Top Reasons to Hire a Property Rental Company
Although it is not unheard of for a landlord to forego the use of property management in Atlanta, it is not necessarily recommended either. There are many situations that may call for this type of service, especially if the landlord owns many properties or does not live in the local area. These professionals can also help landlords who are not interested in hands-on management. Here is a quick look at some of the top reasons to hire a property rental company.
Overseeing Multiple Properties
You may have started out renting one or two properties to people in your area. If you choose to develop your business, you might find yourself owning a few dozen properties that must be managed. This can be a bit much to take on for some people, which is where a property rental company becomes important. If your hands are full as it is, a property rental or property management company can take on much of the day-to-day responsibility to ensure that all tenants receive the customer service that your brand promises. The more properties you have, the more likely you will want to work with a property rental company.
Renting from a Distance
Some landlords who own multiple properties might personally reside far away from the local area. This distance can make it difficult to keep a close eye on your properties and address any issues that your tenants experience. Renting out your properties while personally being away from the area is another situation that warrants the use of a property rental company. Your management service will essentially act as a liaison between yourself and your tenants, and they will provide you with frequent updates as to how your properties and tenants are doing.
Hands Off Management
Renting out a property and managing tenants are two different tasks, and not everyone is interested in both. If you do not care for the management aspect of home rentals, have a property rental company handle it. These professionals are trained in management and capable of handling your tenants’ needs. You make the rules and your property rental company enforces them.
Hiring residential property management in Atlanta is an expense, but in many cases it is one that is worth your while. Property managers can help to improve your business, retain tenants, and offer you some peace of mind. Everyone benefits when you hire a property manager, and it is important to remember this when deciding whether or not to hire one. Read on to find out exactly how your tenants benefit when you hire a property manager.
Renting out your properties involves more than simply buying them. These properties require regular maintenance and repairs in order to remain livable. Your tenants will appreciate prompt assistance when they need a repair, and this is something that property management services can give them. Property managers are especially useful—and often necessary—if you cannot provide this attention yourself. If you are not interested in answering emergency calls from your tenants in the middle of the night, you should find a property manager who is. Failing to provide your tenants with the attention that they need and deserve will typically lead to quick turnovers and a bad reputation. If you want your business to flourish, it is important to know when to hire a property manager.
What Jobs Will Your Property Management Firm Perform?
While having an interest in real estate in Atlanta and owning property in the area may present you with the opportunity to become a landlord, these are merely pieces of the larger puzzle. Landlords often rely on property management firms to take care of a number of other aspects of the property rental process in order to ensure that everything runs smoothly and all parties are satisfied. Here is a brief overview of the jobs that your property management firm will perform.
Becoming a landlord may sound like a great idea, but it is important that you assemble the right group of people to help you through the process. A quality landlord has eyes and ears on his or her property on a regular basis to make sure that there are no problems that need addressing. Your property management firm can assist you with this property maintenance, and can help you find the right tenants to occupy the space. Property managers understand that renting to the wrong person or group of people can lead to disastrous consequences, so the firm will screen tenants before any deal is finalized and evict any tenant that fails to stick to your mutual agreement.
Owning real estate in Atlanta can be quite lucrative. If you have extra properties and are looking for an additional revenue stream, you may want to consider renting them out. It is important to keep in mind that landlords have a number of responsibilities to attend to, and not everybody is necessarily cut out for the job. Continue reading if you are wondering if you should start renting your properties.
Assembling a Team
In order to enjoy a successful career as a landlord, you will typically need to hire a few team members to ensure that the property is cared for. Many successful landlords enlist the services of residential property management companies to take care of some of the workload. A property management firm can help to develop a pool of potential tenants that are interested in renting your property, which is a crucial and yet sometimes difficult aspect of the job. Once these tenants have been identified, located, and moved into the property, any complaints they have must be heard; this is another area where a property management firm comes into play. In the event that your tenants violate your agreement and become a risk or liability, your property manager can take care of disciplinary action and eviction.
