Before we go into the reasons why you should use a property management company, an important question need to be asked. Do you own a rental property? Professional property management is for those who own one or more residential rental properties. If you’re a property owner, then you have made a good investment. What you have to do next is to properly manage it so you’ll earn from it.
Managing your own rental properties is possible but it can take so much of your time. If you’re a novice in the rental property business, it is highly advised that you hire property managers to get the highest return on your investments. Professional property managers can help by:
Owning rental properties gives you an independent income stream that can cover the operating expenses of the rental and even create wealth for you and your family.
The rent you receive from your tenant can help pay off your mortgage. There is no shortage of renters in the US. As a matter of fact, their number is increasing. Tenants are in every state, city, and town in all of the US.
You will be able to claim significant income tax deductions because of your rentals. Even if the economy collapses, people will always need housing, so you have a relatively low risk. A professional manager can get you a hold of a good accountant and help keep track of P&L’s from your property.
Rental properties are a massive source of passive income, especially if you allow a professional property management company to handle it for you. This income stream lets you focus on other things in your life.
If you do not want to lose your home due to downturns in the market or you’re being forced to sell it, convert it to a rental property. Doing so allows you to move to another house, city, or country without the added cost of two mortgages, while being assured that everything is handled by somebody whom you can trust.
The income you earn from rental properties is not dependent on your age, health, sex or job. Just hire a great property manager, and you’ll get a good return on your capital.
Apart from the many benefits of owning a rental property, there are some cons too that can be avoided with the right expert managing your property.
- You risk the undervaluation of your property. This risk is because any capital loss is magnified when leverage is involved.
- There is also a risk that you may experience vacancies when tenants are not placed properly, which may result in you being forced to sell.
- A tenant can damage your property. Again, if a properly vetting and placement isn’t done, tenants can cause significant financial loss.
- The risk of repairs and maintenance expenses can become significant if the property is not cared for properly. The best approach is to be proactive in repairs and catch them early before they become costly.
- On adjustable Interest rate loans, payments can rise, and this will impact your ability to afford monthly repayments and service your loan. Talk to a RentVest expert who can refer you to a loan officer to get you a more secure mortgage.
Utilizing professional property management alleviates all these headaches from your responsibility. You have instant consultants you can contact to help you navigate past any problems. You can have the confidence to go forward and the peace of mind that an expert is taking care of your house.