Renting makes up a bigger part of United States housing than most people realize. 36% of the country, or approximately 122 million households, rent rather than own.
Of those rented properties, seven out of ten belong to an individual rather than an investment company. And of those individuals, tons of landlords have chosen to get a property management company. It begs the question: is a property management company worth it?
In this article, we give you three reasons why investing in a rental property with a rental property manager is ideal.
1. Becoming an Accidental Landlord
An accidental landlord is someone who acquires a property unintentionally or unexpectedly. For example, a person whose parents passed away inherits their property. As the name implies, many of these accidental landlords are not ready or willing to own a property.
Rather than going through all the hassle of trying to rent or sell it, you can turn it into a profit. There's a lot of work to do as a first-time landlord. Instead of wasting your precious time, you can delegate those responsibilities to someone else and still make money.
2. Making Passive Income Actually Passive
Passive income has been a popular buzzword in recent years. In essence, it means making extra money on the side with little to no effort. People often refer to investment schemes, and renting out property is one of them.
That said, being a landlord doesn't always fit the bill in terms of easy money that requires minimal effort. Many first-time landlords are surprised at how difficult it can be just to get a tenant. There's maintenance to do, correspondence with the tenants, and tons of clerical work such as property taxes and licensing.
In short, it's a lot more than you may have signed up for at first. If you want this passive income to be, well, passive, then property management services can help.
3. Getting Industry-Leading Expertise
Renting a property isn't as simple as setting the rent and waiting for the paychecks to roll in. It's a complicated science, whether pricing a rental for the area, marketing the property, or even just setting up a tenant portal. There's a reason that real estate is a full-time career, one that requires years of experience to master.
If you go into real estate blindly, then you're going to stumble a lot. Stumbling can result in costly mistakes that could set your real estate career back.
Instead, rely on a team of experts (a property manager or rental property investor) who have been doing this for years. Even in a tough, changing market, your investment gets the best chance at a healthy ROI.
Find a Property Management Company
A property management company takes all the stress and guesswork out of being a landlord. It's an excellent option whether you are an accidental landlord or one who wants easy, passive income. In either case, you get the best experience in the industry at your beck and call.
PMI Central Valley can make your rental process as smooth as it can be. We have 20 years of experience to prove it. Get started by evaluating your rental for its earning potential.