Property Management, According to the latest from the U.S. Census Bureau, renters comprise about 35% of all households. That’s a pretty healthy portion of the nation’s population — and a pretty encouraging market-share statistic for investors considering Hagerstown properties capable of generating income to build long-term wealth.
More than just an investment, the own-to-rent model is actually a simplified small business. It has a financing part, an accounting part, and (the time-consuming element): a management part. Effective management means dealing with labor (maintenance personnel), customers (the renters), and a Board of Directors (the ownership: in this case, you!). Not a surprise that many income property owners decide to make themselves the Board, and hire out the rest of property management.
Some business truisms point to sound reasons for that decision:
A Hagerstown income property should let you be in control of your investment — not become a time slave to it. Some properties seem to want to be tough bosses themselves — with needs to be addressed on an unpredictable timetable. By employing a company specializing in Hagerstown property management, you divert the 2 a.m. phone calls and headaches to them. Sleep tight!
As with any business enterprise, identifying and limiting risk is smart planning. A management company will help you work through Fair Housing obligations as well as the legal requirements you need to address. Even small mistakes in this department can cost, so prudently and professionally limiting liability is just good business.
Naturally, the major offsetting factor is cost. At somewhere in the neighborhood of 6%-12 of rental income, it is definitely an issue. Yet some veteran investors find that professional property management actually saves money in the long term. A reputable Washington County property management company may be able to spot ways to reduce operating costs and maximize rental amounts, as well as shorten costly down-times between tenants.
If you are looking to purchase an income property in Washington County, it’s important to assess all aspects of the investment — and property management is one that’s well worth investigating. I’m happy to offer vetted local references for my clients anytime.