At Property Management Systems (Rent Portland Homes), we specialize in using the Internet to generate the most attention and interest in our client’s homes so that we can get those properties rented as quickly as possible.
In this article we will describe how our marketing process works and what online tools we use for renting our clients properties.
We “Bring the Home to The Renter”
Thanks to the Internet, we’re essentially able to “bring the home to the renter”. This means that a renter can use Instagram to view pictures of one of the properties that we manage online and YouTube to view video walk throughs of properties so that they can walk through a Portland Oregon Rental Property without actually visiting it in person.
Online tools like Instagram and YouTube offer our company a HUGE advantage because they give us the ability to market the properties that we manage to a wide audience.
Both websites also save renters time because a potential renter doesn’t have to first visit one of our properties in person, they can tour it online from their laptop and then decide if they want to visit that property or not in person after they take their “online tour”.
Our online marketing process has also been highly effective at reaching people from out of state who are interested in relocating to Portland Oregon and want to learn more about rentals in the area before they are physically here.
How Our Online Marketing Process Works
Besides reaching renters who are relocating to the PDX area from out of state, our online property marketing also helps owners as well. How? An owner doesn’t have to concern themselves with marketing, they can rely on Rent Portland Homes to professionally market their property online and have confidence that we will screen and place the most qualified tenants to live in their rental property.
If you watch our videos on YouTube or view pictures of our properties on Instagram, you will see that we are very thorough when doing a “walk through” of a property. We’re going to show the kitchen, bathrooms, bedrooms, garage, and unique details that a property offers so a potential tenant feels like they’ve toured the property and will be ready to rent that property when they contact us.
Get Portland Oregon Property Management
Are you ready to hire a property manager to rent your Portland home? If so, contact us today by calling (503) 515-3170 or click here to connect with us online.
In this video, Ben Droukas and Bennet Van der Genugten of B&B Real Estate Group (@bbrepdx) talk with Darla Andrew of Property Management Systems about what it’s like working with our company and how we’ve been an asset when it comes to managing properties for their out of state investors.
Ben Droukas and Bennet Van der Genugten of B&B Real Estate Group - YouTube
We Understand the Needs and Concerns of Investors
One of the first ways that we help our investor clients, especially those who are located out of state, or out of the country, is we “speak the language” of investors. This means that we’re on top of things like what the current market rent is for the PDX area and how long it’s going to rent our clients properties.
Property Management Is the Key to Owning Income Properties
Buying an income property is the first part of the process of getting that property generating income. When investors choose us to manage their rentals for them, they can have complete confidence in our property management services including the following areas.
Communication with Investors – Our company takes pride in providing immediate answers to our clients especially when it comes to setting the correct market rent and answering questions about their rental properties.
Customer Service – Once the property is rented, our investor clients can have complete confidence that our property management team will handle all aspects of communication with their tenants so they can enjoy passive income from their rental properties.
Maintenance – When it comes time for maintenance, our investors can also have confidence that all aspects of maintenance will be professionally handled by our team of maintenance professionals so there’s nothing that an investor will have to do on their rental properties themselves.
Rent Collection – Another huge benefit that will come from hiring Property Management Systems to manage your Portland Oregon Income Properties is our rent collection services. We collect the rent on time from tenants each month and deposit the rent in our owner clients accounts so they don’t have to do any rent collection themselves.
Besides the services that we’ve mentioned in this article, we also provide our clients with professional marketing when it comes time to market their properties for rent again, tenant screening/selection, and so much more!
Real Estate Brokers – Let Us Be Your Property Management Partner
Many of the Real Estate partners that we work with like B&B Real Estate Group have investor clients who own portfolios of 10, 20 and 30 rental properties. When they choose us to be their property management partner, brokers like Ben and Bennett can trust us to be a resource that will help to ensure that their client’s properties continue earning good ROI.
The Real Estate Market moves fast and investors can trust property management systems to move fast right along with it!
Contact Property Management Systems
To learn more about the property management services we can offer you for your portfolio of Portland Oregon income properties contact us today at (503) 515-3170 or click here to connect with us online.
Leslie Zagelow with Keller Williams on working with Rent Portland Homes - YouTube
Are you thinking about hiring a Portland Oregon Property Management company to manage your portfolio of rental properties? But you’re “on the fence” about hiring a manager and are unsure if you should continue managing your rentals yourself?
