New rental property owners discover hidden costs that potentially diminish the ROI (return on investment). However, with the help of property managers experienced in the San Diego County rental housing market, you optimize your rental home’s potential. According to a piece by realtybiznews, novice investors often discover the hard way that owning rental homes incur a myriad of expenses. Taking the DIY approach versus hiring a professional landlord often means costs and challenges. Your home is an asset that could effortlessly bring in hundreds of dollars a month or more, but rarely without professional guidance. Instead of feeling burned by hidden costs, talk with property managers about ways to minimize the risk with proper tenant screening, maintenance, repairs and targeted improvements.
Avoiding unscrupulous contractors
One hidden cost of owning rental home is the cost of not only repairs but the cost of paying for a contractor to re-do something that an untrustworthy contractor did. By hiring a San Diego property management company, you don’t worry about wasted money on unscrupulous contractors. Property managers already work with the best technicians, carpenters, electricians and plumbers. They handle the maintenance side of the business for you by working with the best contractors at the best price. Most accidental landlords and DIY landlords don’t have the same network of reliable workers.
Finding reliable renters who pay on time
While no one has a crystal ball to tell whether a tenant will always pay on time, a professional landlord reduces the odds with stellar screening practices. Problematic renters create unexpected and hidden costs. DIY landlords struggle to evict problem tenants. They are often left with damaged or missing property. With the property lease as well as legal expertise, a property management company handles irresponsible renters with ease.
Maintaining the rental units
Most DIY landlords might have some handyman skills, but don’t have all the necessary tools for property maintenance. Tenants feel frustrated when they have to wait long periods of time for service and repairs. By hiring property managers, you keep your tenants satisfied. They get a prompt response. Also, some maintenance problems, if left neglected, create further damage and costs. Your property management company inspects the property and evaluates your home's condition to prevent losses. When your renter feels happy, he or she is more likely to stay put and renew a lease. Reducing tenant turnover boosts your ROI in a number of ways. You will not experience vacancies as often. Also, happy tenants tend to spread the word which helps investors with more than one rental home in their portfolio.
Some of the other headaches that dampen a new investor’s enthusiasm include miscellaneous damage, high tenant turnover and problems with an HOA (home owner’s association) or condo association. Rely on a property manager to follow all the HOA rules about leasing as well as any local, state and federal laws and ordinances. Getting a fine from an HOA or local agency is a hidden cost that you should never have to deal with as an investor. Talk to your property manager about service warranties and adequate insurance coverage so you don’t worry about the hidden costs as appliances, A/C units and other items age in your rental home.
Owning a rental home is an exciting adventure for a lot of new investors. Instead of losing your enthusiasm and your profit, lean on experts in the rental housing industry. At HomeTeam Property Management, we give investors total peace of mind by with our in-house services such as maintenance, accounting, leasing and marketing. Our no-eviction guarantee means we will cover the cost of evicting bad tenants up to $1,000. For more information on hiring property managers in San Diego County area, please contact us.