Category: Uncategorized

Why Rental Rates Aren’t Everything
In our last blog, Four Money Making Moves For Investment Property Owners, we touched upon why rental rates aren’t the “end all be all” when it comes to owning a profitable investment property. This time around, we’re going to dive deeper as to why this is.

Successful real estate investment is about creating a long-term wealth development strategy. Focusing too much on rental rates can negatively affect the property’s long-term potential. If you follow these three steps, you will greatly increase the odds of generating a lucrative rental property for the long-haul.

Weigh All Your Options
When selecting an investment property, you’ll have several important decisions to make, and it’s critical to weigh all of your options carefully. If you’re planning on renting out a home for an extended period of time, thinking beyond the comparison of your anticipated rental rate to mortgage payment is a must.

Factors such as:

• The location of the property
• The local job market
• Nearby amenities

Should all be taken into consideration when choosing an investment property. The location, job market and amenities will all determine the number and type of tenants that will be attracted to your rental property. Not considering these things can result in a vacant rental or even allowing tenants that don’t match your qualifications to move-in, just so you have cash flow for the property. This can be problematic and open up a whole new can of worms that could have been avoided, simply by weighing your options.

Present and Future Value
The present and future value of the property is an extremely valuable piece of information. Of course, you want the value of the property to be high initially, but what about 5, 10, 15 or even 20 years down the road? Take a look at real estate and economic trends to stay ahead of the game. Even if the value of the property isn’t high right off the bat, it might change down the road. Another integral piece of information would be to find out if new construction is expected to develop around your area. This could potentially increase the value of your property over time. Gathering local and regional renovation plans for the area could set you up for great long-term success.

Market Analysis
Having an overview of the local market conditions is important, but potential property owners can’t afford to overlook things such as property taxes, number of local vacancies and the average cost of rent. A detailed market analysis can provide investment property owners with a window into the near future. When combined with the other information accumulated, can establish a solid foundation to estimate future performance.

Reed Property Management
Yes, knowing the rental rate versus your mortgage payment is important. But stepping back and taking a look at the big picture can provide you with excellent long-term success in the rental property world. At Reed Property Management, we can help you understand the in’s and out’s of strategic investment property ownership. If you are looking to get the most return possible on your investment property, give us a call! We’d love to help you reach your long-term investment goals.

 

Neighborhood Disputes: When Should a Property Owner Get Involved?
When you’re an investment property owner, you’re forced to wear many hats; Perform background checks, inspect properties, back-up repairman, etc. But when tensions are high between tenant and neighbor, you might be thrown into the role of mediator. In an ideal world, there would never be any disputes and all of the neighbors would gather and sing Kumbaya. But in the real world, disputes happen, which means they need to be resolved cordially. The property owner needs to know how to handle the situation without escalating things and doing so decisively.

In this blog, we’ll discuss what a property owner should do if there is a dispute between neighbors and when they should get involved.

Neighbor Complaint About Your Tenant
To handle the situation properly, it’s very important to learn as much as possible about the nature of the dispute. We’re not saying to imitate an FBI agent and overstep your boundaries. Found out basic information such as; is the disagreement related to the property itself or the behavior of a nearby tenant? The lease that the tenant signs before they move-in will benefit the property owner in this case. The lease should clearly outline certain behaviors will not be tolerated. If a tenant is violating the lease and a neighbor has complained, the property owner must take the necessary steps to handle the problem accordingly.

Tenant Complaint About a Neighbor
If your tenant has a complaint about a neighbor, we strongly advise that you check for a history of disputes. Yes, the neighbor may be an ongoing problem, but you could also have an overly sensitive tenant. Listening to a complaint and showing genuine concern will go a long way with the tenant and potentially helping resolve the issue faster.

Speaking directly to the neighbor and giving them a chance to tell their side of the story can help ease some tension. Remember to stay calm yourself and keep an open mind while speaking to both parties. Ruining a relationship with a neighbor is something that a successful property owner can’t afford.

It’s important to remember not to overstep boundaries. If talking to the neighbor doesn’t resolve the issue, it might be best to leave the problem to an owner’s association or other local officials.

