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PORTFOLIO
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Hiring a Property Manager is difficult decision to make as a Landlord, since being a landlord is one of the toughest occupations in the world, many owners of rental properties consider to delegate the job and the responsibilities of the landlord.
They see the dollars they are saving by doing the job on their own and think it’s a good option to manage the property on their own but soon after almost going crazy, someone suggests getting a property manager to the hassled real estate owner and the idea of hiring a property manager sounds like real estate heaven now.
A landlord can spend 40 hours a week running all over the city handling blocked toilets, fixing A/Cs, and solving property maintenance problems. Then you have to find tenants, run a background check on them, run a credit check on them and kick out tenants who don’t pay. Once in a blue moon, you might get a vacation, this is why we wrote 5 reasons why you should hire a property manager?
5 Reasons why you should hire a Property Manager
1. A property manager finds the right tenant
The cost of choosing the wrong tenant is steep in terms of time, money and in some cases legal difficulties. Finding and placing a qualified tenant demands both diligence and knowledge that an experienced property manager would have. A qualified tenant is a tenant who passes a background and credit verification check as well as receiving a good reference from current and past landlords and employers. Finding a qualified tenant also involves setting a rental price and advertising, all of these tasks can be done by your property manager.
2. A property manager creates a good lease
After successfully qualifying the tenant’s application, it’ll be the property manager’s responsibility to draw up a lease that is both fully compliant with the law and 100 percent enforceable.
3. A property manager is in charge of property management
If something breaks, leaks, bursts, or wears out — it’ll be the property manager’s responsibility to determine the cause of the problem and get it fixed.
4. A property manager collects rent from tenants and handles evictions
In the event that the tenant stops paying rent, the property manager will attempt to collect it by sending written correspondence and making phone calls to the tenants. If the collection efforts fail, the property manager will determine that it’s time to evict the tenants. The property manager will have to send a legal notice instructing the tenants to pay or vacate the premises. After that, it’ll be time to file a lawsuit in court.
5. Finally, there’s the task of accounting. A property manager keeps track of income and expenses
Tracking income and expenses for a rental property isn’t just a good financial habit — it’s the law.
So how much does a property manager cost?
The average property manager charges somewhere between 50% and 100% of the first month’s rent as a finder’s fee and then 8% to 10% of the monthly rent. A renewal of an existing tenant would not generate a finder’s fee. If you are fighting for income, a property manager can feel like a large stone around your neck. But, a great property manager enables you to stay on the right side of the law.
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This article’s writer
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Investor & Mentor
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Exclusive Free Training:
“How to Take Your Real Estate Investing Business to the Next Level”
We are Strategic Alliance your partner in real estate investing. We team with, empower, and enable aspiring and serial entrepreneurs to take the next step or escape W-2 employment through business ownership, financial literacy, and real estate investing.
Strategic Alliance focuses on helping veterans, first responders, and real estate professionals develop passive income on their way to financial freedom. Changes in the real estate industry due to online tools such as Zillow, Facebook, and other informational giants, forces us to evolve or be left behind.
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PO BOX 33396
San Antonio TX 78265
1-844-VET-CASA
(1-844-838-2272)
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