With house prices rising in the real estate business, most people are opting for a log cabin. Log cabins are relatively cheaper and more environmentally friendly since the logs come from trees which are renewable materials. It is very easy to decorate the interior of a log cabin. A few quality accessories and furniture will do the trick. But how can you change the exterior of a log cabin and make it attractive? With the proper guidance, you’ll find it’s very easy to change the exterior of a log cabin, and you don’t have to be a professional to do it.

Roofing

The roof enhances the overall appearance of a log cabin. When transforming the exterior of such a construction, this process will not be complete if you are left with the old roof. Much can be done to change the overall appearance of the roof. Change the color or shape or even change the roof materials! If the process is done correctly, it will transform the exterior appearance of the log cabin into something new and exciting to the eyes.

Garden

Plants bring life to and complement the exterior of your cabin. There are those who choose to grow flowers and others who go with vegetables. The garden is a perfect decoration for both the front and back yards of a log cabin. You can always choose the theme for a wishing garden, such as English, Japanese, feng shui style, and the like. It is important not to forget that the garden should be a place where good vibrations appear. What makes having a log cabin with a garden more fun is your own grown vegetables, which are an option for healthier eating. And of course for more active leisure spending.

Terrace

Basically, a terrace is a platform that extends to the outside of a building. This is a place where you can relax on the weekend and spend quality time with your family enjoying the sun or cool breeze. However, a deck changes the exterior of a log cabin. Have quality furniture and accessories on the terrace that want to create a perfect place to spend free time alone or in company.

log repair

Some logs are prone to rotting, pest infestation, and others to cracking. Records must be inspected at least once in a 6-month period. Wood is sensitive to excess moisture and pests, so proper maintenance is necessary. The best way to protect your logs is to impregnate and cover their surface with one or two coats of special covering materials or paints. If the records are completely damaged, the best option would be to replace them with new ones.

Apply sunscreen

Wood is a very sensitive material. It reacts to rain, changes in temperature and the sun, of course. The high amount of UV rays can cause color fading and cracking. Well-pigmented stains and other products that are created to prevent this will help keep the exterior of the building even more beautiful and stronger for longer. The most important thing not to forget is to apply this special protection every 2-3 years.

gutters

Gutters are one of the most important parts of a log cabin. Together with the roof, they perform a safety function from excess rainwater. It is very important to check if they perfectly fulfill the protection function. Any damage here should be repaired and broken parts replaced with new ones, as proper care of them will help you protect the walls of a log cabin from swallowing and rotting.

change the design

Log cabins are large constructions whose design, unlike other material buildings, can be changed. So if you build a log cabin, it doesn’t mean you can’t expand it in the future. With the help of a specialist, almost all wishes can be fulfilled in a design.

Turning on

When it comes to lighting, most people pay more attention to the interior of the cabin and forget that the exterior also requires similar attention. In a log cabin, exterior lights are primarily for security reasons, but this is not always the case. For those who have a beautiful garden with a terrace, various lamps will help to illuminate the necessary territory, and also give more comfort and beauty to your home environment at night.

repainted

Paints not only fulfill a protective function, but also give more beauty to the exterior. The most important thing to know here is that paints have the ability to fade, so the coating needs to be renewed every 2-3 years. The good thing is that you can repaint your log cabin in all the colors you want because the choice of paints is so wide.

Summing up, the log cabin is a perfect build for those who like to be close to nature and like to have a very flexible build that can be easily changed and modified as per wishes. The exterior is apart what gives the first impression of the warmth of a house. So take good care of your log cabin!

For most human beings, taking a shower or bath is a relaxing experience. But for our pets it can be anything but relaxing. They always run in the other direction of the bathtub when they hear the noise, the cleaning and the suds. Grooming your pet is a necessity that not only keeps their coat healthy, but also reduces allergies and the chance of infection and decreases the spread of dirt and germs throughout your home. While your furry friend may resist the idea of ​​a bath, as a pet owner, it’s your job to make it as positive and easy as possible for your pet.

