Are you thinking about taking advantage of the real estate market to buy rental properties? Are you intrigued by the idea of simply collecting money every month without needing to clock in at an office job? While this is understandably appealing, there is more to owning rental properties than simply collecting a check every month. You'll probably need help with your properties. Some of the things you might need help with include:
Finding tenants: Not everyone who wants to live in your rental property will be suitable. Some of them may have a history of non-payment while others might have a long arrest record to indicate that they're not the kind of people you want living in one of your properties. Investigating each person who applies can be a time-consuming challenge. After all, you don't want to appear to be illegally prejudiced against anyone and potentially open yourself up to a lawsuit.
Fortunately, there are property management companies who can help you with this task. They will go through potential tenants and either accept an application or deny it for legal reasons. Instead of spending a weekend sorting through possible tenants, you can spend your time doing something more interesting.
Performing repairs: Sometimes, it can seem to be a universal law that things have to go wrong in the middle of the night. A pipe bursts, the water heater starts leaking, or the furnace stops working. All of these things can wake you from a sound sleep, scrambling to find an emergency repair technician who is available and who won't cost an arm and a leg. Depending on the issue, a single emergency repair might go so far as to wipe out your rental property earnings from the past several months.
You can solve this problem by having a property management company be the emergency contact for your tenants. The property management company may have handymen on staff to fix any problems, or they may have a relationship with local companies who will give them a discount. Either way, not only will you not be awoken in the middle of the night for random problems, but your costs for remedying these problems are likely to be lower than they would otherwise be.
Evicting tenants: Despite the best efforts of everyone involved, sometimes tenants are chosen who turn out not to be the best choice. Perhaps they were fine when they moved in, but they have since started throwing loud parties and having the police called on them every night. Now you want them gone, but this can be tricky.
Evicting people can be complicated, depending on where your rental property is located. In some states, you may be able to simply tell a tenant to leave, while in other states there are more steps. In California, for example, you have to file a lawsuit to be able to evict someone. If your rental property is located in a state with similar laws, a property management company will help you take the steps to legally and properly evict troublesome tenants.
Once you sign the sale contract with your listing agent, there's a good chance that things will start moving quickly. Your agent will want you to stage your home for the listing photos, open houses, and showings. If you've never experienced the staging process, you may not know exactly what to do or where to start. The information on this site will help you to not only understand what's expected of staging but also offer tips for you to maximize your efforts without investing a lot of time. I hope the information here makes your home sale process a little bit less confusing and a little easier to manage.