Rental Property Management
Real estate is not only a fabulous vehicle for putting money in your pocket now. It can also create long term financial security. This is what real estate is known for, building long term wealth. As you have already learned, the majority of wealth is stored in real estate. In this section, you’ll learn how you can build your financial empire from real estate and rental property management and rental management service.
Rental Management Service - Buy and Hold
This is the technique most associated with real estate investing and rental management services. The concept of this approach is that you purchase real estate and then rent it out to tenants. This is sometimes referred to as traditional buy and hold investing and works best when rental management service and rental property management are included. It has been the source of incredible wealth. Anyone who has played the board game Monopoly knows the power of owning and leasing out real estate. And as mentioned earlier, this technique can be extremely tax-friendly, and therefore you are able to keep more of what you earn than with the fast cash approaches shared in the previous section on rental property management and rental management service.
There are three major profits that are gained from buying and holding real estate with solid rental property management. First, if the tenant pays you more than your costs (mortgage payment, taxes, insurance, maintenance, etc), you profit from monthly cash flow. Second, your mortgage payment may include a principal component so each time a payment is made, the tenant is actually paying down the mortgage balance on the property and thereby increasing your equity. Third, in most areas, over a long period, real estate appreciates in value, so you profit from the increase in the value of the property. When you add rental property management and rental management service on top of that, you’re getting pure income without hassle.
The secret to successfully applying the buy and hold strategy with rental management service is to buy the property below true value so that you have instant equity and then to profit from the cash flow and the principal pay down. Appreciation should be a bonus and an icing on the cake when done right with rental property management.
It should not be the reason for the investment. Most investors are unaware of this and therefore, many have lost their shirts on real estate investments that they purchased in the hopes of profiting from appreciation and rental property management and. This is also referred to as speculation which affects rental property management.
Getting The Best Rental Property Management
The other issue investors have voiced as it pertains to buying and holding real estate is in being a landlord and finding great rental management service. Some even associate, unclogging toilets at 3 AM with land-lording. However, not all people dread rental property management. In fact, property management has been deemed as one of the most profitable businesses in America (based on almost any measure of profitability) and a great rental management service.
Rental property management and rental management service is a challenge if there is not a system in place to handle every issue that comes up and/or if the property does not cash flow strong enough to warrant the expenses associated with leasing. But, property management can also be quite lucrative, especially when you consider Home365 as your property management.
We are different from any other rental property management and rental management service company you’ve probably ever come across. What makes us different is that we guarantee your returns no matter what happens to your property. No tenants? No problem! You still get paid that month. That’s what great rental management service and rental property management are all about.
Enlisting a property management firm with a great rental management service like ours can be a wise decision. We have a very good leasing system already in place on how to manage properties. We have relationships with vendors like eviction attorneys and maintenance men who are needed to run a great management system. And we can handle all the issues and calls from tenants, even at 3 AM, that’s great rental management service.
The Problem With Old School Property Management
A drawback of hiring a different property management company with sub-par rental management service is that they aren’t always on top of everything going on with your property. Not every property management company is created equal and some do not have a good leasing system in place. We are different because we are invested in the property just as much as you are. We are working on better rental property management.
Further, and most insidious of old school property management companies with rental management service is when the company profits from repairs. Sometimes, the contractor doing the work may provide the property management company referral fees for the work they are given. This incentivizes the property management company to come up with work to be done to the property, this is the definition of bad rental management service and rental property management. Since you as the owner pay all the bills for maintenance, there is no real downside to having you pay for more work.
The more maintenance is done, the easier it will be to lease and for the rental property management company to collect 10% of gross. They get 10% of gross and they don’t have to pay for any of the repairs of the asset, but instead, they may get paid as a result of more maintenance! This incentive does not exist in our business model because we have great rental management service and rental property management.
Rental Property Management and Rental Management Service
For some investors who have hired and subsequently fired their property manager, this one detail was the cause for the dismissal. Ultimately, these investors learned that since the rental property management firm benefited from a property’s need for repairs, the rental property management firm would not be incentivized to bring in a high-quality tenant who wouldn’t destroy the place. Sadly, the more a tenant was likely to trash a property, the more potential revenue that a rental property management company with rental management service could earn from that deal.
How does a rental property management company with decent rental management service have the ability to move a bad tenant into a property? Most rental property managers and rental property service providers send rental applications of prospective tenants to the owner for the final review. As a way to control what the owner has to choose from, some property management firms have been known to only produce one or two potential tenant candidates. This forces the property owner to choose between a bad tenant and a bad tenant. This is bad rental management service rental property management.
Next, the property owner typically asks the rental property manager if the tenant is good or not. Herein lies another example of asking the barber if you need a haircut. The problem is, what may be a good tenant to a property owner may be a bad tenant to a rental property manager with bad rental management service rental property management.
Because when you factor in the 1/3 of the first month’s rent for re-leasing, it can behoove the property management company to continue to release the property. Unfortunately, the financial incentives for a rental property service company can sometimes be at odds with a property owner and their rental management service and rental property management.
Should a rental property service firm be hired to manage your property? In the previous real-world example, our student manages his property. Why? First, this student has a very solid rental property service system already established, from how to locate quality tenants quickly, to how to handle 3 AM toilet clogging calls, which is bad rental management service.
Second, all of the vendors needed to run a great rental management service system are already in place for him, from the eviction attorney to the maintenance person. Therefore, it is worth $100 per month for the student to manage the property without paying a rental property service firm. However, there are excellent rental property service firms out there. If the property is located far from the owner the property owner does not have their system and/or if there is no team in place, it is far better to have a rental property service company with great rental management service.
Innovative Property Management
The best of all worlds is a rental property management company with great rental property service that guarantees you will never have to worry about getting high-value tenants or getting overcharged for repairs. Since we are invested in the property as well, it’s in our best interest to get the best clients and do repairs based on necessity. This is why we focus so much on great rental management service and rental property management.
Our network allows us to get the best service in the area. This ensures that any work being done to your property is being done by reputable contracts that we trust and use frequently. The best workers we can find are always on the job because we understand that taking care of a property with great rental management service and rental property management increases value for everybody.
To conclude, our business model allows property investors to continually expand because they have to spend almost no time at all worrying about their current properties. From there, they can continue to research the market and make moves without hesitation. What better way to truly increase your wealth than by hiring a professional rental property service with great rental property management and rental management service?