Keep Your Property Hot in a Cooling Market!

1. Start with a good accountant.  An accountant will let you know the tax benefits of various holding entities (corporation, LLC, TIC, trust) as well as what is deductible, tax savings, special considerations such as how to report payments to vendors who are not incorporated, etc.
2. Maximize Rents.  This doesn’t mean you always have to raise rents at precise annual anniversary dates.   There may be a reason to keep a good Tenant who will go elsewhere rather than pay an increase.   Sometimes Landlords are afraid to raise rents because they have had a bad experience with a Tenant and they now have someone who pays on time and they are afraid to lose them;  so they don’t raise the rents even though the tenant has been on a month to month lease for over 6 months.  Remember that the income determines the value or sales price of your building and even a modest increase factored into the annual revenue increases the overall value incrementally.
3. Keep up with new regulations regarding rental regulations.  At the beginning of 2006, the 60 day notice requirement reverted back to a 30 day notice, but some Landlords were unaware and continued to use outdated forms to serve notice on tenants to vacate.  Now in 2007 we are back to the 60 day notice, so keep current.
4. Track  Zoning changes and regulations, even if you have no intention of selling in the near future.  You may notice an opportunity to expand, change the use, or act sooner than later if you hear about proposed downzoning.
5. Know your neighbors.  If one of your neighbors is looking to acquire adjacent property to expand you may be in a better position to create more value than if you develop the lot on your own or opt out and lose the opportunity.
6. Keep the property looking neat and attractive.  Unless the site is a tear-down and you are selling it for land value, the psychological value of curb appeal shouldn’t be underestimated.
7. Develop a strong marketing campaign to attract qualified tenants.  Advertising on websites, local papers, and flyers should all be professional and clear and steer clear of any verbiage that could be construed as offensive or discriminatory.
8. Ask your Realtor^® to keep you informed about activity in your area, so that when you are ready to sell you will already have some knowledge about the Real Estate Market and can better plan for your future.

To find out more information on any of the subjects raised above, or if you have specific questions related to your property, click here