When it comes to the rental market today, business is great in most areas. People who want to live in an area without making a long-term commitment make great candidates to rent your home, either short or long-term.
However, when it comes to renting out a home, it’s not simply profit in the process. There are multiple costs associated with renting a home which is why having a property manager can be such a benefit. An experienced property manager can keep these costs low, allowing you to have the highest profit possible for your home.
What exactly are the costs? These are the major ones to expect. Adequate Insurance Coverage
If you’re renting out an apartment or house, then you probably need to add landlord insurance. This is a type of insurance that covers rental properties. It usually costs about 25% more than your standard homeowners insurance. Your agent or the property manager helping you through this process can advise you about adding this type of insurance.
Checking Out Potential Tenants
When you get to the stage of interviewing potential tenants, there are multiple costs associated with this process. First, there is the cost of the time that it takes to list and show the property. Depending on the area where you live, this may be a more challenging process, especially if you’re renting at a time of year when there aren’t many renters available.
Additionally, you’ll also want to check out any potential tenants to make sure that they would be safe to rent the space. You will likely want to order background checks, credit reports, eviction reports or similar. None of these are particularly expensive but you’ll have to obtain the permission of a prospective tenant and pay for them. Once again, a property manager can help to streamline this process which will often save you both time and money in the process.
Evaluating Maintenance and Upgrades
This is an area where it may be difficult to keep track of the property if you’re not in the immediate area. Tenants are often hard on properties which may then require more frequent maintenance or periodic upgrades. A property manager can schedule periodic inspections and help to provide preventative maintenance before disaster strikes. In the case of a water leak or other problem, it’s important to have emergency services ready. Having reliable help to call in an emergency can save you money in the long run.
These are all costs that can be highly variable but you should expect to pay for a variety of maintenance and upkeep costs. The costs may be higher if the house is older and hasn’t been upgraded recently.
Although these costs cannot be avoided, you can save money in the long run if you hire a property manager to oversee the property and take care of these and similar details. Property managers can handle everything from general maintenance to rent collection and even eviction if needed. The cost is very reasonable and can help you to make a good investment on a rental property.