Posts Tagged :

property management tampa

150 150 Relevé Real Estate

It’s Not You, It’s Not Your Home, It’s Your Real Estate Agent

pile of cash

See this pile of cash? It doesn’t belong to you and you know why? Your realtor is being unrealistic and greedy about your property.

We have a client who is interested in a townhome in a particular area. We have one in this neighborhood and know without a doubt the competition is over-priced. Rentals sit 6-months, 8-months, 1-year or longer vacant. Why? Your rental is over-priced. Period.

I called a realtor to ask about a rental that has been listed and vacant for 6 months to see if the owner was flexible in the price. I told her that I had a great client interested in the home, but wanted to pay a more reasonable rent for the unit. With disgust, I was told that the building covered all utilities which was included in the rent. I told her I knew that was not true because we have the exact same property in the neighborhood. Well not the same. Our is updated and upgraded. She then back-peddled and said well the owner wants to rent it furnished only. On the MLS listing, it states “furnished, but will consider unfurnished.” So the ad was misleading or the realtor was a liar.

I asked again about the price. I stated about the home being listed for 6 months and sitting vacant. Is the owner flexible? Again, I was given the run-around. Never once did she say she would present an offer to the owner.

Can this realtor read minds? I can’t. As property managers, we present all offers to owners. Ultimately the decision lies with you, the owner. You should decide whether to reject or accept an offer. Not a realtor.

I believe putting the owner in the driver-seat is what gives us so many happy clients and great reviews.

I never asked what the commission would be on the property. I never wanted a commission. I wanted to find a home that met my client’s needs.

Did this realtor ever stop and think, “my client has been losing thousands of dollars because his home is sitting vacant?” No. She heard reduced price, saw her commission drop and never consulted the owner. Would the owner accept a lower offer? We will never know because he will never be asked.

My client never saw the property or put an offer in. Why? A realtor discouraged an amazing tenant from a property that needed a renter.

So, this pile of cash continues to sit untouched.

For honest, reliable property management in Pasco, Hillsborough, Manatee and Sarasota counties, Florida, We Manage Your Investment.

150 150 Relevé Real Estate

Real Estate Wins in Tampa Bay

Real Estate Wins

Real Estate Wins

So you have $100K.  What do you do with it?

You could put it in a money market savings account with an average return of 0.30% APY.  After one year you will have earned $300.

You could put it on a CD with an average return of 0.50% APY.  After one year you will have earned $500.

For an IRA, you are still looking at 0.50% APY.  After one year you will have earned $500, but withdraw it early and you will be taxed heavily.

You could buy gold as the commercials will tell you, but gold has doubled in price over the last 2 years and this isn’t 2009.

You could give it to your broker to invest, but the stock market is turbulent and if you are getting a 4-5% return, you are doing better than 95% of investors.  After a great year in the stock market, you will have earned $4,000 – $5,000.

But if you take your $100K and buy a bank owned property.  Let’s say you find a 3 bedroom house in a decent neighborhood and negotiate with the bank for $90K.  You spend another $10K on closing costs and fixing the place up.  You can then rent it for $1200 per month.  In this example, you don’t have a mortgage, since you had $100K to start with, so you only pay taxes and homeowner’s insurance.  Say your taxes for the $90K home are $2000 per year and insurance is $1000 per year.  Your monthly expenses are $250 per month.  Your gross income is $1200.  Your net income is $950.  After one year you will have earned $11,400 for an 11% return on your $100K.  Where else are you going to get that kind of return?

Real Estate also has the advantage of tax breaks through paying a mortgage or deducting expenses on the property.  Appreciation is a thing of the past, but if you buy under market conditions and have the cash flow to hold it for 10 or more years, you will make money when you sell it.

Even in the Great Recession, Real Estate still wins.

For expert property management and real estate services in Tampa, Lutz and Land O’ Lakes, Florida, contact Relevé Real Estate and Property Management

150 150 Relevé Real Estate

Tampa Investment Property Returns

Tampa Investment Property Returns

Tampa Investment Property Returns

During the peak of the housing boom in 2004-2006, many investors were diving into properties that they knew would not generate a positive cash flow.  Taking a monthly loss on a property was no big deal when they could sell the property three months later and make $30K. The few flippers’ who timed the market right, made a killing, and the rest got killed.

When you buy a property today, it is important to calculate your Tampa Investment Property Returns. You are not building equity only through appreciation, and the property values are going down faster than you can pay the mortgage principal balance. The tough lesson learned from the housing bust is that the cash flow analysis should be the determining factor in purchasing real estate.  The analysis tells you if the property will generate income for you (asset) or cost you money (liability).

