As we arrive in the homestretch of this year, we thought it would be a good idea to take a look at some of the best places to invest in rental properties in 2019. At Mynd Property Management, we are active in a number of markets across the country. We have a unique view of where things are going well and where investors are struggling.Before you decide to buy a rental property, you’ll need to figure out what your investment goals are. This will have a huge impact on the market you choose. So, we’re categorizing our advice on where to invest into two different investment strategies.If you’re looking for long term investments, you’ll want to buy rental properties in markets like Dallas, San Antonio, Austin, or Atlanta. Those Texas cities are amazing for long term returns on rental properties. We think there’s a lot of potential for investors who are hoping to hold onto their properties for many years. You can plan on strong appreciation plus a decent cash flow when you know where to look and how to structure your investment.For short term investments, we suggest you take a look at the Midwest. You’ll find some excellent opportunities in places such as Columbus, Ohio, Memphis, Tennessee, and Indianapolis. These markets provide investors with high yields and good cash flow.But let’s dig a little deeper into these markets and talk about what you should be looking for. If you’re an experienced investor who is growing an existing portfolio, you’ll want to find properties that fill some gaps or complement what you already own. If you’re a new investor, you’ll want to spend some time doing some research and due diligence before you make your first purchase.
When you’re planning to invest for the long term, you have a specific set of criteria that you want to look at before you acquire a new rental property. We recommend that you look for appreciation, that you evaluate the growth numbers, and that you take a holistic view of the economy. These are the things that feed a successful long term investment property.Dallas is a great market and it illustrates everything that we’re talking about. There’s a lot of potential for growth in Dallas. For example, last year, there was a 10 percent growth; and that’s a great number for investors who want to allow their properties to grow in value over time. You’re going to make a lot of money with that kind of growth.The challenge with Dallas and markets like Dallas is that they can be hard to get into. If you want to buy something in the Dallas proper area, you’ll find that you have to spend a bit more than you might have planned. If you find that you cannot locate a great investment property in downtown Dallas, there’s nothing wrong with going out to the suburbs. In the outskirts of Dallas, you can find and buy a home that’s affordable. With that property, you’ll be able to hold onto it for a while. The rental income will be steady and the rental value will continue to increase. As its value increases, this property will deliver a lot of appreciation and it won’t be long before it becomes a cash cow.There are some other factors we like to look at when we’re deciding where our clients should invest. For example, we like to follow where the young people are going. The millennial generation is huge and it’s arriving in the rental market in a large wave, especially recently. If you’re an investor who wants to attract millennial tenants, you need to make sure you’re buying in places that they want to live.
This is a big demographic, and it should be a part of your investment strategy. The millennial tenants we see flooding rental markets want to be in or near a city. They want homes in Austin, Dallas, and Atlanta. So, as an investor, there’s a huge potential in these markets. Austin actually has had the most growth in the country for the last three years. We know the millennial population wants urban areas.A good strategy is to pick out a suburb that’s close to the areas that they’re flocking to. In Dallas, you probably won’t have a lot of millennial tenants who can afford a glitzy new Dallas high-rise condo. But, if you buy a property in the suburbs, you’ll attract millennial tenants who want to be within commuting distance. They might be looking for a home that’s less than 30 minutes away from downtown, especially if they’re starting a small family. So, check out the outskirts when you’re looking for a profitable investment. You’ll find a reliable population of well-qualified tenants and a growing economy.Consider Atlanta and some of these Texas markets. In Frisco, right outside of Dallas, there’s a section of commercial real estate called Five Billion Dollar Mile. A lot of corporate headquarters are developing properties there. It’s where a lot of the new jobs will show up around Dallas. Invest there, and you won’t only have a lot of long term appreciation – you’ll have an endless supply of tenants with excellent jobs. Isolate your search to these economic and population-heavy areas.
