To get the highest possible reserve and to attract the best possible tenants you need to know exactly what tenants seek when their searching for a rental property. With this knowledge your own well on the way to happy investing and with happy tenants.
Location is of major importance to prospective tenants well before they even give consideration to the style of home or perhaps type of dwelling being offered for rent. If you have already paid for your investment property there is not much you can do about the place. If your still looking for an investment property a few details to keep in mind should be how close or how far away will be local amenities such as schools, shops, public transport, professions, sporting facilities, hospitals, ocean, water, parks etc . Should the property is on a busy road or in a tranquil street or cul de sac and if the property presents any views, breezes or the aspect of the property. Consideration to these points is most valuable when determining selecting an investment The Landmark.
The rental amount will also find out the type of tenants who would look to rent the property. The market hire needs to be fair in comparison to what else is on offer from the surrounding neighbourhood. For example a tenant won't pay $500 per week for a property when there are 10 of the very same property available for rent at $400 per week. One of the features about employing a good property management company to manage your property will be they will have prepared a CRA (Comparative Rental Analysis) and will know exactly what is achievable and what is not.
Almost all tenants are security conscious and they want to know they will be secure in the property and so to their belongings when there through. Things like deadlocks to front and rear doors, safety screens to all windows and doors and even an alarm system provides the tenant with piece of mind. Most tenants prefer properties that should be fully fenced to the rear and sides and to have a very good gate to the return of the property. This will give them satisfaction knowing their children can safely play in the rear end yard of the property and the property is secure.
The house and property needs to be in good repair and clean and clear which will show prospective tenants you are willing to provide a reliable and inviting property that they too can call place. The maintenance on the property should be considered as an ongoing expenditure of money (and not a cost) of being a property investor. This will permit you to achieve a higher rental figure per week and attract amazing tenants who will treat your home as their own. If your place has dripping taps, torn flywire or security display screen mesh, needs a paint or has over grown sabatini gardens it will be much less appealing to quality tenants. By investing some money in your property you will be surprised how quickly your investment decision can be recouped.
Another important factor is the properties temperature within and out. Air conditioning and ceiling fans are important in a exciting climate and heating is important in a cooler climate. Tenants will know if they are looking at an apartment or townhouse as well as bedrooms are upstairs they will be hot in summer not to mention cold in winter. They will look for things like a separate air conditioner in the master bedroom or at least ceiling fans. If the main located area in the house has the hot sun beating in regarding that side of the house all day long in summer they will in all probability expect an air conditioner. The same applies to outside, is there a patio and if so is it large enough that the tenants will be able to comfortably entertain under and not so small they need to rest inside when their relations or friends visit. The place should also be safely ventilated and have enough windows for you to capture the breezes as this will save on their energy source costs for tenants as well.
The size of the rooms can be an important consideration tenants are looking for in a rental property. They want enough room to comfortably enjoy living in the home. Typically the bedrooms don't need to be the size of Buckingham Palace however do need to fit more than a bed. Children's bedrooms really need to be large enough for a bed and wardrobe (if you can get no built ins) as well as a place for a desk invariably teenagers now have computers or a television in the room. The tenant will also need to see their lounge suite along with other furniture will easily fit in the rooms provided. The same most important still applies whether it's a small 2 bedroom townhouse or perhaps large five bedroom house.
The investment property should be low maintenance and easy to maintain. In a residential home tenants don't want to be spending large amounts of their weekends mowing and trimming lawns, pruning hedges and looking after award wining increased by bushes. They want to be out enjoying themselves so minimal maintenance gardens are important. If there are garden beds from the property make sure they are edged and mulched. This makes it much easier for the tenants to mow and whipper snip the particular lawn and weed the garden bed. If you do experience beautiful gardens and lawns throughout the property then have the funds for a gardener to maintain them. Not all tenants will have an identical passion for gardening that you may have. If the property has a swimming pool area I would strongly recommend employing a pool company to maintain the group. This may sound expensive but from my experience perhaps it will save you thousands over the long term.
A factor which is becoming further important in today's ever changing world is the environment. Through energy costs soaring tenants are now looking for rental real estate that will minimise their energy and water expenses. Goods such as solar or gas hot water systems opposed to electric power are becoming more important to tenants. Low wattage or energy levels efficient light globes installed in the property will also matter when tenants are deciding on two very similar houses. A second important feature today are rain water tanks because tenants can now be charged for the water usage around the home. If a water tank is plumbed into the house hold to run the toilets and washing machine this will save typically the tenants a lot of water usage and money.
In summary if you have had bought a property already you may not be able to much about the specific location but their should be a few ideas which will help you as well as increase the income the property generates but also attract a great renter who will look to stay for a long period and as a result will reduce your openings rate.
Hi my name is Jason Savage and I'm the primary and director of Loganholme Best Agents a real residence agency located at 6 Belbora Road, Shailer Dog park, QLD Australia. We specialise in residential property revenues and property management. We have been in business since 2003 and also were asked to join the Best Agents member network on late 2009. We are passionate about helping people plus our focus is on helping our clients build a fortune by maximising their returns, minimising their risk as well as giving them exceptional customer service. We are here to serve the clients and help them in any way we can with any one of their property needs.
