5 Reasons Why Rental Properties Are True Businesses
When it comes to running a business, most people think of being a high-level CEO or sitting on the board of some multi-million dollar operation. The second thought process is usually being part of an MLM tier. A Primerica or Mary Kay sales rep comes to mind. However, most people do not think of owning rental properties as a viable business opportunity.
Think about this though: who received the money every time you put in a rental check on your first place? The landlord.
While landlords have to pay for licenses and other building maintenance fees, a part of that rental check goes to their pocket. Why? Owning and renting property is a viable business. Most people just don’t think of it.
House flipping and wholesaling properties is part of the real estate world as well. However, turning a home into a rental property often turns out to be the most lucrative form of real estate investment for several reasons.
Rental Properties Allow You To Leverage Assets
When purchasing a rental property, there are several advantages to owning the land yourself. The first of these is the leveraging of assets. By being able to borrow money from a lender—whether from a bank, business partner, family member, or another entity—you allow yourself to make an investment at a fraction of the cost. Wholesaling requires you to buy the property outright before you can set it back on the market.
However, having a mortgage allows you to make monthly payments to the lender—payments that can easily be covered and exceeded by the presence of 3-4 tenants in a single house.
Each tenant’s rental payments can be between $1000 and $2000 a month—depending on location, roommate deals, and property value—which means that you will not only cover utilities, repairs, and your own mortgage costs, but you will come out ahead every month.
This leveraging also gives you the opportunity to live on your rental property yourself. While you will make a bit less by keeping a room for yourself on the property, you will still essentially be living in your home for free—and at a profit. There are truly no downsides there.
Increase Value with Minor Renovation Upgrades
Like any business venture, you need to have a bit of spice to keep things innovative and interesting. In house flipping, you usually do not make any kinds of improvements to the property. It’s not that you can’t, you just don’t for the sake of time. However, if you decide to purchase a fixer-upper outright, you can put nails in the walls wherever you want whenever you want.
This means that while the property is under your name, you can make as many innovations as you please to increase its value. Put in a swing set, a porch, a fourth bedroom, automate the entire kitchen… literally whatever you want that you can afford.
Another creative idea you could put into place is enlisting your renters to upgrade your property as part of their contract. You could offer them reduced rental rates if they want to finance some home improvements for the duration of their stay. Or, if you are housing a group of college kids, you can enlist their youth and have them work on the house themselves for lower rental rates. While you will not be making as large of a profit this way, the return in a few years will be much greater once you turn over to new tenants.
Research the Local Housing Market Before Purchasing
In businesses, it’s important to shop around and make sure you are getting the best products to optimize your sales. When it comes to purchasing rental properties, the same principles apply. You need to be able to identify a good purchase from a bad purchase.
This requires some stable research into the local housing market, the good neighborhoods, and what your target market is looking for.
Are you looking to market to college kids living off-campus? Are you looking to house seniors who need assisted living? Or are you looking to give a family a chance at living in a nice home?
The house and location you choose need to be appealing to your target demographic so you can ensure you get the renters you need for the price range you are asking.
Things to consider when identifying your choice:
- How many bedrooms does the house have?
- How many bathrooms?
- Does the kitchen have a dishwasher and garbage disposal?
- How old is the plumbing? Electric?
- Is there a pest problem?
- Is this a multi-family or a single-family home?
- What is the best rental price?
Define Your Business Model
Buying a rental property does need to follow a bit of a business plan in order to be successful. To ensure that your investment yields a good return, you’ll need to sit down and weigh your costs versus your revenue. In the beginning, you'll likely be paying the mortgage yourself.
As revenue begins to flow in, you need to have already decided how you are going to allocate your earnings. What percentages go to home repair, mortgage, and personal revenue? Additionally, you need to consider how much you are going to funnel into outsourcing to a property manager when the time is right.
Outsourcing Rental Properties
Lastly, you are able to outsource your landlord responsibilities to a property manager. If you are just no good at home repairs or you need someone to help you manage your paperwork, you can hire a property manager to take care of all your rental’s needs.
While this will take a cut out of your profits, the property manager makes it so that you can sit back a bit and let that residual income flow in. In this case, you need to only check in regularly to ensure that everything is running smoothly.
This way, you can get involved only when big decisions about buying and selling need to be made. However, we do suggest you pick a reputable property management company in order to ensure that your earnings are being allocated properly.
Setting the Right Price for Your Rental Property
Finding someone to rent your property is the same as finding a customer for any other service; the price has to be right. Here are top ways to help you set a price that will get your rental property off the market.
1. Compare with Other Property Rental Rates
Do a comparative study to other rentals similar to yours. This is important because, if a tenant can get the same house at a lower price, they will not consider getting a property for more. The property rental rate you gave has to be within an acceptable range. Here are some of the factors to keep in mind when doing a comparative survey:
Neighborhood
Look at listings in the same town as your property, right down to the same section or street as yours. This is important because one part of your town can be deemed as less desirable than the other. This has to reflect in the rent amount. Your street or section gives you a better range to work with.
Are there social amenities close by like schools, malls, hospitals and so on? These also tend to make an area more desirable, and you can get better rental income from houses near social amenities and facilities.
