Tag: Property Management

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Landlords

Should You Allow Tenants with Pets? If So, How?

Source: Justin Veenema on Unsplash

Though most of us have pets that we love more than our children, you may be hesitant to allow pets into your precious rental properties. It’s understandable—but do the benefits outweigh the risks?

Pet owners are everywhere, especially here in the US. According to the American Pet Products Association’s National Pet Owners Survey, there are approximately 65.1 million households that own at least one dog, while 46.5 million households own cats.

As a landlord, allowing pets in rental units can be difficult. On the one hand, there are pet-owners out there who will only rent properties that allow pets—they consider their furry friends a family member. But on the other hand, pets can cause property damage and create noise disturbances for other tenants (especially if it’s within an apartment building or multi-family complex).

In this article, we give you a low-down on the risks and benefits of allowing pets and include info on protecting your property while avoiding liability.

The Risks and Benefits of Allowing Renters with Pets

The majority of renters own pets, and businesses outside of real estate are capitalizing on the trend by catering to pets and their owners. For example, brands like Starbucks are offering pet-friendly products and experiences, promoting a positive attitude among pet owners.

Source: bark.co

Like any business, landlords pet owners are a lucrative market to tap into.If you consider allowing pets into your property you run into an equal amount of benefits and issues:

Be vigilant with your pet and tenant screening, and you’ll reap the benefits and mitigate risks. Here’s how.

Decide and Inform What You’ll Allow

It’s crucial to be clear about what is and isn’t allowed when it comes to pets in your rental property. That’s why it’s a good idea to include pet requirements in your lease agreement, as well as a pet addendum.

The pet addendum should outline specific rules and regulations related to pets. It should include:

  • The number of pets allowed
  • The types of animals permitted on the property

The addendum should also include clauses that protect you as a landlord:

  • Allowing you to remove aggressive or dangerous pets while allowing the tenant to remain
  • Revising pet rules with 30 days’ notice, and outlining penalties for violating pet-related rules

What to Pet Rules to Include

When creating your pet addendum, consider the following:

  • Common pets in your area
  • Potential damage each pet could cause

You can then include specific requirements in your lease agreement and pet addendum to address these concerns. For example, you may want to limit the number of pets each tenant can bring and exclude larger dogs or exotic pets.

To protect yourself as a landlord, include key clauses in the lease explaining the agreement for responding to problems concerning pets. These clauses should clearly outline the procedures for dealing with pet-related issues and any potential consequences for tenants who violate the rules.

By including a pet addendum in your lease agreement, you can ensure that both you and your tenants are on the same page regarding the expectations and guidelines surrounding pets in your rental property.

Get Insurance and Follow the Law

Before allowing tenants with pets, check your insurance policy for any limitations, exclusions, or coverage requirements. These regulations will vary from one state to another.

For instance, Michigan landlords must also comply with state pet laws, such as requiring pet vaccinations and enforcing proper pet waste disposal. Landlords should also ensure responsible adult supervision of pets in common areas. Visit the Michigan government website for a complete list of pet laws.

Follow Fair Housing Laws

Be mindful that a Fair Housing Law protects disabled people who need animals for their emotional well-being and physical safety. The term “disabled” now includes the blind, paralyzed, those with clinical depression, and those with post-traumatic stress.

You can request a note from their physician to verify their condition and animal assistance requirements to keep things documented.

Charge Higher Fees for Pet Owners

Landlords can charge pet-owning renters a premium in three ways due to the additional risks involved in allowing pets into the property. Here are the three:

  • The first is a pet deposit, which is refundable and ranges from $100-$300, collected at the beginning of the lease to protect the property from damages related to owning a pet.
  • The second is a nonrefundable pet fee, collected at the start of the lease, usually 25% of the first month’s rent, acting as compensation for the property damage risks resulting from allowing pets.
  • The third is a “Pet Rent,” a monthly fee for keeping a pet on top of the rental price that ranges from $25-$50/month.

Screen the Tenant and Pet

Conduct thorough screenings that include feedback from references and past landlords. During interviews, landlords should ask about the pet’s vaccinations, licensing, and past behavior.

Clear expectations for pet owners should be outlined in the lease agreement, including requirements for keeping shots, licenses, and tags up to date, registering the pet with the landlord, and taking responsibility for any harm caused by the pet.

Also observe physical and behavioral characteristics of the pet, such as aggression or friendliness, interaction with the owner, and whether the pet is spayed or neutered. By taking these factors into consideration, you can make informed decisions about whether to allow pets in their rental units.

More Tenants and Extra Income: Consider Allowing Pets

With nearly 90 million households owning a pet, it’s safe to say American love their fuzzy friends. So, ignoring that fact might lead to lost profits if you’re a property owner. As long as you follow our tips above and be careful with your contracts, allowing pets into your properties only has upsides.

Learn more about your rights as a landlord over tenants’ pets, reach out to us today to connect with our team of experts. Join REIA and subscribe to our newsletter to get the latest news in real estate.

Categories
Landlords

How and Why You Should Set Up Recurring Rent Payments for Your Tenants

A mobile phone with an online payment showing on the screen.
Source: Photo by Mika Baumeister on Unsplash.

Collecting rent can be one of the biggest hassles of owning rental property. Not only do you have to keep track of when rent is due, but you also have to chase down tenants who are late on their payments.

Wouldn’t it be nice if there was an easier way to collect rent? Well, there is.

You can set up recurring rent payments so that your tenants’ rent is automatically deducted from their bank account each month. Not only does this make things more convenient for both you and your tenant, but it can also help ensure that you always get paid on time.

In this blog post, we’ll explain how to set up recurring rent payments and the benefits of doing so. By the end, we hope you’ll see just how easy and helpful an automatic rent payment system can be.

