Benefits of Month-to-Month Tenants

Posted on March 22, 2022March 22, 2022 by author

Now that you have a property, you need tenants! But what kind of tenants? Do you want short-term or long-term? Month to month or fixed-term lease? Long-term and fixed leases are the most common, then short-term for vacation rentals. In this blog, we’ll discuss the benefits of having month-to-month tenants.

What are Month-to-Month Tenants?

Month-to-month tenants are renters who pay rent monthly to stay on the property without an expiration date. This means the lease doesn’t have a fixed end date and it will automatically renew at the end of each month. Typically, the renters will pay their monthly rent until either party gives a 30-day notice.

Benefits of Month-to-Month Tenants

More control over timing and financial flexibility are the significant benefits to month-to-month tenants. Month-to-month means the landlord can end a rental agreement at any time very quickly and usually doesn’t need a reason to terminate the lease. With month-to-month tenants, landlords have more financial flexibility as the landlord can change the rent easily. This is usually why monthly leases have higher rents than long-term leases. But most renters who enter this lease understand that they’re paying higher prices for the short-term lease. It is a great option for buyers waiting for their house to be built or people testing out living in a new city. There’s flexibility for both the tenant and the landlord.

Drawbacks of Month-to-Month Tenants

We want to be fair and explain both sides before landlords decide this is the leasing option for them. There are some drawbacks to month-to-month tenants like sudden vacancies and uncertainties. When landlords offer a short-term lease like this, they have to be aware that there might be sudden vacancies since the tenant is allowed to leave at short notice. If they want to fill the vacancy, this can be stressful for the landlord (unless you have a property management company like us!). Second and tied in with sudden vacancies are uncertainties like when the landlord will receive rent and finding short-term renters. On top of spending more time and money to prepare the property, advertise the property, screen new tenants, and show the rental (did you know TALK Property Management does all those things for you?).

As a landlord or investor, it’s up to you to choose the best lease option for you and your property. There are benefits and drawbacks to a short-term lease and rental with month-to-month tenants. If you need help discussing your leasing options, contact TALK Property Management!

What Does TALK Property Management Do?

Posted on February 4, 2022 by author

When investors hear the term property management, they may just think it’s a company that maintains the property and deals with the tenants. But at TALK Property Management, we do so much more than that! Our property management services include marketing the property, finding tenants, maintaining the property, and accounting.

Marketing

If you have a vacant property and don’t know how to advertise your Austin property to prospective tenants, TALK Property Management can do that for you! We create a complimentary Comparable Market Rent Analysis to provide a recommended rent based on the current market. This helps you optimize your monthly rent and may reduce vacancies. Lastly, we market your investment by photographing your property, writing an enticing description, and advertising it using social media marketing, email marketing campaigns, yard signs, and more.

Tenants

When you choose TALK Property Management, we find you reliable tenants through a rigorous tenant screening process (always complying with the Fair Housing Act). If the tenants turn out to be troublesome, TALK Property Management will attend eviction court proceedings on your behalf. We send a “Notice to Vacate” if rent isn’t received by the third of the month, then file eviction on the eleventh if it’s still not received. We enforce all provisions of your lease.

Maintenance

TALK Property Management maintains your Austin property, as well. For minor repairs and maintenance, we use local, reliable handypersons and licensed professional vendors for significant issues. If you have one, we work with your Home Warranty company for any extensive repairs or replacements like HVAC systems to make the process easier and less costly for investors! When we have access to your property, we use a licensed locksmith to handle all locks and ensure your property is up to the Texas Property Code. We ensure the team we use on your property provides the best quality and service.

Accounting

Besides the essential property management services, we go above and beyond to make real estate investing easy for our Austin investors. We utilize a professional software and accounting system to help manage your property’s finances. This means we send you a monthly statement on the tenth of each month with copies of any paid repair bills. We can also send a year-end summary statement and 1099 to help make your taxes easier. Lastly, our software makes it possible to send funds directly to your bank the first business day after your tenant paid rent.

