Category Archive : Property Management

Rents are up, and property values are down, making Las Vegas a great place to get established as a property owner. Of course, buying a rental home and actual getting it occupied and generating income are separated by a few crucial steps. All told, however, it’s easier than you think to start earning rental income.

Research and Buy Strategically

If you’re buying a rental property, you’ll need to lead with your head, not your heart. Start with the numbers, not the upgrades. You’ll need to get a solid idea of how much properties are renting for in various areas of Las Vegas. Then, you’ll want to get an idea of how much you can expect to pay on a mortgage in a particular price range. Start your search where the line between rent and mortgage cross.

If you buy too much property you won’t see a profit from the rental income, since it’s generally capped by the rental market of an area. If you buy a property that is ideally suited for an area and happens to be selling for far less than you can earn in rent, you’ll have a much higher profit margin. These numbers can be hard to find, but working with an experienced realtor or property manager can give you insight into the various neighborhoods and rent amounts to expect.

Make Ready

Ideally, the home you buy should be ready for tenants immediately after signing the mortgage paperwork, but this is rarely the case, especially when buying foreclosures and bank owned properties. Have a contractor on hand immediately after closing and a list ready to go from the inspection you had during the buying process. The faster you get the home ready to rent, the more quickly you can expect to see a profit.

If a home will take massive amounts of work to make ready, it will take a long time to recoup the costs of the repairs and renovations – this is something to keep in mind during the buying process. A rental home in the average market doesn’t need many bells and whistles.  A clean, fresh home with functioning appliances is your goal with the make ready, not a beautiful home to entice a reluctant buyer.

Find Renters

An empty rental home diminishes income rapidly. Your property manager who helped you locate the home can also help you rent in. The manager will handle the screening of tenants as well as showing the property to those interested in renting. He’ll do the necessary interviews, handle deposits and payments and forward you the rental income once the renters are established.

While it’s important to have a nice property to keep your renters comfortable and content paying you monthly for the privilege of living in your property, you also need an outstanding property management company.

Your tenants should have their concerns addressed quickly and any issues with the home or rent payments need to be handled professionally and promptly. A poor choice in management for your properties can run your tenants out, resulting in lost income while you find new tenants at the end of each lease agreement.  Learn more about what Shelter Realty can do to help you manage your properties by giving us a call at 702.376.7379 or visit the property management section on our website.

We’re excited to announce a new addition to our Property Management team, Las Vegas Property Manager, Melody Wallace.

Melody, a former Corporate Broker with Asset Realty has over 13 years of residential property management experience here in the Las Vegas Valley.  She brings a vast amount of knowledge to our team and will be instrumental in the growth and development of our property management division.

Melody not only takes the position of property manager but takes on the responsibility as our new office manager.  She will provide training and guidance to our staff and will continue our commitment to exemplary customer service.  I know we are lucky to have her and I am confident our landlords and tenant will enjoy working with her.

If you get a moment, please welcome Melody to the Shelter Realty family.

Our new Las Vegas landlord property management clients are generally overwhelmed at the amount of effort and detail that goes into preparing a rental property for new tenants.

Simply cleaning up a property so that is shows well at listing appointments is only part of process.

However, turning a rental into a home that a tenant can live in requires a lot of extra steps that most new landlords haven’t considered.

While most seasoned real estate investors may have perfected their own “Rent Ready” systems, the following 12 steps are the basics that all landlords should pay attention to:

1. Locks Re-Keyed –

The front door and garage entry are two obvious locks to change.

However, you’d be amazed at how many landlord forget all of the other locks that are tied to a property, such as – mailboxes, side gate, garage door openers re-programmed, house alarm code changed, outdoor sheds…

It’s also a good idea to make sure you have a complete inventory of any HOA gate remotes and keys, community pool or fitness center, as well as any special gate codes.

2. Professional Carpet Cleaning –

We recommend the type of carpet cleaning that doesn’t leave any residue. So, a full steam cleaning and “shampoo” would be better than a chemical / solution overlay.

Las Vegas carpet cleaning costs can range from $99 – $400 for a 1500 – 2800 SQ FT property.

