Real Estate
So, you want to be a landlord?
Real estate is still a wealth builder
Being a landlord is a multifaceted role. Not only do you own the property, but also you may decide to manage it yourself.
As part of that process, you must find suitable tenants who can show that they have good credit and can afford the rent, have paid rent on time at other properties, and have kept the places they lived in good repair.
You must determine what the rent should be, handle routine and emergency maintenance, keep track of related finances, and ensure you have the appropriate licenses.
Itās also important to have a thorough understanding of local rental and tenantsā rights laws and homeowner or condominium association rules. And letās not forget compliance with fair housing laws.
Many people find this daunting and opt to hire a real estate agent to, at minimum, determine the rent, market the property, vet the tenants, and complete standardized leases. As with selling houses, leasing compensation is negotiable. Locally, you should expect to pay a minimum of one monthās rent.
In most areas in the DMV you must have a license to rent a home. Often, this requires a visit by a city inspector, correcting any Uniform Building Code violations, remediation of lead paint, and disclosure of potential hazards in the home, along with associated costs.
While some people are comfortable with overseeing a rental property themselves, the Property Management (PM) portion of the real estate industry is there for those who are not. If you are leaving the area, itās even more important to have someone local to take care of your home and your tenants on a day-to-day basis.
PM fees generally run from 8 to 10% of the monthly rent. For that, you get a menu of services that will likely include collecting rent, paying mortgages, assessments, and other bills, vetting new tenants, ensuring the property is properly maintained, and dealing with any legal issues that might arise, such as tenant disputes and evictions.
Itās critical to read your management contract to understand your responsibilities and those of your property manager. Also at issue is whether the company is owed a commission if the tenant they secure ultimately buys the property.
You may be asked to begin with a repair escrow that can be supplemented as needed. After monetary tasks are complete, you will receive any balance due you as the landlord or be asked to supplement your account should you have a deficit.
A standard lease will outline a tenantās maintenance responsibilities, who pays utilities, property access, pet restrictions, termination provisions, and additional paragraphs as may be required by each jurisdiction or agreed upon by the parties.
So now that you have the perfect tenant and management system in place, what happens if you want to sell your property?
In general, if the tenant has a lease, that lease continues upon the sale of the home and security deposits and copies of leases are transferred from you to the next owner at settlement.
In many jurisdictions, even a month-to-month tenant can continue to reside in the property as if she were still under the terms of the original lease as long as she continues to pay rent and does not violate the initial terms.
D.C.ās Tenant Opportunity to Purchase Act (TOPA) has been amended to specify that only residents who are age 62 or older, those who have a disability, and those who signed their lease and began occupancy prior to the spring of 2018 are entitled to first right of refusal in the sale. Of course, a tenant is free to make an offer on the home he lives in along with any other buyers.
If you want your tenants to vacate early or quickly so that you can make repairs, repaint, and stage the home prior to marketing, it may behoove you to offer financial incentives to assist with their move. Itās often a cost of doing business.
More people are looking for homes to live in rather than seeking investment property, so having tenants with a long-term lease who want to remain will likely decrease your buyer pool and, as a result, may affect your ultimate sales price. Investor buyers, however, will be more interested in the monetary return on their investment than glitz and glam. Make sure you have the propertyās rental history available to review.
So, do you want to be a landlord? Maybe. Real estate is still a wealth builder. Just be sure you have sufficient funds available to withstand a few months with no income while you change tenants and always keep a handyman and a landlord/tenant attorney on speed dial.
Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate / @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.
Real Estate
What LGBTQ buyers, sellers need to know about new real estate rules
Regulations are reshaping how transactions are conducted
In recent months, the real estate landscape has undergone significant changes, with new rules and regulations reshaping how transactions are conducted. These changes affect buyers and sellers across the board, but LGBTQ individuals and couples navigating the housing market should be particularly aware of how these updates might impact their decisions and opportunities. At GayRealEstate.com, weāre here to keep you informed and empowered.
1. Transparency in Agent Compensation
One of the most notable changes involves how real estate agents are compensated. New rules aim to increase transparency, requiring agents to clearly disclose their commissions and how they are paid. For LGBTQ buyers and sellers, this means youāll have a better understanding of the financial side of your transaction, making it easier to avoid hidden fees or misunderstandings.
