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Property Management
June 18, 2021

The Ins and Outs of Property Management Made Simple

James Summerlin / Property Management /

You already know that real estate is a good investment. Why wouldn’t you buy a property if someone else can pay off the mortgage for you? But you also know (and have heard) that some tenants can come straight from hell – and you don’t want to experience that when you’re using these properties to build wealth. So how do you keep your property management costs low, without doing everything yourself?

We’ve got tips and tricks for you (including when you should hire a property manager), below.

Should You Hire a Company or Do it Yourself?

This is the question most beginning real estate investors ask themselves and the answer depends on a few different things.

First, how close do you live to the property? If you’ve bought a property within the city you live in and are retired or make your own hours, then you can likely handle the property management of one home.

But if you live in New York, for example, and have a rental property in central California, then trying to do it yourself is going to be a bigger headache than it’s worth.

Second, do you have the skills it takes to be a property manager? Not only do you have to have basic fix-it skills, but you need to know how to handle large sums of money, and provide timely customer service. If you’re too busy to respond to your tenant within an hour, then a management service is the right choice for you.

… But What Does a Property Management Company Do?

That’s a good question. A property manager is your eyes and ears on the ground when it comes to your central California property. Not only do they collect rent and create lease agreements for your current tenants, but they can help you find new tenants and even sell your property if the time is right.

Property managers can also deal with repairs, both emergency and normal property breakdown issues, including contracting landscapers, etc.

The Big Question: Is it Worth the Cost?

When you buy a rental property you’re making a big investment, so it’s understandable that you’d want to keep as much of your profit as possible. But think about how quickly your investment value would deteriorate if you didn’t take care of that property for just a year.

If you aren’t nearby to do what needs to be done, the repairs needed on the property will exceed the cost of a property manager in a shorter amount of time than you can imagine.

So sure, you can try to do it on your own – but are you paying yourself for the time you’re spending? Probably not.

Finding the Best Property Managers

Now that you’ve got the details about whether or not you need someone to help with your investment homes, let’s talk about finding the perfect property management company.

You want to find someone that has a history in the area, has a large range of services (from sales, to day-to-day management), and establish a relationship with them.

You may never meet them if you’re out of state, but you’ll get to know them through working with them. Do yourself a favor and schedule a meeting with our legendary property managers.

property management
June 7, 2021

5 Property Management Mistakes to Avoid

James Summerlin / Property Management /

Did you know that 56% of property managers also own the building they are managing? Being a building owner or property manager is a lot of work, and being both is even more work. By having this role, you may find that you struggle to keep up with everything without the proper team backing you up. Don’t let that continue to happen. If you want to be a successful property management owner, avoid these five mistakes like the plague.

1. Lack of Inspections

Property management involves scheduling regular inspections to ensure each unit is livable. It is common for a rental property manager to realize a unit has damage only after a tenant has moved out.

2. Doing Repairs on Your Own

Managing property comes with a lot of responsibilities, but completing repairs on your own is not one of them. Instead, you should outsource maintenance to someone eligible.

You may think you are saving money by handling repairs, but the tasks are time-consuming. You’ll save more money by getting the repairs done faster to avoid problems getting worse.

Professional property management teams can take care of maintenance while saving you time and money. You can have peace of mind knowing that repairs will be done correctly.

3. Allowing Tenants to Handle Repairs

Rental properties are not owned by tenants. As the property owner or manager, you may be willing to give tenants a lower rent if they complete their own repairs.

However, this is never recommended because it can end up causing major risks. If an accident happens because a tenant was completing their own repair, you could be held liable.

4. Avoiding Maintenance Completely

As a real estate property owner, you should never avoid maintenance in any situation. Even if you believe the situation is minor, not completing repairs can lead to major expenses down the line.

Any deferred maintenance is a huge mistake. Along with costing you money, it can lower the value of your property.

5. Ignoring Legal Terms

Whether on accident or purpose, property managers may ignore legal aspects. The main legalities to address include tenancy agreements and property condition reports.

Tenancy Agreement

For every tenant, you should have a tenancy agreement. This is a contract that will state the property terms.

This will help property owners hold tenants accountable when needed. It will also protect the property in the case of a dispute.

Property Condition Report

A property owner should fill out a property condition report that lists items on the property and their repairs.