But never make these bathtime mistakes while bathing your pet:

Incorrect water temperature

Pet owners make the mistake of bathing their pet in water that is too hot or too cold. Instead, you should bathe your pet in lukewarm water. As water that is too hot or too cold can create a negative stimulus that can make them resist taking a bath. So how would you know it’s the right temperature? Just spray the nozzle on your forearm and if you’re okay with the water temperature, give your fur baby a bath. Remember, the pet’s skin is more sensitive to temperature than your hand.

rough spray

Use a handheld sprayer or nozzle in a tub or sink to bathe your furry friend. If you don’t have one, spray the stream of water directly onto his fur as the loud noise of the running water combined with the pressure of the water can startle and annoy your pet. Let the water hit the back of your hand first, then move the nozzle across the pet’s body. Once the pet is comfortable, moisten all the fur of the furry companion.

Wrong shampoo selection

Never use human shampoo on your pet, even if it’s a natural solution or mild baby shampoo. Remember, a pet’s skin has a different pH balance than humans, which would dry out their skin. So, ask for a recommendation from your vet and select brands that are formulated specifically for dogs or cats. Oatmeal-based shampoo has been found to be one of the milder options. If your pet has any skin conditions, medicated shampoo is best. Ask your veterinarian to help you choose the best option for your pet based on their needs. If your pet has sensitive skin, test the shampoo on a spot on the back of the leg first, and then see if the pet feels irritated after a couple of days before bathing.

Bad soap application

Apply soap to the pet’s fur and then let it soak for a couple of minutes. But this will not remove all the dirt and oil. You need to actively knead the soap into the pet’s fur with your hands and fingers for four minutes. Start from the pet’s legs and then move on to its face. Wipe his face with a cotton ball or washcloth, but be careful not to disturb his eyes.

Clean the outside of the ear with a little bit of shampoo on your fingers, a bath towel, or a cotton ball. Tilt the pet’s head down before rinsing so water does not enter the ear canal. It will also help in preventing ear infections. Rinse the shampoo out with the shower nozzle in the reverse order of washing. Start from the pet’s head this time and then move on to its paws. This way, even if the soap gets into your pet’s eyes, it will be rinsed out first. Make sure the water is out of the studs before you finish.

bathing too often

Dogs and cats groom themselves naturally. Therefore, there is no need to bathe your furry friend more than once a month. In fact, too many baths can strip the natural oils from your pet’s coat, which can lead to skin irritation. Consult with your veterinarian about the best grooming program for your pet. Also ask them about the best shampoo based on your pet’s breed and activity level.

I was young and inexperienced, but I was convinced that I was unstoppable. He had a lot of energy and motivation. The house was in Arvada, a northwest suburb of Denver, and I bought it for an incredible price. It was part of a package with another house that he planned to keep as a rental. This one didn’t have great rental numbers, but it looked fantastic as a flip, so I bought both houses. I started the rehabilitation on both properties, with a focus on the planned rental; that would be a much easier and faster rehabilitation. That house turned out well. I rehabbed it, rented it out and refinanced it. Because I used a hard money loan, I had no money and was producing positive cash flow within six weeks. The Arvada house was a different story. That one also ended up in my rental bag, but it was far from planned.

It was after I was done with the first project that I started noticing the shady work on Arvada. There was unauthorized work everywhere. There was a small addition that was falling off the house, building material that didn’t belong, leaks that were plugged, and faulty wiring. The budget was spent before it even started, and it didn’t have the reserves to cover the extreme amount of overage. I didn’t know what to do, so I went cheap. Did a lipstick job, put the house on the market, and crossed my fingers.

I lowered the price and then lowered it again. It got to the point where I couldn’t pay off my loan and pay a real estate agent, so I decided to keep it. To do that, I had to pay my lender hard money, which means I had to refinance the loan.

