Six tips to help you get the right location for your property investment

exterior houseLocation, location, location. Three small words that can transform your property investment decision, says Belvoir.

Belvoir Aberdeen’s advice for helping to decide the best location for a property investment includes:

1. Only decide on where you want to invest after thorough research.

2. Do not make a decision based on the look of the property alone. Just because it appeals to you, it will not necessarily be a good rental investment.

3. Providing tenants with a quality, well-maintained property for them to call home carries responsibilities. Only work with a local agent that you have checked out, trust and who has gained all the relevant professional industry accreditations.

4. Remember that big is not always best. A one or two-bedroom unfurnished apartment can often yield a better return than larger, four-bedroom furnished houses. It’s all down to location and the type of tenant you are targeting.

5. Overly high “yields” – or returns on an investment – can sometimes indicate hidden issues and may not necessarily lead to a good investment.

6. Beware of “buying cheap and paying dear”. If a property is located in a low-quality area it can increasingly become run down – attracting the wrong type of tenant and achieving poor long-term capital growth.

– See more at: http://www.american-apartment-owners-association.org/property-management/real-estate-investing/six-tips-help-get-right-location-property-investment/#sthash.InNiNuSQ.dpuf

Explore Smart Meters Market worth $18.2 Billion by 2019

Explore Smart Meters Market worth $18.2 Billion by 2019

BY  –

According to a new market research report “Smart Meters Market by Type (Smart Electric Meters, Smart Water Meters, Smart Gas Meters), by End User (Industrial & Commercial and Residential), & Region (Americas, Asia-Pacific, Europe & RoW) – Trends and Forecast to 2019”, defines and segments the global smart meters market with an analysis and forecast of the market size. The smart meters market is estimated to grow from an expected $11.1 billion in 2014 to $18.2 billion by 2019, at a CAGR of 10.2% from 2014 to 2019.

Browse 66 market data tables and 53 figures spread through 151 pages and in-depth TOC on “Smart Meters Market – Trends and Forecast to 2019″

For Sample Pages: http://www.marketsandmarkets.com/requestsample.asp?id=366

The implementation of smart meters will be advantageous for governments trying to achieve the objectives of emission reductions, security of energy supply, reducing carbon footprint of the country, and providing quality service to the end-user. Governments wants to accentuate the installation of smart meters as they foresee better management and efficient usage of energy, which will subsequently foster competition. For instance, some countries in Europe such as Italy, Sweden, and France have opted for rapid deployment of the technology, owing to the European Union directives for energy end-use efficiency by 2020.

Furthermore, growth in smart grid technologies will give rise to smart meters. Smart meters alone are not useful and need to be installed in conjunction with some type of a communication infrastructure to get the data back to the utility. Smart grid technologies include communication networks, advanced sensors, and monitoring devices, which form the foundation for utilities to generate and deliver power, and for consumers to understand and control their electricity consumption.

The report forecasts the market size of the global smart meters, which includes smart electric meters, smart water meters, and smart gas meters with respect to main regions such as Americas, Asia-Pacific, Europe, and RoW. The smart meters market has also been analyzed on the basis of residential, commercial, & industrial end-users. The smart meters market includes players such as Itron Inc. (U.S.), Elster Group (Germany), Landis+Gyr (Switzerland), Siemens AG (Germany), Schneider Electric SA (France), Badger Meter (U.S.), Circuator SA (Spain), EDMI (Singapore), Holley Metering Limited (China), Honeywell International Inc. (U.S.), ICSA India Limited (India), Neptune Technology Group Inc. (U.S.), and Sensus (U.S.).

Americas: Leading market for smart meters

The Americas dominated the smart meters market in 2013, followed by Asia-Pacific. Increasing demand for smart meters in North America is mainly due to government initiatives which comprise allocating funds and making the units mandatory in a number of states. AEP, PG&E, Southern California Edison, Southern Company, Florida Power & Light, and Oncor are some of the largest utility groups having committed to full-scale rollouts of smart meters to all customers. Europe stood third in terms of market size in total smart meters market, followed by RoW.

