Property Management

Property Managers, Landlords, Real Estate Investors – Independant Contractor or Employee? How This Difference Could Be Costing You

Property Management Software — Sun, 13 May 2012 20:00:46 +0000

Property Managers, Landlords, Real Estate Investors – Independant Contractor or Employee? Find Out How This Difference Could Be Costing You

Property managers, landlords, real estate investors, for federal tax purposes, this is and important distinction. Worker classification affects how you pay your federal income tax, social security and Medicare taxes, and how you file your tax return. Classification affects your eligibility for social security and Medicare benefits, employer provided benefits and your tax responsibilities. If you aren’t sure of your work status, you should find out now.

The courts have considered many facts in deciding whether a worker is an independent contractor or an employee. These relevant facts fall into three main categories: behavioral control; financial control; and relationship of the parties. In each case, it is very important to consider all the facts – no single fact provides the answer. Carefully review the following definitions.

Behavioral Control

These facts show whether there is a right to direct or control how the worker does the work. A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done – as long as the employer has the right to direct and control the work. For example:

Instructions – if you receive extensive instructions on how work is to be done, this suggests that you are an employee. Instructions can cover a wide range of topics, for example:

• how, when, or where to do the work

• what tools or equipment to use

• what assistants to hire to help with the work

• where to purchase supplies and services

If you receive less extensive instructions about what should be done, but not how it should be done, you may be an independent contractor. For instance, instructions about time and place may be less important than directions on how the work is performed.

Training – if the business provides you with training about required procedures and methods, this indicates that the business wants the work done in a certain way, and this suggests that you may be an employee.

Financial Control

These facts show whether there is a right to direct or control the business part of the work. For example:

Significant Investment – if you have a significant investment in your work, you may be an independent contractor. While there is no precise dollar test, the investment must have substance. However, a significant investment is not necessary to be an independent contractor.

Expenses – if you are not reimbursed for some or all business expenses, then you may be an independent contractor, especially if your unreimbursed business expenses are high.

Opportunity for Profit or Loss – if you can realize a profit or incur a loss, this suggests that you are in business for yourself and that you may be an independent contractor.

Relationship of the Parties

These are facts that illustrate how the business and the worker perceive their relationship. For example:

Employee Benefits – if you receive benefits, such as insurance, pension, or paid leave, this is an indication that you may be an employee. If you do not receive benefits, however, you could be either an employee or an independent contractor.

Written Contracts – a written contract may show what both you and the business intend. This may be very significant if it is difficult, if not impossible, to determine status based on other facts.

Property managers, landlords, real estate investors, you should take interest in whether they are an employee or independant contractor as it could change the way they report taxes and depending on the situation, possibly save you some money as well.

Source: Internal Revenue Service, May 13, 2012

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Buy your fantasy island

Property Management Software — Fri, 11 May 2012 23:09:36 +0000

Buy your own fantasy island

The isles of Greece, the isles of Greece! When Lord Byron wrote his poem pining for this history-saturated archipelago, Greece was part of the Ottoman Empire. It is an independent country today, but with the economy crippled by debt, outsiders are once more casting a covetous eye over its islands, which number more than 6,000.

Collectively, they form an odd piece of real estate, containing everything from rocky outcrops, home to a few goats and an olive tree, to world-renowned holiday resorts such as Crete and Rhodes. But they are blessed with an ancient mystique that never palls.

Could now be the time for buyers with deep pockets to acquire their very own Greek island? It is easier said than done. Like other sought-after commodities, Greek islands are hard to come by. But the bad economic news from Greece has been so unremitting that the vultures are circling.

Splash out on a Greek island CLICK HERE

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Why Moscow Real Estate looking up

Property Management Software — Fri, 11 May 2012 22:58:18 +0000

Why Moscow real estate looking up

The Russian real estate market was hit hard by the global economic crisis between 2008 and 2010. Growth has since returned to the market and looks set to continue, although global developments and local bureaucratic issues could create problems.

Late in 2007, many investors in Russia believed that the country was immune to what was considered “an American problem” with subprime mortgages. The breadth and depth of the global financial crisis that followed led people to become wiser, or at least more sensitive, to uncertainty elsewhere in the international community and its global effects. Europe’s sovereign debt crisis and high levels of unemployment, production issues in the Far East, and continuing political unrest in Middle Eastern nations and their neighbors still feature in the media every day. There is little consensus on how to resolve these issues, although each of them affects the Russian real estate market to a certain degree.

