Tag: real estate market

Pros and Cons of Purchasing A Fixer-Upper Property

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Whether you’re just starting out in real estate investing or you’re looking to build your portfolio, investing in a fixer-upper could be something you’re considering. Like most things in investing, fixer-uppers can come with many benefits but also many risks.

Let’s dive into a few pros and cons of purchasing a fixer-upper property so you can make an informed decision on whether this is the best option for you as an investor.

Pro #1: Lower Purchase Price

Fixer-upper homes tend to have lower purchase prices because the sellers understand the home will need some work prior to moving in. Even though you will need/want to put additional money into the property for repairs, initially, you’ll have a lower purchase price and a lower down payment than you would have if you purchased a property that’s more move-in ready.

Pro #2: Ability To Customize

Sometimes fixer-uppers will need to be gutted entirely, giving you the option to customize the property and make it exactly what you want. This gives you the ability to really think about what features matter most to your renters and make sure they’re included in your property. Renters like to see updated kitchens and bathrooms, so adding new countertops, cabinetry, and even a fresh coat of paint will go a long way.

Con #1: Expensive Repairs

Fixer-upper homes often come with a lot of repairs, which can get costly. It can be easy to get carried away and go over budget when it comes to making repairs and making the property what you want it to be. 

Con #2: Unexpected Surprises 

Even if you have a home inspection completed, there will sometimes be unexpected issues along the way. These issues can lead to even more expensive repairs and a longer time period for repairs to be completed, which can affect your timeline. 

Purchasing a fixer-upper property is a great option for adding more to your portfolio. If you have any questions about fixer-upper properties, reach out to us! We would love to provide our expertise and help in any way we can! 

Investment Property Pricing Strategies For Constant Income and High Occupancy Rates

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The ultimate goal for investment properties is to have a constant stream of income and high occupancy rates, and to do that, you need to make sure your property is priced right. If your property is priced too high, potential renters will skip past it when searching online before they even look into it. 

Here are a few pricing strategies to utilize when pricing your investment property.

Perform a Comparative Market Analysis

While the name might sound scary, a Comparative Market Analysis (CMA) is simply comparing your investment property to similar homes in the area. Find homes with the same number of bedrooms and bathrooms with similar square footage and see what they’re priced at to come up with a competitive price for your property. 

In addition to bedrooms and bathrooms, look at your property’s upgrades, amenities, and location. These are all factors that can be considered when pricing your property. If your home has more to offer or a better location than the other homes, you can price it higher than other properties. At TALK Property Management, we provide this as a FREE service for you. 

Consider the Market

The real estate market can largely affect pricing and what potential renters are willing to pay. If demand is high and supply is low, prices usually increase. If demand is low and supply is high, landlords are likely to lower rent prices. It’s also worth noting that potential renters could be more or less likely to purchase a home than rent based on what the market is doing. So, having a clear understanding of the market is huge when it comes to pricing.

Keep Seasonality In Mind

Typically, rental demands are higher in the summer and early fall as opposed to spring and winter, so you could price your property higher if it’s listed during a peak time of year. Keeping seasonal trends in mind when you price your property and market it online are huge to ensure you’re getting the most money.

Staying competitive with other investment properties is huge when it comes to the overall success of your property. If you have any questions about pricing your investment property or you would like TALK Property Management to do the heavy lifting for you, reach out to us! We want your real estate investment to be a success!

How To Prepare Your Vacation Rental Property For Holiday Guests

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It’s that time of year when your vacation rental properties are most likely booked up with guests trying to escape the cold weather. Dazzling your guests for the holiday season shows you go the extra mile and care about them and their comfort, which ensures they will return each year for the holidays.

Here are a few ways to prepare your vacation rental and maximize your vacation bookings.

Don’t Skip The Basics

While the holiday season tends to be busy for vacation rentals, cover the basics by scheduling specialists to look at your mechanical systems and ensure everything is in working order. Nothing is worse than having guests at your property when the A/C or furnace goes out, and it could have been avoided if someone looked at it before. If you provide towels and bath necessities, make sure to have everything stocked and ready to go for guests so it’s one less thing they have to ask about during their visit. 

Welcome Them With A Gift

Guests want to feel like they’re important and not just another number. Celebrating the season of giving with a holiday gift is just one extra thing you can do to show you’re grateful for their booking with you. Think about having a plate of holiday cookies waiting for them upon their arrival or working with nearby restaurants and businesses to offer discounts to your guests.

