Why go it alone when you have years of expertise on hand just for the asking.
Since the 1800s, real estate investing has been a popular choice for people wanting to earn passive income. Back then, legal agreements to invest in real estate were through land trusts. Today, the two most common methods are either direct ownership of property or through partnerships.
Throughout history one thing has remained the same: real estate investment involves more than just buying, renting, and selling properties. Well-thought-out, strategic planning is essential and property management is a major reason why real estate investing can become a success (or a failure).
What is Property Management?
Property management is the daily supervision of residential, commercial, or industrial real estate by a third-party contractor. Generally, property managers take responsibility for day-to-day repairs and ongoing maintenance, security, and upkeep of properties. Additional tasks involve rent collection, tenant screening and selection, lease agreement enforcement, and can include financial management. Property management ensures that the property is well-maintained and the tenants are satisfied, resulting in a profitable ROI.
Here are five top reasons why property management is crucial to real estate investing:
Higher ROI
A well-managed property will most often generate higher rental income and increase the property value. If the property is well-maintained and keeps satisfied tenants engaged for longer periods with less overall vacancies, more often than not, the results are higher ROI.
Retains Property Value
Consistent property management helps maintain the property’s condition, ensuring it remains attractive to potential tenants and buyers. Well-maintained properties have a higher resale value and appreciate in value over time. Even if a property is vacant for a short time, it is essential that the condition be maintained on a regular basis.
Less Vacancy
A vacant property means no rental income. The longer a rental property sits vacant, the greater the loss of revenue. Having the services of a property management company helps minimize vacancy periods because quality tenants are scrupulously vetted. A good property management company will have an ongoing process connected to efficient marketing and advertising of the property to ensure less vacancy year-round.
Happy, Long-Term Tenants
Property management plays a crucial role in ensuring tenant satisfaction and retention. A reliable property management company will understand fully what it takes to retain quality tenants. One proven way of doing this is actively listening to tenants and quickly resolving issues or asks. A satisfied tenant will always be more likely to renew their lease, which leads to a unwavering rental income stream.
Legal Compliance
A comprehensive property management company will ensure that the property consistently adheres to all legal requirements, including health and safety regulations, fair housing laws, and lease agreement enforcement. This should include the complete handling of bad tenants who force the issue of eviction. Proper legal compliance by a reliable property management company can help avoid costly lawsuits and penalties.
Cousin James Management has been helping property owners throughout North Texas for more than 26 years. Because Cousin James Management is a family-owned business, it’s only natural for us to treat our clients like part of our family. We take immense pride in caring for our clients’ properties with the same attention to detail as we do for our own. Your property investment is in trusted hands with Cousin James. Contact us to discover how stress-free being a rental property owner can be!If you have unanswered questions about how to select the best property management company, you will benefit from our free download which provides a helpful checklist to help you make an informed decision. Download it here.
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