Electronic rental payments are a win/win for both renters and property owners. For renters, online rental payments are much easier, more convenient–and safer–especially during these pandemic times. Online rental payments help renters securely pay their rent on time, avoid late fees, reduce stress and limit contact with people. Meanwhile, owners receive their monthly rental income as quickly as possible, so they can take care of the expenses they must pay to keep their property running smoothly, such as a mortgage, utility bills, property taxes and more. Property owners also prefer online rental payments because they’re the fastest way to collect monthly rental payments from renters.
Paying rent the old-fashioned way–via a personal check that requires a stamp and envelope–is time-consuming, tedious and inefficient. Paper checks are much slower than e-payments. Generally speaking, they take at least five days to clear, and involve significantly more manual work to process. Oftentimes, an essential worker from a property management firm risks life and limb by going out in public to collect the check, figure out which rental unit to apply the funds to, and in some cases, make a trek to a bank to deposit the check.
E- rental payments provide residents with a stress-free, time-saving experience that helps them avoid late fees and mitigate anxiety. Put simply, “Paying rent online allows residents to hit the ‘Easy Button,’” explains Steve Rozenberg, Head of Investor Education with Mynd Management. “It makes their lives much easier.”
A good property manager implements a multi-channel outreach program via digital and print campaigns at the onset of their lease term and throughout the course of their occupancy. According to Kunal Shah, VP of Product for Mynd Management, one effective marketing technique for his firm has been to send flyers in the mail to people who are paying by check with step-by-step instructions and visuals to get their online account set up to make e-payments.
“We are always trying to help our residents move to e-payments to avoid late fees and avoid the headaches of manual paying,” says Shah. If worth their weight in salt, that same property management firm is also available to answer any questions about how to create a user account via email or an online portal.
A tech-forward property manager makes paying rent simple and seamless by developing an easy-to-use residents portal. Providing a user-friendly portal or website that allows renters to use any type of device to pay their rent: a mobile phone, iPhone app, Android app, PC, laptop, desktop, etc., is they key to making online rental payments simple and accessible.
As part of this portal, a tech-savvy property management company should have the ability to accept all forms of rental payments on the back end: ACH, as well as all major debit card and credit card payments.
Short for Automated Clearing Housing, the ACH is a clearing and settlement house that facilitates network-to-network electronic financial transactions. In other words, it’s a safe and secure way to move money between banks without the use of paper checks, credit-card networks, cash or paper checks.
Tenants can rest assured when using the ACH to pay their rent: The organization certifies that the money is insured by passing through the Federal Reserve. According to the Nacha Network, an electronic payment system that safely and reliably moves tens of billions of payments annually, electronic payment volume reached nearly 23 billion payments in 2018, a year-over-year increase of 6.9% and the highest growth rate since 2008. That equates to nearly 70 payments for every person in the United States.
A study issued by the Identity Fraud Consumer Report states that online banking and bill-paying are considered safer than paying by check. The report goes on to assert that consumers should use electronic statements and online bill payments “whenever possible.”
Additionally, paying rent online eliminates the chance of bank information ending up in the wrong hands, which can happen when a paper check doesn’t reach its intended location.
The Balance Small Business confirms that online rental payments are the best option for landlords.
Besides making it easy, safe and secure for their residents to pay rent, a top priority among leading property management firms is to collect their owners’ monthly rental payments as quickly as possible and distribute them whenever they would like to receive them. That includes giving property owners the ability to select how often they receive their monthly rental income, or distributions. Some owners prefer to receive distributions once a month or once a quarter, for instance, while some owners want to receive their distributions weekly.
“At Mynd, our weekly distribution cycle is intended to get our owners their money throughout the month as soon as it arrives in our system,” remarks Shah.
When a property manager receives a personal check in the mail, there are so many manual steps that must be taken to clear that check and deposit into an owner’s account. A rental manager’s accounting team has to see if it is managing any expenses for the owner, or if it has to pay a vendor. A property management team must also check to see it needs to put money aside for the owner to pay their property taxes. “In short, there’s a lot of manual processing from when the money is sent to us until we can get the distribution to the owner,” Shah says.
“With an ACH payment, rent payment can clear within 48 hours and gives us more time to get that processing done,” notes Shah.
The security, safety and well-being of renters and owners should always be the top priority of a qualified, tech-savvy rental management company. Whether we’re living in pandemic times or enjoying a thriving economy, collecting rental payments electronically is one of the best ways to create happy homes and healthy investments.