Historically, one of the most significant global factors to influence Russian economic confidence has been the price of oil. While real estate is not quite so volatile, there is a good correlation between oil price movements and real estate rental rates.

What makes the prospects promising? CLICK HERE

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Have a college kid – buy a condo

Property Management Software — Fri, 11 May 2012 21:59:54 +0000

Have a college kid - Buy a condo

Prices in many real-estate markets may be close to bottoming out. We hope. So the old adage about buying low may be something to consider if you have a kid who will soon be heading off to college. The idea is to buy a condo for the kid to live in while attending school. That way, you’ll avoid paying through the nose for a dorm room or apartment with no hope of any profit. And if you buy a condo that has some extra space, you can rent it out to your kid’s friends and offset some of the ownership cost.

Lots of parents have made good money by following this strategy for the four or five — or, God forbid, six — years their kids spent in college and then selling the condo after graduation. Of course, the longer you can hold onto the property, the better the odds of cashing out for a profit. The other key factor to consider is the tax benefits. Here’s what you need to know.

The tax rules generally prevent you from deducting losses incurred from owning and renting out a residence that’s used more than a little bit by you or a member of your immediate family. However, a favorable exception applies when you rent at market rates to a family member who uses the property as his or her principal home. In this case, you can deduct tax losses from the rental activity (subject to the passive loss rules, which I’ll explain later). This beneficial loophole is open for you if you buy a condo and rent it out to your college-going child (and roomies, if any) at market rates

Get more tax benefits CLICK HERE

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Tips for first time home buyers

Property Management Software — Fri, 11 May 2012 21:32:52 +0000

Tips for first time home buyers

Be sure you’re ready to commit. You should plan to stay put for at least five years so that you have a shot at recouping the costs of buying and selling through home price appreciation. Guy Pahud, an exclusive buyer’s agent in Indianapolis, says that first-time buyers often think they’ll keep the home even longer, but they seldom do because they marry or have kids, or get a job transfer or promotion.

Also, remember that maintenance and repairs fall to you. You could ease into ownership by buying a condo or townhome, but you’ll pay association fees.

Start your search online. For the most current and complete listing of homes for sale in your city (excluding expired listings or already-sold homes), visit the Web site of the local multiple listing service (search your city’s name + Board of Realtors + MLS), urges Joanie Capalupo, with Moreland Properties, in Austin, Tex. If the site isn’t open to consumers, try the sites of local brokerage companies — which may require you to register so that their agents can contact you, but you’re not required to do business with them.

Read to save money and time CLICK HERE

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Tips on financing a vacation rental property

Property Management Software — Fri, 11 May 2012 21:21:33 +0000

Tips on financing a vacation home

Even when mortgage credit is easy to come by—and it still is not—the standards for vacation homes and restoration projects are tougher than for the purchase of a primary home.

Get a loan. For a conventional vacation home, plan on putting at least 20% down and paying an interest rate on the mortgage that’s typically a little higher than for a first home.

Take a tax deduction. You’re limited to deducting interest on no more than $1.1 million in principal for primary and vacation homes combined.

Here is what you need to know CLICK HERE

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6 best ways to score a mortgage deal

Property Management Software — Fri, 11 May 2012 20:05:12 +0000

6 Best ways to score a mortgage deal

Finding an affordable house is no longer a problem but qualifying for a mortgage can be. Six tips to getting a mortgage and a good rate.

Put your credit on ice. The higher your credit score, the lower your rate: The best rates go to those with a 760 or more.
Ask for time. Negotiate for an additional five to 10 days to give you some room to shop around.
Get at least six quotes. Rates on a 30-year fixed conforming loan can vary at least as much as a quarter of a percentage point.
Match the lock period to the loan. You now need 60 days or more to close a loan.
Opt for an ARM. If you know you’re not going to be in a house for more than seven years, adjustable-rate mortgages can mean big savings
Talk to a broker. Those who need a jumbo loan or have an unusual situation (say, you’re self-employed) will get the best deal from a mortgage broker who has access to and experience with a lot of lenders.

Find out how to save money CLICK HERE

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Property Management Company Leads Industry in Mobile Readiness

Property Management Company — Fri, 11 May 2012 20:00:12 +0000

Property Management Company Leads Industry in Mobile Readiness

Property management company for multifamily housing and commercial properties being serviced by The Madison Real Estate Group now have access to immediate high tech solutions that will save them time and reduce their liability. Portfolio managers and leasing agents are now equipped with iPads in the field, which allows them to take pictures documenting property concerns and immediately email or post those images. The Madison Real Estate Group has also implemented an Email Notice Rider allowing them to serve tenants via email on the spot.

