Real Estate Investing: Finding new tenants
April 6, 2015
Once again, while I’d rather have the money in my pocket, the ability to be completely hands-off with some of the day to day, other than answering emails, has been exactly what we needed.
My hands have been rather full so I’ve only answered emails, or redirected phone calls, but not long after LB’s arrival, the property manager dealt with:
1. the expiration of our old tenant’s lease,
2. checking the property to ensure that clean-up was complete,
3. collecting final rent,
4. getting the previous renters to pay up the utilities they claimed were paid (but weren’t),
5. returning the remaining security deposit once all the outstanding payments were deducted,
6. scheduling all the inspections and servicing of repairs,
7. marketing and showing the place,
8. reviewing applications and running background checks,
9. getting the final lease signed with my approval.
Bonus: we both make a little bit more now that the rent has changed to be more in line with the market rate for equivalent rentals. Not showing a profit yet, of course, but it gets us closer.
Not having to deal with that stuff and a screaming newborn? That’s absolutely worth the percentage off the top. Much like renting is not a waste of money because you’re getting a place to live without financial risk, hiring a property manager was the right choice for us. PiC has zero interest in this whole venture, beyond an academic one, so it’s entirely on me. Having someone deal with the hands-on work of owning a rental has made it possible.
Extra bonus: they organized all the income and expenses that they handled in a statement for me, reducing the amount of time and work I had to put into organizing our tax documents. Whew!