Why Property Upgrades Matter

New Mexico’s real estate market is highly competitive, with steadily increasing home prices and a growing demand. Coupled with the constant introduction of innovative home features, it becomes increasingly challenging for property owners to attract quality tenants.

Property upgrades are an effective way to boost appeal to potential buyers. They also increase property value and justify a higher rental fee while still giving tenants and buyers value for their money. These upgrades keep a living space well-maintained and make it more livable.

Top Upgrades That Boost Property Value

Property upgrades don’t always have to be the most expensive, but they have to be planned carefully to deliver a significant boost for the owners. Below are easy ways for landlords and property owners to increase property value.

Kitchen and Bathroom Remodels

Potential tenants and buyers pay the most attention to the kitchen and bathroom when scoping out options. A kitchen and bathroom remodel can improve the functional appeal and style of the property, making it more attractive. Consider modernizing these areas with new cabinets and countertops to maximize space and usability. Incorporate current design trends and fixtures that offer comfort and convenience.

Energy-Efficient Upgrades

Energy-efficient home features that reduce utility bills are appealing to tenants and can help command higher asking rates. Look into adding energy-efficient windows and insulation. Check out programmable thermostats, LED lighting, and smart home technology. You can even install solar panel systems and integrate them into your roofing.

Flooring Improvements and Fresh Paint

Flooring improvements and a fresh coat of paint are simple house projects that boost property value. They enhance curb appeal and give the impression of a well-maintained property. Keep your flooring updated with durable and low-maintenance options, like tiles and luxury vinyl plank. Apply neutral paint to refresh the space and mask imperfections.

Smart Home Integration

Smart features appeal to a younger demographic and tech-savvy tenants. They also justify higher rent prices. In addition to smart climate control and appliances, you can also install keyless entry and smart security systems. Simplify management with remote monitoring and automation, like smart locks and leak detectors. Consider small additions like robot vacuums and smart lighting systems.

Maximize Your Property’s Value

Elevated Management Group leverages local expertise to provide property owners and managers with excellent recommendations on property investments. Whether it’s remodeling one section of your rental apartment or a complete renovation of your property, we can help identify opportunities for revenue growth and manage your properties, so you don’t have to.

Get more information on New Mexico’s dynamic rental market from the experts at Elevated Management Group. Learning how to increase property value can help you make the most of your assets and attract quality tenants. Contact us today for a free consultation in New Mexico.

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How to Calculate ROI on an Investment Property

ROI is a key metric for determining whether a property will yield a good return. Understanding what makes a good ROI for an investment property is not a one-size-fits-all process. The notion of a “good ROI” depends on factors such as location, market conditions and risk tolerance, some of which are not in the investor’s control. What one investor considers good may be subpar for another.

For example, some investors consider a 6% to 10% return on investment good. However, aggressive investors who rely on high-risk, high-reward strategies often aim to exceed the 10% ROI.

The ROI formula for rental properties involves three basic numbers. The net profit is divided by the total investment and then multiplied by 100.

Let’s say you have a single-family home and want to determine the probable ROI:

• You purchase a property for $250,000.
• The closing costs and the agent’s commission total $25,000.
• Insurance and property tax, plus other expenses, equal $5000 annually.
• The projected annual income is $30,000.

First, calculate the total investment, which will be the cost of the property plus the closing costs. The sum is $275,000.

Then, calculate the net profit by subtracting the annual expenses from the annual income. The answer is $25,000.

Now, divide the net profit by the total investment and multiply by 100.

ROI = (25,000/275,000) x 100 = 9.09%

With this example, you can expect a return of 9.09% annually. However, this percentage will look different depending on your financing option. The above example focuses on a cash purchase. But if you are leveraging debt, you may have a significantly lower upfront investment and a higher ROI.

Tips to Maximize ROI

Although ROI is subject to factors outside the investor’s control, like market conditions, you can implement several methods to improve your ROI.

• Optimize rental income: Make strategic property upgrades and add amenities that justify higher rent.
• Minimize vacancies: Invest in real estate marketing services to increase your property’s exposure.
• Partner with a property management company: Work with a professional company with the resources and experience to help you adhere to legal requirements and increase your property’s appeal.
• Invest in a tenant experience: Host events to foster community and be responsive to tenant requests.

Choose Elevated Management Group, LLC

As a leading property management company in New Mexico, we offer our clients local expertise backed by years of experience. From marketing to rent collection and mortgage payments, every aspect of your rental property will be in good hands.

Contact us to get started with renting out your property.

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A few tips on choosing the best tenants can go a long way.

Tenant Screening Essentials

One of the best ways to screen potential tenants is to speak with their previous landlords. You can find out if the tenant respected the neighbors and the property and whether there were other problems like noise complaints. Checking their credit, criminal and eviction history will give you a picture of who they are and add a layer of protection. A person with a good credit score indicates that they are financially responsible and can pay their rent on time.

Screen them in person and have a set of questions prepared, such as why they’re moving, if they have pets and assess if they are generally a good communicator. If you suspect an applicant is not being completely honest, verify the information and ask clarifying questions. If you confirm dishonesty, you have grounds to deny their application.

Spotting Red Flags

Keep an eye out for these red flags when finding tenants for your rental property:

• Recent late payments.
• Multiple evictions.
• Too many short-term stays.
• Too eager to move in immediately.
• Reluctance to consent to a credit or background check.
• Counterfeit paperwork, such as fake pay slips.
• Previous addresses that don’t match the application or credit report.

Ensuring Fair Housing Compliance

From the screening process to their last day at your property, tenants should feel welcome and safe in their homes. To make them feel this way, landlords should comply with fair housing laws.

The Fair Housing Act protects tenants against discrimination based on race, religion, nationality, gender, disability and familial status. As a landlord, you should understand and follow this law to avoid violations.

