Reasons Why You Might Need a Property Management Company

Reasons-Why-You-Might-Need-a-Property-Management-Company

Having a rental property can be overwhelming for any landlords or owners. And one of the biggest decisions that you can come up with is whether you should hire a property manager to look after your properties. There are many factors that may influence a property owner’s decision it may be his or her accessibility to the property they own, their availability to manage and check their tenants and if they can afford the cost of employing a professional property management firm.

If you live near your property you will be able to keep a close eye on things. Also, you will be able to visit your rental property on regular basis which is required for maintenance, inspections, and collections. On the other hand, if you live further from your rental house or apartment it would cost you so much time and money to visit it regularly. Scheduling a monthly visit to check the condition of your properties and tenants and responding to their calls in the middle of the night can be burdensome for landlords. A property manager can make these things easy for you and ensure you that your property is taken care of even if you are in the comfort of your home.

Not every one of us has the special gift of negotiating with people under pressure. At the end of the day it takes a professional person to handle the ups and downs of your business. Aside from collecting the monthly rent and making a regular inspection and maintenance there are more other problems that may encounter everyday that can push people to their limits.

As the number of rental properties you own increase the more problems you will face as you manage your own properties. Many investors with large portfolios take advantage the service of property managers. It would be more efficient to hire the skilled people to take care of your investments. Moreover, if you do not have the experience in home maintenance and repairs they are the one who can help you get things done. And with the help of a professional property management company you can ensure that the work is done well in timely manner.

Another advantage of hiring a property management firms is they can help you in advertising, fielding calls, help you find a good tenant to decrease your vacancy rate. They can also help you handle the accounting and keeping records for your property.

Customer service is very important in rental property business. We know that each tenant requires attention even to their smallest concerns. The management team you respond to your tenants when an emergency happens in your property. They can quickly fix your property and handle problems immediately. Furthermore, they can help you instantly resolve problems with tenants like late payments. They could also help you ensure that your property is run legitimately to prevent lawsuits.

Finally, your decision whether to hire or not a management firm to handle your business will depend if you are financially capable of employing one to manage your rental property dealings. Assess first the opportunity cost that you will be taking once you finally employ a property manager.

Before you decide if you will hire an expert in managing properties think first if you really need them and if it will be beneficial for you to seek for their help.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Why to Consider Investing in Properties

Why to Consider Investing in Properties

There are many avenues in which you can invest your hard earned money, such as stocks, bonds, shares and property. If you are considering your investment options in terms of stocks, bonds and shares it is a good idea to get the advice of a financial advisor. When it comes to property investments, a property investment specialist can recommend properties that suit your requirements. More people are noticing the growing economies for property investment opportunities recently. What is it that makes growing economies so attractive for investors?

There is speculation that the price of properties will rise in 2017 as the population increases. It means that more people will require rentals and purchases of homes so now is a good time to invest in the residential market.

Certain countries have shown much growth over the past couple of decades and consequently they are growing into maturing markets. More commercial buildings are being erected in the town centres which changes the skyline of the cities. The new buildings add to the modernisation of a growing city and gives it a futuristic appeal.

Properties in certain maturing cities offer more space for the equivalent price asked for in other major capital cities. You can get a larger apartment or office space for the same price you would in a first world country. The larger spaces are more attractive to people seeking homes or commercial office space. So if they can get it a lower a price, there could possibly be a bidding war for the right property in the right location.

Another factor contributing to the growth of certain cities is Expo 2020 which is the first world expo that will host 72 countries. It will be the hub for new developments, new ideas and to connect different countries. This will see more jobs being created therefore the demand for property will increase. This demand will increase the price of property investments.

Growing cities have become popular tourist destinations. This peak in interest has caused a rise in tourist numbers and, consequently, a rise in accommodation such as hotels. Beautiful modern buildings are the homes of hotels and these attractive buildings encourage tourists to visit the growing cities.

