Single-Family Rental Investing vs. Multi-Family Rental Investing

When Specialized Fort Worth Property Management Company started out almost 30 years ago, the general public was mostly interested in investing in multi-family units or apartments. If people did invest in single-family homes, it was so they could fix up an older home and resell it for a higher value. Though this is a smart and quick strategy for making money, more and more investors are adopting a buy and hold strategy today. Just some of the reasons to invest in a single-family rental are: the investment stability, affordability, less tenant drama, an increase in demand, better available management, and a quick and easy exit strategy. Today, there are almost twice as many single family homes as there were 10 years ago during the housing crisis. In fact, according to the National Multifamily Housing Council, 43% of renters choose to reside in a single-family rental. Because of the increase in demand, property management techniques have changed. Learn the benefits of investing in single-family homes and how Specialized Fort Worth Property Management Company can help you maximize your profits. 

“We’re becoming a nation of renters — and not just apartment dwellers. Since the housing crisis, more renters are writing the monthly check for single-family homes. More of them are also writing checks to corporate landlords like Invitation Homes, Colony-Starwood, and American Homes 4 Rent. Back in 2005, ‘there were about 10.5 million single-family rental properties,’said Karan Kaul of the Urban Institute. ‘Today that number is north of 17 million. That’s almost a 70 percent increase. If you look at the other segments of the rental market,’ he said, ‘the growth in those units has not been close to what you’re seeing in the single-family market.’”- Marketplace

Investment Stability

People that want to live in a single-family rental are usually doing so because they like the stability and home life that a house provides but they also want the flexibility and mobility of renting. This means, as a property owner, that you’ll be able to rely on your good tenants who will take care of your property and most likely stay long term. With a long term tenant who pays their rent on time, you won’t need to worry about frequent turnover and vacancy costs that often play a big part in multi-family units, or apartments. You’ll also be able to form positive relationships with your tenants over time, decreasing the amount of tension around maintenance issues and neighbors. 

“From day one, you want to work on developing a positive yet professional relationship with your tenants. That means making them feel welcome and comfortable at the property, and providing them with all the information they need to start their tenancy off right. That includes contact numbers, details on your expectations, important dates and locations of the nearest grocery stores, schools, bus stops, etc. And, make sure they know where to locate emergency shut off valves for water and gas in case they need them.”- Zillow

Because single-family rentals usually increase in value over time, you’ll be earning passive income and can expect a very good return on investment. If you take a look at past real estate patterns, single family homes tend to appreciate much faster than multi family units. Since the value of single family homes is decided by supply and demand, and demand for places to rent is usually high, they appreciate quickly. On the other hand, multi family units are valued based on the rent being charged and the state of the home, meaning that value only goes up if all the rent prices increase in that certain location. 

More Affordable

In general, single-family rentals cost less than multi-family homes, such as duplexes and triplexes. The down payment required for a multi-family rental could be anywhere from 25-30%, while single-family home investors usually only have to pay around 10-15% down. Insurance rates are also cheaper for single-family rentals. In addition, there are many available options currently in the single family rental market, making it a buyer’s market. This means you’re more likely to find a better deal when investing in single-family rentals than anywhere else. Though paying for your property in cash would be ideal, it’s not always realistic. If your situation requires financing, single family homes often offer less expensive financing options that multi family homes do. You are more likely to be offered lower interest rates, longer terms, and higher loan-to-ratio values with single-family rental properties. 

No Tenant Drama

One of the worst parts about owning a multi-family rental is the tenant-to-tenant complications. Noise complaints, parking troubles, and plain old drama can make you feel like you’re parenting teenagers on a daily basis. Tenant drama like a divorce or a lost job can still happen, but are less common and usually more serious than complications in multi-family rentals. Though a property manager can help handle all of those things, it’s much better to invest in a single-family rental where those problems don’t exist. When there’s only one family in a home, there’s more privacy for them and less headache for you or your Fort Worth property management company. 

