Dependable Homebuyers, a national home buying company, recently published an article on their blog regarding the management of rental properties. The article teaches property owners, many of whom may not have much experience in the field, how to manage rental properties.
Property Rentals have always been the easiest, most practical, and sometimes most profitable form of real estate investment. Managing them is extremely important, as a mismanaged investment can wind up being a liability when it could be making the owner a large amount of money instead. In light of this, Dependable Homebuyers’ article is aimed at helping property owners manage their assets better.
“It is every landlord’s dream to earn profits from property rentals, but it is not always the case,” states the article. “The main reason for this is very obvious: landlords whose property rentals are still vacant are basically not doing it right. Erin Eberlin of The Balance Small Business enumerated the reasons why a landlord’s property rental is still vacant and not earning money.”
Failing to find tenants can be discouraging, and can make a property’s owner question their decision to even attempt entering the rental market in the first place. Often, owners either attract the wrong tenants or don’t attract any at all. Dependable Homebuyers’ article suggests a few reasons why they might find it difficult to attract the kind of tenants they want. Read the article in full at https://www.dependablehomebuyers.com/blog/having-problems-with-your-property-rentals-maybe-you-are-not-doing-it-right/.
Overpriced units, for instance, can discourage prospective tenants from coming to view the property at all or push them toward cheaper alternatives they may have seen previously. Leaving the price as is can result in a property making a loss over time, as nobody will take up the offer—while the owner still has to pay all the costs associated with owning a piece of property, including taxes, insurance, or the mortgage. Lowering the price may mean one makes slightly less, but keeping the price at a fixed point and being inflexible may mean nobody ever actually takes the offer. This is considerably worse than renting it out and making a bit less than expected. The third option is to add something to the apartment to make it more attractive, and thus worth the slightly higher cost.
Another potential obstacle for those looking to rent out a piece of property is often the security deposit that it requires. A security deposit that is too high may discourage people who are looking to rent the property. Many states put a limit on the amount one can charge their tenants, but many do not, and so there may be nothing to stop a property owner from imposing hefty security deposits which then discourage tenants from coming to stay.
These are some of the reasons one might not be able to find tenants to their property, according to the article. “Landlords must figure out these things in order to attract potential tenants to the property,” it says, continuing, “If the rental price is a bit higher than the competition, lower it to match the average rental prices. Lower the security deposit as well for tenants who get turned off by a much higher security deposit. Study the property rental market to understand how the profitable landlords have done it.”
Location can also play a big part in the attractiveness of a piece of property. Some locations, such as bad neighbourhoods, greatly discourage people from renting there. When buying a piece of property, it is important to pay attention to where exactly it is located and whether or not it is likely to attract the right type of tenant.
Dependable Homebuyers is a company that quickly buys houses from property owners at a good price. Instead of going through the process of finding a realtor or trying to sell the house on their own—a difficult and expensive process—property owners can contact Dependable Homebuyers for a quick and easy way to sell their property. A number of property owners who have previously worked with the company have left positive reviews of their services. One client says, “I was originally sceptical, until I spoke with Evan over the phone. I should have called sooner! They provided me the best option for selling my home and I couldn’t be happier!” Read more about Dependable Homebuyers in a press release online.
SOURCE: Press Advantage [Link]
Dependable Homebuyers is a local home buying company in Maryland. We buy houses in any condition and any situation. If you want to sell your house fast, give us a call at (443) 219-8331 and we’ll provide you a cash offer within 24 hours.