Tag: rental property

DIY Upgrades That Make Your Property Feel Like a Luxury Rental

DIY Upgrades That Make Your Property Feel Like a Luxury Rental

Rental Management One

Renovations can be expensive, especially when you want to turn your property into a luxury rental to attract higher-paying tenants. While materials and furniture can be expensive, the prices really start to climb when you bring a professional into the mix. Luckily for your budget, that isn’t always necessary.

Instead, try these DIY upgrades, all of which will make your property feel like a truly luxurious rental.

Update the Kitchen Cabinets

The kitchen isn’t just a place to cook and eat; it’s often the space where tenants spend time with friends and family. A simple way to turn the kitchen in the most lavish space in the home is to update the kitchen cabinets. This gives the space an instant facelift at a fraction of the cost of re-doing the entire space.

The lowest-cost update is to paint the cabinets a fresh new color. If you have a little more budget, consider refacing the current cabinets or replacing them altogether. Finally, take it one step further and replace the hardware on your cabinets for another visually impactful, yet simple DIY project.

Source: Freshome.com

Update the Fireplace

The fireplace is a coveted feature, but one that’s not in top condition can be an eyesore and detract from your property’s value. Not to mention, it’s a centerpiece of the home, which means the smallest changes can make a big difference. A few ways to upgrade the fireplace include:

1. Replace the doors with tinted glass: Tinted glass looks classy, and keeps the mess covered: “Your fireplace is the ugliest place in your home. It’s covered with soot, ashes, and is a grayish blackish mess. Glass doors with tinted glass do a great job of hiding the unsightly mess. It’s like closets. No matter how well organized they are, most people still like a door to keep them out of sight,” says Sam Wilhoit, of Brick-Anew.

2. Paint the brick: Bring your fireplace to life with a fresh coat of paint. Consider re-staining or painting the mantle as well to create an entirely new look that elevates the entire room.

Update the Backsplash

An easy and economical DIY project is updating the backsplash in the kitchen. Fresh tile has a significant visual impact without being expensive. “This is another tenant appreciated upgrade that can be very economical if you get tiles on sale and install yourself. Even if the tiles are not on sale, you’re usually only covering an area that is 2 feet by 10 feet = 20 square feet of area = 20 tiles,” shares Nathan Richard with Revnyou.com.

If you want to skip the sometimes-tricky installation, go with peel and stick subway tiles instead. These are both inexpensive and easy to use, giving the kitchen a luxurious look without the high price tag or extensive sweat equity.

Update the Garage Door

One of the easiest and most cost effective ways to boost curb appeal and the value of your property is to replace the garage doors. Having worn out or out of date garage doors can make a poor first impression, losing potential tenants before they even step inside.

The best part: garage doors can easily be replaced, and you can also upgrade or replace the hardware on the doors to make an impact without the extra work of a full replacement.

Upgrade Lighting

Lighting has an immediate impact on the feel of a home, making it feel dark and closed off or well-lit, open, and inviting. “One of the worst things about rental units has got to be the outdated light fixtures. Luckily, this is also one of the easiest switches. Simply swap out that light fixture for something more your style. Just be sure to reattach the original fixture before moving out,” says Keri Sanders with HGTV.com.

Updating lighting fixtures can be as inexpensive as your budget needs, with a wide variety of options at varying price points. Consider some of the most popular modern styles, including unique chandeliers and wood and metal materials.

Finally: Clean the Property

Never underestimate the impact of a clean rental, especially if you want it to have that luxurious feel—it’s hard to sell relaxation when the space is filthy: “Nothing will turn off a potential renter more than a dirty place,” says Patricia-Anne Tom with Realtor.com.

It can seem almost too simple, but a good cleaning is a great opportunity to make the rental shine—literally—to prospective tenants. Deep clean the rental twice yearly, if possible, and hire a professional if possible. Don’t forget the often overlooked areas like baseboards, window treatments, ceiling fans and appliances.

A small budget can go a long way to turning a mediocre rental into one that looks could be in a luxury home magazine. Use these ideas to take your space up a notch and attract renters who are ready to spend more.

Find out which rental property kitchen and bath trends are making a statement in 2017.

Original article: https://www.propertyware.com/blog/diy-rental-upgrades/?utm_source=twitter&utm_medium=social&utm_campaign=diy-rental-upgrades&utm_term=20170822-tpw&hootPostID=8f976df8d8034c60cbe1a343bfe91da9
10 Great Reasons to Have A Property Manager

10 Great Reasons to Have A Property Manager

Rental Management One

When you hire a professional property management company, you save time, money, and lots of hassles. They can handle all aspects of your properties daily operations, legal aspects, and transactions, ensuring efficient management. There are many things you should know about such a service.

1. They screen the tenants
Every property owner wants to ensure that they have the best-possible tenants who pay their rent on time. Timely rent is the key to generating regular income. You want to find the kind of tenants who are careful about how they use the place and not cause any damages. Thus, you will not have a tenant who doesn’t pay on time or causes damage to your property.