Demand Increase

As we mentioned earlier, people that are looking for a single-family rental enjoy the fact that they can live in a home with a yard and enjoy a great neighborhood with respectable schools. The growing number of millennials are looking to start families without having to buy a home. Wanting to keep their options open for spur of the moment travel plans or career changes, millennials appreciate the renting life. With a plan to stay long term, single-family tenants are more likely to take good care of the home and lawn while informing you of any maintenance problems in a timely manner. Because single-family homes are larger, contain land, and are located in higher-value areas, you have the potential as a property owner to charge more rent. Tenants are usually willing to pay more to be able to also enjoy the fact that they can leave easily, if need be, and aren’t 100% responsible for the property. Our Fort Worth property management company is still involved in single-family homes in regard to repairs, maintenance, rent collection, marketing, and much more. It’s up to you as the property owner, and the local housing laws, to decide how many expenses you would like to take on and what the tenant is responsible for. With the demand for single family rentals on the rise, they are the smart investment choice for property owners. 

Better Management

Specialized Fort Worth Property Management Company has processes and services in place that make owning a single family rental investment easier than ever. Rather than trust a property management company that uses multi-family business models to manage apartments as well as single-family homes, choose a property management team that has specialized in single-family rentals for nearly 30 years. Our technology-driven systems have proven the test of time and are still rated #1 in comparison to other property management companies. Specialized Fort Worth Property Management Company’s nationwide portfolio consists of over 70% single-family homes. 

Simple Exit Strategy

When you invest in a single family rental, the goal is to buy and hold the home, collecting the mortgage through rent. Once the house is paid off, you should sell the house and take home the profits from the increase in value. Fortunately, with the high demand for single family homes, you shouldn’t have a hard time with renting it out or selling it in the end. You can then use this money to invest in more properties or put it towards your retirement fund. If you’ve owned the property for a year or more, you may qualify for lower capital gains taxes when you sell. You’ll also be able to take advantage of tax breaks if the property depreciated in value. Investors also get an annual deduction that assesses the value of the home and how many valuable years it has left. To ensure that you make the most out of your single family rental investment, let Specialized Fort Worth Property Management Company help you along the way.

“SPM’s reporting and accountability is excellent. I have been impressed with the courteous, professional and efficient manner in which the affairs of my properties have been conducted. I recommend Specialized as an agent for handling rental properties.”- William M., Owner 

 Our team of experts will handle the everyday stresses of being a property owner and protect you against any mistakes made from not being aware of legal and local regulations. Our services include marketing, property showings, tenant screening, collecting rent, maintaining your property, providing you with detailed monthly reports and year-end tax statements, and much more. You can trust us fully to make your rental property the best it can be and help you increase your profits. Take advantage of our user-friendly online owner user portal, where you’ll have constant access to your rental property from any location. Contact us today to find out how Specialized Fort Worth Property Management Company can multiply and take care of your investment in today’s growing real estate market. 

6 Things To Know About Property Management DFW Before Buying Rental Property

If you’re considering renting out your home or buying a piece of rental property, there are some things you should know about property management. DFW and the surrounding areas can be great places to own rental property if you know what you’re doing. Below are six things every property owner should know before they make the dive into property management.

