Correcting Property Management Service Myths And Notions

Real estate can be unpredictable. Learn tips and tricks you can use to keep your finances in check throughout the buying or selling process.

Correcting Property Management Service Myths And Notions

7 June 2017
 Categories: Real Estate, Blog

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.

About Me
Talking About Real Estate Finances

Welcome to my website about real estate finances. My name is Reina. I would like to talk to you all about the financial aspect of buying, selling and renting real estate. I will share tips and tricks you can use to keep your finances in check, even when the market feels unstable or you have to dip into your savings for yet another repair. I will also discuss the pros and cons of hiring a property management company to assist you in the renting process. I hope you will follow along and learn all you can about managing your real estate finances. Thanks for visiting.