98% OF INVESTORS MISS THIS AUSTIN REAL ESTATE FACT
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TELESCOPE TURNED THE WRONG WAY
98% of new Austin investors don’t know what the leasing season is — the season in Austin to keep your properties on to have top-dollar as well as less than two weeks of vacancy a year.
Most investors have the telescope flipped around the wrong way and approach real estate investment via the lens of residential real estate. Residential purchasing has very little to do with investment real estate as the primary focus building rental income is property management and leasing. The acquisition of the asset and the sale of the asset in the future are activities which are done quickly when compared to what the corps battle is in investment or rental real estate, or income properties, or whatever you want to call it.
Many agents can help assist with a residential purchase contract but before proceeding it’s imperative that your agent they have leasing experience in apartments, and private MLS listed houses as this is the entire leasing market (the one you will be in competing with everyone else).
Most licensed agents do not work in the leasing segment of the real estate industry. Austin is an exception and has a rich deep and fast moving rental industry that is directly tied to real estate Investments which Austin’s rental market keeps full with top prices when handled properly.
When it comes time for the investment property to go on the lease market, this is where you would need a leasing professional.
FINDING INVESTMENTS IS EASY
Most success in rental income isn’t made on finding or choosing the property but how it’s handled. How much did it sit on the market before at least? How long is the lease? What time of the year is it. Granite’s out, marble is in. The city doesn’t allow Airbnb — the list goes on.
Purchasing is directly tied to keeping a rental property full and this is greatly affected by the city’s leasing season. Austin Texas has a very defined season that is based upon the University of Texas semester system and even though people have graduated and are no longer associated with the university, the city largely tends to be on this schedule. Having an asset on the proper schedule assures that it has a vacancy that’s never more than two (2) weeks a year and gets top dollar as an income producing property. Not being on the proper schedule and having the property available in the wrong months can quickly lead to the end of any rental income endeavor in real estate.
Before entertaining any kind of idea that you will be flipping a home make sure to consult your agent and make sure they have at least 20 personal residential sales under their belt and have leasing experience with at least 50 career leases within the last year-and-a-half. if they don’t have this they are not in the game and are beginning their journey much like you.
HOW INCOME PROPERTIES REALLY WORK
Property Management has changed greatly just like the real estate industry has over the past recent years, technology putting more power in people’s hands. Property management is the thing that is done the most throughout the Investments life as it is the day-to-day handling of this asset. How you receive payment and field repairs has been revolutionized and Property Management can be done well for less money. Also keep in mind if you don’t understand the leasing Market you will not understand what kind of product to create remodel or make for the pub. Simply ‘doing a remodel’ doesn’t translate into success in markets with specific defined consumer appetites.
Understanding the apartment market even though you have a house as an investment property is important since these are your competition as well. Many apartment communities offer one and two months off, a gym, covered parking at cetera. Although most people Pine for a house they wind up going to an apartment since it is cheaper newer and nicer. pets also come into play in regards to rental income homes as most people get them to have a yard for their pet.
Late fees, how you receive money, the minimum payment due before you’ll make repairs are all things that keep your life and weekend free, managed and controlled buy a proper relationship and contract in place from the onset. This is very important with tenants so you can set a tone of business, and pro expectations of both parties as evictions are not only expensive and time-consuming but they’re an emotional drain.