At TALK Property Management, we want your real estate investment to be a success, which is why we pride ourselves on our quality services! Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

5 Steps to Fix & Flip Houses The Right Way

Posted on December 17, 2021January 14, 2022 by author

Deciding to purchase a home as an investment property is one of the most important financial decisions in a lifetime. Whether you’re a seasoned investor or a newbie, flipping houses can be a little scary. But it doesn’t have to be! With over 12 years of property management experience, we have learned a few things over the years. Here are five steps to fix and flip houses the right way.

1. Create Your Budgets

Before even shopping for a home, you need to create your budgets. One budget should estimate how much it will cost to purchase the home and close on it. The next budget should account for the renovation. When it comes to budgeting, it’s always better to overestimate and have more money than less. If it’s your first time fixing and flipping, a professional contractor should be your first stop to get accurate pricing. When you work with TALK Property Management, we can help you find credible contractors.

2. Find Fix & Flip Properties

Now that you’ve done the beginning research, you’ll want to continue finding outdated properties to remodel. It requires a particular skill to find these undervalued opportunities, evaluate them, and manage them, so they’re completed on time and within budget. We can handle remodeling on your behalf when you choose TALK Property Management to help you on your fix and flip journey. The secret to finding a good fix and flip property is to find off-market homes and homeowners who are highly motivated to sell. As your REALTOR®, we can help you find these covert opportunities.

3. Make the Right Offer at the Right Price

The price you pay for your property will determine the profit you’ll make when you sell in the future. So if you overpay, it’s likely you won’t make any profit at all. If it’s in good condition, it means you’ll have to do less work. If it’s in bad shape, you can make a fair offer that’s under the market value as you’ll need to put in more time and money to fix it up. It could mean you could have a lower offer accepted. Essentially, the better the condition, the closer you’ll want to pay to market price, and the worse the state it’s in, then the less you want to offer.

4. Hire Contractors & Begin Remodeling

After closing, the property is yours and ready to be broken down and brought back to life! Don’t make the newbie mistake of trying to tackle everything by yourself. An investor is only as successful as their team, and part of your team is your remodeling crew.

In an ideal remodel, you’ll finish remodeling the property in five or fewer weeks. Again, timing is crucial because the longer you hold onto a property, the more it will cost. Because, as the famous saying goes, “time is money.” Make sure your time and money are going to a credible and efficient contractor, so get several quotes.

5. Market & Sell Your Fix & Flip Property

Now that the property is remodeled, it’s ready to go live! Any good REALTOR® will tell you that marketing is essential if you want your property to sell. That’s why you can’t skimp out on marketing your newly renovated place. With TALK Property Management, we run a Comparable Market Analysis to get you a fair rent price based on the current market trends and photograph your property for advertising on social media, the Multiple Listing Service, and our website.

Contact us today if you’re ready to buy your next investment property or need help creating a plan! Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

5 Decor Hacks To Brighten Your Home This Winter

Posted on November 19, 2021 by author

Winter is approaching, and you may find yourself spending more time inside with earlier sunsets and longer nights. Here are five decor hacks to help make your home brighter and cozier this winter.

Decor Hack #1: Paint Walls Bright and Warm

For a quick change, consider repainting one of the walls in a room you tend to hang out the most in, like the living room or kitchen. A neutral color with warm undertones will create a bright and cozy atmosphere in the area, and a vibrant color will help uplift a space while also looking great year-round.

Decor Hack #2: Incorporate Live Plants

Bringing some greenery into your home will add color and life to a room. Some of the health benefits of owning plants are lower blood pressure and reduced anxiety. Start with easy-to-care-for house plants that will most likely survive all year long, like a Chinese Evergreen, ZZ Plant, Moth Orchid, and Snake Plant.

Decor Hack #3: Change Light Bulbs

There’s no way around it–winter means less sunlight and colder weather. To counteract the lack of light and warmth, try LED lights. They’ll make your home bright and sunny, and these bulbs emit the most light while using the least amount of energy. Soft white LED lights will brighten the room without an intense contrast.

Decor Hack #4: Let In Light

With what sunlight we do get during the day, embrace it with a curtain change. Sheer curtains and stylish pullbacks are great alternatives for letting in light. If there is decor blocking the window, relocate them to maximize the light.