Tip: Make sure your agent explains their compensation structure up front. Working with an LGBTQ-friendly real estate agent through GayRealEstate.com ensures youāre connected with professionals who prioritize clarity and fairness.
2. Contracts Before Home Tours
In some areas, buyers are now required to sign a representation agreement before touring homes. While this adds a layer of formality, it can also help you establish a stronger relationship with your agent and ensure theyāre working in your best interest.
What It Means for LGBTQ Buyers: Choosing an agent who understands your unique needs is critical. Signing a contract ensures that your agent is committed to helping you find a home in a community where youāll feel safe and welcome.
3. New Protections Against Discrimination
Recent policy changes reinforce anti-discrimination measures in housing, which is particularly relevant for LGBTQ individuals. While federal laws like the Fair Housing Act prohibit discrimination based on sexual orientation and gender identity, some states have gone further by implementing additional protections.
How to Navigate: Familiarize yourself with your stateās specific laws, and rely on LGBTQ-friendly agents who are committed to advocating for your rights throughout the transaction process.
4. Market Conditions: Buyers vs. Sellers
The current housing market is in flux, with inventory levels, interest rates, and demand varying widely by region. Sellers may face longer listing times, while buyers could encounter more competitive environments in desirable areas.
5. Mortgage Updates for LGBTQ Couples
Lenders are becoming more inclusive in recognizing diverse family structures, but disparities still exist. Itās essential to work with lenders who understand your unique situation and ensure fair treatment during the mortgage process.
Advice: An LGBTQ-friendly agent can connect you with lenders who are sensitive to your needs and knowledgeable about programs that support equal access to home financing.
Why These Changes Matter
The new rules emphasize fairness, transparency, and accountability ā values that align closely with the mission of GayRealEstate.com. However, navigating these changes requires expert guidance, especially for LGBTQ buyers and sellers who may face additional challenges in the market.
Take Action Today
Buying or selling a home is one of the most significant decisions youāll make, and having the right support can make all the difference. At GayRealEstate.com, we connect LGBTQ buyers and sellers with experienced, LGBTQ-friendly agents who are committed to protecting your rights and helping you achieve your goals.
Whether youāre just starting your real estate journey or ready to make your next move, weāre here to help. Visit GayRealEstate.com to find your perfect agent and get started today.
This article is brought to you by GayRealEstate.com, the nationās largest network of LGBTQ-friendly real estate agents.
Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526.
Real Estate
Your holiday home journey
Real estate decisions often tap into our deeper desires for connection
Thanksgiving and real estate share an essential theme: the importance of home. It is traditionally a time of gratitude, togetherness, and reflection. While its hallmark symbols may include turkey dinners, family gatherings, and autumnal dƩcor, it also invites us to think deeply about our values and who and what we hold dear.
For some people, the family home connotes a place of safety, comfort, and community. For others, visiting with family over the holiday can be a contentious and stressful ordeal best avoided. Countless of my friends have severed toxic relationships that can rival an exploding, deep-fried turkey. They have opted instead for dining out or hosting a gathering of food and football with like-minded people.
During Thanksgiving, the idea of āhomeā becomes particularly poignant. It is more than just a physical structure; itās where people gather, memories are made, and traditions are passed down. For those involved in real estate ā whether as professionals or as individuals embroiled in the market ā this emotional dimension of home is a driving force.
When buying a house, itās not just about square footage or the number of bedrooms. It’s about envisioning a Thanksgiving dinner in the dining room, imagining children playing in the backyard, or hosting friends in the cozy living space. Real estate decisions often tap into our deeper desires for connection, stability, and legacy ā values closely tied to the spirit of Thanksgiving.
Thanksgiving falls in the quieter part of the real estate calendar, with spring and summer being the traditionally hot seasons for buying and selling. Yet, for those who choose to list their homes in November, the holiday offers unique opportunities. Sellers can use Thanksgivingās warm, inviting atmosphere to their advantage, staging homes with seasonal touches like autumn wreaths, a cornucopia of fruits and nuts, the sparkle of a dining room chandelier, and the scent of freshly baked pies.
A well-decorated home during this time can evoke an emotional connection with potential buyers. A cozy environment can help them imagine spending their future holidays in that very space. Additionally, homes listed during the Thanksgiving season often face less competition, as fewer properties are on the market. This can lead to more serious offers from motivated buyers.