Why Set Up Recurring Rent Payments

As a landlord, having a reliable, predictable source of income is essential. That’s why automating recurring rent payments can be so beneficial. Here are a couple of benefits:

  • On-time payments: Your tenants will have their rent deducted from their bank account automatically each month. This means that you won’t have to worry about chasing them down for late payments or collecting checks in person.
  • Electronic processing: All payments are made electronically and on the same day each month, saving you the hassle of manually entering tenant information into your accounting software. Most systems can handle automatic payments for you with just a few clicks.
  • Incentivize recurring payments to encourage sign-up: Some payment processing providers include a discount function so you can offer incentives to your tenants for signing up for recurring payments. This can be a great way to encourage more people to use the system, making rent collection easier for you.

Protect your cash flow, and you’ll protect your investments—isn’t that the only thing that matters?

How to Set Up Recurring Rent Payments

Setting up recurring rent payments is relatively easy, and it’s worth taking the time to do so. Here are the steps you’ll need to follow:

  1. Choose a payment processing provider: Decide which payment processor you’d like to use. Some popular options include PayPal, Stripe, Square, and Apple Pay. Each company has its own set of fees and features, so take some time to compare them before making your decision.
  2. Set up an account: Create an account and link it to your bank. This will allow payments to be transferred directly into your account on the rent due date.
  3. Collect tenant information: Collect some basic information from your tenants, such as their name, address, bank details, and rent payment amount. Ensure that all information is accurate and updated before proceeding with the setup process.
  4. Set up automatic payments: Set up automatic payments for each tenant in your system. This typically involves entering their bank details and setting the payment amount and frequency (e.g., monthly).

Once you’ve completed these four steps, you’re good to go. Sit back and wait for the payments to come flowing in. Your well-deserved cash flow is on its way.

Best Tools for Recurring Rent Payments

We recommend the following payment processing providers for their ease of use and excellent security:

  • Avail: This landlord software is owned by Realtor.com and helps you streamline rent collection (even if you don’t work with a property manager). Avail allows upcoming payment scheduling by automatically reminding tenants before the due date. Tenants who split the rent with their roommates can also divide the bill accordingly.
  • Apartments.com: Previously known as Cozy, this tool automates rent collection and monitors all rental payments from one dashboard. You’ll see everything in one glance. The platform also sends reminders to tenants, just like Avail.
  • Buildium: If you have 50 or more properties in your rental portfolio, Buildium is your best bet. The software can set up recurring and one-time payments for tenants to pay online or offline, where the funds are transferred in a few minutes instead of a few days.

There are others, too, like Zillow Rental Manager, Rentec Direct, TurboTenant, PayRent, and ClearNow. Whichever platform you choose, you can rest assured that rent collection will take care of itself.

Automatic Payments, Automatic Cash Flow

Setting up recurring rent payments is an easy way to make collecting rent more convenient for both the landlord and the tenant. Not only does it help ensure that your rental income is always on time, but it can also save you time and money in the long run.

We hope this blog gives you a better understanding of how to set up recurring rent payments and why it’s a good idea to do so.

If you have any questions or need help getting started, join us as a REIA member today  and attend our upcoming meeting ! We also have a newsletter, so you’re never out of the loop.

Categories
Wholesale Wholesaling

3 Successful Real Estate Wholesalers You Should Learn From Today

Source: Photo by Jud Mackrill on Unsplash

Are you struggling to make headway in the world of real estate wholesaling? Don’t give up! Learning from the experience of successful wholesale experts can give you the inspiration you need to move forward.

These trailblazers share their knowledge and expertise on everything from marketing to investing strategies. Follow their advice, and you too can turn your wholesale business into a profitable endeavor.

#1 Kent Clothier

Kent Clothier, CEO and founder of Real Estate Worldwide (REWW), is a visionary leader in the real estate industry. His expertise in generating high-quality prospects has led to the purchase and sale of over 4,000 properties, and his commitment to revolutionizing the industry has helped over 55,000 clients achieve their real estate goals.

Source: Realty411

Real estate wholesalers looking to improve in the industry can learn from Kent’s success. Through REWW’s educational platforms, he shares his perfected systems and processes for generating high-quality buying and selling prospects.

Kent’s vision for better technology and resources has led to REWW’s success, and he shares his knowledge and experiences through videos, podcasts, and a book. REWW Academy’s certification course teaches innovative marketing channels for wholesale real estate, allowing wholesalers to learn from the best and earn the title of Certified Real Estate Wholesaling Specialist.

#2 Carlos Reyes

Carlos Reyes is a first-generation US immigrant who left his corporate job in 2015 to pursue his dream of building his own real estate investment business. With the help of his partner, Sal Shakir, Carlos quickly built a successful business that generates six figures monthly from multiple markets across the country.

Source: Official Carlos Reyes website

Carlos not only achieved great success as a businessman but also worked to empower others to achieve their own goals and dreams in real estate investing. He shares his knowledge and wisdom on topics such as wholesaling, marketing, and investing strategies via coaching and educational seminars nationwide.

Carlos offers a Real Estate Investing A to Z Bundle, which includes three comprehensive courses, covering wholesaling, maximizing profits, and virtual wholesaling. In addition to courses, Carlos also has podcasts and videos that feature other leaders in the industry sharing their experiences.

Through his coaching and educational resources, Carlos Reyes is a valuable source of knowledge and inspiration for wholesalers who want to improve their skills and succeed in real estate investing.

#3 Alex Joungblood

Alex Joungblood, the founder of the Wholesaling Houses Full Time Facebook group, is a real estate investor with 19+ years of experience. He has completed $35 million worth of real estate transactions, scaling his business from wholesaling to renovations, new construction projects, and small developments.

What makes Joungblood stand out is his belief in using real estate to become financially independent, allowing you to spend more time with family and less time trading hours for dollars.

Source: Alex Joungblood website

Joungblood offers mentorship services to help aspiring investors find their first deal or scale up their business for more profits. He shares his experiences and expertise through his Facebook group and coaching programs. By learning from Joungblood, wholesalers can gain insights on finding discounted real estate investments, building a successful real estate business, and achieving financial independence.

