When it comes to being a landlord, trying to keep up with all the responsibilities can be daunting. And, sometimes landlords can get “in over their heads” when they acquire numerous estates to lease to tenants.
For example, let’s say Michael Roberts (landlord) acquired 7 properties in January 2014. Initially, it seemed like a total win situation. Michael was able to manage the properties easily, and receive monthly payments from each of the tenants.
So, in order to gain more income as a landlord, he acquired 10 additional properties, rented them out, and was prepared to work full time to manage and maintain them. However, the work load associated with all 17 of the properties was absolutely TOO MUCH to handle.
Finally, Michael ended up reselling 8 of the properties for a loss in order to keep up with the maintenance and property management workload on the OTHER 9 properties.
What a tragic end to what could have been a very profitable business schematic! Below, you’ll find out how this whole situation could have been remedied easily and without fault!
An easy solution would have been to hire a property management company. It would have allowed Michael to still collect tenant payments for the estates, retain ownership of them, and make a larger profit EVEN AFTER paying the property management company for their services.
This is something that every landlord can cash in on, if they’re smart. On average, you can expect to pay a property management company between 5%-10% of the total rent for the estates you need management for.
Property management services include:
Finding a good property management company will take proper research, though, and you should definitely consider more than one property management company to represent your properties. Meaning, you shouldn’t just hire the first property management company you come across.
Be sure to do proper background research on ANY proper management company you’re considering! Property management companies can vary greatly in their performance and quality, so airing on the side of caution is a good idea, of course.
Property Management = Less Hassle And More Profits
Basically, a property management company allows you to still be a landlord, but without any of the hassle and responsibilities. You, as a landlord, collect the “lion’s share” of the rent payments while the property management company handles all the hard work for you!
Using this option, you’re income as a landlord is limited only by your investment capital. A good property management company can handle all aspects of your property rental business while you collect all the money.
Many landlords have found out the hard way that being a “stand-alone” landlord isn’t an easy business. In fact, it’s a lot harder and more time consuming than most people realize.
By looking into property management companies, and you’ll find that you’ll be able to expand your horizons, invest in more properties, and make a lot more than you EVER could otherwise.
One thing’s for sure, even amidst all the chaos concerning the current state of the housing market. Being a landlord / property investor has, and always will be, a highly profitable business schematic, as long as you know how to be smart and use strategy to your advantage.
As a property management and maintenance tip, we’re including a small bit of information about thermostats:
Chicago Controls Thermostats has great deals on thermostats for landlords, and if you haven’t looked into how your old thermostats are performing, you’ll be surprised at how much you can actually save by installing a new one!
By installing a new thermostat, you can save lots of money on your yearly heating / cooling costs. With a new, highly efficient thermostat in all the properties you own, you’ll be amazed when the cost savings add up and you’re left with THOUSANDS of extra dollars!
Imagine how you could use that cash to build even more profit in your investment properties, and you’ll see how it makes perfect sense to shop at Chicago Controls Thermostats!