What should you do if your landlord is facing foreclosure?

by Enrique Jevons

One of the worst things that any tenant faces as a renter is finding out that the owner of their rental property is currently going through foreclosure.

This means that ownership of the property will be changing hands and the new owner may be very different than the old one or they may want to remove the tenant from the rental property altogether.

If you live in Washington State and have found out that the owner of the rental property that you're living in is about to go through foreclosure, this article will provide you with things that you need to know as a tenant about the foreclosure process.

Do You Still Continue Paying Rent While the Property Is in Foreclosure?

Yes, even though the property is going through foreclosure, you continue paying rent on time every single month and complying with the terms of your lease.

After the foreclosure process has been completed you will no longer continue making rent payments to the original landlord, you will begin making payments to the new owner of the rental property.

Will You Have to Vacate After Foreclosure?

No, you will not have to immediately vacate the property after it has gone through foreclosure.

As a tenant, your rights will continue to be protected and if the new owner of the property wants to evict you they must go through the eviction process in the State of Washington which includes sending you a notice to vacate the rental property.

Let's say that someone contacts you claiming to be the brand-new owner of the rental property and they are requesting that you pay them rent. Before conducting a financial transaction with the new owner you should ask to see their trustee's deed to confirm their ownership of the rental property.

If the new owner does not have a trustee's deed, another step that you can take to verify their ownership is to contact your local county recorder or auditor's office to view current ownership records of your rental property.

What to Do If the Owner Pays Utilities

Does the owner of your rental property currently pay utilities? If so, one of the clearest signs that they are going through the foreclosure process is if the utilities have been turned off.

To confirm that they are indeed going through foreclosure process you should contact your local county office and request a notice of trustee sale to find out if the property is indeed in foreclosure.

Your Landlord’s Obligation During Foreclosure

In Washington State, the law requires landlords to notify their tenants that the property they are currently living in is about to go through the foreclosure process. The landlord, trustee, or bank, must provide the renter with a notice at least 120 days in advance of the day of the foreclosure sale so that the tenant can make a decision if they want to either stay in the rental property or move.

While your rental property is going through foreclosure, you should remind the owner of their obligation to either return your last month's rent and deposit back to you or to transfer that money over to the new owner.

If the old owner of your rental property fails to return your last month's rent and deposit they may be found liable to pay you twice the amount of your deposit, court costs, and or attorney fees.

One important thing that you can do during the foreclosure process to protect yourself and your rights as a tenant are to file a notice of non-abandonment with the owner’s mortgage company so that subcontractors, buyers, and lenders will know about that rental property you are living in is occupied and has not been abandoned.

What to Do After the Foreclosure

Ideally, one of the first things that you want to do after the foreclosure has been finalized it's to meet the new owners of the rental property to find out if they want to keep you on as a tenant or if their goal is for you to vacate the rental property.

It’s not uncommon for some new owners to have the desire for tenants to vacate a property after it has gone through foreclosure but, it's important for the new owners and the tenants to know that the tenants’ rights must be respected, and the law must be followed, since every tenant has 60 days or more before the end of the monthly rental before they have to vacate a rental property.

If the new owner of your rental property has the desire to get you out of the rental property before 60 days, one option that they can offer you is cash for keys.  This means that the new owner agrees to pay you cash to vacate the property quickly but the rental property has to be in broom clean condition.

Let's say that you decide to accept cash for keys, make sure that the new owners offer is in writing, there must be clear terms and the agreement, and it also must be signed by you and the new owner.

Search for Rental Properties

To search for rental properties in Washington State contact Jevons Property Management today by calling us at (509) 895-7777 or connect with us online.

5 tips to picking a great roommate

Searching for information on how to pick a great roommate? If so, you've come to the right place!  

Choosing a roommate is one of the most difficult things that anyone can do because you’re going to be living in a home, apartment, condo or townhome with someone else and you want to feel safe, secure, and confident with having that other person in your personal space.

Thankfully, this process will be easier than you imagined especially if you follow these simple tips.

Tip #1 - Look Beyond Friendships

Although your first instinct may be to ask a friend if they would be interested in living with you, this should be the last thing that you do because, living with a friend may ultimately lead to ruining the relationship that you have with them especially if you find out your friends deep, dark secrets, or bad habits that only come out in a living situation.

