Investment properties can be exciting, provide sense of ownership and provide a long-term retirement plan for many. However, the details of the day to day management and maintenance of the properties makes many nervous. The fact is that you don’t really have the expertise, knowledge and skills sets to solve every situation that arises out of owning a rental property. Whether you are trying to advertise a rental, screen tenants, sign leases, collect past due rents, evictions or solve/coordinate maintenance issues, these all can be very daunting task for some.
Most people elect to hire a property manager to solve all these problems so they can enjoy their investment and not be awaken in the middle of night with some emergency. Management companies are skilled in the day to day business of keeping your investment occupied, rents paid on time, good tenants and preventative maintenance.
Management companies are typically licensed Real-estate agents and/or Brokers. Their knowledge and expertise can typically get you higher rental rates, have top notch tenant screening abilities and access to cost-effective maintenance. Their rates can vary but typically are 7-10% of the gross rents collected.
The bonus of working with management companies is, if you are interested in more investment properties, your property managers will likely have access and ability to locate them for you. They know home values and rental markets very well. A good Agent/Manager should get you 8% returns.
If you own an investment property and/or were thinking about getting into one. Don’t loose any sleep or be nervous about it. Meet with a Property Manager and discuss how they might be able to help you.