This painful experience taught me many important lessons; don’t skimp on finishes, what to look for in a budget and the pitfalls of refinancing. Lending has changed since then, so I reached out to Joe Massey at Castle and Cooke, our preferred lender in Colorado, for help on the issues investors face today when trying to refinance their investment. Here is the list of traps we discussed:

Value: It is almost impossible to get an appraisal higher than the last list price. In my case, I kept lowering the price, to the point where it was listed below what could have been appraised. When I went for the refinance, the appraisal was at the latest list price and I was forced to bring cash to closing to close the deal. Refinance appraisals are based solely on comparable sales (comps) in the area, as there is no other market indication for the appraiser to reference. Also, poor quality rehab is difficult for an appraiser to value, so it is common for poor quality rehabs to have no impact on the appraised value. However, poor quality rehabs have a big impact on the actual value. Once there is exposure to the MLS, which means everyone looking for a home can see it, the appraiser has real market information that they can use to get a more accurate value. Think about it, how can the appraiser justify a higher value than what is listed on the MLS? You better count on the value coming in at or below the lowest list price.

Another hurdle with MLS exposure is time. This isn’t a big deal for most, but it’s worth mentioning. The property must be off the MLS for at least one day before you can apply for the loan. Again, not a big deal, but this will create a day or two delay in the process.

Credit: Credit requirements are a bit stricter with rental property loans compared to owner-occupied loans. Almost all loans are approved or denied by a computer system, so scores may vary. For example, if you have less than perfect credit but a higher down payment, the computer might approve the loan. In the rare event that the loan is manually underwritten, the rentals credit must be 620 or higher until you reach your fifth rental, at which point you will need to have a credit score of 720.

Entities: Conventional lenders will not lend to an LLC or corporation; you will need to own the home in your personal name to qualify. Many lenders will not lend you money if you owned the property at ANY time with an entity. Most fix and flippers do business with an entity, so you can see how this can get you in trouble with a refinance. However, all hope is not lost! Because Joe is a direct lender to Fannie Mae, he can finance it as long as his property is in his entity, but it will require you to move it into his personal name. If you hear a lender tell you that they can’t help you because you own your investment in your LLC or corporation, know that there are lenders like Joe who can.

DTI: You may hear that you can’t finance a rental because your debt-to-income ratio will be low, meaning you don’t make enough money to support all your debts. The issue here is often the amount of rent on the new property, and whether you can use it to offset the new mortgage payment. Some lenders will want to see the property on your tax returns to give you credit for the income, which is always a loss in the first year you buy a new property and rehab it; thus, making it more difficult to qualify. If you receive this information, please call another lender. The guideline here is that you can use 75% of the gross rent as income if you have a lease and can show at least one month’s rent collected and the security deposit.

Another problem with DTI is self-employed borrowers. I’ve written entire articles on this topic, because many self-employed people take as many deductions as possible. When you take a deduction, you reduce your taxable income, so you save on taxes. The problem is that when you lower your income, you damage your DTI, which makes it harder to qualify for loans. It’s not the fact that you’re self-employed that prevents you from getting a loan, it’s the income you report. The guideline here is that you can get a loan when you are self-employed if your income supports the debt. Income is documented with two years of tax returns, unless you’ve been in business for at least five years and have a credit score of 740 or higher, in which case you’ll only need one year of tax returns.

Bookings: As you start to go over budget or have issues with your fix and switch, it’s all too common to burn through your reserves to save the deal. This is understandable, but could create a problem. You must have reserves to qualify for a conventional loan, so it is very important that you have this reserved before you apply for your refinance. The guideline is a bit confusing and is based on how many properties you own. The reservation requirement is:

6 Months of mortgage payments on the property in question (PITI) plus…

• 2% of unpaid loan balances on your other rental property loans for 1-4 financed properties
• 4% of unpaid loan balances on your other rental property loans for 5-6 financed properties
• 6% of unpaid loan balances on your other rental property loans for 7-10 financed properties

You do not count the balance of the mortgage on your main home in these calculations.

You can use some of your retirement money to meet this requirement, but you’ll also need money in the bank. Check with your lender if you plan to use retirement money to meet this requirement, and they can tell you what funds need to be there at the time of application. If you start to run out of reserves, do what you can to make the house acceptable for an appraisal, and then get the loan. Once the loan is in place, go back and complete anything you need to complete that will consume your reserves.

