St. Louis has a lot going for it.

It's no surprise that the major metropolitan areas have experienced significant housing troubles. The housing prices were so high that they had a long way to fall before hitting the bottom. These high prices have been part of the reason that people have been leaving the areas. People need somewhere new to go and St. Louis is the ideal place. St Louis has a lower housing market in general, and a lower cost of living.

According to a current article, "It is a metropolitan area with a great past, and many fine civic institutions, including great parks, sports teams and a world class orchestra. This long laggard Midwestern metropolitan area may face its best competitive prospects since Chicago passed it in population in 1870. Local and state leaders need to stay away from the policies that would dilute St. Louis' principal competitive advantage, a low cost of living, due to a housing market left to operate without destructive distortion."

So what can we do in this situation? Buy houses! Warren Buffett recently said "he'd buy up 'a couple hundred thousand' single family homes if it were practical to do so. If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks.  He advises buyers to take out a 30-year mortgage and refinance if rates go down."

If you are able to invest in real estate, now is the time. Contact us if you need a good property management company with fair terms and reasonable people.  We are ready to help.

More good news about the housing market

There is good news on the housing front. According to an article on STLToday.com, fewer homeowners are facing possible foreclosure.

Jay Brinkman, the mortgage bankers' chief economist, said "employment is the key driver of mortgage performance" and noted that the number of delinquent mortgage payments is falling faster than the nation's unemployment rate. Higher unemployment typically leads to more missed payments and a greater number of foreclosures over time.

 As foreclosures slow down, there are still a lot of homes on the market. The time to invest is now. If you are looking to start investing in real estate, contact us to see how we can help. We are ready to become your property management company.

Importance of home inspection

A home inspection is important whether the house you are buying is for your family or for an investment property. An inspection performed by an experienced inspector can highlight problems that may make a great deal into a not-so-great deal. A lot of homes, especially foreclosures, are being sold in as-is condition, but that doesn't mean you shouldn't have an inspection done anyway. The seller will not make any repairs, but the home's price may be renegotiated or you may realize that the repairs are not in your budget. Either way, knowledge is power. There are several areas you should check yourself or ask your inspector to check for you. For more information on inspections, check out this article.

Primary system shutoffs are an important safety component for any house. Water, natural gas or propane, and electrical shutoffs should all be easily located by either you or your inspector. If there seems to be a problem with shutoffs that are owned or maintained by a utility, that utility should be contacted for repair as soon as the house is purchased to protect the investment.

The inspector should be willing and able to climb the roof for an inspection. He or she should inspect both the condition of the shingles and any outlets on the roof. The insurance company will inspect the roof anyway after purchase, and any repairs or replacements will need to be made before insurance will be underwritten. Knowing of any possible problems ahead of time will allow you to be prepared for needed repairs.

If the home is in poor condition and needs renovation including drywall, ceiling, or flooring replacements, you should check the underlying condition of the walls and floors. Stains and damage to the carpet can seep through to the underlying pad and sometimes the subfloor, leading to more intensive repairs to remove any lingering odor or potential problems. If there is a drop ceiling, you should remove tiles in several places to examine what is hiding underneath.

Provident Property Management is committed to helping you get your investment properties rented. We will work with you to improve your property in any way necessary to secure quality long-term tenants. Please contact us for more information on how we can help you with your investment properties.

Down for the count

Sorry for the lack of postings lately. Our entire household/company has been hit by a bug. We will resume our regularly scheduled posts when everyone has recuperated. Thanks for your patience!

What can Provident do for an investor?

We've talked before about what services Provident offers for Real Estate Agents, but what about for investors? For the purposes of this article, I'll define an investor as someone looking to buy houses purely to use for rental income. These people may already own one or several homes, or just be starting out and are ready to purchase their first rental property.

While Alann is a licensed real estate agent, as required by MO law in order to manage properties owned by someone else, selling real estate is not his business. He does not list properties for sale or pursue clients looking to buy properties for owner-occupant reasons. However, if an investor is looking or a one-stop shop and wanting someone to find their rental properties, represent them as a real estate agent during the purchasing process, and then manage those properties, he is open for business.

