Many people have chosen to make property an investment, and the smart and lucky ones have made a significant amount of money with this investment. Using a professional property management company can assist you in turning your investment into a profitable one.
A Property Management Company can maintain your property, find and screen tenants to lease your real estate to, collects the rent and handle maintenance and other tenant issues. Here are just a few reasons you should consider a Property Management Company:
1. Experience and Expertise:
Your goal with your investment property is to have the property make money for you. You do this by keeping the expenses low, and maximizing the income potential. An experienced property management company knows what can be done and has the ability to do it in an efficient way. They are also aware of the best practices, rules and laws in property management in your area and can give you the advantage of their knowledge so that you don't make errors in judgement that end up costing you your profits!
2. Property Maintenance.
Keeping your property maintained and attractive is important to retain its value and attract tenants. Maintaining a property can be hard work and require anything from minor grounds-work to major repairs. Your property management company not only has the relationships with the best contractors, they will be able to manage the day to day and the non-routine maintenance such that your investment is kept in tip-top shape at the best possible cost.
3. Getting the Price Right.
Getting the price right, and marketing it correctly can make or break your investment. If you go too high, you wont get tenants; not marketing it correctly, means you wont get tenants. AND... without tenants, you are losing money each month! By working with a qualified and professional property management company, you can assure yourself that the prices set are competitive in your market, for the type of property you have and that you have directed your marketing efforts at the proper demographic.
Owning investment property can be a lucrative income stream, but it takes good decision making and professional know-how to make this work. Feel free to contact Kuester Property Management to learn how we can assist you manage and market your investment.
Showing posts with label property ownership. Show all posts
Showing posts with label property ownership. Show all posts
What you ALWAYS need to do when you own rental property
Do you own rental property? Here are a few tips for you and your property management company to keep your business running smoothly.
1. Always Screen Your Tenants.
Never rent your property to anyone before doing a thorough credit history, checking references, and doing background checks. Failure to screen tenants often result in problems such as late-paying tenants, or those who damage the property. Your property management company should be able to assist you, (or in some cases completely manage) the tenant screening process.
2. Always Get It In Writing.
It is never wise to enter into a property agreement without a written lease or month-to-month rental agreement. It is important to document the terms of the relationship with your tenants -- including when and how you, or the property management company will handle tenant complaints, emergency and non-emergency repair requests, notice you must give to enter a tenant's apartment, etc. Your property management company should be able to assist you with a proper contract.
3. Always Handle All Financial Transactions Properly.
Establish a fair system of setting, collecting, holding, and returning rent and security deposits. Always inspect and carefully document the condition of the rental unit before any tenant moves in, (and make any necessary repairs to keep it in rent-ready condition) to avoid disputes over security deposits when the tenant moves out.
4. Always Stay on Top of Maintenance.
Maintaining a clean and safe property as well as making the needed repairs in timely fashion is vital to being successful at rental property ownership. If the property is not kept in good condition, you'll likely alienate good tenants, and tenants may even have the right to withhold rent, or sue for injuries caused by defective conditions, or even move out without needing to give notice.
5. Always Provide a Secure Environment.
Your tenants deserve a safe a secure premises. Assess your property's security situation and take the appropriate steps to protect it with proper lighting, tidy landscaping, security patrols where necessary and whatever else you need to do to protect your assets and tenants.
6. Always Let Tenants Know Before You Enter Their Rental Units.
It is not only polite, but in many cases the law to notify your tenants whenever you plan to enter a rental unit. You should provide as much notice as possible, at least 24 hours or the minimum amount required by state law.
7. Always Disclose Environmental Hazards.
If there's a danger such as lead or mold on the property, you need to disclose this to your tenants. You could be held responsible to any health problems your tenants suffer due to these types of hazards. It is always best to remedy the situation properly and as soon as possible, but at the very least you need to let the tenants (and potential tenants) know.