Any part of being a property manager or landlord can be frustrating, depending on your disposition. That's because it's a complex job demanding the use of many skills such as delegating responsibility, communication, bookkeeping, research, and networking.
Sometimes you find yourself in high-stress situations, like when you're evicting a tenant, completing repair requests, dealing with an emergency repair, or trying to lessen the duration of a vacancy. But for those who thrive under pressure, enjoy planning, and feed off human interaction, being a property manager is the perfect job!
Your tenant may get used to you being more readily available during the screening and negotiation process and then expect that same level of access once they've moved in. As a result, they may seek you out as a source for answers regarding housing or lease questions instead of researching on their own.
Tenants also take for granted that you can't answer all questions because your answers can be construed as legal advice or evidence of a "conflict of interest," both of which can be problematic.
Many people villainize landlords. As a result, you may find yourself discouraged, but don't let that be an excuse to meet hostility with hostility or to assume you're being vilified. Just focus on doing the best job you can do and on doing what's right.
A misstep on your part can lead to a slew of negative reviews that takes for granted all the positive action you've been doing. That may make it harder for you to do your job or have no professional impact while still making you feel bad.
It can be hard to get someone to leave when they don't want to. Even if the person isn't paying rent or is causing damage, evictions are challenging to perform. They take up time, money, and take an emotional toll--especially if you need to take legal action to get someone to leave, which can take months!
Real estate is a collaborative endeavor.
You need to have an extensive network of contacts that includes everything from contractors to lawyers because you never know when you might need someone. Even then, however, you might find yourself out of luck and in need of someone who's not in your network.
It can be particularly stressful if it's a high stakes situation, like an emergency roof repair in the dead of winter.
If you have to take care of multiple listings, especially if it's across platforms, it can be challenging to remember and stay on top of all the communication and maintenance that has to be performed.
You usually have to do some maintenance between tenants. Sometimes, though, you have to do a lot of maintenance, which is just hard and no fun.
A tenant may damage a unit so severely it can lessen your faith in humanity! It takes resilience to confront a unit that's been covered from floor to ceiling in human waste. These sorts of horror stories do happen.
You may know your roof or HVAC unit's life expectancy, but that doesn't mean you might not get caught off guard by an emergency or even have the repair sneak up on you.
Don't forget that a crisis can also happen at any time of day or year, so you might have to make a call at 3 am in the dead of winter.
If the local economy takes a dip, you may find yourself losing tenants to more affordable units. If this trend keeps up for too long, you may find yourself with a negative income stream. If you can't ride this out, then you may have to sell your property or perform a 1031 exchange to avoid paying capital gains taxes to get a new property.
After a lease expires, some property owners choose to forgo re-signing a lease to keep their tenants longer. If this happens, a tenant may end up surprising you when they decide to seek housing elsewhere.
If you're not already using tenant management software, then manual bookkeeping can be a real hassle. You have to keep track of invoices, receipts, and bills.
Yet another reason to use tenant management software. If you're collecting rent yourself or waiting for checks to come in the mail, you'll be subjecting yourself to unnecessary stress.
This is especially problematic if you have to deal with late, missed, or lost payments.
You have to keep up with state, local, and federal regulations and ordinances to ensure you're not caught off guard by a fine that eats into your bottom line.
Sometimes these changes may require changes to how you do your job. Other times you may need to hire a contractor to make sure your property is up to code.
When you're a property manager, you're coordinating with more than just tenants; you also have to deal with all the professionals you work with daily. That includes contractors, real estate agents, lien professionals, inspectors, and lawyers, to name a few.
Communication may be referred to as a soft skill, but it's still hard! Too often, people discount how much work goes into keeping in touch with many people regularly or maintaining a professional network.
There are many challenges faced by property managers and landlords, but these are the very challenges that make the job so satisfying. You're providing people with housing, helping them when there's an emergency, making their lives more comfortable, working with teams to accomplish big goals, providing other professionals with advice when they need it, and more.
There's no guarantee that your job will get any easier, but there's no doubt that the work that you do can have an immediate positive impact on others. Check out the various locations Mynd manages in, we have local teams in 19 major cities and counting. Learn more about our services today and get your free renal analysis or consultation with our local experts!
Owning one property is challenging enough as it is.
While the same skills that will make someone good at owning one investment will make someone good at owning several ventures, the very fact that there are so many more moving parts becomes an issue in and of itself. Even with the help of a property management company, owning multiple properties will require your involvement.
That doesn't mean it's not worth it. It means that knowing what you're getting into is very important.
