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How often should your Houston TX rental property be inspected?

How often should your Houston TX rental property be inspected?

If you’re like most owners you’ve probably wondered how often should you have your Houston TX rental property inspected.

Should you have it inspected every three months, six months or one year? In this blog post we will answer this question and provide you with more property management tips.

How Often Do I Need a Rental Home Inspection?

So how often should you schedule a rental home inspection? It depends upon several factors:

If you have crawlspaces or a basement, you might want to invest in a rental home inspection every 2-3 years, or each time your property comes up for re-rental. You may also want to inspect this more frequently if you have older plumbing or wiring, or if your home is in an area with a lot of moisture, an extreme climate, or both.

If your home is newer and was professionally inspected when you bought it, and you don’t have major weather extremes, you can probably get away with a longer inspection cycle.

If your home has never been professionally inspected since you’ve owned it, do it now.

Another reason to have a rental home inspection is if you are planning a major renovation project anyway. Why? You don’t want to have already committed thousands of dollars to a bathroom remodel only to discover that you need to replace your furnace. Conduct a reconnaissance before you march.

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For affordable and professional Houston Texas property management contact Vestpro Residential Services by calling us at (832) 498-0016 or click here to connect with us online.

 

 

 

 

 

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Tenant Screening – Changes You Need To Know

Tenant Screening – Changes You Need To Know

There’s no doubt that tenant screening can be one of the most complicated aspects of owning rental properties because you have to follow the requirements of the Fair Housing Act and not offend anyone. 

In 2017 tenant screening has gotten a little more complicated for owners thanks to recent policy updates from the Department of Housing And Urban Development.

HUD rolled out a 10-page policy update last year advising all landlords and property managers that using criminal history for the purpose of tenant screening may actually be discriminatory. HUD notes that nearly one-third of the U.S. population (or 100 million U.S. adults) have a criminal record of some sort, and the misuse of background checks during the tenant screening process can hinder their ability to find safe, secure, and affordable housing—a key aspect of rehabilitation. Sometimes, even those who have been arrested but not convicted have difficulty securing housing based upon their prior arrest.

Black and Latino Americans are disproportionately affected, the memo notes, as they are incarcerated at rates disproportionate to their share of the general population. Black and Latino individuals comprise an estimated 58% of the U.S. prison population, despite accounting for only 25% of the total U.S. population.

Consequently, the memo states:

Criminal records-based barriers to housing are likely to have a disproportionate impact on minority home seekers. While having a criminal record is not a protected characteristic under the Fair Housing Act, criminal history-based restrictions on housing opportunities violate the Act if, without justification, their burden falls more often on renters or other housing market participants of one race or national origin over another (i.e., discriminatory effects liability). Additionally, intentional discrimination in violation of the Act occurs if a housing provider treats individuals with comparable criminal history differently because of their race, national origin, or other protected characteristic (i.e., disparate treatment liability).

This does not mean that criminal history cannot be considered at all during the tenant screening process. Instead, HUD is basically telling landlords and property managers:

You cannot institute a blanket ban on all applicants with a criminal history.

You cannot reject a tenant based upon an arrest that did not result in conviction.

You must treat comparable criminal histories similarly without consideration of race, national origin, or other protected classes.

Because Black and Latino Americans are incarcerated at higher rates than their peers, any blanket policy for tenant screening that bans applicants with a criminal history would inadvertently discriminate against minorities. HUD cites a Supreme Court decision in reminding us that simply being arrested often has little probative value in showing that someone has actually engaged in misconduct—which is why arrests without convictions should not be used as the basis for denying a tenant.

Convictions are treated differently. Landlords and property managers may reject an applicant whose background check reveals that he/she has been convicted of a crime. There’s one big caveat: The landlord or property manager must show that excluding a person with a conviction achieves a “substantial, legitimate, nondiscriminatory purpose.” To put it simply, you have to distinguish between criminal activity that creates a demonstrable risk to resident safety and/or property, and criminal conduct that does not.

Given the new HUD guidelines, landlords and property managers should consider the following questions when reviewing a person’s criminal history:

Was the applicant convicted of a crime, or were they just arrested?

What was the severity of the crime?

How long ago was the crime committed?

Has the person reoffended since their original conviction?

Was it a drug-related crime? (HUD allows a blanket ban on those who have been convicted of illegal drug manufacturing or distribution.)