In this article, we will provide you with more information about how we help landlords and investors who own rental properties so you will have peace of mind if you choose to hire Property Management Systems to manage your Portland Oregon area rental properties.
We’re Your Complete Property Management Resource
Even though you have been able to manage your rental properties yourself in the past, our property management company will be your complete property management resource and provide you with the following services:
Property Marketing – When it comes time to market your property online, you can expect us to take high-resolution pictures and video of your rental property then market your PDX rental property online where it will get the most exposure possible.
Tenant Screening and Placement – Once your rental property starts receiving interest from prospective tenants, we will screen and place the most qualified tenants to live in your PDX rental properties.
Rent Collection – Another HUGE benefit that will come from hiring a property manager to manage your PDX rentals is our rent collection services. You will be able to have peace of mind in knowing that rent will be collected on time each month without you having to deal with tenants including individuals who may make excuses for why they can’t pay on time.
Customer Services – Besides tenants screening, placement, and rent collection, our Portland Oregon Property Management team will also handle all customer service requests from the tenants that live in your rental properties. This means that you won’t have to worry about receiving calls or text messages from your tenants at night, on weekends, or during holidays again.
Maintenance – Forget doing minor maintenance tasks like cleaning your rentals after tenants move out, painting, or electrical. With our maintenance department you can also have complete confidence in knowing that should a maintenance issue arise at your rental property; it will be handled quickly and efficiently by maintenance professionals who will get the work done right!
Saves You Time – In today’s world, owning rental properties has turned into a 2nd or 3rd job for many investors because they are trying to do everything themselves. When you hire a property manager you can start living your life once again because we will handle all of the day-to-day elements of property management so you won’t have to manage your rental properties again.
Keep You Safe – So far, we’ve covered a lot of benefits that our property management team will offer you but one of the most important benefits that will come from hiring a property manager is safety and security. A property manager will eliminate the need for you to have face-to-face contact with your tenants again. This will keep you safe and ensure that there’s always a “middle-man” between you and the tenants who live in your rental properties.
Get Portland Oregon Property Management
To learn more about the benefits that will come from hiring Property Management Systems to manage your portfolio of rental properties in Portland Oregon contact us today by calling (503) 515-3170 or click here to connect with us online!
Have you been thinking about selling your Portland Oregon home but you’re not sure if you should keep it and rent it out? This is an understandable question to have since even though it may make sense to sell your home at first, the reality is that it could also be a better decision for you to keep your home and rent it out.
In this article will share with you several reasons why you should consider keeping your home and renting it out versus selling your home.
Why Should Your Rent Your Home?
The first reason why you should keep your home and rent it out is that there is a huge demand for rental properties in the Portland Oregon area right now because, the PDX area continues to remain one of the hottest cities for relocation in the state of Oregon.
If you choose to rent your home now, you can expect to rent it for top dollar almost immediately. This means that even if your home still is under mortgage, you should be able to rent it for an amount that will cover your mortgage, property taxes, and homeowner’s insurance without any problem.
Another excellent reason why you should consider renting your home out instead of selling it is the long turn benefits that come from owning rental properties. When you own a rental property, you can continue earning income from your home for years into the future long after you paid it off and you can also leave your home to your heirs.
Don’t Manage Your Rental Home Yourself, Hire A Property Manager
Although some people may tell you to just manage your rental property yourself, this is not advisable, especially if you are a first-time owner of a rental property.
Owning a rental property can take a lot of time and hassle out of your day and if you’re not prepared for the work it can indeed become like having a second or third job! This is why you should hire a professional property management company to manage your rental property for you.
When you hire a property management company to manage your rental property for you, you can count on all aspects of property management to be handled from start to finish including rent collection, maintenance, tenant screening, tenant placement and so much more!
With a professional property management company serving you, owning a rental property will truly be a passive endeavor. This means that you can expect a check to be mailed to you on a monthly basis or money deposited into your account without you having to do any work yourself.
Contact Property Management Systems
To learn more about the benefits that will come from hiring a property manager, or to speak with us about our Professional Property Management Services, contact us today by calling (503) 515-3170 or click here to connect with us online.