Number of bedrooms and baths
Of the properties listed, check for those with a similar number of baths and bedrooms as yours and what they are going for.
Multifamily vs. single family homes
Compare property rental pricing of your specific home type to other similar units. If it's a single-family home, compare it to other single family homes. If its multifamily units compare to similar multifamily units, single-family homes attract higher rents than multifamily homes.
New or old construction
New rentals fetch higher rents than older ones. Keep this in mind while making your comparisons to arrive at a fair market price that will get your rentals occupied in no time.
How to Find Comparable Properties
Drive around
You can drive around your neighborhood and check out vacant properties, view them and get pricing information from the landlord. The goal is to check for all the above features in comparison to your property.
Online Ads
There are multiple house listing sites that will give an overview of house price, features, and location. Here, you can track which properties move quickly, which ones lower their prices and which ones stay in the market for too long.
Enlist the help of a realtor or a property management services company.
Even if you would prefer not to list your property with a realtor, having them view the property can give you insights on a suitable property rental rates for your type of house.
2. Consider the Unique House Features
Set your prices according to how different or according to the unique features of each unit. This means:
- Do not place the same price for all one/two or three bedroomed houses in your property, unless their design, view, and features are identical.
- Similarly, do not have a fixed price difference for extra bedrooms.
Here is how to go about it instead:
- Charge higher rents for apartments with a garden, swimming pool or other unique views than those facing the parking lot or the back of another building.
- Charge more for units with newer amenities and fittings.
- Charge more for a unit with a slightly larger bedroom size, and less for one of a smaller space.
- Apartments with a railroad setting, where the rooms are lined up, fetch a lower rent than other layouts. For this layout, you will have to charge less than landlords with similar sized houses, but different layouts, are charging.
- People prefer top floors. Therefore, charge more for higher floors. However, if access is via a stairwell, then the reverse is true; higher rent for lower level floors and lower rent for higher floors.
- Extra closet space, a larger balcony, an extra or large window can get you a higher rent than the units without the extra trimmings.
3. Interest Generated from Prospective Tenants
Once you put the information on your rental out there, the information you get back can inform you of the favorability of your price. If no one is calling to get more information or request a viewing, the price might be too high. If you are flooded with calls and offers, it could be that the price is too low.
Similarly, take note of high demand seasons and price accordingly. In the summer, for example, people tend to move and get settled before the new school year starts. You can get a higher rent at this time.
In a bad economy, the same is true as well. Families may be unable to make their payments and opt for smaller, more affordable house units, again driving the demand up.
Ways to increase the rental rate of your property
- If you are an absentee landlord, or otherwise busy, engaging a property management company for professional property management can ensure you have someone taking care of the property in your absence. A well cared for property will attract reasonable rents over longer periods of time.
- If the land your property is on allows for it, carve out some greenspaces. These can drive up your rental rates, as well as attract families with younger children.
- Consider added extras. Think of it this way; if your street has the same housing type, size, and layout, what can make your unit stand out. Simple features like installing a security system or high-end appliances can attract long-term tenants and drive up demand when a unit falls vacant.
If you are looking for more information and resources on how to price your rentals, we can help. Our software allows us to run a comparative study of listings similar to yours so that you can price your property reasonably and get it occupied in no time. Contact us today to book an appointment.
Property Maintenance Tips to Prepare for Winter
Ensuring that your property is in perfect condition is a noble thing, not just a winter preparation exercise. The value of your property is dependent on the level of care and property maintenance you attach to it. Utility bills for your tenants depend on how well your systems are working.
During winter, you should keep certain things functional. We will discuss all the things you should do to let your tenants enjoy their winter months.
Clean Your Gutters
People say it is not fun to clean gutters. The debris can range from harmless leaves to bird poo. When cleaning this area, ensure that you have the right tools. While at it, be careful not to compromise the flow. Gutters should slide slightly towards the downspouts. This video can help you learn how to do it professionally. Also, collect the debris and dispose of it properly.
Ensure that the gutters and downspouts are free from any debris. The water should flow unimpeded. If winter precipitation finds clogged drains, the damage on your property could be significant. Any water in this area can easily reach the fascia or any other wooden material. Such water will cause rot and mildew.
Inspect Your HVAC System
Focus specifically on the heating system during this time. Whether you use the boiler or furnace, ensure that the whole system is in pristine condition. Clean the ducts and vents to remove any signs of debris. Ensure that the chimney, too, is clear. Replace old filters and tune up thermostats. Check the ignition system. On the overall, ensure that all movable parts are sufficiently oiled and fastened.
You can do furnace tune-up on your own. However, you will need a professional inspection and tune-up occasionally. Most property management companies include HVAC tune-ups in their services.
Check Your Insulation
Heating is an energy-sapping function. Efficient systems rely on proper insulation. Cracks on walls, drafts, holes, and gaps on windows and doors, and other air vents can compromise your insulation. Check for missing glazing and putty, loose windowpanes, and missing caulk. The windows should close tightly without leaving any spaces.
