Tag: Austin Property Management Company

How To Open Spaces with Glass

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When you think of glass in a house, you think luxury, modern, and clean. Some other mental images are natural light and views. But whether you know it or not, glass is a material that can transform a home. Here is how to use it to open up your indoor and outdoor spaces. 

Stairway

A glass stairway helps emphasize the interior architecture and unblocks sightlines. A clear, low iron glass creates a more spacious look. Low iron will remove the greenish tint you sometimes see in clear glass. The popular style is a frame with posts framing the glass infill. For indoor staircases, standoff pins are a fantastic high design frameless look.

Interior balconies

Balconies made of glass will help create an open, airy effect as the scenery can enter the home and be seen from anywhere. It will also remove dark, separated areas with its influx of natural light. Talon spigots are a good option for glass railings to create an uninterrupted view. Another option is a slim stainless steel top rail. 

Exterior balconies

Exterior balconies create a picture-perfect view of nature. With no interruptions, it’s a great option that also blocks wind. If the clear glass is too vulnerable, frosted glass is a good option too. 

Guardrails

If there are guardrails inside the home, help open the floorplan with glass. The glass will enhance the room’s width and openness. It also creates a modern look. Laminated glass is a good option if you want a frameless option as there are layers of glass. 

 

If you’re ready to renovate to glass and get the highest return on investment, contact me so we can get started! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

The Top Kitchen Trends of 2021

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With a significant amount of time spent inside over the last year, homeowners are more discerning when it comes to kitchen preferences. In fact, Houzz surveyed over 2,000 U.S. homeowners to see what projects they’re tackling in their kitchens this year. So, if you’re looking to revamp your kitchen, these ideas make the cut! 

COVID-19 Trends

Storage

94% of surveyed homeowners said storage was their priority. They’re expanding their storage by replacing their kitchen cabinets (63%). And those who did a partial cabinet upgrade (31%), almost 30% of them added cabinets to their newly renovated kitchen. This is four times the amount compared to last year! For those who partially replaced cabinets, the number one improvement was refinishing the exterior (60%), then adding cabinets (28%). 

Pantries

46% said they are adding or upgrading their pantry to include more space. This is up by 3%. There’s also an increase in walk-in panties by 3%. 

Changes in Open Layouts

Open-concept was a popular layout in the past, but it has decreased by 10% compared to 2019’s percentage of 53%. People are no longer wanting to renovate their open-floor plan by opening up their kitchen to other interior spaces. 

Outdoor Connection

One in 5 homeowners wants to open the kitchen to an outdoor space. 22% of homeowners are more open to outdoors, with the majority choosing to open via double doors or having a row of doors.  

Design

Backsplashes Extended

Homeowners are increasing their backsplash to include from the countertop all the way to the upper cabinets or range hood (68%). White is still the number one choice for a backsplash color (37%). Still, multicolored is second. 54% of homeowners chose ceramic or porcelain tiles are their preferred material. 

Flooring 

Ceramic or porcelain tile ranked number one for flooring (24%). Hardwood is second at 23%, and vinyl continues to grow in popularity at 19%, which is 6% higher than the previous year. The top flooring color for renovated kitchens was wood at 51%. The second place was gray (14%) and beige at third (10%). 

Island Cabinet Colors

Almost half of homeowners renovated their kitchen to have a different color island cabinet from the rest of the kitchen to make it pop (41%). The top color choices are blue and gray for their contrasting island cabinets. 

55% of homeowners chose to add an island or upgrade their current island. The popular layout choice is to add an island to create an L-shaped layout (38%). 

High Tech Faucets

Many homeowners want high technology in their kitchen, and a faucet is one of them. More than half of upgraded faucets have high-tech features. 26% claimed to be water-efficient, 22% said there’s a no-fingerprint coating, and 21% are touch-free activation. 

Neutral Colors

Gray, white, and beige colors continue to dominate in the kitchen. But a small percentage wants to mix it up by including blue walls (7%), gray flooring (14%), colorful backsplashes (18%), and black appliances (16%). 

