Real estate investors have to watch every dollar that’s spent on their rental properties, so it’s understandable that you’d be wondering if professional property management in Tampa is really worth your money. This is a fixed expense that you’ll have to pay every month; is it really worth your money?The simple answer is – yes.Today, we’re talking about what property managers do for you and why the management fee is well worth paying.
A good property management company will take care of everything for you from A to Z. The ultimate goal is to ensure your investment property is cash flowing consistently and earning you the money you expect it to.This includes the basic day to day tasks such as rent collection and lease enforcement. Collecting rent on time is an important function of property managers, and a good rent collection policy needs to be documented and enforced. If rent isn’t collected on time, your property will send notices and put pressure on your to show them you’re serious about on-time payments.Enforcing the lease agreement is also a critical part of what we do. To protect your property effectively, we need to make sure there aren’t any unauthorized pets or in the property. There isn’t any kind of emotional attachment between property managers and tenants or property managers and rental homes. We can make business decisions that are best for your bottom line.
The value of what you pay a property manager starts with the leasing process.Before you even place a resident and start collecting rent, you can count on your property management company to prepare your home for the rental market, make the necessary repairs and upgrades, and clean it thoroughly from top to bottom. All of your landscaping will be attended to so there’s great curb appeal to attract the best .Screening in accordance with fair housing laws is another major reason to pay for a professional property manager. You won’t have to worry about drafting the lease and including all the necessary disclosures. All of the required processes are in place and things are handled expertly. You pay your property manager to collect the security deposit and the first month’s rent as well as any extra pet fees and deposits.
You will also have the benefit of expertise and relationships when it comes to maintenance. Your property manager will take care of all routine, emergency, and preventative maintenance, and we’ll be able to ensure the work is done professionally and cost-effectively because we work with the best vendors and contractors in Tampa.Communication is a critical part of what you get from professional management. Your property manager will share information and discuss strategy. You’ll have someone who deals with your and handles any conflicts or concerns. When a resident is moving out, your property manager will handle the inspection and the security deposit and preparing your property for the next tenant.There are a lot of moving parts, and your property manager handles all of them.
With a professional Tampa property manager, you can leave the running of your business in capable and experienced hands. You’re working with someone who has established policies, procedures, and structured systems. Your property manager is keeping your clients () and ensuring the revenue of your business is strong.There’s also a lot of protection available when you work with a management company. You can expect your property manager to keep you safe from claims and lawsuits. One out of three landlords are involved in a lawsuit every year. These lawsuits may concern fair housing violations, mistakes with the Fair Credit Reporting Act, evictions, and discrimination. If you’re not operating your property like a business, you’re putting yourself at risk.There is a lot of value available to investors who use property managers. We could spend all day talking about what property managers do for their money.Most importantly, your property manager is a part of your team. You receive a lot of leverage when it comes to managing your business if you have a good property manager working with you. We are here to do the things that you don’t need or want to be doing yourself.As an investor, you probably buy real estate as an end goal. You’re not investing to have a second or third job. You use a property manager for the same reason you use a CPA or an attorney or a car mechanic. The expertise is worth even more than the actual tasks that are handled for you.Sophisticated investors want a property manager who will take care of every aspect involved in the leasing and management of an investment property. Property owners should be able to trust you but also have the ability to verify the work that’s being done. You can go and live your life while your property manager takes care of your asset.If you want to talk more about the value of a Tampa property management company, please contact us at Mynd Property Management. Whether we’re managing your property or not, we love educating investors and talking about how to have a better rental experience.We also have other opportunities to connect with us and learn more about investing in Tampa. You can also 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’re renting a property in Tampa, you’ll be expected to pay rent on time every month. In order to meet that obligation, you’ll need to know how to pay rent and when it’s due.We are talking to residents today about the best way to pay rent in Tampa.
Before you sign the lease agreement on a new home, make sure you understand the rent collection policy. Hopefully, you’re working with a responsive and communicative landlord or property manager who will go over the particulars of how to pay rent. This information should also be included in the lease agreement. You need to be on the same page when it comes to rental payments.The leasing agreement should include information on:
How much rent is due every month.How you should pay rent ().Whether there is a grace period if you don’t pay on the first.Whether there are late fees and other consequences to late rental payments.