Check for spaces and gaps in the doors, too. You should also check the overall heating system insulation including the vents and duct-work.
Inspect Your Roof
Slight to heavy precipitation is normal during winter. A leaking roof can cause you nightmares if it goes unchecked. While checking your gutters, check for any missing or damaged shingles. Heavily corroded, warping or loose shingles can give in in the face of the slightest precipitation. Check for cracks, too.
If you have not inspected the attic and crawl spaces, this is the time to do that. Do so during the day when the sun is out. You have some repairs to do if you spot any illumination when inside the attic. A leaking roof can cause mold damage. It can also cause rotting of the roofing material especially wood.
Consider Tree Services
Tree trimming and removal is a continuous process and part of the property maintenance schedule. Trees that are close to the house need maintenance to prevent any form of damage. Any tree that is showing signs of decay, disease or death should not be near your home. It can easily fall on your property.
Winter weather can bring winds that can cause branches and twigs to fall on your roof. To be safe, keep everything trim and maintained.
Inspect Indoor Air Quality
Dust, mold, boron, carbon monoxide and such things can easily destroy the quality of air in your home. Some houses have an asbestos risk, too. With dust, you can do a thorough cleaning of your property. Proper cleaning eliminates dust mites and animal dander. Mold management relies heavily on prevention.
If you ensure that your property remains in pristine conditions, you will not need to worry about mold. Maintain the HVAC system to reduce the risk of smoke and carbon monoxide poisoning. If you seal off all cracks on the walls and the floor, boron will stay away.
Ensure Overall Property Maintenance
Everything revolves around regular property maintenance. Inspection and tune-ups for every part of your property are crucial. Since you cannot maintain everything at once, keep a schedule of things that you will maintain.
Some things such as HVAC systems require annual inspections, others such as roofs require 3-5 years. For example, if you inspect the roof, you have three years before doing that again. Therefore, you are going to schedule the next inspection three years from now, preferably in fall.
If you can't keep up with the demands of property management, especially if you have multiple rental properties, you can hire a professional property management company. The benefits far outweigh the costs.
Conclusion
Winter is a time that reminds you that some parts of your property are vulnerable. Keep precipitation out by ensuring that the roof and gutters are in good condition. Ensure that your insulation is perfect. Remove any other risks associated with indoor air quality, heating, and trees.
How to Provide your Tenants with an Excellent Renting Experience
Tenants, just like customers in any company, are an essential part of the business. Rentals have had a steady growth rate in the Monterey County. Property owners have also enjoyed a relatively low vacancy rate of about 4.5 percent. In such an environment, it pays to be a good property owner and provide them with an excellent renting experience. How can you do that? Well, read on to discover some of the things that tenants treasure.
Maintain All Amenities
Maintained units will lead to modest utility bills. Poorly serviced faucets and taps can escalate your water bill. A neglected HVAC system is likely to gallop more on fuel. Tenants want to keep their charges to the minimum. If you allow essential amenities such as ACs and water systems to go unattended, you will affect the life of the tenant financially.
He or she will have to pay more to stay in your premises. He may choose to go elsewhere. Ensure that all scheduled maintenance and inspections are on time. Failure to do that will lead to expensive replacements for you as an owner.
Ensure That Your Tenants Are Screened Fully
Screening is part of rental property management. Proper tenant screening has many advantages:
- Tenants can be confident that their neighbors are decent people
- You will reduce the turnover rate
- Reduce evictions
It benefits everyone to do proper screening of tenants. Poor screening methods will always complicate rental property management. Would you feel secure in a premise where the property manager evicts a tenant now and then? You will feel insecure. Worse still, you will feel as if you are in the wrong neighborhood.
Incorporate Regular Feedback
Customers today are exposed; they have channels where they can voice concerns about residential property management. In the past, unless someone was making a complaint through the housing court, he or she did not go further than uttering a few swearing words.
Today, a frustrated customer will leave a review of your premises online. A single review can change your units from good to mediocre. Make sure that the tenant can trust you with their feedback. If you incorporate input, they will share with you their concerns. You will have an opportunity to rectify where possible.
Incorporate Technology When It Comes to Payments
The digital landscape is making payments easy. Digital payment methods such as online and mobile payments can streamline rent payments. This will simplify the work of the property manager and the tenant. They can pay wherever they are. It is a common benefit in property management in Monterey County.
Know When to Repair and When to Replace
Two to three repairs for the same issue should be an alarm. The tenant will not be patient enough to keep asking for adjustments on the same item. It is up to you and the property manager to know when enough is enough. Two to three repairs within the same quarter tell you to replace some parts.
Have a Rental Policy
Before a tenant signs the tenancy agreement, ensure they have read and understood the rental policy documents. If you don't have one, you should get one ASAP. Ensure you have put things such as interactions between the property manager and the tenant, payment dates, pet policy, tenant-to-tenant communications, noise, drugs policy, and so on. Make it as detailed as possible. Take a side in the debate about family-friendly units, pet-friendly apartments, and so on.
Keep the Property Clean
Tenants will want an organized property owner who provides ways to dispose of trash and other effluents. Cleaning of staircases and communal areas is also mandatory if you want the unit to look appealing.