Why They Remodeled

In this survey, Houzz also asked why they decided to remodel. The majority said they’ve wanted to do it all along, and now they finally have the means to do so (40%). 35% said they could no longer stand the old kitchen and 30% said their old kitchen was deteriorating or broken down. 28% said they wanted to personalize their newly purchased home, and 14% were inspired to change certain items. 

The most popular renovation was countertops at 88%. The second was backsplash at 83%, and the third is 80%. Other popular renovations were faucets (78%), light fixtures (74%), flooring (65%), all appliances (51%), wall finish (46%), some appliances (33%), windows (28%), exterior doors (19%), interior doors (17%), and electronics (10%). Upgrades to light fixtures, appliances, wall finishes, and interior doors decreased compared to last year. 

When changing the kitchen layout, 44% opted to change the kitchen layout: 38% and 34% upgraded systems and modified walls. Al little more than two-thirds kept their kitchen the same size, where almost 30% opted for larger. Over a quarter opted to make it up 50% larger, and 7% chose more than 50%. 200 square feet or more accounted for the renovated kitchen’s final size for 51% of homeowners. 

After their kitchen renovations, 97% reported their number one activity is cooking. Dining and eating are second at 70%, a tie with 2020’s percentage. Third place was baking at 69% (remember all the bread we baked at the beginning of 2020?). Besides cooking and baking, the top activities after their kitchen renovation were eating and dining (52%) and entertaining (50%).  

As we can see from the data, homeowners want a space with a closed layout to personalize. If you need help deciding what home designs increase your rental property’s ROI, reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

 

Part Two: Should I Rent Out My Home Instead of Selling?

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Continuing our previous blog, we’ll discuss the pros and cons of renting or selling your home. I’ll cover the cost of renting vs selling and what costs are included in each option.

Costs

Both selling and renting have their unique costs. A key consideration is whether your rental income is enough to cover the mortgage and upkeep. To determine how much rental income you can expect to earn, compare what other similar properties are charging and subtract the cost of mortgage payments, maintenance, repairs, taxes, hiring a property manager, and additional related expenses. The answer should help you answer whether there will be a positive cash flow or not. Rental income is an opportunity for long-term cash flow, but only when it’s positive. If it’s a loss, it’s worth considering selling.

 

The costs to rent a home should include mortgage, home maintenance and repairs, property taxes, advertising, background and credit checks, property management fees, tax filing and accounting fees, HOA fees, landlord insurance, and vacancies. Now let’s break down each of those. 

 

Mortgage: While someone else is living in your property, it is still your responsibility to pay the mortgage. To find average rent prices, you can research what other properties are advertising. This can be done through online research or by your real estate agent. 

Home maintenance and repairs: You have to keep up with routine maintenance, so it’s liveable for tenants. The rule of thumb is to save at least 1 percent of the home’s value every year to pay for maintenance. You’ll also need to budget for extra repairs and replacements of essential home parts like appliances, doors, windows, and the roof. 

Property taxes: Taxes will vary on the property’s location, but expect the rate to increase as your home value increases too. Any income you make from your rental property is subject to rental income taxes. You’ll be taxed at your ordinary tax rate but can write off certain expenses. If you rent your property for three years or more, it is no longer your primary residence. This means any profit made before selling is subject to a capital gains tax. Consult your tax advisor for recommendations regarding your specific situation.

Advertising: You need to get the word out about your property to find tenants. Advertising costs vary depending on what source you use. Advertising can range from social media ads and websites to working with a real estate agent to market the property. 

 

Background and credit checks: To ensure you have a reliable future tenant, you’ll need to screen them. This means running a credit and rental history report. Sometimes you can pass this expense onto the tenant, but if not, the cost ranges from $15 to $40. 

