Renting Out Properties

Most property investors will buy properties in order to rent them out and receive a regular income but of course, they will hope that the property increases in value so that at a later date, they can resell it and also make more profit that way. However, unless a property is properly managed it may deteriorate or tenants may cause damages resulting in the property losing value rather than gaining in value. For this reason many property investors will hire professional property managers like to take care of their investment. These professional property managers will set the rates for rent, collect the rents and also ensure that the property is maintained to a good standard, one that will ensure that its value will continue to increase over the years.

In order for the property manager to set a reasonable rate for rent, they have to know what similar types of property are charging around that same area as charging too little will result in the owner not making as much money as they could whilst charging too much, may stop people from renting meaning the owner receives nothing. Having set the amount for rent, the property manager will then find suitable tenants, by advertising if necessary and once they have found those tenants, collect the rent from them regularly. The rent will then be placed in the owner’s account, after the property manager has taken out their fee of course, so the owner receives a regular income on their investment.

When a change in tenant occurs, the property manager will inspect the property to ascertain if there are any damages and if there are, they will charge the outgoing tenant accordingly for the damages to be repaired. The property manager will also inspect the cleanliness of the property and also charge the outgoing tenant for any professional cleaning that may be needed. If a property experiences a maintenance problem, it will be up to the property manager to see that the problem is resolved and subtract any charges by the repairmen, from the rent collected, before depositing the remainder in the owner’s account.

This means that the property manager is not only ensuring that the property owner receives a regular income but also ensures that the building does not deteriorate in any way, causing it to drop in value. A professional property manager is therefore vitally important to any property owner, as it is them that ensure the owner made a good investment. Although properties may vary in types, some being commercial properties and others being residential, the principles which the property manager follows, remain the same but the manager must know and understand the differences. When a property like this is old, often the property manager is kept on by the new owner and this is especially the case if the property was sold with tenants still in the building. Even if the new owner wanted tenants out, it may be difficult due to tenant agreements the property managers and tenants may have signed.