We know that residents appreciate flexibility and ease. So at Mynd, we provide our residents with three ways to pay rent.The first and most popular way to pay rent is online. We provide a resident portal that’s fast, secure, and convenient. Our residents can log in and pay rent at any time that’s convenient for them. They can do it from the comfort of their own home or from work or from their mobile phone. We accept payments day or night and on weekends and holidays. With online payments, our residents can pay with a credit card, which has a fee, or with an eCheck. Offering online rental payments is a great way to cut down on late payments.Another way our residents can pay rent is by coming into the office to pay in person. We understand that some residents like a little face time and they want the security of knowing they are handing over their payment to an actual human being. We make that work, too. Our in-person payments can be accepted as personal checks, money orders, or certified checks.Finally, residents also have the option to mail their payment to our office. Not everyone is comfortable with online payments – we get it. So, when our residents want to pay by mail, we make sure they have the right address and we ask them to make sure it’s post-dated on the first of the month so the payment isn’t considered late.Automatic payments can be a great way to avoid late fees. If you have online payments available to you, find out if you can set up automatic payments. This is a huge benefit because you don’t have to think about it or worry about paying late fees.
You want to anticipate any problems you may have paying rent on time. Nothing will deteriorate your relationship with your landlord faster than consistently late rent payments. So, take this into consideration and ask all the necessary questions before you sign a lease agreement and commit to a new rental property.With technology, you should have a lot more options that you did years ago. But, not every landlord and property owner embraces technology. If your only option is to pay rent in person with a check and you live on the other side of town, getting there by the first of every month may be a problem.Ask the right questions and get the right help. Residents love renting from us because we’re flexible, responsive, and we make things like rental payments easy.If you have any questions about the properties we have available and what it’s like to work with us, please contact us at Mynd Property Management. We provide a lot of resources and support for residents in Tampa and all over the country.
Today, we’re talking directly to renters who are preparing to lease a Tampa rental home. There are some important questions you should always ask a landlord or a property manager when you’re signing a lease and preparing to move into your new home.
When you’re renting a property in Tampa and looking at the listings, it’s easy to focus on the pictures and details such as rental amounts and move-in dates. However, a lot of rental listings provide some good information, especially if you’re moving beyond Craigslist and looking at advertisements on reputable real estate and property management websites.You’ll save yourself a lot of time and frustration by reading every listing carefully. If it’s complete and detailed, it may tell you thinks like which appliances are included, how much you should expect to spend on utilities, and which school district is close to the property.Always start with what you find in the listing. From there, you can make a list of questions that need answers, and you can contract the owner or landlord directly.
Always ask about security deposit amounts and what you’ll be expected to pay before you move in. Sometimes, a landlord will want the first month’s rent, the last month’s rent, and a security deposit that’s sometimes equal to a full month’s rent. That’s a lot of cash to come up with before you even get the keys to your new home.This isn’t necessarily a sign that you shouldn’t rent the home; it isn’t uncommon. Just make sure you know what an owner is looking for so you can budget and prepare and make sure you can get together the cash that’s required to move into the property.Find out what the application fee is as well. Unlike in other states, there are no limits on what a landlord can charge prospective residents when they complete and submit an application. In Tampa, you can usually expect to pay between $45 and $75 just to apply for a property. Ask to see a copy of the rental criteria before you apply. It’s important to feel pretty confident that you’ll get approved for the property before you apply. There’s no sense in wasting your application fee if you know you don’t meet the credit standards or income requirements.
Ask about utilities as well. If you’re renting a single-family home in Tampa, you will likely be responsible for paying the electricity, water, sewer, and trash. There may be an HOA fee and you’ll want to know whether you are responsible for that or if the owner pays it. Not only do you want to know which utilities and bills you’ll be responsible for; you’ll also want a general idea of how much you’ll be spending. A larger home will usually have higher electric and water bills. You’ll want to know what you should budget for utilities.Ask about parking and landscaping or pool services. You might be responsible for lawn and pool care, or there might be a professional who comes in to take care of those things for you. If there’s a regular service, you’ll want to know if you’re responsible for those bills or if they’re already included in the rental amount.Apartments and duplexes and other multi-family units sometimes include utilities. Make sure you understand what you’re responsible for paying and doing.
If you’re moving in with a pet, you need to ask about pet fees and deposits. Most pet owners are willing to pay extra in order to live with their beloved dog or cat, but you still need to know what that means for you financially. Many properties will charge additional fees for pets. You’ll need to know if you’re paying a deposit or a fee, and if it’s refundable or non-refundable. Ask about pet rent as well. Sometimes that’s a monthly fee that’s added to your rent.It might be time for your dog to get a job so Fido can pay his own rent.Just be prepared for the pet fees so you aren’t surprised when it’s time to move in.The reason it’s important to ask all these questions is that your relationship with a landlord or property manager can really sour if you enter into a lease agreement without knowing these things.Other important questions you should ask include:
When is rent due? How should rent be paid? The lease agreement should detail this entire process, but you want to know if you have the option to pay rent online or if you have to deliver it in person every month.
