The Top Property Management Newsletter and Events for December 2023
Preparing for the End of 2023 and a Happy 2024
Property Management Newsletter Inside!
Polaris Property Management welcomes you to our December 2023 newsletter, packed with exciting updates, comprehensive resources, and the very latest from the real estate industry.
Bringing you a round up of the latest news, ideas and tips to maximize your experience as a landlord or REALTOR®.
Good Property Management Is About Prevention!
It’s December and time to think about prevention!
Let’s talk about managing rental properties, which, interestingly, shares quite a few similarities with personal health management. Essentially, it’s all about preventive care. Keeping your property in excellent condition is akin to maintaining good health – prevention is key. It’s significantly more cost-effective to regularly maintain a property than to wait for a major problem that demands a costly solution.
Now, let me walk you through some effective preventive strategies to help you avoid those hefty repair bills in the future.
1. Usage-Based Inspections: Consider parts of your building that are in constant use, like elevators or gym equipment. Even the highest quality installations need periodic maintenance due to frequent usage. Managing your property wisely involves monitoring these components regularly, much like routine health or dental checkups. Early detection of minor issues can prevent them from escalating into major, expensive repairs.
2. Time-Based Maintenance: Different building elements require attention at specific times, often influenced by seasonal changes. For example, HVAC units alternate between heating in winter and cooling in summer. It’s prudent to inspect and maintain these systems separately. Additionally, seasonal elements like rain or snow may impact other parts of your building, such as the roofing or gutters. Planning these inspections in advance ensures your building is prepared for each season.
3. Risk-Based Maintenance: Certain building aspects, if neglected, can lead to severe consequences. For instance, electrical problems can cause fires, while plumbing issues can lead to significant water damage and potential health hazards. Prioritizing inspections of these critical areas is essential in mitigating risks, especially those that could incur substantial costs.
In this era of technology, it’s even possible to incorporate “smart sensors” within your property. These devices monitor for potential issues and provide early warnings, helping you to address problems before they escalate. In fact, a few years ago we were notified about a problem with a home’s heating system when we were over 1,500 miles away.
If you’re looking to enhance the management of your rental property investments, feel free to connect with Polaris Property Management. We’re here to assist you in navigating the intricacies of property management effectively. Looking forward to hearing from you!
If you want help in preparing your property, or looking for professional property management, call Claire at (317) 533-2419 or Dan Baldini at (317) 870-3249, or schedule a meeting by clicking here.
Interest Rates Keeping Your House from Selling?
In recent times, the once-booming luxury housing markets across key U.S. cities have seen a bit of a downturn. This shift has nudged the average sales prices of premium homes down from their previous, dizzying heights. Now, in places like New York City, Los Angeles, and Miami, and even Indianapolis, owners of high-end properties are finding themselves in a bit of a pickle. Their lavish homes are lingering on the market for longer periods, causing a bit of worry as the ‘days on market’ clock keeps ticking. If a property sits for too long, it risks becoming ‘stale’, but then again, jumping at a mediocre offer could mean waving goodbye to hard-earned equity.
Faced with this uncertainty, some homeowners are toying with the idea of renting out their properties. It’s a way to cover those hefty mortgage payments or even rake in some extra income until the market does a U-turn. But is this really the wisest move?
Selling a house might look easy, especially when lots of people are buying. But, many things can change how well it sells. For example, a house priced too high won’t sell fast. And if a house has lots of problems, even lowering the price might not convince buyers.
If you’re having a hard time selling your house and have tried many things, think about renting it out. Renting can bring in money over time. This money can help with retirement, travel, starting a business, or just for fun.
Being a landlord has its good and bad points. But often, the good points are more important.
Here are five reasons to stop trying to sell your house and rent it out instead:
1. Steady Money
Renting out your house means getting regular money from rent. After your house loan is fully paid, the rent can pay for things like taxes, fixing the house, and other costs. Any extra money is your profit.
Real estate experts agree that renting out property is a good long-term plan. The rent can help pay your loan, or even be more than your loan payment. Some landlords make $100 to $200 extra each month. But remember, this is not pure profit until your loan is paid off.
2. Sale Doesn’t Cover Loan
If selling your house won’t pay off your loan, renting it out is a smart move. It’s better than getting into more debt and can bring you money over time.
Real estate has made many people in Houston rich. If you’ve ever thought about real estate, now’s a good time to start.
3. Tax Benefits
Owning rental property has many tax advantages. You can save on mortgage interest, property aging, repairs, and fees. But, talk to a tax expert to see what applies to you.
