Investing in real estate, especially residential real estate, can reap you a good return on your investment. According to Investopedia, the average return for residential real estate is 7.5 percent. While this is less than the 9.5 percent the S&P 500 Index averages over 10 years, every smart investor knows it's best to have a diversified portfolio.
Additionally, real estate investors who "flip" properties by buying a bad house in a good neighborhood and renovating it can make much more than the average. Rather than sell after flipping, some investors are more interested in long-term investments. These investors decide to rent the properties instead, knowing their properties will continue appreciating over the years, reaping an even better eventual return.
Unless you plan on turning your real estate investing into a full-time career and are extremely handy, taking care of your investment properties will require additional assistance. One option is contracting with a property management and maintenance service. Here is a look at some of the services these businesses offer.
Emergency Property Maintenance
Things rarely break down during the convenient working hours of Monday through Friday, from 9 to 5. While some repairs may be able to wait until the work week begins, many must be fixed right away. For example, if a tenant's oven element goes out, they likely won't feel this is an emergency and will wait until the office is open before they call. If the central air conditioning stops working on Friday night in the middle of a sweltering Florida heatwave, however, chances are your tenants aren't going to wait until Monday morning. With a property maintenance service, you won't need to be on call 24/7.
Prospective Tenant Screening
Obviously having suitable tenants plays a huge role in ensuring your investment property is well taken care of and your cash flow isn't interrupted. Screening tenants can be time-consuming, however. And making a mistake can be costly. A property management company can help you choose the best tenant by performing credit checks, contacting rental references, and verifying rental and employment history.
It isn't always easy to show vacant properties, especially since many people want to see a place on the weekend or evenings. Investment property owners often don't even live in the same area, making showings difficult. A property maintenance company can advertise an open house, schedule showings, and hand out applications and rental information to those who are interested in renting your property.
For more information contact companies like Choice Maintenance Group LLC.