Are you planning on relocating to the Portland area? If you plan on renting a property that’s managed by the Property Management Systems Team, you can expect us to take you through a comprehensive move-in process.
Our move in process is one of the most thorough in the Portland Oregon area because it protects our owner clients best interests while ensuring that our tenants have a clean and habitable property to move in to.
In this article, we will break down the steps involved with our move in process so you will know what to expect when renting a property from our company.
Step 1 – We Will Take Photos Of The Exterior And Interior Of The Property
The first step that we always take with every new property before a tenant moves in is to take photos of the interior and exterior of the rental property.
This step is a vital part of our move-in process because it enables us to document the condition of the property when our tenant moves in, ensures that the property is in excellent condition, and the photos also give us an example of what the property should look like when the tenant moves out.
Step 2 – Property Walk Through
During the process of taking pictures of the rental property we will also document the overall condition of the rental, check appliances to make sure that they are functioning, lights, and other fixtures to verify that everything is in proper working condition.
Before wrapping up the property inspection we will also provide our tenants with a checklist so they can document the condition of the property with their own eyes. We will also instruct our new tenants to utilize our online portal which is an excellent tenant resource for getting questions answered and having easy access to tenant documents when needed.
Step 3 – Hand Over The Keys
After collecting a tenants security deposit, proof of renters insurance, and required utility account information we will hand over the keys to our new tenant and they will assume the responsibility of caring for the rental property.
Search For Rentals In Portland Oregon
To search for rental properties in Portland, Oregon or to speak with us about our move in procedure, contact us today by calling (503) 515-3170 or click here to connect with us online.
Are you planning on investing in your first Portland investment property? If so, you’re making a smart choice!
Right now, is the perfect time to invest in Portland investment properties because mortgage interest rates are still historically low and it’s never been easier to purchase an investment property in the Portland area.
Depending upon your financial situation, you may be able to easily purchase an investment property here for cash compared to what it would cost you to purchase an investment property elsewhere in the United States.
Even though buying investment properties is an ideal choice for every investor to make the reality is that there are a variety of mistakes that a newbie landlord should not make if you plan on managing your investment properties yourself.
In this article, we will break down common landlord mistakes and also provide you with several tips for first-time landlords.
Mistake #1 – Not Renting to Families with Children
The first landlord mistake that you do not want to make after purchasing a Portland investment property is choosing to not rent your property out to a family that has children.
Sadly, many investors over the years have made this mistake because they feel that some children are responsible for causing wear and tear on their rental properties (even more so than adults) but the reality is that thanks to local and Fair Housing laws, as a landlord you do not have the ability to discriminate against a potential tenant by choosing to not rent to them if they have children.
Besides not discriminating against families with small children, you also must not discriminate against people of the opposite sex, race, national origin, color, job status or their disability status.
Yes, it can be tough to be a landlord especially when it comes to screening potential tenants, that’s why when asking questions to a potential tenant you should always keep your questions scripted and make sure that you’re asking the same thing to your tenants each time to avoid any allegations of discrimination.
Mistake #2 – Banning Tenants with Criminal Histories
Another landlord mistake that you do not want to make after investing in a Portland investment property is banning potential applicants that may have criminal histories.
Most landlords in the past typically didn’t think twice when it came to potentially banning a tenant with a criminal history because they did not want to put their other tenants or neighbors in the area at risk by renting to someone with a criminal history.
Thanks to recent policy memo issued by the Department of Housing and Urban Development though, we know that an applicant’s potential criminal history is not a sufficient reason to turn them down as being someone who you would not potentially consider renting to.
Although you cannot turn down an individual who potentially has a criminal history, this does not mean that you cannot “consider” an individual’s potential criminal history during the screening process especially if that individual’s criminal history could put other tenants who live in your rental property at risk.
During the process of considering a potential tenants criminal history, some of the things to consider when interviewing them include the following:
Was the applicant arrested or convicted of a crime?
What exactly was the severity of the crime?
How many years ago was the crime committed?
Did the crime involve firearms or drug-related?
To be on the safe side, you should always screen a tenant based on criteria like their financial qualifications and the results of their background check. Doing this will protect your best interests especially when it comes to renting to tenants who may not pay their rent on time or possibly cause you trouble because they have a background which may not be a good fit for your Portland investment property.
