Categories
Landlord Tips

Renting to Tenants with Pets

Renting to Tenants with Pets
Renting to tenants with pets can be a win win for both landlords and tenants.

Landlords are in the business of providing housing in exchange for rent. Renting to tenants with pets has its pros and cons, but in the end, it can be a win win for both landlords and tenants.

Attract More Tenants with Pets

Those who own pets view their furry friends like children – important members of the family. Landlords who are willing to permit pets to reside in their rental property expand the size of their customer base. And having a larger customer base increases the number of potential tenants and thus strengthens the chance that your rental property will not remain vacant for long.

Increase Rental Income

Landlords can increase rental income by renting to tenants with pets. Due to the potential for additional damage to the property because of the pet, landlords can increase the rent amount or charge a pet deposit. Recording this additional income is easy, especially if landlords are using RentalIncomeExpense.com, which is free landlord rental income expense tracking software.

If pet owners are willing to pay a premium for their home, and landlords are willing to rent to tenants with pets, both are satisfied and a win win is for all!

Categories
Landlord Tips

What is a Cap Rate?

What is a cap rate?
‘Cap rate’ is an easy term to understand

For a new real estate investor, the term ‘cap rate’ can be intimidating. Fear not! This term is easy to understand and we’ll explain how to use it.

Cap Rate is the Yield of a Property

Do you understand what the interest rate on a bank account or CD means? Do you understand what the dividend yield on a stock is? If so, you already understand what cap rates are. They are the yield (in percentages) or investment return of a property.

Here it is as a formula:

Cap Rate = (All income minus expenses / Property Market Value)

Let’s look at an example. If a property’s value is $100,000 and, for a given year, after all expenses are subtracted from all rental income, there is a net income of $10,000, then the cap rate of that property is 10% ($10,000/$100,000).

How Is This Used?

Investors compare cap rates when evaluating different properties on the market. Generally, higher cap rates are more desirable. However, just as a higher return can be a signal of risk, properties with high cap rates can often be more risky. For example, an investment may have only a single tenant paying all the rent or is located an area with declining economic prospects.

That’s it! Easy Peasy, right?

Now you know what cap rates are, how to calculate them, and how they are used as a comparison tool.

If you are looking to sell a property that you already own, it is important to track your income and expenses so that you can properly calculate your property’s cap rate. There are many tools to do this. RentalIncomeExpense.com is one such free online landlord software tool that tracks rental property income and expenses.

Categories
Landlord Tips

Free Ways to List Your Rental Property

Free Ways To List Your Rental Property
There are great free ways to list your rental property!

At RentalIncomeExpense.com, we are all about free ways to improve landlording. After all, our rental income expense tracking service is free for all landlords and property managers. So, given that, what are the best free ways advertise vacancies?

Zillow is No Longer Free

Zillow used to be a great way to list your rental property for free. Unfortunately, Zillow now charges $9.99/week per rental property to advertise it on their Website.

If your rental market is pretty strong, you might not want to pay to advertise on Zillow when your property can be rented using other, free sites.

Free Rental Property Listing Websites

Fortunately, there are many ways to list your rental property for free. Here are three of the best:

  • Facebook Marketplace: Using your Facebook account, go to “Facebook Marketplace”. From there, go to a category called “Property Rentals.” There, you can easily create a new listing for your rental property. Facebook Marketplace is widely used. Best of all, Facebook Marketplace does not charge any listing fees.
  • Nextdoor: Using your Nextdoor account, go to “For Sale & Free”. From there, click the “Post a Listing” button. Finally, choose the category of “Property Rentals”. Nextdoor is increasingly popular. And, just like Facebook, Nextdoor does not charge a listing fee.
  • Craigslist: One of the oldest and most popular sites, Craigslist is still a way to list for free in most places. The exception is that apartment rentals in Boston, Chicago, and New York require a $5 listing fee. Outside of those cities, Craigslist rental property listings are free.

As you can see, when you need to list your rental property, there are some great free listing services out there. And, once your rental property is leased, don’t forget to track your rental property income and expenses with the free RentalIncomeExpense.com service!