Benefits Of Using A Property Management Company

Posted on June 22, 2023June 22, 2023 by author

While owning an investment property can be a great source of income, it can come with some stressors. If you decide to handle all of the landlord responsibilities on your own, that means dealing with tenant screening, rent collection, marketing, requests, and more, which takes away time from finding your next investment or working with other clients.

Property management companies provide many benefits that will help save you time and stress. Let’s dive into why hiring a property management company is the right thing to do.

Tenants

Tenant screening can be very time-consuming and complex, which is one of the biggest reasons investors hire property management companies. Property managers do screening all the time, so they know exactly what to look for when scoping out high-quality tenants. They look for long-term tenants who will pay their rent on time and cause limited issues. If any problems arise, property managers will be the point of contact for tenants and address issues accordingly.

Rent Collection

One of the most uncomfortable landlord responsibilities is chasing after rent if it isn’t paid on time. Property managers handle that for you by collecting rent, enforcing lease policies, and handling evictions if necessary. If tenants are consistently not paying their rent promptly or are failing to pay it at all, property managers will know how to handle it appropriately.

Marketing

Property management companies handle all the marketing to get your property in front of the most people. They will take high-quality photos of the property, write up rental ads, and list your property on the most prominent websites where tenants are looking. Some property management companies, including Talk Property Management, will run a comparative market analysis on the property and recommend a starting rent amount based on current market trends to make sure you’re in line with the competition.

Shorter Vacancy

Property managers know how to keep tenants happy, leading to more long-term tenants and shorter vacancy periods. If property managers take care of issues and repairs in a timely manner and are quick to respond, tenants are more willing to stay in their lease when reasonable rent increases arise. Ultimately, tenants don’t want to deal with the stress of moving, so if they are well taken care of, and their needs are met, they’re more than likely to stay.

Property management companies can be a big help if you’re starting out or handling multiple investment properties at once. If you have any questions or need recommendations, reach out to us or read more about our property management services! We are always here to help.

Top Features Tenants Look For In A Rental Property

Posted on June 14, 2023June 14, 2023 by author

Whether you’re purchasing your first rental property or your 10th, you want to ensure the property attracts tenants. In addition to location and accessibility to highways and amenities, certain interior features will help steer tenants toward your Greater Austin area rental property.

Let’s dive into a few of the top features tenants look for in a rental property.

Open Floor Plan

One of the top features homeowners look for when purchasing a home is an open floor plan, and tenants are no different. Tenants want to be able to have a place to entertain, and it allows them to be more flexible with their furniture and decor. Many people are still working from home, so having an open space to add an office area is helpful.

Upgrades

When you hear upgrades, you probably think of dollar signs, right? If you have the funds to update everything, the more, the merrier! However, a few upgrades can go a long way. Cosmetic updates like new flooring and fresh paint are huge for tenants. If you want to take it a step further, tenants also look for bathroom and kitchen updates. If you have an older property, consider updating mechanical items like plumbing, HVAC systems, and wiring to save yourself some time and money down the road.

Included & Updated Appliances

Having appliances included in your rental property means less money your tenants will have to spend on them if they don’t already have them. Tenants will be impressed to see appliances included, especially if they are nicely updated. If you already have appliances and they are dated, consider updating them. In addition, having an on-site washer and dryer is becoming more common among rental properties. Being able to do your laundry at home instead of going to the local laundromat will save your tenants time and money.

Storage Space

Tenants always appreciate having extra space to store their items. Nothing is worse than putting things in the corner of your living room or bedroom. Not only does it look messy, but it takes up space that could be used for entertaining or additional decor or furniture. Make sure your rental property has a basement, attic, or lots of closets for storage.

Make sure to keep these features in mind when you purchase your next Greater Austin area rental property. It will go a long way for tenants! If you have any questions or need recommendations, reach out to us! We are always here to help.

Summer Maintenance Tips For Your Investment Property

Posted on May 23, 2023May 23, 2023 by author

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!

Common Mistakes For First-Time Home Flippers

Posted on May 16, 2023 by author

Flipping a home is one of the most common ways to get started in real estate investing, but if it’s not done correctly, it could cause more time and money than it’s worth. You wrote a strong offer, the sellers have accepted the offer, and now you have to decide what to do next while avoiding major mistakes or setbacks.