New Guidelines for Tenant Screening

HUD’s new policy memo has the downside of making the tenant screening process more complicated than it already is. It muddies the waters in terms of how landlords and property managers evaluate criminal history, as there is no guidance on which crimes should generally considered acceptable and which are not. Landlords and property managers are asked to use their discretion, with the memo acknowledging the need to look at circumstances on a case-by-case basis.

Here are a few tips to help you to comply with the new guidelines:

Screen tenants based on their financial and other qualifications first. Only conduct a background check if a person appears to be otherwise qualified. This will protect you from denying a tenant based upon another qualification, and having the tenant argue that they were denied based upon their criminal background.

If a background check reveals a criminal history, evaluate the nature of the crime (see questions above). If you plan to deny a person based upon this information, put a note in your internal file explaining why you felt a denial was appropriate (e.g. how this protects you, other tenants, and the property). Sign and date the note. This will protect you if the applicant ever alleges discrimination.

Review all existing rental policies and applicant screening procedures. Some landlords or companies may be facing a complete overhaul given the new HUD guidelines. Be sure that all members of your team clearly understand the new policies so they can be implemented uniformly by all.

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For affordable and professional property management contact Vestpro Residential today by calling us at (832) 971-1841 or click here to connect with us online.

 

 

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Posted by on February 23, 2017 in Tenant Screening

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Are turnkey rental properties a smart investment for you to make?

Are turnkey rental properties a smart investment for you to make?

On television, turnkey rental properties are highly touted because, many people like the idea of purchasing a rental property without having to do any work to get it ready for rent but the BIG question is are these rental properties a smart investment to make? 

About Turnkey Rental Properties

When we use the term “turnkey rental properties,” we are referring to the loosely defined investment strategy of buying, rehabbing, and managing a property through a third party. The process of working with a turnkey real estate provider typically looks something like this:

  1. Finding a property: Based on your personal investment goals, the company will help you to identify and build a portfolio of properties. Most claim to have a pre-vetted database of turnkey investment properties for you to consider. Some also have proprietary software to evaluate which properties are likely to produce the greatest returns.
  2. Funding the investment: Unlike experienced investors, most turnkey buyers are unfamiliar with the various ways to finance rental properties (e.g. various loan products, 401K, 1031 exchange). The turnkey provider will help you to evaluate a range of financing alternatives depending on your individual circumstances and goals.
  3. Acquiring the property: Once you’ve identified the property you’d like to purchase, the turnkey provider will assist you with all of the paperwork, home inspections, appraisals, loan documents, and more. They provide end-to-end service, much like a real estate agent would, but they specialize in working with long-distance buyers who want to take a hands-off approach.
  4. Renovating the property: Depending on the situation, some turnkey rental properties will be in need of major renovations, while others may simply need minor repairs to bring the property up to code. The turnkey provider will manage all renovations and maintenance for you.
  5. Managing the property: The primary reason that people buy turnkey rental properties is because someone else pledges to manage the property on a day-to-day basis. This includes finding tenants as well as responding to any tenant needs (e.g. fixing a leaky sink). It ostensibly creates a stress-free investment opportunity—all that’s left for the buyer to do is deposit those rent checks!

Generally speaking, most turnkey firms will charge around a 3% fee for property acquisition, and then anywhere from 7 to 10% for ongoing management of turnkey rental properties.

That said, it’s important to know that there are hundreds of turnkey firms across the U.S., and no two are exactly alike. Some will buy, rehab, rent, and THEN sell a property to you (the investor). Others specialize in helping you to find cheap properties (for as little as $20,000!) that need major renovations—and the turnkey company will take on all of those renovations for you. The range of services can vary greatly, so be sure to thoroughly research several turnkey providers before you commit to anything.

The Growing Popularity of Turnkey Rental Properties

Turnkey rental properties have proven a great fit for people like Yang Guo, a 30-year-old data scientist who lives and works for a tech company in San Francisco. Even though he earns a good salary, he’s been priced out of the Bay Area. Nonetheless, Guo still wanted to add real estate to his investment portfolio.

