Lee's Summit Property Management and Leasing Blog

Best Tips for Self-Managing your Rental Properties

Trisha@MoveWithMPR.com (Trisha Goodale) — Fri, 17 Mar 2023 19:56:36 GMT

Owning and managing rental properties can be a lucrative business, but it comes with its own set of challenges. From screening tenants to handling maintenance requests, property management requires a lot of time and effort. Here are some tips to help you effectively manage your rental properties and maximize your returns.

Set clear expectations

Before a tenant moves in, make sure to set clear expectations about the rental agreement. This includes the rent amount, due date, late fees, maintenance responsibilities, and any other rules or regulations. Having a clear agreement in place can prevent misunderstandings and disputes down the line.

Screen tenants thoroughly

A thorough screening process can help you find reliable tenants who will take care of your property and pay rent on time. Ask for references, run background and credit checks, and verify income and employment. It's also a good idea to have a conversation with potential tenants to get a sense of their personality and communication style.

Maintain the property regularly

Regular maintenance can prevent small issues from turning into big ones and keep your property in good condition. Schedule regular inspections and make sure to address any repairs or maintenance requests promptly. You can also consider hiring a professional property management company to handle maintenance tasks for you.

Communicate effectively

Good communication is key to a successful landlord-tenant relationship. Be responsive to tenant requests and keep them informed of any changes or updates related to the property. Establish clear communication channels and respond promptly to calls, emails, or messages.

Keep accurate records

Maintaining accurate records can help you stay organized and ensure that you are in compliance with local laws and regulations. Keep records of rent payments, maintenance requests, inspections, and any other relevant documents. Consider using property management software to streamline your record-keeping process.

Know your legal obligations

As a landlord, you have legal obligations to your tenants, including providing safe and habitable living conditions, respecting their privacy, and following eviction procedures if necessary. Make sure you are familiar with local laws and regulations related to rental properties and comply with them at all times.

Of course, if you have a property in Lee's Summit, Raymore, Blue Springs or other surrounding areas, we'd love to assist you with all of your property management needs.

Stockpile Cash or Invest in Real Estate?

Chris@MovewithMPR.com (Chris Goodale) — Tue, 07 Feb 2023 19:39:07 GMT

Let's Dive Right In...

To answer this question, let’s take a look at the capital market and the rental / housing market.

Rental demand is remaining strong; most vacancies are less than 30 days for our market. Rental price increases continue to charge upward as well with an average increase of 8-10% on a unit turn and 5-8% on a renewal. We have seen many larger increases on units we have assummed from either other management companies or former self managed properties.

We are continuing to see people relocating to our area for jobs and wanting to rent vs buy.

Housing Prices and Rates

Not so long ago, if you were in the market to buy or sell, you know it was a very competitive sellers’ market with multiple offers and commonly homes sold over list price. Rising rates have put pressure on housing prices due to affordability. The result is less buyers are at the table and slightly softer sale prices. This of course is not necessarily a bad thing. The housing market was accelerating very rapidly. This was a natural reaction due to the combination of affordability and weak supply. Now, homes aren’t as affordable, however the supply situation is not resolved. Nationally, we are still roughly 3.8 to 5 million units short on housing. To further add fuel to the shortage, builders have taken a cautionary step back after they felt the impact of their debt service load when rates came up.

Simplified, we have these two forces working against each other as yin and yang to find the balance point of housing prices. Rates are forcing down, while Supply Shortages are applying upward pressure.

We’ll talk more about how this plays into whether we should buy or stockpile in a minute, but first let’s take a look at what cash is doing.

Cash and the Cost of “Keeping it Safe”

When trouble hits the economy one of our first reactions might be to sideline the noise and get out of the action. Not always a bad play, at least for brief periods while getting a better grip on the direction of things. The trouble with holding that hand too long, is we have a fiat currency. Fiat currencies have a much higher chance to experience inflationary pressures than not. In other words, someone can always be counted on to print or digitize more, thus decreasing the buying power of the ones we hold. In lower inflationary times, it’s difficult to notice the decreased buying power of the dollar. The chart below (Inflationtool.com) shows the inflationary period of CPI (the government measure of inflation) from 1956-2021. Economists argue whether CPI, through its various definition changes, even measures the true cost of inflation . Regardless, it still serves to demonstrate the general trend. Take a look at the 70s when we detached from the gold standard. Then, look again at how steep the curve goes almost straight up in 2021 as the impact of pandemic money printing and supply disruptions take hold.

Every time the bar rises, our purchasing power for dollars earned falls. If our money is sitting in a bank making less than the “Real” cost of inflation, not the CPI, we are literally losing wealth.

To figure the actual cost we would have to know the real inflation rate, which you can google to find estimates for. For this article, we will stick with CPI numbers and know that the real cost down the road is probably higher than CPI.

Stockpile or Invest

You might be thinking at this point, so Cash is losing Real Purchasing Power, Loosing Value, but housing prices have softened too. Yes, that’s all true.

In buy and hold REI, of course we care about the asset value, but our more important metric is the profitability over the term of the hold. The same question could be applied to cash.

If I hold Cash for the next 3 years, vs holding a REI for the next 3, where will I be? For 5,10 and so on and so forth.

Cash Flowing Rentals are adjusting with the market. Rents have been keeping pace or exceeding inflation in our area. Cash has been losing value.

Summing It Up!

Long term Housing Values Don’t Fall. Long term Fiat Cash Value Does!

Idle Capital is wealth eroding in this economic time. Cash Flowing REIs are a way to put your Capital to work, protect it from inflationary pressure, and potentially make both short and long term profit.

Steps to Take, Steps to Avoid to "Really" Play it Safe!

Work with a Realtor that specializes in Investment Property
Identify Selective Cash Flowing Properties with Low Cost Inputs
Fixed Interest Rates can hedge inflation and Provide stability to investments
Go with a Professional PM and choose wisely – Poorly or Under Managed Properties will not be profitable and seem like a mistake.
For Existing Properties or planning purposes for newly purchased property; Adjust Cash Reserves for property expenses to keep pace with inflationary cash value leaks.
Avoid Speculative Purchasing.
Avoid Properties with Major improvements needed unless you have a firm grip on true cost for needed improvements. Many construction related cost have recently risen.
Cash Heavy Investors can capitalize on softer prices and improve returns with more money down to reduce their financing expenses.

Everyone has unique circumstances. Different properties and property types as well as investment strategies will differ to fit individual needs. Working with an experienced Investment agent and PM is a great place to start to analyze your situation and goals.

I'd love to hear from you and your thoughts on this article. If you have questions about the current Real Estate Market, Investments, or the effects of inflation in Lee's Summit, Blue Springs, Raymore, Lone Jack, Pleasant Hill, Grain Valley, Independence, Overland Park, KS or surrounding areas. Click below to give us a call or send us a message by text in lower right!

Here's How to Hedge Inflation With Your Real Estate Portfolio

Chris@MovewithMPR.com (Chris Goodale) — Wed, 26 Jan 2022 19:35:12 GMT

Persistent Inflation - Let's Get Hedged

INFLATION , a word, that just a short while back, was at risk of losing relevance due to its lack of of existence in most consumer products. But now, almost everyone is not only well aware of it, but feeling it. The price at the gas pump, the grocery bill, or cost of clothing, everything seems to be going up! The point of this article isn’t to discuss how or why inflation has come to sweep over our land, but rather how you can hedge against its destructive forces and, in some cases, use it to set yourself up for great returns for capital invested today.

The premise of these recommendations is the dollar of tomorrow will be worth less than the dollar of today. While that has consistently been the case with Fiat money throughout time, we are in a more accelerated period of the dollar’s devaluation. Real Assets, like those in our real estate portfolios, traditionally offer protection from inflation; i.e. they tend rise in proportion or exceeding the true rate of inflation.

Diagnose Your Properties

This is a good time to take a full diagnostic look at the health of your properties. One of the ways to know the condition inside and out is to conduct an inspection . Making note of the current age of more expensive ticket items like HVAC systems, windows, water heaters, etc. Maybe your property(s) are due for some updates and remodeling.

Are any of the mechanicals close to life in the next year or three? If so, it’s very likely, by jumping ahead and replacing them now rather than waiting for them to break will not only allow you to buy them at a discount today, but could enhance the marketability of your property as more efficient. Efficiency will become increasingly important as utility cost and rents continue to rise with inflation. Tenants will increasingly seek properties that are more efficient in the coming years as a result. Maybe you have a cracked or fogged up gross window in a property. New windows are not only more efficient, but also make a home feel cleaner, newer, and nicer. As time goes on, properties can become either worn or outdated. Updating flooring, paint, or new fixtures can make a tremendous improvement to your numbers. Other times, some properties might benefit from going farther, maybe it still has cracked laminate butcher block countertops, yellowed tile, and red wallpaper! It’s a good time to upgrade; it’s only going to cost more in the future!

When Will the Price Increases Stop!

Price increases have been consistently coming down the line on all these categories, and we haven’t seen any signs of them letting up yet. Although the Fed has agreed to taper back its purchasing programs, it will still take time to realize the full (inflation) cost to come through the pipeline. Additionally, we have yet to experience the full effect of the money coming to market from the infrastructure bill that congress recently passed. Once the full impact of that new money comes into play, it will also be competing with our money after the same or similar goods and labor in the construction industry.

Properties that are kept up to speed, rent quicker, bring higher rents, are generally cared for better, and tenants stay longer when they are comfortable. All these things combined improve the bottom line. In high inflation periods, you can increase the value of your assets at a discount.

Size Up Your Portfolio

Since we know historically Real Assets like Real Estate maintain and more commonly gain value during higher inflationary periods, it’s a good time to take stock on your existing investments to make sure they are well diversified and inflation protected. With the Fed already on its way to tapering its purchasing program, we are seeing the effects with rates beginning to tweak up a bit, and expect this pattern to continue as they exit purchasing. Rates are still good but pushing upward. Locking in a lower fixed rate at today’s prices is another way to hedge against inflationary pressures and grow wealth with a Real Estate Portfolio. As rents rise with inflation, you benefit on the spread from purchasing at both the discounted fixed rate of today and the future value of equity of the asset in the future after the inflation wave passes.

Action Items

Take inventory of where your properties are at in their mechanical and cosmetic cycles.
Get Estimates for Replacements and Improvements
Work with your PM to Prioritize Improvements that will offer you the best return on dollars spent.
Implement an aggressive plan to capitalize on the value of today’s dollar that works within your budget.
Evaluate investments for inflationary stresses, Reallocate funds into Real Assets Where it Makes Sense
Consider Adding Properties to Your REI Portfolio

Expected Benefits

Improved Rents
Longer Tenant Retention
Lower Turnover Cost
Less Maintenance Calls
Lower Vacancy Rates
Increased Equity at a Discount
Additional Properties / Multiplied Inflationary Benefits

I'd love to hear from you and your thoughts on this article. If you have questions about tenant landlord relationships or have an issue with a tenant relationship in Lee's Summit, Blue Springs, Raymore, Lone Jack, Pleasant Hill, Grain Valley, Independence, Overland Park, KS or surrounding areas. Click below to give us a call or send us a message by text in lower right!