Property management fees: If you choose to hire a property manager, they usually charge a percentage of the rent price. Read my investor resources, “Why Should You Hire a Property Manager for Your Austin Investments”, “When is it Time to Hire an Austin Property Manager?”, and “Property Management During COVID-19”.

Tax filing and accounting fees: Taxes become more complicated when you own property (or several), so it’s best to hire someone to file your taxes for you.

HOA fees: If your home has a homeowner’s association, you’ll be responsible for the HOA fees too. Depending on what type of property you have, the costs can range from $25 to $1,000 or even more a month.

Landlord insurance: Landlord insurance will cover specific costs like damage to the home or if someone is injured on the property. This will usually cost about 25% more than your typical homeowner’s insurance policy. 

Vacancies: You’ll have to plan for the times when your home isn’t occupied. This will be income you’re losing. 

 

Now let’s discuss the cost of selling a home. The costs to factor in should be home improvement, real estate commission, home staging, utilities, home loan payoff, and closing fees. 

Home improvement: Home improvements should be made if it will increase the home’s value and fix any repairs needed. This can range from enhancing the curb appeal or removing a whole wall. It’s helpful to get a home inspection before listing to find out what you’ll need to fix beforehand. 

Real estate commission: Up to 6% of your home sales price could go to your agent. This is typically split 50/50 between the listing real estate brokerage (your agent’s brokerage) and the buyer’s agent’s real estate brokerage. The commission could be your most significant expense when selling your home. 

Home staging: Home staging isn’t always necessary, but it increases your home’s desirability and helps your house sell faster and potentially for more money. Staging costs range depending on the size and your specific needs, and it can cost anywhere from $1,000 to $8,000 or more. 

Utilities: Remember that you’ll be paying for your utility bills until the closing date. 

Home loan payoff: Once sold, you’ll need to pay off the rest of your mortgage.

Closing fees: Depending on your agreement with the buyer, you may take on some of the closing costs. Expect closing costs to be a loss of 10% of the selling price. 

 

Choosing an option comes down to finances, your long-term investment goals, and the real estate market. If you’re ready to sell, rent, or need professional advice regarding property management or real estate, TALK Property Management is here to help (512) 721-1094 or dbrown@talkpropertymanagement.com. 

 

How TALK Property Management Can Help Investors Reach Their Real Estate Goals for 2020

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A new decade means new opportunities and new investments to be made. 2020 is the year you can make a big change and see huge results. It’s never too late to add some simple additions to your New Year’s resolutions and set achievable real estate goals to set you up for the next decade. We’re here to help keep you on track and set you up for success!

1. Expand Your Horizons

Just as the times change, so do trends in the market. Investing in real estate allows you to learn so much about a variety of topics and makes you a well-rounded person, but it’s never too late to expand your vision and learn something new. Ask questions about a real estate investment type you’ve never tried, research short-term rentals, or dig into where the next up-and-coming neighborhood will be. If you need help researching, don’t hesitate to give TALK Property Management a call.

2. Focus on Time Management

The more investment properties you have, the larger your scope of responsibilities to take care of your tenants and maintain the property. As your portfolio and the number of properties you invest in grows, it becomes more and more important to build a team you trust to help you spend your time wisely. With TALK Property Management, we help you take care of all the day-to-day duties of owning a property and come with a great team you can always rely on.

3. Stay Informed

You never want to lose touch on how your properties are doing, what the current tax exemptions are, or any coming changes that could affect you. When you partner with TALK Property Management, we always keep you in the loop, and we’re never more than one phone call away to answer all of your questions.

If you’re curious about the services we offer to help anyone investing in real estate, check out our About Us page. We’re here to make sure your real estate investment is a success, so let’s get 2020 started off on the right foot! Give us a call at 512-721-1094.

A Look Back at Austin’s Construction Projects Throughout the 2010s

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Since 2010, there have been a ton of new projects and developments springing up throughout the city. With the start of a new decade almost upon us, we thought we’d take a look back at some of the buildings that weren’t around to add to our skyline just a few years ago.

