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Five Benefits Of Using A Good Property Management Company

If you are a landlord that would like to avoid dealing with monthly rental income and expense management or would like to eliminate weekend maintenance calls, read on. The right choice for you may be hiring a property management company to handle your real estate investment. Of course, they are going to take a cut of the revenue from your rental, but they are also going to free up your time and much help to streamline your business.

It is essential that you interview several companies and that you take your time making the best decision. The truth is that not every property manager will be the best fit for you, so taking the time to find the right choice is time well invested. The truth is that when you find the correct choice, your days of managing your rentals will indeed be over.

Take A Look Here At Five Benefits That Will Be Provided By The Best Property Management Company For You:

1) Screening Out Problem Tenants

The fact of the matter is that experienced property managers see hundreds of applications, so they are well versed in spotting any potential red flags. Your chances of landing that reliable tenant is vastly improved by their experience and care in these matters.

2) For Tenant Concerns, They Act As The Point Of Contact

When there is any breakdown of your property, it is not always an easy task to rush over and evaluate the situation. This is even truer when the property is not near where you are. A property manager can and will address whatever the problem might be and when necessary, get a service provider to take care of the problem. Still another significant advantage the property manager offers is handling the ever complaining tenant who seems to have some problem that requires attention continually.

3) Decreasing the turnover of tenants

Renters are always kept feeling happy and satisfied by competent property managers. They take care of any problems or issues when they come up and are readily available to address all concerns. When the tenant is happy, they are far less likely to seek another dwelling and are also more accepting of rent increases which are reasonable.

4) Making Certain Rent Is Paid On Time

The property management company is motivated to keep the rents coming in when due since they deduct their fees from the money coming in. The property management company will be there to enforce the terms of the agreement if for any reason the payment isn’t received when it is due. If there is a consistent problem with the rent being collected when due, the property manager has the money to handle the situation properly.

5) Lessening Your Rental Headaches

You are going to have fewer complications and issues to have to deal with when you have a property manager handling the daily management of your property. This allows you to enjoy a better quality of life and far less stress.

The bottom line is that there are so many definite advantages to securing the services of a competent Phoenix property manager and it is well worth whatever the cost may be!

Red Hawk Property Management

+1 480-396-9766

Simple Tips To Protect Your Rental Property From Liability & Lawsuits

If you are the owner of a rental property, it is likely that you have considered the liability associated with that. If you have real legal concerns, it is best to speak with a lawyer. There are, however, simple tactics that you can use to help protect you and your assets.

Purchasing rental properties is widely considered one of the best investment choices a person can make. Usually, you can buy them below market value which opens up the potential to make real money. There are real risks associated with being a rental property owner, such as being sued for money or because of injuries occurring on your property. Whether a freak accident occurs or someone gets hurt from landlord neglect, the risk of injury is a real problem facing owners.

As an owner, you need to consider if the returns you make on the property are worth the risks. Even if it is worth it, there are still precautions you can take to protect yourself. If your returns are decent, then you can afford to take additional precautions. If you are more limited in your options, it is best to consult with professionals to get the best advice on what coverage and precautions you should take.

Use a property manager

Managing your properties or someone else’s increases your liability. There have been cases where an evicted tenant hurt themselves while moving out and turned around to sue the property manager. The tenant claimed that the landlord had broken his TV and left the glass in a window well. When he fell in the window well while moving, he claimed the injury was the fault of the landlord. Tenants can make a lawsuit out of almost anything, so it is best to be prepared.

Even after lengthy court cases and a verdict in favor of you, there is still a valuable lesson to learn. It is critical for landlords to have insurance; with liability insurance to cover issues like this the legal fees would have been covered. Talk to your insurance agent about getting liability coverage. To be a property manager in most states you need to be a licensed real estate agent first, and they require E and O insurance, so this is a good place to start.

As a property manager, you need to be aware of local and state ordinances. Take the time to research which forms and documents. A good example is that some states require you to sign lead-based paint forms and to put up a flyer on all properties. You need to be careful because states can find a great deal of money to get you to pay attention to the laws. You have to consider if you really want to risk losing money on something you had the time to research and take care of.

Create corporations or LLC’s

Creating one or several organizations is a great tactic to protect your properties. Each property will need a checking account for all money associated with that location. Setting up a corporation is a simple process, taking no more than thirty minutes and there are several of online companies that will help you get started with the process. You have the option to have a lawyer set this up for you too, but they can cost around $750. This really is too high, considering you can do it yourself. Setting up an LLC can be fun, you can be as creative as you want when it comes to naming them.

