Tag: Rental Property

How To Become A Successful Landlord: Mastering The Basics

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Being a landlord can be hard work, but it’s also rewarding when done correctly. And, as long as you have the skill and time to complete all of the tasks associated with managing your rental property, you can be successful as a landlord and save a little money in the process.

At TALK Management, we have mastered the many responsibilities of property management, and we handle all of the duties of our landlord clients so they can focus on what they do best (not having to be a landlord). If you get started as a landlord and realize it’s too much, we’re here for you, and we would love to earn your business. 

Now, let’s dive into some of the key factors of becoming a successful landlord. 

Set Up Your Business

Prior to purchasing your first property or signing your first lease, make sure your business is fully prepared on the backend. You want to set up things like asset protection, insurance, and your bank account to ensure your investment is protected and everything is set up as much as possible. 

Consider keeping a folder of your important documents for each property to keep everything organized and ensure you have everything you need to prepare for tenants.

Make The Commitment

Landlording is no small feat. It takes a lot of time, energy, and responsibility to be done correctly. Before you decide to become a landlord, make sure you have thought about what this will mean for you. When purchasing properties and selecting tenants, take the time to make sure your decisions are the right ones. Nothing should be done on a whim; you need to take the appropriate amount of time to make decisions that will make you money and help your business in the long run. 

Understand Your Tenants

Not only is it important to properly screen your tenants to make sure they’re the right fit, but you should also take time to connect with them and understand their wants and needs. Establish trust with them by always being transparent and having an open line of communication so they feel they can come to you with questions and concerns. It’s also important to understand what they expect from you and what you expect from them, including following the lease agreement terms and paying their rent on time. 

Handle Issues Appropriately

Regardless of how excellent your tenants are, there will be times when issues will arise. As much as we don’t want to deal with problems, it’s part of the business. When issues arise, it’s important to have the appropriate systems in place to ensure they’re handled efficiently and correctly. Taking issues personally doesn’t help anyone, so try to keep your emotions out of it and navigate problems appropriately. 

Reach Out To The Professionals

If you get overwhelmed by everything you need to do to be a successful landlord, contact the professionals at TALK Property Management. Here are a few of the value-added services we provide that can save you work, stress, and, often, money:

  • Rigorous tenant screening process to select quality tenants
  • Attend court proceedings on your behalf
  • Handle HOA correspondence and violations
  • 24/7 maintenance for tenants for emergencies
  • Utilize licensed professional vendors and handymen for maintenance issues

Being a landlord can be a gratifying job when done correctly. If you have any questions about becoming a landlord or need someone to handle property management services on your behalf, reach out to us! We would love to offer our expertise and services!

Top Features Tenants Look For In A Rental Property

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Whether you’re purchasing your first rental property or your 10th, you want to ensure the property attracts tenants. In addition to location and accessibility to highways and amenities, certain interior features will help steer tenants toward your Greater Austin area rental property.

Let’s dive into a few of the top features tenants look for in a rental property.

Open Floor Plan

One of the top features homeowners look for when purchasing a home is an open floor plan, and tenants are no different. Tenants want to be able to have a place to entertain, and it allows them to be more flexible with their furniture and decor. Many people are still working from home, so having an open space to add an office area is helpful.

Upgrades

When you hear upgrades, you probably think of dollar signs, right? If you have the funds to update everything, the more, the merrier! However, a few upgrades can go a long way. Cosmetic updates like new flooring and fresh paint are huge for tenants. If you want to take it a step further, tenants also look for bathroom and kitchen updates. If you have an older property, consider updating mechanical items like plumbing, HVAC systems, and wiring to save yourself some time and money down the road. 

Included & Updated Appliances

Having appliances included in your rental property means less money your tenants will have to spend on them if they don’t already have them. Tenants will be impressed to see appliances included, especially if they are nicely updated. If you already have appliances and they are dated, consider updating them. In addition, having an on-site washer and dryer is becoming more common among rental properties. Being able to do your laundry at home instead of going to the local laundromat will save your tenants time and money.

Storage Space

Tenants always appreciate having extra space to store their items. Nothing is worse than putting things in the corner of your living room or bedroom. Not only does it look messy, but it takes up space that could be used for entertaining or additional decor or furniture. Make sure your rental property has a basement, attic, or lots of closets for storage.

