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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!

Strange and Exotic Pets Your Tenant May Own

Most people that have pets, consider them part of their family. So whether or not your rental property allows pets can determine the number of tenants that will apply to rent there. Deciding whether or not to allow them is an important and personal decision. Today we are going to talk about pets you may not normally consider as a house pet but are legal to have in Texas.

What is considered an exotic pet?
For many a typical pet is a dog, cat or fish. These are common, however, some people love owning and caring for things more exotic. Generally an exotic pet is an animal which is relatively rare or unusual to keep. These animals are generally thought of as a wild species rather than as a pet.

So what are examples of some of these pets?

  • Lemurs
    When you mention the Lemur, people immediately imagine the Ring-tailed Lemur which is the most common species of this animal, which was made famous by the film Madagascar. These animals actually do quite well in captivity. In zoos, they are reported to be one of the easiest mammals to handle, they socialize well, interact with humans, and are not feisty.

 

  • Sloth
    Sloths are quite popular animals in Texas, as are their cousins the tamanduas. Sloths are known to be extremely sensitive to stress (meaning you should leave them alone) and they also require stringent attention to their environment.

 

  • Capybara
    The capybara is a giant rodent- the biggest in the family that includes rats, guinea pigs, and grass cutters of Africa. They have webbed feet, further proving their adaptation for water. These dog-sized animals love to swim and need a deep and wide water source to satisfy this need. Capybaras love their owners, and well-socialized individuals can let their owners show them off, even walking on a leash like dogs.

 

  • Asian Leopard Cat                                                                                                                                      Asian Leopard Cats are a wild species of cats that are found naturally in Southern and Southeast Asia. They are mostly recognized by their spots which make them look like small leopards. These cats, small but mighty, are challenging animals but are very loving to their owners

 

  • Axolotl
    Related to the salamander, the axolotl is best known for its ability to regrow all of its body parts, including its jaw, spine, and even its brain. So, for those that love interesting and exotic fish, the axolotl is a great choice. 

 

  • Hedgehogs
    Many people may not know that hedgehogs are actually exotic animals since many pets stores sell them as ordinary “pocket pets.” Hedgehogs have unique quills and roll up into a ball when threatened. Generally, hedgehogs enjoy socializing with owners.

 

  • Finger monkeys
    Finger monkeys are usually thirteen to fourteen inches long. They have a protracted tail that is even longer than the body. Marmoset monkeys are an excellent species of primates. They can live for fifteen to twenty years. They are one of the few species of monkey that are allowed to live as domesticated pets in some states

 

  • Iguana
    Iguanas are one of those exotic pets that require a significant amount of room to roam and climb. Adults live up to 20 years and easily reach nearly six feet in length. Thus, these reptiles need large enclosures with plenty of space to turn around and stretch out comfortably. For example, experts recommend that the enclosure is at a minimum of 6 feet high and two times as long as the animal. That said, many owners enjoy keeping this type of exotic pet.

 

Wondering if your rental property should allow more exotic pet options for tenants? Give us a call today and we can walk you through the pros and cons of a pet friendly rental property.


DESPITE INFORMATION SHARED IN THIS POST, ULTIMATELY IT IS UP TO THE HOME OWNER AND THE PROPERTY MANAGEMENT COMPANY WHETHER OR NOT TO ACCEPT CERTAIN ANIMALS.


http://www.texascapital.org/exotic-pets-legal-to-own/

Tips For Updating Your Rental Property

It’s no secret that future tenants look for the nicest place they can find when viewing potential rental properties. So what exactly do they look for? Are you a current rental property owner/ investor wondering if your rental meets those standards or does it need some work? Here ae some tips and tricks to get more traffic to your property with a few small updates.

Choosing The Right Paint

Bright colors are fun and appeal to some but it fits very few décor styles that people may have. For this reason you should go with more neutral tones but not just white walls!

It’s important in a rental to keep color tones light. Light paint colors will reflect natural light in a space and make the room feel larger. White is a common go to but should be avoided as a wall color as it can make a space feel overly sanitized and will show more marks if things touch the walls. Better options include a light beige or soft grey.

Example: Valspar Signature Satin Seashell Gray Beige 4003-1a Interior Paint
 
There are different brands and finishes to paint. It’s important to pick the right finish for certain areas of the home that will have the best holdup. For example:

  • Kitchen: High gloss or semi-gloss. Easy to wipe clean and durable.
  • Living space: Satin or semi-gloss. A finish that can hold up in a high traffic area.
  • Bedrooms: flat or matte. Lows traffic area so it won’t need to be as durable
  • Bathrooms: High gloss for rooms where moisture is present

Painting a whole rental property can become costly. However investing in a quality paint upfront can save you a lot of money in the long run.