3. Landscaping –

Cut the grass, trim the bushes, prune the trees, pull all of the weeds, fix the broken sprinkler heads, replace dead or dying shrubbery, add a few new flowering plants if the season is right and spray the dirt out of the cracks in the sidewalks and patio.

Rent Ready landscaping also involves removing any pots, yard furniture or decorative garden gnomes.

4. Changing The Air Filters –

In addition to changing the air filters, cleaning the vents and surrounding ceiling area goes a long way to impress a potential tenant.

I’m not talking about a full air duct cleaning, which wouldn’t be a bad idea, I’m simply referring to the visible area where the dust and dirt builds up.

And, if you have the reusable air filters that have to be manually cleaned every month, take them home with you and trade them out for a fresh new disposable option.

5. Professional Rent Ready Cleaning –

Even if you or your past tenants happen to be extremely clean, a professional crew will probably still be necessary in order to give your rental property that industrial strength detail that your new tenants will expect.

The rent ready cleaning companies that we work with in Las Vegas literally go over every square inch of the property cleaning drawers, cabinets, baseboards, blinds, door arches, lite switch covers, the scuff marks at the bottoms of doors, and the insides of your fridge, washer and dryer.

6. Let There Be Light –

It isn’t necessary to change out all of the light bulbs, but you could change a few to a different wattage or replace with an energy saving alternative to conserve power.

Also, simply replacing bulbs may not be enough if the light covers of outside lamps or inside ceiling fans are so dirty that they only produce a dim glow.

7. Ceiling Fans –

Major dust collectors that definitely require special attention, especially if they have been installed in a property for a few years.

8. Outside Cobwebs –

At least clean up the spiderwebs that are hanging over the entryway or covering the front lights on either side of the garage.

9. Window And Sliding Door Tracks –

It only takes a few months with the Las Vegas wind for dust, dirt and dead bugs to build up inside of the window or sliding glass door tracks.

This is an important Rent Ready step that Shelter Realty requires for the rental properties that we’re managing.

10. Remove All Personal Items –

This includes lawn furniture, yard tools, couches, cleaning equipment, chemicals…..

The only exception would be a small sample of paint that matches the inside and outside walls. A few pieces of tile are acceptable as well, but that’s about it.

If the new tenant happens to see some old items that they wanted, then it would probably be acceptable to include them in the original lease agreement with terms of ownership.

11. Replace Torn Screens –

Torn or bent screens and screen doors need to be replaced. If you have a large house with minor wear and tear on these items, then it’s probably a decision you’ll have to consult with your property manager about.

12. Pest Spray –

It’s better to have the property sprayed a few times, or set up on a regular schedule. Either way, you’ll definitely want to hire a professional pest company to give your property a full treatment for all of the common bugs in the Las Vegas Valley.

Based on just these 12 steps alone, getting a Las Vegas rental property ready for new tenants or the initial listing / marketing is a big process.

Please feel free to contact our Las Vegas property management division at Shelter Realty if you have specific questions what services our company and vendors handle for new landlord clients.

Five Ways Landlords Can Protect Their Vacant Las Vegas Rental Properties

As a former police officer for the city of Henderson, I have a unique perspective on crime involving vacant properties.

Patrolling neighborhoods at all hours of day and night has helped give me an eye for possible break-in opportunities that burglars and vandals would take advantage of.

Now, as a property manager with hundreds of rental properties, I’m able to lean on my law enforcement experience to help our landlords and out-of-state investors protect their vacant homes during the transition period of when Shelter Realty takes over management of their properties.

Here are five things we recommend to landlords for keeping their vacant Las Vegas rental properties safer:

1. Remove “For Rent” Signs From Windows And Yard –

The first, and one of the most important things we ask our property management clients to do is remove any rental advertising on vacant properties.

Even worse than a “For Rent” sign in the window of a vacant property, is if it states that the owner has installed a new Fridge, Washer, Dryer and Upgraded Light Fixtures.

2. Maintain The Landscaping –

Weeds, broken sprinklers and dead grass are signs that a property may be vacant or even abandoned.