  1. Know Local, State, and Federal Laws. Picture this: You find the perfect rental property in a well-maintained neighborhood with all the amenities. You sign all the papers and the property is yours! You put up a For Rent sign and wait for the applicants to roll in. But instead of applicants, you get a letter from your new Home Owners Association. It turns out that packet of HOA rules you skimmed through and signed has a clause saying they will only permit ten rental homes in the neighborhood, and your property would be number 11. Many landlords are surprised when they find out that an HOA can limit the number of renters. Unfortunately, HOA rules are just the tip of the iceberg when it comes to need-to-know laws. Violating the Fair Housing Act, for example, can land you a lawsuit, hefty penalties, and attorney fees on top of that. Getting into Ft. Worth property management means knowing all the rules and laws that apply to you, your property, and your tenants. Breaking a rule because you’re unaware will leave you in a tight spot, and could jeopardize your investment and your reputation.
  2. Understand the TRUE Cost of Property Management DFW. As we mentioned above, owning rental property in DFW can be a great investment. In fact, Business Insider recently named Dallas as one of the top places to buy rental property in the US. But before you buy, make sure you know all the costs that surround your new investment and only buy a property that will give you positive cash flow. If you plan on financing your rental property, then the rent you bring in needs to cover your mortgage, taxes, insurance, and fees. However, if your rental income only covers these items, your cash flow will still be negative. Why is that? You need to plan for regular maintenance and emergency maintenance, as well as turnover between tenants. Depending on the age of your house you should put aside 1-2 months worth of rent for yearly maintenance costs. An experienced Fort Worth property manager should be able to help you come up with an estimate of the cash you should have on hand and the positive cash flow you will need each month to make your investment successful.
  3. Treat Tenants Kindly. Property management DFW is easier and more successful when you have a good relationship with your tenants. When tenants feel disrespected or unheard by their landlords, they are more likely to move when their lease is over. Tenant turnover is time consuming, expensive, and in many cases could have been avoided with a better landlord-tenant relationship. One way to help is to make sure all policies and procedures are laid out clearly in the lease and followed closely by you and your property management team. Your tenant should never feel like you tell them one thing then do another, and you should leave emotion out of your interactions. Many landlords feel professional property managers can help this relationship a great deal because of the experience, professionalism, and promptness they offer.
  4. Be Proactive About Maintenance. There is no avoiding maintenance around your rental property, whether it is simply replacing air conditioning filters or replacing your whole AC system. Professional Ft. Worth property management knows from years of experience that the more proactive you are about maintenance, the longer your home’s systems will last, and the happier your tenants will be. For example, a yearly tune-up of your AC system costs between $80-$100 and could add years to the life of your system. It can cost $4,000 or more to replace the whole system. You can see how small yearly costs can save you thousands of dollars over the life of your property. Regular property inspections are a good idea for many reasons, but especially to identify ways you can be proactive about maintenance. An inspection will help you catch small issues your tenant may not notice, like a leaky pipe before it becomes water damage and mold. Proactive maintenance has the added benefit of showing your tenants that you care about your property and by extension, you care for them.
  5. Screen Every Tenant. Applicant screening is an easy step you can take to avoid turnovers and evictions. Every applicant over 18 should be thoroughly screened including a background check, credit check, and rental history. You should verify your potential tenant’s job status and income to ensure they can pay rent. Most professionals recommend a tenant’s rent payment be no more than a quarter of their monthly income. That means if they make $4,000 a month they can afford $1,000 for rent. Never make the mistake of renting to a tenant who refuses to let you screen them, or is unwilling to give references or rental history. These tenants quickly lead to unpaid rent and evictions. In the long run, it is worth it to wait a few more weeks for a qualified tenant than bet on one who is unqualified.
  6. Know When to Ask for Help. When it comes to property management, DFW landlords need to know when to hire professionals. Being a DIY landlord can work out for some people, but often property owners make mistakes that can put their investment at risk. When hiring residential property management, Fort Worth landlords not only get someone who will handle the day-to-day activities of running a property, they get the years of experience and wisdom that entails. If property management is not your full-time job, you cannot be expected to know the ins-and-outs of Federal Housing laws, maintenance and inspection schedules, and what to do to avoid an eviction. Many property owners are surprised to learn that they profit more after they hire a full-service property management company, even after they pay management fees. Professional property managers know how to cut costs without cutting corners, making your investment into a success.

If you want to know more about hiring a full-service, professional property management company, call Specialized Property Management Fort Worth today.

Arlington Rental Property Management Helps Investors Find the Right Rental Home

Picking a great investment property is hard work, and there are many factors you need to consider. If you’re in the market for a single-family home to use as an investment, you can get help from a local Arlington property management company. The type of property you pick will affect how easy or difficult your Arlington rental property management is, so choose wisely! Below are our best home buying tips for investors.