Some best practices for staying compliant with fair housing laws:

• Use only quantifiable qualifications, such as credit scores, to choose your tenants.
• Use consistent screening criteria for all applicants.
• Keep accurate records of acceptance and denial decisions.
• Provide reasonable accommodation to tenants with disabilities.
• Ensure common areas and amenities are accessible to all tenants.

Frequently Asked Questions About Tenant Selection

Explore commonly asked questions about finding the right tenants below.

What Is the Best Way to Find Tenants for My Rental Property?

To attract more applicants:

• Use high-quality photos, detailed descriptions and list on popular rental websites.
• Research comparable rentals in your area to determine a fair market rent.
• Consider adding amenities like updated appliances and in-unit laundry.
• Respond promptly to inquiries and schedule showings quickly.
• Keep the property clean, well-maintained and presentable.

Can I Refuse to Rent to Someone With a Criminal Record?

You can consider criminal history carefully and avoid blanket bans. Consider the nature and severity of the crime, the time elapsed since the conviction and its relevance to the safety of the property and other tenants. Consult an attorney to ensure your policy complies with local and federal laws.

Choose Elevated Management Group to Screen Potential Tenants

Elevated Management Group is a professional property management company in Albuquerque, New Mexico, and the surrounding areas. Our real estate experts can help with the rental application process, including a credit check, background check, eviction history search and income verification. Contact us today to find qualified tenants for your property.

The post Tips For Finding Good Tenants appeared first on Elevated Management Group.

Upkeep is essential to maintaining the property’s value, attracting more tenants and staying compliant with state and local regulations.

Contact Property Management Experts

Creating a Rental Property Maintenance Checklist

Basic routine maintenance includes tending to landscaping, picking up trash and keeping the property clean and tidy. The landlord is also responsible for ensuring the property’s structures, such as the roof, walls, driveways and sidewalks, are in good condition. Repairing these features can be expensive, so you should conduct routine inspections to fix minor issues before they become costly problems.

These tasks can feel overwhelming for a property owner, but breaking them down methodically into weekly, monthly and quarterly schedules can help you stay on top of your management routine.

For tenants’ safety and comfort, here are a few key things for landlords to keep an eye on:

• Smoke detectors.
• Water leaks.
• Heating, ventilation and air conditioning (HVAC) systems.
• Water heaters.
• Garbage disposals.
• Electrical work.
• Toilets.
• Drywall.

Conducting Seasonal Inspections

Seasonal maintenance depends on the location of the property and the local climate. Regular inspections allow you to identify issues early and address them to maintain the appeal and value of your property. Seasonal inspection reduces maintenance costs and extends the lifespan of various components. Each season comes with specific tasks.

Spring

As the weather warms up, check the property for any damage that may have occurred over the winter, such as freeze-thaw damage to stucco or concrete. Inspect HVAC units and replace filters as needed. Assess the landscaping and prepare for any spring or summer blooms.

Spring tends to be the time of year when the winds pick up in New Mexico. Inspecting your rental property after high-speed winds is essential for finding potential damage early.

Summer

Summers in New Mexico can be extremely hot. Inspect fans and the AC units. Check windows and doors for air leaks, gaps or cracks that require maintenance. Monitor irrigation systems and adjust watering schedules to conserve if necessary. Implement pest control measures and maintain lawns and gardens to keep your property looking its best.

Fall

As temperatures cool, inspect roofs for imperfections like missing shingles or leaks. Prepare the HVAC system for chillier weather. Check for any cracks or gaps in the building’s exterior that may allow cold air or pests — like ants, cockroaches or rodents — to enter.

Winter

During the winter, check heating systems and insulate exposed pipes to prevent freezing. Check and seal all windows and doors to prevent heat loss. Clear snow and ice as needed. Inspect walkways, steps and handrails to ensure they are in good condition.

Rental Property ​Maintenance Costs and Budget Allocation

Since maintenance is inevitable when you own property, you should have a dedicated budget. To determine what percentage of rental income goes to maintenance, consider applying one of these rules:

• The 1% rule: This entails taking 1% of your total property value and setting that aside annually to cover maintenance costs. This rule is effective because both factors depend on the price of materials and labor. If house prices go up, so will the cost of maintenance.
• The 50% rule: This rule stipulates that you should devote 50% of your rental income to maintenance costs, taxes, insurance, utilities and other expenses.
• The 5X rule: This rule states that the maintenance cost should be the monthly rent multiplied by 1.5.
• The square footage rule: This rule calculates maintenance costs at $1 per square foot of your property.

While it’s impossible to anticipate a repair emergency, successful property managers have systems in place to handle repair requests swiftly and efficiently at any time of day.

Choose Elevated Management Group to Conduct Maintenance for Your Rental Property

When you choose Elevated Management Group, you don’t have to worry about responding to tenants’ maintenance requests. Tenants can direct all maintenance requests to our office by phone or through the online portal. A qualified service person will arrive at their home as soon as possible to handle their issue. Contact us today and take the stress out of property maintenance and other aspects of rental property management.

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Legal Responsibilities of Rental Property Owners in New Mexico

Landlords have the right and responsibility to collect payments when they’re due, maintain a safe, peaceful living environment for tenants and neighbors, and collect and use security deposits to cover damages as needed.

New Mexico landlord-tenant laws are mainly regulated by the state’s Uniform Owner Resident Relations Act. Understanding these regulations is important to protect the rights of both parties.

Here’s a general overview of the rights, protections and responsibilities of both landlords and tenants.

Health, Safety and Repairs

In New Mexico, every landlord must keep all rental unit appliances in safe, functional condition. These include electrical, heating, air conditioning, plumbing and ventilation systems. The landlord is responsible for providing units that comply with local safety and health codes. If requested by the tenant, the landlord must have any issues in the unit repaired accordingly. If they don’t respond to these requests within seven days, the tenant can pursue legal action against the landlord.

Tenants have a responsibility to keep the property in a habitable condition, pay rent on time, make minor repairs when required and not disturb other people near the unit. Similarly, a landlord can seek legal action against a tenant for a breach of lease terms, property damage or unpaid rent.

