ManCo News Release- 1/19/10

Posted on January 19, 2010. Filed under: Quarterly Newsletter | Tags: , , , , , , , , , |

Dayton Firm Provides Remedy for Home Sellers in Slow Market

ManCo Real Estate Management’s “House Won’t Sell? Rent It.” ™ program provides would-be home sellers an easy way to reduce their financial burdens when faced with a house that isn’t selling. The property management firm streamlines the process of converting a home to a rental property, handling all the details, from finding qualified tenants and leasing to making repairs and doing yardwork.

DAYTON, OH —- Anna and Chris Garland were in for a big surprise when they put their single-family East Dayton home up for sale in May 2008: After 12 months on the market, the house hadn’t generated a single offer. What has surprised them even more is, after 18 months, they’re no longer worried about it.

The Garlands now live in West Virginia, and rather than allowing the mortgage payments on the Creighton Avenue property to drain their finances while it sat empty month after month, they’ve allowed the home to generate income since May 2009.

That’s when the couple discovered that Dayton-based ManCo Real Estate Management Inc. (www.mancorealestate.com) could offer them a way to ride out the current real estate crisis. The firm’s “House Won’t Sell? Rent It.” ™ program has been developed to make it easy for homeowners to rent a house that is not selling. The company provides turn-key leasing and property management services that eliminate the headaches of being a landlord.

“ManCo did everything for us: They advertised, got the renter, did the background check and then let us know about the renter,” said Anna. “If something goes wrong, they have professional maintenance people to fix it. It couldn’t have been an easier transition.”

Victims of mortgage crisis
The Garlands’ situation is not uncommon these days. Their year-long saga began when they set their initial asking price too high, they now realize. Then the mortgage crisis hit, forcing one million homes across the U.S. into foreclosure during 2008 alone. Because of the trend, buyers had plenty of bargain-priced homes to choose from in the Garlands’ east Dayton neighborhood.

A drop in the overall number of home buyers added to the problem. Local home sales numbered 11,037 in 2008, down by 17 percent from 2007, according the Dayton Area Board of Realtors Multiple Listing Service.

The Garlands considered defaulting on the loan, but Anna, 36, who had purchased the house seven years earlier, resisted.

“I didn’t want all the negative affects on my credit,” she said.

Long-distance landlords
The couple began looking into renting the property, but that came with concerns about being long-distance landlords living three and one-half hours away. Then they found ManCo through a family friend.

“When we talked to (ManCo president) Jule Rastikis, he told us how we could turn a big negative into a big positive,” Anna said. “Anything we had to do, he walked us through it. It was so easy.”

A property management company operating locally for nearly 25 years, ManCo knows the business and the Dayton market.

“The American Dream is shifting away from home ownership. A lot of people are satisfied to rent,” said Rastikis. He cited a recent National Foundation for Credit Counseling survey that showed almost one-half of Americans don’t consider owning a home as a realistic way to build wealth, and one-third don’t believe they will ever own a house.

“But people still want to live in single-family homes, so there’s definitely demand from the rental market,” he said. “We at ManCo have created the ‘House Won’t Sell? Rent It.’ ™ program to bring renters together with owners who can’t sell a home in the depressed real estate market. We make the relationship hassle-free for both.”

Opportunity to diversify portfolio
The Federal Housing Finance Agency has reported that nationwide, average housing prices are down an average of 10.7 percent from their peak in 2007. This makes it a good time diversify one’s portfolio by turning a house that’s not selling into a rental property, Rastikis believes.

“Investment theory says to buy low and sell high. Turning a house into an investment now is like buying low,” he said. “Over a period of time, the market should regain stability and show increases in valuation. That would be a better time to sell.”

To make the “House Won’t Sell? Rent It.” ™ program truly full service, ManCo has partnered with realtor Dan Lesage of Real Living Realty Services (www.realliving.com/dan.lesage) to offer clients professional listing and sales services soul they decide to try to sell again.

“If the market gets going again, we might try to sell and it will be nice to have someone who knows the house handling that part of it for us,” said Anna Garland.

According to Rastikis, some owners struggle with emotional ties as they transition the home to investment status. But the Garlands have no regrets.

“I love that house,” said Anna. “I have such peace of mind knowing I don’t have to worry about it because it’s all being taken care of.”

Steps for a Successful Transition: How to turn a home into an investment property

Preparation is critical for turning a home that’s not selling into an investment by making it a rental property, according to Jule Rastikis, president of ManCo Real Estate Management Inc. Where should a home owner start?

􀂃 Build a strong team that includes these professionals:
. qualified property manager
. maintenance company
. attorney
. accountant
. insurance agent
. real estate agent

􀂃 Be sure the house has good curb and unit appeal.
􀂃 Be willing to accept the potential risks and rewards of an investment.
􀂃 Let the market dictate the rental value of the investment.
􀂃 Be willing to let go of emotional ties to the home as it transitions to an investment.

About ManCo Real Estate Management Inc.
ManCo Real Estate Management Inc., has been providing professional, full-service property management to Dayton and surrounding markets for nearly 25 years. A full-service company, ManCo offers quality real estate services ranging from property management to complete building services to brokerage services. The firm currently manages approximately 350 rental units for 110 clients and employs a staff of 10.

Contact:
Jule Rastikis, President
ManCo Real Estate Management Inc.
937-277-9551 or 937-654-4887
jule@mancorealestate.com
http://www.mancorealestate.com

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