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Tag Archives: finding tenants

6 Tips for Running your Rental Property

success with running a rental property

To make your job as a landlord easier and more lucrative, there are ways you can streamline your rental processes and protect your assets simultaneously. Running your rental property need not be stressful, and with a few key tips you can find great tenants and make the most of your investment. If you’re considering increasing your number of rentals, make sure you’re optimizing your current properties before expanding.  1. Using Property Management If you’d prefer to utilize the services of property managers, you have a wide variety of companies to choose from. Property managers can take away a lot of responsibility and stress from busy landlords. They can handle rent collection, eviction problems, and maintenance issues—meaning a whole lot of stress of your shoulders. Their services don’t come cheap—the usual fees range from around 7% to 10% of your rental income—but the cost can be a worthy investment for landlords that have other commitments which make face to face interaction with tenants hard. 2. Be Well-Informed Even if you use a property manager, you’re still liable for any broken legal regulations. Staying on top of local ordinances, state regulations, and federal laws will give you peace of mind and keep ...

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The FourPlex Is Rented!

four plex rental

For the first time since buying last December, the fourplex is rented! It was lots of work and stress, but what a nice feeling to have that final lease signed. The property has two buildings, each with two apartments. One of the buildings needed a some renovation with new flooring, electrical, paint, and light fixtures upstairs and a complete remodel with new construction downstairs. After two and a half months of work, we now have four, two bedroom apartments. Rental Income We had hoped to get $3050 in rent between all four units, and we’re pretty close at $2975 per month. We have one holdover tenant who was there before we bought the place, and we should be able to raise the rent $100 or so per month once he moves out. Our other rental house is currently leased for $780/month. The total of our rental expenses are around $2000 a month, so that means $1755 in profit. We also have our commercial rental that barely breaks even every month, but it will be paid off in four and a half years and should net another $3000 a month when that happens. Of course, we’re going to have bad months ...

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My Rental Property Strategy and Property Management

rental property strategy

There are many so called RE investors that pretend to cash flow, and they are not calculating any of the soft expenses.  Management, Vacancy and Maintenance are the big three.  Maintenance being a thing you can put off, and see profit, but it is in actuality deferred maintenance.   I allocate 10% of rents towards maintenance in my budgets, 5% for vacancy, and 7% for management.   And I expect ~15% ROI if I make the purchase. Most of my time in regards to the rentals is spent on turning apartments.  Bringing them back to as close to 100% as possible.  Sometimes it takes only a couple of hours, sometimes a bit more.  I turn many in a day, and often have zero vacancy between tenants.  But it is a bit hectic with a full time job.  If it is much more than a few hours, I have a damage deposit.  I can paint with the best of them, and can fix most anything any handyman can. When a renter is in, I would guess it averages well less than one hour per month, per tenant.  A property manager who charges $80 on a $1,000 a month rental would not put in ...

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