What Does a Real Estate Management Company Do?

If you own an investment property, you know how much time and effort goes into taking care of the property, renting it out, and dealing with all of the accounting for the property. If you handle all of these duties on your own, it can start to feel like a full-time job.

But what if you don't have to manage your property by yourself? What if there was a way to make money off of your investment property without spending countless hours managing it?

That's where real estate management companies come in! But what does a real estate management company do, exactly?

Keep reading to find out!

Market Your Property

Marketing is an important part of managing an investment property because, without marketing, you wouldn't attract quality tenants. Trying to market your property is a full-time commitment on its own, which is why you should work with a property management team that knows how to best market investment properties.

Marketing for your property includes yard signs, using online resources like Zillow.com, advertising on social media, and much more. 

Create Airtight Lease Agreements

Creating a lease agreement is an in-depth process because it's a legal document that needs to protect you, your property, and the tenant. If you leave anything out of the agreement, you can risk losing a lot of money or even be held liable for omitting important information.

Real estate management companies know exactly what needs to be included in a lease agreement. They have consulted with attorneys to create a fool-proof, airtight agreement that will protect both you and your property. 

Screen Tenants

Attracting tenants is only the first step, you then need to screen them to make sure they will be quality tenants and pay their rent on-time. Screening tenants include giving applications, completing background and credit checks, and receiving income documentation to ensure they can afford rent each month.

You might end up screening dozens of tenants before finding one that meets your criteria, so it's best to delegate this task to a management company.

Collect Rent

If you own multiple properties, the last thing you want to do every month is worry about collecting rent. If your tenants haven't sent you their rent payment, you have to charge late fees and try to get them to pay it or else evict them. This can all be one big headache and isn't something you want to worry about on a monthly basis. 

Real estate managers will collect rent, deal with late payments, and give eviction notices if a tenant does not pay rent. They will also quickly fill any vacancies after an eviction occurs so you don't lose money.

Handle Tenant Issues

There are so many things that can go unexpectedly wrong on a property. There might be a pest problem, a power outage, or plumbing issues that tenants need to be fixed immediately. Unless you want to wake up to calls at 2 in the morning or have to drop everything you're doing to take care of tenant complaints, you should work with a real estate manager.

Not only will they handle tenant issues in regards to properties, but they will also handle tenants who are damaging your property or are not following the lease agreement. In addition, they can handle any legal disputes with tenants in regard to the property and lease agreement.

Take Care of Repairs and Maintenance

Do you want to spend weekends at your investment properties doing maintenance tasks or making repairs to the home? If not, then you should work with a property manager.

They will take care of any repairs that need to be completed as soon as possible. They also have local contacts including electricians, plumbers, and handymen that they will send to your property for any additional maintenance tasks that need to be completed.

Property Inspections

Once a lease agreement is up, you will need to complete a property inspection to record any damages that have occurred during the previous tenant's occupancy. This is very time-consuming and requires a keen eye for detail as well as experience in inspecting properties, otherwise, something can be missed and cost you money.

A property management company will complete property inspections and provide you with a detailed report so you know the exact state of your property following an occupancy.

Accounting Services

Collecting rent, paying mortgages, property taxes, HOA fees, and repair costs can lead to a complicated financial situation. You need to be able to track the money you are spending compared to the money you are receiving to ensure you are earning enough money.

Real estate management companies will provide accounting services to track monthly expenses and income. They will provide you with a detailed financial report that's easy to read and allows you to have a deeper understanding of your financial situation in regard to your investment property.

Start Working with a Real Estate Management Company

Working with a real estate management company can save you a ton of time and money and make owning an investment property a breeze. 

Here at Professional Real Estate Management, we have nearly two decades of experience in property management and investment services. We know what it takes to manage a property and we will take all of the pressure and stress off of your back. Contact us today to learn more about our real estate management services!

How to Write a Rental Agreement: What You Need to Include

If you're ready to start renting out your property to tenants, you need to create an airtight lease agreement that will protect you and your property. While agreeing to payment terms is a big part of a lease agreement, there are several other things that need to be stipulated and agreed upon in order to protect your investment property.

Keep reading to learn more about how to write a rental agreement and what you need to include in it.

Payment Information

The first section of the rental agreement should detail the payment terms you and your prospective tenant(s) are to agree upon. Here's the payment information you should include:

  • Exact amount of rent
  • Due date for rent
  • Late fees for missing the rent due date, and when they will go into effect
  • Security deposit and refunds
  • Fees for returned checks
  • Other fees the tenant will be responsible for, such as utilities

You should also stipulate which payment methods you accept, such as checks, CashApp, PayPal, or money orders.