If you want to be a real estate investor, you must focus on acquiring assets that generate a passive income.   If you are making money each month, then it does not really matter if the market goes up or down.

In Rich Dad, Poor Dad, Robert Kiyosaki tells the story of when he wanted to buy his first rental property. His ‘rich’ dad refused to invest with him because the property did not generate at least $100 per month of income.  Kiyosaki thought that the property was a good buy because he could eventually raise the rent, the property would appreciate, or other factors would work in his favor, but his ‘rich’ dad knew better.  He knew that things do not always work out the way you plan them and that you make your money when you buy a property, not when you sell.

As a beginning real estate investor, I told my real estate agent that I would not buy anything that did not generate at least $100 in monthly cash flow, but would buy anything that would.  We were able to find 3 properties where the numbers worked out, and I was soon generating a passive income.  When the properties doubled in value two years later, it was a good bonus, now that they have gone back to the value that I originally bought them for, they are still a good investment and continue to generate income.

It is essential that you do a cash flow analysis of any property you are going to buy.  Make sure you talk to a rental manager to determine what the rental rate is for the property and what they think it will be in the future. Factor in EVERY COST of owning the property: mortgage, taxes, insurance, mortgage insurance, flood insurance, homeowners association dues, maintenance, vacancy, for rent advertising, property management fees, and unexpected emergencies. If you are still generating, at least, $100 per month, then go for it.

Wounds in real estate are usually deep and take a long time to heal.  But if you learn from your mistakes, it can become the valuable experience that will make you a savvy investor.

150 150 Relevé Real Estate

Florida leads House Flipping

Florida leads House Flipping

Recent Data from RealtyTrac shows an increase in year over year house flipping.  This is when an investor buys a property and then sells it less than one year later.  The investor usually has to do at least some cosmetic improvements and is likely to make a profit from the sale.

With the increase in flipping, Florida cities dominate the list of the top areas for home flipping.  Florida had record numbers of foreclosures and houses are still not keeping up with demand, so the statistics make sense that there would be an increase.  However, house flipping also reached a peak right before housing crashed in 2008-2009.  Many investors took substantial losses on speculative home flips.

However, house flipping also reached a peak right before housing crashed in 2008-2009.  Many investors took substantial losses on speculative home flips. The current list is showing 25- 50% year over year increases in home flipping in these cities.   To be successful in house flipping, you need to do an effective analysis on what the costs will be for you to purchase, renovate and hold the property and then know what the market will support for a sales price.  Generally a real estate investor is expecting to make at least 25% profit before they take on a house flipping venture.

Before investing you should talk to a local, Lutz, FL real estate and property management company to advise you on purchasing, managing and selling your investment property.

Here are the Florida cities mentioned in the list.

17. North Port-Sarasota-Bradenton, Florida

 15. Palm Bay-Melbourne-Titusville, Florida

14. Crestview-Fort Walton Beach-Destin, Florida

11. Pensacola-Ferry Pass-Brent, Florida

9. Deltona-Daytona Beach-Ormond Beach, Florida

8. Ocala, Florida

4. Homosassa Springs, Florida

3. Jacksonville, Florida

1. Lakeland-Winter Haven, Florida

150 150 Relevé Real Estate

5 Reasons to Avoid a Property Manager

5 Reasons to Avoid a Property Manager

5 Reasons to Avoid a Property Manager

The life of a real estate investor is about creating a passive income and stream and achieving financial independence. If you are managing your own real estate portfolio, you have just created a job for yourself.

When purchasing an investment property, you should factor in an 8-10% monthly management fee, as well as room for unexpected maintenance. Having a great property manager is a sound investment in achieving your goals and owning your time. Although, hiring a bad property manager, can make things very bad, very fast. To help protect your goals and your investment, avoid these property management red flags:

1. No References. Property Management has traditionally been a referral based business and the manager should have strong relationships within the local community. They should be able to provide references from tenants, owners, local organizations or vendors.

2. Unavailable. A property manager’s responsibilities are 24/7. There are problems that will arise at your property on nights, weekends and holidays that will need attention. Make sure your property manager approaches their services this way.

3. Conduct. The property manager should be able to convey confidence in the value of his services, and be professional. If the manager is not professional with you, they probably will not be with your tenants and vendors.

4. Successful Experience. Rather than having many years of experience, look at the amount of successful experience a property manager has. They should be able to give examples of their processes and how they are going to deliver the services they promised. It is important that they can change rapidly with the rental markets, technology and regulations.