As the markets mature, more developments are on the rise. The property market is growing and new architectural ideas are being brought to life. Therefore there are quite a number of reasons to consider investing in a growing market.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Why You Should Never See Your Investment Property

Why-You-Should-Never-See-Your-Investment-PropertyWhenever I give this piece of advice, I often get blank stares. It is a very different approach to what most property investors take. But it is actually a smart strategy when you start to understand the reasons why.

But so what if you visit your investment properties?

Sure, if you’re okay with getting the results most investors get, feel free to ignore my advice and do what most investors do. But if you want to go further than most investors, I strongly recommend you stick to this rule.

Never see or inspect your own investment property.

A good investor never visits their property, as a general rule. In fact, you don’t even need to live in the same state as your property.*

* Side note: this is actually very exciting as it means you are FREE to invest anywhere in the country, opening up way more options for awesome locations. But that’s another topic entirely.

Why You Should Never Inspect Your Property

  • Before you finalize your purchase of the property, you’ll get a good building inspector to check it. They’ll do a far better job than you could ever manage, so checking the property yourself is a waste of your precious time.
  • Once the property is in your hands, you’ll get a good rental manager. It is their job to routinely inspect the property. As a professional, they will do a far better job than you could.
  • You should have full confidence in the professionals you hire to take care of your property for you. If not, you have the wrong people.
  • Inspecting the property in person will result in emotional attachment, which is bad for financial-based decision making.
  • Your time is worth more than that.
  • The real money is made in capital growth, something which you can’t see at an inspection.

So get the professionals in and get them to do it. It’s their job! Stay emotionally detached from the property and focus on making money – YOUR job as the investor.

Just because you shouldn’t visit the property in person, doesn’t mean you should ignore it. You should be looking ahead to see what the market is doing and anticipating what your capital growth is likely to do in the future. This will help you with growing your portfolio, which is how you really make money.

The exciting part is that you can do all of this online.

How to Inspect for Capital Growth

  • Check online sources for evidence of infrastructure projects and investment in the area
  • Is the population growth trending upwards?
  • Are more jobs being created?
  • What notable changes are happening in the area that might attract more people?

Inspecting Your Property is a Waste of Time

And sure, you could stop by your property and have a look. But what are you going to see? A house? Yep.

If you actually happen to notice any problems while you are there, you’re very unlikely to be able to solve them, unless you’re a qualified builder. And because you lack the qualifications and experience of a rental manager, you probably won’t understand the laws that govern how you should deal with your tenants. It’s best to avoid wasting your time and effort and let the professionals handle it.

Even though it sounds counterintuitive at first, it makes sense to never inspect your own property.

If you feel that you need to inspect your property, something isn’t right.

Perhaps you’re in a situation where things aren’t going as smoothly as they should. Or perhaps your team aren’t doing their jobs right.

If you’re struggling to find a good building inspector or rental manager, or your properties are causing you problems that you feel need your personal attention, find a good property investment coach to help you solve these problems as soon as possible.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Property Management and Rental Terms Glossary

Rental-Property-Management

Moderate Housing: This sort of lodging is that of which a government or state office oversees with an end goal to offer help and control the rent to the individuals who meet a specific foreordained criteria.

Luxuries: Intangible and unmistakable elements that are incorporated into or on a property that improve the allure or estimation of the property.

Flat: A multi-family assembling that is intended to house separate people or gatherings of families inside the same building.

Expedite: A land proficient that buys and offers property for others with a specific end goal to get a commission. This expert must be authorized and qualified to rehearse in the state he lives in.

Apartment suite/Condominium: A multi-unit fabricating that takes into consideration singular units to be claimed by its inhabitants. The normal components of this kind of building are possessed by all proprietors inside the townhouse.

Routine Housing: This kind of lodging sticks or complies with the business sector rate, or satisfactory benchmarks, of the territory’s lodging.

Co-Signer: An extra endorser on a lease or home loan that is utilized as a part of request to check the personality of the guideline proprietor or to give a specific level of surety to the moneylender or landowner.

Duplex (House): A house that was intended to house two separate people or families inside the same house. Case in point, a house that has an upstairs for one family and a down the stairs for another family is viewed as a duplex.

