3 Reasons to Consider Passive Houston Texas Real Estate Investing

So you’re thinking about getting involved in Houston Texas Real Estate Investing but will your Real Estate investment be a passive investment?

In this post we will share with you 3 tips you can use to insure that your Houston Texas Real Estate investment will be 100% passive so you can continue working in your current job while your rental property makes money for you, even while you sleep.

Passive Tip #1 – Purhase a Property with Existing Tenants

Instead of buying rental property that’s vacant or needs repairs you should search for rental properties with existing tenants because the cash flow for those properties is already established and your money can start working for you 24-7.

If you are short on funds to purcahse a propert consider crowdfunding.

Crowdfunding is opening up investing to anyone with a little extra cash these days as regulations change and entrepreneurs take advantage of the expanding marketplace.

Source – abc15.com

Passive Tip #2 – Hire a The Right Property Management Company 

One of the big mistakes most investors make when they are just getting started with buying rental property is thinking they can do everything themselves.

Don’t make this mistake! Hire a property management company in Houston Texas immediately when you buy your first rental property because this will save you the time, money and hassle of having to manage your property yourself and you will have more time to actually grow your portfolio.

As an investor and entrepreneur, you should always be on the lookout for ways outside the obvious to improve your return. When using personal funds to invest, the best way to do it is through a self-directed IRA. A self-directed IRA is the same as the usual IRA, however, it allows alternative investments for your retirement savings. By investing through an IRA, you can avoid using your taxed income. Most banks have this option, so it’s best to speak with a financial advisor before diving in head first with this kind of investment — and remember to leave yourself with something for retirement.

Source – entrepreneur.com 

Passive Tip #3 – Use The Tax Advantages Uncle Sam Offers You

Last of all, but most important, as you are buying Houston Texas Real Estate you should keep in mind that there’s a lot that Uncle Sam can do for you especially if you have an investment that’s equity structured because will be able to keep most of your income and have cash returns which are tax deferred.

As a rental property owner, you are able to deduct nearly all the expenses you’ll pay to manage your property. Everything from the mortgage interest you pay on the loan all the way down to the paper you buy for your printer (if you are using that printer primarily for real estate investing purposes, that is).

Source – Biggerpockets.com 

Get Houston Texas Property Management

To get Houston Texas property management contact Vestpro Residential Services, LLC today by clicking here to connect with us online or calling us at (832) 498-0016.

 

Should You Accept Cash From Your Houston Texas Renter?

 

So you’re just getting started with owning your first rental property and your Houston Texas Renter wants to pay their rent in cash. This is one of the most common Houston Texas Property Management questions property owners have and for good reasons because although accepting payment in cash may seem easier than other forms of payment it’s not always the best option for the property owner especially for these reasons.

You Won’t Really Know Who You Are Renting To

Although not everyone who refuses to pay via check has something to hide, you will always know who you are renting to when you require your tenants to pay via check, money order or cashier’s check because each form of payment has an actual record associated with it and you can always go back to the institution that issued the check or money order if problems arise with tat payment.

You’re Not Safe Storing Or Carrying Cash Rent Payments 

Another reason to have a no cash policy is because you will ultimately have to take that cash to the bank, or store it in your office temporarily, and there’s always the potential risk of keeping large amounts of cash lying around until you’re able to deposit it.

Cash Isn’t The Easiest Optin For Your Houston Texas Renter 

Last of all, but most important, another reason to not accept cash from your tenants is that those payments will always have to be logged and the tenant who pays in cash will have to receive a receipt.

Accepting cash can open the door to problems for your company because the tenant can always say that they didn’t receive a receipt from you so it’s best to state your preference for checks, cashier checks or money orders in the very beginning rather than accepting cash or make it easier for your tenants to pay their rent by setting up an online payment system so they can pay rent via their smart phones or mobile devices.

Contact Vestpro Residential Services, LLC

To learn more tips on dealing with Houston Texas Renters or to get more information about the property management services we can offer you contact us today by calling (832) 498-0016 or CLICK HERE to connect with us online.

 

What Is A Surety Bond? Should You Consider This Alternative To Security Deposits?

 

By Vestpro Residential Services

As a landlord one of the most common problems that you may face is the possibility of renting to someone who may have great references, a full-time job and seem like an awesome person but, they don’t have the money you require for a deposit.

Although you may have had to walk away from potential renters like this in the past who didn’t have the money that you required for deposit, there is a solution to this problem in the form of a surety bond.

What Are Surety Bonds?

Surety bonds are the least understood alternative to the deposit, but it’s also one of the most viable, because, a surety bond is actually a contractual promise to you that if your tenant fails to comply with the terms of your lease the bond company will be ready to compensate you up to the limits of the surety bond.

