We offer a full range of property management services tailored to you as an investor,
homeowner, or landlord. We have an extensive porfolio of single family homes,
townhouses, condos, and apartments in the Houston area. Lakefair Realty and Property Management
Phone: 832-759-4629 Lorraine Bowen, Agent #737237
832-541-3796 James Bowen, Broker #587126
E-mail: [email protected]
[email protected]
La
kefair.net
Lakefair.net/short-term-rentals
TENANT COLLECTION FEES
First month’s rent ONLY.
-INCLUDES:
Matterport Dollhouse Virtual Tour
Photography
Lockbox placement
Listing to dozens of websites
Move out/Move in pictures
Expert opinion on renovations
Tenant screening
Competitive market analysis Pro Report
SHORT TERM RENTALS:
25% Management Fees
-INCLUDES:
Assistance setting up with interior designer and security system
Listing
Photography
Matterport Virtual Tour with Dollhouse
Accounting
Competitive Market Analysis
24/7 Hosting/ Responding to inquiries
Management with cleaners, maintenance, and lawn service
Guest book laminated in binder
Dynamic pricing
Requests handled for damage
THE BENEFITS OF USING LAKEFAIR REALTY AND PROPERTY MANAGEMENT
• No hassle management
• Automated owner statements
• Online owner portal access
• Industry leading marketing tools
• 24/7 maintenance request handling
• Prompt response to tenant requests
• Low vacancy rate
• Low time on market
• Industry specific local knowledge
What we do as your Houston property manager:
• Fill vacancies
• Advertise your rental
• Handle tenant inquiries
• Background and credit investigations
• Application processing
• Lease signing
• Full service repair
• Rent collection
• Accounting
• Coordinate Evictions
MARKETING
Marketing is key to successful rentals. Lakefair Realty and Property Management provides an
expert market analysis for each property we manage to maximize your return on investment. TENANT SCREENING
We conduct extensive screening on all tenants and handle everything from moving your
qualified tenant into their new home, to rent collection, to handling maintenance issues. RENT COLLECTION
We make sure you get paid on time, every time. You no longer have to worry about rent
showing up in your bank account because we take care of everything so you have to worry
about nothing. MAINTENANCE
We conduct inspections upon move-in and move-out that include documentation of the
property’s condition and ensure all maintenance issues are addressed in a timely manner. FINANCIAL REPORTING
With our detailed financial reporting tools, it's never been easier to keep tabs on your
investment. Log into your owner portal to view statements and stay in tune with how your
investment is performing. EVICTION PROTECTION
In the unfortunate event that a tenant needs to be evicted from your rental, we will cover the
cost of a simple uncontested eviction (some restrictions apply) and ensure your investment is
protected. Houston Area Info
Greater Houston Area is a thriving community with tons of growth. It is one of the few
areas owners can expect good returns on their properties and tenants have many job
opportunities. Areas We Serve
• Houston, Katy, Cypress, Richmond, Rosenberg, Sugarland,
Spring, Tomball, and Pearland
Management Fees for Full Service
• Single Family : 80 a month
• Commercial 4%
• Multi-family 40 a month per unit
• Assisted Living 4%
•Short term rentals 25%
James E. Bowen, came from the energy industry. He was the vice-president of
structuring for a leading trading company for 15 years. He left this career 16 years
ago to begin building, investing, and managing commercial and residential real
estate. His experience is very multi-faceted and will be able to find, construct, and
manage a wide variety of projects. [email protected] 832-541-3796
Lorraine Bowen, is an expert in the section 8 and short term rental market. She is able to provide three way competitive market analysis that will compare across the three markets and advise on the best investment opportunity out of the three. In order to optimize her client’s portfolio, she provides them with a weekly investment report. [email protected] 832-759-4629
SHORT TERM RENTAL FAQ
How much more rent should I expect to get? Typically the owner of the property will receive close to double the rent they would receive. Are there areas of town better suited for AirBNB? Any area works because folks have reason to stay short term for a variety of reasons and locations, however the larger the metro area the more liquidity you will have. If I was purchasing a home right now for airbnb I would focus on Spring, Spring Branch, Energy Corridor, Rice Military, and Midtown. There are other locations that work as well, but at a lower cap rate compared to the purchase price. What kind of clients do you receive?
