Rental property is still the best investment to make this year. Yet, there can be a HUGE difference between your expectations and hopes of what a new income property can deliver, and the reality of it.

Location & Value

We’ve all heard that real estate is all about “location, location, location.”

Location can make a significant difference in how your investments play out. Certainly in terms of holding value and occupancy rates.

Yet, real estate investors frequently confuse this saying for alluding to buying the most beautiful properties in the most prime locations.

Price versus value, and the returns that you are buying is another important factor. The goal is to lock in value and future income when you acquire, not to gamble on what could be down the road.

Opportunity Vs. Execution

Opportunity and actual results can be two completely different things.

You can make a good decision based on all the information you have, and acquire a property with a great opportunity for performance. One that is unlikely to go down in value, and which has a strong price to income multiple. Yet, the results you really get all come down to the execution.

The #1 Difference Maker

Projections mean nothing. The real outcome all comes down to how that opportunity is executed on.

The number one difference making factor here is property management.

The best rental property deals can be completely trashed with poor management. Whereas even mediocre properties and opportunities can outperform with great management.

Here are four ways this will make or break your investments…

Property Management & Contractors

Some argue that having great contractors will also make or break your investments. No remodel is going to get done or will be profitable without great contractors and contractor management.

Having strong relationships with the best local contractors and coordinating service, all rests on your property management company. Making them the most important factor.

Get the property management company right, the other will be taken care of.

Rent Collection

You are investing in rental properties to get rental income, right?

How much your properties rent for, how many days of the year they are rented, and how predictably and consistently that money comes in relies on your property management company.

Some are not structured to make their money on rent collection. In fact, they make more money just collecting applications on empty units and evictions. Neither of which helps you.

Make sure your property manager is incentivized to collect rent for you every month.

Accounting

Contrary to some social media and guru slogans, it’s not just all about the cash flow.

Yes, you do need cash flowing in from rents. Yet, the bottom line profit, and ensuring funds make it into your own bank account are even more important.

Pick a property management company that is professional in their accounting, is transparent about expenses and fee structures, and provides you 24/7 access to see what’s happening with your property and funds.

Preserving The Value Of Your Asset

Getting your property leased and rent coming in is just a part of what ends up equating to your real returns.

The other major part (in addition to taxes) is preserving the value of that asset, and how much it can eventually be sold for.

Imagine two landlords acquire identical neighboring homes, yielding the same amount of monthly rent. Yet, one tenant trashes the place, or fails to report critical roof or basement leaks. The other has a tenant that takes care of the place like their own home, and promptly reports concerns to a manager that is efficient with handling maintenance and repairs.

One property may end up being a money pit that will take tens of thousands of dollars to fix up again. The other will have added to the value of their property.

So, who’s managing your rental homes?

Finding a good landlord and rental property doesn’t always seem easy.

You’d think that if you are a good tenant, who doesn’t complain unnecessarily, and who pays the rent on time for the most part, you’d be able to find a safe, healthy home to rent, and a landlord who’d be glad to have you, and would take it easy on the outrageous rent hikes.

Instead, you might often find landlords that don’t maintain your property. Even in freezing cold weather, and when you have kids you want to protect. Or they mishandle your funds. Or slap you with crazy rent hikes, despite being a loyal and high performing tenant, that really takes care of their property.

So, how can you find a better home to rent in Northeast Ohio this year? Along with a landlord that will treat you well?

Rent Through A Reputable Property Management Company

Smart and ethical landlords lease their properties through professional property management companies.

This indicates a property owner with more financial stability. One that can afford to make needed repairs and to keep up with maintenance. As well as one that will treat you legally and professionally. Versus all the notorious ‘slumlords’ out there.

Ideally this is a local company, which is accessible when you need them, and understands the community.

Where Is Your Security Deposit Being Held?

You want your security deposit, or any other advance payments or fees to be held by a third party. This should be in a FDIC insured account.

This means that even if an individual landlord or property owner goes broke, or their bank does, the government will still ensure you get your money back.

Property Inspections

While property inspections may sound like a nuisance or inconvenience to renters, they are extremely valuable and helpful.

A good property management company will inspect your property before moving in so that you can be sure that everything is safe, up to code, and working.

They should also inspect any repair work done, and get your feedback to make sure that any contractors or service companies did it right, and treated you well.

Then there should be annual and move out inspections to watch for any items that may become problems are caught early. Like AC and heating maintenance. As well as to insure your landlord fairly and promptly returns any security deposit or cleaning fees being held.

Easy Maintenance And Repair Requests

It should be super easy to immediately report a maintenance issue or repair request.

You shouldn’t have to wait over the weekend to notify them of something urgent. Like leaks or broken heating.

You ought to be able to make these requests right from your phone, 24/7.

Payment Options

Having multiple and flexible payment options helps ensure that you as a tenant can always make your payment, and on time. Even when glitches happen with your bank or income.

Hopefully this includes being able to pay online, or at a convenient location near you in person.

Ready to find a better rental home in Ohio, with a better landlord this year?

Check out the best available professionally managed homes for rent now!

Considering a new property manager for your investment properties in 2024?

What are the most important factors to look for when choosing a property management company in Northeast Ohio?

1. Alignment With Preserving Your Asset & Elevating Your Income

It sounds obvious, but as with every other industry today, finding a service provider that is actually invested in, and motivated to help you succeed, rather than just taking from you seems rarer than ever.

It is something easy to say. Which is why it is important to ensure you agreements, relationship structure, and their financial incentives push them to work in your best interests.

In this scenario, that means ensuring good tenants are put in that will not only pay rent, but take care of your property. Then backing that up with inspections, and solid maintenance.

Check out 5 Points Property Management’s 5 Guarantees, which ensure we are delivering on what’s most important to you.

Then request a Free Rent Analysis to make sure you aren’t missing out on the rents you should be achieving.

2. They Can Collect The Rent

Sadly, some property management companies make most of their money from application fees and evictions, not collecting the rent for their customers.

Look for a good track record, positive reviews and testimonials, and clauses in your property management agreement that align their income with them actually collecting and banking the rent for you.

3. They Are Local

Acquiring out of area investment properties can be very profitable. It’s often a must in order to achieve competitive returns, and to minimize risk. At the same time, technology has made it possible for property management companies to be operated remotely. Some have been doing it for nearly two decades.

However, a property management company that has a local presence, and local staff is a great advantage. They are wired into the local environment and community. They are there to collect rent, see properties in person, and can manage at a much higher level.

4. They Understand Local Rental Programs

Traditional cash paying tenants are still a part of the economy. Yet, many recent changes and current trends and policy are shifting millions of homeowners and renters to need not only affordable housing like Cleveland offers, but subsidized housing as well.

The more variety of options your property management company has expertise with, the more likely they are to be able to obtain the maximum monthly rents and occupancy rates for you. As well as predictability and reliability of your income. This should go beyond programs like Section 8 and HUD vouchers to local programs like Eden.

5. Experience

Anyone can throw up a glossy website and photoshopped or AI created social media page in a few minutes today. Thousands of people would love to cash in on the need for property management services. Many have tried.

Again, even the best intentions only go so far. This is an extremely complex field, with countless quirks and legal minefields. It takes years of hands on doing to encounter these things, and learn how to preempt and ace them.

5 Points Property Management was created to fill this void in the Northeast Ohio area. By investors with 23 plus years of experience, to help other investors get the results they are investing for.

Not sure if your properties are delivering their best performance? Get your FREE RENTAL ANALYSIS HERE and find out today.