Turnkey Management Company
If you’re considering investing in turnkey real estate, you should know investing in turnkey real estate; you should be aware of the management team that will look after your property. So, in this article, we’re sharing three things to consider of turnkey management company in Philadelphia or Pennsylvania.
Philadelphia and the surrounding counties have an excellent market for investment properties. Philadelphia, in this particular area, has low taxes and high rental rates. The average rental rate in Philadelphia is around $1,800 a month. In some areas of Philadelphia, owners pay around $1,000 a year in taxes on these homes. You can imagine that makes for a very great rental market.
The surrounding counties of Philadelphia are rated some of the best areas to retire in the United States. As well as having suburban areas with some of the top-rated public schools in the country. You can see significant profits if you own a rental in these areas. Owning a turnkey rental property should be a hands-off experience. It would help if you enjoyed the cash flow without the hassle of managing the property. You must understand the management company looking after your property to do that. Here are three things to consider of the turnkey management company in Philadelphia or Pennsylvania
#1. What are they responsible for (and not responsible for?)
Make sure you know what your real estate management company will do for you and not do for you. Most management companies will collect the rent and do essential management. Some might pay some or all of the bills for you, and others will not. Consider what will happen when a tenant moves out or how you will know if a repair needs to be made. There is no right or wrong answer about who does what, but the important thing is that you understand who will do what ahead of time. That way, you can avoid any surprises when you own the property. Also, be aware of what they plan to replace; there are times when a property management company claims to do work to the home only to bill you for an unreasonable amount.
#2. What is the management company’s track record?
The management company should be easy to work with and reliable. After all, their reliability is what you are hiring them for, so you don’t have to manage the rental! However, not all management companies are the same, and some can be difficult to reach, slow to pay, not very proactive, or may even vanish! Of course, not all of them are like that – there are many good ones, and we work with some of the best! But it’s important to know what the management company is like ahead of time, so make sure you Google them to see what others are saying about them.
#3. What are their fees?
A management company will charge a fee. This is perfectly fair since they are providing a service. Fees, on average, are around 10% to 15% of the rental income, depending on what kind of services the company offers, so make sure you ask what the fee is and what you get for it. Some brand new investors are sometimes surprised by the fee and even feel that it’s too high, but it isn’t: after all, they’re saving you many hours each month.
Generate wealth from real estate
To buy a home for investment purposes, consider all the associated costs. If you are not careful, the house you look to buy to make money could cost you money in the long run. Real estate is just one big numbers game you need to ensure you can stay ahead. When people decide to get involved in investing, they think that it will be easy, and they sit back and collect money. However, staying on top of your homes/projects will need to be done.
The most important thing to remember about the management company is that they are part of your team, so make sure that you can work efficiently with them since you will be working with them for many years.