Chris Hounchell REALTOR

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Chris Hounchell is an award-winning Florida real estate Broker that has earned a reputation for providing expert, professional representation to his customers, unparalleled market knowledge, dedicated service and complete transparency throughout the entire buying and selling process.

How to Make a Rental Feel Like Home

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There are more renters in the United States than there has been in the last five decades. There are numerous reasons why people rent; millennials just getting their adult lives started, a military family with a short term assignment, or just someone who simply doesn’t want the responsibilities of being a home owner. Whatever the reason for renting, you want to feel at home and that can be difficult to achieve that feeling if you’re living in a place with bland off-white walls. It’s important to feel at home where you’re living and it can be done.

Get the Okay

Have a discussion with your landlord and find out what changes he or she will allow to the property and which they won’t. Some landlords may be willing to allow a tenant to paint as long as the landlord has the final decision on paint colors or if the tenant returns the property with the original paint color. It’s best to get the approved changes in writing before proceeding.

Decorate With Purpose

Working with bland basic like beige walls or carpet can actually be a perk. Design each room or the entire home with a theme. If you need your bedroom to be restorative, choose bedding and curtains in calming shades and don’t skip on the blackout variety. You can turn your bathroom into a spa with lush towels, candles, and an updated shower head. Make mindful choices that you will enjoy instead of just making do.

How to Make a Rental Feel Like Home

Disguise Problem Areas

No property is ever picture perfect but when you’re a renter it’s not an easy fix. To hide or improve the less desirable features of your rented home don’t be afraid to use accessories. If a room makes you feel claustrophobic use a mirror to give the illusion of more space. Lamps with bright bulbs can light up dark corners and area rugs can hide the ugly shade of carpet.

Home isn’t just the place you rest your head at night; it’s also your neighborhood. Get out and explore your new neighborhood. Introduce yourself to the neighbors and find what makes the area special.

Choosing a Home After Retirement

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Retirement doesn’t mean that it’s the twilight of a person’s life anymore. Many people are living well into their eighties and nineties while maintaining active lifestyles. According to a survey by Merrill Lynch and Age Wave, two-thirds of retirees desired to move after retirement with the reasons ranging from “being closer to family”and “reducing living expenses”. If you’re ready to move after you’ve retired, what should you look for in a new home?

Choosing-a-Home-After-Retirement

Location, location, location.

Florida is often associated with snowbirds and retirees because of it’s moderate weather year round and it is a large attraction to many retirees, especially those who have spent the majority of their lives in areas that deal with snow and cold temperatures for a good portion of the year. Besides favorable weather, many retirees want to be closer to their families and friends or a place that will allow them time to enjoy a hobby or passion that they didn’t necessarily have time for while working.

Consider the future.

With the average full retirement age ranging between sixty-two and sixty-five and an increase in life expectancy, retirees have two or three decades to take advantage of that time frame. This next stage in their lives should be a large consideration when finding a new home. Down-sizing is a common practice, with retirees wanting to avoid higher housing costs and home maintenance that takes excessive time and effort. On the flip side, other retirees are seeking out larger homes to accommodate visiting family and friends. Retirees should also consider the logistics of owning a multi-story home with stairs possibly becoming problematic as they get older.

The cost.

The majority of retirees live off a fixed income. When choosing where to live, retirees should not only think about the cost of a home but also the cost of living expenses, healthcare, and taxes in a particular area. Pensions and social security are not taxable in Florida making it a financial ideal for retirees. The idea of home ownership is also something that retirees may want to consider retiring from. Depending on the area, renting may be less expensive than owing a home but retirees don’t have to sacrifice a home for the option to rent; many investors are looking for stable tenants ready to make their property a home.

Whatever your goals for retirement are, don’t feel like you need to settle. The perfect place to meet all of your wants and needs is out there!

This post was originally published July 2015. It has since been updated to reflect current information and edited for clarity.

How to Screen Potential Tenants

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The process of obtaining a tenant for your rental property seems straight forward. You need to market the property, check out the potential tenant, and then sign the lease. But what exactly should you do when you’re checking out your tenant? Is a credit check enough? Let’s walk through how to screen potential tenants.

Check Everyone

Your tenant application should be filled out by every adult 18 years of age and older. This works to your advantage for several reasons including obtaining every adult’s contact information and making each adult liable and responsible for the lease obligations. Children and those adults with incapacities are exempt for background checks, however. Don’t request a simple credit score but rather a full credit report with details for both positive and negative factors. This will help you understand any patterns of late payments and delinquencies.

