Property management issues
There are two key aspects to property management:
• Finding the perfect property for prospective tenants.
• Making sure that property owners optimize their income streams with quality renters.
Owning a property and renting it out can be a great way of investing for the future. You can usually earn a higher yield than leaving the money in the bank (even after the management costs). Renting out a property is also a lot safer than many other investments out there. The other key thing to remember is that, if you buy in a rising market, the value of your property will increase. You will get an income stream from the rent and your capital assets will go up as well.
It is important that your property does not sit for any length of time without rental income coming in. This is dead time and you can never recover the cash that you have lost.
It is also essential that your tenants are trustworthy and honest. References and credit scores must be researched to ensure that the rent gets paid and the property gets looked after.
Finally, renting out a property is like selling a service. It must be marketed to prospective customers. If you search on 'Houses for rent in Oklahoma City' for example, you will see many websites offering details of properties to rent. Each site has several hundred properties on their books and that is just page one on Google. It is a competitive World.
Property management companies
This is where employing a property management company is crucial. It is a false economy to think that you can rent out a property yourself and save on those management costs. Just one month extra of not getting a rental income wipes out any savings you may make.
A good property management company should have experienced and qualified staff. The company may have accreditation from the Institute of Real Estate Management (IREM). The property company should have loads of satisfied property owners happy to recommend them. Talk to several companies and take references and find out what is good and bad about each of them. A little time spent at the front end could save you an expensive mistake later.
Your chosen real estate management organisation will market your property. It will ensure that it gets seen by as many people as possible and they will have a database of prospective renters. They will help you with setting a rent to optimise income. Most importantly, they will screen potential tenants to ensure that you get the right people into your house or flat. You should also ask for the tenant screening report which allows taking a deeper look at the tenant payment history or any red flags that could be important for a landlord to know.Once the rental agreement has been signed, you can rest assured that payments will be collected on time. Maintenance will also be arranged efficiently.
Tenants
Tenants gain from a good property management set-up as well. They can get notified of properties that match their search requirements. This saves time sifting through thousands of advertisements. That search for 'Houses for rent in Oklahoma City' does not have to be quite so daunting!
When they do get a property sorted, their deposit is managed, and any maintenance will be done quickly.
The best property management companies may also offer finance options - giving 'rent to own' facilities if appropriate.
Conclusion - if you are renting out a property then use a property management company
Using a good property management company is a no-brainer for owners and tenants alike. Leave it to the experts.
If you are an owner, always remember to talk to people who have been through the process. Check that you fully understand the costs involved and get a solicitor to look over any agreements before signing them.
