Property Management Blog
Today we are taking a minute to talk about protecting your identity from tenants and remaining anonymous in the rental process. Many of our investors love spending their investment dollars on South Florida real estate, but they really don’t want the tenants to know who they are. That’s perfectly legitimate.
On the leases that are signed with your tenants, we do need to name who the owner of the property is. This is information that is also available through public record, so it’s nothing to be concerned about. Beyond that, we don’t provide any additional information on the lease or anywhere else that indicates who you are or how to contact you. Tenants won’t have access to your phone number or your email address. We put the Florida Property Managers name and contact information on our leases. We also provide tenants with our physical location in case they need it.
The fact that you don’t want to get to know your tenant shouldn’t stop you from purchasing real estate in Florida. We can help you buy and manage properties while protecting your anonymity.
If you’d like more information on this topic, please contact us at Florida Property Managers, and we’d be happy to answer any questions you might have.
Evaluation and Approval
If you choose to invest in a condominium, the expected rental rate is relatively easy to discern based on the history of prior rentals in that building. While this knowledge helps to ascertain your expected rental return in advance of a purchase, the investor must be aware that the ability to greatly increase rent is limited by the rent rates the building historically generates.
We have seen a recent trend whereby investors are purchasing rental property near Universities. Our clients have had tremendous success with these properties. Most of our investors are renting out homes near the University of Miami, Florida International University, Barry University and even NOVA Southeastern, which is located in Davie Florida.
When marketing the property, we can specifically solicit students. As a bonus, we’re able to market from within the college’s off-campus housing websites.
Small groups of students are usually thrilled when they see how much space they get for their money as opposed to a dorm setting. We seek to protect our owners, by obtaining guarantees of the rent payment executed by the parents.
The market for investment property in the student housing field is fluid. When the time is right, contact us at Florida Property Managers, and we can help you take a look at the available purchase inventory.
Let’s talk about the things you need to consider when you’re hiring a property management firm
Find out what sort of designations a property management company has. You need to work with members of the National Association of Residential Property Managers (NARPM). That should be the number one thing you look at before making a decision
What sort of experience do they have in the marketplace? You want to find out if they manage only residential properties or if they do both residential and commercial. Perhaps they have separate divisions. That might work, but you may be better off with a company that focuses strictly on the specific type of management you require.
Ask about the accounting systems in place. You will need something that matches your needs and the needs of your CPA and attorney. The sytem should be a fully automated process that can generate reports on a regular basis. You need to discuss these details before you hire a new company.
Staffing is an important part of working with a property management company. You’ll want to know if they have various departments you can speak to when you have questions, or if one person runs the whole show. Each format has its benefits and challenges, but you need to know how the company works.
An important question to ask is whether the property management company has its own maintenance staff. You also need to know if they use licensed vendors who use permits when necessary. A property manager needs to proactively replace items in your home that need repair. For example, spending $300 to fix a water tank instead of spending $400 to replace the water tank is not the best use of your funds.
When you’re speaking with the property management firm that you may hire, ask if they keep up to date on the changes in the rental laws. Here in Florida, we had a major change that took effect in January of 2015, pertaining to smoke detector requirements. Any new rental unit that is purchased or any new lease that is executed requires a hardwired smoke detector or a 10 year lithium ion battery.
These are just a few of the things you should ask a property management company before you hire them. If you’d like to hear more about our recommended screening process, please contact us at Florida Property Managers, and we’d be happy to help you.
Clients often ask us about the Section 8 program rental program, and if their property would benefit from participation in the Program. Today we’re going to address those questions. Section 8 is a government-funded program providing rent vouchers or free money to tenants who don’t have the financial ability to pay market rent for housing and utilities.
This is a wonderful program for landlords once you get past the complicated “start-up” process that’s in place. Setting up a Section 8 Program does take some work. There are a number of required trips to the local county office to effectuate the program. Your property does need to be inspected, and it must qualify for the program. Tenants also need to qualify in order to rent your Section 8 property.
In many circumstances, the rental rate we get for a property through a qualified Section 8 tenant supersedes the market rate value of that property. For example, in Miami/Dade and Broward County, the voucher for a 1 bedroom unit provides up to $900 in Broward and just under $1,000 in Miami/Dade. A voucher for a 4 bedroom home can provide a landlord with almost $2,600 in Miami Dade County! Often, we can help clients purchase property in communities with rental rates that make the purchase a high quality investment decision. The key to deciding if this program is a right fit is by looking at the property itself. You need to compare its market value to the amount of rent we can obtain through a Section 8 program.
If you want more information about the Section 8 program and how it can help you make more money for your investments, please contact us at Florida Property Managers in Coral Gables.
Often, we will hear from one of our investor clients who want to know what they should do if their parents are moving out of their home. They need to know if it’s better to sell the property or hold onto it and rent it out. At Florida Property Managers, we do a multi-faceted “test” that will help our clients make the best possible decision.
First, we take a look at the home and go over the options available. If the decision is to sell the home, our clients can either sell the property as it is, or do some work to improve it and then sell it at a higher price.
With rental rates skyrocketing in South Florida, we have found that selling isn’t always the best option. Renting out the property will provide the Owner with regular rental income, while enjoying asset appreciation that will be recognized when the Owner does decide to sell. Our market analysis will provide you with the market rent and the rate of return you should expect.
If you sell the property, you’ll be able to invest those proceeds elsewhere. We will give you the data you need to compare each option separately and see how much you’ll earn. A full cost benefit analysis will provide you with the options you need to make the best decision possible.
We would love the opportunity to help you work through this decision. Please contact us at Florida Property Managers for more information.
There are a number of very good reasons to consider Florida Property Managers for your property management needs. Today I will talk about a few specific things that we can do for you.
We focus entirely on residential property management. This includes individual condominiums, townhomes, single family homes and small multi-family units. We have the resources to help you purchase, sell and lease those properties.
Our membership in the National Association of Residential Property Managers (NARPM) allows us to bring a wealth of information and resources to our clients. We attend local, regional and national conferences. Consistent regular training through this organization keeps us abreast of any changes in rental property laws. For example, in Florida starting in January of 2015, all newly purchased residential units that require a new lease must have newly installed smoke detectors with a 10-year lithium battery. Those inexpensive smoke detectors with cheap batteries are now illegal. Alternatively, we can also utilize the hard wiring process, which is more common in multi-family
Getting the proper tenant in place is the best way to ensure a successful tenancy. We do a thorough screening process that includes pulling a full credit report, conducting a judgment search, researching landlord history and running a 50-state criminal background search. In Florida, we often find that management companies run only a basic county (local) search. Perhaps they verify at the police station that a tenant has no record. Unfortunately, that type of limited search will not discover felonious activity in another state.
At Florida Property Managers, we make sure your property is properly maintained. We only use licensed and insured vendors to make sure your home kept in proper condition. Our goal is to maintain, not degrade the value of your property.
Our tenants pay their rent online. Online rent payments flow directly into our accounting/management software. This form of automation allows us to keep accurate electronic accounting records, and to quickly and accurately generate statements for you, the owner. Our clients never have to worry about the “the check is in the mail.” as an excuse.
We customize our clients’ monthly reporting. We have over 30 reports that an owner has access to on a monthly basis. Our bookkeeping staff has them ready for review on time every month. We have many clients with special needs, including international clients and clients with multiple properties.
Please don’t hesitate to contact us at Florida Property Managers, and we can talk about how we can meet your property management needs.