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When the real estate market is in a downward trend, landlords tend to raise rents as they are able to command more money for their property. Inverse relationships between rents and the market have been observed time and time again, indicating that when prices fall below a certain point, landlords start raising rents in order to maintain comfortable profits. This phenomenon began happening during the housing crisis of 2007-2008, when subprime mortgages were securitized and sold on Wall Street. These securities became worth a lot of money due to skyrocketing values but eventually went bust when large numbers of people defaulted on their loans. As a result, many homeowners were suddenly unable or unwilling to pay high rent rates because they no longer had any equity in their properties. According to these Fort Worth property managers since then, inverse relationships between rental prices and markets have continued throughout various stages of different economies around the world. What is happening in real estate right now? There is no confusion around the fact that the real estate market is currently experiencing a slowdown. In order to understand this, we need to look at a few facts that have led to this point. One of the main reasons for real estate's downward trend is the rise in mortgage rates. There has been a recent rise in mortgage rates across the U.S., and this might not be good news for everyone. When you're buying a home, one of your biggest concerns is always whether or not you will be able to afford it. And with mortgage rates reaching all-time highs, that could soon become a reality for many people. At the beginning of the year, mortgage rates started around 3% and have reached 6% in a few months, meaning more people are paying almost double in mortgage for the same property. According to Innova Realty this increase has made potential buyers back away from purchasing homes. Another thing that contributes to the downward trend of real estate is the low supply in the market, combined with high prices. Even though the supply of this year is bigger than the one of last year, it still can not meet demand. More so, home prices are around 43% higher than three years ago. Home construction is slowing down as concern for lack of potential customers is rising and increased costs of construction materials. Not only this but there has also been a shortage of construction workers, and construction companies have experienced increased difficulty in easily finding qualified and reliable employees. They have also experienced increased difficulty in finding materials such as windows or doors due to a general lack in the market. What has been happening with rents in the US Asking rents in the second quarter of the year were 23% higher across the U.S. in comparison with 2019. Rents nationwide continue to rise at the fastest rate in decades. Even though many states and management companies have set regulations that limit the rent increase, now, most of these measures have expired with the pandemic well under control. Many people claim that now landlords will try to make up for the two years when they’ll renew their leases. Working remotely has led many people to relocate to warmer, previously less expensive places. Some examples are Florida, Nevada, and Arizona. The exodus from big cities and the increased demands for new places in these states have led local landlords to increase the rent. In Florida, for example, there has been a 39% increase in rent during the pandemic. How a real estate downfall leads to increased rents Even though the real estate market has slowed down, rental prices continue to rise. With fewer people purchasing homes, demand for rentals remains strong, allowing landlords to charge more. Keyrenter Silicon Valley explains that this trend is driven by the growing costs of homeownership, which help make the rental market surprisingly resilient, even during economic downturns. Landlords have the unique opportunity of capitalizing on the renewed demand for rentals. This is even more accentuated in areas where workers choose to conduct their business remotely. Many renters have chosen to trade up for more square footage, allowing landlords to upgrade their units to charge more. Conclusion We live in a fast-paced economy where the general trend is not looking so good, especially for lower-income individuals and families. While rents may stay the same or increase during a waiting recession, people’s income stays the same, or they lose their jobs, making it complicated to afford a roof over their heads. According to experts, the inverse relationship between the downward real estate trend and increased rent is expected to continue in 2023. Get in touch with us today and learn more about our services.