From a legal perspective, ousting a tenant, even one who isn't paying rent or causing damage to the property, is quite challenging. All the steps must be taken properly to avoid being sued. You can prepare yourself by thoroughly screening tenants, but even tenants who are right on paper and live problem-free for years can one day become an issue. This is merely one of the built-in risks of investing in real estate. That risk is multiplied when you own multiple properties.
Finding tenants is demanding. While technology can make pulling up records like credit or criminal histories easy, there's a lot more to screening a tenant. Either you or a property manager has to interview the tenant, follow up on references, and verify their reported income. Furthermore, this needs to be done quickly enough not to lose the tenant, but not too quickly that an unsuitable tenant slips through.
You need to have an extensive list of trusted contractors to perform emergency repairs, maintenance, upkeep between tenants, and replace big-ticket items like HVAC units or roofs. Having a few trusted contractors is essential if you have more than one emergency repair happening at the same time or have several units that need maintenance between tenants.
A tenant may complain about repairs, other tenants, or neighbors. Some of these things may be within the landlord's control, and others may not be. However, not all tenants complain. A problem neighbor or a simple leak can turn into something bigger than it needs to be, so resolving issues quickly is important.
It takes a significant amount of time to manage several properties or flip houses. Unless you love flipping houses or being a property manager, remember that your goal is generating a passive income. That means hiring a property manager is worth the 6 to 12% of collected rent (depending on location and services) because they're your best bet to keeping your involvement to a minimum.
Property managers take care of everything from tenant selection and rent collection to repairs and maintenance.
It takes significant time and effort to sell a property if you need money right away.
An environmental disaster or a major employer going out of business can lead to a significant loss if you limit yourself geographically. That's why a geographically diverse portfolio makes you a more resilient investor--it means you're less likely to be wiped out by any single issue. You want to utilize a property management company to increase your net worth in multiple markets.
Whether you have a tenant or not, you'll always have to pay property taxes and insurance on your property as well as fees if you're a part of a homeowner's association (HOA). These costs, while not insignificant, are at least consistent, so you can always budget for them.
If your property is part of an HOA, then the HOA's financials can impact your ability to get loans or find tenants. When considering whether or not to issue credit, lenders look at the delinquency rate and any pending litigation. Unfortunately, those two factors are outside of your control if you already own property within the HOA.
Eventually, you'll have to switch from conventional loans to commercial loans because your debt to income ratio will be so high. That's not necessarily a problem, but it is another thing to consider.
Even if you're working with a property management company and enjoying a monthly direct deposit, you'll still have to check out the property, sign off on repairs, fill out paperwork, and think about your investments and goals. The time commitment adds up, especially with multiple rental properties, but that's to be expected.
Sometimes you have to sell your property. This can happen because of unforeseen forces like an increase in property taxes, a need for significant repairs, or a declining rental market. If that happens, then you'll want to sell your property quickly.
To avoid paying capital gains, you can do a 1031 exchange. You'll have 180 days or the date your taxes are due, whichever comes sooner, to finish your 1031 exchange. A 1031 exchange is also a great way to diversify your portfolio.
Investing in real estate only really works if you make a profit from selling your property. But when the time comes to sell, you may find yourself making less than you hoped for due to a dip in the market. Additionally, wear and tear can take a significant toll on your asset, which is one reason never to skip maintenance.
Owning multiple properties increases the amount of work that you have to do, but it also increases your passive income. Additionally, multiple properties can be a part of a geographically diverse portfolio, which will make you a more resilient investor.
While it will be more challenging, with the right network, property management, and technology solutions, you can make owning multiple properties work for you.
Check out the various locations Mynd manages in, we have local teams in 19 major cities and counting. Learn more about our services today and get your free renal analysis or consultation with our local experts!
Learn some tip sand tricks to get your Fernley rental properties leased quickly including what changes and improvements you can make to attract more interest.
Although properties do rent throughout the slower winter months, it is best to market your rental property during the prime months to get the highest return on your investment.
“SmartMove data shows that landlords receive a peak number of rental applications in the summer, which suggests that they are able to charge higher rent due to increased demand. Specifically, landlords receive a 51% increase of applications in summer vs. winter. If you want to know how to take advantage of the peak rental season, then this guide will give you insights on the best time to rent, when to charge a higher rent, and the best times to list your property online.” – Source MySmartMove
Your property’s curb appeal is important. When a prospective tenant pulls up to the home, you want their first impression to be a good one. It is hard for a potential tenant to imagine the current condition of the home being better than it is when they tour it, so make sure everything is the best it can be. You want to leave a powerful impression on them so they will love your home and remember it among all the properties they look at.
