Investing in rental properties and creating a profitable portfolio is a serious decision that needs a lot of contemplation. Many critical decisions may have to be taken, including those regarding the management of your properties. If you are able to manage all the responsibilities yourself, fine, else you would need to look at hiring a professional management company to make your own life easier!
It is foolhardy to think that there can be a single solution to any problem. Also, there are different reasons to invest in rental properties for different people. Thus, why you are venturing into this field is the first thing you need to understand. Many people invest in rental properties for an excellent return on investments. Whatever is the reason behind your decision, your future will be highly dependent on the management company you choose to manage your properties. Thus, before taking the first step in this direction, get everything right from the very outset.
Let us have a look at many reasons that make people invest in rental properties. Some people may themselves become a manager of their rental properties and this way they create a job for themselves. Many people look forward to earning handsome passive income from their rental properties and retire early. It is imperative to understand that one cannot sail in two boats at the same time. Thus, one must take a decision and stick to it. If you want to manage your properties on your own, you need to take a break from your job as the former task requires a lot of time and effort. Conversely, you can reap the benefits of your investments by letting an experienced and knowledgeable person handle your property affairs for you. If you have no idea about handling these affairs, it is important that you understand the fact that pulling it off on your own may become one heck of a job.
Usually, management companies demand 10 percent of the gross rental income and truly, paying this amount is a bargain price when it comes to managing your rental property portfolio. At the same time, looking for a suitable property manager is not as easy as it seems. Just like looking for accountants, attorneys, general contractors and title companies, one has to look for a property manager who can offer best services to clients. There are various parameters on the basis of which a suitable property manager may be hired in New York City
# The property managers must have the ability to look for suitable tenants.
# They should also know how to use legal means to get rid of bad tenants.
# NYC property managers must have good networking and contacts with inspectors, contractors, service providers, etc., so that the same proves to be quite a handful when it comes to renovations, maintenance, utilities, etc., of the property.
# They must respond immediately and always ready to help when needed.
# They submit informative, helpful and timely monthly cash distributions and accounting statements on every property owned by their client.
# They must have the ability to handle mundane, tedious tasks of handling properties and skilled labor in the most effective manner.
What is the best time to hire a management company?
# If you have multiple rental properties that needs managing, you will need the assistance of a renowned management company;
# If you live far away from the rental properties in and around NYC, it may become difficult for you to manage them and in such a situation, hiring a property manager is the best idea. Dealing into various issues related to the properties can be easily managed by them.
# Property owners who find it challenging to look for perfect tenants and are not at all interested in hands on management must hire a property manager. This way, they will not have to invest their most precious asset, time, in the day to day management.
# Lack of time also makes people decide to go for property managers. With their job responsibilities pressing for attention, they do not have much time to pay attention to the rental properties and its requirements. A lot of time goes into renovations, looking for new properties, etc., and working people do not have so much time in hand, thus hiring a property manager is the best solution.
# Engaging the services of a good management company is a great idea if you can afford the fees. When looking for a suitable company, you can ask them for their quotes that usually range between 5 percent and 10 percent of the gross rent amount. In case, the market is not too promising, you can continue managing your affairs and hire a manager once the market turns around.
# If you are suddenly faced with a lot of managing tasks, you may need the additional help of someone who can assist you in the entire operation.
# If you do not want to hire people on your payroll, outsource the job to a reputed property management company and let them handle your complicated affairs.
Finding the best Management Company
# When looking for a management company, seek recommendations from local apartment associations and colleagues.
# You can search online for professional directories in the NYC area where one can find a number of management companies offering remarkable services in this field. Many companies can also be checked on the basis of their Better Business Bureau ratings.
# Get your queries answered by interviewing companies before engaging their services.
# Check the current work of the company before making a decision. Check reviews and testimonials on them as they give a clear indication about the reputation of the company.
# Check the license and certification of the company
# Finally, before signing on the dotted line, go through the contract or management agreement very, very carefully.