When considering whether or not you want to become a landlord, there are numerous advantages and disadvantages to consider. Some advantages to owning real estate are the tax advantages, additional monthly income in your pocket, and the potential of your assets to appreciate in value over time.
All these areas promise great returns on investment, so long as they are not counteracted by the disadvantages that can come from owning real estate. Let’s take a look at each of the problems individually and consider how a property management company can help you and your real estate avoid harm.
1. Lousy Tenants
We have all heard the horror stories about tenants who don’t pay rent, damage your facility, invite their equally crummy friends to live with them, or end up getting arrested. To avoid this, landlords are responsible to screen their potential tenants, handle all the paperwork, and be consistent when collecting rent. Suddenly, owning real estate no longer sounds that attractive, if it is time consuming and complicated.
Luckily, there is a way to avoid this situation. Here at North Pacific Property Management, we screen tenants, collect rent, and handle paperwork for you. Our qualified team of experts work to find safe, trustworthy tenants so that your assets are protected. We also handle the move-in and move-out paperwork, as well as enforce a strict system of monthly rent payment.
2. Vacancy
Equal to the threat of poor tenants is the problem of having no tenants. Vacancy of your real estate automatically means that the costs associated with that asset fall back to you, and payments are now coming out of your pocket. Should this happen to you, it is recommended you already have an emergency fund to handle the situation until you find tenants.
Vacancy can be a difficult situation to escape. Property management companies, while maintaining their screening standards, can will help you avoid vacancy by marketing your real estate. North Pacific Property Management’s bold marketing standards will serve to expose your property to a large market of potential renters.
3. Liability
Just as your tenant is responsible to pay rent and and respect your facility, you as the owner are responsible to ensure your real estate complies to state and federal regulations. Failure to conform to these regulations can put your wealth in jeopardy should your tenants suffer from any ailment caused by your real estate. Frequently inspecting the property and structure is a part of regular maintenance and will make you aware of any potential hazards before they become a problem.
Inspecting real estate is extremely important, though often long and complicated. A property management company will often offer regular and thorough inspections of the selected real estate to save you time and effort.
4. Unexpected Expenses
No matter how hard we might try, we can’t prepare for everything. Inspections can reveal problems in the foundations, plumbing, roofing, wiring, flooring, etc. As the owner, it is natural that all the phone calls and repair arrangements fall to you, soaking up both your time and your funds.
At North Pacific Property Management, we are committed to handling emergencies and dealing with maintenance issues so that you don’t have to. We can arrange in-house maintenance for smaller issues, and contact outside contractors that offer quality service at a good price for bigger problems. Should an emergency arise, the tenants call us first to save you the headache. As the owner, you still have the right to decide and schedule all repairs. Our goal is simply to eliminate the number of hoops you have to jump through to resolve any issues with your property.
Additionally, we have contacts with suppliers and repairmen that can provide their services or supplies at much lower costs than you would find elsewhere on your own. This helps save you money on your property repairs.
5. Finances
Keeping up on your mortgage payments and managing your accounts is a vital part of owning real estate. Failing to maintain your books can make it difficult to fill out tax forms, and repeated failure to pay the monthly mortgage rate could result in the loss of your assets all together. Property management companies can help you to complete monthly mortgage payments, as well as help you keep your bookkeeping up to date and on track, offering clear and concise reports in each month’s statement that you receive.
If you are considering going into real estate, weighing the advantages and disadvantages can make it seem daunting. However, with a North Pacific Property Management on your side, we can help you eliminate the negative side effects that could accompany poor tenants, vacancy, maintenance and accounting to make investing in real estate the best decision you’ve ever made!