Ask about how you should report maintenance issues. Usually, there’s a separate process for emergency maintenance and routine maintenance. Make sure you know how you’re supposed to communicate when a repair is needed.
Make sure you are comfortable with the lease agreement and everything it entails. It’s easy to rush into a process, especially if you’re feeling pressured by the landlord to move quickly. But, you don’t want to sign anything you don’t understand, and you don’t want to rent a home before all of your questions have been answered.If you’re a resident looking for help with the leasing process in Tampa, please contact us at Mynd Property Management. We have lots of homes to show you, and even if you don’t rent one of our properties, we’d be happy to share our resources and advice with you.
Maintenance emergencies are often scary for rental property owners because no one really has a plan in place for how to handle them. Investors and property managers always talk about them like they’re scary and impossible; they say that disasters always happen at 2:00 in the morning.You could have an entire investment career without a maintenance emergency occurring at 2:00 in the morning, but the risk is always there. So, you have to know what to do. In Tampa, there are rules and regulations about maintaining a habitable rental home, just like any other real estate market.If you’re an investor in Tampa or thinking about purchasing a rental home in this market, you need to know how to identify and respond to maintenance emergencies.
At Mynd, we are proactive with emergency maintenance by having a move-in orientation with our residents. On the first day that they move in, we go to the property with the residents and we go over everything. We want them to understand how everything in the property works. This makes them more comfortable and it helps us if there’s an emergency in the future.This process of orienting the resident to the house works for us in a number of ways.First, it establishes expectations. We are able to talk with our new residents about what we need and expect them to do in terms of maintaining the property. Second, it gives them the authority and the confidence to mitigate any future emergency.For example, if it’s the middle of the night and there’s a pipe that’s gushing water, we want the residents to know how to stop the water. Because of our move-in orientation, they will know how to turn off the water at its source and save the investment property. Additional damage will not be a risk.When there’s an emergency, you absolutely want your residents to call you. But, you also need them to stop the emergency. So, getting them comfortable with the house is huge. Don’t just leave them there and wish them luck. Water can ruin an investment property quickly, and you don’t want your residents calling you while the home continues to flood. You want to know they have stopped the bleeding before they call you. Then, we can do what we do best, which is get someone out there as soon as possible to assess and repair the damage.
As an investor, if you’re self-managing your property, you and your resident may have very different ideas about what an emergency is. Make sure you clearly define an emergency in your conversations with your residents and even in the lease agreement. Put it in writing so you and your resident are using the same definition of emergency.For example, a light bulb going out is not an emergency.As a landlord and a rental property owner, you have a responsibility for keeping the home safe and habitable. You have to understand the property code and what it says about the legal definition of a habitable home. Residents are always going to need running water. They’re going to need electricity. Pretty much everyone will agree that a fire or a flood is an emergency.In Tampa, you also have to think about the air conditioning. This is a health and safety issue in Tampa, even if it’s not in other rental markets like Seattle or California.You cannot leave your residents without air conditioning when it’s 98 degrees and humid in the middle of an August day. The law dictates the timelines and course of action when something like this happens to make the home non-inhabitable.Again – set the expectations with your resident. You know that air conditioning makes a Tampa rental property habitable, but if they call at 10:00 p.m. because the air conditioning is out, you probably won’t be able to get anyone over to the property until the early morning. Make sure your residents are prepared for this. Responsiveness is critical, but you can’t work miracles.The reserve is easy to miss. Make sure you have some money set aside for the big emergency expenses. You don’t want to find that you need a new roof or a new air conditioning unit and you don’t have the money to pay for it. Set something aside in a maintenance budget or reserve so you’re prepared.
When you have an emergency at your rental property, it’s an emotional time for the resident. Remember this. It may be an inconvenience and an expense to you, but your resident will feel like he or she is in a crisis because there’s no water or a plumbing problem or no air conditioning.The best thing you can do is over-communicate with them so they know exactly what’s happening.Let them know what’s going on step by step. Emotional people don’t always do and say logical things. So, you have to remain professional and show them that you’re listening and working hard to resolve the situation. If they don’t hear from you, they’re going to assume you’re not doing anything. Make sure you communicate.We are investors ourselves, so we understand the importance of responding to emergencies at your Tampa rental property. If you’d like to hear more about how we can help with your maintenance issues and provide property management resources, please contact us at Mynd Property Management.We also have other opportunities to connect with us and learn more about investing in Tampa. You can also 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.
