Let’s face it- Halloween can be fun as it kicks off the Fall season with the change of leaves and the start of the holiday season, but it can be scary for some as ghouls, goblins and ghost will send a chill down a person’s spine.
Property management is the same too. You have heard about the Slum Dog Millionaire, or that rich uncle Rich that owns 18 properties while manage it himself in his sleep. Or the extreme case where somebody is so stressed from owning one investment property.
Here are 4 things to howl about if you have investment properties to ensure that you are getting the return on your investment property.
The right lease amount – The Price is Right
It starts with knowing the local market and having a wide knowledge about real estate. It is ideal to have the research tools in place that will help you determine the price that the investment property will yield in terms of rent. For residential properties, one can do some research on Apartments.com, Craigsist or Har.com and see what are some of the rental properties generating in terms of monthly rent.
Price it too high, the rental property will sit for months – or never get rented or attract the the ghouls n ghost that will live rent free.
Price it too low, you leave money on the table.
Finding the right tenants – not Addams Family
To avoid placing the Addams Family in your rental property, it starts with the advertising placement and network to get the right tenant into the property. Craigslist is often a good place to start off but it is often not the place to find the right quality tenant as a person might not spend hours weeding thru the thousands of listing to find that property.
Screening the tenants makes to ensure that they have the likelihood to complete the lease agreement of the rental is a must. Elements such as having a stable household income, rental history to ensuring that the tenants are not prone to sucking blood of the living, or other criminal acts should be a key consideration when placing a tenant.
Rent collection & financials
Collecting rent on time and without a hassle is not as easy as getting candy on Halloween. Setup a process and communicate that there are implications of late fees if payment is received beyond a specific date.
There is also taxes as Uncle Sam will need a cut of any profit that was generated from the property managed. Make sure that you have your financial paperwork all in place, or Uncles Sam thru the IRS will haunt you and even your estate after your death.
Maintenance and Repair
It is often a good idea to set aside 1% of the value of the property for maintenance and repair every year. Often it is not required as a well built and newer homes will require less maintenance and upkeep, however it is a good rule of thumb.
In instances where you do not have the time, nor the expertise to manage the repair or maintenance, finding property management company that is well versed in the repair of a home is definitely a must. Screen for companies that have a good network of home repair experts that are bonded-insured and reputable. The last thing that you want to do is to look up Yelp or Yellow Pages for a random plumber when the toilet in the investment home is spewing sewage – and the tenant is yelling at you on the other line at the same time.
Eviction does not need to be scary
Unfortunately, that is a risk and a hard thing to do for all parties. It can get expensive too, if not done right.
Even tenants who are highly qualified at move-in can find themselves unable to pay rent during their lease for many reasons including illness, job loss, divorce, and more. When the tenant breach the contract for non-rent payment, the recourse is to help the investor or tenant regain access to the property and re-lease it. Conducting an eviction can be tricky as there are city, county, state and federal laws to abide to, but it can be done to protect the interest of the investor-owner in a timely and legal fashion.
Taking the Spooky out of Property Management
There is no silver bullet in any investment, including investing in property but we take a bite out of the ‘scary’ and ‘spooky’ in property management in Houston. We are local, knowledgeable and have been in business for over a dozen years where our experience and processes in place to help Houston residential commercial properties investor maximize their investment. We don’t run around with a garland of garlic around our neck when helping place tenants in the property as we have experienced full time staff that is vested in making it a long term relationship – and looking forward to managing the rest of your property portfolio as you grow.
Happy Halloween,
Your friends at Apogee Properties