Being a landlord is not an easy task, especially if you own multiple properties. How can one do it all? You need time for a second job. Not to mention all the skills in negotiation, market knowledge, and relationships a landlord needs to have. Letting someone care for the investment is the best choice any landlord can make . They’ll know how to tackle everything from beginning to end, and the landlord will be able to enjoy his free time without carefully managing everythng. But does one find the right property manager for their needs? Look in the right area If a landlord owns property far from where, say a company like Brady RG  operates, it can be challenging for the assigned manager to regularly inspect the property, oversee maintenance, or engage with tenants. A manager located closer to the property can handle these tasks more effectively. They won’t delay duties due to long travel times or try to cram visits to multiple properties into one trip. Instead, they’ll be available for emergencies and maintain a stronger presence. They will also know the local market better than other managers. They will know what the average rent in that area is, what the expectations are for the property’s conditions, what marketing tactics the locals are used to, and so on. They will also know the federal laws for real estate in that area. Another thing is that they will know excellent and reliable maintenance and repair businesses. Knowing the community in real estate will ensure they’re fitted to take care of the landlord’s needs. Conduct proper research Nothing is as bad as knowing you could’ve chosen more carefully. This is why it’s important for landlords to do their research well before they choose who they’re gonna work with. You can find the information you need about all the agencies and experts online. The landlord needs to choose someone who has positive reviews. There are some businesses that choose not to have any reviews available, and that can be a red flag. Ideally, one should look for indications that those reviews belong to real people. One indication can be natural speech, without too much professional language, as ordinary people will most likely not consider that. A potential customer might even ask for a reference from the company to inform themselves about the quality of the services. This is an excellent opportunity to get unfiltered information about them. One of the most common ways to research is to check their website and social media pages. Here the landlord can see if they’re an authority in their industry, if they respond to comments and engage with their audience - this could be an indicator of whether their communication is a good one, etc. The landlord should also ask communities in real estate for recommendations. These can be online communities or local networks of people they may know. Ask the right questions When speaking to a potential property manager , the landlord must prepare well for that talk. Eventually, he might need a list to make sure they cover everything that will help him make an educated decision. Here are some of the questions landlords should consider asking: -What are all the services you offer? Are they all included in the fee? -How many other properties do you manage? How much time would you be able to allocate to my property/portfolio weekly? -What is your process for screening tenants? -What is your preferred method of communication? -How did you manage a nightmare tenant? -Do you make monthly property management reports? -Do you have vendors you typically work with? -How do you handle complaints? -Do you have experience managing this kind of property? Whatever it is discussed, the landlord needs to make sure the questions are according to his particular situation. Inspect the property management agreement This agreement will settle the relationship between the property manager and the landlord. Every task and responsibility of each party will be written down. As this contract will be used in case of an unfortunate event, the landlord must take his time reading the contract and ensuring everything is as discussed, not leaving anything out. He needs to ensure the contract covers all responsibilities for both owner and manager, fees, timeline, and termination clauses. Final word Choosing someone to conduct all the responsibilities is a serious process that should not be taken lightly. However, these indicators will help the landlords move in the right direction, clearing the air on things they should pay attention to. Get in touch with us today and learn more about our services.

If you’re a landlord, you have probably thought a time or two about hiring a property manager. Maybe you have more than one investment real estate property, maybe you multitask it with other sources of passive income streams, maybe you don’t enjoy the process of doing maintenance or reparation, or you’re simply not good at finding high-quality tenants. Whatever it is, it has got you thinking about outsourcing your responsibilities to someone else. Let’s go over why you need to hire a property manager together. They’re experts in finding tenants One of the common fears landlords have is that they won’t be able to find tenants. It’s a reasonable fear to have. However, according to this Seattle property management company, you don’t have to worry about this process when you have a good property manager overseeing everything. Remember, they’ve gone through this process many times. They know how to present the property to attract the best prospects. They know what photos will make people click, they know everything the listing description should inform about, where to post the listing, and so on. They also know the best professionals who will take quality photos and that will run efficient marketing. Additionally, property managers often have access to various databases containing information about potential tenants, such as rental history and credit scores. They use this data to help match tenants to suitable properties. Finally, they can organize showings and open houses to increase the number of potential tenants who view the property. All of these tactics can help attract more qualified tenants and ensure that the property is quickly filled. With property managers, you won’t ever have to worry about your property remaining vacant! They’re experienced negotiators regarding rents It’s in the best interest to have high rent. Many landlords do not know how to negotiate a high rent. Property managers are responsible for making sure that the rent charged for a property is set at a high enough level to generate a positive return for the property owner. They do this by researching the local rental market and finding out what comparable properties are renting for. They also consider factors such as the condition of the property, amenities, and location in order to determine an appropriate rental rate. Once the rent is determined, the property manager will market the property in order to attract tenants. They