Changes in your situation: Several things can create problems here. If you’re in the middle of refinancing, you’re probably better off not getting any additional credit or even having your credit taken away. You also don’t want to quit your job, which seems obvious, but I feel the need to mention it.

I wish I had this information when I was working on that house in Arvada, and I wish I had known someone like Joe to help me through the process.

With mobile application trends dominating the market, more and more people use their smartphones to access the Internet, thus eradicating the use of personal computers. According to a recent study, using a smartphone to make phone calls is the fifth most popular use of the device. So, if you are among those who still think that mobile phones are for making and receiving calls, then you should definitely think twice.

These days, people spend more time using their Android phones for browsing the internet, checking email, social media, gaming, music, and downloading mobile apps. With smartphones gaining in popularity, many devices and brands have started to penetrate the market. According to a recent analysis, more than 1.8 million mobile apps have been downloaded more than 70 billion times and the number is continuously increasing. Some of the best-selling mobile applications in 2013 are:

Whats App Messenger: This is a simple, spontaneous and fantastic alternative to sending text messages, which are paid. It allows people to send messages, share photos, audio files, and videos. But the best thing is that it is completely free. According to a recent report, India is the third largest smartphone market after China and the US that has downloaded the most messaging apps. Therefore, the Japanese messaging app provider aims to double its user base in India to 20 million by the end of the year.

Imo Messenger: This free app supports everything from Facebook to Skype, and people can be linked to multiple accounts. Voice calls, media files, or even group messaging sessions, users have endless flexibility in using this cross-platform solution.

Tapatalk Forum App: If you want to browse and post on forums without any hassle, then this is the app for you. You can stay up to date with all the threads in Tapatalk’s simple interface just by paying a few bucks.

Dolphin Browser – This is a Chrome competitor that offers Sonar, plugin support, and gestures. With these on your mobile, you can search, navigate with voice commands, dial, and even share. It offers more than 55 plugins to choose from and is absolutely free.

Best App Market – If you are too confused about choosing the best apps in the market, then this is the right tool. This is free and allows you to organize your downloads with the help of carefully selected lists and tools.

This is not. There are many other mobile apps like GasBuddy, Widegtsoid, iTriage Mobile Health, Chrome Beta, Pulse News and Swift Key 3 keyboard which are available for free and absolutely amazing.

Many investors ask me what is the best way to acquire rental properties. Finding investment properties is usually not the problem, financing the properties is.

The main difference between buying “retention” properties (rentals) and buying investment properties to rehab and resell is financing. For flip properties, you only need to borrow for 6 to 9 months typically. For rentals, your financing will be the traditional 30-year term.

When we started investing in 2005, banks made up to 8 mortgage loans per qualified borrower. So, I got 8 home loans in my name, then Jim got 8 in his name.

Today, the big financial institutions still offer the cheapest long-term financing available, so I recommend you start there. Check with national lenders, local banks and don’t forget credit unions. See what financing they offer, how many rental loans they’ll do, and how you qualify.

If your goal is to own a lot of rental properties, don’t pay cash for the properties; it is better to have a mortgage. Financing is available for 10, 15 and 20 years, but opt ​​for 30-year mortgages. Keep your monthly payment as low as possible to get as much cash flow as you can at the start of your property. Once you have a large enough portfolio and enough funds coming into your business, you can always pay off the loan early, but you can never request a reduction in your mortgage payment amount.

Another advantage of the mortgage balance is that you can claim the interest deduction on your taxes. Leases offer so many tax deductions that you need especially if you are making changes and bulk deals.

You need cash on hand to qualify for additional mortgage funds, so don’t overinvest in any property you plan to keep. For years, we changed all the properties that we invested a lot of money in, everything that needed rehab, and kept only the properties that had very little of our own money invested.

Eventually, you’ll use leverage to build your portfolio, borrowing against the capital you build up on your rentals over time. We have borrowed against our properties more than once to obtain the funds we needed to acquire more.

