New real estate investors in Austin often have the same questions and run into the same problems. We recommend you begin working with a professional property management company before you identify and purchase your investment home. With professional help in the early stages of the process, you’ll have an easier time transitioning into a rental property owner.
Today, we’re sharing just a few tips that have helped the new investors that we’ve worked with.
Prepare Your Property for the Market
Once you have closed on your home and you’re officially an investor in Austin real estate, you’ll want to work quickly to get that property ready for the market and rented out to good tenants. Vacancy costs are expensive, and the money you’re losing on an empty property is money you’ll never be able to earn back. So, if your property needs work, make sure that work is done right away. Have it cleaned, take care of minor cosmetic updates and upgrades, and make sure it’s ready to attract the best possible tenants.
Price Your Property Correctly
New investors are often confused about how to price their rental property. You probably have an idea about what you’d like your property to earn every month, but the rental price is really market-driven. It doesn’t matter how much cash flow you’re after or what you’ll need to make your mortgage and tax payments. Evaluate the market thoroughly and check the prices for competing properties that are similar to yours.
This is something you should have done before you bought the property, so there shouldn’t be any surprises when you arrive at the rental range. You don’t want to price the home too low because then you won’t earn the cash flow that you want. But, you don’t want to over-price it because you’ll face longer vacancy times and lose the interest of well-qualified tenants.
Make Maintenance a Priority
Make sure that routine and emergency maintenance issues are a priority for you. Any deferred maintenance will only damage your home and drag down its value. It will also create frustrated tenants who feel like their landlord isn’t taking care of their responsibilities. When a tenant makes a maintenance request, respond to it right away, or at least let the tenants know when you’ll be able to take care of the problem. Handling problems while they’re small will save you money and avoid headaches. No maintenance issue ever became easier or cheaper with time.
Work with Professional Austin Property Management
Smart investors know that professional property management is the best way to earn more and spend less on a rental property. As residential managers, we have the resources and the experience to take care of everything from lease enforcement to property inspections. We understand the Texas Property Code and all the fair housing laws. Unless you’ve been in the property management field yourself, the learning curve can be difficult when you decide to manage your own property. And, your mistakes can be expensive.
We’d love to tell you more about our work with Austin real estate investors. Please contact us at AustinVestors Property Management.