A property manager is a third party who is hired to handle the daily operations of a real estate investment. Property managers handle all types of property from individual houses to large and complex company buildings. They basically manage property on behalf of the owner and one of their major role is to aim at safeguarding the interests of both landlords and tenants by fulfilling the basic responsibilities. The services that property management companies provide are as follows.
Responsibilities of Property Managers or Property Management Companies
Rent Setting and Collection
(i) First of all, property managers are responsible for setting the right level of rent that will attract tenants to your property. They have an understanding of the market where the property is located and have looked at similar properties in the area.
(ii) In addition, Property managers play a vital role of collecting rent on behalf of the property owner. This makes it easier for the property owner as the property managers ensure optimal cash flow by setting a date to collect rent each month and always ensure that there are no late payments.
NB: Property Managers also have a duty of increasing the rent according to individual state and they can also decrease the rent if need be.
(i) Find tenants- Property managers are also responsible for tenants. They are involved in finding the tenants and dealing with complaints that tenants may have. They are responsible for marketing the property, thus they know where to advertise and what to include in their advertisements. They also understand what attracts tenants, so they can suggest making improvements to help beautify the property.
(ii) Screen Tenants- Property managers’ help you find the tenant that is the best fit for your property. They always have a better way of selecting the right tenants for you, thus they look for tenants who will pay their rent on time, have a longer tenancy and create fewer problems.
(iii) Handle Leases- they are responsible for setting the length of the lease and making sure it has all the necessary provisions to protect the owner. This includes determining the amount of security required.
(iv) Handle Complaints and Emergencies- they play a great role of maintenance requests, noise complaints and have the necessary contacts to handle emergency situations.
(v) Handle Move Outs-when a tenant moves out, the property manager is responsible for checking for damages and determining what portion of the security deposit will be returned to the tenant. After move out, they are responsible for repairing any damages and finding a new tenant.
(vi) Dealing With Evictions –when a tenant does not pay rent or otherwise breaches the terms of a lease, the property manager understands the proper way to file and move forward with an eviction.
Have a duty to oversee property Maintenance and Repairs
Physical management of the property, is one of the most important responsibility of the property managers which helps your building to remain new and smart. Property managers have a responsibility for regularly checking on property maintenance and emergency repairs.
(i) Maintenance- They hire someone to check for leaks and remove trash. This maintenance aims to keep current tenants happy and attract new tenants.
(ii)Repairs-They also have a duty to hire someone to attend to any problems found in the property and they often have a large network of reliable plumbers, electricians, carpenters and other contractors.
They have Knowledge of Landlord-Tenant Law
Property managers have a thorough knowledge of national laws regarding to the proper ways of: Screening tenants, handling security deposits, terminating a lease, evicting a tenant, complying with property safety standards.
Responsible for Taxes
(i) The property manager can assist the property owner to understand how to file taxes for the investment property.
(ii) The property manager can also file taxes for the property.
When you decide to buy a new house a lot of time and effort will be required. Below are some tips that can make the buying process much easier for you and help you make the best decisions possible.
Do your Research Early
Start reading newspapers, magazines and also visit websites that have real estate listings. Take note of particular homes you are interested in and see how long they stay on the market. Also, note any changes in asking prices. This will give you a sense of the housing trends in specific areas.
Determine How Much You Can Afford to purchase the House
You can determine how much you can afford to purchase a house by looking at your own financial situation. To help you save for your payment, put aside a certain amount of money each month.
Find a Real Estate Agent
Real Estate Agent are important partners when you’re buying or selling a house. Real estate agents can provide you with helpful information on homes and neighborhoods that isn’t easily accessible to the public. Their knowledge of the home buying process, negotiating skills, and familiarity with the area you want to live in can be extremely valuable. And best of all, it doesn’t cost you anything to use an agent they are compensated from the commission paid by the seller of the house.
Compare the houses
It is important for you to compare the prices of the different houses you would have developed interest in so that you determine the one which you can afford and is worth buying. It will be helpful for you to take notes on all the homes you visit because you will see a lot of houses you may be interested in. having notes and pictures of the houses you would have seen may enable you to remember every detail about each home.
Take your time
Take as much time as you need to find the right home. Work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached agreement on a price then you have to look for a professional to inspect the house for you.
Get a Home Inspection
Inspecting the property is very vital as a lot of things will be checked such as; signs of structural damage or things that may need fixing. A real estate agent usually will help in arranging to have this inspection conducted within a few days of your offer being accepted by the seller. This contingency protects you by giving you a chance to renegotiate your offer or withdraw it without penalty if the inspection reveals significant material damage. Both you and the seller will receive a report on the home inspector’s findings. You can then decide if you want to ask the seller to fix anything on the property before closing the sale. Before the sale closes, you will have a walk through of the house, which gives you the chance to confirm that any agreed-upon repairs have been made.
