Leasing

January 18, 2015

Just How High can Rents Rise in 2015?

If you are a renter, you feel the pinch. If you are a landlord, you feel the bulge in your bank account. Here’s a good article and short video clip from CNBC about the top rental markets in the US as well as how they relate to affordability. http://www.cnbc.com/id/102159830 As Landlords and Real Estate Investors, you should be aware of the relationship between rent values and your tenant’s income growth patterns. As always, real estate is local, so if you need help understanding what is occuring in your area of town, email, call or click.  Dan Baldini is the Executive Property Manager of Polaris Property Management, LLC. Dan focuses his practice on the residential real estate markets including Indianapolis, Carmel, Zionsville, Fishers and other surrounding areas. Dan continually seeks out new resources for Team training and education in order to keep all the Team members skills on the leading edge […]
January 21, 2015

Have Rental Rates become Unaffordable?

  Is the party almost over for Landlords and Real Estate Investors in residential rentals? Rental rates across the US, Indianapolis metro area included, have been on a consistent tear for a number of years now….Landlords have benefitted allowing the asset prices to get bid up on both rental properties for sale. However, just like with everything in life, there are limits…. Here’s a good article that takes both a granular and high level approach at looking into this pending issue…. http://nreionline.com/multifamily/rent-burdened-nation-housing-expert-discusses-affordable-housing-crisis Certainly, if your local market conditions allow, maximize your rental revenue whenever possible, but keep this knowledge on your radar as we may be witnessing a market shift in rental rates. If you haven’t repriced your properties lately or done a competitive analysis, now may be a good time to get this information gathered. As always, if we can assist, call or click.
January 22, 2015

Pull the trigger and ride the bullet.

If you are going to fire a gun, there is an old saying:  Pull the trigger and you ride the bullet. In other words, you take full responsibility for what happens not just at the time when the bullet blasts out of the muzzle of the gun, but for the entire flight of that bullet–where it goes, what it impacts, and beyond. In real estate investing, responsible investors practice this principle.  They know full well that they, NOT someone else, is responsible for everything that occurs on/in/around their units.  In addition, they are responsible for making sure that they have the financial resources available to fix things that go wrong, replace parts that wear out, and the shear guts to make the tough decisions. Also in real estate practice, responsible agents practice this principle.  It has become quite fashionable for agents to provide counsel to Buyers and Investors on the […]
January 27, 2015

Source of Income Amendment

The City Council of Indianapolis is at it again…. They are debating again the Source of Income Amendment that was voted on twice now and defeated twice.  If you’ll recall, I wrote about this idiocy and ignorance of risk/return and rental properties back in August 2014.  They are holding a Rules and Public Policy Committee tonight at 5:30 pm in Room 260 of the City County Building.  If you can attend, please attend and speak out on behalf of your Rights to Liberty and the Pursuit of Happiness. Here’s the link to that prior post….https://danbaldini.com/dont-you-dare-treat-income-sources-differently/ This is like a mental venereal disease that won’t go away…unless, perhaps, we VOTE OUT the Councilmen and Councilwomen who actually side with this socialistic collectivistic agenda. NOW THAT’S an idea that IS worthy of debate!
February 3, 2015

How to Maximize your Rental Revenue from real estate

Each landlord we work with has a unique problem—filling their rental vacancy.  On the surface, It may seem like a unique problem to only this industry.  But when you apply business topology, the problem becomes quite common. In fact, there are at least 3 other industries who have almost the exact same problem. Unsold inventory. Billboards, hotels, and airlines all HATE unsold inventory because the moment when time passes, it is utterly worthless. As soon as the date changes on a hotel room with vacancies, that hotel cannot make up the lost profit.  Same with the radio station with unsold advertising slots for radio commercials. Same for airliners that taxi and take off with seats missing rear ends sitting in them. Same for landlords. Which is why we are a strong proponent of aggressive and early marketing of properties with vacancies coming up soon.  Think about the math here…. If you rent a […]
March 16, 2015

More Data Points on Rental Applications = Less Risky Tenants

I’m always confused when I see rental applications that are one page long.  In large font. With lots of white space on the paper. Such a disaster waiting to happen… If you want to secure better tenants in your rental properties, the solution is simple. Ask questions.  Lots and lots more questions. Trust me.  We process hundreds of rental apps each year and NOT A SINGLE PERSON didn’t finish the application just because we asked for lots of data on their personal and financial lives. How many data points are on our application?  164.  Yep.  One hundred and sixty-four. We gather it all upfront so that the we have all the necessary information for our Landlord’s to make informed decisions on how risky a tenant profile really is prior to making a Go/No Go decision…. An additional residual value in gathering this data up front comes into play after they have moved […]
April 8, 2015

Meth houses

Our daily interactions with Clients, peers, and prospects is always wickedly weird and unpredictable…. I got this text message from a friend of mine after he calls and I click ‘decline’ on my phone… Uh-Oh…..                 You can tell this isn’t going to be a good conversation ending well….                           Take Away:  When your Spidey-Sense goes into orbit, listen to it!!!
April 9, 2015

Good Property Management is more than managing homes….

Some days, we feel like ping pong balls getting batted back and forth over a net that keeps rising higher and higher.  We bounce between tenants, landlords, real estate agents, government officials, lenders, inspectors, appraisers, and contractors.  It can make your head spin if you lose focus on the Goal. “What is the Goal?”, you ask? Simple but complex.  Yes, it’s a paradox wrapped in an enigma. The Goal is this:  Assist our Clients move towards their objectives. Sometimes that Goal is to increase wealth by generating capital appreciation of an asset.  Sometimes it is to generate cash flow for living expenses.  Sometimes it is to simply liquidate a property and harvest the equity. Thank you, Mr. McKnight, for inviting our team to assist you in reaching your Goal.  It was truly our pleasure to serve you.     Dan Baldini is the Founder of Polaris Real Estate & Polaris Property Management, […]
May 19, 2015

Why you MUST collect Security Deposit and 1st Month rent at time of lease signing

  One of the most frequent questions I receive from novice landlords is what funds to collect at lease signing. As fast as an Indy 500 car slams into the 3rd turn wall I respond with “Security Deposit PLUS 1st Month’s rent”. The reasons are simple for why you should require both to be paid at once but they all congeal into one simple concept: RISK MANAGEMENT Successful real estate leasing is almost all about risk management and the simplest way to minimize this risk is to force the tenant to have skin in the game.  Collecting essentially 2 months rent value at time of lease signing is plenty of skin for most tenants. It also sets the stage for the tenants to expect a certain standard of engagement with you as the landlord–you aren’t joking around with an important business transaction. Finally, it is an excellent secondary screening method–after all, if they don’t have […]
July 18, 2015

Fewer Renters Can Afford to Own–Great news for Landlords!

As real estate investors, opening up the Wall Street Journal can sometimes cause a panic attack. But in June 2015, this article came out giving most investors a sigh of relief and even a tingle down their leg. Spoiler Alert:  You’re going to make good money for a number of years to come if you play the market smart. http://www.wsj.com/articles/new-housing-crisis-looms-as-fewer-renters-can-afford-to-own-1433698639 Here’s a few bullet points if you don’t have time to read the entire article (but please read it eventually…) The U.S. homeownership rate is below where it stood 20 years ago when President Bill Clinton launched a national campaign to encourage Americans to buy homes. Conventional wisdom says the rate, at 63.7%, is leveling off to where it was for decades before the housing-market peak. The declines reflect a surge of new renter households, which is boosting rents. Together with tougher mortgage-qualification rules, this will leave households stuck between homes they […]