1836 Blog

The Three Most Avoidable Landlord Expenses

Making money from your rental property comes down to a simple equation, right? Earning a return on your investment is not as easy as charging your tenants more than your monthly mortgage + expenses. If that were wholly true, then it stands to reason that cutting your costs as far as possible puts you on the road to a massive return on investment. Instead, as the adage says, you must spend money to make money. The spend-to-make principle applies to any business, including your real estate investment. Despite this knowledge, many property owners walk headlong into expenses that they could avoid.

Avoidable costs start piling up when property owners cut too many corners on their expenses in the name of trying to eke more profit out of their properties. This strategy, although tempting, is short-sighted. You must be smart, not cheap to succeed in real estate investing.

Watch out for these three common and avoidable landlord expenses.

Forced Vacancies: The vacancy you can control

What’s a forced vacancy? It’s a vacancy that is caused by something you did or did not do as the property owner. Vacancies are expensive, so try to avoid these two scenarios.

Your rent is too high.

But, you say, “I need to raise the rent every year! Most everything else in life goes up in price over time, because, inflation!”

Let’s say you have a wonderful tenant who has lived in your property for the past ten years, who pays the rent on time, and cares for your property like it’s their own. You’d like them to stay indefinitely. But, when you keep raising the rent on them arbitrarily, that’s a recipe for your ideal tenant to look elsewhere.

Treat rent increases with care, particularly if you have a fixed mortgage.

Your property is not well-maintained.

Don’t let your dream tenant leave because you neglected to fix something. Tenants don’t want to move and uproot their lives any more than you want to have to find another fantastic tenant. But, they will find another place to live if they are bearing the most significant burden of the upkeep and nagging maintenance issues keep rearing their ugly heads.

By maintaining your property well beyond the make ready and move-in, you will ensure that your renters feel that their tenancy is appreciated.

Bonus – by doing regular maintenance, you’ll also have less of a maintenance lift when you have a vacancy and need to get your rental property quickly back on the market.

High Days on Market: Get it right, then to market

When you bring your rental property to market, make sure it is priced right. When it is priced according to the market or slightly aggressively, you ensure that your rental property rents quickly. But this is only one-half of your go-to-market strategy. You must also get the condition of your property right before you bring it to market.

Don’t put it on the market to test your rent number, then decide that you might need to replace that carpet with a big stain on it to warrant that number. As we said above, vacancies are expensive! By getting the condition right before going to market, you’ll speed up the time it’ll take to get your property rented, and you’ll attract a better tenant.

Deliver your property to market in a great condition
with a great price and you’ll find a great tenant.

Repetitive Maintenance: Don’t spend good money after bad

When it comes to avoidable expenses, repetitive maintenance is a biggie. You know those things that come up every time you have to turn over the apartment to a new tenant? Carpet’s a big one. Don’t replace it with a low-quality option just because it’s cheap and fast. You’ll have to replace it again in 3-5 years. Engaging in short-term thinking will come back to take a big bite out of your wallet over time.

Don’t spend good money after bad, and spend it repetitively!

A better strategy is to pay more for a higher-quality product, like commercial-grade flooring that will last you 10-20 years. You’ll pay up to 25% more, but you’ll also get a break from having to replace it frequently.

Being a rental property investor can be your ticket to financial independence, so it’s worth doing your due diligence when it comes to the care and pricing of your rental property. Owning a well-maintained property that attracts (and keeps) long-term tenants will help you steer clear of these avoidable expenses and provide you with a great return on your investment.

Are you just starting out in real estate investing? Download our free e-book, Real Estate Investing 101: Your Path to Financial Independence. It’s full of tips, resources, and Austin-specific information to help you win in the rental property market.

 

What are people saying about 1836 Property Management?

There are good days and bad ones but we are on a roll!

We had a tenant move in this week and they were so happy they brought us Tiff’s Treats! Thank you! Thank you! Thank you! Now to go run off those five new pounds.

I’m not sure what other property managers do but we survey our tenants once maintenance is complete to find out how we and our vendors performed. Here’s one result from this week. Spot on service!

If you’re looking for the best Property Management Services in Austin you’ve found the place. I dare you to compare quality of service. Ask another manager if they survey their tenants. Ask if they include professional photography, custom floor plans or optimized walk through videos for every listing. Soon we’re going to have drone footage for our All Included Clients. Now that’s service!

Call us today for the best Property Management Services in Austin! 512-994-4323.

Here’s how our tenants feel about our service. How do your tenants feel?

 

Page 1: Punctuality of Service.
Q1

Did the tech show up on time/as promised?