We prefer long term investment strategies, but we know it’s not for everyone. If you’re only interested in holding onto a rental home for a short amount of time, with cash flow in mind, you’ll need to focus your search on areas where it’s still cheap to buy a property. It’s still important that rents are high in these areas; however, so you can earn the income you want.Take a look at Memphis, for example. This is a great market for short term investors who want to earn as much as possible in rent and not think too much about long term strategies. In Memphis, you can buy a great home in a desirable neighborhood for $150,000 or even less. With that reasonable investment, you’re going to earn a rent that’s around $1,200 or $1,300 per month. You’ll have immediate cash flow. You can find these types of numbers in markets like Indianapolis as well.Find out where these markets are. Do some research and get to know where you can earn the money you’re hoping to earn. There are a lot of areas in the Midwest where this is possible. Your best investment markets won’t necessarily be on the coasts.
The one thing you’re looking at when you’re trying to decide about an investment is how much that home will rent for. It’s important, before you buy, to research the average market rent in the community. Compare that rental amount to the purchase price, and crunch your numbers.You also want to look at vacancy rates because that will have a huge impact on your cash flow. You can find vacancy and occupancy rates on sites like Zillow Research. Buy a home in a market that has high occupancy rates. That will translate to lower vacancy, so you’ll have an easy time cash flowing. A vacant property obviously doesn’t bring in any rent. Not only are you losing rent, you’re paying to keep the house up and losing money on utilities, landscaping costs, and other expenses. You’re not counting on appreciation as a short term investor, so you cannot invest in a rental home that’s likely to stay empty.When you’re sourcing potential investment properties, don’t forget to calculate your maintenance costs. You don’t want to buy a property that has a 17-year-old air conditioning unit. If you have to replace that unit while you own the property, you’re going to lose money. Think about what you’ll need to spend on rehabs or renovations. Think about what will be required just to get the property ready for the rental market. If you have to pay $4,000 for a new air conditioning unit and you’re only cash flowing $200 a month, you’ll have a hard time earning any money off your investment.First, think about what kind of investment you’d like to make. Once you know whether you’re going to buy for the long term or the short term, you can decide on a market that meets your needs. There are a lot of opportunities to invest in real estate. Property values have gone up between six and eight percent over the last year or two.Think about your home value and what you’re hoping to do with that property. Then, we can help you find the right market and the right rental home.At Mynd, we help people identify great investments in markets across the country. We can source some opportunities for you and run a rental analysis to ensure you’re successful when you invest.If you have any questions or if you'd like to move forward, please contact us at Mynd Property Management. We’d love to learn more about you and help you choose the right investment.
We have a serious situation now throughout the country and all over the world with the spread of the coronavirus, or COVID-19.There’s a lot of uncertainty.If you’re a rental property owner in Dallas, there’s a lot you need to think about in terms of information and accessing government resources. We’re talking today about what you should do and how you can help yourself, your investment property, and your residents.
First, don’t panic. There’s a lot of panic going on throughout the country and across the globe, and while that panic is understandable, it’s not going to help you solve any problems or make any preparations. So, remember that you’re running a business, and even if you’re nervous and worried, you have to think rationally and respond only to what you can control. Leave the things you cannot control to other people.
One of the things that’s especially alarming as this emergency situation grows worse is the amount of wrong information that’s out there. The information Americans are required to consume every day can be overwhelming, especially when not all of it is factual.Don’t get drawn into sensationalized stories that don’t actually have a lot of meaning to the current situation.Focus on the sources and the resources you can trust. The Centers for Disease Control () is a great place to start, and you can check their website for the latest information and for local resources that might be of value to you.Make sure you know how to reach your city and county health departments and government agencies as well. Local municipalities may be your best shot at getting good information and direction. During such a confusing time, many states, counties, and cities are following their own procedures and issuing their own recommendations and requirements. If you’re in North Dallas and thinking about your Dallas rental property, you don’t have to spend a lot of time focusing on what’s going on in New York or Chicago. Pay attention to your local news, needs, and resources.
