Listing Courtesy of VICKIE YORK AT THE BEACH REALTY
At first blush, deciding to hire a Ocean View professional property manager may seem counter-productive. Whether you bought the property you will be renting out specifically for that purpose, or else are simply holding onto your former home rather than selling it, the expense of employing a Ocean View property manager will materially reduce the cash benefit your rental promises to throw your way.
In fact, many new landlords don’t seriously consider hiring a property manager. It’s an offshoot of their own long-time home owning experience. They’ve learned to handle the residential maintenance issues that crop up from time to time, so it seems unnecessary to hire a professional manager for the occasional problems they know how to solve themselves. They may acknowledge that there will be twice as much to handle, it still may seem to be a needless extravagance. After all, the two great benefits of becoming a landlord are to build equity and generate income, so why give away part of the latter?
One cogent reason is the principal difference between managing a rental and your own household. In your own home, you aren’t answerable to any outside entity. When a faucet starts leaking or a circuit breaker blows, you are free to ignore it until the weekend or whenever it’s most convenient. That’s simply not true for a conscientious landlord. Even with a cooperative, understanding tenant, in a way, you almost become your tenant’s employee (or at least it can seem that way when the phone rings at an inconvenient moment). A good tenant rightfully expects his residence to be maintained promptly and diligently; it’s your part of the rental bargain.
Another factor that argues for opting for a reputable Ocean View property manager goes to another difference between managing your own residence and a rental. The professional has so much experience in all aspects of property care that he or she is considerably more likely to have dealt with any given situation. Likewise for handling the technicalities of attracting and interviewing tenants, and seeing that contractual issues are completed correctly—tasks that need to be handled with legal exactitude.
There are plenty of reasons that can make hiring a property manager a sensible move, starting with those quality of life issues—your life! For retirees or others with abundant spare time, they may not be as significant; but for fully-employed persons, the time factor and necessity to “be on call” can be crucial. I always recommend giving the professional management option full consideration. Of course it’s always possible for a first-time landlord to test the waters for a while before making the decision—though it’s important to realize that one false step can escalate into costly legal troubles when it comes to national and state civil codes, fair housing laws, and tenant rights. Ignorance of the law will be no excuse for do-it-yourself landlords who are unlucky enough to find themselves on the wrong side of a tenant dispute—so be sure to educate yourself and have access to a reputable Ocean View landlord-tenant attorney
If a Ocean View income-producing real estate investment opportunity is something you would like to explore, this summer has produced some properties with terrific potential. Give me a call anytime to discuss how best to explore what’s out there! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
If you’ve ever had the kind of neighbor who is apt to borrow something (like your hedge trimmer), only to later complain about how it performed, you know how much patience it takes to hold your tongue. The Mortgage Bankers Association would be justified if they felt that way about me: I read their website, and sometimes quote it in posts about current Sussex County mortgage rates—but it sure makes for dull reading!
Anyway, with apologies to their (undoubtedly hard-working) writing staff, last week’s blog about national mortgage rates was as numbers-heavy as usual, yet still held a contradiction…but one that actually makes perfect sense. It also flags what could be seen as a bellwether that Sussex County home buyers and sellers would be hard-pressed to ignore.
The apparent contradiction was that mortgage rates were on the increase: national mortgage rates for 30-year fixed loans rose to 4.17%, which is the highest they’ve been since November. This is for conforming loans; the jumbos (greater than $417,000) went north as well, up to 4.15%.
As everyone knows, low mortgage interest rates are terrific for our Sussex County residential home sales. The low monthly payments that they create make homeownership more affordable for a greater number of buyers. So when rates increase and monthly payments go up, it should create a drag on the market. The apparent contradiction in the MBA release was that the increase in rates was accompanied by an increase in mortgage applications. And it was a big one: up 8.4% from the week before.
Most commentators were united about the phenomenon, and it’s hard to disagree. In addition to the natural surge that comes with the season (spring and summer are always expected to be quite active), consumers are seeing the uptick in mortgage rates and suspecting that rates will head higher. That’s nudging them to action, causing them to jump in now, while rates are still attractive—especially compared with historical averages.
CNBC’s Diana Olick agreed that such sharp increases actually help the home-buying market. She quotes one lender’s take about the buyers: “They understand that ‘wait a minute, rates are at an all-time low, let’s react now, let’s react before they go higher.’”
It’s far from a certainty that rates will continue to take off. Lots of us remember last year, when almost all the experts predicted a rise, yet mortgage interest rates headed in the opposite direction…and stayed there! But you can hardly blame area buyers if they go with the national trend and decide that locking in today’s rates is a prudent move: it’s a bird in the hand.
If you have been thinking along the same lines, I hope you will give me a Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.