This coronavirus pandemic has turned our lives around quite a bit. I’m making the best of the situation, like most others, and remain hopeful that this shall soon pass. May God be with us all.
Don’t bother just to be better than your contemporaries or predecessors. Try to be better than yourself.
– William Faulkner
Here is a sneak peek into our first demo real estate commercial.
I’m trying to design a new business card and with 3 companies that I manage, I’m splitting hairs on which logo/name to use for one side of the card. I NEED YOUR HELP! What logo do you like best?
Option 1: Tanner Enterprises is the parent company (me, essentially) that manages the Florida Professional Entrepreneur Network (PEN).
Option 2: Essentially, the goal is to make PEN a national brand of networking, but for now we just have FL PEN, which includes 7 citywide networking groups: JAX PEN, SAF PEN, MIA PEN, FTL PEN, WPB PEN, ORL PEN, and TPA PEN. (example: www.meetup.com/jaxpen)
So, when I’m creating my business card I am at a roadblock of indecision because I just don’t know what to do. I’m thinking that option 2 is better, for now, because I’m trying to be the megaphone for the company. After PEN is famous (hopefully), then I can market Tanner Enterprises as the company who pioneered the PEN brand. That seems to be a logical sequence. What are your thoughts??? Your help is GREATLY appreciated!!!! 🙂
As the fairly new organizer of three Meetup groups in North Florida (with plans of expansion across the state), I decided to engage in researching the ins and outs of networking. One of the four books I recently checked out from the local library, The Networking Survival Guide by Diane Darling, McGraw-Hill (2003), pp. 22-23, has an interesting bullet list of 20 insights and thoughts on networking by Richard Saul Wurman, founder of TED (technology, entertainment & design) and author of 80 books, which I share with you now:
- Networking provides potential for greater joy.
- Discover common interests.
- Develop good friendships.
- Business gets done!
- Need to understand what people do.
- Be curious.
- Look at the dashboard – what does it tell you?
- Networking allows you to explore differences as well as what you have in common.
- Don’t distance yourself from failure.
- People like to make things complicated.
- Break bread.
- What drives him is that he’s always confident, and he’s always terrified.
- The desire not to fail is the same as being shy.
- Be a good listener.
- Like interesting people.
- Don’t have to be smart.
- Be genuine.
- The definition of learning is remembering what you are interested in.
- There’s no such thing as a teacher – only a guide.
- Celebrate connections with others.
Which of these ideas will you embrace as you attend your next networking event? Do you have anything to add to this list? Please comment below and share with your tribe if you think it’ll add value to their lives.
- Plan for outcomes and ROI.
- Offer value in marketing and selling that will resonate with buyers and differentiate your firm.
- Create and leverage offers and experiences like thought leadership in the form of books, white papers, seminars, speeches, and other tactics.
- Use the right lead generation tactics for your firm.
- Sustain lead generation and lead nurturing efforts.
- Measure, test, and improve your lead generation and nurturing efforts.
- Build your brand through lead generation.
Source: Professional Services Marketing by Mike Schultz & John E. Doerr
Planning your lead generation marketing begins with the end in mind (Dr. Stephen Covey), and in this case you should consider how many leads you expect to receive for your dollar spend. Are you hitting your return on investment benchmark?
Your firm can offer value in the form of free initial consultations, low-cost services, or free information that should benefit your prospective clients.
Provide deliverables that identify a problem and solution for your prospects, while elevating your status as an expert in the minds of your audience.
Not all lead generation is equal. Some methods are better suited for your industry. Figure out what works, then scale up or down your inertia to match your firm’s capacities to serve your conversions well – better yet, superbly.
Don’t drop the ball! – metaphorically speaking. Keep your marketing efforts running on auto-pilot so that you aren’t on a rollercoaster of ups and downs in business development.
Run A/B tests to maximize your lead generation, conduct quality assurance surveys among your audience to improve your nurturing efforts, and check in on your ROI frequency.
Strive to increase your firm’s recognition as the “go-to” firm in your niche/geographic region. Not only are you striving to achieve Top of Mind Awareness (TOMA), but you want to create an insatiable desire within your audience so that they crave to work with you.
Lastly, convert your leads to buyers.
When your buyers are very, very satisfied with your service, they’ll become racing fans who love to tell others about their experiences working with you, which is the best type of lead generation of all – clients for life! (And referrals!)
