Value of Rental Property: Negotiations to Buy or Sell
Monday, June 29
Prior posts discussed the income capitalization method of determining the value of a rental property. This post will cover how you use that information to negotiate the purchase or sale of property.If it works to your advantage, structure the negotiations into a discussion of value based on incom...
Massaging the Numbers on Rental Properties
Sunday, June 28
My last post explained the income capitalization method of evaluating rental properties. This one concentrates on the "income" angle of things.You will recall I explained that Net Operating Income was all of the operating revenues from a property (gross rent, fees, and other revenues such as bill...
Income Capitalization Method of Valuing a Rental Property
Saturday, June 27
Income capitalization is a relatively sophisticated method of valuing a rental property. Yesterday, I posted about the easier Gross Rent Multiplier method. Capitalization of Income is one step above GRM.Some people call this the NOI/cap rate analysis. It compares the Net Operating Income--NOI--to...
GRM: Gross Rent Multiplier
Friday, June 26
I've noticed several forum posts asking about Gross Rent Multiplier (GRM).This is a very simple tool for evaluating an income producing property. It is a comparison of the purchase price and the gross monthly rent, before subtracting any expenses.Some people do the calculation on a monthly basis...
Proof of Disability
Tuesday, May 12
When tenant or prospects asks for a reasonable modification (change in the premises) or reasonable accommodation (change in rules) due to a disability, the landlord may not point-blank ask for proof of the disability.Be VERY careful in this area, or you will be in violation of the Fair Housing la...
Alabama: How to Hold Title to Real Estate
Wednesday, April 29
This is an excerpt from my book, Alabama Landlord's Desk Reference and Forms Book, 3d edition, 2015:There are six basic ways to hold title to your rental property in Alabama: (1) Your own personal name. The pros and cons are: It is the easiestIf you later sell and hold the financing, you can d...