rentals in CT

Do you own residential rental property in Fairfield County?
Or are you thinking of renting out your home for the first time? Or are you a seasoned veteran looking for a strong real estate agent?  The professional Realtors® at BHGRE Shore & Country Properties are here to help you.

Why should I use a BHGRE Shore & Country Properties Realtor® to rent my property?

Three great reasons: 1) Faster rental 2) High quality of tenants 3) Less personal time and hassle

How does this work?

  1. Our goal is to help you find high quality tenants quickly at a good rent.
  2. We put your rental listing on the Greenwich Multiple Listing Service (GMLS) as well as the Consolidated Fairfield County MLS (CMLS) where hundreds of Realtors® look for rentals for their clients.
  3. We also feature your listing on our site www.GreenwichCTrentals.com , StamfordCtRentals.com and NorwalkCtRentals.com, three leading sites, where thousands of potential renters will see it.
  4. We pre-screen the candidates and take them to see a selection of rentals that meet their needs. We present your property in its best light.
  5. When candidates like your rental, we have them fill out a comprehensive application; they pay for a credit report, and we ask them for proof of legal income (such as a pay stub), and if necessary a letter of reference from a current landlord. You don’t waste your time doing all of this, we do it for you.
  6. The candidate makes an offer to you, based on credit-worthiness and other factors.  We help you reach agreement on rent and security and we can arrange for you to meet the candidate if you wish. Remember…our goal is for you to find high quality tenants at a good rent.
  7. We draw up a lease based on the Greenwich Board of Realtors lease that is legally sound and easy to understand.
  8. When your new tenant has signed the lease and paid the first month’s rent and security deposits you pay us our fee, typically one month’s rent. We never charge a fee for a lease renewal.

OK, but what makes BHGRE Shore & Country Properties Realtors® different?

We Take Rentals Seriously! Rentals are a major part of our business…not just a fill-in…and they require special expertise. www.GreenwichCTrentals.com, StamfordCTrentals.com, NorwalkCTrentals.com and AllCTrentals.com demonstrate our commitment to your rental business.

What else do I need to know to be a landlord?

You must comply with state and local regulations regarding tenant and landlord rights and responsibilities. Some helpful sites are listed here:

You should become familiar with the federal and state fair housing laws, which prohibit discrimination against prospective tenants based on factors such as their race, religion, national origin, and several other categories of protection. These laws vary depending on the number of rental units in your building and whether this is an owner-occupied home. Check with your attorney to make sure you are complying with fair housing laws in CT.

You should also keep good records of rent income and repairs, mortgage payments, and so on, and you should have a separate escrow savings account for the security deposit. Speak with your tax advisor about how you will report your rental income and how much of your expenses may be tax deductible.

NOTE: This website does not offer legal or tax advice, so please contact your attorney or tax advisor for more detailed information.

multi-family real estate investment

Cash flow and development opportunity at this nice assemblage close to downtown Stamford, CT.  62 Stillwater is an 8 unit multi family with tons of uppside potential and 56 Stillwater is a 3 unit multi with 5-6 unit development potential.  For more detail, please contact Rob Vitale at Robert Vitale RobertTVitale@gmail.com  

Investment multi-family

56 and 62 Stillwater Ave. Stamford, CT multi family buildings for sale with development potential. please see the attached pictures and valuations.  Sold together or separately, call for appointment  –  Rob Vitale 203-561-6310

real estate investments

Investors: Multi-Family, Mixed Use & Commercial Real Estate
Many people dream of owning real estate as an investment, and for good reason. Over the long term, real estate values appreciate and hold their value more reliably than other types of investments. Although the US economy experienced dramatic drops in real estate value during 2006-2012, the pre-recession values are being seen again, and this sector remains a very attractive place to invest for the future. Real estate investments are generally classified as either residential or commercial.

KRG agents in Greenwich and Stamford have sold hundreds of millions of dollars in commercial real estate over the past twelve years including hundreds of multifamily units, mixed-use downtown buildings, restaurants, contractor lots, warehouses, and land ready for development.

Residential Real Estate as an Investment

A residential property is a single family or multi-family dwelling with fewer than four units. Sure, not everyone is cut out to be a landlord, but for people who have patience and attention for detail, becoming a landlord is great way to reduce personal cost of living and/or build a nest egg for retirement.

