Hiring a skilled property manager can be both satisfying and lucrative.
Livermore, Dublin, Castro Valley, Hayward, Oakland (PRWEB) December 31, 2012
Help has come to homeowners looking for help in renting out their homes without risking their potential cash flow.
Managing ones own residential commercial property can be both satisfying and lucrative. The downside to self-management is that property management takes time and commitment: two things that might be in short demand in ones life, depending on the size of the property. Unless one has full-time or near full-times hours to devote to this task, one may need to look into hiring someone to manage the residential/ commercial property. Having outside property management also allows one to invest in property that may be geographically far from where one lives, increasing the potential for earnings on the investment.
A property manager can assist in a variety of ways. One thing a property manager can do is make sure that you comply with any local or state housing regulations and laws. It is amazing how many laws and regulations pertain to residential/ commercial property management, and in order to avoid lawsuits, one must stay in compliance with a sometimes confusing multitude of regulations and laws. Failure to do so will almost certainly result in fees and penalties which will cut into the revenue from the residential/ commercial property.
In order to decide on the amount of rent to charge for the property, the probability is low one won't have easy access to market studies of rental rates in the surrounding area. A property management company routinely sets rental rates by using these types of studies. Since the major goal of owning residential/ commercial property is to earn money off ones investment, rental fees can make the difference between low earning potential due to excessive vacancies because of high rent and achieving the most income that one can from the property.
Yes, hiring managemen t for the property does cost money. Typically, a rate of 6-10% is the standard fee for professional property management, so when considering hiring someone else to manage a residential/ commercial property one may save time that could be used to research new investment possibilities or pursue another career, and that one can potentially save money by using professional property management who will utilize their expertise in setting rental rates, advertising, and evaluating tenants, one can actually realize more profit from the residential/ commercial property by hiring a professional management company.
Skilled property managers can ensure that one is freed from the hassles of collecting and depositing rent payments, which can be unpleasant and frustrating. Hiring a property manager also allows one to avoid the time-consuming tasks of marketing and advertising the property in order to guarantee that the property does not sit vacant, since one earns no money from unrented property. One can avoid the headache of trying to determine who will make a good tenant and who won't. Property managers handle all the details of seeking tenants, reviewing their credit reports, reading references from employers and former landlords, performing criminal backgrounds, and filling out the proper paperwork.
Potentially the most time-consuming task of owning residential/ commercial property can be the day-to-day management of the property itself. Property managers will take care of repairs, problems, and complaints, and make inspections and handle conflicts. Since these events could occur at any time of the day or night, including weekends and holidays, having property management saves one both time and possibly unpleasant encounters, whether the problems exist from the tenants of the property or the many agencies one must partner with, such as plumbers, electricians, landscapers, and sanitation workers.
If considering investing in or currently own residential/ commercial rental property, one will need to evaluate carefully the pros and cons of self-management and hiring a professional management company. Being informed can make the difference between achieving maximum earning potential and financial losses when it comes to the investment.