Condition of Property Checklist... Does your Property Manager Use It?

Why is condition of property checklist is important at move in...? If you have rental property you are allowing someone to occupy your property and withholding a deposit to secure collateral against unpaid rents and damage to the property. Collateralizing against possible damages is important because trying to get your money for damages after the fact is a little more difficult. This keeps everyone honest but the single largest missed item is the move in checklist. Perhaps the most important precursor to signing a lease agreement is the proper completion of a property condition checklist PRIOR to your tenant’s move-in. This way both parties are in agreement on the property condition prior to move in and acts as a clean slate. 

Upon the tenant moving out, the landlord or property manager is expected to do a walk-through of the premises and determine which, if any, damages are beyond normal wear and tear. If any damages are found to be a result of the tenant’s occupancy, you may charge the amount required for repair to their security deposit.  Any damages which exceed the deposit amount should be pursued through either small claims court or a collection agency.

If you own property and you are not getting regular property inspections and a move in condition checklist you are putting yourself at greater risk of being stuck with the damages even if you collected a deposit. If you would like to know more about this and other processes we have in place to protect our clients please contact us today for a free estimate. 

We can be found at www.865Properties.com 

What to look for in Real Estate Investing...

For more information on this subject please read the linked article.

What do Real Estate Investors Looks for in a Property on Investopedia: http://www.investopedia.com/ask/answers/100214/what-do-real-estate-investors-look-property.asp

Real Estate investing is one of those things that takes a little experience to see past the dirty carpet or holes in drywall. I know it takes looking at properties and working with your team to determine what is the best property for you and what fits your tolerance for risk. Warren Buffett said "You have to learn to become an investor if you want to become wealthy". This quote is VERY accurate because #1 if you never throw a pass you will never score a touchdown so you have to take a chance. Any investment that has a significant upside will have risk but you need to learn to manage those risks in your strategy. Try not to buy sign unseen, working with a realtor and contractor that can also give you professional opinions of repairs etc. #2 is that you never stop learning. The market conditions are always going to be changing and so should your strategy. We ALWAYS recommend working with an experienced realtor to get insight about the marketplace.  And an experienced realtor can gauge a good market value based off comps and recent sales.

Warren Buffett also said "Never depend on a single income. Make investment to create a second one". This is why we believe in our model to help families achieve financial freedom. Our advice is to develop a strategy you are comfortable with and go with it. We can help guide fair rental rates so you can know a rate of return on your rental property investment. At 865 Properties we will manage the property day to day so you can work your 9-5 job or do what it is you do best and we will manage your property so its an asset in your investment portfolio. Your time is more than likely your most valuable asset so we place a fixed cost on our management and you can be free to spend more time with your family or work your day job etc. We also offer different management packages based on the level you want to be involved. Some want to do their own repairs while others simply want us to handle everything. We are happy to do both and will work hard to achieve the results and expectations of our customers. Please stop by our website for more information about 865 Properties - Property Management and how we can help you.


www.865Properties.com

Long Term Real Estate Investing - 865 Properties

So I read the article from Bloomberg published on August 4th. (http://www.bloomberg.com/news/articles/2016-08-04/landlord-nation-boomers-new-retirement-plan-is-millennials-paying-rent)

I think there is a lot of truth in today's economic climate about people wanting to find alternative ways to invest for retirement or financial security. If you think about the rates of return and constant ups and downs in today's marketplace you can easily see why a double digit rate of return on your investment makes sense. Let me explain how we come up with these numbers... I will give you an actual scenario on a rental property currently in our portfolio.

Purchase price: $104,000
Total Investment: $24,000

Mortgage Payment: $549 Monthly (using 80k at 4.25% @ 30 years plus tax and homeowners)

I am currently renting this property for $1,050 a month. This leaves me after property management fees with a positive cash flow of $396 a month.

This leaves me with an average rate of return over the past 5 years of 15% on my initial $24,000. These figures also do not include the potential tax benefits of the mortgage interest write off and the value increase of my property and equity which is currently valued around $130,000. You can use the additional monthly money to pay down the mortgage or build a portfolio for income now. As you can see by doing this formula a number of times can snowball into a nice retirement or steady income in retirement. AND I have no rental management headaches.

If you would like to learn more about our investing strategy or assistance in getting more return on your existing real estate investments please contact us and we can work with you and your realtor.

www.865Properties.com  

865 Properties, LLC - A Knoxville, TN Property Management Firm

Hello and welcome... This is a blog for property owners and all about real estate investing, ownership, landlords and property management. At 865 Properties, LLC we are a Knoxville, TN based property manager working on behalf of our clients to secure good tenants and helping them manage the day to day tasks of owning an investment property. We help our clients achieve a higher rate of return on their investment and preserve this by lower turnover rates on tenants and obtaining top tier rental value. 865 Properties also works with your realtor to help develop a game plan to secure a property in a high rental demand area while planning within a budget and set of guiding principles for profitability.

By hiring a property manager you can act as the investor and CEO guiding the professionals acting on your behalf. This helps you see the big picture without being tied down with the task work of day to day property management. We'd love to help you achieve your financial goals and we'd love to show you how we can do it. Please feel free to stop by our website and contact us for a no obligation review. You can trust we have your best interests in mind and will work hard to obtain maximum results. Visit us today at www.865Properties.com to learn more.