Neighbor Violating The Law
If the neighbor is participating in illegal activity, strongly encourage your tenant to report them to the local authorities. This is extremely critical if threats are made or your tenant feels like their safety is at risk. You have an obligation to help your tenants stay safe; contact local authorities if you feel things are getting out of hand. If you don’t take action and a dispute escalates into harassment or violence, you could find yourself in a lawsuit or worse.

Reed Property Management
We understand dealing with a tenant dispute can be challenging and at times unsettling. But when you have an experienced property management company in your corner, it can take some of the load off of your shoulders. Reed Property Management can help resolve disputes in a calm effective manner and take necessary action to help investment property owners.

 

Trouble paying rent or mortgage due to coronavirus crisis? Collier program aims to help
With the economic fallout from the coronavirus outbreak still rippling across Florida and the rest of the country, some Collier County residents could soon get help paying their rent or mortgage.

County officials last week announced a $1.4 million rental and mortgage assistance program, funded through a combination of state and federal dollars and to be administered with the help of the United Way of Collier County and the Keys.

“We were able to take advantage of some new grant money that came straight from Congress to address the COVID crisis and also we were able to redirect some of our existing funding that we already had in-house to kind of throw some help at people much faster than usual,” said Cormac Giblin, the county’s housing and grant development manager.

The nonprofit United Way has been building the online application for the program and hopes to have it completed within the next week, meaning it could be up and running as early as Friday or as late as May 15.

The assistance program is designed for renters and homeowners who meet certain income restrictions and would make rent and mortgage payments, including back-payments as far back as March, directly to the landlord or bank.

The roughly $636,000 in federal funds is available for rental assistance only and only to households that currently make 50% or less of the area median income, or AMI. The $800,000 in state funding can be used either for rent or mortgage payments and is available to households that make up to 120% of the AMI.

That means the most a single person can currently earn to qualify for the funding is less than $69,240 a year, Giblin said. For a household of four the upper limit to qualify is $98,760.

The income levels are based on what a person or household currently makes, not before the crisis, he said.

“Probably two-thirds of the overall funding needs to be geared towards those at the lower end of the income spectrum,” Giblin said.

A wait list for people who want to be notified when the application process opens already has roughly 2,800 people on it, though some may be duplicates.

With limited funds available, not all will be able to receive assistance from the program, which will operate on a first-come, -completed and -eligible basis, said Spencer Smith, vice president of programs for the United Way of Collier and the Keys.

To be able to help a large number of people while at the same time bringing them current with their rent or mortgage payments so they don’t face eviction, Smith said the nonprofit is taking the approach to try to do a maximum of three months of financial assistance for any client going through the system.

That means if the average rent is $1,500, the program could potentially help between 300 and 400 households, he said.

“We want to try to get as many families as we can financially stable again, so that, you know, when they do regain employment or get their hours back that they aren’t behind, you know, three months rent or two months’ rent,” Smith said. “It’s going to be more manageable for them.”

The wait list is probably going to be a lot of people who have never navigated social services before, he said.

“And it’s going to be a huge strain on everybody,” Smith said. “So we’re trying to make sure that, you know, as many families as we can are not going to be completely inundating every other social service that’s going to be out there.”

The application process will play out largely electronically at collierhelp.com where users will find a clear distinction on how to apply for the COVID-19 rental and mortgage assistance once it opens up.

The website is currently live but only has applications for services being provided by the Salvation Army for programs unrelated to the county grants, Smith said.

Once the program goes live, renters, Giblin said, will upload a copy of their lease and income verification documents. Homeowners would provide mortgage documents.

Depending on what funding stream applicants qualify for they are routed to the appropriate case managers, Smith said.

Although the funding for the program is currently limited, county officials expect to see more aid money in the future.

Since the program was announced, Giblin said, the state has released more disaster funding and Collier received somewhere between $150,000 and $200,000. County officials also expect additional stimulus packages from the federal government.

“We anticipate more money coming down,” Giblin said.

The United Way was chosen as a partner for the program, he said, because the organization already has a “pretty sophisticated infrastructure” in terms of technical hardware and “boots on the ground” to get the word out and help get people into the program.

“Much more so than the county has,” he said.

To get on the notification waiting list, residents can visit unitedwayofcolliercounty.org. To be connected with a social service residents in Collier can dial 211.