5. Sales Pressure. If a property manager is forcing you into making a quick decision or seems desperate for your business, these are signs of running. A good property manager will give you time to collect references, get quotes from competitors and will work with you to determine if the relationship is a good fit.

150 150 Relevé Real Estate

Tampa Bay Living

tampa bay living

Tampa Bay Living, these are neighborhoods laid out in the more traditional sense. I will speak about some of them. South

South Tampa has historic homes, townhouses, condos, and luxury lofts. Everything from festivals to live music and an active night life.

Ybor City. Ybor has “modern and renovated condos, townhouses, and lofts.” Ybor also has restaurants’ and shopping. Looking for the business district? Downtown Tampa is your place. It offers lofts and high rises for places to live in, and with places of interest to see, like the children’s museum. If you want suburban/residential, then you like these areas, New Tampa has lots of ranch style houses and “family friendly neighborhoods” Brandon is a “Typical suburban community” and it has “everything from apartments to homes.”

If you want suburban/residential, then you like these areas, New Tampa has lots of ranch style houses and “family friendly neighborhoods” Brandon is a “Typical suburban community” and it has “everything from apartments to homes.”

Brandon is a “Typical suburban community” and it has “everything from apartments to homes.” It’s like any place, depending where you live will depend on how quiet the community is, or if you are near restaurants, shopping, and bars.” Lithia/Fishhawk Ranch “offers condos, townhouses, ranch-style, and new-bungalow style housing in basically all price ranges, and is a very family oriented community.” It along “

Lithia/Fishhawk Ranch “offers condos, townhouses, ranch-style, and new bungalow style housing in basically all price ranges, and is a very family oriented community.” It a long drive to the hot spots like South Tampa, Ybor, and Channelside.” Finally there is Plant city.

Plant city is known for peace and quiet because the houses are further apart. Which place or neighborhood would you choose from each city?

150 150 Relevé Real Estate

Rental Value Tampa

rental value tampa

Determining how much someone is going to be willing to pay for to rent your investment property has become increasingly more accurate.  Rental Value in Tampa Bay can be hard to determine if you are just looking on the web.

Our current software compares actual rental rates of comparable properties in the local area.  The software company has many clients and can run generic reports for actual market value and rental rates.  This is superior to an estimate on Zillow, Craigslist or other listing services, because you find out what people are actually paying, rather than what a property is listed for.

There are many factors involved, but no one really knows how much someone is willing to pay, until they actually pay it.  Then that is how much it is worth.

For example a property may be listed for $1500 per month, but then the owner may cut a deal and end up renting it for $1300 per month.  All listing sites have to go on is the $1500, not the $1300, so you may find your expectations are higher than they should be and you may end up sitting with a property vacant for longer than necessary.  This can work in the other direction with finding that some properties may be underpriced. Reports should be run on your existing portfolio to determine if your rental rates are keeping pace with the current market.  There are many factors involved, but no one really knows how much someone is willing to pay, until they actually pay it.  Then that is how much it is worth.

Many properties are advertising top rents and have been on the market for over six months by their tampa property management company.  From a simple investment standpoint, 6 months of vacancy is going to cost a lot more than renting the unit for $200 less.

Example:  asking rent $1500 per month.  Vacant six months.   $1300 vacant one month.  Over the five months the unit was rented, the owner collected $6500.  Would you rather your property manager make you feel good, tell you your property is great and that they are ‘connected’ and can get top rental value.  Or would you like the $6K in your account?

In the current market, there are record numbers of bank owned properties, that means record numbers of displaced people.  Since supply is low, demand increases and rates are expected to increase.  rent hikes

Vacancy will kill your portfolio.

This way the market determines the maximum amount that your property will rent for.

150 150 Relevé Real Estate

Investment Property Vacancy

 

investment property vacancy

The current rental market remains strong with rental rates at their highest levels.  Your exposure to investment property vacancy should be very small. The record number of foreclosures in the late 2000s have left many families still unable to purchase a home, bank owned properties sit empty and mortgages are more difficult to qualify for.  Finding an affordable rental property has been a difficult thing to do with a high demand and low supply of available homes.

In these type of market conditions, properties shouldn’t be sitting vacant long in this market.  Most of our clients have new leases started the day after their old tenant’s lease ends.  With 60 days notice and a strong rental market, your vacancy rate should remain very limited.  Any good property manager should, on average be able to rent your property in 2 to 3 weeks, if not, something is wrong.