Guo ultimately purchased two properties: A small home in the suburbs of Birmingham, AL and another outside of Columbia, SC. He worked with HomeUnion, a turnkey real estate provider based in Irvine, CA. HomeUnion helped Guo to purchase the two properties for a total of $60,000—quite the bargain in comparison with the Bay Area, where the median home price is over $675,000. HomeUnion, a 3-year-old startup, handled all of the necessary renovations, and they now manage the property for Guo. He’s never actually seen the properties or met the tenants—but he collects a rent check each month from 2000 miles away.

“There’s too much risk with buying property in the Bay Area,” Guo says. “As long as the cash flow is coming and hitting my bank account, I basically don’t care about seeing them in person.”

Novice real estate investors like Guo are attracted to turnkey rental properties because they’re lower-cost and less time-intensive to manage. The average turnkey investment property sells for between $50,000 and $150,000. Most are located in markets that were hit hard by the housing crisis. For example, Florida, North Carolina, Tennessee, Georgia, and Ohio have experienced an explosion of turnkey rental properties. In Florida, for instance, an estimated 12% of landlords are from out-of-state. Turnkey investors tend to come from high-priced markets and want to buy in states with low home prices and relatively strong rents.

However, long-distance real estate investors tend to lack local market knowledge. “You see these people coming from California and what I like to call ‘yuppie-ing up a place,’ but they don’t realize it’s not in the best area because they didn’t do their homework,” says Tony Kazanas, a Cleveland area real estate agent. There are all sorts of miscellaneous things that novice real estate investors don’t consider, like local vacancy rates or the need to obtain hurricane or other specialty insurance. Turnkey companies fill these important gaps by providing local market expertise.

The Dangers of Turnkey Rental Properties

Based on our overview so far, turnkey real estate investment might seem like a no-brainer! Not so fast: Turnkey providers often target uneducated buyers and sell the promise of a stress-free, cash flow-generating investment opportunity. Unfortunately, too many buyers forget to do their due diligence. They fall for a compelling pitch and slick marketing materials, only to regret the investment down the road.

See, there has been an explosion of turnkey providers since the downturn of the housing market. Many of these companies are run by young adults in their early 20s who have little experience in real estate. They bank on the fact that most out-of-state buyers won’t come to see the properties they’re selling in person, which often haven’t been upgraded to turnkey standards. Some are pitching portfolios of turnkey rental properties that look like they’re straight out of the foreclosure process, where upgrades haven’t even begun. This isn’t a red flag for someone who intends to spend money on renovating the homes; but many turnkey investment providers sell people on the fact that the homes have already been renovated when that isn’t actually the case.

As it turns out, many of these turnkey providers are expert internet marketers, not expert real estate professionals. Many are less than capable of managing the properties that they’re selling to you.

Here are some key warning signs that a turnkey real estate company may not be as legitimate as they seem on the surface:

  • Inexperienced operators: Find out how long the company has been in business, where they’ve invested in real estate, and how many buyers they’ve worked with. Don’t be shy about calling references. If you’re going to be getting into business with someone, you have the right to do your due diligence before signing on the dotted line.

  • Lack of direct investments: Has the company invested in its own portfolio of turnkey rental properties? If so, what types of returns are they getting? It’s a major red flag if the company doesn’t own and manage its own properties—how else will they know how to look after yours?

  • Weak support structure: Is the person who’s selling you on the investment the same person responsible for property acquisition, renovation, tenanting, and maintenance? If so, that’s an indication that there’s a weak support structure in place. Legitimate turnkey firms typically have a deep bench with professionals of varying expertise. If someone promises you that they can do it all alone, how much individual attention will your properties really be getting?

  • Shoddy renovations: Before going into business with a turnkey company, take the time to tour a few of the other properties that they manage. What condition is the property in, and have the renovations been done properly? If the company claims that thorough renovations have already been completed on the property you’re considering, an inspection is worth every penny. Otherwise, you could get stuck with costly repairs down the road.

  • Rental guarantees: Experienced real estate investors know that there is no such thing as a “rental guarantee.” A property may be more or less likely to rent quickly, but there’s no guarantee that it will be rented at the price the turnkey operator has stated. Spend some time doing your own market research to understand what rent prices are like in the area where you’re looking to purchase.

  • Overpriced properties: Similarly, spend some time researching the local market. Turnkey providers are notorious for selling overpriced homes to out-of-state investors who are used to expensive real estate markets. A home that sells for $200,000 might seem like a bargain compared to where you live—but if local comps are selling for half that, then there’s a good chance you’re being duped.

