Did you know that there are about 22 million landlords in the U.S.? If you own a second home, you may very well be one of them. Renting out your second home can provide a viable source of income that helps to cover things like property taxes, and energy bills when you?re not using your home.
The problem with renting out your home is that it can quickly become almost like a second job. You want to relax on your time off — not answer emails or panicked texts wondering where the coffee maker is, and could you send someone to take a look at the toilet?
For this reason, it can make a lot of sense to hire someone for managing your property. You?re not going to want to hire just any place to do the job, though. Here are three tips for finding a great real estate management company.
1. Know What Prices to Expect
Once you generate a list of potential management companies operating in your area, you?re going to want to contact them for quotes. In general, you can expect to hear quotes ranging from 5% to 10% of the overall rent revenue. If you charge $200 a night with a minimum 3 days, then a $600 rental fee, for example, will generate a $30 to $60 fee. In return, someone else will be handling all the details, as well as things like cleaning in between guests.
2. Renting Your Property: Make Your Home Marketable
A rental company is often going to be in charge of advertising your property, which is great for you: there?s a lot of work taken off your shoulders if you don?t need to constantly be looking for ways to advertise that you have a place for people to stay in. However, you?re going to need to do a bit of work yourself here to make your home marketable. If you have sofas leftover from 1998, it might be time for an upgrade; having an interior designer over to help rearrange your spaces can often be a onetime expense that helps to raise the amount you can charge for the rental over and over.
3. Understand Insurance for Property Management
When you?re managing your property, you?d like to believe that most renters take careful care of the place you call a home while they?re visiting. Not everyone is careful, though, and mistakes do happen, especially when people aren?t used to your particular layout. This is why it?s very important to make sure that if something happens during the rental period, it?s not going to be coming out of your pocket. No one wants to rent a home out for the weekend only to come later and discover a deep gash in the hardwood floor.
Do you have any tips for residential real estate investments, and choosing an appropriate rental company for managing your property? Let us know.