Does your home have a musty smell? If you painted the interior, it might have that new paint smell. If you still think it smells musty because it has been closed up for some time, you can:
Let the sunshine in. You don’t want to show a dark house. Make sure the blinds are open to make it bright and inviting.
Making a few changes to improve your Fernley rental property doesn’t have to cost a lot of money. However, not doing them can cost you months of the property sitting vacant. Those minor changes and attention to detail can make a significant difference in renting the property in a timely matter.
The condition of the property sets the bar for the expectations you have for the tenant to keep it that way. If the property looks poorly maintained, the tenant is going to assume that is the level they are expected to keep it at. If there is trash in the yard, they will assume this is acceptable. For this reason, it is important to offer the property to the tenant in the condition that you expect to get it back in.
Before your Fernley property management company lists your property, you will want to check the things that are most likely to break in the rental property. You have taken care of how the house looks, but equally important is that everything works.
This includes making sure the major systems of the home are in good working condition as well as regular maintenance items are taken care of:
Take care of any maintenance repairs in your property before showing the property. An ounce of prevention can help you avoid large issues down the road. The combination of an attractive, rent-ready property and an experienced Fernley property management company should help you find a quality tenant quicker and reduce the time it is vacant.
Mynd Property Management has a team of local professionals that leverage real-time data to consistently better their services, providing owners with seamless management experience. If you are interested in investing in the Fernley NV area or need a property management, contact us today about Mynd’s full-service, results-oriented property management in Fernley.
What should you be looking for in a Carson City property management company and what questions should you be asking to make sure you are a good fit? What updates can you make on your property to increase its curb appeal?
This includes preventative maintenance, emergency maintenance requests, home renovations, and getting the home rent ready. You will want to ask questions about their ability to provide vendors for these types of jobs.
This includes marketing the property to find tenants, screening tenants, getting a lease signed, overseeing the move-in process, and collecting rent.
The company’s accounting department will take the money coming in for rent and allocate it towards any outstanding maintenance bills or other expenses. Funds are then dispersed to the owner. Typically, the owner can login to a portal for reports on where the money is going and to find out what they can expect to receive.
This is an important service to owners who will not want to try to handle this on their own due to the ever-changing laws involved.The property management company will cover all communications and processes regarding the eviction and ensure all laws are followed. Because laws that have to do with evictions change constantly, you want to make sure you are getting a true partner that is looking out for you and is familiar with the local laws.
Are the Carson City rental properties they typically manage like yours? If you have a high-end rental, you probably don’t want to choose a company that mostly manages low end property. That probably is not a good fit as the expectations of the tenants may be quite different.
Knowing the right questions to ask when you are shopping for a property management company in Carson City NV is key. Don’t be afraid to ask about specific things you have had issues with in the past. What has scared you off from using a property management company? Bring those issues up and get your questions answered. If they can’t make you feel secure that they are looking out for your interests, find another company.
Here is a list of questions you might want to ask:
Think of hiring a property management company like hiring a business partner. You want to screen them and know that you are a good fit to work together. Being the first to answer their phone or being the cheapest is not the way to pick your partner. Getting answers to your questions is the best way to find a good match for your investing goals.
Now that you have found your property management company, is your property ready to list?
The prime rental season in Carson City, NV is between the months of April and September. Although properties do rent throughout the slower winter months, it is best to market your rental property during the prime months to get the highest return on your investment.
Higher rent rates also come with more demands and expectations from renters for properties that are up to date. Anything you can do to update or renovate your property will help it rent faster. Offering a quality property at the right price point is going to make the difference in finding a quality tenant quickly.
Because it only takes 14-21 days to rent out a property, Seily recommends that property owners have their property rent-ready before listing it so it is more desirable. If your home has a musty, closed-in smell, you want to take some steps to make the home smell fresh. A new coat of paint and clean carpets can make the home more inviting.
First impressions matter. You only get one chance to impress potential tenants, so it is critical that you take the time to make sure the home looks inviting, clean, and well-maintained.
The condition of the property sets the bar for the expectations you have for the tenant to keep it that way. If the property looks poorly-maintained, the tenant is going to assume that is the level they are expected to keep it at. If there is trash in the yard, they will assume this is acceptable. For this reason, it is important to offer the property to the tenant in the condition that you expect to get it back in.
The little things matter. Turn the lights on and open the blinds so the home looks sunny and inviting.