How to Screen Potential Tenants

Credit Reports Alone Aren’t Good Enough

It seems like a reasonable assumption that if a potential tenant has failed to make payments on their financial obligations they’ll have a less than desirable credit score. That may be true but what if a previous landlord didn’t report to the credit bureaus or the tenant has worked to clean up their credit score? As part of your research, you should search the local (in relation to their previous addresses) court records for eviction proceedings. You’ll also want to run a criminal search for each applicant.

Make the Calls

Asking for references does you no good if you do nothing with the information. You should verify current employment status as well as the likelihood for continued employment. Contact other landlord references to confirm that timeliness of payments and if the tenant’s behavior was in line with the lease.

A thorough tenant screening puts you in the best position possible to decide whether to approve or decline your applicants. You don’t need to do all the leg work yourself though. There are services you can order the necessary credit, criminal, and eviction reports and have them delivered right to your inbox. All you’ll need to do is make the phone calls to confirm employment and prior rental history. If a potential tenant is hesitant or refuses to submit to the screening process you’ve put in place should be an automatic disqualification for consideration.

How to Be a Stress Free Landlord

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You may think the hardest part of owning a rental property and acting as a landlord is finding quality tenants but you’d be wrong. The real work begins once your tenants sign the lease and move into your property. It can be stressful owning a property that relies on a third party to pay the bills. We have four ways to habits to help you be a stress free landlord.

Be Consistent

Routine and consistency are your two best tools when it comes to being a successful landlord. When you draft your lease, explicitly state the rules for the tenants including rent due date, late fees, pet policies, and things like smoking and lawn maintenance. Make sure you collect the rent at the same time and in the same manner every month and enforce the terms of the lease. That means not giving your tenant a pass on late fees or bending the rules despite the saddest sob story they can tell you.

Seek Out Professionals

Drafting a lease agreement shouldn’t be the only time you seek out professional help when it comes to your rental property. Unless you’re a master carpenter, plumber, and electrician chances are you’ll need the assistance of one at some point during your tenants stay. Hiring a professional can save you time and money by knowing how to remedy the issue in the most efficient and effective way possible.

How to Be a Stress Free Landlord

Put It In Writing

Whether it’s a no smoking policy, a change of address, or late rent notice…put everything in writing. If you have any verbal conversations with your tenant back it up with a summary email. It’s also a good idea to keep a record of when you received each month’s payment and in the form it was made (check, money order, electronic payment, etc.).

Respect Your Tenants

Your rental property is a business and your tenants are your customers. You should want to keep them as happy as possible without putting yourself in an uncomfortable financial position or setting expectations too high that they can’t always be met in the same way. Keep your communications limited to specifics and within normal business hours, if possible. Finally, adhere to your obligations under the lease. Make repairs and respond to questions from your tenant in a timely fashion.

Owning and managing a rental property doesn’t need to be a stressful situation, even if you got into the business because you had no other option.

What To Do When You Inherit a House

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Inheriting a house can be fraught with emotional and financial decisions. Many people are aware that they will inherit a home long before the time arises. Still many others are caught off guard when they’re informed they are the beneficiary of a piece of real estate.  Regardless of which group you fall into, we have some information to help you navigate the arena of real estate inheritance.

Are You In This Alone?

The first thing you need to know is if you inherited this house solely or if there are other devisees, or recipients of the real estate inheritance.  If you’re the sole the devisee of the property, you have sole authority to do as you wish with the property.  Many times, though, a home will be bequeathed to several people and each person will have an equal say in the property unless otherwise noted in the will.  If your relative did not leave a will, you may still have an interest in the house but you will need a Probate Court to determine the lawful heirs before any disposition or title transfers take place.

What To Do When You Inherit a Housea

Free and Clear?

If the decedent owned the home for many years, it’s likely the property is owned free and clear of a mortgage; however, you shouldn’t assume that the property is free and clear of any liens.  Unpaid taxes and municipal bills could have become liens on the property.  Your best course of action is to order a report on the current title of the home.  For a nominal fee, a title report will provide you with information for the most current deed and mortgages, if any, and any unpaid taxes or liens against the property.

Sell, Move-in, or Rent?

Deciding what to do with the house is often a decision of personal choice.  If you’re the sole inheritor of the property, you may wish to move into the home.  If you inherited the property with several others, an agreement will need to be reached as to what to do with the house.  If one person wants to move into the property, the easiest course of action would be for that person to buy out the interests of the others, usually through securing a mortgage.

If the property is still mortgaged, you’ll want to continue making timely payments.  Renting out the home would be an option to generate an income to cover the cost of the mortgage and other monthly expenses but will obviously come with obligations. (Read our post about becoming a landlord.)  Selling the property is another option to dispose of the property, pay off any liens, and liquidate any remaining equity.  You will need to make the necessary repairs, if any, to bring the house up to code and make it marketable to either a renter or buyer.  An experienced Realtor will be able to assist you in the listing and sale or lease of an inherited property.