How Do Surety Bonds Work?

If you’re familiar with how the justice system works at all, when somebody gets arrested their bail can sometimes be set at anywhere from $1000 or more and, the person who is detained only has to put up about $100 or higher depending on the bail amount and if they are able to make bail at all.

The only catch with bail is that if the formerly detained person decides to skip town, or skip the hearing, they will have forfeited the bond and the bail company now has the legal right to go after them.

A surety bond functions exactly the same way. The tenant who is unable to pay the deposit but decides to go with the surety bond will be responsible for paying a deposit to the bond company of up to 20% of the total sum of the deposit.

Let’s say that a tenant decides to break or violate some terms of their lease, the landlord has the legal right to file a claim against the tenant which the bond company will be responsible for paying for, and as with the example of somebody skipping bail, if the former tenant decides to skip town and not pay the percentage of the surety bond then the bond company will go after them as well.

Get Professional Property Management Here

For professional property management for your rental property contact Vestpro Residential Services today by clicking here to connect with us online or calling (832) 498-0016.

How Much Money Should You Charge For Rent?

By Vestpro Residential Services

HOUSTON – As longtime Houston Texas property managers, one of the most common questions that we’ve seen every single owner have after they’ve purchased a rental property in the Houston area, or elsewhere across the United States is: what should I rent my property for?

The answer to this question depends on who you ask but, thankfully determining the right amount to rent for your Houston Texas rental property is a lot easier than you think especially if you follow these simple steps.

#1 – What Does Your Houston Texas Rental Property Offer?

The first thing that you need to do when determining what to charge for rent is to think about all of the features and amenities that your Houston Texas rental property has to offer a typical renter.

Some of the features and amenities that your rental property might offer a typical renter could include:

  1. Your rental is located in a quiet neighborhood.
  2. It’s close to the University.
  3. Offers more storage space because it has a garage, attic or basement.
  4. It’s located near the best restaurants, bars, shops or stores.
  5. Your rental property is close to public transportation like: trains and buses.
  6. Your Houston Texas rental property is located in a walkable neighborhood, meaning that anything that a typical renter could want is within easy walking distance.

#2 – What Is The “Ballpark” Rent In Houston Right Now?

Depending on when you’re reading this article, that Houston Texas rental market could either have gone way up, or it’s gone down, depending upon economic conditions, job gains or losses and the state of the global economy.

This is why it’s important to establish a ballpark rent for the Houston Texas rental market right now that includes the average high rent, and average low rent for single-family homes, condos and townhomes in the Houston area.

Now you’re probably asking “how in the world am I going to determine the ballpark rents for an average Houston Texas rental right now?” I’m not a property manager. The answer to this question is a lot easier than you thought, to determine the average ballpark rent for a property in Houston right now just go online and visit websites like Zillow or rent jungle.

What’s great about websites like Zillow is that they offer you plenty of historical data and also accurate information regarding the rental market so you know what your property may have rented for in the past and what it should be renting for right now because the goal is to always rent your property for what it’s worth right now.

#3 – What Do Comparable Properties Have To Offer?

Last of all, but most important, think like a renter and take at least one day to visit comparable rental properties in the area and find out what those properties offer.

Do they offer the same bedrooms, bathrooms and square footage that your property offers? Do they have plenty of amenities like a hot tub, on-site fitness center, dog run or laundry area?

After taking the time to come up with a ballpark rent for Houston Texas rental properties, analyzing all the features and benefits that your rental property has to offer and visiting comparable properties in the area you should have more than enough information at your fingertips to come up with an accurate rent to charge for your Houston Texas rental property.

Get Houston Texas Property Management

To save time and money with renting your Houston Texans rental property yourself, contact the team of property management experts at Vestpro Residential Services today by clicking here to contact us online or by calling us at (832) 498-0016.

Are Low Oil Prices Affecting Multi-Family Rental Performance In Houston?

By Vestpro Residential Services, LLC

HOUSTON, Texas – Earlier this year the multi-family rental market in Houston was booming as the city remained one of the top relocation destinations in the United States and in spite of low oil prices Houston still continues to remain strong and doesn’t show any sign of slowing down.

Rent Growth Levels Are Increasing

Thanks to recent statistics from Jay Parsons of MPF Research we know that lease renewals have actually increased every month of this year instead of decrease like many people initially thought they would.

As of April 2015 lease over rent growth increased by 6.1% and that’s much higher than the 5.3% lease over rent growth that we saw back in 2011.

