So, you’ve been thinking about getting started in Real Estate investing but don’t know where to start.
The good news is that you’ve come to the right place.
In this article, we will provide you with several tips you can use to successfully get started as a Real Estate investor regardless if you plan on investing in San Diego, Las Vegas or Phoenix Real Estate.
Tips #1 – Start Small in The Beginning
Sadly, many investors get started in real estate investing by purchasing more than one rental property at once and they are not ready with the responsibilities which come with managing multiple rentals.
This is why you should start small at first because starting small and building your portfolio or rental properties over time will give you the ability to make small mistakes and learn from them rather than having to deal with multiple mistakes which can come with managing multiple rental properties.
Tip #2 – Choose Properties That Are in In Demand Locations
You’ve heard the old phrase “location, location, location” when it comes to buying Real Estate for your primary residence right? The same can be said about investing in rental properties.
Location is important because tenants know what they want and they will be more inclined to rent a property that meets criteria that they are looking for.
Some of the most common criteria that tenants are looking for in a rental property include:
Bedrooms/bathrooms – Most renters are looking for rental properties that have a minimum of 2 bedrooms and 2 bathrooms.
Square feet – Every renter wants to rent a property that offers them plenty of square feet so it’s important to find a viable rental property that offers renters plenty of space for them to enjoy.
Location – Although some tenants want to live close to downtown, others want to be near the beach of enjoy the quiet solitude of the suburbs. Regardless of where your rental is located, don’t forget to highlight every aspect of its location.
Amenities – It doesn’t matter if the property is a single-family home, condo or town home, it has to have great amenities that tenants will want.
Tip #3 – Hire A Property Management Company
Last of all, but most important, the most important thing that you want to do when getting started as a Real Estate investor is to hire a property management company.
At GoldenWest Management we make owning rental properties easy and will save you the time, money and hassle of having to manage your rental property yourself.
To learn more about the services we can offer you contact us today at (866) 545-5303 or click here to connect with us online.
Property management is a challenging business where the property manager serves two different sets of customers with conflicting needs. As a marketer for a multi-state property manager, I have witnessed the razor-sharp line that a property manager has to walk in his place between the tenant and the landlord. At times, it can sometimes seem impossible to stay the course of this line, and I’ll share my insight into why that is.
The business of property management is one where the landlord compensates the property manager to relieve them of the burden of owning investment property (a.k.a, managing tenants). The late night phone calls with repair requests, the destruction to property, the late payments, not to mention the screening of and securing decent tenants – these are all part of the burden that the property manager bears. The owner, usually, doesn’t want to deal with the tenants, fixing up the property, or worry about collecting money. Usually, the property owner wants to make his investment by purchasing the property, and then simply collect checks by handing over the property to the property management company. In other words, they don’t want to do the “dirty work”. Despite this unenvious position, the property manager must do the bidding of the owner in order to get paid. If the owner feels that the service is not up to his standards, he can take his business to the next property manager in the area as switching costs are typically not that high. Continue reading “Why You Hate Your Property Manager (and Why You Might Be Wrong to Do So)”
It’s no secret that real estate can be a great investment. A property, over time, will gain value as debt is paid down. This leads to a nice sum of money owed to the owner when he or she chooses to cash out on it. Of course, there are some deviations from this formula, like the real estate bubble of the previous decade. Which, if one purchased property at the peak of the bubble (2005-2006), and then had to sell after the bubble burst, they likely didn’t garner a great return on their investment. Property owners in Phoenix, especially, took a big hit during this time with the huge volume of properties that flooded the market from rapid new development. This left a sour taste in many property owners’ mouths when their nest eggs lost more than half the value of just a few years before. Fast forward several years, and it’s become more clear that long term trend of gaining value is still holding. Property owners/investors are back to realizing their investments. Continue reading “Property Management Value in Phoenix”
At Goldenwest Management, we’ve managed properties for hundreds of landlords, and worked with hundreds more tenants over the past decade. Most of you who follow this blog know that being a landlord isn’t easy. Tenants come in a variety of personality and quirks. If you are lucky enough to find the one that improves your property, then thank your lucky stars because these types of tenants are a rarity. Most tenants will fall into an average range where the rent is paid on time, and no major issues arise. The trick is to avoid the problem tenants. These may be difficult to spot unless you have a seasoned screening process. Even then, bad tenants can slip through the cracks. For example, one article from the Durango Herald talks about undocumented pets, and tenants putting holes through the drywall. Another article from the Hamilton Spectator, shares a sad story about a landlord whom lost her home after months of tenants not paying rent (and disappearing). We’ve also heard stories of tenants selling illegal drugs, conducting illicit behavior, stealing materials from the property, and more. These can be troubling situations, so make sure that you protect yourself appropriately (see our article on how to choose great tenants and/or how to handle a problem tenant). If you really find that you are in over your head, use a property manager to help.
