What is a Deficiency Balance?
Deficiency balance lawsuits are an unfortunate part of the aftermath of the real estate boom in the 1990s and early 2000s. During this period of time, banks and other lending agencies were very liberal in their mortgage and loan agreements for new and established homebuyers. In the event that a homeowner is not able to pay back the full amount of his or her mortgage, a deficiency balance suit may be filed on behalf of the bank.
A deficiency balance suit will require the homeowner to pay back the mortgage in full. Rather than go through the hassle of filing a deficiency balance claim, many banks and lending agencies choose to perform short sales. A short sale realtor in Atlanta can help sell a home quickly, and for less than its appraised value. Many real estate companies specialize in this type of real estate transaction. If you need help buying or selling a home, you should be sure to contact a real estate agent in your local area today.
As the owner of a rental property, it is essential to find responsible and reliable tenants that will provide you with total peace of mind. In the event that you find yourself with a vacancy, you may want to rely on the services of a residential property management company. A company offering rental management serving Atlanta can assist you with every step of the tenant screening process. With the assistance of experienced landlords in your local area, you will be able to find a range of qualified applicants during your search. To help you get started on your next property rental, here is a look at some essential tips for the tenant screening process.
Make Initial Contact
The first step of screening for new tenants is to make contact with applicants. Many rental management companies have trusted sources where they post and advertise their properties. After you have received an inquiry from an interested tenant, you may want to ask him or her a series of qualifying questions. By taking the time to make preliminary contact, you will have a better idea of whether you should move along with the screening process.
Create an Application
After initial contact has been made, the next step of screening a tenant is to have him or her fill out a detailed rental application. To ensure that you have a complete picture of an applicant’s rental and credit history, you should make sure to ask questions about their previous rental experiences, source of history, and credit information. After you have performed a background check, you will have a better idea of whether your applicant will be the right choice for your rental.
Review Your Lease
Once you have selected an applicant that seems like a great fit for your property, you will want to make sure that you review and update the terms of your lease. A quality residential lease is designed to provide protection and security for both landlords and tenants. With your newly updated lease, you will be ready to meet with your tenant and sign all of the necessary paperwork.
Running a Credit Check on a Tenant
When you are performing tenant screening, it is essential to run a credit check on each potential applicant. Since the best predictor of a person’s future actions is past behavior, a credit check will give you a complete picture of whether a prospective tenant will be able to pay the rent on time. If you are uncertain about the tenant screening process, you may want to work with a property manager near Atlanta .
Real estate property management companies offer tenant screening and other services that will help you find the right renter for your house, condo, or apartment building. For a complete overview of the steps of running a credit check on a tenant, be sure to watch this video from Howcast.
A Homeowner’s Guide to Choosing a Property Management Company
Whether you have purchased an investment property, or are planning on moving out of your current residence, there may come a time when you need property management services for your home. A residential property management company will be able to provide you with the services you need to find and maintain quality tenants. With the help of a company specializing in rental management serving Atlanta, you can rest assured that your property manager will be there to take care of all of the needs of your rental property. Read on for a closer look at some essential factors to consider when you are choosing a property management company.
Consider Local Reputation
When you are choosing a property management company to represent your rental, it is important to select an agency that has a great reputation in your community. A property management company with decades of experience in your area will understand the unique qualities of the local rental market. By working with a highly rated property manager, you can rest assured that your property will be well represented.
Set Up a Face to Face Meeting
As you are screening potential property management companies, you may want to set up a face to face meeting with an agent. By meeting with a property management professional in person, you will be able to ask detailed questions about the terms and conditions of your contract. During your meeting, you can also get a sense of whether the manager that you are talking to will be the right fit for your property.
Ask About Tenant Relations
One of the most important factors to consider when you are choosing a property management company is the relationship that your agent will have with your tenants. A quality property management company will have a professional and courteous relationship with all of your tenants. In addition, you should also seek out a property manager that values customer service. With these tips in mind, you will be ready to start renting out your property in no time.
How Are Problem Tenants Evicted?
Even with careful tenant screening, many landlords find it necessary to evict a tenant from time to time. It is important to follow the law closely when you are evicting a tenant, or you could lose your case. This video will help landlords in Atlanta understand the eviction process.
If you believe you need to evict a tenant, talk to your property management company. Your property manager will have knowledge of the legal procedure you need to follow to avoid complications. You will need to give your tenant written notice of the issue and time to correct the problem before you proceed with eviction. With the help of your property management company, document all communications with your tenant and gather records of any warnings he or she received from the rental management company, as you may need them to prove your case.
Tap into These Benefits of a Short Sale on Your Property
When a financial hardship leaves you facing a foreclosure, a short sale could be the solution. As long as you work with a real estate agent who is experienced in the process and can help you get the right deal, a short sale could give you the fresh start you need. If you’re behind on mortgage payments, here are some of the benefits of contacting a short sale real estate agent in Atlanta .
