Category: Property Management Services

Property Managers Increasingly Using Virtual Marketing and 3D Tours for Austin-Area Rental Properties

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Like Austin home buyers, renters in the greater Austin area are increasingly using online tools like 3D tours to scope out rental properties and homes for lease, particularly in a constantly changing environment.

A recent study by Zumper, a rental marketplace, in conjunction with Matterport, a 3D virtual service, echoed that fact, with 72% of all renters expressing that they would rent a space without ever seeing the property in person if a 3D virtual tour was offered. In line with the trend, property managers are seeking more “non-traditional” ways to let potential tenants view spaces from the comfort of their laptop or mobile device.

According to ABODO, an apartment listing site, more than 60% of renters said that COVID-19 has negatively impacted their rental search. 30% of renters surveyed said that they prefer photos and floorplans to be delivered virtually or prerecorded videos of units (27%) over in-person unit tours (21%).

But it gets more interesting…according to the Zumper/Matterport study, 82% of property owners who have advertised a 3D walk-through expressed that they were able to lease their rental entirely virtually. Almost all surveyed owners acknowledged that potential tenants would likely demonstrate more interest in a rental listing if they offered a 3D virtual tour. Tenants surveyed validated that assumption with responses that showed a greater interest in rental properties that allowed virtual perusal.

The property management industry adapts as our environment evolves, and the greater Austin area is at the forefront of that movement. If you have questions about what TALK Property Management can do in locating and screening tenants for your Austin-area rental properties or how we serve our owner-investor client base, reach out to us anytime: dbrown@talkpropertymanagement.com or (512) 721-1094.
Source: Matterport.com and “Virtual Apartment Tours: The Industry’s Ultimate Guide for Property Managers,” ABODO, May 6, 2020.

Property Management Write-Off’s in 2020

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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

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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

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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:

 

When is it Time to Hire an Austin Property Manager? | Cost Versus Return

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Investing in Austin real estate is a great way to earn additional income. Once you’ve purchased a rental home, made any repairs necessary to ensure it’s safe and up to code, and secured renters, managing one or two homes can be simple for the experienced investor. But as your portfolio grows, managing more than a couple of properties or expanding your investment area can be overwhelming. When is it time to hire a professional to manage your Austin rental property?

If you are managing properties, you are most likely looking for the highest return on investment and watching your costs carefully. Balancing costs with investment takes careful consideration, and property management companies are both a cost and an investment. Here are factors to consider when determining when to hire an Austin property manager:

Time Versus Money

Rental homes require attention, attention involves time, and your time is valuable. It’s easy to recognize that managing one or two properties requires less attention than working with three, four, or more units. If you have the time but not the money, managing your own rental homes makes the most sense. If you have the money but not the time, hiring a professional should be on your to-do list.

Time Equals Money | Expanding Your Portfolio

The time it takes to manage multiple properties is time you can spend focusing on other ventures including a separate profession, searching for new rental properties, or higher-level management tasks. Instead of taking urgent calls, answering tenant questions, screening renters, or fixing toilets, your time can be spent expanding your portfolio, marketing, or networking. If your time is more valuable spent elsewhere, hire someone to take those management tasks off your plate, and increase the quality of your output. 

Expanding Beyond Your Current Geographic Location

Investing in Austin could be where you start, but if your sights start to focus further outside the city limits, your expertise, capability, and desire to travel may start to wane. Diversifying your portfolio is a smart investment but also requires diversification in management to help subsidize your knowledge base, maintain properties, and balance your time. Expanding geographically would be a time to hire a professional. 
Managing properties in Austin can be a lucrative business, but the best landlords and investors understand balancing costs, time, and knowledge. If you are managing multiple properties, are overwhelmed with management tasks, or considering expanding your portfolio, it’s time to hire a professional property manager. Contact Dona Brown, Talk Property Management, for a local Austin perspective that can help you navigate the area’s investment real estate market, manage your property with experienced ease, and set you on a course for success. 512-721-1094.

A Realistic Look at Austin Investment Opportunities in 2020

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If you are considering investing in Austin real estate as we approach uncertain times in the COVID-19 era, you need to be realistic and ask yourself the hard, honest questions. An economic downturn can offer opportunities for real estate investors where competition is lessened, and the number of those seeking rentals can increase. Investing in Austin requires a keen eye for opportunity, and now is the time to prepare to buy a rental property. 

