You've heard the stories about the financial benefits of purchasing rental properties. You picture yourself as the wealthy landlord with happy tenants and an abundance of steady income. If you could just build your portfolio with rental properties, you would never have to work another day in your life. After purchasing your first property and finding a tenant you were thrilled with how simple it was and decide to purchase another property or two. This is when reality began to set in.
That lovely young couple that rented your first property now have a child and he likes putting things down the toilet. The second property needs a new roof and the basement keeps flooding. The third property isn’t even rented yet. You’ve spent so much money on repairs and the tenants are constantly late on rent payments. You’re not even making money on the third property.
You’re seeing that there’s so much more to being a landlord than you thought. There has to a way to get all of this under control and start to make a profit again. You heard from another investor that they use a property management company and all of the headaches and sleepless nights subsided. You’re not sure if it would work in your situation, but, at this point, you’ll try anything. So, what can a property management company do for you?
A property management company will not only take over the collection of rent payments, but make sure that they are collected in a timely manner and take care of any eviction proceedings, if necessary. The same company will also take those phone calls about repairs, sending their own maintenance person to handle the problem, that is, unless you have someone else in mind you would like to use for repairs. Those pesky tax, water and sewage payments will also be taken off of your plate.
So, what about that vacant property that you have yet to find a tenant for? Well, they will advertise your property, screen applicants and make sure that property never stays vacant for too long. Your property will be advertised in ways that would take you forever to do and that’s if you have the time and money to put it online to so many sites, monitor activity and reply to prospects. Your property will be on the radar of every agent with a qualified tenant and any other prospect that is looking.
You also won’t have to worry about record keeping, because they will take care of all that too. In short, they will make sure that your investments are handled with care and your tenants are taken care of. They will also handle the dirty work should the time come that a tenant has to be taken to court. You are kept up to date, payments keep flowing and you see a check for your properties at the end of the month.
When you think about investing, also take into consideration the time and energy it takes to manage your investments. In the quest to build wealth, there are times when you must delegate to others the things that cause you the most stress. The last thing you want to do is give up on your real estate investing goals, because it turned out to be harder than you expected. You focus on investing and let someone else worry about managing your investments.