Tag: Austin Real Estate

Six Tips on Investing in Real Estate

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Today we’re lifting the veil and revealing some of the key factors you need to know to begin investing in real estate. We’ve laid them out in six simple steps to get you on your way.

Step one: Learn everything you can about real estate investing.

Real estate has many nuances and can be a large beast to jump into head first, so it only makes sense to seek knowledge from those who’ve been in the industry and have hands-on experience you can use to your advantage. No matter how you learn best, there’s a method for you. From books and blogs to podcasts and forums, you’ll find a plethora of knowledge and experience that will benefit you in the long run. Start with the general topics and take a deeper dive into the investment areas that catch your eye.

Step two: Don’t wing it.

If you don’t make a plan and start investing based on an idea of grandeur in your head, you’re bound to make a lot of mistakes. Mapping out where you are today with your assets, expenses, and monthly income, as well as where you want to be and how you’ll get there will keep you focused and moving in the right direction. Once you have a plan set out, ask an investor to look it over and make sure it’s plausible. If there are some flaws in your plan, your investor will point them out and help you create a plan that may work better for your budget and lifestyle.

Step three: Finance before you purchase.

What we mean here is that you need to know how you’re going to finance your property purchases before you try to find the residence you would like to add to your investment portfolio. Banks and mortgage lenders will be able to show you all of your options, so you can narrow your scope and focus on properties that make sense for you.

Step four: Look for the right investment.

This is the step that can hold many people back. It makes everything real and is the step you need to take to actually make your investment plan a reality. Make a list of what you’re looking for and specify location, price, property type, and condition of the property and begin crossing off homes that don’t work for you. Don’t make exceptions to your list and stick with your gut.

Step five: Put in the paperwork.

Partner with a real estate agent who understands real estate investment, and don’t be afraid to tell them all of your wants and needs. Your agent will begin to pull properties that meet your criteria list and negotiate with the sellers when you find the right fit to get you the best deal. Once you’ve struck a deal, look for unforeseen costs and have an inspector take a close look at the property. The last step is to close and officially become an investor!

Step six: Effectively manage your properties.

Just like any other business, real estate investment will fail if it’s managed poorly. Learn what it takes to be a good landlord, or look into professional property management companies and find the right manager for you and your investments.

If you’re thinking about real estate investment and are ready to find the right property that meets everything on your criteria list, we’re here to help! Reach out to us today, and we’ll begin the search to put your plan in motion.

Austin-area Home Demand is Strong, but Median Price Stalls Slightly – What This Means for Real Estate Investors

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Strong first-quarter home sales in the greater Austin area continued into April, according to the most recent Central Texas Housing Report released by the Austin Board of REALTORS®. However, the Austin-Round Rock MSA’s first quarter home sales were tempered with a stalled median home price increase of just .2% during that period. This figure is significantly lower than in the same period in previous years.

“Between 2012 and 2015, we saw price increases as high as 9%,” said Kevin P. Scanlan, 2019 president of the Austin Board of REALTORS®. “These narrower margins are a strong indication that market prices are starting to stabilize.”

Home sales volume continues to rise in the greater Austin area, and it was up 14.9% to 3,035 sales. Surprisingly, new listings were down 1.8%, but active listings increased 1%, another opportunity for Austin-area real estate investors.

Pending home sales in the greater Austin area spiked to 14.3%, while months of inventory hovered at 2.4.

According to the Texas A&M Real Estate Center, a “balanced real estate market” is defined as six months worth of home inventory. With housing supply hovering at 2.4 months, the greater Austin area remains a “seller’s market,” meaning that it is generally more favorable to sellers/owners due to a reduced supply of homes.

However, with the median home price tapering, there appears to be some stabilization and a silver lining for investors who are considering investing in Austin-area residential real estate, especially while interest rates remain low.

Regardless of your situation, TALK Property Management is always here to help, even if you just have a question about the real estate investments in the Austin area. Or, if you’re considering selling your investment property or if you know someone who is, contact our TALK Property Management today. We are always here to help.

