Erickson Realty Group

Treat Your Rental Property
as a Business

In a perfect world, buying, selling, and/or renting property, everyone treats a rental property simply as a business process. However, as everyone knows, the world is far from an ideal place. Personal attachments, maintenance problems, and tenant difficulties can turn an investment into an emotional morass. It is important to develop an objective attitude that will help you cope with the more stressful aspects of owning rental property.

Did you make a conscious decision to purchase investment property? If so, be realistic about rentals and projected expenses when doing projections on any potential investment. Inflated figures will not help if the economic market does not cooperate. It is important to expect a reasonable vacancy factor when owning a rental. Remember that in most cases the property is a long-term investment and that the expenses are tax deductible, increasing the bottom line or return on investment (ROI).

Did you become a landlord because you must rent your home rather than sell because of a poor economic market? This can make it more difficult to view your personal home as a business investment. Make a special effort to think of your home now as a "rental property" and view it from the perspective of a potential tenant. Even while you were living in the property, it required maintenance and repairs.

Review these ten good practices for all property owners/investors.

  1. Treat the property as a long-term investment even if you do not plan to keep it long-term - you never know what will transpire.
  2. Be aware of legislation and legal practices that affect your rental property - ignoring them can mean losses to your bottom line.
  3. Always be realistic about the current market and rental prices - this can reduce vacancy time.
  4. Practice preventative maintenance - this can reduce or eliminate major repairs and maintenance.
  5. Plan for long-term maintenance - properties have life expectancies on all major components of the property, such as roof, paint, heating and air units, plumbing, and more. Eventually these systems will fail and/or deteriorate.
  6. Be prepared for all types of emergencies - tenant problems, maintenance, or natural disasters. Maintaining a good rental insurance policy is a big key for that preparation.
  7. Do not rent the property "just" to generate income - wait for the right tenancy. The wrong tenant can generate many unwanted expenditures and headaches.
  8. Remember that even the best of tenants can have problems that can interrupt the payment of rent. It is important to remain objective and fair instead of reacting emotionally.
  9. Use professional services when necessary - maintenance, accounting, legal, and more. This expense can reduce liability, aggravation, and unnecessary expenses.
  10. Consult with your property management company regularly and discuss any concerns you have regarding your investment.

Take the time to develop a "business" plan for your investment. Review long-term expenditures and plan when and how you will handle them over the period of ownership. This should include good insurance coverage, a savings plan for maintenance/emergencies, and professional services when necessary. This preparation can help maintain a business attitude when any stressful event occurs.

As your management company, we can assist you with realistic rental prices, maintenance expenditures, professional services, tenant problems, legal issues, and any other services required. Our support will help you to maintain a "business" attitude for your investment.


Our Associations

Associations


Summer 2012

Contact Us

Erickson Realty Group
3120 N. Arizona Avenue, Suite 102
Chandler, AZ 85225

Website
EricksonRealtyGroup.com

Bus: (480) 497-1090
Fax: (480) 497-2038
Toll Free:(866) 497-1090

Office Hours
Monday-Friday
9:00 am-5:00 pm
Saturdays by Appointment

 

Serving You

Dianna Erickson, RMP®
Designated Broker

dianna@ericksonrealtygroup.com

Skip Erickson
Property Manager

skip@ericksonrealtygroup.com

Wally Erickson
Property Manager

wally@ericksonrealtygroup.com

Brett Erickson
Property Manager

brett@ericksonrealtygroup.com

Rosie Olson
Receptionist

 

Additional Services

Thinking of buying or selling? Just call and we will have an agent contact you to help with your Real Estate needs.

Looking for management elsewhere? You, or someone you know, may need a property manager in other states.  Because of our proud affiliation with NARPM we have contacts throughout the country and may be able to assist you.

 

Announcements

Check Your Insurance.
Events can happen - flood, extreme heat, earthquakes, fire, and more! It is important to check your insurance to obtain the best coverage possible and ensure that it is current. Review now with your insurance agent before a disaster/emergency occurs.

If An Emergency Occurs
If an emergency situation occurs, please be patient and avoid tying up critical telephone lines and our time.

Our first priority during any emergency is to handle the situation, taking any necessary measures for the safety of your property and your tenants. Then we will contact you as soon as we are able.


The material provided in this newsletter is for informational and educational purposes only. It is NOT legal advice.
Although we believe this material is accurate, we cannot guarantee that it is 100% without errors
.

 

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