Management Mondays Blog

What Makes a Qualified Tenant?

When making decisions about a quality tenant on paper, look for applicants that have enough money to pay the rent, have good to excellent credit with minimal debt, and an impeccable rental history. 

Income

At the very minimum, applicants should combine to gross 2.5x the monthly rent; though, a gross of 3x or more is preferable. Depending on the situation, you may want to check the reserves and ensure that the applicants have enough to cover three months rent in case of emergency. 

Credit

A good to excellent score (700+) is preferred, though depending on the area, a fair score (650+) may be acceptable. Digging deeper into the report to examine the number of lines, total amount of debt and monthly installment requirements, as well as if any delinquencies exist.

History

Verify the applicants’ rental history. Specifically look at their previous terms to see if there are any major discrepancies between what they were paying compared to what they will be and learn if they paid on time and were not a nuisance to their landlord and/or neighbors.

Contact 24 Hour Property Management, Inc.

We’ve helped hundreds of investors rent properties over the years and we’d love the opportunity to help you locate a qualified tenant. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

4 Things to do First with your Investment Property

When you buy an investment property, the four things you should do are:

1. Start the rehab immediately

Unless you purchased a turn-key property, you’ll likely need to put some work into it, such as update the flooring, replace the counter tops, or maybe just put on a fresh coat of paint or replace some screens. Whatever is needed to make the property appealing and inhabitable, make sure you get the contractor or handyman in there Day 1 so that the work can get completed ASAP.

2. Have the home professionally cleaned

Once the rehab is done and all the fixes are in place, make sure you hire a professional cleaner to sanitize the interior. It will show better in the photos and the prospective tenants will appreciate it.

3. Take professional photos

One of things we have learned at 24 Hour Property Management is that the quality of the photos really helps sell the property to buyers and tenants. A few cell phone photos don’t do a property any justice.

4. Get it on the market

The quicker all these steps are completed, the quicker the property can be shown to potential tenants, the quicker a quality tenant can be selected, and the quicker your cashflow will begin.

Contact 24 Hour Property Management, Inc.

We’ve helped investors buy and rent properties over the years and we’d love the opportunity to help you take your property to market. We have vendors and specialist to help every step of the way. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

How do you Identify a Good Investment Property?

If you are looking to identify a good investment property, be sure to pay close attention to these three things:

1. Geography

Does the geographic location lend itself to attracting a quality tenant that will pay on time while taking care of the property? Is community stable with good schools? Are the area industries diversified and able support a workforce for the foreseeable future? 

2. Resale Value

Most investors buy a residential property for a long-term investment, but there are many who prefer short-term holds. Whatever your plan, you should consider the ability to resell quickly, as well as the potential future value of the property if you intend to sell or are forced to sell at some point in the future.

3. The numbers

Know your numbers. Analyze the cash flow by comparing the mortgage payment, taxes, HOA, and insurance costs against your expected rent. All investors want positive cash flow, but some may be willing to take on negative cash flow with the expectations of positive cash flow in the future.

Contact 24 Hour Property Management, Inc.

We’ve helped investors buy and rent properties over the years and we’d love the opportunity to help you locate a great investment property. You can reach us seven days a week at 949-409-8585 or you can check us out on the web at 24hourpm.com.

Is it possible to self-manage an investment property?  Of course it is.  But, if you’re an investor that wants to free up time to focus on your family, business, or anything else that is important in your life, we can help you do just that for a nominal fee.  If you don’t have time to answer all the tenant calls, repair all the items that need repairing, or handle any issues that happen 24/7, it may make sense for you to hire a company like 24 Hour Property Management, Inc., to take that off your plate. 

How can a property manager benefit me?  

 Tired of fielding calls late at night or stressing about collecting late rent?  Let a professional property management company handle this for you so that you can concentrate on the things that really matter in life.

Contact 24 Hour Property Management, Inc.

We’ve helped investors buy and rent properties over the years and we’d love the opportunity to speak with you about your property, your goals, and your management needs.  You can reach us seven days a week at 949-409-8585 or you can check us out on the web at www.24hourpm.com. 

Self-Manage Vs. Property Management – Which Option Is Better for You?

Are you thinking about buying a rental property in Southern California and aren’t sure if you should hire a property management company or manage that rental yourself?

This is an excellent question to ask, that’s why in this article we will provide you with several reasons why you should consider hiring a property management company, especially if you have enough profit from your rental to afford hiring one.

A Property Manager Will Save You Time

Hiring a property manager will save you the time and hassle of managing those rental properties or units yourself, so you can focus on the more rewarding aspects of your life without having to be concerned with the day-to-day tasks that can come with managing rentals.

Some of the daily tasks that a property manager will do for you include:

• Marketing your property online
• Screening and placing tenants
• Collecting rent
• Customer service
• Managing maintenance requests
• Keeping books for your property

Hiring A Property Manager Will Help Your Rentals to Run Efficiently

From taking calls from tenants, collecting rent, to making minor repairs on your rental properties, there’s no way you can continue to do everything yourself, especially if you own multiple rentals.

If you want to continue building wealth in real estate then you want to hire a property manager sooner rather than later, since a property manager will take the “heavy lifting” off your shoulders and ensure that your rentals are running efficiently while you enjoy passive income from them.

Live Your Life on Your Terms

Last of all, but most important, hiring a property management company will help you to live your life on your terms without a wide variety of extra responsibilities that can come with managing a rental property.

24 Hour Property Management, Inc., specializes in property management in Southern California.

To learn more about the property management services we can offer you, or to view investment properties in SoCal, contact us today at (949) 409-8585 or connect with us online at www.24hourPM.com.