Polaris Property Management Newsletter – September 2023

September in Indiana – From Summer to Fall:
Property Management Roadmap

Polaris Property Management welcomes you to our September newsletter, packed with exciting updates, comprehensive resources, and the very latest from the real estate industry.

Unlocking Value in Real Estate: Your Monthly Guide to Stress-Free Property Management

Bringing you a round up of the latest news, ideas and tips to maximize your experience as a landlord or REALTOR®.

Low Vacancy, Better Tenants:

Scheduled Landscaping at your vacant properties is really a 2-for-1 reward – by keeping up with the lawn, you are increasing curb appeal which finds you tenants quicker as well as showing your tenants at move in how you expect the lawn to be maintained. If it isn’t taken care of before they move in, you really won’t have a leg to stand on if they aren’t taking care of the landscaping.

This relatively small effort can be the difference between a 7-day lease turnaround and a hole in your pocket that sits for a few months.

As September rolls in, don’t let the cooler weather deter you from having a vibrant lawn.

1) Revamp Your Lawn

Your lawn can benefit from some fall maintenance. From dethatching to aerating, this is a good month to get your lawn in top shape.

Most landscaping companies will provide these services for a nominal fee, so there’s no need to buy specialized equipment.

2) Reinforce that lawn with overseeding

Fall is an excellent time for soil enhancement. Warm days and cool nights make fall the perfect time for establishing new grass and strengthening existing lawns. Plant a quick-growing cover crop like annual rye grass to get a great lawn base, and add the slower growing grasses including northern favorites such as Kentucky bluegrass, perennial ryegrass and tall and fine fescues.

3) Upgrade Your Landscape

Consider adding shrubs and trees this September. Evergreen Trees and shrubs added to the yard add to the curb appeal and give your property a welcoming feel.

That large open lawn can also be “spruced up” with evergreens. Remember to give them plenty of time to establish roots well before our upcoming winter and water them right up until the ground freezes.

4) Quick Color Boost with Mums and Pansies

Introduce a burst of color instantly by planting chrysanthemums and pansies. These are perfect for cooler weather and provide a colorful spectacle in beds and containers on and around the porch. Choose plants that are still budding to maximize their blooming time.

If you’re planning to get mums, make sure to go for garden mums, as florist mums are not suitable for outdoor planting.

5) Clean Up around the house

To deter pests and diseases over the winter and next season: clear the property of any decaying fruit, sickly leaves, or dead vines. Leaves will be falling soon, so make sure that you get a head start on having the yard looking good.

We hope these tips inspire you to make the most of your yard to help quickly lease that property that may be standing empty this September.

If you want help in preparing your property, or looking for professional property management, call Dan Baldini at Polaris Property Management at 317-870-3249, or schedule a meeting by clicking here

The First Key Factor for Profitable Rental Property Investment: Cash Flow

Everyone aspires to financial freedom, standing atop their own metaphorical mountain basking in the success of wise investments. While the main goal of investing in rental properties is straightforward—making money—many investors stumble on this path. The common culprit? Poor cash flow management.

Understanding Cash Flow

For the uninitiated, cash flow is a fundamental concept in real estate investment. Whether you call it Cash Flow, Net Cash Flow, or Free Cash Flow, they all point to the same formula:

Revenue – Expenses = Profit (or Loss)

The ideal result? A positive figure that keeps you financially secure.

Common Pitfalls: The Dangers of Over-Estimating Revenue

So, how can something as simple as subtracting expenses from revenue become a stumbling block for many investors? The answer lies in common errors in judgment, one of the most pervasive being the over-estimation of revenue.

Imagine this scenario: You find a promising property listing online, or your broker nudges you with an enticing message claiming the property is a “surefire win.” They’ll even show data supporting how similar homes in the neighborhood have rented for an attractive price. Bolstered by this information and emotionally charged, you quickly purchase the property. Then reality hits; the property remains unoccupied month after month.

Safeguarding Your Investment: Sensitivity Analysis

To counteract this risk, employ a strategy known as Sensitivity Analysis. In layman’s terms, this means covering your bases by asking “What If” questions:

– What if the rent is $50/month less than estimated?

