Category: TALK Services

Investment Tips For Beginner Real Estate Investors

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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 Using A Property Management Company

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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

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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.

4 Real Estate Investment Mistakes To Avoid

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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

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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.

How To Make Your Rental Property Feel Like Home

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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

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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

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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.

Maximize Your Profit With These Rental Property Upgrades

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Landlords are always thinking about upgrades they can make to their rental properties that will increase their rental income and make their lives easier in the long run. But which upgrades are worth your time and money? Let’s look at four upgrades that will keep your tenants happy and increase your rental income and property value.

Upgrade Flooring

Replacing the carpet with hardwood flooring will increase your value and save you time. Carpet can stain and tear easily, making it more prone to need replacing. Hardwood flooring is easier to clean and more long-lasting. Installing hardwood flooring can be expensive up front, but it will save you time and money in the long run.

Fresh Paint

Painting rooms in your rental property can make a huge difference and make your rental property more appealing. Neutral colors like gray or beige with white trim go with all kinds of decor and are colors that tenants tend to gravitate towards. 

Update Kitchen & Bathrooms

The two rooms that tenants like to see updated are the kitchen and bathrooms. This can get expensive, but luckily, you don’t have to update everything to make a good impression. Small changes in the bathroom, like updating the toilets, vanity, or sink, or kitchen updates, like cabinetry or countertops, are all you need to give these rooms a new look.

Increase Energy Efficiency

Tenants will appreciate energy efficiency items like Energy-Star certified appliances or new windows as they will help lower their utility bills. Replacing old appliances will save you money on maintenance issues in the future. New windows are more aesthetically pleasing than old ones, and cold drafts from the old ones can cause higher utility bills.

As you can see, there are a lot of different upgrades that can benefit you and your tenants. If you have any questions or need recommendations, reach out to us! We are always here to help.

4 Rental Property Market Trends To Watch In 2023

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With the new year comes key themes and market trends that have carried over from 2022 and will continue to affect rental properties in 2023. While rent prices in Greater Austin have increased since the pandemic, we noticed a cool down at the end of last year that is promising coming into the new year. 

Take a look at 4 of the top rental market trends to watch in 2023:

Record High Inflation

Inflation is at a 40-year high, and everyday items like food and gas cost more than they used to. The price increase is causing renters to struggle with household expenses and paying their bills on time. Property managers should watch how high costs rise and have an open line of communication with renters, both of which will play vital roles in property management going forward.

Mortgage Rates May Continue To Rise

Rising mortgage rates have made it difficult for some would-be buyers to purchase homes, so they are turning to renting. As much as this affects buyers, it affects sellers’ plans, too. Sellers are shifting their plans to sell, and many are looking to rent out their homes since many buyers cannot afford them. 

Renters Looking For A Diversified Space

Working from home remains prevalent going into 2023, so many renters are looking for more diverse rental properties. In addition to a home office, renters are looking for properties with outdoor space, larger kitchens, and flex spaces. 

Single-Family and Suburban Area Rentals

Due to high inflation, rising mortgage rates, and remote work, renters are coming from many different age groups. While most renters are millennials, many baby boomer renters are tired of the upkeep of a home. This is leading renters to look for single-family properties in suburban areas.

While none of these trends are necessarily new, they are still important to think about going into 2023. If you have any questions or need recommendations, reach out to us! We are always here to help.