His success story is an inspiration to many, and his willingness to share his knowledge to help others achieve their goals makes him an excellent source for wholesalers looking to succeed in the industry.

Is There a Better Way to Learn Than From the Best?

Experienced investors’ knowledge and expertise are essential to wholesaling real estate successfully. Fortunately, professionals like Kent, Carlos, and Alex offer their insights and advice to help novice investors increase their chances of success.

By utilizing their strategies, anyone can learn how to wholesale real estate effectively and reap the rewards of this profitable endeavor. Stay updated on industry news by subscribing to our newsletter!

Categories
Short Term Rentals Shortterm Rentals

Should You Invest in Airbnbs? 2023 Short-Term Rental Real Estate Forecast in Detroit, MI

Beautifully decorated short-term rental studio unit
Source: Andrea Davis on Unsplash

What accommodation did you book for your last vacation?

We’ll bet $100 that you Googled something like “tiny home” or “farm stay” instead of the usual hotel room!

The US real estate market is filled with short-term rental market opportunities, where people gravitate towards cozy, picturesque rentals instead of cold, clinical hotel rooms. Millions of listings sell an excellent guest experience, and the market for unusual Airbnbs grew tenfold during the pandemic.

Still, some hotspot, short-term housing markets like the City of Detroit remain overlooked. Many investors focus on the likes of San Francisco, California, and miss out on the goldmine that’s largely still untapped in Michigan.

So, in this article, we’ll go through market trends and statistics that prove the potential of the Detroit short-term rental property market in 2023 and beyond.

Short-Term Property Statistics in the City of Detroit

Let’s start with the numbers. How is the Detroit real estate market performing in 2022?

Understanding the data behind the average Detroit property investment will give you an idea of the city’s short-term rental capabilities, so you’ll know what returns to expect. Besides handling renters and maintaining the property, financial viability will always be the driving factor in every good investment.

So, here’s a snapshot:

  • Affordable properties: The median price is $85,000 with 7.6% increases year-over-year, making it an affordable city. And with a price per square foot of $75 (less than half of the $222 national average), you’ll easily find Detroit properties that fit your investment budget.
  • Excellent cash flow: The rent-to-price ratio is roughly 1% to 1.5%, depending on which Detroit neighborhood you choose to invest in. With this range of ratios, you’ll easily generate strong cash flows that’ll help pay off the initial investment and start pocketing returns.
  • Profitability with short-term rentals: The average rental income for short-term rental investing is $2,246, which is a huge difference from the already-profitable traditional Detroit investing where rental income is around $979.
  • High occupancy rate: Average Airbnb occupancy rate is 50%, whereas most US markets have an average of roughly 20% to 40%.
Source: AllTheRooms

Still, be aware that the City of Detroit only allows short-term rentals in your primary residence or owner-occupied properties with two to four units. You can read more about this rule from the local government’s website to ensure that you comply accordingly.

2023 Forecast for Short-Term Rentals in the City of Detroit

As an investor, looking at market forecasts is almost as crucial as checking historical trends. So let’s take a closer look at the forecast for short-term rental properties in the City of Detroit, to help you decide if renting a Detroit home in 2023 is worth your time and money.

According to Zumper, 302 short-term rental properties are currently listed in the city. This figure may seem small compared to the literal thousands of long-term rentals you’ll see on Zillow, but it still indicates a growing short-term rental market in Detroit neighborhoods, as we’ll see in the statistics below.

1. Growing Average Rent Prices

Average rents dipped in major cities across the nation recently. But Metro Detroit as a whole is faring well, where the fastest growing rent year-on-year in the area is in Ann Arbor, where average rent has gone up 23.5% since last year—that’s a 16.1% rent increase.

The chart below shows a 20% rent increase for three-bedroom rentals in the past year:

Source: Zumper

Increasing rent means increasing cash flow for you as the investor. Combine rent increases with the impressive 50% average occupancy rate we mentioned, and you’re looking at excellent returns in the City of Detroit.

2. Increasing Property Values and Appreciation Rates

Detroit properties are increasing in value, which means you’ll get to reap excellent equity gains if you hold onto them for the long haul. Zillow reported that Detroit home values are is at $69,330 (very affordable), and Norada said the values increased by 23.7% in the past year (very valuable):

Source: Zillow

The latest forecast announces that Detroit median home prices will rise by 2.1% from 2022 to 2023.

The city’s real estate also appreciated 89.7% in the past decade, placing it in the top 30% of all cities nationwide for property appreciation. In the last 12 months, its rates have remained among the highest in the country, which explains why short-term rental investors continue to find success in the city.

3. Improving Tourism in the City of Detroit

Michigan’s Motor City has had a unique culture, distinctive architecture, and revitalization renewal efforts for the past years The city is now a prominent tourist destination, called by Time Magazine a “newfound glory,” where travelers are playing a role in its vibrant economic growth.

Eating alone is becoming a real treat in the city, where one can experience Indian cuisine in the Midnight Temple near the Eastern market, immerse themself in Chef Maxel Hardy’s rosemary-filled Rosemary cafe then stray into the adjacent cigar lounge, Byrd. Or, chow down fresh seafood boils straight from the Great Lakes at What’s Crackin’.

The city has dramatically been revitalized from “dangerous” to vibrant and impressive. Today, people are saying, “I didn’t expect the city to be like it is, it’s really amazing!” and “We got the chance to see the city and I really would recommend [coming] here.”

Owner of Multilingual Detroit Motown Tour, Dildora Damisch, shares, “This year, I cannot believe, I am booked every single day! And people coming from all over the world! Unbelievable.” And why wouldn’t she, with more than 2 million international visitors in one year alone?

Accommodations are wildly increasing in the City of Detroit to serve the influx of travelers. There are over 500 new hotel rooms currently in development, including the 158-room Cambria Hotel opening in late 2022 (with golf simulators, Bluetooth mirrors, and the  Detroit Taco Company Bodega), and ROOST Apartment Hotel is set to open in early 2023 in Book Tower, a restored iconic Detroit building.