When Is The Housing Market Going to Crash

Chris@MovewithMPR.com (Chris Goodale) — Wed, 14 Apr 2021 17:53:19 GMT

Google Reports this Search Phrase has Spiked 2,450% in the Last Week!

There's good reason for this spike. With the last housing crisis not that far in our rear view mirror, and homes sales soaring over list price, consumer tensions are rising! Both buyers and sellers are getting anxious about a housing bubble and the likely hood of it bursting. On the buying side, a bust could mean a great buying opportunity, while a seller might be anxious about offloading a property before a foreseeable bust happens. In the meantime, sellers are enjoying an unprecedented sellers market and buyers are left to deal with the situation.

Is the 2021 Housing Market a Bubble Waiting to Burst

The Perfect Storm

Cooler Times Ahead

How to Cut Your HVAC Maintenance Cost on a Lee's Summit Rental Property

Midwestpr.social@gmail.com (Karen Wyle) — Fri, 26 Feb 2021 21:04:22 GMT

Maintenance is an expense that most rental property owners dread. When you’re looking at what you spend on preventative, routine, and emergency maintenance, you’ll likely find that certain systems and functions are more expensive to repair and replace than others.

Your HVAC system is an especially expensive repair. This controls the heating and the cooling, as well as the ventilation into your rental property. A smart rental property owner will do everything possible to invest in the preventative care of this system. Routine inspections and service calls will extend the life of your system and keep it working efficiently.

Today, we want to tell you about a maintenance and utility program that we have available at Midwest Property Resources , and how this can help you keep your costs down. These programs also help with tenant retention because your residents will feel comfortable and secure, knowing that we care about their comfort and utility bills.

Replacing the Furnace Filter and AC Filter

One of our most popular programs is the air filter program. As you probably know, changing the filter is an important part of your maintenance schedule. You need to be consistent if you want to keep the HVAC working properly, and your tenant’s heating and cooling bills also depend on the efficiency of the routine filter changes.

All of our tenants love the filter change product, and so do our owners. With this program, a new furnace filter is delivered directly to your tenants every 60 days. It includes the correct size and expiration date. Your tenants will know exactly when to change out the filter. They won’t have to worry about forgetting to do it, and they won’t have to spend a lot of time and money searching for the right size.

Owner Benefits to the Furnace Filter Program

This program also expands the life of the HVAC system in your Lee Summit rental property. You don’t have to worry that the system isn’t being well-maintained, because you know the tenants are doing their part by changing that filter when they need to.

Even better for our owners is this: our tenants pay for the program.

Tenants are more than willing to opt into this program because it saves them a trip to the hardware store, and they do not have to try to find the right furnace filter. It also improves their air quality in their home and improves their energy bills.

We’d love to tell you more about the things we have in place to maintain your home. If you have any questions about ac filters or anything pertaining to Lee’s Summit property management, please contact us at Midwest Property Resources.

Investing in Real Estate: Where to Start | Lee's Summit Property Management Tips

Midwestpr.social@gmail.com (Karen Wyle) — Fri, 19 Feb 2021 21:11:10 GMT

New investors often have the enthusiasm that’s required when it comes to buying and renting out properties, but the initial first steps can be confusing. Where do you start? How do you find a tenant? What makes a good investment property?

We have some advice to new investors who are buying their first property and want to know how to succeed. The best thing we can advise is to surround yourself with experts. You’ll need a good real estate agent, property manager, legal counsel, accounting professional, and mortgage broker.

With the right team surrounding you, you’ll be off to a great start as a Lee’s Summit investor.

Identifying Investment Opportunities

Real estate in Lee’s Summit and the surrounding areas increase in value over time, so buying a property is a great way to increase your net worth. Owning investment properties can also help you diversify your income, and you’re looking for a home that can potentially earn you positive cash flow every month.

Rental properties are also low risk investments. If the stock market and other investments make you nervous, you’ll be happy to know that the returns on your real estate will be fairly steady. Stock values can fall or disappear but real estate is a tangible investment and it isn’t going anywhere.

Choose a property that fits your investment goals. Before you invest, make sure you understand whether you’re hoping for immediate cash flow, long term appreciation, or something else. You don’t want to buy the first thing that comes along just because it’s available. Be intentional and strategic and put together a roadmap.

Place High Quality Tenants

The tenant you place can often make or break your investment experience. If you allow a bad tenant to rent your home, you’ll find yourself spending more time and money than you want to trying to collect rent, enforce the lease, and protect your investment property. A great tenant, however, will pay on time, communicate well, and help you take care of your home.

You need an application that’s compliant with all state and federal fair housing laws . Be careful when you’re screening; you have to screen every application consistently, and you need to be protective of your applicants’ data and financial information. When you’re screening, check these important things:

Nationwide eviction and criminal check
Employment and income verification
Credit check
Rental history check

Many investors and landlords neglect to talk to former landlords, but this is important. You can ask if rent was paid on time, if there was any property damage left behind, and if that landlord would rent to the tenant again.

Respond Promptly to Rental Property Maintenance Issues

Responding to emergency maintenance is a no-brainer. When a tenant calls because there’s a flood or a fire or a tree that’s crashed through a window, you know that you have to respond immediately with a team of vendors.

Routine maintenance should inspire the same sense of urgency. Taking care of even minor issues right away will make your tenants feel valued and important. This contributes to excellent tenant retention, which saves you money on turnovers and vacancies. Preventative maintenance also protects the condition of your home and allows its value to increase reliably. Don’t put off maintenance work, and always hire licensed and insured vendors and contractors.

Professional Lee’s Summit Property Management

If you’re a new investor wondering where to start – we can help. Turn to us first, and contact our team at Midwest Property Resources.

Since its founding in 2011, Midwest Property Resources has been innovating property management and leasing in eastern Jackson County, northern Cass County, Missouri as well as Johnson County, KS, serving the communities of Lee’s Summit, Blue Springs, Greenwood, Raymore, Independence, Overland Park, and others that surround them.

Lee's Summit Multi Family vs. Single Family Investing - Which is Right for You?

Midwestpr.social@gmail.com (Karen Wyle) — Fri, 12 Feb 2021 21:08:39 GMT

At Midwest Property Resources, we work hard to lease, manage, and maintain both single-family homes and multi-family units. Both classes of residential rental properties make excellent investments, but for different reasons.

If you’re thinking about investing in Lee’s Summit real estate, but you’re not sure which type of property to focus on, we have some things for you to consider.

Single-Family Properties and Tenant Selection

A single-family home is always a great investment option because they are always in demand among highly qualified tenants.

The tenants you attract with a well-maintained single-family home in a good location will want stability, and they are likely to maintain the home just like it’s their own property. These tenants are often interested in owning a home, but they prefer to rent because they like the freedom and the low-maintenance lifestyle renting affords. Single-family homes appeal to tenants who want good school districts and proximity to commuter routes and shopping.

These rental properties also offer investors some great appreciation potential because values are always increasing at a rate that outpaces multifamily homes. In the Lee’s Summit rental market, you can expect to cash flow your single-family home and build some equity quickly. The cost of these homes is not as high as in some other markets on the coasts, and you’ll collect a pretty consistent and reliable rent.

One of the challenges to owning single-family homes is that your maintenance costs may be higher. Even if your property is new or in good shape, you’ll probably spend a little more keeping it in excellent condition. There may be landscaping costs that you cannot pass on to your tenants. Unless you’re paying in cash, you’ll probably need at least 20 percent down when you’re looking for a mortgage, especially if you’re financing your investment through a traditional bank.

Multi-Family Properties and Vacancy Protection

Tenants are more than neighbors with multi-family units; they’re often sharing walls and communal space. This means conflicts and disputes can arise between your tenants more frequently. There might be complaints about noise or parking or trash or pets. This can take some extra time and lead to frustration for you as the landlord.

These are just a few of the pros and cons to buying a single-family home or a multifamily investment. We’d like to help you explore your options, so contact us at Midwest Property Resources.

Property Management Myths Do-It-Yourself Landlords Believe Should Not Believe

Fri, 05 Feb 2021 21:57:44 GMT

Many rental property owners bristle at the idea of paying a monthly management fee or a leasing fee when it seems like finding a tenant and renting out a property is something that can be easily done on their own.

We get it. You’re trying to earn as much as possible on your investment, and those fees for professional services seem to put you in the negative column right away.

Professional property managers can actually earn you more on your property than doing it yourself. With professional management, you have access to tools, resources, and expertise that you just don’t have when you’re managing on your own. You also get your time back, and placing a monetary value on time is pretty hard to do.

There are a few myths that do-it-yourself landlords cling to, and today we want to make sure you’re not believing the wrong things about property management. Now more than ever, it’s important to have a qualified, experienced professional leasing, managing, and maintaining your rental property.

Mistakes DIY Landlords Make

It’s very easy to make a mistake when you’re renting out your own home.

Mistakes are a part of every business, but when it comes to fair housing and discrimination and security deposit disputes, even a small mistake can cost you thousands of dollars.

We have heard about landlords showing up at occupied properties whenever they want. That’s a violation of your tenant’s right to privacy and quiet enjoyment of the home. We’ve also heard about DIY landlords unlawfully evicting tenants by changing the locks or turning off the utilities. That’s going to get you sued.

You have to understand the laws and follow all of the careful and detailed regulations that are in place.

You cannot discriminate in your marketing or your screening process against protected classes of tenants, including people with disabilities or tenants with children. These are mistakes you can easily make without intending to. A professional property manager is careful, deliberate, and experienced. You’ll be protected from risk and liability. You won’t fall victim to those costly errors.

One of the biggest myths is that property management isn’t worth the money. Protecting your property and your reputation is well worth the monthly management fee.

Finding and Keeping High Quality Tenants

Another myth we run into is that tenants don’t need to be screened; as long as they have a job and they can pay the security deposit, why not hand over the keys?

This is dangerous. A bad tenant can cause a lot of financial damage for a rental property owner. You run the risk of late and missing rent payments if you haven’t talked to former landlords or done a criminal background check. There could be property damage left behind that exceeds your security deposit.

Tenant screening is one of the best ways to protect your property.

Vacancy and turnover costs are far higher than the cost of professional property management. If it takes you an extra month to find a tenant or you spend six weeks getting a property ready to re-rent after a tenant moves out, you’re losing a lot of money.

Saving Money on Maintenance with Professional Property Management

We know it can be difficult to decide whether to self-manage or hire a professional. Don’t believe inaccurate information, however. Talk to us at Midwest Property Resources, and we’ll tell you more about how a professional property manager can help.

Rental Inspections Best Practices Explained by a Lee's Summit Property Manager

Fri, 29 Jan 2021 21:00:56 GMT

Rental inspections are a necessary part of Lee’s Summit property management, and you need to ensure they’re consistent and productive. The purpose of inspections are to document the condition of your property, look for any deferred or unreported maintenance issues, and to ensure your tenants are following the requirements of the lease agreement.

You’ll want to conduct a move-in and a move-out inspection at the beginning and end of any lease period. We also recommend an inspection during the tenancy. This gives you an opportunity to see how the resident is treating your property and to talk to your tenant about any issues or concerns they may be having.

There are a few best practices to follow when you’re conducting these inspections.