2. They manage all the repairs & maintenance

Another good thing about a good property management company is that they manage all the repairs and maintenance for your property. Whether it’s the plumbing, electrical systems, equipments or building, the manager will arrange for the job work. They will also monitor the work to ensure quality compliance.

3. They Fill Up Vacancies & Ensure Optimal Retention

This is something that you cannot do on your own like a professional. No one wants properties to remain vacant. You will not have to spend all your time marketing your property. An experienced manager will shorten vacancy time by getting the right tenants. Besides, they will also work to ensure longer average retention.

4. They Deal with Legal Issues

An experienced property management service can handle one of the biggest challenges as an owner – legal issues. They know about the latest tenancy laws and can take the right action to prevent or alleviate legal tussles.

5. They handle all Documentation

Property management is not just about handling the day to day operations, it also involves a lot of essential paperwork. When you hire a professional service, you will not have to spend all your time dealing with potential-tenants’ credit reports, drawing the lease agreements, doing background checks, and dealing with the billing, and notices.

6. They already have Lists of Contractors

When you hire a property management service, they already have lists of contractors in the area. Whether it is fixing the plumbing, cleaning, or removing the snow, they will already know the right people to call for the job. They can also help you save more by getting special rates due to their well-established relationships.

A property manager will ensure that everything keeps running smoothly and efficiently. They will negotiate and secure contracts for clean-up, landscaping, trash removal, mowing, and other services.

7. They Deal with the Tenants

Your property manager acts as the contact with the tenants. A property manager will address all problems at all hours so that you will not have to drive over to the place. This means a lot of convenience and a hassle-free owner experience.

8. They Ensure Timely Payments

Another good thing about hiring the services of property management companies is that they take care of rental collection and bill payments. They will also enforce the lease policies if your tenants fail consistently to pay rents.

9. Get Tax Deduction

Property owners can also claim a tax deduction for the professional services of a property management company. Thus, hiring a property management service can help save money in several ways.

10. They Keep Everything Well Organized

One of the best things about hiring a property management service is that they keep everything organized for the owners. It can be almost impossible for you to keep track of all the details on your own.

Call Rental Management One for your free property evaluation and management quote today!

Recent Analysis Shows Many Big-City Renters that Earn Enough to Buy, Prefer Convenience of Renting

Recent Analysis Shows Many Big-City Renters that Earn Enough to Buy, Prefer Convenience of Renting

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SEATTLE, WA – Across the country’s largest rental markets, almost 14 percent of on-market renters have strong credit scores, relatively high incomes and could afford to buy the median home in their market.

As the homeownership rate has declined over the past decade, a broader socio-economic swath of Americans are renting than at any time in recent history. That means people who could afford to buy are renting instead, increasing competition for limited available homes for rent, according to an analysis of financial qualifications reported via the Zillow Renter Profile feature.

San Jose, San Diego, and San Francisco have the largest segments of on-market renters who have the credit score and income necessary to purchase a home, making those metros highly competitive for renters. Los Angeles, New York and Seattle also made the list of metros with large segments of current renters who are financially qualified to buy a home.

To determine which markets have the highest number of financially stable and thus most competitive renters vying for the attention of landlords and property managers, Zillow examined the self-reported credit scores and incomes of renters who were on the market during the first half of 2016. Zillow also looked at regional median rental and home values and competition to determine the markets with the highest share of renters who reported a monthly income equal to or greater than necessary to afford the typical rental and median home in the metro area.

There are also long-term demographic trends impacting renter qualifications and competition: young adults, both the affluent and otherwise, are renting longer than ever before as they delay many of the hallmarks of adulthood that typically lead to homeownership, such as finishing their education and starting families.

In general, markets with lower homeownership rates have higher proportions of on-market renters with both strong credit and high incomes. That said, even when controlling for the homeownership rate, booming markets closely associated with the tech industry – such as San Jose and San Francisco – tend to have exceptionally high proportions of highly qualified, on-market renters.

At the other extreme, markets that tend to have higher homeownership rates, such as Houston, and metros that were particularly hard hit during the housing bust and foreclosure crisis, including Cleveland and Detroit, have lower shares of renters who report both strong credit and high incomes.

“When faced with hurdles of high prices and low inventory, first-time homebuyers are renting longer than ever before even if they are qualified to buy,” said Zillow Chief Economist Dr. Svenja Gudell. “San Jose, San Diego and Seattle are among the most competitive places for buyers, and the going isn’t any easier for renters – as they are competing against throngs of financially sound applicants with strong credit and high incomes. This is a conundrum for many young people who move to those cities because of their strong job markets, only to find tight inventory and steep competition standing between them and their dream home.”

Courtesy of: http://www.multifamilybiz.com/News/7107/Recent_Analysis_Shows_Many_BigCity_Renters_that_Ea…

Why Invest in Rental Property?