Mynd Property Management has a team of local professionals that leverage real-time data to consistently better their services, providing owners with seamless management experience. If you own properties in multiple markets, you may prefer to use a company like Mynd that has offices in several markets so you know you are getting the same level of service regardless of the city or state your property is located in.
Contact Seily today about Mynd’s full-service, results-oriented property management in Carson City NV.
Find out how long it will take to rent your Sparks NV rental property and what improvements you can make to attract potential renters and reduce vacancy time. Learn how to calculate depreciation on your investment property.
Seilly, Portfolio Manager for Mynd, shares her tips for real estate investors investing in the area. Find out how long it typically takes to rent a property in Sparks NV as she and Steve Rozenberg discuss managing rentals in the area.
Because it only takes 14-21 days to rent out a property, Seilly recommends that property owners have their Sparks property rent-ready before listing it. If you know you are moving out soon and looking to rent your home, try to tackle projects like new paint, carpet, and other little updates while you are still in the property. Your vacancy time will be greatly reduced if you can have the property as close to rent ready as you can get it before you move out.
If move out time comes and you are not ready or don’t want to do it yourself, don’t worry. Mynd has quality vendors who can quickly help get the property ready for listing on the market.
Why is it not always a good idea to have a resident lined up before you move out of the home? When potential residents come to view the property and it is not completely rent-ready, it is difficult for them to envision what the property will be like when it is vacant and complete. Maybe you planned to paint but have not gotten to it yet. The home is not rent ready.
Chances are you’ve lost that potential tenant because they are not going to want the property in its current condition. If you had just waited 2 weeks until it was done, you might have had a better outcome. You run the risk of losing potential residents when you rush into listing the property.
Let’s say you got lucky and do find someone that wants the property in Sparks based on its current condition. This could cause them to think that is the condition they need to keep it in. Could you get it back in worse condition even though you did the upgrades to it?
In our experience, people that try to market a property before they move out tend to have it on the market longer. If your property is on the market for 30 days when other properties are renting in 14 days, people are going to start to wonder what is wrong with yours. As your rental gets stale on the market, you risk the property having a stigma attached to it.
Sometimes it is better to slow down to speed up. Seilly advises that anything you can do ahead of the move-out to speed up the rent ready process after it is vacant is a plus on your side for renting it quickly.
You want it ready to go on the market rent-ready and fresh on day one of the listing. Take the time to make sure everything is working properly. There is nothing worse than receiving a call from a new resident in week one when they discover something doesn’t work. That is not a good start to building a solid relationship built on trust with the resident.
Customer service is key to your resident having a great experience. That takes the combination of you thoroughly preparing the property and your Sparks property management company’s contacts with the resident.
Keeping a quality tenant long-term is your goal. Their experience begins when they inquire about the property and continues with their first impression of the property when they take a tour of it. The move in process should be smooth, and you do not want them having issues with the home in the first couple of weeks because you rushed to list it.
Doing the right rent-ready preparations and partnering with a quality property management company are key to getting your property rented in 14-21 days.
Depreciation is one of the important advantages of owning rental property. As an investor in Sparks, NV rental property, it is important you take advantage of all the benefits of buying a rental property.
If you buy a property with the intention of renting it, you can depreciate the cost of acquiring the property over a period of time.
Depreciation is one example of a phantom expense. It’s the reduction in value of your property from wear and tear that the IRS lets you deduct. It’s not a true expense
Because rental properties can vary significantly in how long before they are “worn out”, the IRS provides guidelines for depreciation of real estate. The IRS states that a rental property has a useful life of 27.5 years.
You can only depreciate the actual building, not the land so you will have to subtract the land value from your calculations. A rough calculation of your depreciation is calculated by taking the value of the property (what you paid for it) minus the value of the land it is built on plus any expenses associated with it (title insurance, etc) and divide it by 27.5 years.
We do advise you to discuss the specifics of the depreciation calculation with your CPA. They can help you determine the exact numbers you need to calculate depreciation, and they know which expenses you can include in that calculation.
You can depreciate your rental property until you sell it or you have depreciated the entire cost basis.
If you have a multi-family property, you may also be able to do additional things like cost segregation which allows you to depreciate certain parts of the property like the parking lot, washers, and dryers.
The straight 27.5 year calculation of a single family home isn’t really something to base your purchase decision on, but the depreciation does need to be accounted for in the calculation of phantom loss.Your tax professional will be able to help you with this.
Mynd Property Management has a team of local professionals that leverage real-time data to consistently better their services, providing owners with seamless management experience. Contact Seilly today about Mynd’s full-service, results-oriented property management in Sparks, NV.