You need to check with the bank that finances the property before transferring it to an LLC. The reason being that some bans have due on sale clauses, which means they can call your full loan if you sell the property. Even though the same individual owns the property and the LLC, it can still trigger the clause to be activated. Once a property is transferred to an LLC, it also becomes harder to refinance.

Homeowners insurance

Think of all the things that can cause damage to the property; frozen pipes, backed up sewers, trees falling and even natural disasters or severe weather. Working with agents to get the proper coverage for your properties is a necessity. Discuss all the possible coverage and find out what is not covered; some companies do not include floods and sewer problems. Each property will require different coverage so for each location evaluate the risks against the insurance costs to determine what will work financially and protect you.

Free and clear is not always best

Having a property free and clear with no loans open puts you at greater risk for lawsuits. People will be more inclined to sue when they are assured of a payoff, and if you owe nothing, you will have to pay more for any suits. Opening a line of credit against the property shows up in public records which can help you. Even if you do not owe anything, the full amount of the loan is what is visible, and it could protect you.

Hiring rental property services to take care of your properties and having proper and adequate insurance coverage is the best protection you can give yourself. Always use a reliable and knowledgeable insurance agent who has experience with rental policies. They can inform you of all the potential policies and explain them to you, allowing you to pick what is best for each of your properties.

It is also a good idea to hire an accountant to make sure all taxes are filed and handled correctly and a lawyer to take care of any possible legal protection you may need. It may be expensive to work with these professionals, but if you are new to the rental property owner game, it is a wise choice to get them involved. Understanding the risks and getting prepared early, will make and future problems much easier to deal with. You could stand to lose a lot with one lawsuit, so look into thoroughly protecting yourself, you will thank yourself later.

Phoenix, AZ Property Management

Red Hawk Property Management
2451 E Baseline Rd Ste 410, Gilbert, AZ 85234, USA
+1 480-396-9766

Should You Self Property Manage Or Put Up With A Property Manager Fee?

Most property owners are often faced with the question if it is cheaper to manage their property or whether leaving property managers to do it is a better option. While some consider managing their property so as to escape the extra fee of hiring property managers, it is worth that you know it is not all about the charge but what the fee has to do with the services. Hence to get the answer to the question as stated earlier, you need to consider all the factors that make you hire the property manager, such as the value of your time and get to see if the services provided by your manager are much more worth that the fees charged.

According to research, most property owners are on the move to hire property managers. There is an increase in the number of landlords who prefer to have property managers manage their rentals while there is a decrease in the number of those who manage their property.

I believe you are now wondering why such a trend and why opt to hire a property manager while you can do it for free. The reason behind this is simple. No one would consider going for an expensive option while you can get a cheaper option, which means that hiring a property manager is cheaper as compared to managing your property. However, how can this be true while you will pay a property manager and you don’t need to incur any fee by managing your property? Let’s have a discussion and discover why a property manager is worth your consideration.

Time is money

Managing your property when that isn’t your full-time job will take much of your time, not to mention that you will probably have to spend much of your valuable time dealing with tenants. This is likely going to make you lose much money especially if you have to leave your business to deal with your rental property residents’ issues. This can worsen if your rentals are too far from your residence or business area. However, no matter the situation you are in, you cannot forsake your tenants as this may just make you lose another income source which means that you will probably have to go out of your business for some time. Such situations will make you make losses on your business especially if you need to deal with your tenants frequently. To avoid losing your valuable time you should consider delegating some duties, the most convenient which is leaving property managers to oversee your property.

Knowledge of the law

Did you know that there are rules set for a property owner to abide by? Failure to comply with such codes will only lead to costly pitfalls. Being a property owner who has more valuable things to deal with, you probably will not have the time to research on such rules and regulations. Besides, keeping up to date with changes to such codes can be hard, which can cause you to deal with costly legal charges or even the loss of your property. To ensure that your property and every undertaking related to it is compliant with the law, hiring property managers is a good step to take as you can have the assurance that you will not fall in the illegal arms of the law. The reason behind this is that property managers keep track of the rules and regulations supposed to guide property owners, thereby ensuring that your rentals meet the required requirements.

Offsetting tax

Despite the fact that you ought to pay the fee arising after hiring a property manager, you can still raise your tax benefits. This results when the management fee is counteracted against your tax.
While there are several advantages of paying the extra fee and having experts manage your property, the choice on whether to incur the fee or to manage your property ultimately depends on you.

Make sure that you weigh the benefits of hiring property managers to the fee charged as well as the value of your time and ensure that you make the right choice.

Property Management Phoenix

Red Hawk Property Management