In an ideal world, you buy an investment property and immediately begin renting it out to model tenants, who pay on time and care for your property as if it was their own. However, the reality of owning a rental can be drastically different for most of us; while investment property obviously pays off in a variety of ways, some properties or units turn into money pits that drain cash from your account each month.
Whether you’ve chosen to invest in real estate for profit or you’ve become an unintentional landlord, using a professional property management company can help you maximize your ROI and minimize your hassle. You do have to choose the best property management team for the job, though, to truly get all of the benefits associated with using a professional manager.
The number of housing units occupied by renters in the United States has been steadily increasing since 1975, but there has been a sharp upturn in the past few years. In 2015, there were 43.58 million renters occupied housing units; this is up from 38.02 million in 2010. As housing demand rises, more rental properties are becoming available which means more investment opportunities.
The question is, how do you know what is a healthy property that gives you a good return, and what is a toxic one that will rob you of all profits? Toxic property management is a soul-sucking, profit-draining venture, but there are ways to spot a toxic property before you get sucked in. Look for these four symptoms of a toxic property investment:
We’ve all heard the horror stories about tenants who disappear in the middle of the night – with all of the appliances and even the copper piping in the walls, but a landlord faces far more risks when they allow a tenant into their property. From pure cash to the risk of a costly lawsuit and even the loss of your free time, here are some of the most common risks faced by a landlord today.
Your property management company will play a big role in how much time you spend on the day-to-day operations of your real estate investments. Ideally, you’ll hand all of the stressful parts over to the manager, and simply hang around to collect the rent and manage the big picture. The wrong management company will impact everything from the annual cost of maintaining your properties to your occupancy rates and the number of times you have to turn each property over each year. How can you tell if a Utah property management team is not a good one? These red flags can clue you in: