The most financially successful people will tell you that investing in real estate is one of the smartest things you can do. The right piece of property will appreciate in value and can generate a monthly income. So why are you still scared of investing in rental property?
We address the most common concerns we hear as property managers. Then we’ll show you why these concerns are unfounded and can be easily avoided.
Fear of Losing Money
Buying rental property is supposed to be an investment, which means it should make you money. Losing money is the number one fear that property owners have when considering renting out their property. No matter how you choose to invest your money, there’s always a risk.
To completely lose your shirt with a rental property, you need to make some major mistakes. This could include completely misreading the market or investing in a property requiring expensive repairs.
If you plan for the more significant upkeep costs, you may have a temporary loss. But you should plan to own your rental property for years. This means that over time, you will have a profit.
Dealing with Evictions
We’ve all heard horror stories of the tenant that refuses to pay and refuses to leave. Then the landlord was forced to go through an expensive and extensive legal battle to have the tenant forcibly removed.
Take a deep breath and take comfort in that these extreme situations are not the norm. The “professional tenant” is few and far between. You can greatly reduce your risk by improving your due diligence before accepting a tenant.
Take the time to vet applications thoroughly. Pull their credit, call their references, ask former landlords to give their input on the applicant as a tenant. Do not let your rush to fill a vacancy push you to cut corners.
Working with a property manager can help you implement proper tenant screening processes. They will fully research a tenant for you to ensure that the best applicant gets chosen. Then, if the tenant refuses to pay, the property manager will handle the entire eviction process for you.
Responding to Constant Tenant Issues
With the rise in the number of renters, there are more people in the potential renter pool. Many of these people are young professionals who don’t have the knowledge or experience of caring for a home. This means that they don’t understand the common issues that can arise.
Fear not; this means that the majority of tenant issues are easily addressed. So while you may field more calls, very few of them will be significant issues. If you properly maintain your home and perform consistent and routine maintenance, then you shouldn’t have anything to worry about.
If calls for minor issues sounds like too much, then a property management company can solve this for you. Hiring the right management company means that you hand over the task of responding to tenants and addressing tenant issues.
Losing Equity
Many investors get nervous when talking about property investment because the vision of the mortgage collapse still haunts them. In just a few weeks, their rental home values dropped 40% and renters stopped paying. The likelihood of this happening again is slim to none.
Now, that doesn’t mean it can’t happen again, just that it’s unlikely. You should look at rental property investment as a long term investment. This means that instead of focusing on the value right now, you should be looking at the property’s value five, ten, or even twenty years from now.
Even the hardest-hit properties are recovering their value.
Rent Your Property Today
As you can see, the risks of renting your property can be mitigated, which makes investing in rental property a solid plan for your future financial security. Working with an experienced property management company will help you perform your due diligence. Our team will find the perfect application and then handle the task of collecting rent, responding to tenant issues, and maintaining the property.
Contact us today and let us help you rent your property stress-free.