Your short-term rental could easily leverage the city’s growing tourism industry.

2023 is a Great Year for Detroit Short-Term Rentals

Without a doubt, 2023 is an excellent year to either expand your portfolio or start investing in the City of Detroit’s short-term rental property market. With growing average rent prices, increasing property values, and improving tourism in the city, impressive historical trends will likely continue their upwards direction for years to come.

Want to learn more about Detroit real estate? Join as a member, subscribe to our newsletter, and attend our upcoming meetings! We’re doing everything we can to ensure that you’re prepared, equipped, and confident enough to reap great returns from Metro Detroit.

Categories
Landlords

Marketing a Rental Property: Why & How Landlords Can Brand Their Rentals

: A young designer developing new branding styles
Source: Photo by Faizur Rehman on Unsplash

What do you think of when someone says “electric car”?

I bet you’re thinking of Tesla. And you’re not alone—most people will think the same.

Tesla has established itself as a high-performance energy automaker with a futuristic outlook. Tesla’s branding is so strong the company aptly grabs premium position in every market it’s entered—from solar panels to batteries, the big T is the front-row storyteller.

Wouldn’t it be fantastic if you could use the same strategy for your rental property business?

Good news: You can, and you should. Branding is a powerful marketing tool that enables you to put your business in any position you choose, regardless of whether you want to be known as the “best bang for your buck” apartment unit or the “most exclusive luxury” rental mansion.

Let’s discuss why and how you can brand your rentals to increase your property’s appeal.

Why You Should Brand Your Rental Property

Giving your rental units a brand helps them stand out from the competition, giving you an edge that gets the attention of potential tenants. Unique branding can especially improve your property’s recognition in areas with rentals similar to yours, like if you own one unit in a large apartment building, for example.

Here are three benefits you’ll get from branding your rentals:

  • You’ll attract more tenants. A recognizable brand boosts marketing efforts. Your reputation will spread, tenants will advertise word-of-mouth to their friends, and even when you’ve reached full occupancy, the fact that you’re “fully booked” increases the value of your rental and its demand. You’ll unlikely run out of prospective tenants to keep your vacancy rates low.
  • You’ll attract better tenants. Marketing to the needs of your target demographics proves successful when you attract the very tenants you want. Better tenants maintain the home well and are less likely to move out for trivial reasons, protecting your assets and returns in the process.
  • You’ll be able to charge higher rent and fill vacancies faster. You can potentially charge higher rent if you brand your rental as a premium place. There’s also the concept of perceived value, where tenants pay more for a distinctive experience—even if you didn’t necessarily spend more for the rental property. They’ll be hesitant to leave and likely to justify the higher rent.

The advantages of branding only becomes more apparent if you put yourself in your tenant’s shoes. If you’re choosing from various units to rent, and one of them provides an incomparable experience that’s just your style, wouldn’t you bet all your marbles there? Exactly.

How You Can Brand Your Rental Property

Branding goes beyond creating fancy logos and a unique color scheme for your walls. To brand is to create a compelling story that drives emotion and encourages prospective renters to join the experience.

The key to successful branding is authenticity and trust. Your goal should be to show your potential tenants that your business is valuable to them because they are valuable to you. Caring about your target demographic means showing up for them by offering properties that accommodate their styles.

Here are the best practices for a unique rental branding that’s one of a kind:

  • Communicate a clear message. What do you want your tenant pool to remember about your property? If Tesla is about high-powered and clean electric machines, what’s your rental’s selling point? Make your message memorable, impactful, and novel.
  • Connect with your tenant’s values. What does your tenant pool want out of a rental? What kind of lifestyle are they dreaming of? Prioritize what they prioritize by understanding their perspective. Tesla’s audience prefers luxurious comfort that’s fun. What does your audience care about?
  • Motivate potential renters to act. Branding is marketing, so be clear about what you want your tenant pool to do. Are you looking to fill units quickly? Do you want to make reservations for future openings? Or do you just care that the tenants you fill in are in-tune with your movement to, say, be sustainable or promote mental health, and 100% occupancy isn’t really the goal?
  • Create a sense of belonging. We all crave the feeling of being “home” with like-minded individuals. Create an atmosphere of support and transparency to gain the trust and loyalty of your tenant pool. They’ll see your rental as a safe haven—not just another roof over their heads.
  • Be consistent across all touchpoints. Ensure that your branding bleeds across everything you do and produce—from listing descriptions to how you talk with applicants and take care of your current tenants. Imagine if Tesla suddenly releases a budget-level electric motorcycle for delivery services. That’d be so jarring you’d doubt its entire branding altogether!
  • Stay updated with any changes in the tenant pool. Your target audience’s needs change. Keep a pulse on their demands and behaviors to ensure your branding stays relevant.

The goal is to set yourself apart from competitors to attract the best tenants into your rental business and keep occupancy high. Listening to one “secret sauce” to all successful brands, which you can apply to one or all of the homes in your portfolio.

Good Branding: The Not-So-Secret Ingredient to Business Success

Just because your rental business isn’t as big as the giant Tesla corporation doesn’t mean that good branding won’t work. In fact, branding is what makes a business grow to unprecedented heights.

So, craft a compelling message, connect with your target market’s needs and values, motivate them to do business with you, create a sense of familial belongingness, be consistent with your promise, and stay updated to remain relevant.

The more you understand the decision making process of your tenant pool, the more you’ll see the opportunities for using branding as a real estate marketing strategy.

Join our upcoming meeting for more investment tips! We are a growing community of like-minded individuals sharing our learnings in the real estate space. Subscribe to our newsletter as well and become a member to become the best property investor you can be.

Categories
Wholesale Wholesaling

Every Wholesaler’s Ultimate Guide to Driving for Dollars

Man driving.
Source: Why Keifrom Unsplash.

