Rental income is the bread and butter of a landlord’s finances. If the house isn’t bringing in enough money every month, the landlord’s efforts will all be for naught. When a landlord does their job well, they can see a substantial return on their investment. Below are issues for landlords to review, and questions for them to ask of a potential Tenant Service in Lakewood WA.
Determining Rental Rates
Maximizing rental income is equal parts science and art. For a property management company like Crown Properties Inc to achieve such a goal, they should know the local real estate market, and they should research comparables that have recently been rented. Charging 1% of the property value in rent is a good rule of thumb, but it’s no substitute for thorough research and current data.
Including Contractual Escalators
A contractual escalator allows a landlord to raise the rent without negotiations, notice or explanation. If the tenant agreed to it upon lease signing, it shouldn’t come as a surprise, and tenants can be very grateful if the rate hike is not enforced.
Collecting Rent
If a property management company offers automatic billing for tenants, the process can be simplified. By having fewer checks to process, landlords can save time and money while improving cash flow. An automated payment system can eliminate delayed payments and financial oversights.
Dealing With Delinquent Payments
Landlords should find property management firms with reasonable but firm processes. If permitted, tenants will continue to delay paying rent; it’s important for all parts of the lease to be enforced. By identifying tenants who tend to pay late, the Tenant Service in Lakewood WA can help them stay on track. A stringent collections process can only be balanced with quick responses and quality service.
Late Fees
While late fees are a substantial source of income for some landlords, their primary purpose is to keep tenants on track. Property management fees can range from 5-10%, and some add a small daily surcharge so tenants get caught up as soon as possible. Theoretically, late fees should reflect the penalties paid by a homeowner who’s late on their mortgage. You can also Like Crown Properties Inc on Facebook.