will also provide guidance to the owner on how to set the rental rate, handle rent collection, and respond to tenant requests or complaints. Overall, property managers help to ensure that the rent is set at a high enough level to generate a positive return for the property owner. They maintain relationships with vendors Property managers maintain relationships with vendors in order to ensure that they receive quality services in a timely manner. This can include everything from securing the best price on goods and services to ensuring the timely delivery of materials for repairs or renovations. Property managers ensure they have a relationship with these vendors that will enable them to get a service done faster than they could anywhere else. These vendors might also give special prices to these property managers, ultimately helping the landlord save money. They handle conflict efficiently As in any other relationship, there will be conflicts or difficulties. They may come in the form of contract violation, damages done to the property, late rent, etc. According to these Denver property managers, the landlord would have to go down there and fix the issue. These things may happen at an unexpected time, and they can turn into big inconvenient, time-consuming disasters. However, with the property manager, the landlord would only have to get informed about these things. It’s their duty to negotiate with the bad tenant. Generally, property managers will first attempt to resolve the issue through conversation and negotiation. They will discuss the issue with all parties involved, listen to their perspectives, and work to come to a mutually agreed-upon solution. If the issue cannot be resolved through conversation and negotiation, the property manager may consider mediation. A mediator is a neutral third party who can help the parties involved sort out their differences and come to a resolution that is acceptable to all. If these methods are unsuccessful, the property manager may choose to take legal action. Depending on the situation and the applicable laws, this may involve pursuing an injunction, filing a small claims court case, or seeking damages. Conclusion Even if you think it’s a job you can easily do yourself, it’s always wiser to go along with a professional. Not only will their expertise create a bigger profit for you, but they will also make all the stress go away. Still not benefitting from good property management? Get in touch with us and give it a try!

In today’s competitive real estate market, landlords need to do all they can to attract the best tenants to their property. The best tenants are usually those who are most likely to stay longer and be willing to pay their rent on time every month, which can save landlords a lot of hassle and money in the long run. Here are some ways to make sure you are attracting the best tenants. Know who you want to have as tenant Before listing a rental, it's essential to have a clear vision of the ideal tenant. This enables you to identify your target market and craft your listing accordingly. Prepare questions about smoking, pets, income, and credit score. Doing so will not only make the process easier but can also guard you against possible allegations of discrimination. Create an attractive listing An appealing listing has the potential to attract the best tenants. For starters, an appealing listing should be comprehensive and well-written. It should include detailed information about the property and its amenities, descriptions of the neighborhood, photos, and other helpful information. The rental listing should include a detailed description of what the landlord is looking for in a tenant, such as job stability and credit scores. This can help prospective tenants determine if they are likely to meet the expectations of the landlord. Have what they’re looking for Tenants are looking for a variety of desirable features in a rental home, such as an aesthetically pleasing and modern kitchen and bathroom, quality kitchen appliances such as a washing machine, stylish touches like feature walls, storage options, a garden or yard, plenty of natural light, parking, and open plan interiors. According to these Athens property managers If you improve these things in your home, you’re more likely to get a good tenant who will be happy to pay to have them. Advertise in the right places Advertise your property in the right places if you want to find the best tenants. We mentioned above that you should know the ideal person to have as a tenant. Now it’s time to figure out how they find rental properties and where you’re likely to find them. This may include local publications, online directories, social media, and even personal contacts who may know of someone looking for a place to rent. Make sure to include all of the information a potential tenant would need to make an informed decision, such as the location and condition of the property, the rental policy, and any incentives you may offer tenants. Offer incentives Offering incentives to tenants can be a great way to attract tenants. You may consider offering a discounted rate for the first few months of rent, waiving the security deposit, or providing a flexible payment schedule. Incentives like this can be especially attractive to tenants and can help you to stand out from the competition. Check background Having a good background check process is essential to get to know if they’re high-quality or not. It is important to thoroughly vet potential tenants by running credit and background checks and verifying their income and employment.These San Diego property managers are saying that this may take some extra time, but it will be worth it in the long run, as you will be able to avoid any potential complications due to unpaid rent or other issues. Be flexible with tenant needs Good tenants often have specific expectations for their rental property. They might need to bring in a dog, bring a musical instrument in, rearrange furniture, and so on. Being flexible when you discuss terms and conditions will help you shake hands with someone who will make a great tenant. Have good communication Tenants that will bring the most benefit and less stress are people that are good at communication, and they will want somebody who is also good at this. This means being friendly, responsive, and understanding regarding tenant concerns or requests. Good tenants will appreciate a landlord who is attentive and flexible and will be more likely to stay in the rental property for the duration of their lease. Conclusion Good tenants are everywhere, and they’re more than happy to pay for a property they’d enjoy. However, the landlord has to know what the avatar for their tenant is and meet their standards to seal the deal. We recommend hiring a property manager. Not only will they know how to promote the property in the best way possible, but they may already have excellent prospects lined up. Get in touch with us today and learn more about our services.

