When you’re thinking about advantages and disadvantages of owning a rental property, it’s easy to narrow the thinking down to the equation of rental income minus expenses equals your profit. This is a basic formula to start with, but there are so many different factors and variables that go into making it more complex than it seems. Many rental property owners don’t realize how much of their own time and effort is required for upkeep, taking tenant calls, collecting rent, enforcing leases and more. This brings us to the point of whether it’s worth the investment of your own time to handle these duties, or if paying a property management company to handle them for you is the way to go. Everyone views these perspectives differently but getting an overall understanding of both sides will help you make the decision that fits your lifestyle best. Finally, most people I meet don’t realize there are actually four (4) different ways to make money in rental properties – spending your time managing the property might not always be in your best interests.
Posts Tagged ‘Property Manager’
I rarely use the “M” word because I’m not an industrial hygienist or a laboratory. However, mold is commonly talked about in the real estate world and is everywhere – that simple fact doesn’t take away from the seriousness of it. A mold infestation or contamination can be extremely damaging to a property and to investment property managers. Not only does mold put your tenants/residents at risk, but you and the property owner may have to spend a significant amount of time and money to properly mitigate the environmental condition and make the rental unit a safe and comfortable place to live. Moreover, mold creates a significant stigma on a property which most certainly attaches and affects value and desirability. In addition to educating yourself about mold, one of the best things you can do is focus on the common areas (bathrooms, kitchens, laundry rooms) where mold grows and do your best to prevent it by keeping these rooms, walls, ceilings as dry as possible. However, if mold/mildew growth is already there, it’s time to take care of it before the issue becomes more serious. Remember, a property manager and/or landlord’s primary duty is to provide a habitable rental unit – a unit with mold is not habitable.
Even though e-cigarettes are increasingly being banned throughout California cities and counties Palo Alto’s City Council is not including them in their new proposed smoking ban for apartment buildings. For those of you who aren’t familiar with them e-cigarettes look like the real thing, they glow when you puff on them, and a smoker puffs out a cloud of vapor when they exhale. Many believe e-cigarettes are a “gateway” drug as the number of teenagers using them doubled from 2011 to 2012, and increased 61 percent from 2012 to 2013. Moreover, e-cigarettes have nicotine, emit formaldehyde, are addictive, and can be dangerous for people with heart problems. There are many unknowns with e-cigarettes and this is potentially the reason Palo Alto is not yet banning them in multi-family buildings.