Tenant screening is the most overlooked skill in property management.
Las Vegas Real Estate news this month is focused on tenant screening. I will explain why tenant screening techniques are the key to property management success and how we do it.
This video demonstrates our superior techniques in screening tenants.
- Laws Have Changed – I would like to start off with some facts that people don’t know. Our legislature has become significantly more liberal in the past couple of years. As a result, the laws of changed where it is making it significantly more difficult to attack tenants. What used to take two weeks to get rid of a tenant now takes no less than two months.
- Improper Screening Costs a LOT of money – That video shows an owner who screamed his own tenant and try to save some money by not hiring a property manager. He saved about $400 over the year but it cost him over $14,000 in lost revenue and repairs. He simply did not know that there is actually a benefit to having someone professionally screen and manager property. Most of our competitors lack proper screening techniques which can also result in catastrophic consequences.
One Million Vacant Homes In California
Crazy right? This article doesn’t explain why either. Perhaps some of you folks who still live there can tell me why there are so many vacant homes. Nothing about this real estate market makes any sense to me. All I do know for a fact is that I get a call from someone who just purchased a place in Las Vegas every week who needs someone to manage their property. Then they learn the agent who helped them buy the property blew smoke up their butt and told them they could either do a short term rental OR get way over market rent for it. None of these new investors are even breaking even once they subtract out the mortgage, insurance, management, taxes etc. Investing in Las Vegas right now is not a good idea.
Something else is strange too. Some of our recent sales are being purchased by institutional buyers. These buyers are large companies with millions of dollars in cash who pay WAY above list with just minor concessions after the inspection. 7 months ago, one of my investors sold a house to an institutional buyer. I looked into it and some property manager licensed in Florida and Las Vegas placed a tenant outside of the MLS system. Surely these institutional buyers know there is a correction coming and they don’t care about cash flow.
FOMO – Fear Of Missing Out
This article has another perspective of the out of control buying frenzy. It appears the fear of missing out outweighs the financial logic. All the agents here are scratching their heads too. This mentality of purchasing homes simply because people are flush with cash never ends well. Everyone has all this cash in their pockets and it’s burning holes in their pocket. The last time people had too much money in their pockets resulted in a bubble that burst.
Trusts, LLCs, Attorney’s and Beneficiaries
We will be reaching out to everyone soon to get to collect information on all our customers. The purpose is so we have back up contact information for our primary contact. Some of you are not getting any younger and we need to know who to contact if you suddenly go MIA. If you need help with protecting your assets, please contact us!! This page goes over the basics on asset protection. It’s never too early to get your estate in order. Every year, we have a client who checks out and leaves their assets at the mercy of some random judge. Don’t be that person who checks out without a plan.
Victoria Moran – Jim’s New Assistant
We are happy to announce Art Reyes now has his property manager permit. This means he will be taking on more responsibilities and handling accounts for Limestone Investments. Jim’s new assistant Victoria Moran will be taking on responsibilities including utilities, comps, leases etc. She has over 6 years leasing and property management experience for residential and commercial brokerages.