renting » Helen Miltiades Realty

There may be nothing worse for a tenant than to discover their landlord has not been paying their mortgage and now the home is at risk of foreclosure. Will you suddenly be thrown out? What can you do?

There are some things you should do immediately. If you received a letter from an attorney you should call that lawyer and ask when and where will the foreclosure sale take place. Ask where you should be making your rental payments. You may be asked to send it to the lender directly or put in escrow.

If the lender purchases the property at the foreclosure, will they allow you to remain in the home? Most lenders are not in the real estate business and will want to get rid of the property as soon as possible so you need to understand your rights and how long you can remain in the home.

Ask if you can buy the property if you are interested. This might be a good opportunity to be a homeowner yourself, especially if you love the house and have lived there for some time. Talk to the lender and an attorney about the possibility of buying the property yourself.

“Finally, you should find out what your state law provides in these circumstances. In some jurisdictions, if a lender forecloses on a property, the owner must vacate the property. However, tenants have (or may have) stronger rights, and will be permitted to stay in the property for a period of time. Additionally, in most states in the United States, a tenant just cannot be thrown out on the street without a Court Order. This means that the new landlord — the successful purchaser at the foreclosure sale — will have to go to Court to seek an eviction Order. This will give you some more time before you have to move.” [Source]

It may also be a good idea to start looking for another rental property, especially if you don’t plan on buying the home. It’s also recommended not to pay your rent to your landlord since obviously they have been collected your rent but not paying their mortgage with it.

If you have more questions or need to find a rental place soon in Savannah Georgia, give me a call. I’d love to help you find the right home and rental for your needs or answer any questions you may have on rentals and property management.

QUIZ: How to tell it’s time to move

If you’re considering buying an investment property you’re also probably wondering whether or not you should be the landlord or hire a property manager. A property manager typically manages multiple properties and can help find the proper tenant, collect rents and schedule any repairs.

As a landlord, doing it yourself means screening tenants, organize showings, collect rents and manage any repairs or replacements yourself. This might be a large job but for property managers, it comes easy because this is their job. They might have the time to invest in getting the right tenant for your property, screening tenants, collecting rents, depositing it in your account and managing all repairs. Property management companies or individual property managers they deal directly with prospects and tenants saving landlords and owners time and stress over marketing the property, handling maintenance and responding to any tenant complaints. They can even pursue evictions and legal issues.

Pro Tip: “You have to run the numbers. If it makes sense to have someone else manage and handle all the stress of a rental, than go for it! Remember, that time is money and your stress level could be worth far more than a couple extra dollars in your pocket.” – Louisville Realtor Joe Hayden

There are many reasons to hire a property manager, not simply to ease the stress of dealing with the property on your own. Perhaps you have a lot of rental properties and their becoming too time-consuming. If you have at least three or four properties that you need to manage, this alone can become at least a part-time job, one in which you may not have the time or energy for. If you have a variety of rental properties, a large rental unit with multiple properties in the building or several houses, it might benefit you to move to a management company or personnel.

Another reason is if you don’t live close to the property. If you live out of state, out of the country or simply a few cities away, it can be difficult to manage properties, collect rents, handle complaints and assess any repairs or maintenance that the property might need. Having a property manager close by to deal with all of these issues is a great way to ease stress and take the burden off of the commute back and forth to and from your property.

Another reason may be that you’re simply not interested in hands-on management. Many landlords and owners love the idea of having a property that they can simply sit back and collect rents from. They can build their portfolio and focus on new rental properties rather than managing existing ones. Of course, the money has to make sense and you want to make sure that there’s more money coming in and going out each month in property management fees and repair costs.

Property managers also assess how much money the property is worth. Because property managers deal with multiple different properties, they can usually tell you what is the fair market value of rents in a particular area. You’re more likely to get a good collection of potential tenants and top dollar for your home. Property managers that have been experience can also suggest repairs, staging tips, ideas and ways to manage the property that would be beneficial to potential prospects and draw more tenants to your property.

Something that a lot of owners may not consider is the use of an affordable housing program. If lenders participate in this affordable housing program, even though it’s beneficial, it can get complicated. These programs allows the landlord to receive financial assistance which may be in the form of a grant, a low-interest loan or tax credits. This is usually in return for agreeing to rent at least part of the property to tenants earning below a certain income level. The landlord must comply with a complicated set of rules but it can be worth it for the right tenant. Because of the situation, it may be more beneficial to hire a property manager that is familiar with these legalities.

If you’re looking to invest in a great property in the Savannah Georgia area or surrounding communities and towns, contact someone that not only is a property manager but also a real estate agent. That agent can help you find the right home in the right neighborhood so that you have a decent rate of return and one that can also manage and handle your rental investments. For more details contact Helen Miltiades Today.

How Does a Foreclosure Impact Tenants?

When to Hire a Property Manager?