How difficult it is to manage rental properties in Las Vegas remotely?

Asked by davin.wu, Las Vegas, Las Vegas, NV Tue Sep 25, 2012

I am a foreign cash buyer from Hong Kong. I used to live in the US but not in Las Vegas. Now I usually come over to the US a few times a year for business. I have been very interested in rental properties in Las Vegas but I have also heard many horrible about the risks of remote landlording. To play the LV market,

1) What area and what type of properties in LV are easy to rent out?
2) If I am not around in LV, can the property manager handle all tenant management activities and maintenance?
3) Is remote landlording very common in LV? How do the remote landlord check the status of their rental properties?

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14
David Cooper, Agent, Los Angeles, CA
Sun Oct 7, 2012
Google "property management Las Vegas" Interview 3 or 4 companies on the phone. Some questions I would ask?
When do you send out the collected rent?
Do you have your own contractors for repairs?
Are you a full-time property manager or do you also sell real estate?
How many single family houses do you have under rental right now?

David Cooper Investor 702-499-7037
Don't Miss Todays's Foreclosure List http://www.lasvegaswinner.org
0 votes
Wendy Chen, Home Buyer, New York
Sun Oct 7, 2012
Hey I'm currently in the same situation (Also in Hong Kong, visiting the US several times a year).
Have you found a management firm that you trust? I'd be interested in getting the contact.
0 votes
I highly recommend you taking a look at our posting below.
Flag Sun Oct 7, 2012
David Cooper, Agent, Los Angeles, CA
Mon Oct 1, 2012
Theproperty management company I use has been in business for 18 years and has 2000+ single family homes under rental. You can have a wonderful investment in rental homes with the right company.

David Cooper Investor 702-499-7037
0 votes
Oakes.lisa%4…, Home Buyer,
Mon Oct 1, 2012
I own a home in Las Vegas. It is very hard. Even though you can hire a property management group the people move out of town so quickly. No one does anything about broken leases so you are stuck with out of pocket cleaning expenses and property management fees that will eat of your profit.
0 votes
You should do it under a lease/option contract. Thant way, you get more money upfront.
Flag Sun Oct 7, 2012
Dean Decker, Agent, Las Vegas, NV
Thu Sep 27, 2012
Davin

My advice would be to hire a management company that only does property management. Being all things to all people rarely works in our market.
We have seen a decline in investor purchases in the last few months because of declining returns. Too many over list purchases with people coming out of pocket over appraisal. Ask yourself, if you can put in 25% - 30% down and have a some positive cash flow, can you bank a couple of months payments for vacancy be ok with the return? Even more, if you take the appreciation crystal ball out of the equation and someone pays off the balance of your mortgage for you does that work.
All of the rest of the speculation would be just icing on the cake if it works out in your favor.
1) Stay way from condos in this market with the association challenges going on.
2) Get a property manager from someone with a long term history not directly connected to them.
3) Common - they should be checking and have standard practices for this.

Dean Decker
Realtor
0 votes
Charmaine Pr…, Agent, Las Vegas, NV
Tue Sep 25, 2012
Hi David,
Most of my clients are from out of state or foreign nationals purchasing in Las Vegas. It is a very common situation and the prices here are hard to pass up. Properties in Las Vegas are relatively easier to manage as landscaping is desert, services in inexpensive compared to Hong Kong.
Price per square is very inexpensive approximately $65-$200 price per square foot depending on the area and the type of property. If done right, you will be confident when you leave your properties here.

I specialize in helping international buyers so feel free to email additional questions.

Hope this was helpful.

Charmaine Prospero
Prudential Americana Group
702-338-6867
0 votes
David Cooper, Agent, Los Angeles, CA
Tue Sep 25, 2012
3) Is remote landlording very common in LV? How do the remote landlord check the status of their rental properties? NO. High risk tennants and high turnover. My rental company does a full house inspection every 6 months just to make sure then tennant knows they are being watched. Also, my repairs are done at wholesale, becuase of the volume business the rental company does. Just picture the AC unit going down on a summer 116 degree day. Your repair cost will be double what a rental company will charge

David Cooper Investor 702-499-7037
0 votes
Wendi Willia…, Agent, Las Vegas, NV
Tue Sep 25, 2012
Hi, Davin.Wu.

