One of the many things that people find difficult about property management is just how time consuming it can be to do everything on their own. When people first get into the real estate investment game, they assume that they’re looking at a passive form of income. While that is definitely possible, it rarely occurs. You need to conduct a far-reaching marketing campaign to help attract the largest pool of high-quality applicants. The cost to advertise your property across the nation to reach those moving to Sun City, is quite costly.
All of this adds up to a full time job in and of itself, which can be especially difficult if you’ve already got a full time job in addition to a personal life that you’re trying to maintain. That’s why The Stacy Group is here – to help take all of these stresses off your plate so that you can get back to doing what you do best – living your life. Not only will we suggest modifications that you can make to the property, but we’ll also do our best to get you a high quality tenant.
What expenses will an owner face?
Yard Care: On all of our properties, owners will maintain the yard care. This is because the HOA holds you (the owner) accountable. You will need to hire a company that you trust to communicate with you on any yard issues.
Utilities: We handle the utilities two ways – if it’s a furnished home, they stay in your name and you account for the cost in your all-inclusive price. If it’s an unfurnished home, the tenants will put them in their name and you will set them up in a “tenancy status” so they will automatically role into your name when your home is vacant. This way you never have to worry about remembering to transfer them between tenants.
The furnished homes must also have basic cable (with local channels included) and wifi.
Dues/Insurance: You will also be responsible for your HOA dues (currently $1090/yr.) and your home owners insurance. We can recommend some companies to you. Your home owners policy must be told this will be a rental dwelling.
Code/Cleaning: There is some general set up cost to bring your home up to Texas property code (usually $200) & it must be professional cleaned (usually $200). The owner pays the first time and the tenant pays after.
% of Rent: The management fees. We only charge fees when a tenant is in the home. Unlike other companies, we do not charge first months rent or cost to advertise, etc. We only charge a fee when a tenant is in the home. If you don’t make money, neither do we.
Odds and Ends: It is a home, and as you know from owning your own home, things break. As the property owner you are responsible for the upkeep of the home. We also recommend a couple of things. If you go purchase several air filters and leave them in your garage with a note that labels each month on them, the tenants are more likely to change them. An A/C is one of your biggest investments and this small purchase is worth it. We also recommend setting up a pest control service to come at least a couple times a year, if not quarterly, to protect your home. We can recommend someone to you. Some of the homes also have water softeners. We recommend starting each tenant off with an extra bag. The local City Market can deliver these to the home.
Furnished Homes: We have a list of required things that must be in the home that we will furnish to you. Please keep in mind that the tenants coming in have certain expectations. Pillows, Sheets, Towels, etc. should be replaced every year. Comforters and Blankets should be replaced every couple of years. Tenants are expecting the home to be updated and accommodating. Please keep these expenses in mind. Furnished homes should have some basic starting off supplies for tenants such as dishwasher soap, toilet paper, washing machine soap, pens, paper, etc.
Virtual Tour: While we can take photos of your home, we are not professional photographers. If you would like us to schedule a virtual tour of your home for professional photos that will be used for marketing on our website, on the internet, and for flyers we can arrange that. The cost is around $100.
Badges/ID Cards: Any owner that leases his or her home needs to make sure they do not have any activity card issued that is assigned to that address. If they do, they must turn it in to the CA office so that the tenant can be issued one. The CA office will hold your card for the remainder of the tenants lease.