Property Management Blog

Investing in Rental Properties | Tips for Boca Raton Real Estate

System - Friday, May 1, 2020

Investing in Rental Properties | Tips for Boca Raton Real Estate - Article Banner

Investing in rental properties is an excellent way to build wealth and develop a successful real estate portfolio, especially in Florida. Boca Raton offers a lot of opportunities, whether you’re buying your first rental home or growing your real estate business.

We’re providing some tips today on how to invest in real estate. Rental properties are outstanding and profitable investments, but they also come with risk, especially if you’re not sure what you’re doing and you don’t know where to go for help. Surround yourself with experts in the Boca Raton rental market, and you’ll have a much better investment experience.

Buying your First Investment Property

If you’re investing in a rental property for the first time, congratulations. Before you sign on the dotted line and close the deal, make sure you’ve taken these important steps:

  • You’ve done the math to make sure you’ll earn enough in rent to cover your basic expenses and create a good potential for cash flow.
  • You’re buying a home that makes sense for the tenants you’re hoping to attract. New investors often forget they’re not going to be living in the home themselves; it doesn’t have to meet all your personal needs. It must make sense as an investment.
  • Hire professionals to help you make smart choices. A real estate agent can negotiate a great deal, a property manager can tell you how much work you’ll need to do to attract a great tenant and what kind of rent you can expect. You’ll also need a good insurance agent, CPA, and a list of vendors who can help with cleaning, landscaping, and repairs.

Focus on move-in ready rental homes. It’s easy to be dazzled by super-low prices, but your goal is to get a tenant placed quickly so you can start earning income. Don’t delay the leasing process with months of work.

Where to Invest in Boca Raton Rental Homes

There are a lot of diverse neighborhoods in Boca Raton, and a number of them make for strong rental possibilities. You can buy a condo close to the beach or a single-family home in an established neighborhood close to great schools. We’d love to discuss the specific communities and the pros and cons to each. While you’re looking, make sure you’re choosing a home that aligns with your investment goals. Look for growing neighborhoods with a strong sense of community.

What to Look for in a Boca Raton Investment Property

There’s no need to get emotionally involved in your potential investment property. This is a business, and you need to treat it as such. The ideal investment property will be in good condition. If anything, you’ll need to make some cosmetic changes and upgrades, but it should be structurally sound and functional. Look for a good neighborhood. A lot of retirees are coming to Boca Raton to rent a home, and they’ll want to be close to golf and restaurants and shopping. Make sure the property you choose will appeal to great tenants and earn as much rent as possible. You also want it to appreciate in value over the next five, 10, or 20 years.

Buying a Rental Property with No Money Down

Investing in real estateThere’s a common misconception among new and potential investors that you need to be rich already in order to invest in real estate. That’s not true at all. You don’t even need to save up six figures for a down payment. We know investors who have purchased their first rental property with no money down at all. If you’re willing to be creative with financing opportunities, there’s always a way to invest.

We’d love to tell you more about how to invest and where to invest in Boca Raton. Contact our team at Domu Properties today.

Do You Need Landlord Insurance | Boca Raton Landlord Advice

System - Friday, April 24, 2020

Do You Need Landlord Insurance | Boca Raton Landlord Advice - Article Banner

As a Boca Raton landlord, you’re required to provide a safe and habitable home for your tenants. You also have an obligation to protect your investment and yourself. The best way to do this is with a robust insurance policy.

If you’re renting out a property that was once your primary residence, you need to switch your insurance policy to a landlord insurance policy. Today, we’re talking about that requirement and some other coverage you want to make sure you have.

Landlord Insurance vs. Homeowner’s Insurance

The main difference between your landlord insurance policy and the homeowner’s insurance policy you have on the home you live in is that your landlord policy covers the structure of the home and the costs to repair and replace it. However, it doesn’t cover any personal belongings that aren’t yours. When you live in a home, your insurance covers the structure and all your belongings. But, with a landlord policy your home is covered, but not the tenant’s personal items.

For this reason, we strongly recommend you require renter’s insurance of your tenants. For a minimal cost, your tenants can get a lot of coverage which will protect them in case of loss. If a fire sweeps through the property, your insurance policy will cover the loss. But, your tenant’s electronics, clothing, and furniture will not be covered. Make sure they understand that and insure themselves.

Landlord Insurance and Liability

A good landlord insurance policy will also have higher liability coverage than your average homeowner’s policy. This is important, because anything can happen when tenants are living in your property. Talk to your insurance agent about the required or recommended liability limits. If something happens and you’re sued, you want to be protected.

Loss of Rent Coverage

It’s important to cover yourself in case you have to move your tenant out of the property. Suppose there’s a tropical storm that tears the roof off your home or the air conditioning dies during a south Florida summer and there’s a delay in getting the new system installed. Your tenants will not be able to stay in the home, which means you may have to put them in a hotel. If they can’t live in the property for an extended time, you’ll lose a lot of rental income in addition to paying out of pocket for costs like hotel bills. If your landlord policy doesn’t already include loss of rent coverage, consider adding it.

