Nowadays, more and more people who own a rental property rely on the help of real estate agencies that specialize in that field. The goal is to avoid all the hassle of looking for qualified tenants, wasting precious time (and money) on property advertising and maintenance, dealing with the financial side, and all other things that are part of the package. However, not all such companies offer the same set and quality of services, so if you are on the search for a real estate agency to manage your rental property, here are 6 key things you have to know.
Local Experience Is Important
Even though this may sound like a no-brainer, people often forget about the significance of the rich local experience when choosing a real estate company. Always do a bit of research to make a list of agencies that can brag about an impressive number of properties they run in your area. Also, check how they rank against the competition in your state.
Do not be afraid that top-rated companies charge more than others, as it’s simply not true in the majority of cases. There are plenty of examples to prove the opposite, for instance, award-winning Faranesh Las Vegas property management only charges 7%, which is less than 10% average across the Las Vegas Valley. There’s no secret to it, top-rated companies have no shortage of clients, hence they do not have the practice of ripping off their customers to make up for the shortfalls.
A security deposit is one of the best ways to protect your property from unscrupulous tenants that can cost you dearly. While the amount of the collected deposit can vary, make sure it will be able to serve the purpose and cover eventual cleaning costs or repairs.
Rental Properties Are A Business
Another thing you should know is that renting your property is a business, therefore it should be treated as such from the very outset. When other people are in charge of your business, make sure they provide you with comprehensive financial reports, so you know exactly how much money is being generated from your house or apartment and what are the costs. Another important moment, a renowned agency will always provide you with a 1099 report at the end of the year – taxes are not the last thing to sort out.
While costs may vary depending on the state and certain requirements, generally, they include property taxes and insurance, cleaning and maintenance, management fees, eventual repairs, leasing commissions, supplies, professional fees, garbage removal, water, and loan interest. Stay from the companies that want to charge extra for the in-depth financial reporting, reputable firms will have it all included.
Rent collection can be a huge headache for the property owners but not when a real estate administration company takes care of that. When hiring an agency, ask how they deal with late payments and whether you are going to be involved. Again, the best companies are armed with a set of measures and mechanisms to ensure you get your hard-earned money on time.
Rekeying Is A Must
Although your lease contracts can include a clause that says the renters are not allowed to duplicate keys without permission, you cannot be sure your tenants stick with that rule. Rekeying is a general practice in the rental business, therefore be ready for the replacing of all vital locks and keys at your property. If you wonder what happens to your property while it’s vacant, it is good to know that serious agencies use electronic lockboxes on such homes to monitor the situation 24/7, getting real-time notifications in case there’s an issue.
Getting your rent every month is great but you also want to know who pays it. Having in-depth information on people who live on your property is much more important than it can seem at first glance. That’s why background checks are mandatory and you’re better to find a real estate company with vast experience in digging deeply into the tenants’ past in terms of the previous behavior as renters.
Owning a rental property can be a great advantage and a stable source of income, of course, if you know how to make the most of what you have. Hiring a real estate administration company can become a real game-changer, letting you avoid all the hassle and stress associated with renting your property. Always research the market to make the right choice and find the agency able to cater to your needs.