Dirty rental premises signify low returns on rental investment. The tenant will feel shortchanged if he or she has to deal with dirt and resultant smells inside a property they pay for. A dirty property is also a health risk.
Be Transparent
Any relationship depends on clear lines of communication. If you have a problem with something, let the tenant know on time. If you cannot make a certain repair on time, notify the tenant. Make promises that you can keep. If you plan to make renovations, unless you are sure about it, there is no need of telling tenants.
Ensure That Your Tenants Have a Qualified Property Manager
Most of the time you may not be there to manage your property. It means you will depend on a property manager to do most of the things within the premise. Having a qualified property manager can make a huge difference. This is because you will depend on him or her to:
- Market your unit
- Screen tenants
- Maintain tenancy paperwork
- Collect rent deposit and security
- Collect rent
- Handle tenant concerns
- Maintain the property
Well, if you don't invest in the best agent in the market, how will they do all these things in your absence? It is up to you to get a person who is personable and decisive. Sometimes evictions are necessary, will he or she handle it in a way that does not blow back to you? Tenants want someone they can rely on to maintain order in the facility. Ensure you give them that.
Conclusion
If you get a good property management company, you can minimize the trouble that comes with day-to-day rental management. However, not every property management in Monterey County company deserves your nod. Ensure that you painstakingly scrutinize them before hiring.
Coast & Valley Properties is a full-service property management company serving the entire Monterey County providing
unparalleled service of diverse rental properties, as well as homeowner association management.
How to Evict a Tenant in California
Most landlords, if they are in the property rental business long enough, eventually face the irksome task of evicting a tenant. Furthermore, the eviction process is one of the most unpleasant issues landlords must face. It can be time-consuming, expensive, and distracting. Most tenants facing eviction are uncooperative. If they were cooperative, evicting them wouldn't be necessary. They would move out on their own. To evict a tenant in California isn't as easy as other states.
Eviction, by nature, is an adversarial legal process. In the end, a judge decides whether the eviction can go through or not. Though there are many good reasons for courts to review eviction actions, in most cases, the landlord is in the right. After all, no property owner profits from evictions. An eviction is a way of minimizing losses from a nonpaying or destructive tenant.
Property Managment Company
Many landlords make the smart move of allowing a professional property management company to handle evictions. This creates a buffer between the tenant and the property owner, which protects the owner from additional legal liability that may be asserted by the tenant. For example, California law requires several procedures to be followed in order for an eviction to proceed. A property management company follows these as a matter of routine. An inexperienced property owner may inadvertently neglect a point of law, which could give rise to a counterclaim from the tenant.
Landlords also find that being forced to deal directly with the tenant and attend court hearings wastes time and energy, while also distracting the landlord from more profitable endeavors. The eviction process requires a minimum of several months and follows several procedural steps. Here is how to evict a tenant in California:
There must be cause
It is illegal to evict a tenant without just cause. California law defines just cause. Even if you feel you have a valid reason to evict a tenant, you cannot do so unless it is a valid reason as defined by law. In other words, a judge needs you to describe a reason for the eviction that meets one of the following criteria:
- Failure to pay rent on time
- Breakage of the lease or rental agreement (like having a pet when the lease stipulates no pets)
- Damages to the property
- A serious disturbance of other tenants or neighbors after warnings
- Illegal activity
In some areas, a landlord can evict a tenant who overstays his or her lease.
These categories are broad and many actions could be interpreted as fitting into just cause. Nevertheless, the court has the say on whether your eviction case merits actual cause based on the facts of the case. Before pursuing an eviction action, obtaining legal advice is always recommended.
Prohibited activities
Regardless of the circumstances, California law makes it illegal for landlords to ever engage in the following actions without a court order:
- Physically remove the tenant
- Dispose of tenant's personal property
- Lock the tenant out
- Cut off utilities
- Remove outside windows or doors
- Change the locks
Mediation and settlement
Often, landlords and tenants find it is in their mutual interest to settle the matter out of court. For example, the tenant may agree to pay past due rent or to move out by a certain date.
Steps of the eviction process
Step 1 Notice
The landlord must give notice. The notice must specify the reason for the eviction and provide the tenant with an opportunity to respond. The landlord can move forward to step 2 once the legal notice period expires. Often, if the eviction notice reason is missed rent, the tenant will provide payment within the notice period.
Step 2 Complete the forms
To file an eviction suit, you must complete these three forms:
- Summons-Unlawful Detainer-Eviction
- Complaint-Unlawful Detainer
- Civil Case Cover Sheet
The tenant(s) are the defendants. Name all known tenant defendants. You can only evict the tenant(s) who you name. Only you or your lawyer can decide what to say in court documents.
Step 3 File in court
To file, make two copies of the summons and complaint and take them to the courthouse. The clerk's office will handle the filing, and you must pay a filing fee. The clerk will return two stamped copies of each. One copy is for you, the other is for the defendant.
Step 4 Serve the tenant
You will need to hire a process server. The server can provide personal service, which means that the papers are given directly to the defendant(s). Alternatively, the server can perform substitute service, where the server leaves the papers with another adult where the tenant lives or works.
