What Does a Property Management Company Do?

Investing in real estate is an exciting endeavor. You're taking your future into your own hands and you're ready to earn passive income off of your property. 

However, many first-time real estate investors don't realize how much work goes into owning and renting out a property. In fact, it can quickly become a full-time job which negates the premise of earning a passive income off of your investment.

That's why property management companies exist. But, what does a property management company do, exactly?

Keep reading to learn the services a property management company will provide you with. 

Set Appropriate Rent Price

Setting a rent price for your property might sound like an easy, straightforward task. But in order to maximize your profits without prolonged vacancies, you need to find the rent sweet-spot. This requires a lot of research and local market knowledge.

Setting a rent price goes beyond simply looking at what nearby properties are charging for rent. You need to consider what makes your property more (or less) valuable than the properties around you and set the price with that knowledge.

A property management company has a deep understanding of the local market and what potential tenants are looking for in a rental property. With that knowledge, they can set the perfect rent price to earn you the most money off of your property. 

Market Your Property

No matter how amazing your property is, no one will apply to rent if it isn't being marketed. People can't want what they don't know exists.

Property management companies will market your property on popular renting sites to attract tenants. They'll post attractive pictures and talk up your property so people will be rushing to apply to rent your unit.

Screen Tenants

Attracting tenants through marketing is only half the battle. It doesn't matter how many tenants you attract if they all have poor credit and renting histories. A property manager will screen tenant applications, run background checks, credit checks, and even meet them in person before deciding who the best tenant will be.

Screening tenants is so important because, with a quality tenant, you minimize the risk of vacancies and evictions. Quality tenants will also take better care of your home and will pay rent on time.

Accounting Services

A property management company will collect rent from your tenants and send you monthly reports with your proceeds. 

This is a huge benefit because collecting rent from tenants can be a real headache, and it's best to let people who have experience dealing with tenants take care of it. Then, you'll be getting a financial report each month laying out any expenses and showing your profits for each month. 

Deals with Repairs and Maintenance

Issues arise with every property and repairs and maintenance need to be done on short notice. Without a property management company, you'll be left with tenants calling you directly about issues with plumbing, HVAC, electricity, or broken appliances all the time. You'll have to either fix the issues yourself or call professionals to do the repairs.

With a property management company, you won't have to hear about any of those issues. Tenants will call them to make repairs. A property manager will also do routine maintenance to prevent expensive issues from happening down the line.

Home Inspections

Home inspections are necessary when a tenant moves out to ensure the property is in good shape. A property management company has years of experience inspecting properties so you know they won't miss a thing. 

They will put together an inspection report and hold any amount of the tenant's security deposit depending on the damage that's been done on the property. Then, they will make the appropriate repairs before the next tenant moves in.

What Does a Property Management Company Do? They Make Your Life Easier

Now that we've answered the question "what does a property management company do", it's clear that they are necessary for real estate investors. This is especially true for investors that want to be hands-off when it comes to the day-to-day tasks. 

Here at Professional Real Estate Management and Investment Services Inc, we offer all of these services and more, so you can rest assured that your investment properties are taken care of. Contact us today to learn more about how we can help you.

Curt's Crusaders Raised $3,000 for the 2019 Walk to End Alzheimer's

Professional Real Estate Management is thrilled to announce that our sponsored team, Curt's Crusaders, has raised $3,000 for the 2019 Walk to End Alzheimer's. We walked in memory of Curtis Eugene Gibson Sr, or "Uncle Curt".

We want to give an extra special 'thank you' to all of our clients that took the time to donate to this important cause. In 2019 alone, an estimated 5.8 million Americans are living with Alzheimer's disease, and it's up to the world to put resources towards research and effective treatments for this devastating disease.

Thank you again to everyone who donated for the Walk to End Alzheimer's and we look forward to exceeding this achievement in 2020!

How to Find the Best Clearwater Property Management Company

Once you invest in a real estate property, you'll quickly realize how important it is to work with a local property management company. Quality property managers can offer a ton of benefits to you and make your life as a real estate investor infinitely easier. 

However, not all property management companies are created equal. It's important to do your due diligence when searching for a company to work with, so you can move forward knowing your rental property is in good hands. But how do you know which is the best property management company?

Keep reading for some tips to help you find the best property management companies in Clearwater, FL.

Ask Around

Do you have any friends or family in the Clearwater area that have invested in real estate? 

It's a great idea to ask for recommendations from your peers or to simply listen to their experiences. They can give you a first-hand account of what it's like to work with specific companies in the area. 

While it's not always best to base your decision solely on other's opinions, it can give you a nice jumping-off point in your search for the best property management company.

Look for Experience

Experience is essential in any field of work, but even more so in property management and investment services. This is because your property manager needs to have a deep understanding of the local market and real estate trends. With that knowledge, they will know the value of your rental property and be able to price it accordingly to get you the best ROI.

An experienced property manager has also had to deal with just about everything that could go wrong with a property or with tenants. This gives them the knowledge to be able to handle crisis situations much more efficiently than a brand new company with no experience.

Check Online Reviews

Did you know that 84 percent of people trust online reviews as much or more than personal recommendations?

Online reviews can give investors a better idea of what a company's strengths and weaknesses are. If a company has an average of one or two stars, it might be best to avoid that business.