So let's break it down. Let's say you have some money saved and want to invest in real estate. You know what a great job Provident Management does with managing rental properties and contact Alann. First, Alann will help you define your expectations for the rental property- location, budget, projected return on investment, etc. Then he will search for available properties that meet those criteria. He will then take you to visit those properties and discuss any possible repairs that may need to be done. When you pick a house you like, he will manage the paperwork required to purchase the house, acting as your real estate agent and thus collecting a commission off the sale. After the house is purchased, he will coordinate any necessary repairs to make the house ready for a tenant. When the house is ready, he will list it and find an acceptable tenant, using all of his screening parameters including credit check. Once the house is rented, he will collect rent, deal with any issues with the tenant, address maintenance issues, and cut you a check at the end of the month for your profit off the rental income. Investing in real estate is sometimes overwhelming and difficult to understand. Alann can help you understand the process and help you view properties with the experienced eyes of someone who understands rentals.

Of course, if you are an investor or troubled homeowner who just wants an awesome property manager, Provident is always ready to manage your properties. So no matter your situation, contact us today for more information about how we can help you earn more money.

Guest Post from Tony Collins

For the week of January 30, 2012 – Vol. 10, Issue 5


"INFO THAT HITS US WHERE WE LIVE...Getting ready for a recovery could be the theme of last week's housing reports. Pending Home Sales, after hitting a 19-month high in November, dipped a bit for December, yet came in 5.6% above where they were a year ago. The National Association of Realtors chief economist observed, "Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period."

Thursday saw December New Home Sales drop 2.2%, to a lower-than-expected 307,000 annual rate. Yet sales remain in the narrow range they've occupied since May 2010. And the best news was that new home inventories dropped to 157,000, the lowest level on record, since 1963. Unsold new homes under construction and unsold completed new homes are at or near record lows. Experts say this is what's needed to get ready for a sustained housing recovery. Finally, the FHFA price index for homes bought with conforming mortgages was UP 1% in November."
 ------------------------

When dealing with your home financing, I not only work with one of your largest personal financial investments; I also handle one of your biggest dreams. As your mortgage planning specialist, I will give you my best consistently. My team specializes in renovation financing both for the purchasing of a home or for renovating a home you already own. In fact, Renovation Loans are all we do. Renovation loans allow you to purchase or refinance and renovate the home in one seamless transaction.

With over 13 years experience working with only Renovation Loans you can trust myself and the rest of the St Louis Renovation Team to help guide you from application to project completion. 

Tony Collins
Renovation Specialist
Office: 314-288-2462
Office: 866-997-0358
 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~

A word from Provident: The housing market is getting ready to rebound. If you are looking to invest in real estate, now would be the time to start. If being a landlord isn't for you, contact us. We are ready to manage your units professionally and competently.

Staging a home can help secure renters

Most home sellers these days have at least heard of staging. It's the process whereby homeowners clean up their homes and make them more appealing to potential buyers. But why talk about staging a home on a blog for a Property Management Company? Well, if an owner is having a hard time securing tenants for a home, staging may be the answer.

Staging has several areas of focus. To start, highlight key features. If the home has a nice fireplace or built-in bookshelves, capitalize on those features. Staging doesn't have to include the entire home. The owner can decorate just enough to draw attention to the key features of the home. Placing a few items in a built-in bookcase can highlight how much storage space a tenant would have for their own items. Accessories can also help highlight a fireplace. Try hanging a mirror or painting over the fireplace to draw attention, or paint the wall an accent color.

Another focus in staging is clearing the space and emphasizing how large the space is. By removing clutter and unnecessary furniture, the space appears larger and more inviting to the tenant. Some may be tempted to fully empty the home, thinking it will be most inviting that way. However, if the home has any unusual design features or oddly shaped rooms, potential tenants may have a hard time imagining their belongings in the space. By suggesting a layout with carefully chosen pieces of furniture, the owner can highlight the potential use of the space for the tenant.

An important aspect in most homes is the kitchen. Despite the size of the kitchen, emphasizing the layout is crucial to seal the deal. Counters should be cleared, but a carefully chosen accessory or two will help draw attention to the size also. Highlighting a center island or adding one with a portable counter can increase interest in the home. A clean kitchen is also a more inviting kitchen, so focusing on cleaning the kitchen thoroughly will also help.

These tips work for both home sellers and investors looking to rent their homes. While we don't offer staging services to our owners, Provident Management Company does offer many services and features that set us apart from the rest. We want to be your management company, and we will do all we can to secure tenants for your units. Contact us for more information.

Demolition in St. Louis

St. Louis has a lot of history contained in the architecture around town. Due to age and condition, some older buildings need to be demolished if they are unsafe or cannot be made safe. Such was the case for the Avalon Theater in the 14th Ward. It was an old one-screen movie theater from the Great Depression era.

