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Property Management Blog

Published on Monday, August 4, 2014

What to Consider When Hiring A Property Management Company?

In order to benefit from hiring a property management company here are some things to consider for property owners in order to acquire the right services related to property management.

Do you have Effective Owner Management?

There are lots of cases where people have acquired property without realizing the consequences and the amount of responsibility they will be required to have in order to manage the property effectively.

A property management company allows property owners and landlords to have more free time, increased revenues and reduced direct costs. Therefore, people who don’t possess effective owner management skills should look at hiring property management companies to look after their business.

Here are some of the things a property manager needs in order to become an effective owner of the property.

Knowledge of Property Laws:

Every person who owns or manages a property has to be familiar with the state laws regarding property management. Owners who don’t have any knowledge about property laws are liable to heavy fines and law suits.

A property management company has expert knowledge about property laws and could therefore be highly useful for property owners who don’t want to deal with complicated lawsuits.

Expenses & Time Spent On Properties:

All property owners who live far away from their properties will have to travel regularly to their properties in order to ensure that they are in good condition. This will also result in high expenses for the owner, since they will have to find effective ways in order to manage their properties.

A property management company comes in handy when owners live far away from their properties. The company will take care of the maintenance of the property and owners will not have to travel frequently to their properties.

Repairs & Maintenance:

A property manager who is looking after a property by themselves will have to look after the maintenance and repairs of the property alone. They will also be required to posses basic skills sets, which include carpentry, plumbing, landscaping and electrical skills in order to maintain and repair a property.

This is where a property management company allows owners peace of mind, since they are experts when it comes to responsibility for maintenance and repairs. They have got people with expert skill sets in all departments and can therefore handle the issue much better.

Tenant Screening and Maintenance:

All property managers must carefully screen their tenants in order to discard people who will later become a problem for them. You will be required to check their backgrounds, credit checks, employment information and criminal records. Even after the screening process, there is a chance that you may encounter certain tenants that become a headache for you.

A property management company can help deal with this issue with ease, since they have got an effective tenant screening process and will be able to handle the problems of tenants much more effectively.

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Author: Web Master

Categories: Property Management




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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