We are very excited this month to announce that MilitaryByOwner Advertising, Inc. is releasing a new relocation blog that can be accessed from the front end of our website. It is our intent, through this blog, to add value to our site that will benefit our customers during their time of transition. Please be sure to visit our blog for informative real estate related articles as well as tutorial screencasts.

As always, we love to hear from our customers, so please feel free to comment on, or share any of the posts on our blog. If you have been successful advertising your "For Sale by Owner" home with us, we would love to hear from you. Better yet, we would love to have you submit a short video testimonial that we can share with others who can benefit from your experience. If you are interested in submitting a video, please email me for details. 

As many of you await your orders, we know that this can be an anxious time for our military members and their families. We are available to help you with your advertising needs through our live chat (9:00 am - 9:00 pm EDT), email and regular office hours (M-F 9:00 am - 5:00 pm EDT).  Remember to find us on Facebook and Twitter for updates and information. If you are currently advertising your home with us, be sure to also post a link to your ad on our Facebook page for added exposure.

Are you contemplating becoming your own property manager for this first time? If so, please be sure to read our Real Estate Corner article for tips on how to make this adventure successful. 

April is Month of the Military Child and as military members with children know, military "brats" make amazing sacrifices all their own!  Read our Military Life segment for information on this well deserved recognition and keep your eye out for special events in your area as well. If you live near MacDill AFB or MCB Quantico, check out our blogs for current events in those areas.   

If you have a business that you feel would benefit our military families, we have a number of ways for you to showcase your services in both our newsletter and on our website.    

MBO News

MilitaryByOwner News and Tips  

 

As the weather warms, military orders come through and plans are defined, you may be toying with the idea of hosting an open house.  I have heard some say that an open house is just an invitation for the nosy neighbors.  Well, statistics show that over 50% of homes are bought by friends and relatives of people who already live or work in the neighborhood.  

Be sure to include your open house information in your MilitaryByOwner home ad.  Log into your account, go to edit ad.  The open house information is located on the second page of your ad.  Include the date, time and other pertinent information.  Viewers can and do search for available open houses while house hunting! 

 Here are a few tips to remember:

• Prior Planning
• Weekends are best and typically Sundays. Be careful not to conflict with the big football game. 

• Stage your home
• Make Room- Clear counters and floors of excess items
• Make beds
• Turn lights on
• Nothing is better than walking into a good smelling home; bake cookies, light candles, etc.
• Hire a professional home stager if you like.  
•  Open House Day
• Have a guest book with name, address, email and phone number of guests. 
• Have flyers ready and make sure everyone gets one
• Have empty contracts ready.  We have a wonderful site,US Legal Forms that have state specific forms. 
• Purchase open house signs and balloons directing viewers to your home. 
• Have family and friends on hand to help.  Have someone available on each floor of your home to answer questions.

Contact me with your Home or Business advertising questions at:

Sharon Gran  

  

Becoming Your Own Property Manager      

By Monica Schaefer

MilitaryByOwner Advertising, Inc.

As any military family can attest, a Permanent Change of Station (PCS) move is laden with tough decisions. If you happen to be a military family that has a mortgage with your name on it, this type of transition can come with a lot of anxiety. To sell or not to sell, that is the question. Holding onto your property during this depressed real estate market may be a desired choice, until you realize that this will entail you having to become a landlord.

There is a litany of things to consider when you embark on this adventure, and it is worth doing your research and due diligence in order to avoid many of the common pitfalls that can bestow landlords.

Taking the time to research your tenants and secure a legally binding lease agreement is paramount to your success. There will always be an element of chance when you choose to rent out your home, but hopefully the following information will help guide you along the way.

While there are many aspects of renting out your home that will happen simultaneously, there needs to be a starting point. Consulting the Federal Fair Housing Act and the State Fair Housing Laws for the stringent guidelines regarding rental practices is something that every landlord should take the time to review. You certainly want to keep the law in mind as you make your way through the process.

It is important to think ahead a bit when you are determining the terms of your desired lease agreement. What length of lease agreement are you willing to offer? Is there the opportunity for your tenants to renew after the initial lease expires? Will the rent include utilities, yard or pool care? What is your pet policy? What are your required security deposits and smoking policy? What date will your home be available?

Setting the proper rental amount is an important facet that requires thought and research.  Several aspects come into play when making this decision to include the amount of mortgage payment, the existence of homeowner association fees, and the requirement for contracted maintenance. Research and common sense prevail in this department. Everyone is emotional about their home and the tendency is to believe that their home is worth more than what current market trends dictate. Take the time to look at homes for rent in your area and compare them to what you are offering. This will give you a reasonable idea of what your home can command. 

Finding prospective tenants is where the magic happens. Marketing your home effectively may afford you the opportunity to screen multiple prospective tenants. With the widespread use of the internet and social marketing media, it is easy to market your home in a variety of creative ways. Of course, your first choice for advertising should be with MilitaryByOwner.com. However, we always advise our customers to market their home in a variety of different ways. Consider other advertising websites, social network sites, and an ad at your local housing office. Spread the word within your current unit and to your family and friends. Include details about what you are included in rent (utilities, yard care, pool), local school information, and community highlights. Be sure to include photos of your home, as ads with photos on MilitaryByOwner.com are viewed 60% more often than those ads that do not include photos.