40% of our clients are business travelers, 10% are local folks temporarily displaced, and the other 50% are tourists. Business travelers usually are specialists being brought out of state for a week or two for a project. The displaced locals are someone getting remodeling done on their home, waiting for their new home to close, etc.... Tourists are usually folks coming in town to visit family, attend a wedding/funeral, or going to a local convention. They are all screened and we haven't had any significant issues. What are the occupancy rates like? We have been 80% to 90% full. The rent numbers discussed in question 1 already factor this into the airbnb numbers but not the long term rent. A more fair comparison would be to decrease the long term rent by the vacancy since this has already been done for the airbnb numbers. Are the maintenance costs more expensive? The answer to this is yes and no. With a long term rental you typically rent it for 1 to 10 years, and the tenant moves. Many times when they finally move it can be an expensive remodel. The nice thing about airbnb is the home is constantly kept fresh, so there isn't any significant remodels. The extra cash flow keeps the house maintained very well. There is also a host guarantee that pays for broken items. Who pays the hotel lobby and sales taxes? The booking channels charge the customers and pay this for you. Is AirBNB a fad that will go away? There has always been a huge demand for renting homes in a time frame below 12 months, however nobody was doing it. AirBNB has a established a market place to satisfy this demand, and the demand is much higher than anyone anticipated. Many other commodities (oil, gas, electricity, etc.) had similar evolutions where it use to only trade as a long term contract, and a massive market opened up once they started trading daily and monthly. What are the additional costs? Furniture and supplies upfront will cost between 12k to 20k depending on the home. You will also tend to want to do a more high end remodel on a case-by-case basis. You also will be paying for lawn mowing, electricity, gas, and water/garbage. Cleaning fees are paid by tenants however. Lakefair charges 25% instead of $80. This has already been factored out of the airbnb figures, but not the long term rent. Is it always better to do AIRBNB? High crime/low quality neighborhoods can risk you getting poor rating on airbnb and should be avoided. HOAs might prohibit you from being airbnb and should be avoided. Are the profits consistent? You will get a continually higher profit from airbnb however on shoulder months you will get less, and vacation months you will get a spike. Typically the shoulder months are still much higher than normal rent. How do you decide what to charge? Do you vary your rates? We use a dynamic pricing tool for varying rates. This tool tracks market data to determine when you should spike your price, and when you should decrease it to stay occupied. Like the hotel industry it is market demand based and pricing needs to be adjusted to maximize profits. The minimum, base, and maximum rate is adjusted by us along with the orphan day prices, minimum weekend price, last minute pricing, and discounts for longer stays to maximize profit. As an owner, will I take on the day to day obligations/get more phone calls? Only if you want too. With the owner of one of our properties for example we rarely call her more than once a month and usually its about her draw. Who pays the cleaning fees? We charge the customer this up front. In some cases we charge more than we spend and its a tiny profit center. I do not think you should factor this into your expected profits though it comes and goes. Who pays the booking channel fees? The customers are charged this upfront it will not affect your profit. Some of our other booking channels charge us instead of the guest so we add a percentage on top of the normal rent to accommodate this. Anything else about short term rental investing I should know? AirBNB changes the optimum price point for a return. If you plotted return versus purchase price in Houston for long term rents typically the best returns are in the 150k to 225k range. If you do this for airbnb the best returns are from 325k to 500k. This is an opportunity because there is less investor competition at the higher end, and typically less remodeling necessity (which is crucial with material costs increasing to 2x to 3x in the last 12 months). Lakefair Realty and Property Management
Phone: 832-759-4629 Lorraine Bowen, Agent #737237
832-541-3796 James Bowen, Broker #587126
E-mail: [email protected]
[email protected]
Lakefair.net
Lakefair.net/short-term-rentals
