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Title Seasoning Requirements For Investors Flipping Property

Property flipping is a practice where a property was recently acquired by an investor and is sold for a considerable profit within a short period of time. Many lenders have title seasoning requirements for homes that are being flipped by investors. Lenders have specific guidelines that must be met before they will originate a mortgage for a prospective borrower.

Most lenders will require a seller to have ownership a minimum of 60 days before a buyer can obtain a mortgage for the subject property being flipped. Additionally, a desktop appraisal review will be required to further audit the initial appraised value of the home if the seller has not been on title of record for 90 days.

Additional requirements need to be met depending on whether borrower is applying for a conventional or government loan. A conventional mortgage has additional requirements if the sales price of the property is 20% more than the seller’s acquisition costs. The increase in value must be justified with supporting documentation verifying the seller has completed sufficient renovation and repairs to justify the increase in value. If no significant renovations were completed, the appraiser must provide a detailed explanation of the increase in property value since the prior title change.

Government loans have additional requirements depending on whether the sales price is greater than 20% over the seller’s acquisition cost. If the resale occurs within 0-90 days, the new sales price must be less than 20% over the seller’s acquisition cost. The number of days is calculated from the recording date of the deed to the purchase contract date of the new contract.

If the sales price is greater than a 20% increase over the seller’s acquisition, the sales transaction must occur more than 90 days if borrower is obtaining a government loan. There are additional requirements where a second appraisal may be required.

Additionally, the transaction must be an arms length transaction for both government and conventional loans. There can be no identity of interest between the buyer and the seller or any other parties involved in the sales transaction.

These are general guidelines that most lenders follow and can change any time. Lending requirements have become much more stricter the past few years. If you are considering purchasing a home that has recently been flipped by the seller, please check with your Realtor or loan officer before submitting an offer and completing a mortgage application. Otherwise, you could lose costs incurred for ordering an inspection, survey, and appraisal if the timeline is discovered late the sales closing process.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.

New Homestead Exemption Filing Requirements

A homestead exemption gives homeowners a discount on their property taxes by lowering the tax assessed value by a set amount and placing a yearly cap on the amount the tax assessed value can increase each year. In order to qualify for this exemption, homeowners must have owned the home January 1st of the current year of filing, occupy home as primary residence, and you and your spouse (if applicable) do not claim a residence homestead exemption on another property.

Effective September 1, 2011, the Texas Legislature has changed the filing requirements for homeowners filing a homestead exemption. Homeowners must provide proof to the county appraisal district that they live in the house they claim as their principle residence. The new law requires a copy of the homeowner’s Texas driver’s license or state identification card and the homeowner’s vehicle registration receipt. If the homeowner does not own a vehicle they can send a current utility bill showing name and address, along with an affidavit provided in the application indicating non-ownership of a vehicle. The address on the documents must match the address for which the exemption is being requested.

These new requirements apply to homeowners filing a homestead exemption as well as over-65 exemption, disability exemption, the disabled veterans exemption, the extended exemption for a homeowner’s surviving spouse and the manufactured home exemption. The exemption form can be filed between January 1st and April 30th of the current year you are requesting the exemption. This new law does not apply to homeowners how have already filed homestead exemptions.

Below are the url addresses for Williamson and Travis County:

Williamson Countyhttp://www.wcad.org/Appraisal/PublicAccess/Forms/PublicServices/HomesteadExemptionApplication.pdf

Travis Countyhttp://www.traviscad.org/pdf/Forms/Exemptions/50-114_ResidentialHomestead.pdf

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.

Are Zillow And AVM’s Accurate Home Evaluation Tools?

 i frequently get calls from investors or prospective home buyers and sellers who use Zillow or other tools to estimate the value of their home or a home they may be interested in purchasing. These tools can sometimes provide an accurate analysis but are limited in providing a detailed and accurate market value. I will share my experience with three recent transactions.

I recently refinanced my primary home in Cedar Park. It is a large single story home with an extended three car garage and large patio cover. It also has a swimming pool and backs up to a greenbelt. Some lenders use an automated valuation model, or AVM to estimate value of subject property. The AVM estimate will include recent sold comps in the neighborhood. My lender used RealQuest.