Tampa is currently a hot area for investors who are looking for great properties with a lot of potential. It’s easy to be successful with Tampa rental properties. Today, we’re discussing some of the commonalities among investors who are successful in this market.
Tampa is getting a lot of national attention because it’s been identified as a great place to invest in rental properties. There are lots of great reasons to buy investment property here. People are showing up because of the beautiful weather, the proximity to beaches, and the engaging downtown area, where people can eat great food, enjoy a lot of culture, and take in professional football and hockey games.Tampa is a great place to invest. There’s a wise saying in real estate investment circles: you make money when you buy. This is especially true of the opportunities in Tampa. You have to do your due diligence and make sure you’re making a sound investment in a great location, but it’s pretty easy to succeed in the Tampa real estate market. This makes it a great place for both new investors and experienced investors who are interested in adding to their portfolios.
When you’re choosing a Tampa investment property, consider location, condition, and amenities. You want to make sure you’re selecting a home that residents will find attractive. Do some math and make sure the rent you anticipate earning will be above your expenses. Successful investors understand that they’re not hunting for a home they’ll live in themselves. They’re looking for a property that good residents will find desirable and attractive. They need to know they’ll earn high rents and face low expenses.To succeed, find a sound investment. If you’re not sure what’s going to make a sound investment, get to know the Tampa real estate market a little better and talk to some experts. You want to buy in a desirable area that people want to live. As the years go on, you’ll want to increase both rent and demand. Successful investments make choices that meet those goals.You’ll notice we didn’t say anything about emotions or feelings. We didn’t say you should charge whatever you think your rental income should be. Data is more important than feelings when you’re investing in Tampa real estate. This is the most common trait you’ll find with successful investors; they treat their rental investments like businesses, and they don’t make decisions that are emotional.Settle on a rental value that’s based on comparable rents in the area. Find out what the numbers tell you. If your investment strategy is to have positive cash flow, make sure the numbers make sense for that goal. Your location also needs to be driven by data.Successful investors do not allow their emotions to dictate their actions. They go off the data and the numbers and they stick to their investment plans. Decisions follow a consistent pattern and they believe in their standards and systems. Plans and strategies are put into place to meet their goals and expectations. If they don’t have a necessary piece of information or they realize they’re lacking a resource, they’ll ask for help from a professional.Make decisions based on data, not emotions. This is absolutely critical.
In Tampa, both rents and prices are increasing steadily. There are still some great opportunities to buy good rental properties at low prices, especially when you compare the buy-in requirements of other cities on the east coast of the U.S. It’s always our goal at Mynd to get the most rent possible out of a rental property. For this reason, we like to steer people towards investment properties that are move-in ready. Successful investors don’t bother buying distressed properties that need a lot of work, even if those properties are cheap. Look for a home that’s fresh and painted and ready to occupy.A move-in ready investment property will rent faster and to more qualified residents. You’ll have a larger pool of applicants interested in the home. There’s a lot of demand in Tampa, so successful investors are raising their rental amounts steadily. Rents are going up and it usually takes two to four weeks to rent out a vacant property.In the past, the number of out-of-state investors matched the number of local investors. Now, we’re seeing a higher percentage of investors from outside of Tampa and even outside of Florida. Everyone is hearing great things about Tampa, so we’re getting a lot more interested in this market.Many local owners are also becoming investors because they decide to hold onto their home instead of selling it. Maybe they’re upgrading and moving into a nicer property, and instead of selling their first home, they’re renting it out. This is a successful investment strategy in Tampa as well.There’s a buzz in Tampa, and technology has helped. Mynd Property Management, for example, is in 16 regions across the country. We can leverage our data and help investors see what regions fit their investment strategy. Maybe you’ll want an investment in San Francisco that has a negative cash flow, but that’s okay because you have a handful of properties in Tampa or Houston that are achieving a positive cash flow. Before the gains we’ve made in technology, investors could not do that. Now, smart decisions can be made by educated investors.If you would like to experience success as an investor in Tampa, please contact us at Mynd Property Management. We can help you identify an investment opportunity in the local market, or provide professional property management for a Tampa rental property that you currently own.We also have other opportunities to connect with us and learn more about investing in Tampa. You can also 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.
At Mynd Property Management, we believe we’re the best property management company in Tampa. But, if you do an internet search for Tampa property management, you’ll find a lot of options. If you’re an investor who currently owns property in Tampa or is thinking about buying a new investment property, you’ll need to know where to turn when you’re looking for reliable property management advice and resources.Today, we want to help you understand what you should be looking for.