Obviously, a maintained yard will also give a potential renter the warm and fuzzies, as well as keep the neighbors happy.

If you hire a landscaping company to handle your weekly outside chores, make sure you ask them to collect any flyers or door hangers from your entryway that may look like trash.

3. Put Lights On A Timer –

A porch light that is on 24 hours a day is almost as noticeable as one that is off at night.

In addition to keeping your outside lights on a regular schedule, it may be a good idea to put an interior light on in the upstairs or within the center of the home to give the perception that there is someone living in the house.

4. Blinds Open Or Shut –

We can make an argument for either keeping the blinds open or closed. With that said, our recommendation is to keep the upstairs open and the downstairs closed.

It also really depends on whether or not you have neighbors that are willing to keep an eye on your property for you.

If the blinds are open, then it’s easy to see when someone is inside, especially if you drive by the property one day and notice that some of the blinds have been shut.

However, having open blinds also allows anyone to look in the windows and see that the property is vacant.

Basically, use your best judgement on this topic, but it is something to be aware of and strategically plan for.

5. Qualifying Interested Callers –

If you are marketing your property in the newspaper or online, be cautious of what information you give callers who may be interested.

For example, it would be a bad idea to give away your address to someone who wanted to swing by and take a look at it after work… if you also told them that you live out of town and there won’t be anyone around to help them until the end of the week.

Keep in mind that you may not be the only person on the phone that is having a “pre-qualifying” conversation.

While keywords such as move-in ready, vacant, fully furnished and new appliances may appeal to potential renters, they also peak the interest of criminals.

Shelter Realty definitely understands how challenging of a balancing act it can be between giving too much information in your marketing while still protecting your investment property.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

It is my opinion that a Las Vegas Property Manager should inspect a residential rental property inside and out at least two times a year.  I can’t tell you how many times I have been contacted by a landlord who has recently fired his property manager due to the damage caused by the tenant which was only discovered after they moved out and come to find out the property manager never inspected the property during the tenancy.  Sure enough, when the tenant moved out of the property, the landlord was stuck with all the expenses in order to get the property rent ready again.

Shelter Realty schedules an inspection every 6 months for every property we manage.  A property manager does an inside and outside inspection of the property to ensure the tenant is properly maintaining the property.  A form is completed depicting the condition of the property and listing any maintenance issues that need to be addressed. By conducting multiple inside and outside inspections of the property, it enables us to catch small issues before they become bigger and in most cases it’s a deterrent for any future problems.

In order to protect your investment, make sure you property manager is conducting regularly scheduled inspections by requesting a copy of the inspection report.  If it is time to renew your property management agreement, request that inspections of your property be completed every 6 months in order to ensure your property is being maintained by the tenant before you sign the renewal.

If you have any questions about our property management services in the Las Vegas Valley, feel free to give us a call at 702-376-7379 or complete our contact  form.

It is important for investors in rehab properties to know that as of April, 2010, the Environmental Protection Agency, (EPA) has put into effect the Renovation, Repair and Painting rule. What this means to the investor is that if you have purchased a pre-1978 fixer-upper or are planning to upgrade a multi-family housing development built prior to 1978, it is most probable that the paint covering scheduled to be removed will be lead-based. Read More

Regardless of your investment preferences, whether they are primarily geared toward corporate stocks and bonds or real estate based, diversification is the best road to take to insure asset protection during volatile marketplace upheavals. In other words, as the old and time-proven saying goes, “don’t put all of your eggs in one basket.”

Best advice to any investor; know the marketplace you are playing in. If you are not thoroughly familiar with the rules of the game, you are assuredly destined to lose.

Certainly, no one, no matter how skilled an investor one may be- and we have said this time and again- knows everything, and if you are playing the real estate game, incorporate a team of specialists as your guides and advisers. As any successful investor will assure you, it takes a team effort to succeed.

There are many ways to diversify a real estate portfolio, and the investor should –after careful analysis – choose the path that best suits present and future market conditions and projections.

