Author: Mubashar Alee

How to Avoid an Investment Property Disaster
If you own an investment property and plan on managing it yourself, it’s important to know things can get stressful and issues need to be solved at inconvenient times. But it’s your responsibility as the property owner/manager to take care of your investment and the tenants who occupy it.

Of course, it’s the goal of every rental property owner to maximize the ROI of their investment. But failing to follow basic property management protocol can put you in a precarious situation. In this blog, we’ll discuss 4 things you can do to reduce the risk of disasters from happening with your investment property.

Make Sure the Property is in Good Shape
Have you ever noticed when a home or object looks nice/valuable, people are more likely to go out of their way to keep it like that? For example, if you hand someone a valuable trading card, they’ll make sure not to scratch it and decrease its value. If they’re handed a beat-up card, they won’t treat it with the same respect. If they drop or scratch it, they won’t think twice about the way they’re handling the card.

The same concept goes for renting out investment homes. We’re not saying that the rental home has to be a massive and luxurious space, but keeping it in good shape is important. Make sure the floors are in good condition, paint covers any scratches on the walls, leaks from the ceiling and appliances are repaired, and stains are removed from surfaces. Of course, there’s more to consider than this, but a property that’s in tip-top shape from the get-go sends a message to the renter that this is how the home needs to stay.

Have Plumbing Fixtures and Valves Changed
One of the most time-consuming issues to resolve is water and plumbing problems. It’s important to hire a professional to come out and inspect plumbing valves, supply lines, faucets, toilets, and washer/dryer hoses. If they haven’t been changed in years, it might be a good time to replace them. Make sure the main water shut-off valve works and the tenant knows where it is.

You might be thinking these expenses are costly. But investing in these things upfront lowers the risk of problems in the future.

Repair Broken Items
It’s important to repair things as soon as possible. Features such as water, gas, or electric need immediate attention. Broken appliances might take a couple of days or a week. Consistent, friendly communication with the tenant shows their problem is at the top of your priority list. Failing to communicate will leave the tenant in the dark and potentially lead to a poor relationship. At the end of the day, your tenants will be much happier when repairs are made in a timely manner and you keep them informed about the status of things.

Treat Tenants with Respect
One of the most effective ways to show tenants respect is to demonstrate that the issues with their homes are important. Be timely and friendly, no matter what the tenant’s tone. If you’re calm and show an interest to get the problem resolved, the attitude of the tenant can turn around. The expression “cooler heads prevail” will help you handle difficult situations. Whether it’s with the home itself, or disgruntled tenants.

It’s essential to develop a good rapport with tenants because it could mean the difference between them staying or having a vacancy in the rental home.

Reed Property Management
Properly managing an investment property (or properties) can be hard work and time-consuming. Attempting to do this on top of everyday life can be extremely stressful and tiresome.

Reed Property Management has the knowledge and experience to effectively manage your properties, which will help seamlessly maximize the ROI. If you’re looking for a reputable property management company to take the load off of your shoulders, contact Reed Property Management today!

(239) 351-2880

 

Catastrophic Storms that Have Hit Southwest Florida
Hurricane season typically runs from June 1st thru November 30th. According to NOAA’s (National Oceanic and Atmospheric Administration) climate prediction center, for 2021, they are predicting a:

• 60% chance of an above normal season
• 30% chance of a near normal season
• 10% chance of a below normal season
• They are not expecting as much activity this hurricane season as in 2020.

Number of Named Storms
It is likely there will be between 13 to 20 named storms (winds of 39 mph or higher), of which 6 to 10 could become hurricanes (winds of 74 mph or higher), including 3 to 5 major hurricanes (category 3, 4 or 5; with winds of 111 mph or higher) is expected. NOAA provides these ranges with a 70% confidence.

For investment property owners who reside in Southwest and have been here for awhile, you are probably used to maneuvering through hurricane season. For those who are new to Southwest Florida or live in another state, it is important to be prepared for hurricane season every year especially since 40% off all hurricanes hit Florida!

