When you are considering whether to sell or rent out your home, it is easy to not notice some of the hidden costs and things that you need to "get right" when you weigh the costs and benefits of each option. When you are weighing the costs of renting your home out, there are a few "headaches" that can be lurking in the shadows. By thinking these through and planning for them, you can make the process smoother and less stressful, as well as more profitable.
Of the potential headaches of propery management, there are three that come up quite often and seem to cause the most stress. In no particular order: Maintenance calls and issues, Eviction and other legal issues, and Tenant Turnover each create a tremendous amount of stress and reduce profitability. While in our mind's eye we often do not see these challenges ahead, the truth of it is that they are far more prevalent than we would like to admit.
The goal of a landlord is a steady, predictable rental income stream with minimal interuptions due to late payments or turnover, minimal damage or repairs to the asset (the home) and minimal legal hassles or risk. Each of these "headaches" affects the bottomline in a very concrete way.
So how do we minimize the headaches and improve profitability?
The easiest answer is to prepare and have a professional team backing you up. Repair calls can come anytime. By having someone avaialalbe to answer those calls who is connected with local repair professionals, you can greatly reduce the stress of these issues. By either working with a professional management company or having the basic legal requirements known, contracts prepared and a someone to keep up to date on the ever changing laws in place you can reduce greatly the odds of getting into legal predicaments. Finally, by having a system to attract and keep the best tenants that typically stay longer with less maintenance costs and who pay their rent on time more frequently, you can improve profitability and reduce stress.
This sounds easy, but it is not. To do each of these things requires systems in place and effort to set up. But the important point to remember is that these efforts are worth it. An easy way to make sure that you have these systems in place is to use the services of a professional property management company. You can definitely do these things yourself, but it is important that if you are renting a home out that you get it right. This is especially true if you are a significant distance away. Repair requests when you are out of state can turn into major headaches quickly. Any costs associated with any of the three headaches mentioned above get compounded due to time and distance.
If you are doing this yourself as a landlord, it is best to find a reliable team of professionals that you trust. Get to know them and trust their advice, whether it is legal advice, plumbing advice, or the ability to market your home and get a high quality tenant in the case of turnover that will minimize downtime, having an informal team you can trust is an important resource for you.
Do you have more Questions?
Do you have questions about your personal tenants or property? Wondering if you should have your property professionally managed? Would you like a second opinion on how you are managing your rental property? Call us today to see why so many landlords think TREG is the RIGHT CHOICE for property management.