Four Reasons Why 2016 Could be the Best Year to Sell Your Home

Posted: 02-22-2016 10:19 pm by:

Live Here Chicago the respected Chicago boutique real estate firm’s owner, Managing Broker, and Lakeview Realtor Carolyn Anavi recently released her 2016 Chicago real estate forecast. For those contemplating selling 2016 may be the best year we have had in a decade.  After year-over-year gains, rising consumer confidence, the Federal Reserve keeping interest rates low, and the lowest inventory in years the market conditions are prime for those looking to garner top dollar for their homes.

 “I‘m very optimistic,” said Carolyn Anavi (http://carolynanavi.com). “The indices have spoken and we can see it day-to-day. With home prices on the rise and market conditions favorable to selling more and more people are testing the waters to see if it is time to make that next big move.”

According to the Illinois Association of Realtors in the last twelve months prices have maintained positive growth with annual growth rates for Chicago varying between 2.3% and as high as 15.3%. Moreover, the percentage of foreclosed sales out of total sales continued decreasing to a monthly average of 18.3%.

Similarly, both the broader view of consumer’s confidence and home purchase sentiment are higher than they were same time last year. In October, the University of Michigan Consumer Sentiment Index increased to 90.0 from 86.9. Equivalently, the Conference Board Consumer Confidence Index increased to 97.6 from 94.5 a year ago. These readings of confidence levels are high compared with their historic records, and are mainly backed up by positive employment news.

In December the Federal Reserve, who’s responsibility it is to set interest rates on long-term and short-term debt, raised interest rates for the first time since 2006 which was mostly bolstered by the positive employment gains. It was raised a mere quarter point which should have little short-term impact on long-term debt like mortgages and car loans. While interest rates may not be at historic lows, they are still low as compared to previous years.

Inventory is also at an all-time low. As of January 9th, 7,297 homes were publicly listed for sale on the Multiple Listing Service in the City of Chicago; this was down over 400 listings as compared to the last week of 2015. This set a historic low since reporting began in the start of 2007. By comparison, January of 2007 saw 21,000 homes for sale with a peak later that year of 28,000.

Carolyn Anavi (http://carolynanavi.com) is the owner and Managing Broker of Live Here Chicago, a full service real estate brokerage focused on residential sales and Chicago apartment rentals.  She is one of the few female real estate brokerage owners in Chicago and has designations as both an Accredited Buyers Agent (ABR) and a Sellers Representative Specialist (SRS). Carolyn also specializes in assisting landlords to properly price and market Chicago apartments - she has been helping people buy and sell real estate in the Chicagoland area for more than 17 years.

6 Tips for Welcoming Your New Tenants

Posted: 04-24-2016 6:58 pm by:

As one of the top-rated Real Estate Brokerages leasing residential properties in Chicago we hear a lot of things from tenants moving into their new home.  First impressions mean a lot. We’ve put together a few simple tips to set get your relationship with your new tenants off to a great start.

Tip #1: Make sure your property is clean and move-in ready.

When you hand the keys to your new tenants you want to make sure that the experience they have when they first enter the property is a good one.  This first impression says a lot to the new tenant.  It sets the tone for how they feel in their new home.  For many it’s a trust issue that is established at this moment.  In addition is serves as a marker of how you would expect the unit to be left when they move out. It demonstrates a pride in ownership and that they are expected to value your property. 

Several owners that we work with will insure that they are able to clean properly by having their leases written so that the lease expires at 9 am on the first of the month. This allows the current tenants the early morning to move their things out and into their new home. The landlord will then direct us to write the new lease with start time at 2 or 3 pm that same day.  This allows 2-3 hours to clean the property prior to the new tenants moving in.  

Tip #2:  Be aware of the property's condition.

Over the years we’ve placed many tenants that stay several years with a landlord.  Even the best of tenants will cause normal wear and tear on a unit.  Three to four weeks prior to the lease ending  it could prove helpful to view the condition of the property to make sure appliances, walls, and surfaces are in good condition and that there are no repairs needed prior to new tenants moving in.

Many landlords that we work with do a mid-year or quarterly checkup of the property. We have seen landlords add wording to their leases that a cleaning service will come monthly to take care of things like grout, appliance interiors and other areas that renters too often skip. They usually build the cost of this cleaning service into the rent.  Live Here Chicago has found some great cleaning services on Yelp and Angie’s List. Be sure to schedule this service in advance as many cleaning companies get very busy at the end of the month,

Tip #3: Prepare your tenants for a smooth move in.

Landlords score big points by simply sending an email to their tenants a couple weeks prior to move in reminding your new tenants to set up utilities, cable, and movers. This can be so helpful especially for first time renters.  A simple list of names and contact numbers of the local utility and cable companies can save calls from tenants panicking because they forgot to have the electric or gas put in their names and are now taking cold showers!

