No matter the subject, when someone starts something new, there is a learning curve. The more experience the person gets, the better they become at the task. This is true when it comes to real estate management in Tampa. At Specialized Property Management in Tampa, we understand that entering the world of rental property management can be daunting and costly if done incorrectly. That is why we feel confident that our years of experience are valuable to our clients. Over the course of 30 years, we have learned and experienced every situation imaginable in property management, and we are sharing our knowledge with landlords so that they can avoid costly mistakes. In this blog, landlords can find solutions to improving cash flow, efficiency, and stability. 

Too Many Vacancy Days

It can be discouraging to show a vacant rental property time and time again, only to find yourself empty-handed when it comes to applications getting returned. Vacant rentals that sit on the market for too long can be caused for multiple reasons:

• Getting the Property Rent Ready: As soon as your current tenant returns keys to the property, enter the property and conduct a move out inspection. Real estate management in Tampa should change the locks, test and service appliances, search for any water damage, assess the flooring, patch holes in the wall and paint, and clean the property. Make needed improvements or updates to the property during the turnover stage. Schedule vendors back to back and work efficiently. Remember that each day that a rental property sits vacant, it is costing the property owner money. Rent Cafe found that the average rent amount in Tampa is $1,359. This means that each day a property is occupied, a tenant is paying an average of $45 per day. This also means that each day a property sits unoccupied, the property owner loses $45 per day. 
• Pricing: One of the top reasons a rental property will be vacant for an extended period of time is pricing. It is imperative to be well educated on the rental market in the area that a landlord owns a rental. Landlords who practice real estate management in Tampa know that if a property is priced too high, either no one will express interest, or you will show the property to disappointed prospects who feel there are better and cheaper deals than yours. If a property is priced too low, you run the risk of attracting unqualified tenants. If your property is priced correctly, it will get rented within a reasonable amount of time. Conduct market research and study comparable vacant properties. Find other vacant properties within the area of your rental property that have similar square footage, the same number of bedrooms and bathrooms, amenities, updates, and yard size. When listing your vacant property, start at an aggressive price. You may elicit interest and you may not. If the phone calls, text messages, and emails stay quiet, lower the price. 
• Marketing: The best way to reach a large audience of prospective tenants is to market your vacancy online. List your rental across multiple online websites for real estate management. In Tampa, there are many online marketing rental websites that are free. Some websites require a small fee to list a rental property. A few of the websites that tenants most commonly use are Zillow, Craigslist, Trulia, and Rent.com. Be clear and accurate about the property description and tenant qualifications. If you find that interested prospects are continually unqualified, list your tenant qualifications in your advertisement for the property. This saves time for you as the landlord and for those seeking a new home. Include income requirements, security deposit amount, pet policies, and the length of the lease that you expect to be signed.  

Poor Rental Property Selection

Picking a house that is owner-occupied is different from choosing a property that is designed to be a rental property. Prior to putting an offer on a rental property, consider the following features when searching:

• Neighborhood: Consider the area and neighborhood when searching for a rental property to purchase. Successful real estate management in Tampa can significantly depend on the location of a property. If it is located near a university, it is likely that students will occupy the property. If it is located in the suburbs, you are more likely to attract a family. Consider access to shopping, dining, and transportation. Does it provide a convenient commute for working professionals? Is it near a grocery store or does it allow a variety of restaurants for residents? 
• Property Taxes: Knowing the tax rate of the community in which you plan to buy can be imperative. Tax rates can vary greatly across an investor’s targeted area. If the tax rate is too high, it can be difficult to cash flow the property. Keep in mind that a high tax rate is not always a bad thing. It is possible that neighborhoods with high tax rates are so desirable that it will attract long term tenants. To gain more clarity regarding your tax rate in Tampa, visit SmartAsset. 
• Schools: If you are seeking a single-family home with three to four bedrooms, having high quality schools can be a large determining factor for tenants. In addition to being desirable to renters, having good schools in the area can assist when it comes time to sell the property in the future.
• Crime: A good rule to live by in real estate management in Tampa is that if you would not feel safe living there, it is probably not a great rental location. Check the local crime statistics for both serious and petty crimes. NeighborhoodScout provides information about crimes that are most likely and least likely in certain zip codes. Ask occupants in the neighborhood where you are seeking to purchase a rental if there is a strong police presence or high criminal activity in the area. 
• Jobs: If you see or hear of an area where a major company plans to move, it can be a guarantee that workers will need a place to live. Pick a location with job growth and multiple job opportunities. 
• Average Rents: Prior to purchasing the house, conduct market research to determine an estimate for the amount of rent that the property earns. This will help investors know if the property’s purchase price is too high or too low to generate cash flow on rent. Companies that specialize in real estate management in Tampa can provide investors with estimates. 
• HOA: Not all homeowner associations allow for rentals. Some do not allow them at all, some only allow long term rentals and no vacation rentals, and others have stipulations that they put on rental properties in the neighborhood. Know the rules of the HOA in the neighborhood, as well as the monthly HOA fee, before purchasing a rental property. 

Low Tenant Qualifications

Finding a tenant that is qualified to live in your rental property might be the most telling factor when it comes to having success as an investor. Establish your screening standards and keep them the same for every applicant. Changing the acceptance criteria from one tenant to the next can be considered discriminatory. Determine the minimum credit score that you will accept, the rent to income ratio that you will require, and what questions you will ask of previous landlords. Require that all applicants fill out an application to rent and return the signed application to real estate management in Tampa. Those who are employed should submit income verification. If a tenant has had an eviction within the past seven years, you should probably deny the application. If an applicant owes an outstanding balance to a previous rental property management company or utility company, it is advisable to also deny the application. 

Costly Violations

Violations of any law can result in a high fine. When aiming to make money through real estate investing, getting hit with a lawsuit for failure to comply with housing laws can quickly eat away at cash flow. Some of the most common housing laws that are violated include the Fair Housing Act, the Americans with Disabilities Act, and Habitability Laws. Below is a brief overview of each law. If a real estate investor intends to manage his own property, he should become well educated in each of these laws.

• Fair Housing Act: It is illegal to discriminate because of race, color, national origin, religion, sex, familial status, and disability. All applicants and tenants must be treated equally and held to the same standards in real estate management in Tampa.
• Americans with Disabilities Act: This law prohibits discrimination against people who live with disabilities, physical or mental. In rental housing, those with disabilities can make a Reasonable Accommodation Request to the landlord or property manager. This request should be in writing. Reasonable accommodations allow someone with a disability to equally enjoy and use the dwelling, as much as someone who does not live with a disability. Some examples of reasonable accommodations may include installation of a ramp leading to the front door or a seat in the shower. 
• Habitability Laws: Landlords agree to keep the property in compliance with all building, housing, and health codes. They agree to maintain structural safety and plumbing in good condition. Landlords also agree to exterminate insects and rodents, maintain heat and both hot and cold running water during winter months. Landlords are also responsible under Habitability Laws to perform repairs and give at least 12 hours’ notice prior to entering during reasonable hours. 

How Specialized Property Management in Orlando Can Help You

There are many complexities and risks associated with owning and managing a rental property. Avoid headaches and hassles by hiring the top real estate management team in Tampa, Specialized Property Management. Call us today.