The Benefits of Using a Quality Property Management Company

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Property ownership can be a rewarding experience, solid investment and provide a sound revenue stream. However, it doesn’t come without certain trials and tribulations that are part of being a landlord. From maintenance expenses and upkeep to acquiring and managing tenants, owning property can be a drain on time and resources if not run correctly- that’s what a property management company does. These companies are paid by the property owner to take care of the nuts and bolts that are associated with ownership. A good property management company will take care of marketing the property, finding and screening applicants, and maintenance and repairs to the property as well as managing tenants, collecting payments, and issuing deposits and notices. Essentially, these companies do the grunt work for property owners so they can focus their energy elsewhere.

In addition to granting owners more time, property management companies provide a host of other solid benefits. They supply:

Higher Quality Tenants
One of the many jobs of a property manager is to find quality tenants to fill vacant properties. They thoroughly screen applicants by examining factors such as their rental history and credit score, calling their references, and even interviewing them to determine if they would be a good tenant. This process ensures that properties are filled with desirable tenants who will take care of the space, make their payments on time, and produce a steady income for the property owner. Management companies have vast experience sorting through applicants, and can spot warning signs and red flags easily.

Shorter Vacancy Cycles
The owner isn’t making a profit if their property isn’t occupied. In fact, unless they own the property outright, during times of vacancies owners typically have to make the mortgage payment out of their own pocket. When a property is occupied tenants’ rent can be put toward the mortgage payment or used as income. Property management companies take care of marketing and advertise properties to the appropriate audience and see that the vacancy is filled.

Better Tenant Retention
Tenant turnover requires additional time and money to clean, market and fill the space, all of which is costly for owners. To avoid turnovers and vacancies retaining quality tenants is imperative. Property management companies serve as a point of contact for tenants and are immediately responsive to their needs. If there is an issue that needs to be addressed it’s their job to handle it, and they work hard to keep quality renters satisfied. Property managers also handle lease renewals and are familiar with the market, so they know how to entice tenants to stay.

On Time Payments
Landlords don’t make a profit if their tenants don’t make their rent payments on time. It may seem innocent to overlook one late payment, but once a pattern of truancy is established it can be a difficult hole to dig out of. Inconsistent payments can put a heavy financial strain on a landlord who has to cover the mortgage costs out of their own pocket-punctual rent collection is a must for consistent cash flow. Instead of owners dealing with awkward confrontation and repeated excuses, it’s a property manager’s job to collect rent on time and enforce the lease agreement if payment terms are not met.

Instead of bearing the on the hassle, headache, and heartache that comes along with being a landlord, it makes sense to hire a property management company to deal with the unpleasant aspects of property ownership for you. No, their services do not come for free and yes, you do have to pay a fee, but the benefits reaped in money and time saved are well worth it.

Article Source: http://EzineArticles.com/9563750


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

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The Importance of Hiring a Property Management Company

The-Importance-of-Hiring-a-Property-Management-Company

In this age of independence and mindset that one can manage on his own, it is inevitable that a property owner would think he will do fine on his own. Sure, you got tenants who at first, pay on time until gradually they won’t, some will breach the contract and lease terms, then they cause problems with the neighbors and other tenants, then slowly you will notice you are losing money and when you decide to evict the tenant, next thing you know, you have a lawsuit at your doorstep.

The reality is if you use the services of a professional property management company, not only do you have peace of mind, your investment is protected and the consistent cash flow you receive through rent can assist you to buy additional investment properties.

This is why you need the assistance of a property management company, but before that, we will determine the pointers on why it is important to hire one.

Determining the Worth of Your Property

The problem with inexperienced owners is that sometimes they get overwhelmed on how they price their property to the market: oversell and you have to deal with the high vacancy rate with no profit, undersell and you will realize you are slowly losing profit. This is where a property management company comes in, they will help you determine a balanced meal where you gain tenants and continue to rake in profit.

A property management company is also well-versed in marketing your property and placing ads where it will attract tenants. They will answer any inquiry and they know what entices a prospective tenant, therefore will help you point out some cosmetic improvements so that the tenants will feel that renting your property is worthy of their money.

Avoiding Major Problems with Tenants

Screening tenants would not be one of your problems anymore because the property management company will take care of it. They know too well how to check the background of the interested tenants, their criminal records, their relationship with previous property owners and if they have ever caused problems before. Think of it as helping you weed out the bad ones for a healthy and bountiful crop.

Collecting rents is the most common problem in renting out your property. When left to your own devices, having your tenants pay you on time will become a child’s play of hiding and seek between them and you as the property owner, certainly some tenants will tug at your heartstrings and gain your sympathy with the hope that you will let them get away with it. A property management company, however, will become the middleman who will ensure that the tenants abide by the lease terms and should understand that they are just doing their job for you, keeping your cash flow consistent.

