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Getting Into the Investors Mindset

By
Services for Real Estate Pros with SCV Leasing, Inc.

With a general decrease in home values in our marketplace, many owners are renting out their homes because they "can't afford to sell."  As rental property owners, when we decide to rent out our homes, we need to reset our minds to that of an investor.  An investor is more detached from the asset, and the home you are renting out is an asset.  The asset needs to be attractive to the potential renter. 

As homeowners we often overlook many of the smaller items.  Perhaps the paint is a little old, maybe a drawer in the kitchen gets stuck, or if some small item breaks we decide we can live without it rather than repair it.  These items won't go unnoticed by potential tenants.  Some of these items, like paint, may limit the rentability of the property.  And some others, like stuck drawers or broken items, the tenant will demand to have repaired.

Often times these demands lead the owner to say, "It's a rental.  What do they want?  We lived without it for all the years we lived there."  This is the "homeowner mindset."  You're envisioning all of your time in the home, the holidays, the kids, the family parties.  Break that habit.

The "investor mindset" says fix it before it's a problem, get a good quality tenant in there, and do everything you can to keep them in there.  The longer they stay the lower the vacancy rate you will have.  If your rental property yields $2,000 per month, and it takes on average 45-days to get a new tenant in place, then every vacancy costs you $3,000 not counting leasing fees, cleaning fees, and anything else that's required to freshen the property for the next tenant. 

The bottom line, take the attitude of the investor.  If there is a repair to be made, make it.  If the home needs painting, paint it (it doesn't have to be an amazing paint job, it has to be a passable paint job).  By viewing your rental properties as the investments that they are, you will put yourself in a better position to succeed with those investments.

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Scott Taylor is the principal property manager and co-owner of SCV Leasing in Santa Clarita, California. His experience as a renter, property owner, and property manager makes him the best choice for managing your rental. SCV Leasing's unsurpassed marketing plan puts renters in properties fast.  Mr. Taylor can be reached at scott@scvleasing.com.

Steve Andrascik
Lake Mead Area Realty - Boulder City, NV

Very sound advice, Scott. Sometimes easier said then done. Thanks for the comments.

Oct 09, 2009 10:23 AM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Scott,

Welcome to Active Rain and congratulations on your first post! The opportunities to learn and network are incredible here. Best of luck to you!

-Keith

Oct 09, 2009 04:15 PM
Kirk Westervelt
Van West Realty - Greenville, SC Realtor -Short Sale Expert! - Greenville, SC
Kirk Westervelt, Broker In Charge, Van West Realty - CDPE - Short Sale Agent - Home for Sale - Greenville, Simpsonvil...

Hello and welcome to Active Rain! Enjoy yourself, learn from others and share your experiences and knowledge with all of us! I look forward to reading your blogs in the future!

Oct 10, 2009 01:06 AM
Lorena Westervelt
Van West Realty - Greenville, SC
Co-Founder/Co-Owner

Hello, welcome to Active Rain! This seems like a wonderful environment to network as well as learn from others. I hope you enjoy yourself and participate often in the Active Rain environment!

Oct 10, 2009 01:28 AM
Jason Rose
123 ConEd LLC -- Michigan real estate continuing education - Farmington Hills, MI
www.123ConEd.com

Welcome to ActiveRain, Scott, and congratulations on your first post! This is a great place, so have fun. Enjoy!

Oct 10, 2009 01:30 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

People need to remember that, just like selling the more you leave broken and unpainted, the less money you are going to get for the property in a sale or a rental. The object is to make money and if that means spending $200 to get an extra $200 a month than you do it! It means an extra $2200 over the year.

Welcome to the rain,

 Todd Clark - www.LivingBeaverton.com

Oct 10, 2009 08:29 AM
Jean Terry
Keller Williams Realty Spartanburg, S.C. - Spartanburg, SC

Hi and welcome to Active Rain, a great site to network, share, learn, and have fun Good luck. And if you ever need a Real Estate agent in the upstate of South Carolina, please call me.

Oct 10, 2009 02:12 PM
The Trumm Team Omaha Homes for Sale, Real Estate
Keller Williams Greater Omaha - Omaha, NE

Welcome to ActiveRain!

If you would like a few tips on getting the most out of ActiveRain, simply follow these steps:

1. At the very bottom of this comment click "Omaha Real Estate & Omaha Homes for Sale - The Trumm Team (Alliance Real Estate)" which will take you to my profile.

2. Click My Blog

3. On the right hand side click the Tags dropdown menu and select "Welcome to Active Rain"

This will take you to my blog on how to get the most out of ActiveRain.

If you ever have any questions, just let me know.

Troy Trumm, Trumm Team - 402-943-9494, Omaha NE

Omaha Homes For Sale

Omaha Real Estate

Oct 15, 2009 12:51 AM
Letitia Stevenson
BHHS Fox & Roach | www.DelawareValleyRE.com - Greenville, DE
Listing Agent DE/PA/MD, Digital Marketer & Coach

Scott, Welcome to Active Rain! Active Rain is a great place to share your knowledge, expertise and thoughts, as well as network and learn so much from the vast pool of talent already onboard.

Welcome Aboard and Much Success!

Nov 21, 2009 12:02 AM