Tip #4: Renters Insurance:

Renters insurance is fairly inexpensive. Most tenants do not understand that there’s a good chance that the contents of their apartment may not be covered by you insurance on the buildings.  Strongly encourage your tenants to sign up for rental insurance by providing the names of numbers of a couple reputable companies.

Tip #5:  Email your new tenants any important phone numbers they may need.

Email is a great way to communicate with you tenants because it allows them to access information at a later date.  Providing you new tenants with the important phone numbers for emergencies such as lock-outs or immediate repair issues such as a HVAC system that stops working is important.  Providing a backup phone number should your tenants not be able to reach you, or whomever manages your property, would be a good idea as well.  If you have a preferred company or trades people that you use to handle emergency repairs for hot water heaters, dishwashers, or electrical, and you are not living in state, our we know that some out-of-town landlords allow the tenant to collect quotes for a repairs and send to the landlord for approval.

Tip #6:  Leave a welcome bag in the unit.

Many of us have perhaps had an experience of renting a vacation property or an Airbnb property.  You walk in the door and there on a table somewhere is a bag with some nice essentials.   This doesn’t have to be expensive but this type of thoughtfulness goes a long way with tenants.  One of the biggest reasons tenants say they stay year after year in a rental is because they have a great landlord.  A little investment goes a long way in keeping vacancies at a minimum. A bag may include:

• A couple of rolls of toilet paper
• A couple rolls of paper towels
• Bottle of multipurpose cleaner / Clorox wipes
• A few bottles of water in the refrigerator
•  Some landlords might even leave a bag of coffee, salt & pepper or a bottle of wine

Live Here Chicago has a stellar reputation in assisting property owners lease and sell their properties. Please contact us at Live Here Chicago should you need assistance with any of your real estate needs.  773-782-1000 or Carolyn@liveherechicago.com. 

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Security deposit or move in fee - which is better?

Posted: 10-09-2015 4:21 pm by:

In January of 2014 the Chicago Association of Realtors introduced a new lease. The lease includes a cover page that warns landlords about the risks of taking a security deposit. That article can be read in its entirety below. When considering whether to take a security deposit vs move in fee - please see this link to read the article on security deposit or move in fee.

It has been nearly two years that the recommendation for not taking security deposits was put out by C.A.R.Carolyn Anavi, the owner and Managing Broker of Live Here Chicago, speaks to hundreds of landlords yearly seeking to list their property with her firm.  She has found that some landlords are completely behind taking a move in fee instead of a security deposit while others still prefer taking a security deposit - typically equal to one month rent. Carolyn states that “Some landlords feel that a move in fee may not cover the damage should expensive items like wood floors be damaged. Others don’t want the hassle of worrying about the Chicago Residential Landlord and Tenant Ordinance (RLTO) and the ramifications should it not be followed perfectly.”

Is it best to take a security deposit or move in fee?  Here’s what Live Here Chicago is seeing in the marketplace. Most management companies in Chicago are now taking a move in fee instead of security deposit. The trend started about seven to eight years ago. Some management companies take a move in fee amount per tenant while others take a flat move in fee for the unit. A flat move in fee is more typical. Unlike the security deposit, the move in fee is non-refundable. Most landlords are still taking a security deposit but many are wary and each year the number of landlords grow - switching from a security deposit to a move in fee. Many times the landlord who makes the decision to change has either incurred a legal issue themselves or knew of someone who had.

How much should a landlord take for move in fee? That amount is entirely up to the landlord. Typically Live Here Chicago is seeing landlords ask for somewhere between 25 and 30 percent of the monthly rent. Some management companies in Chicago take a move in fee based on the number of bedrooms, while others take it on the number of tenants to occupy the unit.

What sparked new interest in this topic is that Carolyn Anavi saw one of her customers, a small management company in Lakeview, revert back to taking security deposits. The management company had been taking move in fees for over seven years.  A month ago they decided to start taking security deposits again. According to one of their property managers, too many tenants were leaving the apartment in bad condition at the end of their lease. They felt that the move in fee essentially left the tenants unmotivated to make sure their apartments were left in good condition because essentially, they had nothing to lose. Without the consequence of not getting ones security deposit returned the condition that the apartments were left in had changed substantially.

What do you think?  Are your taking a move in fee or a security deposit? If you are a landlord we would like to hear about experiences that you can share with us and other landlords  

Live Here Chicago Sponsors Habitat for Humanity Chicago!

Posted: 01-08-2016 8:34 pm by:

Live Here Chicago the award-winning Chicago apartment rental agency, is supporting the Chicago affiliate of Habitat for Humanity by sponsoring a corporate volunteer day. On December 17, 2015, 10 Live Here Chicago employees spent the day giving back to the community by working at a 12-home Habitat for Humanity Chicago construction site in Chicago’s West Pullman Neighborhood.