It is a common belief that if you are renting your home you do not need to be fastidious when preparing your home for tenants. If you are looking to make the rental process easier, then it is a good idea to use a critical eye and see what you can do to make sure you are putting your best foot forward. Cleaning and organizing is not only important when selling your home, it is also a method to attract the perfect tenant as well.

Begin the screening process by having prospective tenants fill out a rental application that authorizes you to perform a credit and background check and ask for a photocopy of their identification as well. The internet offers a number of sites that will run credit and background checks for a fee. Do not skip this critical step! If you do not want to incur the expense, you can require an application fee. Utilize references from previous landlords as well as character references, which can give you insight into your prospective tenant.

If opportunity allows, meet your prospective tenants in person, as face-to-face meetings allow you to get a feel for compatibility. As a second choice, an in depth phone conversation can help provide a bit of insight into this new relationship. Trusting your instinct is always a good rule of thumb.

Once the hard work has paid off and you have a tenant that is ready to sign a lease agreement, make sure that you have a state-specific, legally binding agreement that you have downloaded from a reputable website or that you have procured from a local entity. As a military owner, including a military clause that will allow you or your tenant to terminate the lease agreement in the event of receiving orders is another important detail to factor into your paperwork.

Tenants and landlords alike can benefit from a written code of conduct clearly stating what you expect from your tenants and your expectations for access to the property for the occasional walk-through. This avoids any confusion or discrepancies during the term of the lease.

One of the common fears of being a landlord comes with the unexpected maintenance costs that arise when you least expect them. A technique for managing this financial upheaval is to create a maintenance fund that holds an amount of your choosing.

The wonderful thing about military life is there is always someone who has gone before you. This is a perfect opportunity to utilize your military network and ask your friends and colleagues what advice they would offer to avoid the most common pitfalls of becoming a landlord.

Good luck on this new adventure!

Courtesy of USAA

In late 2010, President Obama signed into law a broad legislative package that protected Americans at every income level from a multifaceted tax increase that was set to kick in on Jan. 1, 2011. The new Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 goes beyond extending the current income tax structure for two years by including a one-year reduction on Social Security payroll taxes.

The law also provides members with a clearer vision of the tax future, if only for two years. "While it provides a greater level of certainty, it's relatively short-lived," says Dan Brouillette, senior vice president for USAA Government and Industry Relations. "As we head into a new Congress and another political campaign cycle, it's important for members to consider that it could all change in two years - or even sooner."

With that in mind, here's a summary of the law's major provisions and how they may affect your financial planning in 2011 and beyond.

How to Make It Work for You

After all the commotion, the net result of the tax bill is a little anticlimactic: The tax landscape will look in 2011 much like it did in 2010. But there is one aspect that should have your full attention: the one-year reduction on Social Security taxes.

"If you're employed, the payroll tax break immediately puts more money in your pocket on payday," says USAA CERTIFIED FINANCIAL PLANNER™ practitioner June Walbert. For example, if you earn $60,000 a year, this tax break will save you $1,200 over 2011 - or about $100 per month. (Your actual take-home pay may not increase by quite that much, however, because one tax credit was allowed to expire - the Making Work Pay credit, which was worth up to $400 a year for individuals with adjusted gross income below $75,000 and $800 for married couples below $150,000.)

Walbert recommends using the extra cash to support your own economic recovery by shoring up your emergency fund, paying down debt, rounding out your insurance or investing for the future.

"The best approach is to get this money out of your monthly cash flow immediately," says Walbert. "If you don't redirect it as soon as possible, it may get lost in your everyday spending and you'll miss out on a great one-time opportunity to improve your financial situation."

Walbert points to three other notable implications of the tax law.

There's no reason to rush investment gains. "Facing a potential capital gains tax increase in 2011, some people were inclined to rebalance their portfolios by selling investments in 2010 and pay taxes at that year's rates," says Walbert. With the rate now staying the same, you can split the rebalance and resulting taxes over two years rather than paying all at once.  

Now is a good time to revisit your legacy plan. Don't let the $5 million estate tax exemption lull you into thinking your estate is protected. You still need to plan ahead because these laws and limits are set to expire at the end of 2012. There is no guarantee that estates valued at less than $5 million will not be subject to the estate tax in the future.

Don't rush to file your 2010 return before the due date. The late changes to the tax code left the IRS scrambling to get ready for filing season. If you're itemizing deductions on Schedule A, claiming the higher education tuition and fees deduction or deducting educator expenses, the IRS asks that you wait until mid- to late February to file. Learn more.

Visit with your estate planning attorney and financial planner to determine the best strategy considering the possibility of a stricter estate tax structure in 2013, after the current law expires.

"While the new law protects many more families from higher taxes overall, careful planning with your financial advisor can turn a non-event into a financial boon for your family," adds Walbert.