Lee’s Summit Rental Property Inspections: Look for Maintenance

Maintaining the condition of your asset is an important part of earning money on it. You need to be responsive to any maintenance requests that come in, and preventative maintenance will help you anticipate problems and take care of small issues before they become large, expensive emergencies.

Conducting an annual inspection will allow you to check the property for any needed maintenance. Your tenants might not think it’s important to let you know that a sink is leaking or a handrail is loose. There may be some unreported maintenance issues in the home which do require attention.

Go through the property during this inspection and look for any small issues that the tenants may not have noticed or thought were important. Check under sinks and faucets for leaks. Look at the caulking around tubs and toilets. Make sure there isn’t damage to the roof or the gutters from tree branches or leaves. Check the HVAC system. Make sure filters have been changed regularly and check for rust or deterioration around coils and vents.

A property condition report should be produced at the end of each inspection, including photos and notes.

Lee’s Summit Rental Property Inspections: Lease Enforcement

During rental property inspections, you’ll also want to make sure your tenants are following the terms of your lease agreement. This doesn’t mean you don’t trust your tenants; it simply means you are verifying that they are performing the way they agreed to perform.

You don’t want to compromise your tenant’s right to privacy, and there’s no need to show up at the property every couple of weeks trying to take a look around. This is invasive. Instead, put something into your lease agreement that reflects you’ll be inspecting the property at least once during the course of the tenancy.

There’s no reason to anticipate lease violations when you’re working with a well-screened tenant. If you notice pets running around when you never approved pets, discuss this with your tenants. If you notice full ashtrays in the kitchen when this is a non-smoking property, that’s another conversation you’ll have to have. This inspection isn’t intended to catch tenants in the act – you just want to make sure they are respecting the rental contract.

Lee’s Summit Rental Property Inspections: Tenant Retention

If you have any questions about how to conduct a rental property inspection or you need some help with Lee’s Summit property management, please contact us at Midwest Property Resources.

Missouri Harsh Winters: How to Prepare Your Lee's Summit Rental Property

Fri, 22 Jan 2021 21:05:06 GMT

Winter is coming. There’s no avoiding it, and in Lee’s Summit, winter often means snow, freezing temperatures, ice, and wind. It’s important that you pay attention to the seasonal maintenance needs of your Lee’s Summit rental property. You want to protect your investment and the tenants who are living there.

Inspect and Service Lee’s Summit Heating Units

Your residents will certainly need heat throughout the winter, so make sure your furnace and heating units are working the way they should be. We strongly recommend having your entire HVAC system serviced twice a year. If you do it before the seasons change, you can be sure the heating unit is ready for winter.

Schedule your local HVAC technician come out to your rental properties to inspect, clean, and service the furnace, vents, and full heating unit. This will prevent a problem during the worst of the winter. You don’t want to be fielding phone calls from freezing tenants who are complaining about their lack of heat. Get ahead of that potential problem.

Check for Water Intrusion and Avoid Frozen Pipes

Before winter sets in, check and clean the gutters at your property. You’re looking for any debris that might have gathered there throughout the summer and fall. If your gutters are clogged, you run the risk of attracting pests and pushing water into the property. That’s going to lead to bigger and more expensive problems.

After you’ve had the gutters cleaned out, check the roof as well. You want to make sure there isn’t a lot of debris, and you also want to look for water intrusion indications. Make sure there aren’t any holes or missing shingles.

Talk to your tenants about keeping the heat on to ensure pipes don’t freeze. If they’re going away for a few days during the winter months, you don’t want them to shut the heat of entirely.

You also want to make sure your rental property or your building is well-insulated. Inspect the windows and doors. Trim back any tree branches or bushes that might break windows during a winter storm.

Winter Landscaping and Lawn Care

Outdoor pools should be drained or covered and off limits as soon as the fall weather sets in. Start by giving the pool a good cleaning and remove any floating or loose accessories. Flush the filter and lower the water level. You’ll want to make sure you drain the filter, the pump, and any heater you might use as well as the equipment that delivers chlorine to the water. Empty the chemical feeder and apply the cover. Make sure it’s secure and that any gates or fences leading to the pool are locked.

Generally, landlords are responsible for winterizing their rental properties. But, your tenants should know how to help maintain them and how to contact you if there is an emergency such as a frozen pipe or a lack of heat.

We can help you with all of your Lee’s Summit property management needs. Please contact us at Midwest Property Resources for any assistance.

Affordable Upgrades to Increase Your Lee's Summit Rental Value

Fri, 15 Jan 2021 21:02:06 GMT

One of the best ways to increase your ROI and earn more on your Lee’s Summit rental property is with property upgrades and updates. You don’t necessarily have to renovate your entire home; but a few affordable and minor changes can really make an impact in how quickly you attract a good tenant and what kind of rental value you can establish.

Start with Floors and Walls

A fresh coat of paint is rarely expensive, and an easy way to make your rental property look brand new. Keep the walls a neutral color. You might love a bright purple shade of paint, but you never know what your potential tenants will prefer. Consider shades like eggshell and off white. Cover up any small nail holes and pay attention to the trim and baseboards. Painting those will really make the room pop and give it the clean, modern look you’re hoping to get.

If you want to have carpet, consider neutral colors as well. Nothing too light should be used, however, because it can look a lot dirtier a lot faster. Replace any worn or stained carpet with mid-grade carpeting, or consider investing in hard surface flooring.

Some types of vinyl look great and don’t cost a lot. Faux hardwoods are also popular. These are cleaner and easier for tenants to maintain. The floors will also have a longer lifespan, which means you won’t be cleaning and replacing carpet during every tenant turnover.

Kitchens Need a Clean, Modern Look

Cleanliness is important throughout the house, but especially in the kitchen. This is a place where minor upgrades and updates can really make a difference in giving your property a modern and welcoming feel. Install backsplashes and new faucets. Shiny drawer pulls and accessories can make the whole room look new. Lighting is also important.

Bathrooms Must Be Clean and Fresh

You can do a few things to make the bathrooms more attractive to your ideal tenants. Change that brassy Hollywood lighting if it’s still in place, and consider putting in some new fiberglass around the shower and tub. No one wants to take a shower in a stained and worn bathtub. Tile is great for a bathroom upgrade as well. Check the floors and baseboards, and make sure the mirror is large and clear.

Upgrade Your Window Treatments

Those cheap plastic blinds are ugly, and they are easily bent, torn, and destroyed. Consider replacing them if they’re currently on your rental property’s windows. Your current and future tenants will thank you. You’ll also create an attractive space that commands more rent. Replace those awful blinds with horizontal wood blinds or linen shades that easily pull up and down.

While you’re at the windows, make sure the windows are in good condition, lock properly, and insulate your home from drafts and insects.

Pay Attention to Curb Appeal

These are just a few of the upgrades that we’ve found aren’t very expensive and can lead to better rents, better tenants, and a more profitable investment experience. If you’d like some help with these and other recommendations, please contact us at Midwest Property Resources.

Buying Options When Purchasing a Lee's Summit Investment Property

Fri, 08 Jan 2021 21:01:57 GMT

When you want to purchase a Lee’s Summit investment property, one of the first decisions you’ll have to make is how you’re going to pay for it.

There are a variety of ways to buy investment property. If you’re paying in cash, it’s a fairly simple transaction which sets you up for some pretty impressive cash flow right from the start. But, most investors aren’t paying in cash. You’ll likely need a loan from a bank or other financial institution.

There are also 1031 exchanges which can help you buy real estate and defer taxes. If you already own a rental property and you’d rather buy something else, you can sell what you have and buy another property or a collection of properties while avoiding capital gains taxes.

You can also think outside of the box and consider options like hard money lenders and owner financing scenarios. It really depends on your own comfort with risk, your current financial situation, and what your ultimate investment goals are.

Mortgages and Lenders: Finding the Right Investment Property Loan

When you take out a traditional or conventional mortgage from a bank, you’ll need to have at least 20 percent to put down and you’ll also need your financial ducks in a row. Lenders will look at your credit and your assets and liabilities before deciding how much of a risk they’re willing to take by lending money to you.

You’ll also have to be aware of the limit on the number of loans you can take. If you’re hoping to buy 25 rental properties and you want 25 different loans – that’s going to be impossible. Fannie Mae currently caps the number of mortgages you can hold at 10. It’s going to be difficult to find a lender who is willing to provide 10 loans.

Having a relationship in place already with a banker, lender, or even a mortgage broker can work in your favor. Your local bank that you’ve done business with for over a decade, for example, might be willing to accept a smaller down payment or offer better terms.

Hard Money Loans and Seller Financing

When you don’t want to produce a large sum of cash at the beginning of the real estate deal, you might want to consider a hard money loan or seller financing.

With a hard money loan, the amount you borrow is based on the property value instead of your credit or financial history. It’s a short term lending tool that allows you to finance your property with the help of a private lender, and not a financial institution. These loans are usually more expensive and there’s a lot less time for you to repay them

With seller-financing, you can work with the seller to write your own terms. This is a great solution if you can’t qualify for a traditional loan. It also allows you to acquire more properties than a bank would be willing to finance.

Buying Lee’s Summit Investment Homes with a 1031 Exchange

There’s a requirement that you exchange with a like property or properties. This doesn’t mean you have to sell one condo unit and buy another condo unit. The new property you choose simply has to be an income-producing investment just like the one you’re selling. The new property must also have a value that is the same or higher than the original property. If you walk away from the exchange with any profit, you’ll be liable for the tax.

You’ll need to identify a replacement property within 45 days of selling your original property. Then, you have 180 days to close on the new sale. The entire exchange must take place within the 180 days (meaning you don’t have 45 days plus 180 days – the clock does not reset).

We get to know our clients and their investment goals. We work with cash buyers, investors who prefer private lenders, and traditional homebuyers looking for a conventional loan. If you’re looking to increase your investment portfolio or buy rental real estate for the first time, contact us at Midwest Property Resources.

Lee's Summit Landlord Advice about Fair Housing

Fri, 01 Jan 2021 21:00:02 GMT

It’s very easy to make a fair housing mistake, especially if you’re managing your own Lee’s Summit rental property without the experienced help of a professional property manager. Most landlords don’t set out to intentionally discriminate against people, but you can violate a part of the Fair Housing Act without even realizing it. The way you market your property and screen your tenants is really under a microscope, and errors are costly.

We’ve stayed up to date on all the changes in fair housing, and we have a process that’s fair, consistent, and legally compliant when we’re qualifying residents. We can help you with your fair housing concerns.

Fair Housing and Advertising a Lee’s Summit Rental Home

When you’re marketing your rental home, you can include details in your listing that discuss the home’s size, what the rent will be per month, when the home will be ready for occupancy, and what the property’s benefits are – whether those happen to be great natural light, updated kitchen appliances, or a fenced backyard.

You cannot say it would be “great for single professionals.” You cannot say it’s close to churches. This type of language can be seen as discriminatory against several of the law’s protected classes.

Keep your rental property marketing accessible to everyone who is qualified. Including or excluding certain groups like families or religious minorities can be seen as discriminatory. Keep your advertising focused on what the property is and what it has to offer. Don’t make assumptions about who would want to live there and don’t talk about the types of tenants you would prefer.