You know that boarded-up, overgrown property you drive by every day? Other wholesalers see those, buy them for a low price, and sell it at a higher price point to investors willing to fix the property up. You can do the same—the scouting method called Driving for Dollars.

Scour the streets from behind the wheel of your car, and seek out hidden opportunities in real estate! In this article, we’ll look at why driving for dollars is a good wholesaling strategy, how it works, plus tips on how to make your driving for dollars an organized process.

What is Driving for Dollars?

Real estate wholesalers who drive for dollars comb through neighborhoods looking for distressed or neglected properties from the back of their steering wheel. Once they see a potential property, they’ll cold-contact the owner to see if they’re willing to sell (i.e., a motivated seller). If the owner’s willing to sell, the wholesaler puts them under contract and then finds  an investor to purchase and rehabilitate the property.

The driving for dollars strategy is an excellent, no-brainer way for wholesalers to seek out potential properties and seal more deals. With a watchful eye and a bit of savvy, you could uncover hidden gems and pocket some serious profits by, very simply, driving around.

What Should You Look Out for While Driving Around?

Driving for dollars focuses on distressed homes that present the possibility to be sold under market value. But, what does “distressed” actually mean? Here are the 3 criteria that qualify a property as such:

#1 Physical Damage

Physical house damage represents the most important kind of distress that you’ll look for. While you’re driving around the neighborhood, look for obvious signs that the property is run-down in any way, like:

  • Broken windows
  • Boarded-up doors and windows
  • Damaged driveways
  • Damaged roof
  • Messy garden or yard

Clear signs of distress qualify a property for your list of potential properties to wholesale. Take notes and photos (if appropriate) of these signs so you can look back at them when you need to.

#2 Outdated Design

A house may be outdated if the interior or exterior design isn’t aligned with the current trends. Outdated designs can range from something simple like unpopular wall colors, unmentionable carpet in the kitchen or laundry space, or seriously unsightly popcorn ceilings that have to be removed for health reasons.

For interior designs, you’ll have to ask for permission from the owner to enter the premises. Once you get in, it’s as simple as keeping an eye out for outdated details.

#3 Owner’s Situation

An owner’s financial or other life situation might be a distressing issue that motivates them to sell an inhabited or uninhabited run-down property for below market value. The owner’s situation might not be something you can quickly see on a drive-by, so make note of physical signs of property distress first and use them as clues to learn more about the owner’s situation.

For example, if the house is a rental property, the owner might not live in it and could be too busy to deal with maintenance. They might want to avoid going through the hassle of selling the property and wholesaling could be an easy solution to get rid of it for quick cash.

Want to Make Driving for Dollars a Lot Easier?

Driving for dollars is a great way for beginner wholesalers and experts alike to invest in the market, but it takes time and patience. It can be difficult to keep track of every street you’ve driven on and every house you’ve seen.

Several apps designed to guide and organize driving for dollars are available on the market—the most notable of which is called PropStream.

The PropStream driving for dollars app is designed to make driving for dollars a straightforward process. The app’s features narrow your search according to your preferred filters to save you time on your drive.

PropStream driving for dollars app provides: 

  • Property results up to 50 miles away: Filters for specific property criteria
  • Filtered property information: Narrows your search by lot size, year built, home features
  • Multiple Listing Service (MLS) statuses: Tells whether the property is on or off the market, for how many days it’s been listed or off-market, and if the listing is below the market price
  • Pre-foreclosure or bank-owned: Removes properties listed as pre-foreclosure or owned by a bank, whether you’re interested in that or not

If you want a more flexible drive looking for distressed or vacant homes, another PropStream feature, “just drive,” gives real-time and recordable route directions. You can even tap on properties around you to see the property’s detail and save the listing for future reference.

Overall, PropStream helps you keep your freestyle property searches organized.

Drive for Dollars, Find the Right Property, and Profit

Driving for Dollars is undoubtedly a valuable skill to add to your real estate wholesaling repertoire. Whether you’re looking to make some quick cash or engage in some long-term projects, the effort that goes into driving for dollars can yield great rewards.

If you’re dedicated and have a sharp eye for detail, you’ll properly assess potential properties to wholesale and identify deals that fit your criteria. So get out there, keep that eagle eye on the street, and you’ll land a lucrative deal before you know it.

Sign up to our newsletter to know what’s the latest news in the real estate world—to help you make the best investment decision.

Categories
Short Term Rentals

6 Must-Have Decor Trends to Attract Short-Term Rental Guests this 2023

Source: TheJournal.ie

The rental industry isn’t always rainbows and butterflies. Political, economic, and health climates all take their toll. And as any STR (short-term rental) owner knows, the competitive landscape combined with the realities of the off-peak season can leave you—how shall we put it?—stressed out about your listing. 

So we’ve analyzed a company that’s consistently kept its name in the game, rain or shine. To this day, Airbnb has maintained over 4 million hosts and over 6 million active listings worldwide.

A good chunk of their success is hidden in the details—like the throw rug, wall art, and silverware. Looks aren’t everything, but in this industry, it’s certainly something to put you ahead of the competition.

We’ve gathered the latest decor trends to enhance your property’s appearance without sacrificing comfort and functionality. Incorporating any of the following ideas into your short-term rental property will keep your reservation book filled and protect your cash flow through the ebb and flow of the local market.

Top Decor Trends for Short-Term Rentals

From subdued neutrals to bold statements, these are the top decor trends for 2023 that will encourage guests to book with you. Whether you’re looking to overhaul your entire space or just give it a little sprucing up, use this guide to get inspired and create a rental that’ll smackdown competition.

1. Over-the-Top Textured Accents

Texture. It’s the interior design style people are into nowadays.

Besides exuding fun and playful vibes, textured accents bring a welcoming surprise to the space. You don’t have to invest in big statement pieces—a tufted rug or simple ribbed vase is enough to give an exciting twist to a generic-looking space.

