decision on whether to manage their own rental property or to outsource it to a professional residential property management company is a personal decision that only you can do. Two important aspects of owning and managing property is to know how to properly screen tenants and develop adequate knowledge of property law. Let’s look at both of these very important issues
Tenant Screening -. When a potential tenant submits an application for housing for you, you have to make a decision on whether or not you want to rent to them. A hundred years ago you might be able to make decisions based on gut instinct, but you can not rely on instinct or hunches, if you want to maximize your chances of a positive experience with the tenant you do not know.
As an individual real estate investor, you have limited information at your fingertips. Although you can call past and present employers, landlords, and other references, which is not necessarily paint an accurate picture of what kind of tenant you will get if you choose to rent them.
Because information is power, you will want to get as much high-quality, detailed information about potential renters as you can to reduce your potential liability in the event that something unexpected happens. For example, what do you do if it turns out that your “good renters” is a pedophile or a rapist? Can you afford a lawsuit from other tenants if something happens and you get sued?
There is a plethora of information available in various computer databases, but if you do not know where to look, it is useless. In addition, as an individual you may have difficulty running criminal background checks, credit checks and other checks ads. A professional residential property management company can complete these checks very quickly and easily, and is well versed in the best ways to go about obtaining this information
Property Law -. You’re not a lawyer, but you almost have to be in order to understand the myriad of laws, rules and regulations pertaining to the way you manage the property. Federal, state and local laws vary and change regularly. Only some of the laws that affect you and your property are Americans with Disabilities Act and the Federal Fair Housing regulations. Ignorance is no excuse in the eyes of the law, so if you run afoul just one of these laws, you open yourself up to being sued by the tenant, or be fined governmental Regulatory Agency -. Or both
Do you know if the property has to Wheelchair Ramp or safety rails? What about the rules for the wiring? There are hundreds of laws, rules and regulations that directly apply to you and you are expected to comply with all of them at all times.
You can learn these different rules, but they change so often that it can be a full time job just staying on top of all the changes. If you are not consistent, there is always a lawyer willing to file a lawsuit seeking money from yourself for daring to violate the law.
if you are not able or willing to be “hands on” landlord, residential property management company can provide knowledge and expertise to handle and sort out all these rules and regulations and keep you in regulatory compliance.
Prices are reasonable and you will rest easier knowing that heavy lifting is performed by knowledgeable professionals who have an interest in seeing that you are in full compliance with all rules and regulations.
Copyright (c) 2008 Michel Lautensack