5 Updates Landlords Shouldn’t Make

Marble countertops, shiny tiled floors, and a brand-new patio: while they might be pretty, upgrades like these won’t help your bottom line. If you plan to invest and maintain a profitable rental property, you’ll need to strike a balance between updating the space and minding your budget.  By creating an appealing setting, you can make more of a profit by increasing the rent – however, if you stray from updates to full-scale renovation, you might end up dealing with a property that costs more than it earns. Here are a few renovations that investors shouldn’t make on a rental property.

1. Adding a Swimming Pool

A pool may seem like an ideal addition to the backyard, but it won’t necessarily increase the value of the home. The feature can also take away space in the backyard for pets or children to play in on the property and make it seem unattractive to families who lack the time or resources to maintain it.

2. Room Addition

According to loans.usnews.com, room additions don’t always pay off due to the high cost of the construction. Projects with a lower price tag – such as appliance updates and repainting – tend to have a better ROI for landlords.

3. DIY Projects

From painting the walls to installing new sinks, DIY projects are cost-effective at a price; while they may seem cheap at the outset, they often look they were performed by someone who had a lack of experience and ultimately turn away would-be tenants. It’s necessary to leave the work to professionals to ensure that your money is an investment that pays off and attracts more tenants in the coming years.

4. High-Maintenance Landscapes

According to Time Magazine, creating a beautiful garden benefits the aesthetics of a home – but it doesn’t justify increasing the rent that you charge. It can also require a significant amount of money for landscaping services to upkeep the property or the tenants may not want to spend their weekends pulling weeds and watering different areas of the yard. Stick to landscaping that is easy to maintain to ensure that you don’t waste your money if you’re renting out the house.

5. Upgrading Everything

Many landlords make the mistake of upgrading everything and assuming that the home needs to have all new features or materials to attract good tenants. Overspending on upgrades can make the house appear too chic and regal for the local area, making it necessary to keep the upgrades to a minimum. Stick to adding new fixtures on the cabinets or new hardwood floors in the living room to make upgrades that are minimal, yet aesthetically effective.

Jason Cohen is a real estate investor and broker working in Pittsburgh, PA who has built his career around turning dilapidated properties into profitable rentals. As a veteran operative in the field, Jason is well-equipped to discuss the do’s and don’ts of property rehabilitation – and here, he points out a few renovations that investors shouldn’t make when they begin to prepare a home for future tenants. 

Originally posted on JasonCohenPittsburgh.net

How to Find a Great Real Estate Agent

Jason Cohen is the founder and president of Jason Cohen Pittsburgh, an informal real estate group which provides constructive advice to professionals considering property investments. Given his near-constant interpersonal work with other professionals in the field, Jason is well-equipped to offer guidance on the process of finding a competent real estate agent. Here, Cohen offers his thoughts.

What separates a great real estate agent from an ineffective one? In a social-media landscape where every realtor’s promotions are glossy and attractive, it can be hard for regular buyers and

sellers to discern whether the agents they research are actually the capable, honest professionals they appear to be online. However, there are some steps that real estate hopefuls can take to ensure a successful professional relationship before officially signing on with an agent. The following tips are brought to you by Jason Cohen, the president and founder of the informal real estate advising group, Jason Cohen Pittsburgh – consider observing them prior to committing to a real estate professional!

Check Qualifications
Every buyer and seller needs to make sure that the agent they hire is equipped to manage their needs. It’s especially important to find a professional affiliated with the National Association of Realtors – you can determine this by checking to see if the agent notes their title with a capital “R.” Those in the NAR pledge to follow a code of ethics, and will be held accountable for any professional wrongdoing in the field. This code protects clients from potentially troublesome action on the part of the agent. Clients should also check to make sure that the agent specializes in handling cases like theirs. For instance, an individual looking to buy a house should search for a realtor with an ABR certification: These professionals are Accredited Buyer’s Representatives, and have completed additional courses for representing buyers in transactions.

Review Agent Records

Clients should also direct their research towards answering a few basic questions: How long has the agent been in business? Are their current listings similar to yours? Does the agent have any marks on their record? While the first two can be answered through an online search or direct conversation with the agent, the last question should be directed towards the applicable state regulatory body, which will have a record of any concerns or complaints.

Reach Out to Previous Clients

Don’t be afraid to ask a potential agent for a list of former clients! Reaching out to previous home buyers and/or sellers will help you better understand the agent’s skill set, capabilities, and professionalism. Make sure to ask for details; how long was the client’s home on the market? How much did it sell for? Was the agent friendly and helpful, or were they professionally challenging? All of these questions will help you come to a decision when choosing a professional to represent your real estate interests.

For more helpful advice and intriguing articles, please visit Jason Cohen Pittsburgh’s blog at JasonCohenPittsburgh.org.

Handy Tips for First-Time Landlords

Jason Cohen has been an active investor within the Pittsburgh real estate community for nearly a decade. While he began his industry efforts by purchasing and renovating cheap residential buildings in high-potential neighborhoods, he has since expanded his investments to large-scale commercial and residential properties in vibrant neighborhoods. Here, Jason Cohen provides a few tips to new landlords.  

