Don’t Settle

The biggest trap that you will run into when hunting for a Dallas apartment is settling on something only to find that it doesn’t really meet your needs a few months later. If you don’t use your common sense when you go hunting, then this can easily happen to you. You may fall in love with a place that turns out to be completely inconveniently located, for example. Problem is, you always knew where it would be located and you simply overlooked the potential inconvenience in order to get the view that you never get to see now that you’re always in transit. If you had taken a little time to think about this issue before you signed the lease though, you might not be in this position.

Pay Attention to Your Instincts

Finding the perfect Dallas apartment to meet your needs means knowing them and knowing where a compromise is acceptable and where it is not in the long run. Additionally, it means paying attention to signs that an apartment might not be right for you. These can include indications that the maintenance is poor or that the neighborhood is bad. They could also be simpler things, things that just nag at you while you consider a place. Resolve these issues before you sign a lease in order to ensure that you get the rental experience you want.

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How are the properties attached? Town homes and condos are always physically attached in some way to other town homes or condos in the development. If the property is not attached to another property, it is a single family home (or house). If the property is attached on one (or on either) side to another property – but it doesn’t have a property above or below it – you are most likely looking at a townhouse. If the property is attached to other properties on at least one of its sides and has a property above or below it, you are looking at a condo.

Does ownership of the property include the land it sits on? With town homes, the owner owns the land under the town house as well as the air space over the town house. In this case, the property is recorded with a tax map number separating the town home lot from the other town homes in the same development. Condos are different because the owner owns the condo but has no separate ownership of the surrounding land. Condo owners have a percentage ownership in the land that their condo sits on, but their portion of land ownership can’t be separated or distinguished from all the other condo owners’ shares.

Can a property be considered both a condo and a townhouse? No. A property should legally fall into one of the two categories. Occasionally you will find a property that looks like a town house because it will not have properties above or below it, but it still will be considered a condo legally. This is because the property doesn’t have land to convey with the sale of the home. This type of situation is common in areas where the city will not allow a lot to be subdivided. The deed restrictions will stipulate the lot division between the condo units, but the property will share a lot or tax map number with the other properties in the building.

What if I can’t distinguish the property I plan to buy? Since all of this can be confusing to even an experienced buyer, I suggest talking with a knowledgeable real estate agent. And, if it’s a questionable property, it would be a good idea to talk with a real estate lawyer before closing on the property.

A townhouse appeals to many different homebuyers because they do not have the upkeep of a home with its own yard and property. Having less property means that the overall price of the house is more affordable to younger buyers. Young couples or families will be the majority of the market for your home. Couples like this or even singles are used to living in apartments so the townhouse has the same feel as this when it comes to the neighborhood itself.

A traditional house complex with a gated entry, neighborhood amenities, and great to meet other people around you. real estate agent you know that these are the main selling points. Who would not want the security of a gated entry and convenience of a swimming pool for use whenever you want without the maintenance costs and maintenance.

Your real estate agent will have a large customer base already that are in the market for specifically a town home which is perfect for you when it comes to wanting to sell your own. Townhouses are usually located in prime areas that are close to restaurants, hospitals, shopping, and other luxuries that many normal houses can’t offer. This is a key selling point to younger and older people alike. Trying to sell a townhouse on your own is hard because it is hard to reach out and advertise that your house is on the market and be cost effective at the same time.

Your broker will ensure your home is being viewed by anyone in the market for a house that fits the criteria of your townhouse. Expect your home to be well marketed and expect your real estate agent to arrange open houses and viewings as often as possible so that you can get your house sold and be ready to move on to your next home.

Apartment investors that are looking to purchase a property often ask me:

Which is Better: An Offer to Purchase or Letter of Intent?

First, let’s define the two, then I’ll discuss when to use a Letter of Intent.

1. Purchase Offer, or Purchase Agreement – A legal document that describes the price, terms, contingencies, and other details of how a buyer would be willing to purchase a piece of real estate.

2. Letter of Intent (LOI) – A preliminary document outlining the price, terms, and other transaction details that a buyer would be be interested in purchasing a piece of real estate.

Note that the definitions are not too far apart, but the documents themselves are. The biggest difference is a Purchase Offer is a formal legal document, that once signed by both parties becomes a legal and binding agreement. If you are working with a real estate agent or broker, this is usually the document they will have you sign if you are interested in placing an offer on a property.

