An investment in knowledge pays the best interest. Benjamin Franklin
It is estimated that you will spend at the very least 10 -15 hours managing your single-family rental on your own every month. Is that a time commitment you actually have at your disposal? Will you be able to drop everything and attend to a maintenance crisis immediately? Will you be able to handle all of the tax requirements for your property come year-end? Do you know how to follow the legal requirements when interviewing and screening potential Colorado Springs tenants?
There is way more to managing a property than putting out an advert, signing a lease with the first responder and then sitting back and waiting for the rent income to roll in.
How Will It Dent My Wallet?
Why expend the energy on this time consuming endeavor when for as little as $100 -$200 dollars per month a property manager can take on the stress and deal with the gray hairs. The fee is around 4% and 10% of your monthly gross rental income. The more properties you have with a manager the cheaper the price. Put your investment in the capable hands of professionals. Let them handle the tedious screening of tenants and be on call for any emergency 24/7. They will know exactly how to prevent vacancies and the subsequent annoying turnover costs. These factors have a tendency to sink your profit margins immediately. Your main priority is to keep your property filled with great tenants. Leave the headaches and hassles to your property management team.
It’s actually a really affordable option to entrust your single-family rental home to an on the ball property manager because ultimately they can increase the profitability of your single-family rental in Colorado. They will keep the books, prepare year-end taxes and stand in the line of fire for you –all for a very small percentage.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. Paul Samuelson.
Nightmares on Your Street
Another huge savings for you, the property owner, is that you will never have to deal with the frightening tenant scenarios that could arise. Just Google “landlord horror stories” to see how you could easily end up getting embroiled in some seriously unhinged tenant antics. Like that time a tenant decided to have a bonfire…in the owner’s house, or the tenant that would get mad with the landlord and turn on her water, block the drain, and flood the apartments below her, or the tenants who turned their basement into a snake, turtle and amphibian pet store. You don’t need that kind of crazy in your life. Outsource potential potholes to the experts who can do site visits and if need be, easily evict.
You’re in Good Company
At the moment there are over 15 million single-family rental homes that are currently occupied by tenants. Only 250,000 of these are owned by big institutions who manages them. The rest of the owners turn to smaller property managers to preserve their investment. Yes, there are individual owners who manage their own investments but the trend is towards letting these properties be truly passive income revenue streams for the owners. There remains a strong demand for single-family homes for rent.
According to the data firm RealtyTrac, only 4.3% of homes were vacant in the first quarter of 2016, occupancy rates are usually in the mid-90% range which is great news for you, the owner. Property managers are reported a yearly rent growth of about 4 -5% per year. With a single family home, you can experience little turnover because it caters to larger households. They have a lot more furniture and so tend to avoid the ordeal of moving. Property managers work hard to retain these long-term tenants as it keeps your income rolling in.
Know what you own, and know why you own it. Peter Lynch
Any of these situations apply to you?
- If you live far away from your investment property –hire a property manager
- If you own more than one of these investments - hire a property manager
- If this is your first time investing in property and you are inexperienced - hire a property manager
- If you don’t have time to manage your property - hire a property manager
Let the Colorado Springs residential property manager be your buffer, your middle man, the professional third party.
So if you are ready to give up control and have a professional deal with tenants so you can relax and enjoy your spare time completely stress free.