Starting out as a property investor in the real estate market can initially be very intimidating for beginners. There are numerous industry related investment terms and acronyms that every property owner will come across for the first time.
It is important to get acquainted with common real estate investing terms for investors to have a working knowledge of the basic real estate concepts. These terms will help in communicating effectively with other real estate professionals.
Let us look at some of the common real estate investment terms that every property owner should know:
- Appraisal: It is a survey conducted by the loan officer to determine the value of a property. The survey evaluates the property’s condition and compares listings to validate the purchase price before buying.
- Acquisition Cost: This is the final amount paid by the investor to purchase an investment property. It includes all the fees such as a mortgage, origination cost, closing costs, inspection fees, etc.
- Turnkey Property: An investment property that is fully renovated and does not require any repairs. The investor can purchase it immediately and rent out to tenants. It is updated according to current market standards.
- Rehabilitation: This term is used when repairs are required to make an investment property tenant-ready or ready for resale at a higher value. The repairs can range from minor repainting or installing upgraded fixtures to large-scale renovations such as replacing a roof or gutting a kitchen. The investor should be informed of these repairs prior to the purchase, and are typically listed in the inspection report.
- Assessment: It is an act of determining the real estate value of the property for tax purposes.
- Appreciation: Appreciation of a property stands for the increase in a property’s value over time. It can be attributed to improvement, increased demand, inflation, and/or weakening supply.
- Property Management: Rental property investors hire property managers to oversee the day-to-day operations of their rental property. Property management services include maintenance and repairs, rent collection, tenant screening, financial reporting, etc.
- Return On Investment (ROI): ROI is the measurement (calculated as a percentage) of the net profit of an investment property relative to the property’s total acquisition cost. A higher ROI will mean a higher yield for an investor.
The agents at Lone Star Realty & Property Management, Inc. assist property owners in understanding the terms related to investing in real estate. For more details on investment terms that every property owner should know, visit 1020 West Jasper Drive, Killeen, TX – 76542, or call at (254) 699 – 7003.
When looking for rental accommodation in Fort Hood, it is essential to be educated on the renting costs that are involved in the process. Rental costs can be fixed or variable, depending on the terms of a lease agreement.
Let us look at some common rental costs that need to be understood for better budgeting and reduction of expenses:
- Monthly Rent: This is an essential part of the rental costs that are fixed for the lease term. It can be defined as an amount charged by the property owner on a monthly basis for allowing rights to use the rental property and provided amenities as per the lease agreement.
- Application Fee: Property owners charge application fees as a means of covering administrative costs related to background verification including income and employment check, references verification, and rental history check.
- Renters Insurance: This monthly cost is essential for protecting a renter’s belongings (within the rental property), liabilities, and living expenses in case of any loss caused by theft, fire, and other covered events.
- Security Deposit: Most property owners will ask for an amount to be kept as a security deposit. This is a refundable amount that is returned at the end of a lease term depending on whether the property stays undamaged and rent is paid on time.
- Parking Fee: If parking space is included, a renter will have to pay a monthly parking fee. The amount of parking fee will depend on the location of the rental (urban or sub-urban).
- Utilities: Costs related to utilities such as gas, electricity, water, internet, heating and cooling, trash removal, and cable have to be paid by the renter. These expenses are variable in nature as the costs of utilities every month will vary according to the usage of a renter. However, in some lease agreements, the costs of utilities are a part of the monthly rent (check this in the lease agreement before signing).
- Pet Fee: If the renter owns a pet and can keep it in the rental property as per the lease agreement, he will have to pay an additional amount every month in the form of the pet fee. The amount may be dependent or independent of the size and breed of the pet, as stated by the lease agreement.
- Amenities: Living in a rental community that provides amenities such as a pool, gym, laundry room, etc. requires the renters to pay for the same every month.
Lone Star Realty & Property Management, Inc. assists customers in renting an ideal property in Fort Hood. The agents help the potential tenants in understanding various rental costs involved in renting a home. To know more about renting costs to consider n Fort Hood, visit 1020 West Jasper Drive, Killeen, TX – 76542. You can also contact (254) 699 – 7003.
Fort Hood attracts a number of renters due to its secure neighborhoods, cultural diversity, booming job opportunities, and availability of good schools. The rental market of the city has widened with increasing demand. Prospective renters can choose from a wide variety of rental options that cater to different lifestyle and budget requirements.
Some of the rental housing options available in Fort Hood are:
- Single-Family Homes: Rental homes are great for families with children as they provide privacy and ample space. Common facilities offered by single-family homes are private yards, multiple bedrooms, modern amenities, garage, etc.
- Townhouses: Townhouses comprise of multiple floors and are located closely to each other. One single complex may have multiple units that share a lawn or yard. The care for exteriors may be provided by the owner. They provide privacy and amenities like laundry rooms, powder rooms, linen closets, bedrooms with full baths, etc.
- Apartments: These are housing units that are located on different floors of a single building. Apartments consist of their own bedrooms with a walk-in-closet, water and trash utilities, amenities like garbage disposal, stove and refrigerator, washer and dryer hookups, an open living space, access to shopping areas, schools, entertainment centers, etc.
- Duplexes: These rental units are a good choice for small families, students, and single soldiers as they have fewer bedrooms. Common features that can be found in duplexes are covered patios, fenced backyards, large windows, ceramic flooring, shower/tub combos, ceiling fans, small pantries, a one-car garage, double sink, master bedroom, etc.
When looking for rental housing in Fort Hood, consider the different types of rentals available in the area. Consider your requirements and budget to choose the housing option that suits you. It is advisable to contact a professional rental agency for finding available rental options.
Lone Star Realty & Property Management, Inc. offers rental housing options in Fort Hood. The company lists all the available properties online. Prospective tenants can apply for the available rentals online. The team understands individual requirements of every customer to suggest suitable rental property. To know more about rental housing in Fort Hood, visit 1020 West Jasper Drive, Killeen, TX – 76542. You can also call at (254) 699 – 7003.