  • (no label)They were on time as promised.
Q2

What was the name of the company and the specific tech?

Appliance Connection, I think his name was Lane?

Page 2: Quality of Service.
Q3

Did the tech complete the work to the job specifications or have they agreed to obtain parts and finish the job if required?

  • The job was completed wonderfully and/or I trust they will return as soon as they can. I’ll be referring them business.
Q4

If a follow up appointment was needed were you able to get this scheduled?

  • Yes
Page 3: What else can we do to support you and/or do the job better next time?
Q5

Should we need to follow up on your service call, we’ll need to know your address. Please fill that in here.

(redacted) St Austin TX 78702

Q6

What else can we do to support you and/or do the job better next time?

totally great service, really appreciate it

What in the world is going on in Austin with the Real Estate Market?

Find out here!

 

If you’re interested in Austin Texas Real Estate here is your monthly update. Find out what prices are doing and why. Where to invest and where to avoid. Call us today for the latest information. 512-994-4323.

http://1836realty-austin.housingtrendsenewsletter.com/

Austin Texas Rental Market and Real Estate Investment Update June 19, 2017

Considering purchase rental properties in Austin, TX? Join our youtube channel for weekly updates on the rental and real estate market in Austin. For the best property management services in Austin call us today. 512-994-4323.

 

Weekly Austin Texas Rental Market Update

Here is our Austin rental market update for the week of June 12, 2017. If you have questions you’d like answered or simply want to talk real estate investing give us a call.

Considering purchase rental properties in Austin, TX? Join our Youtube channel for weekly updates on the rental and real estate market in Austin.

For the best property management services in Austin call us today. 512-994-4323.

How is your Austin property manager treating your tenants?

While quality of care for our owners is important, quality of service to our tenants is also a very big deal. If property managers don’t provide great customer service to the tenants, they won’t renew their leases. Poor customer service by landlords and/or property managers is the number 1 reason tenants do not renew their leases.

What’s an Austin investor to do? Just like anything else in life, hire for quality, not to save $10. That $10 will cost you $1000 or more when tenants fail to renew, your property isn’t properly maintained and you’ve got to cover the mortgage while seeking a new tenant. We say this all the time but snappy advertising by some big names can steer folks the wrong way. The good news for us is all that those national companies can’t keep people happy if the service isn’t there. While a national company has come into our market and gained some traction, their clients are now leaving and entering the market looking for quality. 1836 is here to help!

So how do you know if you’re tenants are being treated well if you’re in another state? Ask your property manager what they do to ensure client satisfaction and retain tenants. Here’s a survey response from yesterday from one of our tenant related to a service call for maintenance.

 

PAGE 1: Punctuality of Service.
Q1: Did the tech show up on time/as promised?
  • (no label)There were early and waiting for us!
Q2: What was the name of the company and the specific tech?

Appliance Connection – Jeffrey – This vendor was terrific start to finish. Jeff called early and showed WAY early for each visit. Very pleased with their service.

PAGE 2: Quality of Service.
Q3: Did the tech complete the work to the job specifications or have they agreed to obtain parts and finish the job if required?
  • The job was completed wonderfully and/or I trust they will return as soon as they can. I’ll be referring them business.
Q4: If a follow up appointment was needed were you able to get this scheduled?
  • Yes
PAGE 3: What else can we do to support you and/or do the job better next time?
Q5: Should we need to follow up on your service call, we’ll need to know your address. Please fill that in here.

XXXXXXXXXXXXXXXXX

Q6: What else can we do to support you and/or do the job better next time?

My experience with both super Tenders, and the vendor were great. I feel like this was handled as quickly as I could reasonably expect. Great work.

What’s going on with the Austin Texas Real Estate market?

Get the latest local and national news here, monthly.

http://1836realty-austin.housingtrendsenewsletter.com/

Austin Rental Market Update 5.22.17

If you’re a real estate investor looking for advice or properties in the Austin market this weekly update is for you. Call us today for the best property management services in Austin. 512-994-4323

Weekly Property Management and Real Estate Investing Update for Austin, Tx Week of 5/15/2017

Are you interested in Austin, Texas real estate or investing? If you want a weekly update our channel is for you. Please subscribe to our youtube channel for weekly updates about Austin Real Estate Investing or call us today for the best property management services in Austin. 512-994-4323.

 

What makes 1836 different from other property manager? Why should I select 1836 Property Management?

Often we get asked by clients “Why should I select your company”? If you’re asking this question. This video is for you. Call us today for the best property management services in Austin, Texas. 512-994-4323.

 

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