Often working people have a wide array of choices they can make, as far as investing their money is concerned. But it is seen that investing in real estate is a preferred mode of investment as it secures your financial future, but more importantly it is an investment you can see, touch and show off. Owning property offers many tangible and intangible benefits to the individual.
To invest in real estate you need to take care of three factors:
1) Buy real estate when the markets are slow or buy property in an auction or at discounted rates.
2) Hold on to the property till all mortgage payments are cleared.
3) Hire a good property management firm to manage your real estate assets.
Property management is the management and the operating of a commercial or residential rental; it is a career unto itself with licensed professionals working in it. Property managers' manage your rental property for a percentage (3-10%) of the rent collected.
If you are a working individual, a good property manager takes over all the hassle of being a landlord, leaving you stress free. Since owning and operating a rental is a full time business, it makes sense to have informed professionals managing your real estate.
Benefits of using a property manager
1) Using a property manager spares you tenant complains and troubles. It saves you the hassles associated with becoming a landlord. They manage all the nitty-gritty of a rental housing, often acting as a link between the owners and tenants.
Duties of a Realty Property Manager
2) Most importantly, they know the law concerning real estate, rentals and all other processes linked with it. Where an investor would be floundering with rules and regulations, the property manager gets the work done thereby saving time and money.
3) When you consider purchasing another property the property manager can check out the place giving you valuable tips, which only a professional can tell.
1) Collect rents and mail payments to the owner by the first week of a new month.
Property management companies offer two types of services:
2) Inspect rentals before, during and after a tenant has vacated.
3) Approve and review invoices before payment.
4) Clear up all bills by a scheduled date.
5) Provide owners with monthly-computerized cash flow statements.
6) Oversee maintenance on a regular basis.
7) Arrange for cost-effective contractors for general repairs, painting, carpet cleaning, etc.
8) Supervise all work being performed in the property and approve the work before paying the bills.
9) Monitor all expenses such as utility bills and maintenance bills.
10) Vacancies are advertised.
11) Tenants are screened and interviewed.
12) Provide supervision while preparing the vacant unit for tenancy, showing the unit to prospective tenants, screening and processing of credit reports.
13) Collect deposits and receipts and hand them over to the owner.
14) Draw up a residential lease between the tenant and owner.
15) Provide regular scheduled inspection of the property
16) Have a 24-hr, 7-day a week emergency response system.
17) Represent the owner in government offices for or for any litigation.
18) Resident managers, who are hired by the Property Management firm, will be trained and supervised to handle the property.
1) Full management Service: This service is available for 24-hrs a day managing all the duties mentioned above. The fee is usually 9% of a monthly rent.
Depending on the type of real estate you possess there are three different types of property managers.
2) Rent Service: This service include advertising a vacant rental, allowing prospective tenants to view the unit, screening tenants, processing credit reports, preparing the necessary paperwork, collecting the first months rent and initial deposit. Sending to the owner the tenants application and original lease with the security deposit and rent. Once the tenant moves in, the responsibility of the tenancy now rests with the owner. The fee for this service is 50% of a month's rent.
A Commercial Property Manager takes care of income generating commercial real estate like offices, shopping centers, industrial space, storage facilities etc. Their duties are include renting out office space to maintenance.
Large corporations also employ property managers to manage the housing needs of their employees. Financial institutions too require property managers to oversee their retail outlets. Residential Property Managers supervise and operate income producing residential rentals like single family homes, flats etc.
Community Association Managers Oversee common property and services like housing colonies, condominiums, co-operatives or gated communities. They work on behalf of the owners or community associations.
Their duties apart from the usual collection of rents and preparing financial statements include maintenance of facilities jointly used by the owners. They also manage and maintain the community golf courses, pools, parking areas, landscaping etc. They help the owners in complying with governmental rules and regulations. Since their services are on a 24-hr basis they usually stay onsite.
Property Management has now transformed in to an integral part of Real Estate. Management Services employ trained and licensed professionals to work for them who are fully conversant with housing rules and regulations and real estate laws.