First, an Austin investor needs to understand the current real estate market. Local REALTORS® have access to resources that an investor can use to study current trends. Consulting with an agent that works daily in Austin’s home buying and selling industry is key to making an informed decision. Recently, residential sales in the Greater Austin area have increased by 2.2% year over year, while the median price hit a spike of 11.7% compared to March 2019. The numbers indicate that the first of the year’s activities were on track to continue pushing the market to new highs. As the May selling kicks off, the housing market could start to see subtle or not so subtle changes due to COVID-19’s effect on the economy. No one has absolute answers, but we can strongly speculate a significant shift ahead. 

Second, those seeking to buy rental properties in Austin need to evaluate their financial situation honestly. Here are a few key areas to analyze:

  • Savings – can you cover at least three months of personal expenses, including having funds set aside for emergencies?
  • Job situation – are you in a stable position, or does your industry anticipate layoffs?
  • Assets – do you have assets that will become a burden and/or are you considering selling one or multiple assets first?
  • Liquidity – do you have readily available funds for a down payment, repairs, maintenance, and future mortgage payments?

2020 health concerns are creating unprecedented times but can also present opportunities for those intending on investing in Austin rental properties. For the realistic buyer, now is the time to prepare for those opportunities. If you need guidance from a local, experienced REALTOR®, contact Dona Brown and Talk Property Management. We serve in Travis, Williamson, and surrounding counties in residential sales and property management. Call 512-721-1094 for a free consultation. 

Property Management During COVID-19

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Property management in a normal market is a complex industry. There are several complicated moving parts from understanding the current real estate market to staying informed of changing leasing and fair housing laws. Now, take that complex market and add the impact of COVID-19, and property management has become a moving target. 

What do you need to know regarding leasing and property management in Austin during the COVID-19 concerns? 

Tenants who are having trouble paying rent or other fees due to COVID-19 complications can establish a temporary, flexible payment plan with property owners and landlords. As a Texas REALTOR®, you can access the agreement form by clicking here.

Although tenants have the right to ask for assistance in payments, they cannot refuse access to the property in fear of virus-related consequences. They must follow current agreements for entering the property, and if property owners choose to screen those viewing the home, they must follow fair housing guidelines. However, if the tenant is at a higher risk of developing an illness, they may have different rights. When considering accessing a home with a fearful tenant, property owners and managers should move slowly and carefully with respect for the safety of everyone involved. 

Residents struggling with the effects of current health concerns may find themselves well underwater; however, the Texas Supreme Court has suspended all eviction hearings through May 18th, 2020, as well as put other restrictions in place such as prohibiting posting evictions through May 25th, 2020.

An owner and property manager must pay close attention to evolving guidelines in handling tenant nonpayment issues. As health concerns twist and turn current tenant rights and leasing laws, income property owners need to stay up to date on the latest legislation.

If you have questions or concerns regarding property management and rental homes, please do not hesitate to contact Dona Brown with Talk Property Management. Our years of experience make us a reliable resource in Austin. 512-721-1094.

How to Lease Your Property Faster with Upgrades

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There is no doubt about it. Potential tenants are looking for more bang for their buck when it comes to renting these days. How does your property stand apart from other rental properties in your area? When it comes to the big picture, updating the interior and exterior of your rental property doesn’t have to have a huge price tag. It is the little things that renters appreciate. Here are some of the most common rental property upgrades you can make that will go a long way in attracting qualified tenants. 

Hardwood Floors vs. Carpet

Some of the best upgrades to do on a rental property in Austin include flooring. It is one of the first things most owners consider when taking on an update project. Even if the original shag carpet is still intact, now is the time to replace it. You’ll not only save yourself a ton of money in carpet cleaning fees; you’ll be able to install long-lasting floors that can withstand the test of time and tenant. Hardwood floors or vinyl planking that gives the appearance of hardwood are becoming more and more popular. However, some landlords are opting for a finished appearance of the concrete foundation as flooring.  

Paint Touch Ups 

Give the interior an updated look with a new, fresh coat of paint. Avoid bright accent walls or colors that won’t typically “go with everything” as your next tenant may have a completely different color scheme. Avoid flat paint if possible. High gloss paint is preferred as it is easier to remove scuff marks, and natural wear and tear Neutral colors go a long way in helping decide what color to update the walls. Use white glossy paint for the baseboards and door trims. 

Update the Cabinets

Consider updating the cabinet doors in the kitchen and bathrooms for a fresh look that will get your property leased in Austin. From the cabinet door to the modern hardware (or handles), you can avoid costly renovations by merely updating the paint, replacing the cabinet top, and changing out the doors. 

Replace Window Screens

It may seem like a small thing, and it is, but it will go a long way in providing that updated look to new prospects. Window screens should be replaced every few years as they take a lot of Mother Nature’s abuse. Consider energy-efficient window screens. That is always a huge selling point for tenants. If they think they can save money on utility bills, that is something they will factor into their decision. 