Renter retention has also increased for 20 months straight and hasn’t shown any sign of stopping but the big question is why are renters staying put and renewing their leases?

In a recent interview Jay Parsons had this to say about renter retention in 2015: “Renters are increasingly choosing to stay put and renew their leases in spite of rapidly rising rents and historically large levels of new supply, which logic would suggest would be driving down retention. And the fact that retention is still so strong speaks to the depth of demand for apartments and to the absence of any sort of affordability crisis in conventional, investment-grade apartments.”

Grow Your Rental Property Portfolio Now

Another great reason to grow your portfolio of rental properties now is low mortgage interest rates which have continued to remain at 4%, or lower, all year long.

Recent news from Janet Yellen and the Federal Reserve indicates that the Fed most likely will not raise interest rates this year so if you’ve been thinking about adding more properties to your portfolio there’s never been a better time than right now

Get Houston Texas Property Management

Stop managing your rental properties yourself, save time and money with effective Houston Texas Property Management by contacting Vestpro Residential Services today by clicking here, or calling us at (832) 498-0016.

Should You Rent Your Houston Rental Property to a College Student?

Houston Rental Property

By Vestpro Residential Services

As you move forward with the process of buying another Houston Texas Rental Property you will eventually have to ask yourself the question if you should rent your property to a college student or not.

Although some landlords may tell you that it’s not a good idea to rent to a college student the truth is that you can establish a consistent and profitable income stream when you choose to open your Houston Rental up to college students and not just traditional renters.

In this post we will share with you some of the benefits of renting to college students and what else you should know when you start renting to this segment of the rental market.

Benefits of Renting To College Students

Some of the benefits that come from renting to college students include:

Year-Round Occupancy – Since most college students go to school for 4 years they will also will many times want to stay in the same rental property during the time that they are going to college and this means year-round occupancy for the landlord and less turnover.

You Can Charge Premium Rent – Another great benefit of renting to college students is that you can charge premium rent especially the closer your Houston Texas Rental Property is to the university or college, and most tenants won’t have a problem paying premium rent especially if they live with roommates.

Getting Started With Renting To College Students

Before placing an ad online to rent to college students you should do the following:

  1. Create an airtight lease that protects your best interests.
  2. Create strict rules for your property including no fireworks, weapons or drugs in the house and no charcoal grills outside the house.
  3. Always do a complete background check before approving a new college student to rent from you including viewing their credit report because this will only protect your best interests.
  4. Require college students under the age of 21 to have co-signer on their lease just to make sure you will continue to get paid each month even if they don’t pay their rent.

Learn More

To learn more about renting your Houston Texas Rental Property to college students contact Vestpro Residential Services, LLC today by calling us at (832) 498-0016 or click here to connect with us online.

3 Tip for Getting Your Houston Rental Property Ready for fall

By Vestpro Residential Services, LLC

Fall is right around the corner and if you own a Houston Rental Property there’s never been a better time than right now to get your rental property in Houston ready for fall and winter by following these simple tips.

Inspect Air Flow Sources 

Since your tenants will be using their HVAC systems during the fall and winter months now is the best time for you to confirm that your HVAC system is ready for use during cooler weather.

Hire an HVAC maintenance company to have your HVAC unit professionally inspected plus serviced and during this time you should also check other sources of air flow in your home like room fans, vents, dryer vents and baseboard heaters as well.

Another important thing to have done is to have the heat turned up in your rental property to confirm that the heater is working properly plus you should also hire a service technician to check any wall heaters so you can avoid calls from your tenants if heaters are not working after we have the first cold winter days in Houston. 

Clean The Fireplace 

If your rental property has a fireplace you should have it professionally cleaned and tested to insure that your it will function properly for your tenants as well since fireplaces are one of the most common sources for accidents and house fires during the winter.

Check Insulation And Weatherstripping 

Last of all, but most important, you should check the weather and insulation in your Houston Rental Property as well because a properly insulated and sealed home will keep your rental property warm and dry during the winter plus help your tenants to save money on their electrical and gas costs.

download

Get Houston Property Management 

To get started with Houston Property Management contact Vestpro Residential Services, LLC today by clicking here to connect with us online or by calling us at (832) 498-0016.

What Are The Best Investments For You To Make In Your Single Family Houston Rental Property?

By Vestpro Residential Services, LLC

Now is one of the best times for you to remodel your single family Houston Rental Property because mortgage interest rates are still historically low and thanks to recent news it’s likely we will not see a rate increase at all this year.

The big question is what investment should you make in your Houston Rental if you want to increase the value of your property?

Should you add a deck, more closet space, improve the kitchen or have a new roof put on your home?