Last Five Hurricanes Causing Catastrophic Damage to Hit Southwest Florida
Some hurricane seasons are more active than others but you never know when “a big one” will land in our area. Here are the last five hurricanes (from prior to most recent) that caused catastrophic damage to Southwest Florida:

1960 Hurricane Donna (Category 4) – With winds of 145 mph when Donna made landfall in the Florida Keys, it then skirted the west coast and hit just south of Naples with winds of 120 mph. It brought a storm surge of 4 – 7 feet and covered much of Fort Myers Beach with water. Donna caused 364 deaths and estimated damage of $6.6 billion dollars.

1992 Hurricane Andrew (Category 5) – It landed near Homestead (Southern Dade County) with winds of 174 mph. Over 1.4 million people lost power and some for more than a month. Andrew caused 65 deaths and estimated damage of $26.5 billion dollars.

Although Southwest Florida did not sustain the main brunt of the storm, it caused tens of millions of dollars’ worth of damage in Collier County, flooding parts of Marco Island.

2004 Hurricane Charley (Category 4) – This storm came ashore on the northern tip of Captiva Island at 150 mph, moving to Bokeelia then through Punta Gorda, Port Charlotte, Arcadia, Sebring and Wauchula, and lasted a week (August 9th – 15th). Charley caused 15 deaths and $16.9 billion in damage.

2005 Hurricane Wilma (Category 5) – Wilma reached maximum wind strength of 185 mph but its winds were 120 mph when it made landfall near Cape Romano (below Naples, just beyond the southwestern tip of Marco Island and northwest of the Ten Thousand Islands in Collier County). Wilma caused 87 deaths and $22.4 billion in damage.

2017 Hurricane Irma (Category 5) – Irma had maximum wind strength of 180 mph but when it made landfall near Marco Island, its winds were 115 mph. As Irma hit Florida, tropical storm force winds extended out to 400 miles from the center, and had hurricane force winds that extended up to 80 miles. This storm left over 7.5 million homes (70% of the state) without electricity for days. Irma caused 134 deaths and $50 billion in damage.

Reed Property Management
As an investment property owner, dealing with the aftermath of a hurricane can be overwhelming even if you are a local resident because in addition to looking after your investment property, you probably have a primary residence that needs attention as well.

If you have investment property in Southwest Florida and either live locally or in another state, think of the peace of mind working with an experienced professional property management company can bring not only all year long but during hurricane season.

Call Reed property Management to learn more about how we can help with your investment property. (239) 351-2880

When Your Rental Application is Denied
You have found a great apartment and can’t wait to move in. The next step is filling out the rental application. Here are some things to consider when filling out your rental application to help avoid a denial:

• Make sure and completely fill out all of the information that is being asked
• Make sure you meet the income bracket
• Submit your application on time
• Answer all questions honestly
• If you know there may be an issue, talk to the landlord upfront and be honest about your circumstances.

If Your Rental Application was Denied
While waiting for the rental application results, you find out your rental application was denied and now you are feeling frustrated and sad and wonder what went wrong plus what can be done about it?

If your rental application has been rejected, don’t take it personally. A landlord usually receives many rental applications and they have requirements that must be met for someone to be considered as a tenant.

Some of the areas considered on a rental application include:

• Credit check
• Rental history
• Proof of income
• Employment history
• Background check

A landlord wants to ensure a prospective tenant will:

• Pay rent on time
• Be a good tenant
• Not break the lease
• Take care of their investment property
• Reasons for Rental Application Denial

If your rental application was denied, instead of getting angry at the landlord, try to understand why the application was denied. When you find out why it was rejected, you can make improvements so there is less chance of denial on your next rental application. Things to consider:

Did your gross income meet the requirements?
If the monthly rental fee is greater than 30% of your income, the landlord may feel the rent is higher than you can afford.

Do you have a low credit score or poor credit history?

If you know your credit score or history is less than optimal, let the landlord know up front. Sometimes they will accept a higher security deposit or a co-signer.

How are your references? Make sure you are on good terms with references you provide as no references or poor references can contribute to rental application denial.

Hidden or inconsistent information found on background checks. Background checks can reveal criminal history, financial information and personal details you may not want revealed.

Tips to Avoid Rental Application Denial

• Check your credit score – Look to make sure there are no errors or marks you didn’t know were there. If there are some, do what you can to repair them.
• Provide a thorough rental history including correct dates and contact information for each landlord.
• Be prepared with bank statements and pay stubs in case you need to show them.
• Choose reputable references who can articulate information to the landlord or property manager.

