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Short Term Vs Long Term Rentals

While most property owners choose to offer tenants yearlong lease agreements there are those owners that prefer month-to-month lease agreements instead. But why?

If you are curious about the pros and cons of month-to-month lease agreements vs a yearlong, and questioning what the better option is for you and your property then continue reading below.

Typically, when you are discussing lease options your most common option would be a 12-month lease with the option to renew close to the end of your lease term. However, a month-to-month lease is a 30 day or 1-month contract that typically renews automatically each month until the resident decides to move or the owner decides to not continue offering the lease the following month. This is generally a popular option for a tenant that may be moving to the area and just needs temporary housing until their property is available or finished.

Now, we will examine both the pros and cons of offering month-to-month lease agreements.

Pros

  • Flexibility: One of the biggest reasons property owners like to offer month-to-month lease agreements is because of the flexibility this type of lease offers both themselves and their tenants. This will give the owner and the tenants the ability to “break” the lease at any time they need.

  • No More stress about bad tenants: There is nothing worse than placing a bad tenant in your rental property. Without being tied to your typical 12-month lease, you are not required to keep them any longer than you want to. You can easily get rid of them by providing them with a 30 or 60-day non-renewal notice.

 

  • Premium Rent: Many renters are aware that choosing to go with month-to-month leases means that the rental rate will be higher each month compared to what it would be in a 12 month leased property. The premium rental rate will typically offset any cost that is occurred from changing the unit from one tenant to the next.


Cons

  • Higher turnover rate: When you have month-to-month renters you potentially could have a new renter each month. This means between each tenant you will need to get the unit ready. As we discussed above, the higher rent rate should cover these costs, however, there is always the chance that a ternate could completely destroy the property in the short time they are there. This could potentially mean paying for carpet replacement and full paint jobs versus touch-ups.

 

  • Difficulty placing new tenants: Because previous tenants only require a 30-day notice before leaving this could become a challenge when finding a new tenant to move in right away, which may mean you go a month or two without that income coming in.

 

  • More wear and tear: If you are constantly moving tenants in and out of the property, there will likely be more dings on the walls and floor from constantly moving things in and out.

 

Ultimately, owning rental property is a lot of work and full of tough decisions. Plus, Drafting, and enforcing a lease agreement can be challenging for even the most experienced property owner, regardless of whether you opt for a month-to-month or yearlong lease agreement.


There are pros and cons to both a month-to-month and a 12-month long lease agreement for your rental property, and what will work best truly depends on your needs as a property owner. However, self-managing your property does not have to be an added stress to leasing your rental.


If you are looking for guidance or need help drafting the perfect lease agreements for your month-to-month tenants or yearlong ones, contact All County Property Management Group today!

Why Landlords Shouldn’t Try to Manage Their Own Properties

Choosing to get started in the rental property industry can be an exciting time! There is so much that goes into this decision and a considerable amount of time dedicated to getting the property and business up and running.


You may be thinking that you can handle it all on your own. You may be saying you will have complete control over everything that takes place at the rental property. You probably think you will have constant contact with your tenants and have a little more cash flow by not hiring a property management company, right? 

Wrong! Managing your property on your own is NOT the best option!

We are going to discuss the reasons why you should NOT attempt to manage your own investment properties, and how handing over the reins to experts will ultimately save you time and money!


All County has the expertise.

The ins and outs of property management can be tricky. And without knowing the laws and how the whole process works you could run the risk of:

  • Hiring fly by night vendors to make repairs
  • Using ineffective advertising techniques
  • Violate fair housing laws
  • Improperly screen potential tenants
  • Implement poor rent collection policies

 

Property management is a business.

As your number of properties increases so do your responsibilities. Some aspects of your life may need to be placed on the back burner such as your job, family, social life, free time, etc… Are you willing to adjust your priorities?

 

Customer service makes a difference.

Customer service is a vital component in gaining and retaining residents.  If you are not the type of person who wants to deal with the headaches that come with evictions, complaints, and maintenance requests, you should not manage your own rental properties.

 

More Convincing 

For those of you that are still hesitant about handing over the work to a property management company:

  • The location of your properties span far and wide, requiring extensive travel commitments
  • The condition of your property is not pristine, which means repair requests may be regular and often-occurring
  • You are unsure how to add extra curb appeal to your properties to attract high-quality tenants
  • You don’t know how to draft legally compliant lease agreements

 

Altogether, hiring a property management company such as All County Property Management Group to manage your DFW rental properties far outweighs the benefits that come with managing properties on your own.

In addition, services such as tenant screening, vacancy advertisement, lease drafting, and round-the-clock emergency maintenance line, plus in-depth knowledge of the DFW market. This and much more is what All County Property Management Group provides their property owners.

Pros and Cons of Purchasing an Investment Property With Cash

Do you have a large amount of extra cash lying around? Have you considered investing in a rental property? Yes? That’s great! It’s a wonderful business to be in. But purchasing an investment home in cash isn’t for everyone. How could it not be you ask? Well, we are going to go over the pros and cons of purchasing your rental property in cash in the article below.

First, let’s go over some of the reasons investors may choose a cash transaction.

  • Can’t compete with cash: In such a competitive real estate market, cash offers will get sellers’ attention. Cash offers will generally close faster and will not come with the same restrictions as financed offers which can help beat out the competition. Plus if you have all cash you sometimes can negotiate the price down.
  • Limited expenses: In such uncertain times, it may appeal to investors to not have to rely on monthly rent payments in order to pay the mortgage. This will help in the event a tenant leaves and quits paying rent or for extended vacancy times.
  • Less hassle: Dealing with the bank can slow down the buying process, thus causing investors to lose out on opportunities. Cash sales are very straightforward in comparison.

