If you decide to invest in commercial property, you may be able to do quite well. The economy is down and struggling right now, but there are brighter days coming. There are also a lot of people who have been laid off from their jobs and have decided to start their own businesses. These people need somewhere to set up these businesses and bring in customers, so they rent a space in a commercial building. If you own that building, you could be the one collecting rent. Then, when the economy gets better, you could either raise the rent on your tenants to bring in more income or you could simply sell the building for a good profit and make a lot of money.

In order to do that, though, you’ll want to buy several commercial properties if you can afford it. Then, you’ll want to get back to your life so that you don’t have to spend all of your time managing them. Getting a property management company to handle that for you is the best way to make money off of your investment without putting too much of your valuable time into it. You can be kept in the loop, but you won’t be the one running out to make repairs. Of course, property management is not free. It offers a lot of value, though, to people who are interested in making money on the side while they work other jobs.

Find a good property management company, and look for one that deals specifically with commercial property. There are nuances to handling that type of property, and you’ll want to find people who are used to that, as opposed to people who just lump it all in together. By doing that, and locating a company that offers fair pricing, you’ll be able to have peace of mind and know that your property is well managed.

As the manager of rental property, you are only as good as the value of your property. If you own a series of lavish homes and condos in trendy residential areas, then you are sitting on a gold mine. If you’re just getting into the biz, however, chances are you’ll be starting with a ‘fixer-upper’.

But beware: homes that need more work than the house is worth can lead you into bankruptcy. The key to good rental property management is taking care of property to ensure it maintains value for perspective tenants. This can be achieved in many ways. Let’s look at tips for rental property management, and how to avoid a money pit.

1. RAISE THE RENT

The cost of living goes up, so why shouldn’t it go up for your tenants? No one likes a landlord who raises the rent, but being a good landlord means thinking of your own interest as well as the tenants. The reason to raise rent is simple and two-fold.

Firstly, the cost of maintaining the property rises, and so do the taxes. If you have to pay more, then so should the tenants. It’s only fair.

Secondly, raising the rent will bring in a bigger cash flow, which would be more attractive to perspective buyers down the road. Keeping rent low while the cost of everything else rises might make your tenants happy, but it won’t make investors happy.

2. CHECK THE PLUMBING

The health of any home lies within the walls. Making sure the pipes in the home are good will save you tons of money.

Pipes bursting inside of walls, or water leaking, can cause major damage that will require ripping apart walls and doing extensive repairs. Having a rental property is about getting tenants in, and keeping them there. Sending them away to reconstruct the plumbing would be contrary to your business model.

Upon taking over the management of a rental property, or upon purchasing a home, get a licensed professional to take a look the pipes and make sure they are up to code. If not, cut them a check to have them replaced. It will hurt now, but it will save you in the long run.

3. WATCH THE FOUNDATION

It’s hard to advertise ‘Great House, Faulty Foundation’ in classifieds. This just in: your rental property is worth nothing if you have problems with the foundation. This is something that should be checked out when buying the house, and you have to stay on top of it.

If something goes wrong, it might involve tearing the whole house up and starting from scratch. The easiest way to spot possible foundation problems is by looking around for big trees. The bigger a tree is, and the closer it sits to your house, the bigger potential it will invade the foundation.

Another way to tell if there are foundational issues is by spending time in the basement. Big cracks in the floor or corners might indicate that the house is in need of some serious work. Let’s just hope it’s not too late.

4. GET SOME HELP

You have to be a realist when it comes to your rental property. While you are looking to save costs any way you can, you have concede costs at some point.

Hiring out to take care of some of the repairs is a concession you will have to learn how to make. You might not think it is cost effective to have someone come in to do the electrical work, but if you aren’t confident enough to do it yourself, then you will be making a smart investment by letting a professional handle it.

The fallout from a botched job you weren’t equipped to handle in the first place far outweighs the cost of farming it out. Electrical fires are a danger that should be avoided at all costs, even if that cost is yours.

5. KEEP THE TENANTS IN LINE

In a perfect world your tenants would take care of the house the same way you would. In reality, your tenants are always unpredictable. One minute they could be fixing the door handle themselves, painting at their own expense, and creating built-in bookshelves. The next minute they are putting a whole through the wall, chasing a spouse with a golf club, and dumping trash out of windows. You can never be too sure, or too careful, with your tenants. That’s why it makes sense to have your tenants sign a detailed lease.

A good lease will have financial penalties in place for violating rules of the house. This will keep your tenant from making a mess of the house, and you from footing the bill.

6. CLEAN THE GUTTERS

See what happens when you put off cleaning your gutters? Whether you do it, or a service does it, there are few things more important to the cost effectiveness of your home than cleaning out the gutters.