Right of Entry

Landlords have the right to enter a rental unit to handle repairs requested by the tenant. However, they can only conduct inspections if they have a valid reason to do so.

Disability Accommodations

Under the Fair Housing Act, landlords may not discriminate against tenants based on gender, race, religion, national origin or disability. Tenants with disabilities have the right to request reasonable accommodations from landlords, such as having a service animal in their unit or adjusting rent due dates to align with benefit payments. Landlords also have the right to request documentation from the tenant’s medical provider.

Protection for Victims of Domestic Violence (DV)

The Violence Against Women Act (VAWA) protects tenants who are victims of DV by providing federally subsidized housing. In New Mexico, landlords of subsidized housing must follow VAWA protections. However, VAWA doesn’t cover private, market-rate housing unless the landlord accepts a Section 8 voucher from the tenant.

Security Deposits

Security deposits provide a safety net for landlords, allowing them to cover unanticipated costs like property damage and unpaid bills. Once a tenant moves out, the landlord usually gives them back the security deposit fee unless the tenant:

• Has caused damage to the property beyond normal wear and tear.
• Is behind on rent payments.

Typically, the landlord must return the security deposit within 30 days of the tenant vacating the property. The tenant can take legal action if they don’t receive the deposit within this time frame.

Notices for Termination or Eviction

New Mexico allows multiple types of eviction notices:

• Material noncompliance
• Nonpayment of rent
• Substantial violation notice
• A 30-day notice at the end of a lease term

Written Lease and Walk-Through Inspection

Before finalizing the rental agreement, the landlord and tenant should do a walk-through inspection of the unit together and record any issues or damage. Both parties must also sign a written lease agreement for it to be legally binding.

Navigating Real Estate Investment Laws in New Mexico

As a first-time real estate investor preparing to rent out your property, familiarizing yourself with the state’s investment laws is critical. Below are some essential factors and information to consider as you take on this new adventure.

Tax Laws for Rental Property Owners

In New Mexico, local counties oversee property taxes, meaning tax assessments may vary depending on the rental property’s precise location. Counties determine property values and generally reassess these numbers annually. A landlord should keep track of their property’s assessed value since it directly impacts their owed taxes.

Additionally, rental property tax rates in New Mexico vary by state and local regulations. These rates are applied to the property’s assessed value to calculate the property taxes owed. Rates differ between areas, so landlords should stay up to date with any changes in tax laws that could impact their property taxes.

Other key considerations include:

• Deductible expenses: Landlords can deduct many expenses associated with their rental property, including property maintenance and repairs, mortgage interest, and insurance.
• Depreciation: Depreciation allows landlords to deduct a portion of the rental property’s cost over its useful life, decreasing their taxable income.

Understanding tax laws and eligible deductions can be complex. Consider hiring a qualified tax professional who can provide personalized advice based on your unique situation.

Property Inspection, Upkeep and Maintenance Tips

Regularly inspecting and maintaining your rental property is a must to attract and retain quality tenants and protect your investment. Keep these best practices in mind:

• Conduct regular inspections: Periodically inspect the property to detect potential issues early on. Inform the tenant of any problems you encounter as soon as possible.
• Perform repairs promptly: When a tenant submits a request for a repair, respond quickly to prevent this issue from escalating.
• Implement a preventive maintenance plan: A comprehensive plan is important to keep the property in good condition. This should entail tasks like roof inspections, HVAC system servicing and gutter cleanouts.
• Hire a professional property manager: Managing a rental property on your own can be challenging and time-consuming. Consider hiring a professional to handle these day-to-day responsibilities, including tenant screening, rent collection and maintenance requests.

Common Questions About New Mexico Rental Laws

We’ve answered some FAQs to help you better understand landlord and tenant rights and responsibilities.

1. How Do Property Maintenance Laws Impact Landlords and Tenants?

New Mexico landlord-tenant laws are designed to protect both parties and ensure a transparent rental agreement. They outline landlords’ responsibilities to maintain habitable, safe living spaces, as well as tenants’ obligations to treat the property responsibly. Understanding these regulations is essential on both sides for a successful tenancy.

2. What Are the Rental Property Inspection Laws in New Mexico?

During an emergency, such as a flood, gas leak or fire, a landlord may need to enter the unit immediately. Under New Mexico law, a landlord does not need permission to enter a rental unit in emergencies where the property and lives are at stake.

In nonurgent situations, however, landlords are required to provide at least 24 hours’ notice and get consent from the tenant before entering the unit. Written notice can be an email, a letter delivered to the residence or even a text message.

3. What Should a Rental Agreement Include?

Rental agreements should typically include the following information:

• A description of the property
• Rent conditions, including payments, late fees and grace periods
• Information regarding all parties involved
• Person responsible for utility bills and repairs
• Subleasing terms, if applicable

Remember that under the Uniform Owner Resident Relations Act, leases longer than one year require a written rental agreement. That being said, having a written agreement is always a good idea, regardless of the lease duration.

Get Support Navigating Rental Property Rules and Regulations

If you’re looking to partner with an experienced property management company, Elevated Management Group is ready to work with you. We serve property and rental property owners all over New Mexico, offering the following services:

• Assistance with property sales and purchases
• Rent collections
• Rental application processes
• Maintenance requests
• Bill and mortgage payments
• Marketing

Our team can also support you in navigating complex landlord-tenant laws and understanding your responsibilities. Contact us today and let us know how we can serve you!

The post Guide to New Mexico Rental Laws for Owners appeared first on Elevated Management Group.

