What Affects My Credit Score?

Have you ever wondered what changes affect your credit score? 

One of the first things your lender will ask you when you apply for mortgage is, “What is your credit score?”  This is a very important factor that helps determine your qualifications for a mortgage. The higher the score, the better off you are when it comes to securing a good rate.

There are five basic factors that are used to calculate your credit score. The calculation is as follows: payment history (35%), debt to credit ratio (30%), length of credit history (15%), mix of credit (10%) and new credit (10%).

Here is a breakdown of each piece:

Payment History

This includes making payments on time for credit cards and other loans. This carries the most weight on your credit score and one or two late payments can decrease your score more than you might think. Try to pay every bill on time.

Debt to Credit Ratio

This piece relates to your credit cards. The amount of debt that you hold on your credit card is divided by the credit limit on the particular card. So the recommended ratio should be less than 30%. Do not max out your credit cards on a regular basis because your credit score will be lowered. Paying your balance, or keeping it as low as possible is key.

Credit History

It’s important to show that you have a solid history of getting credit and keeping credit. The longer your history is the better your credit score. If you have accounts that have zero balances you should still consider keeping them open as this will also increase your credit score.

Mix of credit

Lenders also look to see that you can maintain a variety of types of credit accounts. This includes retail accounts, credit cards, mortgage and car loans.

New credit

Every time you attempt to open a new credit card it will affect your credit whether or not you get approved.  Each attempt could lower your score 5 points. Try only opening one card at a time to keep your score high.

If you are in the market for a new mortgage your lender will look at a variety of factors determine to determine your interest rate. The credit score is a large factor in that determination. Properly maintain your credit score so that you can be on your way to owning your dream home. For all of your real estate needs contact the experienced professionals at Tampa Bay Realty andInvestment Group. Call 813-515-4882

What are the benefits of hiring a property manager?

Why hire a property manager?

Many first time investors overlook the benefits of using a property management company which include:

Appraisal

Our property managers give an independent appraisal of the correct rent for a rental property. A lot of first time investors over or under estimate the amount of monthly rent they should charge resulting in lost income through a high vacancy rate.

Tenant Selection

Our thorough background checks ensure we take the responsible approach to your property and tenancy. Selecting a good tenant is critical for us as property managers because tenants are expected to pay rent on time and take care of the property as if it were theirs. 

Marketing

Many prospective tenants contact local property managers directly for information about properties for lease or short term rentals.  Ericka Lehrer, CEO, has managed 70 properties of her own which leads to a long list of clientele, as well as an extensive word of mouth referral base from previous tenants, neighbors, and other great relationships that she has developed over time. We also have access to inbound marketing via social media platforms, MLS, and associations we heavily network with.

Viewing the Property

Showing prospective tenants the property takes time because people wanting to lease a home generally want to view the property during after work hours such as the evenings or weekends. We understand your time may be restricted therefore you may not be able to find the best tenant for the property in the fastest time. That is why we take care of this for you!

Contracts

Having a tenant complete and sign a lease agreement is very important as it protects you the investor. A clearly written contract should state the responsibilities of the tenant, property manager, and owner. Many investors overlook key parts of renting a property with the result that legal issues are created between the tenant and owner.

Maintenance Issues

Our managers will conduct regular property inspections to make sure the property is properly maintained and take action if it is not. Maintaining the value of the asset should be a key consideration for investors to maximize their return. Maintaining a property also leads to tenant retention which is also critical for the investment return. One of the most common reasons why tenants leave a rental property is that the landlord does not provide a high level of service i.e. it may takes weeks to fix an air conditioner because the landlord is too busy or may live out of state. We can guarantee that all of your tenant requirements are dealt with promptly and professionally.

Termination of contract

Problems can often arise when a tenant wants to terminate their contract i.e. lack of notice or failure to leave the property in the same condition it was first leased. Our property managers will ensure that the contract is properly terminated and that a new tenant can be sourced quickly to reduce vacancy rate. We also adhere to strict guidelines requiring tenants to take responsibility for any damages they may have incurred based on our inspection records done prior to move in.

Give Tampa Bay Realty and Investment Group a call if you have a property you cannot sell and want to lease, or if you have multiple investment homes you would like our help renting. We can help! 813-515-4882