Get Property Management Help Here

For affordable and professional property management contact Vestpro Residential Services today by calling us at (832) 971-1841 or CLICK HERE to connect with us online.

 

 

Posted by on February 8, 2017 in Property Management Tips

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5 Tips for Filling Vacancies at Your Houston Texas Rental Property

5 Tips for Filling Vacancies at Your Houston Texas Rental Property

By VestPro Residential Services

HOUSTON, TX. – Do you own a Houston Texas Rental Property that’s not attracting the attention of renters and you can’t figure out why? Although this is frustrating when it happens the reality is that there could be one or more reasons why renters are showing a lack of interest in your rental property and the following steps will help you to get to the bottom of the problem and fix it.

Step #1 – Check Your Rent

Although every landlord wants to rent their Houston Texas Rental Property for the most money possible the reality is that some people may be listing their rentals for more than they should.

To figure out what you should be renting your property for you should do a comparable analysis of similar rentals in your area to determine if you should consider lowering your rent a little in order to attract more tenants.

Step #2 – Improve Your Rental Ads

Let’s face it, advertising is the lifeblood of our business because it’s what helps renters find our Houston Texas Rental Properties.

Sadly, many landlords are running poor advertisements that are turning away potential renters rather than attracting them.

Before running another rental ad you should first take better pictures and video of your rental property then take a look at your ad copy, rewrite the headline, and revise the body copy so that your advertisement talks about all of the benefits, features, and amenities that your rental offers prospective tenants.

Houston Texas Rental Property

Step #3 – Bring Your Houston Texas Rental Property Up To Date

If the last time you updated your Houston Texas Rental Property was before the start of the millennium, you should start making some updates now because new flooring, window coverings, appliances and fixtures in a rental property can go the extra mile with making a rental feel fresh, new, and updated.

Step #4 – Think About Allowing Pets

In 2017 there are more renters out there than ever before who are searching for rental properties that will allow pets. If you don’t allow pets at your Houston Texas Rental Property you should consider changing your pet policy because you will open up your rental to a larger pool of prospective tenants, just make sure to update your lease agreement before renting to someone with a pet.

Step #5 – Ask Your Current Tenants for Referrals

Last of all, but most important, if you have tenants living in your other rental properties you should consider asking them for referrals because the chances are that they might know someone who is looking for a rental and this will save you the time/money and hassle of having to advertise your Houston Rental Property.

Get Houston Texas Property Management

For affordable and reliable property management for your Houston Texas Rental Property contact VestPro Residential Services by calling us at (832) 971-1841 or click here to connect with us online.

 

Posted by on January 27, 2017 in Property Management Tips

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Should you buy rentals in Houston? Even if you’re out of the area?

Should you buy rentals in Houston? Even if you’re out of the area?

Thanks to the booming real estate market in the last 12 months there are more condos, town homes and apartment buildings available for purchase and rent than ever before but the big question is should you buy rentals in Houston even if you’re out of the area? The answer to this question is yes!

Pros of Buying Long-Distance Real Estate

  • The ability to buy in more affordable markets. Property values in second- and third-tier markets don’t command the premium of real estate in primary markets and there’s lower competition. That said, depending on the market, rents can still be very strong. Buying in one of these markets is a way to get your foot in the door, realize positive cash flow and build equity.

  • Real estate as a long-term strategy. Some investors decide to buy real estate in an area that they don’t currently live in, but think they might want to someday. For instance, I’d consider buying a home closer to my parents if there’s a chance I’ll want to live closer to them someday. Many investors use a similar mindset when considering real estate in vacation and retirement markets, like the Carolinas and Florida. These houses can be rented now and held in case an investor wants to live there someday, too.

  • Tax benefits. Say what you want about Trump, but when the New York Times released a copy of his 1995 tax returns it shed light on a stark reality: real estate investors are able to use the tax code to their advantage. The ability to write off interest paid on a mortgage and depreciation makes buying investment property highly attractive. The provision Trump took advantage of is no different than the loopholes that everyday investors use, too.

Get Houston Texas Property Management Here!

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

 

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Posted by on November 23, 2016 in Property Management Tips

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Houston Rental Property – Maintenance Checklist

Houston Rental Property – Maintenance Checklist

Fall is a great time of year because the holidays are around the corner and you may be enjoying more time with family but if you own Houston Rental Property it’s also a great time to take a step back and focus on maintenance, especially if you haven’t set foot in your rental properties within 6 months because focusing on maintenance now will help you to avoid problems later.

