Working towards a lower tenant turnover is a great way of ensuring revenue in the form of rent. For this, it is important for a property owner to understand the factors that can affect the rate of tenant turnover and work on creating favorable circumstances for tenants to stay for longer durations.
Following are some tips for reducing tenant turnover and ensuring a consistent flow of revenue from rental property:
- Rigorous Tenant Screening: Take tenant screening seriously as this is the first step towards ensuring that you get quality tenants who are likely to stay for longer durations. Quality tenants cause less damage as well as fewer disruptions and maintenance issues. While screening potential tenants, check the criminal background, credit reports, eviction history and more.
- Build Positive Relationships: Establish positive relationships with your tenants by maintaining open channels of communication, responding to them when they need you and maintaining a friendly and non-intimidating tone when talking to them. It will increase their chances of staying with you and spreading a good word about your services.
- Avoid High Rent Increments: Sudden hikes in rent should be avoided if you want a low tenant turnover. Even though, at some point you will have to increase the rent, it is advisable to spread out the frequency of doing so. The amount of rent charged should be in sync with the region, state regulations, improvements made in the rental property and so on.
- Keep The Property In Good Condition: Upgrade your rental property from time to time to keep your tenants interested. Everyone loves staying at a place that is well-maintained and regularly updated as per the latest trends and requirements of tenants. Respond to requests from your tenants regarding repairs and things such as a fresh coat of paint, in-unit laundry, kitchen renovations, etc.
- Tweak Lease Agreements: If you are experiencing issues with tenant turnover, consider making a few changes in the lease agreement. You can change the lease duration or policies related to pets, guests, income requirements and so on.
- Prioritize Tenant Satisfaction: Be proactive about the requirements of your tenants by making a conscious effort of asking them for feedback and suggestions as to ways with which you can improve your services and whether there are any problems being faced by them. Show them they matter by responding to their requests and suggestions promptly. Such a level of care and credibility will surely keep them with you for a long time.
- Ask For Referrals: If you are looking for new tenants as a result of expansion plans, ask your long-term tenants to refer your services to friends and family. There are higher chances of getting high value tenants from such referrals.
Lone Star Realty & Property Management, Inc.
offers property management services to reduce tenant turnover. The agency assists its clients to ensure higher ROI. For more details on tips to reduce tenant turnover, visit 1020 West Jasper Drive, Killeen, TX – 76542, or call at (254) 699 – 7003.
There is no one size fits all rule when it comes to choosing the right type of investment property; it is subjective. However the goal of purchasing investment property is the same - to earn profit. When choosing the right type of property for investment, a buyer should consider his budget, kind of property required in terms of built type and size, the location, personal requirements and more.
If you are planning to invest in property, here are some tips that will help you find the right property for your needs:
- Research The Area: The first thing is to research the area you want to invest in. Consider the average rent in the area, the local real estate market, rental rates, future development plans and more. Researching before consulting an expert helps in narrowing down your options and saving time.
- Location: A major factor that influences the demand for an investment property is its location. If the location is desirable in terms of proximity to schools, public transportation, shops, restaurants, gyms, health care and so on. Other factors to consider when assessing the location are crime rate, competition, reviews of locals, rental rates in the area and the neighborhood.
- Type Of Property: Your financial strategy will depend to a large extent on the type of property you invest in. You may invest in property located in the suburbs, a low-maintenance townhouse, a high-rise city apartment or another type of property. Consider the pros and cons of each type of property before making a purchase.
- Rental Return: Focus on the potential rental return from the type of property you intend to buy and base your decision of investment on the gross rental return. For this you will have to consider the difference between the expenses of maintaining the property and the estimated amount of cash flow from it.
- Consult An Expert: When you are done with your research, you should consult a reliable real estate agent in your area for the best guidance.
Lone Star Realty & Property Management, Inc.
offers a large number of investment properties. The agency assists its clients in choosing a suitable investment property. For more details on tips for choosing the right investment property type, visit 1020 West Jasper Drive, Killeen, TX – 76542, or call at (254) 699 – 7003.
