South Padre Island Investment Property by Long Distance.

Home Away From Home
Our world is shrinking. That’s Right! Places may still be the same distance from each other in terms of mileage, but influences such as the internet and a growing mobility within our society have made those distances diminish, at least within our minds. Buying investment property has become easier than ever.

And partly because of this, property owners and investors no longer try to build a “monopoly” by having three adjoining properties along the same street. It is certainly acceptable, and in many cases even advantageous to own “Kentucky Avenue” and “Park Place”.

It has become increasingly easy to search and find excellent investment opportunities from coast to coast and beyond. A mountainside cabin or an oceanfront property may be available at a STEAL. a true investors dream. But buying investment property that is not next door often presents a unique set of circumstances that must be considered before taking possession of a newly acquired home.

Now don’t let that stop you from snatching up that once in a lifetime opportunity, you just have a bit of homework to do. In preparation for managing such a property, you will need to determine if you will be looking for a tenant that is ‘long term’ (usually longer than 30 days) or “short term, which can be for as little as a one night rental.

Finding the right Tenant
Long term rentals can often be done ‘long distance’ rather easily if you are able to locate and screen potential renters and show the property until the perfect match comes along. Once your property has been rented, payments can be handled electronically or by mail. Care, upkeep and repairs to a rental home can be negotiated as part of the renter’s responsibilities.

Making the decision to locate a long term renter can eliminate many of the headaches of owning a property long distance. This is based on the simple fact that someone with a twelve month lease will want the home maintained and kept in good repair because technically, as long as they are paying the lease, it is THEIR home.

Maximizing Profits
But what if your investment is located in a vacation destination such as an oceanfront property? It’s very likely that the best potential for income will be from renting your property for one or two nights, or by the week. Short term rentals are often found to be much more profitable depending on your selected location. But who will change the sheets?

That’s right, short term rentals require a house keeping service. Then there are factors like check-in, deposits, routine maintenance and a whole host of issues that have to be considered. It’s almost certain that your weekend vacationers will not want to be cutting the grass and this is where a local property management service may come in handy.

Property Management
The help of a management company may be an absolute requirement for your situation and you will find many options available. Some will handle only marketing and guest registration, while others will be there to change those sheets, air conditioner filters, light bulbs AND cut the grass!

It will be very important for you to do your research in locating the best possible fit between you, your property and the management personnel. There are many variables that come into play; everything from snow removal on sidewalks to clearing a beach access for swimmers. If you are not there to handle it, you will need to know that a responsible party will be.

In spite of the vast differences a particular locale can present, there are certain elements of property management that are standard for any area. Here are a few questions you will want to ask when interviewing a potential property management service.

•  How are you going to market my property?
• How does your accounting system work and when will I begin receiving any earned income from the property?
• Do I get a detailed monthly account statement?
• What services are provided by your company?
• Light bulbs? Air filters? Smoke detector batteries? Routine pest control? Landscaping?
• Who will receive and pay utility bills?
• What if I want to come and stay in my own home?
• Will tenants be charged a cleaning fee?
• Who decides how to price my unit?
• Are there seasonal rates?
• Will pets be allowed?
• How many guests will be allowed at any one time?
• Is the management service insured?
• How and when is a damage deposit returned and who will inspect the unit for damages?
• Is there an annual of semi-annual “DEEP CLEANING” of my property?
• Do I receive a discount or referral fee if I send clients to you that specifically book my unit?
• Is there a discount for multiple units?
• Are any rules given to the tenants such as “no smoking” or “no glass around the pool area”?
• How are bookings handled if I sell my unit during the contracted time-frame with the rental management company?

Sign on the Dotted Line
but ONLY after you have negotiated for the best deal you can get. Companies will ask from 10% to 50 % or your rental income depending on the level of service that they have provided. You may find that their fees are non-negotiable, but it will never hurt to shop around and ask for a better rate depending on the desirability of your investment property. Remember that they may need YOUR property as much as you need THEIR service!

Buying investment property can be made easy when your property management needs are satisfied before the sale of your new oceanfront property is complete.

If you have an interest in homes for sale in South Padre Island or a condo for sale in South Padre Island, we can help find the right solution to suit your needs. As you begin your search, you will find there are many investment properties for sale all over the country. The South Padre Island realtors in our office are readily available to help you in reviewing the oceanfront property and coastal homes for sale here on the Island.

Mark Wesley
Associate Broker
Alice Donahue Real Estate