About Real Estates

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If you want to invest in real estate rental properties, do the following before you actually buy anything:

• Do the math to determine the property’s actual potential income. Review the tenants’ lease agreements and check the corresponding security deposits made as initially reported to you. Have an idea whether your tenants make prompt payments or if credit and criminal background checks were actually done on each and everyone of them.
• Walk through every unit of the property to get to know the current tenants and know the real condition of the property inside. Obtain clues as to the lifestyle of your tenants. Check also for “ghost tenants”. Some sellers pad their roster of renters to boost occupancy rate. Inspect the units for fire, water or resident damage/s and pest problems.
• Find out if the property was constructed according to government specifications. Nothing is more irritating then always having government people bugging you about your property’s compliance to their standards.
• Know the existing service contracts of the present owner and check if they can still be improved, should the property become yours. This includes heating, cooling, air conditioning, pool service, advertising, parking, cable and alarm contracts.
• Check all the exterior aspects of the property especially the roof, electrical, sprinkler and plumbing systems, condition of the exterior paint, driveways, parking lots. Estimate more or less when they may need repair or replacement.