But luckily, some people can and are willing to renovate in order to stabilize the building and preserve it for future generations. An 1880s house in Kirkwood is being raised on lifts so that a new foundation and basement can be installed to improve the building. It's worth clicking through to see the pictures of the house way up in the air on steel beams.

It's encouraging to know that even when it may be easier to raze a building, some of them are being preserved for the future. If you are interested in investing in a building that may need some renovation, our sister company Provident Development Group can help. Contact us for more information. And as always, we are ready to manage your income properties.

Choosing a good community for you

Everyone has a different ideal for their neighborhood. Even the ideal for a single person can change over time as priorities change. So what are some general areas to consider when looking for somewhere new to live?

1) Education. Whether it's your own education or your children, looking at the education opportunities that are available in an area is very important. It's easier for college students to live near campus and young families generally want a healthy school district with a good reputation.

2) Crime. Crime is an unfortunate fact of life, but some areas are safer than others. By researching crime rates in the area ahead of time, you will know better what to expect when you live there. Feeling safe in your home is an important part of feeling healthy and happy in general.

3) Amenities. Everyone has a different idea of what they want surrounding their home. For some, lots of parks and playgrounds are important. For others, it may be proximity to a certain type of shopping or job. Make a list of amenities you want for your neighborhood so you can compare neighborhoods easily during your research.

Provident Property Management is here to help. We are accepting new clients in all areas of St. Louis, with specific interest in the St. Charles/ St. Peters area. We want to help people find rental homes in quality neighborhoods, and to do that we need a good inventory of units to rent. Please contact us today so we can be your management team!

Bulk foreclosure sales possible

There's a new idea afoot in Washington: sell bulk lots of foreclosed homes to investors to create rentals. It's an interesting idea. There are a LOT of foreclosed homes that are currently just sitting on the market. There aren't enough individual buyers out there to purchase all these homes. There is definitely a market for rental properties though. All the owners losing their homes need somewhere to live.

One of the more interesting sections in the article is when the author discusses why more investors aren't purchasing homes. To quote:

"I think there is a fair amount of money in the wings waiting to buy, investors doing cash raises to buy properties on a large scale," says Laurie Goodman of Amherst Securities. "But that means they have to build out a rental organization; it means they build out a management company because if you're accumulating a hundred homes in Dallas that's very different than running a multi-family building."
A number of institutional investors have shown appetite and interest in bulk REO deals, according to officials, but the plan has to incorporate ways to help facilitate financing. That has been one of the biggest roadblocks to deals already in the works between hedge funds and the major banks. Sources close to these private bank negotiations say there is plenty of cash to buy properties, but building out a management structure for the rentals is pricey, and some investors are finding the math doesn't add up to make it worth their while."

What's that you say? Investors will need a management company if they suddenly acquire multiple homes. Provident Property Management is here to help. We can manage your properties whether you own one or one hundred.  Peruse our pricing structure, then contact us for more information!

Beat the winter blues with upbeat decor

Winter can be a real bummer. Especially here in the St. Louis area, the skies are overcast and grey several days a week. When the snow and ice start falling, so do the moods of those around us. A little redecorating can go a long way to beating these winter blahs. It doesn't have to be expensive or elaborate, just a slight modification can work wonders on your mood.

Start by picking something you see every day that just doesn't do it for you. Maybe it's the front door, or the place that collects all the incoming mail and paperwork. On a slightly warmer and sunnier day, wash that door, polish the door knobs, and put out a new welcome mat. Or figure out a new mail collection system. The internet abounds with paper organization ideas. Find one that you like and try it.

If one room always feels darker than the others, find a new lamp for it or some new art for the walls. Thrift stores are often overstocked now from people reducing clutter after the holidays. Maybe a new houseplant will help liven things up, as well as clean the air. A new duvet cover for the bedroom or new throw pillows for the couch can also bring a bright pop of color in and lighten the mood.

Overall, just figure out what makes you happy and try to decorate in that style. When you are happier with your home, you will be happier with your life. 

Here at Provident, we are doing our best not to let winter get us down. We are currently looking for new clients to add to our rosters. Please contact us if you are looking for a new property management company. Our prices are right; our people are friendly and easy to work with. We are a full-service company committed to helping you reach your rental unit goals.

Real Estate Market News: Home prices down

It's not great news if you are trying to sell a home, but it's wonderful news if you are looking to buy. According to the St Louis Post Dispatch, home prices in St. Louis have fallen again.