Among having these two reports, you should understand property management laws. These laws may change as they are constantly under review. Having a professional team can ensure you comply with legislation.

Property Management Mistakes You Don’t Want to Make

Leasing a property is not as simple as it seems. Chances are, you’ve taken on something bigger than you can handle on your own.

Don’t worry, property owners and managers are just one part of a larger team. If you avoid the mistakes listed in this guide, you’ll be in good shape.

For additional help with maintenance, leasing your property, and more, contact us today.

property management
May 13, 2021

The Ultimate Guide to Property Management

James Summerlin / Property Management /

Real estate is a lucrative field where something is always happening. If you have any interest in properties in your area, you might have already considered becoming a property manager. Yet, the field of property management can seem stressful and overwhelming, especially if you haven’t learned everything there is to know about managing properties. 

That’s where we come in to help! We have created an all-in-one guide on everything you need to know about property management and how to get started. 

Be sure to keep reading for our ultimate guide to property management and start learning all there is to know. 

What Is a Property Manager? 

One of the easiest ways to define a property manager is they help to manage a property for an owner or an investor. During that time, they ensure the property is leased to properly screened tenants and is well taken care of. 

A property manager can also help to guide the owner in making decisions for the property. These could be decisions to help the owner make more money, please the tenant, or help to make the property look more attractive. 

What Do Property Managers Do? 

If you’re thinking about becoming a property manager, you might want to know some more property management tips. Good property managers do many different things to help each property run smoothly. In fact, the day-to-day tasks of a property manager rarely ever look the same. 

Before a lease is signed, property managers will spend time making sure everything is clean and inspected. A property manager can assist with showings and screening of potential tenants before finally choosing the ones they deem responsible. 

After the property is leased, they will collect rent from tenants, manage maintenance requests, conduct emergency repairs, and so much more. 

Property managers can even help owners with some behind-the-scenes administrative tasks such as paying taxes or other bills for their properties. 

How Can You Get Started in Property Management? 

The best property management advice is to just get started. If you know an owner or investor who has a property you can start managing, do it!

Once you start building a portfolio and showing more owners the work you can do, you will find more clients rolling in. Don’t forget that property management is always needed.

There are certain licenses and certifications that you will need before you get started. These can also help to boost your credibility as well. Be sure to do your research so that you’re thoroughly prepared as a property manager. 

Starting Your Career as a Property Manager

Are you ready to take on the world of property management? If so, there are plenty of ways to get started.

Be sure to use our guide to score your first rental property and start building your portfolio. Once you do, more owners will begin to trust you with their properties, and you’ll begin building your own property management company in no time. 

If you’re looking for help buying or leasing a property, we have you covered! Be sure to contact us today, and we can get started helping you right away. 

how much does property management cost
March 18, 2021

How Much Does Property Management Cost? What You Need to Know

James Summerlin / Blogging /

It’s a great time to be a landlord, but the job isn’t without its unique challenges.

In recent years, we’ve seen more people renting than at any point since 1965. The rental market has continued to stay strong and isn’t likely to be going south anytime soon.

However, renting out property isn’t as simple as collecting a monthly check. There are a number of responsibilities involved that can be difficult to juggle on your own, especially if you’re working with multiple properties.

Luckily, property managers are available to take on these tasks for you. So, how much does property management cost? Keep reading to learn more about what you can expect to pay.

Do You Need a Property Management Service?

Renting a property can be lucrative, but it’s not without its difficulties. For example, locating tenants, handling conflicts, and taking care of maintenance can all end up being a full-time job. Property managers are designed to take on these stresses for you, all for a small portion of your monthly rent charges. 

How Much Does Property Management Cost?

Every property management service is different, so there is no single answer to this question. Most companies will charge between 8-12% of your monthly rent. The average rate is about 10%.

Fees Associated with the Cost of Property Management

If you’re wondering, “how much does property management cost?”, the previously mentioned expenses aren’t the only thing to consider.

In addition to the baseline percentage of rent earnings that property managers charge, there are other fees that could apply. Below are some additional costs that could be associated with your property management service.

Vacant Vs. Occupied Unit Costs

For vacant units, a property manager might charge an upfront cost. This is usually their standard rate for one month’s rent. If the property manager is placing renters on the property for you, this helps cover their costs of advertising, paying a real estate commission, or preparing the lease paperwork.