How do you find the funds to purchase rental properties? Do you plan to pay them off early or wait and let your tenants pay off the entire mortgage over time?

The typical commission required by a real estate agent to sell a home will be around 6%, depending on where you live in the country and market trends. This can be a substantial sum of money that the homeowner does not want to part with. Some homeowners will try to sell their home on their own, but keep in mind that up to 80% of homeowners end up listing their home with an agent after receiving little interest in the property. One of the main reasons for this is that realtor word of mouth is the best publicity there is for selling your home. Even if you successfully market your home, the buyer will most likely have an agent to whom they will still have to pay a commission or search fee. If you think FSBO is the method for you, take a moment to consider marketing strategies that can help make the process easier.

Accurately pricing your home is the most important step in the process. If you overvalue your house, you are doomed to fail. Take a look at comparables in your neighborhood. Be sure to note any features these homes may have that yours doesn’t. Look at the square footage, the lot size, and most importantly, the condition of your home compared to others. If the house down the street is selling for $50,000 more than another, be sure to find out why, they may have invested in a high-end remodel that justifies the price. If your home is on the market for an extended period of time because it is overvalued, buyers may begin to suspect that there is something wrong with your home.

The Internet is an invaluable marketing tool that anyone trying to FSBO should use. There are many FSBO websites that offer assistance for free or for a nominal fee. Since the Internet provides access to your home remotely, you’ll need to make sure the photos you use are well done and look professional. Most buyers won’t even bother looking at a home listing that doesn’t have eye-catching photos. Make sure your house is really spotless when these photos are taken. Trim bushes, mow the lawn and remove any clutter. If a chipped front door is the only thing wrong with your house, the buyer will never know because they will never come to see your house if the initial presentation is poor. First impressions absolutely count in real estate. Take photos of every room in your house and upload them. Be sure to open up windows, hide clutter, and highlight unique features like a fireplace or built-in bookshelves.

Be as descriptive as possible when listing your own home. Buyers are interested or they wouldn’t be looking, so more information is better. Post signs if possible. Advertise in every reasonable real estate newspaper and magazine. Send an electronic brochure to realtors who represent your area and invite the realtors to tour your home. It is much easier to market a house than you have seen. Make sure real estate agents can easily access your home, if you place too many restrictions on access to your home it will be prohibitive for a sale. Finally, have open houses. Invite neighbors to the open house; they may have family who would like to live nearby.

Selling your home can be a daunting experience. But if you’re committed to a FSBO, be prepared to do a lot of marketing of your own. Take advantage of all advertising outlets. If you are one of the lucky few to be successful with this method, you will have saved thousands in realtor commissions. However, keep the market in mind when considering this option. Selling your home in a timely manner when it’s listed with a real estate agent can be worth saving a few dollars in commissions.

Looking to buy commercial real estate for your business or as an investment? The following are ten (10) reasons to seriously consider using a commercial real estate agent to represent your interests.

10. Provide an administrator for the purchase process.

A good Commercial Real Estate Agent will keep your property closing on track. For example, what is the status of the title commitment? Are there any questions or concerns regarding the title pledge? Has the survey been ordered and completed? When does my viability period end? When does my security deposit become “hard”? Is the financing in place? Is an appraisal required and has it been completed? Have the necessary inspections been ordered and are they complete? Has a lawyer reviewed the purchase contract? Have all closing documents been reviewed?

9. References to experts who can help with the purchase of the property.

Commercial Agents meet other real estate professionals who can bring their expertise to the property buying process. Professionals such as attorneys specializing in real estate, title companies, surveyors, engineers, architects, CPAs, insurance companies, building/property inspectors, environmental consultants, contractors, appraisers, etc.

8. Help with due diligence.

As part of the property purchase process, an experienced Agent can assist the Buyer in ensuring the appropriate items are researched to ensure the property will work for the Buyer’s needs. Due diligence is the pre-purchase effort made to discover and analyze information about the property under contract. Agents can help Buyer obtain necessary documents and provide a checklist of these items, including zoning information, jurisdictional requirements, floodplain, easements, covenants, conditions and restrictions, utilities, etc.