Property Specifics

The next section will go into specific details about the property rules. This is an important section because it's how you can protect your property from being carelessly damaged by tenants. Here's what you should include in this section of the rental agreement:

  • The definition of property premises
  • The definition of damage vs. normal wear and tear 
  • The owner's right to enter and inspect the property, and how much notice they need to give tenants
  • Specific details on what can and can't be altered (hanging pictures, painting walls, etc.)
  • A reminder that the tenant must inform landlord of any damage
  • A reminder to not change the locks

This section should be detailed and leave no grey area because tenants will take advantage of any vague property specifics and you'll be left paying a lot more money on repairs.

Lease Termination

There needs to be a section dedicated to lease termination that outlines if and when a tenant can terminate the lease. This section should also include any fees or penalties that the tenant will have to pay upon early lease termination. This protects landlords from having tenants end leases early without any warning which would cost landlords a ton of money.

Additional Information

You'll need to cover all your bases in a tenant agreement because you never know what a tenant might try to do. The more detailed you can be about rules and guidelines for your property, the better. Here's additional information you should include in your lease agreement:

  • Are overnight guests allowed? How long can guests stay?
  • What parking is included?
  • Are pets allowed? If so, what kind and how many? Will there be pet fees or deposits?
  • How many keys are included?
  • Specific neighborhood or community rules
  • Noise ordinances
  • What can be stored on-site?
  • Can tenants sublet rooms?

You should also stipulate what will happen if any of the above rules are broken by the tenant.

Make Sure Your Lease Agreement Complies with Laws

To protect yourself as the landlord, you need to make sure your lease agreement follows federal, state, and local laws. For example, you need to follow anti-discrimination laws, health and safety codes, occupancy laws, and disclosure requirements.

You can work with an attorney or a property management company to make sure your lease agreement is airtight and does not leave you liable.

How to Write a Rental Agreement: Get Help From the Pros

Learning how to write a rental agreement is only the first step. Actually creating one and making sure it's completely airtight and protects you and your property is difficult to do unless you have experience.

That's why you should work with a property management company that knows exactly what to include in a lease agreement. 

Here at Professional Real Estate Management, we will not only create a lease that meets your standards and complies with the law, but we'll enforce the lease to ensure your property is always protected from damage. Contact us today to learn more about our lease agreement and property management services.

Real Estate 101: The Best Ways to Get Started in Real Estate Investing

Real estate investing is one of the best ways to grow your wealth and start taking in a passive income. But for someone who's new to the real estate world, it can feel pretty overwhelming. How do you start investing in real estate if you have no prior experience?

Well, you have a few options depending on your financial standing and your investment goals.

Ready to learn some real estate 101? Keep reading for the best ways to get started in real estate investing.

Rent Out a Room

When you think of investing in real estate, you might imagine buying a property to rent out or to flip for a profit. But for people who are beginners in the world of real estate, or who don't have the money to invest in an entire rental property, renting out a single room is a great investment opportunity.

If you're planning on buying a house of your own, why not make an investment and buy a house that has a spare room to rent out? Another route would be to buy a duplex and live in one side while renting out the other. This is a great option for people with limited resources who are interested in making at least some money off of real estate. 

If you take out a mortgage for the home, you can potentially make back your mortgage payments by renting out part of the property. 

Invest in Rental Properties

If you are in good financial standing and you're ready to dive head-first into real estate investing, there's no better choice than buying a rental property. This option will earn you the most passive income and have a high appreciation rate so you earn more over time.

The most difficult part of investing in a property is finding one that will earn you the most money now and in the long-run. If you're new to investing, it's best to work with a real estate investment company that can find you the hottest properties and best deals.

Start Flipping Homes

Looking for a high-risk, high-reward investment opportunity? Do you want to earn a profit right now instead of in ten years? Flipping a house might be your best bet.

This strategy involves buying a home that you think is undervalued, fixing it up to drastically increase the value, and then re-selling it at a much higher price than what you originally paid.

This is a high-risk strategy because you're banking on the fact that the house will sell for a lot more than what you spent (a) buying the house and (b) fixing the house up. However, if it works out, you'll have earned a big profit really fast.

This is a good way to get into investing if you're someone that has money to spend already. It's not a great strategy for people who need to take out a mortgage for a home, however.

Buy Real Estate Investment Trusts (REITs) 

If you're an investor that wants to add real estate to your portfolio but doesn't want to make a traditional purchase, you can buy through a real estate investment trust (REIT). Essentially, this means you are buying stocks of real estate so you will only own a fraction of properties.

This is ideal for investors who want to get started in real estate without putting down a lot of money. You can earn profits off of your "stock" and get a better feel for how real estate investing works before jumping into an investment property on your own.

Real Estate 101: Start Investing Today

Now that you've got the lowdown on real estate 101, it's time to take the next step and start investing. The earlier you start investing in real estate, the more you'll make in the long run. Luckily, we're here to help you get started.

Here at Professional Real Estate Management, we help entrepreneurs find the perfect properties to invest in. Then we'll find quality tenants and manage the property so you don't have to. Contact us today to learn more about our investment and property management services!