Tag: high-quality tenants

Knowing Your Property’s Worth: The Importance of Running a Comparative Market Analysis

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As an investor, when you purchase a property to be used as a rental, many factors go into deciding which property you choose. Not only do you want the property to be in a good location near amenities, but you also want the rent you charge to be affordable and attractive to potential tenants.

How do you decide what the appropriate amount of rent is? By running a comparative market analysis! Let’s explore what a comparative market analysis is and why it is important for your rental property.

What is a Comparative Market Analysis?

A comparative market analysis (CMA) is a report that compares the prices of similar homes sold in a specific area. While some adjustments will need to be made since not all homes are the same, the CMA gives you an idea of what homes have sold for, which can help you determine an appropriate rent amount for your property. 

Many factors are taken into consideration, including:

  • Location
  • Number of bedrooms and bathrooms
  • Square footage
  • Amenities and upgrades
  • Current market demand

 

Why Should You Run A CMA?

Establishing the appropriate rent for your rental property is important when you’re advertising it online. If your rent is too high, it can lead to longer days on the market and more money out of your pocket.

Here are a few other reasons why running a CMA on your rental property is important:

  • Attracts high-quality tenants to your property
  • Allows you to stay competitive with other available rental properties
  • Maximizes income and potentially reduces vacancies
  • Saves you marketing dollars
  • Less stress for you and your business

Understanding the ins and outs of a comparative market analysis may require an experienced property manager. If this sounds like a task you would rather not do yourself, reach out to us! TALK Property Management would love to run a comparative market analysis free of charge and help you determine the ideal rental price for your property. 

 

Increase Your ROI With These 5 Spring Rental Property Upgrades

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Whether you’re an experienced investor or new to real estate investing, it’s no secret that rental properties need to be updated over time. Upgrading your rental properties is a great way to increase ROI, attract high-quality tenants, and maximize monthly rents.

Here are five upgrades you can make to maximize the value and improve the condition of your rental property to attract tenants. 

Fresh Paint

A fresh coat of paint is one of the best upgrades for your rental property. Choosing a neutral paint color will appeal to more tenants and make your rental property look newer and cleaner. 

While painting every room might seem daunting and time-consuming, you can always start with the more popular rooms, such as the living room, kitchen, and bathroom, and work your way up from there. 

Simple Landscaping 

Curb appeal is essential when marketing your rental property. If your property doesn’t look good online or in person when a potential tenant sees it, they are unlikely to sign a lease with you. Spring is the perfect time to brighten up the exterior of your rental property with some colorful blooms and fresh mulch. In addition, trimming back overgrown bushes and pulling unwanted weeds can help improve your property’s curb appeal.

New Doors

Doors tend to get overlooked when it comes to upgrading, but they’re often one of the items in your rental property that receives the most damage. Upgrading your exterior door will (literally) protect your investment by adding more security to your property and giving it a whole new look! You can also consider upgrading the doors inside to give your tenants some added privacy.

Stay On-Trend

If you don’t take the time to make modern upgrades and keep up with the latest trends, your property can look dated and deter potential tenants. Consider upgrading the light fixtures, flooring, and cabinetry/countertops to give your property an updated look. While these upgrades can be more expensive, they don’t have to be. Pick items that look high-end to stay within your budget.

In real estate investing, it’s important to stand out from the competition and maintain your property’s value to continue to succeed. If you have questions about which upgrades will give you the most bang for your buck, reach out to us anytime at (512) 947-1828 or dbrown@talkpropertymanagment.com.

Tips for Reducing Vacancy Rates In Your Rental Properties

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As a landlord, you need to reduce the risk of vacancies in your rental properties to be profitable and keep your business afloat. While sometimes there’s nothing you can do to keep your tenants from leaving, there are some steps you can take to keep tenants happy and keep your properties occupied. 

Let’s look at a few tips for reducing vacancy rates and see how TALK Property Management can help!

Open Communication

Ensure trust and respect between you and your tenant by keeping open lines of communication. If there are changes in the works, be honest with them; you never want them to think they can’t talk to you. Reach out to your tenants a few months before their lease is about to expire to gauge their interest and see if they are thinking about renewing their lease or going elsewhere. Securing a longer lease is a huge win for you, and if they decide to leave, you have more time to find new tenants. 

How can we help? We keep you informed every step of the way and can handle accounting services on your behalf.

Understand Market Trends

If you want to purchase a new rental property, research the area, the current market, and vacancy rates. This will help you price your property right from the beginning. Make sure to look at what your competitors are charging for rent in the area so you can stay competitive. Sometimes, if tenants leave, it could be because your rent is too high for the area, and they can find something cheaper. 

How can we help? We use the Multiple Listing Services available only to real estate agents to obtain comparables to produce higher rents and fewer vacancies. Plus, we can run a free comparable market analysis and recommend your starting rate based on the current trends. 

Advertising & Marketing

Your rental property isn’t going to occupy itself. Make sure you have the right marketing strategies in place to advertise your property’s best features and obtain high-quality tenants. Advertising your property on home browsing websites is a good place to start, and be sure to post it to your social media pages, too, where people can share it with their friends and family. You never know who your sphere of influence might know, so be sure to inform them you have a rental property for sale and see who they can connect you with.

How can we help? We can photograph your property and place lockboxes and yard signs to promote the property. Advertising for your property typically begins 30 days before the home is vacant.  

Consider Tenant Needs

Sometimes, your tenants might have needs that your rental property might not offer, but could work out well for you and bring a whole new pool of tenants if they were included. For example, many people might have pets and would automatically be unable to live in your rental property if it’s not pet-friendly. Considering tenant needs shows you care about them and listen to their concerns.

How can we help? We can provide you with professional vendor referrals if there are repairs or updates you would like to have made to better serve potential tenants. 

Being a landlord and learning about vacancy rates can be a hefty task. If you don’t want to deal with the hassle, reach out to us at TALK Property Management, and let us handle it for you! We provide a variety of property management services that will save you time, work, and stress!

The Benefits of Staging Your Investment Property

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While most investors might think staging their investment property isn’t worth the money, the benefits of staging can outweigh the cost. Deciding whether or not to stage your investment property is entirely up to you and your situation, but there are many pros to staging that could work in your favor in the competitive Austin real estate market.

Let’s dive into a few of the top pros to staging your investment property. 

Pro #1: Helps The Property Stand Out

Many investors aren’t utilizing staging for their investment properties, so staging yours will help you stand out among the competition. Potential tenants are more likely to look at your listing with staged photos over listings that aren’t staged because they’re more attractive and inviting, which helps them picture themselves living there. 

Pro #2: Increases The Value

Staged properties offer a more move-in-ready vibe that many potential tenants are more willing to pay for. In addition, they tend to have higher rental rates, meaning you can potentially charge tenants more money to live there. This means you could be marketing to tenants with higher incomes and higher quality tenants. 

Pro #3: Less Turnover & Vacancy Rates

Investment properties that are staged tend to attract more involved tenants who are looking for long-term rentals. Attracting this type of tenant can reduce your turnover and vacancy rates, meaning less stress on you and more money in your pocket over time. 

Pro #4: Shows You Care

Starting on a good note with tenants is huge. Taking the time to stage your investment property shows you’re willing to put in the effort to show the home in its best light. This sets you up to be viewed positively by potential tenants and shows you care about your tenants, their comfort, and the property.

If you have any questions or need ideas on how to stage your investment property, reach out to us! We would love to offer our expertise! 

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.