The Austonian
From 2010 – 2018, this was Austin’s tallest building. The Austonian was the true start to showing how important and lucrative high rise residential buildings can be in Downtown Austin. The skyline wouldn’t be the same without the 683 feet condominium tower.

The Independent
In 2019, the Austonian was usurped in height by the Independent, standing at 690 feet, the building became the tallest in Austin and the tallest all-residential building in the United States west of the Mississippi River. The unique design is always brought up in architecture talks for its Jenga-like look.

Robert B. Rowling Hall
The University of Texas campus is beautiful and has a huge impact on the city year after year, but the new graduate business facility is an even bigger fixture. The 497,500 square-foot building connects to the AT&T Conference Center and Hotel.

Northshore
The 424-foot building has 38 stories, 439 apartments, and is a quintessential mixed-use development. The building comes with a private lounge, pool, concierge, and a variety of great amenities.

70 Rainey
The last ten years have brought particular change to the Rainey District. The tallest of the new towers to the historic Rainey Street is 70 Rainey, and it’s sure to be one of many luxury buildings to connect Rainey to the rest of Downtown.

The last decade has brought a variety of changes, and we know the next ten years can really evolve the city dynamic and skyline even more. If you ever have questions about where we see Austin going and what the changes can bring for your investment properties, don’t hesitate to reach out to TALK Property Management at (512) 721-1094.

5 Real Estate Investment Property Red Flags

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There are a lot of excellent investment properties out there, and while there are some factors that make a property great, there are also some red flags that may help you narrow down which ones you should avoid altogether.

  1. Is the floor plan functional?
    If a home is listed as a four-bedroom home, you want to make sure that all four bedrooms are adequately sized. If one bedroom is particularly small or awkwardly shaped, it may be hard for you to find tenants for that space. You’ll also want to consider the number of bathrooms. It’s unlikely that you’ll find tenants ok with sharing a four-bedroom home with only one bathroom.
  2. What neighborhood and school district does the home fall in?
    No matter how beautiful the home, if it’s in a bad neighborhood or zoned for a school district that doesn’t have a great reputation, you’re going to have a hard time finding tenants. Is the area in a high flood zone, close to loud businesses? These are all factors you’ll want to look into.
  3. Are there structural issues and damage to the property?
    Pay attention to if a property has uneven floors, cracks on exterior walls, etc., as this can be a sign that there are bigger problems with the structural integrity of the home, which can be costly to fix. You should also be looking for roof leaks and checking under countertops and sinks in the bathroom and kitchen for signs of water damage and mold, as this can be another sign that there are major repairs that need to be made.
  4. Have you been asked to waive your right to inspect the property?
    We can’t stress this enough. If a seller asks a potential buyer to waive their right to inspect and back out of the deal if they don’t like what they see, turn tail and run. This is a huge sign that something isn’t right with the property. It’s common for a seller to sell a property as is without making any repairs, but it’s not common to ask a buyer to lock into a deal without an inspection.
  5. Are you being met with resistance to see the inside of the property?
    If you’re having trouble nailing down a date and time to see a property or are even being kept from checking out the whole property, it’s a big sign that the seller is hiding something. The golden rule to live by: Never buy an investment property without seeing 100% of what you’re getting into and after receiving an inspection that gives you an idea of what the property will need maintenance-wise.

If you still have questions on investment properties, don’t hesitate to reach out! We’re more than happy to share some of the knowledge, tips, and tricks we’ve picked up over the years to make sure you make and maintain a great investment.

The Domain is Going to New Heights!

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It is said Domain Tower 2 will be 24 stories and have 330,000 square feet of office space. This second tower is a continuation of the plans to make The Domain Austin’s second “downtown” hub. As huge technology companies are seeing a need for larger space in close proximity to amenities they can offer to employees, construction companies are meeting those demands by expanding The Domain.