RealQuest provided a value range in the $210,000-$263,000 with an estimate of $236,700 for my primary residence. Zillow estimated the value of my home to be $257,400. My appraisal came in at $300,000, which was within a few thousand dollars of the current tax assessed value provided by Williamson County. Because of the high appraisal amount (I assume), the lender ordered a desktop review of my appraisal. The desktop review was completed successfully confirming the value of $300,000. This example is probably more of an anomaly due to unique features of my home. However, it does prove the appraisal amount of $300,000 was 20% higher than estimates provided by Zillow or RealQuest.

I helped an investor purchase a rental property this year in the Cedar Park/Leander area. The subject property was previously the builder’s model home. Most builders convert the garage and use as an office until they close out the neighborhood. The office space was converted back to a garage when home sold years ago. Williamson County listed the home with 400 more sqft than actual sqft. RealQuest’s AVM estimate was $13,000 higher than the actual appraisal, and Zillow’s estimate was $4,000 lower than the actual appraisal. Williamson County’s tax assessed value was also within $5,000 of the appraisal amount.

Another home owner called and inquired about selling his home in Cedar Park/Leander. The subject property was located in a large subdivision. This subdivision included Centex, DR Horton, and KB Homes. Centex and DR Horton built two series of homes. One series had fewer upgrades and smaller lots, while the other series included more standard upgrades and larger lots. KB Homes was the value builder. Zillow estimated the value of the home to be $165,700. When I did my market analysis, I estimated market value to be in the $140,000-$145,000 range. My comps included same builder with similar features and sqft. There were quite a few short sales and foreclosures in this subdivision, and this explains the difference between my market analysis and Zillow’s estimate.

This last example is a more common scenario. There were multiple builders in the same subdivision, and prices and features are different for each home in different sections of the same subdivision. The distressed sold comps were more common in the subject property section of subdivision. When doing a market analysis, you must use similar sold comps with similar features and upgrades. Zillow, AVM’s or other online tools may not include these details in their calculation algorithms.

In summary, Zillow, AVMs, and other value tools can be useful. Your local tax assessed value may also be accurate. All are tools that estimate the value of your home. Of my three examples, one estimate was within 5% of the appraisal, the second was within 15% of my market analysis, and my home appraised more than 20% than the AVM or Zillow estimate.

To obtain an accurate estimate or value of your home, I recommend you hire a Realtor who knows the area and is has many years of experience. If you plan on selling your home, fair market value of your home is what a willing and able buyer is willing to pay for your home at a given time. The best or most accurate market analysis or appraisal will not guarantee a home will sell for a specific price.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.

Year End Tax Savings Tips

As a business owner and individual taxpayer, I try to maximize write offs and reduce my tax bill each year. I thought I would share some of my ideas.

Pay January mortgage in DecemberMortgage interest is paid in arrears. When you make your December mortgage payment, you are paying interest from the month of November. If you want to save a few hundred dollars in federal income taxes, consider paying your January mortgage payment in December of this year. This will give you an extra month of interest you can write off. Keep in mind the following year you will only have 11 months of interest unless you the January mortgage payment early again.



Consolidate Two Years of Property Taxes In A Single YearIf you purchased a home mid-year and do not have enough interest and property tax deductions to itemize your taxes this year, consider paying this year’s tax bill in January and pay next year’s tax bill in December. Taxes are not due until the end of January. Paying two years of taxes in a single year may be a better tax strategy if you cannot itemize taxes the first year.

Charitable DonationsConsider donating used clothing or a vehicle to Goodwill or charitable organization. You can deduct the thrift value of the clothing or market value for a used vehicle.

Defer Business IncomeConsider billing customers next year instead of this year. Recognizing income the following year will defer your tax liability for another year. This can especially save money if you anticipate your tax bracket to be lower the following year.

Purchase Capital Equipment And Accelerate Expenses
Consider purchasing capital equipment such as a computer system, phone system, or software. Instead of paying monthly fees for our property management software, we elected to pay the fee for a full year. We received a discount and were able to write off the expense this year. You can even use a credit card to expense items. After discount and tax deduction, we saved 50% by expensing this year.

If you are a business owner, you may be able to purchase a full size pickup truck and write off the entire expense through IRS Section 179. Section 179 allows business owners to write off a full size pickup with a Gross Vehicle Weight (GVW) over 6,000 lbs with a cargo area of six fee. Other SUV vehicles may qualify up to $25,000, and you would depreciate the remaining amount. Please consult your CPA for more details.