"Prices in November were down 4.7 percent from a year earlier, the firm reported today. That followed a 3.8 percent year-over-year decline for October.
Sale prices tend to vary by season, CoreLogic says, so the firm uses year-over-year comparisons to track trends.
The trend looks less negative when distress sales are excluded. Sales prices for non-distressed properties were down 2.3 percent in November and 2.1 percent in October.
Nationally, all home prices were down 4.3 percent in November and 3.7 percent in October."

Now is a great time to become a real estate investor. If you know anything about how to become rich, you know that passive income is a great way to diversify your income stream without requiring much work on your part. A passive income is anything that pays you money without a daily input from you. A blog may require a lot of effort, but the ads on the side generate revenue without work. A rental unit works in much the same way. You buy the home and pay the mortgage, but the renter pays you the mortgage back and hopefully more on top. By securing the help of a top-notch property management team, owning a single or multiple rental units becomes even easier. The property management team will secure new tenants, deal with maintenance issues, and cut you a check at the end of the month. Sound like a sweet deal? Contact us today so we can help you. We want to be your property management team!

Being a good neighbor

Whether you are renting or own a home, being a good neighbor is an important part of bolstering the community. Unfortunately, people who rent their homes are sometimes seen as lower class than people who own their homes, regardless of the reason they choose to rent. As a tenant, being a good neighbor goes a long way to dispelling any prejudices the surrounding neighborhood may feel towards a home being a rental unit, rather than owner-occupied. The following tips are applicable to both apartment dwellers and single-family renters.

One way to be a good tenant is to respect the terms of the lease. A lease should spell out clearly what the tenant's responsibilities are towards the unit. Parking, smoking, and pets are often covered in the terms of the lease. By respecting the terms in an apartment setting, the tenant shows respect for those who live in the complex with them. Smoking in one apartment often leads to the surrounding apartments smelling of smoke as well. Tenants protect themselves and their security deposits by respecting the terms, but they also protect those around them that may specifically need smoke-free or pet-free areas for health reasons. In a detached rental home, respecting the terms of the lease are less important for having good relations with the neighbors, but just as important for protecting the security deposit.

A tenant who respects the terms of their lease is also better able to create a friendly atmosphere with their neighbors. To create a friendly atmosphere, it is important to say hello and smile when greeting neighbors. It is also important to respect general policies such as noise control. In an apartment building, noises can carry to other apartments or from the common areas, creating tension among neighbors. In a detached home, playing loud music at midnight is likely to earn you a visit from the local police department. Having had a neighbor with a garage band, I can tell you from experience that neighbors only take kindly to listening to your band for so many nights in a row. We don't have to be best friends with all of our neighbors, but a kind word and a smile can go a long way to easing tensions that might otherwise erupt when people live near each other.

A third way to be a good tenant and a good neighbor is to pay attention to what's going on around you. Keep an eye out for your neighbors. We had one neighbor who was away from his home for an extended period. We kept an eye on the property for them. One day, a car showed up. It didn't move for days. We called the police. The car was stolen and would have continued to sit in our neighbor's driveway if we had not called the police. We had neighbors who would escort our dogs back to the yard when they occasionally went for unsupervised walks. We had other neighbors who would bring treats over for holidays or just because. All these actions led to a sense of belonging and acceptance in our neighborhood.

Being a good neighbor, whether the tenant or the owner, is important. A strong community leads to a stronger society in general. Society seems to need all the help it can get these days. Provident is committed to being a good neighbor. We hope that our tenants are good neighbors and do all we can to ensure that they are. As a property management company, we want to improve the neighborhoods our units are located in. We want to be your property management company. Please contact us today.

Bolstering community pride by stopping vandalism

Today's news article doesn't have much to do with real estate investment or tenant-landlord relationships, but it does have to do with something else we are interested in: community pride. The article is about St. Louis area brick being stolen from abandoned houses. The brick is prized for its rich color due to the natural color of the soil in the area. Unfortunately, the thieves are leaving dangerous shells of buildings behind that can collapse at any minute.

Community pride is important. When we are proud of where we live, we take care of it. We care for our neighbors and those around us. We care for the buildings and the streets and the green spaces. We want what's best for the area. These thefts are seriously damaging the communities they occur in. The pieces left behind are unstable and ugly. The city officials are left with the task of safely demolishing the rest of the building, and the list of buildings to demolish just gets longer. Luckily, there is a plan being discussed that will hopefully stop or deter the thieves.

If you own a vacant house, don't just let it sit and gather dust, or become a potential target for vandals or thieves. Provident wants to be your property management company. We can fix any cosmetic problems and minor structure issues and then find a tenant for your units. If there are larger problems, our sister company Provident Development Group has the experience and resources to correct them. Please contact us today so we can talk about how to help you make money.

