- Reduced Vacancy Rates: A professional property management company can help keep vacancy rates low by ensuring that units are marketed effectively, and tenants are carefully screened. This means that units are less likely to sit vacant, reducing the amount of lost income for the investor.
- Efficient Maintenance and Repairs: A property management company can coordinate maintenance and repairs quickly and efficiently. This can help prevent minor issues from becoming larger, more costly problems. In addition, property managers often have relationships with contractors and vendors, allowing them to secure better pricing for maintenance and repair services.
- Better Tenant Screening: Tenant screening is critical to ensuring tenants pay rent on time and take care of the property. A property management company can screen tenants thoroughly, reducing the risk of tenant turnover, property damage, and eviction.
- Legal Compliance: Property management companies are well-versed in local, state, and federal laws that govern rental properties. They can help ensure that landlords are in compliance with all relevant regulations, reducing the risk of costly legal battles.
- Improved Rent Collection: A professional property management company can establish clear rent collection policies and procedures, making tenants more likely to pay on time. In addition, property managers can follow up on late payments and enforce lease terms, reducing the risk of lost income due to non-payment.
Savings interest rates have been hovering around 1% for the past 10 – 12 years, while inflation has been exceeding 5% per year for the past two years. The stock market has had its ups and downs, some sectors have done well and others have gotten clobbered.
It’s difficult for most of us to figure out how to grow a nest egg without getting it being eaten up by inflation, devaluated by the sudden whims of the stock market, and erosion by the numerous fees on investments vehicles.
After the great recession (circa 2008) our company started going all-in on Rental Houses, buy-fix-hold-rent, in particular, is our flavor of choice but we will also do buy-hold-rent of turnkey properties if the numbers make sense.
We’ve come to look at each rental property like a small 401(k) retirement saving account. Of course, rental houses aren’t actual 401(k)’s but when acquired and managed properly they can provide significant long-term savings benefits such as appreciation, monthly cash-flow, cash-out ability as well as several short-term and long-term tax advantages.
There are at least 5 potential areas to profit from with a rental house investment:
- Appreciation – the increase in value of the home over time
- Monthly Cash Flow – the amount of money left over each month, or each year after paying all expenses such as mortgage, taxes, insurance, property management, repairs..etc.
- Cash Out Ability – the equity over 30% of market value in a rental property can be unlocked/withdrawn in certain conditions by refinancing.
- Annual Tax Savings – being able to claim legitimate business expenses against the property, taking generous depreciation deductions, and extending the SALT (State and Local Tax) deduction limit are some of the most popular tax savings methods available to Real Estate investors.
- Long-Term Tax Savings – capital gains treatment, 1031 exchanges, and tax-deferred retirements accounts are some of the long-term tax savings vehicles available to real estate investors.
Not all properties will always realize all of these potential benefits as real estate investors often have different wealth-building objectives and tax situations. It’s always helpful to seek the advice of attorneys and accountants who are well versed in real estate investing before taking the plunge.
One of the things that tend to hold would-be investors back is Fear of Tenants, as there is no shortage of bad tenant stories. Attracting, selecting, and retaining quality tenants, providing and enforcing a strong lease, and dealing with repairs on a timely basis are key to operating a successful rental property.
Bassett Property Management takes the stress out of the day-to-day tenant side of the business by providing management services to their clients. Visit our website at http://www.bits.ws to learn more.
This fully furnished short-term rental apartment includes all utilities & wifi. This one-level ranch apartment was recently updated and is conveniently located in the Ridge Road section of North Haven. Just 5.1 miles to Yale-New Haven Hospital.
Included in the lease: Electric, Gas Heat, Wifi, Water, Trash (tenants must take trash cans to the curb), Sewer. Tenant pays: Renters Insurance, utilities over the $200/mo budget (budget should be sufficient)
Tenants bring linens (sheets, towels, pillows, comforters) extra Wifi TVs (one TV is included in the living room) – linen package is available for an extra $200 per stay.
This apartment is 750 sq/ft. The primary entrance to this apartment is on the right side of the house. 2 parking spaces are included, which are in front of the apartment. This is Non-smoking property