A LOI is typically used as a “starting place” for negotiations on a property. Generally a LOI will be followed up by a formal Purchase Agreement after the terms are settled on. This may or may not be the case in your area, but is a good use of the two documents.

The difference is a Letter of Intent is basically a letter stating the kind of offer you are contemplating in making. Usually it contains what I call the GENERAL items of price, terms and closing date. Most of the other legal STUFF is left out.

It is good to use an LOI to gauge the viability of purchasing the property based on the price an terms you are considering. IN other words, it is good to use to gauge whether or not the offer you have in mind is even going to come close to making sense to the seller.

I use LOI’s a lot when I am trying to buy a property for much less than what the seller says they want, more flexible terms than the seller says they want OR if I am unfamiliar with the property and area I will use the LOI to start the negotiating process while I do my due diligence work in the background.

Remember, most of the time an LOI is not a formal offer but mainly a point of understanding between you and the seller.

So, use an LOI as a method of exploration of a property and to get the ball rolling. Based on the sellers reaction and response to your LOI will tell you to move ahead with a full purchase agreement or not.

However, it is imperative to know some of the most basic features of condos and townhouses in order to make a sound choice whether of the two works for you. Bear in mind that most decisions are based on what lifestyle you have, your personal taste and preference along with your preferences and housing needs.

For instance, if you want to have a place on your own near the city where you are in close proximity to your work, then condo living is the perfect choice for you. It is not a surprising reality that condo units and living is definitely the hottest pick among budding professionals, bachelors. This is because living in condo units basically answer their need for just a limited space they could have on their own.

Condominiums have limited space particularly the living area compared to its townhouse counterpart. Two bedrooms and nothing more are the most you could see in these types of housing and units are connected with each other in one common building. Condos have also common amenities available for all its residents and renters. For instance, most condos have swimming pools, gyms and recreational areas while there are common utilities such as elevators and lobbies with security systems 24/7.

If you choose to live in these housing types, you must understand that you need to pay a monthly membership fee which will be allocated for the maintenance and upkeep of the facilities in the building. Residents also need not concern themselves with maintenance or repair issues in their units because the building administrator will be the one to take care of it. This is also one of the components covered by the membership fee that you pay in a monthly basis.

Townhouses on the other hand are likewise connected units however bear in mind that the size of this housing type is definitely different from the apartments since townhouses are much bigger. In common townhouse units, there are up to four bedrooms which are available inside the property. This is one of the many factors considered by most home buyers which make it a more marketable housing option.

Moreover, you need not pay monthly fees on top of your rent or mortgage similar to buying a single detached house. However, you also need to deal with the different repair and fixture issues inside the house because these are basically not covered with any membership fees.

Is it condo or townhouse that is perfect for your home? Weigh your options and carefully study the distinct features of each one to come up with the soundest decision and investment.

Revenue

Your initial analysis should consist of researching other apartment buildings in the area you are interested in. You can begin this by calling similar apartment buildings and inquire about the rates of the units they have available. It is necessary to know what your competition is commanding for the amenities they provide.

There are competent brokers available who should be able to provide information such as the average rent per square foot and occupancy rates. You can then then compare this data with similar data of the apartment building you are considering. You can then determine if the current owner has kept up with the market and whether you can justify raising the rent without offering further improvements. There may also be the opportunity to convert excess storage space into rentable living area. This would increase the rental income and add value to the property.

You must inquire whether the rent plan of the building is “all bills paid” master-metered environment or whether the tenants are responsible for their own electricity bills. Converting a building and passing the costs onto the tenants can have positive results to the income stream.
* The action will require an offsetting decrease in rents on a per-unit basis.
* The tenants will be more conservative and thinking more about conserving energy if they are aware they are now responsible for their own power usage.Another way to generate additional income is to provide vending services such as laundry, pay phones, and soft drinks to the apartment complex.

Depending on the number of units, you may contract a laundry service that provides washers and dryers. The service will pay you for the right to offer its services on your property. You can negotiate with cable TV and satellite services for the right to provide your tenants with television services. Cellular phones are big business and phone companies are regularly looking to lease a site to locate their communication equipment on the rooftops of buildings.

Expenditure

There are quite a few ways to minimize the operating expenses of an apartment building.

* The cost of building repairs and maintenance will vary with the age of the apartment building.