SEP/IRAAssuming your adjusted gross income is not too high, consider contributing funds to a deductible IRA. Business owners can setup a SEP as well which allows a higher contribution. These contributions will reduce you federal income tax bill by the amount of your tax bracket (i.e. 25%, 28%, etc.). Business owners are still responsible for paying self-employment taxes for this deduction.

These are just a few tips to consider when tax planning. If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.

New Law Regarding Loan Officer Compensation

A new law was passed April 2011 that changes how loan officers are compensated for a home purchase or refinance transaction. There are two options for borrowers. Borrowers have the option of paying for the cost of originating a mortgage (borrow paid) or have a credit be issued by the lender (lender paid).

With a lender paid option, the lender will pay a set fee or percentage determined by the mortgage broker for each transaction. It is a set percentage and cannot change based on the loan amount. The borrower can pay a discount fee if they want to lower the interest rate. The advantage for the borrower is this creates a more equal playing field for all loan officers. The disadvantage is the loan officer can no longer adjust their compensation to earn business. The compensation paid by the lender to the loan officer is a set percentage of the loan and cannot be changed.

With a borrower paid option, the loan officer must be an employee or paid a set amount or hourly fee. Like real estate agents and Realtors, many loan officers are independent contractors, unless they originate FHA loans. Because of this new rule, many mortgage companies may not offer this option since their loan officers are not setup as employees.

Anytime there is a legislation change, there are always unintended consequences. The purpose of passing this new law was to eliminate much of the mortgage fraud that took place in the past. Unfortunately, consumers will have fewer choices in shopping around for a mortgage. Many mortgage brokers won’t provide a borrower paid option, and with the lender paid option, the loan officer is not able to lower their compensation to earn business for a client.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.

Is Your Primary Residence An Asset?

Many homeowners consider their primary residence to be an asset. I define an asset as something of value that puts money in my pocket. My definition of a liability is something of value that takes money out of my pocket. So, is the home you live in really an asset?

Based on my definition, an asset would include an appreciating stock, interest bearing savings account, mutual fund, an asset producing a dividend or revenue stream, or a rental property producing a positive cash flow. These types of assets generate revenue and put money in your pocket.

Your primary residence does not produce an income stream or put money in your pocket. It takes money out of your pocket, and is therefore a liability. Most owners pay a mortgage. Even if home is paid for, owners must pay for hazard insurance, property taxes and maintenance expenses. These expenses take money out of your pocket, and homeowners can only write off the interest and property taxes on their primary residence.

In Austin, homes appreciate at best at the rate of inflation. With the current recession, we are seeing most home values drop slightly. Many homeowners purchase homes because they think values will increase. In a good market, we will see values increase. However, no home increases in value more than the cost of living in the home. Most owners are not going to retire early, send their kids to college, or get rich by purchasing an expensive home.

If you purchase the right property, an investment rental property can be a great asset. Interest rates are in the mid four percent range for non-owner occupied property (October 2010). These are record low interest rates. I started purchasing rental property over ten years ago, and the interest rates were in the mid eight percent range in 2000. Even during the Austin high tech bust and easy financing days, rates for rental properties were in the mid six percent range. Home values have dropped, and foreclosures are near record highs. This is the best opportunity I have seen in my career to purchase a positive cash flow rental property.

Unlike a primary residence, investors can write off insurance, repairs, management fees, and even depreciate improvements made to the home. The IRS gives landlords more deductions than homeowners. And, the mortgage is paid by a tenant. So, a rental property meets the definition of an asset because it puts money in your pocket and is paid by someone else. With today’s low interest rates, most properties priced below $130,000 will produce double digit return. However, you must put 25% down to get the best rate and have six months cash liquid reserves.

An investment property can produce a huge return from multiple buckets. Most assets only produce a dividend or may appreciate in value. Rental property is the only asset that can generate an instant return on your investment when you buy below market. Additionally, rental property can generate positive cash flow, appreciate in value, and reduce your principle each time your tenant pays your mortgage. An investment property is the only long term appreciating asset that can be depreciated. The IRS allows you to depreciate the improvement of a rental property over 27.5 years. See my depreciation article for more details on calculating depreciation.

