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So, you want to be a landlord?

Real estate is still a wealth builder

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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. 

Itā€™s also important to have a thorough understanding of local rental and tenantsā€™ rights laws and homeowner or condominium association rules. And letā€™s 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 monthā€™s 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, itā€™s 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. 

Itā€™s 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 tenantā€™s 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.ā€™s 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. Itā€™s 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 propertyā€™s 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.

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Real Estate

Summer means time for annual maintenance

ā€˜Gonna turn this house around somehowā€™

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Spring and summer mean itā€™s time to freshen up your landscaping and curb appeal.

Itā€™s almost summer! The last days of school are here, people are getting ready to wear their swimsuits again, and suddenly BBQ sauce is front and center on all the aisles at the grocery store. What does that mean for all the homeowners out there? It means a bit of yearly maintenance.  

Summer maintenance checklist:

  • Check gutters and clean downspouts. The summer storms can knock a lot of branches and leaves around.
  • Have the HVAC serviced if you havenā€™t already.Ā  A good rule of thumb is after winter, and again after summer.Ā 
  • Itā€™s time to trim back bushes and trees away from power lines.Ā 
  • Wash windows and replace the window screens.
  • Reverse the ceiling fans so that it pushes the cool air downward.Ā  You want them to spin counter-clockwise.
  • Clean the garbage disposal and the dishwasher.Ā  You can add a cup or two of vinegar to the dishwasher and run a low wash cycle. Ā 
  • Clean baseboards.
  • Test smoke and carbon monoxide detectors ā€“ replace batteries as needed.
  • Check outdoor hoses and appliance hoses ā€“ refrigerators, dishwashers, etc. for any leaks or cracks. Ā 
  • Freshen up your yard, porch or deck spaces. A quick trip to a hardware or a garden center can help you liven up any outdoor space and get it ready for entertaining.Ā  Donā€™t forget the citronella candles and bug spray.
  • Power wash decks and driveways.
  • Clean and scrub any grills. Check any hoses and connections for gas grills. Ā 
  • Get a dehumidifier for any musty basement spaces, clean it up and plug it in.
  • Check seals on washers and dryers, and wipe down with an all-purpose cleaner.

Spending a little time and energy on your home – one of the biggest investments you will make, can help you to improve its resale value and optimize the enjoyment of your purchase.  Spring and summer can also be time to tackle those larger projects such as cleaning out a garage, a closet, or a spare bedroom.  

As someone who just moved after 10 years in the same building last year, I can speak to the level of freedom one feels after taking old appliances to Goodwill, finally selling that table or those chairs online, and hauling out bags and bags of trash. Do yourself a favor and clean it all up. You will be so happy you did when itā€™s finally done, and it can give you a sense of new beginnings.  

How might you use that extra space after you clean it up? Who knows, thereā€™s only one way to find out. Need a little motivation to get all these projects done?  Donā€™t forget to find your favorite summer playlist, or even put on a Gay Pride Playlist. You could even recreate your favorite scene from ā€œSaltburnā€ and dance around naked in your newly cleaned home when you are done. 

Joseph Hudson is a referral agent with Metro Referrals. Reach him at [email protected] or 703-587-0597.

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Real Estate

What property should I purchase if Iā€™m not sure how long Iā€™ll be in D.C.?

Row homes, English basements and more options abound

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D.C. offers an array of properties no matter how long you plan to live here.

Great question! If you are looking at real estate as an investment ā€“ two great property types to look at would be a smaller row home and also a row home that has an English basement. Some property types that you might want to stay away from would be a condo or a co-op unit. Letā€™s take a look at why these properties would be good and bad:

Smaller Row Home

Row homes are a great investment for many reasons. You can often find smaller two-bedroom row homes in the same price point as those of a two-bedroom condo, which might be seen as a ā€œcondo alternativeā€ and afford you much more freedom. There are no condo associations or home owner associations that you must belong to so this keeps your monthly carrying costs on the lower end and you are allowed to make more independent decisions. For example, if you wanted to paint the house purple – in most cases you would be allowed to. If you wanted to change the color of the front door or put shutters on the windows ā€“ you would be allowed to. This is usually not the case with condo or co-ops. 

When it comes to the rental market ā€“ similarly renters like the independence of privacy in a home and not being among many other people. The luxury of perhaps direct off-street parking, outdoor space or even just more space at the same rental amount that a two bedroom condo rent would be ā€“ this is more appealing for a renter and would likely rent faster than that of a condo or co-op. For this model – you would obviously need to move out before you could take advantage of the investment of this type of real estate.

A row home with an English basement 

With this type of real estate you can immediately begin receiving income after your purchase. You can occupy the upstairs of the row home, which is usually the larger portion of the home, or you could even occupy the basement, which is usually the 1-2 bedroom smaller portion of the home and receive rental income for the other half of the home. This can be in the way of a yearly traditional tenant or in the manner of short-term rentals (check with the most recent STR policies within the District). With this model, you stand to make even more of a return on your investment upon your move out of the home as you can rent the entire home or you can rent the top unit and basement unit independently to gross a larger amount of income. It is important to note that it is never advised to purchase a row home unless you can fully afford it WITHOUT the idea of accepting additional rental income to offset the mortgage cost.