One thing that everybody needs to come to terms with is the fact that we don’t really know what’s going to happen with this virus or to our economy. People are great at making predictions, but we don’t actually know if we’re at the beginning, middle, or end of the pandemic’s worst days. This could all be gone in a month or we could be further into the pandemic in a month. We don’t know.Pay attention to what your local authorities are telling you. Make sure you know how to reach and where to find your local fire department and police station. Know where your local hospital or urgent care center is. We recommend you put a pin in those locations when you Google the information on your phone. If you need a test or you start to feel sick, you’ll want to know where to go for immediate testing and treatment.This is a fluid situation, but it’s a good idea to act and plan based on the information you have.
In Texas, it’s just been announced that restaurants and bars are closing. This means that small businesses have to be creative in how they serve the needs of their customers. While restaurants may be closed for in-person dining, they are still providing take-out and a lot of places are even delivering. Grocery stores are restricting their hours in the morning so senior citizens can shop safely and with less risk of contracting the virus.Pay attention to what’s going on in your state, your city, and even your neighborhood. You have to know what you’re doing, and you have to keep up with any changes or requirements.The news is usually a good source of information, but realize that not everything you hear can be trusted. Be careful about what you’re listening to and who you’re lending credibility to. Make sure you’re getting factual information. You don’t want to hear anyone reporting based on opinions or emotion or panic. It can drive you to make decisions that might not be in your best interests.Be especially careful of social media. Most of us love checking our Facebook feeds and our Instagram and Twitter posts, but on social media, you’re not always getting the best information. It’s become more of a gossip mill, especially since this coronavirus really took hold.Follow information that comes directly from a reliable and credible source. Don’t look at social media all day long. It will make you anxious and possibly contribute to the spread of disinformation.
One thing you should know as a Dallas rental property owner is that Dallas is under the Region 6 jurisdiction for the federal government. So when you’re looking up information from the local or you are visiting health.gov or any of the federal websites, Dallas and most of north Texas falls under Region 6. You’ll get a lot of information on those sites that may pertain directly to you and how you’re managing your rental property during this time of crisis.As we have said, county and municipal resources will be your best, but you want to know what the federal programs are for you as well.
Make sure your emergency contact list is updated and accurate. If you’re a resident, you should have phone numbers for family members who can be reached if necessary. If you’re living with roommates, make sure everyone has updated contact information. Our resident services team is prepared to collect that information from you.Owners should also have emergency contact information on file with us, and we’ll especially need a back-up contact in case we can’t reach you and we need to make a decision or get into the property.If you want some more information on how to respond to the coronavirus and what you should do to protect your property and your residents, contact us at Mynd Property Management. We have resources that may be helpful to rental property owners in Dallas or the North Texas area. Whether you’re an owner or a resident, please contact us if you need assistance of any kind.
If you own a rental property in Dallas, what can you do to prepare for a local emergency?We’re talking about emergency planning and preparation today, and it’s especially important as people in Dallas and throughout the country deal with the current emergency, which is a virus pandemic.
The best way to approach any local Dallas emergency is to have an action plan. A lot of the owners we work with at Mynd Property Management are not in Dallas. They might not even be in Texas. So, we need to be prepared for out-of-state owners and investors who are desperate to keep in touch and follow up on how their property and their residents are faring during any emergency.Action plans can help you stay focused, organized, and prepared. Depending on the emergency, it will include any number of things. Maybe it means finding out who the government resources are at agencies that can help you. If you need to relocate a resident, you’ll want to know how to find the best options and where to go when you need help.