Smart electric meters: Largest type market

With technological advancements, the smart meters market is majorly dominated by smart electric meters, as these help to monitor energy usage efficiently and reduce dependence on depleting fossil fuels. Government and other legislative bodies are promoting the installation of smart electricity meters around the world.

Residential: Largest end-user market

Smart meters are mostly seen in residential applications; its installation in residential places helps to reduce CO2 emissions globally, as consumer’s inclination towards peak time energy saving would increase and the need to supplement extra energy supply at peak time by switching on fossil fuel plants (which are high CO2 emitters) reduce.

Speak to Research Expert for more info:http://www.marketsandmarkets.com/speaktoanalyst.asp?id=366

Research Methodology

This research study involves extensive usage of secondary sources, directories, and databases (such as Hoovers, Bloomberg, Businessweek, Factiva, and OneSource) to identify and collect information useful for this technical, market-oriented, and commercial aspects of smart meters. The below explain the research methodology.

  • Identification of smart meter mandates by government in different countries
  • Analysis of country-wise installed smart meters for the past three years
  • Estimation of cost of smart meters in various regions using the cost variance models
  • Secondary has been conducted to find out smart meters based on type required across different industries and the residential sector
  • Analysing market trends in various regions/ and countries supported by the on-going industrial activities, and increasing investments in power sector
  • Overall market size values are finalized by triangulation with the supply side data which include the product developments, supply chain and annual shipments of smart meters across the globe

After arriving at the overall market size the total market has been split into several segments and sub-segments. The figure below shows the break-down of the primaries on the basis of company, designation, and region, conducted during the research study.

The report caters to smart meter manufacturers, dealers, and suppliers, raw material providers, consulting companies in the energy and power sector, government and research organizations, government utility providers, private utility providers, private customers, network operators, metering companies, smart grid players, venture capital firms, and investment banks.

Scope of the Report

  • By Type
    • Smart Electric Meters
    • Smart Water Meters
    • Smart Gas Meters
  • By End User
    • Residential
    • Commercial & Industrial
  • By Region
    • Americas
    • Europe
    • APAC
    • RoW

Market share analysis, by revenue, of the top companies is also included in the report. The scope accordingly aids market participants to identify high growth markets and help managing key investment decisions. For this report, major players in the smart meters market have been identified via various primary and secondary sources, which include annual reports of top market players, interviews with key opinion leaders such as CEOs, directors, and marketing people.

Available Customizations:

With the given market data, MarketsandMarkets offers customizations as per the Company’s specific needs. The following customization options are available for the report:

Regional Analysis

Further breakdown of smart meters market into countries by end-users

Company Information

Detailed analysis and profiling of additional market players (Up-to 5)

Inquiry (Ask for Customized Report Matching Your Exact Requirement):http://www.marketsandmarkets.com/requestCustomization.asp?id=366

About MarketsandMarkets

MarketsandMarkets is world’s No. 2 firm in terms of annually published premium market research reports. Serving 1700 global fortune enterprises with more than 1200 premium studies in a year, M&M is catering to multitude of clients across 8 different industrial verticals. We specialize in consulting assignments and business research across high growth markets, cutting edge technologies and newer applications. Our 850 fulltime analyst and SMEs at MarketsandMarkets are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors.

M&M’s flagship competitive intelligence and market research platform, “RT” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets. The new included chapters on Methodology and Benchmarking presented with high quality analytical infographics in our reports gives complete visibility of how the numbers have been arrived and defend the accuracy of the numbers.

We at MarketsandMarkets are inspired to help our clients grow by providing apt business insight with our huge market intelligence repository.

Property Managers Weigh Housing Trends and Prepare Now for Change

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By  –

It’s been said that nothing is more certain than death and taxes. That may be so, but another certainty in life that needs to be added to that short list is “change”.

No, I’m not talking about the money you get back when buying an item for $7.99 and paying with a ten dollar bill. Specifically I’m referring to the ever-changing variables in the housing and mortgage markets. The big, 800 ton “Blue Whale” in the topic tank today is the demographic phenomenon of our lifetime. Those of us who were born between 1946 and 1964 are rapidly filling the ranks of senior citizens.