Maintenance Checklist

  • Paint common areas every five to seven years. Or, DiNatale says, “When they start to look worn and paint starts to chip or wear off, or has an uneven sheen, it’s time.”

  • Re-carpet hallways and other shared spaces every five years. This is about the time carpet will start to unravel and become a tripping hazard.

  • Replace lobby flooring, whether wood, stone, tile, or vinyl every 15 to 30 years. If maintained properly, stone, tile, and wood, can last as long as 30 years. Vinyl’s lifetime is shorter, usually around 15 years. But if a wood floor is cleaned weekly, it can last, then be rescreened or polyurethaned every two to three years. Stone can be buffed every two to three years to remain looking good. And remember to put down mats when it’s snowy or rainy, and have a front awning to protect residents’ and their shoes and boots.

  • Change light fixtures (not just bulbs) every 10 years or so. Quality fixtures can last for years, but many older ones aren’t compatible with new LED bulbs. Most buildings don’t tend to change the fixtures, however, until it’s time to repaint.

  • Clean and replace/upholster furnishings when they show wear.Good quality furnishings will last, but they should be kept clean on a regular basis.

  • Repaint or clean the exterior annually. Yearly inspections are important and have to be done in some cities and states. It’s wise to plan to repaint certain parts of the building every two to three years, tuckpoint every five years or so, and clean limestone, which can get very dirty every 10 to 15 years, depending on pollution and climate (salt air can be tough on materials).

  • Clean windows four times a year. At a minimum, twice a year, once in the spring and in the fall.Inspect terraces and balconies annually. Railings and balcony floors should be inspected to ensure they can support a set weight.

  • Clean and inspect downspouts, gutters, and other water-related features twice a year. Once in the fall when leaves are falling and again in the spring after trees flower to avoid debris getting clogged and causing backups.

  • Service and repair furnaces, air conditioning systems, and plumbing annually. In the Spring, check the AC and change fluids or filters, and in the Fall inspect the furnace and change filters.

  • Inspect and service elevators and sprinkler systems every year.Elevators and sprinkler systems should be inspected annually, usually by the fire department, but it may depend on your city code.

  • Landscape seasonally. Curb appeal is everything: invest in your outdoor plants every season to keep your building looking it’s best.

  • Upgrade gym equipment, computers, and laundry machines every few years. This will help keep your building efficient and your residents safe.

  • Replace roofs every 20 to 30 years. Good roofs will last decades, but should be inspected regularly, especially after bad weather.

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

 

Posted by on November 9, 2016 in Maintenance

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Tips for getting ready for leasing season

Tips for getting ready for leasing season

Do you own rental property in the Houston area? If so, you know that January is typically one of the busiest times of year for property owners and landlords because this month is when we typically have the most lease renewals and there will also be more calls from people searching for rentals in the area.

If you’re getting ready for a busy leasing season here are some tips you can use to approach this busy time of year correctly:

Tips For Leasing Season

#1. Pricing Your Unit

Proper pricing is critical to balancing your vacancy rates and your return on investment; this is how you make your money after all. If your units are priced too low, you may have an issue staying in the black. Priced too high, and you might find more than a few of your units are empty at any one time.

Many Property Managers still call in for rental comparisons within their area to find an accurate price, but there are many tools online that can do this for you (and give you more accurate data). By pairing your rental units against comparable units and their pricing in the area, these tools will tell you if you should raise or lower your rent relative to the properties in your area. 

#2. Effective Marketing Budgets

Most PMs are not marketing professionals, but knowing where and when to advertise your vacancies can set you well ahead of your market competition and help you fill vacancies faster. In an informal survey, we learned that about 50% of property managers spend $200 or less on their marketing budgets per property per month. Many of these PMs don’t even know where their money is going; it feels like they are throwing darts against a wall, hoping that something will stick. When considering how much you want to spend on marketing your properties, be intentional about where you spend your money and track whether or not those dollars are getting you renters. If they are not, it may be time for a new marketing approach.

#3. Listing Details Matter

Every property manager has at some point made the mistake of posting a vacancy before that listing is ready—you have one or two pictures that you took a few years ago, and you just don’t have time to make a listing with a full list of amenities. As the world becomes more and more mobile, prospects do almost all of their home shopping online. If you don’t have the most attractive listing, your vacancy simply won’t make the cut.