We make investments to support ourselves in the long run. Rental ownership is a personal and important business that takes a lot of time and energy. It’s the owners’ source of income and their biggest pride. Therefore, it’s crucial to hire the right people to help with business operations. You don’t want your business to go down the drain by associating with the wrong management company. You might feel as though your employed property manager is not successful in operating your business - which is a cause for concern. If you think your property management company is not dealing with your issues as it should, it may be time to change the tactic and replace the property manager. Still, you may be unsure if it’s the right call to put your loyalties elsewhere. There are several clues to look out for so you know that the time has come to replace your property manager. Incompetence & Irresponsibility Quite a lot of issues can arise when an incompetent employee has so much responsibility that property managers have. It’s their job and duty to communicate with the tenants, work on maintenance issues, and market the property. Therefore, a property manager has the power to either expand and develop your business or completely fail it. Incompetence can be expressed in multiple ways. A competent professional will be able to lead the rental business toward success. However, an incompetent employee will cause many problems. They will not make your job easier, but rather complicate things. Legal Issues A competent property manager must be familiar with the property law of the state. One of the main reasons property owners hire management companies is the complications that follow a misunderstanding of certain policies. Therefore, if the manager fails to handle the legal system, or has a lack of knowledge in the area, your business might be in danger. In case the contract with the tenants is not created with great care and attention to detail, you might have to deal with attorneys in the future. Wasting a lot of time and money on an issue that could easily be avoided with the right management system. Tenant Issues One of the biggest responsibilities that the property manager has is dealing with the guests and the tenants. Communicating with the customers is key in any business. If your property manager is rude, impolite, or takes a lot of time to respond to the issues, it might be time to let them go. You must keep an eye on tenant satisfaction. The guest experience is crucial in the rental business. Reviews that your property receives depend on their pleasure, impacting the pricing and the number of applicants you receive. Marketing Issues Are you not pleased with the advertisement results? Maybe the marketing strategy that your manager suggested was not the right one. The property manager has the responsibility to bring in as many clients as possible by marketing the property or properties with an excellent plan. The property manager must know property marketing platforms well. According to these Long Beach property managers they must be able to present your rental attractively to a large group of potential clients. If you are receiving a small number of applications, if you can’t find your property on the top pages of rental platforms - it might be time to replace the property manager. Maintenance Issues Your property manager’s duties include inspecting the property before letting the tenants move in. To satisfy the tenants, you need to present them with a comfortable environment. If your property manager fails to see some maintenance problems that turn into a huge nuisance, it will most definitely create an inconvenience for your guests. Moreover, the maintenance issues that arise naturally, should be taken care of by the manager. They should be able to find the best company and oversee the mending process by the workers so everything goes smoothly. It’s their job to make sure that you don’t have to spend more money on reconstructing and remodeling your home. Therefore, if your property manager fails to handle the maintenance tasks, they are not doing the job properly and you have a right to demand better quality. Communication Issues Anyone can make mistakes, however, repeating these mistakes over and over again is not acceptable, especially when a whole business depends on you. The property manager must take your criticism seriously and listen to your feedback. It’s time to replace your property manager if they are hard to reach. If they don’t take your feedback into account and don’t respond quickly, they might not be very serious about the job. Failure to manage finances The property manager is there to deal with the financial issues. If you have a professional by your side you shouldn’t have to worry about accounting. However, you might find yourself in that position. Your property manager should keep a track of the finances. They should supervise the rental payments and remind you of bills and fees. They must give notice to the tenants when the rent is due. If your property manager is responsible for more loss than profit, you should think about either reaching out to the company to replace your manager or hiring a completely different property management company. Therefore, you shouldn’t be afraid to fire a property manager if they cause a lot of trouble. The property manager is there to manage your property and do it well. They must take responsibilities off your shoulders instead of giving you bigger headaches. Get in touch with us today and learn more about our services.

