When you’re looking for your investment home, compare the property you’re buying with what has been on the market for the last six months and has sold. Look at what’s pending, too. Sold properties would be good comparables, and they need to be similar to your property. You cannot compare a remodeled and updated home to an older, dated home. Look at the properties within 200 square feet of the house you’re considering. When you have those comparables, you’ll know what to pay for the house. Don’t over pay. You can fall in love with a property, but if you overpay, it may take a long time to earn any ROI.
Calculate Your Rent and Expenses
Look at your monthly costs, which include your taxes and insurance and HOA dues. If you’re including pool and lawn service, add those as well. Figure in all of your monthly costs that are associated with the property, and you’ll know what is coming out from your cash flow every month. Then, you can look at your rent range, which you can estimate from homes on the market currently. Compare properties with the same square footage that are in the same condition and neighborhood. Compare the rent those homes are getting to what has leased in the last six months. You’ll know your rent range. You can start at the high end, and in two weeks if you don’t have an application or any activity, you’ll know your price is a little high or there’s something about the property that turns off renters. Ask the prospective tenants who come to see it what they like and don’t like.
Rental Management and Tax Deductions
Some tax deductions can be taken in the year that you pay for them. For example, straight deductions like rental management fees and repairs can be deducted right away. If you have to fix the air conditioning or a faucet or the fridge, you can deduct the expenses on that year’s tax return. However, improvements like new floors or a new roof or a new appliance must be deducted over time. Consider all these things before you purchase your property.
Unless you’re up on all the tax laws, the best thing you can do is work with a great accountant who understands investment properties. Professionals can tell you about the deductions you could take. You don’t want to miss anything significant. And, keep good receipts because the IRS is watching. Show what you did in the property and have the backup for it.
If you have any questions about this, or you’re considering purchasing an investment property and you want to talk about the potential rental range, please call me. You can always contact us at Debbie Gloss Properties for any help with Orlando property management.
When you’re looking for property management services in Orlando, there are many good reasons to work with us at Debbie Gloss Properties. I have been involved in property management for the last 17 years, eight of which have been with my own company. The work is enjoyable, and I still love the challenge. Today, we’re talking about a few things to consider when you’re looking for a property manager.
Property Management Orlando: Marketing and Tenant Selection
You want a well-managed property where your investment is maintained, rental income is generated, and expenses are managed effectively. The first step in accomplishing this is to select an acceptable tenant. At Debbie Gloss Properties, we do this through internet marketing. Web advertisements are posted on my own website, and those ads are sent out to other sites, providing a broad range of coverage. It helps to get a number of showings because in the end, this additional activity will give you more choices when it comes to tenant selection.
Property Management Orlando: Application and Screening
The next step in tenant selection is processing the application. We look at credit and criminal histories, and we verify background. In verifying the background, I’m also looking to verify that the tenants have paid their rent on time and maintained the properties in previous rentals. Ask former landlords what the property’s condition was when the tenant moved out. Check income as well, and make sure the applicant is qualified to rent the property. Tenant selection is a critical factor. You’re asking if the tenant can pay the rent and take care of the property. This cannot be overemphasized. It’s the start of good property management.
Property Management Orlando: Communication and Maintenance
Once a tenant moves into the home, it’s good to maintain the relationship with positive reinforcement. During inspections, you want to look at the condition of the property. See if there’s any work that may have been neglected. This is also an opportunity to talk about the tenant’s concerns. Communication with your tenant is important to maintaining your home and retaining the tenants long-term.
If you’re thinking of rehab work or remodeling, it may be easier to do that over time. It seems to work better that way without having a large cash outlay all at one time. You want to maintain your home and avoid deferred maintenance so your ready if your going to sell or re-rent the property. If you have deferred maintenance, you’re going to fall below market value. Weather you want to hold onto your home for tax deductions, appreciation, or cash flow, you need to be market ready at all times.
Property Management Orlando: Competition
With the increase in qualified tenants, we sometimes have a scenario where there are multiple applications for the same property. This creates a sense of urgency for people who are looking at a property. They realize they need to apply right away or it will be gone. This competition is good for the rental market and its investors.
Cash Flow and Tax Benefits
If your property cash flows after expenses, it’s a perfect scenario. However, all investment properties have tax advantages and deductions associated with the rental property. An accountant can help you navigate the tax code and help you take advantage of everything you have. You might also want to consider using a self-directed IRA for your investments. If you’re purchasing one home or building up your portfolio, check into it.
Property Management Orlando: What to Buy
There are many desirable areas in Orlando where you can invest. Tenants look for a home that’s in good condition, as well as the neighborhood or location. If they are looking for a specific school district, that will matter a lot, and they might also want something that’s an easy commute to work. The tenants in Orlando might be looking at one or all those things. Once you’ve located a potential investment home, a good Orlando property management company can help you get the property ready for the rental market.
There are many great reasons to invest in the Orlando area. If you have any questions about investing or Orlando property management, please contact us at Debbie Gloss Properties. We’d be happy to help you.
A problem you may encounter is a tenant not paying rent. Today, we’re talking about this topic and sharing some steps you can take if you find yourself in this situation.
First, ask questions. Find out why your tenant is late with the rent payment. If they have had a life event, that’s going to require a different approach than if it’s a small monetary setback. There might have been some unexpected expense that they encountered, and they’ll be able to catch up with rent quickly. If they pay you when they say they’re going to pay you, check your lease and the charge the proper late fee. You can accept the rent and move on. However, if there’s been a divorce, a job loss, or something big that’s happened, it may be insurmountable and things won’t look like they’re going to improve quickly. In these cases, you probably want to ask them to vacate.
Agreement to Vacate
If your tenant cannot catch up with rent, ask them to sign an agreement to vacate. This agreement states they have a specific date by which they need to move out. If they agree to sign this, you know that they will cooperate and it’s more than likely you will avoid an eviction. That’s good news because evictions are costly and time consuming, and you want to avoid them if you can.
Three Day Notice to Vacate
If your tenants aren’t willing to sign an agreement to vacate, you want to serve a Three Day Notice to Vacate. This tells them they have three days to pay the rent or leave the property. You have to avoid holidays, and you cannot count weekends in the notice period. Post this on the door. Either it will get their attention and they’ll come up with the money, or the three days will pass and you have the right to start the eviction process. At this point, hire an attorney to help you, or gather the paperwork yourself that you can file at the county courthouse in the county where your property is located.
Property Management Orlando: Screening
You’ll want to get through the eviction quickly and move onto the next tenant. Make sure you vet and screen your tenants well before you rent to them. You want to know they earn enough money and have good credit. Make sure they have a good rental history and can take care of your property. Paying attention to these things will help you avoid renting to someone who stops paying rent and ultimately needs to be evicted. If you don’t settle on someone and you pick the right tenant, you avoid a lot of this.
If you have any questions about Orlando property management, please contact us at Debbie Gloss Properties. We know this is a confusing issue, and it can be hard to move forward. We’d be happy to talk about it with you.
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