Outsourcing core functions to a reputable property management company is an easy and affordable way for an investor to ensure that their property remains in great condition and maintains its value. In many cases, investors who attempt to do everything on their own find themselves in situations that they are not prepared for.
“There is a real financial risk for an investor who decides they can do everything on their own,” says Jason Duncan, CEO of RentalMiles. “Landlords do collect a security deposit but if a tenant causes damage that goes beyond that cost, and it cannot be proven to be their fault, the investor could end up in serious financial trouble.”
Duncan also raises another hazard that’s just as serious but not often considered by landlords: the risk of physical harm. “The landlord might end up getting into dangerous situations if they are in dispute with a volatile person,” Duncan says. “There are laws in place to protect you, but situationally speaking it could be risky if you end up with somebody that you were not able to do proper background checks on.”
All of these potentially risky scenarios can be avoided by hiring a professional property management company. From screening for high quality tenants and managing marketing and listings to handling any legal situations that arise, property management companies give investors the sort of peace of mind that is hard to find.
“Investment properties typically play an important part in an individual’s retirement, so there is a lot on the line,” says Duncan. “We hire experienced agents who know all of the ins and outs of renting properties and the potential risks. We handle all tenant placements on behalf of the property owner and manage all of the listing services throughout various marketing websites. We have that experience of screening people to make sure the investor has quality tenants in their property.”
When you flip houses, you are not usually intending to live in the house; rather the strategy is to sell the property as fast as you can so as to avoid paying taxes and other expenses on the property. While there will obviously be initial costs that you will need to budget for, house flipping can be done with few resources and little experience.
If you’re a newer house flipper, you have probably heard about the 70 percent rule. Here’s your guide to the investing rule that can prevent you from spending too much money on an investment.
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