Investments risks are higher when decisions are taken without adequate information. Hence, this mini-guide, which was shared on deck contractors northern va
, is written to help entrepreneurs like you mystified by property management as a career. (So call Home Buyers website for a full version) Assuming you have placed a reasonable market value rent on your property, you should not be worried drawing tenants and maintaining a high-level occupancy. What happens to the tenants or not afterward depends on your management skills. Property management is the most misunderstood part of real estate investment.
Its problems arise as a result of lack of education.
If you are in lack of good property management skills, your business will suffer high management costs, bad tenant relationships and high rate of vacancies. When I started I gave consideration to some ideas obtained from internet resources like southerncaliforniahomebuyers.com in making management investment decisions. I understood that the difference between a positive or a negative cash flow for your rental business is the money you save through good property management decisions. In the beginning of managing your own properties, you will gain practical knowledge of management business and the responsibilities attached.
How did I start my property management career?
I went to school to gain theoretical knowledge of property management before facing practical experience in real life. My previous experience with real estate rental started with being a good tenant for about five years in two different places. After passing my real estate examination, I worked for two brokerage firms and managed properties on the side to gain practical knowledge.
I gained the confidence to manage my first property through the assistance of our company's previous property manager. After that breakthrough, I kick-started my property management career by managing my own properties for profit.
It was when I started making the profit that I appreciated that property management could be rewarding as a career. However, that is not to say that property management is a bed of roses. Managing people and their needs without a system in place can be troublesome. The toughest part of a property management job is real estate rental. Here is how I work a qualifying filter system on my job:
The local newspaper classified adverts provide most of my real estate rental applicants. We shall call them Potential Applicants (PA). Having provided adequate information in the newspaper, we expect PAs making inquiries to come prepared to rent our apartments. I always ensure our newspaper adverts provide explicit information like below: "My town: one clean bedroom apartment;
$500 plus deposit, utilities included, A/C, coin laundry available;
123 Main Street, (222) 333-4444". With this amount of information readily included they have all they need to make a decision before approaching me. Here is an example of a conversation over the phone with one PA.
PA: Hello, is the apartment available? Me: Yes, when do you want to move in? My name is Irene. PA: Thanks, my name is Mary. It is for my son John; He is planning to move soon. Me: Sorry, is there any reason why your son cannot make the inquiry himself? (My experience tells me I may stop here and deal with the real party later; the relatives or friends may have a different agenda sometimes).
The son calls me later and asks ….. PA: Do you accept pets?
(Reptiles, rodents, dangerous dogs, etc are not on my list) PA: It is my aunt's cat and she is 10 years old.
Me: Yes, we accept a cat with a registered pet ownership license. Can you please provide your pay-slip so as to verify your employment and earnings? PA: No, I receive my payments through the social security checks. (To assume that your prospective tenant on assistance will be bad is an erroneous notion)
Me: Sorry we only take applications if the documented total monthly net income is 3 times the rent. The non-refundable application fee is $20 and we pay a different company to provide us with a credit report.
(Some applicants just give up after this phase).
PA: OK! I work two jobs: Manager at Mac Donald and telephone marketing at night. My girlfriend is working as a telephone marketer.
Together we make $1400 a month.
"If he or she intends to leave anytime, they both must leave at the same time") PA: OK! I work part-time at "Printing Nice" and I am a full-time student. It is my fist time out of the home; my Mom may co-sign the lease. Me: OK! Please come with your Mom when you are ready to come see the apartment.
PA: Please can we see it on Saturday by 12 noon - It is our free time to look for apartments. (At this point, it is important to be able to identify a desperate PA, and not hearken to his pressures).
Me: OK, see you then at the address by 12 noon on Saturday.
My definition of a "good tenant": He pays his rent on time, takes care of his surroundings and is friendly. Finally, service to society, the sense of humanity comes next to protecting our business interest.
Otherwise, business will not last a long time.