Maintenance

When a tenant has reached the end of the contract, the grueling process of turnover will usually keep you busy as a property owner, but with a property management company by your side, that is another pile of stress that will be taken care of. Any deductions from the security deposit will be made and returned to the tenant, and the restoration process of repairing any damages, repainting, changing locks and cleaning the property would be done without getting your own hands dirty.

As a property management company, expect that they know the right people to contact should there be any problems with leaks, wiring, and plumbing experienced by the tenants and their dilemmas will be addressed promptly.

Saving Time and Money

A successful businessman knows that delegating tasks is key for a successful business so that one can have more time to deal with other business ventures. With almost everything being taken care of, it seems like the only thing left to do is to visit your property at a certain time interval and continue to rake in profit while having more time to spend it with your family, social life, other priorities, and investments.

IN CONCLUSION

Hiring a property management company takes care of the burden for you, especially if you are well aware that marketing, confronting tenants with late payments and handling maintenance are not your strongest points especially if managing your property is not the only priority you have in your busy life. Therefore delegating this task to a reliable property management company may just be one of the best decisions you have ever made.

Article Source: http://EzineArticles.com/9709437


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

How A Property Management Company Helps With Quality Renters

How-A-Property-Management-Company-Helps-With-Quality-Renters

One of the toughest parts of being a property investor is finding an outstanding tenant to fill your vacancy. What makes an outstanding tenant? The two most important things are that the tenant pays their rent on time and cares for the property as if it were their own.

According to MarketWatch.com, considerations for placing a quality tenant in a property is more valuable than even the old adage of location, location, location when investing in the rental housing market. As such, this is one of the most valuable aspects of working with a property management company. A good property management company will find you rock star tenants that will not only pay the monthly expenses on time, but also keep the home looking as nice as it did the day they moved in.

But what do property management companies do to make that dream tenant a reality? We’ve highlighted some of the most important steps a firm can take to protect you and your investment.

The most important aspect to finding a quality renter is the screening process. A reputable property management company will utilize a nationwide screening company to ensure the most qualified candidates are found.

Several factors come into play when screening a potential renter. Things like criminal and sex offender history are good places to start. But beyond that, other items that will be checked include credit history, verify income, check rental history and search for past evictions. By thoroughly researching potential tenants, you can feel confident about the tenants you allow in your home.

Also, by being available to take applications online 24/7, a property management company will be able to swiftly process the applications received and get a quality tenant in your property faster than if you did it yourself.

A reputable property management company will also likely have a marketing department that will utilize as many resources possible to reach potential renters. This is particularly important because quality renters may seek out a reputable company that appears more legitimate rather than work with an individual one on one. With rigorous marketing, quality renters will gravitate toward properties represented by a reputable firm.

A good property management company will always strive to treat tenants with the utmost respect and address their needs swiftly. A tenant should feel that the home they inhabit is more than just a place to hang their hat, they should care for the property as much as if it were their own. Even the best tenant can become disgruntled and less than motivated to care for the property when they feel they are not being treated well and their concerns not addressed.

By working closely with the tenant, a property management company helps to keep the tenant happy and willing to do the little extras that keep up your investment. For many investors it is not possible or practical to build this relationship themselves and by letting a management company take over the work, you can rest assured the tenant will be happy to call your house their home.

Also, keeping a good quality tenant happy in the property means they are more likely to renew, which will keep costs down and keep the steady stream of income from the reliable tenant coming in to you.

Finally, much in the same way that having a sign for a security company outside your home can act as a deterrent to burglary, association with a property management company may deter unqualified renters from applying in the first place. Often, those who cannot meet the rigorous standards set forth by a property management company will seek out individual landlords who may not have the knowledge or resources to help find qualified candidates. When you partner with a property management company, you send the message to potential tenants that you are seeking quality and will not be taken advantage of.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

How Can You Own Investment Property Without Dealing With Tenants Or Toilets?

tenants-and-toiletsAre you scared of being a landlord? – In the real estate investing world it can be daunting, especially for new investors, to become a landlord. Your brain starts hitting you with questions from every angle, trying to talk you out of what should be a great investing experience. Questions like: How much should I pay for the property? How do I find a good tenant? How much should I charge for rent? What if I end up losing money every month? What if I’m not available to make the repairs necessary to keep the tenant happy and my property well maintained?

