Investment Property Pricing Strategies For Constant Income and High Occupancy Rates

The ultimate goal for investment properties is to have a constant stream of income and high occupancy rates, and to do that, you need to make sure your property is priced right. If your property is priced too high, potential renters will skip past it when searching online before they even look into it. 

Here are a few pricing strategies to utilize when pricing your investment property.

Perform a Comparative Market Analysis

While the name might sound scary, a Comparative Market Analysis (CMA) is simply comparing your investment property to similar homes in the area. Find homes with the same number of bedrooms and bathrooms with similar square footage and see what they’re priced at to come up with a competitive price for your property. 

In addition to bedrooms and bathrooms, look at your property’s upgrades, amenities, and location. These are all factors that can be considered when pricing your property. If your home has more to offer or a better location than the other homes, you can price it higher than other properties. At TALK Property Management, we provide this as a FREE service for you. 

Consider the Market

The real estate market can largely affect pricing and what potential renters are willing to pay. If demand is high and supply is low, prices usually increase. If demand is low and supply is high, landlords are likely to lower rent prices. It’s also worth noting that potential renters could be more or less likely to purchase a home than rent based on what the market is doing. So, having a clear understanding of the market is huge when it comes to pricing.

Keep Seasonality In Mind

Typically, rental demands are higher in the summer and early fall as opposed to spring and winter, so you could price your property higher if it’s listed during a peak time of year. Keeping seasonal trends in mind when you price your property and market it online are huge to ensure you’re getting the most money.

Staying competitive with other investment properties is huge when it comes to the overall success of your property. If you have any questions about pricing your investment property or you would like TALK Property Management to do the heavy lifting for you, reach out to us! We want your real estate investment to be a success!

How To Become A Successful Landlord: Mastering The Basics

Being a landlord can be hard work, but it’s also rewarding when done correctly. And, as long as you have the skill and time to complete all of the tasks associated with managing your rental property, you can be successful as a landlord and save a little money in the process.

At TALK Management, we have mastered the many responsibilities of property management, and we handle all of the duties of our landlord clients so they can focus on what they do best (not having to be a landlord). If you get started as a landlord and realize it’s too much, we’re here for you, and we would love to earn your business. 

Now, let’s dive into some of the key factors of becoming a successful landlord. 

Set Up Your Business

Prior to purchasing your first property or signing your first lease, make sure your business is fully prepared on the backend. You want to set up things like asset protection, insurance, and your bank account to ensure your investment is protected and everything is set up as much as possible. 

Consider keeping a folder of your important documents for each property to keep everything organized and ensure you have everything you need to prepare for tenants.

Make The Commitment

Landlording is no small feat. It takes a lot of time, energy, and responsibility to be done correctly. Before you decide to become a landlord, make sure you have thought about what this will mean for you. When purchasing properties and selecting tenants, take the time to make sure your decisions are the right ones. Nothing should be done on a whim; you need to take the appropriate amount of time to make decisions that will make you money and help your business in the long run. 

Understand Your Tenants

Not only is it important to properly screen your tenants to make sure they’re the right fit, but you should also take time to connect with them and understand their wants and needs. Establish trust with them by always being transparent and having an open line of communication so they feel they can come to you with questions and concerns. It’s also important to understand what they expect from you and what you expect from them, including following the lease agreement terms and paying their rent on time. 

Handle Issues Appropriately

Regardless of how excellent your tenants are, there will be times when issues will arise. As much as we don’t want to deal with problems, it’s part of the business. When issues arise, it’s important to have the appropriate systems in place to ensure they’re handled efficiently and correctly. Taking issues personally doesn’t help anyone, so try to keep your emotions out of it and navigate problems appropriately. 

Reach Out To The Professionals

If you get overwhelmed by everything you need to do to be a successful landlord, contact the professionals at TALK Property Management. Here are a few of the value-added services we provide that can save you work, stress, and, often, money:

  • Rigorous tenant screening process to select quality tenants
  • Attend court proceedings on your behalf
  • Handle HOA correspondence and violations
  • 24/7 maintenance for tenants for emergencies
  • Utilize licensed professional vendors and handymen for maintenance issues

Being a landlord can be a gratifying job when done correctly. If you have any questions about becoming a landlord or need someone to handle property management services on your behalf, reach out to us! We would love to offer our expertise and services!

The Benefits of Staging Your Investment Property

While most investors might think staging their investment property isn’t worth the money, the benefits of staging can outweigh the cost. Deciding whether or not to stage your investment property is entirely up to you and your situation, but there are many pros to staging that could work in your favor in the competitive Austin real estate market.

Let’s dive into a few of the top pros to staging your investment property. 

Pro #1: Helps The Property Stand Out

Many investors aren’t utilizing staging for their investment properties, so staging yours will help you stand out among the competition. Potential tenants are more likely to look at your listing with staged photos over listings that aren’t staged because they’re more attractive and inviting, which helps them picture themselves living there. 

Pro #2: Increases The Value

Staged properties offer a more move-in-ready vibe that many potential tenants are more willing to pay for. In addition, they tend to have higher rental rates, meaning you can potentially charge tenants more money to live there. This means you could be marketing to tenants with higher incomes and higher quality tenants. 

Pro #3: Less Turnover & Vacancy Rates

Investment properties that are staged tend to attract more involved tenants who are looking for long-term rentals. Attracting this type of tenant can reduce your turnover and vacancy rates, meaning less stress on you and more money in your pocket over time. 

Pro #4: Shows You Care

Starting on a good note with tenants is huge. Taking the time to stage your investment property shows you’re willing to put in the effort to show the home in its best light. This sets you up to be viewed positively by potential tenants and shows you care about your tenants, their comfort, and the property.