Choosing The Right Flooring

Hardwood flooring can be a beautiful choice for a home. Different tones and styles are available.  The cost of putting in wood floors can range anywhere from $3 to $7 a square foot. It’s best to stay away from anything exotic, patterned or whitewashed. Your best choice would be blonde or honey tones.


Vinyl Plank Flooring is an alternative to hardwood. It more cost efficient, offers durability, water resistance and comes in a wide variety of tones and colors. However similar to hardwood, be sure to avoid colors and tones that won’t appeal to a large group of people. The best choices would be grey tones or light tones, similar to the walls and hardwood choices.
Example:


Tile has become a less common choice in recent years (except in bathrooms and kitchen backsplashes). However it is an easy option for cleaning. When choosing which tile for the rental property stick to timeless styles. Professional installation is key for tile because unleveled flooring can result in tiles breaking and costly repairs. Tiles cost $5 to $10 a square foot.


Carpeting can be the cheapest option for your rental but you do not want to put carpet flooring through the whole property. Keeping carpet in low traffic areas is the best option since carpet tends to hold smells that can deter renters. Once again sticking to lighter tones. Greys and off whites are recommended for colors of carpet.   Refrain from tans, as this can make even new carpet look old and dirty. Carpet it can range between $1 and $20 per square foot.

Example: Antique silver life proof carpet

Cabinet/ Backsplash color
Although you can invest a considerable amount of money into cabinets for a rental, wood tones have become out of style and can date a home quickly. One of the most popular home trends in recent years is painted cabinets with shades of blue and green and even though this is a great way to bring expression into the home it’s not recommended for a rental. The best choice is white cabinets. Which is another reason to avoid white in the rest of the home. This will make the kitchen space feel fresh and clean. It’s also a good idea to add a backsplash for easy cleaning from cooking.  Fall back on neutral backsplash colors including light grey and white.

Lighting

Adding a stylish light fixture above the dinning space or kitchen island can also add value to your newly painted home. Make sure this fixture matches current appliances. Other great places for lighting updates are in the entry way and common areas. This can included updated semi-flush light in halls and fans in the living room/bedrooms.

Example: Clear Glass Globe Betty Pendant Light (placed above Kitchen Island or dining area)




Along with choosing the right design for your rental property it’s important to choose the right property management company to help you get the most out of your newly designed rental! Call All County Property Management Group today so we can tell you how our services can help!

Rental property pricing in seller’s market

It’s no secret that we are in the middle of a crazy seller’s market. Many people have not seen the real-estate market this way in years or ever! The prices for homes continue to skyrocket especially here in the DFW area. Supply cannot keep up with the demand which is causing many people to turn from buying to renting. So where does this leave us with rental properties? Read below find out!

Sellers’ vs. Buyers’ market?

When the demand for homes is higher than the supply this causes a sellers’ market. 2020 brought interest rates to a record low. However with the effects of the pandemic slowing new home building and fewer homes on the market we have seen a huge jump in prices. Thus creating a market where sellers will receive multiple offers well above asking price, leaving many buyers unable to compete.

When the supply is higher than the demand, we will see prices slow or drop. This is considered a buyer’s market.


How will it affect rental pricing?

Even when/ if things return to normal soon there is still the long term effects that will continue to be seen in the housing market. Because many people are unable to tap into the market due to low supply and high price they have turned to renting for the time being. So now demand for rentals has gone up. Because of this you will see rental rates increasing as well. Research has shown that in the past year one bedroom rentals have increased in price about 5% which is exponential in comparison to the gradual 1% increase we see each year.


How to calculate.

So as a property owner you may be wondering what you can charge for your rental amount. Rental price is based on three things. Location, unit type and size of the home/ unit. Although this does not include amenities and local demand, this can offer a good starting point when determining what to charge.

Other factors to consider:
-check out the competition in the area
-consider the amenities (washer, dryer, updated, energy efficient, outdoor space, pool)

Follow the 1% rule
Which generally means the rent rate is approximately 1% of the cost of the home.  (Ex: home cost $180,000 = rent rate of  $1,800 a month)

 

The easiest and best way to get your property rented

Use All County Property Management Group for all your property management needs! Are you worried about setting the right rate, listing the property, filling vacancies quickly, screening tenants, or other issues? In addition to helping you with the items listed above, we are here to guide you every step of the way as we all bounce back from the pandemic. Give us a call today to find out more information!