Here are some tax benefits:
– Property Aging. Houses usually age at a rate of 3.636% per year for 27.5 years. This doesn’t include the land.
– Repair Costs. You can often deduct money spent on repairs.
– Avoiding Extra Tax. Losses from your property can help you avoid paying a 3.8% extra investment tax.
– Mortgage Interest. The amount you can save varies, but it’s often possible.
You can also save on property taxes, travel costs for property care, and more.
If all this sounds hard, you can hire a tax expert. If you work with a property management company, they can help with your taxes too. That is one thing that Polaris Property Managment has as an advantage over many other property management companies. We are experts in helping you and providing great information.
4. Interested in Real Estate
If you’ve wanted to try real estate, not selling your house could be your chance to start. Use this opportunity to get into rental property.
5. Looking for a Business Idea
If you’re searching for a business idea that doesn’t need much starting money, consider renting out your house. You’ve already paid the down payment, so it’s easier than starting other businesses.
Renting out your house means fewer costs than other businesses. You may even want to buy more rental properties later.
Don’t want to deal with renting? Let us help.
At Polaris Property Management, we manage rental properties professionally. We handle everything, including finding tenants, checking backgrounds, collecting rent, and more.
The longer your house is for sale, the harder it is to sell. Don’t wait any longer. Talk to us about turning your house into a rental property we manage for you.
Embracing the Landlord Role
Transitioning from simply owning real estate to becoming a successful landlord is a journey that requires more than just a set of keys. It’s about embracing a new role that combines savvy business practices with interpersonal skills and a deep understanding of the real estate market. In this guide, we delve into the strategies and insights that can transform you from a property owner into a thriving landlord.
Understanding Your Market: The First Step to Success
Know Your Area: Before you can successfully rent out your property, it’s essential to understand the local real estate market. This means diving into the specifics of your area — what are the average rent prices? What amenities do tenants seek? How does your property compare to others in the neighborhood?
Stay Informed: Keep abreast of market trends, economic factors that influence real estate, and changes in the community that could affect demand. Being well-informed positions you to make smart decisions about your property.
Let’s say you own a property in a bustling city neighborhood known for its young professionals. By understanding this demographic, you might find that these tenants value properties with modern amenities, proximity to public transportation, and a vibrant nightlife. Tailoring your property to meet these needs could include installing smart home features, offering flexible lease terms, or highlighting the property’s location in your marketing efforts.
Legal Compliance: More Than Just a Requirement
Know the Laws: Familiarize yourself with state and local regulations that govern rental properties. From security deposit limits to eviction procedures, understanding these laws is fundamental to protect both you and your tenants.
Fair Housing Act: Ensure that you’re compliant with the Fair Housing Act, which prohibits discrimination against tenants. This not only fosters a diverse and inclusive environment but also safeguards you from legal repercussions.
Imagine a scenario where new safety regulations are introduced in your city, requiring all rental properties to have carbon monoxide detectors installed. As a proactive landlord, you not only comply with these new regulations promptly but also take the opportunity to conduct a full safety audit of your property, ensuring all aspects meet or exceed legal standards.
Effective Property Management: The Heart of Land lording
Routine Maintenance: Regular maintenance is crucial. It’s not just about fixing issues as they arise; proactive maintenance can prevent larger problems down the line.
Tenant Relations: Be responsive to tenant concerns. Good communication can often be the difference between a tenant who renews their lease and one who leaves.
Consider a situation where a tenant reports a malfunctioning heater during winter. An effective landlord would immediately prioritize this issue, ensuring that it’s resolved quickly to maintain a comfortable living environment. This responsiveness not only addresses the immediate problem but also reinforces to your tenants that their well-being is a top priority.
The Art of Tenant Selection: A Critical Skill
Screening Process: Develop a robust tenant screening process. This includes credit checks, employment verification, and criminal background checks. A thorough screening process can save you from potential problems later.
Trust Your Instincts: Sometimes, data only tells part of the story. Trusting your instincts when meeting potential tenants can also guide your decision-making.
Picture reviewing applications for your rental property. One applicant, while having a slightly lower credit score, provides excellent references and a stable employment history. Balancing the quantitative data with your qualitative assessment, you might decide this applicant is a trustworthy and reliable tenant, demonstrating the importance of a holistic view in the tenant selection process.
Financial Acumen: Maximizing Your Property’s Potential
Setting the Right Rent: It’s a balance between competitive pricing and ensuring your investment is profitable. Research and understand what the market can bear, considering factors like location, property condition, and amenities.
