Have Investable Cash, Need Prime Investments?

Have Investable Cash, Need Prime Investments?

If you are like many individuals in Arizona, you have seen a steady recovery in your investment portfolio since the market meltdown in 2007 and 2008. You have also seen the importance of being invested in the right market and assets as they have recovered from that difficult time. Our team at KRK Realty has seen our clients’ portfolios show significant gains as the market recovers.

You may also be like many other investors who have accumulated cash in your retirement and savings accounts because of your concern over another such financial crisis. We think it is time to reassess that attitude.

The Importance of a Long-Term Perspective with Short-Term Action

The simple fact of investing is that cycles are a reality of our economic system. These are to be expected rather than feared, and savvy investors understand the importance of developing portfolios that survive and even thrive in both up and down markets.

My experience in Arizona real estate spans more than two decades. As the founder of KRK Realty & Management, I have developed both a portfolio of residential investment properties and a superior property management firm to handle my and my investor’s holdings. We have the ability to match your specific investment objectives with the right type of properties, financing and management plan.

We’ve found that taking the hassle out of owning investment property helps our clients look at this asset class with a fresh and positive perspective. Once you understand the many potential advantages of real estate finance and investments, you’ll appreciate why we have such a loyal and satisfied client base.

The Win-Win-Win Investment

Many people think they are lucky to find an investment that simply provides a good cash-on-cash return. That is one good win. Others find a way to add appreciation to their investment, adding a second win. However, I love to show new clients how real estate finance and investments consistently provide appreciation and cash flow, plus the added win of tax-advantaged opportunities.

While all investments have some level of risk, the smart investor turns those risks to their favor. If you give me, Kevin Kirkwood, a call, I will show you properties in our portfolio that can quickly and easily put you on the road to smart rental property investing. We’ll provide you with attractive options you can review with your financial adviser and add to your diversified portfolio for significant long-term returns.

Get involved in AZ Residential Property Management and make MONEY!

GET RICH: Phoenix Property Management without the Hassle!!

We have found that many qualified real estate investors miss out on the opportunity because of a number of BIG misperceptions and misunderstandings. One of the most frequent concerns that comes up with such individuals is a concern over the time and effort it might take to manage an investment property. This issue is often compounded if someone has one property they are managing on their own and find it a challenging proposition.

Balancing the Effort and Rewards of Residential Property Management:

The important thing to understand is that the many financial rewards of owning investment properties is a separate issue from managing those issues. In fact, many experienced real estate investors learn very early that they prefer to use a professional property manager so they can easily add to their ownership portfolio.

Many individuals who own real estate property are retired or have the type of jobs where they can handle their properties on their own. These investors actually look at their ownership as a form of second job, or even a hobby of sorts. However, most real estate investors realize the cost of property management is a cost of business best handled by professional firms.

The simple fact is that if your job makes the opportunity cost of finding tenants or fixing leaking toilets too expensive, you can avoid these hassles with property management services.

The Value of Experience, Contacts and Volume

Today’s residential property managment company has a number of tools they can use, most of which are not available to the individual property owner. This includes sophisticated software, automated maintenance and inspection, and online payment systems.

Likewise, the experienced property manager will have a full contact list of reliable and cost-efficient tradesmen and repair people to call upon. They often get better prices on services and parts, and know they can get a job done in just one call. This makes for happier tenants and lower long-term expenses. This benefit also extends to the benefits of regular inspections and preventative maintenance, ensuring your costs in these areas are kept to a minimum.

In addition to these issues, the effective property manager will help you keep your occupancy rate at a higher level you may attain on your own. It’s important to realize that just one month of additional rent on a lease can cover most management fees for an entire year.

Let a professional property manager make your real estate investment hassle-free. KRK Realty & Mangement, top property management company in Phoenix is one of these such companies that can help you invest in rental real estate or help you manage your own home investments! 

Dont fall for the common Tax Day mistake by investing in the typical IRA or Roth IRa!

