A Skilled Property Manager isn’t Cheap & a Cheap Property Manager isn’t Skilled.

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Why The Cheapest Property Manager Isn’t Necessarily The Best

When it comes to choosing a property management company, it’s worth paying attention to that age-old saying that ‘you get what you pay for’.

Choosing the cheapest property management company may seem like a good idea at the time, particularly if you’re feeling the pressure on your bank balance after purchasing an investment property, but cheap is not satisfactory when it comes to protecting your very valuable asset and it’s important to choose wisely.

Very simply, property managers aren’t all equal and quite possibly, the one that’s offering its services at the lowest fee could also be the one that delivers the least amount of value.   Of course, as a property investor, you would be looking at maximizing the returns on your investment so you wouldn’t want to waste money, but saving a few dollars on cheaper property management upfront could very likely cost you a lot more over the long run.

Let’s look at why price is misleading when it comes to making a choice of property manager.

Firstly, you need to evaluate what the property manager is offering for that price. You should ascertain how many properties each person manages and what services they provide. If they have a multitude of properties on their books with only one property manager looking after them all, they could end up being too busy to focus on the important details of your investment.

You should check how often they will be performing inspections and whether they will be corresponding directly with the tenant to handle any maintenance requests and so on. Very often, a property management company that offers its services for at a very cheap rate will do little more than place tenants and collect rent every month, leaving the property owner to do all the running around.

And that brings us to another very important point – quality of tenant. A reputable property management company will have an extensive database of prospective tenants and a proven strategy for attracting quality tenants quickly and efficiently.   And that’s important because if the leasing real estate agent isn’t totally focused on getting your property tenanted with the right type of person as quickly as possible, you could end up with costly vacancies or a high turnover of inappropriate tenants.

The best property managers also know their areas very well, and they’re able to make informed recommendations about what rents can realistically be achieved, what property upgrades are necessary in order to make the property more marketable or if anything can be done to attract a higher rent, etc. They are also proactive when it comes to alerting owners when leases are due for renewals, advising owners of changes to state and federal regulations.

Warning bells should ring if a property management company that is offering cheap rates has a reputation for high staff turnover.   If the employees aren’t happy, you probably won’t be happy either.

Ideally, your property manager should pride themselves on their ability to communicate and the way they diligently return phone calls – as they do at Bev Roberts Rentals, Inc., leaders in property management in the North Carolina Triangle Area.   Another thing that sets Bev Roberts Rentals, Inc. apart from their competitors is that each property owner has a single point of contact with one real estate agent from leasing to property management within our company – and that’s not something that happens too often in the property management game. In addition We are a family owned and operated business. We believe that working together as a family gives us an advantage over our competitors and has been the key to our success. Our family is committed to outstanding customer service that goes beyond normal client expectations. It’s been proven that family owned businesses are more stable, and tend to have a high level of trust and commitment to customers, because how the company behaves reflects the family’s personal integrity.

If this level of service appeals to you, feel free to contact one of Bev Roberts Rentals professional property managers at (919) 306-5665 or visit our website to see what personalized property management service looks like at http://www.RobertsRentals.net.

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Welcome to North Carolina!

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On November 21, 1789, North Carolina ratified the Constitution to become the twelfth state. The vote came approximately two hundred years after the first settlers arrived on the Atlantic coastal plain.
#ThisDayInHistory #NorthCarolina #CaryNC

Rental Property Investing for Beginners: Smart Tips to Take Your First Financial Step Forward

house-moneyInvesting in rental properties is one of the best ways to begin accumulating wealth. You not only build equity in the properties you own as you pay them down, but if you work your numbers right, you should also be generating some positive cash flow each month. However, like any other type of investment, there are some things you need to know before diving into the deep end of the pool.

Here are some smart tips to get you started with rental properties:

Fix Your Financial Situation

Don’t do anything until you’re sure that your credit and finances are in good shape. If your credit history is questionable, you’re likely to have trouble acquiring financing. A high debt-to-income ratio is a red flag that will prompt most lenders to reject you right away. It would be best to take care of any outstanding debt before attempting to get financed for a house.

Educate Yourself

Before purchasing any properties, take a few months to familiarize yourself with the real estate business and learn what will be expected of you as a landlord. There are lots of books you can read and clubs you can join where you can meet other investors that can answer just about any question you may have. Social media sites are great places to meet investors, mortgage brokers and property managers. For all you know, the investor whose brain you decide to pick might end up partnering with you on a profitable deal sometime in the future.

Check Out Lots of Properties

As tempting as it may be to buy the first property you see that you think you can afford, it might not be a good idea. As a new investor, it’s going to take some time for you to learn how to spot a good deal and if you jump too soon, you may overlook something important and become discouraged when it doesn’t go as planned. Visit properties in different neighborhoods and ask to view units that are occupied (if it’s okay with the tenants). You’ll get a feel for what types of tenants you can expect to attract with each type of property in various neighborhoods and hopefully you’ll see what a well-managed rental looks like on the inside.

Prepare for Expenses

Although it does happen, it’s unlikely you’re going to slide right into a property that doesn’t need any repairs whatsoever. Even if nothing’s “broken,” it’s advisable to do at least some minor work to the property for the purpose of improving its appearance and curb appeal (think paint and landscaping). Furthermore, you’ll have to set some money aside for things like accounting, legal fees, garbage collection, pest control and vacancies. Remember that regardless of who your tenants are, they’ll probably stay for a few years and leave. At that point, the mortgage, taxes and other expenses on the property will have to continue getting paid, no matter how long it takes you to find new tenants.

Hire a Property Manager

Just because you’re investing in rental properties doesn’t mean you have to be the person answering the phone whenever something breaks in one of your units. Property managers make it their business to take care of these and other administrative tasks for you, so you can concentrate on other things, like looking for your next property. They can even find new tenants and screen them for you. Check out keyrenterchicagonorth.com for more information on property management services.

Think Realistically

There’s nothing wrong with being optimistic, but your expectations of this real estate investing endeavor should always be grounded in reality. You’re not going to become a millionaire overnight and some of the deals you get involved with may seem rather modest until you develop the ability to spot better ones. If you quit your job expecting to make a fortune, you could find yourself heavily in debt and in worse shape than when you got started. There’s lots of money to be made in this business, but you’ll have to look at lots of properties, learn various types of buying strategies and figure out cost-effective ways to handle property-related expenses.

Above all, learn to enjoy this new venture you’re undertaking. Get to know as many people in the business as you can and read every book on real estate or rental properties that you can get your hands on. The more you know about how things work and how to avoid the pitfalls, the sooner you’ll start making the kind of money that allows you to quit your day job and pursue this full-time.

Source: nuwireinvestor.com