Indonesian Property Investment Guide

Investors spend hundreds and even thousand on "motivation" and education for real estate purchases. Hours with agents combing property profiles, data and formulations for ROI. Weeks even months evaluating "deals". And in the climate of today, upwards of 45 days in escrow if using traditional financing methods. Yet when it comes to tenant selection it is a few questions and a "how fast can I get a tenant" approach. I'm in the business of minimizing vacancy so I recognize and understand the mentality.

Most don't realize tenant selection and screening as a skill or art. By making the right selection initially it can make everything that happens from that point forward much easier to deal with. Most problems with the tenant actually began prior to giving them the keys because they handle the presentation and viewing wrong.

You must first eliminate and then investigate. With the initial phone call don't just jump the gun on getting them inside the property. Ask questions based on needs, desires and direction. Identify the motivation for moving, selection of property and area. So unless they lie on the phone or leave "something" out, you can attempt to eliminate and then investigate. During the initial elimination period you can ask questions [with the proper approach] about income, credit, evictions and convictions.

Be prepared to say NO. Be prepared to stick to the parameters set to qualify and disqualify. Be prepared to let the "cash in hand" walk away if it is not a right fit. I have always practiced the belief that the cost of vacancy will be dwarfed by the cost of bad tenancy. Be willing to take the time to do the diligence to thoroughly investigate the candidate(s). Take nothing for granted or at "face value". Remember that the mindset [perception] of this tenancy is viewed differently from tenant to landlord.

Before the lease is signed the ball is in your court. As the pen hits the paper, it is now a matter of process for alterations or to solve problems. So again take the time to do the investigation. Don't loose site of the "big picture" for the cash in hand and a {wrong} tenant in place.

A couple of days or weeks longer on tenant selection will go a long way towards many smooth months ahead.
Tenant selection is more than just an applied process, proper tenant selection is a skill. One that will come with great worth for the years ahead in our real estate rental markets.

By Jason Rush

Basement apartments are a great way for renters to gain cheep, affordable space in very hip urban cities like Boston and New York City. Renting basement areas out is a great way for owners and landlords to make storage space usable with a simple basement-refinishing project. With the rise of these "basement conversion" apartments, cities and towns are now enforcing laws regarding habitable space, and basement-waterproofing companies are urging them to listen.

An apartment in an exciting urban area is great to have, but if the apartment you're buying was constructed prematurely and not brought up to code, your apartment can be a very unsafe place for you and your family.

When you have your basement inspected before finishing make sure that you have enough head height to accommodate refinishing in the first place. A full head height basement ranges (by state) between 7'-9'. If you install a drop ceiling or a rigid board ceiling, your "after head height" has to allow for access to pipes and still allow for a person to stand with no obstructions. Each town has different ordinances so check with your local building inspectors before starting construction.

Egress windows are required by law in many states to be installed if the basement is going to be used as a living area. Seeing as the goal of the homeowner is to have another person living down there, this should be the first project to be tackled. This window will give a second emergency exit in order to escape the building encase of a flood or of a fire. They must be large enough for a grown man to climb out of, and it must have direct access to a paved area or yard. Not only is this a mandatory safety feature but also it's also nice to allow natural light into a basement.

Mandate a full basement moisture control system in your basement. By doing this you can avoid leaks, musty, moldy conditions and control the amount of moisture present in the space. Many renters are turned off by odors, mold, and some with medical conditions will skip out on your space if it's not properly pre-conditioned before you finish.

A basement waterproofing or moisture control system will fit neatly behind your finished walls, protecting the studs, the walls and most importantly the insulation. There's nothing worse then spending thousands of dollars for a basement-finishing project that goes bust after a flood or a tiny leak. As the homeowner your money is precious, and as a renter your health is important. By combining the protective qualities of a moisture control system with the enhancing and usable space options of a basement finishing design, not only can you make the space healthy, but you can also increase your usable space and help it to be the perfect living area for a new family.

Finding a renter in Boise is easier than you think. Many property owners try to do their own management and I do not recommend that. From my own personal experience, each time I have directly managed a property that I owned, I was taken advantage of by the tenants. A good property manager does several things to protect the property owner from being taken advantage of, and is something you should consider for the following reasons.

A good property manager will screen prospective renters and filter them according to rent history, background history and credit score. Keep in mind that each of those reports will cost money but may be worth it when placing someone in a real estate investment you own. The reason that the property manager will look into the rent history of the renter is to establish a consistent record of payment of rent, and maintaining the property. If a renter doesn't maintain the lawn or keep the house up as they should, that is important information for a property owner to have. The background history of an applicant is important because if they have a history of vandalism or some kinds of violent crime, the property owner has the right to decline their application. The credit score comes into play just as a character validation. If the applicant has the history of keeping up their bills their credit report will indicate that.

A good property manager will may also prevent the homeowner from getting sued. There are many laws surrounding rental rights and they range from race discrimination all the way to not accommodating the handicapped. lawsuits generally arise from a lack of communication by either party and property managers are bound to keep up on the laws and regulations in that industry. As a property own, you may not like the fact that the person works as a bouncer at a strip club, but the law says you cannot discriminate based on their source of employment, as long as it is regular.

Property manager's also have significant experience in dealing with renters and may know how to negotiate the property owner out of a tight situation. An example of this, in one of my rentals I had mold develop within the walls. The renters found out about it and immediately started going to the hospital and requested that I pay their medical bills. My property manager contacted them and said that since they had not paid their rent, they should take this months rent and find a safer place to live. This allowed me to have my rental vacated, so I could do the repairs, without putting my renters in an unhealthy situation. As a property owner I may have never considered this option and simply paid the hospital bills without reaching a point of resolution before it was too late.

Property managers essentially function as a protective layer between the property owner and the renter. If the renter can get directly to you, the potential to manipulate you increases tremendously. With the property manager as a buffer, none of the excuses and traumatic events get to anyone who will bow under the pressure. It may sound heartless, but they really can save your bacon, as well as your wallet.

By Gavin King