If you’re ready to invest in a home and rent it out to make a profit, now is a great time to do it. The market is great and home values are going up. According to Norada Real Estate Investments, “If you are a homebuyer or real estate investor, Fort Worth definitely has a track record of being one of the best long term real estate investments in the country through the last ten years.” There are also more renters now than ever before as millennials begin to settle down while still wanting the freedom that comes from renting. Single family homes are becoming increasingly popular, and your decision to invest should be an easy one. Let Fort Worth property management companies be your guide as you do your research. Specialized Property Management has over 30 years of experience and an in-depth knowledge of the rental industry and how to make the wisest home purchases. There’s more to being a property owner than buying a home and recruiting tenants, and we’ll explain what.
“Location, location, location” is a famous saying for a reason. Location in real estate is so important because it affects the type of tenants you attract, how much you should charge for rent, and the local regulations you’ll need to adhere to. When you’re looking at locations, notice what is within 20 miles of your property, such as access to a main road or freeway, good schools, parks, local amenities, shopping malls, grocery stores, gas stations, restaurants, and public transportation. Every aspect of where your property is located will affect your return on investment. Check with current landlords in the area and get information on their situation. Do they have lower vacancies? How much do they charge for rent? Are homes appreciating in value so you can raise the price of rent year after year? Fort Worth property management companies like Specialized Fort Worth may have access to information about certain areas of Fort Worth that you don’t. Let us advise you on the best places to invest and why to help your bottom line even more. Once you’ve decided to purchase a home based on Specialized’s expert advice, we’ll help you market it, set the proper price for rent, and make the most out of the location you’ve chosen.
Millennials are growing up and wanting to start a family, but prefer to rent than buy. They love the idea of a single family home they can rent because it means all the pros of having a home with less of a commitment than buying their own home. They may want to stay long term, meaning they’ll take good care of your property and you’ll have fewer vacancies to worry about. Use this knowledge to your advantage and make sure your property is family friendly. Those who are responsible enough to plan a family usually make great tenants. Look for qualities in properties such as a fenced yard, at least 3 bedrooms and 2 bathrooms, around 2,000 square feet, adequate storage space, and laundry hook-ups. Fort Worth property management companies will tell you to avoid homes with no master bathroom, located on a busy street, with unusual layouts, and built more than 25 years ago. Good schools are a great selling point as well. Try to look for schools that rank high on test scores and have a positive reputation.
Every city has their own set of rules and regulations to follow when it comes to housing. In some areas, you can be fined for not following certain ordinances. There are ordinances and construction codes surrounding everything from noise ordinances to electrical wire codes. One simple mistake could cost you a large sum of money if you aren’t paying attention, and rules are subject to change. Fort Worth property management companies like Specialized Property Management has a team of experts who already know the ins and outs of each city’s municipal regulations. Trust them to protect your investment by informing you of regulations to follow and then helping you continue to follow them year after year. When regulations change, we know about it and make sure that you’re following everything correctly. What you pay our property management team won’t compare to the money you’ll save by not paying fees issued to you from the local government.
You may get excited if you discover a property for sale that has a Homeowners’ Association, and you should be. HOAs are excellent for keeping the neighborhood clean, creating a safe and friendly environment for families, and creating less maintenance work for you. However, if you aren’t familiar with the rules and codes for your HOA, you could lose time and money by violating the rules unknowingly. This article from MorrisInvest goes into detail about if you should buy a rental property with an HOA. When you hire experienced Fort Worth property management companies, they can help you decide if it’s worth it to pay the HOA fee in addition to property taxes and mortgage payments, and how much you should charge for rent in order to still make a profit. They’ll also be aware of the HOA’s policies and help your property stay in line.
Age of the Property
It can be tempting to invest in an older home because the price is lower, but think about the long term costs. When you invest in a home that is less than 15 years old, you’ll automatically be paying less for renovation costs and maintenance costs in the future. You’ll also be able to charge more for rent just because it’s a newer home. Additionally, you’ll attract more potential tenants which means high quality tenants and fewer vacancies. Chances are newer homes are in good, safe, neighborhoods as well. If you find a newer home that could still use a little updating, ask the advice of Fort Worth property management companies. Specialized Property Management’s team of experts can advise you on how to update your home in quick and inexpensive ways to make the most impact and attract the best tenants.
Single Home vs. Group of Homes
If you’re looking to invest in more than one home, it’s a good idea to purchase your homes in a group. When they’re all in the same neighborhood and you know that that neighborhood is family friendly, clean, safe, and close to attractive amenities, you’ll be able to make twice the money by investing in twice the properties. When you need to stop by and check on one home, you can use the same trip to check on others without driving all over town. You’ll also be familiar with the market in that area and have an influence on the going rate for rent. Fort Worth property management companies will also tell you to be efficient with your time. Not only should you invest in properties that are close to each other, but that are close to you. Buying properties on your way home from work, church, or anywhere else you frequently go to will save you time and money.
Stay in Your State
Fort Worth is an excellent place to invest in a rental property but you may be thinking about looking outside of Texas to invest as well. Some reasons why people invest in property out-of-state is because they want to diversify their investment portfolio or properties are more affordable somewhere else. This can be a risky decision because it will be harder to check on your home and stay up to date on changing regulations for that city vs. Fort Worth. Consider these issues if you are thinking about investing in out-of-state property. It may be worth it, but the risks are high. If you do decide to invest out of state, seriously consider hiring a property management company that you trust to take proper care of your home and send you frequent reports.
Fort Worth Property Management Companies
Investing in single family rental homes is a great way to make money and diversify your residential management property portfolio. Deciding what and where to buy is really important to your overall success and can be overwhelming. Take advantage of Specialized Fort Worth’s property management company services that include inspections, marketing, showing, setting the rent rate, collecting rent, maintenance, monthly reporting, and tenant screening and selection. Our team of professionals will help you find the best properties in the best areas and then manage them for you for as long as you need us to. In addition to taking great care of your property, we’ll also interact with tenants and address any tenant concerns during their stay at your property. Our goal is to reduce your risk while minimizing costs and maximizing cash flow on your rental property. With over 30 years of experience and a 98% customer satisfaction rate, you can be sure that your investment is safe with us. Contact us today to learn more about rental investments and our property management services.