Location, Location, Location

Try to think like a renter when you’re buying an investment property. Are there good schools nearby? Is there easily accessible public transportation? Is the home on a busy or quiet street? If you’re not an area expert, find an Arlington property management company who has local expertise and can advise you. Specialized Property Management Fort Worth has property managers with years of experience who can help you narrow down the perfect neighborhood to buy in.

Look at the Amenities

Typically a home with three bedrooms, a fenced-in yard, and laundry hookups will rent out faster than those without these features. Homes with an unusual layout, such as no master bathroom or with unusable space, should be avoided. Neighborhood amenities are important too, such as a community pool and park. Some HOAs have rules regarding rental homes, so check all HOA bylaws before purchasing a home.

Ask Your Arlington Property Management Company to Compare Similar Rentals

Look at other rental homes in the neighborhood so you can get a good picture of the kinds of homes available and the average price of rent. Your Arlington rental property management company has local market expertise and can guide you to a rental property that will perform well in the market.

Arlington Rental Property Management is Easier With Expert Help

If you’re finding it difficult to narrow down your buying choices, you can contact the local experts at the Arlington property management company, Specialized Property Management Fort Worth. If you are able to make a wise choice when you buy your investment property, that will make everything easier down the line. Desirable homes will attract quality tenants, giving you the cash flow you need to make your investment successful. So, when you are ready to buy an investment property, do your research and hire the local market experts at Specialized. Call today for a free rental consultation.

Fort Worth Property Managers Answer When to Sell vs Rent

When you need to move out of your home, should you sell it or rent it out? Keeping your home as a rental investment can be a great long-term investment plan, but you shouldn’t do it without knowing what you’re getting into. With help from a good property management company, Fort Worth landlords can decide if they want to sell or rent.

Fort Worth Property Managers Say Rent for These Reasons

    1. Equity: if you do not have much equity in your home it might be a good idea to rent it out while you build that equity. This is especially true if home values in your neighborhood are rising.
    2. Rent values: often the rent money you bring in will more than cover your mortgage and other rental-related costs! Look around the neighborhood at what comparable properties are renting out for.
    3. Investment diversity: Your investment portfolio should be diverse, and owning a rental property is one way to diversify. Rental property can be an excellent long-term investment.

Tips From Your Property Management Company, Fort Worth Experts

Even though owning rental property is a great investment, you shouldn’t jump in thinking it will be easy. Being a landlord takes a lot of work, knowledge, and capital. Take these tips from Specialized Property Management into consideration:

    1. Know your local, state, and federal housing laws. Even some HOAs have rules about renting out your home. Make sure you know if any of these rules will hinder your ability to rent out your home.
    2. Make sure you have enough cash. Vacancy days and maintenance are the biggest costs to landlords. Make sure you have enough cash reserved to cover the time it might take to get a tenant in your home. Set aside money each month to cover periodic maintenance issues.
    3. Hire the best Fort Worth property managers. A good property management team will help you make a better return on your investment.

Specialized is the property management company Fort Worth landlords have trusted for almost 30 years because we know the ins and outs of property management. When you are trying to decide if you want to sell or rent out your home, let us help you. To hear more about our services call our office today!

Fort Worth Property Management is Easy With Family and Friends

A growing trend in the real estate market is buying property with family and friends other than your romantic partner. Home prices in some areas make owning property on your own difficult, but with a trusted friend or family member, it is attainable.  Instead of spending your entire savings on the down payment for a small condo, you could afford a single family home which you can then rent out for a profit. Pooling resources with your sister, nephew, or coworker is a great way to start in the rental home market. Specialized Property Management, the property managers Ft Worth landlords trust, can help you decide what is right for you.

Making Good Fort Worth Property Management Decisions

Owning rental property is a long-term business investment. When buying a rental property with friends or family members make sure you keep this in mind. All decisions regarding your rental property should be treated in the same way you would treat any other business decision. Costs and workload should be split fairly and upfront. For example, who will your tenant call in the middle of the night for an emergency? Good Fort Worth property management decisions will ensure your partnership will be fruitful and last throughout the years.

