As an owner, you have plenty to think about when it comes to buying or selling property. At HARRELL Group Real Estate Services, we use our combined experience to give you reliable, relevant information upfront—removing the stress that may come alongside this big venture. Looking at renting your property? We’ve got the tools to do it for you. See our complete guide below, and as always, please contact us at anytime and we will be happy to go over how HARRELL Group can help. Hand over the keys and the headaches to HARRELL today!
Rental Market Comparisons
There are many methods utilized when setting a market rate for a rental unit. Some landlord’s science might boil down to licking their finger and sticking it up into the wind, while others may choose a complex model with statistical analysis. Of course, it doesn’t matter how you get there as long as you arrive.
It’s important to understand the market trends when determining your rent amount. One thing to consider is how long you can wait to find a tenant willing to pay what you’re asking. In a strong market, renters line up at the door and you have a pretty good chance of renting the unit in a short amount of time. In a soft market you can throw all the rules out the window. Market value fluctuates so often that it might be wise to set your rent aggressively, and you should weigh the loss for a twelve-month period. For example, if you have been receiving $1500.00 a month in rent and the unit is vacant for 3 months because you want to rent at that amount, you are losing a total of $4500.00 in rent, along with any expenses accrued throughout the 3-month period. Alternatively, over a 1-year period you stand to lose $600.00 if you reduce the rent to $1,450.00.
Along with our market analysis, we think that web searches, social media and the local newspaper offer the strongest pulses on market value. We like to start at the high end of the spectrum, but we encourage flexibility from our owners as to the possibility of lowering the rent amount. If you want your property to rent quickly, price it at the bottom of the rent range and you will at least generate responses. A property is rarely rented without a potential tenant viewing the home first. If they look at the rental property, you have accomplished half of the battle.
Landlord and Tenant Laws
Owning an investment property can be exciting, and frustrating. It can also leave your personal assets exposed. It’s important to know your rights, and the rights of your tenant, when dealing with issues concerning tenancy, notices and ownership. Of course, our legal guru can answer most questions that may come up, and we often make those decisions with our clients. If you’d like to be a more informed owner, please feel free to click on the link below to access the HUD Library.
Curb Appeal & More
Historically, owners were able to get a substantial return on their investment with little money going into the property. Today, the way your home shows to the tenant is crucial to quickly renting the home. Updating appliances, flooring, painting, and in some cases remodeling areas of the home, can improve your chances of finding a quality tenant at a reasonable rent rate. It’s the condition of the property that determines the type of tenant you will find. A poorly kept property will attract a tenant that is comfortable in that environment, and don’t expect them to have a sudden change of heart when they move in. Over time, letting go of your property goes hand in hand with the quality of your tenants. The level of care you take with your property determines the level of respect your tenants will have for it as well. A property in ill repair can only lead to lower rents and more problems with tenants down the road.
This is where we come in. We work with vendors who offer special pricing for remodeling and general repair items. The great working relationship with our venders exceeds 20+ years with most of them. Working with HARRELL, and our network of vendors, can improve the curb appeal of your property and help attract the right renters for the community, and for you.
With our long history in the industry, we have come to understand that sometimes less is more. When the market is strong, many owners tend to think that it’s okay to let certain things go. Because the demand is high, tenants demands are low, causing fewer expenses for the property. However, when an owner is receiving a high rent on a consistent basis, it is the right time to invest some of that income back into the property. It’s a good idea to replace the small things as they break down, or as a means of maintaining the look and feel of the property. It will reassure your tenant that you take pride in the property and value them as tenants. Owners who do these types of things tend to retain their tenants longer, have fewer issues over the term of the tenancy and have a lower turnover rate. When the tenant does decide to leave, you have left yourself in a good position. You will spend less money bringing the property up to expectations and have the ability to re-rent the property faster and in some cases, collect a higher rent rate. Talk with us about leveraging the equity in your property, if necessary, to help finance the project.
Real Estate Sales
When you take your business to a real estate agent or broker they will charge 6% of the sale for their services, which can add up quickly. That same agent will need all of our rent roll information and they will require us to continue to deal with the tenant. Because we already have the tools at our disposal, we can list the property for you at a discounted cost to achieve the same desired result. Ask us about our real estate sales expertise when the time comes for you to sell your property, or send us an email at [email protected].