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Posts Tagged ‘Property Management’

5 Secret Perks of Property Management

February 3rd, 2011

Real estate investments present a tremendous opportunity for profit, but only for those with the time and money required to get involved. Since most investors have the money, but few have the time, working as a property manager can be a simple way to help the rich get richer, while making a living. The following are perks for property managers.

1. All of the Reward, Without Risks

photo credit: rentballoon.com

It is so simple; pretty much anyone can figure it out.

Investing in real estate can be a risky endeavor. Since neighborhoods and property values frequently change, there is no guarantee of a return on investments. Working as a property manager adds stability to an otherwise unstable industry. Because property managers are paid for work, and not for the value of the land, their paycheck is unaffected by long-term property value outlooks.


Photo source: road2freedom.ws

While the owners of the investment properties must be constantly evaluating whether or not they should sell their land, or hold out for a few more years, property managers can enjoy the freedom of not paying attention to any of that, and just cash a monthly check.

Photo source: rentballoon.com

2. All of the Experience, Without Risks

Photo credit: texasrealestateclassesonline.org

These suckers had to buy the house to learn about it.

Not only is real estate a risky investment, but also a confusing one. So much of real estate success is dependent upon luck or experience, that if you don?t have any of the first, it will be impossible to get any of the second. Working as a property manager is a great way to be immersed and involved in the real estate scene, without having to worry about losing your shirt.

People who are interested in learning about real estate, with the intention of one day investing, will receive no better training than by working as a property manager. This experience will educate them as to the dos and don’ts of real estate, without requiring a fortune to be laid on the line.

3. Non-Traditional Work Hours

Photo credit: i.ehow.co.uk

You can work at night.

Property managers are essentially always on-call. Their hours fluctuate, ranging from incredibly busy 11-hour day to had to shovel at 9 AM, and then drank wine all day. This non-traditional schedule is in-and?of-itself the biggest perk and drawback of the job.


Photo source: Flickr.com

While property managers are slaves to the unexpected, they also reap the rewards of time off when things run smoothly. For those looking for steady work that allows them freedom to participate in Wednesday afternoon softball league, property management is the perfect profession.

4. Independent Work

Photo source: reiq.com.au

This is the company handbook.

Another perk of being a property manager is the unstructured nature of the job. While a majority of Americans have to deal with supervisors, property managers most often deal with tenants, which makes for a less repetitive work environment.

Photo source: Flickr.com

This desk is not your problem.

With tasks and problems that change daily, as well as surroundings that could vary from hour-to-hour, property managers are forced to be an independent breed. For those who hate the stagnant feeling of working in an office, and who also happen to be excellent with a pipe wrench and electrical tape, working as a property manager provides unparalleled freedom and independence.

5. Paid Relative to Workload

Photo source: news-libraries.mit.edu

You will not make this much money.

Perhaps the biggest perk of working as a property manager is that the pay is relative to workload, meaning the less lazy the manager, the more bank they make. Property managers often charge percentages of the monthly rent (somewhere between 6-10%) as their fee for building upkeep, tenant management, and vacancy avoidance.

Photo source: mytwoandahalfcents.com

Because of this, the more buildings a property manager can handle, the more money they stand to make. Property managers are therefore extremely motivated to get work done quickly and efficiently. Though this job would be less than ideal for those who aren’t self-motivated, it is perfect for those who like to get paid more when they work more.

Conclusion:

Although working as a property manager is not ideal for everyone, there are many people who make an excellent and enjoyable living doing so. Anyone who is exceptionally handy, good with people, and not afraid of non-traditional aspects of a career, is able to enjoy these perks in no time at all.

What is Flood Insurance and Do I Need it?

August 20th, 2010

photo credit: suburbanbloke

Flood insurance is a type of insurance that isn’t usually included in rental or home owners insurance. Many times when you rent or buy it is not included in basic insurance.

Most insurance companies offer flood insurance as an additional cost or protection. Some companies offer it to you without an additional cost, but you have to request to have the coverage added on.

Many people don’t understand why they need insurance think they don’t need it. The truth is everyone should have flood insurance regardless if they are renting, leasing or buying. At any time a down pour of rain or a storm could occur and cause damage to all of your furnishings inside your home. Even if you live near the mountains and don’t get much rain fall if a heat wave comes through it can melt the snow on the mountain and flood your home. There have also been many cases when a hurricane decides to turn and hit inland further than expected. You might think you are safe but at anytime the weather can change and you can get flooded.

Basic flood insurance covers up to $20,000 dollars in damage. You can upgrade to a higher amount for an extra cost. If you feel you have more than that in property in the home than it is a good idea to upgrade to a higher amount.

Relying just on federal aid won’t be enough neither. They are limited on what each family will get. They are also limited on the number of families or homes they can cover. They will only cover a certain amount, or just the ones that are out of a home completely.

Flood insurance is actually more affordable than many people think. The price will vary on your location, and age of your home. Different insurance companies will give you different quotes. Go with the one that offers the most with the best deal. Many times your home owners insurance company will give you a discount if you add on the flood insurance. In this case it is better to be safe than sorry, because once you get flooded it might be too late to add it on.

What is Title Insurance and Do I Need It?

July 21st, 2010

photo credit: kevindooley

The simple purpose of Title Insurance is to ensure that all changes of building ownership as well as the property it sits on have been legally executed and propertly documented. Once Title Insurance has been granted to a property owner, the fees for any legal issues that may arise at a later date in regards to the property will be covered.

