Owning rental properties can provide an excellent source of additional income to you and your family. However, assuming the responsibility of being a landlord can be a major decision, and it is important to understand the full range of impacts and implications that this decision can have on your life.
Myth: There Are Not Legal Consequences For Improperly Managing Your Units
Individuals will often assume that improper management of their rental units will not pose significant legal risks. However, there are a great number of rules and regulations that will have to be followed if you are to comply with the law when it comes to renting to tenants. Failing to comply with these regulations can lead to steep fines, lawsuits and terminated leases. As a result, it is essential to verify that your rental properties are being properly managed so that you can avoid these potential risks.
Myth: You Must Directly Manage Any Rental Properties That You Own
There is another commonly held belief that you will have to directly oversee any properties that you own. However, this can be an extremely time consuming and labor intensive task as it will involve screen tenants, handling evictions, collecting rents and addressing maintenance issues. Fortunately, it is possible to hire a property management firm to handle these aspects of renting units for you. In addition to ensuring compliance with the applicable regulations, these services can help ensure that your tenants have an enjoyable experience in your units, which can help to increase your occupancy rates and the rental fees that you can charge.
Myth: A Property Management Company Is Too Expensive For Individual Landlords
Often, those that only have a handful of rental properties might assume that they will be unable to afford the use of these services. While property management firms must charge fees for their services, these fees are usually based on a percentage of the rent for the units that they manage. This fee structure allows landlords to utilize these services while minimizing the out of pocket expenses. A deposit to pay for emergency repairs may still be required, but any remaining funds will be refunded at the end of the service contract.
Retaining the services of a property management firm can be a great way of enjoying the income that rental units can provide while minimizing the amount of work and legal liability that comes with renting to individuals. By appreciating the viability of this option, you can help to ensure that your rental properties are as trouble-free as possible.