When looking at a company's reviews, it's a good idea to jot down some of the negative stuff you read so you can talk to the company in person about those concerns. Sometimes, people leave bad reviews even when the company was not at fault. So if you feel good about a company and notice a couple of bad reviews, you should consult with them in person to see if it's a legitimate concern.

Set Up an Interview

Once you've narrowed down your search, it's time to meet with the property management company in person. After all, you are tasking them with caring for your investment property, so you need to make sure you're on the same page.

During the interview, make sure they go over their fee structure, the services they offer, and what sets them apart from other local companies. Also, be sure to voice any concerns or worries you may have so you can move forward feeling confident.

If you're unsure of what to ask during your meeting, check out this blog for some important questions to ask a property management company.

Go with Your Gut

After gathering all of the information you possibly can, it's time to make your decision. 

In the end, as with most decisions in life, it's best to go with your gut. Oftentimes, you will know which company aligns with your values and needs when you meet them in person. 

You will be working with this company for years to come, so it's important you feel good about the professional relationship and you know they can be counted on to do their best and take care of your properties.

Ready to Find the Best Property Management Companies in Clearwater?

With these tips, you'll be able to find the top property management companies in Clearwater, FL that'll make real estate investing and renting a complete breeze.

Here at Professional Real Estate Management and Investment Services Inc, we believe we check off all of those qualifications. With nearly 20 years of experience in the Clearwater area, we know the local real estate market more than anyone. 

If you're interested in learning more about or property management or investment services, please contact us today and we'll be happy to answer any questions you may have.

5 Tips for Buying Your First Investment Property

Investing in your first property can feel extremely overwhelming, especially if you don't have a lot of experience in real estate. There are several factors to consider, and making a poor decision along the way can cost you big time down the line.

But with the proper knowledge and planning in advance, you can rest assured that your investment will be worthwhile. 

Ready to take the plunge and buy your first investment property? Read these five tips to help you succeed.

1. Get Your Finances in Order

Buying an investment property is a major financial decision. Not only will you need to put up a hefty downpayment, but you'll be paying monthly expenses such as mortgage payments and property taxes.

If your finances are in shambles, adding another mortgage payment and spending a large chunk of money on the downpayment will only make things worse for you. You might find it even more difficult to keep up with your monthly bills.

That's why you need to get your finances in order before investing in a property. If you have debt that you're already struggling to pay off, it might be best to hold off on adding to that debt. By paying off your credit card debt and other loans first, you'll feel a lot more confident when investing in a property.

Also, make sure you have the money for a downpayment. If you don't have it, you can consider going in on the investment with someone else so you can split the downpayment. Otherwise, you'll have to hold off on purchasing an investment property until you have sufficient funding.

2. Find a Low-Cost, High-Value Property

This is the most important piece of advice for new investors. The value of your investment is determined by (a) how much you purchase the home for and (b) how much that home appreciates in value over time. 

If you don't hit both of those marks, your return on investment (ROI) won't be as high as you'd hoped.

For example, you might find a cheap home that really catches your eye because of the low price. You purchase the home but find that the value is not increasing because it's in a poor location or is a real fixer-upper. So, although you found an inexpensive home, the investment isn't paying off at all.

By finding a relatively low-cost home in an otherwise good area, you can really capitalize on your investment. Look for properties that are surrounded by quality retail stores, highly-rated schools, nice restaurants, and more businesses that'll attract people to the neighborhood.

It's important to work with a local real estate investment company that really understands the local market. They will be able to find you the best deals on homes that'll appreciate in value over time.

3. Beware of High Interest Rates

Oftentimes, interest rates will be higher for investment properties than if you were purchasing a home for yourself to live in. That's why it's especially important to be aware of these increased interest rates when considering your mortgage options.

A high interest rate really cuts into the value of your investment, and will greatly decrease the profits you make month-to-month. Take some extra time to look for the best mortgage lenders that will offer you lower interest rates--it'll really pay off in the end.

4. Calculate Monthly Expenses 

Beyond buying the investment property, you'll also have to consider monthly expenses. These expenses are unavoidable and will cut into your profit every month. It's important to determine these expenses before purchasing a property to give you a better idea of how much you'll be making in profit.

For example, you'll need to pay for property taxes, mortgage payments, maintenance, property inspections, tenant screenings (applications, background checks), and more. By having an estimate of what this will cost each month or each year, you'll be able to set a rent price that'll pay for those expenses and still earn you a profit.

5. Work with a Property Management Company

After purchasing an investment property, you'll want to hire a property management company to handle the day-to-day tasks. These tasks include finding quality tenants, performing home inspections, fixing any issues in the home, collecting rent, and handling any issues with current tenants. 

By working with a property management company, you'll collect passive income each month without having to deal with the daily tasks of being a landlord. Property management companies have local connections with electricians, plumbers, and handymen so you won't have to worry about tracking any down during a crisis. 

Buying an Investment Property Doesn't Need to Be Hard

There are a lot of things to consider when buying your first investment property, and it may seem a bit overwhelming to someone who hasn't done it before. But if you work with people who understand property investing and the local real estate market, you'll feel a lot more at ease.

That's what we at Professional Real Estate Management strive for; we want to make investing in real estate easy and achievable for all entrepreneurs. Contact us today to learn more about how we can help you invest in Clearwater properties.