7. Identify and assist with property condition assessment.

Sales agents can help buyers identify the most important elements to consider as part of the buying and evaluation process, including a look at:

* Rental

* Physical condition

* Permitted uses

*Limitations on interior/exterior additions or renovations

* Adaptation of accesses and parking lots

* Opportunity to expand or lease excess space

6. Experience of working with other Buyers

Based on past experience, Agents may recommend other considerations to the Buyer, such as: “Consider purchasing additional square footage that will provide space for your business to grow and until the space is needed, the additional space can be leased and help provide to pay the monthly bills. .

5. It allows you to spend time with your business.

Let a commercial agent spend their time finding your property, which will allow you to spend your time conducting your business. Focus on his experience and let an agent help you by focusing on yours. Time is too precious a commodity to waste driving around looking for a property.

4. Experience in negotiating prices and terms.

There is no other business professional with the experience and knowledge of a Commercial Agent to assist with purchase price and contract negotiations. Questions such as: What is a reasonable and fair price for the property? Is this a good buy? What terms and conditions must be in the contract to ensure that my interests are protected? Do I need to get a certain amount of inspection and feasibility time as part of my purchase contract so that I can better study the property and confirm that it meets my needs?

3. The cost for the Buyer is zero, zip, nothing.

The Seller pays the Buyer’s Agent commission through a commission agreement between the two parties. The total cost is borne by the Seller.

2. Experience in the local market

Nobody is going to know the local commercial real estate market as well as a Commercial Agent. The listing agent will not tell you if your property is listed above market rate and only an experienced agent can advise you on a location that makes sense for your particular type of business.

1. The Buyer’s needs differ from the Seller’s and need representation to protect their own unique interests.

The Seller or Owner will be represented by a Listing Broker and the fiduciary responsibility of this Broker is towards the Seller. The Texas Real Estate Commission (TREC) “Information on Brokerage Services” states that “the broker who lists the property for sale or lease is the owner’s agent.” It further states that “a listing broker may assist Buyers, but does not represent the Buyer and must put the Owner’s interests first.” Finally, it states that “Buyer should not tell the Owner’s Agent anything that the Buyer does not want the Owner to know because the Owner’s Agent must disclose to the Owner any material information known to the Agent. This is not a good situation for a Buyer to be in. Sellers have representation from their Listing Agents, Buyers need the same from a Commercial Buyer Agent.

As with any legal document, it is important that you have a professional draft of the agreement. Together you can decide who the trustees and beneficiaries are and how long the trust will last. Keep in mind that irrevocable trusts are nearly impossible to change once they go into effect.

The next step would be to transfer your residency to the QPRT. This is done by creating a new deed that transfers the house from the owner’s name to the QPRT’s name, which will be recorded in the property records. If you have your original deed, you can easily make changes without the cost of a lawyer. Simply copy the deed into your computer, make changes to the part about transferring or buying the property, and keep the rest the same. You will not know the page number of the document filed with the county clerk’s office, so leave that part blank. Everything else must remain the same. A warranty deed will suffice. The third step is to obtain a valid real estate appraisal.

The third step is to report the gift to the IRS. This is done by completing a Form 709, United States Generation Skip and Gift Transfer Tax Return. This form must be completed and filed with the IRS by April 15 of the year following the year in which the property was transferred to the QPRT. Example: Ownership transfers on July 15, return is due the following April. Once it is complete, the best part is that you can reside in the home and live your life as usual.

After the predetermined number of years for the QPRT ends, ownership transfers to the beneficiaries as detailed in the QPRT. This is accomplished by registering a new deed that transfers residence from the name of the trust to the name of the beneficiaries and documenting this in the property’s land records.

The last step is to pay a fair market rent for the property if the previous owner wants to continue living there. The income will transfer more assets to beneficiaries free of gift taxes and will reduce the size of the taxable estate.

