Tips & Advice
How long does it take to build a house?
The time it takes to build a house varies, with the average time of the construction being 6-7 months from the time the permits are approved. If a customer chooses a personalized production home in a development, the construction phase can take only 4-5 months.
Custom homes take longer, for a few reasons: before the permits are approved, the custom design, floor plans and pre-construction process has to be complete, and this alone can take a few months. Getting financing and choosing a contractor can also add time to the process.
All home builds can be delayed due to weather, permit and inspection delays, waiting on construction material supplies, and disagreements between homeowner and contractor on design details.
Is it cheaper to build rather than buy a house?
It is not easy to figure out whether it’s cheaper to build a new house rather than buy. Industry reports show that the final price of a new construction home is significantly higher than buying an existing home. However, this isn’t necessarily an accurate side-by-side comparison, since new builds tend to be larger, more energy efficient, and more customized in terms of features and materials. Pre-existing homes will often end up requiring significant repairs, and ongoing upkeep.
What is a general contractor?
A general contractor is a company or individual that oversees an entire construction process and is responsible for pulling permits, liaising with inspectors, hiring subcontractors, working with homeowners and designers, and handling day-to-day oversight on the construction site.
How much does it cost to build a new house?
The cost to build a new house varies widely and is affected by many factors including the market, the specific location, the size of the house, what kinds of materials will be used, and what kinds of special features will go into the house. To get a better idea for price of new homes, start by researching comparable new builds in the area and neighborhood you’re interested in buying. Speak with architects and builders in your area. Also, read local blogs and trade websites. In general, the cost per square foot of a new development is $150.
How to choose a home builder
Choose a home builder based on their reputation for quality work, their style (it should match what you want in a home), their price, how busy they are, and how well they listen to and understand your needs. Take lots of time to research and interview. Read plenty of articles and profiles, ask people you trust for their recommendations, and ask your potential builders as many questions as you need to before committing. This is a major decision and above all you should not feel rushed or boxed into a decision.
What are the benefits of hiring a property management company?
Some of the key benefits of hiring a property management company include:
- Better tenants: The best property management companies are skilled at tenant screening. This can help you attract a higher caliber of tenants to your building. Effective tenant screening can bring in tenants who are more likely to pay their rent in a timely fashion, and who are more likely to remain long-term residents of the building. Screening can also provide you with tenants who are less likely to damage the rental property.
- Shorter vacancy cycles: If a tenant moves out, it can take awhile to find a qualified replacement. It's in your best interest to keep this vacancy cycle as short as possible, since you won't be earning any money from an empty unit. Skilled property managers can handle the process of finding a replacement tenant quickly and effectively. This results in shorter vacancy cycles.
- Freedom from the day-to-day responsibilities associated with property management: If you manage a property yourself, you'll have to deal with things like rent collection, tenant complaints, and maintenance and repair issues. These responsibilities can be bothersome and time-consuming. Hiring a property management company will help you avoid having to deal with these tasks on a daily basis.
- Reduced tenant turnover. Tenant turnover can impact the profitability of a rental unit. The best property management companies know how to keep their tenants happy, and happy tenants are a lot less likely to move out of the building and a lot more likely to take reasonable rent increases in stride.
How to find a property manager?
Use the following steps to find and hire a property manager:
- Get referrals, or conduct an online search: Start by getting referrals from sources you trust. Be sure to get referrals from multiple sources to avoid bias. You can also conduct an online search to find property management companies that are based in your area.
- Check for ratings, reviews, and complaints: Once you're built a list of candidates, check with the Better Business Bureau to see if complaints have been lodged against any of the companies. It's also wise to visit third-party review sites to see what types of ratings and reviews each company has received.
- Look at each company's current work. After weeding out those companies with credible complaints and poor reviews, look at the current work of the companies that remain on your list. Evaluate the ads posted by these companies; you'll want to work with a company whose ads project professionalism. Visit buildings managed by these companies, and speak with the tenants. The best property management companies have tenants who are happy with the services they provide.
- Conduct interviews with the top candidates: Next, conduct interviews with the property managers who remain on your list. Look for a company with staff members who are responsive to your questions and open to hearing about your priorities and concerns.
- Check licensing: At this point, you should have a favorite or two. Before signing on the dotted line, verify that the company is licensed to manage property in your state. In most states, a real estate broker license is required, while a few states require a property management license.
- Carefully review the agreement: Once you've been presented with a property management agreement from the company you've chosen, check to make sure it explicitly includes all the duties and responsibilities you'd like the property management company to handle.
Does property management require a license?
In most states, property management requires a real estate broker license. To obtain this license, you need to have a high school diploma or its equivalent, along with at least two or three years of real estate experience. Classes in real estate education are required, as well as passing a real estate broker's exam.
In a handful of states, a specific property management license is required before someone can legally manage property. This license is required in Montana, Oregon, South Carolina, and South Dakota.
How much do property management companies charge?
The rates charged by property management companies vary depending on the services provided, and location may also impact the fees charged. Most property management companies charge a rate that totals 8 percent to 12 percent of the property's rental value. Others might charge a flat fee that has nothing to do with rental value, and instead relates to the range of services provided. Property management companies might charge an extra fee for services such as tenant placement and eviction.
What is the job of a property manager?
A property manager is a professional hired by a property owner to handle the day-to-day management of a rental property. A property manager sets rental rates and collects rent from tenants, and is also responsible for finding and screening tenants. Property managers handle property-related maintenance and repair issues, and they can tackle responsibilities related to tenant move-outs, evictions, complaints, and emergencies.