Square with Housing Opportunity: The open door for all subjects in America to have the capacity to live in different lodging groups paying little mind to race, sexual orientation, age, nationality, familial status or incapacity.

Morals/Professionalism: An arrangement of standards and good rule that become possibly the most important factor when directing proficient conduct.

Expulsion: A procedure through legitimate means with an end goal to expel a man from their home because of an infringement of the assertion, whether the occupant has not paid rent/contract or on the off chance that they have abused another type of the understanding, for example, commotion unsettling influences.

Reasonable Housing Act: This law is of a government status and was placed in actuality to stop the separation that happens in lodging in view of race, age, shading, handicap, sex, religion, national starting point and familial status.

Lodging Assistance Payments (HAP) Contracts (PDF): The HAP contract is utilized so that those under the voucher project can get area 8.

House: A living arrangement in which individuals live.

Lodging and Urban Development (HUD): The mission of HUD is to build the entrance to lodging that is moderate without separation; bolster the improvement of the group; and expand the homeownership rates.

Pay Levels: These are points of confinement as characterized by the administration that are utilized to set up expense credit limits and different sorts of moderate lodging.

Toxic Paint Disclosure: Requirements that got to be powerful starting 1996 to guarantee that families and people are made mindful of homes that contain toxic paint.

Lease: An oral or composed contract that is created between a landowner and his inhabitant that furnishes the occupant with the privilege of select ownership of the home for a particular measure of time. By and large talking, for leases that are longer than one year, the assertion must be in composing.

Lease Option: An assertion that permits the inhabitant the choice to buy the property they are renting toward the end of the lease term, or some time amid the term of the lease.

Lease Renewal: The restoration of a lease once the term of the lease has terminated.

Lease Term: The measure of time that is settled upon between the landowner and inhabitant in which the occupant will possess the property.

Tenant: The occupant who has concurred for the term of the lease.

Lessor: The proprietor who has concurred for the term of the lease.

Low Income Tax Credit (LITC) Properties (PDF): These sorts of properties give the proprietor a specific measure of expense credits in return for leasing to qualified occupants as assigned by the Justice office, HUD and the IRS.

Support: The upkeep and consideration of a property.

Persons With Disabilities Act: A demonstration that insurances rise to open door for those with inabilities.

Pre-Qualification – This is the main stage in the offering procedure where the most extreme advance sum for the candidate is resolved.

Property: A bit of land and additionally the perpetual apparatuses, for example, structures, that is joined.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

How A Property Management Company Helps With Quality Renters

How-A-Property-Management-Company-Helps-With-Quality-Renters

One of the toughest parts of being a property investor is finding an outstanding tenant to fill your vacancy. What makes an outstanding tenant? The two most important things are that the tenant pays their rent on time and cares for the property as if it were their own.

According to MarketWatch.com, considerations for placing a quality tenant in a property is more valuable than even the old adage of location, location, location when investing in the rental housing market. As such, this is one of the most valuable aspects of working with a property management company. A good property management company will find you rock star tenants that will not only pay the monthly expenses on time, but also keep the home looking as nice as it did the day they moved in.

But what do property management companies do to make that dream tenant a reality? We’ve highlighted some of the most important steps a firm can take to protect you and your investment.

The most important aspect to finding a quality renter is the screening process. A reputable property management company will utilize a nationwide screening company to ensure the most qualified candidates are found.

Several factors come into play when screening a potential renter. Things like criminal and sex offender history are good places to start. But beyond that, other items that will be checked include credit history, verify income, check rental history and search for past evictions. By thoroughly researching potential tenants, you can feel confident about the tenants you allow in your home.

Also, by being available to take applications online 24/7, a property management company will be able to swiftly process the applications received and get a quality tenant in your property faster than if you did it yourself.

A reputable property management company will also likely have a marketing department that will utilize as many resources possible to reach potential renters. This is particularly important because quality renters may seek out a reputable company that appears more legitimate rather than work with an individual one on one. With rigorous marketing, quality renters will gravitate toward properties represented by a reputable firm.