* Management fees and salary costs can be cut especially if you are going to self-manage the property and assume many of the management and maintenance duties.

* It is a good idea to pass the utility costs over to the end user. Sub-metered apartments can reduce the electricity costs. You can cut the cost of the water bill by simply repairing any leaks in the faucets and toilets and by replacing the flush mechanism in the toilets with one with a water saving feature. You can also install water-saving devices in showers and bathrooms.

* Look for an insurance agent who specializes in providing commercial services. You will find that costs vary widely among agents so shop
around for the best deal.

* You can employ a tax advisor to protest the assessed tax valuation of a prospective building based on the taxes paid by similar buildings in the area and possibly have the amount lowered.

Searching for the right property can be difficult but nothing worthwhile is ever easy. Fortunately by examining the variables there are many ways of adding value in an apartment building. By considering these variables you should be able to determine the overall condition of the property and the potential monetary returns on your investment.

The first step is to find out what kinds of apartments are available in your price range. You have several options here. First you can look in the local papers, rental guidebooks and yellow pages for available apartments and apartment complexes.

You can also look on the internet. Many places have web sites where you can take a virtual tour of the facilities as well as see floor plans and pricing. This is a great way to compare different apartments without having to drive all over town.

You can also ask people you know if they know of any apartments that have vacancies. This is also a good way to find out what landlords are good to rent from and what apartment buildings are the nicer ones to live in. Finally, you can look on bulletin boards and to-let signs on the road. If you have real estate agents that specialize in rentals you might try them as well.

When you finally do find an apartment you are interested in, be prepared to fill out a rental application form. This information on this form will be used to determine if you are a good risk to rent to. They will most likely do a credit check and will verify employment and salary range. You may need to provide your social security number or the copy of your Visa or LPR card. You may have to pay a fee just to fill out the form and it may take a couple of weeks to find out if you are approved. First time renters might need a co-signer who will be responsible should you not pay your rent on time.

Once you are approved, expect to sign a lease. This document will state all the terms that apply to the rental as well as the time frame and fixed monthly rent. You should keep a copy of this in your files. The lease can be for any amount of time, but a year is pretty standard. The lease stipulates what recourse the landlord has if you fail to pay your rent and also that your rent can not be raised until the lease ends.

The landlord will want your first months rent in advance along with a security deposit which usually is equal to one months rent. Sometimes, they ask for the first and last months rent in advance in addition to a security deposit so you might want to ask about this up front to be sure you have enough money. Some apartments do allow pets and if you have one you can expect to pay an additional security deposit which will be specifically used to fix any damage caused by the pet. Some places also charge a small monthly premium if you have a pet.

If you leave at the end of the lease with your apartment in tip top shape, your security deposit will be refunded. The landlord may keep some part of the deposit if the property has incurred any kind of damage. You may have to forfeit your security deposit entirely if you break the lease agreement.

Unexpected things happen in life and you might enter into a lease with good intentions but circumstances might cause you to have to break it. Most landlords realize this and will try to work with you to get the apartment rented so you incur as little expense as possible. Be forewarned, however that if you do break the lease and the landlord cannot find a tenant you are responsible to pay the rent up until the end of the lease.

Some of the most common types of condos include condominium apartments, condominium townhouses, and freehold townhouses, which all differ with regard to their structure and the type of ownership regulations that come with buying them. One distinct difference is that with condo townhouses, people are given more “freedom” as compared to condo apartments, as some condo townhouses are built in a way that people get t have their own small yard and garage spaces. However, apart from these differences, almost all types of condos provide the same environment given that condominium living is all about communal living, which involve sharing common spaces and following common rules.

Evidence to this is the fact that almost all condominium properties have a homeowner’s association, which is responsible for the maintenance of the units and the implementation of the agreed rules among unit owners. The only drawback to this kind of set up is that there are cases wherein homeowner associations tend to promote uniformity among unit owners, which makes it hard for some homeowners to personalize their homes because there are rules that discourage them from doing so.

Among the different types of condominiums in the market, one of the most popular is the condo townhouse, as it provides homeowners with more freedom as compared to condo apartments. However, apart from slight differences, almost all types of condos provide the same communal living environment bound by rules. Given this, homeowners also need to consider the rules that the homeowner’s associations have put in place in the condominium property that they are interested in, as this can help them assess whether they can live with such rules or not.