Managing a rental property is not an easy task, but not all landlords need a property management company. There are some cases that the landlord still have ample time to manage the property himself. However, if you think you are having a hard time managing your rental business full time then it is wise and sensible enough to hire a property manager to manage your rental business rather than jeopardizing your work and making unnecessary mistakes, instead of spending quality time with your family.
Therefore, landlords should ask themselves several questions whether or not they need a property management company.
First question is regarding the number of your rental properties you have. Take note that owning rental properties is not just collecting rent every month. There are other things that you need to do like maintenance check, repairs, paying taxes, etc.
Owning more rental properties, condos, or Baltimore MD Homes means you need more time to manage each one of them. If you think you can spend as much time with managing your properties then you don’t need to hire a property management company, but if don’t, your rental properties deserve a caring property manager.
Managing a rental business can be a stressful job. With all the repairs, different personalities of your tenants and their behaviour and various issues that will arise, you will surely have a hard time handling the stress. For one, stress starts upon accepting a tenant, although it doesn’t seem like that at the frist glance.
You don’t have any access to their backgrounds and just relying on their angelic faces or kind words is far from enough. Taking care of your rental business requires time not only for doing the repairs but also for your tenants. You need to make immediate action when a tenant reports a problem at any time of the day. So are ready to be available for your tenants even in the wee hours of the morning? Think twice.
If you have a big rental business whether it’s residential or commercial, conducting a background check is too difficult. Hiring a property manager however can ensure that your property is in good hands. This is efficient method of taking care of the property in the case when you are unable to perform it by yourself.
Ask yourself whether your rental business needs a property management company. If you can handle it all by yourself that would be great, considering the fact that you need to pay property management companies for their services. But if you think you can handle several multi-family homes or condos in varying states then there is no second thought that you need to hire a property manager.
As it said, managing a rental property is very complex process and it requires a lot of attention and dedication, alongside with the huge amount of patience. Sometimes you will encounter really hard persons, which could cause potential problems in the rental property. In order to pull out best outcome, sometimes is good to ask for a professional help – that is why you have property managers.
Many people look upon property investments as means to build up investment portfolios that will yield potential good profits in the long term. Buying low and selling high is the secret behind many highly successful investments. In order to invest in properties that will give lucrative returns, it is necessary to understand the basics about investing in this real estate sector.
Property Investment Tips
It is always beneficial to learn about the basics of real estate investing from experts in this field. These people have the necessary experience and information about the properties that are in demand. But it should be noted that it is preferred that such people should be reliable or known people who already own properties in the areas under consideration.
Investing in the best affordable location will enable the investor to get an idea of the types of tenants that will come for enquiry. By due research in the vicinity, he can fix a suitable rent. It will be best if the property is in a popular location because then the value of the property will get appreciated as time progresses. If one buys in areas where the rent is high and the properties in the market are few, it could be considered as an ideal situation. At any cost one should not go for good properties in rural areas/ bad locations/ areas that are known to be weak rental properties in terms of profits. For the same, it is very necessary to spend time doing ample research of the market and searching for suitable real estates.
The property should attract tenants so it must be clean, decently painted and it must present a cheerful, welcoming atmosphere. The property chosen should be such that the numbers of rooms/ bedrooms/ floors etc. are preferred by tenants. This depends upon their necessity and the fast emerging trends as well.
Generally over the short term, properties do not yields sizeable profits. It is only after a substantial period of time (approximately twenty years or more) that the rental property value will enhance and give potential gains.
It is necessary to be ready with the down payment (that will be required in cash) to the tune of 25% of the cost of the property to be purchased. A successful real estate investor is one that is equipped with all the necessary finances so that when he sees a good opportunity, he can complete the deal immediately.
Due consideration of other factors like maintenance of the property, property taxes, utility charges, insurance, etc. along with the expenditure for ownership of the property is necessary.
The investor must be prepared with sufficient cash in case the property remains vacant for a few months, during which time, he has to pay for its necessary repairs and maintenance. A minimum of approximately six months of mortgage payments must thus be saved up.
If a property in a demand-area is not preferred by many because of certain reasons which can be easily fixed, such a property can be examined. The investor can do the necessary repairs and refurbish it so that its value gets enhanced. It will also yield potential good profits. It is useful to keep the contact numbers of the plumbers, electricians, contractors, painters and other necessary people ready so that one can easily access / contact them when the need arises.
Properly chosen and well maintained properties go a long way in generating passive income. Such investments pay off well with the tax benefits associated with them. Most investors utilize their real estate profits and invest them in further properties. Due to the same, many people get additional income. However, it all depends upon the real estate market. If it is booming and healthy, there are a lot of expectations associated with this sector.
To rent or to buy a property is a lifestyle choice for everybody. There are pro’s and con’s to both sides of the argument but this is not the time to go down that road. This article is specifically aimed at the rental market and the pitfalls and the fears that renters are faced with.
The number one fear amongst all renters seems to be the fear of the landlord. Most rental properties are dealt through a broker or middle man who normally is the real estate agent or realtor. However many tenants deal directly with their landlord on a whole host of issues. This relationship is often strained and the two parties can often clash.
On one side the owner of the property sees the tenant to be picky over trivial matters and on the other side the tenant is often frustrated with the landlord’s lack of action. Quite often the tenant is just too scared to ask for repairs for fear of annoying the landlord and the chance the rental agreement might be terminated.
Secondly there is a valid fear of inheriting noisy and unruly neighbors. While most relationships between neighbors is fine and everybody lives harmoniously together there are occasions when a renter will have to deal with somebody that like to push their buttons.
A common squabble is that of noise, and although the situation can be intolerable and hard to live with some renters are afraid to confront their noisy antagonists. This can lead to a very poor quality of life and unhappiness.
NON RETURN OF DEPOSIT
A very common problem among tenants is the nagging dread and fear of not getting the deposit back. Deposits are a huge expense for renters and it is money that is static and cannot be used. But they are a protection for the landlord for any damages incurred whilst the tenant is living in his property.
However this fear is almost wholly negated if a proper contract is taken out at the start of the agreement and is witnessed by a third party. It is difficult having somebody sitting on your hard earned cash but in reality it is unavoidable. Leaving the property spotless when you leave is a good way to ensure you get every dollar back.
A very valid fear and probably the most common cause of arguments between a landlord and his tenant. After all, landlords do not want drunk tenants to come home and destroy the brand new best kitchen faucet for example.To help document that a renter has a problem in the property it is a good idea to put the complaint in writing.
Just chatting over the backyard fence or on the phone is easily deniable by a landlord that an approach was ever made to him with a request for maintenance.
If the problem persists and it is a serious matter – eg no electricity, then the renter can ask for the property to be assessed. The landlord will have to comply with this request.
SECURITY AND FIRE
Finally many renters are scared exactly how safe they actually are in the property. Be it from a security point of view or should the building catch fire.
These fears should be voiced before a rental agreement is even signed. If the tenant is unsure of his safety then no matter how fantastic the apartment or house may be these issues need to be addressed before occupancy.