Are you considering renting out your Fort Worth home?
The good news is, this is a great time to rent. The rental market is strong, and there are several good reasons to rent rather than sell. If you’re in possession of a property or you’re thinking about acquiring a new investment home in the Fort Worth market, we have some advice and insight we can share with you on how to succeed. At Specialized Property Management, we have been expertly managing residential real estate for investors and landlords for years. We understand the market and the best ways to be successful with rental homes.
Adopting a Buy and Hold Strategy with Fort Worth Rental Properties
If you’re planning to rent out a property you already own or to purchase a property that you intend to rent out, you’re following an important investment trend. The strategy you’re considering just happens to be the same approach investors around the country are considering.
This is the opportunity to buy and hold.
There are several ways to succeed with the buy and hold strategy. While you may only have one investment property, you are similar to larger institutional real estate investors in that you want the best return on your asset.
This strategy requires you to hold onto your real estate asset as long as possible. When you do this, you’re allowing your investment to grow in value. Fort Worth property values are on the rise, and if you can hold onto a well-maintained property, you have the potential to earn an impressive return on your investment. You’ll have an asset that’s worth a lot more than it was worth when you first bought it.
With a good tenant in place, someone else will be paying down your mortgage debt. So, you’re earning both short term and long term returns on your investment property. In addition to the immediate cash flow, you’ll earn long term returns and you’ll also have a tenant bringing down what you owe on the property. There are many ways that a buy and hold investment strategy will work for you.
Professional Advice and Management for Your Investment
Just like your other investments which are properly managed, your real estate investment deserves same careful treatment and will benefit from professional management. You wouldn’t invest in stocks without some good advice, and you shouldn’t invest in residential rental properties without the help of professional Fort Worth property managers.
There are a lot of reasons that you should work with a professional property manager to rent out your Fort Worth property. Today, we’re highlighting four of them.
Avoiding Costly Mistakes
Homeowners like you turn to us to avoid costly mistakes. It’s easy to make mistakes when you don’t have the experience that professional property managers have. There are several common mistakes that can end up costing you money, and you need to be sure your property manager will protect you from them.
- Fair housing violations. You can easily violate a fair housing law without meaning to. Just by using the wrong language in your marketing, treating applications differently, or asking for pet rent for a service animal, you can find yourself in the middle of an expensive claim. Property managers understand and keep up with fair housing laws, and ensure you are compliant.
- Texas Property Code violations. Many owners make mistakes that violate the Texas Property Code. You may not realize what’s required with smoke detectors, and you might not know that deadbolts and peep holes are required on exterior doors. Your property manager can make sure these things are covered.
- Poor tenant screening. A lot of investors make the mistake of not screening their tenants well. They’ll be so excited to have someone interested in the property that they’ll collect the rent and move them right in. It’s important to have a professional and thorough screening process.
- Property condition documentation. Another major mistakes property managers can protect you from is not documenting the condition of the home before a tenant moves in. You need detail and you need photos, otherwise you’ll have trouble determining what kind of damage the tenant is responsible for at move-out.
Improve Cash Flow
Another good reason to hire property managers when you’re leasing out your property is that you can increase your cash flow. Professional property managers understand the intricacies of the Fort Worth rental market. This will help you to prepare your home for the rental market better. You’ll have professional advice on how to market it. Ultimately, you’ll be able to set a rental price that’s just right. A good property manager will ensure you price the home low enough so that it’s competitive and high enough so that you earn as much in rent as possible. Reducing your vacancy rate will increase your cash flow, and your professional management company can ensure you get your property rented quickly to an outstanding tenant.
Other things that improve your cash flow include tenant retention, a strong lease, and even accepting pets. Many property owners hesitate before allowing pets into their properties. If that sounds like you, it’s understandable. You don’t want to deal with the damage or the liability. However, allowing pets increases your cash flow. How? It eliminates long vacancies. More than half of the tenants looking for homes have at least one pet. So, not allowing pets will potentially lead to longer vacancies. It also allows you to earn more income. You can charge a pet fee or pet rent. With a strong pet policy in place and attached to your lease, you can protect your home and your investment while you earn more on it.
Save on Expenses
Property managers can also help you keep your costs down. You might worry about the monthly management fee cutting into you cash flow, but you more than earn that money back by saving on these like vacancy, bad tenants, lawsuits, and maintenance issues. Landlords managing their own homes spend a lot more on repairs than professional property managers.
For starters, your property manager can adopt a strategy of preventative maintenance, saving you money on costly repairs in the future. If a small leak turns up under a faucet or a few shingles fly off the roof, your property manager will take care of the problem quickly. Otherwise, the repair that’s needed a few months down the road will be far more expensive. So, with emergency repair responsiveness, a schedule of preventative maintenance, and the ability to respond to routine maintenance, you’ll save money on catastrophic expenses.
You’ll also save money on maintenance because your property managers will have excellent relationships in place with good vendors and contractors. Many times, a local vendor will offer preferred pricing to a property manager due to the volume of work that management companies send to plumbers, electricians, and other contractors. A good property manager will pass those savings onto you. Individual landlords cannot get the same low pricing and excellent results that a property manager can.
Part of increasing your ROI is keeping your costs down. Make sure you’re working with your property manager to spend less so you can earn more. Expert investment advice, property management experience, and a smart approach to maintenance will help you.
Create Long Term Stability
Creating long term stability is good for any investment, especially residential real estate. When you buy and hold a property, you can rent it out in any market. There will always be tenants needing a place to live, and when you can offer a great property, you’ll attract great tenants. With an investment property that you’re renting out, you can count on rental income every month for the next few years, at least. This helps you plan your investment goals and execute a smart investment strategy. Your professional property manager can provide direction and recommendations, which will be invaluable to your investment success.
Your property manager will do all this while keeping you informed 24/7. When you work with us, you’ll have access to your online owner portal, where you can always keep up with the performance of your property.
Too many homeowners learn the hard way that property management is a tough business. Small mistakes have big consequences. Unless you have a lot of free time and you’re experienced in the property management or real estate field, your investment property will be in better hands when it’s being managed by a property manager. This is one of your largest assets; you don’t want to take chances.
We are here to save owners time and money with a team of highly trained specialists dedicated to taking care of you, the homeowner, and your home. We develop great relationships with tenants, help you enforce your lease, and keep an eye on your home and the way it fits into the market.
Put our experienced team and proven processes to work for you. Contact us at Specialized Property Management in Fort Worth today. We’d love to tell you more.