The Tax Man Cometh

As with most transaction, taxes will apply.  An estate may be levied an estate tax (federal) and an inheritance tax (state) in addition to any transfer taxes should the property be sold.  The estate and inheritance taxes levied are based on the value of the estate and how the inheritances are bequeathed.  You may be able to pay the necessary taxes at the time you sell or transfer title.  You should consult a licensed accountant or attorney to determine the taxes the estate is obligated to pay and when they are due.

Inheriting a property doesn’t need to be a financial burden or create conflict between family members.  Informing yourself and being realistic about the value and debts of the property will help you determine the best course of action.

Disclaimer: Seek the advice of a licensed attorney in the appropriate jurisdiction should you have questions regarding your rights as an estate beneficiary.

Editor’s note: This post was originally published October 2014. It has since been updated and edited for clarity and cohesiveness.  

Allowing Pets in a Rental Property: Yes or No?

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A common concern for landlords is the question of allowing pets in a rental property. Having a no-pet policy can hurt your tenant search by excluding a large number of qualified renters simply because they have a pet they are not willing to part with in for the sake of an apartment or house. But having a pet can open your property up to damage and possible liability if there is an incident. With two conflicting situations, it’s difficult to determine what a landlord’s best course of action is.

Things to Consider

The obvious things to consider when it comes to allowing pets in a rental property are damage to the property and liability issues. Animals are susceptible to anxiety and misbehavior due to changes, such as moving to a new home. Even the best animals could chew on cabinets and wall corners, dig into or soil carpets, and/or scratch walls and windowsills. In addition to what could happen to the property itself, you need to consider the behavior of the animal when it interacts with the neighbors and any visitors to the property, including yourself. Other things to consider at the local laws that may ban specific breeds or species.

Should You Allow Pets In a Rental Property?

Developing a Pet Policy

As a landlord, you can pretty much set any policy you’d like when it comes to pets but be mindful of what is and isn’t practical; expecting a dog to never bark is outrageous but a “yappy” dog can be considered a nuisance. You may want to hold a pet “interview” before agreeing to allowing a tenant to keep a pet in your property. This would allow you to keep a wider pool of potential tenants open but be able to weed out those tenants with pets who don’t meet your guidelines such as breed, size, or temperament. Once you do allow a tenant to house a pet you should have a written agreement with the rules clearly stated. These rules should list the specifics of each pet, the maximum number of pets allowed, and how the tenant is to expected to care and maintain the property and neighborhood with relation to their pet. You may also want to consider adding rules to the pet policy regarding the tenant’s responsibilities for caring for their pet such as not leaving the pet outside in extreme weather conditions or at night.

Protecting Your Property

If you do allow pets in your rental property, you should protect yourself both against the possibility of property damages and also liability against personal injuries arising from pets. A call to your homeowner’s insurance company will help determine what is and isn’t covered in your policy and if it’s necessary to purchase a pet rider. To help off-set the costs of needing to clean carpets and other areas of the home after the tenant and his pet have moved-out, you should collect a pet fee (per animal)  at the signing of the lease. You should make your tenant fully aware that this fee is non-refundable and additional costs related to pet clean up may be deducted from their security deposit if necessary. You should also reserve the right to have the tenant remove the animal from the property at any time it becomes a nuisance to the property or the neighborhood without breaking the terms of the tenant’s lease.

Ultimately, deciding whether or not to allow a pet in your rental property is an individual business decision.

Do you allow pets in your rental property? Why or why not?

Before Renewing Your Tenant’s Lease Consider These Three Things

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If you own a rental property, there will eventually come a time when you need to decide if you want to offer your tenant the opportunity to renew their lease and what the terms of that lease will be. You may be thinking that’s it’s a given to offer an existing tenant the opportunity to renew the lease at or close to the original terms. However, before renewing your tenant’s lease consider these three things.