Just because your primary residence does not meet my definition of an asset does not mean it is not a good long term investment. We have to live somewhere. Homes in good neighborhoods with good school districts are very desirable and will increase in value over time. And, it is hard to put a value on the quality of life a home brings a family. And if you live in the home long enough, you may eventually pay off the mortgage.

In summary, purchasing the home you live in can be a good long term investment. I just do not consider it an income producing asset. But you have to pay to live somewhere. I recommend homeowners purchase a primary residence in the best neighborhood that meets their needs. Purchasing the smaller home in a good neighborhood will be a better long term investments than purchasing the largest home in the same subdivision. The pool of buyers shrinks as the price of the home increases. In a declining market, larger priced homes can depreciate much more than lower priced homes. And, the best mortgage to have is one paid by someone else.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.


Investment Property Insurance- Actual Cash Value vs. Replacement Cost

As a landlord and property manager with over 15 years of experience, I just was surprised with a recent insurance claim I made on five of my rental properties. The agency I was doing business with no longer had a relationship with ASI Lloyds. They sent me non-renewal notices for five of my rental properties. I knew all of my homes had hail damage. All homes were all in the Cedar Park and Leander area, and we had some pretty bad hail/wind storms in spring of 2009.

I had not planned on filing an insurance claim until years later. My strategy was to wait until the roofs were much older and file a claim with a future hail storm in the next 5-7 years. I contacted my agent who handles all of my commercial insurance. He recommended I file claims on all homes since they were not renewing the policies. It was better to start with a clean slate when starting a new policy for each home.

That is when my surprise came. In the past, USAA handled the claims on my other properties (they only will cover five properties), and I had full replacement coverage with USAA. It turns out that only property of the five properties with ASI Lloyds had replacement coverage, and I used the same insurance agency. I thought it was odd that one had replacement coverage and the other four did not. Four of the five properties only had actual cash value.

There is a huge difference between actual cash value and replacement cost insurance coverage. Most policy holders like myself are not educated and don’t ask the correct questions when purchasing insurance. Actual cash value is the amount it would take to repair or replace damage to your home after depreciation. For example, if your roof is damaged in a hail storm, the insurance company will pay for the roof using this calculation: cost to replace roof less the deductible less the age of the roof. So, for a roof that is 10 years old the calculation would look like this: $5000 for the new roof – $1000 deductible – 10 years of depreciation= $2000 payment to you the roof. (Note: Depreciation is the decrease in home or property value since the time it was built or purchased because of age or wear and tear.)

I budgeted to pay a 1% deductible which averaged $1,200 per property. Four of the properties had extensive damage and warranted a roof shingle replace. The fifth property had only minor damage. However, instead of expecting a $4,800 to replace the roof on four homes, my out of pocket costs were over $8,000 since the depreciation was not refunded after replacing the roof. Had I only filed a single claim, another $1,200 would not have been a big deal. I was not expecting to pay almost $8,000 out of pocket to replace the roofs.

Fortunately, I was able to pool my roof jobs with other clients, and we were able to get a large discount on the roof jobs from one of our preferred roofer vendors. All owners saved about $1,000 per roof. So, I was fortunate to cover most of the depreciation loss on my claims.

In summary, make sure you know what insurance coverage you have on your rental property policy. You may discover you are paying too much for a policy that does not provide adequate coverage. In Texas, many investors purchased a TDP-1 policy. This is the coverage I had on my five rental properties insured with ASI Lloyds, and the policy only covered the dwelling and roof for actual cash value. Research the costs of purchasing a TDP-3 policy. A TDP-3 policy includes water damage, tenant caused damaged, and replacement cost. This additional coverage is only about $150 per policy. You may find you can upgrade your insurance with a different vendor and pay the same premium.

I recommend Cary Smith with Treaty Oak Insurance Partners. His office number is 210.698.8133. He wrote my new policies and assists me with all of my commercial insurance. He has helped me and many of my clients obtain better investment property policies at very reasonable prices.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.

