Which is better for you?
Do you have real estate property you want to use to generate income? How do you accomplish that? Do you flip it? Rent it out? Turn it into a VRBO? Hire a property management company to handle it? Turn it into Corporate Housing and start generating reliable income?
The only way to make money on your rental property is to keep it rented. Yet many people significantly reduce their income potential by hiring property managers to avoid managing it themselves.
“Many people significantly reduce their income potential by hiring property managers to avoid managing it themselves.”
Is a property management company really worth the added expense? Or does it make more sense to manage your property yourself? Where would you go to find the information you need to become a successful property manager?
Two Main Reasons People Use Property Managers
1. Experienced Real Estate Agents
Property Managers use licensed Real Estate Agents who know how to screen clients, which means you’re less likely to have frequent turnovers. They also tend to successfully collect rent
2. Saves You Time
If tenants have any issues or emergencies involving your property, property managers are always on call to address these.
Average homeowners spend 30 hours readying a property after a client moves out. This includes maintenance, marketing, and leasing. Property managers take half that time to do it, and you are not involved.
Your Cash Flow Using Property Managers
Look at the example above. You own a 2-bedroom, 2-bath townhome with a one-car garage. Your monthly mortgage payment is $1,100.00. Your listing rate is $2,650 a month, and you pay a property management company 30% — or $795.00 a month. How much does that add up to annually? Multiply 12 x $795.00, and you’re paying a property management company $9,060.00 a year.
How much do you keep? To figure that out, you need to subtract your mortgage payment and management fee. Using the scenario above, that would be $2,650.00 less $1,100.00 and less $795.00, which equals $755.00 monthly cash flow for you—or $9,060.00 (excludes any additional expenses such as utilities and monthly services or repairs).
That’s not too bad. But the property management company is making more money than you are! Can you change that by doing it yourself?
Why Homeowners Should Do It Themselves by Doing Corporate Housing.
Managing your own properties is a great way to learn a new trade, create extra income, and work part-time. A property owner can keep all the profit instead of doling it out to someone else every month. It’s a great pay-off. It’s also a learning process.
Your Cash Flow doing Corporate Housing Yourself
Let’s consider the same scenario. This time, instead of paying a property management company, you keep all the profits. What does that look like? Your monthly mortgage payment is $1,100.00. You list your property for $2,650.00 a month, and you have it occupied for 12 months. That would be $2,650.00 less $1,100.00 , which equals $1,550.00 monthly cash flow for you—or $18,600.00 annually for you (excludes any additional expenses such as utilities and monthly services or repairs).
What could you do with that much extra money a year? Pay off debt? Add to your kid’s college fund? Live abroad for a year? Invest in more Corporate Housing properties? The possibilities are endless. And it makes financial sense. So how do you go about it?
By contacing Dublin Place Corporate Housing Today! At 719-231-7559 or http://www.dublinplace.us/contact.html
My successful experience with Corporate Housing has opened up the opportunity for me to teach others how to create maximum cash flow by doing it themselves.
See what Dublin Place listing client´s have to say?
“Listing my home with Dublin Place has been successful. It has allowed me to find successful tenants interested in 2-to-10-month leases.” Bri’s Place
¨I have had my property rented every month since we began. I love the renters that they have found.” Austin´s Place
”We’ve been interested in corporate rentals as an option that requires less active management than Airbnb, but is a better source of income than a long-term rental. And so far, it has delivered!” Daniel´s Place
Why the Two Top Reasons for Using a Property Manager
Don’t Make Financial Sense
1. You don’t have to be a real estate agent to rent your home.
Want to know the best ways to screen clients?
- Perform a credit check.
- Charge a large upfront deposit to cover any loss of rent or damages.
Afraid of turnover rates?
- The minimum stay for Corporate Housing is 1 month. Average stays are 3 to 6 months. Does that seem like a lot of work?
- Compare it to vacation rentals, where the average stay is five days, and it’s an ongoing job to keep it rented as well as clean for the next tenants.
Worried about collecting the rent on time?
- Bill your clients ahead of time for their stay.
2. Corporate Housing saves you time.
What about all that cleaning?
- Save time by charging a cleaning fee upfront and pay someone else to clean your rental. (Cleaning cost varies by property size, age, wear and tear.) Or do it yourself and keep the cleaning fee.
Where do you market your property?
- Online corporate housing platform
- Craigs List
- Dublin Place Corporate Housing offers a successful, no-nonsense approach to listing your property. You can do so here.
Afraid of leasing agreements?
- It’s actually simple. Get to know the leasing terms and Fair Housing laws for your area.
- Use Legal Zoom to customize your Rental Forms.
Still nervous?
You have three options:
- Sign up for a Fair Housing class.
- Use a lawyer’s free consultation to answer any questions you have.
- Use Dublin Place’s Corporate Housing Guide, which makes managing your Corporate Housing effortless.
Free when you sign up to list your property with Dublin Place Corporate Housing.
See contact information below.
Interested, but not sure if it’s for me?
Schedule a consultation with a Dublin Place Consultant Specialist. We will answer all your questions, perform a market analysis for maximum investment return on your property and give you property recommendations for maximum listing success. (Colorado Springs, Monument and surrounding areas only.)
Contact Diana at http://www.dublinplace.us/contact.html