Three Things to Consider Before Renewing Your Tenant's Lease

  1. Your Tenant. Consider your tenant’s history of paying rent on time, the way they have treated your property, and your overall relationship with them. Have they paid the rent on time every month or has it always come just under the wire of the grace period? Worse, has it been late on more than one occasion? More than likely you have seen at least the outside of your property during your tenant’s stay. Has the outside of the property been well kept? Have your neighbors made legitimate complaints about noise or other disruptions? Has there been any police involvement during your tenant’s stay? Lastly, consider your relationship with the tenant. Have you and the tenant had a respectful relationship? Has the tenant demanded that you fix non-urgent issues immediately? Have they observed the terms of the lease and not ignored things like no-pet or no-smoking clauses?
  2. Your Long-Term Goals. You should have evaluated your long-term goals before entering into a lease with a tenant but before renewing your tenant’s lease is a good time to refresh those goals. If you intend to sell the property, renewing with a tenant may not be in your best interests. Attempting to show a property to potential buyers with tenants still in place can make a buyer shy away from presenting an offer; even if your tenants intend to leave before closing. If you are looking for a long term tenant and your current tenant has expressed interest in only a month-to-month arrangement you should be hesitant to jump at the chance to keep your income stream positive. Having a month-to-month tenant can leave you looking to rent the property during an off-time of year or make you lose a long term tenant because your move-in availability doesn’t align with their needs.
  3. The Market. As we all know, markets ebb and flow and the rental market is no different. What may have been a competitive rental price last year may be below market this year. Research current rental rates for properties similar to yours. Be sure to take into consideration the amenities your property offers and any cost increases you can foresee for the coming year. Also, weigh the possibility of turnover v. the cost of not raising the rent.

As you can see, it’s not always easy to decide to renew your tenant’s lease. We always recommend you do your research and adhere to the terms of renewal as listed in your current lease agreement and local & state rental laws.

How Long Should You Stay In Your First Home?

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If you’re considering buying your first home, you’ve probably been advised to weigh the benefits of buying v. renting and evaluate your financial health before you start looking. There’s something else you should consider as a first time home buyer and that’s how long you should stay in your first home.

The Five Year Rule

The traditional advice for first time home buyers is to be prepared to stay in your first home for at least five years. The thought behind this advice is that it will take at least that long for your home to appreciate enough to recoup the money you put out for closing costs, both buying and then selling the home. The length of time for this rule may be extended depending on how much money you paid for a down payment and how much you’re paying towards your mortgage principal. The longer you stick with a mortgage, the more money your monthly payment will be applied to the actual principal instead of interest, which decreases your debt and increases the amount of profit you could gain.

Market Trends

If there’s something to be learned from the housing crisis that began in late 2008, it’s that the signs are there and market players need to pay attention to them. This is where having an experienced Realtor on your team benefits you. A Realtor can analyze the current market and help determine if there is room for appreciation or if the market has reached its peak. Obviously buying in a market that has a good chance of appreciation over the next few years makes for a better opportunity for a first time home buyer to see a return on their investment if they choose to sell in the future. It also may allow the first time buyer to move on from their first home faster if the value appreciates quickly.

How Long Should You Stay In Your First Home | HounchellRealEstate.com

First Time or Forever

Over the last two decades the thinking has been that first time home buyers purchase a “starter” home and graduate to a larger home as their salary increases, their families grow, and the value of their starter home appreciates. In our parents’ and grandparents’ generations, their first home purchase was often their forever home for several reasons. The first reason is one income was usually enough to afford a reasonable home for a young family to grow into. They also weren’t swamped in debt from student loans and credit cards freeing up more money for a down payment. The second reason is they didn’t buy the maximum amount of house they could afford. There is also the idea that bigger is better but that’s not always the case. Larger homes require more time and money to maintain; if the space is unused this is simply wasted money. First time home buyers may want to consider buying a home that will meet but not exceed their needs for years to come or consider holding off on a purchase until they are better able to afford a home that meets their forever home requirements.

First Time to Investment

Another option a first time buyer may want to consider is not parting ways with their first home purchase and instead turning it into a rental property. There are separate things to consider when deciding to become a landlord but if this scenario works well for your situation you could help recoup closing costs faster or actually see a profit each month from obtaining a tenant.

As you can see, there’s no set time frame for how long you should stay in your first home and it’s possible you may never part with your first home. We recommend that you consider your current needs, your anticipated future needs, and market trends to help decide your plan before ever making an offer on your first home.

Should You Rent to Spring Break Vacationers?

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Spring break season is almost upon us. It may feel like a lifetime ago for you but spring break and Florida are still great friends. Spring break isn’t just the booze fueled week of debauchery it used to be. Now it’s about planning a week filled with activities that include golfing, winery tours, festivals, and spring training games, which opens up spring break to a whole new market. If you own a second home in Florida or are taking your own spring break vacation somewhere else chances are you may be considering renting your property out to spring break vacationers. It sounds like an easy way to make rental income in the off season, but should you rent to spring break vacationers?

