Orange County Property Management Companies say, when you manage rentals from long distance, it can be a challenge. In order to be successful in property management, you have to have a solid team on your side.
Positions To Fill
Orange County Property Managers say, the following roles should be filled when setting up a property management team. A local broker is necessary, this is likely to be someone who understands the market and can provide a unique insight with data.
Three Positions To Fill:
- Local property manager — someone understanding the ever changing market and knows how to change with the market.
- Attorney — they’ll be able to draft and review your legal documents.
- Due diligence team — this team is for inspections of the entire property and find certain flaws that you otherwise missed.
Sub Markets Flux
Orange County Property Management Service Providers say, every major city has a ton of sub markets. Managing remotely though, is tempting because you can use the same techniques rentals in other cities use. Although, at times this causes some to miss out on trends within their rentals’ own locality.
When it comes to larger properties, the chances of missing out from a small mistake is amplified. This means when undercharging only $45/month on 100 units, this translates to $54,000 in lost income each year. This has a 4 percent cap rate, that is $1.35M in value that is lost. Residential dealings is an investors biggest fear.
At times, this fear drives investors not to pull the trigger on a deal. This can happen if you don’t give the tenant an extra week to pay the rent, if you don’t raise the rent or not charge for damages when the tenant moved out.
Looking For A Maintenance Team
Orange County Property Management Companies say, maintenance will be the most time consuming and expensive part of owning a property investment. Maintenance at times is the reason residents move out. A bad maintenance experience is enough to motivate a tenant to shop around for an alternative location.
When you have to pay and advertise and re fill a vacant unit, this is much more expensive than hiring a handyman to fix something fast. When you rely on a tenant to take care of your investment, maintenance can be costly.