Use the above tips to help avoid rental application denial. At Reed Property Management, we do our best to provide open communication with our tenants. If you are looking for a rental property in Naples, Bonita Springs, Estero or Fort Myers check out our listings.

 

Common Mistakes That Can Cost an Investment Property Owner Thousands of Dollars
When you own an investment property there are many decisions that need to be made including if you will manage your own property or if hiring a property management company would be a better choice. One of the main benefits of working with a property management company is they have experience dealing with all aspects of what goes into successfully managing an investment property.

There are common mistakes that many investment property owners make when trying to manage their own investment property including:

Locating and approving quality tenants – Finding good quality tenants is not as easy as posting a “for rent” sign in your yard. There is much more that goes into this task. It is important to make sure any new tenant is able to pay the rent, has a good tenant history and will take good care of your property.
Tenant turnover – If the step above isn’t done properly, it could result in high tenant turnover. High tenant turnover is a huge expense as you would have to repeat cleaning, repairs, the application process and there would also be lost income.
Not maintaining the property – This is common with property owners who live out of state or in a different area than the investment property’s location.
A vacant property – The property is vacant because you are having difficulty finding a high quality tenant.
What Comes Next After Finding a High Quality Tenant?
After locating and approving a high quality tenant, your job has just begun! You must ensure that tenant stays happy so there is a better chance they will renew when the lease time runs out. It is best to try and keep quality tenants who pay on time and take care of your property. Some tips to retain quality tenants include:

Always be professional – Don’t cross any boundaries or get attached if you personally like the tenants as you may have to make hard decisions later. Keep in mind this is a business transaction.
Transparency – The lease should be clear and concise regarding expectations that must be taken seriously. Be to the point and not vague or overly delicate as this can lead to misunderstandings.
Maintenance – When regular maintenance tasks are needed to be done, try to schedule them at convenient times for your tenants.
Repairs – When your tenant lets you know that a repair is needed, get it done in a timely manner.
Your investment property should be treated like a business by providing good customer service and making sure everything that needs to be done gets completed in a timely manner. If you own more than one investment property dealing with the whole rental environment can be even more challenging.

There is much more that goes into running a successful investment property and often new investment property owners do not realize what it takes until they are in the throws of managing their own property.

Reed Property Management has the experience and skills needed to professionally manage your investment property. If your investment property is located in Naples, Bonita Springs, Estero or Fort Myers, Florida give us a call (239) 351-2880. Let us do all of the work for you!

When Is The Best Time To Hire A Property Management Company To Manage Your Investment Properties?
You have purchased investment properties with the mindset that this will be a great income producer but have you considered what it takes to manage these properties? From maintenance needs to renter issues, managing your own properties can become a full-time job that may be overwhelming!

Do you feel like your life has been taken over with the day-to-day tasks of managing your investment properties? If you answered yes to this question, it may be time to hire a property management company to help.

Signs You Need Help Managing Your Rental Properties
There isn’t time to take care of all of the tasks – Paying bills, dealing with vendors, managing tenants, property maintenance, mortgages, taxes, insurance policies and local laws are things that must be managed on a daily basis because you never know when something will come up that needs your attention outside of scheduled tasks. Tasks are piling up and all of this is making you feel stressed!

Managing and finding good vendors is a struggle – There is more to hiring a vendor than picking a name from a Google search. The vendors you choose will be representing your business and the quality of their service will affect the experience of your tenants and the reputation of your business. You need to protect the safety of your tenants and property by carefully selecting vendors.

It is difficult to find quality tenants – You don’t want to sign a lease with just anyone who knocks on your door. It takes experience to locate and screen in a way to recognize quality tenants.

These challenges are just the tip of the iceberg! Daily tasks that go hand in hand with owning investment properties can include:

• Collecting Rent
• Dealing with tenant complaints
• Filling vacant units
• Applicant screening and background checks
• Unit inspections
• Taxes and reporting
• Legal items and compliance

Coordinating repairs and maintenance and more…
As you can see there are many tasks and responsibilities that are involved in a successful investment property business. You may not have thought about owning investment properties as a “business” but it actually is and a “hands-off” approach to property management may sound good but is not realistic if you want a successful outcome. The best way to enjoy the benefits your investment properties can provide, without having to do the work, is to hire a property management company to help.