DIY Fouls: 4 of the Worst DIY Mistakes Homeowners Can Make on Investment Properties

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While it may seem like a good idea to save a buck and perform investment property repairs yourself, DIY repair projects don’t always pay off, and things can get ugly rather quickly. Stay away from these common DIY mistakes that homeowners make, and leave them to the licensed repair professionals.

#1 Drywall Repairs. An extra coat of paint is no biggie, but if your investment property’s walls are in need of drywall repairs from things like cracking around windows (generally speaking, if you can stick a coin in it, there’s a problem), settling around door frames, or holes in the wall, it’s tricky to get it right on your own. Enlist the help of a drywall professional who has the tools and experience to repair the issue correctly.

#2 HVAC Repairs. Your investment property’s heating and air conditioning systems are complex, and they’re often connected to gas and electrical lines. Making a small mistake can jeopardize the system and lead to costly repairs. Hire a licensed HVAC technician to correct any problems.

#3 Electrical Repairs. Installing a ceiling fan or a simple light fixture isn’t usually a big deal. However, when you start dealing with circuitry and breaker boxes in your investment property, the potential of seriously injuring yourself or starting a fire increases dramatically. Electricians are up-to-date on all the recent code requirements, and they have the advantage of working with electrical systems daily. It may seem like a good idea to go it alone, but don’t fall prey to this DIY mistake.

#4 Plumbing Repairs. Incorrectly repair a plumbing issue, and you’ll find yourself in a lot of hot water, no pun intended. While a leaky toilet in your investment property may appear easy to fix, the problem can escalate, or there may be more to the issue than meets the eye. Because water damage is serious and expensive to fix, start at the right place, right from the beginning: hire a licensed plumber.

While it may be exciting to put on your DIY cape when it comes to your investment property, resist the urge–at least on these four important items. Spending the extra money to have a licensed repair professional evaluate the issue prevents DIY mistakes from turning into costly DIY problems.

Have a real estate or investment property question? Reach out to me anytime.

Expert Curb Appeal Tips for Your Rental Property

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Curb appeal done well can be the beginning of a beautiful love story, but if neglected your property can seem more like a house of horrors.

Curb appeal will make or break your listing, whether you are selling or renting your property.  Many home buyers or renters won’t even set foot inside a home if they don’t like the looks from the outside. First impressions mean everything in real estate and property rentals. In many cases your first showing is the only opportunity you get to impress your potential tenant.

With that in mind, here are a few tips to ensure you are putting your best foot forward and attracting, rather than repelling potential tenants.

Curb Appeal 101: Clean Up the Yard

We mean this as it applies to actual trash, debris or tree limbs, as well as the lawn.  Once the surface clean-up has been taken care of, cut the grass and clean up other foliage on the property.  Shrubs should be cut back according to their appropriate standards and shape.  Don’t try to get creative, no Edward Scissorhands sculptures necessary.  Make sure that you don’t cut them too far back either, you want to make sure the plants all look well maintained and appealing to anyone interested in the home so it doesn’t look like too much maintenance.

Add Attractive Color to Your Property’s Landscape

Bright, pretty and climate-appropriate flowers are an excellent way to infuse character, as well as make your property feel more inviting to visitors.  Lay mulch in flower beds and ensure that they are well defined with clean lines and defined separation from the lawn.  Add a nice border if appropriate. Be certain what you choose matches the look and feel of the property or consult a landscaping service.

We can help get your property ready for all the new Austinites that are pouring into the area every day!

Pressure Wash Sidewalks, Driveways and Siding

Details that will make your property stand out above the rest are imperative.  The more effort you put in, the more you get out of your listing.  Bright sidewalks give a fresh, new feel to a rental property and are a detail that many overlook.  When appropriate, be sure to pressure wash the outside of the building or home as well.  If you do this, just be sure ahead of time that the material you are using the pressure washer can stand up to the deep cleaning power and that you plan to do the entire home. This is particularly important with two-story homes or apartment buildings.