There are a lot of property management companies in Tampa and there are also a lot of real estate agents who try to manage properties on a part-time basis. While some companies deliver high-quality, outstanding services, a lot of property managers in this area give the entire industry a bad reputation because they’re not doing it right and they’re not doing it well.The phrase we like to use is win-win. It should be a lot of winning for property owners and their residents.You want to make sure you’re getting great communication from your property managers. Whether it’s texting or calling or delivering information via online portals, your property manager should be communicating with you regularly and consistently. The communication should be clear and accurate and transparent.Discuss your needs and your expectations before you sign the management agreement. We are always surprised at how many owners and investors just sign on the dotted line when they’re told to, without reading the management agreement and really studying what it entails.There’s a lot at stake when we’re talking about the management of your investment, whether it’s a single property or an entire portfolio. Make sure you and your chosen property management company are on the same page.It’s also important that you don’t feel locked into an agreement that may not serve you in the future. Be wary of termination fees and long-term contracts. At Mynd, we have a zero-term and zero-cancellation fee policy, and this makes us a little bit unique. But, we want to earn your business and keep it. It doesn’t help either of us win if we’re locking you into a contract and charging a huge cancellation fee. We want you to be happy with us. That’s important, and so we make sure that our contract makes sense. We hold ourselves accountable for helping you with cash flow and profitability.
Call people you know and trust, and ask them for referrals. Talk to people who are currently working with a property manager and ask what kind of experience they are having. You’ll want to know how the property manager helped or made a difference. It doesn’t necessarily matter to hear that a property manager collects rent every month. We hope that all property managers are doing that. Find out what really made the experience special; what stands out about a particular company?You want to make sure your investment goals are in place and your needs are being met. You need a property management partner who is on your team.
You’re going to get what you pay for with property management. You will never hear us say that you should use the cheapest property management company. At Mynd, our fees are flat and competitive. We provide tenant portals and documents and we make sure your property is being well-maintained and earning you consistent rental income.Don’t compare costs. Compare value.You’re looking for a management company with systems in place. You don’t want to have to manage your manager. If you own real estate assets, you don’t want to be bogged down with day to day decisions and hassles. You simply want to be able to log onto your portal and see what’s going on with your property.We often hear investors say they hired a certain company because they answered their phone first. That’s not a good reason to choose a property management company. You also shouldn’t choose a company because they’re the cheapest. Choose a Tampa property management company that’s aligned with your investment goals and has a documented history of success working with investors like you.If you were driving down the street to get surgery and you saw a doctor with a sign for 50 percent off surgeries, would you go to that doctor?Property management isn’t surgery, but it is your life savings and your financial security. You need to have a conversation and resist the temptation of choosing the first person who answers the phone or offers the deepest discount.Don’t go cheap and don’t do it alone. You don’t want to be frustrated and you don’t want to be the person who has to come up with systems because your property manager hasn’t. People do not buy real estate investments to have a second or third job.At Mynd, we’re choosy about the properties we want to manage because we believe in sharing the same goals and in being clear and transparent.If you want some help choosing a Tampa property management company, please contact us at Mynd Property Management. You don’t necessarily need to hire us to manage your property, but you can ask us for some tips and extra resources to make the choice easier.We also have other opportunities to connect with us and learn more about investing in Tampa. You can also 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.
We want to help our residents and potential residents lease and move into homes that they love. So, we’re talking to Tampa residents today about how to lease a home. It seems like something that should be easy enough, but there’s a lot out there that can be confusing.If you are looking to lease a rental property in Tampa, there are some right ways to rent a home and some wrong ways to rent a home.
The days of hopping in the car and driving around your favorite neighborhoods to find a home for rent are long gone. While it’s still important that you get out there and find a property that will fit your needs and desires and budget, you’re doing it a little differently these days.Most smart tenants are finding their next home online.Get on some of the great rental websites so you can look at a large selection of rental homes. Some of the sites we suggest include Zillow, Trulia, Hotpads, and Zumper. Even Craigslist can be a good resource, although you have to be careful with Craigslist. It’s easy to get scammed on that site, and we’ve heard a lot of horror stories about tenants who sent money before seeing a property. You have to do your due diligence and you have to ask a lot of questions. Don’t trust people who can’t show you the property and don’t waste your time on ads that don’t have pictures or seem to have a rental price that’s dramatically lower than it should be.Avoid the scams. Get in touch with the right person, and make sure you can access the rental property before you hand over any persona information or pay any money.If you see one property renting for $850 on Craigslist, and the same rental listing on another site has that home renting for $1,500, you know you should be suspicious. Contact the right person and ask the right questions.
