Investors: How to Avoid Evictions

July 28, 2006

By Guest Author Adam Smith

Managing an investment property can be rewarding in a variety of ways. Most investment property owners derive great satisfaction from making improvements to their investment property and offering suitable living conditions at an affordable price. It is also rewarding to make a profit on a business venture by renting out a single family dwelling and earning equity in the investment property as someone else foots the mortgage payment.

However, there is one particular drawback to renting out an investment property that you should be aware of. From time to time you may run in to a problem tenant that falls behind on the payments or just doesn’t pay the rent at all, forcing you to perform an eviction. There are a couple of things you can do to avoid an eviction.

To begin with, before you rent out the property to a potential tenant make sure you do your due diligence on the tenant. You should ask the tenant to fill out an application that includes references of past landlords. This will allow you to do a little bit of investigative work which will go a long way in avoiding an eviction. Call up the past landlords and find out what kind of tenant your applicant was. Did they pay their rent on time? If they were late with their payment, why? Did they cause any problems? Are they the kind of tenant they would welcome back?

Past history often foreshadows future behavior. Thus if the tenant was an admirable renter before then chances are they won’t cause you any problems. But if they have a history of late payments, excessive complaints, or problematic behavior then it is best you look for another tenant. Taking on a tenant that has caused problems for other landlords in the past will only lead you down the road to eviction. And remember you are doing this due diligence in order to avoid the headache of eviction so make sure you are thorough and don’t skip any corners.

If you have done your due diligence then chances are you won’t run into any problems with your new tenant. However, once you do have a tenant there are a couple of things you can do to ensure there isn’t an eviction in the foreseeable future. First set clear guidelines that are clearly outlined in the lease agreement . Make sure the tenant knows when the rent is due, how long the grace period is, and what the penalty is for paying late. Don’t let the tenant get into the habit of paying late. If you don’t enforce your contract now it will be that much harder to enforce it later. The lease agreement is a binding contract and should be treated as such.

You should also treat your tenant with respect and respond to their repair requests in a timely manner. If you maintain a professional relationship with your tenant then many small problems that could potentially lead to larger problems can be squashed immediately. If you do your best to manage the investment property professionally and abide by the terms of the lease agreement then avoiding the unpleasant eviction process should be a piece of cake.

Adam Smith is an internet marketer specializing in affiliate program management for 10Xmarketing.com.

About the Author

Adam Smith,
adam10xmarketing@gmail.com
More Details about eviction here. Adam Smith is an client account specialist with http://www.10xMarketing.com - More Visitors. More Buyers. More Revenue.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
Home Buying Secrets

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How to Get an Excellent Credit Score

July 17, 2006

By guest author JP Burkhart

The time to start being concerned about your credit score isn’t when you are about to apply for credit. At that point, there is nothing you can do to change your current score. Your concern and efforts to ensure that you have an excellent credit score should be an ongoing process.

If you haven’t been doing what is necessary to ensure a high score, now is the time to start. Here are some tips on how to get an excellent credit score.

  • Get a copy of your credit report and make sure that it is accurate. Inaccurate information can harm your score. Get rid of any information that is wrong. This one step can improve your credit score dramatically.
  • Get credit only when you need it. Don’t take out lines of credit just because you can or “just in case.”
  • When you do you use credit, always make your payments on time. This may be the most important factor of all.
  • Keep the balances on your available credit low. It is preferable to only be using about 25% of your available credit. Part of your score is based on the ratio of your debt to your credit limit. By keeping your balances low, you turn this into a favorable ratio. For this reason, do not close out old, unused credit accounts. Accounts with a zero balance will help improve the ratio.
  • Part of your credit score is based on how often your credit report is accessed. Keep the number of times it is accessed to a minimum.
  • Have a variety of types of debt. A mixture of fixed payment installment loans (mortgage, automobile, student loan) and revolving lines of credit (home equity, credit card) is favorable. It shows lenders that you can handle both fixed payments and variable payments at the same time.
  • Educate yourself on what a credit score is and how it is determined; this may help you take steps to make sure that your score is favorable.
  • Work diligently and patiently to improve your score. It may take time, but it will happen.

About the Author

JP Burkhart recommends that you visit excellent credit score for more information.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

How to Improve Your FICO

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Who Qualifies for Reverse Mortgages?

July 7, 2006

By Guest Authors Charles and Susan Truett

Reverse mortgages can be a great solution for seniors who wish to remain in their home but are having difficulty making their monthly payments and meeting other financial obligations. If you are over age 62 and own your own home, the bank will actually pay you money so you can stay in your home, rather than the other way around. It is important to collect as much reverse mortgage information as possible before deciding whether to take out the loan.

Anyone is eligible for a reverse mortgage loan, even if they have no income. Your home must be a single family residence in a one to four unit dwelling, a condominium or some type of manufactured home. Cooperatives and most mobile homes are not eligible. The home must be at least one year old and you have to first meet with an authorized counselor.

You can obtain the loan as a lump sum payment, a fixed monthly amount or as a line of credit that you use whenever you need it. The money can be used for just about any purpose. This can include paying property taxes or medical bills, home repairs and improvements, paying off credit cards or just daily living expenses. The amount of money you receive depends upon your age, the amount of equity in the home, its appraised value and current interest rates. The reverse mortgage loan does not have to be repaid until you sell the home, permanently move out, or pass away. Your loan could also become due if you allow the property to deteriorate, you fail to pay property taxes or hazard insurance, or if the last surviving borrower does not occupy the home for 12 months in a row due to illness.

There are some fees involved with a reverse mortgage loan, similar to those you would incur with a regular mortgage. These include origination fees which cover the lenders operating expenses and are currently capped at the greater of $2,000 or 2% of the maximum FHA loan limit. In addition you will be required to take out mortgage insurance and pay an appraisal fee which ranges between $300 - $400. Other closing costs include fees for a credit report (usually under $20), flood certification, closing and title search, document preparation, recording, courier, pest inspection and a land survey. In addition, a monthly service set-aside fee of $30-35 per month will be charged.

When you meet with your counselor, you should be able to obtain all the reverse mortgage information you require before you make your final decision. It will be nice to have the option of staying in your own home if that is what you desire.

For more information please visit our website dedicated to seniors about the pros and cons of a Reverse Mortgage. You can read more on our Reverse Mortgage Information Website.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

Fixed Rate or ARM?

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