Communication Between Property Owner, Property Management and Tenant
Any successful company, partnership, team or relationship will display excellent communication skills. Failing to communicate at a high level will present large-scale issues detrimental to the goal at hand.

The goal of any property management company should be to increase the ROI (Return on Investment) of the property they manage and make sure it stays in excellent condition.

In this blog, we’ll discuss why communication between a property owner, property management and the tenant is critical when accomplishing investment property goals.

Preventing Major Repairs
When preventing major repairs, it’s important for the tenant and property management to display great communication. For example, if the tenant notices a leak under the kitchen sink, no matter how large or small, it’s important to contact property management. Thinking it’s no big deal and having an “out of sight, out of mind” mindset can cause a much bigger issue. As we all know, sitting water results in one thing… MOLD. All of a sudden you went from a simple maintenance repair to a costly mold removal process in addition to a repair. Costly repairs reduce the cash flow going into the homeowner’s pocket, which we always want to prevent.

Updates/Construction Occurring in Home
Investment property owners sometimes want to make improvements to their home while a tenant is living in it:

• Cabinets
• Countertops
• Flooring
• Roofing
• Front/Garage Door

When the updates are completed, the tenant will have a better living environment and the homeowner has increased the home’s value.

But keep in mind that communication during renovations must be superb. The homeowner needs to relay the information to property management or directly to the tenant.

• What days will the renovations be taking place?
• Who can the tenants expect on what day?
• What time will they be arriving?

Something you don’t want is the tenant to be taking a shower while the construction company is trying to gain access to the home. It creates an uncomfortable situation. An unnecessary scrambling from all parties involved. Good communication can make the experience seamless for everyone involved.

Property Inspections
Property inspections are an essential part of making sure an investment property owner’s home is in tip-top shape. In this scenario, you MUST give the tenants notice.

Your tenants are entitled to at least 24 hours’ notice, and the length, purpose and timing of the inspection must be reasonable. And although some law enforcement agencies have advocated performing property inspections as frequently as every four to six weeks, the general consensus is that (in addition to the “Move-In” and “Move-Out” inspections) you should have your rental property inspected every three to six months.

Reed Property Management
Reed Property Management has a proven track record of exhibiting excellent communication skills when working with property owners and tenants. This puts everyone’s mind at ease throughout the entire process.

Things such as repairs, renovations and property inspections are inevitable. But having a property management company in your corner that has your best interest at heart makes everything significantly easier! We’d love to increase the ROI of your investment property, contact us today!

Does Renters Insurance Cover Hurricane Damage?
If you were to ask people across the country what June 1st to November 30th means to them, you’d probably get a blank stare of confusion. But if you were to ask Floridians, most people would immediately give the response, “that’s hurricane season”. This tropical time of year presents uncertainty among homeowners, business owners and renters alike.

Renters insurance and what it covers can be a very confusing topic. In this blog, we’ll explain what is and what isn’t covered by renters insurance in the event of a hurricane.

What Does Renters Insurance Cover?
In insurance jargon, the cause of the damage is known as a peril. Interestingly enough, hurricanes themselves are not considered perils. Things such as:

• Wind
• Hail
• Fire
• Lightning
• Falling objects

Are all examples of perils. Most of these should be covered under your renters insurance policy, but to be 100% certain, contact your provider.

A notable exception that isn’t covered under renters insurance is a flood. You will need to carry flood insurance to be protected against said damages.

Personal Property Coverage
If your personal belongings are damaged during a hurricane, and the damage is a result of a covered peril under your insurance, such as wind or hail, your renters insurance policy will cover the costs to repair or replace your personal property up to the policy limits.

For example, if hurricane-force winds break the window to your home and cause damage to your belongings, renters insurance will help replace your damaged items.

Tenants need to be aware they do not need to repair any damages to the window or replace the window. This should be covered by a landlord insurance policy.

ALE (Additional Living Expenses) functions under the same rules as personal property protection: You will only be eligible for coverage if the costs come as a result of a covered peril.

Flood Insurance
As we stated above, renters insurance won’t protect your rental home against a hurricane-induced flood, but it can be protected with flood insurance. Although, these policies only cover personal property damage, not ALE.

