the account itself is very new. On social media, watch for profiles that have few to no followers or contacts. This is a red flag and could mean you are in contact with a person trying to persuade you with a fraudulent listing, only to disappear once he or she has your money. CAN THESE SCAMMERS BE CAUGHT? Yes, but it’s difficult. In the days of the Internet, prepaid cell phones and free (and anonymous) email addresses, it can be difficult to track down and punish these scammers. It’s important to be vigilant and take a preventive approach. If you have any information about a scammer, make sure to report it to the authorities and to the property’s actual owner or manager (if you can identify them). WHAT IF I AM THE VICTIM OF A SCAM? Contact the local police and the website where the listing was posted. Unfortunately, the Federal Trade Commission does not resolve individual complaints, but you can report it at FTCcomplaintassistant.gov, and it may help them identify patterns and help other consumers. If you’ve sent money to a scammer, you have a better case than if you’ve just recognized the signs and experienced no harm. Depending on your method of payment, you may be able to recover the money through your bank. (Unfortunately, this is not possible if you’ve wired it or sent something like gift cards.) If you’ve given out sensitive information like your social security number, consider freezing your credit with all three bureaus (Equifax, TransUnion and Experian) and/or place an active fraud alert on your credit file. These actions are free and can prevent your identity from being stolen later. If your identity has been stolen, contact the FTC. WHAT DOES RENSHAW DO TO PREVENT ITS PROPERTIES FROM BEING TARGETTED FOR SCAMS? We take several preventive measures. In our experience, scammers copy and paste pictures to create a listing that looks real, so we watermark our photos to make that more difficult. We also constantly monitor our postings and those like it on any sites we utilize to promote available properties. Although we no longer post our properties on Craigslist, we do monitor the site for scams utilizing our properties. That site has a reporting function that generally results in quick action. No matter what, if you’re ever unsure about a property, contact the listing agent. He or she will be glad to help you! --- Renshaw Company, REALTORS specializes in single-family and multi-unit rental properties and currently manages more than 900 different properties in the Memphis area. We offer the full package to our clients – we manage rent collection, maintenance needs, and finding qualified tenants.
How to Handle Summer Pests
Save energy, save money.
Did you know that only 31 percent of renters in the United States have renters insurance? Those of us in the real estate industry consider that startlingly low. But why should you consider renters insurance? Read on to find out.
Just about everyone will experience it. That wonderful feeling when your family grows. He may lose a little more hair than you’re used to, he may eat sporadically and he may use the bathroom in a very inopportune place. But he’s all yours.
Are you planning on moving in the near future? Are you looking for potential buyers or renters to move into your house? Is your house ready to be put on the market immediately for the price you believe it is worth? There are a few things you can do to inexpensively and efficiently increase the value of your home. Paint. Fresh paint can give a room a brand new feel, and painting is a very cost-effective strategy to update your home. Stick with neutral colors, because they are appealing to a variety of potential buyers. Add landscape. Increase your curb appeal. While many landscaping options can be expensive, planting flowers for a pop of color can be inexpensive and effective. Also, if you have time, plant a tree. Not only is it aesthetically pleasing, a full-grown tree can also cut down on cooling costs and is beneficial for the environment. Get rid of the popcorn ceiling. Popcorn ceilings are not attractive to everyone and are a design of the past that can easily date your home. The best part is this will be that it’s an easy job you can likely do yourself. Update your bathroom. Whether it’s a fully updated remodel or just a few small changes, fixing up the bathroom is always a bonus for buyers. Replace dated wallpaper with paint or a more neutral wallpaper. Update the faucets. Replace worn caulking. Install an eco-friendly, low-flow toilet and add decorations that are subtle and pleasing to the eye. Replace worn carpet. You want to give your buyer or renter a home that is move-in ready. Make sure that you replace any carpet that is stained, torn or may have been affected by pets. Many buyers also may be looking for a home that doesn’t have carpet, so consider putting in tile, laminate or wood. This is attractive to renters or buyers with allergies and can be more convenient for keeping the house clean as well. If you’re showing your home, keep it CLEAN. Nothing is more unattractive than a cramped, dirty home. Stay up-to-date on any maintenance needs, vacuum your floors and make sure that extra items aren’t sitting around the house in corners cluttering an otherwise open, clean home. If you’re doing major home renovations, start with one room at a time. You don’t have to fix every room at one time. Make a plan and a budget and decide when you’re going to tackle each project. Achieve each timeline goal and try to stay within your budget. That way, you can stay on schedule and make changes to your home that will increase its value substantially. Also, before you start, do your research. Make sure that whatever you’re putting into your home is something that will pay off on the increase rental or resale value. You don’t want to have more in your house than you could ever recoup. Create an open floor plan. Open floor plans are all the rage these days. By taking down a non-weight-bearing wall or opening up an entryway, you can create a home that feels open and larger, even though you aren’t necessarily adding square footage. Let the light in. Whether you add windows (which will be a more costly option) or you add in lights throughout your house, make sure that it is bright. The brighter a space is, the more open it will feel and the more pleased buyers will be with the home. Need to start getting your home ready for the market, whether to sell or lease? Renshaw Rehabs can help with that. Contact us at 901-820-4367.