Mistake #3 – Using Generic Lease Forms
So far, we’ve covered two major mistakes that you do not want to make as a landlord after you invest in a Portland investment property but, the third mistake that you absolutely should avoid making at all costs is using generic lease forms.
Thanks to the internet, it’s easier than ever before for landlords in Portland or elsewhere across the United States to have access to generic lease forms that they can download from the internet, print from their office, and have available for their tenants when they show up.
Sadly, there’s no way for a landlord to know if a generic lease form is actually compliant with their state or their local fair housing laws plus the protections of the generic lease form may not extend as far as the landlord expects.
To avoid the hassle of using a generic lease form, every landlord who owns a Portland investment property should first hire an attorney to craft a custom lease form that is specific for their property. Doing this will provide the landlord with plenty of opportunities to write down specific rules for the property including parking rules or regulations, who are responsible for yard maintenance, and other issues that may be important to the landlord.
Hiring an attorney to have a custom lease agreement created is a one-time cost but the reality is that doing this will ultimately pay dividends for the landlord which will last them for years to come and protect their best interests should their tenant become unscrupulous and decide to not pay their rent on time or cause them specific problems.
Mistake #4 – Improperly Collecting or Holding onto Security Deposits
Yes, there are many landlord mistakes that you do not want to make after purchasing a Portland OR investment property, and we’ve already covered a few in this article, but the next landlord mistake that we want to talk about is improperly collecting or holding security deposits.
As a landlord, it’s important for you to know that security deposits are a very contentious issue for tenants because many landlords in the past have charged exorbitant security deposits. When it came time for the tenant to move out, the landlord took most or all of the tenant’s security deposits.
In Portland, landlords have 30 days to return a tenant security deposit after they’ve moved out. The tenant, of course, must provide the landlord with a forwarding address that the landlord can then mail them a check or money order to plus a complete list of itemized deductions that the landlord took out if they had to use some or all of the security deposit.
Mistake #5 – Hiring a Resident as the Manager of Your Portland Oregon Investment Properties
Over the years that you own your Portland investment property, it may be very easy for you to offer one of your tenants a rent discount in favor of them managing one or more of your investment properties.
Sadly, this is a huge mistake to make especially if the tenant is living on-site or at the property that they will be managing because it’s very easy for a tenant who is already living in a property that they’re managing to have an allegiance to other tenants that live there and potentially cut them a break when it comes to tenants who break their leases or ultimately pay late.
To avoid the heartache and hassle of hiring a tenant to manage one or all of your Portland investment properties, you should only hire a local property management company like Property Management Systems because, we have years of experience when it comes to managing Portland investment properties and you can count on reliable service, great support, plus on-time rent collection when you choose us to manage your property for you.
Some of the additional services that you will receive when you hire us to manage your Portland rental include:
Tenant placement / Selection
For more information about the property management services that we can offer you contact us today by clicking here!
Tips for First Time Landlords
Now that we’ve covered all the landlord mistakes that you absolutely do not want to make we’re going to provide you with a list of tips which will help you as a first-time landlord make the right decisions and best of all ensure that your property stays profitable.
Always Make Rent the Priority
Regardless of what you do as a landlord, the most important priority that you always want to have is to make receiving that monthly rent payment a priority. Why? The answer is simple, rent is your revenue, and if that rent is received late on a monthly basis, those late payments affect you because you are going to be responsible for paying that mortgage payment until your tenant is able to pay their rent so it’s always ideal to make receiving rent payment a priority every single month.
To ensure that rent is always paid on time you must make sure that you have an ironclad lease which states when the rent is due and what the penalties are that the tenant faces for not paying your rent on time.
By having an ironclad lease, and also instructing your tenants on how to pay the rent or where to pay it, you’re going to eliminate excuses for why they cannot pay their rent on time and ensure that you have regular, reliable, cash flow pay to you from your tenants on a monthly basis.
Choose the Right Partner
Ensuring that rent is a priority in your business is important but, another important thing that you want to do as a real estate investor who plans on purchasing a Portland investment property is to partner with the right individual if you plan on taking on a partner.
Choosing the right partner is key because, if you partner with someone who does not have the same shared values as you, it’s going to be more difficult to expand your portfolio of investment properties if one partner wants to keep things as they are while the other partner wants to grow it.
