Nicklin Property Management Company Updates

Shot of a Bright Cozy Modern Condo with new wood floors, fresh paint and furniture.

One of the most popular questions we get asked is if improvements made to a house increase its rental value? Perhaps the home you own was purchased many years ago and was recently remodeled – with new floors, counters, fixtures or cabinets. Or you purchased the home recently, maybe even brand new, and upgraded certain aspects of it to make it pop! How does this affect rental value?

Homes in Las Vegas are traditionally built in planned unit developments (aka PUD’s), or as we like to call them, tract homes (some call them cookie cutter homes). Homes are replicated by a builder with minor variations. As a result of this, when a rental analysis is performed on a home in one of these neighborhoods, other comparable, or identical model match homes that have leased are used to establish a value. For example, if your looking to lease a home that is a 3 bedroom, 2 bath, single family home with 1500 square feet, we would look to see if there is another model match in the neighborhood that has leased recently. In many neighborhoods, we can usually find a handful of model match homes. And due to this, because we are working with a similar size home, rental values will usually be within a specific range – not spread apart too far.

How, then, are upgraded features handled that may make your home stand out compared to others?

First, upgraded features definitely have advantages. They make your home stand out and make it desirable, allowing, in many cases, for it to rent quicker. How about rent value? Rent value can typically be increased, however, within reason. A home priced significantly above other comparable homes in the neighborhood may appear overpriced, even if it is highly upgraded. Consistent rental rates within a neighborhood play a significant role to tell a prospective tenant about what is competitive in a neighborhood. Of course, certain upgrades add solid value. For example, a pool can add rental value.

There are some additional factors to also consider. If you find yourself in a depreciating rental market, you may find that adding value is more challenging. An over supply of rental properties on the market can also affect this. The general economy plays a role as well – unemployment or decreasing wages for example.

So, whats the point of this article? Upgrades within a house make it more appealing to a prospective tenant to rent, even adding modest rent value. However, in many cases, upgrades do not add significant rent value above the rental range of a neighborhood or area. Depending on the economy along with supply and demand, this can also change. So, before you upgrade your home for the purpose of renting it, calculate to see if what you have in mind will be a good return on your investment.

Contributed by Nicklin Property Management. Opinion article reflects the views of Nicklin Property Management and is based on our years of experience.

It’s hard to believe that even though a pandemic is in full swing, unemployment is gripping the country and the price of goods is rising, the Las Vegas real estate market was up…again…during the month of July 2020. The average price of a house in the Las Vegas valley is $330,000. What is contributing to the rise of real estate prices?

For one, the Las Vegas housing market did not bubble in the preceding years – gaining value that it could not support requiring creative financing for the average buyer to qualify. While market value has grown significantly over the last 7 years, it was also rebounding from historic lows after the great recession. The Las Vegas economy grew at an unprecedented rate, creating many jobs and diversifying considerably, leading to an influx of new residents and folks willing to get back into owning a home. Interest rates dropped to historic lows as well over the last few years, making owning a home affordable for many. This spurred our local real estate market, yet it did not over inflate prices.

What about today? It is true, that the pandemic has taken a significant toll on local jobs – as a matter of fact, as of June 2020, the unemployment rate was 18% (according to bls.gov). However, this still means that many have retained their jobs and employment. Interest rates have continued to creep lower and lower, adding to affordability. Many first time and really, second time home buyers want to enter the market and take advantage. Yet, inventory is still tight – the supply of available homes, especially in the price point of what most can afford, is limited. As a result, this is driving prices higher.

What can we expect with the market? So far the market has gone against what many thought it would do – depreciate. If inventory remains about the same, we can expect relative stability with home values and modest appreciation. If we end up having more inventory come onto the market, market value may change some. However, interest rates continue to remain low – and it appears they may stay like that for the foreseeable future. Perhaps now is a good time to explore buying a property!

Contributed by Nicklin Property Management.

It’s no secret that Phase two restrictions due to COVID-19 have been extended – for an unknown period of time. Many Realtors who were planning on showing tenant occupied homes (which is restricted under Phase Two restrictions) that have been listed for sale were eager to start showing them on Saturday, August 1, 2020, when the Governor’s directive would of expired, only to find out that it was extended Friday evening. So, what can you do during this time?

If your property is leased and your tenant is paying rent, consider yourself fortunate! Perhaps keeping the home rented and waiting this time period out may be a possibility until restrictions are lifted.

If you absolutely need to sell a tenant occupied home, forging a good relationship with your tenant may be your best option. Current direction from the Nevada Realtors Association to Realtors states that due to restrictions to mitigate COVID-19, you can work with your tenant to obtain pictures or video of the home – tenant provided that is – so that you can have photos for your listing. You cannot force your tenant to do that, however, it is an option. Three dimensional property scans, virtual tours and virtual staging can also be used (Source: nevadarealtors.org).

If you can generate an offer and go under contract, most transactions can still take place while following directives and safety measures. COVID-19 disclaimers have been made available to Realtors in order to handle transactions during this unique period of time.

Of course, investors are scouring properties these days as well, looking for a rental property to invest in. So, there is still opportunity to sell the home. Granted, it may be more challenging. So, if your rental property is generating monthly income, perhaps consider waiting things out – if it meets your plans and goals. Otherwise, anticipate a sales transaction different than what you perhaps had in mind.

The Las Vegas summer is in full swing! With many days already over 100 degrees, some over 110, the heat will continue to build – and so will the humidity! Monsoon season is already here and as a result, humid air from the south will engulf the valley, adding to the uncomfortable feel of summer. Heat such as this can be dangerous! What can you do to keep you and your loved ones safe? Here are some tips:

1. NEVER leave your children in the car by themselves as you run an errand! Leaving windows cracked open does not help when temperatures are extreme outside. The heat and temperature build quickly when no air conditioning is on inside of a car. Additionally, leaving children by themselves is never a wise decision.

