Pros and Cons of Long Term Property Management
By: Shannon Watson •
Something interesting is happening in the United States’ real estate market. It’s a trend worth watching for the shrewd investor.
During the recent recession, many homeowners who would have sold their properties chose to rent them rather than sell at a loss. Now that markets are recovering, owners are selling in increasingly large numbers and leaving a void in the rental market. This has led to a huge demand with very little supply in many areas. If you are considering investing in long-term rentals, business is booming.
A reputable property management company can make the process go smoothly. In tight rental markets, using a professional company can assist with locating and screening applicants by utilizing a background check and handling any lease agreements. They also handle accepting deposit and rent money as well as maintain rent collection records for the owner.
Building and yard maintenance can be an issue for any owner, but it is increasingly difficult for the owner who does not have the luxury of stopping by at short notice. Property management companies arrange maintenance to minimize property damage and most personally inspect the property as tenants move in and out of units.
The challenge to the investor is vetting potential property management companies. This company is your representative with any potential renter, and as they represent you, be sure of who you are getting. Conduct your own thorough check of any management company’s track record and be sure to examine their references.
Communication between you and your property management company is crucial. Many property management companies communicate well until you have signed a contract with them. Make sure you understand and agree to a clear plan to keep communication thorough, open, and timely before you sign on the dotted line.
Pros of property management, cons of property management, Property management in America