Is being a landlord a huge pain and more work than it’s really worth? – Many inexperienced investors think that owning an investment property is all glitz and glamour, collecting passive income every month while you sit by the pool. Soon after they buy their first properties, however, they get a dose of reality. The tenants they’ve pre-screened are now becoming a nuisance, turning their hair gray with phone calls at 9pm about water pipes bursting, trees falling on the roof, the toilet leaking, and the dogs eating the charming wood trim that they just had painted. Many people don’t count in the ‘human factor’ when purchasing an investment property.

A Professional Property Management Company is your BEST friend (and business partner) – If you’re a smart investor (and you are), you will hire a professional property management company to take care of everything for you. Eliminating ALL your headaches while reaping the rewards of your passive monthly income or cash flow. The tenant calls them when they have a problem, NOT YOU. This creates a totally turnkey, passive way of real estate investing.

Proven Process for getting Good Tenants – With a good property management company you don’t have to worry about finding and keeping good tenants. You want to choose a company that has a proven track record for finding quality tenants that will bring you stable passive monthly income for years to come.

THEY deal with any tenant or building issues – Do you get it yet? THEY do ALL the work. No more late night calls, no more putting that ‘for rent’ sign out in the yard, no more evictions, no more screenings/applications, no more hiring a handyman to fix ANYTHING. A Professional Property Management Company will do all of that for you because that’s ALL they do.

You get income and a monthly report on your properties – If you want to build a truly passive portfolio of income producing properties, you only have ONE choice. That’s right, property management. Have I hit this one home yet? Not only do you get monthly income right to your mailbox or bank account, but you also get a detailed monthly report on all of your properties so you can track EVERYTHING. What easier than that? Put your money to work for you.


aboutdcDerrick is a Memphis native specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

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Kind Regards,
Derrick Craig 
Memphis Buy and Hold


PS. I don’t want you to feel obligated to purchase Turnkey Investment properties from me, you can use this offer to purchase properties anywhere in the US that you are looking to invest!!!  

Why Purchase Turnkey Rental Properties

Untitled-3In relation to the economy and the uncertainty of where the financial markets are heading, corporate bailouts, bank bailouts, insurance company bailouts and the overall picture of real estate uncertainty poses one of the greatest times to secure income based properties. This downturn in the economy is not something that we (those of us who have experienced the 60’s and the late 70’s & 80’s) have not seen before in varying degrees but not altogether very different than today’s economy. By that, I mean the down turn in terms, of interest rates either up or down, double digit unemployment, banking & S&L failures, foreclosures – large inventories of real estate residential and commercial and tight credit.

Is the picture taking shape, yet? If you will go back and do your research on foreclosures and real estate in general for the downturn in the economy and then compare real estate in the various categories; residential, commercial and multi-family you will discover which had real value. Well, since you want me to tell you I will, it is income based properties. The rate of return on a property has and will always drive the value. The key is what parameters do I use to determine what type of property to purchase. The property that offers solid contracts for 1 year or longer, evaluate the rental clientele (less likely to vacate), location, condition of property (new or rehabbed) and if you are an absentee owner check the reliability of the management company are all keys, plus many others to consider when investing in rental income property. I will give you a hint on the asset base of some of the richest individuals in the world, it is real estate properties with an income base.

Investing in rental income property is wise for the short and long term. Those values are based on the stability of the income received. Property should be, today, well below values of last year and should cash flow at the lowest level of rent available for the area. Special rental circumstances offer better rates and those are the ones you need to search out and evaluate. Tax incentives for buying properties and higher depreciation, if available, are advantages to you the investor. Take advantage of any government programs to assist in paying for the property and, also, in renting the property. Who has more money than our government and why not get some of your tax money back, it spends, at least, for now.

Hopefully you will do your homework and find proof positive that income property will hold its value when purchased for the right price with a net ROI of 20% or greater. Make no mistake that there are inflated properties out there with a rental rate that will not hold up as the employment rate increases. They offer incentives to purchase which is the first sign for the buyer to beware, then check out all the surrounding property and rental rates. Rental property can be owned and managed by you with you doing all the work or having a turnkey situation with a management company in place. How valuable is your time and what is it worth for someone else to deal with the problems has to be the obvious question that you the investor must answer.

With the current real estate foreclosure, REO bank properties, short sales and other depressed real estate properties, you the investor can take advantage of the best of both worlds. Low real estate prices from several sources and cheaper rehab pricing can produce a win-win situation for you the investor. Capitalize on the market conditions of today and start making money to secure your future with higher rents and appreciation in value in the upturn. Financing these properties can increase the volume of properties and income which is a smart move with the low interest rates. Financing is a different horse of a different color and will require more time and space which leaves the door open for a future topic.

aboutdcDerrick is a Memphis native specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com