    Pros
  • No interest payments: Even though current interest rates are relatively low investors who do not pay in cash will end up paying more for the home in the long run.
  • Fewer properties to manage (normally): Generally speaking, if an investor is able to pay cash they will typically have fewer investment properties. Depending on the town/ city they are investing in, a home can range from 100k+ which means the property won’t be able to put cash on as many properties as those who choose to finance the home and put less cash down.
  • 100% equity: Owning a rental property immediately means you (the investor) holds 100% of the home’s value in equity. Without having the monthly mortgage payment you are free to invest in upgrades to the home as you wish.
  • Immediate cash flow: You will also be able to receive immediate cash because it will all be coming to you. Though there may be some bills that you as the property owner may still be tied to, such as lawn care if that’s included for your tenants and general maintenance upkeep you can typically depend on most if not all the rental amount coming right to your pocket.

    Cons
  • No leverage power: This means you will not be able to use other people’s money to invest in your rental properties. This will free up your own money for upgrades or investing in multiple properties.
  • Fewer tax benefits: Come the spring it is time for taxes. Having a mortgage can actually work to your advantage. Any money that owners pay in interest towards a financed rental can be deducted against the income from the property. So, investors may not have much tax liability after all deductions.


Things to consider                                                                                                                                                                                               

  • Benefits and Risks: There are benefits and risks to purchasing an investment property with all cash. While real estate can easily appreciate it can just as easily depreciate in value. One can result in a gain and one can result in a loss. Just something to always consider when potentially investing.
  • Property Management Company: while there are many pros to purchasing your rental property with cash there are also some cons to consider as well. A savvy investor knows that managing a rental property is a lot of work. And with that extra monthly income, it is wise to consider hiring some help. That’s where we come in! All county property management company is here to help with everything from tenant applications and screenings, advertising and marketing, maintenance, paperwork, move-in and move-outs, inspections, and more. Give us a call today so we can help you get the most from your investment property.

 

Recent Rental Property Investment Trends

Purchasing a rental property is an exciting investment. When choosing where to purchase you need to factor in job growth, population growth, and affordability. Keep reading to find out major property investment trends we have seen and will continue to see in the coming years.


Widening The Rental Demographic
Renting has generally been seen as a stepping stone for the younger generation before they are able to purchase a home. However, with increasing housing prices and wages not keeping up with the housing market this dream is being pushed back for many. With that said, the idea of renting has become more appealing to people of all ages. Many people also enjoy the flexibility of renting without being tied to one area for too long. According to ‘Rentometer’, close to 45% of renters are over the age of 45.

Appealing to Gen Z
Though we are seeing people of all ages renting, it is wise to still target the younger generations. You do this by focusing on the technology that is offered at the property (wifi, security systems, online rent collection, online service orders, .etc.)

Rental Growth Uncertainty
With the Covid 19 pandemic and now the delta variant, there have been devastating effects on the financial capabilities of many people as well as the rental market. We have seen a large increase in unemployment as well as an increase of people wanting to rent to avoid overpaying for a home in the current real estate market. This means they will turn to rent instead. We are unsure what the rest of this year will bring at this time.

More Real-Estate Investors
Generally, real estate has always been considered a good investment. Unlike things such as the stock market, purchasing real estate is a great way to guard your assets. Some people that haven’t been hit as hard by the pandemics’ long-term effects may be in a stable position to purchase a rental property. The need for rentals is high, the rent price is rising and interest rates to purchase are dropping. Making this the perfect time to invest in a rental property.

Top 5 Places for Real-Estate Investors in 2020/ 2021
1. Austin, Texas
2. Raleigh, North Carolina
3. Nashville, Tennessee
4. Charlotte, North Carolina
5. Philadelphia, Pennsylvania

Purchasing an investment property can be a hard decision. That’s why it is always important to look at current market trends. All profitable investment locations should have stable job growth, population growth, and affordability! Do you need a trusted property management company to guide you through the stress of managing the property? Give All County Property Management Group a call today!

Keyless Entry at Rental Properties, Good or Bad Idea?

 

When it comes to protecting your home you may put in high-tech security systems, multiple locks, and cameras. But what about at your rental property? What makes the most sense for protecting this property in a cost-efficient way? You will see that in recent years the keyless lock systems have become increasingly popular! However, what are the pros and cons of these systems at a rental property? 

Pros

  1. No Physical Key Required

      2. Less Risk of Lock Out 

      3. No More Key Under the Mat

      4. Tracking System Included

      5. Easy Access for Family and Visitors

      6. Added Amenity for Potential Tenants

      7. No More Changing Locks

As you can see there are many pros to going keyless. Some would also argue that this makes the home safer by reducing the risk of a key getting lost or stolen. The code to an electric door system can also be changed between tenants which makes it cheaper in the long run as opposed to changing the locks in between every renter. This is also considered a higher-tech feature as the tenants will be able to track when people come and go from the home. This will likely appeal to more people when choosing properties to apply for. 


Cons

  1. There Are Still Accessories (app control, backup key, Extra batteries) 

      2. Keyless Entry Systems Cost More

      3. There is Some Maintenance Required

One of the biggest cons to a keyless system is that the upfront cost will be higher (couple hundred dollars). Though in the long run there will be less money spent on lock changes, there is a higher upfront cost. You will also need to maintain a master list of codes and be sure to change them frequently to prevent wear on certain buttons. When the same button is used continuously it can cause individuals to figure out the code, making the home less secure. 


Protect Your Rental Property with Professional Management

As a rental property owner, your home is your most important investment and you want to protect it. On top of adding security systems, it is a good idea to have a property management company to protect your investment as well. Our team here at All County has your back with advertising, paperwork, screening, maintenance, and more. Give us a call today so we can help protect your investment property!