Get Into The Holiday Spirit

Decorating for the holidays can make your vacation rental feel like a home away from home for your guests. It also makes your rental feel more inviting and warm and can help them get into the holiday spirit. Adding simple touches like throw pillows, lights, garlands, or a Christmas tree can go a long way and make your rental more festive. 

Prepare A Local Holiday Guide

Guests who have never been to your vacation rental before might not know what there is to do nearby. Providing them with a local holiday guide of festive boutiques, restaurants, and more, can help them finish up some last-minute holiday shopping and live like the locals. 

 

Utilizing these tips to prepare your vacation rental during the holiday season will go a long way with your guests and make their stay merry and bright. If you have any questions about vacation rental properties, reach out to us! We would love to provide our expertise and help in any way we can! 

Rental Property Upgrades To Avoid

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As an investor, you want to make upgrades to your rental property that will bring in a steady stream of tenants and provide value to your property, but sometimes, the upgrades aren’t worth the upkeep or the hassle. When thinking about what upgrades to make to your rental property, make sure it’s worth the time and money before going through with it.

Here are four upgrades that you should consider avoiding when it comes to renovating your rental property.

Granite Countertops

While granite tends to be a more popular choice for countertops, they’re not necessarily ideal for rental properties. Not only will the trend eventually fade, but granite is particularly expensive compared to other countertop options such as quartz, marble, or laminate. Better to choose a countertop that’s cost-effective, durable, and will last a long time, so you’re less likely to have to replace it in a few years.

White Bathrooms

All-white bathrooms have an eye-catching effect that looks clean and new, but it can go away quickly if not cleaned often. White bathrooms can easily show dirt and dust, making them a not-so-great option for your rental property. Not only does it mean more upkeep for you, but also more for your tenants to keep up with keeping them clean. Choosing more neutral colors can still give the bathroom an elevated look without all the hassle.

Bright Paint Colors

Speaking of neutral colors, the same should go for your paint colors. Accent walls might still be a popular trend, but the days of having bright colors everywhere are gone. Keep it simple with grays and beiges because they go with everything and won’t clash with your tenants’ furniture and design choices. 

Elaborate Landscaping

Of course, you should have some landscaping outside, but there is such a thing as overdoing it. All possible tenants will see is more they will have to keep up with, and it could inevitably turn them away from choosing your property to rent. Sticking to the basics and making sure everything looks clean and put together will go a long way. 

When it comes to making upgrades to your rental property, always remember that less is more. If you have any questions about what upgrades are worth making, reach out to us! We would love to provide our expertise and help in any way we can! 

Benefits of Owning A Vacation Rental Property

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Investing in a vacation rental property is one of the best ways to diversify your portfolio and income streams. While it might cost some money and take some work upfront, vacation rentals have many benefits and can work well for you in the long run.

Let’s dive into some of the personal and financial benefits of vacation rental properties and see if they’re the right choice for you.

Long-Term Wealth

We all strive to build long-term wealth, right? One of the most effective ways to build long-term wealth is through real estate, and vacation rentals typically don’t require a large cash outflow. Many investors opt to leverage mortgage financing, and over time, your guests help you pay down the mortgage and grow your short-term rental property’s equity.

Home Equity

Speaking of equity, vacation rental properties can help you build even more equity that can be used on down payments for more properties, home improvements, and more. While the housing market and home values can fluctuate, depending on where you decide to purchase your vacation rental property, the likelihood of your home value increasing is high, meaning more equity in your rental.

Tax Benefits

Owning a vacation rental property comes with many tax benefits and write-offs. If you utilize the property as a true second home, your mortgage interest and property taxes may be tax deductible. In addition, many of your expenses for things like maintenance, repairs, and improvements can be written off. Consult with a tax professional to learn all the ins and outs of tax benefits. 

Dual Usage

There’s more to vacation rental properties than just business and financial benefits. You can also use your vacation rental property when you need to take a little getaway from reality. This provides a great home away from home to create memories, host family and friends, or just have some much-needed relaxation time.

Vacation rental properties come with many perks and can be an excellent option for your next investment! If you have any questions or want to learn more, we would love to provide our expertise and help in any way we can! 

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!