In leasing today, and in particular in commercial and retail real estate, it is common to come across the word ‘depreciation’. In short, the word explains the concept of recovering incentive costs from the lessor over the duration of the lease.

In this real estate market we need to attract tenants to the property and encourage the decision to contract a new lease. In the case of occupancy by new tenants, the landlord may choose to provide some incentive which could be free rent, new equipment or reduced rent. This is common when the market is in a downturn or downturn and there is an oversupply of vacant space. In today’s market this is the case and will continue to be so for some time to come. The creative provision of incentives is part of the leasing process.

Get your incentive money back!

When the lessor provides such incentive activity, it is common practice to recover the costs of that incentive to the lessor plus interest on the funds provided, and such recovery should be structured over the term of the lease. Amortization is the process that accomplishes this.

This suggests that any incentive, rental reimbursement or rent-free period is not really free. That is certainly the case, and an experienced real estate agent or broker will support the process and economics of the lease agreement to ensure that the owner-funded incentive is recovered in some way.

What do tenants want?

When tenants apply for a new lease and some incentive as part of it, they don’t expect to hear about the amortization process and the economics behind it. They don’t want to hear that the good incentive they have to get into the lease must be repaid while they are in occupancy. Let’s say the concept is known between the agent and the landlord and the incentive recovery is structured (added) in the rent profile and rent review processes during the lease.

The tenant in the current market thinks that the market is slow and in his favor, and based on that the owner has to do something that attracts him to the property. That’s where the incentive becomes part of the negotiation. An incentive can be anything of value to the tenant, but is typically one of the following:

• Rent Free Period
• Rent Reduction Period
• Cash paid to tenant
• Conditioning provided to the tenant

Whichever incentive is used, it is up to the real estate agent to structure the rent and incentive process in favor of the landlord as part of the deal negotiation. At the end of the day, a tenant just wants to know about the facilities and the total rent to be listed in the lease.

It is the real estate agent’s job to ensure that the incentive is structured in such a way that the landlord achieves the recovery of the incentive disbursement. The tenant does not always want to know the exact details of what he is doing in the rental business. They just want to know how much they are paying for total facility occupancy on a monthly or weekly basis and how that rent will increase over the term of the lease.

In a calm market with a saturation of free premises available, it is common for incentives to be very active and sometimes reach a level of 30% of the total rent normally paid under the lease during its term. On any new property project, the incentive level will go up slightly to approximately 37%, but by doing so, the project developer will have built that incentive cost into the project. In such a case, tenants will pay an inflated rent (such as a nominal rent) to allow the developer to recoup the outlay.

So how is it done?

So rent and incentive trading is something like that. If the rent of the premises without incentive is $200 per m2 pa (apologies to those who calculate the rent per foot), and the incentive that is going to be given to attract the tenant to sign the lease is equivalent to an amount of 10 % of the rent recovered from the tenant during the term of the lease, then the initial rent must be $220 per m2 pa. This is called ‘nominal rent’. The non-incentive rent paid in the lease ($200 per m2) is called the ‘effective rent’.

Whatever the initial rent (notorious or effective), it will then be escalated by a rent review structure that is practical and fair in the market. Your good knowledge of the market is part of this evaluation and lease decision. The owner needs to know what is right and fair in the prevailing market conditions in order to attract tenants to the property. Extended vacancies are not a real strategy here and should be avoided; even a lease that has a low initial rent or a higher incentive level, can accommodate a better rent level for a few years and thus be in line with market rent at a later time.

By the way, property values ​​will always find out the type and amount of incentive that was provided to a tenant to entice them to sign a lease. The appraiser will then remove the incentive from the property’s value as part of the appraiser’s professional appraisal process.

In some cases, a landlord will want (or try to) “hide” incentives paid in any lease from the appraiser for this very reason; this ‘concealment process’ is common when a property is being valued for mortgage loan purposes. I’m not saying this ‘concealment process’ is ‘legal’, rather it happens, and a good real estate agent will know and understand what the rent on a property really is (without the incentive). Financiers know incentive mechanisms and how they are provided and documented, and property values ​​similarly. It is important to note that the level and type of leasing incentive in the market is known to all parties and is not unnecessarily exceeded.