To avoid ruining friendships, one of the first things that you should do to find a great roommate is to turn to the internet for help. You can start with placing ads for roommates on websites like Craigslist or use social media websites like Facebook to see if there's anyone who may not be in your immediate circle of friends who would be interested in living with you.

The key to success when you start reaching out to people, inquiring if they would be interested in living with you in a roommate situation, is to interview them and ask a potential roommate questions regarding their habits, likes, dislikes, lifestyle, and their sexual habits just so that you can feel confident coming home every night and living in the same space with them.

Tip #2 - Outline Expectations

Once you find someone who would potentially be a great roommate, the next thing to do before finalizing your decision to choose them as a roommate is to outline expectations. This means that you should tell your potential roommate the things that you will and will not accept from them.

Some of the things you may not accept include:

• If your home only has one bathroom, you will not accept them leaving the toilet seat up.
• You don’t like dirty dishes left in the sink.
• You will not accept a dirty house.

Some of the things you may accept include:

• They may come home in the early morning hours when you have to go to work the next day.
• They may have a relationship and their boyfriend or girlfriend may sleep over from time to time.

Tip #3 - Don’t Be Afraid to Talk Money

Like any partnership, you can't be afraid to talk money, especially if you want your roommate to contribute financially to paying half of the rent and bills on a monthly basis.

When sitting down to talk with your roommate about money, you should ask them about their job, find out how long they've been employed and confirm with them that they earn enough income on a monthly basis to cover their fair share of the bills and expenses that will come from living in a roommate situation with you.

If you plan on having services like satellite television or Internet, and your roommate does not want to use those services, it should be made very clear that those services are just for you so you don't get a bill in the near future with additional charges for movies ordered on Pay-per-view, or data that you didn't use.

#4 - Find Out If You Have Shared Interests

Living with a roommate can be great but, the truth is that it could be even better if you both have shared interests.

Shared interest makes it easier for two people to connect on the same level and talk about things that interest them even though they both may come from different backgrounds for walks of life.

Find out If you have a shared interest in sports, recreation, music, movies, television shows, travel or work.

Once you find out that you have shared interests with your potential roommate it will be easier to communicate with them than it would be to talk with a stranger and the good thing is that there will always be someone else that you can hang out with and do something that interests you.

#5 - Do You Have Similar Temperaments?

Last of all, but most importantly, after finding someone who you think may be a great candidate to live with you as a roommate, one of the most important things that you should do is to talk with them about their temperament.

This means that you should ask them specific questions about their socializing habits and what they consider to be exciting because your idea of excitement could be a night at home with a good book and a tall cup of coffee while their idea of excitement could be having friends over at the house for a party.

Analyzing temperaments is critical when choosing a roommate because everything may look great “on the surface” but if their temperament is completely different than yours this could lead to trouble pretty quickly and ruin the relationship with your roommate.

Search for Rental Properties Here

To search for rental properties in Yakima Washington, or the surrounding area, contact Jevons Property Management today by calling us at (509) 895-7777 or connect with us online at www.jevonsproperties.com. To search for rental properties in King County or Pierce County, connect with us online at www.pellegopropertymanagement.com

What Do Banks Look for In a Rental Property Investor?

By Enrique Jevons

How can I borrow money to buy a rental property? I am not a lender, but I have purchased a lot of rental properties over the years and currently, and I currently have over 100 in Washington State. So, here are my thoughts:

Many people over the last two years have invested in rental properties for the first time.

Some investors have tapped into the equity in their primary homes, 401K, retirement income, or other sources of funds like an HELOC to get started while many others have had to go to the bank for financing.

If you’re just getting started with investing in rental properties and will have to go to the bank for financing, this article will provide you with insight into what the banks look for in a rental property investor.

Down Payment

During the process of buying a primary residence, you may have received the advice from a lender or mortgage broker to put down at least 20%.

The same is true when buying a rental property, down payment does matter, but it’s even more important and most lenders we'll expect you to put down a down payment as high as 25%.

Paperwork

When buying a rental property, you should also make sure that your financial paperwork is ready to show a lender. This should include at least two months-worth of statements from your bank, investment accounts, retirement accounts, and pay stubs.