If the emergency that occurs makes your Dallas rental property inhabitable, you’ll need to prepare to move your residents out of the home. This may be complicated, because most emergencies will attract first responders and other agents from outside of the area, and they’re going to take up a lot of the temporary housing and hotel rooms. If a tornado takes down your house and the entire city of Dallas is impacted, relocating your resident is not going to be as easy as booking a room at the Motel 6 or the Sheraton.Be prepared for who you have to move. You’ll want to confirm the number of people living in the home. The action plan you put together will differ depending on whether you’re moving one person or an entire family. Is there a pet? Does someone have a disability that needs to be considered? You really need to engage with your resident so you can relocate them into the temporary housing that’s going to be best for them. You may relocate them for one day or one week. Maybe it will be longer. Have a plan, but make sure you’re flexible. That plan may need to change based on how the disaster impacts you, your community, and the recovery efforts.
When there’s an emergency that impacts your rental property, you’re going to need to know that your insurance policy is up to date and that you’re covered. Don’t wait for the emergency to happen before you find out whether you’re protected against that particular type of loss. Make it a habit to check in with your insurance agent regularly.There are a lot of different policies out there. You need to be sure your asset is covered, and you need to know what else you can count on. Maybe your landlord policy covers relocation assistance for your residents and loss of rent.Insurance is important, and you shouldn’t spend a lot of time thinking about how to save money by cutting corners on insurance policies. If the emergency in question happens to be a hail storm and you have huge holes in your roof from hail, you don’t want to find out after the fact that your policy doesn’t cover hail.
When there’s an emergency, your property management company is going to need to get in touch with you. They’ll want to be in regular contact, especially if your property and your residents are seriously impacted. Make sure we have the right contact information for you.A secondary contact is also important. If you’re out of state or out of the country, you’re going to want to provide your property manager with multiple people who can get in touch with you or make decisions on your behalf. Communication is always important, and it’s especially critical during emergencies.
Emergencies can have an immediate physical impact, and then they can ripple through the community and the economy to have an additional impact. This is happening right now with the coronavirus. A lot of Dallas residents can’t work, and that means they can’t pay rent.You aren’t necessarily going to evict the residents in need during an emergency that affects the entire world, but you need to be prepared to make important decisions. If your residents lose their job, what will you do? Moratoriums on evictions and mortgage payments, if they become part of the response, will only last so long.If you don’t have the funds to sustain a few months of missing rental payments, you’re going to experience even more anxiety. These are the things you really need to think about when you’re putting your action plan together. A strong savings or reserve will help you survive financially until the emergency is under control. You don’t want to be in a position where rent isn’t coming in, but if that actually happens, make sure you have the financial security to come through it.There are so many discussions about what an assistance package or relief package might look like for people who have been furloughed or laid off. We don’t know what they will do or how we will be expected to handle it as landlords.We don’t always know what an emergency will look like. This is why you have to feel prepared.Whether it’s a virus or a tornado or a hurricane or a hail storm, know what steps you will take to address any needs that you, your property, or your resident may have. This might be a relocation, a physical property repair, or an interruption in cash flow. None of this is what we want, but it’s a reality that you may have to deal with.If you’d like to learn a little bit more about how to handle an emergency, please contact us at Mynd Property Management. We would be happy to be your resource and expert partner when it comes to Dallas property management.
One of the questions that may be on your mind if you’re a real estate investor is: Do I really need a professional Dallas property manager?We say yes, you definitely need a property manager in Dallas. If you want to self-manage your investment, you can. But, you have to treat it like a business. You have to dedicate a lot of time and resources to keeping up with the laws and regulations that are always changing. It can’t be a hobby.There are a lot of important reasons to hire a Dallas property management company. Professionals will save you money on things like vacancies, terrible tenants, and deferred maintenance. Your management company will have systems and processes in place that ensure you and your investment are protected. They’ll be responsive to your residents, ensuring the continuity of your cash flow and the stability of your property.Property managers aren’t emotional and they treat your rental home from a business point of view.The most important reason to work with property managers, however, is that it reduces your risk and liability.
