Property Management Blog

Smart investors know that professional Boca Raton property management is the best way to earn more and spend less on your rental properties. With the experience and expertise that a property manager can provide, you’ll have more time to do what you do best, and you’ll have a more profitable, less stressful investment experience.

It’s understandable to wonder what you’ll have to pay. Every property manager structures their fees a little differently. What you pay will depend on your property, your needs, and the company you choose. Today, we’re sharing some of the common things you can expect in terms of property management fees when you hire professional Boca Raton property managers.

Boca Raton Leasing Fees

The leasing fee is sometimes called a tenant placement fee. It’s a one-time fee that you will pay your property manager at the beginning of your management contract, or as soon as a tenant is placed in your property. Most management companies will either charge a flat fee or a percentage of your first month’s rent. Sometimes, if you’re only asking for leasing services and not full-service property management, you’ll pay as much as the equivalent of one month’s rent or more.

Leasing fees will usually include the following services:

• Pricing your rental property according to the market.
• Preparing your property for the rental market and showings.
• Creating a listing with high quality photos and detailed descriptions.
• Advertising the home online and the MLS.
• Following up with prospective tenants who have questions.
• Showing the property.
• Screening potential tenants.
• Reviewing and signing the lease agreement.
• Collecting the security deposit and other move-in funds.
• Conducting a complete move-in inspection with pictures and a report.

For some property managers, these are all services included in the leasing fee. Others might charge a smaller leasing fee but then charge extra for things like professional photography or online advertising.

Boca Raton Monthly Management Fees

When you elect to hire a full-service property management company, you’ll pay a monthly fee after a tenant has been screened and placed. It’s usually a percentage of the rent that’s been completed. For example, if you rent out your property for $1,500 per month and your management fee is 10 percent, you pay $150 every month. Some companies will charge a flat fee instead of a percentage, and you’ll want to find out what that covers. It may be low, and it may mean that you’re not getting the same value and services as a more expensive management company.

The management fees should cover everything from rent collection to maintenance. Enforcing the lease, sending notices and correspondence, managing tenant relations, and maintaining detailed and accurate accounting records are all part of what your management company should be doing in exchange for the property management fee you pay.

Ask About Extra Fees and Check the Management Agreement

If there are any other fees and expenses that cover work outside the normal scope of work provided by the management and leasing fees, it’s the property manager’s responsibility to tell you that. Make sure you read a copy of the management agreement carefully before you sign it.

Every company is different, but we have seen extra fees for things like:

• Move-in and Move-out inspections.
• Administrative fees.
• Lease renewal fees.
• Accounting or bookkeeping fees.
• Technology fees.
• Photography or advertising fees.
• Maintenance upcharges.

If you have any questions about the cost of property management in Boca Raton, we’d be happy to tell you more. Contact us at Domu Properties.

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

There’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.

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.

An 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.

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

Single-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.

Many investors have begun buying rental properties outside the cities and areas they live in, and even outside of the markets that make them the most comfortable. If you’re planning to invest in the Boca Raton area from out of state, we recommend you work with a local property management company.

We’re sharing some additional tips to help non-local investors have a good investment experience.

Get Outside Your Comfort Zone

The best advice we always have for people is to go outside of your comfort zone and outside of your market to a region where you can actually make money. Often, people choose comfort or what they know over what will actually make them money. If you dive into the numbers and find a market that makes sense financially for you, then that should be your number one goal when investing out of state. If you are going to invest out of state anyway, you might as well do the research and find the market that will make you the most money.

Analyze the Local Market

As you are analyzing those markets, use the data and the technology that is out there. There’s so much information now, and it can help you analyze new markets and make decisions based on those markets. The number one thing we always look at is population growth. This is important because you don’t want to invest in a city that has a dying population or a slowing population. That tells you people don’t want to live there. If people don’t want to live there, it won’t make sense for you to invest there or buy property there. As the population keeps declining, the demand for your property would become lower and lower.