If you have any questions or need ideas on how to stage your investment property, reach out to us! We would love to offer our expertise! 

Summer Maintenance Tips For Your Investment Property

Summertime is just around the corner! Summer is usually the time of year when people are looking to move into a new property or renew their existing lease agreement, making it the perfect time to schedule annual inspections and handle any issues or repairs.

Here are some tips to prepare your investment property for the summer.

Inspect HVAC System

The last thing you need as a landlord in the summer is your tenants complaining the air conditioner is broken on the hottest day of the year. Do yourself a favor and have your HVAC system inspected by checking the filters and cleaning out the coils. If you don’t consistently maintain your HVAC system, it can start to lose efficiency, making utility bills higher than usual. 

Clean Out Dryer Vents

If you have a laundry room in-unit or in the building, having the dryer vents cleaned out is a good idea. If our tenants notice their clothes take a little longer to dry or are hotter to the touch when removed from the dryer, these are signs to have the dryer vents cleaned. This tends to be forgotten, but it doesn’t take long to do and can prevent dryer fires, saving you time and money down the road.

Tend To The Yard

Make sure your curb appeal looks its best by sprucing up the landscaping and taking care of the lawn. Take time to mow the lawn, remove overgrown weeds, and trim back bushes. In addition to lawn maintenance, you might want to have the sidewalks and patios power washed so they’re nice and clean for your tenants. This is important to do throughout the year, but more important now when tenants will be spending more time outside.

Handle Repairs 

Minor repairs like chipping paint or broken handrails are important to handle now, so everything is fixed for new or existing tenants. If you have multiple properties, do a walkthrough to ensure nothing has gone unnoticed and everything is in working order for summer.

Once these summer maintenance tips are handled, you can enjoy your summer! If you have any questions or need recommendations on preparing your properties for summer, reach out to us! We are always here to help!

Benefits of Month-to-Month Tenants

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?

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

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

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.

2022 Color of the Year: Evergreen Fog

Evergreen Fog is the 2022 Color of the Year. Next year’s color is a mid-tone grey-green. 

Why Evergreen Fog

Sherwin-Williams chooses the color of the year by researching design trends around the world. The trends they found were warm neutrals, sustainability and organic living, and organic textiles and natural materials. The color is found in the following color collections:

  • Pottery Barn – Fall/Winter 2021
  • Pottery Barn Kids – Fall/Winter 2021
  • Pottery Barn Teen – Fall/Winter 2021
  • West Elm – Fall/Winter 2021

Sherwin-Williams found that people are leaning into using more color in their homes. From Pinterest and Google searches, there’s been more interest in greens. Green varies from rich and diverse colors that can appeal to everyone. The color adds depth and interest to a space while also mimicking nature and providing a calming hue. 

Where and How to Use Evergreen Fog

Evergreen Fog works excellent when paired with natural materials like textural linen and wool. It would be a great splash of color in a home office, living room, or bathroom as a subtle statement shade. It could also be used in a bedroom, as a soothing color to promote relaxation. All in all, it’s the perfect shade of grey-green that feels elegant yet comfortable. 2022’s color of the year pairs best with other earthy neutrals like white, beige, a room with light wood tones with darker elements like matte black fixtures or bronze fixtures. It coordinates best with these Sherwin Williams colors: Neutral Ground, Dried Edamame, and Ethereal White. 

When you work with TALK Property Management, we make your investment property ready and can help you remodel. We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com

Photo credit to Sherwin-Williams website.

What Does A Homebuyer Pay for in Closing Costs in Texas?

Home prices have begun to stabilize in Austin! According to the Austin Board of REALTORS® July stats, the median home sales price is $480,000. This is $2,364 less than the previous month. If you’re ready to buy as a homeowner or an investor, read what you’re paying for in your closing costs. 

Title Company Fees for Homebuyers in Closing Costs

These are the following fees your title company will charge you and what you are responsible for paying as the homebuyer. 

Escrow Fee

The buyer and seller will pay their own escrow fee to the title company to process the sale’s closing. 

Endorsements

Endorsements are expanded coverage with a title company’s insurance policy to help cover the specific needs of the transaction. Depending on your title company and unique situation, this price can be as low as $30 or as high as hundreds or thousands of dollars. 

Recording Fees

Once the sale is finalized, documents need to be sent to the county. This can range from $120 to $160, but it will depend on the county. 

Appraisal Fee

The buyer typically pays for the appraisal, and it can range from $500 to $700. The lender you choose will most likely want an unbiased third party to appraise the property to ensure the property’s value matches the contract price. 

Credit Report

A buyer will pay the $50 to $75 fee for their credit report to be pulled.

Lender’s Document Preparation 

This $100 to $120 fee is paid to the lender for creating and organizing all the closing documents. 

Escrow Accounts for Homebuyers

If you’re putting down less than 20% for a down payment, the lender will require you to place your taxes and insurance into an escrow account at closing. As a homeowner, you will pay your taxes and monthly insurance to your lender directly using the escrow account. When the taxes and insurance are due, the lender will use the money from the escrow to pay them on your behalf.

Homeowner’s Insurance

Depending on the property and the coverage you choose, the price can range from $900 to $2000 per year. 

Property Taxes

At closing, the seller will pay the buyer a year-to-date prorated amount for taxes. For example, if the closing happens on October 1st, the seller will give the buyer credit for ten months since the seller owned the property for ten months of the year. The buyer is then responsible for paying the difference between the credit and the total tax bill at the end of the year. Your lender will require several months of taxes in the escrow account. 

If you’re ready to buy or invest in Austin area real estate, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com