To avoid hassles in a potential partnership it’s best to sit down with someone who you plan on partnering with an interview them just so that you’re fully aware of what their goals are as an investor and if what they want to do lines up with what you want to do.
Don’t Spend Thousands Of Dollars Learning And Never Doing
Another mistake that you do not want to make as a real estate investor in the very beginning is to potentially spend thousands of dollars learning, but never doing. The reason why we bring this point up is that every year newbie real estate investors go to seminars, purchase courses, and invest hundreds if not thousands of dollars with gurus, trying to learn real estate investing tips, but then they ultimately end up not using what they’ve learned to actually invest in real estate.
As with any business, the key to success is actually doing or following through with the things that you’ve learned because, you can have all the knowledge in the world about how to invest in real estate but if you don’t actually use it, then that knowledge is ultimately worthless to you.
If you have problems with taking action, commit yourself to spend at least 1 hour per day towards investing in real estate because making this commitment will actually enable you to make real progress towards accomplishing your real estate investment goals quicker than you ever imagined.
Besides committing to taking action, you should also commit to never stopping the learning process. This tip is important because even though you may be taking action and applying what you’re learning, you must maintain your commitment to learning as much as you can about real estate investing over the course all of your career because doing so will ultimately make you a stronger real estate investor in the long run.
Screen Tenants Properly
As we mentioned above, you always want to make sure that you screen potential tenants properly before renting to them because, the proper screening will save you that time, money and hassle of renting to an individual who could be more of a problem than what they’re worth.
Think Carefully Before Allowing Pets
Another important thing to consider before renting to a tenant who has expressed an interest in living in your Portland investment property is that you should always think carefully before allowing pets.
Although many pet owners are responsible individuals who care for their pets, it’s quite possible that you may encounter one renter who is less than responsible when it comes to the care and management of their dog or cat and if those animals are left unattended, it could end up peeing inside of your investment property and it could take weeks or months to get that smell out so it’s best to think carefully about the owner and their pets before choosing to rent them.
Don’t Invest In Renovations That Won’t Produce Higher Rent
Last of all, the most important, another important tip that we have for you is that you should always think carefully when it comes to renovating rental properties and make sure that you invest in renovations that will produce a higher rent.
Unfortunately, many investors every year make the mistake of investing money in their properties that will not produce a higher rent so it’s always best to think about the return on investment that you will receive in the form of rent before making a renovation because it’s quite possible that you can easily let your emotions get in the way of you making a smart choice when renovating your investment property
Property Management Systems is your local property manager. Contact us today to learn more about our services.
Contact Property Management Systems
At Property Management Systems, we are the property management leader in the Portland area. You can count on us for full-service property management as well as being your source for finding potential investment properties that you will want to add your portfolio.
To learn more about the services that we can offer you contact us today by calling (503) 515-3170 or click here to connect with us online.
Although it may seem confusing at first, the 1031 exchange is the most effective way to grow your real estate portfolio without losing a huge portion of your wealth to taxes on capital gains.
Sadly, many investors including long-time investors are clueless about how to do a 1031 exchange the easy way and they ultimately end up spending many hours trying to navigate through confusing paperwork themselves when the process is actually a lot simpler than they think.
In this article will break down the 1031 exchange and provide you with tips that you can use to grow your real estate portfolio while avoiding the specter of having to pay a ton of money in capital gains taxes.
1031 Exchange Overview
The 1031 exchange is a nickname for Section 1031 in the United States Internal Revenue Services tax cut. This section states that if an individual exchange or sells an investment property for the purpose of purchasing another investment property, they must exchange property #1 for like-kind property. This is the key to success with a 1031 exchange because, if the second property can be defined as”like kind” then the property owner may be able to defer the taxable event and avoid having to pay Capital Gains which they would normally have to pay at the time they sell property #1.
Example: If the definition of “like kind” still doesn’t make sense, we can break it down further. Let’s say that you purchase a piece of real estate for $100,000 and then ultimately sell it for $500,000. Since you’re effectively making a profit on the sale, you will have to pay Capital Gains on your $400,000 profit.
