One thing that a lot of new property investors overlook is the benefits that using a property management company offer them. Maintaining a rental property can be quite tedious, and as a new owner, you don’t want to be responsible for all the issues that could be present in the house or angry tenants who may refuse to pay rent.
Some people think hiring property management is a waste of money, but the benefits far outweigh the expenses. Here are some reasons why it is worth leaving your rental property to a property manager to handle:
1. More free time
Hiring a property management company ensures that you get your time back from keeping an eye on your rentals. Property managers do all the heavy lifting so that you can get more time to enjoy the returns of your investment.
2. Marketing and advertising
Property managers will help you advertise and market your rental to prospective renters at competitive and profitable rates. Instead of spending your time posting classified ads online and in papers, a property management company does all this for you as part of their services.
3. Tenant maintenance
Your property manager helps you to handle tenants they do not want to pay rent, are difficult to other tenants and generally constituting a nuisance. Let your property manager handle all the crazy parties and disturbance calls for you, leaving you to face more important things in your life that require your attention.
4. Collecting rent
Property managers usually have a foolproof system of ensuring that rent is paid monthly. They also have the responsibility of chasing up with late payments and non-payments. In the event there is a rent increase, they also help work with tenants to explain the rationale and ensure that payment options like direct debits are updated. Lokahi Properties in Kona offers free online rent payment options for tenants.
5. Market appraisal
One important benefit of using a property manager is that you will not lose money by underestimating the amount of rent to charge weekly. A property manager helps to keep an eye on the market and keep your property rent competitive so that you can always maintain occupancy.
6. Tenant contracts and legal agreements
It is important to protect yourself from liability by having tenants complete their lease contracts correctly. A clear contract indicates all the responsibilities of the tenant and the property owner. New property owners sometimes overlook this part which could lead to issues in the future. A property manager helps to ensure that everything relating to agreements are completed and filed in case it is ever needed.
Getting the best out of your property will require spending time working on it, time that you could be spending with your family. Lokahi Properties property management in Kona is the recommended way to go as it allows professionals to handle all things related to your rental property, leaving you to enjoy the benefits. At Lokahi Properties, we give personalized service and treat your home like our own home.
Every year, landlords need to consider the pros and cons of raising the rent on our tenants. Sometimes it’s clear. If they paid late or were difficult, we raise the rent. But many of our tenants are amazing, so it’s a difficult decision. Do we risk losing a great tenant by raising the rent?
Here are three important considerations when deciding whether to raise the rent.
1. Is your rental at market value?
On the Big Island, rentals are hard to come by, and rents are high. However, rents are high because of all the costs associated with renting out your home. There are property taxes, insurance costs, landscaping, and repairs and maintenance.
Landlords all know that finding new tenants is never a fun process. However, if you haven’t raised the rent in a while, chances are the market value has increased. Is your rental way below other comps in the area? You have a few choices for learning the market value.
There are rising costs with any rental property. Taxes go up. Insurance premiums may increase. Upcoming maintenance needs might be expensive. Here on the Big Island, you may need to take action against invasive pests, such as termites. Take all these things into consideration before renewing a lease at the same rent.
If you are making a profit and have a great tenant, it is probably best to leave the rest as if. However, you should not lose money on your own rental, so if you are not making a profit, it is best to raise the rent.
3. Are you able to raise the rent without losing your great tenant?
It is a delicate process to raise the rent. Some things to consider are trying to keep it under comparables in the area to still give your tenant a benefit. Provide at least 45 days notice, a law here in Hawaii. The most notice you can give, the better. Be kind in your communications, and let your renter know of your rising costs and that it is not just an arbitrary rent increase just for the sake of getting more money out of the renter.
There are times when rent increases are inevitable, but if you can do it the right way, you can likely keep your great tenant.
Dana Kern is the Principal Broker at Lokahi Properties