Additional protections are always available when you’re buying insurance for your rental property, and you should consider them carefully. Flood insurance is an important thing to include in Florida, and it’s required in many Boca Raton neighborhoods. Many landlords are now buying insurance policies against bed bugs.

tax deductibleAn important thing to remember is that insurance premiums are tax deductible. We don’t think it’s ever a good idea to be cheap when it comes to insuring one of your most valuable investments. If you don’t have a reliable insurance agent, let us know and we can make some recommendations.

If you have any questions about insurance for your rental property or your requirements as a Boca Raton landlord, please contact us at Domu Properties. We’d be happy to serve as your Boca Raton property management resource.

How Much Rent Should I Charge for My Boca Raton Rental Property?

System - Friday, April 17, 2020

How Much Rent Should I Charge for My Boca Raton Rental Property? - article banner

Before you can list your Boca Raton rental property, find a great tenant, and start collecting rent, you need to know how much that property is worth. This can be a source of confusion and contention for some property owners. You may have a specific idea in mind about your home’s rental value. You might need to earn a certain amount every month in order to earn the cash flow you’re hoping for.

The most important thing to remember, however, is that the market really drives what you can charge in monthly rent.

If you over-price your property, you’re going to face a longer vacancy period or you’ll attract tenants who have been rejected elsewhere and are feeling desperate enough to pay a higher price.

It’s your responsibility as a landlord to price your property accurately and competitively. Here are some of the steps you should take when you’re deciding how much to charge for your Boca Raton rental property.

Compare Your Property to Others on the Market

When you’re establishing a price for your rental home, you need to get some comparable rental values. Take a look at homes similar to yours and in the same neighborhood that have recently rented. Make sure your price tag isn’t too far outside of the normal range.

Reliable data is key. You can look at Zillow and Trulia and HotPads and other rental sites for an idea of what properties are listed for. But, the most reliable information will come from a Boca Raton property manager, who knows what the homes rented for, how long they were on the market and whether any price reductions or other incentives had to be offered.

Consider Your Boca Raton Rental Property’s Location

It’s well-known that location is an important factor in real estate. You’ll earn more rent if your property is located in a desirable location. If you’re near good schools, easy commuter routes, and close to shops, grocery stores, and retailers, you’ll be able to earn more in rent than if your home is more remote.

When you’re comparing your home to the competition in order to price it accurately, make sure you’re looking at homes in the same neighborhood as you. Rental prices can change from street to street and block to block.

Property Size and Condition Factor into Price

well maintained propertySingle-family homes often earn more rent than apartments. Most renters in Boca Raton are either looking for low-maintenance two-bedroom condos or single-family homes with three bedrooms, two bathrooms, a garage, and some outdoor space. You’ll need to lower your price a bit if the property is too small for the area or even if it’s too large. It’s rare to find a long-term renter looking for a studio or a seven-bedroom home.

There’s not much you can do about the rental market, and you only have so much control over your property’s location and size. However, you can control its condition. Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home is in excellent condition when you’re renting it out. You’ll earn higher rents and attract better tenants. If your property needs work, get that done before you set a rental price.

One of the best ways to accurately price your rental property is by working with a professional Boca Raton property management company. We can ensure you earn as much as possible in rent every month, while still maintaining competitive and avoiding long vacancy periods. Contact us at Domu Properties for some help or more information.

Top 10 Questions to Ask a Property Manager in Boca Raton, Florida

System - Monday, August 28, 2017
There are a series of questions to ask a property management company when you’re looking for professional management services. Today, we are sharing the 10 most important questions to ask a property manager.

1. How many years have you been in the business? You want a property management company that has been around the block a few times.

2. How many properties do you actively manage? The more properties they manage, the better systems they probably have in place.

3. Do you work with investors, and are you an investor yourself? Over the years, I have found that property managers who are also investors are more prone to taking care of your property like it’s their own. They will go the extra mile to take care of preventative maintenance, and that saves you money.

4. What is your application process? Make sure the management company has a detailed and thorough application process. You want a complete background screening and a search for evictions. This will help you avoid placing tenants who may be problems down the road.

5. How do you handle the security deposit? Some management companies will hold the deposit in their own escrow account, and others will require the landlord to hold the deposit in an escrow account. Find out who handles this, and make sure it’s done legally by the book. You don’t want any issues when the tenant moves out.

6. Do you use property management software? There are so many different types of software now, there’s no reason for a property manager to still be using pen and paper. This technology will help your tenants submit inquiries and work orders online, and it allows owners to track everything that’s going on with their properties. Easy reports are generated every month.

7. What is your management fee? This will vary and many times, you might think you’re getting a lower management fee, but then hidden fees will show up. If it sounds too good to be true, it probably is.

8. Will monthly statements be provided? You should get a statement with your rental payment every month.

9. Who is responsible for communicating? Make sure you have an idea from the beginning of who is responsible for getting in touch with you.

