Drip, drip, drip: can you hear that? It might be the sound of the roof leaking, or it could be the sound of your money draining away. If you have unused property, turn it from a vacant property thatís a maintenance worry into a home thatís earning income. How can you do this in a low stress way?
The Hidden Costs of Underused Properties
Your unused vacation home or that investment property you purchased may feel like theyíre out of sight and out of mind. Unfortunately, these properties have a way of moving back into your lines of sight when something goes wrong. According to the International Risk Management Institute, if a home is vacant for more than 60 days, ďif your policy is canceled or non-renewed for vacancy reasons, there are only a handful of insurers willing to insure a vacant home.Ē Quite simply, a property thatís unused is a property thatís at risk, whether itís from break-ins, unexpected leaks that grow larger in your absence, or common wear and tear thatís not noticed because youíre not there. Instead of being a potential liability, this property could be a wonderful asset to your portfolio, but you need to activate its potential.
Why Rent Your Property?
Renting your property is a way to make sure that itís well-maintained and an asset to the neighborhood around it. Itís also a way to gain extra income. You may need that income to pay the mortgage on the property, work on upgrades so that you can turn it into a vacation home for yourself, or keep the rental income flowing so that you can use it as a retirement nest egg. Renting that property turns it from a potential liability into a positive, working asset.
How a Rental Property Management Company Can Help
Whether you own a vacation home that you rarely use or you are considering downsizing and would like to consider keeping your current home as rental income, rental properties can be a true asset, and they can be hassle-free. But because finding and interacting with tenants and keeping up with the regular maintenance of the property can be challenging, many people do not take advantage of this opportunity.
If you live out of town or youíve been avoiding another rental because you just donít have time to manage all of the issues that come with a rental property, youíre not alone. And thatís why rental property management companies have become so popular. A rental property manager is just like you, except better. With a staff thatís on call to manage your property, theyíll get the panicked calls about the burst water pipe, and theyíll have the vendors and experience in place to get it fixed quickly. If your property needs personal attention, theyíll be able to perform maintenance or inspections. When youíre unable to manage your property, a management company takes the hassle out of managing the rental process. You can still be involved in decision-making, but you donít need to work on the day-to-day details.
What Services a Rental Property Management Company Provides
What will a rental property management company do for you? It can help you manage tenant intake, finding new tenants, screening them, and working on move-in, move-out. A rental property management company maintains your property on a regular schedule and schedules regular inspections to ensure that any problems are caught before they become unmanageable. Management companies also track whatís going on with your property, so that you understand its history and the expenses that it has incurred. Finally, rental property managers are there for your tenants. If an emergency occurs, theyíre the first line of contact, not you.
What to Look for in a Rental Property Management Company
Of course, not all rental property management companies are created equal. When youíre looking for a partner to help you manage your property, look for a company that has exceptional customer service and data management systems. Work with a company thatís able to focus on your geographic area, giving your property the attention that it requires. Look at the load of properties that each manager has to work with: does the company charge enough and have enough staff, so that each property receives an adequate amount of time? As stated at U.S. News.com, ďA good property manager makes the difference between a hassle-free income and a stressful nightmare. Even with an ideal property, the property manager makes the difference between a good performer and a money pit.Ē
You donít have the time or energy to manage your rental property, but you know that for many reasons, it would be better to find a tenant. You need a professional to manage your property. Looking for a rental property management company? Lori Gill and Associates can help you find tenants and maintain your investment.