Importance of a Thorough Tenant Screening!

Nothing is more important to a landlord than the peace of mind that the individuals living in their home are treating it as good as, if not better, than you would. Choosing a “bad” tenant can cost you thousands of dollars so it is imperative you choose wisely.

Considering becoming a real estate property investor but need a little guidance on where to start? Here are 6 helpful tips to help you in choosing the best property for your situation.  1) Fixer Upper vs Move-In Ready Purchasing a property that requires renovations can be a daunting task to take on. Things to consider are the cost it will take to get it move-in ready, any mortgage payments to be made during the renovations, and the amount of rent you will be able to get once the project is finished. If the return doesn’t outweigh the cost, then purchasing a move-in-ready home is the better option. We recommend consulting with a Property Manager that specializes in Project Management for remodels and one that is an expert in the area to guide you through the process and would know best the amount of rent you can charge. 2) Condo vs Single-Family Home vs Townhouse There are 3 different styles of home to choose from, a condo, townhouse, or single-family home. A condo would be a smaller space to maintain, with no outdoor maintenance, and many times the utilities are included in the condo fees. A townhome would be minimal maintenance as usually, the yards are quite small. A townhome can be found in the city or the suburbs and is great for a renter looking for an outdoor space for young kids and/or pets but without the daunting task of maintaining a large yard. A single-family home would be a larger purchase in regards to price and maintenance. Many maintenance costs, like landscaping and utilities, are often passed to the renter. 3) ROI (Return on Investment) When factoring in the option to purchase an investment property, the length of time you plan to own the property will come into play. The longer you own it, the more likely it is to make a higher profit when you are ready to sell it. Also, all the monthly mortgage and maintenance should be less than the amount of rent you collect. You will want to maintain a nice cushion for any major issues that could arise long-term, like the need for a new roof, new appliances, or possible water damage. In any situation, we recommend purchasing a home warranty to cover the larger issues that could arise and also having approximately 2 months' equivalent of rent in a savings account specifically for rental property repairs. 4) Costs to consider Depending on the type of property, Condo and HOA fees are a cost you cannot avoid. Condo fees typically are significantly higher than HOA fees. The advantage of a condo is that the condo association will take care of all of the maintenance items for the exterior of the unit, amenity fees for your renter to enjoy, as well as insurance amongst other costs. Property taxes are a yearly cost that will need to be paid. There is the option to add it to the monthly mortgage payments to spread it out over the year. We recommend consulting with your financial or tax advisor. Another fee is the mortgage payment and other fees during any vacancy periods. There is no way to predict this cost, but it is recommended to set aside funds for this situation as well as utilities and landscaping maintenance. 5) City vs Suburbs The closer to a city you get, oftentimes the smaller the square footage of the property available to purchase compared to the same price point in the suburbs. Most often, a condo or townhouse is an ideal option for those wanting to live close to the city. The suburbs will be primarily single-family homes with townhouses and some condo options as well. 6) Rental Demand The area you decide to purchase in will determine the market rent. Consulting with a property manager that is an expert in the area will help make sure you purchase in a rental demanded area. Typically property managers are also real estate agents and can help negotiate a great purchase price for you. If you are looking for investment property experts in the Northern Virginia, Maryland, and DC rental markets, give us a call at 703.966.2232 for a professional consultation to discuss your real estate investing needs.

Imagine you are living in a house that you anticipate being in for many years. Unexpectedly, your work wants to transfer you for a few years to another state, but they anticipate you will return to the area. You don’t want to sell your current home, you love it and know you will be back. So you decide you will rent a home in your new location and rent out your current home. You have no idea how to be a landlord or how to efficiently screen potential applicants. You need a tenant who will treat your home as if it is their own. How do you find someone like that? This is a perfect real-life example of the benefits of working with a property manager. A reputable company has the marketing tools and expertise as well as the application processes in place to screen tenants thoroughly. They will perform extensive credit and background checks and verify income to ensure that the tenant will be able to pay their rent for the duration of the entire lease. They can verify employment, check past rental references, and confirm that there are no criminal records. In addition, while you are away from the area, a property management company will be available 24/7 for any unexpected maintenance emergencies. They can get the best contractors in there to remedy the problem immediately, avoiding major financial burdens if the issue is not addressed. In addition, the property management company has systems in place for collecting rent electronically, enabling tenants to deposit those funds into your account by a specific date. Property Management companies are able to perform yearly inspections and provide a report to you detailing the condition of the home and uncover any potential problems down the road, saving the owner money in the long run and keeping the home in top condition for their return. Property management companies also take care of executing leases that have legalities and obligations in place protecting the owner and ensuring the home will be maintained and returned in substantially the same condition as when the lease began. They are also licensed, insured, and bonded giving the owner additional protection. At the end of the day, if you find yourself in this situation it would greatly benefit you to interview several property management companies in your area finding the one that offers the most services at a reasonable rate. Be sure to read the reviews, talk to friends and colleagues in similar situations to see whom they would recommend. For those in the greater DMV area, Hatch Property Management and Sales is available to assist with all of your property management needs. Please give us a call at 703.966.2232 for a free phone consultation today or click here and fill out our online request from to make an appointment online.

