Benjamin Franklin once said, "By failing to prepare, you are preparing to fail." The Founding Father's words are wise ones for anyone hoping to set up an investment portfolio.
Real estate has been one of America's favorite investment strategies for years. 34% of respondents in a recent poll ranked it as the best long-term option, putting it above stocks, gold, and savings accounts.
It's not popular because it presents no risks but because investors have learned to prepare for them with a bit of help. Read on to learn how great management protects your investment property.
Effective Marketing
You may be wondering what property management protects your investment property from, and there are several answers.
One major issue they protect you from is vacancies. A unit without a tenant means an investor without income.
Property managers know how to attract tenants thanks to a deep knowledge of the local Newport Beach real estate market. It lets them set the right rental rate and suggest the features renters want.
They take professional photographs and write detailed descriptions on listing sites. They'll use all the best available physical and digital methods to attract applicants.
Thorough Tenant Screening and Management
Another important thing to protect against delinquent tenants. They can damage your rental property, refuse to pay rent, or even behave illegally.
Outsourcing your tenant screening protects you from this with background checks such as:
- Credit checks
- Criminal history
- Employment verification
- Rental history checks
Property managers can also protect you from issues once they move in. They'll handle everything from maintenance complaints to evictions. It protects you from problem tenants and keeps you from losing the ones you hope to keep.
Timely Maintenance and Upgrades
Protecting your property itself means dealing with maintenance issues.
A property manager can conduct regular inspections and deal with small problems before they become earth-shattering and expensive. The property management company also has a network of trained professionals to help while staying on budget.
Legal Compliance
Another problem to protect yourself from is legal issues.
A property manager is an expert in all federal and local landlord-tenant laws. These include areas such as:
- Fair Housing regulations
- Safety codes
- Eviction law
Their expertise can shield you from fines or wasting time in court. It also protects your reputation and the value of your rental property.
Record Keeping and Financial Management
The final issue to protect yourself from is negative cash flow from your real estate investment.
This often comes from mistakes in recordkeeping. Let your manager handle all your leases, deposits, and legal documents so you don't have to.
These records aren't just for show. Your manager will look over them to check for ways to reduce your expenses and increase your income.
Who Can Protect My Investment Property?
A property management company can protect your investment property from the many risks it faces. These include problematic tenants, poor maintenance, legal issues, and negative cash flow.
PMI First Choice Property has over 19 years of experience offering full-service property management. We strive to build long-lasting client relationships by providing a seamless experience.
We work to maximize investors' profitability over time while protecting their investments. Get a free rental analysis to see where you're starting from and where you could go with our help today.