From about the mid-1990s up until the housing bubble burst, Arizona's economy was basically driven primarily by the real estate industry. During those decades, high population growth and lax credit standards took a booming housing market. This boom created a fact that more real estate-related jobs (real estate agents, construction providers, title/escrow agents, etc). This also became an attractive market pertaining to property investment companies. These investors flooded the market selecting up property left and right. This ultimately took inflated home prices, which played a big role from the bust that started in late 2006.
Fast forward for you to today... It is late 2010 and over the past 4 numerous years the effects of the housing collapse are evident. The market seems to have definitely changed, but those real estate investors (who usually are not shell shocked) are seeing great opportunity. It is moments to shift the mind set of the investor. Investing no longer are generally based solely on speculation. An investment opportunity must have to produce cash flow, which provides a monthly passive income for those investor. There are other advantages; however this article will concentration on the impact property investment companies have on the monetary investor.
The first step is to understand the different types of property funding companies. There are 3 main categories; property wholesalers, rehabilitate specialists, and private equity funds. It is important to understand the particular services these companies provide and how they impact a profits investor's profitability.
Property Investment Companies: Property Wholesalers
Using the increasing supply of distressed real estate, there have been a number of property from suppliers companies entering the Arizona market. These property expenditure of money companies purchase property at a discount, then wholesale (or flip) the properties to an investor at a higher rate. Typically, wholesale companies are purchasing short sales, bank-owned (REO) properties, or properties at trustee sales. Anyplace they can buy at the lowest possible price and resale for the highest possible profit. Generally, the properties being sold through wholesale companies are 'as is'. This means that they will not possibly be doing any improvements to the property, which could be a setback for the buyer.
Impact on a cash flow investor: There can be positives and negatives to working with a property wholesale company. Some of the advantages could quite possibly include acquiring a property at a price below market worth, since many companies try to purchase at 50 or 70 cents on the dollar and sell for 80 mere cents. Also, property wholesalers are typically dealing with properties under $150, 000, so cash flow investors are investing a smaller amount of cash with the potential for higher returns. A disadvantage to employing a property wholesaler is not knowing exactly what you are getting, through terms a property's condition. As mentioned earlier, the real estate are generally sold 'as is'. This could mean more growth capital is needed over and above the acquisition cost. Without having a quality calculate of that additional cost, it could definitely impact the cash stream investor's return.
Property Investment Companies: Rehab Specialists
Rehabilitation specialists, more commonly known as fix and flippers, are place investment companies that purchase property with the intent to extend and sell for a profit. As with property wholesalers, typically the Arizona real estate market has seen an increase in rehab gurus. The distressed property environment is fueling this development. Companies are able to purchase property at a discount, rehab, plus sell to buyers looking for a move-in ready home. It is very important review the quality of the rehab work, as there are bad and the good rehab specialists. If the work is not done well, therefore more problems can arise for the property buyer.
Effect on a cash flow investor: There are several advantages to using a rehab specialist; however there are also some disadvantages. A big advantage will be that a rehab specialist can provide a cash flow investor along with a turnkey investment property that is ready for a tenant as well as the potential of quickly generating monthly income. All these properties may require a bit more capital at acquisition and costed a bit closer to the actual market value; however shouldn't experience additional rehab costs. One disadvantage is if the rehabilitation specialist did not do quality work, which could require extra expense to maintain the property. It is important to always ask for references. An honest rehab specialist will have a portfolio of completed ventures they can provide to investors.
Property Investment Companies: Secret Equity Funds
Private equity funds are quite a bit different from the other 2 types of property investment companies. They develop capital from many investors with the goal of buying property and returning a monthly cash flow over a place period of time. A private equity fund is approved and governed by the Security and Exchange Commission (SEC) and every person fund sets its own investment terms. They vary dependant on property acquisition, return percentage, and length of the investment decision. The fund is controlled by a group of fund administrators, typically the principals of the company issuing the fund, without having to by the individual investors. There have been some past challenges through private equity funds stemming from misuse of dollars, improper capital allocation, and poor asset management.
Affect a cash flow investor: Private equity funds can offer added benefits to cash flow investors who are only concerned with the gain and do not want to deal with acquiring the property. There is typically the minimum capital investment with these funds; however in most cases it will be cheaper than purchasing an actual property. With a collaboration regarding capital, a fund has the ability to purchase larger pieces of realty with the potential for higher returns and develop a larger account of property providing diversification to the investment. There are also numerous disadvantages to private equity funds. A cash flow real estate investor would have no control of how the fund is supervised or what type of property the fund is acquiring. The investor will get a prospectus that outlines the terms of your fund. Also, it is important to research the principals involved as well as make sure the fund has filed the appropriate SEC papers.
Property investment companies provide many great services just for cash flow investors. It is important to find the right company that fits on with your investment strategy and how their services will be able to increase your profitability. Clear Vision Investment Group is actually a resource for cash flow investors. Get our recommendations on what forms of property investment companies are right for you. Also, master how Clear Vision Investment Group can help you find profitable cash opportunities.