Before the real estate market crash of 2008, there were the prophets. They spoke of a real estate balloon that was bound to burst and take down the real estate market as well as the economy. Even with all of this prophesying, many were taken by surprise when the once lucrative real estate market began to crumble.
So, what caused the collapse? The main culprit was the subprime lending market. When this market crashed, a large amount of companies faced foreclosure. Even the companies that did not foreclose suffered losses that amounted to billions of dollars.
You may have already heard news reports about the subprime market crash. If you are like most, however, you may not know what the crash meant to individual property owners. You may even have questions regarding how we got in this situation to begin with.
Over the past few years, subprime mortgages were the biggest trend in real estate lending. Buyers who were unable to qualify for conventional mortgages could obtain financing via a subprime mortgage. People who obtained these loans often had to pay high interest rates.
Lenders obtained the money to pay for these mortgages from a variety of sources. Many companies secured loans at low interest rates and then loaned that money out to buyers at a higher rate. Some of the money was borrowed from central banks.
While the housing market remained relatively stable, the ill consequences of these loans could not be seen clearly. In fact, the market was experiencing a surge in value that was unprecedented. This surge resulted in an unrealistic expectation of the future real estate market which in turn caused lenders to put even more money into funding mortgages that new homeowners could ill afford.
In 2005 and 2006, the last real boom was occurring in the real estate market. During this time, it was extremely easy to get a loan. Lenders thought that they would be able to make money from buyers even if they did not pay for the mortgage through the high interest rates they were charging and the ever-increasing value of real estate. But when interest rates started to rise, people stopped buying homes. Additionally, homeowners started failing to make payments due to the interest rate spike.
It became harder and harder for lenders to obtain funds to invest into mortgages. Buyers, now unable to qualify for a loan easily, began to stop looking for a home to purchase. Investors became wary, and underwriters started increasing the requirements to qualify for a loan. People who had adjustable rate mortgages sought desperately to decrease their skyrocketing monthly payments. But they could not qualify for a new, fixed loan under the strict guidelines. This only caused the number of foreclosures to rise dramatically resulting in the real estate market crash of 2008
Tag-Archive for ◊ Property Owners ◊
So you have already chosen your Tampa property management, company to handle your rental homes. You might have heard a lot of advice online or from other property owners about how it is important to choose the right property manager. It is because a rental property Tampa is a good source of income. Other home owners have seen the benefits that this kind of investment has given them for years and years.
The important things to check out of some Tampa Bay property management companies are as follows:
How tenants are screened.
What methods are used when screening tenants? Are they thorough when it comes to checking credit scores, employment and past rental history?
Most Tampa property management companies have their own strategies and techniques when screening tenants. And you, as the owner, should be informed of how their process works. Do not hesitate to ask how the tenant screening is done. If you are knowledgeable about these things, you can also suggest additional strategies on how best to property screen tenants that will be occupying your Tampa house rental.
Real estate knowledge.
Do the property managers have years of experience about real estate rules and rental procedures in that area? Is the company being referred by people? How long have they been in the business?
Knowing more about the property management in Tampa and their operation is also important. You cannot just rely on what you see on their advertisement. Or take another person’s word for it. In the process of choosing the company, do some additional research on the company. Most companies have websites you can visit to check out testimonials, property listings and other factors that are relevant for your own rental property.
Does a company have a good record with collecting rent? What are the steps taken when rents are not paid on time?
This is a rental property Tampa business. What makes it successful is if the rents are paid on time and on a regular basis. Late paying tenants cannot be avoided. But it is also up to the property manager to make sure that late payments are dealt with and prevented from being an ongoing thing. This is one of their duties and it is what you are paying them for.
How are rental properties advertised? Does the company have an aggressive marketing strategy to advertise the property? How do they do about their financial report? Do they give out regular report about the status of the property? When often is maintenance being done?
These are additional things to check out of your chosen property management company in Tampa. It is not only about how tenants are picked or how rents are paid. It should also be about taking care of the property and making sure the property is marketed properly.
Once you know that your chosen Tampa property management have and know all about these things, then you know that your investment is in good hands. Now all you have to do is sit back and let them do their jobs.
For more information or for further inquiries, visit: Tampa Property Management