New Year's Goals for your home

New Year's Eve is a time of renewal for most people. Lots of people make New Year's Resolutions, which generally fail within days. But it's also a great time to make realistic goals for the year ahead. Aside from personal goals to lose weight or make healthy improvements in your life, consider making some goals for improving your home.

One good place to start is removing clutter. Most people have at least one area of their home that gathers clutter. A good goal for the New Year is to work on removing clutter. Set a realistic goal to clear one surface a week or one room a month. Having clear spaces and clear surfaces makes it easier to keep the home clean. A cleaner home is healthier for all who live there.

Once the clutter is under control and the home is kept cleaner, maintenance issues can be addressed easier. Set a goal to address maintenance issues promptly. Set a realistic time frame based on your personal schedule that will be your goal for addressing maintenance issues. Whether it's to change the furnace filters monthly or fix that squeaky door within 2 months, setting realistic goals will help you keep the house maintained. A well maintained home holds it's resale value and is generally more pleasant to be in.

A third area that you can consider setting goals in is energy efficiency. I heard all the time growing up "turn the lights off!" and "close the door! We aren't cooling the outside!" At the time, it was annoying, but the habit stuck, and I find myself teaching these habits to my kids as well. We can practice energy efficiency without spending money simply by following common sense tactics. Turn the lights and electronics off when you leave a room; set the thermostat a few degrees cooler in winter or warmer in summer; and keep the doors and windows closed when using the HVAC systems. These habits not only save energy, they save money.

Here at Provident, we are committed to helping landlords and tenants set and keep realistic goals. We can't turn the lights off for you or clear your clutter, but we can maintain your unit in a timely fashion. We are committed to using earth and wallet friendly practices whenever possible. You can be sure we won't be wasting your money. We want to be your management team, so please contact us today.

Why improve your credit score?

Ahh that wonderful FICO score. It follows us everywhere and it only seems to become more important as time passes. Potential employers, landlords, and of course banks all want to know your score. If you have less than great credit, the credit repair companies may sound like a good deal. They promise to improve your credit score for a sometimes outrageous fee. The really crazy part- you can do it all by yourself! But why bother? Having a higher FICO score means that you get better deals on loans sure, but it also makes you look better in the eyes of landlords and potential employers. While neither can discriminate on the basis of race, sex, religion etc., you can be disqualified from a job or a potential housing situation if your credit isn't good. So how do you fix it?

The easiest way to improve your credit score is to pay your bills on time. Depending on your lending institution, they may not report a late payment every now and then, but if you are chronically late on your obligations, they can and will put it on your credit report. Those little dings add up. If you are late on several bills a month, your score can go down significantly. Utilities, credit cards, and car loans can all report late payments.

The second easiest thing to do is check your credit history. The safest way to do it is to go to www.annualcreditreport.com. You can request a report from all three major credit reporting companies. These reports are FREE once a year from each company. You can certainly pull all three at the same time, but savvy consumers pull them every 4 months from one company in a rotating fashion. This way you can check your credit more often. You do NOT have to pay for these reports. If you want to know your specific score, you will have to pay for that, but it really is not necessary unless you are expecting a big financial hurdle like trying to get a mortgage. If you pull your free report and find no negative marks, you are probably in pretty good standing. You can dispute any negative marks that you believe are incorrect or older than 7 years. Most negative items should be removed automatically as time passes, but they aren't always. Also, sometimes institutions report items inaccurately. A bank may state that your account was closed for delinquency, when you closed it yourself. That item may hurt your credit score and disputing it may get it off your record or at least changed so it doesn't reflect negatively anymore.

One of the hardest things to do in this economy is also the best for your credit score- pay down your debts. If you have outstanding revolving accounts- credit cards, store accounts, accounts that accept a monthly payment- you should work to pay those off as quickly as possible. Keeping an empty credit card will increase your usage ratio- how much debt you have versus how much you could have- which will up your score.
These are just three ways to increase your score easily and for free. There are lots of other tips out there. You can check out this article for more information.

It's important for potential tenants and clients alike to know that we run credit checks and call references for potential tenants at Provident Property Management. We believe this helps protect our clients and their assets, as well as other tenants in a multi-unit dwelling. If your current management company doesn't offer these services, ask them why. Then call us so we can help you!

Merry Christmas!

We want to wish everyone a Merry Christmas! We hope you all have wonderful holidays, filled with family and friends.