February 2020 - Premis Realty – Property Management & Real Estate

Taking the Leap: Is Now a Good Time to Invest In Real Estate?

February 28, 2020/in Premis Real Estate Blog

If you’re thinking about investing in real estate, you’re probably asking yourself, “is now a good time to invest in properties?”

That’s a fair question because you don’t want to overpay for a property only to have trouble finding tenants to fill vacancies or get stuck with a high fixed-rate for your mortgage. There are a lot of factors that go into whether or not the real estate market is good for investing, and right now, all of those factors are pointing towards it being a great time for making an investment.

Keep reading to learn more about why you should take the leap and start investing in real estate today, rather than continue to wait.

Mortgage Rates Are Low

If you’re investing in a property, you’re more than likely going to be taking out a mortgage in order to do so. That’s why it’s important to consider fixed mortgage rates, which can drastically change the amount you pay towards your property.

Of course, your interest rate will be affected by a number of personal factors including your credit score and yearly income. But mortgage rates are also determined by the state of the economy, inflation, economic growth, and the overall housing market.

With all of these factors considered, the average mortgage interest rate is low compared to the last twenty years. On average, you’ll find interest rates of around 3.5%-4.5%, depending on what type of mortgage you take out and your personal financial health. To put those numbers in perspective, interest rates were almost double that just over a decade ago.

You never know how interest rates will change from year to year, but it’s hard to see rates getting much lower than they are now. That’s why jumping into it now is a great idea; you can get an attractively low fixed-rate mortgage.

There Are a Lot of Renters In the Market

Millennials aren’t buying houses and are choosing to rent single-family homes from year-to-year instead. What does this mean for someone interested in investing in real estate?

Well, it means there will be no shortage of potential tenants to fill your vacancies. With such a big pool of renters out there, you won’t be left vacant for long and can even increase rent prices to reflect the overwhelming demand for rental units.

The rental market shows no signs of slowing down, either, as Millenials are hesitant to settle into a fixed 30-year mortgage. This means right now is a great time to get into the game and find your footing while the demand is still hot!

Tenants Are Choosing Private Landlords More Than Ever

Not only are there a ton of people looking to rent homes right now, but they are opting for private landlords as opposed to renting an apartment unit.

If you can offer the basic necessities that tenants are looking for, such as updated appliances, then you’ll find yourself flooding with tenant applications looking to rent your property.

The Earlier You Invest, the More You’ll Make

If you’re thinking to yourself, “well, it won’t hurt to wait a few years to invest in real estate”, you might be making a big mistake. This is because the earlier you invest, the more your property will appreciate over time.

Long-term appreciation is the main goal when investing in real estate, and the longer you hold onto your property, the more it’ll increase in value.

So unless you aren’t in a good place financially right now, then you should choose to invest as soon as possible. You can make significantly more money by choosing to invest a couple of years earlier.

So, Is Now a Good Time to Invest In Real Estate?

If you’re asking yourself, “is now a good time to invest in real estate”, the answer is a resounding yes! Not only will you find low fixed-rates on mortgages, but the earlier you invest, the more you’ll make long-term. The answer is always to invest now rather than later, as long as you are in a good place financially.

If you’re looking for the best real estate investment services in Clearwater, FL, and the surrounding areas, then look no further!

Here at Premis Realty and Investment Services Inc., we can help you find the perfect property to invest in. Not only that, but we will manage your property and find quality tenants to fill vacancies, and will provide many other services. Contact us today to learn more about how we can help you invest in your future.

How to Find the Best Property Management Company

February 16, 2020/in Premis Real Estate Blog

Investing in real estate is one of the best ways to secure your financial stability for the future. You can make huge profits from your property just from long-term appreciation alone.

However, investing in real estate is a lot more than just purchasing a property and letting it accumulate more value. You also need to keep the property in good shape and find quality tenants to rent to.

These tasks can quickly pile up and become a full-time job for an unsuspecting investor. That’s why you need to work with the best property management company that can care for your property and handle all of the day-to-day tasks.

But how do you find a real estate manager that can meet all of your needs and keep your property in tip-top shape? Keep reading to find out how to find a management company that’s perfect for you.

Take a Look at Online Reviews

When you look for a property management company, your search will more than likely start online. There will be several management companies in your area to choose from, and it might be overwhelming to figure out where to start.

To get a better idea of the companies, check out their reviews on Google, Yelp, and Facebook. Some reviews can be really helpful in letting you know the strengths and weaknesses of a company. Then, when you meet with a property manager, you can talk to them about the reviews you read and hear their side of it to get a full picture.

Explore Their Website

After checking out reviews, visit their website and take the time to explore a bit. Look at their service pages, and see if they have a property management blog. Blogs can be a great indicator of the quality of a business and they can also give you great information about the company.