Get Better Returns With the Property Managers Ft Worth Trusts

The best thing you can do for your rental property partnership is hire experienced, professional property managers. Ft Worth landlords have trusted Specialized Property Management for almost 30 years because we know how to make the most out of your investment. When you hire the property managers at Specialized, you know your property will be run like a business, and you no longer need to worry about screening tenants, seasonal maintenance, or those middle of the night emergency calls. Call Specialized today to hear about all our services!

How Poor Rental Property Selection Affects Your Profits

rental property management Fort Worth, Fort Worth rental property management

Not all rental homes are created equal. Some are much easier to rent out than others, but how do you choose the right one? Which home will have the shortest vacancy time and bring in a wide variety of eligible applicants? Your rental property management Fort Worth office will have the expertise you need to buy in that specific market, but in the meantime here are a few general ways to pick out the best rental property.

Fort Worth rental property management recommends…

  1. Location, location, location! Where is your property located? Are there good schools, easy access to public transportation, and excellent local amenities? Would YOU want to live there? Safety and amenities are big issues for potential renters.
  2. Municipal regulations make a difference! Managing a property in an area that has heavy regulations can create a significant burden and may not be worth the cost. Check the local regulations before you buy so you know what you are getting into.
  3. HOA rules and fees can be surprising! Don’t be caught off guard by HOA regulations. Some associations even require input on your tenant selection, which could create a delay in renting out your home. Know the rules before you commit to an investment property.
  4. Local rental markets vary! Look for a neighborhood with low vacancy rates, high rent prices, and appreciating home values. Your Specialized Fort Worth rental property management team can help you pull all these statistics.
  5. Buy an attractive home! Stay away from weird layouts, busy streets, and older or smaller homes. Long term, single-family rental homes are easier to rent out if they have 3 or more bedrooms, are over 1000 sq. ft., and have fenced-in yards. Maintenance will be easier and cheaper if the home is less than 15 years old.

Specialized’s Rental Property Management: Fort Worth Experts in Property Selection

When you are ready to purchase an investment property make sure you consult the experts in property selection. With almost 30 years of experience Specialized has what it takes to make your investment a success. Call us today to learn about all the services we offer!

Fort Worth Property Managers Share Tips on Selecting Rental Properties

 

Fort Worth Property Managers Share Tips on Selecting Rental Properties

You have decided to purchase a rental property. Congratulations! Rental property can be a great long term investment. But how can you be sure your investment pays off? One of the most important things you can do is buy a GOOD rental property. But how do you find a good rental property? Here are a few pointers from the property management company Fort Worth landlords have trusted for almost 30 years, Specialized.

 

Location, Location, Location! —  Location is key when you are buying rental property! You need to make sure your rental home is in an area with low vacancies, high rents, and around homes that are appreciating in value. Poor proximity to good schools, transportation, and shopping can also be a dealbreaker for many potential tenants. Finally, make sure you know what municipal laws and HOA fees will affect your rental home.

 

Rental Home Details— Does the home you’re looking at have an unusual layout? Is it on a busy street? Is it an older home that may need more maintenance? These are just a few of the reasons you should rethink buying that rental home. Stick to houses that fit the description of homes that are leasing and selling fast in your area. Typically, homes with three or more bedrooms and that are less than 15 years old will be easier to rent and will cost you less maintenance. Experienced Fort Worth property managers can help you find out what kind of home rents quickly in your area.

 

How Fort Worth Property Managers Can Work For You!

When you’re looking to buy and investment property, it is key to hire an expert local property management company. Fort Worth is home to over 800,000 people, and with a population that big you really need someone who knows the ins and outs of the city to help you choose the best possible home to buy. Call Specialized in Fort Worth today to speak to us about all our rental property management services!

