Annandale REAL ESTATE
Penny Wise Property Management
By: Scott Pearson, Pearson Realty
July 2017, ENDEAVOR News Magazine
Part of the real estate market involves investors that hold one or more properties for rent. In this area the practice is quite common as families move to other parts of the country, even if only for a temporary job relocation. In this area government workers and military are often moving in and out due to orders.
Additionally, with the tightening of credit markets that we have experienced, many couples are renting longer because of the need to save money for a down payment on their first house. And renting is viewed by many people as simply preferable to owning for a variety of reasons.
Managing rental properties is something that we do for investors or families that need to move out of the area for a time. Absentee ownership is quite difficult and we assist people who presently live, for example, on the West Coast or overseas. So why hire a property manager to assist you in managing your property?
First, professional property managers have the ability to market the property to a much wider audience of potential renters. Self-managed property is usually marketed by a “for rent” sign and maybe a listing on Craig’s List. We can market through a variety of data bases and sources that are not available to the general public and, thus, qualified renters are attracted much more rapidly. What this means is that the unit does not sit empty for long and cash flow is more continuous.
Professionals also have the resources to do a more thorough background check of applicants, including a credit check so that it can be determined whether the people looking to rent can actually afford to pay the rent and whether they have any history of default. Investors are looking for certainty.
Having the ability to assess the fair market rent of a property is important. Often time poor pricing by the owner results in rents that are too low, thereby reducing revenues; or rents that are too high which discourages renters and makes the property less competitive.
Once the unit is occupied issues come up. It could be a maintenance issue or a question regarding the terms of the lease. These issues should be handled in a dispassionate and efficient way. Most disputes between landlord and tenant can be resolved with a professional approach that removes the personal aspects of owning or renting. In that way, we act as a mediator between the parties and get those issues resolved equitably.
Then there’s upkeep and maintenance. When the furnace breaks, who do you call? What do they charge? Most people have not had an opportunity to compare service providers and may not know what is the correct amount to pay for certain jobs. In sum, you can get fleeced. Knowing reliable, cost effective service providers is key to making sure that investment property produces the highest profit margin.
Median Sales Price of Annandale Homes
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