It’s worth noting that only around 6.5% of rental homes are currently vacant, so landlords have a good chance of keeping their units occupied. Still, it’s wise to be prepared for these costs if they do come up.

Additionally, there are some property management services that will only charge their fee when your rental unit is occupied. As mentioned before, this will all vary depending on who you go with.

Property Maintenance

Some property management services will staff a full-time maintenance crew to take care of repairs and other work around your property. If this is the case, expect to pay a fee based on the work done. Some services will offer routine maintenance with your contract, so be sure to check these details when you sign.

Locating New Tenants

A property management service might charge an additional fee every time new tenants are placed on your property. This might be a larger percentage of rent than they’d typically charge. Some services will charge around half of your first month’s rent.

Finding the Right Property Management Service

A property manager can help ease the burdens of running your rental property, all while allowing you to continue making a profit. Considering the time and energy you save, it’s a win-win for everyone involved. Now that we’ve answered, “how much does a property manager cost?”, you can start locating the service that’s best for you.

Contact us now to learn more about what Outland Real Estate can do for your rental property.

tenant can't pay rent
February 23, 2021

This Is What to Do if a Tenant Can’t Pay Rent on Time

James Summerlin / Property Management /

Are you a landlord or property manager who’s having trouble with tenants not paying rent on time? Many people are having trouble keeping up with their bills, but that doesn’t mean that you shouldn’t communicate about it.

Managing properties is hard enough, and talking about rent is awkward, so we want to help. Keep reading to learn about what to do when your tenant can’t pay rent on time. 

Plan Ahead

It’s always a good idea to go into this situation with a plan in mind, preferably before it comes up at all. If you’re reading this and you haven’t yet encountered the problem, you’re on the right track. 

Plan out how long you’re going to allow rent to be overdue. Many people include this in lease agreements, but if times are tough it’s a good idea to have some wiggle room. 

Then consider your plan of action. 

Talk to Them

The first thing that you should do is communicate. It’s possible that your tenant isn’t aware that they missed rent this month. If they have a lot going on and they don’t have automatic payments, it’s normal.

If they are aware, having a conversation and being empathetic can go a long way. You need to see your tenants as people. Many tenant issues can be solved through communication. 

Explaining the situation, that you also need to pay for the property and associated maintenance and bills, will help them understand why rent is so important. 

Negotiate

While you’re communicating, try negotiating with your tenant. You can give them options to help them pay their rent.

One option, if you’re up for it, is giving them a temporary discount. Many people are out of work, so taking off a small portion of their rent can help them pay on time. 

If not, try setting up a payment plan. Let them pay small amounts throughout the month so it’s easier to manage than one large payment at the end. 

Giving your tenant options can help both of you. You get the money that you need and they get enough relief to pay. 

Send a Notice

If your tenant still doesn’t pay rent in the allotted time, it might be time to send an official notice. This should be a formal letter, and it’s a good idea to put it both in an email and on paper. This way you have a paper trail and you can prove that your tenant received the notice.

Sometimes all it takes to get a tenant to take things seriously is an official warning letter that lets them know what will happen if they continue to not pay. 

When Your Tenant Can’t Pay Rent, Try These Tips

Every property manager or landlord will experience this problem at least once. Remember, talking to your tenant may be all you need to get your rent. Even the best tenants fall on hard times or let bills slip their minds. When a tenant can’t pay rent, start by being understanding and go from there.

Are you looking to get new tenants for your home? We want to help. Contact us to learn about how we can take communication out of your hands and find the perfect tenant. 

screening tenants
January 8, 2021

5 Essential Tips for Screening Tenants

James Summerlin / Property Management /

Working with haste to rent your property is never a good idea. While you may desire to start earning income, you are more likely to lose profit at your investment property if you accept anyone.

Screening tenants is one process you never want to skip. You are more likely to have to evict a tenant if you fail to do this for reasons such as missed payments.

Increased risk of property damage is another concern. Keep reading to learn what to include when you screen applicants as the landlord or property manager. 

1. Create a Checklist

Not everyone who has an interest in your house should qualify. The best way to find the best fit for an applicant is to make a checklist. The prospective tenant(s) should be working and must make a certain amount per month as proof they can afford the place. 

