In the world of real estate, having a rental property is an excellent investment. You will benefit not only from long-term investment returns but also from interim income. This is why many investors are looking for rental opportunities. However, being a landlord is not an easy job. It can be pretty demanding at times because it requires many skills and knowledge about real estate. So, if you're having a hard time being a landlord, you should definitely consider hiring professional help. Read this article to find out about 5 signs that show it's time to hire a property manager!
You don't have time to manage
One of the main reasons landlords choose to hire a property manager is they simply don't have enough time to manage their investment. More often than not, being a landlord is not a full-time job, but it sure is time-consuming. It comes with regular responsibilities and requires total commitment. This being said, if you have a full-time job, managing your rental property as a side job can become an issue.
Another problem can appear if you have multiple rental properties. The more properties you're leasing, the bigger management needs you'll have. It's hard to keep up with one; imagine with two or more! Therefore, it's highly beneficial to hire a professional in situations like this.
You have a problem with tenants
Being a landlord means choosing reliable and responsible tenants who will be respectful of your property. Unfortunately, this is harder than you think. As a landlord, you might face a lot of unpleasant situations. Here are the most common examples:
You don't live nearby
Not living in the area of your rental property can turn into a problem when it comes to being a landlord. The distance can intervene with your management obligations. For example, even if the property is in excellent condition, there will be times when you need to drop by and pick something up or inspect the building. You will be unable to respond to these emergencies if you don't live nearby. As a result, anyone who lives far away from their commercial property should think about contacting a professional manager to keep an eye on it. Hiring a property manager eliminates the need for you to commute back and forth every time your tenants need something. You'll be able to rely on the manager and their expertise when it comes to managing your property without your supervision.
You're struggling with leasing
As an investor, you want to make the highest possible profit from your investments. If you're renting a commercial property, this means you'll have to have tenants at all times. To make this happen, you have to meet the tenants' needs and keep up with the current real estate trends. Learn about what's hot on the market at the moment, how you can interest potential tenants for your apartment, what you can do to improve it, etc.
Every good property manager has this kind of knowledge, so it would be a good idea to hire one for some expert advice on the matter. Tenants may relocate for a variety of reasons, but the property managers can assist in lowering turnover. They know how to make tenants happy and keep them from looking for a new place to rent. Additionally, they will definitely have good marketing strategies and a network of interested tenants to occupy your property. All things considered, hiring a property manager is a win-win situation.
You don't know anything about rental laws
Every successful landlord should know the local landlord-tenant laws. Every municipality has its own regulations when it comes to the relationship between the landlord and their tenants. In a nutshell, these regulations are the guidelines on what your obligations and responsibilities are as a landlord, and they apply to tenants as well. So, before renting a property, you should get to know these regulations very well. If you don't have time for this, or you're having problems with understanding and applying all the rules, you should definitely consider hiring a professional property manager. They will know these rules by heart, and they'll take care of everything you are having trouble with.
Additionally, property managers can help you with getting all the legal documentation you need for your rental property. As a landlord, you'll have to get a few licenses and follow proper regulations when it comes to your property. All this can be a bit overwhelming, so it's a good idea to have a professional take care of it. They know every code and regulation, and they can help you obtain every license you need. It's also convenient because the property manager will make sure everything's done according to law, so you won't have problems in the future.
Are you ready to hire a property manager?
Based on the above mentioned information, we can all agree that being a landlord is a demanding and time-consuming job. It requires a diverse skill set and proper knowledge of the real estate market and its constantly changing trends. Therefore, if you're struggling with any of the things we mentioned in this article, it's time to contact a property manager to help you take the management obligations and stress off your plate. This would allow you to continue expanding your business without dealing with minor problems that can quickly escalate into major headaches. So, don't hesitate and make that call!
A lot of challenges come with owning and renting properties. From remembering to bill your renters to staying on top of maintenance needs for every property, there is no shortage of things to do.
If you own many properties that you rent out or even just one property, there are a lot of headaches and challenges you can face along the way. One thing you must do as a landlord is make sure the property stays in shape. Amanda Hinson, who rents out a property of her own, says that she must “call on tree trimmers, painters, construction workers, the plumber, and electrician for help with maintenance. If there's something I can manage myself, I will do the work such as cleaning gutters.”
However, when you don’t live near your rented property, it is not easy to find the best options to keep up the maintenance, let alone to do the work yourself. You also can’t check if your renters are following the rules, such as not having more people than agreed upon, or taking on another pet. So how can you live with peace of mind while managing your property? By using a property management service!
Reno Property Management Service with Clark Real Estate is a great solution for owners in the Reno/Sparks area. A family business run by Charles and Rick Clark, they will help you rent out your Reno or Sparks property without the usual stress and challenges.
When asked why someone should use a property management service, Amanda Hinson said that it was “convenient, low stress, it provides me peace of mind and freedom to manage my personal house more. I can give time to what's really important.”