Establish and Document Qualifying Rental Criteria

Put together a standard rental criteria or a set of qualifications, and put it in writing. Provide it to any tenant who is interested in filling out an application. Then, make sure you follow your own standards consistently every time you screen a potential tenant.

You have to screen each application the same way, otherwise you could be accused of discrimination. Denying one applicant because of a 580 credit score is not going to hold up in court if the tenant you eventually place has a 560 credit score. Be consistent.

Set up the standards you seek in terms of credit, income, criminal history, and rental references. This will make it easy for you to move through the application process because you’ll know exactly who is approved and who is not just by looking at the data. It’s objective and protects you against any potential claims of discrimination.

Service and Support Animals are not Pets

Lee's Summit Landlord's Responsibility to Tenants

Midwestpr.social@gmail.com (Karen Wyle) — Tue, 22 Dec 2020 18:53:50 GMT

Landlords are generally responsible for providing a safe and habitable home for their tenants. However, the requirements don’t stop there. You also have to respond promptly to general maintenance issues, provide notice before you enter an occupied property, and give your residents advance warning when rent is going up.

We know you want to be the best and most responsive Lee’s Summit landlord that you can be, so keep these things in mind when you’re renting out a property.

Maintenance and Habitability Issues

Most lease agreements and laws use terms like “safe and habitable” when describing what your rental property condition should be. Specifically, this means the property has to be structurally sound. The home has to be clean and free of leaks, mold, and safety issues. Tenants will need to access running water and heat.

Habitability is a critical responsibility. When you rent out a Lee’s Summit property, you are required to keep that home in good working order for the tenant at all times. You need to respond right away to habitability maintenance issues such as plumbing and electrical problems. It’s also important to keep appliances operational.

Provide Notice Before Visiting the Property

Tenants are entitled to their privacy and the quiet enjoyment of their rental home. Owning the property does not give you the right to show up unannounced whenever you feel like it. Tenants will notice if you’re slowly driving past the home every few days. Don’t be a nuisance.

While there’s no legal requirement in Missouri for the amount of notice you have to provide, we recommend at least 24 hours of notice in writing. Send an email or a letter letting the tenants know that you need to get inside for a maintenance check. Hopefully, you have a good relationship with your tenants and you’ll be able to talk about it in advance.

Lease Renewals and Rent Increases

Most tenants expect rent to go up when their lease period expires and they’re preparing to sign a lease renewal. Before you implement that rental increase, check your lease so you know how much notice you’re required to provide your tenant. Most leases hold landlords responsible for providing at least 30 or 60 days of notice before the rental increase goes into effect.

Don’t increase the rent just for the sake of increasing it. Review the market rental rates before you provide notice to your tenants so you can justify the increase if they push back.

Following Landlord-Tenant Laws

Professional Lee’s Summit property management can help you stay accountable for all your responsibilities and requirements. If you’d like some help with this, we have a lot of resources and experience that may help. Contact us at Midwest Property Resources.

Top Maintenance Tips to Increase Your Profit on your Lee’s Summit Investment Property

Fri, 18 Dec 2020 23:29:59 GMT

Every rental property owner wants to know how to reduce what they pay in maintenance and repairs. We have some tips today that can help you keep your costs and expenses down.

The two main service requests that we receive are for plumbing related issues and HVAC service.

Let’s take a look at a couple of things you can do to put yourself in a more profitable situation.

Air Filters and HVAC Maintenance

On the HVAC service calls we receive, the main thing that we always want to check is the air filter.

We highly recommend that your lease agreement states clearly that the tenant is responsible for air filter changes, and that any costs associated with the air filter not being changed will be the tenant’s responsibility.

Suggest to the tenants that they put a date on those filters with a sharpie marker when they’re changed. That will document the preventative maintenance the tenant is managing on the system.

Another thing you can do as a landlord to facilitate this and to ease the potential pain of your tenants is to provide four or five filters that have the appropriate dates on them. Send the tenants an automated email reminder so they know to change the filters. This helps you and it helps them. It also protects your system and extends its lifespan.

At Midwest Property Resources, we actually have a filter program that delivers filters to the tenant’s door every 60 days. Those filters are dated and the tenants know they’re responsible for installing them. We make it super simple for our residents because when the filter shows up they know they have to change it on that day.

Preventative Maintenance for HVAC Systems

Another good way to keep your maintenance costs down is to have your HVAC system serviced and inspected annually. Many owners will even schedule a bi-annual inspection, especially if the climate has dramatic changes. This preventative maintenance tip will help you save money in the long run, and it will also prevent your tenants from losing heat in the winter and air conditioning in the summer. The system will run efficiently, and also the HVAC technician can let you know if and when it needs to be replaced. That reduces expensive surprises.

Paying Attention to Plumbing

Plumbers love landlords and property managers because there always seems to be a plumbing issue.

Tenants should be responsible for any plumbing problems they cause. All plumbing expenses can add up quickly. It seems toilets are the biggest culprit. They can leak, they can stop flushing, and they can run all the time. We have found that finding a great mid-range toilet that has good water pressure and flushes well cuts out a lot of issues that we have. Sometimes that cost associated with installing a better toilet can negate two service calls. Replace your old toilets with something new that has great reviews and is super-efficient.

Move-In Checklists Are Essential

How to Create a Winning Offer to Purchase a Home in the Lee's Summit Real Estate Market

Tue, 15 Dec 2020 20:45:45 GMT

You Can Improve The Odds of Getting The Investment Property You Want | Here's How

If you haven't heard, the US Real Estate Market is heating up or Red Hot in many areas, mostly Suburbs. Maybe you're just getting started shopping, you've probably already noticed how quick homes are going on your favorite home search app. Perhaps you've already written an offer recently and know firsthand just how intense the competition is for acquiring that property. My hope is that after reading this article, you will be better informed and prepared to not only know what to expect but to take actions that will most definitely put you in position to achieve your home purchasing goals in this market.

1. The Money

Every Seller is interested in trading their home for something of value. In most cases, it's Money so we'll start with that. It used to be a good rule of thumb that you needed to be preapproved before shopping for a house. In this market, that is the minimum barrier. With houses selling in as short as days or less, we have to have our financial house in order, prior to even bothering looking. Will you be a cash buyer or a finance buyer? Let’s look at a couple of the pros and cons of both.

Cash is King! If you have the ability to buy a home in cash, it’s definitely the favorite for sellers. It removes a contingency barrier that threatens to derail a transaction. You may have the best credit in the world, but next to cash, there is still a lender appraisal contingency that often can’t be removed with a credit offer. Sellers like the least path of resistance to the closing line. As an investor buyer, you could be confronted with an emotional seller that doesn’t want their home to become a rental. Many financed offer contracts have a requirement to disclose if it’s an owner occupied loan or an investment loan, with cash there often isn't that same need to disclose. Removing this negative emotional piece and allowing sellers to focus on the black and white details of your offer is one less hurdle you have to make it over. Coming up with Cash. There are many different ways to leverage cash for the purchase of a home. Talk with your local banker or financial advisor whether utilizing cash is a good option for you.

Credit purchases are still a viable option. Just be aware others are using cash, and one of those buyers could be your competition. Don't be discouraged, however, if that’s your only option. Choose a solid financial institution with a good reputation, and a loan officer that has proven to show quick and great communication skills. You may need to reach them on weekends or late evenings and you should know up front whether that person will be there when you need them most. More cash down, will demonstrate strength. The more you can afford to put down upfront will help give the seller confidence you can deliver at closing. Place a minimum of 1% down on a security deposit, 2% if you can afford it.

Preapproval or Proof of funds, have your documentation in order and ready to go. Don’t worry about having it written for exactly the amount as in the past; have the amount shown larger than the price range you're shopping homes in, as most likely you will be writing offers over list price. You don't want a letter or proof of funds for less than the amount you are offering.

2. The Expertise

The Real Estate Agent. This isn't the market to use a friend or relative agent, just because they have a license. You want to make sure the agent you choose is actively participating in the micro market you are targeting. The agent should be well versed on current market conditions and knows where it’s going from here. For investment properties, it becomes even more critical that you are working with an agent with all of the above but is also actively participating in the rental market and can bring that skill set for your benefit. At a minimum, your agent should have questioned you for specifics about the property you’re after, setup a home search that is tied to the MLS database and alerts you once a match to your criteria is made. The specialized investment agent will be able to help you identify hidden costs and closely estimate cash flow and expenses for a range of properties. The investment agent is a resource for you to bounce questions and thoughts off that will sharpen your investment game and add to your investment confidence. Finally, the agent should be able to respond quickly to showing requests and get you all the documentations promptly. With both single family homes and multifamily homes moving quickly, your team needs to react quickly in order to evaluate the opportunity and present you with the details so you can decided if it’s a property you want to pursue.

3. The Offer

The offer is the most critical aspect of your strategy to purchase investment property in the Kansas City suburban real estate market. Whether you are buying in Lee's Summit, Raymore, Blue Springs, Greenwood, or Overland Park, KS, having your offer prepared by an investment specialized real estate agent gives you an edge to win your next investment property bid. The quality of your offer is a culmination of the steps you have taken above. At this point, you have your financials ready to present in the strongest format and you've chosen great expertise in an agent, your team is ready to go. The agent will take a snapshot look at the seller and listings agents’ situation and make the necessary inquiry to learn as much about their situation as possible, so the offer can be tailored to be attractive to the seller. It’s not always about being the highest bid, although very helpful. Identifying what is important to the seller ahead of the offer is critical to constructing a sound offer that will be received well. The offer should be clean, filled out in its entirety. It sounds like a simple step, but often in the busy times, steps can be missed. Sometimes it’s tempting to add specific requirements or inclusions to a contract that make it more complex. Remember the Sellers want the least path of resistance to the closing line. It’s best to keep your offer as "clean" and straightforward as possible. Your agent should also have a conversation with the listing agent to communicate your offer verbally when appropriate, let them know where a buyer could be flexible, such as the closing date or earnest money deposit. This is also a great time for the agent to communicate anything else you may want the seller to know. For example it could be beneficial for a seller and their listing agent to know you have a very strong credit score, have bought multiple properties and doesn't scare easy, etc. Finally the agent should deliver the offer in a timely manner and in a format the listing agent prefers.

4. Steps Forward

The 2020 Real Estate Market in Lee's Summit and other surrounding suburbs has proven to be competitive. See here what to expect in the 2021 KC Suburb Real Estate Mark et . There isn't any one thing for every transaction that will guarantee your offer will win. By positioning yourself with these tips and aligning yourself with a skilled team to navigate this intense real estate market, you place yourself in a winning position and dramatically increase the odds of obtaining the investment property you are seeking in a Kansas City Suburb. It can be easy to get discouraged, however with the right team, determination, and focus on your why for real estate investing, you will realize great success in today's real estate market.

Lee’s Summit Property Manager’s Guide to Tenants Breaking Their Lease Agreement Early

Fri, 11 Dec 2020 21:04:24 GMT

What happens if your tenant needs to terminate their lease early?

It’s not an ideal situation, but things happen. It’s possible your tenant has found a new job out of state, or maybe they’re purchasing their own home and they’re ready to give up renting. Or, maybe something personally devastating has happened and their world has just been turned upside down.