If you are one of the millions of Americans wise enough to regularly add to your retirement account, you understand the importance of planning ahead. However, unless you that process includes real estate, you need to reevaluate your strategy. You may not be tapping into the full power of this relatively UNKNOWN federally-approved way to save on taxes and accumulate wealth. Kevin Kirkwood helps many Arizona residents utilize this opportunity.

Make Your IRA the Landlord in AZ:
Many savvy investors understand the role real estate ownership plays in any well-diversified portfolio. However, only a small number of individuals realize that their retirement accounts, in particular self-directed IRAs, can purchase and own real estate and accumulate tax-deferred earnings.

Of course, it is common to look at real estate as an excellent way to legally minimize current tax liabilities while deferring taxes. However, it it important to know that ownership of many properties is best held in your tax-advantaged retirement account. This is especially the case for situations where your purchase generates significant returns from a property that generates substantial cash flow and profits.

The math here is simple. When you buy a property individually, you normally leverage it with a mortgage and use the interest, depreciation and other expenses to lower  taxable income. You effectively get a discount on the interest you pay a lender because it is deductible, and you save real dollars by having that deduction
.
On the other hand, your IRA doesn’t need this form of tax savings, as it already produces tax-deferred income. If, however, it becomes the banker, that interest normally paid to leverage a property effectively flows back to you, accumulating and compounding without taxes over the years.


Understanding the Relationship:
Looking at the situation another way, it helps to separate your current portfolio from your retirement portfolio. Let’s assume you have $300,000 in liquid funds in your retirement account, earning a blended average of 6 percent. Also, assume you talk with your accountant and they help you set up a self-directed IRA if you don’t already have one. If you put $150,000 in that account, it is effectively ready to serve as a bank and earn the interest you pay on your separate, leveraged real estate investments.

Once you have the account set up, let’s continue our hypothetical situation by having you buy an investment home with that $150,000 cash. Let’s also assume conservatively you will net $900 a month in rents on that house after all expenses, including property management fees and a 90 percent occupancy rate. It’s a simple calculation to show that you earn better than 7 percent on that cash flow, all now tax-deferred. That is before any subsequent long-term appreciation.
When you sell the house and take a profit, that return is also protected from taxes until you start drawing out your funds in retirement. Moreover, those profits also accrue compounded tax-deferred earnings while they sit in your IRA.

Investing in Real Estate is an Increasingly Popular Retirement Strategy
As more Americans accumulate substantial cash in their retirement accounts and interest rates remain low, billions of dollars are flowing into self-directed IRAs for real estate purchases. With the right property management firm, such as KRK Realty, this is a hassle-free way to increase your overall portfolio return while using the tax-deferred aspect of retirement accounts more wisely.


Of course, as with any such decision, be sure to check with your financial adviser to make sure of the current laws and regulations affecting any such decision. Once you do, Kevin Kirkwood will show you how to be a landlord in AZ and help you earn above-market returns.

Don't Deal with difficult Tenants in your Rental Home!

Dealing with difficult tenants

 Now that you have moved in your tenants and completed their inventory of maintenance fixes, the rental honeymoon begins! Or does it?   It depends!

Difficult tenants are a problem for many landlords, so don’t let your next troubling tenant catch you off-guard. Even the best property management companies run into tenant issues. Its important that you do everything you can to avoid the big ones since tehy can leave you on the hook for several months of rent and extensive damage to your home. Here’s how to stop a potentially bad situation from happening as taken from KevinKirkwood, broker and founder of top rated KRK Realty and Management, a Phoenix area property management company:

1.    Establish Rental Rules:

Every tenant will likely be late once or twice in their life on rent, some things happen. How you deal with late payments will set the tone for the remainder of your rental agreement. Having rules that you follow will help keep your relationships mutually respectful. Explain your rules during the showing and the move in – be sure to point out your late fees and payment schedules. There’s a difference between being a push over and being flexible. If your tenant needs to change the rent payment to the 6th  instead of the 5th because of their pay schedule, that’s flexible. If the tenant wants to pay you this month’s rent, next month – that’s unreasonable. Working with a an experienced property manager in the housing market like this Phoenix Property Management Team, is the key to knowing the difference between a onetime error and a long-term record of poor payment.

