Making the decision to own and rent out a property is a wise one. Finding tenants and renting out your property is an excellent way to make money and get a return on your investment.
That said, many people don’t understand the full responsibility of being a landlord. There are a lot of tasks that you’re required by law to take care of. We’re going to explore the idea of being a landlord in this article, giving you an idea of whether or not you should find a property management company.
We’ll take a look at some of the primary questions you should ask yourself before making the decision to become a landlord.
Again, many people underestimate the responsibility that comes along with renting your property to others. That responsibility diminishes as the responsibility of your tenants increases. In other words, great tenants make being a landlord easy.
That said, renting to unruly and difficult tenants can make your job costly and difficult. That’s why it’s so important to run background checks and screenings on potential tenants.
One great measure of a person’s attitude toward the places they rent is the recommendation of past landlords. If you can get a good recommendation from a person’s previous landlords, you can be pretty confident that they’ll be responsible.
Before you start looking for renters, though, consider some of the following points.
1. How Close Do You Live To The Rental Property?
Proximity is important. In order to be a great landlord, you should have the ability to take care of any important matters on the same day. A burst pipe or broken window could be a very big deal if left untented.
If you live a great distance away from the property you own, you might not want to be the landlord on your own. Unless you have some separate arrangement with a contractor, you’ll be putting your tenants at a disadvantage by being unable to be around to assess and handle damage.
You’ll also have trouble dealing with other things like communication, rent collection, and finding people to rent from.
2. Do You Have A Full-Time Job?
The stress and responsibility of a full-time job might be enough to overshadow your potential as a landlord. Remember, there are things that need to be handled as soon as possible when you’re in charge of a rental property.
If you fail to meet your responsibilities as a landlord, you’re putting an individual or family in a bad position as well as putting yourself in potential legal trouble.
Ask yourself if your job will directly impede your ability to be a good landlord. If you’re always working, will you be able to communicate with tenants if they have any questions?
A job that requires you to travel will also require some planning. If you have to leave town, for example, you’ll have to set up arrangements with someone to take care of any sudden issues that could arise.
3. Community Connections
You may have noticed that a lot of landlords or rental companies have a well-organized network of contractors and individuals who can make repairs that meet legal requirements.
Knowing people who understand laws, have connections in the community, and can find ways to make fast cost-effective repairs is very important. These connections make the stress and financial burden of being a landlord for less significant.
Many individual landlords are contractors themselves, making the process of maintenance extremely simple. If you plan to be a landlord on your own, you should be sure to plan out potential emergency situations and get quotes from people in your community on repair costs.
Being unprepared can cost you a great deal of money. If your tenants aren’t responsible, you may be faced with frequent repair costs that overshadow almost all of the return on your original investment.
The Value Of A Property Management Company
Property management companies take on a lot of responsibilities for people who want to rent their properties. In fact, they make the process of renting extremely easy and stress-free.
It may seem costly to hire someone to manage your property, but let’s take a look at some of the cost-effective benefits that property management companies provide.
Better Tenant Screening
As a new landlord, you won’t be up-to-date on screening processes and things to look for in great tenants.
Property management companies, on the other hand, are experts at seeking and selecting individuals who make great tenants. Remember, you will have far fewer costs to take care of when you rent your space to responsible people who have a history of paying their rent on time.
Established Repair Protocol
Property management companies have tried and true methods of having repairs made in the most cost-effective manner. This will save you a whole lot of money over the years that you work with the company.
Consider the fact that one serious repair and the costs from a dishonest contractor could set you back thousands of dollars; more than the yearly cost of working with a management company in some cases.
Understanding Of Maintenance
Possibly the most valuable benefit of working with a company is the fact that they know what to look for in rental property maintenance. You, as a new homeowner, probably aren’t familiar with all of the red flags of home maintenance.
When you don’t know exactly what to look for, you’re liable to miss important pieces of the puzzle. This puts you at financial risk and makes life uncomfortable for your tenants if anything goes wrong.
Maintenance and legality tie closely together as well. Making sure things are up to code and in compliance with laws is essential, and property management companies will work tirelessly to keep things in line.
Want To Learn More?
It’s wise to consider working with a property management company if you’re a new homeowner, especially if you plan to rent multiple properties. We’re here to answer any questions you have.
Explore our site to learn more about how to work with a property management company.