Things can vary state to state when it comes to breaking lease agreements, but here in Missouri, everything is pretty straightforward from a legal standpoint. Today, we’re talking about the steps you’ll need to take and the responsibilities that remain with your tenant when they leave their rental home before the end of the lease term.

Missouri Law and Breaking a Lease

In Missouri, the tenant is legally obligated to fulfill that lease for the entire term of the agreement. So, if they decide to terminate early, they are required to pay rent until another qualified tenant is located and put in place to take over their lease.

Tenants cannot sublease their own home with the lease that we have in place.

Steps to Re-Rent the Property

What does this look like when you know your tenant is leaving? Here’s our process, which works pretty well and allows everyone to participate in minimizing what the tenant will have to pay upon leaving.

First, we will find a move out date for that tenant. You’ll need to know when your property will be vacant in order to market an available date.

Then, we’ll begin marketing the property to fill the home with another qualified tenant.

During the time that we’re trying to find a new tenant, the existing tenant is responsible for any mowing, utility payments, and anything involved in keeping the property well-maintained. The tenant is also required to pay rent until a new resident is in place.

Finding a New Tenant: Costs

The most important thing to remember is that during an early lease termination, the burden is on the tenant, and we have a process in place to make that transition smooth and to keep your property performing. If you have any questions about this or any of our Lee’s Summit property management services , please contact us at Midwest Property Resources.

Handling the Ongoing Pandemic as a Lee's Summit Landlord

Thu, 03 Dec 2020 19:57:03 GMT

The COVID pandemic is proving to be an active and ongoing crisis that requires some creativity and flexibility when you’re renting out a Lee’s Summit home. You may be struggling to collect rent from your tenants or working overtime just to meet your own financial obligations.

What we’ve learned from this strange year is that property management systems are essential in dealing with unexpected emergencies. When you’re able to communicate openly, fall back on reliable and effective processes, and transition quickly thanks to your technology and your experience, it’s a lot easier to keep your head above water.

Today, we’re talking about what to expect from the coming months and how to prepare for things to get better or worse.

Tenant Eviction Moratoriums are Still in Place

The federal eviction moratorium that’s currently in place comes at the direction of the Centers for Disease Control (CDC) because mass evictions can quickly turn into a public health catastrophe. For landlords, this means that you cannot evict a tenant who is experiencing a financial setback due to the pandemic. We expect this moratorium will likely continue through the end of the year.

This does not mean your tenants are forgiven all the rent that they owe you. To be protected by this moratorium, your tenants will have to disclose that they’re unable to pay rent due to the pandemic, and they’ll have to document their job loss, reduced hours, or limited salary.

We have been able to successfully work with our tenants to limit the impact on our rental revenues. If you are finding that you cannot get rent paid by your tenants, we recommend that you work with them as much as you can. Find out what they can pay and try to set up some type of payment arrangement or plan. Be prepared to make concessions. If they can’t pay the rent this month because they have no money, asking them to pay everything next month probably won’t work. Get what you can from your residents, and don’t forget to be flexible and empathetic. These are not normal times.

Maintaining Rental Homes During COVID

Maintenance has been a bit of a challenge with a highly contagious virus taking hold of the country. This does not mean you should neglect maintenance issues. Encourage your tenants to continue reporting repair issues. You don’t want to be left with a long list of deferred maintenance issues.

There are smart ways to manage the repair process when you have to send a vendor to the property. Make sure you’re working with vendors who take safety precautions seriously. They should wear masks and gloves and be prepared to disinfect everything they touch while making a repair.

Keeping People and Properties Safe

We know this is an especially difficult and anxious time for Lee’s Summit rental property owners . If you’d like some help navigating through this pandemic and its after-effects, contact us at Midwest Property Resources.

In the Wake of 2020 Should I Buy Real Estate in the Kansas City Suburbs

Fri, 13 Nov 2020 21:23:51 GMT

Is now a good time to buy?

In the Wake of 2020 Should I Buy Real Estate in Kansas City Suburbs?

If you came seeking a quick answer you’re in luck, I've prepared one below. If you want to make sure your bases are covered and a dose of why, how, and where, then please, read on.

Here’s your, quick, stripped down answer: Yes, but buy Smart.

2021 Housing Outlook Trends in suburbs like Overland Park, Lee’s Summit, Raymore, Blue Springs, Independence and other similar areas.

The Great Housing Squeeze is Under Way – How did we get here?

In short, the size of two generations the Baby Boomers and the Millennials combined with the financial crisis of the last decade have created the greatest housing shortages in American History. During the financial crisis, many builders and contractors either went under or were hurt badly. As the economy began to pick up, the housing labor force had been decimated across the country. Many had moved on to find other lines of work and those that still remained were reluctant to take on large scale speculative building. This exacerbated the housing supply. Millennials were beginning to gain footing as the market conditions improved and started moving out of their parent homes, or other shared homes to start homes of their own. The cost of smaller homes being the first to rise in price contributed to the problem. Baby Boomers looking to down size were not moving due to the price proposition of their larger house, and perhaps not being quite ready or healed enough from the crisis. Many simply have chosen to age in place. The pressures from this trend are expected to continue to be felt for the next 10-12 years.

The Big Migration from Cities to Suburbs Begins in 2020

Corona Virus, along with strict city restrictions and sky rocketing cost of living, are all reasons people have chosen to pull the lever for the suburbs. When the nationwide lockdowns went into place, people became very acquainted with their living situation. Those that felt they could use a little more elbow room or thought their elected officials had over stepped personal liberty started buying in areas where the conditions are more accommodating to their needs. Those areas are largely suburbs with low crime rates, good schools, and surrounding amenities. Distance to work, for many, has become less of an issue due to flexible work from home options brought on by the pandemic. This trend is expected to continue as employers reevaluate needs for commercial space, cost moving forward and modify work from home policies into more of the norm. We could see mini surges in the migration if we have repeat lockdowns or restrictions reenacted.

The evolution of the dollar and how that impacts Rental Home Values

Regardless of the administration that holds the office, we know, THEY ALL ARE LIKELY TO PRINT MONEY! You’ll remember from grade school what happens to REAL assets or REAL PROPERTY when the value of the dollar declines. That’s right, the PRICE GOES UP! What we will experience is fixed mortgage payments but rising cost of living or higher rents due the increase in the cost of Housing. Real Estate has always been a good long term safeguard and hedge against inflation. With the rate at which the spread is predicted to continue, we can capture the spread and leverage our fixed purchase cost to the rising cash flows. Take a look at the graph (Federal Reserve bank of St Louis)

https://fred.stlouisfed.org/series/FYGFD

Suburban Rental Markets that Will Continue to Perform

My Recommendation is to buy in solid, growing suburbs with good infrastructure, good schools, established social and religious organizations. Choose a Realtor that is familiar with investment property in the market you are interested in, to work with.

Here's a list of Suburbs in the Kansas City Rental Market that are showing strong growth potential.

Lee's Summit, MO

Overland Park, KS

Blue Springs, MO

Raymore, MO

Independence, MO

Greenwood, MO

Not every home in these market makes it a good or great investment choice for you. Make sure the numbers work, and your projections are realistic.

There’s a lot going on in the wake of 2020. We want to protect our assets against inflation and leverage the pressures on housing to grow our portfolios. It’s a fantastic time to start or grow your wealth with Real Estate.

I’d like to know what you think! If you have comments about this article or questions about investing in the KC Suburb Area, I’d love to hear from you.

How to Track Expenses for your Rental

Trisha@MoveWithMPR.com (Trisha Goodale) — Mon, 19 Oct 2020 18:49:05 GMT

Every cent counts...

In the real estate world, there are a million different ways to do every task. Keeping track of expenses for your rentals properties is the most important, in my opinion. You can spend all of your time, energy and resources into finding the best tenant, repairs, etc, but if you don't keep track of your expenses and manage your books, you are fighting a losing battle. Here are a few ideas to get you going in the right direction:

Spreadsheet--basic, easy, and inexpensive. If you have 1 property, this may work well for you to get your footing.
Quickbooks-- This option works well and your accountant will love you. You can setup each property as a "Class" and be able to track every cent. I also like this option because your bank account is involved and it makes reconciling statements easy peazy. The reports you are able to pull are very helpful; you can find out very quickly if your properties are performing like expected.
Separate bank account for your rentals--please, please please do this the minute you buy a rental account. There just isn't another way to do it. There are plenty of banks and credit unions that offer free accounts, so there isn't a reason not to! Treat your rentals like a business, because they ARE!
Separate credit card--again, if may feel redundant, but it makes life so much easier, to have a credit card you only use for rental expenses. You can also sync it with QB or any other software, so you aren't spending your precious time with data entry.
Property Management Software--this may not be feasible due to cost without a large portfolio, but there are a few out there that are inexpensive and make life easier! Plus, being able to collect rent electronically, is the only way to go.

Knowing your expenses and being able to track the profitability of each property at the touch of a button will make you a better investor and will help you grow your wealth faster.

Happy Investing!

6 Reasons No One Wants Your Rental

Trisha@MoveWithMPR.com (Trisha Goodale) — Tue, 29 Sep 2020 14:54:46 GMT

A quick look at what prospective tenants are thinking

Is your rental home sitting on the market longer than expected? Are you getting showings and tons of inquiries but no applications? Here are 6 Reasons No One Wants your Rental.

1. Price-In our local market, if your rental sits for more than 14 days, your price is probably too high. Keep in mind, it is better to rent it quickly for a little less money, than to have it sit for another 30 days trying to get top dollar. Vacancy costs absolutely kill your ROI.

2. Smells--pet, cigarettes, etc. If your house smells, it is going to cost you. People can be sensitive to smell and this is the biggest turn off for tenants the minute they walk into a home. Spend a little and replace the carpeting or have an enzyme treatment done to rid the house of unpleasant odors.

3. Mismatched or worn out paint, flooring, etc--Self explanatory, right? It is amazing what a little paint can do. We highly recommend using one color throughout the home; this makes touch-ups easy. Moving over to flooring, we recommend a hard surface in kitchen and bath areas and carpeting for living spaces. Unless, of course, there are hardwoods! Every prospective tenant loves hardwood floors!

4. Location-busy streets, intersections can drag rent down and take longer for a property to rent. Obviously, you can't change the location, but a lower price can help reduce the vacancy time and installing a privacy fence can help as well.

5. Poor photography/marketing--we live in the digital age; there is ZERO excuse for poor photos. You can hire a professional photographer for $150 or you can wipe off your camera lense, open up the blinds and take great photos with your own smart phone. Homes that seem dark and drab in photos will definitely sit longer on the market.

6. Curb appeal--does the home look well cared for? Tenants want to be proud of their home. Tidy up the landscaping, mow weekly and show your prospective tenants that you love your property!

Following these tips will help you rent your properties quickly!

Good investing!

Should You Buy or Rent a Lee’s Summit Investment Property?

Mon, 11 Nov 2019 19:48:47 GMT

Should you buy or rent?

That question comes up quite a bit for people, especially now, as prices for properties in the local market climb higher. However, rents are pushing up as well. So, there are a few fundamental issues to look at when you’re making this decision. Everyone has a different situation, so don’t compare yourself to someone else when you’re analyzing whether you should buy or rent.

