Once you walk away from the closing table and the initial
jubilation of knowing that you're a bona fide real estate
investor wears off, the reality begins to sink in. A major
part of owning real estate is managing it. How prepared
are you for the rigors of actively managing your real
estate portfolio?
In order to maximize the profitability of your property -
whether your property is a single family home or a 50 unit
apartment building - you need to have a wealth of knowledge
at your disposal. Successfully managing your property
takes more than the ability to run a "For Rent" sign in the
local paper and hoping for the best. If that's all you do,
your investment could be at risk.
You face a couple of major challenges if you're trying to
own and manage your own properties: * How knowledgeable are
you about local rental rates? * How much marketing
expertise do you possess?
Local Rental Rates - Rental rates in your local community
can fluctuate wildly from neighborhood to neighborhood.
Two identical apartments just a couple of blocks apart may
rent for widely different amounts. Do you know what rental
rates are in your local community and - more specifically -
in the neighborhood where your investment property is
located?
If you take a wild guess on what to charge for rent, you
run the risk of charging too little or, possibly worse
still, charging too much. If your rental rate is set too
high, your property could sit empty for months while you
learn, through the school of hard knocks, what the proper
rental rate should have been.
Today's apartment hunters are a savvy bunch, and they can
use the internet to very quickly price rental property in
your area. You may not think a $20 or $25 monthly
difference is particularly noteworthy, but to an apartment
hunter, it could mean the difference between calling you or
your competitor.
Marketing Expertise - What marketing strategies will you
employ in order to rent your property quickly? Will you
run an ad in your local paper? Stick a sign in the front
yard? There are a couple of dozen ways you can market your
property, but if you don't know what they are, your
property will remain unrented and collecting dust.
You can utilize offline and online marketing strategies to
attract high quality renters to your property and reduce
the time your property is empty. The less vacancy you
encounter, the higher your income will be. If you don't
very quickly immerse yourself in marketing strategies to
rent your property to good, high-quality tenants, your
income property can become a money pit, sucking profits and
tapping your other income.
A Better Way - There is a better way. A professional
property management firm is out in your local community on
a daily basis marketing property creatively. They are
intimately aware of what it takes to find quality tenants
and quickly fill vacancies. While you may not know the
rent ranges within a city or even a neighborhood, a
property management company can attract high caliber
renters and get maximum rental rates.
Your property may have amenities that are unique or unusual
that can add value to your property. A dishwasher or
covered parking each influence the effective rental rate in
different ways and a professional property management firm
knows that difference.
If you have the time and the inclination to learn, you can
discover all there is to know about rental rates and
marketing, to make your property as attractive to a
potential renter as possible. A better idea could be to
outsource this task to a property management company that
already knows this vital information. This can make owning
property a stress-free, profitable endeavor, which can free
your time for more lucrative, money-making opportunities,
or free time in your schedule for idle pursuits, like
improving your golf score.
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Mike Lautensack is the owner of full service Residential
Property Management company based in and around
Philadelphia, PA. He advises real estate investors how to
build wealth and financial security through hassle-free
ownership of investment real estate with their "No-Hassle
Property Management Program." This proven management
system allows owners to enjoy the financial benefits of
cash flow, tax savings, and wealth creation while it
GUARANTEES you will never receive a late night emergency
call, deal with a lengthy eviction proceeding or ever have
to interact with an irate tenant. For more information
please go to http://www.delvalproperty.com/ .
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