When you’re trying to rent a property, you don’t want to be over-persistent, but remember that the squeaky wheel often gets the grease. When you see a property and you like it, don’t wait for other prospective residents to make a move. You need to take action quickly and apply for the property.Every management company and landlord will have a different application process. In general, you should expect to have to fill out a form and provide some supporting documentation. Make sure you understand the process, and don’t delay in providing the information that’s requested. Most Tampa homes receive interest from several residents at a time, and you don’t want to lose the home you love just because someone else acted fast and you didn’t.The property manager or the landlord will gather all of your information, conduct a background check and additional checks, and then make a decision. Once you are approved for the property, you’ll discuss the next steps including the lease signing and move-in date.During this process you do want to be forthcoming and transparent. You don’t want to be non-responsive and secretive.
When you’re contacting people online about properties for rent, it’s hard to know who you’re really dealing with. The best way to protect yourself is by working with a licensed real estate agent or a professional property manager. Individuals in this business can help you find the right property and protect you from potentially illegal situations.Trust your instincts when it comes to red flags as well. If you’re looking at a rental ad on Craigslist and there are no pictures, you should be suspicious. Run away from that situation. If you can’t see pictures with a listing, you don’t really know what you’re looking at and you don’t even know who is renting to you.Other ways to operate your due diligence:Ask a lot of questions. See how detailed people are willing to be with their answers. This will tell you if they really have a relationship with the property.Make sure you can get into a property before ever sending a security deposit or any other form of payment.Don’t rent a home just because you like the pictures. Make sure you can get inside and walk through it.Don’t wire any money without seeing the home and filling out a complete application.Not everyone you encounter on Craigslist is going to run a scam. But, if you see red flags, you should trust your instincts and continue asking questions. You never want to exchange any financial currency until you’ve verified you’re speaking to the owner or the landlord or the property manager or the rental agent.Sometimes, it’s in your best interests to slow down. It’s possible to slow things down in order to speed things up.Be cautious. Don’t rush into renting a home just because it seems like a great deal. The best thing you can do is go directly to a real estate agent or a professional property manager. While real estate agents usually deal with buying and selling homes, a professional will be willing to help you find a great rental. And, property managers really understand the rental market and can show you properties that meet the needs you’ve shared with them.If you’re a resident looking for a home in Tampa, please contact us at Mynd Property Management. We can give you more information on the properties we have available, and we can also help you through the leasing process in general.
As an investor, we all know there are expenses that come with owning a rental home. If you’re a new investor, you should think about owning an investment property the same way you think about owning a car. You’re going to get a flat tire at some point. You may not have expected it, but it’s bound to happen.It’s the same with your Tampa rental property. There are always going to be expenses. With people living in your property, you have to be prepared to pay for the wear and tear and the maintenance that comes with a tenancy. Residents will be flushing toilets and turning on appliances.Some things will break more frequently and cost you more money, depending on who is living in your home and where your home is located.Because of its climate and geography, Tampa has some unique expenses that are more common for investors here than in other parts of the country. We’re talking about those things today so you’ll be prepared as a property owner.
The first big expense that many investors forget to factor into their budgets is the cost of actually purchasing an investment property. You have to pay for the financing, the property taxes, and the mortgage. In Florida, property taxes are a bit higher than they are in other states. The value of a home and its corresponding taxes are re-assessed any time the property is sold. In Florida, we don’t have a state income tax, so the state’s revenue largely depends on property taxes and the transient taxes that are collected from hotels and short-term rental properties.Insurance is another cost of doing business in Tampa. We are always at a risk for hurricanes, so the insurance costs for your rental property may be a bit higher than they are in other parts of the country. Californians have earthquake insurance and in Texas, investors have to worry about high winds and hail. Hurricanes are the major threat in Florida, and with hurricanes come water. Even a strong tropical storm can cause flooding, so flood insurance is a legal requirement in most neighborhoods on a financed home.These are fixed expenses for the most part. They’re generally outside of your control as an investor because you have to pay them. However, you can usually budget and estimate what you’ll spend every year on things like property taxes and insurance.