When it rains, the gutters are essential in moving rain away from the house. This keeps the windows and siding in tip-top shape, and it keeps the basement from flooding. This all adds up to great savings.

CONCLUSION

Managing a rental property means having to do some of the grunt work to reap the biggest rewards. The next time you are called upon to clean out gutters, remember how much money it will save you in the long run.

Managing your rental property isn’t easy to do. It takes time, commitment, and a general knowledge on a variety of subjects. Keep your property from turning into a money pit by protecting yourself against big repairs and unruly tenants. Do these things, and your properties will be on auto-pilot, and you’ll get to reap the rewards. And remember, if you aren’t up to the task, there are many property management companies out there who will take care of the grunt work for you.

photo credit: Fr Antunes

When it comes to property management, there’s more to consider than just being a property owner. If you’re new to managing property, or you’re starting up a company to handle that kind of work for others, it’s a good idea to know all of the legal and financial implications. Fortunately, there are plenty of people who can help you. One of the best ways to see assistance when it comes to property management is to get help with your taxes. Since 2010 isn’t over yet, you can work toward any little last minute options for this tax year. That could save you big money, overall.

There are over 11 million real estate investors and property owners within the United States. A lot of them are “accidental landlords” because they bought property and then couldn’t sell it. They rented it out in an effort to recoup some of that money, but they haven’t really got any idea of the right way to operate that kind of business. Luckily for them, there are guides they can get hold of that show them what kinds of tax breaks they can take. With just a few short weeks left until the year is over, getting that information sooner rather than later would be a good idea.

Whether you’re an accidental property owner or an intentional one, it’s important that you get all the tax breaks you deserve. That’s especially true in a tight economy where every dollar can make a difference, but it’s also true when times are good. Why wouldn’t a person want all of the deductions that are coming to him or her, along with the potential of a refund? If you’ve never handled real estate transactions, though, it can be easy to miss out on what you should be getting back and writing off. Have a professional take a look, if you’re concerned about missing something.

photo credit: lumaxart

The term “property management” doesn’t just mean acting as a “landlord” or apartment manager. These are included in property management, but so are such things as homeowner’s association management and commercial property management.
Property management companies help find property managers for apartment or condominium complexes, as well as association managers for homeowner’s associations or commercial property. These people are responsible for handling the daily management duties, such as taking maintenance requests, collecting rent, dues, or other fees, performing property checks, and even organizing association meetings.

Some property managers may live on-site or they may live elsewhere but keep regular office hours. Depending on the company that actually owns the property, if a property manager lives on-site, he or she may do so rent-free or at least at a reduced rate.

Property management companies can also help existing property managers perform their duties more efficiently. They can help with advertising for property availability or help them be able to reach occupants or association members easier.

Some property management companies provide software or downloads for property managers to use. If this is the case, they can help the managers learn how to navigate through the software as well as set it up for their specific properties. This can help property managers keep better track of maintenance requests, financial transactions, and even such things as emergency contact information if property owners are “off-site”, and make the information easier to access.

Property managers can have a lot of responsibilities, and asking for help is not a sign of weakness, but rather a sign of good business practices. Property management companies do not “take over” the property manager’s duties, but rather help them perform them in a more efficient manner. Hiring a reliable property management company can help just about any property owner run his or her business much more economically and efficiently.

The secret to acquiring wealth is real estate. The economy may rise and fall, but real estate will remain one of the most reliable investments a person makes. The reason for this is simple: everybody needs someplace to live. With a demand like that, property is the only investment that will always have buyers. Smart owners understand that in order to be an effective property owner, hiring the right managers and helpers is essential.

So how do you go from chump to Trump? While it is certainly a challenge, it is not impossible. Rather than becoming an apprentice, learn how to hire your own! Following these steps will put you on your way to establishing and managing your own empire.

Donald Trump hoping to catch the ball in his hair-glove.

1. Start Small

One of these things is not like the other.

The average person spends almost half of his or her total lifetime income on housing costs. While this staggering setback affects everyone, it is not insurmountable. The easiest way to begin your dynasty is by owning your own land. When you acquire several pieces, then you can start hiring your own personal lackeys, like the lords of Shakespeare’s time!

Renting is never an option for those hoping to own multiple properties in a lifetime. Many people resign themselves to renting during the first five to ten years of their adult lives, instead of paying that same monthly bill on a less luxurious house or condo.

Not your first property.

While your first living arrangements may never make it onto an episode of Cribs, you’ll recoup all of your losses and often turn a profit when it is time to sell. The only way to own a big house is to sell a smaller house, and the only way to own a smaller house is by always choosing to buy instead of rent. After that, it becomes a game of flipping, and managing managers. Picking an astute property manager is important for owners, too.