2.    Know your Landlord Rights:

Evicting a bad tenant is a long, drawn-out process and landlords can be held accountable for not following the correct procedure – if you need to evict a tenant it’s best to consult a professional. While the legal system is very clear and can render a verdict within 2 weeks of the start of eviction the battle will likely require multiple trips to the court and your tenant can ask to delay the hearings – all while continuing to live rent free in your home. Working with a property management company like KRK Realty and Management removes many of these concerns as they are able to evict tenants on your behalf.

3.    Work with a Professional Property Manager:

 In addition to having access to a large pool of qualified renters who will take care of your home; a professional realty management company like KRK Realty will be able to assist you in renting, up keeping your home, and if the worst occurs - evicting your tenant. Property management doesn’t have to be a mystery – the low cost of using a professional service will save you both time and money when you’re stuck dealing with difficult tenants. 

For AZ Landlords: 3 Tips to make for a Successful Move-In Day!

You found the ideal college renters who are willing to pay the rent you want to receive, the tenants are ready to pay, your rental house is ready… But before you hand over your keys to your tenants – its important make sure you’re starting out right. Even move-in-day has paperwork! Here are 3 CRUCIAL tips from a Tempe Property Management Company specializing in college rentals to make it a simple process for both you the landlord and the tenant!

1. Do not allow “Early” Move-in:

First things first: Tenants are often eager to get started on the moving process – who can blame them, it’s easier to move a few boxes at a time than everything at once. However, you must protect yourself and your investment. Be firm, confirm the utilities are in the tenants name and all rental deposit and first month rental checks are cleared before you allow the tenant to live there or even move one item into your home. Tenants may have a very good reason for wanting to move their things, however it places you in a very vulnerable position (prevent legal troubles and expenses!) which is best to be avoid.  KRK Realty & Management never allows tenants to store items on property that is not legally theirs IN ADVANCE in order to protect them, the landlord, from legal troubles down the road.  

2.  Document Everything:

When doing the move-in walk through of your home with your new tenant, it’s important that you document the way the house was when you handed the keys over. From the condition of the walls to the state of your appliances -- pictures, video and other documents are a must for a healthy tenant relationship (this is why we ALWAYS take live videos of our houses for our home investor clients). Encourage your tenant to notate items they’d like documented as well – such as a crack in the wall or a wobbly tile. And be sure to fix these things as soon as move-in is done.  This will give you an opportunity to start the rental relationship on the right track! Read up about KRK Realty’s management services to see how our professional management company handles this complicated process for clients.

3. Establish communication:

Move in day is a great time to revisit how you will communicate. Keeping in mind that phone conversations can be a confusing and also can be a legally troubling way to discuss repairs, rent and moving out. Opt for written communication through mail or email to benefit from timestamps and a history of what was said. Even using social media can be a better option than traditional cell phones. Kevin Kirkwood, of KRK Realty and Management only uses written communications for repairs, rent and other official business – this allows a record of the transactions between the landlord and tenant is partly the reason he has dealt with so few ugly situations or evictions in his almost 20 yrs of managing college housing.

These 3 tips will help you start off on the right foot to cultivate good rental relationship. And remember, using a professional property management company is a great way to protect your home investment while maximizing profits for you. Contact KRK Realty today for free Rental Analysis to see our property management services make sense for you!

Drafting the RIGHT lease… Advice from an AZ Rental Management Company

You’ve listed your home rental, set the rental price and found your hopefully QUALITY tenant! Now, are you ready to turn your largest home investment over to a bunch of strangers who you HOPE work out?   If you’re using a basic rental agreement you found online, probably not. Rental agreements or leases are the backbone of your landlord – tenant relationship, skimping on the details now could cost you. Here’s why seeking professional help from Phoenix rental management companies is a must.  

