Category: Owner Resources

Benefits of Owning A Vacation Rental Property

Posted on by author

Investing in a vacation rental property is one of the best ways to diversify your portfolio and income streams. While it might cost some money and take some work upfront, vacation rentals have many benefits and can work well for you in the long run.

Let’s dive into some of the personal and financial benefits of vacation rental properties and see if they’re the right choice for you.

Long-Term Wealth

We all strive to build long-term wealth, right? One of the most effective ways to build long-term wealth is through real estate, and vacation rentals typically don’t require a large cash outflow. Many investors opt to leverage mortgage financing, and over time, your guests help you pay down the mortgage and grow your short-term rental property’s equity.

Home Equity

Speaking of equity, vacation rental properties can help you build even more equity that can be used on down payments for more properties, home improvements, and more. While the housing market and home values can fluctuate, depending on where you decide to purchase your vacation rental property, the likelihood of your home value increasing is high, meaning more equity in your rental.

Tax Benefits

Owning a vacation rental property comes with many tax benefits and write-offs. If you utilize the property as a true second home, your mortgage interest and property taxes may be tax deductible. In addition, many of your expenses for things like maintenance, repairs, and improvements can be written off. Consult with a tax professional to learn all the ins and outs of tax benefits. 

Dual Usage

There’s more to vacation rental properties than just business and financial benefits. You can also use your vacation rental property when you need to take a little getaway from reality. This provides a great home away from home to create memories, host family and friends, or just have some much-needed relaxation time.

Vacation rental properties come with many perks and can be an excellent option for your next investment! If you have any questions or want to learn more, we would love to provide our expertise and help in any way we can! 

How To Become A Successful Landlord: Mastering The Basics

Posted on by author

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!

Investment Tips For Beginner Real Estate Investors

Posted on by author

Investing in real estate is a great way to create a passive income and generate generational wealth. It’s a low-risk investment that can be very exciting for new investors. However, if you’ve never invested in real estate before, it can be challenging to navigate, so it’s important to be as knowledgeable as possible before diving in. 

Let’s dive into a few tips to help you through your real estate investing journey.

Team Up With Professionals

One of the biggest mistakes you can make is trying to do things alone. Don’t spread yourself too thin trying to do it all. Sit down, meet with a few real estate agents, and pick the best for you and your goals. They will be able to help you find properties and negotiate better than you can on your own. Once you find the property, make sure you have trusted contractors lined up to make any repairs or updates. 

Establish A Clear Budget & Criteria

Looking at properties can be exciting, and it can be easy to jump into something too quickly. Once you establish your budget and the features you want in a property, stick to them! Don’t purchase a property over your budget or outside your criteria; it will only hurt you later. 

Diversify Your Portfolio

It can be easy to stick with one form of real estate investing, even though there are lots of options to choose from. Flipping a few properties in a row is nice to get your feet wet, but venture out into other possibilities like rental properties, commercial properties, and more. In addition, invest in different geographical areas to reduce your portfolio risks and make sure you don’t get too comfortable in one area.

Build Your Network

In real estate, you will meet many real estate agents, real estate attorneys, lenders, and more. Take advantage of any interaction you have because you never know what opportunities could come from them. Whether you need real estate advice down the road or they know someone selling a property you might be interested in, it’s beneficial to make connections. 

 If you have any questions about investment tips as a beginner real estate investor, reach out to us! We are always here to help.

Benefits of Buying An Investment Property Before Your First Home

Posted on by author

Purchasing your first home is an exhilarating moment and a huge life milestone, but with all the excitement comes the financial side. Homes are expensive and require monthly mortgage payments, property taxes, unexpected repairs, home updates, and more. 

Many people consider purchasing an investment property before buying their first home to help with their financial commitment. Let’s dive into a few benefits below.

Cash Flow

The biggest benefit to buying an investment property before your first home is the monthly cash flow they provide. Purchasing an investment property and finding tenants to rent it out can provide a steady stream of income that can help you save up for future investments, like your first home. 

Build Equity

Another huge benefit is building equity. Investment properties allow you to get your foot in the door and build equity until you can afford to purchase a home in the neighborhood you want. As a property owner, you can eventually leverage enough cash for the home you want and have more opportunities for mortgage loans. 

Tax Benefits

Owning a rental property also comes with many tax benefits. One of the biggest tax deductibles for property owners is interest, including on your mortgage loan or if you use a credit card. 

