The Importance of Hiring a Property Management Company

In this age of independence and mindset that one can manage on his own, it is inevitable that a property owner would think he will do fine on his own. Sure, you got tenants who at first, pay on time until gradually they won’t, some will breach the contract and lease terms, then they cause problems with the neighbors and other tenants, then slowly you will notice you are losing money and when you decide to evict the tenant, next thing you know, you have a lawsuit at your doorstep.

The reality is if you use the services of a professional property management company, not only do you have peace of mind, your investment is protected and the consistent cash flow you receive through rent can assist you to buy additional investment properties.

This is why you need the assistance of a property management company, but before that, we will determine the pointers on why it is important to hire one.

Determining the Worth of Your Property

The problem with inexperienced owners is that sometimes they get overwhelmed on how they price their property to the market: oversell and you have to deal with the high vacancy rate with no profit, undersell and you will realize you are slowly losing profit. This is where a property management company comes in, they will help you determine a balanced meal where you gain tenants and continue to rake in profit.

A property management company is also well-versed in marketing your property and placing ads where it will attract tenants. They will answer any inquiry and they know what entices a prospective tenant, therefore will help you point out some cosmetic improvements so that the tenants will feel that renting your property is worthy of their money.

Avoiding Major Problems with Tenants

Screening tenants would not be one of your problems anymore because the property management company will take care of it. They know too well how to check the background of the interested tenants, their criminal records, their relationship with previous property owners and if they have ever caused problems before. Think of it as helping you weed out the bad ones for a healthy and bountiful crop.

Collecting rents is the most common problem in renting out your property. When left to your own devices, having your tenants pay you on time will become a child’s play of hiding and seek between them and you as the property owner, certainly some tenants will tug at your heartstrings and gain your sympathy with the hope that you will let them get away with it. A property management company, however, will become the middleman who will ensure that the tenants abide by the lease terms and should understand that they are just doing their job for you, keeping your cash flow consistent.

Maintenance

When a tenant has reached the end of the contract, the grueling process of turnover will usually keep you busy as a property owner, but with a property management company by your side, that is another pile of stress that will be taken care of. Any deductions from the security deposit will be made and returned to the tenant, and the restoration process of repairing any damages, repainting, changing locks and cleaning the property would be done without getting your own hands dirty.

As a property management company, expect that they know the right people to contact should there be any problems with leaks, wiring, and plumbing experienced by the tenants and their dilemmas will be addressed promptly.

Saving Time and Money

A successful businessman knows that delegating tasks is key for a successful business so that one can have more time to deal with other business ventures. With almost everything being taken care of, it seems like the only thing left to do is to visit your property at a certain time interval and continue to rake in profit while having more time to spend it with your family, social life, other priorities, and investments.

IN CONCLUSION

Hiring a property management company takes care of the burden for you, especially if you are well aware that marketing, confronting tenants with late payments and handling maintenance are not your strongest points especially if managing your property is not the only priority you have in your busy life. Therefore delegating this task to a reliable property management company may just be one of the best decisions you have ever made.

Green Homes for Sale

If you were looking at real estate ads and saw one that stated “green homes for sale”, you may at first wonder why anyone would a listing stating the color of their home. This is not what this type of ad means. It is just stating that the homes for sale are earth friendly and energy efficient. Green homes for sale are being built in an effort to less the carbon footprints we leave behind.

When you purchase a green home they will contains all or some of the following features that are earth friendly.

• Fiber cement siding
• Alternative power system like wind and solar
• Recycled building insulation
• No VOC stains and paints, which stands for volatile organic compound. It is any compound that is carbon-based and will vaporize at standard room temperatures. Some of the more prevalent ones are formaldehyde, acetone, and methane.
• Solar powered hot water heating

Even if you do not live in a green home, there are things that you can do to increase your energy conservation. It will even help contribute to saving our environment. Making your home a green home can help to reduce global warning and save the homeowner money. It will significantly better the environment and require little effort for the homeowner.

Making a green home

• Instead of using the standard incandescent light bulbs start to use compact fluorescent light bulbs (CFLs). When you switch to the CFL’s you can save per year over a hundred dollars. You can find these lights in the same aisle as your regular bulbs but they are little more expensive. In the United States, if every house switches the type of light bulbs they were using to CFL’s there would be a reduction in greenhouse gas emissions of one trillion pounds.
• Install a thermostat that is programmable-with this type of thermostat the homeowner can program the thermostat so that the air conditioner or heater is off when homeowners are not at home. The programmable thermostat can be programmed so that it will cool or heat your home shortly before the homeowner arrives home. This change could save the homeowner ten percent or more on cooling and heating costs
• Plug air leaks-this will help the homeowner save money and practice conservation. You can do this by installing weather stripping, keep the temperature in your home from rapidly fluctuating, and caulk windows correctly to stop air drafts.
• Energy Star® rated appliances-these reduce the amount of electricity that is needed to operate them so they have less of an impact on the environment. They will also save on your energy bill.

Tips for New Residential Construction

The process to entitle lots can take more than five years and is expensive. The cost of parcel maps for five lots or less is $100,000. Tract maps for more than five lots can cost more than $500,000. The number of lots and the potential size are determined by biology, health-department regulations, slope, and the zoning and general plan. Included in the cost are engineering, processing, and regulatory fees and various reports and studies.

Reports and studies include conditions of approval costs, storm-water treatment, anthropology and archeology, soils, biology, noise, and traffic. When a map is approved and recorded, there are additional fees that include, but are not limited to the following:
• Potential greenhouse gas studies
• Retention and drainage basins
• On- and off-site mitigation land
• School fees
• Parks and recreation fees
• Physical secondary access
• Fire fees
• Annual bonding fees.

Politics comes into play when obtaining the required approvals from county boards, city councils, and planning commissions. The level of public opposition or support affects hearings completion. They can be completed in as little as four months, or take years and cost over a million dollars. Property owners have three courses of action to take into consideration.

1. Entitlement and sale of the property ‘as is’ – This option brings the lowest price, but costs the least and requires the shortest time for property disposal. Under rare circumstances, the land is worth more when it is unentitled.
2. Enter into a long-term agreement – The agreement is made with a home builder who incurs the expenses of processing a tract map. This option is the most utilized. The process could take up to five years. The buyer is required to release nonrefundable deposits periodically to the seller after approving their contingencies. Escrow closing typically occurs after tentative or final map approval.
3. The owner incurs the entitlement costs – Much of the process is like option two. The difference is the owner has full control of the mapping process and bears all expenses.

The ramifications of each choice should be weighed carefully before making a decision. Owners, who have chosen not to seek advice, have made the decision to process a map and found out later the number of lots was not financially feasible. A competent engineer can determine the optimal number of lots that can be obtained and approved. Smart growth design principals call for buildings with a variety of materials, texture, and color and individuality; well-defined open space; a building and street relationship; mixed uses; and high-density development. Contractors, who specialize in residential subdivisions, can give realistic cost estimations.

The process of entitling residential property to higher densities is costly, complex, and cumbersome. Many factors must be taken into consideration. The leading concerns that communities have about increased density are the quality of life and increased costs.

There is a need for new affordable housing to reduce recent overpayment and overcrowding. There is also a need for high-density housing that supports economic recovery, accommodates new workers and their loved ones, and economizes the costs of infrastructure. It is quite a balancing act. Open spaces need to be conserved and the distance between new jobs and new homes reduced.