Making the decision to rent out your home requires a lot of research, consideration, and an understanding of the different challenges that may lie ahead. When you’re in the midst of choosing between renting or selling, there are few key points to consider. In the event that you decide to rent out your home, there are multiple benefits to reap as a result. If you are on the fence with deciding on the direction to go, here are some things to consider.
Let’s say you got a job offer that requires you to move. In the event that you plan on coming back, looking to rent out your home could be a great temporary solution for you. Particularly if you plan on coming back to the same area in the next couple years, renting out your home can help remove the complications of selling, while still providing a financial benefit for you. As an added bonus, you are able to wait out the housing market and avoid losing money. Even if you don’t have to move far, deciding to rent out your home can be a great way to earn extra income.
Property Value Growth
Though it’s a variable aspect, there is a chance you can gain property value as the demands in the area fluctuate, though the property itself may not change. Depending on the location of your property, there is a chance of increase, or a chance of the value remaining at a plateau. Keeping an eye on the inflation based on your area, best case scenario is the value of your owned property will hold pace with inflation at a minimum. If the area you’re in happens to be above the curve, it is possible to beat inflation. However, in the event of your property being located in an area where it is shown to be stagnant, there is a chance you will not be able to keep pace with inflation.
Moreover, some of the best benefits can come from hiring a property management company to help alleviate the stress of renting. Here are a few of the reasons you may want to consider entrusting your property into the hands of a professional.
Choosing tenants is one of the most tedious and crucial processes in the business of renting. Going through the details of screening, background checks, and notify vacancies, there’s a lot to cover and a lot easily missed. Knowing how and where to get the word out about your rental property, in addition to appealing to the demographic you’re targeting, is a lot to manage. Allowing a rental property management company to step in will remove the strain of sifting through papers, searching for ad space, and running multiple background checks. With both experience and understanding of the current market, property management companies can provide all the paperwork and processes necessary for potential tenants to fill out. Additionally, the chances of you running into a scam or legality issues is removed, as they are extremely common with landlords.
One of the major benefits of having a property management company is to help manage the upkeep expenses that come with a rental property. Especially if you do, in fact, live further away from your owned property, you won’t have the convenience to run to fix different problems. Often times, property owners have other full time jobs or careers, and simply do not have the time or flexibility to swing by if an appliance is broken. Being this is a crucial facet of renting out property, it’s highly suggested to hand over the responsibility to a management company. With a team of staff members designed to step in during emergencies, or even general upkeep, availability is no longer a going issue. Outside of being available for maintenance needs, there is also showings, application screenings, and contract signing that require a flexible schedule to tend to.
To add to the maintenance benefit, you also gain the staff they hire for any and all fixes on the property. When you choose to manage them yourself, you have to go through different companies that specialize in whatever fix is needed, and often times you end up waiting on their list and you have to pay more. Instead, using a property management company allots the time and saving of finances while adding to your peace of mind. Property management companies have direct access to licensed and certified professionals that are designed to be ready in the case of a maintenance emergency. As a result, you save both time and money.
Back to our reference of attracting the right tenants… Knowing how to and where to place ads during vacancies is a lot to manage. Here are a few points we broke down to understand what is necessary to do when looking at a vacant season:
- Prep your property – Ensuring all aesthetic bases are covered is a crucial aspect to renting a property. Curb appeal still has an effect on potential tenants. Property management companies not only understand this, but ensure details are catered to the liking of passersby.
- Determining rent – Simply put, this part of the renting process can be a difficult area to navigate in. With the housing market continuing to fluctuate, finding the sweet spot is mandatory. If your rent is too high, it’s possible that you will be stuck waiting on inquiries. If your rent proposal is too low, it could end up stripping your wallet. Knowing the proper balance of profit is a key to being effective in your management.
- Catching Eyes – Getting your property out in the open for others to see is potentially the most crucial part to drawing in the right tenants. Knowing how to present your property, both visually and verbally, needs to be done intentionally. Then comes the ad space. You will need to find places to market, and negotiate prices for the exposure you’re needing.
Each step is mandatory when you look into shortening any vacancy with your property. Due to the sheer experience of property management companies, you will have a lot more likelihood of your property being filled quicker.
While we understand tax season isn’t often looked highly upon, there is a benefit in renting your property. Writing off your rental property is a great beneficiary for property owners. Moreover, when you choose a property management company, you get to rid yourself of the paperwork and let them take care of it! Taxes are tedious and require specific pieces of paperwork, all of which they will have access to. To further benefit you, rental property management companies themselves qualify as an additional tax write off. No need to dread tax season any longer.
How you handle the financial aspect of a rental property can be the largest determining factor of success. It is necessary to have a consistent cash flow for you as a property owner as well as ensuring that the tenant is abiding by all laws. Choosing to give a property management company the responsibility of collecting payments provides a degree of separation that most people respond to well. This also allows a strict guideline to be set to ensure all facets of the policy are enforced.
If there is a situation where an eviction needs to be executed, allowing a company to handle all the legalities of the process will mitigate any potential issues you would face as a landlord. Due to the detailed and messy nature of an eviction, it’s possible for them to lead to lawsuits. Entrusting these processes ensures less stress on your end, and a confidence that all steps are taken according to the law.
Atlantic Properties Inc. is here to make your renting experience a breeze. We step in and help cover all areas necessary to ensure a successful experience for both you and the tenant. Our company has been working together since 1989, successfully managing thousands of homes. We have proudly served the Atlanta metro area since 2007 with licensed real estate agents. The team at Atlantic Properties are experienced and passionate about making the process enjoyable, and simple. Call us today for an appointment, or fill out the application for a free analysis. Atlantic Properties, providing world class service to landlords and residents.