The residential rental market is now the fastest-growing segment of the housing market. In the United States, the demand for single-family rentals, defined as either detached homes or townhouses, has risen 30 percent in the past three years.1And in Canada, rental units now account for nearly one-third of the country’s homes, with particular demand for multi-family units, including apartments and condominiums.2
At the same time, the short-term, or vacation, rental market is also booming. The popularity of online marketplaces like Airbnb, HomeAway, and VRBO has helped the short-term rental market become one of the fastest-growing segments in the travel industry.3
Now, more than ever, there is an abundance of opportunity for real estate investors. But which path is best: leasing your property to a long-term tenant, or renting your property to travelers on a short-term basis?
In this post, we examine the differences between the two investment strategies and the benefits and limitations of each category.
WHY INVEST IN A RENTAL PROPERTY? The Top 5 Reasons
Before we delve into the differences between long-term and short-term rentals, let’s answer the question: “Why invest in a rental property at all?”
There are five key reasons investors choose to buy real estate over other investment vehicles:
Appreciation is the increase in your property’s value over time. And history has proven that over an extended period, the cost of real estate continues to rise. Recessions may still occur, but in the vast majority of markets, the value of real estate does grow over the long term.
II. Cash Flow
One of the key benefits of investing in real estate is the ability to generate steady cash flow. Rental income can be used to pay the mortgage and taxes on your investment property, as well as regular maintenance and repairs. If appropriately priced in a solid rental market, there may even be a little extra cash each month to help with your living expenses or to grow your savings.
Even if you only take in enough rent to cover your expenses, a rental property purchase will pay for itself over time. As you pay down the mortgage every month with your rental income, your equity will continue to increase until you own the property free and clear … leaving you with residual cash flow for years to come.
III. Hedge Against Inflation
Inflation is the rate at which the general cost of goods and services rises. That means as inflation rises, the money you have sitting in a savings account will buy less tomorrow than it will today. On the other hand, the price of real estate typically matches (or often exceeds) the rate of inflation. To hedge or guard yourself against inflation, real estate can be a smart investment choice.
Leverage is the use of borrowed capital to increase the potential return of an investment. You can put a relatively small amount down on a property, finance the rest of the investment with a mortgage, and then profit on the entire combined value.
V. Tax Benefits
Don’t overlook the tax benefits that can come with a real estate investment, as well. From deductions to depreciation to exemptions, there are many ways a real estate investment can save you money on taxes. Consult a tax professional to discuss your particular circumstances.
These are just a few of the many perks of investing in real estate. But what’s the best strategy to maximize returns on your investment property? In the next section, we explore the differences between long-term and short-term rentals.
LONG-TERM (TRADITIONAL) RENTAL MARKET
When most people think of owning a rental property, they imagine buying a home and renting it out to tenants to use as their primary residence. Traditionally, investors would use their rental property to generate an additional stream of income while benefiting from the property’s long-term appreciation in value.
In fact, that steady and predictable monthly cash flow is one of the key advantages of owning a long-term rental. And as an owner, you don’t usually have to worry about paying the utility bills or furnishing the property—both of which are typically covered by the tenant. Add to this the fact that traditional tenants translate into less time and effort spent on day-to-day property management, and long-term rentals are an attractive option for many investors.
However, there are also limitations to long-term rentals, which often come down to your ability to control the property. Perhaps the most obvious one is that you do not get to use the home or closely monitor its upkeep (this is different from a short-term rental, which we’ll share in the next section).
In addition, while you can usually generate a steady, predictable income stream with a long-term rental, you are limited in your ability to adjust rent prices based on increasing or seasonal demand. Therefore, you may end up with a lower overall return on your investment. In fact, according to data from Mashvisor, in the 10 hottest real estate markets, short-term rentals produced “significantly higher rental income” than long-term rentals.4
SHORT-TERM (VACATION) RENTAL MARKET
Short-term rentals are often referred to as vacation rentals, as more and more travelers enjoy the benefits of staying in a home while on vacation. In fact, according to Wells Fargo, vacation rentals are steadily growing and predicted to account for 21% of the worldwide accommodations market by 2020.5
Investing in a short-term rental or funding your second-home purchase by renting it out can offer many benefits. If you purchase an investment property in a top travel destination or vacation spot, you can expect steady demand from travelers while taking advantage of any non-rented periods to enjoy the home yourself. In addition to greater control over how your property is used, you can also adjust your rental price around peak travel demand to maximize your returns.
But short-term rentals also have risks and drawbacks that may dissuade some investors. They require greater day-to-day property management, and owners are typically responsible for furnishing the property, upkeep, and utilities.
And while rental revenue can be higher, it can also be less predictable based on seasonal or consumer travel trends. For example, a lack of snowfall during ski season could mean fewer bookings and lower rental revenue that year.