Let’s look at three of the most common mistakes for first-time home flippers.

Not Doing Proper Research/Developing A Plan

Many assume flipping a home is easy; the most challenging part is finding the home, right? Wrong. You need to do a lot of research upfront to ensure everything runs as smoothly as possible. Take some time to develop a plan so you know exactly what projects you want to complete and the estimated timelines for each one. Remember, there will be some setbacks, but having a plan from the beginning will help with your overall expectations.

Underestimating The Amount Of Time It Will Take

Flipping a home can be very time-consuming, and it’s not something you can do as a part-time job. Finding a home can take months, and renovating the property can take longer, depending on potential delays. After that, you must complete inspections before selling it to ensure everything is up to code. Once it’s on the market, it could take months to sell again. Don’t think this will happen overnight; it takes a lot of time if done correctly.

Not Having Enough Money

There’s more to flipping a home than just having money for the home and the renovations; you will need to make mortgage payments, pay property taxes, and often pay homeowner’s association fees, depending on the location. Keep in mind, you will also need to pay for utilities and any additional maintenance that’s needed while you’re renovating the property. Not to mention, if you have delays or setbacks, that could mean additional money out of your pocket to fix the mistakes. Make sure you have enough money saved up before getting started, or you could have major issues down the road.

Rental properties can be great investments to add to your portfolio if done correctly. If you have any questions or need recommendations on how to get started, reach out to us! We are always here to help.

Rental Property Red Flags

Posted on April 27, 2023April 27, 2023 by author

Investing in real estate properties is a great way to make money and build your portfolio, but it can also end badly if you don’t see the red flags. The last thing you want to do is overlook potential issues, purchase the property, and find out down the road that there are bigger issues than you originally thought.

Before purchasing a property, do your due diligence and avoid these four red flags.

Bad Location/School District

Homes located in less-than-ideal locations with high crime rates tend to be avoided by potential renters. They don’t want to be concerned for their safety or worry about their property being destroyed. When renters are looking for properties, they usually look within the school district where their children go for the ease of getting them on the bus or to school in the morning. If they can’t find anything in their school district, they will look in highly-acclaimed school districts, which could mean they would miss your property altogether.

No Interior Pictures Online

When looking for properties to purchase online, keep an eye out for properties with beautiful exterior pictures and no interior pictures. This is a huge red flag because it makes it seem like they’re hiding something. Even if you know the property has a great floor plan and awesome amenities nearby, it suggests the inside of the home isn’t in good condition or wasn’t well taken care of.

Dysfunctional Layouts

Renters want their property to feel like a home, and having to walk through a maze to get around is a huge red flag. When looking at properties, renters like to see open floor plans and layouts that make sense. If you can only get to your bedroom by walking through the kitchen, or the only bathroom is on the main level when the bedrooms are upstairs, it’s not a good choice.

Questionable History

If you look up the property and see multiple owners have owned it over the past few years, this could imply it’s difficult to keep occupied or has underlying issues. In addition, if the disclosure sheet doesn’t provide much information on the property or the repairs that were made, it could mean more repairs for you in the future.

At the end of the day, make sure to do your research before purchasing your rental property. It will save you time and money in the long run! If you have any questions or need recommendations, reach out to us! We are always here to help.

4 Real Estate Investment Mistakes To Avoid

Posted on April 13, 2023 by author

If you’re just getting started investing in the real estate world, you’ll quickly learn it takes a lot of hard work and is not something that happens overnight. You have to make sure you have the knowledge, expertise, and determination to succeed. In addition to knowing what will help you succeed, it’s helpful to know what mistakes will not.

Let’s dive into a few common real estate investment mistakes and how to avoid them.

Failing To Do Your Research & Make A Plan

It’s easy to want to dive head first into investing. You may think you know enough to start, but you’ll quickly learn you might be in over your head. Doing extensive research and making a plan are two of the most important things to do when you’re first getting started. Whether you want to flip homes or become a landlord, there are many ways to invest in real estate, and you need to look at all options before creating a plan and a strategy.