A good property management company will always strive to treat tenants with the utmost respect and address their needs swiftly. A tenant should feel that the home they inhabit is more than just a place to hang their hat, they should care for the property as much as if it were their own. Even the best tenant can become disgruntled and less than motivated to care for the property when they feel they are not being treated well and their concerns not addressed.

By working closely with the tenant, a property management company helps to keep the tenant happy and willing to do the little extras that keep up your investment. For many investors it is not possible or practical to build this relationship themselves and by letting a management company take over the work, you can rest assured the tenant will be happy to call your house their home.

Also, keeping a good quality tenant happy in the property means they are more likely to renew, which will keep costs down and keep the steady stream of income from the reliable tenant coming in to you.

Finally, much in the same way that having a sign for a security company outside your home can act as a deterrent to burglary, association with a property management company may deter unqualified renters from applying in the first place. Often, those who cannot meet the rigorous standards set forth by a property management company will seek out individual landlords who may not have the knowledge or resources to help find qualified candidates. When you partner with a property management company, you send the message to potential tenants that you are seeking quality and will not be taken advantage of.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Considering Buying Income Property? Have A Revenue Strategy

Considering-Buying-Income-Property

Many savvy investors realize how essential real estate investing might be, as a component of one’s overall strategy, etc! Some get involved as partners or investors in larger projects, where they depend on others to make the right decisions. Others, however, prefer to make their own decisions, and invest in smaller projects, where they become responsible for decisions and strategies. Before getting involved in an Income property, one should carefully consider, which strategy, he will follow, in terms of revenue flow, pricing, etc. Before doing anything, an individual should carefully examine a potential property, in terms of the anticipated return on investment. This means when you look at the price paid, what percentage will you receive, based on the revenue flow, minus the continuing expenses (such as mortgage interest, taxes, utilities, insurance, etc). Different people have different perceptions and ideas, in regard to what that percentage should be, but I believe one should aim for a net 6%, to make the project worthwhile. Let’s evaluate four key components.

1. Know your market: Pricing is not merely picking some number out of a hat, and automatically, receiving that total! Rather, one must evaluate what the competition and marketplace/ conditions, indicate as the realistic range. Consider the ramifications of which segment of the range you opt for! Pricing at the upper end might provide more revenue, but there may be certain risks. Pricing too low, might not generate sufficient revenues. Sometimes, the middle range will make sense, but not always!

2. Option One: Pricing at the upper end of market: Wouldn’t it be great if we could simply charge the highest price, and get the most revenue? However, one must realize it might not get the desired results, or if it does, may take longer to achieve. When that happens, a vacancy might exist, so one should always use a percentage (I recommend 75%) of the total revenues one would receive if fully occupied, in determining if one hits that magic 6% return!

3. Option Two: Pricing at the lower end of market: While providing the best chance to optimize occupancy rates, there is the risk of having lower quality tenants, etc. In addition, doing this, may offer the owner, less flexibility, etc. In rental properties I personally own, I often will price in the lower 50%, if I can attract and keep/ maintain, reliable, quality tenants, by doing so. This is also a gamble, but has worked effectively for me, since I have been able to have a far lower turnover rate, than the rest of the market.

4. Option Three: Pricing in the middle: This may be a wise compromise, if done carefully, and wisely. Always keep a keen eye on the market, your expenses, and carefully screen and qualify potential tenants.

All of these pricing strategies have pros and cons, but what’s most important, is for you to clearly identify, which strategy you will pursue, and maintain the discipline to be consistent! Effectively owning, managing and making money, on rental properties, requires discipline, commitment, and paying keen attention!

Article Source: http://EzineArticles.com/9690771


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

What are the Best Cities for Out-of-State Investors to Buy Rental Properties?

memphis

Many investors cannot buy cash flowing properties where they live locally due to high home values. Many investors also want to diversify their rental property portfolio by investing in out-of-state rental properties. The hard part about investing in long-distance properties is deciding where to buy out-of-state properties. Where are investors buying and where can you get great cash flow?