HVCC Appraisals Delaying Sales Transactions

The Home Valuation Code of Conduct (HVCC) went into effect May 1, 2009 for all 1-4 unit and single family conventional mortgages sold to Fannie Mae. The purpose of the new HVCC appraisal process is to establish an arms-length transaction between the appraiser and loan officer/real estate agent and to avoid fraud. Through the HVCC process, all appraisals are ordered through a third party agency who assigns an appraiser. The loan officer no longer is able use a personal appraiser. Our office has had many sales transactions delayed due to this process.

The purpose of an appraisal is to protect the lender to make sure there is enough collateral in the property being purchased by the buyer. Unfortunately, many appraisers are going into depth regarding the condition of the property instead of simply providing a value of the property. Cosmetic and minor repair issues are leading to appraisal problems and closing delays.

We closed several investment property transactions with appraisal problems this year. An appraiser noted a missing gas meter in the appraisal report. We discovered the previous tenant who occupied the property had not paid their gas bill in months. Hence the gas company removed the meter. The tenant lived in the home for 4-5 months without gas. It was almost six months by the time we ordered the appraisal. The gas company required the city to inspect the gas line, and the city required a plumber to test the line, order a permit, and meet with city inspector. After paying the plumber, city permit, and a $135 appraiser second visit, we were able to close 10 days later.

In a recent transaction, the appraisal was approved by the underwriter within 24 hours of receipt. Two weeks later when we uploaded final conditions, the underwriter added a new condition for the appraisal. The appraiser noted minor wood rot on the trim at the bottom of the front porch pole. Our handy man repaired the poles the next day, and the borrower paid for a follow-up appraisal visit to take pictures of the repaired pole trim. Because this was a last minute change, the borrower lost the lock and we had to delay the closing. The materials costs were less than $25.

We are currently working on a HUD foreclosure transaction. The appraiser noted home was in fair condition due to stained carpet and a missing range. Fannie Mae will not purchase a home that is appraised in “fair” condition or is uninhabitable. The missing range makes the home uninhabitable. Appliances are required to be in a home to be habitable. Because a HUD property is sold “as is,” the seller will not make any repairs. Many lenders will not allow an escrow hold back and setup funds at closing for repairs. We are trying to get the appraiser to change the comments in his report.

In summary, be cautious when purchasing real estate especially investment property. Make sure subject property has utilities turned on and is in good shape. Be prepared to address any minor cosmetic issues and repairs reported in appraisal report and allow enough time to complete necessary repairs when locking in your mortgage interest rate.

Foreclosure May Result In High Income Tax Bill For Investors

Many investors purchased homes based on speculation of appreciation, and their rental properties produce negative monthly cash flows. Austin is one of the best real estate marketing in the country. However our market is not immune from the national housing bust. Most real estate values have dropped, and many investors can’t afford to pay the monthly negative cash flow on their rental property. Some investors are selling homes if they have equity while other investors are selling homes in a short sale transaction or allowing home to go into foreclosure. Allowing a home to go into foreclosure can result in a large income tax bill.

Anytime a seller sells an investment property, he or she is subject to capital gains tax and depreciation taxes. The IRS allows an investor to depreciate the improvement of a single family residence rental property for 27.5 years. Below is a simple calculation for yearly depreciation:

Purchase Price         $125,000
Land Value –            $25,000
Improvement           $100,000 / 27.5 years = $3,636.36

In the above example, an investor depreciates a rental property $3,635.36 each year. If investor does not do a 1031 exchange and reinvest 100% of sales proceeds to purchase another investment property, he or she must pay a flat 25% tax for each year the property was depreciated. If owner owned property for ten years, he or she would owe $9,090 in taxes for depreciation deductions. This tax does not include capital gains tax.

Currently, the long term capital gains tax is 15%. However, the capital gains tax most likely will increase next year as tax laws change and the new Obama health care plan is implemented. Capital gains taxes are a separate tax and calculated independently of a depreciation expense. Most homeowners living in a home as their primary residence are usually not subject to paying a capital gain assuming they lived in the home three out of the last five years and the gain is less than $250,000 for individuals and $500,000 for a married couple. This exclusion does not apply to investors.

Many owners and investors are unaware the lender can 1099 the borrower for unearned income if home goes into foreclosure, and lender is not able to satisfy the principle mortgage balance. For example, if the lender sells property for $15,000 less than what is owed on a mortgage the lender can send a 1099 to the borrower for the amount of the $15,000 loss. The borrower will be responsible for paying personal income taxes at his/her current tax rate.

