Being a real estate investor can pay big dividends. It can also cause a lot of headaches if you don’t know what you are doing. Some try to do it all and manage their property themselves. It’s more than just mowing the lawn. The do-it-yourself usually don’t last long or have no spare time. Just having to ask for a late rent payment one time can be very stressful. Unless your property is very small and close by then your best bet is to use a property manager. Here a list of reasons why.
Your property must be inspected regularly for damage, erosion, and vandalism. Don’t count on tenants to do this for you. They might even be the source of the problem. Plus any improvement projects need to be monitored. A property manager can do this for you.
Whatever the reason – accident, fire, or storm damage – you want someone to answer the phone and provide a quick response. Experience counts here and mistakes can be costly. This is one area that should not be left to chance.
Do your building and property respect all the local zoning codes and laws? When a new code comes out are you aware of it? The property managers keep track of this so you don’t have to. You don’t want to have to pay a fine just because you were too busy to keep up. This is one area often overlooked by those investing in real estate.
You have rent to collect, but you might not have the time. Plus, if a payment is late, you don’t have the time to be chasing down the payment either. This is one of the property manager’s most important jobs. Any other charges can be handled by them as well, and all accounting is centralized.
In addition to the accounts payable, all costs and taxes can be recorded by the property manager. Everything is kept well organized and up to date. When tax time comes the records are ready at a moment’s notice, and you can make the best of any deductions due to you. Less paperwork for you is a good thing.
One of the biggest costs of any building is heating and cooling. An inefficient system loses money quickly. A good system can become inefficient if it is not checked regularly. All of these details are handled by a good property manager. In this case, the cost, or savings, can be in the thousands of dollars.
There is nothing like investing in brick and mortar. You have a visible long-term investment. However, like any investment, there are risks and responsibilities. A property manager is a form of hedging your risk. This secures the return on your investment. You provide a property that is a joy to live in, and in the end, you might save money.
What is the Role of a Letting Agent
Letting agents play a very important role in matters related to land and property. An experienced letting agent can help make or break a deal between a property owner and a tenant. Letting agents provide a lot of services to tenants and property owners. In this article, we will tell you what services letting agents offer.
What Are the Services Offered By a Letting Agent?
1) Background and Credit Checks – Once a tenant makes an offer to a property owner, a letting agent would do some background research and make sure that the tenant has a sound credit history. Letting agents talk to banks or financial institutions, references from employers, and previous landlords. They make sure that a tenant will be able to make future payments easily and any payments will not be delayed. Experienced letting agents can assess potential tenants and even advise if they feel a certain individual would not be suitable.
2) Inventory – Once a tenant feels that a tenant would be suitable; he draws an inventory and condition report. This will record the condition of the property including furniture, wallpaper, paintwork, sanitation facilities, and carpet. A letting agent will also record the entire contents of the property. Once a tenant leaves the property, a letting agent would check if all the things are in order and nothing has been misplaced. Any wear and tear are also taken into account.
3) Agreement and Paperwork – Tenancy agreement can be easily purchased. However, it is better to let a letting agent handle all the paperwork. A letting agent can give you better legal coverage by revising the agreement through professional property lawyers. A letting agent will develop an agreement that is beneficial for both parties. A tenancy agreement should include:
1 Length and cost of the tenancy
3 Responsibilities of the tenant
4 Miscellaneous properties important to a property
You should also include a clause in your agreement that allows a letting agent to begin showing your property to new potential tenants in case the existing tenancy has nearly finished. This will make sure that your property does not remain vacant for a long time.
4) Property Management – A letting agent will handle all kinds of routine affairs related to your property. Due to this, you will not have to spend any time worrying about various matters related to the property. A letting agent will collect the rent on your behalf, arrange for any maintenance repairs, alert the owner about any major issues, and periodically visit the property to check that everything is fine. A professional company will also make sure that the tenant is satisfied. With the help of a letting agent, a property owner will not have to collect the rent on his own. The relation between a tenant and landlord will be cordial. Moreover, a landlord will not have to worry about any delayed payments.