Reed Property Management has years of experience in all of the areas discussed above and more! Don’t spend another day feeling overwhelmed with your investment properties. Let us do all of the work while you spend your time doing things you enjoy! Give us a call (239) 351-2880.

Investment Property 101
What Laws Do I Need to Comply With as a Landlord? Managing your investment properties is similar to running a business. You have to stay on top of things including performing regular property assessments and compliance with property management laws.

In Florida, failure to comply with property management laws can result in fines and, if properties are not properly maintained, condemnation by local government.

There are requirements to comply with applicable building, housing and health codes and in instances where there are no applicable building, housing or health codes, there are still areas that need to be maintained in good working order including the:

• Plumbing
• Roof
• Exterior walls
• Floors
• Walls
• Screens
• Steps
• Windows
• Porches
• Lanais
• Foundation
• All structural components

Keeping your investment property in good condition also helps attract more responsible tenants and helps to maintain property value. Landlords must also provide pest control for critters like:

• Mice
• Rats
• Cockroaches
• Bed bugs
• Termites
• Ants

If a tenant must move out for treatment to be completed, landlords must provide seven days’ notice and vacancy cannot exceed four days. Landlords are not required to cover rent during this period.

What Maintenance is an Investment Property Owner Responsible For?
In addition to the items mentioned above, the landlord is responsible for providing:

• Electricity
• Heat (during the winter)
• Working smoke detectors, unless the absence of such is disclosed
• Locks and keys
• Garbage removal receptacles
• Clean, safe common areas
• Running water
• Hot water
• Air conditioning
• Property improvements including structural deficiencies

Although these items must be provided, property owners may charge tenants for utilities and garbage removal. Although the property owner has these responsibilities, the tenant is also responsible for some maintenance and repairs.

What Maintenance and Repairs is the Tenant’s Responsibility?
Repairs that are caused by tenant neglect are the tenant’s responsibility to have repaired. An example of tenant neglect is if a tenant is having a fight and during that fight, they break a provided light fixture. It is their responsibility (not the landlords) to repair or replace the light.

What we have discussed so far is just the tip of the iceberg when it comes to property management. There are many other laws with which a property owner must comply when renting their property to tenants including:

• Property management laws
• Rental application laws
• Security deposit laws
• Lease and lease termination laws
• Rent and late fee laws
• Legally required disclosures
• Landlord responsibility laws
• Property maintenance and repair laws
• Exemptions

In addition to complying with all of the laws, there is also coordinating vendors, inspections, managing tenants and their concerns, finding and vetting new tenants and so much more…

Many people have the dream of owning investment properties and the income that it brings but often all of the other components that go along with owning and managing an investment property are under considered.

You can still have the dream of owning investment properties without having to deal with all of the responsibilities. Use your time to do what you enjoy and leave all of the day-to-day tasks to a property management company.

At Reed Property Management, our main goal as your property management company is to maximize your return on investment (ROI). We do this by efficiently managing your property and tenants.

We implement and enforce any lease keeping within all Florida laws to retain tenants and keep them happy but we do so within the parameters of the lease. Sometimes a tenant desires something that is outside the parameters of the lease and we have no problem tactfully saying “No”.

As we all know when owning a physical property part of that ownership includes making needed repairs. We work hard to make sure repair expenses are minimized as well as liability obligations.

Give us a call today! (239) 351-2880

 

Looking for a New Place to Live?
If you are looking for a new place to live and have been leaning towards renting due to the current high-interest rates for obtaining a mortgage, have you considered Naples, Florida? Imagine living everyday like you are on a vacation. Beautiful sunsets, a large variety of delicious places to eat and white-sand beaches are just a few of the reasons to choose Naples, Florida as your new hometown.
The 2022-2023 results for the Best Places to Live in America has Naples, Florida rated as 12th. Although the cost of living in Naples, Florida is on the high side, the area’s amenities and endless outdoor activities offset this cost.

Things to Do in Naples, Florida
There is something for everyone in this beach town. And with its close proximity to both Fort Myers and Sarasota, you will never run out of things to do. If you have kids, Disney World and Universal Studios are only a short drive away.
If you love the outdoors, you can enjoy kayaking, fishing, and hiking. For those who prefer to spend their time indoors, there are plenty of shopping and dining options available.

