Property Management Class is Now In Session
Being a landlord is a dream come true for many Americans.
It’s no secret that real estate is among some of the hottest investments one can partake in and it has been this way for quite some time with no signs of slowing down.
In fact, some studies have shown that 90% of the world’s millionaires generate some sort of income from investments in real estate.
But unlike other investments, stocks or bonds, for example, real estate can be a lot more hands-on from the position of the investor:
- Dealing with tenant issues and maintenance.
- Marketing your property.
- Typical business practices such as HR, accounting, procurement, etc.
The life of a landlord can be complicated and involved, to say the least, but there are ways in which landlords can help themselves while simultaneously helping their tenants.
You Can Save Time or Money But Not Both
One of the biggest parts of any investment is that there are tradeoffs involved in virtually all of them.
The fact is, if you are capable and willing, as a landlord you can provide a lot of the routine services your tenants will require over the normal life cycle of a property for a fraction of the cost…but you also have to make yourself available to create those solutions yourself.
Even if you are a regular Mr., or Ms., Fix-It, are you prepared to take off from your child’s baseball game three towns over to deal with a flooding kitchen on your first Saturday morning off in 3 weeks?
Does your annual beach trip really get better with phone calls from your tenants complaining about the neighbor’s dog?
These are small issues in comparison to something larger such as a blown air conditioner, burglary, or heaven-forbid some sort of accident.
Going beyond minor and major fixes and disputes, other issues can arise that you may have to deal with and the fact also remains that you cannot be everywhere at once.
Are you limiting your investments to only one complex or do you have multiple properties?
Okay, so you’re extremely handy, are you “20 units to monitor handy”? 50? 120?
Hiring someone to properly manage your properties and keep things moving smoothly can help you reduce stress and save time. Over the short term, you may save a few bucks; however, by hiring the right property management group who understand the correct principles of being a good landlord, you can also sustain your business and have exponential growth. Losing money on your investment upfront can make you more money in the long run.
Be Sure You Know Your Tenants
We can summarize this entire section in four words: thoroughly screen your applicants.
These are the people, strangers in many cases, who are going to be spending more time than anyone caring for and living in your investment. Do you trust them?
Save yourself time, money, and a plethora of problems by ensuring you have quality tenants. This is not an area for shortcuts because ultimately, the damage that can be created by bad tenants will fall on you and harm your overall investment goals. Tenants who are not properly qualified have the potential to:
- Cause property damage, leaving you financially in disarray due to costs and opportunity costs associated with rectifying these damages.
- Discourage good tenants and potential tenants by creating a less than favorable living environment for others around them.
- Cause a lack of income and harm your pocketbook by failing to pay for their financial obligations.
Qualifying the right people is not only a service to yourself but also those within or around the property and ultimately the very applicants themselves. The last thing any landlord truly wants to do is evict a tenant. It is a lose-lose situation for everyone involved. Remedy this scenario by eliminating it completely and have defined guidelines with firm but fair implementations that fall within the confines of the law.
Be Sure You Can Find Your Tenants
Part of the problem with knowing you have the right tenants begins with knowing how to find the right tenants in the first place.
Properly marketing a property can be a challenge at best and a nightmare most of the time. How do you find the right candidates for your property?
What price point will correctly compete within a set marketplace?
What are the ever-changing conditions surrounding your market whether it be amenities, future developments, natural disasters, competitor pricing, etc.?
Staying on top of these trends and the various factors that will provide a target market from which you can locate and identify qualified candidates is not an easy job. It is important that before one jumps into the role of a landlord that they audit issues such as marketing the property and determine if they are in fact up for the task or should consult with a property management partner.
Stay Educated: Fair Housing Laws and Technology
Dealing with the human elements surrounding your property and potential maintenance issues is complicated enough but those issues unfortunately only compound when we throw in the government and laws that can affect your investment.
Be sure to brush up on the legal protections applicants, tenants, and your investment are afforded. Even landlords who are not doing things intentionally immorally can still be out of code with the accordance with the law.
Technology is also always growing and evolving. Take advantage of automated systems and various methods of payment to help streamline your business and provide better results for your return on investment.
Proper Property Management Rewards You
Investments always carry risk in some form and a cost of some sort.
Be sure to study first and continue to research what it takes to be a good landlord before jumping into the deep in and causing your investment to drown. At the end of the day, you are dealing with people and the idea is not to simply be some empathyless robot; however, setting up boundaries and establishing a well thought out course of action can help your investment stand the test of time and provide a tremendous line of revenue.
Looking to save time and have a qualified team of experts handle the dirty work?
The Realtors at Key Realtors have been successfully navigating the waters of property management for over 10 years.
Hiring a property management team, specifically, the correct team can provide many more benefits for you or your company:
- Creates a buffer between the landlord and the tenants.
- Can provide expert advice and techniques for handling all aspects of running the property.
- Increase your overall revenue over time by finding better tenants, ensuring payments are met and implementing and collecting all additional fees.
Contact them today and apply for some of the most qualified property managers in the Humble market.