Tag: Leasing

Benefits of Month-to-Month Tenants

Posted on by author

Now that you have a property, you need tenants! But what kind of tenants? Do you want short-term or long-term? Month to month or fixed-term lease? Long-term and fixed leases are the most common, then short-term for vacation rentals. In this blog, we’ll discuss the benefits of having month-to-month tenants. 

What are Month-to-Month Tenants?

Month-to-month tenants are renters who pay rent monthly to stay on the property without an expiration date. This means the lease doesn’t have a fixed end date and it will automatically renew at the end of each month. Typically, the renters will pay their monthly rent until either party gives a 30-day notice. 

Benefits of Month-to-Month Tenants

More control over timing and financial flexibility are the significant benefits to month-to-month tenants. Month-to-month means the landlord can end a rental agreement at any time very quickly and usually doesn’t need a reason to terminate the lease. With month-to-month tenants, landlords have more financial flexibility as the landlord can change the rent easily. This is usually why monthly leases have higher rents than long-term leases. But most renters who enter this lease understand that they’re paying higher prices for the short-term lease. It is a great option for buyers waiting for their house to be built or people testing out living in a new city. There’s flexibility for both the tenant and the landlord. 

Drawbacks of Month-to-Month Tenants

We want to be fair and explain both sides before landlords decide this is the leasing option for them. There are some drawbacks to month-to-month tenants like sudden vacancies and uncertainties. When landlords offer a short-term lease like this, they have to be aware that there might be sudden vacancies since the tenant is allowed to leave at short notice. If they want to fill the vacancy, this can be stressful for the landlord (unless you have a property management company like us!). Second and tied in with sudden vacancies are uncertainties like when the landlord will receive rent and finding short-term renters. On top of spending more time and money to prepare the property, advertise the property, screen new tenants, and show the rental (did you know TALK Property Management does all those things for you?). 

As a landlord or investor, it’s up to you to choose the best lease option for you and your property. There are benefits and drawbacks to a short-term lease and rental with month-to-month tenants. If you need help discussing your leasing options, contact TALK Property Management! 

5 Decor Hacks To Brighten Your Home This Winter

Posted on by author

Winter is approaching, and you may find yourself spending more time inside with earlier sunsets and longer nights. Here are five decor hacks to help make your home brighter and cozier this winter. 

Decor Hack #1: Paint Walls Bright and Warm

For a quick change, consider repainting one of the walls in a room you tend to hang out the most in, like the living room or kitchen. A neutral color with warm undertones will create a bright and cozy atmosphere in the area, and a vibrant color will help uplift a space while also looking great year-round.

Decor Hack #2: Incorporate Live Plants

Bringing some greenery into your home will add color and life to a room. Some of the health benefits of owning plants are lower blood pressure and reduced anxiety. Start with easy-to-care-for house plants that will most likely survive all year long, like a Chinese Evergreen, ZZ Plant, Moth Orchid, and Snake Plant. 

Decor Hack #3: Change Light Bulbs

There’s no way around it–winter means less sunlight and colder weather. To counteract the lack of light and warmth, try LED lights. They’ll make your home bright and sunny, and these bulbs emit the most light while using the least amount of energy. Soft white LED lights will brighten the room without an intense contrast. 

Decor Hack #4: Let In Light 

With what sunlight we do get during the day, embrace it with a curtain change. Sheer curtains and stylish pullbacks are great alternatives for letting in light. If there is decor blocking the window, relocate them to maximize the light. 

Decor Hack #5: Add Color

Winter is known for being dark so early in the day, but it doesn’t have to be dark inside your home! Try adding pops of color with colorful throws, pillows, dish towels, or rugs. Warm colors like reds and oranges will add warmth and energy to the room. 

 

If you need help styling your investment property this winter to sell or are wanting to buy a home, contact us today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

7 Moving and Packing Tips for An Easy Move

Posted on by author

Everyone dreads moving, whether it’s down the street or across the state, but it’s something we all have to face one some point. But, it doesn’t have to be dreadful! Here are some tips and tricks to make your move easy.

