Should I rent my home?

That's a question a lot of property owners are asking themselves in this market. Many people in Brevard county are facing the possibility of having to move to get a job, and do not want to sell their homes, at a loss, so renting may be a good option for them.  There are others, that are looking at taking a huge loss when selling their home, or worse even, being upside down and not wanting to face a short sale or a foreclosure, many of these are therefore considering renting out their homes.  There are many things to consider when making the decision to rent.  Renting a home is a business and requires experience, in order to make it a legal and profitable one.  Here are some things to consider: 

1.  First, you must determine whether being a landlord is an obligation you can even handle.  Being a landlord is one more responsibility you'll need to fit into your life, and it's safe to assume that things will not always run smoothly. You'll need to stay on top repairs and maintenance, collect rent, and be available for any issues your tenant may have.  
2. Is your property ready to rent? In this competitive rental market, perspective tenants are very choosy.  Sometimes, a good cleaning and some paint are not enough to attract a tenant to your property.   

Before listing your property, you should consider several things;

a. Will you allow pets?

b. Do you understand the liability to a landlord when allowing certain        breeds?

c.  Do you know what the market rent is? 

d. Can  you afford to rent your property at that price?

e. Can you afford to pay the mortgage while the property is empty? 

4.  Are you aware of your state and local housing codes? As a landlord you're required to make sure the property meets health and safety standards. If you don't take care of your end of the legal bargain your tenants may have grounds to break the terms of your lease, sue you and even to be legally entitled to compensation for damage or injury due to your neglect.

5. How will check the credit and background of potential tenants? this is one of the most important things a landlord must do, before accepting a tentant. 

6.  Are you familiar with Fair Housing?  Are you aware of the penalties for violating it? 

These are just a few things to consider, before listing your home for rent, once it’s rented, there are many things to consider as well.  I will be talking about those in a future blog post.

If you list you property for rent, with a property manager, you as the landlord will not have to worry about these things. Your property manager will be able to guide you through the process. 

 

 

What is property management?

When people ask me what I do, and I answer “I’m a property manager,” they often ask me what that is.  Once in a while, someone will kind of understand, but assume that I manage apartment buildings, and are surprised when I explain that I manage and list residential properties.  So I have to explain to them exactly what property management is.  So what is property management?   According to investopedia; “property management is: “the managing of property that is owned by another party or entity. The property manager acts on behalf of the owner to preserve the value of the property while generating income. Managed properties include residential and vacation properties, commercial retail space or industrial warehouse space. Property managers are typically paid a fee and/or a percentage of the rent brought in for the property while under management.”  In my case I work with residential properties.  Typically in residential property management, the leases are long term, at least a year. 

In Brevard County the typical monthly percentage for residential property management, is 10% of the monthly rent.  To earn this fee, the property manager usually performs the following duties:

·         Collecting monthly rent

·         Communicating with vendors, utility companies, home owner associations and/or condominium associations

·         Paying invoices for the properties 

·         Distributing payments to owners

·         Providing owners monthly , and a year end statements

·         Working  with tenants to resolve complaints, or implement requests

·         Performing periodic inspections of the property

·         Renewing and negotiating leases

·         Posting late notice if necessary

·         Initiating eviction procedures

There can be a lot more to it, depending on the owner, the property and the tenant, but that mostly sums it up. Tenant placement involves a whole other list of responsibilities and I will write about that another day. 

Welcome to my blog

My name is Cathy Wolters. I am the Broker/Owner for my own property management business; Wolters Rentals-A Property Management Company, LLC. I love working for myself. I love the freedom and the flexibility.  I enjoy my job so much, and the main reason is that it is on my terms. It’s hard to explain that sense of freedom to anyone who has never done it.  I started out in this business working for a huge company, then a small one and now working for myself, which has been the best experience of the three. I am grateful for all I learned at the other companies, but could never go back to that way of doing business. 

I have been blessed to work for and with owners that are easy to work with, and respect and trust in my knowledge and experience in the business. 

I decided to start a blog, to share some of my thoughts and experiences in property management.  I am also hoping to hear from others about their thoughts and experiences.  We can learn so much from listening to each other.