Understanding the Basics of Maximizing Rental Income

You need to know six basic concepts to understand strategies for boosting rental income:

• Supply and demand: These are the main factors driving how much you can charge for rent. When only a few properties like yours are available and many renters are interested, you can set a high price. If more properties become available or fewer renters are in the market, the price has to drop to secure tenants.
• The local market: When analyzing supply and demand, focus on the neighborhood around your property. How many properties like yours are around? Find out if they are vacant or occupied and what their prices are. Stay updated on any new or planned developments that could affect future demand.
• Target renters: Identify the kinds of people looking to rent in this neighborhood. Are they young, single professionals? College students? Young families? Retirees? Think about their incomes, lifestyles and tastes. Decide what local market segment your property can appeal to and let their priorities guide your pricing, renovations and other decisions.
• Operating costs: Calculate the costs of owning and renting out your property. These include your mortgage if you’re still paying off the home, anticipated repair and maintenance costs, renovations, insurance, and taxes. They also include the time costs of managing the property if you do that yourself. Your costs impact how much rental income you need to get a worthwhile return.
• Property features: Your property’s features and any renovations you do will influence which renters you can target and how much they’ll be willing to pay. Features include bedrooms, bathrooms, an HVAC system, security features, a yard, a pool and anything else that distinguishes your property.
• Rent pricing: Considering all the factors above, you can work out a range of reasonable rental prices to charge for your property. Within that range, lower prices make it easier to attract tenants, but going toward the higher end will maximize your returns.

Value-Adding Renovations to Boost Rental Income

Renovations allow you to upgrade your property’s features, enhancing its value to your target tenants. This is an effective strategy to maximize your returns because a one-time renovation with occasional maintenance can translate to more income every month. Some of the best value-for-money renovations for boosting your rental income are:

• Kitchen and bathroom upgrades: Upgrading the kitchen and bathrooms can tangibly improve your tenants’ quality of life. Upgrades can include new appliances like a dishwasher, cabinets and countertop finishes. These are some of the highest return on investment (ROI) renovations because the increase in rent price they justify can cover the costs within a few months.
• Paint and lighting: A fresh coat of paint and good lighting can enhance your property’s impression on potential tenants. Energy-efficient lighting can save them utility costs, justifying a slight rent increase.
• Flooring: Replacing old carpets with durable, attractive flooring and repairing damaged floors improves your property’s interior aesthetics and value. Popular materials for rental properties include luxury vinyl plank (LVP), tiles and laminate flooring.
• Landscaping: A well-mown lawn, potted plants and other exterior features can enhance your property’s curb appeal for an inviting first impression.

The Most Effective Pricing Strategy for Maximizing Rental Income

In general, you maximize your rental income by setting the rental price as high as possible while attracting enough tenants to keep the property occupied. From there, a reasonable increase each year to keep up with market rates in your neighborhood is normal. Most tenants will be happy to pay a little more each year to avoid having to move.

Analyze the market in your neighborhood to inform your pricing. Rental properties similar to yours can give you a good idea of how much to charge. If they’re well-occupied, you can probably charge a similar rent or slightly higher if demand is high. If the market has a lot of vacant rentals, you may need to consider lower pricing. If a tenant moves out during a lower demand period, you may have to reduce the rent to get a new tenant. You can always increase it again when demand goes up. Keeping your pricing adaptable to fluctuating demand is called dynamic pricing, and this is one of the most effective strategies for maximizing rental income.

Along with your pricing, consider which lease intervals you’ll offer. Long-term leases are ideal for stable income. Short-term rentals require more work and have a higher risk of vacancy but allow you to charge more per day and can be lucrative in high-tourism areas.

Strategies for Long-Term Tenant Retention

A tenant who pays on time and respects your property is one you want to retain to keep your cash flow stable. Apply these property management tips for tenant retention:

• Let them know how and when they can reach you and which numbers to contact for emergencies outside those hours.
• Be prompt and helpful in responding to any concerns.
• Schedule routine inspections and maintenance to minimize the need for repairs.
• Incentivize lease renewals by offering a discount on the rent you would charge a new tenant.

Maximizing Rental Property Income Through Property Management

As the owner, you can choose to manage your own property. Management involves duties like:

• Marketing the property.
• Screening tenants.
• Responding to tenant calls.
• Arranging renovations, maintenance and repairs.
• Collecting rent if a tenant is late to pay.

You can also hire a reputable property manager to handle these duties for you. While managing the property yourself lets you keep all the income, you must also do all the work. Hiring a property manager turns your real estate into passive income for a reasonable fee. This arrangement allows you to relax and spend time on your top priorities while receiving passive earnings every month. If you want to build your real estate portfolio for maximum income, hiring a property manager makes it possible to reinvest in additional properties to earn more without it requiring more time or effort.

Maximize Your Rental Property Income With Elevated Management Group, LLC

Renting out your single-family home could be your pathway to lasting wealth. However, maximizing your income can be challenging when you have limited time available for property management duties. If your property is in New Mexico, Elevated Management Group, LLC can help optimize your potential for lucrative, passive returns.

Elevated Management Group, LLC is New Mexico’s premier full-service property management company. From tenant applications to maintenance and rent collection, we handle all the work of managing your property while you enjoy the returns. And when the time comes to expand your portfolio, we can assist with your next acquisition. We offer discounts to owners of multiple homes, so your ROI can improve as your portfolio of passive income real estate investments grows.

Contact us today for single-family home property management services to maximize your income.

The post How to Make Money on Your Rental Property appeared first on Elevated Management Group.

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Understanding the New Mexico Real Estate Market

Real estate inventory in much of the southwestern United States has been tight relative to demand recently. This situation means keen-eyed investors ready to seize an opportunity can generate lucrative returns on their property investments.

New Mexico stands out for long-term income investors. The combination of a healthy job market, a growing economy and a high population of potential tenants drives demand for rentals. Strong population growth in and around cities like Santa Fe and Albuquerque further stimulates rental demand and prices. While New Mexico’s cities have thriving rental markets, the normalization of remote work supports the demand for cost-effective suburban rentals, too. Here are a few statistics to help you understand why rental property investments in New Mexico are alive and well:

• In 2023, New Mexico saw one of the highest real GDP growth rates of any state at 6.8%.
• The state ranked 16th in job growth based on Bureau of Labor Statistics data.
• Also in 2023, New Mexico had the 16th lowest rental vacancy rate of any state at 5.68%.