In the United States, anyone with a mortgage is required to purchase Title Insurance for an amount equal to the mortgage. The insurance can be canceled when the loan has been repaid in full or the propety is sold. A Title search is peformed by a title company and the issued insurance protects the lender, not the owner, in cases where a problem with the title was missed or overlooked. Strangely, this may be the only type of insurance that provides coverage for events in the past and not the future. Title coverage is effective beginning on the day it is purchased and ensures that all prior property sales were legitimate where as other types of common insurance provide indemnity for events that may possibly occur in the future.

In the event that Title Insurance is issued and a claim later arises, the property owner will need to work with the insurance company as best they can. While unresolved claims prevent the property owner from entering into any sales agreement regarding the property, the title company will want to take time to investigate the claim and pay out as little money in settlement costs as possible. This process of determining settlement terms, especially those that are questionable, can be quite lengthy and create the potential for a long-term burden on the property owner. For this reason, working with a reputable title company is imperative for all property owners.

The cost of mandatory Title Insurance can vary greatly and a homeowner has the option of shopping around for Title Insurance if costs in their area are high but most borrowers rely on a trusted real estate agent to provide guidance on choosing a reasonably priced and professional title insurance company.

Using Media To Promote Community In Multi-Unit Dwellings

February 4th, 2009

The idea of using any sort of media to encourage your tenants to communicate with each other might be terrifying to you. This need not be the case. It is a simple matter of understanding where you stand with your tenants and acting accordingly.

Do you consistently underserve your tenants with inferior housing for their money?
Are you slow to respond (more than 4hrs) to tenant emergencies?
Are you difficult to deal with in every-day tenant-landlord interactions?

If you answered yes to any of the above questions, you’ll want to work on changing your business approach before attempting to build community among your tenants.

If you think you do a pretty good job at meeting the needs of the people you provide housing for, consider incorporating some new media into your community approach.

Set up a page on your website (you have one, right?) where tenants can log in and participate in discussions that pertain to their location.
Provide some extra value for your tenants by making them aware of upcoming events that relate to the complex they live in.
Build lines of effective communication by using email and your website forums to make it easier for your tenants to share their delights and concerns with you and your staff.

Opening new lines of communication doesn’t mean you need to commit to talking all the time…just that you’re open to the idea and willingly fostering a community. Your tenants will appreciate the effort and you’ll reap the rewards.

What The Madoff Scandal Can Teach Real Estate Investors And Managers

January 28th, 2009

Check your numbers.

The recent fiasco stemming from Bernie Madoff’s elaborate Ponzi Scheme has cost many investors billions of dollars. From wealthy individuals to schools and non-profits, the truth is slowly being uncovered that thousands of wealthy people did not check their numbers.

The Guardian reports that, after much research, it would seem that Madoff never traded any shares and simply made up the figures he sent to investors in neat trustworthy-looking statements. They were so delighted with the unbelievable returns that they neglected to check the numbers.

Check your numbers.

When you go over receipts, expense statements, and bills, are you in the habit of looking for irregularities? Make regular reviews a part of your work habit. Even the best bookkeeper has bad days and may start writing checks on a Friday afternoon that would never be written on a Monday morning.
Do you know how long a building project or repair should take under normal conditions? Do not be afraid to request itemization on any bills that seem too high or even, too low. A remarkably-low bill may be an attempt at making money from your sloppiness. If you aren’t sure of a price, call around and get an estimate. A few minutes can save you a few dollars quickly and a large sum over the long term.
When you consider a new property, do you take the time to check the numbers or are you liable to get caught up in the excitement of a high return? Taking the time to research typical occupation rates and costs can be time-consuming and boring, but the effort will reward you with a clear picture of the investment you’re looking at.

There may not be much Madoff’s investors can do about their lost money. Taking the time to learn from their mistakes offers a way for the rest of us to gain value from those bad investments. Check the numbers!

Avoid Landlord Shortcuts

August 1st, 2008

photo credit: zimpenfish

Like all businesses and business people, sometimes landlords, property managers and property owners get overwhelmed at times and resort to some shortcuts, but some of these shortcuts can be very detrimental to your business. Avoid the following shortcuts at all costs. (more…)

When to Sell or Rent Your Home

July 8th, 2008

photo credit: roarofthefour

You’re thinking about a move but don’t know whether to sell your current property or to rent it. It’s a difficult decision for some as the thought of added income every month may be tempting but the idea of having to deal with tenants may be daunting. (more…)

Fractional Property Ownership

July 7th, 2008

photo credit: mstorz

Is fractional property ownership right for you? Fractional means a mathematical portion of a whole. Fractionalized ownership of a luxury item has been commonplace for quite some time. You’ll often hear of people going in together to purchase a boat or an airplane and property is no different. (more…)

Tips for Negotiating a Lease – Buyer

June 26th, 2008

photo credit: matrianklw

Whenever you negotiate a lease for anything, you are engaging in a battle between people who have two opposing desires. Ultimately, you aim to reach a compromise between those desires which satisfies both parties. Of course, you would prefer to get everything that you want from the deal but that’s not what a negotiation is all about. Nevertheless, there are certain things that you can do to weigh the odds more heavily in your favor so that the outcome is closer to your original desires than to those of the person with whom you are negotiating. (more…)

Tips for Negotiating a Lease – Seller

June 22nd, 2008

photo credit: Sweet One

When negotiating a property lease, the seller typically has the upper hand. This is true for a number of different reasons that hold true despite changes in the market that sometimes favor the buyer. However, only a seller with good negotiating skills is going to be able to make the most of this upper hand in order to come out of the negotiation with a lease agreement that is favorable to the seller. This is particularly true during a buyer’s market but is even true in a seller’s market. The art of negotiation is something that can’t be learned too well or too soon if you’re in the market to be selling anything at all. (more…)