Check the Local Demographics

You also want to take a look at job growth. You want a market with a growing population and additional jobs growing as well. If the population is growing and the job market is growing, this will allow people to need rental properties, which can bring in money.

Another thing to look at is whether people tend to rent more or own more. What is the average income for people in the area? Is this a middle class town or higher-end area? It’s important to understand the demographic so you know what kind of renter would fit in your property.

Put Together a Real Estate and Property Management Team

Something we always recommend is to put together a team. Two main people you would want on your team would be your real estate agent and your property manager. These two people can help you analyze and get to know a city. They can predict your returns and what you can expect in the market in the area.

Once you start talking to your agents, get to know your neighborhood. If you’re investing in a new town that you aren’t familiar with, get to know the area first eve before flying out there. Making frequent trips to check out multiple areas of interest can get expensive. Use tools like Google Earth where you can put in any address and get a feel for the neighborhood online in front of you. On the top corner of Google Earth, as you walking around the neighborhoods, it will tell you when the video or pictures were taken. Keep an eye on that because a lot of times those pictures and videos can be old. Another great website that really allows you to get a great feel for a place is neighborhoods.com.

Visit the Area

After you have done all the groundwork, and you have found an area where the job market is high, you can make money, you have a great real estate agent, and a great property manager, we recommend you visit the market before you invest.

Take a trip there and really get a feel for the area. Go around and talk to people and really experience the city and see what it’s all about. This is a great way to understand who your tenants are likely to be.

If you have any questions about investing in our market or you need some advice from a Boca Raton property manager, please contact us at Domu Property Management. We’d love to tell you more about investing here.

How can you keep your Boca Raton tenants?

Once you are able to fill the vacancy you have, your next goal is how do you make sure you are able to keep the tenant for as long as possible and paying the highest possible rent. As a landlord, you know the turnover cost, vacancies, and possible leasing fees are some of the biggest factors that will impact your cash flow at the end of the year.

When you place a good tenant, you want that tenant to stay in the property for as long as possible. Today, we’re sharing a list of things you can do to keep your tenants in place and avoid the expense of vacancy.

Keep the Property Clean

One thing we recommend no matter what the situation is with the property is that you keep it clean. Whatever you are responsible for as the landlord, make sure you get it done and keep the home clean. If you have a smaller property where you are responsible for the common areas of the building, make sure the area is clean so people feel welcome when they come home. You also want your tenants to feel like they can have family and friends over and not feel embarrassed about where they live.

Respond to Tenant Issues

Respond promptly to all requests, especially maintenance requests. One of the worst things that can happen for a tenant is that they are having some sort of problem with your property and you are not being responsive or communicating with them. This makes them feel like you don’t really care about them. This will make the relationship difficult. If you don’t have time to be accessible and available to your tenants, consider working with a Boca Raton property management company. Responsiveness is important to retention.

Maintain the Property’s Exterior

Make sure you keep the exterior of the building looking clean and fresh. If there is major maintenance that needs to be done, get it taken care of. You always want to make sure you are doing preventative maintenance. If the building needs to be repainted or pressure-washed or if there is mold growing on the outside, it will not look as nice. If the property doesn’t appear clean, the tenants will not be happy or want to live there.

Understand the Local Rental Market

A good property manager can help you understand the local rental market and its rental values. It’s important for you to measure your asking rent against the competition. If you’re having trouble getting tenants to stay for more than a year, it might be due to your rental rate. Sometimes, tenants will rent a property that’s priced higher than they want for a year, and then spend that year looking around for something that costs a little less. If you want to retain tenants, analyze your rental rate and consider the exchange of rent versus value.

Programs to Reward Tenants

Once you have those good tenants in place, you should reward them. Be mindful of the fact they always pay their rent on time, and tell them you appreciate that they don’t make any noise. When it comes time to raise the rent, consider consistency and the value of your tenant. Keeping a good tenant is often more cost-effective than losing them over a rent increase. The cost associated with turning over the unit and losing a good tenant is far greater than the few extra dollars you’d earn in rent.

