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.