Reed Property Management
At Reed Property Management, we strongly encourage you to purchase a rental insurance policy for your rental home. Not just to protect yourself from possible hurricane damage, but all of life’s surprises… from an electrical fire to a broken pipe resulting in damaged valuables or furnishings.

Whether you’re looking for a rental to call home or you’re searching for a property management company to take care of your investment property, give us a call and stay safe this hurricane season!

The Benefits of Renting for Senior Citizens
Baby boomers are among the fastest-growing group of renters in the United States. Nearly a third of urban rental applicants are over the age of 60. But why are more and more senior citizens opting to rent? Oftentimes, they are left with homes that are meant to house a family of four, five or six people.

When their children move out, they look around and realize they don’t need all of the space that was once occupied. Not only is the space in these homes sitting vacant, but owning a home comes with lots of upkeep. Unless you have a passion for mowing the lawn and fixing leaking faucets, it might be time to consider moving into a rental home.

The decision to rent or own a home depends on the situation of the couple or individual. Some senior citizens are perfectly happy owning their own home, but if you’re looking to downsize by moving into an apartment or condo community, there are numerous benefits to this:

Renting can be less expensive. Homeowners have to worry about mortgage payments, real estate taxes, maintenance bills, HOA fees, etc. In most cases, renting only requires your monthly payment and renters insurance. Less maintenance equals more free time. If you’re spending weekends maintaining your property or paying a fee for someone else to maintain it, that time or money could be spent enjoying hobbies or relaxing. Most condo and apartment communities will take care of your maintenance needs, all you have to do is submit a request.
Less space, more amenities. Less space means lower utility payments and maximizing the space to the fullest. Condo and apartment complexes come with nice amenities within walking distance. Which means luxurious relaxation at your fingertips.

Better location and value. If you’re looking to maximize your space, live in a great location, have luxurious amenities, all for an affordable rate, renting an apartment or condo might be the best course of action… especially in Southwest Florida and Naples in particular. There’s a lot to consider when deciding to rent or continue owning a home. If you’ve decided that it’s time to downsize and move into a rental home that suits your needs, contact Reed Property Management! We have a firm grasp on rental and real estate trends, allowing us to put you in the rental home that suits your needs in a timely manner!

 

The Importance of Submitting Maintenance Requests When Needed
As a tenant, part of your responsibility is to be vigilant enough to recognize when repairs are needed and submitting maintenance requests on time. This might sound easy enough. But sometimes, the repair might not seem like a big deal at the moment so submitting a request gets put on the back-burner. The next thing you know, a small problem has become a huge inconvenience.

In this blog, we’ll discuss why submitting maintenance requests on time is so important and how Reed Property Management can make the process easier.

Property Damage
Failing to submit a maintenance request for needed repairs on:

• Sinks
• Toilets
• Washing machine
• Dishwasher
• Roof
• Cracks in the foundation

among many other things, could result in severe property damage. While it’s not the tenant’s responsibility to fix these damages, it is their responsibility to inform the property manager so further damage is prevented.

Without Utilities
Property damage or damage to any utilities isn’t just an inconvenience for the property owner, it’s an inconvenience for you, the tenant, as well. Depending on how long it took to submit a request and having the issue repaired, could make a difference in how long you’re without that feature. For example, submitting a maintenance request as soon as you notice something is wrong with the washing machine, compared to waiting a week to submit one, could be the difference between having it repaired in 30 minutes, or needing a new utility altogether and being without it for a week or two. Prolonging the submission of maintenance request is never a good idea.

Health Risks
Noticing a leak in your rental home shouldn’t be a big deal. Most of the time it’s an easy fix. But it can become a problem if you neglect to contact the property management company. Leaks lead to sitting water, and sitting water eventually becomes mold if ignored.

A few long-term health problems associated with mold are:

• Asthma
• Headaches
• Lung problems
• Fatigue

If you believe you might be living with mold, immediately contact your property manager.

Reed Property Management
Submitting a maintenance request when you notice anything in need of repair is critical. Failing to do so doesn’t just affect the property owner, but it affects you (the tenant) as well.

Fortunately, Reed Property Management makes submitting maintenance requests easy for everyone. You can either submit the request online or give us a call and we will have a maintenance worker come to your rental home.