New Mexico Real Estate Investment Opportunities

New Mexico’s real estate market offers various residential property types to consider as investments, including:

• Single-family homes: These stand-alone homes give owners the most control over value-adding renovations. They are the most popular homes in New Mexico, making up a larger share of the state housing market — about 65% of all homes — than the U.S. nationally. Demand for single-family homes is highest in suburban areas. Three-bedroom housing is New Mexico’s most popular home size.
• Multifamily townhomes: While the value of these connected properties is very responsive to economic shifts, the cost of entry is relatively low. Demand for multifamily rentals is expanding, thanks to steady growth in the state’s economy and urban job markets. Demand for these units in Albuquerque and Santa Fe is especially underserved, making multifamily rentals a compelling investment opportunity.
• Condominiums: Condos offer an affordable entry point into real estate investing and are popular among young professionals in urban areas. Economic hubs like Santa Fe and Albuquerque are especially favorable for condo investors. A condo is generally easier to acquire than a single-family home and lets you make an informed decision by looking at occupancy rates and pricing trends within the same complex.
• Apartment complexes: Apartment complexes allow investors to acquire several units in one location. This opportunity can help you build a stable and growing income stream.

New Mexico Real Estate Laws and Regulations

New Mexico’s laws and regulations are friendly to investors, but the state has some regulatory requirements you should know before investing in rental properties, including:

• Brokers’ licensing regulations: If you buy a property through a brokerage or hire a property manager to look after it for you, these professionals must have brokers’ licenses in line with the Real Estate Brokers statute.
• Zoning and land use policies: Zoning laws and land use restrictions vary by county and city. If you’re considering investing in a specific location, check the local zoning map to make sure you’re allowed to use the property you buy as you intend. For example, if you purchase a property in an area reserved for industrial use, you may not convert it to a residential rental property. A real estate professional who knows the area can help you understand these regulations.
• Landlord-tenant laws: If you aim to invest in rental property, you must follow the Uniform Owner-Resident Relations Act (UORRA) and other laws and regulations governing the landlord-tenant relationship. The basic landlord duties in the UORRA include maintaining a habitable environment for your tenants, complying with local health and safety laws and providing at least a month’s notice before amending or terminating the lease. A qualified New Mexico property manager can help you fulfill all legal obligations.

New Mexico Landlord Tax Laws

Property taxes in New Mexico vary between counties, but the state has some of the lowest average effective property taxes nationwide at around 0.67%. Most of this annual tax goes to supporting local schools. The state has no transfer taxes, though you may have to pay capital gains taxes when selling a growth investment property. As an income investor, you’ll pay tax on your rental income but can deduct depreciation, mortgage interest and other expenses.

Is Albuquerque, New Mexico a Good Place to Buy Investment Property?

Albuquerque is one of New Mexico’s best real estate investment markets. It’s the state’s largest city, with a large job market keeping rental demand high. Plus, with a $345,000 median home value, the market is more accessible to new investors than many other major U.S. cities. The city’s cultural history and picturesque mountain views add lasting value to its properties.

Depending on your goals, you can explore many established and emerging neighborhoods in the city and its surrounding areas. These neighborhoods cater to diverse residents, giving you access to a wide range of market segments and steady rental income. For example, Ventana Ranch and Nob Hill boast high rental rates with low vacancies, while Downtown and South Valley are accessible markets that attract young residents.

Whether you’re acquiring a new rental property or turning your home into an income investment property, Albuquerque is an outstanding market for real estate investors. For a seamless investment experience, consider partnering with a local property management company. Albuquerque real estate professionals can handle many of your landlord responsibilities on your behalf while you collect the bulk of your rental revenue as passive income.

Streamline Your Property Investment With Elevated Management Group, LLC

New Mexico real estate can offer lucrative returns, especially to an income investor who knows their local market. However, owning a rental property comes with responsibilities, like finding and screening tenants, collecting rent, and responding to maintenance requests. A reputable property manager can tackle these duties for you, allowing you to enjoy passive returns and expand your portfolio if desired. That’s why you should partner with Elevated Management Group, LLC.

We are a full-service property management and sales company serving Albuquerque, Santa Fe, Bernalillo and other residential real estate markets in New Mexico. Our services include:

• Marketing
• Rental applications
• Collections
• Maintenance
• Bill and mortgage payments
• Acquisitions and sales

Our licensed property managers know New Mexico real estate and are here to help streamline your income investment. Contact us to discuss your investment goals today.

The post New Mexico Real Estate Guide appeared first on Elevated Management Group.

Depending on your lifestyle, it might be a better choice to hire a property management company. There are pros and cons to both self-management and property management, and many factors you’ll want to consider before coming to a final decision.

It can be daunting to choose between self-managing your property or hiring a third-party company to manage it for you. The right choice depends on your situation and how devoted you can be to the needs of your tenants on a day-to-day basis.

What Is Self-Management?

Before deciding whether to self-manage or hire a property manager, it’s important to understand both options. Putting thought into the decision and considering the advantages and disadvantages from every angle will help you make the best choice.

Managing your own rental property means taking on all the duties of a landlord yourself. You’re responsible for the day-to-day operations of your property and must ensure it runs smoothly. You’re also the point of contact for your tenants when they have issues. Your responsibilities as a property manager would include:

• Raising rent.
• Dealing with evictions.
• Advertising your property.
• Screening tenants.
• Dealing with complaints.
• Enforcing rules and leases.
• Obtaining insurance.
• Scheduling inspections.
• Handling evictions.
• Addressing vacancies.