While other managers are still thumbing away on their smartphones, Madison Real Estate managers are conducting real time move out inspections by documenting any repairs needed with both pictures and tenant signatures. The iPad allows them to submit repair requests sooner, ensuring timely turnovers and minimizing lost rent.

“Putting iPads in the hands of our representatives enables them to give our tenants piece of mind around the clock,” says Jacqueline Kimaz, vice president of The Madison Real Estate Group.

“Everything is real time these days and our company should be ahead of the curve in order to better serve our clients.” Kimaz also stated that the benefits of timely communication help the residents, as well as the property owners.

Life and safety problems can now be addressed right away, as these managers are now able to submit the work orders onsite, thus reducing liability. The iPads also have the potential to help reduce vacancies as agents can upload property photos and share slide shows to online rental sites immediately after rent ready inspections are complete.

Additionally, if a prospective resident doesn’t like the unit being shown, the leasing agent can now give a real time demo of other properties in the owner’s portfolio, saving them drive time – which, in a city like Los Angeles is worth its weight in gold. Time will no longer be wasted on sending prospective tenants paperwork and waiting on a deposit either. Leasing agreements and deposits can now be completed on location.

Property management company, Madison Real Estate Group, is taking the property management business into a new realm of technology that is sure to increase their effectiveness and allow them to provide a more comprihensive, responsive service to their users.

Source: Madison Real Estate Group, May 11, 2012

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6 cities to buy home today

Property Management Software — Fri, 11 May 2012 19:39:44 +0000

6 cities to buy home today

The real estate recovery is just around the corner. Well, that’s if you believe the new housing numbers out this week.

According to the Fiserv Case-Shiller indexes, home prices continued to drop, a story that’s all-too-familiar. Specifically, home prices fell 4% year-over-year in the fourth quarter of 2011. The reason for the general “more of the same” feeling of repetitive, downbeat news is that housing prices lag sales activity. The cycle of recovery is that prices fall to the point where they’re perceived as “cheap,” buyers become enticed and jump in at those cheap prices, and then that forms a bottom to the market.

Subsequently, inventory tightens and prices rise — but the lag between activity and rising prices can run nine to 12 months, according to Fiserv.

Now most of us can’t speculate on potential home appreciation the way we could bet on a value stock — and probably shouldn’t — but for what it’s worth, the six value plays identified by Fiserv are:

Sebastian-Vero Beach, Fla. Area real estate prices are down 52% from peak, and they are expected to rise at an annualized rate of 8.1% over the next five years.
Deltona-Daytona Beach-Ormond Beach, Fla. Down 53.5% from peak, with expected five-year annualized gains of 8.8%.
Ocala, Fla. Down 52.1% from its highs, expected five-year annualized gains of 9.1%.
Lakeland-Winter Haven, Fla. Down 55.8% from its peak, expected gains at an annualized rate of 9.2%.
Napa, Calif. Down 51.7% from peak, expected five-year annualized gains of 9.7%.
Madera-Chowchilla, Calif. Down 53.1%, with expected five-year annualized gains of 10.3%.

Are there any other cities with bargains? CLICK HERE

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Is 2012 the year housing market hits the bottom?

Property Management Software — Fri, 11 May 2012 19:21:51 +0000

2012 Bottom of the housing market

Housing and jobs: these are the two keys to the economic recovery really taking off, and while we’ve gotten some positive news on the jobs front recently, real estate prices have more or less continued to decline steadily since their peak in 2007. Housing represents a huge portion of yearly GDP, but more than that it is most consumers main source of wealth. If home prices are rising, so are American’s net worth, and increased wealth will usually lead to increased confidence and spending.

The first is from Zillow Inc., which said that though home prices declined in the first quarter of 2012, they actually rose in March. In addition, Zillow is predicting the real estate market will see “a definitive national bottom later this year or early 2013.”

The National Association of Realtors Pending Home Sales Index also predicts an uptick in home sales. The index is a “forward-looking indicator based on contract signings,” and it jumped 4.1 percent in March to 101.4. Any number above 100 indicates a healthy sales market. According to Lawrence Yun, NAR’s chief economist, “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good.”

Will the analysts be wrong again? CLICK HERE

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