Step 5 Defendant response
Each defendant has 5 days to respond from the time they received service. Defendants may respond with an answer, by filing in court or choose not to respond.
Step 6 Trial
To proceed with the eviction, you must now request a trial. This is done by completing and filing the Request to Set Case for Trial - Unlawful Detainer Form. At the trial, the plaintiff speaks first, followed by the defendant. The judge may ask questions of either side. If the judge agrees with the landlord, he or she will issue an order of possession.
Step 7
Providing the order of the possession to the county sheriff completes the eviction. Under the law, the tenant has 5 days to vacate the property. After that, the sheriff can remove the tenant and the tenant's property and lock the tenant out.
In cases where the tenant owed back rent, the court order may also include monetary damages due to the landlord. These often include back rent and attorney's fees or court costs. Either side may appeal the court's ruling. If the tenant appeals, the eviction is not delayed, though it could be delayed if the tenant receives a stay of execution.
Conclusion
Evictions are a necessary part of the property rental business. Unfortunately, some tenants simply don't pay rent. If that situation continues, it can put the landlord out of business. In other cases, tenants engage in property destruction or illegal activities. Landlords must evict bad tenants to protect their property and other tenants. For more advice on how to deal with troublesome tenants, feel free to contact our property management team.
Coast & Valley Properties is a full-service property management company serving the entire Monterey County providing unparalleled service of diverse rental properties, as well as homeowner association management.
How to Screen Tenants
Property owners take pride in their rental units, however, it frequently becomes quite overwhelming to be a full-time landlord. There are some complex maintenance and upkeep issues necessitating attention, and basic maintenance could be inadvertently overlooked completely. For property owners in Monterey County, it makes good sense for them to check out property management firms in their area. Their host of professional services saves their clients time and money. They will screen the applicants in-house for the leasing of your property, and they will expertly handle the day to day management of your property.
Benefits Of Using A Professional Property Management Company
There are many good reasons to utilize the services of a reliable firm with an experienced staff. They will keep track of lease expirations, insurance renewals, rental payments, vendor negotiations, leasing up the units, and much more. The property owner will enjoy the benefit of having a trusted partner that will oversee all aspects of their property. Additional benefits include:
• Less Stress
When managing a residential unit, the relationship is one on one with the tenant. There could be an issue of repair, routine maintenance, neighbor disputes, rent increases, lease renewals, and so on. The property manager will now be the one to deal directly with the tenant, so the owner will not have to do so.
• Less Paperwork
In dealings with a tenant, it is best to communicate notices or other important matters in writing. The property manager directly handles all transactions with tenants.
• Resolution of Maintenance Issues
Tasks, like assessing the damage, finding a contractor, gaining access to the apartment to make the repair, and following up all, takes time. When you hire a management company, they have all of the necessary contractors in place, and they will make the arrangements directly with the tenant so you don't have to worry. The fact that they work with the contractor regularly will save an owner money on the work as well.
• Less Bookkeeping
The management company keeps track of the bills for repairs, taxes, insurance, mortgage, and common area utilities. They will thoroughly review the bills for accuracy prior to payment. No more overpayments, late payments, or missed payments. The company provides thorough reporting to all of their clients. There is a portal for owners on their website so that they can be regularly kept up to date. The company utilizes the latest technology for property management reporting and to remain in complete compliance.
Simplify The Rental Process
The timely rental of your property will increase your rental income. Conversely, if a unit sits vacant for any long length of time, that will result in lost rent. A professional leasing consultant will handle the entire process for you and will strive to minimize any lost rent. They are area experts, and they know their market well. Rental properties receive inspections upon your tenant's move out to assess its condition. The management company will then promptly arrange to have the unit prepped and made ready. All of the advertising and marketing efforts will be put into place promptly and professionally.
When a prospective tenant submits an application, a thorough financial check and credit screening will begin. Furthermore, the leasing consultant will gather all of the required paperwork. This will include a completed, signed rental application, income verification, employment verification, photo ID, proof of address, etc. The information received on the signed application will be verified as they conduct the tenant screening process. Property management firms perform the tenant screening in-house.
The credit report is another major factor in the screening process. The importance of a credit report cannot be overemphasized. The higher the score, the stronger an applicant's financial background and payment history. The management company will also perform a thorough check of the applicant's rental history. The goal is to find the most qualified tenants for your property. This helps to avoid the headaches of any nonpayment issues down the road. The management company takes the tenant screening process very seriously, and they will do their best so that every applicant is thoroughly vetted prior to approval and move in.
The Choice For "Headache-Free" Property Management
Integrity, industry experience, and full service are what the client can expect when they select the management firm to manage their property. They will treat your property as if it is their own. The committed staff provides the best quality of service at all times. They manage both residential and commercial properties. Most noteworthy, they will provide every property owner with the peace of mind of knowing that every property they manage is their #1 priority.
Coast & Valley Properties is a full-service property management company serving the entire Monterey County providing unparalleled service of diverse rental properties, as well as homeowner association management.