Budgeting for Expenses: Be prepared for not just regular maintenance, but also unexpected costs. A good rule of thumb is to set aside a percentage of your rental income for these expenses.
For instance, you notice that rental properties in your area have seen a steady increase in rent. However, instead of drastically raising your rent, you opt for a modest increase, which keeps your property competitive while still valuing your current tenants. This approach balances profitability with tenant retention.
Embracing Technology: A Modern Landlord’s Toolkit
Property Management Software: These tools can simplify many aspects of landlording — from tracking rent payments to managing maintenance requests.
Online Marketing: Utilize online platforms to market your property. High-quality photos, virtual tours, and detailed descriptions can attract the right tenants.
Imagine implementing an online property management system. This system allows tenants to easily pay rent, submit maintenance requests, and communicate with you directly. This convenience enhances the tenant experience and streamlines your administrative tasks.
Building Lasting Tenant Relationships: The Human Touch
Be Approachable and Fair: Treat your tenants with respect and fairness. This can lead to longer tenancies and positive word-of-mouth.
Respect Privacy: While you own the property, for your tenants, it’s their home. Respecting their privacy and adhering to proper notice periods before visits is key.
An example here could be organizing an annual gathering for your tenants or sending out a monthly newsletter with community news and updates. These gestures help in creating a sense of community and show tenants that they are valued.
Investing in Your Property: A Long-Term View
Upgrades and Renovations: Periodically upgrading your property can increase its value and attract higher-paying tenants. Even small improvements can make a significant difference.
Energy Efficiency: Investing in energy-efficient appliances and fixtures not only appeals to environmentally conscious tenants but can also reduce long-term costs.
Suppose you decide to retrofit your property with energy-efficient windows. This not only reduces energy bills (a selling point for future tenants) but also demonstrates your commitment to maintaining and improving the property’s value.
Navigating Challenges: The Reality of Landlording
Dealing with Difficult Situations: Whether it’s late payments or maintenance emergencies, developing a calm and solution-focused approach is vital.
Legal Support: In complex situations, don’t hesitate to seek legal advice. Having a lawyer familiar with real estate law can be invaluable.
For instance, you encounter a tenant who consistently pays rent late. Instead of immediate eviction, you have a candid conversation to understand their situation, potentially offering a payment plan. This empathetic approach can sometimes resolve issues amicably, preserving the tenant relationship while still addressing the problem.
Crafting Your Success as a Landlord
Embarking on the journey from real estate owner to successful landlord is filled with learning opportunities and challenges. It’s about much more than collecting rent; it’s about creating a welcoming, safe, and profitable living environment. By understanding your market, staying legally compliant, managing your property effectively, building solid relationships with tenants, and continuously learning and adapting, you can thrive in this role. Remember, successful landlording is about creating a harmonious balance between business acumen and human empathy, leading to a rewarding and sustainable venture.
Are you looking for a property management company that supports families and American Values? Looking for a company that will put you first?
We provide leasing and management services so you don’t need to worry about your portfolio. Contact us today and see how we can help you!
Investing in property is a significant endeavor, and having the right property management partner by your side is crucial for your success.
Polaris Property Management in Indianapolis is committed to supporting your investment goals by providing top-notch property management services tailored to your unique needs. We prioritize open communication, transparent processes, and a customer-centric approach, ensuring your satisfaction every step of the way.
Get A Free Rental Property Analysis
The Polaris Property Management Team of experts would love to provide you with expert analysis of your property. Click the button below to go to our Rental Property Analysis Request Form.
Home Maintenance & Safety Checklist
Let us help you keep track of those required and necessary maintenance records.
It’s helpful for your records and when you sell or lease your home.
December Home Maintenance & Safety Checklist
Get your home ready for winter and to protect your family.
December is a time of celebration and to prepare for the new.
🔲 COMPLETE DEEP DUSTING
🔲 CHECK ALL OUTDOOR LIGHTS
🔲 CAULK SHOWER
🔲 CLEAN RANGE HOOD
🔲 CAULK TOILETS TO THE FLOOR
🔲 CHECK FLASHLIGHTS
🔲 STORE WATER
🔲 STORE CANNED AND DRY FOOD
🔲 CHECK ATTIC INSULATION
If you own property, or are thinking about investing, and would like to discuss steps to obtain your own financial independence through property ownership and professional property management, please contact us today: Dan@PolarisManage.com