1. Get rid of clutter before the move.

Make your job easier by donating or throwing away items that no longer give you joy, as Marie Kondo would say. This will make moving easier and quicker! So, before packing anything, do an inventory check and purge unused and unnecessary items. Now you have less to pack, move, and unpack!

2. Make a moving folder

Keep all your documents together in a folder to help ease any anxiety and stop stress. Have a hard copy of new addresses, rental or purchase papers, moving contracts, etc in case something happens where you can’t access them digitally. 

3. Pack in advance

Ideally, you’ll know when you need to move so you can work backward from the end date and start backing early. We’re going into summer, so you could pack winter clothes now. You can also pack items like books and other once-in-a-while items. This way, there’s less stress and packing to do as the move date gets closer. 

4. Book early

If you’re using moving services, renting supplies, or hiring professionals, it’s always better to book early. If you wait, you could pay a higher price or not book the service at all. This is crucial during the peak moving season. 

5. Schedule services for new place before the move

Once dates are confirmed, contact your utility providers to schedule services like electricity, water, and heat for your new place. Schedule ahead of time so you can come home to a new functioning home after a long day of moving. Don’t forget to request a service stop at your old place! 

6. Keep essentials close right before the move

The night before the move, place essentials like a change of clothes, toiletries, medicine, paperwork, etc., into a suitcase or bag that you’ll have access to in the car, cab, or plane. This way, you’ll always have essentials with you in case of a worst-case scenario.

7. Get a moving truck with a loading ramp

If you’re opting out of a moving service, then do yourself a favor and rent a truck with a ramp. It might be more expensive, but this luxury is worth every penny, especially if you’re moving furniture. It will help save time and prevent sore muscles later!

If you’re ready to move to Austin, contact me today! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Austin Rental Scams on the Rise

Posted on by author

Scammers are in Austin, and they’re pretty convincing. One woman who spent weeks looking for a place to rent fell prey to a scam. The home for rent was listed on Zillow, and she emailed who she thought was the owner. They sent the deposit, dog deposit, and first month’s rent, which added up to $5,200. But when she went to meet the owner at the property, he never showed or responded. 

The Better Business Bureau says this is a growing trend and happening more frequently, especially in Austin, where many people are moving. Most scams require you to wire funds, so do not wire funds to anyone you haven’t personally met. 

How To Identify A Rental Scam

1. They don’t want to meet you in person.

People are busy, and schedules may not coordinate for a meet-up, and that’s okay. If that’s the case, at least do a video call with the owner/landlord to know the property exists. A good landlord would want to meet you, in person or digitally, as they should know who is renting out their place. 

2. They want you to move in without seeing the property.

Visit and tour the property before signing a lease or sending money to someone. It’s easy for scammers to take old listing photos from past posts and pretend they have the property. Scammers won’t have access to the inside, so if you can’t see the place or tell you to just walk around outside of it, be wary. 

3. They ask for rent or a security deposit before signing a lease.

An apartment can be a scam if the property manager, landlord, or realtor asks for rent or a security deposit before signing a lease. You should never be asked to give a large sum of money before seeing or signing a lease. Application fees are normal and acceptable, but the first month’s rent or security deposit is not. 

4. There’s no screening process.

A good landlord will want to know who’s renting from them and take the proper precautions to screen a tenant. Most landlords will have a screening process to make sure they screen quality tenants. So, if a tenant does not require a rental application and credit check, this is a red flag. This means the landlord doesn’t care about having a good tenant, or they’re inexperienced; both are causes to be suspicious. 

 

If you’re a renter looking for places to rent in Austin or an investor who needs help renting out their property, contact me! Reach out to TALK Property Management– We are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

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

Posted on by author

Selling or renting is the age-old question for property owners, and there is no right or wrong answer. Let’s look at what the market is doing now and then discuss factors to consider to make the best choice for your situation. 

The Market Now

The Central Texas housing market continues to be strong for many reasons, including our high quality of life, relatively low cost of living, and even the coronavirus pandemic. 

