A fantastic way to build wealth and leave a legacy for your children is by owning rental properties. After getting the property, you might weigh the options of whether you should manage it yourself or hire a professional property management company. At first thought, this may seem like dull work. It involves finding a tenant, collecting the rent, having someone fix a few things here and there.
While it is possible to manage your property, just like you can learn to fix a leaky toilet or lay tiles, doing this seemingly simple job takes time, practice, and a willingness to learn the tricks and tools of the trade.
The big question is: Do you have the time for it? Do you have the time to learn the job, acquire the expertise, do the job right? Are you willing to invest some time in this job or it use to find other investment properties instead? Letting a property management company handle this detail for you frees up your time and gives you less worry.
It helps if you have a personal manager who is temperate when making timely repairs, handling complaints, and providing responsive, friendly customer service with care and patience. This is important because it makes good tenants happy and keeps them renewing time and time again. How many people can say they like their property manager? At RentVest, you might be surprised.
Making your investment property attractive to tenants also helps you avoid repeated turnover, thus saving you the costs and hassles of preparing and leasing the unit every time. The costs associated with it, such painting, cleaning, repairs, and marketing, can be saved and rolled into other investments or used to help pay off any remaining debt on the property.
These property management companies can quickly respond to emails and calls and build relationships with reliable contractors, allowing for fast-track repairs. Companies like RentVest have the professional fortitude to remain calm but firm when faced with challenging issues or complaints about the rentals, which is an objectivity that may be difficult for you when dealing with your own property.
A professional property management company will know exactly whom to call for fast, quality work when your dishwasher breaks, the bathroom faucet needs to be replaced, or the AC unit goes out. This is because these companies often work with or in-house maintenance staff or preferred vendors, helping property owners get a better price than the general public. They invoice you directly, and you can pay through our online portal.
When your property is in tip-top condition, you save money, and you have more opportunities to make more money. A good property manager conducts regular maintenance visits and inspection to catch new issues before they become expensive problems. They might suggest small upgrades that can increase the rent.
Do you really want to run after tenants for the rent? Alternatively, a better question is, do you really want to run after your property manager to collect rent? Of course not. Especially when the rent you get each month is the only way to cover your expenses and profit from your investment.
A good manager will be more effective as a third party and will shield you from dealing with the tenants by enforcing the terms of the lease terms thereby, ensuring on-time payment. These days, some property management companies use automatic online software that helps tenants to pay rent using the internet and get automatic reminders. Tenants can schedule automated payments instead of writing checks, which makes it faster, more convenient, and harder to forget. Ultimately, this means more money in your pocket quicker and more consistently.
You need a complete, accurate record of payments, repairs, receipts and other expenses related to your house for tax purposes. Good property managers keep these records for you and help you track the revenue from your rental business. The company creates this report monthly and gives it to you at your demand. They can even provide you with online access for ease of use.
Rental properties can offer you many tax benefits. The experienced manager will give help point you in the right direction so you can find out what benefits you can get. At the end of the day, you don’t only get an expert who guides you in building your equity and cash flow. You also save more time and money. Wait, you save money by hiring a professional property management company? At $80-$100 a month compared to the cost of one mistake made out of experience, it more often saves both time and costs.