Make sure to keep these features in mind when you purchase your next Greater Austin area rental property. It will go a long way for tenants! If you have any questions or need recommendations, reach out to us! We are always here to help.

Rental Property Red Flags

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Investing in real estate properties is a great way to make money and build your portfolio, but it can also end badly if you don’t see the red flags. The last thing you want to do is overlook potential issues, purchase the property, and find out down the road that there are bigger issues than you originally thought. 

Before purchasing a property, do your due diligence and avoid these four red flags.

Bad Location/School District

Homes located in less-than-ideal locations with high crime rates tend to be avoided by potential renters. They don’t want to be concerned for their safety or worry about their property being destroyed. When renters are looking for properties, they usually look within the school district where their children go for the ease of getting them on the bus or to school in the morning. If they can’t find anything in their school district, they will look in highly-acclaimed school districts, which could mean they would miss your property altogether. 

No Interior Pictures Online

When looking for properties to purchase online, keep an eye out for properties with beautiful exterior pictures and no interior pictures. This is a huge red flag because it makes it seem like they’re hiding something. Even if you know the property has a great floor plan and awesome amenities nearby, it suggests the inside of the home isn’t in good condition or wasn’t well taken care of.

Dysfunctional Layouts

Renters want their property to feel like a home, and having to walk through a maze to get around is a huge red flag. When looking at properties, renters like to see open floor plans and layouts that make sense. If you can only get to your bedroom by walking through the kitchen, or the only bathroom is on the main level when the bedrooms are upstairs, it’s not a good choice.

Questionable History

If you look up the property and see multiple owners have owned it over the past few years, this could imply it’s difficult to keep occupied or has underlying issues. In addition, if the disclosure sheet doesn’t provide much information on the property or the repairs that were made, it could mean more repairs for you in the future. 

At the end of the day, make sure to do your research before purchasing your rental property. It will save you time and money in the long run! If you have any questions or need recommendations, reach out to us! We are always here to help.

Maximize Your Profit With These Rental Property Upgrades

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Landlords are always thinking about upgrades they can make to their rental properties that will increase their rental income and make their lives easier in the long run. But which upgrades are worth your time and money? Let’s look at four upgrades that will keep your tenants happy and increase your rental income and property value.

Upgrade Flooring

Replacing the carpet with hardwood flooring will increase your value and save you time. Carpet can stain and tear easily, making it more prone to need replacing. Hardwood flooring is easier to clean and more long-lasting. Installing hardwood flooring can be expensive up front, but it will save you time and money in the long run.

Fresh Paint

Painting rooms in your rental property can make a huge difference and make your rental property more appealing. Neutral colors like gray or beige with white trim go with all kinds of decor and are colors that tenants tend to gravitate towards. 

Update Kitchen & Bathrooms

The two rooms that tenants like to see updated are the kitchen and bathrooms. This can get expensive, but luckily, you don’t have to update everything to make a good impression. Small changes in the bathroom, like updating the toilets, vanity, or sink, or kitchen updates, like cabinetry or countertops, are all you need to give these rooms a new look.

Increase Energy Efficiency

Tenants will appreciate energy efficiency items like Energy-Star certified appliances or new windows as they will help lower their utility bills. Replacing old appliances will save you money on maintenance issues in the future. New windows are more aesthetically pleasing than old ones, and cold drafts from the old ones can cause higher utility bills.

As you can see, there are a lot of different upgrades that can benefit you and your tenants. If you have any questions or need recommendations, reach out to us! We are always here to help.

4 Ways to Prepare Your Rental For Winter

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The weather outside will soon turn frightful in Round Rock, which means it’s time to start thinking about winterizing your rental property.

 

Here are 4 ways to get your rental home ready for winter:

 

Service Your Furnace

With the colder temps coming, you’ll want to make sure the furnace is in working order. Make sure to get an appointment on the books to have the furnace serviced and the filters changed. Having your furnace checked doesn’t take very long and it will go a long way with your tenants to know they’re good to go.

 

Check the Roof and Gutters

Make sure there is no damage to your roof or gutters. In addition, make sure the gutters and downspouts are clear of debris to avoid blockage and potentially further damage.

 

Winterize The Pipes

The last thing you want is for your pipes to freeze because they are very expensive to have repaired, so make sure to have them winterized. Make sure exposed pipes are insulated and all exterior faucets and hose bibs are turned off.