It’s that time of year again to start preparing your home for the cold winter months. We’ve highlighted 5 essential home maintenance projects to address this fall which could save you thousands of dollars later. 1) Chimney Cleaning Before firing up the chimney for the first time, be sure to hire a licensed professional chimney cleaning company to come out and clean and inspect your chimney for any defects. Lack of maintenance over time can lead to costly repairs, or worse, life threatening fire hazards. Check out our preferred vendors here for top quality professional companies: Hatch Recommended Vendors 2) Roof Inspection Before the weight of heavy snow lays on your roof this winter, take some time to visually inspect the shingles, roof line, chimney wrapping, etc. to look for any cracks, missing sections, broken shingles, or any unnecessary debris. If you notice any of these things, call a professional roofing company to come out and make those necessary repairs to avoid long term more costly issues down the road. 3) Gutter Cleaning/Inspection With all the summer storms that have come through this year, it is imperative to get your gutters and downspouts cleaned out and inspected for any damage. Also, as we are entering fall, remember to keep up with clearing away leaves and debris on a regular basis. 4) Clearing Outside Drains Just like with gutters, leaves can be quite damaging to areas around outside drains. Owner Sarah Hatch gave some great pointers here in our YouTube video on how to keep outside drains free and clear of debris this winter. Watch Here! 5) Dryer Duct Cleaning Did you know that there are two different areas of a dryer that need to be cleaned out regularly? The first is the lint catcher which should be cleaned between every load of laundry. The second is accessed behind the dryer itself. In order to do this, first unplug the dryer. Then move the dryer so you can access the back of it. Carefully remove the dryer vent. Using a brush or vacuum, remove any lint or debris. Then reconnect the vent, place your dryer back in place and plug it back into the wall. Cleaning the dryer vent should be completed at least once a year to avoid any major fire hazard.

Making the move to DC, Maryland, or Northern Virginia can be daunting, especially if you have never been here before. We would like to tell you some of our client's top considerations when relocating here. Location! Location! Location! Depending on the type of vibe you want for where you live, the DMV (DC/MD/VA) has it all. From suburban family communities with parks and playgrounds to city life in a hi-rise condo with walking distance to everything you need or a quick metro ride. And just about everything in between. We suggest making a priority list based on the lifestyle you want to help narrow down your search. Schools There are areas of the DMV (DC/MD/VA) with some of the highest rating public schools in the country! And if the area you live doesn’t offer the best public school, there are numerous, highly rated private options from daycare age up to High School. We recommend researching the schools, reading parent reviews, talking to the PTA president if possible and driving around the neighborhood of the school’s location. Proximity to Work The average commute time in the DC area is 30-45 minutes, whether you are driving or taking public transportation like the Metro, Buses or Railway, or slugging. Commute time is probably the factor that is most highly considered in the decision process. Rent vs Buy & Budget While talking to clients who will be relocating to the area, we take a lot of time to explore the options especially when it comes to renting vs buying. Factors to consider are 1) length of time in the area 2) budget 3) cash reserves 4) loan approval 5) being a future landlord. With our expertise as Property Managers, we are an excellent resource to know what a long term property investment can look like if the option to purchase is chosen. Commuter Options There are several options here in the DMV including taking the Metro, Metro Buses, City Buses, VRE (Virginia Railway Express), Slugging, EZPass Flex, EZPass and/or walking. Slugging is quite popular which is basically modern day organized hitch-hiking. There are excellent websites for each of these options. Activities, Entertainment and Amenities Dining, Comedy Shows, Live Music, Festivals, Concerts, Night Clubs, Sports Games, Movies, Bowling, Playgrounds, Community Swimming Pools, Tennis Courts, Workout Facilities, the list goes on and on. The DMV has it all. With the help from a member of the Hatch team, we can get the area narrowed down for you based on all of your wants and needs. Just give us a call! We are here to help in any way we can to make the process smooth and enjoyable.

Home inspections are an inexpensive way to stay on top of home maintenance issues. We recommend to all of our owners to have a home inspection completed on their investment properties at least every year to look over all of the main components of a house. Our inspectors take time to look over the HVAC, Heat Pumps, Appliances, Plumbing, Electrical, Windows, Roof, Foundation and anything else that stands out. It is a great means of maintaining the property that you don’t live in so that you can keep this investment for many years to come without any major issues going unnoticed. For example, if there is a leak with the hot water heater that a tenant never reports, this could result in the eventual replacement of the unit, which can cost $1500-$2500. Or, if you pay a home inspector $150 to look over your property one time a year and he finds this issue, then the repair will only be for a fraction of the cost. The inspector provides the owner with a detailed report that includes photos and recommendations that the owner can either have the repairs done right away, or plan for those that are not of an urgent matter. Our owners find so much value from these inspections, especially the owners that live overseas. We work with each owner individually to have a one on one call to review the inspection together and make a plan for any maintenance work that needs completed. We handle all of the coordination with the maintenance companies and the tenants to ensure the items are completed in a reasonable time period.

Here are a few additional items we recommend as well. We can't wait for Summer!!! -Test Outside Hoses for any cracks or holes from the winter storage -Inspect the outside perimeter of the House for Cracks/damage from Winter weather -Put Away Snow Shovels & Car Brushes -Service Snow Blowers prior to putting them away for the winter -Dust off All Ceiling Fans -Pull out Patio Furniture, Dust off/Clean as needed -Pull out and Inspect Grills for proper service -Weed flower beds and apply mulch -Service lawn mower with fresh gasoline and oil -Wash windows and inspect window screens for holes/damage -Test sump pump for proper function before the rainy season starts -Power wash exterior walkways, sidewalks, & steps

Thanksgiving Cooking Safety Tips to keep your family safe this holiday season!