Ferndale Rental properties have the potential to generate lots of money for their owners. As such, a number of prospective landlords are thrilled to start earning real estate income. They await the time when they start to make real returns on their property that can help them to achieve a better standard of living and greater financial freedom.
There is no doubt that being a landlord can be a lucrative and thrilling venture. However, the task can also be quite overwhelming. The process involves preparing the property and renting and managing it. It requires in depth research and a significant investment of time and money.
There are a number of Ferndale property management companies that can assist in simplifying the process and easing the burdens of managing rental properties. However, many property owners prefer to take on the task by themselves. This could work in the short term but there have been many property owners who have had to pay tremendous costs for committing common income property blunders. Below are some mistakes commonly made by landlords:
Inexperience has caused many landlords to plan for just a limited number of costs associated with their property. They typically account for the mortgage, taxes and insurance; however, other relevant expenses are overlooked or ignored. Property maintenance and regular upkeep like garbage and water expenses and repair or replacement of things around the house are not usually factored in or the costs are underestimated.
Underestimating the cost of running a rental property prevents owners from adequately providing for daily housing needs. Therefore, if large unexpected expenses come about, they are often totally unprepared to handle them. As a Ferndale Property Management Company, we have the experience and expertise to assist inexperienced landlords to appropriately plan for expenses and to ensure the property is priced to match the market.
To get big returns quickly, a number of landlords charge too much for their rental property. If the rent is not competitive with properties in the neighborhood or is outside the budget of potential tenants, it could result in an empty property sitting on the market for a long time. It is important for landlords to allow the market to dictate their pricing or they could risk losing money while the property remains vacant.
Being Knowledgeable of the Laws
Many property owners are unaware of a number of significant landlord and tenant laws. It is important to have current information regarding the implications of these laws. Without it, landlords can find themselves being in violation of federal and state regulations. Failing to comply with these laws could end up dearly costing landlords. Therefore, adequate research is essential for landlords to become familiar with federal and state regulations. These must be understood prior to preparing and marketing the property.
Not Disclosing Information
There are laws that the landlord must disclose certain information to prospective tenants. This includes fees, fire protection and if there is indoor mold, this must be disclosed to the tenant before he or she signs the lease. If landlords are not aware of this information, they will not share it with potential tenants and would be in violation of the law.
Improper Tenant Screening
This is among the most common blunders made by inexperienced landlords. To find remarkable and trustworthy tenants, it is important for landlords to spend time researching and collecting information. It is important to look into the criminal background, employment status and credit record of a prospective tenant.
Documentation of verifiable income is one of the hallmarks of a reliable tenant. Additionally, landlords should have discussions with past and current landlords of the potential tenant to establish his or her payment track record and overall behavior. To ensure integrity, the landlord should validate any information received from prospective tenants.
This can rapidly become an extensive process. There are impatient landlords who mistakenly skip parts of the screening process. One of the great services offered by property management companies is the help they provide in matching remarkable tenants with rental properties.
Landlords have a lot of tasks to juggle and as such that minor maintenance issues are typically overlooked. Neglecting to remedy a leaky pipe or a stain on the wall could quickly end up causing larger, more costly repairs. Landlords need to find ways of incorporating regular inspections and maintenance into their busy schedule. Property management companies are equipped to handle these types of issues to free up time for landlords to concentrate on other parts of real estate ownership.
Purchasing Too Quickly
Purchasing a property without adequate information is among the most painful and enduring property blunders. It is important for potential property owners to analyze the location and get certain questions answered to determine whether it is wise to invest in the property. Is significant upgrade necessary? Will it generate enough revenue to outweigh the costs of ownership and maintenance of the property? To what type of tenant will it appeal?
Property managers have the capacity to assist clients in gathering information, conducting in depth analysis and determining whether properties have adequate potential to justify the investment. Experienced landlords know the risks of attempting to do it all; therefore, they use the services of local property management companies to reap the success of owning lucrative real estate properties.
At Reserve Property Management, we offer Ferndale rental property management services to help landlords become successful property owners. To learn more about our services, do not hesitate to give us a call.
We want to change the game. We want to exemplify what it means to be a true property management company in the Metro Detroit Area. How can we help you today? Call us for a free consultation and feel the Reserve Management Company difference.