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Property Management Blog

Published on Monday, October 5, 2009

Hiring A Property Management Rentals Company

 If you do not want to make your realty investment experience a bitter one, you must consider hiring a company for property management rentals. If you do all the maintenance work by yourself, and you will not be able to focus on the core issues of your business. Besides that, the work will also substantially increase your stress levels, as dealing with tenants is usually a very difficult task.


You need an expert person to manage your tenants and deal with the other management aspects of your rental property. There are several advantages of hiring a property manager. For example, when you know that an expert professional is taking care of your property, you get peace of mind. You can save a great deal of time too, which you can spend in more productive things, such as finding the next deal. Since the task of rentals is crucial for you, you would definitely want to hire the best person to take care of all the essential details.

Following are some valuable suggestions that you must keep in mind while hiring a professional for building management -

Fee  

Property managers charge a specific amount of fee every month for their services. The first thing that you have to do is to decide whether you can afford making this payment for the job. They usually charge commission at a certain percentage of the total amount of rent collected every month. The rate of commission can be anything from 4 percent to 16 percent of the rent amount. The company providing services for property management rentals must state the charges clearly. Make sure that there are no hidden charges. Read the terms and conditions thoroughly before you sign any agreement with them. Besides that, do not forget to ask whether they charge the fee on a monthly or quarterly basis. The method of fee collection is another important consideration. You also need to ask them whether they will directly debit the amount of fee from your bank account or whether you will have to make the payment through check.

Do They Manage Other Properties Also 

If the rentals company is managing other properties as well, you should check the type of properties they are handling. The best company for you is the one that has expertise and experience in managing rental properties. In fact, it will be better if you make a visit to other properties that they are managing as that will give you an idea how efficiently they maintain everything. 

Who Will Manage Your Property 

You should also ask the company about who is going to manage your property. You should know whether it is a single individual or a team of professionals. If it is a single property manager, find out what his or her qualifications are.

When it comes to hiring the services of a company for rentals, there are several other things as well that you need to take into your careful consideration. For example, you may also like to ask them the type of advertising method they will be using. How much does the advertising cost Other important factors include their hours of operation, accounting system, the method of sending reports, how frequently they send the reports, and other such things.

Overall, if you keep in mind the above things, you will definitely be able to choose the best company for your rentals.

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Author: Web Master

Categories: Property Management

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Landlord Knowledge Base

If you’ve ever considered investing in a few rental properties in Philadelphia or Bucks County, PA now might be a good time. Prices are still low in Philadelphia, but have been on the upswing. According to the National Association of Realtors, the median price of an existing home in a US metropolitan area grew 13.7% between July 2012 and July 2013, the latest in a 17-month streak of year-over-year price increases. 

New landlords can choose from properties that are likely to appreciate and a large pool of potential renters.Licensed realtor Pat Mueller cites a few reasons for this trend: “Many families have lost their homes to foreclosure and are entering the rentals market for the first time in years. Mortgages are also harder to get now, so fewer people are qualifying for a new one.”The more skills you bring to the table to get into Houses for Rent in Philadelphia Philadelphia or Bucks County, PA and the more time you have to devote to your properties, the faster you can make a return on your investment. 

But investing in rentals can also be disastrous (or too stressful to be worthwhile) without expertise. Here are three professionals you may consult about your new rental properties, and what you can do to mitigate how much they cost you:Handyman:  You may need to hire a specialist for some work on your rental. If you need new outlets or new pipes, for example, hire an electrician, plumber or licensed contractor. Handymen usually tackle smaller, more manageable tasks, like:

  • Painting and paint removal
  • Drywall repair
  • Minor appliance repairs (fixing a leaky toilet or faucet, among others)
  • Installing tiling or flooring, moldings, windows, doors
  • Refinishing decks, cabinets and other wood items

When You Could Skip It: You could do any (or all) of these projects yourself if you have the time and interest in learning. Of course, this only works if you live relatively close to your rentals and are flexible enough to service them on short notice. And if you’re willing to respond to the occasional 5 AM basement flooding.

Average Savings: Any base rates or costs-per-hour vary from location to location in Philadelphia or Bucks County, PA , but nationally, you can expect to spend an average of $60 to $85 per hour for repair costs. It general costs less to hire an individual handyman than a handyman employed by a company. Expect an additional charge if your job requires a trip to the store for materials.

Resident Property Manager As the owner of a handful of rental properties, you may be able to manage them yourself, but if you want help, a single resident manager would probably be more cost efficient than a property management company. Resident managers may:

  • Serve as a handyman
  • Advertise vacancies in your units
  • Show apartments to prospective tenants
  • Review rental applications
  • Collect rents

When You Could Skip It: Again, the closer you live to your properties and the more spare time you have, the less likely you are to need a manager. The obligations of being a boss will also cut into the time you save on maintenance.

Average Savings: The national median wage for residential managers is just over $25 per hour. Research the wages in your community and adjust according to how much responsibility your manager will take on. 

Real Estate Agent: Once you’ve gotten your financials in order and done your own research on the neighborhood(s) you’re considering, you might contact a realtor to show you potential properties. You can also arrange for a realtor in Philadelphia or Bucks County, PA to show rentals once they’re ready to rent.

When You Could Skip It: It depends. Even if you’re a local, or have thoroughly researched the neighborhood(s) you’re considering, a realtor is a great resource for a first-time rental buyer. Realtors have access to data and statistics not necessarily available to the general public and first-time buyers may not know all the right questions to ask. Using a realtor to fill your Houses for Rent vacancies is less of a no-brainer, depending on your other time commitments or whether you plan to hire a resident manager who could do the same thing.

Average Savings: As a buyer of rental properties, as when buying your own home, sellers typically pay most, if not all, of the buyer’s realtor fees. In this case, Mueller points out there’s little reason not to work with a realtor. For help in filling your units in Philadelphia or Bucks County, PA, the services of a realtor would set you back between 10-20% of the unit’s rent per month.  Mueller recommends interviewing with several brokers before making your final decision to invest into Houses for Rent .

The Bottom Line: As a new landlord, you can’t necessarily control the flexibility of your schedule or the amount (and cost) of unexpected repairs to your properties. Rentals are a long-term investment. However, to maximize profits from your Houses for Rent, new rentals, you can buy close to home and start small. It is best to begin with just one or two properties. This will allow you to maximize the time you spend on your properties’ needs, and minimize the amount you’ll have to pay anyone else.

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