Managing your own property is possible if you’re here and you’re active with all the regulatory changes. There are new requirements coming from the state and the local municipalities. Last year, a law was enacted that requires all Dallas rental properties to be registered and to apply for a certificate of occupancy. You cannot rent out a property in the Dallas market without this registration and certification.Historically, Texas has always been a landlord-friendly state. It still is, especially compared to many of the other states on the east and west coast. However, the state has become more aggressive on behalf of residents and their rights. A lot of new Class A and Class B apartment complexes have been developed, and last year there were nine different pieces of legislation that passed the statehouse to become law to protect residents.
One of the most important new laws that came out of last year’s legislative session is related to late fees. You can now only charge up to 12 percent of one month’s rent for a late fee. If you charge an amount over that, you’ll need to deliver a good reason to the courts. Otherwise, it will be capped.You also cannot charge for late fees during an eviction. The only money you can collect when you’re in the eviction process is the unpaid rental amount.Not only do you have to follow this law, you may also have to change your lease agreement. If your current leases say that your late fee is 15 percent of the rental amount, it’s going to need to be changed and rewritten.A lot of self-managing landlords also don’t know that they have 30 days to return a resident’s security deposit with a reconciliation of any money that was kept. This is a timeline that the courts are serious about enforcing. If you don’t return the resident’s deposit within that time period, your resident can take you to court.Maybe the place was destroyed and you decided to keep the entire deposit. You still need to send an itemized reconciliation showing what the money was spent on, and you have to send it within 30 days. Otherwise, the resident will not only get the full deposit back; they’ll get three times the deposit amount. That’s a lot of money coming out of your pocket. You have to send the reconciliation or else lose a lot of money.
Dallas rental property owners usually regret managing their own homes when they have to evict a tenant.With additional new laws, evictions in Dallas are now going to take a bit longer. A year ago, the state increased the amount that can be disputed in a small claims court action. It went from a $10,000 limit to a $20,000 limit. So, courts are seeing more cases that were once settled in small claims court.This extra pressure on the Dallas judicial system means that you will have a backlog when it comes to getting a court date to evict a resident. You could now be waiting 60 days or even longer to remove a resident from your property.Many self-managing landlords mistakenly think that when they want to evict a resident, they’ll take care of the whole process within days of the rent being late.It’s actually going to be two or three months now, which is another excellent reason to work with a professional property manager.When it comes to court protections, the line is moving more and more away from the landlord and towards the resident. This is a trend that’s gaining strength across the country, and Texas is no different. If you’re going to self-manage your investment properties, you’ll have to be prepared for additional legislative changes that are sure to arrive in the future.We specialize in helping Dallas landlords and rental property owners manage their risk and liability, especially when it comes to the law. We stay up to date on all the legal changes, and we closely follow federal, state, and local laws to ensure you’re in compliance and safe.Contact us at Mynd Property Management if you have any questions about professional property management in Dallas. We’d be happy to help you with your rental properties.If you want to learn more about real estate investing, we also provide other opportunities to connect with us and learn more about investing in Dallas. You can visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
If you own a rental property in Dallas, you’ll need to know how to handle maintenance emergencies. We always recommend that owners have a sound preventative maintenance plan in place. This will cut down on unexpected repairs, replacements, and outages. If you do have an emergency at your rental property, however, you’ll need to know how to handle it. Your residents will need to be prepared as well.
It’s extremely important to focus on understanding the root of the maintenance issue, and not necessarily the result. If all the plumbing in your rental property suddenly stops working, it’s probably a foundation issue. Unless you’re from this area and your residents understand the foundation issues that are common in this area, you’re not necessarily going to suspect that as the root problem. But, foundations shift. Nine times out of 10, a shifting foundation will damage your plumbing. When this emergency is reported, you’ll need a foundation expert and a plumber.
Your rental property in Dallas or Fort Worth will be at the mercy of our weather. This area has all types of weather, and we never really know when it’s going to show up. In a matter of one week, there can be hail and a heat wave. There are heavy rains. All of these things can happen in a three or four-day period. So, your air conditioning might be out in the middle of winter, and that might not seem like a big deal. But, there could be a 90 degree day in November or December. Legally it’s an emergency repair that needs to be made within 48 hours of it being reported.If you don’t fix an emergency repair within those 48 hours, you face fines or penalties. There’s a wide range of consequences, so address it fast and early.
