"It's 2:00 a.m. and the telephone rings. Startled, you sit up and pat your hand on the dresser in a desperate hunt for the receiver. A voice at the other end is all too familiar. It's Helen, your tenant and constant phone companion. She's not sure, but thinks there may be an animal in the house because she heard a noise."
You are relieved that the world will go on another day and annoyed that Helena has awoken you from a sound sleep yet again. As the landlord, you are probably all too familiar with the nervous Helena, whiny Erwin and house wrecker Sam and his college buddies. What does this all mean? Welcome to the world of do-it-yourself real estate management. Many eager property investors step into something they were just not ready for - how to efficiently and effectively manage a property, not to mention a growing portfolio Helena's and Sam's. Investment properties and their management is a reality that many people aren't ready to deal with.
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.
Communication is essential when managing rental properties. Clear and to the point communication eliminates misunderstandings and keeps both tenants and owners happy. This results in fewer problems, a lower turnover rate and good tenants. In order to maintain this balance, it's important to stay in touch and maintain regular visits for upkeep.
Sudden disasters at the property that require the landlord's attention seldom occur at convenient hours. Many property owners invest their money without regard to the maintenance issues and find themselves torn between their income producing job and their investment property. Vacations become a thing of the past when adequately trained short-term replacements are hard to find.
Alleviation of the annoyance of tenant phone calls at all hours of the day and night only comes when there is a property manager to field communications and establish regular, scheduled visits and upkeep which takes care of many disasters prior to them happening. Property managers also have the skill to see major problems in the making because of their experience in dealing with properties.
Another large aspect of property management falls under dealing with tenant and tax laws. Reading and keeping up with the ever changing rules and regulations is part of the property managers' job where they assist the property owner to avoid costly mistakes that could wind up in the thousands of dollars of fines, penalties and fees.
Many property owners will find that having an experienced property manager running their investment portfolio is a dream come true, reducing frustration and misunderstanding for all parties concerned. It also works out that it saves the property owner a significant amount of money in the long term and that the properties are well maintained and costs are reduced. Using a property manager to maintain an investment portfolio is only limited by size and balance. Usually a good property manager can handle between 85 to 100 properties, before there is a need to hire more experienced help.
Property managers, like any other professional, operate at peak efficiency when they maintain a comfortable workload. Many times a heavy workload produces unacceptable results. Efficiency levels diminish after the property manager assumes responsibility for more than 85-110 properties. It's important to find out the ratio of managers to property before you contract with a firm.
You are relieved that the world will go on another day and annoyed that Helena has awoken you from a sound sleep yet again. As the landlord, you are probably all too familiar with the nervous Helena, whiny Erwin and house wrecker Sam and his college buddies. What does this all mean? Welcome to the world of do-it-yourself real estate management. Many eager property investors step into something they were just not ready for - how to efficiently and effectively manage a property, not to mention a growing portfolio Helena's and Sam's. Investment properties and their management is a reality that many people aren't ready to deal with.
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.
Communication is essential when managing rental properties. Clear and to the point communication eliminates misunderstandings and keeps both tenants and owners happy. This results in fewer problems, a lower turnover rate and good tenants. In order to maintain this balance, it's important to stay in touch and maintain regular visits for upkeep.
Sudden disasters at the property that require the landlord's attention seldom occur at convenient hours. Many property owners invest their money without regard to the maintenance issues and find themselves torn between their income producing job and their investment property. Vacations become a thing of the past when adequately trained short-term replacements are hard to find.
Alleviation of the annoyance of tenant phone calls at all hours of the day and night only comes when there is a property manager to field communications and establish regular, scheduled visits and upkeep which takes care of many disasters prior to them happening. Property managers also have the skill to see major problems in the making because of their experience in dealing with properties.
Another large aspect of property management falls under dealing with tenant and tax laws. Reading and keeping up with the ever changing rules and regulations is part of the property managers' job where they assist the property owner to avoid costly mistakes that could wind up in the thousands of dollars of fines, penalties and fees.
Many property owners will find that having an experienced property manager running their investment portfolio is a dream come true, reducing frustration and misunderstanding for all parties concerned. It also works out that it saves the property owner a significant amount of money in the long term and that the properties are well maintained and costs are reduced. Using a property manager to maintain an investment portfolio is only limited by size and balance. Usually a good property manager can handle between 85 to 100 properties, before there is a need to hire more experienced help.
Property managers, like any other professional, operate at peak efficiency when they maintain a comfortable workload. Many times a heavy workload produces unacceptable results. Efficiency levels diminish after the property manager assumes responsibility for more than 85-110 properties. It's important to find out the ratio of managers to property before you contract with a firm.
About the Author:
About the author: Paul T. Robertson highlights the benefits of property management to protect your most important asset. Take a look at the "InHousePropertyManagement" website for expert advise on how to efficiently and effectively manage your property and save time and money.
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