Many people get into real estate for the ability to make money on their properties via renting them out, with a majority of landlords being individuals renting out properties they own. Over a third of people rent their homes, so it's wise to get into real estate for rental purposes. When there is a surplus of people wishing to rent, landlords have the ability to make more money on their properties by charging higher, more competitive, rental rates.
Still, it's not always easy to be a landlord, even if you only have one property to rent out. This is where property management comes in. Learn what property management is, why you need it, and why the investment is worth it to you. As a landlord, you have a lot of work ahead of you to make money on your real estate investment, so having access to helpful resources is beneficial to you in many ways.
What is property management?
Property management is the act of watching over the goings-on of a rental property. You can do your own property management by overseeing everything that revolves around your rental property, or you can delegate these services out to a professional company or an individual.
Property management companies do many things for landlords, including screening applicants for properties, collecting and managing rental payments, checking on properties while they are occupied, and arranging for cleaning and other tasks when rental properties are vacant.
Why do you need property management?
You'll quickly realize how much work owning a rental property really is if you're doing all the work on your own. Do you know how to do a background check on rental applicants? Do you know who to call if the refrigerator breaks down or if your applicant has issues with other appliances in the home? Do you have the ability to advertise and locate potential renters so you can keep the property occupied at all times?
When you hire a property management team to assist you, you take yourself out of the main part of rental properties and let the company do the work for you. Fees vary depending on how many rental properties you have and where you live, although the property management company you hire may be willing to simply work on commission. This means they get paid a percentage of what your renters pay, and you get the remainder of the rent.
It's worth it to invest in a property management company when you have a rental property because much of the work is removed from you and you have peace of mind knowing your renters are taken care of. Even if you only own one rental property, the investment you make in a property management specialist can be well worth it to you.
Contact a local property management company to learn more.