Age 50+ ‘Real Estate Resources’

REALTORS® who carry the Seniors Real Estate Specialist® (SRES®) designation are specially qualified to address the real estate needs of those age 50+. SRES® designees recognize that a home often is the largest and most precious asset that baby boomers and seniors have.

Thus, SRES® designees bring a unique approach to each transaction and interaction with clients. They not only offer a deep knowledge of real estate and the local and economic issues shaping market trends, but they’re also educated on issues of particular concern to aged 50+ clients.

Their special skills help such clients look at the big picture, factoring in financial issues and current and future care needs, to ensure that each client arrives at the best decision about selling a property and finding a new home.

Ready to buy, sell, rent or relocate? Find an SRES® designee near you to get started! www.seniorsrealestate.com

Underwater Owners try “Landlord Role”

Some home owners may find they need to relocate for a job, but can’t afford to sell their home yet so they opt to put it up for rent. But jumping into the landlord role is not always easy, particularly for novices.

“When the market dropped, many people emerged with a life event prompting their need to move,” Todd Allen, a real estate professional in Northern Virginia, told CNBC. “Fortunately for many in the D.C. metro area with higher incomes and lending guidelines softening a little, individuals and families were able to qualify for the purchase of a second home, but their new landlord status did not necessarily generate positive income—often they incur a loss. Furthermore, many of my own clients have learned many other downfalls in being a landlord.”

The growing number of “accidental landlords” is one of the reasons behind today’s low inventory issues, real estate professionals say. “Usually a buyer is also a seller, making the transaction a wash in terms of inventory, but if the buyer is not a seller, and instead becomes a landlord, inventory takes a negative hit,” CNBC reports. Have you seen this trend emerging near you?

Source: “Underwater homeowners find they’ve become accidental landlords,” CNBC.com (May 24, 2013)

Foreclosures Contribute to Rental Boom

Foreclosed home owners are contributing to a boom in the rental market. Nearly half of property managers recently surveyed — or 47 percent — say they’re seeing an increase in applicants moving to rental units from foreclosed properties.

But foreclosed home owners may not find big deals in the rental market. As vacancies shrink, many property managers say they have increased prices on their rental units in the last year, according to a new survey of 1,252 property managers across the country by TransUnion, which provides rental screening solutions to both large property management companies and independent landlords.

“The majority of respondents said that they are not having problems finding residents even with the increases,” says Mike Mauseth, vice president in TransUnion’s rental screening business unit.

Rentals are in high demand: Nearly 90 percent of survey respondents report having a 10 percent or less vacancy rate.

Despite the boom in the rental market, property managers say that “finding reliable tenants at an optimal price point is paramount for this industry,” Mauseth says. “A reliable tenant ensures property managers are both solvent and profitable. Conversely, an unreliable tenant can cost property managers thousands of dollars in lost rent and property damages.”

Source: “TransUnion National Rental Survey Finds Large Property Managers Able to Raise Rates and Attract Reliable Tenants,” TransUnion (June 24, 2011) 

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

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More Homes Become Rentals, “Census Says”

Nearly 35 percent of occupied homes were rented in 2010, which is an increase of 33.8 percent from 2000, according to a USA Today analysis of U.S. Census data of more than 500 midsize and large cities.

Since the peak of the housing market in 2006, the number of renter households has grown–on average, by 692,000 a year–while the number of owner households is shrinking–on average, by 201,000 a year, according to the Census data.

In some places, the increase in the percentage of homes that are rented rather than owned has been even more evident. For example, Irvine, Calif., went from about 40 percent of occupied homes rented in 2000 to 49.8 percent in 2010; Philadelphia increased from 40.7 percent to 45.9 percent; and Birmingham, Ala., increased from 46.3 percent to 50.7 percent, the USA Today reports.

View a chart at USA Today to see the owner-to-tenant breakdown of all 500 cities in the analysis.

Source: “More Than 500 Cities See More Homes Become Rentals,” USA Today (May 31, 2011)   

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

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Landlords Say They’ll Rent to the Foreclosed!

Eighty-two percent of independent landlords say they would rent to someone who had lost a home in foreclosure, if the applicant had otherwise good credit, according to a new survey by The National Association of Independent Landlords.

“Landlords typically won’t rent to applicants with poor credit–and a foreclosure will absolutely slam someone’s scores,” says Tracey Benson, president of The National Association of Independent Landlords. “The exception is when they see people who have paid their bills their whole life, but lost their job, can’t meet their mortgage and must hand their keys back to the bank.”

Benson says that applicants with a foreclosure aren’t necessarily bad credit risks. “Often, they lost their jobs and homes through no fault of their own,” she says.

As such, “because of this abundance of defaults, there is a greater need for rental property, so landlords should carefully vet applicants,” Benson says, adding that landlords should do a thorough background check to determine whether defaulting applicants were a victim to financial woes or following a lifelong trend of not paying bills.

Source: “Most Landlords Say They Would Rent to People Who Lost Homes to Foreclosure, The National Association of Independent Landlords Finds,” PRNewswire (April 20, 2011) 

Other articles relating to the Sacramento and Placerville, California regions at: www.sierraproperties.com

 

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