Ask that they earn 1.5 to 2 times the cost of the property at a minimum. You should also verify their employment references to ensure they are indeed working. 

2. Complete a Background Check

As a property manager, it’s also your responsibility to do a background check. There are three things you want to look at: criminal history, credit history, and eviction history. 

Checking their background to see if they have any criminal history seems invasive, but it’s a common requirement you should do. It would be an expensive mistake to make.

Their credit history may be the most important as it is a trustworthy way to see how well an applicant pays money they owe and if it is on time. You must check to see if a prospect has a prior eviction as well. While not 100%, there is an increased risk you may have issues with needing to evict later as well. 

3. Understand Screening Laws

There are limits as to what you can when it comes to screening. The Federal Fair Housing Law protects applicants and ensures everyone receives fair consideration. For example, you can’t discriminate against someone at a chance to qualify over their color, race, religion, gender, status, or presence of a disability. 

4. Start an Application 

Talking to all applicants and meeting are a must, but the process isn’t complete without an application. All terms and agreements must be in writing, not just verbal.

Upon approval, the applicant agrees to the set rules and expectations. This is vital in the event issues arise or you need to go to court.  

5. Narrow Your Selection

If all goes well, you will have several applicants and it will be your job to choose the right one. You want to find an applicant that meets the requirements you set or exceeds them.

It’s best to wait for new applications if someone does not meet them. Never settle and accept. 

Screening Tenants Will Save Time and Money 

You will save hundreds to thousands by screening tenants before they step foot on your property. Although it may take time to complete, you lower your risks of dealing with someone who will damage your place or fail to pay on time. If you need assistance keeping track of your property and want to find the right property manager, contact us. 

property management service
December 20, 2020

7 Benefits of Using a Property Management Service

James Summerlin / Property Management /

From 2010 to 2016, the number of renters in America grew by 976,000 per year. This statistic demonstrates the extremely difficult reality rental property owners face when searching for new tenants. 

The following guide provides seven benefits of using a property management service when renting your property. 

1. Reduced Legal Issues

Property management services understand the legal implications that can result from a single bad tenant. For this reason, it is a good idea to hire their services so that you can protect yourself against potential lawsuits or other vulnerabilities. 

These services help you understand current laws around rental properties such as eviction, tenant screening and unit inspections.

2. Quality Tenants

Finding an ideal tenant can be a difficult task without knowing what qualities to look for. A great property management company will help you find tenants that are willing to rent long-term, make payments on time and minimize property damage. 

3. Low Maintenance Fees

Property managers have access to professional, bonded contractors that typically offer their services within a fair price range. Hiring a contractor through a property manager can help save you time and money in the long run.

As an added bonus, this keeps your tenants happy by offering them reliable maintenance of the rental property.

4. Eased Rent Payment

Having a property management service take care of rent payments helps put a barrier between you and the tenant. This can help ensure that you are not taken advantage of in cases where the tenant may be unable to pay rent on time. 

Also, if eviction is necessary, property managers understand the legal requirements of this process and help ensure it is handled as smoothly as possible.

5. Increased Property Value

Property management companies outline the key requirements to maintaining the value of your property. These requirements may include performing regular maintenance checks and keeping detailed documentation. 

Without following their advice early-on, it is likely that you may end up paying heavy fees to repair damage done by the tenant. 

6. Reduced Vacancy Times

Professional property management companies help to ensure that your property does not remain vacant for long periods of time. Some ways they avoid this include: 

  • Preparing the space for renters
  • Calculating ideal rent rate
  • Efficiently advertise the property 

7. Decreased Personal Stress

Finally, the use of property management services helps elevate stress, gives you personal freedom and increases the time you have for yourself. By using their services, you don’t have to worry about working around the clock or tending to emergencies. 

Their help allows you to focus on concerns of a larger scale, such as asset management and spending time with family or friends.

Hiring a Trusted Property Management Service

The knowledge that experienced property managers bring to your business aids in the entire rental process. From listing the space to drafting the rental contract, property management services are deeply dedicated to you and your business.

Outland Real Estate is a committed property management service that prides itself on their great expertise. To begin learning more about our services, feel free to contact us to learn more. 

property managers
November 13, 2020

These Are the Different Types of Property Managers

James Summerlin / Blogging /

Are you looking to hire a property manager, but aren’t sure who to choose? Finding the right property managers can be a daunting task. 