Even though every investor loves the idea of turning a profit, the reality is that the capital gains on $400,000 could amount to $100,000 to $150,000 in capital gains taxes depending upon which tax bracket you currently fall into.
Thankfully, with a 1031 exchange, the Internal Revenue Service will let you effectively defer your taxes if you use all of the proceeds from the sale of your property towards purchasing another $500,000 property. Once you purchase a new property that’s determined as “like kind” you can effectively defer having to pay capital gains taxes.
Helps Your Money Go Further
Although you ultimately will have to pay taxes at some point, you can definitely make your money work for you by utilizing a 1031 exchange.
Why Is A 1031 Exchange Important?
As we stated earlier in this article, a 1031 exchange is important because it’s going to enable you to create more wealth without taking a huge tax hit along the way. Any investor who uses a 1031 exchange throughout their career will enjoy the rewards that come when they purchase bigger and better properties.
What Properties Qualify For A 1031 Exchange?
As with many of the rules and regulations that are written by their Internal Revenue Service, the language in the tax code regarding 1031 exchanges can be vague or difficult to understand.
With a 1031 exchange when you sell one property you must purchase another property that is classified as “like kind”. The following is the specific language from the IRS website:
“Both properties must be similar enough to qualify as “like-kind.” Like-kind property is the property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to another real estate. For example, real property that is improved with a residential rental house is like-kind to vacant land. One exception for real estate is that property within the United States is not like-kind to property outside of the United States. Also, improvements that are conveyed without land are not of like kind to land.”
The good news about 1031 exchanges is that even though the IRS has their classification of “like kind”, the reality is that this classification doesn’t just apply to you purchasing one property that’s similar to another. Example: purchasing one apartment building for another apartment building etc.
With a 1031 exchange, you can sell your apartment building and use proceeds from that sale to purchase land, a ranch, strip mall or any other property which is of equal value to the property which you have sold.
A word of caution: to make a 1031 exchange work, you must actually own real estate not a share in a Real Estate Investment Trust (REIT)or a real estate investment fund.
Let’s say that you exchange a cheaper or less expensive property, you will have to consider paying taxes on the price difference.
If you receive cash, relief from debt, or property that cannot be considered to be like kind, you may ultimately trigger some taxable gains in the year of the exchange. Thankfully, it’s possible to have both deferred and recognized gain in the same transaction when a taxpayer exchanges for the like-kind property of lesser value.
Subject To Time Limit
One of the most important things to know about 1031 exchanges that you have a time limit 45 days after you sell your property to identify potential replacement properties. when should identify a new property, the identification must be done in writing, signed by you, and then delivered to the individual who is involved in the sale of the like exchange property like the seller themselves, or possibly a qualified intermediary.
Besides the 45-day time limit, you have six months or 180 days or you could end up paying taxes on the entire sale of your property.
There’s no doubt that in a perfect world most investors would love to sell their property and then purchase a like time property immediately. Unfortunately, this is difficult to enact because both real estate transactions have many moving parts that are not generally known for speed. Having a transaction go quickly would require the real estate investor to find a perfect property at almost exactly the same time as when they are selling their original property. Thankfully, this is why a deferred exchange is like the 1031 exchange is allowed.
What Is A Qualified Intermediary?
How have you been thinking about using a qualified intermediary? This term applies to someone who will buy your property sell it then purchase another property on the other end of the exchange.
Utilizing such an individual ensures that the entire series of actions will remain one transaction rather than receiving taxable cash for the sale.
Also known as a 1031 accommodator, a qualified intermediary also uses a special escrow account that will hold your money so you will not have to touch it.
Besides giving you confidence that you will not have to touch the cash from the sale of your property, you could also have confidence that all documentation related to the sale will be handled by the qualified intermediary. This keeps you out of the transaction and will give you confidence that everything will be handled for you.
If you have questions about finding a qualified intermediary, you could possibly use a large title Company in your area to act as one for you since many local offices are not equipped to do it. It’s also possible to utilize a real estate attorney or certified public accountant to act as a qualified intermediary for you as well.
The cost of hiring a qualified intermediary can depend on the complexity of your situation but, for simpler deals, it’s possible that the cost could amount to just a few hundred dollars although the expense can’t get much higher if there are more complications which are involved in the overall transaction.