Interior designer Joshua Smith predicts textural design trends this year to add “architectural interest while injecting an earthy texture” and to texturize natural light splashing with cloth details. He mentions specific designs like tongue and groove-boarded ceilings and light-filtering curtains.

2. The Maximalist–Minimalist Sweet Spot

There’s the maximalist design, wherein the decors are overdone and overwhelming. Then there’s the minimalist design, which means “the less, the better”. Which one should you lean toward?

All-out minimalism has the tendency to be blah and boring for short-term rentals, so designers this year recommend finding the sweet spot between maximalist and minimalist to create the perfect cozy rental. For example, look for ways to integrate fleece, knit blankets, and candles without going overboard.

3. Nostalgic Design Elements

If the pandemic gave you a hankering for the good old’ days, then you’re in luck because the 1980s are back! Design elements that were once popular are making a comeback this year, including disco-inspired and psychedelic decor. Millennials and members of Gen Z are embracing this trend, even showing off their whimsical pieces on social media.

Renowned interior designer Kellie Burke recommends coordinating vintage treasures with fabric rugs and wall coverings. “The ’80s are calling: they want their mauve gray geometrics back in fashion!” she says.

Even if completely retrofitting your rental unit isn’t your thing, don’t shy away from incorporating a few design elements to ode the decade. You’ll be surprised how many people find bold colors and patterns “modern” and appealing in this day and age.

4. Curved Furniture Pieces

This year, expect to see a lot of rounded furniture—chairs with curved backs, ottomans, and sofas with sloped arms. According to interior design experts, this unique design element creates a soft and feminine vibe, making it a go-to option if you want your space to exude a homey atmosphere.

“Furnishings of white oak with curves bring a fresh and soft wavy feeling,” recommends boutique lifestyle design firm Michelle Harrison Design. “From curved corners within walls and cabinets to curved backs of sofas, dining chairs, and arched cabinets, the angular line of furnishing is softening.”

Stray from straight lines and edges and consider curves to take your rental property design to the next level. “Things like rounded furniture allow for a different, bold style without looking garish or unsightly,” Diesel shared to Insider.

Following this design trend doesn’t mean investing in big pieces of furniture—rather, go for curved accent pieces, such as figurines and flower vases. Every small thing counts!

5. Unique Thrifts That Tell a Story

“Out with the old and in with the new,” they say—but we say “out with that adage.” Thrifting furniture and art pieces can give your rental place a special touch that stands out from the rest of the market. One-of-a-kind thrifted pieces add character to your space and even tell a story. Add to that, thrifting is better for the environment, and the cheaper price tags are more respectful of your pocket.

“A trend that will continue to grow is buying used, vintage, or antique furniture,” recommends Insider Interior Designer Jen Dallas. “It is an amazing way to add character to your home and so much better for the environment when we do.”

But be careful! Going all vintage can turn your property into a thrift store—which leads us to our next and last tip for you: mix and match.

6. Mix and Match

Enough with the furniture sets. Those get outdated quickly. Instead, mix and match your furniture.

You can personalize your rental space and add charm and character by carefully choosing pieces that complement each other. Get creative by mixing and matching new and old pieces. You don’t have to worry about things looking the same, but try to create a cohesive balance of multiple styles.

Don’t be afraid to have fun with it or even show your personality through these pieces!

Increase Your Property’s Appeal with Decor

Most landlords are tempted to save money on decorating their rental properties by doing the bare minimum. But ignoring the details won’t attract guests or help you stand out from the competition—you’ll only lose out on long-term investment gains.

So spend a couple of dollars on your property’s decor this year. You’ll give yourself the opportunity to earn thousands in increased bookings, earning back your expenses in a jiffy.

Join as a member of REIA today and attend our upcoming meeting if you’re ready to learn more, and sign up for our newsletter so you never miss any important tips to become a successful house flipper!

Categories
Landlords

Your Essential Guide for STR Investing—With Video Tutorials!

Photo by Karsten Winegeart

As of 2023, there are more than 4 million Airbnb hosts worldwide and more than 6 million active listings on the website. Airbnb covers over 100,000 cities in the world, where 150 million users have booked over 1 billion stays on the platform.

With how much money the short-term rental (STR) industry is currently making, it’s no wonder that it’s a highly competitive market.

If you plan to enter the STR industry, you need to have a strategy to stand out. STRs are a dime-a-dozen in most tourist traps and high-traffic areas. If you don’t have a well-thought-out plan, you’ll end up with higher vacancy rates and high turnover—resulting in less cash in your pocket.

To help you set up the STR of your dreams, we’ve listed out all the steps you need to take and some extra videos to watch to learn more. Let’s get started! 

Step 1: Manage Your Finances

Before anything, you need to get your finances in order. And unless you’re planning to buy a property out-of-your-pocket, you’re going to need financing.

Ideally, you’re going to want to have a credit score of at least 620 to qualify for a property loan with reasonable terms. With your credit score in order and your loan secured, you can move on to the next step of the process.

For more detailed info, check out this video: Financing For Rental Properties 2020

Step 2: Find Your Location

With your finances secured, you can now start scouting for a location.

Above your property, location is the most important factor that determines success. Establishing an STR in a guaranteed market can reap good rewards. Take, for example, Lansing, Michigan, which is one of the top locations for STRs:

  • Average Property Price: $102,100
  • Average STR monthly income: $2,678 (the average STR host earns $924 monthly)
  • Average Cash-on-Cash Returns: 11% (you want to target between 8-12%)
  • Average Occupancy Rate: 64% (which is above the US average of 44%)

As with any big purchase, you want to have as much information about the area you intend to invest in. You can use tools like Mashvisor to find out these details.

For more detailed information on finding the best places, check out this video: Where to Airbnb  –  How to find the Best Airbnb Cities in 2021

Step 3: Learn the Laws on STRs

Depending on the area of your choice, local laws might have restrictions in place for STRs.