Provide Tenant-Friendly Amenities

Be mindful of what is around you as far as amenities go. Your property needs to compete. If you have a unit in a multi-family building that does not have a washer or dryer, maybe consider putting them in the common area of the building. Or if it’s a building with old washers and dryers, consider upgrading them. The tenants will see that you are continuing to put money into the property to make it better. This shows them that you care about the quality of their living situation.

Offer Tenant Incentives

Incentives are always good, and tenants appreciate them. Maybe if a tenant agrees to sign a 12-18 month lease, you could offer the first month free as an incentive. Or, you could include some of the utilities that the tenant normally pays. As an owner, if you were able to negotiate rates with the WIFI or cable company, maybe you could pass those rates onto the tenant as an incentive.

Provide Comfort and Safety

Always be aware of where your property is located. Know the neighborhood, and if your property is not in the greatest neighborhood and your tenant would not feel safe there, address it. Make adjustments and corrections to make the property safer and make your tenants feel more comfortable. Investing in security lights or security cameras is a big help in this area. They may seem like little things, but it makes the tenants feel like you are thinking of their well-being.

Real estate is a people business. It helps you to really get to know your tenants. That doesn’t mean you should be overly nice or overly lenient with them. Maintain a professional and respectful landlord/tenant relationship.

If you’d like to talk more about avoiding turnover, or you’re interested in our professional property management services in Boca Raton, please contact us at Domu Property Management.

Once you decide you want to make some extra cash and turn your Boca Raton property into a vacation rental home, there are some things you need to consider when preparing for this move.

Here are some of our tips to getting your home ready to be a vacation rental.

Furnish the Home Completely

First off, make sure your property is furnished completely. Vacation guests will expect to find a vacation rental fully furnished and well-equipped. The property should be ready for them to enjoy. This means the kitchen should be stocked with complete sets of pots and pans, glassware, and silverware. Bedrooms should have beds completely made with extra sheets accessible and available.

Quality is Key for Vacation Rentals

One of the things we cannot stress enough is to really invest in quality. This will ensure you have a successful vacation rental. When you go to a nice hotel, think of the qualities that make it the best. You have an amazing bed with comfortable sheets. You have the softest towels in the bathroom. You go to this hotel, and everything feels so good. That’s what you need to provide in your vacation rental. Really invest in beds, sheets, towels, etc. Keep the best pots and pans in the kitchen with shiny silverware and sturdy glasses. Quality in brings quality out. People will love and give rave reviews because everything was comfortable and very high quality.

Go the Extra Mile with Your Home

As a vacation rental landlord, you really want to put yourself in the shoes of the guests. Go that extra mile to make your guests feel welcome. Add some extras along the way in the rooms. In the bathroom, keep shampoo, conditioner, and soap. In the laundry area, provide detergent and dryer sheets. In the kitchen you can provide bottled water or leave coffee packs for the next morning. Put yourself in the guest’s shoes. Maybe they have been traveling all day with kids. The vacation rental they arrive to may be perfect, but think of how nice it would be to arrive and open the fridge to find a nice bottle of water.

Going the extra mile always adds a little something extra to your rental and is appreciated by guests.

If your rental is around a beach or lake or someplace where water is within walking distance, it’s always great to provide bikes, beach chairs, or kayaks for your guests to use. These are things guests will enjoy and appreciate not having to bring or pack themselves. They will love having them once they arrive at their vacation rental. Every cent you spend to improve your guest’s experience will come back to you. This will be in the form of reviews, bookings, and returning guests.

Really invest in your vacation rental because your investment will guarantee your future success.

If you have any further questions about how to prepare your vacation rental in Boca Raton or the surrounding areas, please feel free to contact us at Domu Property Management.