A real estate agent, who is experienced with multi-family purchases as well as rentals, can help buyers to identify comparable homes or buildings, estimate the potential rent income, and determine a fair purchase price.
Once you calculate GRM for your 4-6 comparable properties, the average GRM is used to estimate a price or value for the multi-family house or mixed-use property.

GRM * = purchase price divided by the monthly rent income

GRM represents the number of months’ rent it would take to pay for the house if the buyer pays cash up front…the lower the GRM, the better. This is an oversimplification, of course, but GRM can help a buyer to determine which house might make sense to purchase, or what the target price would be for a potential purchase.
A key element in the GRM calculation is the estimate of monthly rent income.
It is important to use actual RENTED unit data, not current list prices.
Once you calculate GRM for your 4-6 comparable properties, the average GRM is used to estimate a price or value for the multifamily house or mixed-use property.
A good real estate agent is a valuable asset to buyers in helping you navigate this process.

*Note that GRM does not reflect any operating expense, property taxes, or management costs; to include those elements in your analysis, calculate a Capitalization Rate (CAP rate), which is an expression of Return on Investment (ROI) for rental properties.

Commercial Real Estate as an Investment

Any investment for which the owner receives periodic rent can be classified as a commercial property. This can include residential dwellings that are greater than four units, mixed-use buildings, office buildings, warehouses, industrial buildings, retail spaces, parking garages, land for development and agricultural land.
Each type of commercial property has its own unique operating challenges and potential Return on Investment (ROI).
Prospective buyers should consult with an experienced real estate agent to determine if this type of investment fits their goals.
Potential investors should compare the Return on Investment (ROI) with the returns they could earn by investing in something else, such as the stock market.

Ien commercial real estate, the most commonly used calculation for ROI is called the Capitalization Rate (CAP rate). An experienced real estate agent can help with the detailed analysis.
CAP Rate = Net Operating Income divided by the Property Asset Value

For example, A commercial property sells for $1,000,000 and generates an annual Net Operating Income (NOI) of $100,000, the Cap Rate would be 10%.
1. Income ÷ Rate = Value
2. Income ÷ Value = Rate
3. Value x Rate = Income

Examples:

Net Operating Income ÷ Capitalization Rate = Value

$100,000 income ÷ 9% cap rate = $1,111,111
$100,000 income ÷ 8% cap rate = $1,250,000
$100,000 income ÷ 6% cap rate = $1,666,666

Net Operating Income ÷ Value = Rate

$100,000 income ÷ $1,111,111 = .09% rate
$100,000 income ÷ $1,250,000 = .08% rate
$100,000 income ÷ $1,666,666 = .06% rate

Value x Rate = Net Operating Income

$1,111,111 value x .09% rate = $100,000 income
$1,250,000 value x .08% rate = $100,000 income
$1,666,666 value x .06% rate = $100,000 income

Note the relationship between the rate and the value. As the rate goes down, the value increases. If you’re a seller; you want to sell for a 5% CAP rate, if you’re a buyer; you want to buy for a 10% CAP is rate.

Net operating income (NOI) is a calculation used to analyze real estate investments that generate income.
NOI equals all revenue (apartment rents and coin-op laundry) from the property minus all reasonably necessary operating expenses (utilities, maintenance fees, management fees, liability insurance and taxes).
Note that mortgage principal and interest are not considered operating expenses; they are debt service, and they get subtracted from NOI to determine Net Cash Flow.

Net Operating Income = Net Income – Operating Expenses

In essence, the NOI is the cash generated by the property, which would be used to pay the mortgage, fund capital improvements, and generate Net Cash Flow for owners. Remember, Net Cash Flow is the most important calculation!
Net Cash Flow = NOI – Debt Service – Capital Improvements

To estimate a fair purchase price for a rental building, first estimate the Net Operating Income the building could generate and divide that by your target CAP Rate. For example, if a building could generate a NOI of $85,000 per year, and you are looking for a CAP Rate of 10%, then your target purchase price would be $850,000.

**See our mortgage calculator to find out what your scenario looks like.

Http://www.kinardrealtygroup.com
multi-family investments

Have you ever dreamed of owning a multi-family house?  Perhaps you want a charming old Victorian in the center of town, where you could live in one unit and rent out the other one or two? Or perhaps a larger building, of 10 or 20 units for example, to run as a commercial rental property?

