If you own a rental property, then you have probably been faced with an unexpected vacancy which you would like to fill quickly with a quality, long term tenant. With vacancy rates the lowest in years, property managers and landlords are receiving more and more applications for vacancies than ever before. But what do the best tenants look for when deciding where to live? As a property manager operating in Cleveland, Akron, Canton and Youngstown, I have found that tenants are like all shoppers: they want “the mostest for the leastest.” If you want the best tenants, then be sure to present your rental property in the best possible light.
If you have ever considered purchasing a single family residence for the purpose of renting, you have more than likely heard from others how profitable it can be. But investing in real estate can also be very scary. As a real estate investor and a property manager operating in the northeastern Ohio cities of Cleveland, Akron, Canton and Youngstown, I have found there two variables under your control which impact profits more than others. The first variable, your initial investment, is something everyone considers and I won’t spend too much time discussing since everyone seems to understand the “buy low” concept. But the second variable, your property management expenses, is generally underestimated by numerous investors.
If you live in an area where the real estate prices of investment properties are well above the median, say like California, Florida or Massachusetts, you may have thought about investing in real estate in other areas of the country. Areas such as Cleveland, OH where the median home value is below the national average, may provide you with excellent opportunities to expand your portfolio with profitable rental properties at a significant discount compared to where you live. However, before you invest in out of town deals, you should consider what it means to manage property in a place different from where you live. As an out of town landlord you will face the following issues:
If you are a rental property owner, you understand how successful rent collection greatly impacts your profit and loss statement. Unfortunately for you, not everyone you deal with as real estate investor puts the same weight as you do on the rent collection process. Not everyone understands that you, as a landlord, have bills to pay long before you ever pay yourself. But the way you handle rent collection and late fees may be the difference between a profitable portfolio and a dead loser.