Everybody is an expert these days, and that’s particularly frustrating when the self-identified “experts” weigh in on real estate matters that they simply have no business discussing. Rumors, gossip, myths and legends…none of these things have a place in your investment strategy. At least not if you want to be successful and make money.
As Las Vegas property management experts, we’ve heard more than our fair share of things that make us scratch our heads. It’s our job to follow the real estate and the rental markets, to stay up to date on all the laws, best practices, and market trends that both get our immediate attention and fly under the radar.
It’s also our job to make sure you have good, accurate information.
Ignore the “experts” who haven’t been buying, selling, and investing in Las Vegas real estate for many years. Stay away from the sensational stories and the doom-scrolling. Avoid jumping on any bandwagons before consulting your trusted industry partners.
And whatever you do, don’t share misinformation with others.
Here are some of the most common misconceptions that we hate to hear about Las Vegas real estate investing.
Myth No. 1: It’s Really Only Worth it to Invest in Short-Term or Vacation Rentals in Las Vegas
No. This is a myth that we’re eager to bust. While there are millions of tourists who come through Las Vegas every year for vacation, family fun, business conferences, or weddings with Elvis, this is still an excellent market for long term residential leases. Sure, you can make plenty of money on a short-term vacation rental in Las Vegas. There are around 300 hotels in the city, most of them well-appointed with amenities such as casinos, spas, restaurants, and entertainment. A lot of tourists stay in one of those hotels. You should also know that the backlog of short-term rental applications is long. So while you’ll make money with a short-term rental, it’s not the only way to go. It’s also maybe not the best way to invest.
Long term rental investments in Las Vegas create an excellent opportunity to earn cash flow in the short-term through consistent and recurring rental payments as well as in the long-term with appreciation. Home values are continuing to rise out here, and there’s a lot of demand. The population of Las Vegas has grown significantly over the last few years. Here are some stats you should know:
- There are 665,640 residents in Las Vegas
- This is a 2.91% increase since the 2020 census
- The population grows an average of .71% every year
That’s a large tenant pool and it shows you that while short-term visitors are never in short supply, there are a number of people who are moving here permanently. That gives you a more stable investment opportunity.
Myth No. 2: Price Your Property High and Then Come Down if You Must
Whether you’re selling the home that you live in, selling an investment property, or even trying to rent out a home on the Las Vegas market, pricing your property too high is a grave mistake. Don’t believe the myth that it’s better to over-reach and then self-correct if you don’t generate the interest that you want.
This type of strategy only creates a longer vacancy for your rental, and it only keeps your property on the market for longer when you’re trying to sell.
Of course you want to get the maximum price for your property, whether you’re selling or renting. But you might find you’re actually costing yourself more by being unreasonably high with what you’re asking. With all of the data that’s available to consumers right now, they’ll know when you’re overcharging. And they leave you alone while pursuing other properties with more accurate and competitive prices.
You can make money without over-pricing your property. Make sure it’s worth the price you’re attaching to it, and take the time to get to know the market well enough that you don’t make an early mistake. You want buyers and renters to compete for your property.
Myth No. 3: You’ll Get Rich Quick
Excuse us while we compose ourselves after a fierce laughing attack.
No, real estate is not a get rich quick scheme. If anyone is telling you that it is, they are either woefully misinformed or the luckiest investor on the planet.
When it comes to buying real estate in Las Vegas (or anywhere, really), it’s not a sprint to the profitable finish line. You’ll have to spend some money, for starters. Your investment will likely require a down payment, and there are almost certainly going to be maintenance costs and renovations that are needed before it’s ready for the market. You’ll have to invest in marketing and screening. You’ll have to have a budget for maintenance and emergency. You might not even make too much of a profit the first year or two in business, and that’s okay.
It doesn’t mean you aren’t making money. You are. But as any smart real estate investor knows, the longer you hold your investment, the more money you’re going to make on it. The key is to keep that property occupied with good tenants who are paying rent and contributing to its care. You need to steadily increase its value over time by making updates and improvements. You need to avoid risks, such as legal missteps and claims or disputes from tenants and deferred maintenance.
Real estate investing can offer you real wealth, but you aren’t going to make all that money overnight. It will take years, and you need to be prepared for that.
Myth No. 4: You Can Waive the Inspection
Please don’t waive the inspection.
This myth gained a lot of traction when the real estate market was crazy and competitive, and buyers were outbidding each other. In an attempt to make their offers more competitive and attractive to sellers, a lot of investors were waiving the inspection requirement, willing to close without really knowing what they were getting.
If you think you’re better positioning yourself for a win by saying no thanks to a property inspection, you’re buying into a dangerous myth.
Of course you want to have the property inspected. You’re planning to spend hundreds of thousands of dollars on this investment. Would you buy a car without checking to see if it had all four tires? Hire an inspector and make sure your offer is contingent upon the inspection, even in a tight market. You’re trying to mitigate and reduce your risk and liability, not invite more of it into your investment portfolio.
Myth No. 5: You Don’t Need a Las Vegas Property Manager Until You’re Ready to Rent
Some people think you don’t need a property manager at all. If you want to earn money, protect your investment, and keep your time your own, you absolutely need a property manager.
The specific myth that we want to address, however, is that you don’t need a property manager until later.
We typically begin the real work of leasing, managing, and maintaining your investment property once it’s time to prepare the home for rent, look for a tenant, and set up all the systems that will be required to keep your investment profitable and in good shape. However, we can be of tremendous value before you even start looking for a property to buy. A Las Vegas property manager can:
- Tell you how much rent you’re likely to earn on a specific property.
- Advise you on what kind of maintenance costs will be required now and in the future.
- Talk about the types of tenants who are likely to find your property especially appealing.
This type of information can make a big difference in choosing an investment property in Las Vegas.
You’re also welcome to leverage our relationships. When you’re investing in Las Vegas properties, you’ll need more than a real estate agent and a property manager. You’ll also need a broker, a home inspector, an insurance agent, and maybe a CPA. You might need our vendor relationships and our legal contacts. We’re happy to share them with you.
Don’t wait until you’re ready to post a For Rent sign to partner with a property manager. The earlier, the better.
Final Myth: It’s Too Hard to be a Landlord
Being a landlord is rather difficult. You have to collect rent, find a good tenant, respond to emergency maintenance issues in the middle of the night, navigate the legal landscape, settle disputes between tenants, collect security deposits, write a lease, enforce that lease…the list goes on.
That doesn’t mean you shouldn’t do it.
Instead, you should outsource it to a property manager in Las Vegas. You might hear another myth: that property management is too expensive. Not really. Especially when you consider all the value and peace of mind you get in exchange for that property management fee. Which is tax-deductible, by the way. Professional property management essentially pays for itself. So if you don’t want to be full-time, hands-on landlords, you don’t have to be.
We’d love to talk through any other myths that concern or discourage you. Please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.