The Under 25 Crowd

Spring breakers are typical college students aged 22 and under. This already poses a big red flag. Not all renters are going to be on the higher end of the age bracket and many more many not even be old enough to drink. Just like car rental companies, the risks to renting to such a young group cannot be ignored. If there is underage drinking, you as the homeowner may be liable. There is also the concern that your property won’t be treated with the care that it would normally receive from an older group. Overcrowding is also a legitimate concern when a group tries to double or triple the occupancy of the bedrooms and in some cases living areas to cut down on costs.

Should You Rent to Spring Break Vacationers

Let Your Insurance Policy Be Your Guide

Always consult your homeowner’s insurance policy before you change the status of your residency. If your home was originally purchased as an owner-occupied property, chances are good that your policy as it stands does not cover all the necessary items for you to now rent it to vactioners. Your homeowner’s insurance policy may also have restrictions on the age of renters and the total occupancy. It’s best to reach out to your insurance company or agent to discuss your plans and ensure that your liability is limited as much as possible.

Alternative Arrangements

With companies like AirBnB now allowing homeowners to rent out rooms while they remain in the house, homeowners may still benefit from spring break without taking on the worry of not knowing what state they’ll find their property in after spring break is done. It also cuts down on property management fees and house cleaning costs.

Opening your home up to spring break vacationers isn’t a disaster waiting to happen but it should be a decision you make after careful consideration. Review your homeowner’s insurance policy, investigate your renters and their references, and by all means secure the largest deposit allowable by law.

Renting v. Buying: Why It’s Not a Black and White Decision

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The latest hot topic in real estate news is the cost of renting. A recent study conducted by Harvard University’s Joint Center for Housing Studies and Enterprise Community Partners, Inc, found that 11.8 million households are spending half of their take home pay on rent. The industrial standard for a quick estimate of an affordable housing payment (renting or owning) is about one-third a family’s take home pay. You can quickly understand why industry advisers are encouraging more people to purchase a property rather then rent but it’s not that cut and dry. There are many variables and circumstances to consider before you decide to rent or purchase.

Stability

When deciding whether to buy or rent, you should consider your employment and lifestyle. Do you currently hold a job and is that job likely to continue without reductions to your salary? Does your employer intend to keep you in the same location or is there the possibility or guarantee that you will need to relocate within a short time period? Are you someone who is looking to commit themselves to one location, one home for several years or do you have a bit of wanderlust?

Financial health

Obtaining housing regardless of the method, requires the applicant to have their credit history examined. For someone recovering from a prior foreclosure or bankruptcy, their history may not be appealing candidates to lenders and either be denied a mortgage or offered one with a higher than average interest rate that would raise their monthly payment. If you are attempting to pay down a large amount of debt, you may also want to consider holding off on a mortgage for similar reasons. Having a low debt-to-income ratio and a solid history of on time payments will only bolster your financial health and make you a more favorable candidate.

Renting v. Buying: Why It's Not a Black and White Decision

Cost-effectiveness

With statistics on rent like the one above it’s difficult not to feel like as a renter you will be squandering all of your money on nothing but the numbers don’t tell the whole picture. If you are a renter and you are spending half your pay on housing, this most likely includes maintenance, landscaping, and some or all utilities. If you own your home, you will be responsible for the taxes, all maintenance (big and small projects), landscaping, insurance, and utilities. You should also consider if you’d be able to handle home maintenance and landscaping yourself or if you would need to outsource these tasks and incur another cost. These costs aren’t calculated into that “magic” one-third rule that gets touted.

Savings

After the mortgage industry collapse in 2008, lenders instituted strict rules for borrowers and insisted on larger down payments. This excluded many from being able to become home owners. As the market recovers, lenders have relaxed these rules slightly. In most instances though, you will still need a down payment to buy a home and secure a mortgage. If you have only a small fund and use all of your savings on a down payment though, you will have nothing left to use for furnishing your new home or have an emergency fund to rely on should you need it.

Alternatives

If you’re currently paying a high rent, you may have little opportunities to save for a home in the first place and feel like you are stuck in the rental cycle forever. That may not be true anymore though. As rental prices continue to climb but the purchase market becomes more available to more people, landlords are going to find themselves with a smaller pool of tenants. Experts don’t expect to see rental prices to decline drastically just yet but it may make more landlords open to ideas such as rent-to-own. This provides the renter an option to purchase a home when they are in a good financial position and also provides an exit strategy for a landlord. We recommend both parties of such a transaction solicit the help of licenses Realtors and/or attorneys to draw up the proper documents.

As we’ve shown, purchasing a property isn’t a black and white decision. There is no stigma is renting a home and it’s not always a poor financial decisions as many would have you to believe. We always recommend that you evaluate your unique situation thoroughly before moving forward. Our team can help you with your decision and your search for the home that’s right for you.