For any of your investment property needs, think Reed Property Management!

4 Questions to Ask a Property Management Company Before Hiring Them
On the surface, all property management companies might look the same, but in reality, that’s far from the truth. It’s important to get a feel for the people you will be working with and their track record managing rental homes. The best property management companies communicate effectively and put the best interest of both the property owner and tenant at the forefront. This can be done by offering honest and reliable services while disclosing details that will help the property owner feel at ease.

In the is blog, we’ll discuss four questions you need to ask a property management company before hiring them.

What Services do you Offer?
The very first question you should ask a property management company is “what services do you offer?” If they don’t offer needed services, you know you can move on right then and there. If they do offer everything you need, ask specific questions about their services to see if you’re still on the same page. The property management company should handle:

• Maintenance requests
• Rent collection
• Background checks
• Property inspections
• Accounting services
• Leasing
• Security deposits
• Mortgage and utility payments

If these services aren’t included, you will find yourself hiring someone else to take care of them. In that circumstance, communication can dwindle between parties. Keeping all of these services under one company will make the process much smoother.

How Much Experience do you Have?
Experience isn’t the end all be all for being a successful property manager. But it helps. Experience helps a property manager handle situations that they have learned from in the past. Whether it’s something they did wrong and would like to change, or if the circumstance went seamlessly and they would do it the same exact way, only years of experience can help guide an individual through certain happenings. If something goes wrong with a property, knowing exactly how to handle the problem will most likely come from years and years of industry knowledge and experience.

What Types of Properties do you Manage?
The property management company you are interviewing might only have experience managing apartments, condos, single-family homes or a combination of all properties. It’s important to make sure their expertise lines up with the property you want them to manage.

Not only is it important to find out what types of properties they manage, but how many properties they manage at one time. If they manage a small number of properties, is it because they have trouble retaining clients? If they manage a lot of properties, will your investment get the care it deserves? Asking these questions can unveil a company’s shortcomings that you shouldn’t have to deal with.

What is the Fee Structure?
There are many different ways a property management company can structure their fees. You have to determine if what they offer suits your needs. Make sure they are being upfront with their base rates and extra fees so there aren’t any unexpected charges to your account.

Reed Property Management
At Reed Property Management, we bring over 30 years of industry experience to the table and offer all of the services listed above. Our clients own everything from condos to single-family homes, so our knowledge and expertise cover a vast array of property types.

Whether you’re searching for a home or you need an experienced property management company to manage your investment, contact us today and schedule a consultation!

5 Signs You Need To Hire A Property Management Company
Are you a rental property owner in Southwest Florida? At times, it can be extremely demanding, even to the point where the negatives outweigh the positives. Even if you only have one tenant that requires constant attention, whether it’s their own doing or not, can be very taxing. It might seem like you can’t go anywhere or do anything because you are always on call. Luckily, there’s a solution! Reed Property Management is here to take the load off of your shoulders!

In this blog, we’ll discuss 5 common signs that it’s time to hire a reputable property management company to manage your investment!

You Are Managing Several Properties

Managing several rental properties is definitely a full-time job. Handling tasks such as:

• Tenant requests
• Maintenance
• Property inspections
• Background checks
• Payment issues
• Marketing

Can easily leave you feeling burnt out and overwhelmed. When you hire a reputable property management company, it leaves you with some free time to do things you enjoy!

You Don’t Live Near Your Rental Property
Do you live in a different region of the country than your rental property? Handling maintenance issues or late rental payments when you’re hours away can be very difficult to deal with. If your presence is required, driving or flying to your investment property is both costly and time-consuming.

Fortunately, a property manager will take charge of these situations. It will save you the hassle of an unwanted road trip while keeping you stress-free!

Being a Landlord is Overwhelming
If you’re a routine-oriented individual that enjoys a 9-to-5 job, managing a rental home probably isn’t for you. It’s essential to be available 24/7 to deal with tenant emergencies and other responsibilities. This can be extremely stressful and start to affect your happiness if you don’t enjoy being on-call all day every day.

This doesn’t mean you shouldn’t own an investment property, it simply means you should hire a property management company to help take the load off of your shoulders. We will handle all of the stressful tasks so you don’t have to.