Top 7 Qualities to Look For in a Property Manager
Investing in rental properties is without a doubt one of the most rewarding ventures. However, its success or failure depends primarily on the time, commitment, and expertise you dedicate to it. For this reason, you need a dedicated property manager to ensure your property is well-maintained while also making sure you and the tenants are satisfied.
With the above in mind, it takes a special type of person to excel as a property manager. Property management fits talented multitaskers who can handle tasks that intersect with many disciplines such as marketing, accounting, law, construction, insurance, engineering and many more. This makes it hard for rental owners to identify proficient property managers versus inept ones. So, what are the main qualities you should look for in a property manager?
1. Expertise and Experience
Experience and certification provide the base for trust and grounding. Your property is a valuable investment, and as such, you should look for a competent manager to take care of it. Engaging a manager with proper training and certification will give you an assurance that your property will be managed professionally.
Besides, the professional you contract for property management must be conversant with the local market and understand the value and potentiality of different properties. On top of this, the property manager should be familiar with the property regulations in the region, know the best strategies of attracting tenants, and possess the skills to prepare and interpret financial and other administrative reports related to your property. While not a requirement, a bachelor's degree plus real estate certifications will come in handy when handling the financial side of property management.
To find out if potential property managers have relevant skills and experience, ask the right questions. For instance:
• The number of years they have been managing properties
• The level of dedication to property management
• How many and which type of properties they have managed so far
• How they handle tenant screening, rent collection. Do they have an electronic system to handle this?
• Do they have a network of local professionals? You may occasionally need a recommendation of technicians, contractors, bankers, attorneys, and accountants.
2. Communication skills
Apart from landlords, property managers liaise with several stakeholders such as investors, tenants, and owner-occupiers. So, having excellent communications skills is key. Communication touches on several aspects. First, the manager should be an active listener to be able to comprehend and execute your wishes. Second, the property manager should be reachable by the tenants and property owner at all times.
The property management firm should also be able to explain everything in a clear and concise manner whether through writing or verbally. The firm should also have a mechanism to collect vital information about the property and relay the information to the property owner. Proactive companies provide an online portal for property owners to access information about their property.
3. Customer service & people skills
Apart from communication, people skills are key in building a good relationship with various stakeholders. Property managers work closely with tenants right from screening to the collection of rent. Each of these tenants is unique. This means that the property manager should know how to handle different people with different needs.
A potential firm should be friendly, understanding, patients, and possess superior negotiation and leadership skills. The company should be able to handle customers’ complaints with grace. Likewise, if an eviction is inevitable, the firm should approach it with a professional attitude. Make sure the candidate has handled similar stressful situations in the past.
4. Transparent & accountable
Property owners tend to place a lot of trust in their property managers. While this is a good gesture of professional relationship, this can be risky. Let’s face it. In the past, there have been several publicized cases of property managers charging for work that was not done or collecting rent without reporting it. Your ideal property manager is the one who will not withhold vital information that touches on your property.
The best way to cut the risk is to do a background check and read all available reviews about potential property management firms you plan to hire. If a company has been in business for an extended period of time yet it has few reviews, that could be an indication that it might not be putting much emphasis on delighting clients.
During your initial engagement, find out if the company is transparent about their pricing and how they handle conflicts. If possible, request to speak with current and past clients to get a better feel of the service offered by the company.
5. Dedication & passion
Having a group of passionate professionals who deliver the best service on your behalf is a dream of any property owner. Such professionals ensure you get the best end-to-end property management service.
Finding a competent property manager with a drive to provide unsurpassed services is premium. Ideally, property managers should share with property managers on ways to improve or add value to their rental properties. Unfortunately, only a few Property Management firms in Salinas CA are ready to go that far.
6. Organizations skills
Managing a rental property successfully requires a lot of work. A property manager has to juggle several duties. These include managing tenants, paying bills, improving the property, working on reports, making phone calls, marketing the property, complying with regulations among many others. To effectively handle all these duties, the manager should demonstrate an excellent level of organization.
During the conversation, ask potential firms how they manage their busiest days:
• How do the prioritize activities?
• How do they keep records?
• Do they have a system that guarantees seamless operations?
7. Maintenance capability
Once you have found a trustworthy property manager with excellent people skills and a proven track record, you also need to find out the firm’s maintenance capability. One of the biggest expenses that property managers handle is the cost of maintenance. This is also one of the areas that can have a huge impact on the value of your investment.
Find out if the property management firm has a good network of maintenance contractors or an in-house maintenance department. Does the firm have cost-effective maintenance options? Also, how often does the firm do maintenance checks?
Coast & Valley Properties is a full-service property management company serving the entire Monterey County providing unparalleled service of diverse rental properties, as well as homeowner association managemeperties today.
Benefits of Residential Property Management Services
Residual income is a dream of many all over the world. However, actually find a residual source of income that doesn't require upkeep or maintenance can be a difficult thing to do. When you are looking at residential real estate as a residual income stream, there is quite a bit of work that you will have to take into account. If you are trying to be a landlord, you need to get used to chasing down tenants for payments and fixing leaky faucets. However, with a residential property management service, you will be able to sit back and watch as qualified professionals take care of your property and deal with your tenants. Here are a few benefits of residential property management services you can enjoy within the Salinas area.
