Owning property can be stressful. Whether you’re looking to temporarily rent out the home where you live or you own multiple properties and you would like to rent out some of them, allowing other people into spaces you own can complicate your life significantly. Today, we’re going to look at a few options that you have available to you and some of the benefits and downsides of each. Note that these options aren’t always all or nothing. Sometimes you’ll want to mix and match.
1. Hands-on via direct management
If you own a single physical location or properties close to each other, you may want to consider managing the properties yourself. In this case, it’s up to you to keep on top of leasing arrangements, tenants, and all the maintenance that needs to be done on your properties. In most cases, this option will need to be a full-time job, ideally one you’ve trained in advance for.
Without highly-specialized knowledge in local real estate law and regulations, the cost in terms of frustration and potential lawsuits can be considerable.
2. Hands-off via property manager
Most property owners choose to rely on a professional property manager to do the work for them. Property management companies handle the day-to-day operations of rental property while keeping owners updated on important news. For a fee (usually a percentage of rent collected), the property manager acts on your behalf, doing almost all of the work, including finding tenants, collecting rent and dealing with daily maintenance.
3. Temporary rentals such as summer/winter homes
If you’re looking to temporarily rent space such as for vacation homes, you may be tempted to use an online ad or word-of-mouth and hope for the best. Keep in mind that tenant law may apply in this situation, and that you may be responsible for any property damage and other problems caused by temporary residents. If you’re considering renting out real property for “just a few weeks” or days at a time, consider speaking to an expert familiar with local property law.
4. Empty space management
If you are juggling several properties, eventually you will end up with at least some spaces without tenants. Depending on the choices you’ve made related to property management, you will have additional options here. Without proper maintenance and oversight, an empty property can lose value fast due to vandalism and ordinary wear and tear.
Occasional visits when you have time probably won’t be enough, and you’ll still have to pay overhead like taxes and utilities. If you have a professional property manager, ask if you will be charged a small fee for empty spaces or if they will absorb the expense while they look for new tenants. In many cases, the property manager will absorb this expense for you while continuing to watch and maintain your property.
Owning real property can be stressful enough when you’re the one living in it. Unless you’re an expert in real estate law and practices, you probably don’t want to try to lease property on your own. Fortunately, you have options. That’s where property managers and property management companies like Accu Inc. can help.