Replace Weatherstripping

Another small step to updating your rental property to attract ready tenants is to replace the weatherstripping to all door jams leading outside. It may not seem like much and is usually very inexpensive, but seeing that a landlord cares enough to ensure there aren’t gaps in the doorways is a considerable benefit in the minds of tenants.

Update the Curb Appeal

Whether you have a corner lot home for lease or have a condo for rent, curb appeal is what attracts ready tenants to your property. Make sure the exterior looks just as appealing as the interior. People want to feel at home after a long day of work. Make the entry welcoming. 

For more tips on updating your rental property in Austin so that it will lease faster, give us a call today to discuss more options at 512-721-1094. The Talk Property Management Team are experts when it comes to property management in the Greater Austin area. Let us put our expertise to work for you.

How to Know if a Property is a Good Investment

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Deciding to jump into real estate investment is just the beginning of a variety of decisions you’ll have to make. You’ll be surrounded by questions and things to ponder and consider. So, what is it that makes a property worth buying in order to rent out to tenants? What should you be looking for in a great investment property?

  1. Quick turnaround time – By this, we mean that you should be looking for homes that you can buy and have a tenant living there in no time. It can be costly and unwise to invest in a property that will need a ton of renovations before you can rent it out. It’s recommended to look for properties that will generate enough rent in 10 months to cover all costs or follow the “2% rule.” This is the financial rule that states that your monthly rent should be at least 2% of the total purchase price of a property.
  2. Check out the number of days homes are staying on the market as well as what other rentals are offering – If a neighborhood is seeing a decrease in the number of days on the market for homes being sold, this shows that the housing market in that area is heating up and could be especially desirable. On the other hand, if you see rental properties offering discounts and deals, this could be a sign that landlords are having a hard time filling the spots they have open and that the neighborhood isn’t ideal for tenants.
  3. Look into what else is available in the neighborhood – Big businesses spend a lot of money to scout out desirable neighborhoods that will sustain their company. If a Starbucks, Whole Foods, or trendy business is moving in, it’s a great sign that the area is booming and will bring tenants looking for a place to call home. If you’re looking at places in a college town, you need to know that you’re more likely to have a high turnover of tenants – people looking to stay for 1 – 4 years while they finish a degree. If you’re targeting millennials in a city, target your home searches to walkable neighborhoods that are close to public transportation and restaurants/businesses.

If you ever have any questions about real estate and investment properties, don’t hesitate to reach out to our helpful team. We’re here to ensure that your properties and investments are well taken care of.

Characteristics of a Great Property Manager

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Property management is not for the feint of heart. Though anyone can attempt to take on the challenge, only a select few will succeed and even fewer will manage to do it really, really well. When thinking about choosing a property manager, there are a few things to keep in mind. Here are the characteristics that make a great property manager stand out above the rest.

At TALK Property Management, We Believe a Great Property Manager is:

Trustworthy

Any property manager that isn’t concerned with working with you for the long term isn’t worth your time. The goal of a property manager should be to ensure your property is taken care of so well that you want to work with them again and again. Through their dedication to your investment, they will help ensure your property is not a worry for you, but something you can benefit from without having to think about it all the time. Let us take that stress off your hands!

Accountable

When it comes to your property, major work should never be done without your knowledge.  A property manager should notify an owner of anything that needs to be done with the home. There ought to be no surprises when it comes to your property. The same goes for any tenant issues that may arise during the course of the property management agreement. TALK Property Management will keep you up-to-date on any major events, repairs or tenant issues that occur during our management of your property.

Loyal

No matter how you find them, a property manager that is worth your time will get in touch with you. If you call, email or stop by their office they will make a point of getting back to you quickly with the answers you need. If you find yourself pursuing them, rather than the other way around, it is a sign of things to come. Make sure the person you choose is ready to show you they want to work with you!

Knowledgeable

There are a lot of ways to care for a property and make sure everything runs smoothly. From depositing rent checks to keeping up with repair bills and payments and beyond. This is necessary to keep everything in order and ensure a seamless transaction record. Not only are a property manager’s clients their priority, but the tenants of those clients are as well. With multiple properties and all those additional people to account for, a property manager worth working with will stay organized. This is the only way the are able to keep track of who needs what and when. As we always say, happy tenants mean long term renters.

Ultimately, a great property manager is there to make a property owner’s life easier. From tenants to billing, repairs and beyond, TALK Property Management’s goal is to ensure your investment is well cared for and occupied by quality tenants. We have your interests at heart. If you are ready to take the step toward property management, call us for a free consultation and let our team show you what we can do for you!