Thinking Of Buying Rental Property? Here Are Five Things You Should Know

Planning on investing in rental properties? If so, before investing in your first rental there are a variety of things you should consider which include the following:

First, on the tax front, not only are all your cash expenses – including broker fees and management fees – deductible for your federal taxes, so is the depreciation of your property. Calculated over 27.5 years on a straight-line basis, depreciation protects the first 3.6% of your annual return from taxes. With returns around 5 or 6 percent right now (2017), that’s a big deal. Calculation below.

Second, leverage. If you can borrow money at a lower interest rate than the return you otherwise get from the property, the return on the portion you provide is higher. Calculation below.

Third, what about rents? Do they swing like home prices? How much can you raise them? And what’s the right rent to be charging in the first place? Each property is different and so is each location, so it depends. You should go online and see what other landlords are asking for a similar property in the area. You can ask local brokers, but take their answer with a grain of salt – they’d rather get the commission at any rent rather than have you hold out for a higher one.

 You can and should raise your rent every year. Inflation eats into your real revenue if you don’t keep pace. Rents don’t swing like home prices can; they rarely go down and usually rise a bit faster than inflation. If the neighborhood around your property changes, you can see rents rise even faster – and sometimes fall. This is one of the opportunities you have and one of the risks you take.

Get Professional Property Management Here

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

Humble Texas Rental Property – Three Steps for Turning around a Problem Property

Humble Texas Rental Property

By Vestpro Residential Services

You’ve owned Humble Texas Rental Property for a while and are building a nice portfolio of rental properties but there’s a problem, one of your properties is getting harder to rent than others and has a high vacancy rate.

Although it might seem like you have a “problem property” on your hands, the reality is that you can turn around any Humble Texas Rental Property by following these simple tips.

Tip 1 – Check the Property for Needed Repairs

Does the property need repairs inside or outside?

Start with improving the curb appeal of your Humble Texas Rental Property then move to the inside of the home and focus on improving areas of your rental property like: flooring, cabinetry and lighting.

It may be that your rental property needs a good renovation and can be improved in one weekend by painting, refinishing the cabinetry and replacing old tile or vinyl flooring to update its look.

Tip 2 – Review Your Reputation Online

Another effective solution for dealing with a problem property is to check your reputation online to see exactly what tenants may be saying about you or your rental property.

Tip 3 – Deal with Your Bug Problem NOW

Have your tenants complained about a bug problem at your Humble Texas Rental Property? If so, you should deal with this bug problem today because, bugs can pose a health risk to tenants and a bug problem could also cause a tenant to move because they classify your rental as not being habitable.

Tip 4 – Improve Your Tenant Screening

Last of all, but most important, you should improve your tenant screening process including reviewing a tenants: credit history, work history, background and personal references.

A recent study by TransUnion shows us that residential evictions have reached a 5 year low point and this is thanks in large part to tenants having better control over their finances compared to years ago so there’s no reason to not have financially stable tenants for your rental property.

Get Humble Texas Rental Property Management

For more information on how to turn around your problem property, or to speak with us about or property management services for your Humble Texas Rental Property, contact Vestpro Residential Services today by calling us at (832) 498-0016.