As inflation is getting out of control, so are the worries for the rental real estate market. Homeowners all over the U.S. are feeling the pressure of inflation that has everyone scared about their costs of living. From gas to electricity and food, everything seems to be getting out of the ordinary person’s reach. Not only does it make it hard to build a house as construction materials get more expensive or to buy one as interest rates are getting higher, but it also makes rents skyrocket. If you want to find out how inflation is currently affecting the rental real estate market, keep reading. What is inflation? Inflation is a general increase in the prices of goods and services in an economy. It can be caused by many different factors, including increases in wages, commodity prices, or interest rates. When inflation goes too high, it becomes difficult for people to afford basic necessities such as food and shelter. In severe cases, it can lead to a decrease in the value of money and an increase in inflation-related unemployment. The Federal Reserve Board has a responsibility to maintain low levels of inflation so that American consumers have enough purchasing power to purchase items necessary for everyday life. While there are many different types of inflation across the world, generally speaking, it's bad news for creditors and good news for borrowers. How inflation affects landlords While many still discuss whether or not inflation is good for landlords, there are definitely certain pros and cons. Many economists say that inflation might be any real estate investor's friend if they know how to take advantage of it. These are the people that become property owners with the goal of investing long-term. As everything else rises in price, so is the increase in real estate value. In fact, real estate surpasses other types of investments and will provide more stability against economic fluctuations, given that it doesn't fluctuate with stock markets or commodities. According to this Los Angeles property management company inflation raises the prices for properties, allowing investors to sell at a higher price than they’ve bought it for, giving them a good ROI (return on investment). Another benefit for landlords is the increasing rents, the cash flow that makes the rental market a great investment. History has shown us that inflation leads to higher rent, which we can see in many U.S. states at this point, with rent rising at different rates everywhere. The cost of rent may exceed the rise of other necessities, which means a higher income stream for the investor. With construction prices going up and banks more unwilling to lend money, the purchase of real estate becomes more difficult, therefore leading to more people delaying buying a home and opting for renting instead. This means the demand for landlords will increase. Last but not least, inflation leads to debt depreciation, meaning that real estate investors will have cheaper debt. Even though some good things come during inflation for investors, there’s also the darker, worse side. Not only there’s an increase in the costs of goods,, but also in the costs of services. Maintenance and reparations will be more expensive for landlords during this period. Most likely, vendors will demand more for the same services as they also make an effort to keep up with their expenses. Another interesting thing to look at is a study in which landlords from 10 different states with the highest inflation rate were interviewed, and the majority of them said that unpaid rent is the main reason for eviction notices. Many landlords risk having a vacant property if the rent price gets out of hand. How inflation affects tenants If a rent increase is a good news for landlords, it’s a terrible one for the majority of tenants. According to this property management company in Seattle with the rent getting higher, it’s becoming more and more challenging for people to keep up with it. More often than not, people sacrifice in other areas of their lives in order to afford their shelter. As we discussed above, the rise in rent cost also has led to more evictions. Tenants who are receiving government assistance may experience a loss of purchasing power as the value of their income decreases over time. Conclusion So is inflation good or bad for the rental market? Well, it depends on which side of the deal you’re on and what’s the long-term strategy. Depending on what the future goals are, real estate investors might consider delaying plans for investments, or, they can take advantage of the unique market opportunities. Get in touch with us today and learn more about our services.