Tips For A Smooth 1031 Exchange
We’ve offered you a lot of tips in excellent information on 1031 exchanges so far but, before wrapping up this article would like to offer you five tips that you can use for a smooth 1031 exchange transaction.
Tip #1 – Always Sign Exchange Documents Before You Close
With 1031 exchange rules, you will be able to sell you relinquish property to a buyer and acquire replacement property within 180 days from a different seller. It’s imperative that every seller sign the exchange documents on or before the date that they close the sale of the relinquished property.
1031 exchange documents will include the exchange agreement that was entered into if the seller or real estate investor chose to hire an intermediary help process the 1031 exchange.
#2 – Think About Who Will Acquire The Replacement Property With a 1031 exchange, the same taxpayer who sells the relinquished property most by the replacement property but, what if a lender ultimately requires the seller to acquire a replacement property that’s a single acid density? This is ultimately workable because single member limited liability company is disregarded for tax purposes so an investor can sell his relinquish property that has been held by him individually and acquire a replacement property in an LLC just as long as he is the only member or owner of that LLC.
#3 – Buy Enough Replacement Property To Defer All Gain
Remember, in order for you to completely defer all the tax that you would otherwise have to pay on the game, you have to acquire a replacement property that’s equal to or greater in value than the relinquished property. Sadly, many investors fail to do this every single year and ultimately end up paying thousands in capital gains because the replacement property is worth less than the property which they recently sold.
#4 – Don’t Forget About Expenses
As with any real estate sale, there are going to be expenses that will be required to pay but, the good news is that with 1031 exchange, the exchange proceeds can be used to pay things like brokerage commissions, exchange fees, escrow fees, and transfer fees.
One thing you cannot do though is give the buyer credit for security deposits or prepaid rent because, when you’re doing this you are essentially exchanging proceeds for the non-exchange expense and this could ultimately result in your exchange partially taxable. For this reason, it’s best for you to use your own money pay for things that you do not want to pay any tax on.
#5 – Think About Safety Of Your Funds When Using An Intermediary
If you plan on using an intermediary to do your 1031 exchange you should absolutely verify how the funds are going to be held from the sale of your property especially if they will be home in a separate account that can be identified with your name and tax ID.
The bank must also be FDIC insured and invested in securities plus they must be strong financially and have a good reputation. These are all important things to consider before utilizing an intermediary to do your 1031 exchange.
Contact Property Management Systems
For professional property management in Portland Oregon contact Property Management Systems by calling us at (503) 515-3170 or click here to connect with us online.
Are you planning on renting your Portland Oregon Rental property and you’re trying to decide on if you should include utilities with the rent or not?
This is an important question to ask and in this article we will provide you with the reasons why you should and should not include utilities with rent when renting your property.
Why Include Utilities With The Rent?
The first reason to include utilities with the rent when renting your PDX rental property is the fact that this will make your rental listing stand out from other properties for rent since many rentals in Portland don’t include water, sewer, trash or electricity with the rent payment.
Some tenants may like the fact that all of their utilities are covered with one rent payment but, to make your life easier when including the utilities with the rent you should also consider using a utіlіtу rеіmburѕеmеnt program thаt divides uр utilities оn ѕԛuаrе fооtаgе just so your tenants can’t cоmрlаіn that “they dіd nоt uѕе that muсh hеаt/wаtеr/еlесtrісіtу,” etc.
Even though there may be some challenges with including utilities with the rent, you may be able to charge a little bit more money for this service on a monthly basis, especially if your rentals are separately metered, and this will ultimately improve your cash flow as well.
Whу Nоt Include Utіlіtіеѕ With The Rent?
It makes уоur life easier – If уоu can rеԛuіrе уоur tеnаntѕ to get utilities іn thеіr оwn nаmе, уоu dо nоt hаvе tо bіll, соllесt рауmеntѕ or take thе рhоnе calls. It juѕt makes уоur lіfе еаѕіеr.
Yоur utіlіtу еxреnѕеѕ wіll іnсrеаѕе – Whеn utilities аrе іnсludеd, there іѕ no іnсеntіvе fоr thе tеnаnt tо соnѕеrvе. I have ѕееn it time and time аgаіn where thе tеnаnt hаѕ thе hеаt turnеd way uр аnd thе wіndоw ореn to сооl it оff.
