Q: I am a prospective single-family investor. What considerations should I be thinking of in terms of management?
A: There are several things to consider with the management of a property. Does the investor want to manage the asset, or leave that to a professional property management company? When, how, and where will the rent be collected? Who will the tenant call for repairs and emergency requests? What happens if the tenant does not pay rent? What happens if the tenant violates the lease?
Additionally, one of the most important things for an investor to consider is how well do they know the landlord/tenant laws? If the investor is not familiar with the laws, the risk is much lower by utilizing a licensed, professional property management company.
Q: What rent increases are you seeing on your turns (re-leasing to a new tenant)?
A: We are typically seeing an average of a 5% increase in rents for a new tenant. The average can be higher in peak seasons (May-August) which is usually no more than 10%.
Q: Can you increase rents for re-signed tenants?
A: In most cases, yes! When determining if we should increase the rates at renewal, we look at a few things:
1. We do a market analysis to see if the rents have gone up in the area.
2. If rents have gone up, we use the analysis to determine what makes the most sense in terms of an increase.
If you have a good tenant in the property, you will want to consider a modest increase that encourages them to remain in the property, while also considering what makes sense for you as the landlord with any increase in property costs (taxes, insurance, etc) that may have been realized over the course of the year.
Q: What are some of the less than obvious risks associated with being a landlord?
A: Properties with pools are properties that carry the highest risk for landlords. Landlords buy homes with pools thinking the pool will be a great amenity and net them a higher price. While this may be true, homes with pools carry a much higher risk in terms of liability. When we have landlords with pools, we recommend they talk with their insurance agent to get the appropriate amount of coverage, and we also recommend that they install a pool fence and a back door alarm to further reduce their liability in the event of an accident.
Q: Do you anticipate further increases in rental rates?
A: Yes! It is a great time to be a Landlord! Las Vegas continues during peak months to have a shortage of rentals which in turn cause rental prices to increase.
Q: We have heard a lot about an improving job market. Are tenant applications getting stronger (Incomes and FICO scores)?
A: We are seeing an increase in incomes; however, the FICO scores have remained irrelevant in connection with the improving job market. What we are seeing is tenants who have owned their own home before, and may have short-sold or foreclosed that home and have since improved their FICO scores are more motivation to purchase another home rather than rent.
A: The biggest motivation is the improved sales prices which in turn is giving the owners their equity they desired to sell.
If you would like to know more about our Property Management Department visit http://www.cbprpm.com/property-management-in-las-vegas or call 702.538.7501