“We have had a great 2015 and love giving back to the community,” said owner and Managing Broker of Live Here Chicago Carolyn Anavi. “We partnered with Habitat for Humanity not only for its mission of generosity in our community, but we also share a common commitment to helping people realize the American Dream.” For more than seven years Live Here Chicago has helped find Lakeview apartments, Lincoln Park apartments, andEdgewater apartments and everywhere in between for Chicago renters and new home buyers.

The work assigned to Live Here Chicago’s 10 volunteers incorporated a number of homebuilding tasks including painting, landscaping, clean up, prepping for the beginning of the next home to be built in this block-spanning project in the 11900 block of South Union in the West Pullman Neighborhood.

Live Here Chicago also made a substantial financial contribution that will go directly to the purchasing of materials and supplies used in construction. The 10 volunteers represented every department in the company from administration, marketing, executives, new home sales, and residential rentals.

Started in 1976 by the Fuller family and brought into the public eye through former President Jimmy Carter Habitat for Humanity is a non-profit nondenominational organization that seeks to eliminate poverty housing and homelessness from the world. Through volunteer labor and donations of money and materials, Habitat builds and rehabilitates simple, decent houses with the help of the homeowner (partner) families. Habitat houses are sold to partner families at no profit and financed with zero interest loans. The homeowners’ monthly mortgage payments are used to build more Habitat houses. Habitat has built more than 250,000 houses around the world, providing more than one million people in over 3,000 communities with safe, affordable shelter.

“We’re very happy to support Habitat for Humanity Chicago by sponsoring a corporate volunteer day,” Anavi adds. “We’re hoping to once again raise the bar and set an example for other companies, no matter how large or small, that everyone can make a difference.”

Carolyn Anavi (http://carolynanavi.com) is the owner and Managing Broker of Live Here Chicago, a Chicago rental apartment agency and full-service real estate brokerage. Carolyn and her management team have more than 40 years of combined experience, which is unmatched in the Chicago area. She is also one of the few female real estate brokerage owners in Chicago and has been the recipient of the Chicago Association of Realtors Outstanding Leasing Achievement Award. For more than seven years she has been helping people find apartments for rent in Chicago and the perfect place to call home.

What does it cost to live in Chicago?

What does it cost to live in Chicago?

Posted: 09-22-2015 6:56 pm by:

Renting a one-bedroom apartment in desirable central neighborhoods like Lincoln Park, West Town, and the Near North Side costs between $1,750 and $2,000 per month, according to apartment rental site Zumper. (Zumper also puts the average cost of a one-bedroom in Chicago at slightly higher than Zillow, at $1,670.) Single renters can save by looking for place in further-out neighborhoods like Kenwood, Rogers Park, and Irving Park, where average rents for a one-bedroom are all under $1,000 a month.

Whether you rent or buy you’ll have to pay utilities. According to numbeo.com, a basic utilities package of electricity, heating, water and garbage costs $121.16 in Chicago. If you add internet you’ll pay around $40.14. That’s below the national average of $47.83 and cheaper than internet in the rest of the country’s 10 largest cities.

With the essentials of housing, utilities and transportation covered, that leaves food. According to numbeo.com, a three-course meal for two in a mid-range Chicago restaurant will cost you $65.oo. A meal at an inexpensive Chicago restaurant costs $12. Whether you go fancy or no-frills, you’ll pay a 1.25% additional meals tax in downtown Chicago and a 0.25% meals tax outside of downtown. That’s on top of the state and local sales taxes.

What about taxes? As we mentioned, groceries in Chicago are subject to a 2.25% sales tax on food. That’s rare in the US. Then there’s the restaurant tax to worry about. Oh, and starting in January 2016, sales tax in Cook County will rise to 10.25%.

Plus, Illinois has the second-highest property taxes in the nation. The statewide average effective property tax rate is 2.13%. That’s almost twice the national average. When it comes to income taxes, Chicago keeps things simple, though. Illinois has a flat income tax of 5%.

Chicago isn’t lacking in entertainment options. There’s the famous Lollapalooza music festival every summer, the improv institution Second City and, for traditionalists, the Chicago Symphony Orchestra, one of the “Big Five” American orchestras.

If you love sports, baseball is a very accessible sport, as cheap seats can often be had for less than the cost of a movie. If you go out out to four Chicago Cubs games, and then enjoy four pints of beer out at a sports bar in Wrigleyville, you can expect this to set you back about $122 a month. 

If you love theatre, Chicago is filled with amazing world class productions like the Blue Man Group. Seeing shows like this, and then recounting the evening of entertainment over four cocktails at a hip Chicago nightclub will cost you $344 a month.

Chicago is a city known for its many distinctive neighborhoods. No matter your price point, your social scene, or your living needs, the city offers something for everyone.