Take the time to create video walkthroughs for all of your units. These are becoming standard practice across online listings, and it won’t be long before posts without video are treated like posts without photos. On that note, take multiple photos of each room from all different angles, online listings can never have too many photos. Ensure that your listing’s written description is thorough and accurate. Taking even these small steps will show a significant decrease in turnover time, maximizing your revenue.

#4. Review Your Online Application

If you don’t currently offer the ability to apply for your vacancies using an online application, you have a little bit of catching up to do—about 70% of all applications filed in the U.S. are electronic. Most renters expect the ability to apply online and prefer not to drive all the way to your property to file a piece of paper.

If you are using online applications, congrats! If you have properties in multiple locations, make sure that you are customizing each application by location. Depending on location, you may want to change the fee for your applications. In some areas of the country this fee is the responsibility of the applicant, and in others the PM needs to eat that cost as part of the rental process. The application guidelines for your prospects may vary by location as well.

#5. Update Your Screening Boxscores

When you’re screening a prospective new tenant, it’s important to look at them objectively not subjectively. In order to comply with Fair Housing laws, it is best to create a series of objective criteria that define a new applicant as acceptable or not. These criteria can include credit score or previous rent payment history but cannot include protected statuses like race, gender, marital or familial status, sexual orientation, or religion.

The turnaround on applicant screening is faster than ever before, and results come with much more detail than they did previously. Instead of a simple credit score, reports now come with all sorts of payment histories including car or student loan payment delinquencies. By creating a box score based on these objective criteria, you protect yourself from potentially bad renters as well as lawsuits. Record of objectivity will show that you do not discriminate in violation of Fair Housing laws.

#6. Check Your Leasing and Addenda

Every year, state and federal regulations for housing change and these can have a dramatic impact on how you run your business. These can include new Fair Housing criteria, but can also have an immediate impact on your leases and addenda. For examples, the beginning of 2016 saw many new requirements for pesticide use or mold prevention, and these changes need to be reflected in your leases. Failure to comply with these new changes can result in a possible lawsuit, so it is important to stay up to date on your state’s current requirements. There are many resources available online, check with your state’s online resources for more info.

#7. Upgrade Your Technology

Gone are the days of paper applications, faxing, and running from property to property to fix something in person. Mobile devices have all of the tools that we need to work from anywhere, and this saves you money! If your maintenance staff have mobile devices to track and handle requests, this saves you the gas they would have spent driving to and from the office to pick up paper requests. Some PM softwares have the ability to track the status of maintenance requests, granting greater visibility to you and your renters.

Mobile devices also give your leasing agents the ability to run their entire operation while hosting walkthroughs and engaging with prospects 1-on-1. Imagine being able to show a prospect properties, screen their application, and process their lease while standing right next to them. This is becoming a more popular trend as people do all of their initial research online, and taking a mobile approach to your business will save you time in the office and on the road, and will shorten those turnover times significantly.

Get Houston Property Management Here!

Tired of leasing your properties yourself? Contact Goldenwest Management today by calling us at (832) 971-1841 or click here to connect with us online.

 

Posted by on October 24, 2016 in Leasing

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Should You Accept A Partial Rent Payment At Your Houston Rental Property?

Should You Accept A Partial Rent Payment At Your Houston Rental Property?

HOUSTON, TX. – If you’ve owned Houston Rental Property for any length of time you know that things change in the rental market for a variety of reasons.

Your tenants may become unemployed temporarily, roommates may move out, and you may be asked at least once if you will accept a partial rent payment but the BIG question is should you accept a partial rent payment?

Get Everything in Writing

As with any business arrangement when it comes to a partial rent payment you should get everything in writing including the amount of the first partial rent payment and when you expect the remaining balance to be due.

Your written agreement with your tenant should also include late fees that they are expected to pay as well just so they will understand that they are expected to have their rent caught up by a specified date instead of constantly rolling over the money that they are behind on their rent by each month.

partial rent payments

If You Don’t Want To Accept Partial Rent Payments

If you’re not open to accepting a partial rent payment from your tenants you should make sure that your lease clearly states that partial rent payments are not accepted just so you can fall back on your lease and follow through with some of the typical penalties for tenants who are late paying their rent including late fees, daily late fees and eviction.

