Portland Oregon Real Estate

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Portland Real Estate Investment Basics

Thinking about becoming a residential real estate investor? Think about becoming a landlord. Buying rental property in any Portland neighborhood (Pearl District, Bethany, Hawthorne & Belmont, South Waterfront, or other surrounding areas) is not a completely passive activity. Various hats often worn by first-time investors include handyman, landscaper and that inevitable grumpy mean landlord hat... Minimize the number you have to put on by reading further!

Here are a 4 basic points to make the most of real estate investing:

  1. Minimize Repair costs
  2. Limit Vancancies
  3. Avoiding Difficult Tenants
  4. Liability and Protecting yourself

Repairs

Home owners insurance covers catastrophic damage not the every-day issues. Statistically, most repairs run under $50 for parts. Is it worth your time and sanity to deal with the really minor fixes? Consider adding a clause to your contract such as "in exchange for reduced rent, tenant agrees to make minor repairs (under $50) as necessary to ensure integrity of housing structure and living conditions" or similar.

Pick candidates for the repair clause carefully. If you have doubts about their abilities, don't add such to your contract.

Vacancies

Keep rents reasonable. Don't push out good tenants by trying to capture market premiums, it's just not worth it. Figure that each potential vacancy is going to eat one month's rent. Price your rental housing based upon condition, appeal and what other comparable properties are going for.

Talk to other local landlords about amenities and rates. Most are pretty open about what they're experiencing, positive or negative. Craigslist, The Oregonian and Hotpads.com are just a couple of resources that'll enable you to guage the rental market.

Difficult Tenants

It seems like a lot of work having to check potential tenant's background and credit. This can be done with minimum effort once you get the hang of it, saving hassle and money in the long run. A credit report can tell a lot about people's habits and how they spend money. Is the candidate paying other bills on time? If not, you may guess that receiving rent checks by the 5th of every month is wishful thinking.

Rental applications should include numerous questions about intent of the perspective tenants like; How long do you plan on living here? Why are you considering this home inparticular? Answers to such questions will never appear on credit reports. Meet applicants at the property and ask personal question tactfully (legally) by mixing them into general conversation. It's amazing what people will flap their gums about! Weigh that 6th sense gut feeling along with the credit report and rental application.

Liability and Protecting Yourself

It's important to have a good lease that is legal. Become familiar with the Portland Landlord's Association. These real estate investors educate themselves and keep up to date with the latest court cases and changes to landlord-tenant law.

Consider having a lease agreement drawn up or at least reviewed by the proper attorney. Following the law and having a contract well organized could save you big money in a litigation case where tenants violate terms. Pretty common that they'll try and break leases. Keep good records of conversations, signed agreements, and pictures of the premesis. Verbal stuff doesn't hold much water in court!

Does any of this sound intimidating? Real estate investing in Portland is no different than other areas of the country and it can be profitable. Do your homework and make a good educated decision. Learn more about investing in Portland Real Estate...

Feel free to contact Dave and review your personal goals and concerns. Real estate should be part of a diversified portfolio and can really pay off in the long run.

 

Contact us to discuss your investment goals today. 503-789-7633 (cell), Toll-Free 1-877-629-5825, or email us below to see how we can help you with your Portland real estate investment needs.


Call us at Toll Free at 1-877-629-5825 or 503-789-7633 (cell) or email us to see how we can help you with your Portland & Lake Oswego property investment needs.