 

Check for Cracks

Inspect the foundation, doorways, and windows for cracks and signs of moisture build-up. If water seeps in, it can cause additional cracks and further damage. Also, gaps in the doorways and windows can let in moisture and cold air so make sure to caulk any gaps.

 

Winter will be here before we know it in Round Rock, so it’s important to check these items off your maintenance list. If you have any questions or need recommendations, reach out to us! We are always here to help.



How To Make Your Rental Property Stand Out

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When advertising your Round Rock rental property, you want to make sure it stands out against other local rental properties. Each day your property sits empty is money out of your pocket. Here are a few tips to make sure it gets rented out quickly.

Curb Appeal

When prospective tenants are looking for rentals, they are looking online. The first pictures they see are of the exterior of the home, so you’ll want to make sure it looks nice. Make sure the weeds are pulled, the lawn is well-manicured, and trash cans are put away. You don’t need to go overboard, but small things will make a big difference. 

Staging

It’s hard to envision where the furniture will go and what the property will look like if it’s vacant – so consider staging the home to help tenants get a better idea. Avoid bringing in any personal items, but items to make the property feel more inviting that can help tenants imagine what it’s like to live there are helpful.

Repairs and Updates

Take care of your rental properties and make repairs and updates as needed. Even when you don’t have a tenant living in the property, make sure to clean regularly and make sure everything is in working condition. 

Know Your Competition

There are many rental properties in Greater Austin, and we want prospective tenants to choose yours. So make sure you do your research and know what else is out there. You can use this information to point out what’s special about your property compared to others in the area. 

 

At the end of the day, focus on what makes your property special against all others in the area. Keep it simple and do what you can to make it shine. If you have any questions or need recommendations, reach out to us!

 

5 Ways to Make Your Home Feel and Look New This Spring

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Whether you’ve lived in your home for years or are looking to sell this spring, we’re sure you’re tired of looking at the same walls for years on end. A new study discovered that homeowners now spend about 13 years in their homes. This is a considerable increase of about ten years compared to a decade ago. Many factors determine the length of homeownership: older homeowners aging in place, a home supply shortage, and more affordable housing payments if homeowners refinanced and took advantage of the low mortgage rates last year. Whether a seller or homeowner, here are 5 ways to bring your home back to life and make it feel and look new this spring!

1. Paint the walls

Paint is the most cost-effective way to make a massive difference in any room. This will be especially noticeable if the walls are chipped or show other flaws. 

But choosing the right paint color is the key to success. For a color that goes with everything, earthy colors or tinted neutrals are the colors you want. Both color types are soothing and easy to mix and match in your home. If you want to give off the illusion of more space, then off-white will be your friend.

If you’re selling this spring and want to attract homebuyers, it’s best to avoid colors that trigger a love-it or hate-it reaction. Think of trending colors like mint green, yellow, baby blue, etc.

2. Update the kitchen

You don’t have to renovate your entire kitchen to make it feel new, either! A few replacements and upgrades will help give it a new look. Some ideas are replacing old kitchen cabinets and handles with modern hardware, installing a touchless faucet, or installing or updating the backsplash. 

3. Replace outdated light fixtures

Any REALTOR® or photographer will tell you that lighting is essential. Lighting has a significant impact on a room by defining the room’s look and feel. Lighting fixtures go out of style, too, so consider replacing old chandeliers, sconces, and pendants. It’s also a good idea to replace the light bulbs themselves, depending on the mood you want for the room. For bedrooms, it would be beneficial to use soft-white bulbs, while the kitchen could benefit from daylight bulbs. Don’t forget exterior lighting either!

4. Increase curb appeal

Did you know homes with high curb appeal sell for 7% more than houses with a less than pleasant exterior? Your home’s curb appeal is people’s first impression of your home, and you know that saying, “you only get one chance to make a first impression.” And that’s true with homebuyers this spring! Increase your home’s outside appearance by adding landscaping or changing what’s already there. If you don’t have a green thumb, a simple task like trimming trees and shrubs will still make a big difference. 

5. Replace the carpet 

According to a March 2021 poll by the National Association of Home Builders, most homebuyers prefer hardwood floors. 32% said hardwood floors in the main living area is a “must-have”! So if your flooring needs a tune-up, consider removing the carpet and going for hardwood. Another option is to restore the original hardwood floors found under the carpet. Laminate hardwood floors are less expensive than natural wood and easier to maintain if you’re on a budget. 