In answering your questions, I will try not to beg for your business or discredit the knowledge of any other agents or that which you personally already have regarding the Real Estate industry. I will simply try and provide you the information necessary to make a successful decision and guide you in the right direction to secure a sound investment transaction...for, we are an Investment Brokerage.

How difficult it is to manage rental properties in Las Vegas remotely?:

It is very difficult to do this. As one agent described below; there are many factors to consider such as non-payment, nuisance issues, evictions, maintenance, general upkeep, etc. Unless you can "clone" yourself into 2 or 3 different people, this is virtually impossible for you to stay on top of.

Many companies provide 2 types of services (See our options in the link below), Full Service and Flat Rate.

http://ifindproperties.com/owners/property-management/proper…

Full Service with most companies entails 10% of the gross income. An advantage to this method is that you can kick back and let THEM deal with all the headaches. The disadvantage to this is that you will get the least amount of cash out of your property. Also, one restriction applies in that Foreign nationals must have a EIN# (See our website for more details concerning this matter).

Flat Rate management refers to a Property Management company generally taking the full 1st months rent. An advantage to this is that they will find your tenant and then they pay you directly. You normally have a choice between using your vendors or theirs to have any repairs done. The major disadvantage to this is that YOU get to have all the fun managing repairs.

With our company, we have an additional 3rd service if you decide to list the property under a Lease/Option program:

http://lvpropertysearch.com/category/las-vegas-rent-to-own-homes

With this, we simply charge 50% of the option fee to find a buyer/tenant who wants a lease with an option to purchase your property...no more. This gives you the MAXIMUM cash into your property as your tenants are responsible for most repairs and they pay a monthly premium for the actual "option". In summary, YOU MAKE MORE MONEY.

Under a Lease/Option, you also get better quality tenants with this program because they take care of the home as if it were theirs. There is a very small chance you will lose any money at the end of a lease/option...these are just the facts. Additionally, only about 10% of the tenants we place even wind up exercising the option to purchase. When and if this occurs, we just turn around and list the home again and make more money for you.

1) What area and what type of properties in LV are easy to rent out?

We find that properties located in areas E and F have higher tenant traffic than any others (See map here: http://ifindproperties.com/lvleaseoptions/search_results.php). Not only do our investors choose this area more than any other, more of our tenant traffic also gravitate to them when seeking a home. This is just our personal experience. It could be due to the lack of high HOA fees, if any at all (meaning, a greater return on your investment "ROI"), recreational parks, and easy access to interstates.

2) If I am not around in LV, can the property manager handle all tenant management activities and maintenance?

Yes and No. Again, different companies have their own methods of handling you and your property. It will depend on the company you choose to use and the program under which you subscribe to (answered above). We have programs that take care of it all and are totally flexible to any suggestions or certain specifics you may need.

3) Is remote landlording very common in LV? How do the remote landlord check the status of their rental properties?

For us, approximately 85% of our investors are mostly from Canada, China, or India (out of over 300 properties we currently have in inventory, only about 7% of them are currently vacant). Additionally, we provide weekly updates to all landlords regarding status to their properties, and even have a security protocol in place, implemented to protect those homes that might remain empty for longer periods than others.

If you would like to search for properties, you are welcome to utilize the INTEGRATED MLS SEARCH on our website:

http://lvpropertysearch.com/single-family.html

If you are a current owner of an existing property, be sure to see our video which explains who we are and what we do:

http://lvpropertysearch.com/landlord-videos

I hope we have covered all bases for you. For any further questions or concerns, please feel free to contact us directly via the info below. We are looking forward to serving your needs...