Partial rent payment situations hardly ever work out in the favor of the owner because once the tenant and the owner agree to a partial rent payment arrangement, the tenant may expect the ability to make partial rent payments in the future.

Worse yet, if the property owner or landlord chooses to evict the tenant they may be required by the courts to wait until the same time in the following month after the partial rent payment was collected because some courts will not start the eviction process in the same month that the partial rent payment was collected.

Get Property Management for Your Houston Rental Property

For effective property management at your Houston Rental Property contact Vestpro Residential Services today by calling us at (831) 971-1841 or click here to connect with us through our website.

 

Posted by on October 3, 2016 in payments

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Houston Texas Rental Property – Make Sure Your Stay On Top Of These Trends

Houston Texas Rental Property – Make Sure Your Stay On Top Of These Trends

HOUSTON, TX – Are you staying on top of the latest property management trends at your Houston Texas Rental Property? In this article, we will break down some of the latest trends that you should be on the lookout for the next time one of your properties comes up for rent.

Seniors Are Renting In Retirement

Did you know that more seniors are renting than ever before? That’s right, in 2016-2017 it’s not uncommon to find individuals over the age of 65 who are renting compared to 10 years ago when these same people were homeowners.

What’s also different about today’s senior citizens is that most seniors today want to stay active and prefer to live in areas where they can have easy access to transportation, cultural events, volunteer opportunities, community classes and trails for them to walk, hike or ride their bikes.

Multiple Generations in the Same Home

Another BIG change with today’s renters is that multiple generations are now living in the same home, and this includes seniors living with their adult children and grandchildren, so if you own a Houston Texas Rental Property that has dual living areas, this will be a major advantage since it will offer multiple generations living together the space they desire.

Houston Texas Rental Property

Houston Texas Rental Property

More Renters Work from Home

10 years ago the work from home trend was only just beginning and it wasn’t uncommon then to know someone who chose to work out of their home. In 2016-2017 times have changed and thanks to a recent study by Global Workplace Analytics we know that at least 25% of the U.S. population works from home.

How can you capitalize on this trend? If your Houston Texas Rental Property has a private office, ample storage space, or is wired for high-speed internet, you shouldn’t hesitate to promote these benefits when marketing your home online the next time it comes up for rent.

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

 

Posted by on September 6, 2016 in Property Management Tips

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How To Get Started With Entry Level Rental Property Investing — Even if You’re Renting

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There’s no denying that now is a great time for anyone to invest in Houston Texas Real Estate but how do you get started with Real Estate investing even when you’re renting?

Most people will tell you that you have to be a homeowner to get started with Real Estate investing but the good news is that getting started is a lot easier than you think.

You can get a mortgage through the FHA with a super low down payment if you live in the home. So, how do you live in it and rent it out too? No, not a roommate. You can purchase a duplex home and rent out one side while you live in the other. Because it is your principle residence, you can get FHA lending. You not only now own your home, you’re an investor too! The FHA will even let you count the future rental income to help you to qualify for the loan!

I’m not blowing smoke, and I’ll use a real life example duplex for sale in Houston, Texas, as well as rental rates, all as currently listed at Zillow.com. Here are the home particulars:

• Listed selling price is $255,000.
• Each side of the duplex is approximately 1996 square feet in size.
• Built in 2007.
• Rents of apartments and one side of duplexes in the local area justify a conservative rent income of $1,100 to 1,200/month.
• Zillow’s mortgage estimator shows the payment will be approx. $1,497/month.

Let’s become the world’s worst negotiator and pay full price for this home. However, we’re going to take advantage of the FHA and our credit score is good, so we’re going to be able to get a 3.5% down payment. With closing costs, we’ll bring about $9,350 to the closing table. Let’s run the numbers:

• You’ll be paying approximately $1,687/month with taxes and insurance included.
• You can reasonably expect to rent out the home for $1,150/month.
• Your gross out-of-pocket to live there is now $537/month.

Source – Huffington post

Get Houston Texas Property Management

Once you get started with buying your first rental properties make sure you save the time, money and hassle of managing those rental properties yourself with our Houston Texas Property Management services.

Call Vestpro Residential Services at (832) 498-0016 or CLICK HERE to connect with us online. 

 

 

Posted by on May 9, 2016 in Real Estate Investing Tips

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