The Nation recently came out with a report about rental backed securities. If you’re a property owner or renter in Phoenix, this is something that you need to know. The Private Equity firm Blackstone is now a property manager under the name of Invitation Homes. They’ve now created an investment product that is basically a collection of rental homes. They own groups of homes in Atlanta, Chicago, Jacksonville, Charlotte, and Phoenix.
Why should we be concerned about this? These rental backed securities are similar to the mortgage backed securities that sparked the last housing crisis and economic recession. There have been reports of improper evictions as well as poor property management practices. Most concerning about this trend is the economic impact on the rest of us. Home prices are increasing without the demand, and home ownership rates are dropping. Some experts worry that this could create another housing bubble in the future.
We previously wrote guidelines on evicting a problem tenant. However, one of the most important things to consider is that the eviction process has a legal procedure, which is typically governed by local laws. Phoenix will have slightly different rules than Las Vegas or San Diego. Because of that, we’re providing some more localized information on the topic. The following presents some useful links to use when you want to evict a tenant in Phoenix.
1 – Serve Notice
As mentioned in our guidelines for eviction, always serve a notice of eviction as your first step. Do this by posting in a visible location on the property AND by certified mail (make sure to get a receipt and request for confirmation in your delivery). Clearly state in the notice how to correct the issue, as well as the time frame for leaving the property. Note that time frames vary depending on the offense. Below are a few examples:
A 5 day notice for failing to pay rent
A 10 day notice is required for a breach of the lease agreement
2 – File with the Courts
If the tenant still doesn’t comply, file a detainer with the courts to force a hearing on the matter
3 – Get Served
Make sure to immediately serve the tenant with the summons to appear in court. Do so with ample time (at least two days notice)
4 – Show up for Court
Attend the hearing, and bring your paperwork. It’s best to bring your file on the property complete with the lease agreements, proof that the tenant failed to comply with whatever the case may be, and all those receipts we mentioned above.
5 – Get a Writ of Restitution
This is the officially way to physically remove the tenant. The sheriff or other legal authority (constable) will come to the property to escort the tenant away. Note that you must hold onto the tenants possessions for a period of time,allowing them to reclaim them after this happens.
There, you’ve evicted a tenant, congratulations, or more likely condolences. This isn’t a fun process that we hope you won’t have to deal with in the future. If you don’t like the sound of this, give us a call. Hiring a property manager like Goldenwest Management means that you won’t have to personally deal with the headache of an eviction. Good managers have a process that streamlines evictions to make life easier on everyone.
Whether you’re looking for a property to purchase, or just a rental for a short term stay, the idea of a death on a property freaks most people out. No one wants to live with the thought of ghosts or bad karma within their walls. Now you can ensure that you don’t accidentally end up in a haunted house with a new website. A recent article from ABC News pointed out this website, recently, and it seems rather interesting. DiedinHouse runs a search with a proprietary algorithm to scour news and legal outlets for information on property deaths. It even gives out certifications to publicize that a property is death free. This service comes with a fee, however. $11.99 gives you a single search, and there’s a variety of pricing options for larger search packages. The price tag is reasonable enough to try out for a real purchase, or just for fun on the property in which you currently live.
We want all of our landlords to A) Stay safe and B) protect their properties throughout the year. However, Halloween presents unique challenges to property owners. There are lots of people, especially little people, intentionally running around on your property. This can present insurance liability and safety risks. When researching the topic, we came across the following article on Halloween safety tips for landlords and thought of some great advice to pass on to our readers. They recommend three main ideas, and we’ve added another:
1. Time Block your Trick or Treating Hours
Agree to set hours with your neighbors for when the neighborhood will be open for Trick or Treaters.
2. Clear a Path to your Front Door
Check around your yard for anything that can be tripped on, or that someone could possibly hurt themselves with.
3. Don’t use real candles
You definitely want plenty of light on your property, but open flames always add danger. All those costumes hanging off of your guests have the potential to catch fire. Reduce the risk by using battery powered candles/lights.
4. Pass out Candy Outside of the House
You can bypass the risk of people coming onto your property all together by setting up outside near your driveway or walkway. This way, you can dictate whether or not anyone leaves the (community property) sidewalk and onto your property.
Happy Halloween to all of you Landlords and Readers out there! Stay Safe!!!
We’re open to more ideas, let us know if you have any advice to pass on!