So do you own an investment property, or have the dream of owning one one day? Then you are going to want to watch this video. Owning a rental property, or even a few, is a great way to build wealth. Just look at some of the wealthiest people in the world, and most of them gain that through real estate. But owning a rental property is no walk in the park, but having the right management in place can be.
I was recently referred to an investor that owned three duplexes here in Burleson, and he had had a bad experience with management in the past, so he had been managing it himself for the last seven years, from another state. He had mostly long-term tenants, which is great normally. However, his units were in really bad shape.
First, let’s talk about the condition of the units, and then we’ll go over the numbers. Take a look at some of these pictures of how the tenants left the property. It’s pretty bad.
So our team jumped right in. We got these units cleaned out, updated, and looking like solid investments again. Lets take a look:
We replaced all the siding and trim on the exterior, which helped make it more energy-efficient. We also gave it a fresh coat of paint to add to the curb appeal. Inside, we did a complete remodel. We replaced all the flooring, baseboard, trim, and doors, and painted all the walls and cabinets. We resurfaced the bathtubs to make them look almost brand new. We replaced most of the appliances, and just did a good overall general maintenance on each unit. We handled all the make-ready process and made sure to negotiate reasonable rates to save this owner thousands of dollars.
So now let’s talk about the numbers. This investor was collecting $3,550 for monthly rent when he should have been getting closer to $6,300. So each month, he was losing $2,750, which totals $33,000 annually. So I’m happy to report, we have all these units leased at market rate, and we also improved the property value. So we’ve made this a true asset.
So, if you’re interested in hearing about our property management services or you have general questions, reach out to me. We look forward to earning the opportunity to do business with you.
The Spears Team Property Management