More than 10,000 Americans turn 65 each day, and that trend will continue for the next 15 years. Put in annual terms, there will be nearly 3.7 million more people 65 and older a year from today. Amazing! A report released at the beginning of 2016 by AARP Foundation and the Harvard Joint Center of Housing Studies found that nearly 20 million older adults live in “…unaffordable and unsafe housing.”

This unacceptable reality will be compounded by the fact that nearly 20 million seniors are paying over 30% of their income for housing, and nearly 10 million households pay more than 50%!
So, like the ancient Chinese symbol for the word “crisis”, there are two sides to this housing trend. There’s the challenge side which is self-evident, but there’s also an enormous opportunity.

For example, according to AARP and the above mentioned report, only 1% of the entire housing inventory in the U.S. has the recommended design features needed by older people. These features include the most obvious one like step-free entries, countertops at varying heights, wide doorways, faucets with levers and a shower with no curb and a handheld adjustable shower head.

The bottom line is that there is a lack of housing with the basic features that accommodate and support the aging. Plus, there’s a drastic dearth of affordable housing and services to take care of residents of all ages, incomes and abilities. As property managers with a wide range of experience, clients and connections, we can see the needs and do something about this crisis. The most logical first step is to discuss this trend with our clients.

Show them this article and use it as a talking point for planning purposes. Then speak to local leaders in government, the rental housing industry and non-profits like Habitat for Humanity. Recently I heard of a property manager who found a big church building for sale. After doing her due diligence she led a team of investors and concerned citizens who purchased it for a reasonable price. Then with financing from various government-sponsored and private organization, they rehabbed the building into 12 senior residences ideally suited for senior citizens, especially those with disabilities.

An additional incentive is that interest rates for housing loans are low and may possibly be going lower. Last week, U.S. 30-year mortgage rates finished the week at about 3.6%.

That’s almost as low as mortgage rates fell in late 2012, when they dipped to 3.3%. With international investors expected to buy more U.S. treasury bonds, especially the benchmark 10 year bond that currently yields less than 2%, mortgage rates may drop even more.

Here’s the “perfect storm”; a generational housing shortage at the same time that the cost of borrowing money to build has plunged to record lows. Find out if your area needs more affordable rental housing for seniors. Then start conversations on how to participate in the profitable solution to this epic trend.

Decades in the works, stars align for Bohannon’s Menlo Park vision

Forgive David Bohannon for taking a smidge longer than his allotted five minutes at the podium Wednesday during the ceremonial groundbreaking for Menlo Gateway, his company’s office and hotel project down the road from theFacebook campus in Menlo Park.

“I’m taking way too long, but what can I say, I’m going to continue,” Bohannon told a crowd gathered under a tent with earth moving equipment in the background.

And why shouldn’t he? The project has been in the works for a decade, enduring endless community meetings, city council and planning commission debates, a citywide referendum (it passed overwhelmingly) and — more recently — a brutal recession that chilled demand for high-end hotel development.

Now Bohannon, president and CEO of the David D. Bohannon Organization, could use a moment to take it all in and reflect.

Making that moment possible: a partnership between Ensemble Real Estate Investments and AECOM Capital to build the 250-room luxury hotel, which will be part of the Marriott Autograph Collection network of upscale boutique hotels and include a Bay Club health club. I first wrote about the hotel plan a year ago, when Bohannon announced the Ensemble involvement but before Ensemble had lined up AECOM as a capital partner. (AECOM Capital is the investment arm of the construction and infrastructure services giant; it was formed in 2013.)

The hotel deal was crucial for getting the larger Menlo Gateway project off the ground because it was baked into city requirements for building any of the office space. With the hotel now under construction, Bohannon is also starting work on the first phase of the office campus — an eight-story, 205,000-square-foot tower at the corner of Marsh Road and Highway 101. Both elements are slated for completion by the end of 2017; another 500,000 square feet of office, in two buildings, will come later.

It’s a momentous milestone for the family-run Bohannon company, which also owns Hillsdale Shopping Center in San Mateo, one of the few family-owned shopping malls in the country.

