Information for Property Owners

 

Why hire a property manager?

 

While it may make sense to take the do-it-yourself approach if you’re a handy person, live close to your property, you don’t mind taking emergency or non emergency calls at any given hour and you have extra time in your week to devote to the task, in many cases this just isn’t practical. With this in mind, here are some critical tasks a property manager can help you with:

  1. 1. Setting the right rental rates:
    While looking through the classifieds to see what other landlords are charging for similar properties is a fine way to ballpark your rent price, a good property management company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.
  2. 2. Collecting and depositing monthly rent payments on time:
    If you’ve ever worked in a billing department, you know that securing payment from clients can be difficult, not to mention awkward. Property management companies have efficient, tried-and-true systems in place to effectively collect rent and maintain on-time payments. You’ll find this particularly important if you have a limited number of properties, and collecting payments on time is crucial to maintaining your cash flow.
  3. 3. Marketing and advertising your property:
    Through long experience, a property manager will know exactly where to market your property and how to craft compelling advertising materials—a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.
  4. 4. Finding the right tenants:
    Experienced property managers are experts at finding good tenants, and will take care of all the details, including the securing all criminal background and security checks, running credit reports, verifying employment, and collecting previous landlord references.
  5. 5. Managing tenants:
    In addition to finding good tenants, a property management company will manage all aspects of the tenant-landlord relationship. The property manager will handle both routine and emergency maintenance, take care of routine inspections, and manage any situations where conflict resolution is required.
  6. 6. Managing vendor relationships:
    Property management companies have relationships with maintenance workers, tradesmen, contractors, suppliers, and vendors that it’s almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, they’ll oversee any necessary maintenance projects.
  7. 7. Ensuring that you’re in compliance with housing regulations and property laws:
    There is a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.
  8. 8. Enabling you to invest in geographically distant properties:
    If you manage your own properties, you’re pretty much limited to investment opportunities within a tight radius of your own home. By hiring a property manager, you can take advantage of investment deals in any location you wish.
  9. 9. Maximizing the profitability of your time:
    By having a property manager take care of the day-to-day aspects of running your income property, you’re free to spend your time identifying further investment opportunities or otherwise furthering your career.

Courtesy of:  http://www.allpropertymanagement.com/resources/hiring-a-property-manager/10-reasons-to-hire-a-property-manager-a6.html – All Property Management’s Top Ten Reasons to Hire a Property Manager

 

3 Reasons to Rent Your House Rather Than Sell It

 

Why You Should Rent your House

Today’s real estate market is an extraordinarily hostile environment for individuals looking to sell their properties at a good price and in a reasonable length of time. Low demand coupled with high supply has led to some of the most depressed real estate prices we have seen in recent memory, for both residential and commercial properties. While there is little positive to see in this situation, there are nonetheless opportunities for real estate owners who take the time to thoroughly examine their options. For example, renting, in lieu of selling, is a terrific way for property owners to generate revenue from their properties, and possibly turn a substantial profit!

It’s a Practical Solution to a Bad Seller’s Market With so few buyers and such a backlog of supply on the market, renting has become one of the premier ways for owners to monetize their real estate assets. Renting is an abundantly practical way to ride out depressed real estate prices and generate revenue from a property that would otherwise be idle. As the economy improves and demand for real estate increases, prices are bound to improve. Selling your property too early could cause you to miss out on more lucrative offers down the road. Furthermore, with the right price structure, you could have a tenant pay off your mortgage for you!

Being a Landlord Comes With Tax Benefits

Renting a property also entitles you to a number of tax benefits that wouldn’t otherwise be available. These include: interest deductions, depreciation, upkeep and repairs deductions, professional services deductions, insurance deductions, travel deductions, and more. Essentially, almost any expense that you incur that is related to the upkeep of the rental property can be deducted from your taxes. This makes breaking-even and turning a profit from your rental property significantly easier.

You Don’t Have To Give Up the Security of Ownership

Another reason renting, in lieu of selling, is so appealing to property owners is that you don’t have to forfeit ownership to rent a property. This is valuable in many senses. For example, if you leave your home for an opportunity elsewhere and sell it, you cannot move back into that property after the sale is complete, even if the opportunity elsewhere doesn’t work out and you need to return. With renting, you always maintain ownership and have the property to fall back on if you need it. This security is one of the many reasons renting is appealing to property owners.

Rental properties are good long-term investments that can help you minimize losses on idle properties and even make a profit. Renting comes with a number of lucrative tax benefits that help to reduce the share of your income that goes to taxes. Historically, real estate prices have risen over long periods of time, so there is a reasonable expectation that your property will grow in value as time goes by. Furthermore, renting property provides you with flexibility and a safety net, which are especially important should other sources of income in your life decline. In today’s market, property owners understand that renting is a wonderful way to monetize their real estate assets and protect the value of their properties!

~ Roger D. Eagleton, a real estate investor and co-founder of Five Star Property Management