Here’s a secret of the rich. All of them have multiple income streams that they slowly (or quickly) built on their way up. It’s a good mentality to have actually, not putting all your eggs in one basket. It’s how you create financial security and freedom. Don’t we all want that for ourselves? So, the question now is how and where to start.
How about starting with property investment? If you’re one of the lucky people who have vacant properties or vacation homes stashed away somewhere, it’s time to get serious about generating income from that untapped asset. Sure, you’d like to keep it so that your family can somehow turn it into the vacation home of your dreams. Or maybe it started out as an investment property but promptly forgot about it, after all, out of sight out of mind, right?
People buy investment properties but don’t convert them into income generating assets right away for a number of reasons. They tell themselves that they’ll put it out on the market once repairs are done, renovation is finished, the economy is more stable, or when there’s a new president. In the meantime, the investment property turns into an idle asset that just sits there instead of being able to bring in more money.
Did you know that idle or underused properties cost you big money?
When you get down to the basics, a property that is unused is a property at risk. That investment property you bought in the hopes of turning it into an income generating stream has fallen to the wayside and will not be back in your line of sight unless something goes wrong with it. What could possibly go wrong with an unused property, you ask? Well for starters, even unused properties need maintenance. The roofs could leak. The windows might need repairs. The hedges could engulf the property. And it’s not just the usual wear and tear that you have to look out for. An unused property can be at risk for break-ins.
Renting out your idle property isn’t just a way to get more income. It is actually a great way to ensure that the property is well cared for. Renting it out turns a potential liability into a working asset.
Here’s how a rental property management company can help
Investment property owners need to get out of their own way and leverage the help of professionals. A good rental property management company can make sure that your rental property becomes an asset to the neighborhood and the community. They can make sure that your property gets ready to be put in the market. They can match you up with tenants that will enjoy living in your rental property. They can take care of applications and background checks and make sure that the tenants you get are trustworthy and able to fulfill their part of the contract. A great rental property management company will be able to take care of tenant interaction. They’ll be there to take the panicked calls of tenants with burst pipes. They work with excellent vendors that they can call in anytime there is an emergency. They’ll make sure that repairs are done and safety measures are in place. They can give your property the personal attention it needs in order for it to be a star asset to your financial portfolio. When you’re stuck and don’t know where to start with converting your investment property into an income generating rental property, they can come in with their expertise and advise you on how to start. They could be a valuable guide. They can help you kickstart your rental property business. They can take the hassle out of managing the rental process. You will still make the big decisions, but you can leave it to them to manage the day to day aspects of running the rental property as a business.
The services that a good rental property management company provides can be very valuable to you
So what exactly can a rental property management company do for you? Let’s start at helping you get your property market ready. It’s not just about putting on a fresh coat of paint and screwing in some lighting fixtures. It is about getting advice on how to price in a competitive rental market. It’s about helping you get your legal documents ready. It’s about helping you get the inspections and certifications out of the way. It’s about helping you advertise your property on listing sites.
Next comes tenant intake. Rental property management companies can help you find tenants and match you up with perfect ones. They can help you with screening. They can help your tenants with the move in (or, eventually, the move out) process. They can help you with rental property maintenance and regular inspections. Some good rental property management companies can also help you track history, expenses, and help you do auditing and accounting. They are also the tenants first line of contact – you won’t even have to deal with leaks or lights yourself. When a tenant calls for emergency repairs, they’re there.
How to know if the rental property management company is the real deal
● Look at their track record and their history.
● Have they been around long enough to know what they’re talking about? Older companies have an edge here, BUT most of the new companies are started by people who have been in the business long enough to learn the ropes. So don’t discount anybody. Look for certifications and history.
● Who are their clients? Are they satisfied clients? Any company worth their salt would come highly recommended by satisfied clients. It doesn’t matter if it’s a small pond or a big pool of clients. You should always look for good reviews.
● How are their customer service and data management? Work with a company who treats all their clients well, not just as numbers for their business. Look for a company that values privacy since they will be dealing with sensitive and personal information once you hand over management of your rental property to them.
At Davis Property Management, we are the real deal. We can help you turn your idle property into a positive and star performing asset. Learn more about how we can take care of you and your rental property. Schedule a consultation with us today.