In addition, laws and limitations on short-term rentals can vary by region. And in some areas, the regulations are in flux as residents and government officials adapt to a new surge in short-term rentals. So, make sure you understand any existing or proposed restrictions on rentals in the area where you want to invest. Urban centers or suburban communities may be more resistant to short-term renters, thus more likely to pass future limitations on use. To lower your risk, you may want to consider properties in resort communities that are accustomed to travelers. We can help you assess the current regulations on short-term rentals in our area. Or if you’re interested in investing in another market, we can refer you to a local agent who can help.
WHICH INVESTMENT STRATEGY IS RIGHT FOR YOU?
Now that you understand these two real estate investment options, how do you pick the right one for you? It’s helpful to start by clarifying your investment goals.
If your goal is to generate steady, predictable income with less time and effort spent on property management, then a long-term rental may be your best option. Also, if you prefer a less-risky investment with more reliable (but possibly lower) returns, then you may be more comfortable with a long-term rental.
On the other hand, if your goal is to purchase a vacation or second home that you’ll use, and you want to defray some (or all) of the expense, then a short-term rental may be a good option for you. Similarly, if you’re open to taking on more risk and revenue volatility for the possibility of greater investment returns, then a short-term rental may better suit your spirit as an investor.
But sometimes the decision isn’t always so clear-cut. If your goal is to purchase a future retirement home now to hedge against inflation, rising real estate prices, and interest rates, then both long- and short-term rentals could be suitable options. In this case, you’ll want to consider other factors like location, market demand, property type, and your risk tolerance.
HERE OR ELSEWHERE … WE CAN HELP
If you’re looking to make a real estate investment—whether it’s a primary residence, investment property, vacation home, or future retirement home—give us a call. We’ll help you determine the best course of action and share insights and resources to help you make an informed decision. And if your plans include buying outside of our area, we can refer you to a local agent who can help. Contact us to schedule a free consultation! (904) 373-8453.
The above references an opinion and is for informational purposes only. It is not intended to be financial advice. Consult the appropriate professionals for advice regarding your individual needs.
- USA Today –
- The Globe and Mail –
- Phocuswright –
- com –
- Turnkey Vacation Rentals –
It depends. If the injury occurred on leased property and was caused by one of the five following items, the landlord may be liable:
- Common areas (hallways, stairs). The landlord has a duty of reasonable care to maintain and repair the common areas. Safety in common areas is also a duty.
- Latent (hidden) defects. The landlord has a duty to disclose any hidden defects that he or she should reasonably be aware of. For example, if an apartment door has a defective knob that could harm a tenant and the defect is not readily apparent, then the landlord has a duty to disclose of that defect to the tenant. (Or simply repair it)
- Assumption of repairs. If the landlord chooses to self-remedy a broken handrail on a staircase, but does so erroneously, and a tenant subsequently gets injured from the handrail, then the landlord has assumed the liability flowing from his attempted repair.
- Public use. If the tenant operates a convenience store and is aware there is a defect on the premises, and also knows the tenant is unlikely to correct the problem, then the landlord has a duty to repair the problem or will be liable for the defect.
- Vacation homes or short-term rentals. The landlord is liable for any defects in the dwelling that cause harm to the tenant. (It may be advantageous to use a “terms of acceptance with an indemnification clause for certain activities in the rental contract, and carry a landlord insurance policy).
Source: CriticalPass Property Law MBE Flashcard. http://www.criticalpass.com
Image Source: Pixabay
Disclaimer: This information is not to be construed as legal advice and is provided for educational purposes only. The reader assumes responsibility for the use of this material and information. The author assumes no responsibility or any liability whatsoever on behalf of any reader of this material. If the reader has any questions about the subject matter, he or she should consult with an attorney who practices real estate law and is duly licensed in the jurisdiction where the subject property is located.
I’m playing a game and my opponent is the time thief. So far he’s been winning, but I’ve been observing his strategies for awhile.
I’ve also been calculating my own strategies for some time now, and pretty soon I’m going to gain a very competitive advantage!
As law students, we are trained to identify the legal risks of a given scenario and then advise our clients of those risks. That is the essence of lawyering.
As a transaction lawyer, because we can recognize the potential for misconduct within a transaction, we have a fiduciary duty to protect our client’s interests in the transaction by structuring it in a way to optimally minimize such risks. Our three duties, then, are to:
Identify the nature and scope of any perceived risks that can disrupt the transaction.
Reduce the probability of loss (i.e., transaction costs, opportunity costs, out-of-pocket costs, or sunk costs) from those identifiable risks.
Deflect, to the extent most possible, the costs of inalienable risks.
Put another way, our goals are to protect our client’s interest (identify, reduce, deflect) & facilitate the completion of their desired transactional interest.
Source: Rick Daley, Real Estate Development Law, West Publishing (2011)