Hiring a property management company can add substantial value to your rental property investment. Having a company to manage your properties for you will help find the right tenants, keep your property in better condition long-term, handle legal issues and give you more free time and less stress. Here are a few reasons why hiring a property manager is worth the investment: High-quality and Long-term Tenants Tenant screening can be a complex process. A good property management company has a reliable and verified screening process that will help select tenants who will: • Rent long-term • Pay their rent on time • Minimize the wear and tear of the property • Cause fewer issues across the board By utilizing the services of a company with years of experience, you will have access to the warning signs on an application that may indicate the applicant would not be the right tenant. You will also have protection against lawsuits and scams caused by doing the screening process inconsistently. All of this will help you save more money on your investment. Less Legal Issues Experienced landlords know that one difficult tenant can cause extreme financial and legal issues. A skilled property manager knows important changes to laws between landlord and tenant and can guarantee you’re not exposed to potential lawsuits involving any of the following: • Tenant Screening • Evictions • Safety and Conditions of the Property • Inspections • Lease Addendum • Terminating Leases • Managing Security Deposits • Rent Collection Avoiding just one lawsuit can help you save a great deal of money and time spent in court proceedings. Shorter Vacancy Periods A property manager can assist you with performing tasks that will have a large impact on vacancy gaps: • Improving and getting the property ready to be rented- They will be able to suggest valuable ideas to enhance your property and increase your rental revenues. • Determining the optimal rental rate- If you set the rent too high it may take too long to find tenants, too low and you may be losing money each month. It’s crucial to have a local knowledge of the real estate market, data on similar units and access to professional rental rate tools. • Effectively marketing your property- Those who have been in the industry for a long time will have a lot of ads and an understanding of what is important to include in a listing to get a large volume of applicants in a short time frame. Because they manage many properties they can probably get better deals on advertisement both online and offline. They also know the ins and outs of sales and have a skill in closing deals successfully. More Organized Rent Collection A timely monthly rent collection is vital to maintaining consistent cash-flow. You should make it clear to tenants that it is non-negotiable. Sometimes you have to be careful of tenants who may try and take advantage of you. By hiring a professional property manager, the landlord puts a barrier between themselves and the tenants, allowing them to be the ones who have to listen to tenant’s reasons rent is late, collect rent, and handle evictions if necessary. Property managers can deal with it easily because the tenants know that it is just part of their job and they have no choice. Eviction process laws exist and are different in each city or state. The laws that regulate the eviction process are strict and doing it the wrong way can be a big mistake. The right company knows the laws and has a clear process of how to get the best possible outcome out of the circumstances. Not having to handle a potential eviction yourself is a very compelling reason to hire a specialist. Lower Repair and Maintenance Costs Having efficient maintenance keeps your tenants happy, not to mention that by doing so you also preserve the value of your investment. If you can take advantage of hiring a highly qualified property manager, you will also have access to professional maintenance and a network of licensed, insured and bonded contractors. These vendors are trustworthy and have been vetted for quality work and fair pricing. This can save you a substantial amount of money that you would end up spending hiring an independent contractor yourself. Companies get discounts due to the volume of work they order and also know how to supervise that work. Increase Your Property’s Value A property management company will be able to provide preventative maintenance as a way to detect issues early on before they become an expensive hassle. Inspections of the property and maintenance checks can help the company give you advice and suggestions for possible upgrades and modifications. They will also be able to explain how these changes will impact your property’s rental value, maintenance cost and insurance prices. Personal Benefits for Owners A strong deciding factor for some property owners when making the decision to hire a property management company are the several personal benefits: • Less Stress- You won’t have to deal with emergencies in the middle of the night, tenants who damage the property, chasing down rent payments, scams and extensive paperwork. • More Freedom- You don’t need to be near your rental property at all times, so you have the option to spend time on other things like hobbies, vacations, and investing. You don’t even need to live in the same state as your rental property. Simply collect your check every month without having to step foot on the property. • More Free Time- Without having to worry about managing every detail of your investment property, you would be able to focus on other business opportunities and generate more revenue for yourself. And, of course, you will have more time to spend with family and friends. To Put It Simply… The benefits to hiring a property management company are extensive. There will be experienced professionals who choose great tenants for you, deal with any maintenance or legal issues that arise, generate more advertisement for the property, and give you the free time to pursue any other interests you may have. -Written by Ashton Black
IS RENTERS INSURANCE WORTH IT? The short answer is YES! Absolutely. Not only does renters insurance cover a wide variety of unforeseen circumstances, but it is also more affordable than most people realize. Some renters may think it is an unnecessary expense. Some mistakenly think the landlord will pay for their losses if anything happens to the property and their belongings. It is a difficult and sometimes very costly, inconvenient mistake to make. Hopefully, with the following information on renters insurance, more renters will have an understanding of the benefits and peace of mind that comes with having coverage even if you don’t think you will need it. What does renters insurance cover? *HOTEL COSTS AFTER A DISASTER If the home you are renting has a fire or a pipe burst and major repairs are needed, don’t make the mistake of assuming it is the landlord’s responsibility to pay for your hotel stay. Your renters insurance includes “additional living expenses” if your place becomes uninhabitable for a period of time while repairs are being made. *PERSONAL PROPERTY Personal possessions damaged due to fire, smoke, theft, vandalism, water and other disasters can be included in your policy and will be reimbursed or replaced. Depending on your coverage you may need to pay a deductible, but the cost would be significantly less than if you had to pay to replace the items yourself or pay for any damages out of pocket. *LIABILITY This part of your policy would cover any lawsuit damages, legal expenses or medical expenses you may incur. Some examples include guests getting injured in your home, your pet biting a stranger, or a candle being knocked over causing a fire that could affect an entire apartment building. These issues could lead to multiple lawsuits that your insurance would help cover. How much should you expect to pay for renters insurance? Depending on the area you live the rates will vary, but the average cost of renters insurance is about $14 a month. Most auto insurance companies have the option to bundle renters insurance with your auto policy so be sure to check with them to save even more. For less than a dollar a day you could be potentially saving thousands on stolen items, damage to the home, hotel stay or lawsuits and medical expenses. THE BOTTOM LINE… It is in your own best interest to obtain adequate insurance. Unexpected events happen all the time and it is always best to be prepared. Check with your auto insurance and see what your options are for bundling renters insurance. Call around for the best prices and coverage for you. Policies will vary from place to place and from case to case, but at the end of the day it is up to you to protect yourself with renters insurance. By Ashton Black