One of the most secure and rewarding forms of investments are property investments. In addition to being a steady and reliable source of income (in form of rent), they also lead to asset appreciation over the course of time. Nevertheless, in order to guarantee a profitable investment that yields long-term returns, there are some features that every investment property buyer should look out for.
Listed below are some of the features to consider when investing in property:
- Location: Choose a location that not only works for you in terms of viability and profitability, but is likely to attract good tenants. For your property investment to be a success, it is important for it to cater to the needs of a wide group of tenants. So choose a location which offers a peaceful neighborhood and easy access to transportation, schools, hospitals, job hub, entertainment centers, etc.
- Growth Potential: Consider the growth potential of the area you are planning to invest in by assessing its local economy in terms of planned improvements, infrastructure, educational facilities, local businesses and more. Investing in an area with high growth potential increases the prospects of a profitable venture and high quality tenants.
- Durability: As there is no fixed maturity for property investments, the property you invest in should be durable enough to generate income for many years. Always opt for a property with negligible issues, if any. These properties are easier and faster to repair as opposed to those with larger issues that take much longer to resolve, add to your costs and reduce the property’s appeal.
- Price: How much can you afford to spend on the investment? Formulate a budget and take into account the property’s purchase price, your spending capacity and the property’s intrinsic/true value. When it comes to real estate, it is not about how much you can afford to spend as much as it is about spending on property that will generate profits. So, a potential buyer should compare the purchase price of the property to its intrinsic/true value and opt for one that has a lower purchase price and higher intrinsic value in order to generate returns.
- Maintenance: For a property to generate high yields, it is important to evaluate additional costs (maintenance costs) of keeping it in great condition for existing and potential tenants. So, when buying property, choose one that will require minimal maintenance e.g. one with fewer complex systems and appliances that require constant maintenance.
- Market Trends VS Long-Term Appeal: Even though it is tempting to follow market trends and buy property with the latest building designs, you should focus on the long-term appeal of an investment instead.
Lone Star Realty & Property Management, Inc. assists its clients in investing in quality properties for earning higher ROI. The agency enlists suitable investment properties on its website. For more details on features of a good property investment, visit 1020 West Jasper Drive, Killeen, TX – 76542, or call at (254) 699 – 7003.
Starting out as a property investor in the real estate market can initially be very intimidating for beginners. There are numerous industry related investment terms and acronyms that every property owner will come across for the first time.
It is important to get acquainted with common real estate investing terms for investors to have a working knowledge of the basic real estate concepts. These terms will help in communicating effectively with other real estate professionals.
Let us look at some of the common real estate investment terms that every property owner should know:
- Appraisal: It is a survey conducted by the loan officer to determine the value of a property. The survey evaluates the property’s condition and compares listings to validate the purchase price before buying.
- Acquisition Cost: This is the final amount paid by the investor to purchase an investment property. It includes all the fees such as a mortgage, origination cost, closing costs, inspection fees, etc.
- Turnkey Property: An investment property that is fully renovated and does not require any repairs. The investor can purchase it immediately and rent out to tenants. It is updated according to current market standards.
- Rehabilitation: This term is used when repairs are required to make an investment property tenant-ready or ready for resale at a higher value. The repairs can range from minor repainting or installing upgraded fixtures to large-scale renovations such as replacing a roof or gutting a kitchen. The investor should be informed of these repairs prior to the purchase, and are typically listed in the inspection report.
- Assessment: It is an act of determining the real estate value of the property for tax purposes.
- Appreciation: Appreciation of a property stands for the increase in a property’s value over time. It can be attributed to improvement, increased demand, inflation, and/or weakening supply.
- Property Management: Rental property investors hire property managers to oversee the day-to-day operations of their rental property. Property management services include maintenance and repairs, rent collection, tenant screening, financial reporting, etc.
- Return On Investment (ROI): ROI is the measurement (calculated as a percentage) of the net profit of an investment property relative to the property’s total acquisition cost. A higher ROI will mean a higher yield for an investor.
The agents at Lone Star Realty & Property Management, Inc. assist property owners in understanding the terms related to investing in real estate. For more details on investment terms that every property owner should know, visit 1020 West Jasper Drive, Killeen, TX – 76542, or call at (254) 699 – 7003.