Yоu mіght gеt bеttеr quality tеnаntѕ – It has bееn our еxреrіеnсе that those tеnаntѕ whо саn gеt utіlіtіеѕ рlасеd іn thеіr names аrе ѕіmрlу better tеnаntѕ. They pay thеіr bіllѕ and аrе gеnеrаllу mоrе rеѕроnѕіblе. Yоur lосаl mаrkеt mау vаrу.
You ѕреnd less tіmе dеаlіng with thе lосаl utility – Thіѕ can bе a rеаl tіmе аnd hеаdасhе saver.
Contact Property Management Systems
Ultimately the decision to include or not include utilities with the rent when renting your Portland Oregon rental property is up to you.
At Property Management Systems we love helping our owner clients answer these questions and we take pride in providing our clients with the best property management in the Portland Oregon area.
To learn more about the services we can offer you contact us today by calling (503) 515-3170 or click here to connect with us online.
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When writing a rental listing you should first focus on thinking like your tenant and posting information about the renal that would interest them
Some of the classic things that tenants everywhere are interested in include: location, number of bedrooms/bathrooms, square footage of the rental, amenities, front yard, back yard, school district, neighborhood, and nearby shops/stores.
How Long Should Your Listing Be?
The ideal description is 4-6 sentences. Pick two of your best features and one exciting attraction nearby. Short, informative sentences are all you need.
Rental listing descriptions are best formatted as a paragraph. Bullet-points are great for lists, but the description is not a list- it should be full of useful, persuasive information. It’s a more professional format.
Contact Property Management Systems
Are you tired of managing your Portland Oregon Rental Property yourself? At Property Management Systems we cover all aspects of property management from rental property marketing, tenant placement/selection, customer service and so much more!
Learn more about the services we can offer you by calling us a (503) 515-3170 or click here to connect with us online.
During the years that you own and manage rental properties in the Portland Oregon area, you may encounter one or more tenants who submit an application to you with fake rental references.
Sadly, in today’s world, fake rental references are often very easy for anyone to create thanks to technology. The good news is that any savvy owner or landlord can easily spot them by simply following these tips.
Tip #1 – Dig Deeper
The first thing to do when someone submits potentially fake rental references to you is to dig deeper by taking the time to call the rental references that they’ve listed on their application and pretend to be a renter who is looking for a rental property.
If the phone number that they listed on their application is fake, the person who answers the phone will obviously not be ready for your call but, if the reference is real then they will be ready to take your call and provide you with information about the rentals that they have available.
Tip #2 – Analyze What Their Former Landlords Say About Them
Once you’ve inquired as to a potential tenant, the next step is to call those rental references again and inquire as to a landlord.
During this step it’s important for you to listen to what the landlord says about their former tenant because chances are if they don’t provide you with plenty of details about the individual, they most likely are not a real landlord.
Tip #3 – Request Details from An Applicants Past Rental References
Another important thing to do when reviewing a tenant’s rental references is to request verifying details from their previous landlords. Most landlords keep details about their former tenants like a move in / move out dates, birth dates, and their social security number. These details will help you to confirm if the rental references that your applicant has given you are legitimate or not.
Tip #4 – Research A Landlords Property Tax Information
Let’s say that you’re still not “sold” on the landlord after speaking with them, to dig deeper and get concrete evidence that they are a landlord you should look up tax information about their property online.
Following through with this tip will give you absolute proof that the landlord is indeed who they say they are and has rented to your applicant in the past.
Besides the tips that we’ve mentioned in this article, another thing that you can do to determine if an applicant’s rental references are fake or not is to cross-check the landlord’s phone number that your applicant has listed on their application with the landlord’s information online.
Last, of all, you could also check your applicants and their former landlord’s social media profiles to see if either the applicant or their former landlord is in pictures on either profile. It’s unlikely that a landlord would want to hang out with one of their tenants and if they are in more than one picture together it’s likely that they are friends.
Learn More About Property Management Systems
Are you feeling overworked when it comes o managing your Portland Oregon Rental Property? If so, we can help! Property Management Systems specializes in full-service property management for companies in the Portland area.
To learn more about our services, contact us today for a free quote at (503) 515-3170 or click here to connect with us online.