Here's a great reason to hire a professional property management company.  We're asked on a monthly basis to accept payments directly from a tenant when their Section 8 voucher won't meet the rent amount.  Even owners have asked us to do this, most because they are simply unaware of housing guidelines.  Of course, these extra payments are forbidden, and must be done on the sly, without Section 8's knowledge.  Without exception our answer has always been and always will be "NO". From New York, here's a text book example of why you should follow the rules.  Niagra Capital, a corporation whose president was a swindler in the 1st degree, accepted payments directly from Section 8 tenants without the housing authorities' knowledge, and now they're paying the price- big time.   FROM THE OFFICE OF THE NEW YORK ATTORNEY GENERAL: "This week, Niagara Capital pled guilty in State Supreme Court to…

For those who have the double misfortune of owning a home with no tenant and losses for the year...can you claim rental losses if it wasn't actually rented?   Short answer- YES From a NARPM Affiliate: "A lack of tenants won't nix a write-off of rental losses, the tax court says. After buying a home, the owner moved away and rented it out for years.  After her last tenant moved out, she was unable to rent it despite her best efforts. An IRS examiner denied her rental losses because of the lack of rental income, but the tax court OK'd her rental losses for the two years after her last tenant left. In the Court's view, the property was still held for income-producing purposes and she actively participated in the rental activity. (Bonds, TC Summ. Op. 2011-122) As long as an owner is actively trying to get a tenant into the…

Your mother always told you not to read straight from your notes when giving a speech, because it makes people fall asleep. She also told you not to fill your blogging with dull stats and boring quotes, because it will make your audience hate you. My apologies to your mother and you, because this is a combo stat / quote post.   “About 76 percent of home owners believe their home is worth more than their agent’s recommended listing price...” “On the other hand, 68 percent of home buyers say homes are overpriced” Source- Daily Real Estate News | Wednesday, December 07, 2011   This reminds me of the statistic you've heard where the majority of people think they are "above average" drivers.  Likewise, it's now a fact that 3 out of 4 people believe they know more about real estate values than the professionals they hire.  "Sorry dear Realtor,…

Occasionally it strikes me that a great deal of the time we spend working is solely because people don't tell the truth!  I imagine that the mountain of extra, burdensome, paper-heavy work that lying causes is second only to the fact that humans have terrible memories.  I have no stats to back this up, but as we print, sort, and file a forest of thinly sliced trees each day I see how much time is wasted keeping people honest. Here I go, trying to overcome my previously noted bad memory in order to recount these stories accurately... A real estate agent brought in an lady's application for a fairly nice property.  He had told me beforehand that she was a good tenant with a few bumps on her credit from an identity theft incident a year or so back.  Indeed, the lady had good income, stable work history, no criminal…

A Few Interesting Stats   http://realtormag.realtor.org/sales-and-marketing/feature/article/2011/10/generate-revenue-rentals

Here's an article describing Morgan Stanley's interest in purchasing single family homes for investment. I don't agree with all of the assertions.  I find it hard to believe that the move towards renting will be a permanent fundamental shift, though it may be a fairly long term shift.  We've learned the hard way that the largest investment institutions are frequently fallible in their predictions.  Nevertheless, the thought of billions flowing into the SFH rental market is worth noting. http://speakingofrealestate.blogs.realtor.org/2011/10/31/morgan-stanley-u-s-becoming-rentership-society/

"Keep an honest man honest with a lock" is a quote that echoes in my head every time I put a padlock on an AC cage.  I'd like to add to that quote- "Keep an honest man honest with a lock...or a $20"  Please read: Donald Peppers, (who is an outstanding property manager, by the way), loves to regale our office with war stories from his long career in property management.  One day he came into my office with a big smile on his face, as usual, and told me about how the day was going.  The smile dropped from his face, (not usual), when he told me that a house we manage had been vandalized, with most of the copper plumbing stolen.  It seems like no amount of locks or security will keep a determined thieve from his goal, and we tossed around ideas to prevent this particular house…

From an online article posted in RealtorMag   Incentives Attract Buyers, But Do They Close Deals? Daily Real Estate News | Monday, October 03, 2011 Real estate professionals say incentives to sweeten a real estate deal are certainly good ways to generate buzz about a property, but the asking price is the real key to getting a home sold.  Incentives to get home buyers’ attention have gotten lavish. Recent examples include a new BMW, season tickets to football games, a boat for waterfront properties, $3,000 gift cards at interior design studios, and even the home owners’ pet.  "We're in a price war and a beauty contest," Tony Vehon, broker and owner of Weichert Realtors Lake Realty in Gold Canyon, Ariz., told Fox Business News. "Every home has to be priced right and look perfect. After that, a special incentive might drive traffic, especially if you offer something that grabs attention,…