Eviction expenses can also creep up on an investor when they have a resident in place who isn’t performing or paying the rent. Everyone who owns rental property is worried about the cost of evicting a tenant. It’s a big expense, especially when you consider how many expenses are actually rolled into an eviction. You’ll have to pay court fees and attorney fees all while rent isn’t coming in at all.The best way to avoid this expense is to do your due diligence. When you’re screening residents, do everything you can to avoid the future eviction risk.You never want to have these eviction expenses because they’re awful and they’re also somewhat preventable. A lot of investors also forget to factor in the mental expense of an eviction. Even if you’re working with a Tampa property management company who is making the eviction has stress-free and low-cost as possible, evicting a tenant is stressful and emotional.During an eviction, you’re also worried about the expense of residents trashing the property. Worst case scenarios will be running through your head. You have to detach. It’s easier said than done, but trust the process and remember that you’re running a business and this is part of the business. Mitigate this potential risk by screening well and putting the right person in your property. Do your background checks and talk to former landlords.When a Tampa investment property isn’t producing any kind of cash flow, it goes from being an asset to a liability. On your P&L statement, you could start getting uncomfortable. At Mynd, we always work with our owners to avoid the potential expense of eviction.
Preventative maintenance is an expense, but it also keeps future expenses down at your rental property.Do things proactively so you aren’t waiting for big and expensive repairs to happen. Flush your water heater and make sure it’s working. Air conditioning check-ups are really required at least once a year in Tampa. We run the air conditioning nine or 10 months out of the year in Tampa, so keeping that system in good shape is critical. You’ll pay between $50 and $85 for an air conditioning inspection and service, but you’ll avoid the potential $6,000 replacement cost.Work with your residents to ensure they’re changing the air filters regularly. Leave extra ones for them so they remember to change them. Preventative maintenance may feel expensive, but it keeps your investment property working and ensures it’s taken care of. This saves you a lot of money and extends the life of your appliances and your property.If you’d like to hear more about how to manage the expenses associated with your Tampa rental property, please contact us at Mynd Property Management. We’d be happy to work with you on maintaining your investment.We also have other opportunities to connect with us and learn more about investing in Tampa. You can also 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.
Tampa Real estate investors can often be afraid of making mistakes. It’s scary to fail because there’s no playbook that tells you when you’re going to fail and what you should do when things go wrong. Once you’ve made a mistake, it can be difficult to find a way back from that error, especially if it’s a large error or an expensive problem to fix.Small failures can be just as damaging as big ones. Today, we want to talk about the common mistakes that Tampa investors often make. Everyone has their own stories about what went wrong and how they recovered. If you’re wondering why investors fail in the Tampa rental market, it may be due to one of these common errors.
People will sometimes be in a hurry to fill their vacancy or they won’t be sure about how to properly screen an application, and they’ll place the wrong resident. This is the number one failure with investors in Tampa. When you rent out a home, your cash flow is critical. You need your residents to pay rent, and you need them to help you take care of the property.If you don’t have a great resident, a lot can go wrong really fast. You want to avoid that mistake with a solid marketing and screening process. Make sure you’re using a thorough and consistent application, and check the credit history and an eviction history. Talk to previous landlord about their rental experience with the applicant, and make sure you verify employment and income. You don’t want to rely on a pay stub that anyone can print. Call the employers and make sure the applicants are still working there and earning the income they say they’re earning.Look for felonies and a history of violent crimes. You want to judge their character as well as their financials; an applicant who has had physical fights with former landlords is probably not going to be a great resident.It’s amazing the turmoil you can have in your life when you place the wrong resident. When you place the right resident, everything feels normal and natural. Your entire rental and investment experience starts and stops with the resident you choose.You want to try and evict your residents before you put them in your property. This will save you a lot of time, money, and frustration later on. There are also fair housing and discrimination laws to follow. In Oakland, landlords cannot run criminal background checks on their applicants anymore. Tampa has its own sets of laws, regulations, and best practices when it comes to screening residents.Think carefully about who you place in your property. With the wrong resident living in your investment home, you’re going to be paying for that mistake for a long time.
It’s easy to get excited about an investment property, but if it’s a property that’s going to make you house-broke, that’s a huge mistake. You want to do the math and respect the numbers so that you’re sure you’re buying an investment that will make you money. If your rent doesn’t cover your expenses or you’ve bought a beautiful property and invested extra money into it but you can’t find a resident willing to pay what you’re asking – that’s a mistake.You need to buy right. Look for a strong cash flow. Most investors in the Tampa area can earn at least $300 a month in cash flow. More would be even better, but if you can reach the $300 per month threshold, you know you’ve avoided one of the most expensive mistakes that investors make.A lot of investors will try to make the numbers fit any deal they want to close. Don’t try too hard to massage things to make them work. You don’t want to hope you’ll get more rent and you don’t want to take a chance that maintenance will cost nothing. When you’re looking at the numbers and the historical data, remember those statistics are there for a reason. Don’t read between the lines. Your decision should be black or white.