It’s also important to understand that when you have an emergency situation at the property, your first responsibility is to make sure the residents are safe. Then, you need to stop the emergency. Make sure the water is turned off if there’s a plumbing leak. You need to train your residents on how to respond to minimize the damage while they wait for help to arrive.
You and your residents need to have a consistent understanding and definition of what an emergency is. From a logistical and legal standpoint, we have the Texas Property Code to dictate what is and isn’t an emergency. You and your residents need to be on the same page. Have something in writing, whether it’s the lease agreement or something else that outlines the definition of an emergency and provides the first important steps to take.The Texas Property Code is the best place to start. If you don’t consider something an emergency but the Texas Property Code says it is, you’ll find yourself in serious hot water and legal trouble. If the house is flooding, that’s obviously an emergency. If it’s on fire, that’s an emergency too, and your residents need to know that they must call 9-1-1 before they call you.Train your residents on where to find the shut off valves for water and gas. You want to communicate with the resident early and often, and you need to make sure everyone knows how to reach the appropriate emergency authorities. Keeping your house safe and habitable is your job as a landlord. Make sure you’re taking it seriously. A broken toilet in a one-bathroom condo is an emergency. A broken toilet in a three-bathroom house is not an emergency. Be clear and specific and consistent.Maintenance emergencies will be defined first by the Texas Property Code, and then it will depend on your property, your residents, the time of year, and the temperature outside.If you have any questions about how to handle maintenance emergencies in your Dallas rental property, please contact us at Mynd Property Management.Also, if you want to keep your real estate investment education going, we have a number of other opportunities to connect with us. You can learn more about investing in Dallas with us online. Visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.
If you own a rental property in Dallas, what can you do to prepare for a local emergency?We’re talking about emergency planning and preparation today, and it’s especially important as people in Dallas and throughout the country deal with the current emergency, which is a virus pandemic.To read more, go to: https://mynd.co/how-should-rental-property-owners-prepare-for-a-local-emergency-in-dallas
If you’re a resident who is renting out a Dallas property and an emergency is coming, how do you prepare best for it? Today, we’re talking about how a resident can best prepare for any emergency that strikes Dallas, whether it’s a weather event or even a global pandemic such as the virus outbreak we’re dealing with now.To learn more, go to: https://mynd.co/what-should-dallas-residents-have-ready-in-case-of-an-emergency
If there’s any U.S. city deserving of being called “all-American” it’s Dallas. Its rich history and tradition make it one of the most iconic areas in the country and its lofty status continues in part thanks to its tremendous economic success. Just how successful is its economy? Dallas/Fort Worth/Arlington had a combined GDP of approximately $512 billion in recent years. To put that in perspective, if this region were a state, it would rank #9 among all others in the United States!
There’s more good news for investors: since the 2009 recession, employers in the Dallas area have created almost 800,000 new positions and nearly every employment sector is in positive territory over the same timeframe. Just as promising, the local population gained 1 million residents between 2010 and 2018, providing a solid renter base for real estate investors; many of these are millennials who are attracted to the area’s relatively low cost of living. What does the future hold? Continued relocation and expansion of major companies in the area promises sustained economic success for this American sweetheart city.
The northwest is home to some of the biggest companies in the US, such as AT&T and Exxon Mobil. The Dallas Mavericks play outside the city but the area is also home to great school districts. If you are looking for good schools, sports, and Fortune 500 companies, check out the northwest.
Fair Park is the hot spot in Dallas. The northeast, like the southeast, has the Fair Park, but it also has more variety of shopping malls and stores.
