Learning Center
4 Tips for Profitably Flipping a House
Wednesday, June 13, 2018
The concept of flipping a house is a major trend in the world of real estate investing. Flipping a house gives an investor a chance to buy a home at a lower price and give it an upgrade. After the upgrade is complete, they can resell it at a higher price.
About 3% of Americans say they are real estate investors and want to buy property within the next year. Even though it seems like a good idea, there are a few rules to live by when it comes to flipping property. Here’s what you need to know.
Find a Home with a Good Location
Any investor or residential property management group should know that location is everything. People are going to want to live in a nice area that has the promise of growth. Look for a home that sits by a good school district, nice restaurants, shopping centers, and parks. A home near amenities such as these is more likely to get more attention than one that’s in a deserted area.
Find a Home That’s Different, But Not TOO Different
Finding a unique home to offer to potential buyers may seem like a good idea, but if it’s too different from every other house, it can scare them off. A unique home is a good idea in theory, but it won’t sell if it offers challenges to a buyer’s daily routine. Oddly enough, standard, cookie-cutter homes are often in higher demand and can sell quickly.
Find a Home That Was Built In 1978 or Later
A lot of homeowners love the charm of older homes. But there are actually many problems that come along with homes built before 1978. Those homes may contain lead-based paint, will require a lot of renovations, and will have to be upgraded to comply with certain laws. If you don’t follow these regulations, you may face fines up to $30,000 or more. Newer homes are easier to sell or rent out, as they have updated features and appearances.
Find a Home with a Good Floor Plan
A good floor plan is key to any home. Otherwise, the potential homeowner is going to have trouble getting around. Look for a home that has an open floor plan so people can move from room to room with ease. If the floor plan includes large closets, a foyer, and a laundry area, that’s a plus.
If you're an investor or part of a residential property management group, flipping houses may help you get more clients. People are constantly looking for houses for rent and property for rent and would love to spend a little extra money on a home that had recently been flipped. Speak with your residential property management team or investment group and start searching for the perfect location.
If you have any questions about property management services, please give us a call at 407-261-5610
Things to Consider Before Jumping into the World of Property Management
Wednesday, June 13, 2018
Property management is a great field to get into if you love working with people and helping the community. It gives you the opportunity to get to meet new people and strengthen your problem-solving skills.
In 2016, the average price of a new home was $372,500. Because the cost is so high, many people tend to rent homes, creating a need for property managers. While it seems like a good job for many people, there are a few things to consider before taking the leap and taking on your own property for rent.
No two days in the world of a property manager are the same. Some may be more challenging than others, but each day can offer you new obstacles and opportunities. For instance, one day you may be dealing with a tenant who doesn’t like the look of their front door and wants it replaced. They may want it gone, but the landlord who is running your property for rent doesn’t want to change it since it’s only a year old. You have to figure out their common ground and find a way to try and make both parties happy. If you’ve ever worked in customer service, you know that the "customer is always right." But in this case, you are dealing with three different groups of people, including yourself. It can be challenging to find a solution that works for everyone.
Because you’re going to be dealing with a lot of different situations and many different types of people, it’s obvious you need to make sure your people skills are on point, along with your negotiation skills. In addition to those skills, you need to have a basic understanding of repairs and maintenance for your property for rent. The landlord you are working with will likely hope that you can get them the best prices and make repair recommendations. If you can’t make any specific recommendations, offering the tenant an alternative solution can ensure their trust in you. Even though you’re trying to help the landlord out, you also have to remember that the tenant is involved, too. Do what you can to make the repair process move as quickly as possible.
If you thought that working with debt collectors is something that you only had to deal with in your personal life, think again. But, in the case of a property manager, you’ll take on the debt collector role. You need to do whatever you can to make sure the tenant pays their rent on their home. The landlord may come to you and tell you that they haven’t gotten their money from Jane Doe and want it immediately. Unfortunately, Jane Doe might have just lost their mom and are dealing with medical issues themselves. This is where it can get tricky for those working for a residential property management team. While it may be hard to ask someone that is going through a hard time for money, you need to put feelings aside and get the payment.
Property and rental management is a great field to get into right now, but there are a few things you need to consider about the job before jumping in.
If you have any questions about property management services, please give us a call at 407-261-5610
3 Ways You Can Charge More For Rent
Wednesday, June 13, 2018
Owning property for renting purposes can be a lot of work, often requiring that you provide a number of different property management services, but your investment can seriously pay off over time. In order to have a successful investment, though, you need to evaluate many different things. Choosing how much you want your property for rent to cost per month involves a lot of different factors, depending heavily on the neighborhood it's located, the property management services you provide, and the condition of the house or apartment. That said, there are a few ways you can incentivize renters to pay more each month. Here are some examples.
Allow Pets
Roughly 44% of all American families have a dog, and 35% have a cat. It's understandable if you decide against allowing pets due to the potential damage they can cause, but you lose out on a significant portion of the renting population by excluding pet owners. Instead of saying no outright, you can charge a nominal fee per pet to cover your risk.
Pay for Utilities
Electricity can certainly be expensive, but if you research the general going rate of rental apartments and homes in the area and offer your place with utilities included for a monthly increased price higher than the utility bill would generally add up to, you can actually make money on this trade. Besides, people love seeing the words 'Utilities Included' in a rental ad.
Provide Yard Care
If you are renting out a single-family home, upkeep is going to be important to prospective tenants. Providing lawn care and pool care will help them, and you can package the cost into their rent. Conversely, and perhaps even more effectively, if you own a property in the city you can provide free parking. This will save tenants possibly over $1,000 in a year, and you can bake that cost right into the price of the rental.
When considering becoming a landlord, look into all of your pricing options. Renters love rental management services because it means less work for them and ultimately less money out of pocket. Of course, the money they are saving goes back into their monthly payment for you to capitalize on.
If you have any questions about property management services, please give us a call at 407-261-5610