Pros of Self Property Management

First, we’ll cover some of the advantages of a self-managed investment property. Acting as your own property manager lets you:

• Have complete control of your investment: As a self-manager of your rental property, you receive all of your rental revenue. You have complete control over your investment and what becomes of it. While this can be a significant bonus for some people, full ownership of your rental property may be overwhelming for others.
• Save on property management fees: One of the most noteworthy benefits of self-managing a property is saving on property management fees. These fees usually amount to between 7% and 10% of your monthly rental revenue, making these savings significant.
• Gain valuable experience: You can gain worthwhile investment and business experience when you self-manage your rental property. If you want to learn as much about the real estate industry as you can, self-managing your properties is a great step to take.
• Have a say in your tenants: If you self-mange your property, you have total control over who can rent with you. You can be as selective as you deem necessary for your property.
• Build personal relationships with tenants: When you self-manage, you are the one to check up on your tenants, collect their payments and respond to their needs. This contact lets you build trusting relationships and get to know the people living on your property.
• Have guaranteed care for your money: There’s no one more invested in you getting the most out of your money than you are. If you’re self-managing, you’re likely to be highly motivated to make the best decisions for your investment.

Cons of Self-Management

While managing your own rental property has benefits, it also comes with its fair share of risks, including:

• Having to face problems on your own: As a self-manager of your rental property, you are the sole person in charge of dealing with any issues. You’re at the very top of the ladder, and ultimately every decision will come down to you.
• The time commitment: Self-managing your property is extremely time-consuming. Even a small property creates many responsibilities. Handling them all on your own can be overwhelming and might cause stress.
• Dealing with high-maintenance tenants: While some of your tenants will probably be great, you’re bound to have some who are a bit more challenging. Whether or not their problems and concerns are ones you have control over, you’ll still have to respond to their inquiries. Frequent calls like this can be tedious and patience-testing.
• Making costly mistakes: As a self-manager, making a mistake can be extremely expensive. Hiring an experienced property manager can often help you avoid those costs.
• Having to deal with unexpected problems: You might have a renter late with their rent, a burst pipe in your property or tenants experiencing an issue with one of their appliances. When you self-manage your property, your schedule has to be able to accommodate sudden issues, even if they require rearranging your entire day to fix them.
• The potential for misunderstanding property laws: Learning the rules of your area takes a lot of time and effort. Missing an intricacy or nuance of the law can result in significant problems for you later.
• Being in charge during uncomfortable situations: If you self-manage your property, you’re in charge of letting tenants know about increases in rent and possible evictions, which can be a challenging position to be in.

What Is Property Management?

Property managers take on the responsibility of collecting payments, answering tenants and performing other day-to-day operations of your property. For a portion of your monthly rental income, they manage the needs of your business, both big and small.

While you still own the property, a project manager ensures everything runs smoothly for you. While you can retain some responsibilities if you want to, property managers generally handle most of a property’s operations.

Property managers can be a great asset when:

• A tenant calls with a problem in the middle of the night.
• You need an electrician to inspect your property.
• You need to fill an unexpected vacancy.
• One of your tenants is behind on payments.
• You need to schedule maintenance checks or inspections.
• A tenant damages your property.

The benefits of hiring a property manager are especially clear for people who want to save the time it takes to run their rental. Read on to see if it would make a good fit for your business.

Pros of Property Management

As with self-management, there are pros and cons to hiring a property manager. A third-party property manager:

Saves you time: It always feels great to check tasks off your to-do list. Sometimes, though, it’s even better to hand the responsibilities over to someone else entirely. One of the great benefits of property management is you’ll save the time that you would otherwise spend on doing maintenance checks, collecting payments, responding to tenants’ requests or advertising your property. If you find those tasks mundane, hiring a property manager might be a great option for you.

Comes with experience: Good property managers are licensed and know all the ins and outs of rental law, which can be a challenge for new property owners. Experienced property managers have also dealt with various problems and will know what to do when issues arise at your property.

Has access to resources: Property managers have access to many helpful resources. When you hire a property manager, it’s like you’re hiring an entire team of professionals to take care of the details for you. A good property manager will have connections to realtors, plumbers, electricians and other professionals trained to help with property issues. Additionally, property managers receive policy updates quickly and can make you aware of them fast.

Can deal with sensitive issues: Raising rental prices or dealing with evictions can be extremely challenging. With a good property manager, you’ll have someone to face those issues with you and ensure you both handle them properly.

Screens your tenants: The freedom to select your tenants yourself may seem like a bonus of self-managing your property. However, first-time self-managers might not know what to look for in a potential tenant. Property managers know what to look for in potential renters and can find reliable tenants for your property.

Markets your property: Getting the word out about your property can be a very time-consuming process. A property manager will figure out the best way to market your property using methods that will save you time and money.

Minimizes your stress: An expert third-party property manager makes it much easier for you to run your business. Having help with managing your property will let you resolve your tenants’ issues more quickly or ensure your property is getting the care it deserves.

Cons of Property Management

Property management does come with some potential disadvantages as well. Cons of property management include:

• Cost: You’ll have to set aside money to pay a property manager every month for taking care of the property’s operations.
• Risk of a disappointing property manager: When you hire a property manager, you may end up working with someone who’s less invested in your property than you are. Likewise, they might not put the proper amount of time or effort into managing your property. It’s important to do your research and find an honest, experienced property manager to care for your investment.
• Less personal experience with tenants: Since a property manager handles renter requests, your contact with your tenants might be more limited than if you were self-managing your property. If cultivating a relationship with your tenants is important to you, you may see this as a drawback. With some effort, however, you can still pursue that goal even if you hire a property manager.

Self Management Vs Property Manager Hiring

Whether self-management or property management is the best choice for you will depend on several factors. 

The biggest details to consider are your budget restraints and how much time and flexibility you have in your day-to-day schedule. Additionally, you should consider where you live, your personal qualities and what’s best for your renters.

Your tenants and how many properties you own can also help determine your best option. For example, you might only own one property that you rent out to a low-maintenance, pleasant family. In this case, managing your rental property could be a good opportunity. If you have one tenant whose payments are always on time, you may have little need to pay a property manager a portion of the rent every month.