If you need help sprucing up your home this spring to sell your home, contact us! 

How Your Home Can Make You Money

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Owning a home gives you a sense of security, a place to call home, and regular monthly payments as you build equity and your investment portfolio (investor or not), but there’s another unknown benefit; how your home can make you money. Here are ideas to generate extra cash using your biggest asset: your home!

1. Become an Airbnb host 

Becoming an Airbnb host is an excellent idea if you have the extra space. As an Airbnb host, you control how often and when you want to open your home. How much you earn will depend on how much space you’re renting out. Renting a house will get you more money than renting a bedroom. If you have a second property, listing a 4+ bedroom home can get you an annual income of about $29,000. If you go the Airbnb route, be sure to check the local laws to make sure it’s legal and if there are restrictions on home-sharing. 

2. Rent out your home

Keeping with renting, renting out unused living spaces is also a great income source. You don’t have to own a second home to be a landlord. If you have a finished basement, tiny home, or accessory dwelling unit in your backyard, these are all rentable options. You can also stick to the classic renting arrangement where you rent out a room and share facilities with the renter in your home.

3. Store other people’s stuff

If you don’t want people in your home, how about their stuff? People have a lot of things and do not always have the space to store them. Take advantage of that extra garage or shed space and rent it out. This is the easiest way to get some extra dough since there’s no maintenance or repairs compared to being a landlord. The space you have will depend on how much you can charge. Closet space can be $5 to $10 a month, while a garage or shed can be $100 or more a month. 

4. Charge for parking

If you have a prime location in a popular area of town, especially where parking is limited, like near a college university or downtown, you can capitalize on the need for parking! Neighbors, students, and office workers are a great source of reliable income since they’ll need a safe area to park their car regularly. According to specialized sites like Neighbor or Spacer, you can make as much as $200 to $500 a month renting out your parking space. Again, it all depends on location, though. 

If you’re looking for an investment opportunity or want to become a homeowner, contact us today! 

Benefits of Month-to-Month Tenants

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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! 

Vacation Homes Are the New Starter Home for Millennials

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Millennials are changing the way they buy houses and why they buy the ones they do. The usual path to homeownership and multiple homes was purchasing a single-family home to live in, then purchasing a second property as either an investment or a vacation home. But Millennials are changing it up by going out of order and buying their vacation home first. 

Why Are Millennials Buying Vacation Homes First?

One short-term rental platform discovered that millennials make up 40% of vacation homebuyers, an increase of almost 10% compared to 2019. It’s the largest share of any generation! Millennials cite reasons like extra income, building wealth, and having a property to vacation at as reasons why they purchase a vacation home as their first property. They get “the best of both worlds” as they continue to save for a down payment for their live-in home while also having an investment property to help pay the rent and mortgage. 

Remote work is a massive factor in this trend as the pandemic forced many workers to work from home. And working from home is an increasingly common work environment for younger Americans. With flexibility over work location, many Millennials seek a new location for vacations and remote work. Hence why vacation homes are taking a priority. 

Home prices are another factor as home prices have surged in many cities and metropolitan areas. Buyers consider new regions and locations to purchase a place, like in a rural location. Other living expenses are rising too, especially in popular cities. Homebuyers in high-rent markets use their vacation home as a loophole to avoid high home prices while still investing in real estate. 

Why Millennials Should Buy an Investment Property Home in Austin

Austin has ranked as one of the top U.S. cities for remote workers. Austin is known for its warm sunny temperatures and outdoor activities, making it a popular location for Millennials. With popular attractions like Lady Bird, Barton Creek, Lake Travis, and Zilker, there are endless opportunities for outdoor activities to choose from! 

It’s also quickly becoming the best city for employers as large entities like Facebook, Apple, Google, Tesla, and Oracle are expanding and relocating to Austin. More employers moving into the city will bring more residents moving for their jobs at these companies. And that means there will be more renters in the market for a home. 

Plus, Austin is already the #1 housing market for Millennials. A homebuying platform collected data of the 100 largest metro areas to find the best home markets for Millennials, Gen Xers, and Baby Boomers. Austin ranked #1 with Millennials and #1 for Gen Xers. The study found that Austin has 40 times more new millennial residents on average compared to the other 99 metros in the study. 

Contact us if you’re ready to buy your first investment or vacation home! Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.