Being Available Around the Clock
If you are a particularly handy person, you can save on some expenses by maintaining your properties yourself. This may include a variety of tasks and chores such as mowing the lawn during the spring and summer, repairing any broken fixtures around the property, or even plumbing work. If you are not confident in your ability to complete these kinds of tasks, you should have the appropriate contractors on call so that any problems can be addressed in a timely fashion.
Considering Your Budget
Many people start renting their properties so they can start a business of their own. This expansion will be much easier if you can afford to purchase new properties in cash. Avoiding a mortgage means incurring maximum profits from your property rentals, which gives you a sense of flexibility when it comes to pricing.
Moving into the realm of real estate in Atlanta can be a personally fulfilling and financially rewarding experience, especially when you go into it with the proper skills, knowledge, and mindset. If you are considering becoming a landlord for the first time, be sure to conduct some research so that you are equipped with these tools before beginning the process. Keep reading to learn a few tips for first-time landlords.
Use a Property Manager
When you first become a landlord, you will be charged with the task of finding tenants to rent your property. This may be difficult if you have no prior experience in real estate, but there are options for even the freshest of faces. Consider hiring a property manager to direct attention towards your rental property and find tenants to occupy your house or apartment. Although hiring a property manager may be an expense you had not considered, it is one that will pay for itself over time. You’ll be able to rely on your property management firm to find you tenants and address their needs.
Consider Your Location Carefully
If you are looking to purchase a property to rent, be sure to pay extra attention to location. Beachfront properties with gorgeous views always tend to garner attention, and city apartments keep people right in the thick of the action. Since your rental property is an investment, it is crucial that you consider the prospect of your property appreciating. Stable areas or neighborhoods that are on the rise have a greater chance of appreciating in value over time. Although appreciation is never a guarantee , general inflation may appreciate the values of many different areas.
Account for All Expenses
As the landlord, it is your responsibility to make sure that the property stays in reasonably decent shape. Keep in mind that there are many factors at play in this situation, and not all of them are controllable; you must be able to afford any repairs that your property requires so that you can continue to rent it out.
Get Around Your Upside Down Mortage
It is common these days to hear about people who owe more on their house or real estate investment than it is currently worth. This is known as negative equity. A property management company in Atlanta can help determine the right course of action if you find yourself struggling to pay your mortgage and dealing with negative equity. Continue reading to find out more about tackling this issue.
When this situation arises, there are loan programs that may help. If you are able to renegotiate your loan, a lower interest rate may make it possible to catch up on your mortgage payments and avoid foreclosure. Some loan options to check out if you find yourself with an upside down mortgage are the Freddie Mac Relief Refinance Mortgage, the Fannie Mae Refi Plus, and the FHA Insured No Appraisal Streamline Refi. Another choice that some homeowners consider is to return the deed to the lender in lieu of foreclosure.
If renegotiating your loan is not an option, you may decide to rent out your home with help from a rental management company. If you are unable to do this, however, you might want to consider contacting a short sale real estate agent.
Owning real estate in Atlanta can yield a tremendous profit. Renting out property requires a certain degree of expertise, however. In order to maximize on the potential of your rental, you will want to make sure that all property-related business is executed in an efficient and timely manner. A management company may help save you a lot of valuable time and energy.
What are the top websites for finding tenants? What kinds of photographs are most likely to attract the kind of prospective renter you are looking for? How much information is too much on an ad? These kinds of questions can be difficult to answer on your own. A rental management company will help fine-tune your advertising process so that your rental is presented in the best light, and all of your properties are filled.
Sometimes, more than a gut reaction is necessary when finding the right tenants. It is important to pay attention to a potential tenant’s credit score, history of litigation or eviction, and income. A rental management company can provide tenant screening to help ensure that rent is paid consistently and reliably.