Give time to what is important to you, such as your own home and family, while the professionals help you advertise, collect payments, do maintenance, find good renters, deal with emergencies, and more!
And on the flip side, renters can find property more easily with the Clark Real Estate website. They can find what they are looking for among Clark Real Estate’s options, while you still get money as the property owner.
As Real Estate’s brokers find the best tenants for your properties and find the best properties for tenants using their unique qualification process, start relaxing and doing what feels most important again.
If you are fortunate enough to find yourself in a position where you think you can afford to own property, you then have to deal with making the biggest and most complicated purchase of your life. For some, adding to the complication of a major renovation seems like madness. But for others, fixer-upper homes are the most achievable way to get the house of their dreams. If you have been considering joining the fixer-upper club, here’s what you’ll need to think about.
The Buying Process
The first thing you need to do is determine your budget. In the case of a fixer-upper, this has to include both the price of the house and the renovation costs, but it is easier for you to think of them together for the time being. Good indicators to establish a budget include your annual income, money saved for a down payment, monthly spending, loan type, and current average APR. Don’t forget that there are plenty of hidden ongoing costs to owning a home, so you also need to take things like insurance, taxes, and maintenance into account.
The next step for most homeowners is to get to know their local market and see what kind of home they can buy in the area with said budget. Nolo.com suggests that the best way to know how much to offer on a fixer-upper is to figure out the value of the home if it was fixed, calculating the cost of the work, and then subtracting one from the other.
Once you find the fixer-upper of your dreams (and budget), there are a few additional steps you need to cover before making an offer. Get a full home inspection, which will highlight any repair work you may have missed during your visit, and re-adjust your offer accordingly. If a house you love has severe structural issues that would cost a fortune to repair, it may not be worth it.
As you look into financing your purchase, research the types of loans that will work best for your situation. For example, if you’re a veteran with so-so credit and not a lot socked away, you are eligible for a VA loan, which can help when it comes to finding decent interest rates, plus there won’t be any mortgage insurance. On the other hand, if the home needs serious work, you can look into an FHA 203(k) loan. These loans provide funding for the home and the necessary renovations, in addition for funding that covers the time you can’t live in the home.
When it comes to renovating your new home, planning is the most important thing you can do. It may be tempting to throw yourself headfirst into the first DIY project you can think of, but this is not the most efficient way to proceed.
Make a full list of everything that needs to be done, and sort tasks by priority. At the top, place anything that is necessary to make the house livable, such as electrical work, plumbing, or structural issues. Then address changes needed to make the house attractive. Finally, finishing decorative touches go last.
A full renovation schedule is important, but it is by no means the only thing you need to consider. Real Homes has a detailed checklist of things you need to do before you start renovating, covering everything from securing the building site to learning about your home’s architectural features. And if you haven’t already, invest some cash into some quality power tools such as drills or saws to make those DIY projects a little easier.
There is an accepted idea in society that your first house is a “starter home” and that you will eventually trade up to a bigger and better one. National statistics say the average first-time buyer stays in that house for 11 years before moving on to another home. However, there is also evidence that many first-time buyers, particularly young millennials, are skipping the starter home altogether. Instead, they are choosing to wait longer and put in more effort to buy a home that is right for them for the long haul.
Whether you choose to re-sell your fixer-upper will ultimately depend on two factors: firstly, whether you bought the house with the long-term in mind, and secondly, how much value you have added through your renovations. Do bear in mind, however, that experts recommend living in a home for a minimum of five years before selling.
Buying a fixer-upper for your first home doesn’t have to be a terrifying and intimidating prospect. As long as you are reasonable with your budget and expectations and do your homework, your fixer-upper can either end up being your dream home or a great first step on your way up the property ladder.
First-time home buyers bought more than two million homes in the United States in 2017. Many of those homes were not new, which means quite a few people found themselves in possession of a fixer-upper. These houses can be a dream or a nightmare. If you get the house for a good price, you can make a considerable profit by fixing it up and selling it.
Of course, this may depend on your area of the country; the average price for a fixer-upper in Boston, Massachusetts, for example, is $420,000, but the average will be much lower in less-populated and rural areas. And if renovations head south, you could end up pouring a lot more money and resources than you intended into a money pit. Here are a few suggestions to keep your experience on the positive side.
The Buying Process
As a first-time home buyer, get prepared before you even begin looking. Check your credit score, know what kind of down payment you can afford, and get pre-approved for a loan so you can make an offer without having to wait.
Looking beyond traditional real estate listings often yields results when you’re searching for a fixer-upper in your area. Check your local courthouse for foreclosure notices and attend auctions and estate sales. Because you’re willing to do some work on a house, you’re more likely to find a gem others will miss. The ideal fixer-upper is the worst house in the best neighborhood.
Before you buy, make sure you get a home inspection so you know exactly what you’re facing in terms of repair work. You want to make sure you’re not missing something major that will spell disaster once the house is yours.