Top LEED Projects of 2015 Include Palo Alto Mitchell Park Center

Top 10 States 2015: Mitchell Park Center

by Amanda Sawit –

The 2015 Top 10 States list honors transformative efforts at the state level to create healthier, more energy- and water-efficient places to live, learn, work and play. In 2015 alone, 1,633 projects were certified in the United States—equivalent to an incredible 275 million square feet.

In this series, we spotlight the standout LEED-certified projects that contributed to the 2015 Top 10 rankings. Join us in celebrating some of the best examples of green building design, construction and operation.

#7: California

Mitchell Park Center

The Mitchell Park Library and Community Center (Mitchell Park Center) is 56,332 square feet of new construction in Palo Alto, Calif. Opened to the public in December 2014, the project was awarded LEED Platinum for New Construction in April 2015.

The 40,000-square-foot library is the newest and largest of six libraries in the Palo Alto City Library (PACL) system, built to accommodate a build-out collection of up to 140,000 print volumes. The building contains lounge and work seats, group study rooms, technology seats and dedicated children and teen spaces. The library also shares access to the 16,000-square-foot community center wing with classrooms, a large multipurpose room, activity space, early childhood recreation space and a café.

The Mitchell Park Center strives to educate the community about strategies to conserve resources, protect ecosystems and enhance the human experience while incorporating these practices into its daily operations.

The new joint-use facility replaces the previous library and community center buildings on the same site at the southeast edge of Mitchell Park. It more than triples the space of its predecessors, but the project’s footprint does not encroach on the park. Parking is shared with other recreational uses, including copious bike parking and excellent transit access, which allows for a significant reduction in dedicated library parking.

The project is designed to reduce potable water use by 44 percent today, and up to 90 percent by 2020 when the municipal reclaimed water system is extended to the site. One hundred percent of precipitation is managed onsite through extensive pervious paving, infiltration basins and green roofs that reduce the overall quantity of stormwater discharge by 85 percent.

Mitchell Park Center is designed to outperform California Title 24 energy code requirements (California’s building energy efficiency standards) by 42 percent. Strategies to reduce energy use and carbon emissions include night sky radiant cooling, roof-mounted photovoltaic panels, mixed-mode ventilation, a solar thermal system, a condensate capture system and underfloor air distribution. Additionally, onsite renewable energy strategies are designed to generate approximately 20 percent of annual building energy use.

State snapshot

California maintained its No. 7 rank in 2015. As the most populous state in the nation, it’s no surprise that the state certified the most amount of LEED space that year, with 618 projects representing 87 million square feet. San Francisco and Los Angeles both rank in the top 10 U.S. cities boasting the most amount of LEED-certified space—about 13.5 million and 12.2 million square feet, respectively. Incidentally, California cities also make up one-fourth of the top 20 U.S. cities with the most amount of LEED space.

Between 2015 and 2018, green building is projected to add $91.22 billion to California’s GDP, as well as over a million jobs and $60.59 billion in labor earnings, according to USGBC’s Green Economic Impact Study, conducted by Booz Allen Hamilton. The study also anticipates that LEED alone will account for $58.4 billion of the state’s GDP growth, with 668,000 jobs and $39.15 billion in labor earnings, as well as $2.1 billion in tax revenue.

Other standout projects include:

7 Critical Qualities for a Good Property Management Company

7 Qualities of good Property management companies

People who own a home in a Condo or HOA are homeowners, but of a slightly different variety. They depend on a good property management company. While they pay a mortgage and enjoy many of the benefits of owning a home, they give up a bit of autonomy due to the nature of condo living. A board of directors makes community decisions, assisted by a property manager who may add significant value or be a less-knowledgeable asset.

As in every industry, there are stellar property management companies and those that might not quite hit the mark. Since a property manager is so important in a condo community, it’s critical to make a good choice — or suffer the consequences.