10. Do you work after hours? You want your property manager to at least be accessible after hours. For your peace of mind and your tenant’s peace of mind, you need a management company who is available by phone late at night and over the weekends.

If you have any questions about what to ask a property manager or you need more information about Boca Raton property management, please contact us at Domu Property Management.

How to Screen Tenants the Right Way in Boca Raton – Property Management Tips

System - Monday, August 14, 2017
Knowing how to find a good tenant is an important part of being a successful landlord. Knowing how to avoid bad tenants is just as important. A lot of times, if you have a property that’s been vacant for a while, you just want to find a tenant as soon as possible because your empty property is costing you money. It’s tempting to want to put the first person who comes by into that home. However, there is a lot of value in properly screening applicants. Today, we’re talking about how to screen tenants.

Property Management Boca Raton: Background Checks

You’re looking for a tenant who can pay rent and has a good history of taking care of properties and not leaving any damage behind. So, when you’re screening someone, the first step is to run a background credit and criminal check. You want to make sure there isn’t a criminal record or a history of getting evicted. If you find an eviction history, there’s a good chance that it will happen with your property, too.

Property Management Boca Raton: Income Requirements

Next, you need to check the income of potential applicants. Make sure they have stable jobs and income that matches your requirements for the rental property. Some people want a tenant who earns three times the rent or even as much as five times. Regardless of your standards, make sure you implement them consistently when screening tenants.

Property Management Boca Raton: References

Tenants do give you references on the application, and you should take the time to call everyone. By really talking to previous landlords or employers, you get a chance to find out more about the tenant and what type of person you may be renting to. You can find out their history in other rental properties. They might pay on time, but if landlords tell you the property was always messy and uncared for, you may not want that tenant in your property.

Do a complete screening and you’ll end up with a great tenant. If you ever have any questions about how to do a tenant screening, or you need help with the process, please reach out to us. You can contact us at Domu Property Management for any of your Boca Raton property management needs.

3 Reasons to Find a Good Property Management Company in Boca Raton, FL

System - Monday, July 31, 2017

If you’re not sure how to find a good property management company, talk to different managers about what they will do to help you be a more successful landlord. Today, we’re sharing three reasons that you should work with a professional. These are the qualities of a good property manager, and you’ll have a far better experience when you work with someone who reflects them.

Property Management Boca Raton: Time

Hiring a property management company will save you a lot of time. Many people say they would like to invest in real estate, but they are concerned about the amount of time it will take to actively manage the property. They know that dealing with tenants can be difficult, and taking care of maintenance issues and requests can be inconvenient. When you’re working with a professional management company, your manager will take care of everything, including tenant relationships and the maintenance of your property.

Property Management Boca Raton: Market Knowledge

Professional property managers have better knowledge of the local rental market. One of the biggest mistakes that investors and property owners make is to overvalue or undervalue the property. This will result in losing money. If you overvalue your home, it will be vacant for longer because you won’t have a tenant willing to pay the rent you’re asking. If you undervalue it, you’ll be earning less than you could if it was priced properly.

Property Management Boca Raton: Leasing

A better leasing process is another benefit of working with a good management company. We are experts in screening and doing background checks on tenants. This means you get a high quality tenant and you face a lower chance of going through an eviction, which is costly and time consuming. You won’t have to worry about missed payments. With a professional manager, you lower the risk of putting a bad tenant or a problem tenant in your rental property. 
If you have any questions about how to find a good property manager or anything pertaining to Boca Raton property management, please contact us at Domu Property Management.

Why Owners Trust Domu Property Management in Boca Raton, Florida

System - Monday, July 17, 2017

At Domu Property Management, we have been in the business of real estate investing and property management for nine years. Today, we’re talking about why owners and investors trust us with their rental properties.

Personal Management Experience

I started as an investor myself. I have a portfolio of rental units, and I could never find the right property management company to take care of them. Any time I asked questions, I never felt entirely satisfied with the answers. So, I started managing my own properties. I began to dial into all the processes and procedures that are required to successfully operate rental properties. I learned what it would take to have well-managed properties occupied by high quality tenants who don’t damage the home and who pay rent on time.

Property Management Boca Raton

After successfully managing my own investment properties, I quickly got the attention of other local investors. They began asking me to manage their properties, and so I started doing that. Now, we are in the business of helping people buy, sell, and manage their investments. We know the local market very well, and we can help people at any stage of their investment careers. We are knowledgeable, experienced, and able to help rental properties perform better.

Vendor Relationships

We also have great relationships with vendors who have been vetted by personal experience. Every vendor we use for the properties we manage is a vendor we have used on our own properties. We look at your properties as if they are our properties. Any issues or concerns are dealt with affordably and efficiently. This has been the main difference between us and a lot of other property management companies in the area.

If you have any questions about Boca Raton property management or the services we provide, please contact us at Domu Property Management.