Before you start the job hiring process, you first need to understand the different types of property managers out there. This way, you’ll have better luck finding the right person for the job. 

Check out this guide to learn about the different types of property managers. 

1. Commercial Property Manager 

A commercial property manager is responsible for managing and maintaining office spaces, retail shops, commercial buildings, and other business-related properties and lands. 

If a rental property is used for housing five or more tenant groups, then it’s also referred to as commercial property and is therefore maintained by a commercial property manager. 

These managers have a wide range of responsibilities, including:

  • Creating and signing leases
  • Negotiating lease terms
  • Updating leases before they expire
  • Showing available units to businesses seeking commercial space
  • Working with third-party services for repairs and maintenance
  • Performing maintenance and cleaning duties
  • Gathing and reporting financial information
  • Marketing commercial spaces
  • Managing cash flow
  • Overseeing personnel management

To be a successful commercial property manager, one must have excellent customer service skills, marketing experience, financial management skills, and negotiation skills. 

2. Residential Property Manager

A residential property manager is responsible for overseeing both single and multi-family units. They play a large role in tenant relations, as they select qualified tenants, develop rental agreements, collect rent and security deposits, enforce rental agreements, and resolve tenant issues. 

They’re also responsible for marketing the rental property through advertising, lead follow up, and showings. Because of this, need to keep an open dialogue with property owners in regard to tenants, vacancies, and the physical condition of the property. 

These managers need to have strong business communication and interpersonal skills, be familiar with local, state, and federal property regulations, and have knowledge of financial reporting and office management software. 

3. Recreational Property Managers 

Recreational property managers are responsible for overseeing marinas, resorts, campsites, RV parks, and other recreational properties. 

The role of a recreational property manager will largely depend on the type of recreational property they’re managing. For example, a marina property manager may be responsible for overseeing site amenities, increasing boat slip rentals, and providing boat operation training. 

Regardless of what type of recreational property is being managed, recreational property managers need to have excellent customer service skills as well as skills in marketing, finance, accounting, and property maintenance. 

Property Managers: Are You Ready to Hire? 

As you can see, property managers play a very important role in the day-to-day maintenance and care of real estate property. In addition to having a wide breadth of skills, it’s also important that you hire a property manager with the right education and certifications. 

In some states, property managers need real estate licenses, while in other states, they need a property management certification. If you’re looking to hire a property manager, get in touch with us today. 

Career in Property Management
October 12, 2020

Considering a Career in Property Management? Here’s What You Need

James Summerlin / Property Management /

Did you know that property management is 18th among the 20 happiest jobs in the U.S?

Beyond job satisfaction, property management is also a growing field with significant earning potential. Considering those facts, pursuing a career in property management is a great decision.

As the overseer of real estate big and small, property managers wear a lot of hats, which means their skill set is long and varied. But more than those soft skills, there are also training and educational requirements for property management.

If you’re ready for a career change, property management is a growing field with an excellent salary. We’ll tell you more about what it is and how to get involved in this guide to starting a career in property management.

What Is Property Management?

Property managers are overseers of real estate entities and all the responsibilities that go along with them. Real estate entities can include residential buildings, commercial buildings, or even building projects.

On the day to day, a property manager may be responsible for a number of operational, administrative, and maintenance-related tasks. These include:

  • Showing, inspecting, and evicting tenants from residential properties 
  • Collecting rent
  • Filing taxes
  • Maintaining listings
  • Asset management

Property managers may also be involved in marketing and communications, depending on the company for which they work.

How to Pursue a Career in Property Management

Property managers make an average salary of nearly $60,000 per year. Property management has also been voted among the jobs with the highest job satisfaction in the country. With stats like that, it’s no wonder that more and more people are looking to pursue a career in property management.

But how exactly do you go about that? We’ll explain the education, training, and skills you need to succeed in this field.

Education

There is no particular education required to be a property manager. Each company will have its own requirements, according to what they do and where they’re located. 

While it’s technically true that you can be hired with only high school education, most property management companies hire people with at least an undergraduate degree. Preferably, that degree should be in real estate or a related field such as business or finance.