Decor Hack #5: Add Color

Winter is known for being dark so early in the day, but it doesn’t have to be dark inside your home! Try adding pops of color with colorful throws, pillows, dish towels, or rugs. Warm colors like reds and oranges will add warmth and energy to the room.

If you need help styling your investment property this winter to sell or are wanting to buy a home, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Hot Summer Color Trends for Austin Investors

Posted on July 13, 2021 by author

If you’re looking to spruce up your home for summer or need some summer inspiration for decorating your investment property, check out these hot summer color trends from HGTV.

1. A Touch of Spring Green

Spring Green is a vibrant mix between turquoise and sea green. This color works best as an accent when surrounded by primarily neutral colors. It can be just a pop of color like pillows or larger by choosing a furniture piece with this color.

2. Regal Purple

Regal purple can easily be used all year round for decor, but it especially pops during summer. You can even incorporate outside when you use fresh lilacs or liatris to accentuate the purple in the room.

3. Blue

Blue is a great accent color as well since it can have a masculine and feminine appeal. If you don’t want to commit to painting with this color, let accessories do the job for you. A blue rug with matching pillows and accented table settings is a great option.

4. Sunny Yellow

Mimic the sun’s bright hues with a shade of daffodil to brighten up any all-white room. This color pairs great with white, black, or navy and can quickly transform a space into a cheerful room.

5. Turquoise

We already mentioned blue, but we need to mention this particular shade of blue: turquoise! This color complements mid-century modern furnishing to help give the room a retro, urban feeling. The beauty of this color is its versatility in using it by itself or toning it down with muted hues.

6. Slate-Blue

The opposite of turquoise is slate blue, and it’s also a great color for summer too! While not as bright and cheerful as its blue cousin, slate blue can represent coastal inspiration and ocean waves, making it a hot summer color style. This color works best when paired with neutral furniture and accessories.

7. Yellow Green

If you’re looking for another color to make your home pop, yellow green is the color for you! This bright color pairs well with browns and creams and can be combined with darker shades of greens as accents. Yellow green will add a whimsy, graceful touch to your room.

If you need help with your rental property, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

10 Popular Decorating Styles for Austin Investors

Posted on June 10, 2021 by author

If you need help decorating or furnishing your property for future tenants, try one of these popular decorating styles!

Transitional

Transitional can be defined as an elegant combination of traditional and contemporary looks. Because of its simple style, it can appeal to people with different design styles. This style featured sophisticated furniture, serene hues, updated classics, and materials like marble and quartz. It works well with coastal or farmhouse styles too.

Traditional

Tradition is a blend of history, heirloom antique, rich woods, plush carpets. A traditionally designed room should feel warm and welcoming. A traditional design style will have antiques, a refined color palette, intricate architectural details, and materials like marble and wood. This style works best with these styles: rustic, coastal, or Mediterranean.

Contemporary

This style is whatever is current and new. This style is the complete opposite of traditional style because it embraces negative spaces, strong shapes, and clean lines. Contemporary style is defined by current trends and designs, open space, and minimalism. This style works best with rustic or coastal styles too.

Modern

A modern design style focuses on form and structure like smooth surfaces, glass, chrome, and black leather accents. This style has an emphasis on ample negative space, a clean color palette, and minimalism. This one works best with industrial, midcentury, and farmhouse styles.

Midcentury

This style emphasizes strong shapes and clean lines and combines the past with the present. Decorate with a midcentury style by having clean, uncluttered spaces, natural wood, graphic patterns, and organic shapes. Modern and industrial styles work best with this one.

Farmhouse

Farmhouse combines rural architecture with modern comforts by utilizing hardworking furnishings and natural materials. This style features wall paneling, sliding barn doors, natural and historic colors, and simple, functional furniture. It works best with modern, rustic, industrial, and transitional styles too.

Rustic

Rustic is inspired by Mother Nature’s woods, plains, rivers, and lakes. Popular features of this style are exposed wood beams, brick and stone, natural hues, and rugged furnishing. This style works well when combined with farmhouse, traditional, contemporary, or industrial styles.