8. Always Work With a Reputable Property Management Company.
Choose and supervise your property management company carefully. Choose a company with a good reputation, references and experience managing the specific type of property you have in that market.
9. Always Purchase Liability and Property Insurance.
It is important to protect yourself by purchasing enough liability and other property insurance. Insurance can protect you from lawsuits by tenants. Injuries, fire and storms damage, burglary and vandalism are all things that can happen, and you should carry insurance to keep a small disaster from turning into a major one.
10. Always Resolve Disputes Quickly.
Dispute will occur eventually—in any time of property relationship. It may be something small—such as a client paying a day late each month, or something big, like the need to evict. But it is important to resolve disputes with your tenants quickly and without lawyers and lawsuits when possible. If a dispute becomes more difficult, you can consider mediation by a neutral third party, (again, your property management company can be very helpful here). By addressing any issue that arise quickly, you will be able to avoid costly and potentially devastating repercussions.
Kuester Property Manager
1. Always Screen Your Tenants.
Never rent your property to anyone before doing a thorough credit history, checking references, and doing background checks. Failure to screen tenants often result in problems such as late-paying tenants, or those who damage the property. Your property management company should be able to assist you, (or in some cases completely manage) the tenant screening process.
2. Always Get It In Writing.
It is never wise to enter into a property agreement without a written lease or month-to-month rental agreement. It is important to document the terms of the relationship with your tenants -- including when and how you, or the property management company will handle tenant complaints, emergency and non-emergency repair requests, notice you must give to enter a tenant's apartment, etc. Your property management company should be able to assist you with a proper contract.
3. Always Handle All Financial Transactions Properly.
Establish a fair system of setting, collecting, holding, and returning rent and security deposits. Always inspect and carefully document the condition of the rental unit before any tenant moves in, (and make any necessary repairs to keep it in rent-ready condition) to avoid disputes over security deposits when the tenant moves out.
4. Always Stay on Top of Maintenance.
Maintaining a clean and safe property as well as making the needed repairs in timely fashion is vital to being successful at rental property ownership. If the property is not kept in good condition, you'll likely alienate good tenants, and tenants may even have the right to withhold rent, or sue for injuries caused by defective conditions, or even move out without needing to give notice.
5. Always Provide a Secure Environment.
Your tenants deserve a safe a secure premises. Assess your property's security situation and take the appropriate steps to protect it with proper lighting, tidy landscaping, security patrols where necessary and whatever else you need to do to protect your assets and tenants.
6. Always Let Tenants Know Before You Enter Their Rental Units.
It is not only polite, but in many cases the law to notify your tenants whenever you plan to enter a rental unit. You should provide as much notice as possible, at least 24 hours or the minimum amount required by state law.
7. Always Disclose Environmental Hazards.
If there's a danger such as lead or mold on the property, you need to disclose this to your tenants. You could be held responsible to any health problems your tenants suffer due to these types of hazards. It is always best to remedy the situation properly and as soon as possible, but at the very least you need to let the tenants (and potential tenants) know.
8. Always Work With a Reputable Property Management Company.
Choose and supervise your property management company carefully. Choose a company with a good reputation, references and experience managing the specific type of property you have in that market.
9. Always Purchase Liability and Property Insurance.
It is important to protect yourself by purchasing enough liability and other property insurance. Insurance can protect you from lawsuits by tenants. Injuries, fire and storms damage, burglary and vandalism are all things that can happen, and you should carry insurance to keep a small disaster from turning into a major one.
10. Always Resolve Disputes Quickly.
Dispute will occur eventually—in any time of property relationship. It may be something small—such as a client paying a day late each month, or something big, like the need to evict. But it is important to resolve disputes with your tenants quickly and without lawyers and lawsuits when possible. If a dispute becomes more difficult, you can consider mediation by a neutral third party, (again, your property management company can be very helpful here). By addressing any issue that arise quickly, you will be able to avoid costly and potentially devastating repercussions.
Kuester Property Manager
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