Great Properties Need Excellent Management Systems

Submitted by: Penny Lane

With the recent economic downturn, and the resulting crash in house prices, those who have some spare cash can now make a killing if they choose to. House prices have never been so low and this is a great opportunity to add one or two to a portfolio while getting it to pay for itself. With the aid of a property management team, people can literally have their cake and eat it too. Even property management teams will have the necessary experience to keep the house in good order while creating a second income stream for the new owner.

People buy a new house for a variety of reasons. Their old house may now prove to be too large or too small for their needs now and it may well be time to move on. However, for those who do not want to let go of the place, it is possible to rent it out to others who may not have the ability to buy their own house.

What these companies do is to vet prospective clients very thoroughly. Not only do they do some rather in depth background checks, they also get information on whether the person is a bankrupt, or perhaps have some outstanding tickets or cases in court, which would make him undesirable. They may also do some credit checks too to see if they are likely to renege on paying the rent regularly. In fact, anything and everything is checked so that the agent can ensure the owner that his house is in good hands. Very often, the owner of the house will not live in the local vicinity anyway so it is always necessary to get an agent to take over this kind of work for him. They will collect rents, make sure that running repairs are done, and do some household check-ups occasionally to ensure that the place is not being damaged at all. The owner will have peace of mind that his valuable asset is being taken care of, and each month his bank balance is added to automatically.

Of course, after some time, perhaps a number of years, the house should go up in value and then the owner can either keep it as his income stream, or sell it when the market dictates the right price which is acceptable to him. Or, he may well wish to move into the place when he moves back to the area. Either way, this is an excellent way to make a profit without really trying.

It is important though to find just the right agents to handle a house like this. Although many agents claim to be able to do this, it is important that they are bonded and that they have been in the business for some years. These guys get paid a percentage of the rent being collected anyway so watch that they are not overpricing the place which could lead to long periods with no tenants inside. Better to get less and have the place occupied all the time.

About the Author: Penny Lane recently met with an expert in

Nashua property management

area to help her find office space in the area. She hired a

Manchester property management

company to maintain her office building.

Source:

isnare.com

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