You Don’t Have Time
Being a good landlord requires lots of devoted time to the properties. Many people underestimate the amount of work that goes into managing a property. If you’re not focused on things such as screening tenants or scheduled property inspections because you have another job or prior engagements, it could spell disaster and become a big problem.

Instead of rushing through your tasks as a landlord, consider hiring the services of a property management company. This way, the risk of potential errors decreases significantly, ensuring both you and the tenant are happy.

You Are Struggling To Get Rent On Time
Dealing with tenants who consistently pay rent after the due date can be challenging. It can be uncomfortable and force you to follow up time after time to ask for the payment.

Experienced property management companies know how to handle this very common issue. It requires excellent communication skills and a firm hand if need be. A good property manager does everything possible to receive rent payments as soon as possible.

Reed Property Management
Are you a property manager dealing with any of these 5 things? If so, contact Reed Property Management to make your life much easier and stress-free!

Check out our services and see how we can help maximize the ROI of your property.

Do You Have Concerns Renting To College Students? We Have Solutions!
If you own an investment property in Southwest Florida, there’s a chance that college students might be interested in your rental. Nearby Universities such as FGCU, FSW (Collier and Lee Campus), Hodges, Keiser among others reside right here in Southwest Florida. That means thousands of students are looking for a rental home. Understandably, you might have some concerns about renting out your investment home to college students.

In this blog, we’ll discuss five common concerns investment property owners have about college students renting their property and provide solutions to each concern!

Concerns and Solutions
– No Rental, Credit or Employment History: Most college students don’t have any real experience with rentals or paying debt, so screening them might be a challenge. However, you can get an idea of their character by calling their references. If they have been kicked out of student housing, this can be viewed as the same as an eviction.

Solution: Something you can do is require a consigner if the student has an insufficient credit history. This will make them responsible for paying rent and covering any damages. Be sure to screen the cosigner as well to help ensure he/she is a credible person who will be true to their lease.

– Inexperience Maintaining a Property: When you have a young, inexperienced tenant in your investment property, there’s a chance they will be dirty and messy, which could attract rodents and pests. They might not prioritize reporting minor maintenance issues, which could turn into major problems.

Solution: This is where it’s important to use the security deposit to your advantage to protect yourself against any damages. Verbiage that requires the tenants to report damage immediately can help. Easy access portals where they can submit maintenance requests and pay rent will make this easy for them. Also, conduct an initial walk-through and conduct an inspection every 4-6 months giving the tenant 24 hours advanced notice (Note this in the lease).

– No Rental Payment Experience: Part of the college experience is learning how to manage money. That being said, most students still have a lot to learn. They might not save enough to put towards rent or simply forget to pay. Even if the parents are sending money for rent, there’s no guarantee the student will pay rent in a timely manner.

Solution: An electronic payment system, in addition to sending a payment reminder can help the student stay on top of things. Adding a clause that states everyone on the lease is held “jointly and severally liable” for paying rent will prevent one roommate from prioritizing something else ahead of rental payments. Charging the maximum security deposit can help protect your bottom line as well.

– Noise Complaints: Fortunately, most college students aren’t as loud and rambunctious as you might think. You might even luck out and never have to deal with a noise complaint from your student tenants. But there are some instances where college students can get loud, especially when you are renting to a bunch of roommates.

Solution: Make sure you add a clause to your lease that enforces quiet hours to keep your neighbors happy. Also, anything you can think of that might seem obvious, but not uncommon for college student behavior, such as jumping out of windows/balconies or lighting fireworks should be added to the lease to ensure you are covered in case things get out of hand.

– Frequent Turnover and Summer Vacancies: Since the majority of college courses are held in the spring and fall semesters, that leaves a big vacancy in the summer months. There isn’t a guarantee that housing plans and funding will be the same from year to year.

Solution: If filling your rental in summer months is an issue, offer perks for repeat tenants or referrals. You can also try offering year-long leases with discounts in the summer months.

Reed Property Management
By becoming your investment property manager, we can help ensure your rental is in good hands. We will be conducting the background search, initial walk-through of the property, and property inspections, which will take a tremendous load off of your shoulders.

If you have any additional questions or concerns about renting to college students, don’t hesitate to contact Reed Property Management!