Overpaying For A Property

Going along with doing your research, if you don’t properly research your local market, you could find yourself in a situation where you overpay for a property. If you find a home that fits your exact criteria, it can be easy to write an offer immediately without thinking. It’s important to take a step back, look at what similar homes have sold for in the area, and make sure you’re getting a good deal.

Thinking You Can Do It All Alone

Building a skilled team to help you along the way is essential. Make sure you have connections with a real estate agent, lender, title company, home inspector, appraiser, and more. If you’re not going to handle landlord responsibilities yourself, you will need a landlord. Also, if you’re looking to flip a property, having the right contractors on standby (electrician, roofer, painter, lawn maintenance company, etc.) is important. Not having these people on hand will create more unnecessary stress and work you don’t need.

Focusing On One Specific Area

Many first-time investors tend to stick to one particular area or city because they’ve heard it’s a profitable area or it’s an easy commute to their home. However, sticking to one area can limit the number of possible homes that could meet your criteria in other areas. Expanding your search to include multiple cities will be better for you in the long run and make it easier to find the perfect property.

It can be easy to make mistakes if you don’t do your research, but with the right tools and people in your corner, you will be successful. If you have any questions or need recommendations, reach out to us! We are always here to help.

4 Questions To Ask Yourself Before Becoming A Landlord

Posted on March 22, 2023 by author

Investing in real estate is one of the most dependable ways to build wealth, but it’s important to know all the ins and outs before getting into it. Set yourself up to be successful by researching and making sure it’s the right choice before you purchase your first rental property.

In the midst of your research, ask yourself these four questions before starting your journey as a landlord.

Do You Have Enough Time?

Being a landlord isn’t as easy as buying a property and finding tenants; there is a lot more to it than that. If you are going to update the property before finding tenants, you’ll be taking calls and coordinating contractors to come out to the property. Once you have tenants, they’ll call if something needs to be fixed or something goes wrong, and those calls could come any day at any time. As the landlord, these are all things you will need to handle quickly to keep your tenants happy.

Remember, the more properties you own, the more calls you’ll take and the more issues you may need to handle.

How Will You Screen Potential Tenants?

Making sure you choose the right tenants is important because you want to make sure they will take care of the rental and pay their rent on time. While it might cross your mind to let whoever replies to your online ad first move in immediately, that is not the smartest idea. As the landlord, you want to screen prospective tenants by performing background checks, checking credit scores, confirming income and job details, and calling previous landlords to make sure they’re the right fit.

Do You Have Legal Counsel Lined Up?

While you hope to never have to call your lawyer, it’s important to have one lined up that specializes in landlord-tenant issues. If nothing else, having a lawyer review your leases and ensure all paperwork complies with local laws is helpful. There may come a time when you have a tenant who doesn’t pay their rent, and in this case, an experienced lawyer will be a huge asset.

What Is Your Why?

Understanding why you want to be a landlord is important for success. Are you doing this on the side to make extra money, or do you want to do it as a full-time job? Will the time you’re putting into being a landlord and the potential issues that could come up be worth it? Keeping your why at the forefront is important as you purchase your first rental and continue becoming successful.

Becoming a landlord is hard work, but the rewards will be huge if everything works in your favor. If you have any questions or need recommendations about how to start investing and becoming a landlord, reach out to us! We are always here to help.

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How To Make Your Rental Property Feel Like Home

Posted on March 13, 2023March 13, 2023 by author

Living in a rental property, sometimes it can be challenging to make the house feel more like a home. Many landlords have rules against painting or putting nails in the walls, which leaves you wondering what you can do to make your rental property feel more like yours.

Let’s take a look at 4 design ideas to brighten up your rental property and make it more inviting.

Create An Entryway

Entryways are a great way to welcome guests and set the tone for the rest of your home. If you have space, set up a table with a lamp and decorative flowers. This is a great way to add color and your personal touches that guests will notice as soon as they walk in.

Brighten Up With Color

Many rental properties often have neutral wall colors and flooring. Just because you can’t paint the walls doesn’t mean you can’t add color! Try adding bold curtains or bright-colored pillows to add some personality. A new rug is another great way to add color and would be a great addition to warm up your living room.