Protect Your Credit
If a lender forecloses on your home, the damage to your credit report can be significant. A short sale could potentially protect your credit score from the dramatic hit of full foreclosure. Although a lender can sue for the difference between what your home sells for during a short sale and the remaining balance on your loan, many times lenders don’t pursue that balance if the homeowner has demonstrated a true financial hardship. Provided that the lender doesn’t sue for the balance, your credit score will be shielded from the worst impacts of losing your home.
Going through foreclosure can be an expensive process. You will have legal costs and other expenses associated with the foreclosure, all at a time when you’re already experiencing financial upheaval. A successful short sale will recoup a large amount of the money you owe the bank without the legal fees associated with foreclosure, so you can focus on recovering financially.
Foreclosure is a confusing process for many homeowners. You will receive letters from a number of different parties, often with information that seems to be conflicting, and it is not always easy to know where to find answers. During a short sale, you will work with a real estate agent who knows the process and can help you navigate it. Real estate companies who work in short sales can negotiate with your lender on your behalf, so you can avoid the stress that comes with trying to make sense of real estate foreclosure proceedings.
A Brief Overview of Short Sale Packages
A short sale can help homeowners recover when a financial setback puts them in danger of foreclosure. With the right real estate agent on your side, you can avoid the negative financial implications of losing your home and get a fresh financial start. Creating a short sale package is the first step in the process of starting over. Your short sale realtor in Atlanta will help you prepare your package. Here is what you need to know.
A short sale package is created by the seller and his or her real estate agent for the bank that holds the mortgage on the home. The purpose of the package is to demonstrate to the bank that short selling the home is the best solution to the homeowner’s financial problems with the mortgage. The package should include pay stubs, bank statements, tax returns, and any other documentation that shows your financial problems. You may also need a hardship letter to explain your situation. Typically, the package also includes a listing agreement with the real estate company you’re using for the sale. Failing to provide the correct documents could delay your short sale approval.
How to Get Started as a Rental Property Owner
Owning rental property can be a great way to earn money, whether it becomes your full time job or just an avenue for extra income. However, if you jump into ownership without going through the proper steps, your income generator could turn into a major financial drain. Start by working with the right real estate agents in Atlanta who can help you find a profitable property. As you enter the real estate market, keep these tips in mind.
Know Where You’re Investing
Even if you have heard that a particular area is about to see an increase in demand for rental properties, don’t try to conquer the rental market in an area you don’t know. If you choose an area that you aren’t familiar with, you may overestimate the desirability of the community, or you may not know what kind of tenant you should target. Real estate agents can educate you about the current market trends, but it also helps for you to have your own knowledge of the area to guide your investments.
Calculate Rent Carefully
When you’re deciding how much rent to charge for the property, be sure not to short change yourself. Covering your mortgage is not the only element to worry about as there are other fees associated with owning rental properties , from taxes to management. You will also need a cushion for when unexpected repairs are needed or for when the property is vacant. Talk to an agent to determine the right amount of rent to charge that fits the market and covers all of your expenses.
Hire a Property Manager
A residential property management firm is one of the smartest investments a landlord can make. Property management companies can perform tenant screening services, provide maintenance, and collect rent on your behalf. They know the law in your area and can help you handle issues like leases and evictions in the right way. By working closely with your property manager, you can ensure that your investment is protected.
If you are interested in becoming a landlord, you will first need to find a few properties to invest in. It is important, however, to do some research before diving into real estate in Atlanta so that you know how to stay afloat. Watch this video for tips for buying investment properties.
There are many factors to consider when buying investment properties to rent out to tenants. First, consider the area where you are considering purchasing new properties: How is the school system? Is the crime rate low? When doing your research, learn plenty about the neighborhood. You should also consider how your properties would be managed. There is nothing wrong with managing your properties yourself, but landlords who own a handful of properties often rely on the help of property management companies to oversee day-to-day operations. This is especially helpful if you do not reside near the properties you rent.
Top Reasons to Hire a Property Rental Company
Although it is not unheard of for a landlord to forego the use of property management in Atlanta, it is not necessarily recommended either. There are many situations that may call for this type of service, especially if the landlord owns many properties or does not live in the local area. These professionals can also help landlords who are not interested in hands-on management. Here is a quick look at some of the top reasons to hire a property rental company.
Overseeing Multiple Properties
You may have started out renting one or two properties to people in your area. If you choose to develop your business, you might find yourself owning a few dozen properties that must be managed. This can be a bit much to take on for some people, which is where a property rental company becomes important. If your hands are full as it is, a property rental or property management company can take on much of the day-to-day responsibility to ensure that all tenants receive the customer service that your brand promises. The more properties you have, the more likely you will want to work with a property rental company.
Renting from a Distance
Some landlords who own multiple properties might personally reside far away from the local area. This distance can make it difficult to keep a close eye on your properties and address any issues that your tenants experience. Renting out your properties while personally being away from the area is another situation that warrants the use of a property rental company. Your management service will essentially act as a liaison between yourself and your tenants, and they will provide you with frequent updates as to how your properties and tenants are doing.
Hands Off Management
Renting out a property and managing tenants are two different tasks, and not everyone is interested in both. If you do not care for the management aspect of home rentals, have a property rental company handle it. These professionals are trained in management and capable of handling your tenants’ needs. You make the rules and your property rental company enforces them.