In this age of financial problems, an increasing number of people are looking at investing in real estate in order to make money rather than investing in the volatile stock markets. How many of these people invest is to buy properties and then rent them out. As properties become more expensive, people look to rent rather than buy property and so provided that the property you buy is maintained to a good standard, you should not have too much problem finding someone to rent it, ensuring you get a regular income from your investment.
Although this may be a good way to invest money in order to eventual make a handsome profit, unless you know all there is to know about renting out properties, you should consider hiring a property manager to take care of your investment for you. A property manager, certainly a good one like John Hausam of Tulsa, is more than just someone that collects the rent each month as they also set the rental price, maintains the building and vet those people that want to rent. If anyone of these things is not done right, it could jeopardize the ability for the property to be rented out.
For instance, if the rent is set too high, you may not get tenants, if the rent is set too low, you may not make a profit or if the property lapses into a state of disrepair, tenants may leave. All this plus the fact that the property manager is responsible for collecting the rent makes a property manager invaluable to any property investor.
Of course property managers do not work for free but their costs are worked out into the price of the rent ensuring that you will make a profit and also included in the price of the rent is an allowance in case the property lies empty for a couple of months however, no one can allow enough for a property to lie empty for a prolonged period of time and hence an element for the building’s upkeep is also included.
Most property managers use a basic formula for working out rent and it will usually fall on the same property manager to convince any potential tenants that the price is reasonable, as they will be the ones showing them around and they will have been the ones to ensure that the property was in a good state of repair and cleanliness before they showed the potential tenants around.
Property investment is a good investment then, providing that you hire a professional property manager to look after your investment or you may end up with a property that cannot be rented out and your investment just stands there possibly even decreasing in value unless you invest even more in keeping the vacant property in good condition. Of course there are those investors that buy property; hold on to it till it increases in value and then resell it however, they too may just as well rent it until the market price improves.