Coordinate the Paperwork
There is a lot of paperwork involved in buying a house. There is need to ensure that the seller is the rightful owner of the house you are buying, thus appropriate documents should be signed.
Close the Sale
At closing, you will sign all of the paperwork required to complete the purchase. Once the payment is sent to the seller, you are ready to move into your new home.
It is very important to make a home selling plan before selling your house. Selling out a valuable asset like a house is a big decision and it’s obvious that you will need a better return from it. However taking such a decision on your own without enough research, assistance and preparation might result in costly house selling mistakes. Below is some information that might help you when you want to sell your house.
Understand your Motivation for Selling
The first thing to do is to understand the motivation of selling your house. Go through all your reasons for selling; everybody has a reason to sell. If there isn’t anything motivating you to sell your house and one morning you just wake up and think of moving to the other side of town and you haven’t completely thought about it you could be setting yourself up for disappointment. If your reason of selling your house is not viable, you may later regret selling. Try to weigh your decision to determine if you are making the right move.
Consider the idea of Buying a New House
Usually most people who want to sell their house, buy another house maybe in a different suburb or in a different town. When you want to buy a new house it will be ideal for you to put together a list of neighbourhoods where you may want to live and drive through those areas and check out pricing between newer homes and older homes. Take your time and Weigh your options. You might find out that you prefer to stay where you are. If you can’t find a house that you are interested in, perhaps you need to review your goals.
Consult a Real Estate Agent
Consulting real estate agents will be a sign that you have approved your decision of selling your house. Hiring a real estate agent will be an advantage to you because the agent will do most of the stressful work for you. The real estate agent will help you;
-Identify areas which need repairs before Selling
Selling your house with the help of a real estate agent will help you identify the areas of renovation so that you fix them and sell your house faster. The agent will help you spend less in renovating your house compared to the costs you may incur when you do it on your own. There is no need to spend a lot of money making improvements but you will have to repair obvious maintenance issues, if any have been neglected.
Your real estate agent can help you stage or stage it yourself. You will get more for your home if it is staged. Staging tends to pay for itself, over and over.
With the help of a real estate agent you will be able to value your house at a profitable price. Real estate agents always have the knowhow of evaluating houses for sale. When you try to sell the house on your own you may overprice it and scare away potential buyers or undervalue it and make a loss that will make you regret the house selling.
Calculate Net Profits from selling
It is vital to prepare two net sheets before you sell your house, the first one must have a low price and another one must have high a price. This way, as a seller you can be prepared for the worst and hope for the best. If the lowest net price will let you buy the home you want, it’s time to find financing and if the high price will enable you buy the new house then you are safe. Sell Before Buying
During the process your home goes on the market, you might be tempted to go online looking at homes on sale. Seeing the beautiful houses might force you to make an appointment to view a few homes. Never make mistake of being carried away by beautiful photographs of your dream home. It is almost always more profitable to sell before buying.
Selling a house is a complicated process, no matter how good the real estate market is. Whether you’re a first-time home seller or not, you’ll need a Real Estate Agent to sell your house. A Real Estate Agent will make the whole process much easier for you as the agent will evaluate your house and help you price it and do all the paper work needed.
There’s a reason why most of the home sellers use a real estate agent; selling a home takes time, there is need to know the local market and negotiating skills. A Real Estate Agent’s task is to help set the right price and then get buyers for your house. Hiring Real Estate Agents is worth it because agents have access to the most up-to-date information about recent sales of comparable homes. It’s the agent’s job to keep abreast of those changes as the market is changing every day.
In addition Real Estate Agents are good at selling houses as they will market your home aggressively. The estate agents usually take quality photographs of the house on sale and show them to prospective buyers. The most important thing is that the agent will assess potential buyers so you can deal only with serious prospects.
Hiring a Real Estate Agent makes the selling process easy for you!.
When you plan to lease a building to run your business, purchase investment property, or anything in between, making the right decision on which property or building to opt for is one of the most important business decisions you will need to make. Below are reasons which will enlighten you on the benefits of utilizing the proficiency of a professional commercial real estate agent or broker when planning to lease, rent, buy or sell property.
Professional Real Estate Brokers have local Market Expertise
Professional real estate brokers are always abreast of the local real estate market. They have fully detailed information about the area, the trends, the local business owners and the landlords. This kind of information is vital when looking for a deal of leasing, renting, buying, or selling property.
It Saves Time
Real estate brokers have vast knowledge and connections when it comes to property evaluation. Professional real estate brokers are good at learning about your individual needs and goals, and they can quickly present you with some options. Your search for the perfect property is made easier and less time consuming.
They Have Access to Data and Resources
Professional commercial real estate companies invest a large amount of money and time to have the most up to date data, information and resources at their disposal. This is a very advantageous tool for you when looking for the best options.
