Your clock registered 3:15 a.m. The phone is ringing and you scramble to wakefulness desperately searching blindly for the receiver. Surely, it is something terrible for anyone to call at this late hour. The voice on the other end of the phone is your tenant complaining, no whining, and no squeaking about a possible home invasion by something big, furry, and possibly canine in origin. Then again, it might just be the rental property settling on a windy night. She’s not sure. She has barricaded herself in her bathroom, dragging the cordless phone with her, and she has called you. You begin to question the value of buying real estate rental properties.
If you are a landlord, this scenario probably seems familiar. Thousands of people across the country get involved with real estate and choose to manage it themselves only to find they burn out very quickly. Many of those eager property buyers had no idea the amount of time and expertise that it takes to efficiently manage a property.
There are a plethora of unexpected problems that can burn out a novice faster than a flash flood can take out a house. Making money in real estate is more than what’s listed in brochures and presented in seminars. Selection of appropriate tenants requires a good deal of expertise, and it is at the heart of rental success. What makes a good property manager is knowing when to ask the right questions, having the correct forms to fill out and to get as much information as possible from the prospective tenant. If there’s going to be a mistake that gets you Sam and his college pals, this is when it’s going to happen. These mistakes can cost a property manager thousands of dollars in lost time and materials yearly.
For example, in Queensland, Australia in 2006, 63.7% of the disputes filed by tenants involve properties that were managed by property owners. Surprisingly, property owners counted for only 12.7% of the market share, and this 12.7% was involved in nearly 2/3 of the disputes filed. Of the other 87.3% of the properties, these were managed by property managers and not the owners. In these cases, only 36.3% of the disputes were filed. Saved legal fees alone could wind up paying for a decent property manager and the stress and headache of trying to do-it-yourself would be eliminated.
Maintaining excellent communication has proven to be essential in effectively managing rental properties. Keeping tenants happy comes down to good communication and reducing misunderstandings that could lead to disputes if left unattended. Preventing high turnover rates and maintaining only a high quality of tenants comes down to making scheduled visits for upkeep and avoiding sudden disasters before they occur.
Disasters in properties tend to take up all of the landlord’s attention and they seldom happen at a time when it’s convenient. As a result, property owners will invest great sums of money with little regard to the income that’s being produced from the property. Vacations and holidays disappear in the maelstrom of repairs and crises.
The ever-changing landscape of tenant law and tax law create new reading materials and record keeping nightmares for the average landlord. A mistake in these areas cost thousands of dollars in fees, fines and penalties.
Many people realise after a few bad experiences that the knowledge of a good property manager gets rid of the bulk of their frustrations and will save them a significant amount of money in the long run. Property managers who plan, execute and maintain a building, communicate on a regular basis with the tenants and provide lower upkeep costs and a better selection of tenants. Good property managers will take a proactive approach to maintaining and dealing with problems which reduces costs overall. When a landlord relinquishes control into the hands of a person skilled in property management, record keeping is no longer an issue and the property owner can get on with his life confident that problems and decisions will be solved in a timely manner.
There are a number of qualities to look for when shopping around for a property manager. A veteran property manager will have a good knowledge of the changes being made in real estate law. They will be able to interpret the complex rental rules and regulations. They will communicate with both parties on a regular basis – property owner and tenant. Sudden repairs as well as long term maintenance will be handled and a step-by-step plan will be implemented for scheduled maintenance and inspection to eliminate high repair costs later on. Good property managers return phone calls efficiently, and are proficient at handling arrearage in a way that is both professional and effective.
Professional property managers tend to operate in a manner that generates a comfortable workload, reducing heavier workloads by increasing efficiency levels and maintaining a balance. It is important to get enough property managers to handle the number of properties you have: 85-110 properties per manager is about average before levels decrease.
If you want proactive Property Management now, contact the specialists at In House Property Management for a no obligation quote.