2. NEVER leave your pets in a car either. They are also susceptible to the heat and can easily have heat related issues.

3. Drink plenty of water! During hot days, our bodies lose a lot of water. So, drink plenty of fluids to stay hydrated – at least 8 cups of water per day or more! Take water with you to have it easily available. You might even consider having a cooler with you to keep those bottles nice and cool.

4. Leave water out for your pets outside – and even more importantly, make sure your pets have a climate controlled area to access.

5. Ensure that you change your AC filter regularly inside of your home to give your air conditioning system efficiency and prevent unnecessary repairs. No AC in the summer months can be brutal and take a prolonged time to repair as HVAC technicians are busy. So, give your air conditioner a fighting chance!

So, take necessary precautions now and before you know it, the cooler breeze of fall will be here!

An eviction will lead to a vacancy and additional costs

The State of Nevada Governor’s Directives that put a stop to evictions shortly after the pandemic began will soon be expiring. As a matter of fact, all directives that postponed various real estate processes will end beginning September 1 (unless the Governor extends them). So, what can you do to prevent an eviction and further costs if your tenant is behind on rent?

The answer is negotiation. Many tenants have ended up in a difficult financial situation due to shut downs and a faltering economy. Even now, reports of casino’s laying off portions of their workforce is becoming a reality. The truth is, the economy will take time to recover to the strength it was previously. So, negotiation is a very good option. Finding out if and when a tenant can catch up on a balance owed is key. If a mutual agreement can be reached, it would be best put in writing.

Why is negotiation perhaps the ideal option? Because you have to take into consideration how much an eviction and vacancy will ultimately cost you. Beyond the court and eviction costs, how much work will be needed to the house? Even if it is minimal, there will no doubt be some wear and tear. Further, not generating any rent means that the mortgage payment is yours to bear in its entirety. Negotiation may offset your expenses, even if it doesn’t cover them all. Of course, the time frame for how long a balance should be paid off in is up to your discretion. And if the negotiated amount is not paid, then the next step of filing an eviction can always take place.

It is best to remember that many have ended up in hard times. So, if your experiencing a situation where rent has not been paid or underpaid, your not alone. Finding a balance is key during these trying times and negotiation may be in your best interest and also your tenants.

Using plants to decorate in and around your home is an excellent way to add color and a natural feel.  Given the variety of plants, the options and choices are really endless.  Here are a few simple ideas to help give your home an inviting and pleasing look:

  1. Colorful plants in your yard: We all know that the Las Vegas summer months are hot – very hot! So, not every plant is suitable to be outside.  Flowering plants, for example, may lose their flowers with intense heat.  So, if your looking for something with flowers that can withstand the summer heat, why not explore lantana’s.  Lantana’s are a great desert plant and bloom during the spring and into the fall.  They can be planted around trees, along walkway’s, planter beds or even raised gardens.   You can hook them up to your regular irrigation system – they do not require more than the usual amount of water.  They also come in a variety of different colors – white, orange, yellow, red and even purple.  They are inexpensive to purchase at your local nursery.  They grow quickly, are drought resistant and give you beautiful colors to admire through most of the year.

  2. Plants inside your home: If you have an area inside your home, perhaps a corner in your living room, and not sure what to do with it, consider making it into a plant corner! You can purchase a variety of plants in different sized pots and arrange them in the corner (Make sure that you have a pot base to catch residual water to avoid damage to your floor!). You can use a wooden stool as well as a plant prop, which will add nice variety.  Visit your nursery for a nice selection of suitable indoor plants.  Make it an interesting area in your home with different types of plants – different sizes and different textures.  Your guests will be impressed!

  3. Decorate your window shelf: This may be the simplest of ideas to add some natural beauty. Perhaps you have a window in the kitchen or bathroom and want to add some color to it.  Consider some small pots with easy to maintain indoor plants, perhaps succulents.  A clay pot with a vibrant succulent is a designers favorite.

So, get creative with adding natural beauty to your home.  You might be surprised the difference a plant or two can make.

Contributed by Nicklin Property Management.

As the entertainment capital of the world, Las Vegas has many concerts and residencies by popular musicians and groups, such as Celine Dion, Rod Stewart, Elton John and even the Backstreet Boys! However, did you know that a number of popular singers and groups had their start right here in Las Vegas? Consider just a few:

The Killers: Formed in 2001 here in Las Vegas and one of the most popular rock bands in the world have headlined major venues all around the world and have albums that have advanced to the top of the charts.  Brandon Flowers, lead singer, is from Henderson NV and continues to reside in the city.

Imagine Dragons: Having its start in 2008 and rising to fame within a couple years after, the band had its breaks in Las Vegas, hometown of lead singer Dan Reynolds. The band recorded their first songs in Las Vegas and quickly rose to popularity with many hits, currently being an international sensation and winning a couple of Grammy awards.

Panic! at the Disco: Formed in 2004 in Las Vegas, the band went on to fame with a number of popular hits, winning an American Music Award, Billboard Music Award, nominated for a Grammy Award and winning iheart Music Awards.

Ne-Yo: Also known as Shaffer Chimere Smith, began his musical career right here in Las Vegas. He is a singer, songwriter and record producer. He is a Grammy Award winner and reached the top of the Billboard 200.

Other notable musicians who had significant success here in Las Vegas include Wayne Newton and the band “The Cab.”

Perhaps you have seen some of these notable performers walking the streets of the city.  Yes, while Las Vegas attracts many aspiring musicians, a number have had great success and are proud to call Las Vegas home.