Lee’s Summit Investment Property

You might want to look at the things that keep you based in this particular area. If you have a job that will require you to move around a lot, renting Lee’s Summit property is probably more appealing. You could find yourself living in a different market than the one you’re currently living in, and you’d have to decide what to do with your home if you owned it. Renting provides flexibility and a little more freedom.

Property Management Lee’s Summit: Costs

You also need to consider all the costs of property ownership. When you own a property, you have to pay more than just your mortgage. There are taxes, insurance, maintenance costs, and upkeep that you won’t experience on the rental side.

Lee’s Summit Owners: Benefits of Owning

There are also benefits to owning that you won’t find as a renter. You can experience pride of ownership, and you have the ability to build equity in your property. There are tax advantages and mortgage deductions, and ultimately, you can convert the home you buy into an investment property.

How to Leave a Legacy Through Real Estate Investing in Lee’s Summit

Fri, 16 Aug 2019 21:30:53 GMT

People invest in real estate for a number of reasons, and one of those reasons might be to leave a legacy for your family members and loved ones. When you invest in Lee’s Summit, you can use your rental properties to create wealth and consistent cash flow for current and future generations. As experts in Lee’s Summit property management, we want to explain this to you a little further.

Paying for College and Higher Education

Tuition at colleges and other schools that provide higher education is only climbing higher. One of the ways to pay for those educational expenses is by investing in real estate. You can provide a legacy for the children and grandchildren in your family by using the money you earn from your real estate holdings to cover the tuition and other college expenses. Most people find this preferable to taking out expensive student loans.

Grow and Protect Family Wealth

Even inexperienced investors understand the importance of diversifying what you have. When you invest in real estate, you build wealth that isn’t necessarily going to decrease when the stock market dips. You’ll also be able to take advantage of tax shelters with your Lee’s Summit rental property. Those tax benefits will help you transfer wealth through your family, from generation to generation.

Create a Pension or Retirement Savings

3 Reasons to Invest in Real Estate in Lee’s Summit

Fri, 21 Jun 2019 21:33:23 GMT

If you are thinking about investing in the real estate market in Lee’s Summit, there are three great reasons to go ahead with your plans and purchase an investment home.

Lee’s Summit Properties Provide Great Returns

All real estate investors want to earn great returns from their properties. We’re at a place in the market right now where you can expect to really expand your ROI. You have someone else paying your mortgage as your investment grows over time. This is a favorable time to be collecting rent while your property values grow. Many of our owners are currently earning high returns, and some of them are even performing in the double digits.

Increasing Demand for Rental Property

The second great reason to invest now is that we are seeing an increase in demand. Many businesses are building new buildings, and bringing new jobs to the Lee’s Summit area. This industry and economic activity is driving the increase in demand. When a new rental property hits the market, our phones ring off the hook. We want to invite you to take part in all this activity and demand within the rental market.

Real Estate is Tangible

Lee’s Summit 2019 Rental Market Update for Owners and Investors

Fri, 01 Feb 2019 08:00:00 GMT

Part of what we like to do at Midwest Property Resources is to keep our clients and our local investors informed and educated. We spend a lot of time talking about how to have a good investment experience, what to look for in a tenant, and how to do a better job managing an investment property. We know the local market, and we understand the needs of both tenants and owners.

Today, we’re focused on how the local rental market is performing. We are providing a 2019 rental market update, which we hope you will find useful as you make your plans and set your investment goals for the coming year.

Demand is High for Lee’s Summit Rental Homes

In the current market, we are seeing a strong demand for nice, clean rental homes in Lee’s Summit and the surrounding areas. If you want to really compete in the market and attract the best possible tenants, make sure your property is in good shape. Tenants are looking for well-maintained homes that are comfortable, safe, and functional. When you’re preparing your home for the rental market, make sure that everything works. Don’t show the home if you still have work to do. Tenants aren’t going to want to hear promises that things will be fixed before they move in. They want to see a property that’s ready for immediate occupancy.

Cleanliness is especially important. Have it professionally cleaned, and make sure there’s a great amount of attention to detail. Wipe the dust off the ceiling fans, sweep under the appliances, and make sure the sinks and tubs sparkle. This will make a difference in the quality of tenants you attract.

Tenants are Renewing Leases

Most of our tenants are staying in place and renewing their lease agreements for another year. This is an important part of increasing your ROI because turnovers are expensive, and you don’t want to lose weeks or even months of rent because your tenant is moving out and it’s taking you some time to find a new one. Focus on your tenant relationships so your good tenants elect to stay in place. Be responsive to maintenance issues, provide incentives, and show your appreciation when they pay rent on time and help you care for the property.

Rental Homes with Modern Updates

Lee’s Summit Rental Market Update for 2016/2017

Fri, 08 Jun 2018 07:00:00 GMT

We’re providing a Lee’s Summit rental market update for 2016 and 2017, so you understand what you can expect if you’re thinking about purchasing an investment property or turning your own home into a rental. In short, the local rental market is hot.

Location and Property Condition

If you have the right house in the right neighborhood and in the right price range, you’re going to see great results with your rental property. Currently, the right property is a three-bedroom home with two bathrooms in a nice neighborhood. That’s what the majority of highly qualified tenants are looking for right now.

Competitive Rental Prices

The rental price range for that three bedroom and two bath single family home is between $1,400 and $1,500 right now. We have seen rental prices increase over the last few years, and with a strong tenant pool that enjoys stable employment and economic security, your tenants will be comfortable paying rent in that range. As long as the house is in good shape and located in a great neighborhood, you shouldn’t have to worry about a terribly long vacancy.

Commercial and Residential Growth

How to Prepare a House to Rent Out in Lee’s Summit, MO

Tue, 10 Apr 2018 07:00:00 GMT

Effectively renting a property means you have to get it ready for the rental market. Today, we’re discussing how to get your home ready to lease. You’ll want to evaluate the property for its condition and feature characteristics, and how they apply to market desirability and demand. You also need to take care of maintenance issues.

Maintenance Issues Affect Your Bottom Line

Take care of any repair issues that will affect your expenses and income. Repeated maintenance issues are costly and time consuming, not to mention frustrating and inconvenient to your tenants. When a home continues to have nagging problems, it will cost you money and increase your chances for turnover.

Make a thorough inspection, and create a punch list of items that are not in order or may become an issue in the near future. Completing these things prior to leasing out the home will save you money. You’ll avoid multiple trip charges and you’ll take advantage of efficiency of scale. The contractor will be working on everything at once. You’ll also have a happier tenant who is more likely to stay in the property longer. Repairs are larger and more costly if deferred maintenance creeps up on you and those issues go unaddressed.

Property Condition and Characteristics

Evaluate the number of bedrooms and bathrooms you offer, and how it applies to your current market. Would it be beneficial to your net income to finish off some space in the house or reconfigure your layout to improve your cash flow? Think about how your home’s features and décor relate to what tenants currently want. Perhaps it would rent faster or for more money if you made some minor updates.

How Much Can I Rent my House for in Lee’s Summit, MO?

Tue, 27 Mar 2018 07:00:00 GMT

How much money can you make when you’re renting out a house? There are several things to consider if you are deciding whether to rent out your home. You need to look at the dollars and decide if it makes sense.

How to Rent Your House: Cash Flow

First, estimate your monthly cash flow. You’ll need to know if the rent you receive will cover all of your expenses. When you’re calculating expenses, don’t forget to include maintenance on items that may come up.

How to Make Money with Rental Property: Appreciation

Long term appreciation also needs to be considered. Use a conservative number when you’re calculating appreciation so that any surprises will be pleasant ones, and you’ll have good news. Remember that your tenant will be paying your mortgage every month, so your loan balance will be going down. Even if your appreciation is slower than what some of those calculators show you, equity is still growing over the long term.

How to Rent Your House: Tax Benefits

Finally, don’t forget to have a conversation with your CPA or financial professional. You’ll want to know about all the amazing tax benefits that are available with rental properties.

Everyone’s results will be different. Be sure the numbers and risk work for you. If you’re not sure how to figure out your property’s potential performance, talk to a professional. We would be happy to help you.

Property Management Cost for Lee’s Summit Property Owners

Tue, 13 Mar 2018 07:00:00 GMT

Your property management cost will vary from company to company, but it’s generally pretty consistent across the board. Today, we’re talking about how you can evaluate the value of a property management company.

Rental Property Management Operations

Nearly all companies will charge a leasing fee, a management fee, or a combination of both fees. There will also be additional costs for things that go beyond the general scope of a service package.

Remember that a property management company is a process-oriented business. Processes and procedures are in place to ensure your properties are maximizing revenue and minimizing costs. The quality of these processes is crucial to understanding the value it’s providing. Look at how a company operates and get to know their online reputation. These will tell you more about value than the amount they charge every month.

Property Management Rates and Value

Things that impact the value of your property include tenant damage, vacant properties that aren’t being leased, and rents that are late or uncollected. These costs add up in a hurry. Thousands of dollars of damage are done every year in rental properties across the country. If you have a property management company that understands what it takes to minimize the costs and damages, it will save you money and quickly bring your management costs to zero.

In addition to saving you money, a good management company will maximize rents and do quick marketing to get a quality tenant in place who will pay on time and take good care of your property.

What Do Tenants Look for in a Rental Property in Lee’s Summit, MO

Tue, 27 Feb 2018 08:00:00 GMT

When you’re deciding how much to charge for your property or how quickly you can get it rented, you’ll need a rental amenities checklist. Today, we’re discussing which amenities and finishes tenants look for in a rental property.

What Do Tenants Look for in a Rental Property?

One thing that helps houses rent quickly and for more money is the kitchen. Kitchen updates are very popular with tenants. When it comes to appliances, you want to choose stainless steel. If you can’t install stainless steel appliances, go with black. White appliances are just not an option if you’re hoping to rent to highly qualified tenants and for the highest rental price. You’ll get higher returns when you invest in nice appliances.

Counter tops and backsplashes are also good opportunities to earn more and attract great tenants. You’ll get the most bang for your buck on your remodel when you consider these details.

Flooring: Carpet or Hard Surfaces?

When it comes to flooring for your rental property, there is a lot of buzz right now about hard surfaces. They are easier to maintain, and tenants are attracted to them. You can find engineered wood floors or tiles that look like wood. These are great considerations for your property.

High Speed Internet

Space is not as important as you’d think. Your property does not have to be huge. It just has to be clean, updated, attractive, and functional. Tenants are seeking those things, and they’re willing to pay for them. Another thing they’re willing to pay for is a property that’s ready for high speed internet. Good tenants love Google fiber-ready homes. Get your property ready for that service, because it’s a huge selling point.

Tips on How to Avoid Frozen Pipes in Lee’s Summit, MO

Tue, 13 Feb 2018 08:00:00 GMT

Today we’re talking about everyone’s favorite winter blues: frozen pipes. This year in the Kansas City area, we are seeing crazy temperature fluctuations. The dramatically rising and falling temperatures are causing a lot of frozen pipes, and quite a mess.