Whether you are the landlord of a single-family home, a duplex, an apartment building, or a variety of properties, a management company can help make sure your real estate remains in good shape. It takes a lot of time and experience to find the right companies to execute property maintenance and repair. It is also a bit of a hassle to juggle multiple requests for maintenance all at once. Your property management company will already know of reliable local contractors, and will manage maintenance requests for you. When repairs are handled quickly and successfully, tenants are more likely to remain where they are.
Dealing with Evictions
If you find that someone has not paid rent, it may be time for eviction . However, asking a tenant to leave requires a detailed understanding of the lease agreement. Rental management companies have experience with the ins and outs of the eviction process, and will correctly initiate this process on your behalf.
Tips for Getting Started
Are you looking to get into the real estate market as a landlord? If so, knowing the right steps to take and contacting a company that provides tenant screening services and rental management in Atlanta will be important for your success. You can find out more by watching this video clip.
In this video, you’ll hear the answers to some common questions about how to responsibly invest money. One of the issues that is addressed is whether or not it is a good idea to invest in a duplex as a rental property. The experts in the video clip— a financial analyst and a money coach—use their expertise to offer sound financial advice to potential landlords.
What Are the Tax Benefits of Being a Landlord?
Are you a landlord who is considering residential property management in Atlanta ? There are many benefits of owning rental properties, one of which is the tax benefit. Tenants rarely get any tax benefit from paying rent, but the tax systems in almost every state greatly favor landlords. In fact, real estate has more tax benefits available than many other types of investments.
Mortgage interest and real estate taxes will likely be your biggest deductible expenses, but there are plenty more that you can take advantage of. You can also deduct all operating expenses related to your rental properties and your rental company, from maintenance costs and utilities to travel expenses, employee salaries, and office supplies. You are also able to deduct the cost of your insurance premiums and legal services. You can also get back the expense of your real estate investment through depreciation, or making a tax deduction for part of the cost of the property over several years.
If you end up selling a property that you have owned for at least a year, the federal tax rate of the sale cannot exceed 20%. The appreciation of your rental property will not be taxed until you sell, and you can access a tax-free portion of the appreciation prior to selling by refinancing the property or taking out a second mortgage on it.
Even tax losses result in deductions for landlords. If your property produces a tax loss that is offset by passive income, you can deduct for that loss. Additionally, there are greater tax benefits for owners of rental properties who are considered active managers. If you vet your tenants via tenant screening practices like background checks and credit checks, you may qualify as an active manager. Active managers can deduct up to $25,000 in losses.
Tenant Screening Tips
If you rent out real estate in Atlanta, you probably know that screening your potential tenants prior to renting to them can afford you a lot of peace of mind. There are many risks that come with renting to people you haven’t fully vetted, such as damage to your property, loss of rent, and the added hassle and expense of legal fees associated with evictions and lawsuits. Luckily, there are a number of things that you can do to protect your investment and yourself from harm.
Always Use a Rental Application
You can find various rental applications online, or you can create a specialized one for your property. A good rental application asks for basic verifiable information for each person who will be renting from you, such as name, current address and phone number, employer, current and former landlords, employment and banking information, and personal references. If you allow pets in your rental properties, you will also want detailed information on the number, type, and breed of pets owned by the applicants. Verify all of this information by calling the applicants’ employers, references, and landlords.
Run a Background Check and Credit Check
You can check the applicants’ credit reports through one of the three credit reporting agencies. If an applicant is in major debt or has a history of paying bills late, he or she will likely not be a responsible tenant. Running basic background checks will provide you with the applicants’ criminal records and inform you if an applicant has ever been evicted. You can also find out if an applicant has filed for bankruptcy or has been sued by bill collectors or previous landlords.
Consider Using a Property Management Company
A property management company can be of great assistance to a landlord who lives far away from his or her rental properties or who simply doesn’t have the time necessary to conduct proper tenant screenings. A residential property management company will help you find and screen tenants, manage lease agreements, and handle maintenance issues and evictions.