– What if the rent is $100/month less?

– What if it takes longer to find a tenant than initially thought?

By rigorously questioning your assumptions, you can create a more resilient investment strategy.

Mastering cash flow is paramount for any successful real estate investment. Learning from common pitfalls and adopting a data-driven approach can be the difference between enjoying that metaphorical sunny mountaintop and facing financial despair.

Here’s to your journey toward financial freedom!

The Second Key Factor for Profitable Rental Property Investment: Under-Estimation of Expenses

The second error in real estate investor judgement is Under-Estimation of Expenses.  Just like with over-estimating revenue, under-estimating your rental property expenses can torpedo your real estate investment results.

There isn’t an entrepreneur out there who hasn’t done this, even experienced folks.  It’s easy to do when the market is robust and favors Landlords and we are lulled into thinking the bull market will run forever.  It’s easy to under-estimate your expenses for labor costs to rehab a property, to flip a property, even to just get a home ready for showing after a seller moves out.

The most frequently under-estimated cost?  Vacancy carries costs.  Lawn mowing, snow removal, and utility bills.  These are hard costs that Landlords most frequently forget.  While it may seem like a small monthly cost of a few hundred bucks, if a property goes vacant for 2-3 months, that gets testy real fast.

Here’s a real-life situation of how it happens:

• You find that diamond in the rough property.
• You negotiate a decent offer price and the Seller accepts it.
• You then do the inspection.
• The inspection reveals a handful of major defects, some of which the Seller agrees to fix, others declined.
• You now are negotiating with YOURSELF and the SELLER–which items can you mentally minimize to convince yourself to get to closing table.
• Then you close on the rental property and get it rented with a new tenant.
• The new tenant settles in and begins paying rent.
• Then the new tenant begins reporting problems with the windows not working.  Crud…..you didn’t push the seller to get them fixed.  $$$$
• Then the new tenant reports problems with the kitchen faucet leaking.  Double Crud….again, your posterior muscle cramps up because you rationalized this as not being an expensive issue during the inspection phase.
• Then the new tenant reports {insert maintenance issue here}…..

Not only has your pro-forma been blown out of the water, but now you have a disappointed tenant who likely can’t wait to move out of your slumlord property, thus incurring you more vacancy expense, tenant turnover costs….Triple Crud.

So the take away for today?

1. Sharpen your pencil.
2. Grit your teeth.
3. Write out ALL your known expenses.
4. Grit your teeth harder.
5. Write out ALL the possible expenses that have a 50% chance of occurring.
6. Add all the numbers together.
7. Look again at your financial statement estimates.
8. Does it still work?

Only you can answer #8 truthfully…

Do you want help in your pursuit of Financial Freedom with rental properties?

Hire a property manager

If you have multi-unit properties or houses in several locations, it would be wise to seek the services of a professional property management company. They can be the ones to look for tenants for you, as well as address concerns of your lessees like maintenance and repairs. This will save you precious time and allow you to enjoy your retirement spending your hard-earned money.

Early retirement is possible with a well-managed real estate portfolio. Many people don’t realize you don’t need to wait until your sixties if you make the right investments. With carefully chosen properties and the right service partner to do the legwork, the only thing you’ll need to worry about is waiting for rental collections each month.

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Are you looking for a property management company in Indianapolis? 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.

You asked for them so we will be providing a monthly checklist – mailed directly to your email address. 

September Home Maintenance & Safety Checklist

🔲 Wash and Lubricate Your Garage Door

🔲 Check House for Areas Where Critters Can Get In

🔲 Plant Spring Bulbs

🔲 Service Your Yard Equipment

🔲 Toss Out Expired Items from Your Refrigerator

🔲 Toss Out Expired Meds (how to properly dispose of exired meds) and Vitamins

🔲 Create a Safety Plan for Natural Disasters

🔲 Store Summer Items and Replace with Fall Items

🔲 Clean Front Door and Decorate Entry with Fall Decor

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