Most Don’t Cover Actual Costs in the Short Term

Fort Worth residential property management

The Reality of Rental Rates: Most Don’t Cover Actual Costs in the Short Term

There are two sides to every coin. In Fort Worth residential property management, it’s typically a monthly negative cash flow but positive long-term tax strategy and equity investment. So, if you who haven’t yet realized the financial benefits of your investment and must come up with out of pocket cash each month to cover the difference in income and expenses, don’t worry. You’re among the majority who are waiting and preparing for the real benefit of rental investments. If you properly care for and maintain your property, ideally with the help of a Fort Worth property management company, you will realize the real benefit in time. Now, it’s enough to understand the correlation between these two concepts.

Negative Cash Flow

If your rental property is in good shape, even one of the nicest in the neighborhood, it still may not bring a higher rent rate than others due to competitive nature of rentals. Tenants often have a lot of choices, which forces many owners to reduce the monthly rates. Equally influential, however, is that the real estate market is indifferent to your expenses such as principal, interest, taxes, and insurance.

Positive Long-Term Tax Strategy and Equity Investment

Owners can use rental property as a tax strategy each year as all expenses for maintenance, upkeep, insurance, and improvements are tax deductible. Also, the change in value or depreciation based upon the original price purchase of the home is considered a loss or deduction when you file your taxes. Secondly, when you do sell the property, if it has gone up in value and if you have paid down the mortgage then you will earn more equity in the end.

As you hold both sides of the rental investment coin in your hands, remember that your property is an asset, but you must keep it that way. In this competitive market, renters want a property that is well cared for, clean, safe, and maintained with responsive management. You can provide this with a professional Fort Worth property management company such as Specialized. This will ensure your monthly rent, although it may come up short of your expenses, is consistent. Secondly, caring for your property now is your best chance at maintaining and hopefully increasing its value over time. Fort Worth residential property management is not easy, but it’s worth it in the end. Discuss your short- and long-term plan today with an expert at Specialized. We will make sure the coin eventually flips in your favor.

Five Ways to Select the Best Rental Property in Fort Worth

Fort Worth property managers

Property Management Tips for Buying an Investment Property

Investing in real estate is smart. Investing in the right real estate, however, is even smarter. So start with a property management mindset. From our 30 years of experience in Fort Worth, property management perspective in the buying process is crucial to determine how long your rental stays vacant as well as the quantity and quality of tenant applications you receive. In short, your decisions today determines how you will manage your property tomorrow.

Applying the property management perspective is simple to remember when compared to the nursery rhyme This Little Piggy. After all, your investment could be a perfect piggy bank for you if you purchase the right one. “This little piggy…”

“Went to Market”

Not the grocery store. Think real estate market. Not all markets are created equal – some have lower vacancy rates, higher rents, and appreciating values. Talk to an expert at Specialized for help identifying the best property choices in Fort Worth. Property managers who live and breathe this information every day are best poised to point you in the right direction.

“Stayed Home”

Remember, this is someone’s future home. Is this a place where you would want to stay? More families are seeking to rent long term. So say yes to single family dwellings less than 15 years old with rent below $1700/month, 3+ bedrooms, 2+ baths, fenced yard, and a standard layout.

“Had Roast Beef”

How close is your rental property to shopping, dining, schools, and other amenities? That’s the meat of real estate location. If you’re looking to purchase in Fort Worth, property managers who have seen the effect of these dynamics on of different housing locations will be the best advisors.

“Had None”

No city ordinances and regulations for landlords, minimal municipal regulations, and zero HOA rules and codes would be ideal, but it’s not practical. Just be aware of these potential costs and know that they vary. Do the math – or call Specialized to do it for you – to save long term.

“Went All the Way Home”

This little pig was obviously happy to be headed home because your rental property is so nice, but how did it get there? Mother Goose never tells us. It could have been public transportation, which is on the rise. A property close to rail or bus lines is always a plus.
Specialized has been around almost as long as Mother Goose. We know the rental market like she knew nursery rhymes. Call us before you purchase. We will help you select the best piggy bank property for your buck.