We all know that the vacation rental business is exploding right now. There are a lot of landlords and investors looking at vacation rentals as a viable way to make money. There is also a whole other group of investors that have had second homes for a long time, especially down here in south Florida, that come and use the home a few times a year or have family use the home, but it’s not being used all the time. 

Only using your vacation home a few times a year is basically like leaving the money on the table. There is a great opportunity to put your home on Airbnb and rent it out as a vacation rental when you aren’t using it.

Keeping the Home Safe

One common concern for owners is their personal property in the home. There are things in the home that you may be emotionally attached to or things you have spent a lot of money on, and you don’t want people to damage those things. If that is one of your concerns, you don’t need to worry. One of the things we do in all the homes we manage is to set up owner closets. There are specific closets around the rental home where we keep the owner’s private things. These are things that the owners do not want renters to use or have the potential to ruin. Even if it’s the towels and the bed linens, you can put those in the closet to keep them safe.

Buy Plenty of Insurance

Most vacation rental sites and Airbnb rentals come with insurance. The listing itself is protected with a million dollars of insurance, so there’s a good chance anything that could potentially go wrong would be covered financially.

Peace of Mind with Extra Security Deposits

When you don’t want to make a lot of changes to your home because you still plan to use it yourself, we can charge your vacation renters an extra security deposit. This guarantees that renters will be extra cautious not to do anything to damage the property. They’ll want to get that deposit back.

Reviews for Owners and Vacation Renters

Vacation travelers have a profile on vacation sites and they get reviewed. So just like they review you and your rental, you have the opportunity to review them as well. A traveler does not want a bad review because then a future landlord or homeowner will not rent to them. 

Vacation renters are going to be very different than normal, long-term tenants. The wear and tear on the home is going to be different, and you can prepare your home by taking away anything of value and putting it out of potential harm’s way. You can give your rental the look and feel of what it’s like to own it and enjoy it yourself, even if you’re renting it out. 

Please contact us at Domu Property Management if you have any questions about renting out your vacation home.

Vacation rental sites have become incredibly popular, and it’s amazing how much money is going into optimizing the industry. You’re probably familiar with sites like Airbnb and Vacation Rental by Owner (VRBO). There are all these websites that actually allow you to take pictures of your property, list it, and put it up online.

If your goal is to just have one vacation rental, you could probably get away with just doing that. You can list the rental on Airbnb and VRBO and link it to have the rentals go between each site. If, however, you are a real estate investor or someone who is using vacation rentals to make some extra money on the side or maybe this is your vacation home that you are now choosing to rent while you are away, you are going to want to use technology to maximize your return.

And by maximize your return, we mean return on time. If you can use technology to automate your processes, there is a huge return to earn on your investment.

Sync with SmartBNB

SmartBNB is great because it allows you to upload and connect your Airbnb and VRBO so you can input automatic responses and automatic emails so you can communicate with guests 48 hours after they check in.

Try PriceLabs

PriceLabs syncs your Airbnb and your VRBO platforms and allows you to put price ranges on your rental. For instance, if the property is not rented by a certain date, it will allow you to select a price reduction based on the rental deadline you set. It allows you to change and adjust your pricing based on demand. Usually, you have to go into the system and adjust it manually day by day, but with PriceLabs, the system will do it for you.

Working with Logify

Logify allows you to upload your listings from Airbnb and VRBO, and it has a reservation software and a tool for you to create your own website. Airbnb and VRBO do not do what they do out of the goodness of their hearts. They are businesses. Businesses charge owners and travelers fees for using their service. Logify allows you to capture your clients or have a landing page of your own to gather clients.

Once you get your clients from Airbnb, if they are ever a returning guest, you can have them come through Logify instead of going through Airbnb. So, when you’re able to get them into your rental through Logify rather going through the Airbnb or VRBO first, you’ll spend less on fees, and so will they – which means you can increase your prices since it will still be cheaper for them to reserve directly through you.

These are the three main technology sites that can help you run your vacation rental. If you have any further questions, please contact us at Domu Property Management.

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.