Take Detroit, MI, as an example. Currently, the local government is looking to heighten restrictions on STRs, but the federal government is against the proposition.

Now I know what you’re thinking: What about being unique? You want your STR to stand out of competition to attract more guests, but there are limitations to how “unique” you can be. You can offer cool features like workout equipment or an air fryer in your property, but you can’t go against local regulations, like establishing your STR in residential areas or near airports or highways.

Learn the laws on STRs in your area, and work with them instead of against them.

For reference: Michigan Abolishes Local Laws That Limit Short Term Rentals

Step 4: Buying Your Property

Now that you know the location and you have studied the laws, it’s time to look for your investment property. You can use the MLS to look up properties within your price range and ideal size. You can also look through sites like Zillow or Redfin to scout for properties.

You can also choose to work with wholesalers if you’re willing to go through the process of heavy renovations.

Another option available for you is to rent a property that you can turn into an STR. You’ll work with a landlord that’s willing to sublease their property. After coming to terms with the landlord, you can use their property as an STR.

Check out 7:03 to 8:43 of this video for more info: How To Buy Your First Airbnb Property | Beginner’s Guide

Step 5: Redecorate Your Property

It’s highly unlikely that the property you just bought is great for an STR right out of the box. So, you’re going to need to make some adjustments to attract tenants.

A good tip would be to paint rooms a neutral color. You want to appeal to the biggest audience possible, and to do that, your property has to give off a homey feel. Neutral colors can help achieve this. Another way to accomplish this is by fixing the property lighting. No one enjoys harsh lights, so setting up dimmer switches for lights can be a way to set mood lighting.

These are just some general tips for redecorating your property; feel free to give your personal touch.

Take a look at this video to see how to revamp your STR: Airbnb Hosting: 4 Interior Design Tips to Make Your Airbnb Standout! 🔥(2018)

Step 6: List Your Property on STR Sites

Now it’s time to list your property.

But before you do that, you need to take care of some things first. First‌, you can use Mashvisor again—or similar tools—to run comps on similar STR prices  within a one-mile area. You need to keep your rates within a reasonable margin of your competition.

The next step is to take attractive pictures of your property. For example, use paintings or artwork as background pieces to a listing photo. Also, make sure to thoroughly clean rooms when taking photos. Dust can make or break a tenant’s decision to book.

Lastly, highlight your STR’s amenities. A 2019 survey showed that a deciding factor for bookings is amenity availability; 74% of people are more likely to book your STR if it has Wi-Fi.

Once you have accomplished these 3 things, you can list your STR.

We recommend watching this video for more tips: How to make an airbnb listing LIKE A PRO (step-by-step tutorial)

Use this Guide to Navigate the Waters of the STR Market

Investing in STRs can be a scary prospect. You’re up against a lot of competition, and it might be challenging to stand out. With no guidance, it can be daunting to invest in the market.

But, with our online syllabus, you don’t need to worry. If you follow our guide, you won’t find yourself lost. We will guide you through every step of investing in an STR.

Do you have any expert advice for STR management? Let us know below!

Categories
Wholesale Wholesaling

Which Comes First in Wholesaling: Cash Buyer or Property?

Source: Scott Graham from Unsplash.

Wholesaling can be challenging, but you’ll close deal after deal if you have the right approach.

You might be wondering, though, should I prioritize getting cash buyers or finding a property first?

On the one hand, if you have cash buyers first, then you already have potential clients lined up to buy your property.

On the other hand, if you have a property to sell, then you’re left with just finding the right buyer to close the deal.

Is one better than the other? Let’s consider both sides.

What Happens When You Get a Cash Buyer First?

Believe it or not, finding cash buyers in your area is easier than you think, because there are a lot of sources that teach you how to do it.

The plus side of focusing on building your buyer list first is that, when you have a cash buyer first, you now have a guide on what kind of property you are looking for. Ask what your buyer is looking for, their purpose, price range, etc.

After interviewing your client, this will help narrow your search criteria. You know where to look and if you should scout for a commercial space or a residential unit. When you get back to your client to pitch a potential property, you have more chances of closing a deal, since you already know what they want.

Having a buyer first is also an advantage because you can ideally close quickly once you find the right deal. And the quicker you can close deals, the more deals you can do (read: the more money you can earn) each year.

What Happens When You Get Property First?

It’s easy to find buyers if you’ve found a great deal. Nobody declines an excellent real estate investment opportunity, after all. You only have to get the property under contract and you’re free to market or sell it to any of the potential buyers in your list.

That being said, here are few marketplaces and strategies you can pursue to find great properties:

  • Attend REIA Meetings: REIA stands for Real Estate Investors Association, where investors support and help each other via group and individual meetings. These meetings offer information, ideas, and networking within the industry. For example, this blog you’re reading is from REIA of Oakland, where we help anybody who’s interested in investing in Oakland County.
  • Online Paid Ads: There are 5.16 billion and 4.76 billion internet and social media users worldwide, respectively, which means using digital ads opens the door to better reach. Connect with your target audience through paid ads. You can set up ads through social media or Google.
  • Online Marketplaces: Facebook marketplace and eBay are great examples where you can list your property online. Although, you have to make sure that you do your research to ensure that you don’t violate any real estate policies on the platform.

Some people say print ads are still relevant. But we beg to differ. It’s a complete waste of time if you ask us, even if 82% of consumers trust print ads when making purchase decisions—in reality, nobody pays any attention to them, especially for major purchase decisions like real estate.

Newsflash: It Doesn’t Matter Which Comes First

I hate to break it to you, but ultimately, it doesn’t matter which you start with. Because finding good deals and serious buyers are the two biggest challenges of wholesaling real estate in general. Neither one is easy, and both are essential.

It takes time and experience to find good deals on the market. So what you really have to do is build your property portfolio and cash buyer list at the same time. Once you’ve mastered the art of finding good deals and have a broad network of cash-in-hand buyers, the rest will be relatively smooth sailing.