What cities are turn-key rental property companies investing in?

Turn-key rental property providers buy homes, renovate them and then place a tenant in the home. After the home is rented and managed, they sell the home to investors. There are many trends of where the turn-key investment companies are investing. Below are the most common places where the turn-keys set up shop.

Memphis

Memphis appears to be the number one place for turn-keys with relative low house prices and high rental rates. There are at least five turn-key companies investing in Memphis now. In fact some turn-key companies are moving out of Dallas because there are so many investors there, they are worried about the market.

Indianapolis

Indianapolis is another popular spot for the turn-key providers. There are many turn-key companies investing in Indianapolis, because of low prices compared to high rents.

Dallas/Houston

Texas is a popular spot for the turn-keys as well. Texas has one of the most stable economies in the country and affordable real estate. However, Texas has very high taxes in some locations that makes it hard to cash flow. Texas is also predicted to have one of the strongest economies moving forward.

Florida

The turn-keys are still investing in Florida as well. South Florida like the Miami area has seen huge increases in property values and the focus seems to have shifted to mid Florida for cash flowing rental properties. Florida still has many foreclosures and opportunities to buy below market value.

Kansas City/St Louis

The turn-keys are also focusing on Kansas City and St Louis, although these areas have seen appreciating prices as well.

Ohio

Ohio has many affordable housing markets; some are affordable because the economy is horrible and others are affordable because there is nothing flashy to Ohio. There are couple of turn-key companies that focus in Ohio and have great cash flowing properties.

Milwaukee

Many investors have swarmed to Milwaukee due to its low prices and high rents. There are couple of turn-key companies in Milwaukee and many investors in the area buying with great cash flow.

What cities are the hedge funds buying long-distance properties in?

A few years ago hedge funds like Blackstone and Colony Capital started buying thousands of properties that they turned into rental properties. The most popular locations for the hedge funds were Southern California, Phoenix, Las Vegas, Atlanta, Southern Florida and other large metro areas.

The hedge funds have toned down their investing in these areas greatly because of high appreciation. The rent to value ratios in these areas have decreased and caused hedge funds to look elsewhere. Many hedge funds have ramped down their buying significantly because of the issues involved in renting and managing thousands of rental homes.

An interesting piece of information from the FICON conference was that hedge funds have started looking into buying homes in Europe. The European market is crashing due to the economy and houses can be bought extremely cheap. Some companies are buying homes at 20 cents on the dollar of what they sold for a few years ago and they are making 30 to 40 percent returns on their investment!

What areas of the country have the best economic outlook?

It is not only important to look at cash flow when deciding on an area to invest in, but the local economy of areas as well. There were a lot of economist and data experts at the conference who spoke about economic trends in different locations. The hedge funds and large investors do not randomly pick locations to buy real estate. They use professional firms to accumulate as much information as possible to pick locations. Some of the areas of the country with the best economic growth coincide with where the turn-keys are buying.

Memphis

Predicted to have 33% percent appreciation over the next five years. Memphis has a very stable economy with many large businesses headquartered in the area.  This may be why there are so many turn-key providers in Memphis.

Charlotte

Charlotte is expected to have 25% appreciation and an extremely strong local economy. Many of the economists said Charlotte has incredible growth potential with a new Boeing plant being built and has been off many investors radar up to this point.

Houston/Dallas

Texas has a great economy anchored by the oil and has industry. Exxon is building a 3 billion dollar facility by Houston with 25,000 new jobs expected. Houston and Dallas is another area that keeps getting mentioned as a great opportunity for investors.

What does this data say about where out-of-state investors should be investing?

The tricky part about choosing a location to invest in is nobody knows what will actually happen. Even the smartest economists and investors can’t predict what will happen in specific locations. Having said that, the economists, turn-key companies and hedge funds spend a lot of money researching where to invest and what areas will provide the best returns. It may not be a bad thing to listen to the experts if you are trying to decide on a great place to invest.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com