Besides your regular financial paperwork, you should also come prepared with your social security card, driver’s license, and if you recently declared bankruptcy or you got divorced you should also have your bankruptcy discharge form and or separation papers.

Write Everything Down

Are you anticipating getting a gift from a family member or friend? If so, be prepared to document this gift because you don’t want the lender to regard the gift as a debt.

Credit Score

Your credit score when buying your first rental property is also important, most lenders will expect you to have a credit score that's not lower than 740 because any credit score that’s lower than 740 means that you most likely will have to pay higher interest rate.

Don’t Choose A BIG Bank

Although working with a big bank may be ideal for some investors, the reality is when you're getting started it's often times better to go to a smaller bank.  Why? Smaller, neighborhood banks often have more flexibility than bigger Banks, they also are in many cases more knowledgeable about the local market and they will have a greater interest in investing money locally because they know that it will make a difference in the area.

Private Money

If by chance you've been turned down by a bank, you may want to consider a private money lender.

The private money lender is an individual or lending institution that will typically lend money for a higher interest rate.

Although this source of financing isn’t always ideal, if the property is a good investment, it may make sense to go with a private money lender especially if there's a good possibility of cash flow and appreciation over time.

Learn More

To learn more about what lenders will look for when you’re applying for a loan for your first rental property, or to speak with us about our property management services, call Jevons Property Management today (509) 895-7777 or connect with us online at www.jevonsproperties.com

5 Ways to Cool Down a Room Without Using Air Conditioning

By Enrique Jevons, Property Manager

It’s August 2017 and with some of the hottest days of the year set to come just about everyone is searching for ways to cool down their room, or homes without using air conditioners.

Not everyone can use air conditioners all the time for health reasons and most people would prefer to save money on energy costs during the summer months. Thankfully, using an air conditioner isn’t always necessary and you can cool your living space down simply by following these tips.

Tip #1 – Place Box Fans in Windows at Night to Bring in Cool Air to Your Home

In today’s world, most people will still continue to use their air conditioners during summer nights even if temperatures get down to the 60’s and 70’s outside because they don’t let the heat that’s accumulated in their homes out at night so the home stays warm even with the use of air conditioning.

If your home has windows in each room you should purchase box fans from a store like Walmart and place those fans in each window at night to suck in the cool night air.

Depending on your area you should leave the box fans in your windows all night long to bring in that cool air then removes them from your windows in the morning, close the windows and turn on ceiling fans or oscillating fans to keep that cool air trapped in your home during the day.

Tip #2 – Invest in Eclipse or Blackout Style Curtains for Your Windows

These curtains are important because they are made of thick material and will block out any heat or sunlight from entering your home if they are closed during the day.

Eclipse curtains also work well for keeping homes insulated during the winter and this makes them one of the best investments you can make for your home regardless if you’re renting or you own your home.

Tip #3 – Limit Cooking in The Oven on Hot Days

Unfortunately, we all can't limit our cooking but we can change the times when we cook on days that it’s very hot outside.

For example, instead of cooking dinner at 5:00 pm when you come home from work you could invest in a crockpot and let your crockpot do all of the cooking during the day so you can have a ready to go meal for your family when you come home.

If you enjoy baking you should avoid baking during the heat of the day and plan on baking later in the evening when it's cooled down outside or on weekends.

It’s also an excellent idea to invest in a nice barbecue so you can cook outside on hot days and avoid heating up the inside of your home.

Tip #3 - Invest in Energy Efficient Light Bulbs

During the summer months, it makes sense to cool your home any way you can and another great way to do this is to purchase energy efficient light bulbs.

This is a smart move to make because not only will these bulbs lower your monthly energy cost, they will also keep your home cooler during the summer months because they emit less heat than a traditional incandescent light bulb.

Can’t find energy efficient bulbs locally? Consider purchasing them online using sites like jet.com and you will be able to save money.

Tip #4 – Unplug Electronic Devices When You’re Not Using Them

Did you know that your electronic devices create heat? Even when you’re not using them?