Remember that $500 deposit you put down when you moved into your new place? Do you want to get that money back now that you’re moving out?
When you rent, however, you don’t own the home and therefore may be limited to what you can do to personalize it. There are ways to add a stylish flare to your home without forfeiting the security deposit. Below are just a few examples. Invest in nice furniture. Furniture is something you can pick up and take with you. It doesn’t matter what kind of home you are living in, you’ll always need furniture. Instead of finding the cheapest couch you can get, invest in one that has good value, looks nicer and will most likely last you a little bit longer, as well. Your furniture tells your guests what you like and reflects your attitude, so make sure you portray that effectively! Temporarily change lighting fixtures. This is an easy thing that will not only add a personal touch but will also boost the overall look of your home. But make sure to save the original lighting fixtures and put them back up in the same shape in which you took them down to make sure you’ll get your deposit back. Paint, paint, paint! Most property management companies or landlords allow tenants to paint the walls any color, as long as they are restored to their original color at the end of the lease. Being able to bring some of your personality into the home is worth a relatively inexpensive can of paint. However, make sure this is okay in advance, and if you can’t paint, find decals that are simple to install and easy to peel off. Hang up pictures and decorations. Most landlords won’t charge you for a few holes from hanging pictures or decorations throughout your home. If they do, consider a temporary hanging solution, like such as Command strips about that ahead of time. Invest in an area rug. You can’t do much about the color of your carpet, but you can add a brightly colored accent rug to introduce a fun pop or to protect the carpet if you are concerned about staining the floor from spills or pets. Drapery can be your best friend. Not only can drapery add a hint of color to an otherwise dull space, it can also make your space look larger. Long drapes can help ‘raise’ the ceiling, making your home look more spacious than it may actually be. Add lighting where it means something. Lighting is one of the most important parts of any space. Let the sunlight in through your windows and place lamps around your rooms. The more light there is, the larger and more open your space will feel. Use open shelving. Again, a few holes from hanging pictures and shelving most likely won’t cost you much (if any) of your security deposit. Install a few shelves and display objects that give your home life and show your personality and interests. If your landlord won’t permit hanging your own shelves or if it may cost you a portion of your security deposit, consider a bookshelf or other piece of furniture that you can take with you when you leave. Before doing anything, always be sure to thoroughly review your lease agreement, as it should spell out any stipulations on decorating or other issues that may affect your security deposit. Have questions about your Renshaw lease? Contact us at 901-820-4367.
Is your closet too small, unorganized or just plain messy? At Renshaw, we’ve got a few tips to help you maximize your closet space without doing any sort of renovation. Two-thirds of your closet should be dedicated to hanging rods. Double up on the rods for maximum hanging space. Hang one rod higher up for longer garments, and another lower for short or foldable items. By doubling up, you’re getting the most out of your space. Keep a container in your closet to store any loose items that may hide in your pockets, such as loose change and receipts. This will avoid clutter if they fall out of your pockets during folding or hanging, and it will keep you from having to dig them out of the washing machine later! Tension rods make great shoe holders. Install a few tension rods to hold your shoes so that they aren’t in an unorganized mess on the floor. It’ll keep your floor clean so you can vacuum, as well as keeping your shoes organized so you can find them more easily. Don’t store things on the floor. The only items that should be stored on your floor are items that are easily moveable, such as suitcases. Everything else, such as shoes, should sit at least one inch off the floor. If you need more storage, use something that is multi-functional. A trunk can store extra items and double as a decorative piece as well as something to sit on, or you can use your empty suitcases to store items while the suitcases aren’t being used. Anything you stack shouldn’t exceed 10 inches in height. Stacks tend to fall over and become unorganized when they exceed 10 inches in height. Also, partition them off so they are sure to stay stacked in neat piles. Add guiding lights to the undersides of shelves. Lighting is one of the most important parts of a closet. If your closet lacks substantial light sources, use battery-powered stick-on lights under shelves to help you better find items. Use your door as a storage area. Install rods on your door to hang small items, such as scarves and gloves so that they don’t clutter your shelves or other hanging rods. Or, buy a liner that has multiple pockets to hold your small items, such as jewelry or undergarments. Over-the-door shoe racks also work well to maximize door space. Utilize your high shelves. Store items you don’t use often on higher shelves so you won’t have to climb up and down as often. When you do need to reach the higher places though, keep a step stool handy so you can easily access those items. Foldable step-stools are great for this purpose. Don’t have a shelf in your closet? They’re easy to build, and they’re great for maximizing space lost near the top of your closet. Similar to pots and pans in the kitchen, hang awkward, underutilized items from the ceiling to keep them up and out of the way. Got any tips that work for you? Tell us in the comments!