Rent To Your Ideal Tenants
When you are finding tenants to fill your rental property, you are taking a huge gamble. You never know if your tenants are going to damage your house or pay rent on time. This is why it is a great idea to work with a property management company. They have an application process that has been in place for quite some time that has proven to be effective. Using this application process will help you find the ideal tenants for your rental property.
Make Vacancies A Thing Of The Past
A big problem that many real estate investors have is vacancies in their property. While you may know how to invest in real estate, you may not know how to market your properties. A property management company will be able to help you market your property through their outlets. This will put more eyes on your property and keep the vacancy time down to a minimum.
Get Professional Assistance With Legal Issues
Renting out your property can get difficult at times. There are legal issues that you will face when you have others living in your home. At times, you will need to take legal action to evict a tenant out of your home. As a landlord, you may not know how to go about this process.
However, a property management company will be able to help you through this eviction. Even if you need police assistance to remove a renter from your property, the management company will know how assist due to years of local experience. If there are damages to your home that you need to sue for, a property management service will be able to help you recover the money that is needed in order to fix your home.
Save On Repairs
Trying to fix repairs on your own can be a very costly thing to do. If you don't do it right the first time, it is going to cost you twice as much to do it a second time. A property management company is going to be able to fix issues on your home quickly and easily. Their repair costs are many times just factored into your monthly or yearly agreement with them. This will give you the peace of mind that you won't have to shell out thousands of dollars on a regular basis for repairs gone wrong.
Eliminate The Stress Of Owning A Rental Property
Let's face it, being a landlord can be very stressful. If you are constantly worrying about your tenants paying you or repairs on your home, it can almost make renting out your home not even worth it. However, when you have a property management service helping you manage your home, you will be able to sit back and watch your equity grow.
Increase Your Property Value
Many times when you are living in a home, you forget about basic preventative maintenance that will help you avoid costly repairs in the future. If you do not keep up with maintenance in your home, the value of your home will not keep with the market. Instead, you may even lose value. When you have a property management service helping you with maintenance, you will be increasing the value of your property.
Remotely Manage Your Property
Even if you are living far away from your property, you will be able to keep tabs on your home with a property management service. This will give you the freedom to travel for work or pleasure. You won't be tied to a geographic location just because of your rental property.
These are just a few of the many different benefits that you will receive when you partner with a residential property management service. Managing renters is soothing that you shouldn't have to do alone. Relieve the stress of being a landlord by working with a residential property management service. You will find that this is a much more profitable way to go about renting your property.
Advantages of Using A Tenant Placement Service
If you are planning to rent a piece of property, it’s important that you know exactly what to do. Otherwise you could end up making a costly mistake later on. However, you could spend hours researching everything you need to know about renting a home and still make a mistake due to lack of experience. As any experienced property manager will tell you, having a large amount of experience can reduce a great deal of stress in any given situation.
Like most Salinas property owners, you don’t have the extra time to spend studying property management. The good news is, you don’t have to. A tenant placement service is available to reduce and eliminate worrisome problems that often come with renting property. In fact there are numerous reasons why many property owners choose to use this service. Keep reading to learn more about the advantages of using a tenant placement service for your Central Coast California properties.
Creative Marketing & Advertising
You may have a gorgeous property just waiting to be rented, but that doesn’t mean your ideal renter knows that. A tenant placement service provides creating advertising ideas that will catch your renting demographic’s attention. In fact, there are a number of creative marketing strategies you can request, such as online marketing.
In this technological age, you need to go online to be heard. Online marketing is a fantastic way to increase exposure. When done properly, online marketing can produce effective results, including filling your property with hassle-free tenants.
Unlimited Property Showings
Once your tenant placement service provider has generated enough marketing exposure, it will be time to show your property. However, if you’re like most property owners, you probably don’t have a lot of experience showing properties. Thankfully your tenant placement service provider has the expertise needed to impress possible tenants.
With the advantage of having unlimited property showings, you won’t have to settle for the first prospective tenant that comes along. Instead you can take your time. This will increase your chances of finding the best tenant for your rental property, without you having to do any extra work.
Professional In-House Application Screenings
Your property is an important investment in your portfolio. It’s understandable that you’d want to take every precaution to keep it safe and well-maintained. With tenant placement service comes professional in-house application screenings. Professionals with years of experience will examine every application detail to make sure nothing is missed. These experts know exactly what to look for to avoid a problem from even happening in the first place.
During an application screening, details are examined to make sure the possible future tenant meets every requirement. This will save you the trouble of having to evict a difficult tenant later on down the road. Or to have a tenant who is unable to pay rent. The best in-house application screenings will include the following:
- Employee Verification
- It’s important to make sure your future tenant has a job. Furthermore, their job needs to pay enough to cover the required rent. A tenant who earns a thousand dollars a month isn’t the right fit for a home being rented for two thousand dollars a month.
- Credit Check
- Once it’s established that your potential tenant has a legitimate job, it’s time to make sure they are financially responsible. A credit check will let you know if there are any financial red flags you need to be aware of.