Overall, The Domain is about 300 acres of land split amongst a variety of offices, retail spaces, and residences. There are more projects coming soon, including a 20-story, 345,000 square-foot Domain Tower 3, and a proposed 22-story Domain Tower 4. The plan to continue development of The Domain includes a 15 phase plan, and Domain Tower 2 is just one step in the overall goal of bringing 3 million square feet of class A office space, 2,500 multifamily units, 50,000-square feet of restaurants, and a hotel to the area.

While no one has yet signed on to take over the office spaces in Domain Tower 2, there’s no doubt there will be a variety of companies interested due to its great location and competitive markets. The demand is strong and only continues to grow in this area. If you’re curious about how the area in North Austin has changed with the expansion of The Domain, give our team a call. We’re happy to give you a glimpse into how the area has changed and how it will continue to do so in the coming years.

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.

Loan-to-Value Ratio Explained

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If you’re considering buying a home, there will be a lot of delving into your finances in order to qualify for a mortgage. One of, if not the most, crucial factor to be approved for a mortgage will be your loan-to-value ratio. The loan-to-value ratio is pretty straightforward. It’s simply the amount of money you borrow from your lender, divided by the purchase price of the home in a percentage format.

The loan-to-value ratio is extremely important for lenders as it gives them a better insight into the risk they face loaning money to a prospective homebuyer. The higher your loan-to-value ratio, the higher the risk to the lender, which may play into the mortgage terms and interest rates the lender can offer you. While lenders also look at your credit score, they want to make sure that you have equity in your home and are willing to make a sound investment that you can afford.

Many lenders require that borrowers have a loan-to-value ratio of 80% or lower before they approve a loan, which means that they’re really looking for borrowers to put in 20% for the down payment.

If you’re worried that you could fall under the high loan-to-value client group, there are a few ways to lower your ratio and increase your chances of being approved and getting great terms for your home loan.

One way to lower your loan-to-value ratio is to save up more money in order to have a larger sum to put down for your home. If you can offer up 20% or more of the home’s value, you’ve already lowered the loan-to-value ratio and made yourself less of a risk to the lenders by proving you have a stake in your home. The other way to lower your loan-to-value ratio is to look at more affordable homes. Choose a home that you would need a smaller down payment for, and you’ve immediately taken care of reducing the loan-to-value ratio.

If you ever have questions about your loan-to-value ratio and choosing a property that fits your budget, give our team a call. We’re here to make real estate processes simple and easy to understand for everyone.

New Homes in South Austin

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The 468-acre plot of land known as Turner’s Crossing will soon be a sprawling community with more than 1,300 single-family homes. The community will also offer a variety of amenities, including pools, playscapes, a splash pad, and a three-mile walking trail. The construction project is an ideal location and just 11 miles south of Downtown Austin.

If you’re thinking that it sounds like a massive project, you’d be right. In fact, Meritage Homes Corp is constructing homes in phases and is even working with other partners to get the project rolling. The first phase is likely to start construction soon and will be in the northern section of Turner’s Crossing, between FM 1327 and SH 45.

Trendmaker Homes Austin has also acquired land in the area, 324 single-family lots, to be exact. The company has set a target open date for June 2021. Taylor Morrison Home Corp. will also be helping out and constructing some new homes within Turner’s Crossing.

With a large demand for affordable single-family homes in Austin, there’s no surprise that several companies are putting in their all to develop the south Austin area, but there’s still a chance for more development groups to get in on the action. Close to 40 acres of Turner’s Crossing will be dedicated to commercial and multifamily projects, but Meritage hasn’t begun negotiations to sell this property to developers.

It will be interesting to watch how this project unfolds and what kind of commercial and multifamily residences will join this massive community. The development of land in Austin solely dedicated to homes priced between $200,000 and $400,000 has been needed for some time.

If you have any questions about the area and what kinds of investment properties may be right for you, give our team a call. We’re happy to talk real estate and what the current developments can mean for Round Rock, Austin, and the surrounding areas.