You’ve finally done it. You’ve purchased the building, touched up the paint, laid the carpet, and put your first investment property up for rent. But as the inquiries come in, you realize that the easy part is over – now, you have to deal effectively with your tenants. Jason Cohen Pittsburgh is an advising group operating in the city; as such, its veteran members have heard their fair share of first-time rental horror stories. It’s common for a first-time investor to be so caught up in the buy and the renovation process that they find themselves at a loss when they need to communicate professionally with the people living in their units. Unfortunately for landlords, the work doesn’t end when the contractors leave. Below, Jason Cohen, head of Jason Cohen Pittsburgh lists a few tips for aspiring landlords to take note of before opening their doors to tenants.

Be Assertive

Everyone has an off month now and again. Sometimes, a tenant can’t make a payment on the day it comes due – and in some cases, that’s okay. Landlords should be empathetic and understanding if a tenant faces tragedy or finds himself in a temporary financial crunch, so long as the tenant communicates the situation. If, however, the tenant chooses to go dark and refuse to pay the agreed-upon rental sum, landlords need to act assertively. You need the rent they owe you to keep up the building and make a profit. Being overly understanding to an elusive or underpaying tenant will only result in your missing needed funds. Be assertive! Don’t be afraid of pursuing a delinquent tenant for the money they owe you.

Check Credit and References

Never rent to someone who doesn’t have a job or has a credit score of under 600. Those without the means to pay rent or a history of regular repayment will inevitably leave you waiting for payments that may never come. Screen your potential tenants closely to ensure that they will be responsible, reliable occupants who will care for your unit and pay on time.

Make Smart Renovations

Don’t install marble countertops if your unit is in a low-income neighborhood. In all likelihood, those that inquire about your unit will be looking to pay a rent in line with those offered in nearby homes; if you try to cover a fancy renovation by asking a significantly higher rent, your prospective tenants will walk. Be smart, and don’t risk renovations that offer little return!

Be Organized

Organization is key to any successful business venture. After all, how will you know you made a profit if you have no documentation of the fact? Ensure your success by keeping organized and detailed records!

For more tips, advice, and real estate content, please visit Jason’s site at JasonCohenPittsburgh.org.

Choosing a Neighborhood in Pittsburgh, PA

Jason Cohen has lived and worked as a real estate professional in Pittsburgh for over a decade. Over the course of his time in the city, Jason Cohen founded the informal real estate advising group, Jason Cohen Pittsburgh, which serves as a forum for investors seeking advice on their Pittsburgh-based ventures.  In this post, Jason uses his familiarity with the region to offer insights into a few prominent Pittsburgh neighborhoods.

A neighborhood is more than a collection of similar houses along a street. It's a community; a place with a culture and quirkiness of all its own. Those who hop from place to place in search of a house or apartment aren't just looking for four walls and roof, but for a place they feel resonates with their own personality and practical needs. As a vibrant and ever-shifting city, Pittsburgh has a little something to offer every person who sets down roots within its limits. Jason Cohen, founder of real estate advising group Jason Cohen Pittsburgh, has owned and operated properties in all of the neighborhoods listed below. All are wonderful in their own, unique ways - and all are worth considering as communities to call home!

South Side

Median home value: $109,000

While united under the “South Side” moniker, this region is technically two neighborhoods, the Southside Flats and the Southside Slopes. Both are excellent places for working professionals to settle, given the region’s excellent public transportation system and its proximity to the city’s Business District. With its many restaurants and nightlife offerings, the area also offers plenty of opportunities for post-work pursuits.

Oakland

Median home value: $155,000

If Pittsburgh needed to point out its intellectual center, it would have to indicate Oakland. Home to prestigious hospitals, universities, museums, and international cultural offerings, Oakland is the perfect home space for students, medical professionals, and academics alike. The area also boasts the Carnegie Museums of Art and Natural History.

Mount Lebanon

Median home value: $262,700

Technically a suburb of Pittsburgh, Mount Lebanon is a suburban township in Allegheny County, PA. Young families should seriously consider setting down roots in the area, given that the district is nationally-recognized for its school and has been awarded National Blue Ribbon School awards on multiple occasions. It’s a lively, vital area - perfect for families looking to grow!

Regent Square

Median home value: $264,000

For recent college grads kicking off their professional careers, Regent Square is the place to be. Ranked #1 by Niche as the Best Places for Millennials in Pittsburgh, the Square offers a multitude of subdivided homes and diverse entertainment options at a reasonable price.

Shadyside

Median Home Value: $334,900

Well-connected and close to the University of Pittsburgh, Shadyside is perfect for university students. The area boasts a wide selection of apartment listings and is home to a number of boutiques, shops, galleries, and nightlife offerings. An ever-changing and vibrant area, Shadyside is perfect for residents who enjoy living in upbeat, vital communities.

*Originally posted on JasonCohenPittsburgh.net