Archive | For Property Owners

Property Management: The Basics

Every material thing that you have may very well be considered an investment. Whether they are expensive or inexpensive, the fact remains that you have spent money to get it and that makes it an investment. Therefore, management has to be implemented so as to make sure that such materials do not go down the drain.

This is precisely the reason why property management has surfaced. To start with, property management pertains to oversee, controlling, and operating real estate or your investment. More specifically, it is also about the processes and systems that make a property survive its every phase, which includes acquiring, controlling, maintaining, and utilizing it. It usually involves the management of the property of an individual by another experienced individual.

Here are some more interesting and useful information that you can get about property management.

  • Usually, the property is overseen by the property manager who acts in representation of the property owner with the intent of generating income from the property while making sure of its preservation. While doing so, they are being paid a fee or are able to receive a percentage of the rental from the property owner. Though the fees may vary, the current usual rate is around 7 to 10 percent.
  • Real estate brokers can also be property managers. This especially happens when the broker handles a group or set of real estate properties of the same kind. For example, he or she may manage resorts in an area and may offer agent services to prospective buyers or renters.
  • Property management saves the owner from a lot of headaches and related stress. It is the property manager or management company who will have to shoulder responsibilities like repairs and maintenance, tenant calls, rental agreements and disclosures, and other similar stuff. However, owners need to understand that property managers are not obliged to pay bills or mortgages in their stead.

Property management is very helpful. However, it is not imperative. The decision still lies in the hands of the owner. However, making a decision as to whether property management is necessary or not would be based on the number of properties a person has and how strong the cash flow is. If there is a lot of real estate to manage and income is good, then it would be practical. However, if the opposite is true, getting such a service may only be an additional expense.

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The Benefits of Having a Property Manager

Protection is a very general term. It encompasses almost anything that talks about safety and security. And yes, because it is very broad, it is also as important in the world of real estate as it is in any other business area.

When talking about protection in the real estate business world, it means knowing your legal rights and responsibilities. Only by doing such will you be able to truly protect your business.

Here are the benefits of having such kind of protection for your business.

  • In terms of insurance, you will be able to understand better and know more about what your deductibles are and what limits your coverage has. In addition, it will enlighten you about how your insurance provider treats customers and claims. If you already have this kind of information, then you can easily ask your insurance agent for a review of your coverage, both for business and personal.
  • When you are updated about insurance information, you will know by now that the policies on insurance change very fast in all states in America. This is also very important because some changes may greatly impact your real estate business and the entire business in general both positively and negatively. In fact, there have already been 70 legislative bills that have affected rental housing in 2012 alone.
  • You are able to avoid fines, fees and other charges when you are always updated about news and changes in the policies that govern your business.
  • You are saving your business thousands of dollars from filing lawsuits and/or facing them. It has always been expensive going to court. And today, with all these changes in policies, it has become even more expensive.
  • You are able to raise your company‚Äôs integrity and reliability. Your customers and clients may find you knowledgeable and worth every dime they pay. As a result, you will get more referrals to future customers.
  • You can achieve some peace of mind. Knowing that you are protected, you get to sleep more soundly at night and never have to worry about tomorrow.

Protection is always a positive thing in everything. Make it a part of your business.

For example, The Dunes in Naples, Florida is a gated community with six large buildings. Their Property management is done in house. They community is the residence for many of Naples wealthiest people, all of whom are delighted with how the property is managed (whether it be renting out the properties or just general maintenance). They are truly a great example.

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