Let There Be Light

Lamps and lighting can help you see your rental property in a new light. If your landlord will allow it, try switching out the dining room or kitchen lighting with a new modern lighting fixture. If not, adding lamps to fit your style will help brighten things up. Natural lighting is also a game changer, so try replacing the original blinds and curtains with sheer white curtains to lighten up the home.

Removable Wallpaper & Contact Paper

If you don’t want to put in the time to do an entire room, remember that a little can go a long way. Try adding an accent wall in your kitchen or living room or updating your countertops with contact paper. If you don’t like it, it can easily be removed, and you can try a new design!

There are various ways to spruce up your rental, but incorporating these four ideas will make a world of difference! If you have any questions or need recommendations, reach out to us! We are always here to help.

How To Create An Eye-Catching Rental Property Online

Posted on February 15, 2023February 15, 2023 by author

Your rental property is nothing until you get tenants and start generating income. Of course, to get tenants, you need to advertise your rental property online. Sounds easy enough, right? Not with all the other Greater Austin rental competition out there!

Let’s look at a few things to consider when creating your online advertisement to spark interest among prospective tenants.

Focus On Your Target Market

When creating your online ad, think about who you’re marketing to and highlight the things that are important to them. For example, if you’re targeting families, talk about nearby amenities like schools, parks, and more. This will instantly reel them in and make them want to continue reading to learn more about the property.

Make sure to focus on the best features of your property and the benefits of living in your property over others on the market.

Have A Structured and Catchy Ad

Short, sweet, and to the point applies here. Here are a few items you want to make sure are included in your ad:

Attention-Grabbing Headline (one sentence or less)
Unit Specifics: Number of bedrooms and bathrooms, square footage, & unique features
Features and Amenities: Highlight the best features & in-unit amenities
Location: Where is the property located & what nearby amenities are there
Rent, Utilities, Security Deposit: Mention monthly rent & security deposit amounts, as well as any other fees, plus the utility policy (included or not)
Pet Policy & Restrictions: Are pets allowed? Are there other restrictions (noise, parking, smoking, etc)?

Show Your Property At Its Best

Photography is key. If you can’t have professional photos taken and take them on your own, take horizontal photos to make your property look bigger and use natural lighting whenever you can. Staging can also help as it helps prospective tenants envision themselves living in the home.

Next time you are going to post an ad online to promote your rental property, remember these ideas. If you have any questions or need recommendations, reach out to us! We are always here to help.

Top Neighborhood Features of a Profitable Investment Property

Posted on February 9, 2023 by author

If you’re considering purchasing your next investment property for your portfolio, you’re probably wondering how to decide which Greater Austin neighborhood it should be in. There are many factors to consider, but which factors should you focus on to ensure your property is profitable?

Neighborhood & Amenities

One of the main factors is researching the neighborhood and its proximity to amenities. You want to ensure the neighborhood is located in a low-crime area with affordable taxes and a good school district. Living near schools, parks, restaurants, and shopping will attract more renters overall. However, if the neighborhood is near a university, this could be a positive for some, but also a negative. This is because students will dominate your pool of potential tenants, which could make it challenging to fill vacancies when summer rolls around.

High Listings & Vacancies

If the neighborhood you are looking to purchase an investment property in has a high number of listings and vacancies, this could signal a declining neighborhood. Not only does it make it difficult to get tenants, but you may have to lower your rent prices to fill your vacancies. Low-vacancy neighborhoods are more popular for renters and are harder to get into, which justifies higher rent prices.

Average Rent Prices

Speaking of rent prices, make sure to do your research on the area to stay in line with your competition. Renters are usually more inclined to go with the lower rent price if it’s in an attractive neighborhood. Try to gauge where the neighborhood will be in the next five years to ensure the money you’re bringing in from rent is enough for all the upkeep of your mortgage, taxes, and other expenses.

Financial Stability

Look for neighborhoods with stable economic conditions, low unemployment, and low crime rates, as these areas generally have high cash-on-cash returns. Neighborhoods near large businesses with growing job opportunities tend to attract more tenants and are a good sign that the area is growing and stable.

In addition to these factors, there are plenty of others to consider before you write an offer for your next Greater Austin area investment property. If you have any questions or need recommendations, reach out to us! We are always here to help.