There are many reasons why people to choose to rent out homes. Many simply find themselves unable to sell their homes on short notice and at the same time in need of a move. Therefore, they end up moving in to their new houses and renting out their old ones. They might have the intention of moving back in to the homes they’re renting out someday. Some also rent out their homes because they can’t sell them, and feel that renting is the next best option. For some people, however, renting out a home is not a secondary option but the primary one. These people buy properties with the exact intention of renting them out. Rental properties are valuable sources of income; for some people, they’re their only sources of income. In this case, people need to strike while the iron is hot and pick properties that will perform well with potential tenants. Therefore, many are pursuing apartments and condos, buying them to rent out. The condo and apartment industry has always been strong, and it’s only expected to grow. In fact, it’s expected that by 2017 this industry will generate an annual revenue of around $42.9 billion. But people can’t be expected to rent out their properties on their own. This is why property management companies exist. Let’s look into why many owners of rental properties turn to property management companies rather than dealing with their properties on their own.
1. They Deal With Utility Issues
One thing that all property owners need to worry about is how well utilities perform. While tenants pay for utilities, when there is an issue with things like pipes or electrical wiring, it’s the responsibility of the property owner to make sure any damage to a property is mended as soon as possible — otherwise, tenants are losing money. You see, utilities are a part of the value of a rental property. It’s estimated that insurance, utilities, taxes, and upkeep make up about 3.25% of a home’s value. This goes not just for houses, but for apartments and condos as well. The more units a property has, of course, the more maintenance costs — if a property has five or more units, the average spending on maintenance and repair in 2011 was $50,802. A property management company ensures that maintenance is taken care of quickly and efficiently. Therefore, you need to spend less time on worrying about maintenance and utilities and more time focused on other things. For that matter, property management companies make sure that issues are taken care of before they become bigger and more expensive.
2. You Can Live Remotely
A condo property management company ensures that you can indeed live remotely. This may seem like a strange thing to think about — until you own a rental property. If you have to deal with all of property’s issues by yourself, you have to go to see a property in person. This means that you can’t live far from the property for the long term. If you employ property managers, you’re able to live wherever you want and not worry about being ruled by your rental property. This is a particular concern for those who want to rent out condos, as they’re often located in ideal retirement or vacation communities. This is where specialized condo management companies come in.
3. You Can Own Multiple Properties
When renting out a property, you often have to worry about one thing at a time. This in turn means that, should you be entirely self-reliant, you have to focus on one property at a time. Rarely can you rent out more than a few properties at once. However, those renting out condos or apartments make the best possible profits when they have multiple units — perhaps five or more. You can’t handle all of these units on your own, even if you do live close to them. A property management company handles this — and many other concerns — for you.