A Brief History of Naples, Florida
Southwest Florida remained virtually uninhabited until after the Civil War. The town of Naples, Florida was founded in 1886 by former Confederate general John Stuart Williams. It was originally named after the Italian city of Naples because of its similar sunny climate.
In the late 1860s, pioneering entrepreneurs began to settle the area, and by the early 1900s, a small town had begun to take shape.
In 1915, the city was officially incorporated as Naples. The name “Naples” was then derived from an old mining camp that was located in the area.
Collier County was created in 1923 from parts of Lee and Monroe counties. It is named for Barron Collier, a New York City businessman and real estate developer who came to the area in the early 1920s and built the Tamiami Trail, linking Naples to Miami.
Although it has only been incorporated for less than 100 years, Naples has a rich history. The city’s early residents were mostly farmers and fishermen who lived off the land.

More About Naples, Florida
Nowadays, Naples is a thriving beach town that is home to many retirees and families. The city’s population has grown significantly over the past few decades, and it shows no signs of slowing down.
Naples, Florida has a population of about 19,372 people. The average age in Naples is 65.4 years old. Roughly two-thirds of the residents in Naples are married, and the city has a very low divorce rate.
The average household income in Naples is $217,838, and the median home value is $606,000.
Naples is considered one of the safest cities in Florida. The crime rate is well below the national average, and there are plenty of police officers to keep the peace.

If you are looking for a place to retire, want to live in a beautiful beach town, or a place that feels like you are on a permanent vacation, Naples, Florida should be at the top of your list.

Contact Reed Property Management to learn about the beautiful rental homes and units we have to offer in Naples, Florida.

A credit score is used by companies to learn your level of creditworthiness. According to Oxford Languages creditworthiness is defined as the extent to which a person or company is considered suitable to receive financial credit, often based on their reliability in paying money back in the past.

Credit scores range from 300 to 800, with 800 being the highest and 300 the lowest. A score of 700 or higher is considered good, while a score of 650 to 699 is considered fair. A credit score below 650 is considered poor.

Why Is My Credit Score Low?
There are many reasons why you might have a low credit score. Maybe you’ve missed a few payments, had some collections, or applied for too much credit in a short period of time. Whatever the reason may be, there are steps you can take to improve your credit score.

You should obtain a copy of your credit report from all three credit reporting agencies: Experian, Equifax and TransUnion. You are entitled to one free report from each agency every 12 months. Go through each report carefully and look for any errors. If you find any, file a dispute with the credit bureau.

Next, make sure you’re current on all your bills and that there are no delinquent accounts. If you have any unpaid collections, try to negotiate with the creditor to have them removed from your report.

When is A Credit Check Done?
There are many things in life that when you apply, the company will want to do a credit check. This usually occurs if you want to apply for:

• Car loan
• Credit card
• Mortgage Utility services like water, gas, or electricity
• Cellphone plan
• Insurance
  This also includes when you are looking to rent a property.

Rental Application
When a person applies to become a tenant for a rental property, the owner or property management company will usually perform a background check and also a credit check (with the tenant’s consent). Credit checks are done to see if you have a history of paying your bills on time.

If your rental application has been denied don’t simply give up. It is important to start working on improving your credit score.

How Can I Improve My Credit Score?
Some things you can do to improve your credit score and get approved for a tenant application include:

Make sure to pay all of your bills on time from now on
Limit the amount of credit you use. It’s best to keep your balances low, around 30% or less of the credit limit
Don’t open any new lines of credit that you don’t need. Opening too many new lines of credit can lower your score
If you have no credit history, consider getting a secured credit card and using it responsibly. This will help you build up your credit
By following these tips, you can improve your credit score and get approved for a tenant application. Improving your credit score takes time and effort, but it is possible. Be patient and consistent in your efforts to improve your credit, and soon you will see results.

If you are an investment property owner and would like help managing your investment properties and screening tenants, we would be happy to assist! Call Reed Property Management.

 

How Many People Are Moving to Florida?
Florida has always been one of the most desired states to move to and many people are moving to the Sunshine State every year.

According to some interesting facts found by Allied Van Lines, 2018 was an interesting year when it comes to the moving industry. They published some very important statistics on the moving trends for 2018.

In 2018, Florida was the third most favored state by Americans to move to with a total of 95,732 people who chose to relocate here – representing a 1.8 percent increase from 2017.