Do you agree that finding a good deal is the real challenge? Or do you think building a buyer list is tougher? Let us know in the comments below. And don’t forget to sign up as a member, so you can attend our upcoming meetings for more tips on real estate investing.

Categories
Short Term Rentals

What Are Airbnb Guests Dreaming of in 2023 & How can You Benefit?

Checking out Airbnbs for an upcoming trip.
Source: Pexels (cottonbro)

In recent years, short-term rentals (STR) like Airbnb have become a popular choice for travelers. What began as a small start-up has turned into a global phenomenon, with millions of people booking rooms on the platform—especially after the COVID-19 pandemic, where everybody avoided hotels.

But what exactly are people looking for when it comes to their Airbnb accommodations? Just because travelers are back doesn’t mean it’s the same as pre-pandemic times. You need to know what’s trending and if people are after something luxurious or more relaxed and homey experiences.

Knowing that is crucial because it will help you create an Airbnb that guests will want to revisit repeatedly, decreasing your vacancy rate and ensuring that profits keep coming in. So let’s take a look!

6 Trends That’ll Make You the Ultimate Airbnb Host in 2023

Here are six trends to boost your bottom-line profits and increase your occupancy rate. If you’re an Airbnb host or an STR owner, make sure your rental has all the amenities guests are looking for to stand out.

1. Business Travelers Are Back: Make the Space Work-Friendly

Given the COVID-19 pandemic, the business travel industry took a big hit and left it uncertain. Luckily, things are opening up, and business travels are expected to increase this 2023. There’s also anticipation for an increase in business travel spending. This increase means you could receive an influx of professional guests hoping to find comfortable workspaces.

So consider offering amenities that business travelers appreciate, such as multiple plugs and ports for easy charging, fast Wi-Fi, and a spacious desk. You might also want to include a safe where they can store their valuables—anything to make the space feel like a work-home hybrid spot.

2. Travel Is 24/7: Don’t Force Guests to Stick to a Strict Schedule 

People travel around the clock and frequently encounter unexpected situations along the way, so make your check-in time flexible. They can’t control what life may throw at them, so they’ll surely appreciate it if their accommodations can flex along with them.

For instance, suppose a guest’s flight was due to arrive at 9 p.m., but because of aircraft maintenance, they were delayed by two hours. If you listed your Airbnb check-in time as until 10 p.m. with no exceptions, then you’re making everyone’s lives difficult—especially given that 20% of US flights at airports saw delays last year.

So put up a lockbox so that guests can self-check in. Offering options make your listing more appealing to those trying to limit contact with others and increases convenience and safety for all parties.

3. First Impressions Matter: What Will Guests Think?

What will your guests think when they walk through your short-term rental door? Will they notice the badly-lit hallway with peeling paint and crooked frames or the cozy space that feels like a home away from home?

Guests likely won’t spend much time in the entrance area, but this serves as their first impression of your property—don’t miss the chance to wow them right from the start.

Some Airbnb hosts repaint their front door every season, while others opt for more sophisticated features, such as outdoor lights with motion detectors. The goal is to ensure that the “wow factor” is there when the guests arrive, and that the feeling will stay with them throughout their stay.

4. Hotels Aren’t Cool: Turn Your Airbnb Into a Home

People book an Airbnb because they want to feel right at home, as some studies have found. Even when exploring places they’ve never been to before, guests wish for a quiet space to relax. So, to make their stay homey and enjoyable, consider providing these amenities:

  • Toiletries (e.g., shampoo and conditioner)
  • Bath towels and fresh linens
  • Local snacks and drinks (including drinking water)
  • Simple office supplies
  • Don’t forget coffee & tea!

Additionally, you can invest in a Smart TV so they can stream their favorite films and shows, similar to how they probably spend their extra time at home. Moreover, you can go the extra mile and provide a local guidebook to help them explore the area, especially if you get many out-of-town travelers.

5. Minibars Are Useless: Stock the Kitchen with Essentials 

Like most travelers, Airbnb guests will most likely order delivery or grab some take-out for their meals. But one advantage that most short-term rental properties have over hotels is a fully working kitchen, where guests can opt to cook as they do at home.

Of course, they won’t expect your property to have cupboards filled with fresh groceries and a refrigerator stocked with milk and cheese. But there are certain things they hope they won’t have to buy, such as cooking utensils (e.g., pots and pans) and pantry basics (e.g., salt, pepper, sugar, and cooking oil).

Providing a kitchen with all the essentials ensures that your guests have a positive experience in your Airbnb, where they get the comforts of a home beyond that of a hotel room.

6. More Than a Place to Stay: Offer an Experience

You can offer more than a place to stay by offering an experience, too. Add value to your listing and leave your guests with a special memory by sharing a talent or passion of your own. You might decorate with a collection you’ve built over the years or paint the home like your bright, Latin American childhood house.

Integrate activities into your rental house by focusing on one of the 3 categories of Airbnb Experience: culture & history, food, or nature & outdoor. For example, you might focus the vibe of your rental on how to cook like a local, guided hike, or yoga. Whatever activity you choose to focus your style on, ensure its hands-on. Airbnb also has rules for these experiences to be approved, so don’t forget to check them out.

Leaving your guests with a lasting memory (not just that they booked a place to sleep) makes them more likely to recommend and return, which means a chance to earn more cash.

Give Guests Their Dream Airbnb Stay

Airbnb isn’t going anywhere. And with the travel industry starting to return to its pre-pandemic levels, you’ll likely see more and more guests booking your property. Ensure it has everything they’re dreaming of—whether that’s a homey space or world-class amenities—so your rental property investment is always booked. The more you offer, the more they’ll return!

Looking for someone to handle your Airbnb property? Our team of expert property managers are here to help you out. With more than two decades of experience, they’ll take your listing to the next level.

Get in touch with us today to find your perfect partner.

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