2. Expand Slowly

Also not your first house.

Once you’ve landed on your feet, and have found yourself in a house you are comfortable with, it is time to hire that property manager for additional properties. The journey of a thousand miles begins with a single step, which is why this expansion process should go slowly, and should only be attempted by those serious about their investments.

Purchasing and then renting an apartment is a great idea, as the monthly rent paid by someone will be applied towards your eventual ownership of the property. Start with whatever unit you can afford (ideally a property with costs that wouldn’t cripple you if it took a few months to find a tenant). The great thing about having reliable help with management is that it frees you up to invest even more in other property.

3. Reinvest profits

Exponents are sexy.

The number one rule in business, Vegas, and life, is to always reinvest your profits. While it can be tempting to start collecting your hard-earned dividends, reinvesting them will prove to be much more beneficial in the long run.

While it may be tempting to take profits and go on vacation, reinvesting it in more properties, or making property upgrades, is vital in amassing and maintaining a position of wealth. A small investment in the best management will save you tenant turnover, too. From here, it becomes an exponential formula. The more property you own, the more income you generate. The more income you generate, the more property you can buy. Keeping this machine fed will ensure that you are financially stable for years to come.

4. Pre-Sale is your friend

Actual product larger than advertised.

Finding good properties at value prices can be something of a challenge, but there is one time when a condo, apartment, or home is always at its most affordable; before it is built.

‘Model units now open’ is a sign that should read, ‘get in here and make easy money’. Pre-sale homes and condos are always 30-50% less expensive than the same homes or condos a year later, based simply on the fact land owners often need those sales in order to finish the overall project. By getting in on the ground floor, and purchasing units in a building that is not yet open, you can guarantee return on your investment, and allow yourself far more wiggle room in your portfolio.

5. Begin to Take Bigger Risks

What’s really risky is that he’s about to pirouette.

Years passed, and your flow of income is abundant: capable property managers are running things with minimal supervision. It is at this phase that people have the opportunity for rewards, if they are willing to take risks. The number one phrase in real estate is ‘location, location, location’. However, as agents will tell you, prime locations do not always stay prime for very long. Subsequently, areas that are less than ideal (and in some instances downright dangerous) could be the hot new ‘it’ place of tomorrow.

Being able to spot these trends could be the difference between millions of dollars made and lost in a short period of time. Chicago’s Cabrini-Green housing projects were once the worst in the nation. Now they are the site of upscale lofts and million dollar condos. Those who were ahead of the trend were able to buy tons of property for next to nothing. Now, the sale of that property could easily finance their children’s college, marriages, and retirement.

6. Stay Educated

There’s no shame in getting your real estate license before your learner’s permit.

It has all sounded relatively easy thus far; buy some land, make some money, buy more land, repeat. However the truth of the matter is the successful real estate tycoon treats this side investment as a full-time job.

For those hoping to succeed at owning multiple properties, education and having a helpful property management company are both a must. Reading home listings, going to open houses, watching market trends, and paying attention to lending rates, are all part of the necessary activities that successful real estate moguls participate in daily. While this all seems overwhelming, the reality is that it is common sense. Buying low, selling high, and paying attention, are the keys to success, but they need to be closely monitored in order to guarantee profit.

Conclusion:

While the road to wealth seems particularly elusive, it is not overwhelmingly difficult to find. Although not everyone wants to own massive lots of property, keeping these tips in your repertoire will keep you fiscally wise and may benefit you greatly, no matter what your endeavor. Even those who own only one or two apartments can benefit from the added security, without any additional grief, when they enlist the help of property managers. If you want to feel secure, whether or not Social Security exists when you retire, take these ideas to heart!

photo credit: Skaneateles Suites

Property management companies save property owners time and money by handling the sometimes unpleasant and time-consuming aspects of managing rental property.

Certain parts of managing rental property are simply not enjoyable, and these aspects may make hiring a property management company extremely beneficial to you. For instance, a property management company evicts tenants if necessary. This is a stressful, yet sometimes required, part of a landlord’s job. Evicting clients can be emotionally draining as well as extremely time consuming. A good management company handles evictions and lets you deal with other, more pleasant matters.

It’s wise to screen potential tenants to determine if they are likely to pay rent in a timely manner while properly caring for your property. While only time will tell if a tenant will do these things, performing background and credit checks can quickly weed out potentially disagreeable tenants. Performing these checks takes time. A property management company can perform them for you, allowing you to invest time in other endeavors.

You, as the property owner, are responsible for maintaining your rental property and ensuring that everything is in working order so your tenants can live comfortably. For example, if the air conditioner goes out in the middle of the week, you are responsible for fixing it as soon as possible. This could potentially mean leaving your job in the middle of the day or spending hours on the phone trying to find a repair company. A property management team relieves you of that responsibility. They deal with repair work, allowing you to attend to more important matters.