If an investor recently pulled cash out of property and has owned home for many years, the foreclosure can result in a capital gain tax, depreciation tax, and unearned income tax. We have seen investors pull cash out of a rental property, and the home depreciate in value putting the owner in a negative equity scenario. However, capital gains taxes are calculated based on the cost basis and the selling price and selling costs. The foreclosure sales price may be higher than the cost basis resulting in a capital gains tax and 1099 being issued to borrower.

In summary, allowing a home to go into foreclosure may seem like a quick fix. However, we advise all investors to analyze the tax consequences of paying a capital gains tax, depreciation tax, and unearned income taxes if home results in a loss by mortgage company. Please consult your CPA or financial advisor for details.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.


What Questions to Ask a Property Manager

Investors frequently call our office inquiring about our property management service. Most investors ask standard questions such as what are our monthly management fees and lease listing fees. Vacancy and turnover costs are typically the most costly expenses for landlords, yet few investors inquire about how we market rental properties and minimize vacancy periods.

Many prospective investors never ask some of the most important questions: How we market our properties? How do we minimize vacancy periods? Do we specialize in a specific area? Do we have dedicated leasing agents? Do we show property on weekends? What is our average vacancy percentage? Instead, many uninformed owners hire a property manager because his or her monthly management fee is 1% less than another property manager. Is it a good business practice to make a decision based on $10 per month savings? You would be surprised how many landlords do.

The internet has really changed the role in how agents sell and lease properties. Years ago before the internet evolved, the buyer’s agent blindly showed properties for sale to their clients. Now, most buyers direct their buyer’s agent to homes they want to see. Buyers are in the driver’s seat, and they check out property listings online in advance.

It is not as critical which agent you hire in selling your home. All agents have the same tools- MLS. If the property is priced competitively, shows nicely, is listed in the Austin MLS system, the seller will most likely sell the home regardless of who the listing agent is. The listing agent rarely procures the buyer and sometimes never even shows the home to a prospective buyer. Our office receives many more calls from prospective tenants for a lease listing than calls from prospective buyers for a sales listing.

Hiring the right property manager plays a much larger role in successfully leasing your property quickly. We have dedicated leasing agents who respond to calls and emails 7 days a week. Our leasing agents also live in the in Cedar Park, Leander, and Round Rock/Pflugerville areas. Having local, dedicated, and trained leasing agents ensure tenant inquiries are handled in a timely manner during the week and on weekends. When other property managers are returning weekend calls the following Monday, our agents are processing rental applications from weekend showings.

Because we manage more properties in Cedar Park/Leander than any other property manager as percent of our portfolio, we have relationships with outside leasing agents and other property managers. Other property management companies outsource our leasing services to rent their properties in the Cedar Park, Leander, and Round Rock areas. We frequently have outside leasing agents call our office about lease listings coming up that are not in the MLS system. They know we lease many properties in these areas. We leased two homes last month in Cedar Park without even putting a sign and lockbox on property. Two Realtors called to inquire about any properties not yet listed in MLS. We just received notice from two tenants and arranged for the leasing agents to show the property to their clients. We were able to lease both properties, and new tenants moved just a few days after current tenants vacated the property. Both owners had only a couple of days of vacancy. Specializing in an area and having relationships with inside and outside agents can really make a difference in leasing a property quickly.

We have tools that make it easier for agents and prospective tenants to do business with our company. Tenants can pay their app fees by credit card online at our website or call our office and give credit card information over phone or pay by check over the phone. Rental applications can be downloaded from our web site and faxed or emailed. We don’t require leasing agents to physically bring money orders to our office. This is costly, time consuming, and inconvenient both for the leasing agent and prospective tenant.

Of course, we do pay owners electronically through ACH disbursement and post monthly reports online and include copies of repair invoices. These enhanced services ensure our property owners receive their monthly funds in a timely manner.
In summary, if you are interviewing a property manager remember that vacancy periods are the most costly expense for a landlord. Make sure you partner with a property manager who is responsive and has a strong track record for leasing properties quickly and minimizing vacancies. After all, a $10 monthly management fee savings will not matter if you have a 30-60 day vacancy.

If you have any questions, please call us at 512-257-9836. Our office provides sales, leasing, property management, and mortgage services.