You’ve thought about starting your own real estate investment business, but have you thought about how you would manage everything?
Once you start developing a hefty rental portfolio management can become a hassle and very difficult without some help.
Running this kind of business is different than running a coffee shop or managing a corner store. It’s different because it requires other things than a usual business. You do know how hard it is to manage your own home, now imagine what it means to manage an apartment complex with two or three buildings and about 100 apartments!
Well, the truth is that this can all be solved really simply – you need a property management company or professional willing to take on these responsibilities. These are the people who know exactly what needs to be done in an apartment complex or rental property and they will get it done for you.
If you think that it’s hard to manage the utility bills that you receive each month, what would it mean to manage the bills for all the apartments from a complex or your entire rental portfolio?
That’s just a rhetorical question, and even if it is true in some aspects, there are also big differences between managing your properties.
A property management specialist is a person who has the credentials to take care of everything related to property management. You may be the owner of the building, but you will need someone specialized to take care of all the aspects that this business implies.
They will make sure that the leasing contracts are properly done and that the rent is collected in time from the tenants. They will also make sure that the bills are paid on time, and the tenants pay their own part of the bills. They will also make sure that other aspects are solved, like repairs or small maintenance procedures.
When you hire a property management company for your new complex of apartments, make sure you ask for their credentials and license. They are not allowed to practice if they don’t have a license, so it’s better to check them out before. Also, ask for a written contract where it’s stipulated every obligation that they have and what exactly are they offering for the price they request.
It’s good to have a property valuation done before you hire someone to do your property management. This way, you will be able to present them with the written report and see what they can solve. Usually, there are repairs to be done and the property management specialist needs to know how to solve the problems. It’s not about doing the repairs themselves, but it’s about engaging the right person for fixing a problem – you might need an electrician, a plumber, a construction expert or any other specialist.
Property management requires a good amount of time to be spent in that apartment complex, so you need someone who is dedicated and specialized in this kind of work. For the money that you are paying, they need to take care of all the problems and present you monthly reports on how the money was spent and what they have done during that time.
Choose wisely when you hire a property management specialist, and you won’t have to worry about your investment or managing properties yourself!