Here are some qualities to look for during a property management company search:

  • Communication. Owners will get easily frustrated if they can’t reach the property manager in a timely fashion. While some queries may not be time-sensitive, others are more immediate in nature. Be sure your property management company has a 24/7 call center and its number, as well as an email address for the community’s property manager, is provided to all owners.
  • Responsiveness. Good communication will fall flat if it doesn’t result in timely responses. It’s one thing to be able to reach a property manager, and another to have that person jump on the matter at hand if necessary.
  • Full service. While your community will be working with a specific property manager, it’s important for that person to have support from a team that includes experts in areas like engineering, training, HR and accounting. This will be especially important if your property manager is a novice; you want to be sure he or she has access to the knowledge base of someone who is more seasoned.
  • Track record of excellence. Ask for references from any property management company you’re considering. Ideally, you want to speak with current clients from communities that are similar in size to yours as well as former clients, to learn why the relationship ended. You can tell a great deal about any company from listening to what its current and past clients say about it.
  • Vendor relationships. Maintenance and landscaping are two of the greatest line items for most condo communities, so having a property management company that can negotiate discounts or lower rates due to its strong relationships with companies providing those services can be beneficial. You never want to eliminate the competitive bidding process, but a good property management company will be able to provide expertise in weighing cost versus quality.
  • Transparency. Your property management company should operate as an open book. Since it will serve as a financial steward for your association, collecting monthly dues and any special assessments levied, it should have strong financial controls in place to eliminate fraud.
  • Standard operating procedures. The best property management companies will have proven operational procedures, developed over years of experience, in areas such as preventive maintenance, contract audits and budgeting. If it worked at another community, it should work at yours, too. There’s usually no reason to reinvent the wheel, so to speak.

 

The very best property management companies will have the knowledge and experience to help enhance the value of owners’ homes and the community’s lifestyle. In a nutshell, that’s what all condo owners want: stable or rising property values and a safe, comfortable place to call home.

Source of Picture:
http://www.eylean.com/

New To Roofing? Attempt These Alternatives for a Fine Roofing

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Not all rooftops ought to have a striking resemblance. The business sector has such a large number of choices, that you may need to reevaluate what you are proposing and consider one of these phenomenal option roofing materials. The list can go on, yet here we have the most well known roofing materials in the market.Not beyond any doubt if shingles or developed material are the best choice? Continue reading and discover what you can use on your construction project.

1. Asphalt Shingles 

An extremely famous choice among construction experts, are the asphalt shingles. Because of cheapness and simplicity of establishments, asphalt shingles can be utilized and install at ease. They are fabricated in a wide assortment of hues and work awesome on inclined rooftops, single homes and domestic applications.

To find out more about this roofing stuff visit here.

2. Built-Up Roofing 

Built-Up roofing is the most famous roofing material utilized on low-slanted roofs.Made of a few layers of bitumen surfaces, built-up roofing is done by applying a total layer or covering as the top layer. This top layer ordinarily is tar, over which the rock is laid on top. Different sorts of developed rooftops are smooth Asphalt developed (Hot or Cold), and Ballasted Asphalt built-up. Latest built-up items join an inflexible protection layer as a major aspect of the roofing material, so look at it and figure out the amount of this can cost you. The surfacing and materials utilized on built-up material are wide to the point that everything relies on upon the undertaking and expenses of your project.

To find out more about this roofing stuff visit here.

3. Solar Shingles

This is a way that can produce a few reserve funds to you too. Sun powered shingles join the concept of a sun oriented board and roofing material, giving a remarkable mix to your material needs. Sun based board consolidates the advantages of sun based force vitality with the unwavering quality of conventional rooftop shingles. Sun powered board shingles likewise can be utilized as a sturdy roofing material giving the same security from nature as you would have from general shingles.

To find out more about this roofing stuff visit here.

4. Single-Ply Roofing

Single-ply roofing is another concept that you can use for the material needs. There are two fundamental sorts of single-Ply roofing : Thermosets and Thermoplastics. They additionally display extraordinary adaptability and their impervious to UV radiation is better when looked at than different items. Two of the most normally utilized thermoplastic single-ply membranes are PVC andTPO, which are both plastic-based materials.

To find out more about this roofing stuff visit here.

5. Standing Seam Roofing

The Standing Seam material boards offer the planner the capacity to outline or determine different span rooftop profiles. This kind of metal roofing is comprised of vertical boards with two creases for every board that stand us vertically.

To find out more about this roofing stuff visit here.