Other tax benefits include:

  • Operating expenses
  • Cost of repair
  • Use of personal property
  • Travel expenses
  • Legal services

Increase Your Wealth

While real estate investments can require a lot of dedication and patience to be successful, they can increase your overall wealth. Real estate investments appreciate over time, which is excellent for your future wealth when you sell the home.

If you have any questions about purchasing an investment property before your first home, reach out to us! We are always here to help.

Common Mistakes For First-Time Home Flippers

Posted on 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.

High-Value Home Improvement Trends for 2022

Posted on by author

Homeowners are constantly looking for creative ways to distinguish themselves from the competition and increase their home’s value. Home improvement is one of the most effective ways to upscale your property. 2022 brings a distinct set of home improvement trends that all real estate investors should keep in mind.

Bringing the Office Home

With remote and hybrid work becoming the new norm, homes need to be multipurpose even more than before. In order for their homes to seamlessly transition between an office space and their comfortable homes, owners are enhancing their home offices and even transforming their kitchen countertops into professional workstations.

The Cozy Outdoors

Homeowners in 2022 want the comfort and convenience of their indoors to spread to their outdoor patios, porches, and even backyards. Large fireplaces, unique gardens, and elegant seating areas protected from the weather by pergolas are all elements that could enhance these outdoor spaces.

An Accent of Wallpaper

Buyers are looking for ways to showcase their individuality, and wallpaper is stepping up to the plate. A cost-effective option that can save homeowners quality time, wallpaper is used as a bold accent piece to catch visitors’ eyes and pop against the rest of the home.

A Personal Spa

Tranquil, spacious, spa-like bathrooms are taking the home improvement market by storm. Consider calming bathrooms with huge bathtubs as the focal points and numerous cabinets and shelving to keep the space orderly and clean.

Home improvement is undoubtedly a worthwhile investment for first-time and seasoned homeowners. Follow these 2022 trends to add value to your home and entice new buyers. If you need help selling your home or are looking to become a homeowner, contact us today!

5 Ways to Make Your Home Feel and Look New This Spring

Posted on by author

Whether you’ve lived in your home for years or are looking to sell this spring, we’re sure you’re tired of looking at the same walls for years on end. A new study discovered that homeowners now spend about 13 years in their homes. This is a considerable increase of about ten years compared to a decade ago. Many factors determine the length of homeownership: older homeowners aging in place, a home supply shortage, and more affordable housing payments if homeowners refinanced and took advantage of the low mortgage rates last year. Whether a seller or homeowner, here are 5 ways to bring your home back to life and make it feel and look new this spring!

1. Paint the walls

Paint is the most cost-effective way to make a massive difference in any room. This will be especially noticeable if the walls are chipped or show other flaws. 

But choosing the right paint color is the key to success. For a color that goes with everything, earthy colors or tinted neutrals are the colors you want. Both color types are soothing and easy to mix and match in your home. If you want to give off the illusion of more space, then off-white will be your friend.

If you’re selling this spring and want to attract homebuyers, it’s best to avoid colors that trigger a love-it or hate-it reaction. Think of trending colors like mint green, yellow, baby blue, etc.

2. Update the kitchen

You don’t have to renovate your entire kitchen to make it feel new, either! A few replacements and upgrades will help give it a new look. Some ideas are replacing old kitchen cabinets and handles with modern hardware, installing a touchless faucet, or installing or updating the backsplash. 

3. Replace outdated light fixtures

Any REALTOR® or photographer will tell you that lighting is essential. Lighting has a significant impact on a room by defining the room’s look and feel. Lighting fixtures go out of style, too, so consider replacing old chandeliers, sconces, and pendants. It’s also a good idea to replace the light bulbs themselves, depending on the mood you want for the room. For bedrooms, it would be beneficial to use soft-white bulbs, while the kitchen could benefit from daylight bulbs. Don’t forget exterior lighting either!

4. Increase curb appeal

Did you know homes with high curb appeal sell for 7% more than houses with a less than pleasant exterior? Your home’s curb appeal is people’s first impression of your home, and you know that saying, “you only get one chance to make a first impression.” And that’s true with homebuyers this spring! Increase your home’s outside appearance by adding landscaping or changing what’s already there. If you don’t have a green thumb, a simple task like trimming trees and shrubs will still make a big difference. 