They Have a Network of Services
Real estate brokers are some of the most well connected professionals you will find. If your situation calls for legal, accounting, design, architectural or almost any other type of expertise, you will have access to the best available.
Having a professional broker on your side will equip you with many more options than trying to go at it on your own. Because of the data, resources and connections previously mentioned, you will end up with options that you would not have otherwise had access to. You may even have some choices that haven’t even officially hit the market yet.
Peace of Mind
Real estate can be a complicated process with many possible pitfalls. Having a professional on your side means greatly reduced worry about issues arising from paperwork and other legalities that can cost you down the road.
Utilizing a professional commercial real estate broker is one of the best business decisions you can make when you want to make a good commercial real estate decision.
You don’t have a down payment, you can’t afford the mortgage installments, or you can’t qualify for a loan. (Uh, that would be me.)
You might be moving in three years or less. These days, the amount of time you need to stay in a house for it appreciate enough to cover inflation and closing costs might be even longer.
You are not handy, you don’t have a green thumb, and you don’t ever want to unclog a gutter.
You are new to a city and you know very little about the area. Renting can be a great way to buy time as you figure out where you really want to live. (A house is not an island. Finding the best neighborhood should be the first step in your search
If you own a house that you can’t sell and are thinking of renting it out, finding good tenants who will take care of your home is challenging — but essential.
As you begin your hunt for the right renter for your home, use these 10 tips offered by real estate experts.
1. Understand the Laws
Research federal and state laws that cover tenants and landlords. For example, you could base your decision on credit or criminal history but not on race, religion, national origin, gender, age or family status.
To ensure you conform to state laws, go to the government website or consult a local attorney or legal information sites . Landlord organizations, could be useful resources.
2. Know Where to Advertise
Start online, says Jayci Grana with the National Association of Residential Property Managers. At a small fee, you can advertise property on sites like zillea.com.
To expand your approach, Hertzog suggests:
Take out ads in the online and printed classified sections of local newspapers.
Put fliers in area grocery stores and Laundromats.
Contact human resource directors at local businesses to post ads in employee lunchrooms and new-employee information kits.
Broadcast your rental to your friends on social networking sites, like Facebook and Twitter.
Get referrals from family and friends.
“Screen everyone the same no matter where you find them, even those from family and friends,” adds Hertzog.
In your listings and fliers, include a photo of your house and basic details, such as:
Neighborhood where it’s located.
Number of rooms and bathrooms.
Special features like a swimming pool, fireplace or basement.
3. Clean Your House
Even before putting the word out or advertising, make sure your house is clean and ready to show. Remove clutter and take care of repairs.
Because many potential tenants in need of housing already have been looking, they could respond within hours of an ad posting. “A well-maintained house increases your chances of securing a responsible tenant,” says Grana.
4. Use a Rental Application
“The rental application is the document used to collect personal information about the applicant and co-applicants so that you can perform background checks,” says Hertzog.
Rental applications could request:
Social Security numbers
Driver’s license numbers
Income sources and amounts
Children’s names and ages
Number of pets and their breeds
Employer contacts and job title
References (not family)
Depending on your state’s laws, you may be able to charge a nonrefundable application fee of $25 to $40 to cover the cost of background checks. “If someone refuses to pay this fee, there’s your first screening tool,” says Hertzog.
In addition to the application, provide a rental policy sheet that clearly spells out the terms and conditions of the lease, such as pets, cosigners and renters insurance requirements.
5. Require Renters Insurance
During the application process before a lease is signed, let your potential tenants know you will request that they show proof of renters insurance on the move-in date. Renters insurance will cover the cost of the tenants’ belongings as well as damage they could cause to your house. Consider purchasing landlord insurance to provide the coverage you need to protect your rental property.
6. Avoid Interviews
It may seem like common sense to conduct interviews as part of the screening process, but Grana advises against them. “That alone is opening you up for Fair Housing lawsuits. Also, the way people dress or act in person doesn’t tell you how they could perform in a lease agreement,” she explains.
7. Do Background Checks
“The only way you can determine whether they will be good tenants is based on their past history,” says Grana.
8. Wait for the Check to Clear
To avoid problems with a personal check clearing the bank, ask for a deposit in the form of a cashier’s check or money order. If you accept a personal check, don’t stop marketing the house and taking backup applications until the check clears and a lease agreement is signed, urges Grana.
9. Use a Lease Agreement
A strong lease sets the terms and conditions for tenants living in the house. These include facts like who will live there, when rent is due, penalties for late rent and so on. A good lease spells out the policies and basis for eviction.
10. Don’t Settle
Be picky. “Have high standards; don’t settle out of desperation. You’ll end up with a lower quality tenant who could cost you in the long run,” says Grana.
Original Article from – http://www.military.com/money/home-ownership/rental-property/10-ways-to-find-a-good-renter-for-your-home.html