Home to the Dallas Cowboys and Texas Rangers. The presence of 2 major stadiums helps assure investment in the nearby area. Most important, the southwest is for those who love the outdoors. Cedar Ridge Preserve and Mountain Lake Creek are two of the desirable outdoor spots for locals. The southwest region is growing faster than any other region next to Dallas.
Dallas will soon be home to one of the largest urban parks in the nation, increasing the number of visitors in the southeast. The Harold Simmons Park will connect the south with the wealthier north. The southeast is home to Fair Park. Fair Park is a hot spot in Dallas. Investing by the park is a solid bet for investors due to the presence of infrastructure, museums, and sports in the east. The southeast is home to some lower income neighborhoods but is close to the Great Trinity Forest, which is also part of Dallas’ Trinity River Park Project.
Visit our Dallas property management page for local landlord tips and information as well. Our team has vast knowledge and experience in local Dallas property management and can help you to have a better investment experience. We educate on topics in the Dallas area ranging from repairs and maintenance, resident issues, dealing with emergencies and much more. We look forward to furthering your rental property education!
Ready to expand your investment portfolio in a new market? Learn how to find a property and hire a Grapevine property manager when you live out of town.
Do not assume anything. It is your money is on the line.
When you are looking to buy a rental property, look at the trends for the area to determine if the neighborhood is moving in a good direction. Historical data,taxes, pricing, and crime statistics can be used to determine any trends going on with the area.
The numbers must make sense. If you do not purchase at the right price point, you could find yourself in a negative cash flow situation every month.
Things like insurance and taxes need to be factored into your costs when determining the profit, you can expect to get from a deal. Insurance rates can vary significantly from state to state, so don’t assume it is going to be the same as what you are paying in your state. Is the property in the city? What is the property tax rate for different areas you are looking at?
You do not want to invest in the one property that does not seem to fit in with the rest of the neighborhood.
There are several things that can factor in a home seeming at first to be a fantastic deal but look cautiously at the WHY. Are you getting a good deal because the prior owner had a hard time selling it due to some features of the home? You could experience the same challenges when you try to rent it out or sell it later.
Be cautious and thorough when looking at properties that seem too good to be true.
What is the age of the property? Are you allocating enough in reserve to take care of maintenance costs? Is the property going to need more expensive improvements like a new roof, new HVAC unit, etc. in the next few years?
Spending a little more for a newer property might be more profitable than an older home that is going to need a lot of maintenance work. Both old and new properties are viable options for rental homes, but you need to factor in any potential maintenance costs of each option before deciding to buy.
“I’ve remodeled older homes and rented them out, only to have a string of little things that tenants wanted fixed over the next few months. It’s not uncommon; take it into consideration. Does it mean the house will forever be a nuisance? Absolutely not. It’s simply that buying older homes may come with additional work, depending on how well they’ve been cared for in the past and how well you care for them going forward.” – Source: BiggerPockets: Pros and Cons of Old vs. New Rentals
Getting a return from that deal month after month is what you can expect from hiring an effective Grapevine property manager. Acting as a buffer between you and the resident along with all the laws that go along with it. It is important that you are getting a partner that is there to ensure you are successful.
Once you have purchased your out-of-town rental property, the next step is finding a Grapevine property management company that matches your goals and investment strategy.
Having a team that is familiar with local laws that are constantly changing is important, especially if you own property in a city you are not familiar with. Not knowing the local laws can leave you liable, so you are better off letting a local property management company manage your rental property. That are also in the position of being able to take good care of your tenants.
You will want to ask the right questions when you are interviewing Grapevine Property managers
If a property management company is not able to answer most or any of these questions, they probably aren’t the company you are looking for to care for your investment property.
If you have a property that rents for $2000 a month and they manage properties around $300 a month, there may be a disconnect on how you want your tenants to be treated. It is important to have these conversations before you hire the company.
Our team of local professionals at Mynd Property Management are different from other Grapevine property managers. We leverage real-time data to consistently better our services, providing owners with seamless management experience. Contact us today about Grapevine property management for your rental property.