It’s no secret that investing in real estate can be a great way to increase your wealth and keep your nest egg safe. However, owning real estate, especially a rental property, comes with a lot of work. Whether or not you have tenants, you’re going to need to stay on top of repairs and maintenance and figure out a way to make your mortgage payments if you aren’t collecting rent. Suddenly, your side investment to earn you extra cash is a full-time job that could end up costing you money in the long run. If you don’t have time to take care of all of the aspects of your investment by yourself, chances are that you could benefit from the services of a property management company. Here are just a few of the reasons why property managers can take the stress out of handling a rental property.
- You have someone keeping an eye on your investment.
- If real estate investing isn’t your day job — which it likely isn’t — then you’re going to need some help taking care of the day to day aspects of owning a rental property. Property managers will handle routine inspections, deal with maintenance requests, collect the monthly rent, and field any emergency phone calls from tenants that would otherwise come to you. They’re responsible for inspecting the property after each tenant moves out and readying it for the next one. Basically, they will oversee most aspects of your rental and handle any problems that may arise.
- You’ll fill empty properties faster.
- Aside from taking care of your property and managing your tenants, property managers are also responsible for advertising your rental and finding someone to fill the vacancy. Why is it important to fill vacancies as soon as possible? Every month your property goes unrented is a month that you’re responsible for paying the cost of owning the property and netting negative dollars. Filling the property promptly will minimize any payments that you’ll be responsible for each month.
- You’ll have someone to screen your potential tenants.
- One of the riskiest and potentially most costly aspects of owning a rental property is opening yourself to the possibility of legal setbacks when dealing with particularly unsavory tenants. A good property manager will know what to look for to avoid any potential scams and will be able to sport tenant red flags, helping you find only responsible, reliable tenants who will take care of your investment and pay their rent on time.
For more tips and information from Scott Prephan, follow him on Twitter!