COVID-19 has altered the way we search for homes, show homes, and buy and sell homes. It has also kept some local home sellers out of the market–those who don’t “have to” move–likely because they’re waiting for the effects of the pandemic to dwindle. That means that local demand for housing outweighs supply, so homes are selling for a higher price. This process is called a seller’s market. But, the real estate market is dynamic, and this could change at any time.

Additionally, mortgage interest rates remain at historic lows, motivating buyers to make a purchase now.

The local and national economies impact the housing market as well, so you’ll need to assess items that can increase or decrease city growth. People could be relocating for jobs, which can cause job losses and increases. Are businesses moving into the area? Are houses being fixed or abandoned? Each aspect will help you get a better understanding of where the market and economy are going. 

Lastly, rent prices have increased over the years, with an increase in Millennials and Baby Boomers demanding affordable rental housing. But, this is a trend that could change now due to the economy. 

What to Consider

Do you want to be a landlord?

Managing a property is a time consuming and challenging job. Consider if you have a team to help you, like a handyman or real estate agent, or do you need to hire them? Ask yourself if you have the time and effort to screen tenants or if you’re willing to hire a third party to do so. 

It’s essential to factor in where you’ll be living. If you’re out of state, you’ll need a property manager. If you’re staying local, then you need to know what that requires. Not only will you need the time, effort, and cash to be a landlord, you’ll need to be knowledgeable in the local, state, and fair housing laws. 

Read my owner’s resource for “5 Things You Should Know Before Becoming a Landlord”.

 

Are you buying another property while renting the other?

To get a second mortgage, lenders will consider rental income, usually up to 75%, to be counted as income sources. But, with low mortgage interest rates, this might be the time to refinance and pay an even lower mortgage payment. 

 

Will home values increase in your area?

While it’s impossible to predict the market, it’s smart to follow it to see where your home’s value could be in a few years. Suppose you expect the market to work in your favor in a few years and increase the value. In that case, you might want to consider renting it now and selling later to take advantage of the appreciation. Conversely, if you think this is the best the market will do for your house, then sell now. 

To calculate the potential return on your investment property, you’ll need to know your cash flow and equity. To read an example, read my investor resource “How to Calculate the Potential Return on Your Investment Property.” 

A cost market analysis (CMA) will help you answer what your house is worth right now. It will also help you understand the current housing market and the price of other similar properties. Get a full CMS explanation here.   

 

This is part one of a two-part series. In the next blog, I’ll share the specific costs of renting and selling. Check back in December for part 2! 

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

Posted on by author

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

Posted on by author

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.

The Domain is Going to New Heights!

Posted on by author

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

Posted on by author

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.

Choosing a Home Warranty for Your Rental Property

Posted on by author

Choosing a Home Warranty for Your Rental Property 

There are plenty of expenses when it comes to owning a rental property. New application fees, landscapers, and even the downtime costs associated with utilities when no one is residing at the property. There are many factors to consider when renting your property but the thing you may not have thought about can save you a lot of money and peace of mind. A home warranty.

Large ticket items, like your A/C unit, appliances, or plumbing issues, are not typically covered under your homeowner’s insurance unless in cases of natural disasters. When you have a rental property it is important to ensure maintenance items are covered. This is where a home warranty comes into play.

Saving you time and money, a home warranty company will take care of those maintenance nuisances that seem to happen when you’re least prepared for it. The service level plan you opt into will determine the amount of out-of-pocket expenses you can expect for a maintenance request. 

There are several home warranty companies to research and determine the best fit for you:

  • Choice Home Warranty
  • America’s First Choice
  • Select Home Warranty
  • Total Protect
  • HSA
  • Old Republic
  • Guaranteed Home Warranty
  • Landmark Home Warranty
  • Stanley Safe Club
  • Allied Home Warranty
  • American Home Shield
  • BFS

 While a home warranty can’t guarantee the best tenant, that’s our job, a home warranty can help alleviate the stress of maintenance repairs. When you’re ready to consider all the options available to you for your rental property and need help with professional management services, give us a call.