However, if you own multiple properties, are looking to invest in more or have tenants who are more demanding of your time, hiring a property manager might pay off. Property management might also be for you if you currently live or want to move a distance away from your properties. With a property manager, you’ll still have someone nearby when your tenants need help.

A property manager can alleviate some stress if you’re still learning the necessary maintenance skills, or if the idea of having complete control seems overwhelming. With someone qualified in charge of operations, you can be confident your property is being taken care of.

You should also consider your renters when deciding between self-management and a property management company. Renters appreciate it when their property manager responds to their needs quickly, effectively and accurately. Consider whether your schedule will allow you to respond to their needs in the way they need.

How to Hire a Good Property Manager

Many of the cons associated with hiring a property manager stem from hiring someone less invested in your property than they should be. That lack of investment can be especially frustrating when you’re paying someone a monthly percentage to take care of things. Choosing the wrong property manager can result in a lack of communication, overlooked guidelines and unreliable tenants being chosen for your properties.

A good property manager makes all the difference. Choosing the right one is the best way to ensure you’re getting the most out of your monthly payments. When you’re  looking for a qualified property manager, ask questions like:

• How much do you charge?
• How much experience do you have?
• Do you have connections to other industries such as plumbing and electrics?
• What is your screening process for new residents?
• Do you know how to market my property?
• Do you have measures in place to handle emergencies?
• Is your staff experienced?
• Will you make a personalized plan for my property?
• How many units are you currently managing?

These questions will help you pick a property manager who’s just as invested in your property as you are.

Contact Elevated Management Group for More Information on Property Management in New Mexico

Interested in learning more about what a property management company can do for your business? Elevated Management Group can help. We are a full-service company servicing areas across New Mexico, including Albuquerque, Farmington, Rio Rancho and Bernalillo.

Our staff is licensed and ready to answer any questions you might have about property management. We provide services for single-family homes, multiplexes, condos and apartment buildings with 100 units or less. We’re dedicated to helping you reach your investment’s full potential and can help you understand the intricacies of owning a rental property. If you’re ready for more information, contact us online today!

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This process allows them to rent the home to earn additional income. Additionally, they can overcome what could be a significant monetary loss if a slow housing market makes it difficult to sell the house. Read on to learn more about renting out your primary residence to see whether it’s right for you.

What Are the Pros and Cons of Renting Out a Primary Residence?

Converting a home into an investment property offers a host of potential benefits:

• Passive income source: This refers to money you earn via minimal or no labor. If you rent your home to someone else, you can collect a monthly check without working for it in the traditional sense.
• Opportunity to time the housing market: When renting out your old home, you don’t have to be in as much of a hurry to sell it. Instead, you can continue to collect the monthly rent checks and wait for the next seller’s market opportunity to unload the property at a higher price.
• Managing relocation effectively: Suppose a job opportunity requires you to move to another city or state. It could take time to find a home that’s right for you and your family in the new location. Temporarily renting out your home allows you to continue to cover the mortgage in the meantime.
• Meeting a non-permanent housing need: If a life situation like taking care of a sick relative in another state or relocating for work for a year or two arises, renting out your home enables you to cover the mortgage while you rent an apartment in the new locale. Then, you can return to the house when your circumstances change.

On the downside, being a landlord isn’t for everyone. As a landlord, you may have to deal with tenants who fall behind on the rent or damage the home. Plus, you’ll need to ensure the property remains occupied and you have the funds to cover emergencies. If you’re moving far away, you’ll likely need to hire a property manager to take care of the house. Fortunately, you can always start with short-term leases while you adjust to being a landlord.

Considerations When Turning Your Primary Residence Into A Rental

Before you decide to turn your home into an investment property, you’ll need to evaluate a range of factors:

• Lender’s requirements: When you purchase a home to be a primary residence, you’ll enjoy more perks than when buying a property for rental purposes. Examples include a lower down payment requirement and a reduced interest rate. In return, the lender stipulates that you must live in the home for at least 12 months. If you attempt to rent it out sooner, you’re committing mortgage fraud.
• New living arrangements: Before moving forward, make sure you have a new place to live, whether you’re buying a new home or renting an apartment. The last thing you want to do is lease your current home to a tenant and have your plans for a new residence fall through.
• Landlord/property manager dilemma: Decide whether being a hands-on landlord or hiring a property manager to look after the home is the better option for your situation. If you choose the former, learn everything you can about the landlord process, roles and legal responsibilities in your state specifically.
• HOA restrictions: If your current home is a condominium, you probably deal with a homeowner’s association (HOA) that serves as the community’s governing body. The association may have rules that restrict the ability to rent a home to another individual or family. Be sure to verify if renting is permissible and whether any limitations apply.
• Potential tax implications: There are some significant taxation differences regarding rental property ownership and income. Sit down with a certified accountant or another knowledgeable tax professional to determine how they apply to your situation. After all, you don’t want any unwanted surprises when it’s time to file your taxes.

How to Turn Your Home Into an Investment Property

If you determine that renting out your primary residence is the right move for your situation, take the following steps:

1. Prepare the Property

Ensure your property is in ready-to-rent condition and as livable as possible. Making low-cost upgrades like applying a fresh coat of paint and handling any necessary repairs will make the home more appealing to prospective tenants and allow you to advertise a higher monthly rent. Depending on the house’s location, you may also need to make safety enhancements to comply with local ordinances.

2. Update Your Insurance

When you convert your home into a rental, your homeowner’s insurance provider will view your property differently and require you to change or add coverages. If you fail to make the necessary modifications, the insurer could deny a claim. In the same vein, you may want your tenants to show proof of carrying a renter’s insurance policy, as your plan won’t cover losses or damage to their personal property resulting from theft, vandalism and other perils.

3. Obtain Permits

Note that your local municipality may require you to apply for a permit when converting your home into a rental property. An inspector will examine the property to ensure it complies with all health and safety standards. Examples of items that undergo scrutiny are the heating, electrical and plumbing systems and access to exits in case of a fire. Save time and hassles by correcting any potential issues beforehand.