5. Replace the carpet 

According to a March 2021 poll by the National Association of Home Builders, most homebuyers prefer hardwood floors. 32% said hardwood floors in the main living area is a “must-have”! So if your flooring needs a tune-up, consider removing the carpet and going for hardwood. Another option is to restore the original hardwood floors found under the carpet. Laminate hardwood floors are less expensive than natural wood and easier to maintain if you’re on a budget. 

If you need help sprucing up your home this spring to sell your home, contact us! 

How Your Home Can Make You Money

Posted on by author

Owning a home gives you a sense of security, a place to call home, and regular monthly payments as you build equity and your investment portfolio (investor or not), but there’s another unknown benefit; how your home can make you money. Here are ideas to generate extra cash using your biggest asset: your home!

1. Become an Airbnb host 

Becoming an Airbnb host is an excellent idea if you have the extra space. As an Airbnb host, you control how often and when you want to open your home. How much you earn will depend on how much space you’re renting out. Renting a house will get you more money than renting a bedroom. If you have a second property, listing a 4+ bedroom home can get you an annual income of about $29,000. If you go the Airbnb route, be sure to check the local laws to make sure it’s legal and if there are restrictions on home-sharing. 

2. Rent out your home

Keeping with renting, renting out unused living spaces is also a great income source. You don’t have to own a second home to be a landlord. If you have a finished basement, tiny home, or accessory dwelling unit in your backyard, these are all rentable options. You can also stick to the classic renting arrangement where you rent out a room and share facilities with the renter in your home.

3. Store other people’s stuff

If you don’t want people in your home, how about their stuff? People have a lot of things and do not always have the space to store them. Take advantage of that extra garage or shed space and rent it out. This is the easiest way to get some extra dough since there’s no maintenance or repairs compared to being a landlord. The space you have will depend on how much you can charge. Closet space can be $5 to $10 a month, while a garage or shed can be $100 or more a month. 

4. Charge for parking

If you have a prime location in a popular area of town, especially where parking is limited, like near a college university or downtown, you can capitalize on the need for parking! Neighbors, students, and office workers are a great source of reliable income since they’ll need a safe area to park their car regularly. According to specialized sites like Neighbor or Spacer, you can make as much as $200 to $500 a month renting out your parking space. Again, it all depends on location, though. 

If you’re looking for an investment opportunity or want to become a homeowner, contact us today! 

Benefits of Month-to-Month Tenants

Posted on 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! 

Two More Scenarios After Your Offer Is Accepted On A Home

Posted on by author

In our previous blog, we covered the more common scenarios that happen after your offer is accepted on a home. In this blog post, we’re covering the scenarios of what happens if you or the seller wants to back out. If a seller accepted your offer, congratulations! You are one step closer to owning a home or property. What happens now can vary, but I’ll cover the different scenarios below. 

Scenario 1: You Want to Back Out 

Contingencies will determine how easily you can withdraw. If you’ve already signed a purchase agreement, it’ll be a little harder to withdraw but it may still be doable. If a contingency in your offer isn’t satisfied, you have two options. The first is to renegotiate with the seller to reach a point of mutual agreement, or you may be able to withdraw the offer, depending on the accepted contract.

Contingencies can be a safety net for buyers, but you can lose your earnest money deposit if you don’t fulfill your buyer obligations. Obligations mean following the deadlines and timeframes outlined in the purchase agreement. 

In this competitive seller’s market, buyers have removed contingencies to make their offers more appealing to sellers. This means it will be harder to withdraw from the purchase agreement before closing. If there are no contingencies and you want to continue withdrawing from the contract, the seller has the right to retain your earnest money deposit. This is usually about 3% of the purchase price. For a $500,000 home, it could be a $15,000 loss. 

Scenario 2: The Seller Wants to Back Out

A seller could have many reasons to change their mind, whether it’s accepting a better offer or deciding to no longer sell. The key is the timing of when they want to back out. If the seller chooses to withdraw their offer acceptance before signing the purchase agreement, there’s not much you can do. Similar to scenario 3, if the seller wants contingencies, but both parties cannot agree to, the contract can be canceled. If the seller decides to back out after signing the purchase agreement, they won’t lose their deposit, but they could have a lawsuit as they have breached the contract. 

If you need help navigating this fast-paced seller’s market, contact me today! I’d love to help you find the home of your dreams this year. Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.