In this article we will break down some of the best renovations you should consider making to your Houston Rental Property.

What Is The Cost Vs. Value?

During the process of making renovations to your Houston Rental Property one of the biggest things you must ask yourself is what is the cost vs. the value of the renovations or improvements you want to make to your Houston Rental?

Thanks to a recent article by Remodeling Magazine we know that the average return on investment you can expect from major renovations to your rental property.

  • Adding a backyard deck – This improvement will bring you a return of about 80 cents on the dollar.
  • Kitchen remodel – Making a minor kitchen renovation to your home will also bring you a return of about 79 to 80 cents on the dollar.
  • Adding an attic bedroom – One of the smartest investments you can make, this investment will bring you a return of about 77 cents on the dollar as well.

What about Multi-Family Renovations

When making additions or renovations to your multi-family rental properties it’s best to consider making the following renovations:

  • Add wood flooring.
  • Upgrade the kitchen.
  • Improve the interior lighting.

Get Houston Texas Property Management

For effective Houston Texas Property Management contact Vestpro Residential Services today by calling us at (832) 971-1841 or click here to connect with us online. 

What to Look For In a Houston Property Manager

So you’re thinking about hiring a Houston Property Manager to manage your real estate

This is a smart move to make because as your portfolio grows so will all of your management responsibilities and this is why hiring a Houston Property Management company just makes sense.

Before choosing just anyone we will share with you several tips you can use for choosing the right Houston Property Manager.

What to Look For In a Houston Property Management Company:

Tip #1 – Look for a Team

When you choose a Houston Property Management company you should choose an organization that offers you a team instead of one individual because a team will be able to efficiently handle all of the duties required to efficiently manage a rental property including: customer service, maintenance and rent collection.

Tip #2 – Look for Experience

The Houston Property Manager you choose should be experienced in all forms of property management and provide you with verifiable references from satisfied owner clients and happy tenants they have managed over the years.

Tip #3 – Look for Growth

The right Houston Texas Property Management company you choose should also show signs of growth in their company by having acquired new clients over the last 24 months and they should also show signs of growth when it comes to the systems they use to manage their company.

Tip #4 – Look for Efficiency

Last of all, but most important, when you choose a Houston Property Manager you should choose a company that offers the most efficient online and offline tools possible for finding, qualifying and keeping tenants so you can continue to enjoy long term cash flow from your Houston Rental Property without having regular vacancies.

Get a Houston Property Manager Now

To get started with a Houston Property Manager contact Vestpro Residential Services today by calling us at (832) 498-0016 or click here to connect with us online.

Click here to like us on Facebook!

4 Tips for Successful Houston Texas Real Estate Investing

Are you thinking about getting started with investing in Houston Texas Real Estate?

Now is the right time to start investing in rental properties thanks to high demand for rentals and low mortgage interest rates nationwide.

Everyone from Robert Kiyosaki to Warren Buffet are advocates for Real Estate investing thanks to the steady cash flow you receive from your rental properties each month and the wide variety of other benefits which come from owning rentals like tax deductions and equity.

To get you started with Real Estate investing right here are our 4 tips for successful Houston Texas Real Estate investing.

Tip #1 – Continue Your Houston Texas Real Estate Education

This tip is vital to follow because once you stop learning about Real Estate investing you won’t continue to see the same success that you’re enjoying when you’re learning about Real Estate investing.

Establish a set daily time for studying and following what other Real Estate investors are doing so you can stay ahead of other investors and even find great deals no matter what shape the economy is in.

Tip #2 – Establish Goals For Acquiring Houston Texas Real Estate

Once you get started in Houston Texas Real Estate investing don’t get satisfied with just one property, set clear goals for yourself on how many properties you want to buy so your net worth will grow every year.

For example: one of your goals could be to save $20,000 and use that profit from your rental property to use as a down payment on one new Houston Texas Rental each year.

Tip #3 – Don’t Start Speculating

Although the market may be up, or down, NEVER speculate on where you think it’s going to go or speculate on what your short term gain will be if you purchase a new rental property in Houston Texas now.

Always use wisdom backed up by hard data when you’re investing because these are the two things which will ultimately contribute to your long term success as an investor.

Tip #4 – Make Cash Flow Your Primary Goal

When investing in a Houston Texas Rental property your primary question should be “what is the cash flow I will get from this property” because cash flow is king and also the key to your success if you’re trying to build cash flow for your retirement.

Get Houston Texas Property Management

For more information on how to get started with Houston Texas Real Estate Investing, or to get a property management quote, contact Vestpro Residential Services today by calling us at (832) 498-0016.