Property management companies save you hours of time, letting you focus on other areas of your life. You still retain control of your property, they just manage the most time consuming parts of owning and managing it.

In the real world, landlords are a relatively unassuming group of people. They appear when you sign your lease, then when the sink is stopped, or the heater breaks, but for the majority of the time, landlords are nowhere to be found. Television and film, however, often paint a different picture of the landlord. The following property managers are some of the most entertaining and unique of all time.

1. Mr. Shickadanc

ACTOR: Mark Margolis
MOVIE: Ace Ventura: Pet Detective

Aside from the fact that he is sporting one of the least euphonious names of all time (say it out loud and prove me wrong), Mr. Shickadance is our favorite because he represents the quintessential landlord stereotype.

A hard-nosed, take-no-prisoners stickler for the rules, Mr. Shickadance is ultimately a pushover, despite the fact he may actually be related to Satan. We like him for his ability to consistently remind us of the rules, without ever being able to enforce them.

2. Eugene Mirman

ACTOR: Eugene Mirman
SHOW: Flight of the Conchords

Unbeknownst to the world, the Flight of the Conchords universe is actually comprised of stand-up comics and veteran improvisers. Eugene, the landlord, is no exception, and his dry, often poorly-timed advice is enough to make anyone want to move in.

Not only does Eugene seem to be present for most of Jemaine and Bret’s intimate conversations, but he always willing throws in his two cents out of love and concern for his tenants. Although his advice is rarely worth taking, it is the gesture that counts.

3. Mr. Heckles

ACTOR: Larry Hankin
SHOW: Friends

Perhaps better known for his roles in The Terminator, and Laverne & Shirley (another show with a well-known landlord), Mr. Heckles made his debut on Friends in a bathrobe.

A cantankerous curmudgeon with the pointiest face most people have ever seen, Mr. Heckles enjoyed harassing the girls about their New York City apartment. Whether in bathrobe or stained sweats, he did a great job of getting his apathy and disillusionment across to viewers. Though viewers seemed indifferent to his character while he was on the show, when his character died, there was an outpouring of interest in him.

4. C.C. Baxter

ACTOR: Jack Lemmon
MOVIE: The Apartment

C.C. Baxter is more of an entrepreneur than a landlord, except for the fact that he doesn’t profit nearly as much as he could from his independent business.

Basically agreeing to sublet his apartment on a night-to-night basis to a slew of his unfaithful bosses, Baxter runs a cheap motel. We like him for his forward thinking and small business wizardry, but we sympathize for him, as he never seems to have a night to himself. Nevertheless, C.C. always puts his tenants first, which makes him the best sub-letter of all time.

5. Fred and Ethel Mertz

ACTORS: William Frawley and Vivian Vance
SHOW: I Love Lucy

Many landlords are husband and wife teams, as managing a property can be a daunting task. No pair does it better (or at least more enjoyably) than Fred and Ethel Mertz.

The perfect catalyst for hilarity, Fred and Ethel always seemed to fuel Lucy and Ricky’s fire. While they were also neighbors and friends, they were landlords first, which makes them two of the most endearing property managers in television history. Even when they fight, the outcome is always hilarity.

6. Ralph Furley

ACTOR: Don Knotts
SHOW: Three’s Company

Although he wasn’t the first landlord to Jack Tripper and the girls, Ralph Furley was certainly one of the most memorable of all time, a fact that was only enhanced by the fact that he was played by the legendary Don Knotts.

There are few things more perfect than renting from Barney Fife, to which the crowd of Three’s Company can easily attest. While the only thing louder than his voice was his shirts, Ralph was a cute and flamboyant landlord who made living in his building an over-the-top fun time.

7. Pearl McKay

ACTOR: Pearl McKay
FILM: The Landlord

Although she rules her building with an iron fist, there is no landlord more beloved in the history of film than Pearl McKay. She is belligerent, witty, and a borderline alcoholic. Best of all, she’s only two years old.

The viral video that has dominated the Internet for the last two years, The Landlord features Will Ferrell explaining to Pearl (played by the two-year-old daughter of Director, and former SNL writer Adam McKay) why he is short on the rent. The video is priceless, the concept is hysterical, and the outtakes are just as entertaining as the finished product.

CONCLUSION

Although real life property managers tend to be nowhere near as entertaining, legendary, or young as those portrayed on the big screen, there are no characters more fun to lampoon than landlords. They are a figure everyone has had in their lives at some point, meaning their brand of humor is relatable and specific, even when the characters are individualized and unique. While these landlords don’t actually exist, they would be far more fun to rent from than those who do.