Industrial

Industrial is usually seen in urban lofts and converted industrial spaces but can be used in a home when you use industrial finishes and decor. Typically defined as gritty, industrial is also characterized by salvaged and found elements for decor, wide-open space, exposed raw materials, and a neutral color palette. It combines well with modern, rustic, farmhouse, and midcentury styles.

Mediterranean

Just the word itself makes people think of sandy beaches and vivid oceans, and the goal is to recreate those cool and breezy or rich and warm locations in a property. Key elements of this style are a rich, earthy color palette, natural materials like wood, brick, and stone, and colorful tile. It works well with traditional and coastal styles.

Coastal

Don’t get Mediterranean confused with coastal! Coastal style is inspired by the beach and utilizes natural light, natural materials, and a casual tone. You don’t have to live by a beach to make coastal work for your property. If you decorate with coastal colors, whitewashed surfaces, bare wood floors, natural materials like linen, cotton, and wicker, you’ll get the theme across. Coastal style works well with traditional, transitional, contemporary, and Mediterranean.

If you need help with your rental property, contact me today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Important Factors to Consider When Buying a Foreclosed Home

Posted on March 1, 2021 by author

Foreclosures are often the investors’ go-to’s when they’re seeking a bargain-priced home or wanting to flip a house. And while they’re a solid option, foreclosed homes are very different from traditional resale homes. Let’s take a look at some of the important factors to consider when buying a foreclosed home.

The Dangers of Foreclosed Homes

While foreclosed homes can save you money, they come with baggage. Most foreclosures were not cared for properly and will require some work before becoming livable or sellable. This is common with vacant and abandoned homes, which makes up almost all foreclosed homes since the pandemic began.

Foreclosures are sold “as-is,” meaning that the owner of the property will not perform any repairs on the property. Another challenge could be the legality tied up into the property. Sometimes foreclosure properties have liens or judgments filed against them. This is a claim for the home due to unpaid taxes, repair bills, and more. When that’s the case, you’ll need to pay these off before buying the house.

How To Get A Good Deal

If you find a foreclosure property that catches your eye, here’s what you need to do next.

1. Get Pre-Approved for a Mortgage

Unless you have an all-cash offer for the seller, getting pre-approved is a crucial first step. All cash offers are appealing because they usually mean a quick close.

A loan pre-approval letter shows the seller you’re qualified, prepared, and are a safe bet to follow through on the deal. As your real estate agent, I have a list of reputable lenders, and I’m happy to share that information with you.

2. Research

You’ll need to research the home and the area. You can investigate the house through property records found at the county clerk’s office, and you may be able to avoid paying for liens placed against the property. You’ll also want to look for any improvements to the home, its ownership and sales history, and its assessed value with the county.

3. Get a Home Inspection

A home inspection will help you better understand the property and its flaws. As your real estate agent, I can also help with evaluating the property.

Once you have more information about the property, work backward to come up with an offer price. The rule of thumb for home flippers is purchase and repair costs should not exceed 70% of the home’s expected after-repair value.

This is just the tip of the iceberg, and there are many more important factors to consider when purchasing a foreclosed home. Contact us today, and we’ll happily guide you through the process: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Property Management Write-Off’s in 2020

Posted on July 10, 2020 by author

Owning an Austin rental property in 2020 during the pandemic will continue to be both challenging and an opportunity. Economic changes could create unrest for tenants, and shifts in leasing requirements have proven to provide unique hurdles for landlords. When it comes to handling your property, you need to know what you can do about write-offs.

In 2020, you can still deduct mortgage interest and real estate taxes on your rental properties as well as all of the typical operating expenses. Keep careful track of your spending, and make sure to deduct accurately to avoid paying higher taxes than need be.

Also, consider your depreciation. A tax-savings can be found on residential buildings over the age of 27.5 years, where you can depreciate the cost even when the value is increasing. There are additional depreciation opportunities with commercial buildings over the age of 39 as well as expenditures on nonresidential building roofs, HVAC systems, and alarm and security systems.

