The basics of property management are simple and complicated at the same time. It’s simple when you already know what you want. It gets complicated when other issues advance, like profits and security. As a property owner, you want to provide a great service to your investors.
Having a strategy should make a huge difference. Think through how you’re going to manage the tenants, which ones are buying and which ones are renting, for example. Managing finances and insurance. They’re no joke.
Real estate and property management are also advancing with technology. The rental market is growing nonstop as well, making the industry securely advance in the stock market. While landlords are finding all possible ways to keep their services at high, investors are looking whether to approach this in the traditional way or the tech-enabled way.
Comparing the two, traditional property management uses guaranteed ways to show the house to the market. This includes in-person property tours and on-site applications. Going back and forth, house to house, to examine everything. On the other hand, tech-enabled property management involves accounting management, owner disbursements, scheduling meetings, computer-based applications, and 24-hour customer service.
Renter and Owner Experience
Poor management is a reason residents don’t carry on living on a property. If renters are happy, it can lead to higher chances of renewals. Providing them with easier accessibility to pay the rent, improved application and leasing experiences, such as mobile-friendly websites and high-functionality portals, although many companies charge an excessive fee.
Potential renters or future owners should be able to explore listings with less worry and frustration. Allowing them to view floor plans and the option 3D imaging.
As the owner of the property, you look for a decent customer experience from the real estate or property management services they work with. They may demand updates and answers if something goes differently than they expect. After all, a rental property is a high-value investment that can be very expensive to fix.
This is where a tech-enabled approach comes in handy, giving the investors peace of mind through transparency. Using cloud storage, where both realtors and investors see all centralized data and when it changes.
The best at providing an excellent residential experience results from years of experience in the real estate and property management industry. Nowadays, they should be also catching up with the advances of technology to further improve their services.
First-time renters or owners reach out for advice from experienced property managers and realtors. Having a real estate education and license and experience increases your trustworthiness and credibility.
Rental Choice: Furnishing the Property
If you decide to have your property rented out, one decision you should think through as an owner is whether or not to furnish the house or apartment. Being a part of brainstorming about what kind of rental property you could be for a better residential service provider.
The upside of furnishing the place, the number one advantage, is you could rent it for a higher value, which means higher income as well. It can increase your rate up to 20 percent, security deposit aside.
It promotes quick move-in for tenants who are not planning on staying long. Not only you could high up the security deposit, but tenants won’t have to have the hassle of moving so much of their stuff. It diminishes the need for them to rent a moving truck, which can be such a pain sometimes.
The downside of furnishing the property is, foremost, it costs way more. Aside from simply choosing pieces of furniture, you should also consider interior design for it to have the highest appeal to potential renters. Not to mention the replacing and repairing any kind of damages.
Rental Choice: Not Furnishing the Property
For one, tenants will have a sense of home and comfort, which can more likely lead to longer and more consistent tenancy. This will also make your income more stable. Aside from that, this costs way less and promotes assurance and stability. You will have lower insurance and maintenance costs and less management and worries.
On the other hand, you will have lower rental rates since you have no reason to up it. No fancy furniture or interior design. When renters move in and out, damages and accidents occur. Fixing these can cost more than the security deposit.
If you’re not planning on furnishing, another way to increase the value of your property is home automation. High technology such as smart door locks and doorbells, smart blinds, and smart thermostats. Having just one or two will do so much.
Rental properties can be a significant investment for renters and provide monthly profit to owners. Every investor and owner is different, having different goals and preferences. Being provided with choices should be that difficult to commit to.