Among the many and most common real estate diversification investments are:

• Purchasing and selling or renting high-end properties; estate homes, luxury condos, etc.
• Buying, repairing and renting or selling handy-man specials
• Apartment complexes
• Condo conversions
• Real Estate Investment Trusts (REITs)
• Real estate mutual funds
• Real estate hedge funds
• Real estate related stocks
• Raw land
• Commercial property

Diversification allows the investor to ride out a down cycle in a particular market, with asset loss minimized or even neutralized by an up cycle in other real estate investments.

Take for example, what is happening in today’s marketplace. An investor whose specialty is strictly geared toward the buying and selling of single-family homes is faced with falling property values due to a huge glut of available inventory, mostly consisting of distressed properties, and with no immediate prospects of this inventory diminishing to any great degree for some time.

However, an investor for example, who buys and sells homes and has additionally invested for the long term in rental properties, including single family residences and apartment complexes, will have the benefit of continued cash flow from rentals.

Investors who have concentrated strictly on one aspect of real estate investment are in trouble when their investments hit a severe down cycle, since these investors have no immediate options to fall back on.

The investor with a skilled real estate agent as part of his/her advisory team is in an excellent position to intelligently forecast near future  market trends in some instances, and make the kind of investments that will maximize revenues and minimize loss.

Although these examples are just simplified versions of complex issues, the wisdom of diversification is obvious.

The worst housing crisis in more than half-a-century has devastated Las Vegas home prices, severely impacted our economy, and thrown many people out of work and out of their homes.

But, as in any downturn, even during the Great Depression of the 1930s, opportunities for the astute investor could always be found.  Of course, in good times or bad, cash is always king, and an investor with a ready source of capital and a sound line of credit is in a position, particularly at this point in time, to acquire real estate properties at record low prices. Read More

Investing in Las Vegas Townhomes

The classification of “townhome” is often confusing to people, since townhomes offer some of the attributes of both a single-family home and a condominium. A townhome is a structure that shares, or is attached by a common wall, either a garage wall or an interior (living room) wall to an adjacent structure.

If the land occupied by the townhome is part and parcel of the deed, then the building is designated as a “townhome.” However, if the land is not the actual property of the homeowner, then the townhome is designated for insurance and tax purposes as a condominium.

Townhomes can be constructed as a single-story, duplex, or triplex. Depending on how the bylaws of the townhouse community are structured, each owner may have an additional shared ownership of the complex, which would include the common areas, parking facilities, swimming pool, recreational facilities, and clubhouse.

A governing Home Owners Association (HOA), oversees the community’s adherence to Covenants, Conditions & Restrictions (CC&Rs.) These policies dictate the legally enforceable operational guidelines that the Home Owners Association must follow and the rules homeowners are obligated to follow, inclusive of the homeowner’s obligatory monthly payment of association fees to cover the costs of landscaping, repairs, maintenance, taxes, etc., of the common areas of the community.

The townhome “lifestyle” appeals to those who enjoy close community living, freedom of the responsibility for maintenance and repair of the exterior portion of their home, easy access to recreational facilities; swimming pool, workout room, clubhouse, tennis courts, etc.

The question of whether or not a townhome is a good investment, has many pros and cons. Certainly, if the purpose of the investment is for rental or resale, the Home Owners Association guidelines assure that the unit’s exterior will be well maintained.

Appreciation is usually not quite on a par with single family residences, and in a down market, townhomes most often depreciate at a faster rate. Certainly, the age of the townhome, how well the interior has been maintained, and if the home has been upgraded, as well as the location, are important factors to consider.

It is equally important to investigate the financial condition of the Homeowners Association. An examination of the operating budget, and copies of past years budgets should be compared. Amounts allocated to the reserve fund, a current financial statement, including a balance sheet, and operating cost statement are necessary to examine as well.

Reviewing the financial statements, insurance declaration and all pertinent documents necessary to analyze the financial health of the HOA is as necessary as evaluating the townhome itself, before deciding if the potential investment is worthy of pursuit.

Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

Once you have made the mental preparations necessary to “sell” your loan proposal to a lender, you, as a new investor, must be certain of the documentation and information required by a lender. The lender will require, at the very least, the following:

• A completed loan application form
• Copies of your past and present IRS income Tax forms. Ask the lender, prior to your visit how many years of IRS filings will be required
• Copies of your credit reports from all three principle credit reporting agencies: Experian, Equifax and TransUnion. Of course, the bank will pull their own reports, but bringing the reports as part of your loan application documentation will certainly enhance your credibility with the lender.
• The loan application form will require you to document your current source of income from any and all sources, employment or business, type of employment or business, debts and other liabilities, alimony, child support payments, if applicable, banking information; checking, savings accounts, etc. Read More

With economic conditions being what they are today, everyone and his brother is out there looking for a real “steal” in Las Vegas bank-owned properties, and besieging lenders with loan requests.

In addition to Las Vegas Investors looking to borrow funds, banks are additionally dealing with many real estate related issues forced upon them by current market conditions, such as foreclosures, loan restructuring requests, short sales, etc.

Unless you are financially well off enough to be an all-cash buyer, you are going to need a loan to finance/purchase your new found property, and since banks are, to put it mildly “running scared” in these unstable times, it’s going to take some skillful planning and preparation to convince a lender that you are a suitable risk. Read More

All the rage these days, a Las Vegas “short sale” to the uninitiated means snatching a valuable piece of property from a grateful lender or desperate property owner at so-called “bargain basement rates.”

Actually, the short sale phenomenon, born from the ashes of the Las Vegas housing burnout of the last few years, is not always what it may seem on the surface. One sees a property that may sell at a considerably below market price, just sitting there, waiting to be snatched up and moved into, or “flipped” for a fat profit. Or so you might think!

A short sale is the result of a home owner’s default on mortgage payments due to an inability to pay as the result of a loss of income, or some such related financial difficulty.  The homeowner is facing foreclosure, and the bank is confronted with an unwanted foreclosure proceeding.

So, a short sale is basically a problem solver of sorts for both debtor and lender. Both parties have agreed to sell the property, and the lender hopes the property will sell for as high a price as possible, but is willing to allow the distressed homeowner to sell at less than the mortgage balance if necessary, sparing the lender and homeowner the difficulties of a foreclosure proceeding.

Sounds simple, but it’s not. There are many complexities involved in a short sale, particularly since the prospective buyer’s price offering may or may not be acceptable to the lender. A further complexity for the buyer deals with the issue of the record low mortgage rates currently tempting competing investors from everywhere.

The record-low rates now in effect have attracted even more hungry investors roaming the real estate “jungle” and the lenders now realize they can minimize their losses by encouraging buyers to bid on these distressed properties, which has had the result of driving selling prices upward. Good news for the mortgage holders.

A further complexity –and often frustration – for the buyer is that, unlike in a “normal” real estate transaction, the prospective buyer’s good faith deposit money does not obligate a lender-who may be selling the home through a listing agent- to sell the home to the qualified buyer, or even have an obligation to sell at the original asking price for the property. Instead, the good faith deposit only means that the lender will consider the buyer’s price offer as one of many “bids” the lender is in the process of reviewing.

This process is to the lenders advantage, since the “bidding” encourages many investors to offer higher prices for the property than the competition. The frustrated initial bidder has no choice but to either withdraw the offer and search elsewhere or offer a higher bid and then patiently wait until the lender decides which of the investor bids is most acceptable.

We are not talking strategies here. We are only discussing the basics of the short sale procedure, and emphasizing that patience and persistence, and an understanding that the lender may take weeks, or even months to decide which bid would be acceptable, is the norm these days.

Having a thorough understanding of the processes and procedures involved in short sale investing is the foundation for a strategically workable approach to a profitable undertaking. Bottom line: short sale investing can be a lucrative undertaking, but only for the savvy investor.

One more thought. Since short sale deals often take so much time and effort to close, and as often as these deals can fall through, bidding on short sales shouldn’t really be the focal point of your overall real estate investment strategies.

Should you have any questions about investing in short sales, feel free to give us a call at 702.376.7379 or reply below with your questions.