Real estate is one of the best investments you can make. Did you know that over the last two hundred years, 90% of millionaires made their fortunes by investing in real estate? Whether you are just starting to build your real estate portfolio or are a seasoned real estate investor, you likely are too busy to take care of your properties on your own.
This is where a lease management company can come into play. An honest property management company can handle the entire process for you while charging you a fair amount. If you want to learn more about how this can benefit you, read on for property management 101.
What Is Lease Management?
A lease management company, like Nomadic Real Estate, handles the leasing process for you from start to finish. They handle the marketing of the property (including taking photos and/or virtual tours or videos of the property), show the property to prospective tenants, conduct credit and background checks on prospective tenants, and handle the lease signing and execution of the lease. Many companies will also conduct a market analysis to help you determine the amount of rent to charge as well.
Most leasing companies will charge you one month's rent to handle the lease management (for example, if you are renting your property for $1500 a month, you will pay that amount to the property management company as a locator fee).
How Does It Benefit Me?
If you have multiple rental properties (residential or commercial) think about the amount of time it would take you to handle the leasing process. First, you have to do some research on comparable properties and what they are renting for to determine what you should charge. Then you'll need to take photos and/or videos of the space, create an attractive listing, and figure out where to market it and how.
Leasing companies, on the other hand, have experience doing this and employ people who do these things on a regular basis. They can likely handle the marketing much more efficiently than you can. Beyond marketing, you then have to show the property to prospective tenants, taking up more of your time, and find a service to run a credit and background check, which you will have to pay for.
Then, you'll need to find a lease you want to use, execute the lease, and make sure that the tenants get a copy. Do you really have the time and the desire to do all of this? Just because you can do something doesn't mean you shouldn't just leave it to the pros!
Ready to Find a Lease Management Company?
Are you convinced that lease management is the way to go? Ready to find an honest company that will find you great tenants? Don't spend another minute stressing out about managing the rental process. Let an experienced lease management company handle it all fo you.
If you found this article useful, be sure to check out some of our others for all of your real estate, landlord, and property management needs.