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A Viable Option During an Economic Crisis - A Property Letting Business
Wednesday, 30 December 2009 08:52 | Written by Veronica Carrillo
When discussing mortgages, one term that often arises is "lien." A mortgage is not a loan, but a lien on the property that keeps the loan secure. It is important to understand this confusing term in order to properly understand mortgages and property ownership.
When discussing mortgages, one term that often arises is "lien." A mortgage is not a loan, but a lien on the property that keeps the loan secure. It is important to understand this confusing term in order to properly understand mortgages and property ownership.
Benefits of renting * Renting can act as a source of income. * The property acts as a means of income without losing the ownership. * In hard times, instead of selling at lower rates you can retain the property as well as earn from it. * If you are getting transferred temporarily then renting can be a good option. Once you take the decision to rent out your property then there are two ways to go about it. You can directly deal with the prospective clients.
Second, have written screening criteria in place before you start accepting rental applications and ensure that your criteria is legal and applied consistently. You should set forth the minimum requirements that are necessary to rent your property as well as what will cause an applicant to be denied in your screening criteria. You may provide the written screening criteria to each prospective applicant along with the application if you wish. At the very least, however, you should memorialize the criteria in writing, date it and keep it for at least 3 years. It is important to remember that if you make an exception to your screening criteria for one applicant that you have now lost the protection of having the criteria in the first place ---- so avoid making any exceptions. The screening criteria should be used as a checklist of sorts. If they meet requirement #1 then move on to requirement #2. If they don't meet requirement #1 - then you stop and deny the applicant.
Your screening criteria should not be subjective. Rejecting an applicant because they give you a "bad feeling" or because you did not "connect" with them will only run you afoul of Fair Housing laws. Your criteria needs to be objective. Federal law contains seven (7) different protected classes and the state of Wisconsin has a total of twelve (12) protected classes. Local municipalities often have additional protected classes so you must check local ordinances. You may not deny an applicant because they are a member of any of the following protected classes in Wisconsin: race, color, national origin, sex, religion, familial status, handicap, marital status, sexual orientation, lawful source of income, ancestry and age (18 years old and over).
You can hire an abstract company to conduct a title search by delving through public records concerning the property's history to be sure that no lien exists. The title search should also indicate if the seller is legally recognized as the property owner, the description of the property, and details of any lien or other holds on the property.
It sounds simple but a lot of home work goes behind it. You have to start properly with a name, your business must be registered and you have to advertise yourself. You also have to know your competitors otherwise you can't sustain yourself. Your pricing have to be correct otherwise either people will not select you if you charge too high, or else if you charge too less no one will think of you as capable of providing anything worthwhile. For starting any business you have to first decide about certain things. Like, whether you will start alone or with a partner, the initial investment required and the return expected. Unless you are sure about these things you can't handle unforeseen situations.
by VeronicaCarrillo
When discussing mortgages, one term that often arises is "lien." A mortgage is not a loan, but a lien on the property that keeps the loan secure. It is important to understand this confusing term in order to properly understand mortgages and property ownership.
Benefits of renting * Renting can act as a source of income. * The property acts as a means of income without losing the ownership. * In hard times, instead of selling at lower rates you can retain the property as well as earn from it. * If you are getting transferred temporarily then renting can be a good option. Once you take the decision to rent out your property then there are two ways to go about it. You can directly deal with the prospective clients.
Second, have written screening criteria in place before you start accepting rental applications and ensure that your criteria is legal and applied consistently. You should set forth the minimum requirements that are necessary to rent your property as well as what will cause an applicant to be denied in your screening criteria. You may provide the written screening criteria to each prospective applicant along with the application if you wish. At the very least, however, you should memorialize the criteria in writing, date it and keep it for at least 3 years. It is important to remember that if you make an exception to your screening criteria for one applicant that you have now lost the protection of having the criteria in the first place ---- so avoid making any exceptions. The screening criteria should be used as a checklist of sorts. If they meet requirement #1 then move on to requirement #2. If they don't meet requirement #1 - then you stop and deny the applicant.
Your screening criteria should not be subjective. Rejecting an applicant because they give you a "bad feeling" or because you did not "connect" with them will only run you afoul of Fair Housing laws. Your criteria needs to be objective. Federal law contains seven (7) different protected classes and the state of Wisconsin has a total of twelve (12) protected classes. Local municipalities often have additional protected classes so you must check local ordinances. You may not deny an applicant because they are a member of any of the following protected classes in Wisconsin: race, color, national origin, sex, religion, familial status, handicap, marital status, sexual orientation, lawful source of income, ancestry and age (18 years old and over).
You can hire an abstract company to conduct a title search by delving through public records concerning the property's history to be sure that no lien exists. The title search should also indicate if the seller is legally recognized as the property owner, the description of the property, and details of any lien or other holds on the property.
It sounds simple but a lot of home work goes behind it. You have to start properly with a name, your business must be registered and you have to advertise yourself. You also have to know your competitors otherwise you can't sustain yourself. Your pricing have to be correct otherwise either people will not select you if you charge too high, or else if you charge too less no one will think of you as capable of providing anything worthwhile. For starting any business you have to first decide about certain things. Like, whether you will start alone or with a partner, the initial investment required and the return expected. Unless you are sure about these things you can't handle unforeseen situations.
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