A rental property is a valuable asset, especially when it is profitable and you don't have to handle the day-to-day management. By hiring a property management agency, you can hand over the busy side of your rental property and focus on acquiring new investments or your own daily projects—but it is important that you select the right management agency. The following are some details to look at with a property manager and their business when you are evaluating them to hire to manage your rentals.
The lease contract that a property manager uses on their rentals is an important detail for a rental property's success. You should look for a lease contract that is thorough and covers all the essential areas of a rental agreement to protect the property owner and the property and list out requirements for the tenant to help maintain the property. There should be a rental due date and a late fee written into the agreement, along with details about legal action when the rent is not paid to protect your financial interests.
Make sure the rental agreement also includes details about pets, parking, quiet hours, maintenance issues, and inspection details. There should be regular inspections completed on the property, whether they are quarterly, monthly with pest control, or semi-annually, as examples. It is important that your property has a visual inspection inside and out to make sure the tenants are keeping up the property properly.
Market Rent Knowledge
A good property manager should also have excellent market knowledge of the areas to help price your rental. When you first sign on with a property manager, their consultation should include market rent information and a recommendation of where to price your rental. A correct rental price is essential so you can attract the right renters and you are not pricing it too high, but you are also not pricing the rental too low and losing out on potential rent income.
Along with pricing your rental appropriately at the start of your management agreement, your property manager should continue to monitor the rental market for any rent changes. Rental rates traditionally increase a small percentage each year, but in some markets, this can change more dramatically. If there are higher rent increases in the market or even rent decreases, you will want to stay on top of this pricing in your rental so you can stay competitive.Share
29 July 2022
When I started looking for a new home, I realized that there were a few things I needed to be careful about. For instance, I really needed to focus on finding a home that would appreciate in value, so I began thinking about investing in the right property. After quite a bit of research, I was able to find a great neighborhood that had a big support system for my family. After we found a house we loved, we worked with a real estate agent to procure it, and it was really nice to feel like we belonged somewhere. Read this blog about ways to find amazing pieces of real estate the first time around.