These two options listed above are the most typical found within the District because they are fee simple, standalone pieces of real estate and are not within a condo association, HOA, or a co-op with governing documents that tell you what you can and cannot do which makes row homes an attractive type of real estate for a long-term hold.

When looking at types of properties that you might want to stay away from ā€“ condos and co-ops come to mind and I say this with a caveat. You can surely purchase these types of real estate but must first understand the inā€™s and outā€™s of their governing documents. Condos are bound by the governing condominium documents which will tell you for how long your lease must be, a minimum of lease days, you can only rent after you have lived in the residence for a number of years, likely will stipulate no transient housing ā€“ which means no short term rentals. It could also quite possibly say that you can only rent for a specific amount of time and lastly it will also stipulate that only a specific amount of people can rent at one time in order to stay below the regulated lending requirements set forth by Fannie and Freddie Mac. Similarly, Co-ops are even more strict ā€“ they can tell you that you are just not able to rent at all or if you can you can only do so for a specific number of years and then you are required to sell or return back to the unit as your primary residence. 

As you can see, when it comes to condos and co-ops there are more specific and stringent bylaws that owners must agree to and follow that limit or even outlaw your ability to rent your piece of real estate. When you purchase a row home ā€“ there are no regulations on what you can and cannot do regarding rentals (outside of the short-term regulations within the District).

When looking for a piece of real estate in the District it is important to think through how long you could possibly wish to hold onto this property and what the future holds. If you think this is a long-term hold then you might consider a row home option ā€“ again, you can find a smaller two-bedroom row home that amounts to that price similar to a two-bedroom condo and would afford you a more flexible lifestyle. Itā€™s important to work with a real estate agent to ensure that they guide you in this process and help answer any questions you might have. Itā€™s also always advised to speak directly to a short-term rental specialist should you wish to go down that route as they will truly understand the inā€™s and outā€™s of that marketplace.

All in all, there are specific property types that work for everyone and within the District we have a plethora of options for everyone.

Justin Noble is a Realtor with Sothebyā€™s International Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin provides white glove service at every price point. Reach him at 202-503-4243,Ā  [email protected] or BurnsandNoble.com.

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Real Estate

The rise of virtual home tours

Adapting to changing consumer preferences in spring real estate

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Looking for a home? Virtual tours hold special benefits for queer buyers.

In today’s dynamic real estate market, the spring season brings not only blooming flowers but also a surge of activity as buyers and sellers alike prepare to make their moves. However, in recent years, there’s been a notable shift in how consumers prefer to explore potential homes: the rise of virtual tours. 

For the LGBTQ community, these virtual experiences offer more than just convenience; they provide accessibility, safety, and inclusivity in the home buying process. 

Gone are the days of spending weekends driving from one open house to another – unless thatā€™s your thing of course, only to find that the property doesn’t quite match expectations. With virtual tours, you can explore every corner of a home from the comfort of your own space – find something interesting? Schedule a showing with any LGBTQ Realtor at GayRealEstate.com.

This is particularly significant for LGBTQ individuals, who may face unique challenges or concerns when attending in-person showings. Whether it’s the ability to discreetly view properties without fear of discrimination or the convenience of touring homes located in LGBTQ-friendly neighborhoods across the country, virtual tours offer a sense of empowerment and control in the home buying process.

Moreover, virtual tours cater to the diverse needs of the LGBTQ community. For couples or families with busy schedules or those living in different cities or states, these digital walkthroughs provide a convenient way to view properties together without the need for extensive travel. Additionally, for individuals who may be exploring their gender identity or transitioning, virtual tours offer a low-pressure environment to explore potential living spaces without the added stress of in-person interactions.

At GayRealEstate.com, we understand the importance of adapting to changing consumer preferences and leveraging technology to better serve our community. That’s why our agents offer an extensive selection of virtual tours for LGBTQ individuals and allies alike – visit our website, choose an agent and within minutes youā€™ll have access to the Multiple Listing Service (MLS) via their website.

From cozy condominiums in bustling urban centers to sprawling estates in picturesque suburbs, virtual tours showcase a wide range of properties tailored to diverse tastes and lifestyles.

In addition to virtual tours, GayRealEstate.com provides comprehensive resources and support to guide LGBTQ buyers and sellers through every step of the real estate journey. Our network of LGBTQ-friendly agents is committed to providing personalized service, advocacy, and representation to ensure that all individuals feel respected, valued, and empowered throughout the process. Plus, we are happy to provide a free relocation kit to any city in the USA or Canada if you are a home buyer.

As we embrace the spring season and all the opportunities it brings in the real estate market, let’s also celebrate the power of virtual tours to revolutionize the way we find and experience our future homes. Whether you’re searching for your first apartment, forever home, or investment property, GayRealEstate.com is here to help you navigate the exciting world of real estate with confidence, pride, and inclusivity.

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at [email protected].

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