How to Avoid Frozen Pipes

Vacant properties are particularly vulnerable to having their pipes freeze when temperatures drop. No one is in the house to identify the risks and prevent your pipes from freezing. So, if you have a property that happens to be vacant during the winter months, make sure you have someone checking in on a regular basis.

How to Tell if Your Pipes Are Frozen

Any pipes that are facing a north wall or an exterior wall are especially at risk. It’s a good idea to leave the water on so there’s a slow drip. You can also open the cabinets under the sinks. Check to make sure your heat is functioning and not set too low. Usually, setting the heat at 50 seems like it should be okay, but 60 degrees is actually a safer bet.

We have experienced crazy temperature swings. One day, it will be minus 25 degrees and then four days later, it’s suddenly 60 degrees. All of this variation is causing headaches we don’t always see in this area.

Consider Winterizing Your Home

Should You Buy a New Lee’s Summit Investment Property with Prices on the Rise?

Tue, 26 Dec 2017 08:00:00 GMT

Many Lee’s Summit owners and investors are wondering whether or not they should buy a new investment property in the current market, with prices on the rise. You may be frustrated or scared about the recent market trends, but they can be managed. Maybe you’re still buying properties and maybe you’re not. If you aren’t, it could be due to the fact that home prices are going up. You may be wondering if it’s still possible to find a good deal. There are a lot of things to look at to make sure your portfolio is intact and on track to meet your goals.

Property Management Lee’s Summit: Making a Decision

Each investor is different. Whether you want to be aggressive or conservative, there’s one thing you don’t want to do: sit on the sidelines and do nothing. You don’t have to be purchasing right now, but there are some things you can do while gathering data to decide when it might be a good time to purchase again.

Lee’s Summit Property Management: Be Prepared

Stockpile cash. If you’re not making purchases right now, you can save up enough money to act quickly when you’re ready to buy again. Then, when you find a deal that does fit your criteria, you’re ready to jump.

Talk to a real estate agent who is experienced with investment properties. Your agent can look at your goals and align their expertise with what you want to accomplish.

Lee’s Summit Rental Property

Should You Have a Pet Policy for Your Lee’s Summit Property?

Tue, 28 Nov 2017 08:00:00 GMT

Lee’s Summit owners will often ask about whether or not they should include pets in their rental portfolio. Some investors are worried about the damage that pets can cause to a rental property. You have the right to decide whether or not you’ll rent to tenants who have pets. However, you should consider a few things before you make that decision.

Property Management Lee’s Summit: Pets and Vacancies

First and foremost, you need to consider an important statistic. We know that between 50 and 52 percent of people are pet owners. So, you can see that if you don’t allow pets, you’re taking out half of the rental prospects. That immediately limits the potential renters you have for your properties, and it will stay on the market longer. You may think you don’t want that half of the tenant pool, but when we dive into the numbers and look at vacancy rates, the costs can add up by not having the property occupied.

Lee’s Summit Rental Property Pet Policy

You have several different ways to mitigate the costs of pets and the risks that come with them. Pets are not a protected class, so you can pick and choose which ones you will allow. Set up some procedures and follow them. First, determine what you will tolerate. Maybe you’re okay with dogs but not cats, or vice versa. Perhaps dogs and cats are fine, but you don’t want snakes. Define your parameters. Put these requirements and restrictions into a pet policy and include that information in your lease agreement. Decide whether you just want to collect a pet deposit or whether you want to charge additional rent every month.

Should You Purchase a Home Warranty for Your Lee’s Summit Property?

Tue, 14 Nov 2017 08:00:00 GMT

New owners who want us to manage their Lee’s Summit rental property often ask about home warranties and whether they should buy one. Today, we’re discussing some of the reasons that warranties might not be a good idea when you’re a landlord.

Property Management Lee’s Summit: Cost of Home Warranties

You’ll need to consider the cost of a warranty on an annual basis. Not only do you have to purchase the warranty and keep it in place, there will also be a deductible every time a contractor is sent out to address an issue.

Maintaining Your Lee’s Summit Investment Property

Even more important than the cost is the time that any repairs may take. You’re stuck with a third party taking care of the repairs at your rental home. That company may not always have your best interests at heart. The process of filing and resolving a claim can be cumbersome. There are often delays in getting the necessary work done. Those delays can lead to tenant frustration. As you know, tenant frustration will turn into tenant turnover. Turnover costs are expensive and will cost you more money in the end.

Home warranties can often make sense when you’re buying a home to live in, but when you purchase an investment property, you have to consider how the cost of that warranty will eat into your profits and what kind of impact it will have on your ability to make timely repairs at your property.

How to Keep the Cost of Tenant Turnover Down for Your Lee’s Summit Property

Tue, 31 Oct 2017 07:00:00 GMT

The costs associated with tenant turnover are often overlooked when you’re figuring out the profitability of a rental home. However, you never want to overlook these costs because they do add up. Today, we’re sharing three ways to keeping turnover costs down.

Property Management Lee’s Summit: Professionalism

The best way to avoid tenant turnover and the costs that come with it is to keep your good tenants happy. You can keep tenants happy by offering a professional management plan. When you have systems and procedures in place that are followed consistently, your tenant knows what to expect and feels comfortable that the lease will be enforced.

Maintaining a Lee’s Summit Rental Property

Ignoring maintenance needs or responding slowly to repair requests is a good way to get tenants to leave. You are required to keep your property safe and habitable for your renters. Be available for their emergency maintenance calls, and have a plan for preventative maintenance. To keep your best tenants you need to ensure everything in the house is safe and functional. Establish relationships with reliable vendors so you can be sure you’ll have work done professionally and affordably.

Renting Lees’ Summit Property: Online Access

Kansas City Real Estate Market Stats & Analysis Jan 2017

Tue, 14 Feb 2017 08:00:00 GMT

There have been a lot of changes in the Kansas City Real Estate Market in the past 12 months. If you have thought about Buying or Selling a Home in the Kansas City Area you will be interested in this report. Today, Chris Goodale reviews the statistics and outlines how they impact you!

Jan 2017 Kansas City Real Estate Market Analysis

Whew! There’s a lot to cover here or should I say there’s not! Well it depends on where you stand in the market. If you’re a buyer, the scene may look a little bleak, but read on, there’s a glimmer of hope on the horizon. If you’ve been contemplating selling, you may have heard there hasn’t been a better time to sell in the Kansas City Real Estate Market in nearly a decade! But is it? Read on to determine if selling is in your best interest. I’ll cover the stats released in the latest market reports, what they mean to you as either a buyer, seller or both.

I’ll cover three examples of market participants. One that currently doesn’t own a home and looking to buy (Leasing or First Time Home Buyer), Move Up that will sell a home and purchase another, and someone selling but not purchasing (moving to assisted living or to a lease).

Buyers That Currently Don’t Own A Home

If you’re currently leasing or shopping for your first home in the Kansas City Real Estate Market, you’ve probably heard now is a good time to buy. Rates have ticked up a bit and are expected to continue slowly rising but are still good. If you have started looking, you already know finding the perfect house and perhaps one that fits your budget is where things get sticky in a hurry. That’s because the inventory levels are at unprecedented levels! The selection is not there. If there is a bright side to this, and that is the glimmer of hope you can hang onto if you choose, is that as we are approaching peak market season in the Spring, more houses will hit the market as Sellers gear up to make moves. With such a tight supply however, expect these houses to go for near market prices to potentially over bidding prices as buyers try to beat each other out at the opportunity for home ownership. Be cautious that you set a budget up front and stick to what you can afford. Many homeowners have made regretful purchases and later hated the feeling of being house poor. Set priorities for your lifestyle and decide what you want to spend towards housing, necessities, travel and leisure and choose to take fiscal control of your life so that you can make a decision stress free. Often overlooked when comparing the alternatives of owning vs leasing is the cost of maintenance, insurance, taxes and big ticket house repairs or mechanical failures. A one and five year plan with a budget can help you weed out the noise and allow you to choose a solution that works best for you.

Move Up Buyers That Will Also Be Selling

Move up buyers have been struggling with the fear of not having a home if they place their current home on the market and it sells before they can find a replacement. If you’re building or buying a new construction home in the Kansas City Real Estate Market this might not be a problem. If you’ve found what you like and it fits your budget; be sure you have secured the new home before listing the old or you could be forced to purchase something that isn’t on your “A” list or risk paying more than you would like. Inventory continues to be a problem for all homes, but existing homes is far more challenging. Sellers that plan to move up to another existing home need to plan and prepare well for the transition. This includes meeting with a Kansas City Real Estate Agent and mapping out a game plan. Get your home ready to sell. Take care of overlooked maintenance issues, paint touch ups, clutter, and any updates your agent may recommend to help the marketability of your home prior to looking for the new one. Have your budget and financial plan in place so you know exactly what homes will meet your criteria and begin your search. From here each person’s scenario is different. You may have the financial capacity to purchase a new home without selling yours first, if so great! This can ease your stress. For most, this isn’t the case, so talk with your agent about your options. One is make a contingent offer based on yours being under contract. There is a risk that sellers won’t accept a contingent offer, however if your home has been prepared for the market and can literally go on at a moment’s notice you are steps ahead of your competition. Your agent can include a cover letter covering the desirability and market readiness of your home as well as your positive financial ability; it can give sellers the confidence to seal the deal. The flip side of selling your home without a place to go is simply that, you could have nowhere to go, or you make a “have to” purchase you don’t really like just to make your new situation work. Interview agents and choose wisely, you need confidence that your agent has a plan that works for your situation.

Selling Your Home & No Plans to Buy

You could be moving to Rental Homes in the Kansas City Area, Assisted Living, or Other non-purchase housing arrangement. Welcome to Easy Street. Your biggest concern is probably going to be what to do with all your stuff if you’re moving to a smaller place. This IS a Sellers Market, and since you wont be buying, it can be a win win. While planning for your new space, selling or donating items you no longer need will be your first priority. Consult with a Kansas City Real Estate Agent about your homes market readiness and find out how to maximize its value. Be ready for the move when you list, because the market desperately needs your home! Buyers are poised and waiting to pay top market dollar for it. Make sure its priced right from the beginning; too high and stagnation and lack of interest can occur, too low and you leave money on the table. The best experience can come from an experienced agent that is an expert in a few niche communities rather than metro wide.

Where Does the Market Go From Here?

Property Management Test Questions that Lee’s Summit Homeowners Should Ask

Wed, 08 Feb 2017 08:00:00 GMT

There are some essential questions you should ask your potential manager when you’re looking for Lee’s Summit property management. Today, we’re discussing some of those so you can be better prepared to interview management companies.

Marketing Program

Find out if the property management company has a marketing program and if so, what it entails. At Midwest Property Resources, we include marketing on all the major home sites and a walk-through video of the property.

Property Protection

You’ll also need to know what policies and procedures are in place to protect your Lee’s Summit investment property. Ask if they document the condition of the property with photos and video before a tenant moves in and after a tenant moves out. You need to know what they’re doing to keep your investment protected.

Eviction Process

Ask if the property management company has ever had to evict a tenant. This is important because evictions don’t happen that often if the work is being done up front. However, a Lee’s Summit landlord does want to be sure that their property management company has experience with evictions. Going before a judge to get an eviction processes properly is a big part of professional management.