LV Property Search
Info@LVPropertySearch.com

Limestone Investments, LLC.
0 votes
Neal Cook, Agent, Las Vegas, NV
Tue Sep 25, 2012
Hi Davin,

As a property manager I have clients in Canada and in other states of the US. They all agree that they could not manage the property without the help of a professional manager. Remote landlording is not very common in Las Vegas because of the possibility of vandalism and fraud, you really need someone here to make sure everything goes smoothly.

It is the managers' job to handle all tenant management activities and maintenance. Usually a small amount of money is kept on account to handle quick fixes. Any large repair expenses would of course be handled by you providing a credit card number. You would also need to have an individual tax identification number to negate the withholding of 20% of the rent as taxes. I can help you with that process if you don't already have the itin.

The easiest types of properties to rent our are single family three bedroom homes. Newer is better but if an older home is in good condition it will rent too. Homes in the price range of from $135,000 and up are good contenders. As a cash buyer it would be easier for you to make a purchase as sellers seem to prefer cash buyers.

Feel free to ask me any questions or contact me for more information.
Neal Cook, Broker/Salesman, Property Manager
Luxury Homes of Las Vegas
7854 W Sahara Ave
Las Vegas, NV 89117
0 votes
Doug, , Las Vegas, NV
Tue Sep 25, 2012
In my experience a clean 2-3 bedroom house is what most renters are looking for, Ive shown and rented quite a few. I am both an agent and property management company and have many other people i work with that would fulfill your needs and teneats needs. i have good reputable companys for any and all repairs and maintenance. Remote landlording is a common practice in las vegas, i have several clients that live out of state and use our services. depending on what you you would want to check out i would be happy to go by periodically and take pictures if desired. If i can be of any assitance please feel free to contact me.
0 votes
David Cooper, Agent, Los Angeles, CA
Tue Sep 25, 2012
With 35 years investing experience and multi single family home rentals, you can not survive in Las Vegas without a professional management company. Even for one property. If the 10% fee doesn't work in your financing, don't buy the property


David Cooper Investor 702-499-7037
0 votes
Paul May, , Las Vegas, NV
Tue Sep 25, 2012
It would probably behoove you to utilize our management services to take care of your investment- a smooth remote management on your own is all in the initial tenant screening-
That cuts down headaches- but then there is the repair problems that can arise-
Feel free to contact me-
Web Reference:  http://Www.mayteamlv.com
0 votes
Team Beckers, Agent, Las Vegas, NV
Tue Sep 25, 2012
Hello Davin,

There are great difficulties in managing rentals from out the state or country on your own. You really need someone local who can handle any problems or issues that come up. It is well worth the fee to work with a property management company. I would suggest interviewing several and picking the one you feel most comfortable with. Pick a company that has good communication with you and are available for questions. We also have a property division on our team and I would be happy to send you details and costs. For investments, I recommend single family homes; on our website you can view everything in Las Vegas that is available. (condos, homes, etc.)

I hope this helps - let me know if you have any questions.
http://www.TeamBeckers.com
0 votes
John Brassner, Agent, Las Vegas, NV
Tue Sep 25, 2012
If your question is should you have a local property manager, the answer is yes. And they are the ones to handle #2 and 3. To answer #1, I would need to know your investment goals; How much you have to spend and the balance between cash flow and potential appreciation, etc. I generally recommend single-family homes (stand alone homes) in most but not all cases. Contact me if you are serious about investing in Las Vegas. We also have in-house property management.

谢谢

________________________________
John A. Brassner, MBA, REALTOR®
Residential â–ª Commercial â–ª Business Sales
________________________________

Prudential Americana Group, REALTORS®
10777 W. Twain Ave #333
Las Vegas, NV 89135
Cell: 702-808-9816
Fax: 702-995-0488
Email: john@john4realty.com
http://www.HouseOfVegas.com
http://www.CanadaLasVegas.com
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