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Michigan Real Estate 1

Some people invest to get rich. Others invest to get out of a job. Still others invest so their children have an inheritance and grand kids have a college education. Whatever your reason for investing – investing in rental property can help you get there – and can be one of the quickest and safest investment vehicles around. Rental property allows you to take advantage of several distinct benefits:

  • Leverage– Leverage is the ability to use only a small amount of cash to purchase a much larger investment. When investing in real estate, you don’t necessarily have to pay the full amount for the property. Instead, you can pay a “down payment” and get a bank or private investor to fund the remaining. While you may only have 10-20% down (or as low as 3.5% with an FHA Loan) you are able to control 100% of the property and take advantage of 100% of the appreciation, cash-flow, and other benefits.
  • Security– Investing in rental property is generally considered one of the most secure investments you can make, as contrast to methods like flipping or speculation. When you buy smart* you are able to make more monthly income from rent than what it costs to own the property, and the extra monthly incomes (cash flow) can be used to cover the times when the property is vacant or needs repairs.
  • Tax Benefits– The government likes real estate investors, because they provide housing for millions of Americans, and as such – they reward rental property owners with tax breaks and incentives to encourage this type of investing. Benefits like depreciation or the ability to “trade up” to larger properties without paying any tax (1031 Exchanges) can help compound your wealth even faster.
  • Directly Actionable– Finally, investing in rental property gives you an investment that you can directly control. When you buy a stock, you have very very little (if any) control over what the company does and how it operates. Your trust is placed 100% in the hands of Wall Street types and when things go south – your only option is to sell the stock or hang on. When investing in rental property, YOU get to actively take a role in the destiny of your property. You can maintain it, improve it, choose the right tenants, pick the right manager, correct problems, and influence local government to support you.

Different Methods of Investing

There are several different ways that you can invest in rental property, which this section is going to look at. This is not a comprehensive list, but simply a sampling of what is possible.

  • Single Family Homes – Perhaps the most popular method for investing in rental property, the single family home is a house that you can rent out to a single family (or individual.) Generally, these properties are fairly easy to find and fairly easy to finance. Single family homes generally have a higher likelihood of obtaining long-term renters thus an increased chance for stability. On the down-side, when a single family home is vacant, you lose 100% of the rent for that time.
  • Small Multifamily Properties – A personal favorite of mine, the small multifamily is typically between two and four units and can be found in practically every area of the world. The small multifamily offers the ability to receive multiple rents from multiple different tenants, thus diversifying your income to compensate for times of vacancy. In other word – when one unit goes vacant, you still have income from the other units to help pay the bills. Another unique advantage of small multifamily properties is the ability to finance using conventional loans from banks (just like a normal mortgage you would get on a single family house.) This is especially helpful when you plan on living in one of the units, so you can take advantage of the 3.5% down payment requirements given by FHA insured loans.
  • Large Multifamily– Investing in rental property with five units or more becomes a slightly different game, at least in terms of lending. When buying this kind of property, you will be using a “commercial loan” which typically requires higher down payments and interest rates, but shorter term lengths. However, if purchased at a good price, large multifamily properties can quickly produce significant cash flow and a high return on investment.

How to Get Started Investing in Rental Property

Your first step in investing in rental property is to get educated. Congratulations – you’ve already started on step one!

Your next step is to create a plan. As I often say, you wouldn’t take a road trip from Canada to Argentina knowing only that it’s South. You need to have a road map to guide you . Your plan is your road map, and it will help you stay on the right path and avoid dead-ends, wrong-roads, and “shiny objects.” Your plan includes

  • your starting point;
  • your goal/destination;
  • deciding what kind of investing you want to get;
  • how much you want to pay;
  • where you want to buy (neighborhood, tenant type, etc);
  • the level of risk you want to take;
  • the financing you plan on using and
  • your property management team!

Once you have done some of your homework, call Rental Management One to help you get your plan in place. We work with investors just like you who want to trust their property to a professional firm who will take the guess work out of property management. For a free property evaluation click here.

 

 

Article written by Brandon Turner, April 2013. (https://www.biggerpockets.com/renewsblog/2013/04/23/investing-in-rental-property/)

Who is RMO?

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Our Services

Choose Rental Management One and you’ll benefit from a range of property management services and resources unmatched by any other property management company in Michigan.

Multi-Family Property Management Services

We have the entire state of Michigan covered, offering extreme operational oversight,
an efficient marketing and leasing strategy, financial reporting and top notch Owner and Tenant Services.

Single-Family Property Management Services

We will make investing in real estate and management services a pleasant and profitable
experience for you. We bring know-how and experience to your property, giving you the peace of mind knowing your investment is in good hands.

Vacation Rental and Commercial Property Operations

We are a performance-based organization focused on exceeding our clients’ objectives and maximizing results, and the Operations team is committed to providing Associates with excellent support because we believe that directly correlates with smooth property operations.

REO Foundation

As part of Real Estate One’s Family of companies, we are proud to sponsor charities
such as the American Cancer Society and Special Olympics.

For more information click here.