If you don’t plan on using your tablet, laptop, DVD player, TV or PC during the day you should make sure that those devices are unplugged since this will keep them from heating up your home and also help you to lower your energy costs as well.

Tip #5 – Create A Cool Bed to Sleep In

Last of all, but most important, one of the top things you should do to get your home ready for those warm summer nights is to create a cool bed to sleep in.

This should be done by removing blankets and comforters that you may still have on your bed from the winter months. They should be replaced with summer bedding which includes cotton sheets and maybe one thin blanket.

After changing your bedding, you can also take it a step further by investing in pillows or a new mattress that’s designed to keep you cool when sleeping.

Thankfully, there are a wide variety of brands that produce mattresses and pillows that are made with materials like Bamboo which have been proven to cool down the body and contribute to a better night’s sleep.

Get Property Management Here

Are you interested viewing the latest rental properties or speaking with us about our property management services? Contact Jevons Property Management by calling us at (509) 895-7777 or connect with us online through our website.

Should I Invest in Rentals Out of State?

Should I Invest in Rentals Out of State?

By Enrique Jevons

Another property management question that’s been commonly been asked by investors over the years is if they should invest in rental properties that are located out of state.

This is a great question to ask because thanks to the internet every investor has the ability to research a rental property online and learn more about the area where the rental is located without having to take the time to visit it in person.

The answer to this question is yes, you should consider investing in an out of state rental property but, you should answer these questions first before making this investment.

Do You Already Own Rental Properties in Your State?

This question is important because you don’t want to make your first rental property an out of state rental unless the rental property is a move in ready.

Why? That rental property may need renovation, and there’s nothing worse than having to manage renovations at a rental property when you’re out of state. Especially if you don’t have a property manager or team in place to help oversee those renovations.

Do You Have Experience as A Landlord?

In today’s Real Estate investment world many people think that owning an out of state rental property will be as easy as point and click but the truth is if you don’t have landlord experience already, and you plan on managing that out of state rental yourself, you may find that it will be more difficult than you imagined.

When you self-manage a rental property, you have to be ready for calls from tenants at all hours of the day (or night), maintenance requests, and other issues that will make out of state management difficult if you’re managing those rentals yourself.

Without a property management team that you can trust, managing an out of state rental will also require you to have a local vendor matrix so you will know who to call when problems arise at your rental property and you should also be able to either drive to your rental or fly out at a moment’s notice to oversee major repairs if they are needed.

Having a property management company, you can trust to manage your out of state rental will make the process of being an out of state property owner easy because you will have someone that you can trust to manage things like marketing your rental online, tenant selection and maintenance so you can continue focusing on building your portfolio of rental properties.

Make Sure You Hire a Strong Property Management Team

Regardless if you plan on investing in rental properties in Washington State, or elsewhere in the world, make sure that you hire a property management team that’s experienced with managing rental properties in the area where your rental is located.

When hiring a property manager make sure that you hire a company that has verifiable experience online. You should also find out how many rentals they currently manage, confirm their monthly fees, verify how they handle maintenance issues and make sure that they actually offer real customer service and not an automated system for dealing with their tenants.

Hire A Property Manager

Do you own rental properties in Washington State and are considering property management? Contact Jevons Property Management today by calling us at (509) 895-7777 or click here to connect with us online.

Washington State Rental Properties by Jevons Property Management

Top 5 Reasons for Using a Property Management Company

Top 5 Reasons for Using a Property Management Company

Do you own one or more rental properties and are considering hiring a property management company in Yakima but are not sure if this is the right decision for you to make or not?

You’re not alone.

Although you may be concerned about hiring a property manager we can assure you that this is the best decision for you to make especially for these reasons.

Reason #1 – A Property Management Company Will Save You Time

When you hire a professional property management company you can count on us to immediately save you time because you will no longer have to do all of the normal day-to-day tasks like tenant selection, rent collection, or maintenance that you may be doing yourself.

Reason #2 – Hiring A Property Management Company Will Save You Money

From the moment that you hire a property management company, rest assured that we will save you money each month.

Why?

You won’t have to do things like collect rent from your tenants, perform maintenance on your rental properties, or take calls from your tenants yourself.

You can count on an experienced property manager to perform those tasks for you, so you can focus on doing things that produce revenue and grow your portfolio of rental properties.

