apartment management certificate – Can my apartment management include premiums of renters insurance on my rent ?
Can my apartment management include premiums of renters insurance on my rent ?
The complex I live in requires that each tenant have renters insurance because the management suffered losses from damages as a result of the tenants' negligence. I want to have the freedom to choose the company that I buy it from -- but they want to increase my rent in order to cover for the premiums. The management company in turn buys a policy for each unit. Can they do that ? I live in California.
Most people know that real estate is an excellent long-term investment. But few know that apartment buildings offer both instant cash flow and long term wealth. Even fewer know that it is possible to get started with apartment buildings even if you do not have any cash yourself.
Residential real estate investing is good for long term wealth but it generally takes a long time before you receive a decent cash flow. Commercial real estate on the other hand, often gives you a handsome cash flow from day one. A lot of residential investors think that commercial property is only for the big boys. But the truth is that it is often possible to get started in commercial real estate with little money and sometimes even with no money.
Apartment buildings give you the generous cash flow of commercial real estate. But at the same time, the cash flow is reasonably stable since you have many tenants. And in the long term, the equity in the buildings will make you wealthy. The main drawback is that you have many tenants to deal with. This is both good and bad, good because it means a stable cash flow but bad because you will have to deal with many tenants.
Of course, you are not personally managing your apartment buildings. You outsource that task to a management company, they generally charge you 5-6% of the revenue. This is well worth paying, because you do not need to worry about the daily issues of managing the property.
Once you own a couple of apartment buildings, it is easy to buy more buildings. But how do you get started? Unless you have a lot of cash to invest in your first deal, you need to find a motivated seller. You want a motivated seller who is prepared to give you seller financing. Far from every seller will offer seller financing but you only need one deal to get started. And given the handsome cash flow such a deal gives you, it is well worth looking for motivated sellers. The best way to find motivated sellers is to do it yourself. Find the owners of apartment buildings you are interested in and ask them if they are thinking of selling their building. A more comfortable but less efficient way is to ask real estate agents for deals with motivated sellers.
If you are interested in making big money and want to learn more about how to invest in apartment buildings, go to http://www.InvestInApartmentBuildings.com
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