Curb Appeal Doesn’t Stop at the Curb, Don’t Forget the Front Door

Curb appeal isn’t all about plants and sidewalks. The front door is one of the first things one notices when approaching a property. You want the door to be inviting. This can be attained by re-painting or staining the door, as well as adding modern hardware.  Find a fresh spring color for the additional pop that will make your property stand out. The rest of the day visitors will be walking around other showings fondly saying, remember that one with the green door?  For an additional standout detail you can add seasonal, tasteful décor like a small wreath or sprig of fresh herbs to the door.

Final Touches for Optimal Curb Appeal

Clean windows inside and out.  Pressure washing won’t be enough, but is a good start.  Find some glass cleaner, get out a dust rag and put some elbow grease into it. Set out potted plants and outdoor furniture where appropriate. Update outdoor lighting with modern fixtures. Make sure the lights are working and that all the bulbs are the same color and wattage. Last, but not least, check to see if the house numbers are visible from the street.  Give everything a quick once-over and take photos while the property is at it’s best.

Learn more about the property management options in Austin available to you.

Curb Appeal Starts Online

When listing your property online, make sure that you have the most appealing photos of the outside of the home.  Do not take photos before you have fully completed all of the above-mentioned projects.  As hard as it may be to wait, the best time to take photos is once the last detail has been accounted for.  Maintenance is a must, because once your images go up online, this is the home people will be looking for when they come to check out the property.  Remember that pop of color on the door?  It has another great function; making your property easily identifiable. Keep things clean and fresh for your visitors who already have expectations in place before they ever set foot on the property.

As the saying goes; “You only get one chance to make a first impression.” When you follow these tips, you can be sure you will leave a lasting and positive impression on each person that encounters your lovely property. Contact TALK Property Management today.

5 Reasons It’s Time to Drop Your Bad Property Manager

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Property management is all about doing the best work possible for property owners.  At least, that’s what we believe at Talk Property Management/Broker.  We know not everyone thinks this way and many agencies fail to live up to the standards set for them by their owners. If you find yourself in this situation, keep calm and hire a new property manager who will take care of you, your tenants and your property.

  • You’re Losing Money. If you are working with a property management company that can’t promote your property, doesn’t make time for you, isn’t keeping an eye on your investment and won’t deal with troublesome tenants, then you are definitely going to hurt in the long run, even if you aren’t currently.  The only way an owner can charge a premium for their property is if the property is being properly promoted and appropriately managed.
  • Good Tenants Will Leave. When there is an issue with difficult tenants and it isn’t dealt with properly, your otherwise happy tenants won’t stick around. One, it’s unfair to those who are considerate of others, keep things clean and make an effort to be good neighbors for someone else to be getting away with bad behavior.  Two, tenants who are behind on rent and stick around aren’t always likely to keep that information to themselves.  If your tenants who pay rent promptly on the due date get wind of this, you can guarantee they will be moving on or possibly adopt their own bad habits.
  • Your Name is Being Tarnished. They might take some of the heat, but ultimately it will come down to you, as the owner. If a situation arises that gets the attention of local government, activists, media or law enforcement it doesn’t matter whether or not you were aware of it, you are on the hook.  This is particularly important for property owners who live out of the city or state in which their property is located.  When you have no opportunity to even drive by and check in, you are at the mercy of your property manager.
  • You Can’t Get a Renter Interested in Your Property. You’ve listed the property, your property manager swears they are promoting it but can’t give you any real proof and you aren’t seeing any real interest, applications or activity that means much of anything.  In this situation, you may be paying for services that are not being provided or something has happened to the property that is keeping people from acting on it.  The reason could be anything from a dirty house, to insect issues, or something more serious like graffiti or massive damage to the interior of which you are unaware.  If you are dealing with this, it may be time to pay your investment property a little visit.
  • You’ve Been Getting Complaints. It takes a lot of aggravation for a tenant to not only track down owner information, but then to contact them directly. If you find you are receiving multiple direct calls or emails from tenants who are getting little to no response from property management, then you know business is not being taken care of and it is time to deal with the issue pronto before you start losing leases.

When you encounter a difficult or absentee property manager the frustration can drive you to believe maybe you would be better off managing the property yourself.  But, remember there was a reason you hired them in the first place.  You can find a partner in that has your interests and success at heart.  Work with one of the best property management companies in Austin, Texas, and get in touch with TALK Property Management today!