Tenant Management

The tenant screening process is also important – ask if they use a credit bureau and how they make sure you’re getting the perfect tenant for your Lee’s Summit rental property. Find out what they do to retain great tenants. You want tenants who are taking good care of your property to stay longer. We like to keep our tenants happy and paying their rent on time while they take care of your investment.

Communication Methods

It’s important to know how your property manager will communicate with you. It might be text, phone calls, or some other way. Make sure the communication system is effective and matches how you want to be communicated with.

Rates and Fees

Why a Lee’s Summit Property Manager Makes You More Money Than Self-Management

Thu, 06 Oct 2016 07:00:00 GMT

Using a professional property management company can make you more money on your investment than you would earn managing it yourself, and today we’re telling you why.

Acquiring a Good Rental Property

If you haven’t already acquired a property, you should speak with someone in the industry who has good, detailed information on the local market and the types of properties you’re interested in buying. All of your success and profit as an investor starts with having the right property.

Thorough Tenant Screening

Tenant placement is an important part of successfully managing a rental property. It’s critical to find the right tenants because it can make a difference in determining whether your investment is a success or an absolute disaster. With a property management company doing your screening, you know it will be thorough and will result in a highly qualified tenant. Your property manager will narrow down the applicants and make sure you’re getting the best resident for your home.

Marketing and Advertising

Property managers give your property access to a lot of qualified tenants through all the necessary marketing and advertising channels. Your manager will do a good job of setting a competitive price, bringing you the highest rate of return possible on what the market will allow. That attracts better tenants and maximizes your profit and revenue.

Treating Your Property Like a Business

We manage your rental properties like a business. That’s how they should be treated because your investment is a business. You’ll be more successful when you’re not making emotional decisions or spending your time managing tenant conflicts.

Reducing Vacancy and Turnover Costs

Common Fears of First Time Investors – Property Management Lee’s Summit

Tue, 06 Sep 2016 07:00:00 GMT

Investing in Lee’s Summit is an excellent idea, and the area has a lot of opportunities for people who want to buy a property and rent it out. However, there are always common fears that many first time investors face before making the decision to invest.

Investor Fear: Property Damage

You may be concerned that your property will get trashed or damaged by the tenants who are in place. This risk can be mitigated with proper procedures that include a thorough screening of tenants. We always make sure we choose renters who have a good record of taking care of property.

Investor Fear: Taking on Debt

Getting a loan for a mortgage and going into debt can be scary. However, if you by a good property at the right price and rent it out for a great return, you should have enough financial leeway that you won’t have to pay for anything out of pocket, even if your home is vacant.

Investor Fear: Legal Complexities

There are always going to be legal issues when you make a large investment like this. That’s why we work with a team of great lawyers in Lee’s Summit to keep you on track and help you.

Investor Fear: Losing Money

Many investors wonder if their property will effectively create cash flow, or if they will lose money in the long run. This is where property management in Lee’s Summit can help you. We run numbers and ensure returns are where you want them to be. Before you invest, we talk about whether real estate is the right investment for you and meets your risk tolerance.

5 Dangers of Self-Management – Lee’s Summit Property Manager Explains

Tue, 30 Aug 2016 07:00:00 GMT

Professional property management in Lee’s Summit, Missouri can protect your rental home and help you achieve a higher cash flow and return on your investment. It also prevents expensive and time-consuming mistakes. Today, we’re discussing 5 dangers that you face as a self-managing landlord.

Placing the Wrong Tenant

Putting a bad tenant in your property can cause a lot of unneeded headaches and frustration. When you use a third party such as an experienced property manager, you have the benefit of receiving an objective analysis of screening results. This will save you time and it will also ensure you’re choosing a resident who will pay rent on time every month, take care of your property, and follow the terms of your lease.

Incorrect Pricing and Inconsistent Rent Collection

A lot of self-managing landlords underprice their homes or overprice their homes. When you price your property too high, it’s going to remain vacant for longer, and you won’t collect any rent. When you price it too low, you’re losing money on a monthly basis. We also see a lot of landlords who don’t effectively raise their rent when it’s appropriate. Another major mistake is not collecting past due rent. You need to have a system in place to ensure you’re paid on time.

Emotional Involvement

Emotional involvement is a problem for many self-managers. It’s hard to be objective when a tenant calls and says that rent is going to be late because their father just died. It can be difficult to follow through and collect that rent when you know a tenant is going through a tough time. Property managers can help you avoid that.

Lack of Knowledge and Experience

If you don’t deal with problems because you’re not sure what to do, you’re putting yourself and your tenant in a predicament. You have to know what to expect and how to effectively deal with problems so your tenant feels like you are helping them. A third party can manage the tenants and their issues on your behalf.

Not Understanding the Laws

Traditional Investing is Complicated, Invest in Lee’s Summit Real Estate Instead

Mon, 22 Aug 2016 07:00:00 GMT

Many people are still feeling the effects from the blowback that occurred after the last stock market fallout. Everyday investors lost a lifetime of savings they had built up for retirement, and some of them still haven’t been able to recover. We are advised by brokers who make money regardless of whether they recommend good investments or bad. At Midwest Property Resources, we suggest that you consider Lee’s Summit real estate investing instead of or in addition to what you’re already doing.

Lee’s Summit Properties: Tangible Assets

A piece of real estate is a tangible asset. Unlike a stock, you can feel and touch it. The asset is also protected against the risk of immediately being worth nothing, which is always a danger when you invest in a stock. Your real estate investment has insurance, which protects you against devastating losses, terrible storms, and unexpected catastrophes.

Real Estate Investment Gives You Control

You have more control over the outcome of your real estate investment. You can decide who manages it, who takes care of it, and what happens to it. When you invest in a property, you can live in it, sell it, or hold onto it and rent it out.

Earning Value in Your Investment

6 Important Features of a Good Rental Property in Lee’s Summit

Tue, 14 Jun 2016 07:00:00 GMT

When you’re looking for a rental property in Lee’s Summit, you want to buy something that will attract good tenants and earn you a healthy return on your investment. There are six important features that make rental properties desirable in this area. When you’re buying or preparing to put your own home on the market, try to hit as many of these things as possible.

Look for a Great Neighborhood in an HOA

Make sure your home is located in a fantastic neighborhood. We really cannot overstate the importance of the neighborhood. One of the things that really makes your property attractive to tenants is an HOA. If your home is located in an HOA, you can rely on that association to protect your investment and keep the subdivision looking good and performing well. That can protect the value of your asset over time.

Choose a Home with Integrity

The integrity of the home needs to be good in order for it to be a successful rental. Look for something with low costs and an easy to maintain approach. This will help you efficiently manage the home and keep the tenants happy.

Property Size Matters

Look for something that has enough space for tenants to feel like they are in a comfortable home. Most tenants look for a three-bedroom and two-bathroom rental property.

Keep the Property Clean and Modern

A good rental property is clean and well modernized. You don’t want to try and rent a home that has dated appliances or old carpets. Make sure you keep the property up so it looks good to tenants.

Garages for Tenants

Garages are nice and something that tenants will really respond to when they are looking for desirable rental homes.

Maintain Curb Appeal

When tenants pull up to the property, they want it to look inviting. Give them a reason to go inside. You can do this by providing a property with great curb appeal from the front.

How to Reduce my Home Vacancy Rate – Lee’s Summit Landlord Education

Wed, 01 Jun 2016 07:00:00 GMT

Vacancy can be a huge expense for landlords, and keeping your rental property occupied will help you be more successful. Today, we’re sharing a few tips for how you can reduce your vacancy rate and keep your cash flow consistent.

Create a Property Video

First, make sure you have a clean and well-maintained property. Then, you want to market that property thoroughly by providing a video tour that serves as a virtual walk through. Detail each room so people who are online can take a look at what you have to offer. This saves you time because you won’t have to show the property to everyone, and it saves the prospective tenants time because they can rule the property in or out just by looking at the video.

Write Appealing Listings

Make sure you have plenty of pictures and all the details and pertinent information associated with your property when you create an ad or a listing. People make quick decisions, so when they come across your property, they need that information right at their fingertips or they may move on to the next home.

Advertise with Signs and Online

Place yard signs at the property so you can attract any drive by traffic. Provide instant information so they can jump online and find details or see your virtual tour. You want to market this information in many places across the web so it’s seen by people searching for properties. There are several popular sites that people use. Do a search on the Internet and pretend you are searching for a home yourself. That will give you a list of the best websites and the most common places.

Follow Up and Be Available

How to Find Good Tenants in Lee’s Summit – Property Management Advice

Tue, 24 May 2016 07:00:00 GMT

Finding good tenants for your residential rental property starts with a quality home. There are several things you can do to make sure you’re getting a good tenant who will pay rent on time, take care of your property, and fulfill the terms of your lease.

Keep the Property Clean

You need to make sure your home is clean, tidy, and well-maintained. We recommend that you hire a professional house cleaner so that the entire home is in tip top shape before a new tenant moves in. Not only does this help you attract good tenants, it also sets the expectation that it’s how you need to get the house back at the time of move out.

Hire a Good Property Manager

We recommend you hire a professional property manager to help you find good tenants. Look for a property manager who has access to quality referrals. Work with a local company that has a lot of connections in the real estate community. This will plug you into a network of Realtors who can send you referrals for good tenants.

Screening Tenants Thoroughly

We do extensive background checks on all prospective tenants. It’s important to go beyond the basic criminal and credit checks. You should also check eviction records and do a complete background check. We call all past landlords for references to be sure they would be willing to rent to the tenants again. Verify the tenant’s current employment and conduct an income analysis to be sure the tenants will be able to make rent payments on time every month.

Take Your Time

When you have your property listed for rent, you want to be sure that you can select from a large pool of tenants. This helps you pick the best possible tenant for your property. Choosing the first tenant to show interest is not always the best policy. Wait and get a good fit.

Market the Property Strategically

5 Reasons to Hire Midwest Property Resources

Thu, 19 May 2016 07:00:00 GMT

At Midwest Property Resources, we are a full service property management company serving the communities in Eastern Jackson and Northern Cass counties in Missouri. Today, we’re sharing five reasons that you should hire us to manage your residential rental home.

Local Expertise

We are the local experts and we know these communities inside and out. This is due to our strategic practice of limiting the areas we serve to those that are within a 20 minute or 20-mile radius of our office here in Lee’s Summit. It allows us a specific focus and market depth along with efficiencies that just cannot be obtained with a metro-wide business model.

Commitment to Integrity

When I was growing up, my parents taught me that at the end of day, all we have is our word. When our words and actions don’t add up, then confidence and trust is lost. Integrity is very important to us, and we take it seriously.

Outstanding Communication

Communication is also an important part of our business approach. Often, we can use our experience to look down the line and identify potential issues that can become crises. We engage in the art of communication to avoid these crises and celebrate success. Communication helps us run things smoothly so that everything flows well for our owners and tenants.

Real Estate Investment Experience

When you hire us, you gain all of our combined experience, which we put to work for you. You’ll avoid the crazy heartaches and headaches and horror stories that you hear associated with real estate investing. Instead of dealing with problems, you’ll reap the rewards and successes that come with real estate investment.

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