They Understand Your Legal Responsibilities
Drafting a legal document is a tricky art – a lease is no different. Simply put, a lease is a contract between the tenant and you; within that contract you can include nearly any stipulation you can imagine. Some things like who handles repairs, inspections, late fees for rent and other stipulations are important to set ground rules with tenants. However, including discriminatory or infringing items within the contract can land you in hot water and may void the entire contract. AZ based KRK Realty and Management understands that legal matters are difficult – that’s why we use a well drafted lease that has been reviewed by a lawyer to protect your investments.

They’re Up-to-Date with Current Arizona Landlord Laws
Tenants enjoy a great deal of protection from unfair housing practices. These laws can change rapidly, even overnight. Some tenants may even learn of laws and use them to exploit you, when they do it can take several months and expensive court fees to evict tenants. You don’t have time to keep up with the constantly changing Arizona real estate laws -- that’s just one of several reasons of why having a qualified and educate rental management company is an important part of becoming a landlord.

Their Leases are tailored to Local Arizona Real Estate Laws
Online databases selling rental agreements will not be in compliance with our local laws in Arizona. The only way to obtain a lease that is well suited to your exact property, needs and state laws is to speak to a property manager like  . Even a qualified lawyer’s office may not understand your property and fail to include important areas – such as care of landscaping, pools, fixtures etc.
Signing the right lease is important for you and your tenant. You don’t want to chase away great tenants because of a lease that is too strict; and you don’t want to give free reign to a tenant who fails to care for your property. Rental management companies know how to draft the perfect contract that’s fair for you and your tenants. 
If you are looking for more information about AZ rental agreements or property management advice, please contact KRK Realty & Management here.

Renting your second home got you stressed? 4 tips to be stress-free!

AZ Property Management Tips for a hassle-free Rental

Securing a hassle-free rental contract for your home means you’ll need a crash course from a Scottsdale property management company. Maintenance requests are the largest source of stress in every rental contract — they take away your from your profits, your time and can damage even the best tenant relationship. Every landlord has to deal with maintenance requests and tenant concerns, but how many you get depends on you. Here are four great management tips that will take the headache out of renting your property.

1. Get down to basics!

Features like soft water heaters, landscaping, pool pumps and appliances all require scheduled maintenance. Removing easily damaged and high maintenance items will prevent careless tenants from damaging them. However, some upgrades can’t be removed like pools, gardens and landscaping – that’s why we provide excellent landscaping and pool services for many of our KRK Realty and Management rental homes. We hire the best service providers at the lowest prices to provide monthly upkeep for our clients’ valuable homes.

1. Set boundaries!

Is the tenant responsible for light bulbs? What about replacement filters? You obviously don’t want your lease to be fifty pages long, but if ground rules about maintenance requests are not established, tenants will take it upon themselves to make them. Seek help from a professional to draft a lease that respects both the tenant and you. At KRK Realty, we use a specific move-in form and move-out process to set the right expectations with tenants so everyone is happy and satisfied.

1. Keep your receipts!

Made a recent upgrade to your house? Not only are upgrades tax-deductible, they’ll serve as evidence if disputes arise. You know you upgraded the fridge two years ago, but if your tenant damages it they may try to claim the fridge was decades old. Save yourself the hassle of small claims court and keep all your receipts with a dated picture of the upgrade. This process is streamlined at KRK Realty with our detailed, transparent accounting process for all transactions for your home.

1. Avoid Pitfalls!

First-time landlords make a lot of mistakes, but by far their biggest is thinking once the lease is signed the house is rented as-is. That’s simply not true– broken items, bad painting, cracked walls and torn carpet can turn into maintenance requests. Additionally, failing to respond to these requests means the tenant may deduct the amount of making the repairs themselves from the rent! Since managing properties is an ongoing process, many homeowners elect for the easiest method—letting a property management company do the hard work for them. Contact KRK Realty the foremost Scottsdale property managers, to discuss how convenient our services can be!