Are you considering renting out your Fort Worth home? Read more
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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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.
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
- 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.
- 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.
- 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:
- 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.
- 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.
- 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!
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!
YOUR SPECIALIZED OFFICES
Fort Worth, TX 76116
Fax: (817) 377-1201
Dallas, TX 75240
Fax: (214) 296-9380
Dallas Property Management
San Antonio, TX 78232
Fax: (210) 477-3600
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For more information on Specialized Property Management, visit Specialized247.com
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