With the rise of rental properties on the market along with situational landlords and foreign investors, many are finding themselves unprepared for management of real estate properties when problems arise. Even simple maintenance and preventative issues can be overlooked when no one is at the property to inspect and maintain.
The most common problems that arise are when rents start falling behind. Calls to tenants or collection agencies start to occur so that landlords do not start falling behind in rent. However, depending on where the property is located, there could be proper procedures required to start addressing rents collection issues, and the necessary eviction action if necessary.
Beyond worries with on-time rental payments, condition of the real estate, ongoing maintenance and even arranging work orders can be difficult especially with off-site landlords. Usually a present homeowner will notice items falling into disrepair, but when off-site preventative maintenance is much more difficult.
With the rise of rental properties on the marketplace, there has been a rise in property management companies as well. But just like real estate brokers, not all property managers can handle the various types of real estate or management that may arise.
Off-site landlords should for solutions that can collect rental payments and disperse worldwide. There are many existing technologies that provide for online rent collection and dispersing payments to landlords anywhere and even directly into their bank accounts.
As an investment property, financial reporting will be very important. There are several types of reports available, and depending on the type of real estate owned or being managed, you may need a specific report to understand your current returns. Account balances, P&L statements and even the general ledger will help understand expenses, income and your current return on your investments.
Management of real estate is extremely important for preventative maintenance and emergency responses. Most full service property managers may include all of the above types of services as part of their management fee.
Because some real estate brokers are also property managers, they may or may not include leasing as part of their service. Also, with changes in property management laws, management of large portfolios and larger associations may also require the property manager to hold a current license. Property managers should also be insured and bonded.
By protecting your investment real estate, landlords should be able to understand how their investments are performing, returns on investment and how to change their current investment risk.