These are the most simple deductions, but there are many other, more complex tax matters to consider. If you are managing properties, be sure to speak with a qualified accountant about your options. If you need a trusted referral, please contact Dona Brown.

If managing properties in Austin is getting overwhelming, it might be time to try a local, professional Property Manager that can help boost your return on investment. Contact Dona Brown, Talk Property Management, to discuss your needs and options. 512-721-1094.

Single-Family Residences, Built For Rent Homes, Meet Austin’s Home Seeker Needs

Posted on June 17, 2020June 10, 2020 by author

Trends that began last year have recently resurfaced. Buyers’ and renters’ priorities are shifting as the economy continues its journey through the tumultuous year, uncovering unique opportunities. Austin’s single-family-built-for-rent market will most likely expand as we move further into 2020. What are SFBFRs? They are the comeback trend from 2019 that could help housing affordability and challenges to homeownership due to COVID-19 effects. With demand for single-family homes outpacing supply and even as individuals and families prefer the stand-alone home, not everyone can or wants to buy right now.

With unemployment rates increasing, down payment challenges are also on the rise. Meanwhile, low inventory continues to push home prices upward, and many home seekers are widening their search to include rentals. Renting affords the opportunity to live in specific geographic areas or communities with little commitment and less out-of-pocket cash. However, especially while health concerns have many people avoiding high-density housing, moving into an apartment does not tend to fit the needs of a large portion of the rental market. Professional millennials, those in transition (divorce, downsizing, upsizing), or empty nesters all have something in common: they want the convenience of renting with the privacy and quality of life of a single-family home.

In the first quarter of 2020, SFBFR activity increased from the previous year across the nation. Its share of build-to-rent homes is taking a larger chunk of the new-home market and many in Austin are seeking such an opportunity, in the form of both renters and builders. Projects such as Urbana, part of Goodnight Ranch in Southeast Austin, are building new homes with high-end finishes and private yards specifically to go directly on the rental market. These upgraded units for lease are a step above apartments, don’t require a long-term mortgage commitment, but still provide the amenities people want and need, such as washers and dryers, spacious floor plans, and someone else to manage the repairs. It’s a win-win.

Successfully investing in Austin real estate requires paying attention to the market and the demands of home seekers. As we head deeper into 2020 and monetary priorities shift for Austin buyers and renters, it’s critical for those looking to purchase rental property to adjust to them. If you need guidance on the current real estate trends or have questions about managing properties, contact Dona Brown. Her years of experience can save you time and money when investing in Austin. 512-721-1094.

Mortgage Rates June 2020 and Investing in Austin

Posted on June 10, 2020June 10, 2020 by author

Stay informed of Austin’s investment opportunities and real estate market trends with a quick look at the latest mortgage rates. Mortgage rates continue to linger near the bottom of the graph as the gap widens between home inventory and buyer demand. Even after a slight uptick in rates the first week of June 2020, they are still just .13% above the all-time low. The 30-year fixed mortgage rate landed at 3.18% in early June as the economy heads to the recovery ward.

Freddie Mac’s national average report shows all rates are trending downward from this time last year:

30-year fixed-rate mortgages: averaged 3.18%, a decrease from the 3.82% rate in June of 2019.
15-year fixed-rate mortgages: averaged 2.62%, down from the 3.28% rate from this time last year.
5-year hybrid adjustable-rate mortgages: averaged 3.10%. In 2019, these 5-year adjustable mortgages averaged 3.52%.

While rates are still incredibly low, buyers and renters are starting to take advantage and dive back into the home search. Not without precautions, however. In a recent industry survey, management professionals revealed their top priorities are focused on new technology and paperless leasing to meet the concerns and demands of current home seekers who need to know its safe. Technology is allowing the market to keep moving with virtual tours and remote signing solutions.

Investing in Austin can be fruitful, but it takes diligence and market knowledge to maintain a top return on investment. Relying on an experienced and professional property manager can help you avoid the high costs of new technology but keep you relevant in the 2020 rental market. If you have property management questions or are considering hiring an Austin professional this year, contact Dona Brown. Her experience can help you navigate investing and managing. 512-721-1094.

Also, check out these recent blogs for more Austin investment resources: