Long Term Property Management
A key aspect of owning a property in another country is to consider how it will be look after and maintained. Also, if you are expecting to generate income from the property by renting it out, consideration needs to be given to how those prospective tenants will be sourced. Property Management companies in most areas of the US, with the more popular areas boasting many companies in this field.
Most property management companies that deal with overseas owners have 2 distinct divisions in their company that work in tandem to achieve the best results for the property owner. The first is in the area of maintenance. This is ensuring that the property condition does not deteriorate, or at least as little as possible (all overseas property owners should be concerned with this). The second area is that of generating rental income (if that is what the overseas owner wants). A good management company will balance these two, often-conflicting demands, to ensure that the goals of the owner are achieved. The reason the two activities can sometimes conflict is that renters generally produce wear and tear on a property, and therefore create maintenance requirements. The property manager’s job is to determine the most profitable use of the property, which isn’t always by maximizing the number of renters. For example, renting a property for $1,000 per week for 20 weeks may be more advantageous than renting the same property for $500 for 38 weeks. Not only because the overall income is higher, but also because the potential wear and tear on the property is reduced.
Buyers who are considering leaving their property in the hands of a property manager should interview a few potentials, and compare the pros and cons of each situation. Some property managers are better with certain sorts of properties, or better in certain geographical areas than others. In addition, companies will have different methods of charging for their services, either in terms of flat-fees, or commissions, and these to be borne in mind by the owner, and considered in view of their own personal aspirations for the property in question.
Short Term Property Management
In some parts of the US, there is a demand for short term rental properties, i.e. renters will be willing to pay to use the property for a vacation for just a few weeks. These types of properties are very attractive to overseas buyers who wish to use the property themselves, but also generate some rental income to help pay for the property. Care should be taken by the buyer who is looking for this type of property, as in some areas of the USA there are restrictions which prevent shortterm rental. A good real estate agent will be able to advise as to which areas do allow short-term rental.