For buyers, Thanksgiving can function as a reminder of why they are on the hunt for a new home in the first place. Perhaps they are looking for a bigger space for a growing family. They may be downsizing to retire or to simplify life. They might be looking for home to accommodate both children and aging parents simultaneously. The holiday season underscores the importance of finding a home that aligns with lifestyle needs and future goals.
In our tight real estate market, buyers still face challenges such as limited inventory and higher interest rates; however, Thanksgiving encourages a shift in perspective. Itās a time to focus on gratitude for what is within reach ā whether itās finding a starter home, securing a dream property, or taking incremental steps toward long-term, financial goals.
Interestingly, Thanksgiving weekend has become an increasingly popular time for real estate research. Families can gather around the table and begin discussing the future, including moving to a new city, upgrading their home, or purchasing an investment property. Digital tools like web searches and virtual tours can help buyers and sellers stay connected to the real estate market without disrupting their Thanksgiving traditions.
Whether you are buying or selling, Thanksgiving offers an opportunity to reflect on the role of gratitude in real estate. For buyers, itās about being thankful for the chance to find a home that meets their needs, even if the journey is challenging. For sellers, itās a moment to appreciate the memories made in a home while looking forward to new opportunities.
For real estate agents and other industry professionals, Thanksgiving is a time to express gratitude to clients and colleagues, build stronger relationships, and highlight the human aspect of a business often driven by transactions alone.
If you are staying put this Thanksgiving, you have a chance to celebrate your current home, no matter its size or condition. Simple gestures like decorating with fall colors, rearranging furniture for a cozy feel, or preparing a special meal can deepen your connection to your space. Inviting neighbors, friends, or family to share in the festivities can reinforce the sense of community that makes a house a home.
Whether itās the home you currently have, the one youāre searching for, or the one you are leaving behind, each holds a unique place in your life story. Take stock of the journey so far, recognize the progress made, and look forward to the possibilities ahead.
Real Estate
Who are the people involved in a real estate transaction?
Lenders, agents, inspectors, and more play a role
When buying a house for the first time, people may wonder if their life is going to be like what you see on HGTV or another TV show. Yes, some real estate agents drive nice cars, put photos on social media of beautiful countertops, luscious landscaping, stunning backsplashes, high-end appliances with bespoke details, and price tags that seem like they belong on a television show ā stuff that āvision boardsā are made of.
Real estate can be sexy. There is also the experience of what I call, āthe everyday transaction.ā This is the situation where someone may be the first in their family or friend group to buy a property. Or maybe this is the last one of their friends to buy a home. It could be the person that just got a notice from their apartment community that their rent was going up by $500 a month next year, and they decided it was time to start putting this inevitable amount of money into an investment each month. As my previous broker calls it, homeownership is a āforced savings plan.ā It can be hard to force oneself to save at times, but your rent payment is going into equity. At some point, you can sell the investment and get back the money you put into it. Rent that is $2,400 a month can easily turn into over $115,000 during one presidential term.
The cast of characters in a real estate transaction includes:
ā¢ The buyer agent and the sellerās agent (if the house is for sale by owner, then no seller agent)
ā¢ The lender (mortgage officer) and their team
ā¢ The title company (a company of attorneys and staff to help with the legal aspects of transferring ownership, recording the deed with the municipality or state and transferring water utilities, paying off the old mortgage with the proceeds from the sale, etc.)
ā¢ Any employees of a city or county that might be brought in (e.g. a down payment assistance loan funded by a municipality)
ā¢ A home inspector (if an inspection is requested by a buyer)
ā¢ Any contractors that are brought in for estimates for repairs or work projects.
These are the people that are brought into the transaction to help bring it to completion. A good agent usually has recommendations on title companies and attorneys, home inspectors, lenders, may have contacts with city or county departments for processing permits, etc. and will utilize the network they have built over the years to help coordinate a smooth transaction (as smooth as possible) and result in a happy seller and a happy buyer.
Who you work with matters. If you have more questions about this, please do not hesitate to ask. Yes, real estate CAN be sexy, but you also want competent people working on your behalf, who know how to navigate the process smoothly.
JosephĀ HudsonĀ is a referral agent with Metro Referrals. Reach him atĀ [email protected]Ā or 703-587-0597.
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