The main advantage to having a professional Property Management Company manage your rentals is MONEY!  The first question you must ask yourself is how much your time is worth.  Unless you are very lucky, you spend several hours a month dealing with you renters, or their requests.  You are on call 24 hours a day.  With a Property Management Company, you can enjoy your time and let them handle the problems.  Each company has a different fee, so you will want to shop around.  Be sure to find out about all the fees.  Some charge only a flat rate, and do everything; while other charge a smaller management fee, but charge for making deposits, serving notices, doing inspections, etc.  Remember, your management fee is tax deductible…your time is not. 

The reality is that many fixer-uppers are in such disrepair, that it will cost more to do all the necessary repairs and improvements than it would to buy a home in move-in condition.  This does not mean, however, that it is never a good idea to buy a fixer-upper.  There are people who make a fortune moving from house to house, fixing up each one, and moving on to the next. So, if you are serious about buying a sound fixer upper, read on.

When searching for this type of house, look in neighborhoods with resale potential.  Ask your real estate professional for a current market analysis of the neighborhood, this will help give you an idea of how good a bargain the home really is.

Try to find a home that has been listed for sale for several months or is vacant.  These tend to be better bargains, because usually the seller is willing to consider virtually any reasonable offer.

Next we will discuss what types of improvements will prove to be the most cost effective for the purchaser of a “fixer upperâ€�.

Consult a contractor to find out how much it will cost to complete the

renovations.  Figure out what types of improvements you can do yourself,

such as installing a new light fixture, painting, and simple landscaping.

To make the most profit off your investment, you’ll want to get a home that only really needs cosmetic changes.  Avoid homes that need major structural work.

Look and see what types of minor changes you can make that cost less than what they add in market value.  The most profitable improvement is paint.  A few hundred dollars spent on fresh exterior and interior paint can add much more, even thousands of dollars, to a home’s market value.  Other minor improvements that will give the house some pizzazz while adding to your profit, are new light fixtures, counter tops and doors. 

No, the two most common kinds of Rental Agreements are the "Lease" and the "Month to Month".

A "Lease" is for a definite period of time, generally for one year. Unless you break the terms of the lease the owner cannot raise the rent, unless the lease states otherwise. Also, the owner cannot ask you to move until the lease expires. 

A "Month to Month" Rental Agreement is not for a set period of time. It continues until you decide to move or the owner/landlord asks you to leave. If you pay your rent monthly and decide to move you must give the owner thirty-day notice. An owner who wants you to leave must inform you in writing 60 days ahead of time if you have lived in the unit for over one year. Moreover, if you break the rules, for example, by using the rental for illegal purposes or creating a nuisance, the owner/landlord can give you a "Three Day Notice to Quit." 

Many times when a property is advertised, it states whether the tenancy requested is a Lease or Month to Month and is often negotiable, depending on the needs of both parties. 

M. T.
Lompoc