What to Look for In a Property Management Company in Pittsburgh, PA

What to Look for In a Property Management Company in Pittsburgh, PA

by | Jul 10, 2019 | Blog, Investment Rental Property, Property Management Education

What to Look for In a Property Management Company in Pittsburgh, PA

Property managers often get a bad rap. Why?

Because until recently, the work of a property manager wasn’t taken seriously.

The industry was undeveloped and there wasn’t a lot of training and technology, which led to distrust and bad practices.

But, things are changing.

There’s been a lot of innovation and investment in the property management field, and the best property managers today are doing a lot more than collecting rent and placing residents. We’re managing assets.

 

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Should I Rent or Sell My Pittsburgh Property, PA Rental Property?

Should I Rent or Sell My Pittsburgh Property, PA Rental Property?

by | Jun 10, 2019 | Blog, Investment Rental Property, Property Management Education

So Which Is Best: Renting Out or Selling My Home?

We frequently talk to homeowners in Pittsburgh who are moving into a different home or leaving the area for work or other responsibilities who aren’t sure what to do with their property. 

Deciding whether you want to sell or rent out your property is a very personal decision and there’s no single answer. 

Your decision will depend on a number of factors – contrary to what you might believe, though, not all of these factors involve finances!

Today, we’re going to share some of the points we talk through with owners who are deciding between renting out or selling their home.

 

#1: Consider Short and Long Term Financial Goals and Needs

If you need some immediate cash fast, it’s better to sell your property. 

Renting out a home can build wealth and earn you incredible profits, but it’s not going to happen right away. 

You need to settle into a long term investment strategy in order to make real money. 

So, if you’re looking for money to use as a down payment on a new home, you want to invest elsewhere, put a child through college, etc.; selling is better for you right now. 

However, when you don’t have an immediate need for the equity that’s in your property, it might be better for your financial future to rent out the home. 

You’ll earn some regular cash flow and hold onto your asset while it continues to appreciate in value. 

Long term investors will earn more by renting out the property.

 

#2: Think About the Value of a Great Tenant and a Maintained Home

As a rental property, your home has the potential to earn your regular income. 

A property with positive cash flow has higher earnings than expenses. 

For example: 

if you rent out your home for $1,500/month, your mortgage payment is $800 per month, and your taxes, insurance, and other expenses add up to $300 a month, you’re earning a pretty healthy cash flow. 

 

$1,500 / month      Your rental rate

-$800 / month        Mortgage payment

-$300 / month        Taxes, insurance, other expenses

$400 / month        Cash flow

 

Even if you’re breaking even with your income and expenses, remember that there are still several benefits to renting out your property:

  1. Your resident is paying down your mortgage
  2. Your asset is increasing in value
  3. Your resident is taking care of the property

If you’re preserving the condition of your property and keeping it occupied with great residents who pay rent on time and follow the terms of your lease, a rental will provide income and ROI for as long as you own it.

 

#3: Consider Renting the Property for Tax Benefits

Don’t forget the tax benefits of renting out a property! 

When you sell a home, you may have capital gains taxes to absorb. 

However, when you rent out your property, you can protect yourself from a lot of tax liability. 

Depreciation is a deduction you can take, and you can also deduct the costs of maintaining your home. 

Additionally, professional services like property management are tax-deductible.

 

#4: Don’t Forget to Take Emotions into Account

When it comes to a home, there are also some emotional elements involved. 

If you can’t bear the thought of someone else living in your home while you’re still attached to it, it may be better to sell and move on. 

If you might return to the Pittsburgh area at some point in the future, keep it so you have a place to live when you come back.

We’re Here to Help

We’d be happy to talk through these issues with you, and to figure out the solution that will make the most sense for your bottom line and your peace of mind. 

Contact us at Arbors Management today!

What Can I Rent My Home Out for in Pittsburgh, PA?

What Can I Rent My Home Out for in Pittsburgh, PA?

by | May 10, 2019 | Blog, Investment Rental Property, Property Management Education

Every Investor’s Burning Question

Much like snowflakes, every rental property is unique.

But, while you might have an idea of how much your investment property is worth, you still have to ask yourself:

In reality, how much rent can I actually earn from my property? 

The answer to this question is based on a number of factors: 

  1. The Pittsburgh rental market
  2. Property location & pricing
  3. Size and condition of the property

Some of these factors are within your control, while others are not.

Let’s take a look at how each of these factors plays a role in determining your rental property’s value and what you can do to maximize your rental income.

The Pittsburgh Rental Market

One of the things you have no control over is the strength of the current rental market. 

Obviously, you’ll hope to earn enough to cover your mortgage and other expenses, all while earning a bit of extra cash every month. 

But ultimately, the price you place on your rental home will depend on what’s going on in the rental market – and whether there’s a demand for homes like yours. 

Before you price your property, make sure you take a look at the market. 

Get to know what homes similar to yours and in your area are renting for. 

Do a comparative analysis so you know how your own home measures up. 

The whims and preferences of renters often change, and residents are more educated than ever; qualified renters won’t be willing to pay more than what the market dictates.

Property Location and Pricing

Another consideration is location; your property’s location will influence its price. 

If you have a single-family home in a neighborhood with a good school system, you’ll be able to charge a lot more than if your property was in a less desirable zip code without access to good schools, commuter routes, shopping, and recreation. 

As a general note, properties that are more remote will often rent for less. 

Once you’ve bought a property, you don’t have much control over its location; but, location is something to take into account when you’re considering an investment.

Size and Condition of the Property

The size of your home will also impact the price. 

For single-family homes, a three-bedroom, two-bathroom home is usually going to earn more than a home with just one bathroom or two bedrooms. 

However, a condo or loft space downtown doesn’t need the three bedrooms in order to bring in top dollar rents. In that case, amenities will make more of a difference.

Property condition is actually a factor that you can control; when you allow your property to look worn out and run down, you’re losing rent money. 

When considering the condition of your property, an important question to ask yourself is, “Would I live here?” 

If your answer is no, you may need to consider some strategic renovations or upgrades that could make your property more desirable.

You’ll be able to charge more in rent when you provide fresh paint, new floors, and even simple improvements like new faucets in the kitchen and bathrooms. 

Replace your drawer pulls with brushed nickel, install better lighting, invest in replacing old and nearly-broken appliances with energy-efficient models.

Not only will these minor investments raise your rent, they’ll also attract better residents.

Need Personalized Advice on How Much to Charge in Rent? 

We can help! 

We’re experts in pricing rental properties in the Pittsburg market. Contact us at Arbors Management for a free consultation and to learn more today!

Melissa Taylor Johnson

by | Mar 21, 2018 | Testimonials

I’ve been with Arbors Management since March 1 2017 no complaints so far call maintenance they are right here to fix anything. I could see myself here another year and more and I would recommend others to them