You need the right property management company, otherwise your mistakes will be especially difficult to manage. Look for a professional who really knows their stuff. You should be able to rely on your property manager’s advice on what to do and what not to do.At Mynd, we offer resources and support even before you buy a property. If you ask us what we think about a property you’re considering, we will take a look at it and whether we think it can earn you the amount of money you’re hoping it will earn. We talk through your options and we provide reports and analyses that can help you make an educated decision.If you decide to buy, we will lease and manage and maintain the home, all with your investment goals in mind.The right property manager helps you avoid costly and common mistakes. It’s the engine pushing your train down the track. When you buy a rental property in Tampa, you’re buying four walls and a roof. The business you’re running inside those walls depends on a good property management resource.If you’d like to learn more about how to avoid expensive mistakes with your Tampa investment property, please contact us at Mynd Property Management.We also have other opportunities to connect with us and learn more about investing in Tampa. You can also 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.
Today, our focus is on investing in Phoenix. If you’re not from the Phoenix area, you should get to know some of the real estate opportunities that exist here. It’s becoming an excellent place to own rental property, and the secret is getting out. More and more investors are flooding the Phoenix real estate market in the hopes of generating some early cash flow and enjoying plum long-term returns.So, let’s talk about Phoenix and why you should invest in property here.
For starters, the pool of Phoenix tenants grows stronger every day.Phoenix is a booming area. Lots of people have begun buying investment property here because of the strong economic factors and the increase in new residents. It’s an excellent place to put your investment dollars, whether you’re thinking in the short term or the long term.Unlike a lot of real estate markets around Phoenix, the property prices here are fairly low. Now is the time to enter the market because there are outstanding price points. When you think about what it takes to invest in some of the California markets or even in cities on the east coast, you will quickly see that you get more for your money in Phoenix.
We always tell potential investors to get in now, while prices are still low. Because as people continue to migrate into the state from places like California and the Midwest, the market will respond. It’s a lot harder to get a job and find affordable housing in California. And, people from places like Michigan and Chicago are tired of shoveling snow every winter and scraping ice off their car windows. Population growth will continue.The surge in industry and commercial activity is also helping the market. There’s a lot of growth in the technology sector. More and more companies are coming to Phoenix, and they’re hiring. We expect the market will only continue to improve.
Here’s an example that beautifully illustrates what we mean.
A client of Mynd Property Management with just one property in Phoenix also had a townhouse in Denver that they owned for several years. The value on that townhouse was high, and we didn’t think that the Denver market would support it gaining any additional appreciation in the near future. So, we helped the client sell that Denver townhouse.
Using a 1031 Exchange, our client was able to buy two single-family homes in Phoenix. That’s how much further their money went in this market.It’s a good example of an investor knowing to work with a Phoenix property management company to leverage their investment and set themselves up for greater returns.
One thing that we always tell investors to look at is the economic drivers in a particular market. If you find a great city to invest in and the price structure works and the property matches your investment goals, you’re making a good start. But, you have to look at the market before you close the deal. Find out where people are working and what the major industries are. If there’s one major employer in town and a single industry driving the economic engine, that’s a big risk. Instead, you want a number of different industries driving the economy. That way, if one of them takes a huge economic hit, the value of your real estate won’t tank. There will be other industries and employers to keep the city afloat.There’s also the matter of timing.
Timing is everything. Think about what things looked like 10 years ago, after the housing recession. Phoenix might have been a great place to invest then, but it wouldn’t have been the best place to try and sell your asset. You probably would not have been able to sell it for the price you wanted.
This is a good reminder about the nature of real estate. It’s cyclical. The markets go up and down and the value of your property goes up and down too. Make sure you’re buying when it’s smart and selling when it’s profitable. You have to make sure you have access to reliable data. Look at those numbers and ask questions about what is driving the statistics. You’ll know if it makes sense.
Phoenix makes sense because it’s easier to enter the market than other cities. It’s also easy to see that the values are climbing. Phoenix also has a lot of employers. There’s no single company in town where everybody works. If one of the main companies in town pulls out, it won’t cause an economic downturn across the community and the market. More companies are actually moving into Phoenix. They find that it’s cheaper to run their operations out of our city, so they’re shifting to this area.You should invest in Phoenix real estate because there’s an influx of new tenants coming from California and other states that have higher housing prices and lower quality of life. Phoenix also has more space to grow. The market can continue to expand. In other cities, the only way to go is up, and prices are heading in that direction, too.
Phoenix is also a smart place to invest because it’s popular with retirees. We’ve found that people who are retiring want to rent instead of buy. They like the flexibility and freedom of low maintenance living.If you’d like to talk more about investing in Phoenix rental properties, please contact us at Mynd Property Management.You can also 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.