- Rental History
- After it’s determined that the possible tenant has a job and a good credit score, it’s time to investigate their rental history. Ideally, you want tenants who have a history of good behavior, always pay their rent on time, and are good at maintaining homes. Of course, you want to avoid tenants that are frequently late with rent payments and have a history of complaints and property damage.
Stress-Free Lease Negotiation Services
Finalizing a lease with a future tenant can be a long process. Aside from all the of the extra time negotiations can take, there’s several other variables. However, you don’t have to deal with the hassle of this massive responsibility. You can rest assured that a profitable, yet fair, lease will be negotiated without you having to do any of the work.
Remember, with your tenant placement service comes an expert property manager. Let her use her years of experience to negotiate on your behalf. Imagine what you could do during all of the time you’ll save not having to debate and haggle with future tenants every week.
Find A Tenant Placement Service Near You
Looking for a tenant placement service provider near you? As you can see, there’s a lot that goes into placing a tenant. That’s why it’s important you work with a local property manager who understands the community surrounding your property. Reach out to your local property management company to see if they provide this advantageous service. You won't regret it! After all, doesn't it sound nice to spend less time dealing with stressful tenants and more time doing what you want to do?
The Benefits Of Paying Rent Online
One top concern of all landlords is payment problems. Not getting paid can be a more concerning problem for landlords than tenants with criminal backgrounds or a troublesome eviction. With more than half of Americans paying a bill late due to forgetfulness, it’s no surprise landlords are concerned about their tenants’ monthly payments.
Thankfully there is a solution to this dilemma. Due to advances in technology, it is now possible for tenants to pay their rent online. Landlords and tenants alike both love this solution as it creates multiple benefits for everyone involved. Keep reading to learn more about the convenience and benefits of paying rent online.
Convenience of Scheduling Recurring Payments
As mentioned earlier, over half of the county’s population fails to pay bills on time simply because they forgot. If you’re a landlord who’s tired of reminding your tenants their rent is due, or if you’re a tenant who wants to improve your credit score and rental history, consider scheduling recurring payments.
This allows tenants to have a “set it and forget it” option to ensure their rent payment is automatically deducted from their bank account each month. This also saves the landlord the trouble of waiting for the check in the mail, going to the bank to make the deposit, and manually recording the payment in their accounting records.
Landlords Can Enjoy A Decrease In Late Payments
Due to the aid of notifications and reminders, tenants can easily be made aware that their rent is due soon. In fact, tenants can have the ability to put money directly into their landlords’ bank accounts without having to know any of the landlord’s banking information. To make things more convenient, there’s also a variety of online rent payment options, including:
- Websites
- Mobile Apps
- Text Messaging
If you’re like most tenants, you’ve probably experienced the sensation of realizing your rent is due that very day. With the option of paying rent online, you no longer have to make a mad dash to the bank or scour the house for your checkbook. All you have to do is hop on your computer or grab your phone and within a few minutes everything is taken care of. Depending on the platform your landlord uses, you may have the option to pay your rent through any of the following means:
- eCheck
- Credit/Debit Card
- SMS payments
- PayPal
View Your Bill Status Anytime
Tenants no longer have to feel left in the dark when it comes to knowing their bill status. Many online rent payment platforms include the ability to view your bill status twenty-four hours a day, seven days a week. You also have the benefit of easy digital records, giving you a chance to skip the paperwork.
Rent Payment Security
Online rent payments are actually one of the most secure option for both tenants and landlords. Tenants no longer have to worry about checks getting stolen or lost in the mail. In fact, in a recent report made by the University of North Dakota in an Identify Fraud Consumer Report, researchers encouraged consumers to pay bills online whenever possible.
Online rent payments give tenants more security. Checks on the other hand, have bank information printed directly on the front. This makes it easier for tenants who use checks to become victims of fraud.
Make Rent Payments From Any Location
As mentioned earlier, online rent payments make it easy leave behind the hassle of purchasing stamps, checks, and envelopes. There’s no need to worry about getting to the bank on time when all you have to do is pull out your phone or log onto your living room computer to pay your rent. Imagine what it would feel like to have the ability to pay this month’s rent while you’re killing time at the coffee shop or standing in line at the grocery store.
With the younger generation paying 61% of their bills online, it makes sense for landlords to give their tenants the option to pay rent online. In fact, the National Multifamily Housing Council claims that 85% of people who pay their rent online are more likely to pay the next month’s rent as well.
Ready To Learn More?
As you can see, not only does paying rent online make things easier for tenants, it also makes things more convenient for landlords as well. With options such as scheduling recurring payments, getting notifications and reminders, being able to view your bill status 24/7, having the ability to pay rent from any location with internet access, and knowing your online payment is more secure than writing a check, it’s easy to understand why so many people are paying their rent online.
If you’re ready to enjoy the benefits of paying rent online, consider reaching out to your local property management company to learn more. If you live near Monterey County, Coast & Valley Properties, Inc. is available to help with all of your online rent needs. Get started today to enjoy all of the convenience, security, and benefits of having the option to pay rent online.