Prepping for DIY
Determine what projects you need to hire out and what projects you can handle. For the jobs you’ll be doing, make sure you have the appropriate tools. A few common power tools include a drill, circular saw, jigsaw, oscillating multi-tool, and an orbital sander. These will get you through most projects. If you’re not sure which models or brands to buy -- or which tool to use for which job -- do some research or ask your contractor or an experienced friend for recommendations.
What Projects to Tackle First
Deciding what projects to start with will depend on if you are living in the home. If you’re living there, you will likely remodel one room at a time so you can live in the other areas. If you have other living arrangements, you can work on the entire home at the same time.
Major projects come first. Knocking down walls, tearing out old kitchens, ripping up flooring, and doing major plumbing and/or electrical work are large changes that should come before smaller cosmetic improvements such as paint.
If you are working with a contractor, make sure he communicates his remodeling plan to you. If you’re doing everything on your own, create a timeline before you pick up the first hammer.
Love It or List It?
As a popular show on HGTV asks, once you have completed the fixing up process, should you love it or list it (stay or sell)? If you are emotionally invested in the property due to the blood, sweat, and tears you poured into it, it makes sense to stay. If the entire process is just a business transaction to you, you’ll be more willing to sell. Either way, you should have your house reappraised once repairs are finished. If the home value has increased significantly, you may be in a good position to sell quickly (make sure you research capital gains tax first).
If you’re up for an adventure, buying a fixer-upper can be an exhilarating experience for first-time home buyers. Go into the process with your eyes open, and get lots of advice from people more experienced than you. Every fixer-upper process has moments when you’re not sure if things will work out, but the end result can be well worth your time, effort, and investment.
Photo from Unsplash
Guest contribution by Bret Engle.
With Valentine's Day just a heartbeat away, now is the time to think about those traditional themes of loved ones, property management, and real estate. Well ok, maybe these three topics aren't routinely considered all at the same time, but why shouldn't they be? After loved ones, real estate and homes are things in life that are pretty high up on everyone's priority list - so let's take a 'seasonal' look at how they might be related to each other.
Love yourself with real estate investment
A few ways that someone might pamper himself or herself to show a little self-love is to buy a new set of golf clubs, schedule a relaxing massage for those aching muscles, or perhaps go a bit further out on the limb and buy that alluring new new sports car. While all those are wonderful perks to contemplate, none of them - even the car - has the permanence or the deep inner satisfaction that an investment in real estate brings. And even better - the security and the value that real estate returns to you is very much like being loved back.
Love your spouse with your real estate investment
There might not be a better way in the world to express your love to a spouse than with a real estate investment. Sure, some people might object and suggest diamonds or other jewelry as the supreme expression of caring, but jewelry usually ends up stowed away in a box somewhere, only to be retrieved for special occasions. An investment in a home is something that surrounds your spouse every day with the warmth and depth of your feeling, and for any other kind of property, it still represents a long-lasting commitment to him or her that cannot fail to impress with its own unique permanence.
The steamy side of love and real estate
You could do the expected and arrange for a fancy date to celebrate Valentine's Day with your spouse or loved one, but you've probably done something like that already, if not many times before. This year, impress him or her with something completely different, and earn major kudos for originality.
Why not stay at home this time around and celebrate the day for lovers by discussing some of the red-hot topics of real estate and property management? Try nibbling on your lover's ear while whispering the latest market statistics on average prices and absorption rates. If that doesn't reduce him/her to quivering jello, a candlelit dinner with breathy exchanges on amortization schedules is sure to do the trick.
And if these two don't quite provide the spice you'd hoped for, you may have to bring out the heavy artillery. Slip in that video on urban sprawl and tax assessments while giving a slow, sensuous foot massage - it just might be the most memorable Valentine's Day you ever share with your loved one.
Gratitude is the first thing we like to decorate our homes with during the holiday season. The simple act of reviewing what we're thankful for is the fastest and easiest way to make your space brighter. Here is a list to get you started:
I am thankful for
-the roof over my head
-a place to eat
-a place to sleep
-a place to put my things
-a place to connect with family and friends
And what else?
What are the special features of your home that make it unique? What furnishings and appliances make your life easier? What decor makes you feel special and luxurious?
Take a walk through your home reviewing each and every thing that you're thankful for.
Are you finding that you're frustrated, and can't find anything good about your home?
That's where we come in! We've found that the best place to start if you're frustrated with your home is to list off what you WANT your home to FEEL like.
When you walk in and kick off your shoes, do you want to feel relaxed or energized? Warm or cool? When you wake up in the morning do you want to see the sun shining through, or do you want those extra hours of sleep in a darkened room?
Let's review your wishlist so we can get you into a home that fits! Whether you want to rent or buy, Clark Real Estate wants you to be thankful for your home--and we'll work hard to make it happen!
Clark Real Estate
305 W. Moana Ste C
Reno, NV 89509