Fast forward to 2020 and the Covid pandemic has made Florida an even hotter destination. According to Naples Florida Weekly, area government and economic officials, various studies and anecdotal evidence by real estate experts, the COVID bump is significant.

Florida’s population is expected to grow to 23.1 million by April 2025. That is 845 per day or 308,497 people per year.

This means that more and more people are choosing Florida as a place to live. The beaches and amazing sunsets make it a perfect place for spending your spare time. It has also been rated as one of the best states to retire to by Livability.com.

Why Are People Moving to Florida?
The sunny weather and the low taxes are attracting more and more people to Florida each year, but what other reasons can there be? Here you will find a few reasons for moving to Florida.

There’s so much to do! No matter what your age or interests are – if you like the outdoors then there must be a perfect activity for you in Florida. Many people spend their weekends on the beaches relaxing and playing some volleyball or going for a swim while some others go deep-sea fishing or enjoy water sports.

How Much Does the Average Home Cost In Naples, FL?
With all of the people moving to Florida, more people are looking to purchase an investment property. According to Zillow, the median home value in Florida is $234,000.

In Naples, Florida, the median home value is $390,400 which means that if you purchase an investment property here, then it will most likely increase in value over time.

With the increase in people moving to Florida from other states, there is also an increase in demand for housing. This means that housing prices will gradually go up.

With the growing demand for housing, there is also an increase in jobs – which means that more people are earning money and there is more to spend! If you are thinking about purchasing a rental property in Naples, Florida, now is a great time to do it.

If you already own an investment property in Southwest Florida, are you managing your own property or have you hired a property management company to manage it for you?

What Are the Benefits of Hiring a Property Management Company?
Hiring a property management company can be a great option that will save you a lot of time and hassle. This way, the company is handling the day-to-day tasks such as rental applications, taking care and following up with maintenance issues, and collecting rent payments so that you don’t have to worry about anything!

Other benefits of hiring a property management company include marketing your rental property and coordinating showing the home to potential renters.

If you are an investment property owner in Naples, FL or surrounding areas and are looking for a professional experienced property management company, then look no further than Reed Property Management. We specialize in managing rental properties throughout the city of Naples and surrounding areas. We have years of experience under our belt which results in satisfied customers.

To learn more about Reed Property Management, visit our website or give us a call with any questions you may have! (239) 351-2880

Sources: Florida Weekly, Allied Van Lines

What Things Do Renters Look For When Choosing Their New Home?
Acquiring investments properties is a great way to enjoy passive income through the years and well into retirement. One of the challenges of owning rental properties can be finding and keeping quality tenants especially in a highly competitive area where there are many rentals to choose from.

When renters are looking for a new home, there are a lot of things that they take into consideration. Price, location, and size are all important factors, but renters also look at the condition of the property and whether or not it has been well-maintained. They also want to know what kind of neighborhood they will be living in and whether there is easy access to transportation, shopping, and other amenities.

How to Fill Your Rental Properties with Tenants?
If you’re an investment property owner, then it’s important to make sure that your rental property is as appealing as possible to potential tenants. By following these six steps, you can give your property the boost it needs to stand out from the competition and get rented quickly!

Clean up the exterior of the property. This includes repairing any damage, painting over faded paint, and clearing away any clutter or debris.
Make necessary repairs and upgrades. This may include things like fixing a leaky faucet, replacing a broken window pane, or upgrading the heating and cooling system.
Brighten up the interior of the property. Add some fresh paint, replace old furniture with updated versions.
Make sure there are laundry facilities in individual units and also if you own a multi-unit property without laundry hookups in the individual units.
Offer furnished rental units.
Consider home tech. Technologies like Google and Alexa are trendy right now! Tenants can control certain aspects of the home including lighting, the thermostat, and garage door.
Try to look at your property from the tenant’s perspective because the more appealing your property and offer, the better chance you will have of acquiring and keeping quality tenants who will take care of your investment property.

Finding and keeping quality tenants is a challenge for rental property owners, but it doesn’t have to be. Follow these steps and you can give your investment properties the boost they need in this competitive market.

If you’re looking for help managing all aspects of your investment properties, contact Reed Property Management today! We’ll take care of everything from finding new tenants to maintaining the property itself so that no detail is overlooked.