How to do this?

When managing the amortization of lease incentives, it can be done in a number of ways. Consult with a local attorney to ensure that you comply with the standards and laws of your area and country. These are some examples of how incentives are handled.

1. Some landlords choose to have the incentive payment process added to the rent that would normally have been paid had an incentive not been provided. In this case, the tenant does not always understand that the rent has been inflated to recover the incentive for the landlord. Nothing is ‘hidden’, it is just that the tenant pays a high rent for the premises.
2. Other owners may choose to have the incentive amortization itemized separately in the lease document as a separate ‘charge’. In this case it becomes a separate incentive rent payment each week or month and the tenant knows what it is for. Anyone who reads the lease clearly sees the incentive and all parties know what is going on.
3. Other lessors may choose to have the incentive amortization documented in a separate agreement between the parties, away from the lease itself. This is usually done by way of a separate legal ‘deed’ or agreement. Since the tenant signs the ‘deed’, then they know that they are paying and of its existence. It is the other people reading the lease who may not be aware of the existence of the incentive. If this is the case, be especially careful at the time of the property sale, as the potential buyer of the property will want to know the full occupancy trade.

The important message here is to understand that incentives are active from time to time when you lease properties in a market that has an oversupply of space. Incentives are the owner’s way of attracting interest in the occupancy. As a professional real estate agent or broker, it is your job to ensure that full recovery of incentives is achieved. You must demonstrate to the landlord that you will recover all of your incentive money from the tenant during the term of the lease (not the lease option), along with a fair and reasonable market rent for the premises and the location in the that you work.

A good rental incentive is one that lures the tenant into the property and then returns it to the landlord as quickly as possible.

We all know that homes with limited space may not be ideal for growing families, but with an abundance of condo projects on the real estate market, home seekers will have no trouble choosing a location that suits their needs and preferences.

Benefits for parents

1. Reduced housework

When a couple moves into a single-family home, their daily chores are often fraught with additional household chores like mowing the lawn, maintaining amenities like swimming pools, and even preserving the overall appearance of the home. Now, with condo living, these duties will be handled by management and out of the hands of the unit owner.

2. Mobility

Condominium units are usually strategically located in fast-growing business districts or cities. This means unit owners can enjoy the benefits of having everything they need at their fingertips, including schools, hospitals, grocery stores and more. Not to mention the various amenities offered by the management.

3. Cordiality

Parents will have the opportunity to interact with other inhabitants of the property. This can be an enjoyable experience, especially for stay-at-home moms, as they can trade services, offer to babysit, host dinner parties, and organize regular walks around town.

4. Easier management

Being in a self-contained neighborhood can help parents keep track of their children. People are more likely to know who is who and with security and property protection accessories, parents can easily know the whereabouts of their children.

5.Investment opportunities

Families who live in condominiums generally move when their children reach their teens. Your children may need larger spaces or parents may start looking for a place to settle for retirement. At this point, they can put their unit up for sale or rent and earn additional income.

opportunities for children

1. Interaction with other children

Condo living can help shy children learn social skills by interacting with other children in the building. Unlike a traditional neighborhood or subdivision, living in a high-rise property will allow you to meet different roommates on a daily basis. Even better, parents can keep track of who their kids are interacting with.

2. Extracurricular activities

Real estate properties often have amenities that promote physical activity and wellness. Facilities typically include swimming pools, gyms, yoga stations, and more. With these adaptations, parents no longer need to go out of their way to provide little ones with their daily dose of exercise.

3. Flexibility

As I mentioned earlier, families eventually decide to move once they need a larger space. This does not mean that opting for a single-family home is the only option. Families may also choose to move to another condo unit that has enough space to house them. By doing this, children will not have to change schools or neighborhoods.

Despite all these advantages, a condominium unit is just like any home. It still needs the supervision of a responsible adult to become a safe haven for both parents and children.