When I look at properties online I see some that have been vacant for 200 to 300 days??   Seems quite odd and I believe it is mainly from real estate agents telling people what they want to hear and not being responsive to prospective tenants.

This rental market will remain strong for the foreseeable future, but won’t last forever.  Investors should be maximizing  their opportunities while they are there.

For Expert Property Management in Hillsborough and Pasco Counties contact Relevé Real Estate and Property Management.  Elevate your expectations.

Tampa Bay Rental Home
1024 819 Relevé Real Estate

Tampa Bay Rental Home Demand

Tampa Bay Rental Home

 

The Tampa Bay Rental Home Demand continues to accelerate.  Contact the local agents at Relevé Real Estate now for expert property management.

The current tenant called and gave their 30-day notice they would be moving out.  Immediately the ad went up and 24 hours later we had an application in on the property for $200 more than what the current tenants were paying.

Although this is a fast example, the Tampa Bay Rental Home demand for rentals has been soaring, where homes in good areas are only staying on the market 2 – 4 weeks.   Many prospective tenants are aware of how quickly properties can go, especially in Lutz and Land O’ Lakes, where they know they have to immediately jump on something they like before it is gone.  Owners are reaping the rewards of their investments like never before.  No vacancy and increasing rental rates are keys to investors success.

From Wikipedia, Tampa is a city in and the county seat of Hillsborough County, Florida, United States. It is located on the west coast of Florida on Tampa Bay, near the Gulf of Mexico, and is part of the Tampa Bay Metropolitan Area. The city had a population of 346,037 in 2011.

Census data showed an average annual growth of 2.47 percent or a gain of approximately 97,000 residents per year. Between 2000 and 2006, the Greater Tampa Bay Market experienced a combined growth rate of 14.8 percent, growing from 3.4 million to 3.9 million and hitting the 4 million population mark on April 1, 2007.A 2012 estimate shows the Tampa Bay area population to have 4,310,524 people and a 2017 projection of 4,536,854 people.

If you had a tenant turnover and had your property sitting vacant for a month, then you would have to cough up the money for the mortgage, putting a $1000 –$1500 loss on the books, then it takes you a month to make it up and can kill your cash flow for the year and losing out on Tampa Bay Rental Home demand.

For property managers who manage your property as if it were their own, contact Relevé Real Estate and Property Management.

land o' lakes home
1024 757 Relevé Real Estate

Get Offers on Your Land O’ Lakes Home

Once you have decided to sell your Land O’ Lakes Home, you must figure out at what price to list it at.  There are many things that can affect the price of the home.  The time of year, buyer or seller’s market, curb appeal, recent sales in the area and how motivated a buyer is.  Getting it right is the first step towards having a successful closing.

Time on Market

If a property is on the market for a long time, this can be a negative factor for home shoppers.  They often wonder why it would be sitting so long, why has nobody bought it, why did sales fall through?  Have they gone through multiple realtors and multiple pending offers?  Buyers can automatically think that a there is something wrong with the home if it has just been on the market too long.  Many sellers make the mistake of pricing their Land O Lakes home to high, which can lead to long times on the market.  You may think that this is giving you some room to negotiate, but it is actually eliminating you from certain buyers searches.

Search Criteria

By pricing your Land O’ Lakes home to sell, you will show up in more search criteria for potential buyers.  For example, if you are hoping to get $310k for your home and you list it at that amount, but you would actually be happy with $300k, you would be eliminating all potential searches of your home by buyers whose budget is $300k.  It is better to show up in as many searches as possible, get potential buyers looking and viewing the home and then you have something to work with.

Just because a home is listed for a certain price does not mean that is what the home actually has to sell for.  The listing price is just the first step in the negotiation.  If there is a ton of interest in the Land O’ Lakes home, buyers can actually get into a bidding war, with your home ultimately selling for higher than list price.  Better to have options in your home sales.

The Price is Right

Work with your agent to get a comparative sales analysis for your home.  The agent will run comps to see what has recently sold in your area and how they compare to your Land O Lakes home.  Many factors come into play as far as the conditions of the home, upgrades, renovations, square-footage, lot size, curb appeal, etc.

Factor to Price

The condition of the home compared to the recent sales in the area gives you the best starting point for listing your home and beginning to get offers to consider.  Have there been any recent improvements to your Land O’ Lakes home?  Many small investments can add value to your home and ultimately your final sale price.  Screening in a porch or adding a fence can give you a significant return on investment.  Installing smart thermostats or smart security features can really make a buyer feel like your home is special.

Work with a Relevé Real Estate agent to price your Land O’ Lakes home to sell and get offers immediately.