Whether a first-time property owner or a seasoned real estate investor, most will agree that being a landlord is not for the faint of heart and surprises are inevitable. Relieve some of the stress with the following five tips on property management.
Learning how to analyze a deal might save you tens of thousands of dollars while fixing a toilet might save you a couple of hundred dollars. Long term, the higher impact skills will pay off in a big way. Focus your time and energy on valuable tasks that increase your return on investment. Use professional maintenance personnel and prepare a go-to list of contractors able to resolve tenant maintenance requests and property repairs.
Most investors have a select model to run their asset financials. Partnering with J+ Group, we review based on your criteria. Before purchasing an asset, the team at J+ Group runs a baseline analysis, reviews key capital expenses and property conditions. Once acquired, align with a property management team for vendor management of repairs, renovations, and even ground-up construction to stay on track and effectively managed. From there, assess market rates for optimum rental rates and lease up!
“If you think it's expensive to hire a professional to do the job, wait until you hire an amateur.” -Red Adair
If you are an investor on the path to growth, there comes a time when self-managing every step of property management becomes unrealistic. Hiring a professional is an investment in your time and is a must-have if you plan on expanding your property portfolio while maintaining a quality level of service.
Aside from major repairs, vacancy with tenant turnover is the largest expense. Having a property vacant while you market your listing, screen candidates, and complete move-out repairs is time-consuming; and time is money. Turnover takes its toll on property wear and tear. Unless the property has been suited for short-term rentals, such as Airbnb, most properties will not hold their value with high turnover. Move-out repairs, rekeying, the cost of marketing the property, painting, and other cosmetic touches are needed to maintain, sometimes salvage, the value of your rental space. The right property management team can alleviate much of this hassle by handling turnover repairs and advocate renewals when you have great tenants in place that you wish to keep. This brings us to the next tip…
While interviewing candidates the current market has a swarm of inquiries on properties. Fielding this level of interest on a rental property is a full-time undertaking. Property management will secure tenants for the long-term with thorough vetting processes: reviewing financials, past rental history, and criminal background checks. Using technology to streamline payments, accounting, and maintenance request provide tenants with quick access to resolve issues. This level of communication retains tenants, simplifies your oversight, and gives you peace of mind.
You could fix it yourself, but it takes twice as long, and the satisfaction of the tenant and you is reduced. Having a property management company there for the support reduces stressful events for both you and the tenant! And it doesn’t hurt to have a third party to mitigate any owner-tenant conflict as it relates to the property.
Looking for Property Management in Miami, Florida? Learn more about reLEASE Miami Property Management company, Founded and Owned by Jesse Spencer. Jesse is the Principal of J+ Group at Compass, an Investor, Commercial Investment Sales Advisor, and Entrepreneur. Able to understand the intricacies of property selection, renovations, and the wide range of issues that investors face from end-to-end, the team at reLEASE Miami will offer tips and assistance with managing your investment property. reLEASE Miami has an exclusive Leasing Partnership with the #1 Brokerage in the U.S., Compass.