OWNER LOGIN     TENANT LOGIN        
× Search

 

 

 

Property Management Blog

Published on Wednesday, September 7, 2011

Professional Property Management Will Increase Your ROI

A professional property management corporation can help in increasing your return on investments in realty. Whether it is your second home, vacation home, or a self storage, you can enhance your returns by employing a building manager.

A building generates regular income through rentals. In order to get good returns it is essential that you get good rent. But, you have to determine the right rent for your building. This can be determined through the market research. The data about the rent of the buildings in the same area is collected. The rent depends on many factors like location and the demand and supply gap in the area. The amenities available in the building are also kept in mind while deciding the rent. Thus, there are lots of things that go in determining the right rental of a building. As it is not easy to carry out such extensive work and employing a professional property management agency will help you in this matter. They keep on doing such market research from time to time and hence have a fair idea about the rentals of the buildings.

The next important thing, for getting good returns from the building, is tenant occupancy.  If your building has 100 percent occupancy, your returns will be good. The professional property management corporation helps in maximizing the occupancy. They will make changes to your building and make it attractive to advertise, showcase and market it. They will negotiate rent with the prospective tenants, scrutinize the tenants and prepare the tenant agreement documents.

Once you have tenants in your building, it is essential that they feel comfortable. It may not be easy for you to attend the complaints of the tenants. But, when you hire a professional property management , they make sure that the tenants do not face any problems in the building. These firms carry out the regular maintenance work of the building. Besides, they also have provisions for attending any sudden problems like breakdown of the electrical systems, 24 x 7. Thus, they help in making the stay of tenants pleasant. Happy tenants often extend their tenant agreement period and also do not mind paying a little extra, thus increasing your returns on the building investment.

Just hiring the tenants and keeping them happy is not sufficient. You also need to ensure you get good returns. Though you will be getting income in the form of rent, but you will also be spending on the maintenance and other things to make the stay of your tenants comfortable. Hence, to determine your returns you have to prepare a data sheet of the expenses and the income. The professional property management agencies have financial experts that take decisions based on the return on investment or the cost benefit analysis. This analysis is done before incurring any major expenses. The firm does not carry out any major work unless it benefits the client.

Though doing so many calculations may seem like a daunting task, but professional realty management corporation have software for this purpose. Every financial decision is backed by proper data and analysis by experts.

Unless, a person has knowledge about the property and the time to carry out the above functions, it is difficult to manage building assets. Therefore, hiring a building managing firm is the right decision to increase your returns on the building investments.

 


Onyx Management Group, Inc. is a full service property management company currently servicing residential and commercial properties throughout Greater Philadelphia, Bucks County and Montgomery County. With our highly detailed approach to overseeing properties of any size, we provide our clients with the benefit of ownership without the burden; dedication to our clients has been a major factor in our success. Whether you are looking to rent or lease in the Greater Philadelphia, Bucks County or Montgomery County areas, give Onyx Management Group a call. We've made the Greater Philadelphia, Bucks County or Montgomery County area home for ourselves and for the many satisfied tenants and business owners we've worked with over the years. Thanks for visiting this online residential and commercial real estate property management source.

Rate this article:
No rating
Comments (0)Number of views (670)

Author: Web Master

Categories: Property Management

Tags:

Print

x

Landlord Knowledge Base

If you’ve ever considered investing in a few rental properties in Philadelphia or Bucks County, PA now might be a good time. Prices are still low in Philadelphia, but have been on the upswing. According to the National Association of Realtors, the median price of an existing home in a US metropolitan area grew 13.7% between July 2012 and July 2013, the latest in a 17-month streak of year-over-year price increases. 

New landlords can choose from properties that are likely to appreciate and a large pool of potential renters.Licensed realtor Pat Mueller cites a few reasons for this trend: “Many families have lost their homes to foreclosure and are entering the rentals market for the first time in years. Mortgages are also harder to get now, so fewer people are qualifying for a new one.”The more skills you bring to the table to get into Houses for Rent in Philadelphia Philadelphia or Bucks County, PA and the more time you have to devote to your properties, the faster you can make a return on your investment. 

But investing in rentals can also be disastrous (or too stressful to be worthwhile) without expertise. Here are three professionals you may consult about your new rental properties, and what you can do to mitigate how much they cost you:Handyman:  You may need to hire a specialist for some work on your rental. If you need new outlets or new pipes, for example, hire an electrician, plumber or licensed contractor. Handymen usually tackle smaller, more manageable tasks, like:

  • Painting and paint removal
  • Drywall repair
  • Minor appliance repairs (fixing a leaky toilet or faucet, among others)
  • Installing tiling or flooring, moldings, windows, doors
  • Refinishing decks, cabinets and other wood items

When You Could Skip It: You could do any (or all) of these projects yourself if you have the time and interest in learning. Of course, this only works if you live relatively close to your rentals and are flexible enough to service them on short notice. And if you’re willing to respond to the occasional 5 AM basement flooding.

Average Savings: Any base rates or costs-per-hour vary from location to location in Philadelphia or Bucks County, PA , but nationally, you can expect to spend an average of $60 to $85 per hour for repair costs. It general costs less to hire an individual handyman than a handyman employed by a company. Expect an additional charge if your job requires a trip to the store for materials.

Resident Property Manager As the owner of a handful of rental properties, you may be able to manage them yourself, but if you want help, a single resident manager would probably be more cost efficient than a property management company. Resident managers may:

  • Serve as a handyman
  • Advertise vacancies in your units
  • Show apartments to prospective tenants
  • Review rental applications
  • Collect rents

When You Could Skip It: Again, the closer you live to your properties and the more spare time you have, the less likely you are to need a manager. The obligations of being a boss will also cut into the time you save on maintenance.

Average Savings: The national median wage for residential managers is just over $25 per hour. Research the wages in your community and adjust according to how much responsibility your manager will take on. 

Real Estate Agent: Once you’ve gotten your financials in order and done your own research on the neighborhood(s) you’re considering, you might contact a realtor to show you potential properties. You can also arrange for a realtor in Philadelphia or Bucks County, PA to show rentals once they’re ready to rent.

When You Could Skip It: It depends. Even if you’re a local, or have thoroughly researched the neighborhood(s) you’re considering, a realtor is a great resource for a first-time rental buyer. Realtors have access to data and statistics not necessarily available to the general public and first-time buyers may not know all the right questions to ask. Using a realtor to fill your Houses for Rent vacancies is less of a no-brainer, depending on your other time commitments or whether you plan to hire a resident manager who could do the same thing.

Average Savings: As a buyer of rental properties, as when buying your own home, sellers typically pay most, if not all, of the buyer’s realtor fees. In this case, Mueller points out there’s little reason not to work with a realtor. For help in filling your units in Philadelphia or Bucks County, PA, the services of a realtor would set you back between 10-20% of the unit’s rent per month.  Mueller recommends interviewing with several brokers before making your final decision to invest into Houses for Rent .

The Bottom Line: As a new landlord, you can’t necessarily control the flexibility of your schedule or the amount (and cost) of unexpected repairs to your properties. Rentals are a long-term investment. However, to maximize profits from your Houses for Rent, new rentals, you can buy close to home and start small. It is best to begin with just one or two properties. This will allow you to maximize the time you spend on your properties’ needs, and minimize the amount you’ll have to pay anyone else.

Search

Terms Of Use Privacy Statement Copyright 2006-2022 by Onyx Management Group, Inc.
oto kiralama ankara göcek yat kiralama