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Property Management Blog

Published on Saturday, March 28, 2009

Quality property management

Quality property management plays the most crucial role in deciding how to get the most out of your property. However, the problem with most property investors and landlords is that they either do not have much time to handle the task themselves or they just do not have sufficient knowledge on how to do this. In such cases, it is always advisable to avail the services of a professional company experienced in managing the various aspects associated with a building. Whether it is a large unit or a small one, if it is not managed well, you will not be able to make much profit out of it.

Key To Financial Stability   
 
Financial stability in any property venture depends entirely on how efficiently the task of quality property management is performed. For example, if you are a landlord and your property is not well maintained, it will get very difficult for you to get good tenants. In fact, you may even lose some of your best tenants if you do not get things fixed in a timely manner. What is more, even if you get some new tenants, you will have to offer a very low rent - much lower than what your competitors are charging. On the other hand, when you hire quality property management to manage your property, they will make sure that your property always remains in the optimum condition. They will also help you get the best tenants at the highest possible rent. This way, keeping your property managed by professional experts will not only keep your finances stable but will also boost your overall income.

It is true that property managers charge a certain amount of fee for their services, but considering the overall benefits that you can get by using their services, it is always worth paying that much amount. If you are a landlord, quality property management may charge a certain percentage of the total amount of rent you receive per month.

If you are renting multiple units, it may not have any adverse effects on your finances even if one or two tenants move out. But, in case of single-family property or smaller units, a long absence of occupancy will be devastating for your finances. So, if you do not want to land yourself in such a terrible situation, you will have to make sure that your property is thoroughly managed. It will show you the way on how to use the maximum potential of your property.

Since quality property management is an expert in the field of managing the various aspects of different properties, they will offer you valuable suggestions on how to optimize every part of your property in a way to generate maximum amount of income. They will tell you how to create opportunities to get the best from your property instead of just waiting for the right opportunity.

One of the biggest problems in a rental business is that the tenants do not pay their rent in a timely manner, which adversely affects your cash flow. The company performing management services will suggest you a mechanism on how to prevent this. Collecting rent is another area where you will find the services of the company very helpful. In fact, managing various types of properties is a big task, involving an extensive array of factors. A professional property manager will take care of all these factors.

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Author: Web Master

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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.

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