Screening Potential Tenants Can Protect Your Real Estate Business from Financial Loss

Illinois real estate attorneysWhen renting out property – be it commercial or residential – landlords are encouraged to conduct a thorough screening of all prospective tenants. The reasoning for this is simple: tenants can cost you thousands of dollars in property damage, lost rental fees, and court costs. Learn more about how to ensure you have done your due diligence on a potential tenant for your property, and discover how a seasoned real estate attorney can help protect your real estate business.

The Pre-Screening Process

There are many ways to conduct a tenant screening, but most landlords find a two-step process preferable, which starts with a pre-screening, and it typically includes questions like:

  • Why are you moving?
  • Can you meet the income requirements?
  • Do you have pets?
  • When do you want to move in?
  • Will anyone else be living/doing business with you?
  • Are you willing to undergo a background and credit check?
  • Can you provide me with past rental references?

With these few questions, landlords are often able to filter out tenants who might be problematic. Some may even remove themselves from the pool of tenants because they are uncomfortable with the questions or cannot answer them satisfactorily. At the very least, these questions allow the landlord to focus their efforts on the tenants who seem to be the “best fit” for their property or situation.

Digging Deeper Into a Prospective Tenant’s Rental History

Although it may be possible to screen out problematic tenants with the pre-screening questions, one should never rely solely on this phase of the screening process. There are “professional tenants” that know how to difficult it can be to evict someone. Able to make themselves sound like model tenants, these seemingly charming and charismatic people often have a slew of evictions on their record. Alternatively, they may not have active employment and may, instead, offer you invalid employer information to get themselves into your property. Avoid such issues by ensuring you always conduct a criminal background check, credit check, and a rental history check. Also, always verify employment and call a prospective tenant’s references before moving forward with a lease.

Adding Another Layer of Protection to Your Real Estate Business

Although many landlords choose to handle tenant matters on their own, savvy business owners recognize that it is often best to delegate some of your more taxing or complex duties, such as screening tenants or fighting a problematic tenant in court. It is here where the aid and assistance of a seasoned real estate attorney can become valuable.

With over 40 years of experience, Stock, Carlson, Oldfield & McGrath, LLC can add yet another layer of protection to your real estate business. Able to assist you in developing a clear and concise rental agreement, and capable of aggressively representing you in court if a tenant defaults, our DuPage County real estate lawyers make your financial future our top priority. Learn more about how we can assist you in growing and protecting your portfolio by scheduling a personalized consultation. Call 630-655-2500 today.

Source:

https://www.forbes.com/sites/forbesrealestatecouncil/2018/03/08/how-to-screen-potential-tenants-and-save-thousands/#7adb48b0332c

Why Hire an Attorney When Buying or Selling Residential Property?

Illinois real estate lawyersAs a consumer, you make hundreds – if not thousands – of purchases each year. Some are small and require nothing more than your debit card, credit card, or cash payment. Others, such as the purchase and sale of residential property, require a larger investment. Learn how the aid of an experienced real estate attorney can protect that investment while also decreasing the chances of costly or unexpected delays and challenges along the way.

Practicing Your Due Diligence

Anyone that has ever purchased a used car knows that there is always a risk of purchasing a "lemon" – a vehicle that never seems to run properly and always needs repairs. Sadly, not everyone knows that this can happen with houses, too. A home with the gorgeous wainscoting could be hiding mold or fire damage underneath. Structures that do not give much access to the crawl space could have more foundation issues than originally thought. Due diligence, performed with the aid of an attorney, can reduce the risk of these costly and unexpected problems.

Avoid Vague and Unclear Contract Terms

Real estate contracts are long, complex, and potentially confusing documents that few individuals have the knowledge to decipher. Instead, they usually find out too late that they are responsible for more of the closing costs than anticipated, or that the real estate agent has added commission fees to the contract. Avoid such issues by ensuring you have an experienced real estate attorney on your side, long before you ever sign a single document.

Negotiate a Better Deal in the Purchase Agreement

The purchase agreement is one of the single most important documents in a residential real estate transaction, and not understanding it can cost you dearly. For example, it may be listed that the home was altered, but it may not have been done lawfully. If you do not know this before signing the purchase agreement, you could become subject to fees and fines, imposed by your county, city, or state, for the continued use of unlawfully built or zoned structures. Additionally, you would be responsible for the demolition or correction of the structure in question.

Contact Our DuPage County Real Estate Lawyers

Regardless of whether you are purchasing or selling residential real estate, contact Stock, Carlson, Oldfield & McGrath, LLC. Dedicated and experienced, our seasoned DuPage County real estate lawyers can protect your real estate investment. Call 630-665-2500 and schedule your personalized consultation to get started today.

Source:

https://www.investopedia.com/articles/mortgages-real-estate/08/real-estate-attorney.asp

Buying Foreclosed or Bank-Owned Property

Naperville real estate lawyersPurchasing a foreclosed or bank-owned property can save you a lot of money on the purchase of your home or investment property. However, this is not always the case. Instead, buyers need to be diligent, resourceful, and savvy to decrease the odds of a financial loss. The following information can help you learn more about buying a Real Estate Owned (REO) property, and it explains how an experienced real estate lawyer can assist with the process.

Be a Savvy Home Buyer

Whether you are investing with the hopes of one day making a return on the property, or are planning on making an REO your full-time residence, be a savvy home buyer. Make sure you are pre-approved for a loan or have the cash on hand to smooth the process, and know that some homes (particularly those with significant damage) may be ineligible for certain types of loans. If the property is distressed, an FHA loan may be your best option. Just keep in mind that some buyers might not be eligible for an FHA loan. In such situations, cash may be required.

Get Your Own Appraisal and Inspection

Although the bank may have already conducted an appraisal and inspection of the property, it is important that buyers obtain their own, separate from the bank. Doing so ensures that the buyer is aware of any major issues, and sometimes, separate inspections turn up damage that was not discovered during the bank's inspection or appraisal. Remember: it is critical that you know what you are getting into. Otherwise, you run the risk of financial loss, either through the home purchase price or while trying to make repairs.

Never Go Through the REO Buying Process Alone

While the state does not require the assistance of an attorney while buying a home, the assistance of an experienced real estate attorney is still encouraged. Able to protect your interests, assist you in negotiations, and skilled in navigating some of the most complex homeowner transactions, an attorney can improve your odds of a positive outcome.

Do not take chances with your money or investment property. Instead, contact Stock, Carlson, Oldfield & McGrath, LLC for assistance with the purchase of your REO home or investment property. Backed by more than 40 of legal experience, our DuPage County real estate lawyers offer comprehensive and personalized real estate transaction services to meet your needs. Schedule a personalized consultation to get started. Call our offices at 630-665-2500 today.

Source:

http://www.foxbusiness.com/features/2010/12/17/keys-buying-bank-owned-property.html