"Being a landlord is a business." Whichever point we look at, these words are all about that. So if you want to succeed in property investment, you have to treat it like a business. Interest.com nailed it with that piece of advice, and anyone in this business surely couldn't agree more. But while the site's seven tips are all good points, there are some investors that would skip all six. These are investors that would rather entrust the job of a landlord to a property management firm. In this arrangement, the firm oversees the rental property on behalf of its owner for a fee. If you are a new investor and want this option, these advantages can be extended to you.
Credibility gives firms certain prerogatives that they wouldn't have otherwise. For instance, having two years of successful property management record can offset the income requirements set by mortgage lenders. First-time property investors usually have to show that they have enough income to cover the mortgages for their homes and the rental units, an expert from Americas Housing Alliance, LLC says.
Knack for Finding Single-Family Homes
The occupation rate for single-family home increases since the financial crisis: In 2013, 14.9 million renters lease single-family units or 31% increase since 2006. In a study by the Joint Center for Housing Studies of Harvard University, "single-family homes make up nearly two-fifths of the rental stock, and are a significant source of rental housing across central cities, suburbs, and non-metro areas."
Firms see opportunities in this high demand for single-family units, that even houses in distant places they can adeptly find. It comes with proactive measures like checking local unemployment rates and updates on median home-sale prices.
Eliminate Landlord Responsibilities
With property managers, owners and investors can transfer their responsibilities as a landlord. Competent firms can handle the administrative aspect of the business down to communication which is crucial in securing long-term tenants.
In the personal aspect, investors will have less stress, more time, and freedom. All while getting a steady cash flow.