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With
interest rates as low as they are these days, many investors are
getting in on the action and buying properties to rent out. In fact, what used to be a market where renters were paying less rent than homeowners were paying in mortgages has now flipped around. Property
owners that are paying a mortgage can demand rent that is at least a
few hundred dollars higher, if not more, yielding a sizable “instant”
return on investment.
We
talked to a property manager to find out where the rental market stands
today and why it makes sense to hire a management company as opposed to
tackling it all on your own.
What’s Happening in the Rental Market Right Now?
The
most notable difference in the rental market recently as opposed to
just a few years ago is that we are finally witnessing an improvement in
tenants’ ability to support rental living. With the economy slowly gaining momentum again, rent values are heading slightly up or at least remaining constant. Some
markets that were exhibiting declines in rent values are now seeing
rates that rival those from 2008, a much stronger rental period across
the board. Keeping with the
positive trend, areas that showed stable rental statistics between 2008
and present will likely experience a bit of an increase or at least
remain flat.
Why Would Some Use a Property Management Company?
At
a time when the economy seemingly has a long way to go before a
complete recovery, many potential or existing owners of rental
properties may be reluctant to spend on having their property managed.
However, there are several reasons that it makes sense to hire a
management company to handle all aspects of the rental business.
First,
the process of screening tenants, handling all background checks,
leasing units to those with approved applications and assisting with the
move-in process is managed by the company. Promotion
of the location, attracting viable tenants that fit the desired
demographic profile plus communication and operations – are all things
that fall within the parameters of a property management company.
Also,
document maintenance and preparation that comes in handy when it comes
times for accounting and taxes is also managed. Depending on the number
of units in the property, the amount of paperwork can be staggering. With someone handling all of these details, it allows the property owner to focus on other things.
By
hiring a company to handle all on-the-ground aspects of running the
property, the investor is then given a lot of freedom to travel or spend
time in another county, state or country while continuously yielding
the benefits of rental income and rental property ownership.
Finally, one of the most tedious aspects of rental properties is the need for 24-hour maintenance. Late-night
emergency calls, routine and other maintenance issues, assistance with
grounds keeping plus other upkeep tasks are all managed by an
experienced, organized staff that is well-versed in managing these
aspects of rental units.
~
If
owning a rental property sounds good to you, be sure to consult with
your Realtor to find the best properties available out there right now. And
of course, by hiring a property management company you can enjoy
flexibility and freedom while at the same time be rest assured that your
property and tenants are in good hands!
