In the current real estate market, many people are taking advantage of foreclosures and low interest rates, scooping up low-priced properties and turning them around to rent for profit. One problem with this: many of us don’t know what it takes to properly manage properties.
For the DIY landlord – especially if he or she has another full-time job – the challenges are endless. Why not hire a professional property management company? Many people think they are losing portions of their profits by paying fees to these companies for services they believe they can render themselves.
If fact, so much goes into property management – especially if you want to do the job right – that hiring a professional company can often save you money, not to mention copious amounts of time. Let’s take a look at just a few of the things involved in the management process to prove this point.
Setting up your leasing procedure is not a one step process. You must advertise your available property; speak with applicants over the phone; perform employment history and credit checks as part of the tenant screening process; make time to show interested parties the property; and hammer out your lease agreement with all the proper contingencies and policies in place.
Maintaining rental properties, especially if you have multiple homes, is more than a one man’s job. You must establish and follow up on regular maintenance plans for all of your home’s major systems; keep the landscape and home’s exterior in good condition; be prepared to make minor repairs when reported by the tenants; network with contract professionals and manage their arrival, services and payment; as well as be financially secure enough to make major repairs and replacements in case of emergencies.
Staying current on the required legal knowledge necessary to professional property management is daunting. You must know the ins and outs of Fair housing laws, and if writing your own lease, you must know how to eliminate loop holes and include legal protection for yourself and your tenants. You also need to know about your legal rights of entry into the property; your renters’ privacy rights; plus the legalities surrounding insurance and evictions.
On top of these items, there are administrative responsibilities of professional property management. Collecting rent is a large part of this, but there is also extensive bookkeeping, tax accounting and insurance logistic to manage.
Imagine working a day job, while also being available 24/7 to your tenants. DIY property management is possible, but if you have multiple properties, are new to being a landlord or have another full-time job, we invite you to give us a call at 866-331-6626 today.