6. Clay Roof Tiles

Clay tiles are sturdy and lightweight, making it perfect in specific rooftops as they will likewise convey some extra advantages to the working when all is said in done. Earth tiles offer better protecting properties when contrasted with other comparative materials, for example, artistic tiles.

Can Silicon Valley’s Big Bet On Agriculture Help Small-Scale Farmers In Developing Countries?

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by Willy Foote –

A lack of reliable information is among the most frustrating obstacles to unlocking the potential of agriculture. But as investment in AgTech heats up, what value does big data offer small-scale farmers at the end of dirt roads in the hardest-to-serve markets on earth?

These days, farms throughout the American Midwest are flooded with new technology. From self-driving tractors and drones to advanced sensors and software, farming looks much different than it did when I was growing up in Missouri. It’s all part of a trend to help farmers become more efficient, productive, and profitable — replacing the guesswork and gut instincts of farming with data and diagrams.

Just how high-tech are we talking? Imagine remote sensors sending data to a digital dashboard that shows real-time analytics on soil temperature and moisture levels; drones flying overhead capturing high-resolution thermal and visual images that show yield variation row-by-row; iPhone notifications telling you the optimal time to apply fertilizer, where it’s most needed, and its estimated effect on this season’s harvest and on your bottom line. This is 21st century precision agriculture in the United States, where one of the world’s oldest industries continues to evolve.

“Everything that a farmer once was and once thought about his business has completely transformed in the last 10 years,” said David Friedberg in a recent interview about the digitization of farms. Friedberg is the founder of the San Francisco-based Climate Corporation, which combines hyper-local weather data with agronomic models to help farmers make better informed decisions. In 2013, his company was acquired by Monsanto.
To many observers, that roughly $1 billion deal set the stage for what has since become a flurry of investment activity in the rapidly evolving and fertile field of agricultural technology, with funding rounds happening at a dizzying pace. For instance, Google Ventures recently announced investments in both Granular, a company that provides farm management software, and Farmers Business Network, an online service that allows farmers to compare the effectiveness of seeds and inputs.

 

Other well-known Silicon Valley firms like Andreessen Horowitz, Khosla Ventures, and Kleiner Perkins Caufield & Byers are also embracing AgTech start-ups and increasingly looking to the Farm Belt to find the next unicorn. According to a report released by AgFunder, an equity crowdfunding platform, a record $4.6 billion of investment flowed into AgTech ventures last year, up from $2.4 billion invested in 2014 and outpacing growth in the broader venture capital market. Meanwhile, a number of AgTech conferences and specialized consulting firms have popped up alongside accelerators and incubators, like The Yield Lab and Farm2050.

Financiers and farmers have many reasons to be so optimistic about the potential of AgTech. With the right technologies delivering the right data at the right time, farmers can optimize their use of inputs, reduce their environmental impact, and boost their productivity at a time when these efficiency gains are needed most. Estimates suggest that population growth, combined with rising incomes and changing diets, will require us to produce around 60 percent more food by 2050. Yet looming resource constraints and extreme weather events, like droughts and floods, mean that farmers must grow more with less at a time when climate change fuels uncertainty in an already risky business.

This is where producers could really reap the benefits offered by data and technology, but the AgTech movement will only be successful if these benefits extend to all the world’s farmers.

As we search for ways to feed a growing population (over 9 billion people by 2050), opportunities to support agricultural innovation in places like Kansas are just as compelling as those in, say, Kenya, where smallholder farming is the predominant form of agriculture and crop yields are a fraction of those in the United States. Improving productivity on these farms is critical to meeting future food demands.

But what value does big data provide small-scale farmers in developing countries? After all, technological solutions are not one-size-fits-all. The hardware and software used by farmers in United States — where the mean farm size is 180 hectares — are not necessarily suited for smallholder farmers in sub-Saharan Africa, where the average farm size is just 2 hectares.

One trend we’re noticing is that farmers increasingly rely on a relatively low-tech but more ubiquitous device: mobile phones. In fact, there are now nearly 700 million mobile phone accounts throughout the African continent — more than in the U.S. and Europe combined. In addition to the many mobile-based banking services, new platforms — such as Esoko, Farmerline, and MFarm – are now connecting smallholder farmers with information and advice about weather, commodity prices, and production practices.