Reason #3 – The Best Tenant Sourcing and Screening

Another great reason to hire a property management company is we will provide you with the best tenant screening and sourcing possible so you can rest assured that only the most qualified tenants will be living in your rental properties.

Reason #4 – Avoid “Messy” Legal Problems

There’s no doubt that owning rental properties is an excellent way to build your investment portfolio so you can enjoy regular cash flow each month but legal problems at your rental properties can become messy very quickly.

Thankfully, with a qualified property management company managing your rental properties you can count on every aspect of the law being followed so you won’t encounter any potential legal problems or issues at your rental properties.

Reason #5 – Get the Income Balance Right at Your Rental Properties

Last of all, but most important, another important reason to hire a property manager is we will help you to get the income balance right at your rental properties by making sure that you’re charging the right amount of money that you should be really be charging your tenants each month.

Get Property Management Here

Besides all of the reasons to hire a property management company that we’ve mentioned in this article, you should hire a property manager because you will no longer hear excuses like “the check is in the mail”.

You also won’t have to be the “bad guy” ever again, and you can have confidence that someone is watching out for your rental properties so you don’t have to.

Working with a property management company means that you will have the freedom to invest in other rental markets without having to be tied down managing the rental properties that may be close to where you live.

For professional property management contact Jevons Property Management, today by calling us at (509) 895-7777 or click here to connect with us online.

www.jevonsproperties.com

Should you invest for cash flow or appreciation?

By Enrique Jevons, Real Estate Investor

Following the collapse of the Real Estate market in 2008 many people have invested money in Real Estate especially in Yakima Washington.

Over the years one of the top questions that we’ve had from investors is whether it’s important to invest for cash flow or appreciation?

In this article, we will break down the answer to if you should invest for cash flow or appreciation and what’s the difference between the two.

Investing for Cashflow 

What is cash flow? Cash flow refers to the amount of money that you are able to collect from your rental property each month. How does it work specifically? Your property management company collects the rent (gross income) from your tenant, they deposit it into your account, and you pay your expenses including insurance, mortgage, taxes, management fees, and repairs, then what’s left is your cash flow (net income). Cash flow is ideal because it’s money that you’ve earned from your Real Estate investment each month that you can also use for covering your expenses rather than paying for those expenses yourself out of pocket. The key to success when investing for cash flow is to take the time to calculate in advance what returns you can expect before you invest in a rental property. Another important thing to do when investing for cash flow is to calculate the price to rent ratio because not every area of the United States offers rental properties with good price-to-rent ratios. For example: In Los Angeles, CA many properties have high purchase prices, with lower rents, making them have a bad price to rent ratios for investors.

Investing for Appreciation 

What is appreciation? It’s the increase in the value of the rental property (or asset) over a period of time. Appreciation can occur for a variety of reasons including low mortgage interest rates, demand for Real Estate, or weakening supply. Since the Real Estate market started rebounding in Washington and across the United States it’s almost impossible for most Real Estate investors to have not seen their Real Estate investments appreciate during the last two to four years.

Investing for appreciation can offer excellent returns especially if the property you invested in is located in a state like California where Real Estate has appreciated significantly there in recent years. The key to success with investing for appreciation is all about timing because you have to know specifically where the Real Estate market is or you could face the real possibility of having to hold onto your Real Estate for a lot longer than you expected.

Cash Flow Vs. Appreciation – Which Option Is Better? 

Now that’s we’ve discussed cash flow and appreciation the big question you may have is which option is better for you? The answer to this question is it all depends on your financial goals. Investing for cash flow requires dedication because it may only bring in only a few hundred dollars per rental property each month, but those returns will add up over time while investing for appreciation can reap a big return once the property has appreciated but you have to know where and when to invest for appreciation.

Learn More 

To learn more about if you should invest for cash flow, appreciation, or to speak with us about our property management services, contact us today by calling (509) 895-7777 or connect with us online through our website.

  

Enrique Jevons Speaking Engagement at Fixated Real Estate

A Renovation in Progress

Sometimes an apartment is not always left in great shape when a tenant moves out.  Here is an apartment that is going to be renovated as a result.  I'll update photos weekly of our progress.