Manage your business rental propertyCan be a great source of income in today’s economy.
According to the U.S. Census Report 2010, a third of all households rent their houses. In large metropolitan areas such as New York or Los Angeles, that number may rise up to two-thirds.
There is a steady demand for rental properties, so it’s not surprising that people are interested in investing in real estate. However, property managers need to be aware of several things if they want to make a profit.
To ensure that tenants have reliable income and pay their bills on time, landlords must screen potential tenants. Your primary goal is to keep tenants happy and still run a profitable business once you have secured them. You can easily track any problems by keeping a written record of all exchanges between tenants.
It is important that all properties have basic living conditions. This includes adequate weatherproofing. They must also adhere to the state regulations for electrical wiring and ventilation. It is the responsibility of landlords to make repairs. It is a good idea to build relationships with local contractors in order to keep tenants satisfied and your property in tip-top shape.
Even with the additional income from rent, property management can be expensive. Many property managers are losing a significant amount of money every year by failing to take advantage of tax deductions. While insurance costs, repairs, and independent contractor wages can all be fully deducted they are often overlooked. Landlords should keep detailed records to track their income and expenses. However, many don’t have the time.
This issue can be addressed by hiring a bookkeeping company to handle the bookkeeping. On-call accountants (www.oncallaccountants.com) is one such company that specializes in outsourced accounting, financial reporting and consulting for small and mid-sized businesses. Property managers can increase their profits and have minimal hassle by outsourcing this work to experts. You can find out more about On-call accountants at www.oncallaccountants.com www.oncallaccountants.com.