Certification and Licensing

Some states require property managers to have a real estate license. Other states don’t require a real estate license but you’ll be required to pass a certification test.

Some certifications you might consider are the Accredited Residential Manager (ARM) or Certified Property Manager (CPM) certifications. You may also pursue certification through the Institute of Real Estate Management (IREM).

Skills

Considering the diversity of tasks and responsibilities in property management, you’ll require a number of wide-ranging skills.

In terms of accounting skills, you’ll need to have a good handle on tax law. You’ll also need to know how to create and balance a budget and how to prove returns on investments.

Property management also has a lot of administration skills involved. That means you need to be organized and efficient, staying on top of paperwork and bills. Of course, the property will also need to be maintained, staffed, and insured, which is usually the responsibility of the property manager.

Personal skills are important in property management because you’re hiring and firing employees and building teams. You’ll also have to deal with tenants and often act as the liaison between owners and residents.

Hire a Property Manager

Pursuing a career in property management isn’t something one does as a hobby. This intensive career requires training and skills that are demanding. It takes real commitment to become a property manager – and to be a good one at that.

If you require a professional property manager, let us help you. Contact us to find out more about the property management services we provide.

tenants
September 15, 2020

The 7 Most Common Issues That Tenants Complain About (And How to Resolve Them!)

James Summerlin / Property Management /

As any experienced landlord will know, the management of their relationship with their tenants is often the hardest part of the job. According to a recent survey of landlords, one of the most common issues they face in the job is dealing with problematic tenants, with a full 37% of landlords describing difficult tenants as their biggest worry.

However, as a property manager, there are steps that you can take to mitigate this. Simply listening to your tenants and being able to quickly respond to the most common rental issues will help ensure a smooth relationship from the outset. With that in mind, here are the seven most common issues that tenants complain about, and what you can do to resolve them.

1. Maintenance Issues

Problems with appliances and utilities are by far the most common source of complaints from tenants. As a landlord, you should take these complaints seriously and immediately take action to resolve any maintenance issues in a house or apartment.

Always have an updated contact sheet of trusted repair people that you can call when your tenant reports a maintenance issue. 

2. Poor Communication

Another very common complaint from people who rent their homes is poor communication from their landlord. No matter how many tenants you have, it is your job to respond quickly and effectively to queries from tenants.

You should also be proactive and keep your tenants updated on things like inspections, maintenance work, and noise disturbances. 

3. Noisy Neighbors 

Noisy neighbors are another common issue that anyone who rents out the property should be prepared to deal with. Most noise complaints tend to be because of one single bad tenant who is ruining it for everyone else.

You should be prepared to do everything in your power to identify the noisy tenant and deal with the problem effectively. 

4. Boundaries

While poor landlord communication is one issue, a lack of boundaries is another. If you’re the type of landlord that thinks it is OK to turn up to a tenant’s home unannounced or try to keep tabs on their habits or schedule, then you need a reality check.

Your tenants are individuals with a right to private life. Respect their boundaries and accept that this is their home for as long as they are paying the rent. 

5. Security Deposit Issues 

The security deposit exists for a very important reason. However, far too many landlords will try to bend the rules and treat tenants unfairly to keep the deposit for themselves. Don’t be that person.

Unfairly withholding a security deposit can cause significant legal troubles for you and the properties that you manage, so don’t do it. 

6. Damage to Common Tenants Areas 

Damage to the stairwell, common room, roof terrace, pool, and grounds of the building are a common cause for complaint. Not only is it your job to be reactive and repair the damage quickly, but it is also important to be proactive and make sure that people are deterred from causing damage.

If you know of a particular tenant who is damaging common areas, then take action to ensure they won’t do it again. 

7. Parking 

Finally, there is the age-old issue of parking. These are problems that can often be resolved with good communication and signposting. One tenant might not realize that they are taking up someone else’s parking space.

Another might think that they can park both of their vehicles outside the building, even though they only have one designated space. Making the rules clear at the outset will prevent a lot of trouble further down the line. 

Get Expert Support Today 

If you want to have a smooth and mutually beneficial relationship with your tenants, having the right resources can help. At Outland Real Estate, we provide expert support and guidance to landlords looking to rent and lease out a building. If you’re looking for expert advice, don’t hesitate to get in touch with us today. 

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