If you own a rental property in St. Petersburg FL, it is inevitable that at certain point you may need services of a property management company with experience in this city. You may be asking yourself whether it is a good idea to outsource the management operations.
You need to know when it is appropriate to outsource your management operations. In addition determining the right company to manage your property is an important investment decision one can make. When you choose incorrectly, you will be required to work harder.
When you have several units to rent ought you are likely to require services of a management company. In this case, you need to make a major decision. Before you make that important choice, you should the following into account:
1. Pros of outsourcing to another third party
2. Corresponding cons
3. Available alternatives
4. What are the implications of managing the property yourself?
If your property is located in the city of St. Petersburg FL you need to make a good choice. We look at the above considerations in detail.
To own and manage a property you require various skills. However, most property owners just purchase a given property not knowing the responsibility that comes with management operations. Therefore, before one purchases rental properties you should know what is required of you.
1. Knowledge of tenant/landlord law. You need to be familiar with state laws which govern landlord/tenant relationships. This is a must for each property owner. If you are not comfortable with the laws you are likely to be open to fines and lawsuits. For instance, some acts require disclosure of certain information like the paints and hazards before one lease the units. Failure to do so attracts fines.
2. Expenses and time to visit the properties. Any rental property requires regular visits. You need to check the condition of your property, show vacant units and perform maintenance. If these properties are very far away from where you reside you will be required to drive. This will not only be expensive, but time consuming. If you own many properties and you try to self-manage them, you are likely to risk spending all your time to perform routine visits rather than the managing company.
3. Responsibility for maintenance and repairs. As a property owner, you need to have an array of skills in order to carry out the maintenance yourself. Some of the skills needed include electrical, landscaping, plumbing, and carpentry in order to maintain a property. If you do not have such skills, you are likely to spend additional income on the repair services.
4. Tenant Screening. As the owner, you should be able to weed out bad tenants who will be causing serious problems to you. If you have few units and you are required to replace a bad tenant, you profits will dwindle over time. You should carry out credit checks, collect references, and employment verification, as they are important in the process.
5. Dealing with difficult tenants. You should be able to deal difficult tenants. It is important to note that unruly or unhappy tenants are likely to cause problems to you. You must stand firm when it comes to eviction and violation of rules and enforce rules of leasing. If you are a person who is not able to confront others, you are at risk of being taken advantage by your tenants. In certain cases, you may require to hire a lawyer or the court to settle the issues and in such cases you will have to pay hefty fees.
Use of property management software. If you have many units, you may need to invest in software that manages your rental properties. When you invest in such system you have ability to increase efficiency by:
1. Accepting your rental payment online
2. Carrying out criminal and credit checks
3. Decreasing the advertising costs by posting the units to various popular listing sites
4. Reminding the tenants to pay in time
5. Doing away with poor record keeping; and
6. Creating tax forms and letters automatically by using the pre-existing data
A good property management system is a must have tool designed for novice property owners.
What Are Benefits of Hiring a Property Management Company
Since self-management has its own demerits; it is necessary to understand the results you will get by contracting a property management company to rent out your properties in St. Petersburg FL. In general, if we run your real estate investment, the following are some of the results you will achieve:
We have done this type of business for many years. We are more experienced at the advertising and we have access to large pool of prospective customers. This therefore implies that your units will only stay vacant for a very short period. We have better understanding of the local St. Petersburg FL areas and its suburbs. We understand the rental rates in each suburb. This puts us in a position to maximize the rates you can in charge in a given property.
More Free Time
When you hand over your managing responsibility to us, you are going to have additional time at your disposure. This is probably the enjoyable and obvious benefit when you outsource your service to us. We eliminate the need to look for various services and vendors. You can also use this additional time to plan for your new investments.
Reduced Direct Costs
As a management company in Saint Petersburg we are able to carry out preventive maintenance, reduce direct costs of property owner. In addition, we have extensive knowledge of both the local city and federal laws regarding landlord/tenant relations. This will shield you from the costly lawsuits. A lawsuit is very expansive and if one occurs successful, a property owner is likely to pay huge fees. We also carry out the tenant screening processes. We have experts in this field. This can reduce the damages that can be caused by poorly screened tenants.
Personal Benefits for Property Owners
There are benefits you will enjoy as the property owner. The following are some of the benefits:
- Less stress
- More freedom
- Freeing more of your time