Congratulations! You have finally invested in rental properties. To many rental property appears as an easy way to generate some extra income. However, it is not that easy. There is a big difference between being just a property owner and being a landlord. Most of the owners live apart from their properties and it is simply not possible for them to look into every detail from such a distance. Those who are close to their properties may not prefer to deal with the landlord’s responsibilities.
Study reveals that the landlords who take shortcuts while screening potential tenants, skip property insurance or fail to outline everything in details can end up with unwelcomed costly surprises. If you have the intention to have a good ROI from your rental properties, adopting shortcuts will not help. You can consider hiring a property management company for the best solution. While advertising your properties, collecting rent and increasing rent when necessary are crucial jobs that the property managers usually do. In addition to that, they do certain other tasks that are vital for effectively managing the properties. Here are few instances demonstrating how the pro managers can help you out:
Screen your tenants’ profiles
A tenant may represent an attractive credit report and deposit check at the outset. Lured by the details, if you commit the mistake of letting out the property to a tenant without scanning the details it is possible that you will not receive rent, the deposit check will bounce and you end up with a damaged property.
You may have to spend thousands of dollars and get involved in the legal tiff to evict the man from your property. Obviously, landlords will never want to be in such situation. To avoid these hosts of problems, it is best to perform background checks. Property managers perform
- Criminal search
- Scrutinize the information supplied
- Market research to find the exact rent of the property
Background checks may confirm that a person is financially sound to take your property on rent. However, it does not authorize that the same person will not cause any harm to your property. There are certain tenants who have a habit to damage the properties. Therefore, ask for at least two past landlord references.
Most of the pro property managers doubt everything that a prospective tenant tells them. Though, it sometimes seem weird, a tenant should not have any problem in supplying information like photo identification, credit report or references of the previous landlords. The property owners have the right to protect themselves from any possible hardships.
Purchasing proper insurance
Just performing the background check of the prospective tenants is not the only duty of the landlords. The experienced managers always advise the landlords to buy a perfect insurance. Most of the property owners skip the important part of purchasing the insurance for their property.
You have no idea about the kind of situations you may face with the property. It is better to stay insured ahead, for such unprecedented events. Most experts recommend that the tenants should also have the renters insurance. The owner’s covers only supplement the repairs and replaces on the actual structure and few times the appliances. However, if the tenant’s belongings are damaged in any way the landlord’s insurance will not cover that. The insurance is also a proof of the property’s condition. A written signed document and photos of the property establish a baseline.
Owning a rental property
A company with years of experience in property management not only make the process renting property lucid for the landowners. Even the renters are benefitted if an experienced company is managing the property. A certified manager will take a center stage and resolve all the legal matters related to the property renting. The property managers also solve your environmental concerns.
Today, environmental issues have taken a center stage nationwide. The tenants ask for the Environmental Protection certificate before moving to a home. They need an assurance of the air quality, mold, paint and other aspects that if remained unchecked can affect human health. A property management company have these areas inspected by a recognized agency and provide a certificate of the examination to the tenant.
It is an owner’s look out to increase their income from the property and decrease the cost for it. An expert property management company will help you to do that in the best possible way answering all the tenants’ queries and solving their problems; looking after the legal matters; purchasing adequate insurance and most importantly ensuring that you generate cash from your investment.