Also, take a look at the “About Us” page and read up on the staff of the company. You can get a great feel for the company culture and approach to management just by poking around their website.

Understand the Services They Offer

When you’re looking for a property management company, you’ll want to make sure they offer all of the services you need. Here are some common services to look for in a real estate management company:

Create lease agreements
Marketing properties
Screen tenants
Fill vacancies
Home inspections
Collect security deposit and monthly rent payments
Handle maintenance requests
Handle disputes
Enforce the lease agreement

You should also consider what services the company does, and which ones they outsource. For example, some property managers outsource accounting, which means a longer turnaround time for you to receive your monthly proceeds.

Ask Plenty of Questions

When you meet with a property manager, ask any and all questions you may have. This is your chance to get a full understanding of what they can offer you and how your business relationship will look moving forward.

Here are some important questions to ask a real estate management company before you start working with them:

What certifications/licenses does your business hold?
How many years of experience do you have?
What is your fee structure?
What services do you provide?
What types of properties do you manage?
How do you ensure vacancies are filled promptly?
How do you market properties?

This is also a great opportunity to clear the air of any concerns you may have regarding their company. If you read anything negative online, bring it up with them in person and hear what they have to say.

Go with Your Gut

Whenever you have a big decision to make, sometimes it’s best to simply listen to your gut instinct. How did you feel when you met company X vs. company Y? Did you have a good conversation with a property manager that made you feel comfortable and confident in their abilities?

Your gut can tell you a lot of things that information online can never tell you. So when it comes down to picking the best property management company, go with your gut instinct and stick to it.

Always Work with the Best Property Management Company

Finding the best property management company to work with can be time-consuming and tiresome, but once you find the perfect fit, it’ll all be worth it.

Here at Premis Realty, we know what it takes to provide the best real estate services to our clients. We always go above and beyond and you’ll always feel confident that your investment property is well cared for. Contact us today to learn more about our property management services.

What Is the Best Type of Real Estate Investment Property?

February 5, 2020/in Premis Real Estate Blog

Are you thinking about investing in real estate, but feel unsure about what to invest in? There are a lot of investment opportunities out there, and it can feel overwhelming to choose which one is right for you.

Each type of real estate property has its own advantages and disadvantages, and it’s important to have a good understanding of each option.

Keep reading to learn more about what the best type of real estate investment property is for you.

Residential Real Estate

Residential real estate is the most popular form of investing for beginners, and for good reason. It’s easy to get into and there’s very little long-term risk. Under the residential real estate umbrella, there are a few different options you can consider.

Single-Family Home

If you’re looking for a great way to invest in the long-term, a single-family home is the best option. The long-term appreciation for these properties is almost always high.

In addition, you’ll earn monthly passive income to cover the cost of the mortgage (if you have one), property taxes, and property management. You’ll be making enough each month to cover those expenses and you can pocket the rest of the rent money.

Townhomes or Condos

If you’re interested in investing in multiple units, townhomes and condos are a great option. You can buy a few units and rent them out to separate tenants. The upkeep with these properties is a lot easier but you’ll have to pay heftier HOA fees to cover things like lawn care and landscaping.

Multi-Family Home/Duplex

Investing in a duplex is a cool idea if you’re interested in living in one half of the duplex while renting out the other. The rent that the other tenants are paying can cover your mortgage payment so they are basically paying off the entire duplex.

Apartment Building

Investing in an apartment building can be an incredibly rewarding opportunity, but it’s something that should be done by an experienced investor. If you’re just getting started in the world of real estate, stick with detached properties or townhomes and condos.

Commercial Real Estate

Commercial real estate offers investors an opportunity to make more cash in the short-term. You can also expect to have longer leases, shorter vacancies, and less competition.

Here are some commercial real estate opportunities you should consider:

Office buildings
Hospitals
Industrial buildings
Retail
Shopping malls

While this can be a great opportunity, you should already be well established as an investor and in great financial standing before investing in commercial real estate.

Raw Land

Raw land is an attractive investment opportunity because it’s generally a lot cheaper and you can score big if you invest in raw land that’s in a popular or soon-to-be popular area.

If you see raw land for sale in an area with high potential growth, buying it up can get you a huge return on your investment. But oftentimes, raw land won’t appreciate in value unless it’s in a great location, so there’s a lot of luck and instinct involved with this type of property investment.

Which Type of Real Estate Investment Property Is Best for You?

If you’re wondering what the best type of real estate investment property is, it really depends on your experience, financial standing, and your goals. If you’re just starting out with investing, it’s best to start with residential real estate and work with professionals who can help you along the way.

Here at Premis Realty and Investment Services, we can help you find the best residential investment properties. We will also manage your property for you, so you don’t have to worry about all the extra work that comes along with renting out a property.