In Nigeria, for instance, the government created an eWallet system so that it could offer input subsidies directly to farmers. In its first year alone, the program enabled 1.7 million farmers to produce an additional 8.1 million metric tons of food, according to Agnes Kalibata, president of the Alliance for a Green Revolution in Africa. These innovations weren’t born in Silicon Valley but in places closer to the farm gate, like Kenya’s Silicon Savannah.

Should you furnish your investment property?

furnished interior apartmentSince the rise of Airbnb and the increasing availability of short stay accommodation within fully serviced apartments, investors are asking the question “to furnish, or not to furnish?”

Questions such as “How much more rent will I get if I rent my property furnished? Should I include the white goods, or should I take everything with me when I leave?” are on the rise and the responses provided back to these clients are varied each time.

Yes, if a property is offered fully furnished a higher rental yield is expected. How much higher? Well, that is determined by where the property is located, what furnishings are on offer, the quality of the furniture and the overall presentation of the property. From experience, for apartments 10 per cent to 20 per cent higher returns and for houses 20 per cent to 40 per cent higher returns, over leasing a property unfurnished. However, before a landlord heads down the furnished garden path, they need to be aware of various factors that may impact their financial success should they elect to lease their property furnished.

The first factor is the tenant market. As a business development manager and leasing agent, I know there is always a tenant market seeking furnished properties. Whether a tenant is looking for fully furnished or partly furnished, there is always a tenant out there. In saying this, landlords need to recognise that the furnished market varies greatly from the unfurnished market. Vacancy rates for furnished properties can be much higher than unfurnished. Lease terms are normally expected to be shorter – to compliment a job contract, a short stay in a new city or whilst a shipping container full of their own furniture is being delivered from overseas or interstate. Yes, the landlord receives more rent for the property, however, how much will the upkeep of all the furnishings cost? Will this outweigh the extra income received? Will items have to be replaced after each tenancy ends? Will the landlord be happy paying higher management fees and charges for agents to manage furnished properties?

If you’re a landlord that has a property in the CBD of a capital city (or on the city fringe) and is offering fresh, modern and presentable furnishings with near new white goods and have the flexibility of offering of a lease between 3-12 months, then yes, I would say offering your property furnished is an avenue to consider. Although, do your sums. After six months if your tenant vacates, will you be willing to pay another leasing fee, advertising charge, inventory cost? Will you have enough funds to absorb the vacancy period? Are you still happy paying higher management fees? If the answer is no, then don’t take the risk. Especially with the onslaught of accommodation through Airbnb in capital cities around Australia, tenancy choice for furnished accommodation has never been so fruitful.

Offering lower vacancy rates, larger tenant markets and longer lease terms, renting your property unfurnished might have greater investment clout than leasing a property furnished. As with all investments, where there is risk there is the potential for gain. However, playing the unfurnished market is like buying blue chip stocks – slow and steady often wins the race.

Source: smartpropertyinvestment.com

– See more at: http://www.american-apartment-owners-association.org/property-management/real-estate-investing/furnish-investment-property/#sthash.28OqfPnT.dpuf

Provide Dream Remodels with Affordable, Style & Comfort

Bay Area Regional Energy Network

Thursday, March 24, 2016 from 12:00 PM to 1:00 PM (PDT)

Ticket Information

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Event Details

Create Comfort. Add Energy Efficiency to Your Projects.

FREE EVENT
Lunch will be provided

Lorin Fink, Home Upgrade Advisor and trainer, CLEAResult will discuss:

  • Opportunities for remodeling and specialty contractors and their clients including rebates up to $6,500
  • Steps to developing valuable options and increased credibility with your clients
  • Partnerships that can pay off

Jason Keller; Regional Sales Manager for Renew Financial will discuss:

  • PACE financing as a tool to sell a project
  • How PACE can allow your client to have it all and do their dream remodel

Questions? Email us at: tfenster@stopwaste.org

Have questions about Provide Dream Remodels with Affordable, Style & Comfort?Contact Bay Area Regional Energy Network