Real Estate Property Management: Is There a Tenant in the House

 You?re about to take the plunge and buy your first investment property. Should you buy something that you can live in, something you can develop and sell on, or should you buy a designated rental property? If you are going to choose the last option then you need to do your homework first. There are different types of tenancies and every one of them should be handled differently. If you do decide to opt for rental property investment then check out the property investment forum at http://www.singingpig.co.uk/articles.aspx#propertyInvestment
to find out more. It may be more complicated than you think. So before you make your final bid, or put your money on the table, you should ask where there is a tenant in the house.

Some properties that are sold at auction already have sitting tenants. Real estate property management is not for the beginner. To begin with you would need a substantial sum of money behind you if you have set your mind on rental property investment. Then, if you still think you are up for real estate property management you need to do your homework. The property investment forum will give you some insight on what you need to know. For a start rental property investment is not the same as other investments, real estate property management can be a big headache for the uninitiated. The market changes from day to day so what works for one person at a certain point may not work for you at another. You should make sure that your finances are such that they can support you through a period when property market prices go down rather than up.

So you take the plunge and you?re now in the business of real estate property management. You need to make sure that you?ve done your cash flow forecasts because you have to have sufficient funds for property maintenance. Landlords who don?t carry out proper maintenance not only upset their tenants, they could fall foul of the law and find themselves in a worse financial position. Rental property investment may be a good proposition if the place is empty when you buy it because sitting tenants may have a regulated tenancy which means that you could find yourself getting less than the market rental rate. This where the property investment forum can be really helpful because it gives a breakdown of the different types of tenancies.

Sometimes people are anxious to make money in property development but are not fully prepared for all the hard work that needs doing or the problems they may encounter. You shouldn?t be too quick to give up the day job. As this article has already pointed out the property investment market is not static and unless you have some money to fall back on you could find yourself in a lot of trouble. When it comes to rental property, as contributors to the property investment forum point out, if the property has sitting tenants then you will not make the money you might have anticipated. You may see tenants as your bread and butter but sometimes they are more of an expense than an investment.
Julie-Ann Amos is an international professional freelance writer/author and consultant, writing for www.singingpig.co.uk. She recommends their property investment forum at http://www.singingpig.co.uk/articles.aspx#propertyInvestment. For more information on her writing services visit www.exquisitewriting.com.

Property Management Company - Hiring One

Hiring a property management company is a great idea if you have even a small apartment building. Having someone taking care of all the small details of a rental property means you'll have more time to find the next good investment. Also, trying to do it all yourself is the surest way to make your real estate investment experience a bitter one. To find a good property manager, ask the following questions.

1. Other properties they manage? It's best if they have rental properties that are similar to yours. You can also drive by their other properties to see how they are maintained.

2. The fee? They vary around the country from as low as 4% of gross rents for larger buildings, to as high as 12% for single family homes. Be sure the fee is clearly stated and understood.

3. Extra costs? Are showings extra? Do evictions cost extra (beyond the legal fees)? Any other extras?

4. Who actually handles your property? It's best if one person handles your building all the time, and has some experience. Get their name.

5. How and when is the fee collected? Will you be billed, or will it be deducted from your account directly? Monthly? Quarterly?

6. Type of advertising? Exactly how will they advertise the units and what will it typically cost you?

7. Time and cost to prepare units? What's the typical cleaning fee on a vacancy, and how long will it normally be before it's rented out again?

8. Type of accounting? Which types of reports do they send, and how often? How are accounts set up?

9. Their hours of operation? What are their business hours, and who takes weekend calls?

10. What needs owner approval? What dollar amount needs your authorization, and is this negotiable?

You should ask other questions, based on your particular needs and the particular property. Be sure to ask everything up front, and you'll have fewer misunderstandings, and a good manager. Real estate investing and being a landlord is a lot less stressful with a good property management company.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com.