Each type of investment can be a dream come true…if you do your homework and make sound decisions.  A Realtor who is experienced with multi-family purchases as well as rentals can help you to identify comparable homes or buildings, estimate the potential rent income, and determine a fair purchase price. Your goal should be to maximize your monthly cash flow while finding a house that works for you.

There are two proven ways to estimate the fair value of a rental property: Gross Rent Multiplier or GRM and Capitalization Rate or Cap Rate. We will introduce the concepts of each here, and your Realtor can help you through the detailed analysis.

Gross Rent Multiplier

When a residential property has 4 or fewer units, buyers typically use a Gross Rent Multiplier (GRM) to identify properties, and then use a CAP rate to get to brass tacks.  

GRM = purchase price divided by the monthly rent income

GRM represents the number of months’ rent it would take to pay for the house if you were paying cash up front…the lower the GRM, the better. This is an oversimplification, of course, but GRM can help you determine which house out of several comparables might make sense for you to purchase, or what the target price would be for a potential purchase.

Let’s look at four 3-family houses in the same town; it’s important to select comparable properties that have SOLD in the past 6 months, not current list prices. These 4 homes all have 3 units, and the potential buyer intends to live in one of the units.  She wants to estimate a fair purchase price for House E.

HouseHouse DetailsOwner OccupiedPurchase PriceMonthly Rent IncomeGRM
A3 units, 6 BR, 3 BA2BR$529,000$3600147
B3 units, 5 BR, 3 BA2BR$502,000$3300152
C3 units, 4 BR, 3 BA2BR$486,000$3000162
D3 units, 4 BR, 3 BA1BR$486,000$3200152
E: Potential Purchase3 units, 5BR, 3 BA2BR???$2600153.25

A key element in the GRM calculation is your estimate of monthly rent income. Here again, it is important to use actual RENTED unit data, not current list prices. Note that Houses C and D have the same layout of rooms and baths, but in House C the owner lives in a 2 bedroom unit while in House D the owner chose to live in a 1 bedroom unit. This choice significantly affected the rental income and the GRM for these two houses.

Once you calculate GRM for your 4 comparables, you take an average of the 4.  This average GRM is used to estimate a price or value for House E. In this Table, the average GRM is 153.25.

We multiply this times the estimated monthly rent of $3200 and arrive at fair purchase price of $490,400, which you and your Realtor can use to guide your negotiations with the seller.

*Note* that GRM does not reflect any operating expense, property taxes, or management costs; to include those elements in your analysis you would want to calculate a Capitalization Rate (Cap Rate), which is an expression of Return on Investment for rental properties.

Capitalization Rate, CAP Rate or Simply CAP 

When the rental property has 5 or more units, it is considered a commercial property. As a potential investor, you should compare the return on investment or ROI with the return you could get by investing in something else, such as the stock market. In commercial real estate, the most commonly used calculation for ROI is called the Capitalization Rate or Cap Rate.

CAP Rate = Net Operating Income divided by the Property Asset Value

For example, if you buy a rental property for $1,000,000 and generate an annual Net Operating Income of $100,000, then your Cap Rate would be 10%.

To arrive at Net Operating Income, you will need data on recent or projected Gross Rent Income and vacancy rate (to estimate your Net Income), as well as Operating Expenses such as property taxes, insurance, utilities, maintenance, management fees, etc.  

Note that mortgage principal and interest are not considered operating expenses; they are debt service, and they get subtracted from NOI to determine Net Cash Flow. Your Realtor can help you build up this data from similar properties, and also help you to estimate the rents you could charge by making cosmetic improvements to the rental units.

Net Operating Income = Net Income – Operating Expenses
In essence, your NOI is the cash generated by the property, which you would use to pay your mortgage, fund capital improvements, and give yourself some Net Cash Flow! Remember…Net Cash Flow is the most important calculation!

Net Cash Flow = NOI – Debt Service – Capital Improvements

To estimate a fair purchase price for a rental building, you would first estimate the Net Operating Income the building could generate and divide that by your target Cap Rate. For example, if a building could generate NOI of $85,000/year and you are looking for a Cap Rate of 10%, then your target purchase price would be $850,000.

Purchase Price = NOI divided by Cap Rate

The most important guideline here is that you should rely on an experienced Realtor to help you through your analysis and negotiation process.