4. Hire a Property Manager

If you’ve decided to use a property manager, vet all candidates carefully. Examples of traits to look for include experience with your type of property, the thoroughness of their tenant screening process and their renter turnover rate. Professional credentials and licensing are also important. Begin your search for a certified property manager in your area by visiting the Institute of Real Estate Management (IREM) online directory or the National Association of Residential Property Managers (NARPM) website.

Learn More About Turning Your Home Into a Rental Property

Are you thinking of converting your primary residence into a rental property in Albuquerque, Santa Fe, Bernalillo, Farmington, Los Lunas or elsewhere in New Mexico? The team at Elevated Management Group, LLC can help. As an experienced property management firm, we can assist you in meeting your investment goals, working with you from start to finish.

Contact us today to learn more about renting out your primary residence.

The post Turning Your Home Into an Investment Property appeared first on Elevated Management Group.

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Benefits of Renting Out Your Primary Residence

Making your home into a rental property can be a rewarding experience for the following reasons:

• It gives you a reliable source of passive income: Renting out your primary residence allows you to make some additional money and strengthen your investment portfolio without having to do much work. Consider how much money you spend on your mortgage each month. If you’ve paid off your mortgage or you’re moving into another home, you can charge a similar monthly amount to potential tenants.
• Save time on relocating: You might want to rent your primary residence if you want to move into a new area. By renting your home, you can save the time that you would’ve spent waiting for your house to sell.
• Move out of your home temporarily: You may need to relocate for a few months to take care of a sick relative or pursue a work project out of town. When you rent out your property, your tenant can temporarily watch over your property as you provide them with a place to live. While your tenant pays rent, you can continue to pay your mortgage with the supplemental income and know that your home is still in excellent condition.
• Conveniently downsize: If you live alone, you may not need your spacious house. Instead of selling it, you can rent or buy a smaller property while making additional income on your primary residence.
• Wait for the housing market to improve: If your property’s value has dropped, you might want to rent your property and make some extra money until the housing market recovers. When you wait to sell your property after moving until its value has increased, you can profit from the sale of your house.

What to Consider Before You Convert Your Home Into a Rental Property

Before you make your home into an income property, you’ll need to take care of the following items:

• Evaluate your existing mortgage: If you recently moved into your home, you might not be able to rent it yet. Your mortgage company might require you to stay in your residence for at least a year before you consider moving. Otherwise, you’d be committing mortgage fraud, and the lender could put your house into foreclosure. Consult your mortgage company about your loan’s policies and stay in your home while you can until you’ve met the requirements for your mortgage.
• Consider HOA requirements: If your home is in a neighborhood with a homeowners association (HOA), you’ll have to determine whether you can rent it out. Some HOAs don’t have rental restrictions, while others only allow specific properties within the community to become rental. Contact your local HOA department to discover what you’ll need to do to rent out your primary residence legally.
• Review your financial situation: Before you rent your home, you’ll need to consider your relocation plan. If you still owe money on your primary residence, you might not be able to afford to take out a second mortgage. Your lender should be able to inform you about whether they take your rental income into account when they decide if you can afford your new mortgage.
• Upgrade your property as needed: If you want to make your home into a rental property, you’ll need to treat it like a business. Compare your rental property to others like it in your local area. Updating the exterior paint or replacing worn-out fixtures makes your home more appealing to potential tenants.
• Understand what it means to be a landlord: Converting your primary residence into a rental property will make you money, but you’ll also have more responsibilities than you did as a homeowner. You have to abide by the Fair Housing Act and become familiar with your local and state landlord-tenant regulations. Consider whether you’d want to take on the burden of renting your property yourself or hire a professional property manager to help you.

New Obligations and Responsibilities

Instead of renting your property by yourself, you can trust a property management company to help you handle the following obligations you now have.

HOA Regulations

When you rent out your property in an HOA community, your tenants will also have to follow the guidelines. You’ll have to enforce the rules and make sure you stay informed about all your neighborhood’s regulations so you can continue to rent out your property legally. It helps to consult a professional property management group that’s familiar with the local area. A reputable local company understands your community’s laws and guidelines so they can help you remember and comply with them.

Taxes

When you first rent out your property, you’ll need to consult a CPA or tax professional who can teach you about the new policies you’ll have to follow as a landlord instead of a homeowner. As a landlord, you’re also eligible for the following tax deductions:

• Utilities, if you pay them
• Mortgage interest on your rental property
• HOA fees
• Property taxes
• Landlord insurance policy
• Repairs you pay for on the house

Talk to a professional in the tax industry about how much tax you’ll have to pay on your rental income. You may also want to ask your tax advisor about the homestead exemption you might have on your current home. If you work with a local property management company, they’ll keep track of the tax documents and income data you’ll need to file taxes.

Homeowners Insurance

If you make your home a rental space, you’ll need to upgrade your traditional homeowners insurance policy. A landlord insurance policy protects your house from financial loss and specific responsibilities that only pertain to landlords, such as legal fees and liability charges. You must change your homeowners insurance policy before you start renting, or your provider could deny a claim you make for your rental property. A local property management company can help you keep track of your insurance information and documentation.

Financial Standing

Confirm that you can afford to keep both residences before signing any lease agreements with your potential tenant. If you realize you can’t afford to buy a second house, you may end up without a living situation. After your tenant moves in, you’ll need to keep track of all the money you make on rent and spend on maintenance and operation costs. A property management company can collect rent and provide periodic financial statements to review, so you know how much profit you’ve made.

Contact Elevated Management Group for Help Renting Out Your Primary Residence

If you’re renting a property for the first time, you might need some assistance navigating all the details. As a professional property management company, Elevated Management Group can help you oversee your rental property. We’ll find and screen potential tenants, collect rent and maintain your property for you. For more information about the services we offer to care for rental properties in the Albuquerque area, reach out to us online or call 505-257-6090.

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