QUESTIONS TO ASK WHEN HIRING A RESIDENTIAL PROPERTY MANAGEMENT COMPANY

A long-term rental property can be a very lucrative investment. It’s a good way to make passive income but being a landlord can sometimes seem like a full-time job. There are several factors to consider at all times to ensure you have your tenants’ best interests at heart. Responsibilities such as maintenance and repairs can be costly, so you also need to maximize return on investment and keep an eye on your finances. For this reason, many landlords work with local property management companies in Kona, Waikoloa, Waimea and Honokaa who provide assistance in a number of areas. If you’re managing your own rental property, here are a few quick tips. Understand Local Laws It’s essential to have a good understanding of Hawaii state laws to ensure you are protected at all times. Each state has different property laws. These may, therefore, vary relating to rental agreements, property maintenance, land ownership, building regulations, and so on. It’s a good idea to get clued up on these laws before embarking on a new business venture. Monitor Your Finances If you’re renting a property, there will be plenty of expenses that will need to be balanced against your rent profits. It’s important to learn how to effectively manage your cash flow for this reason. You could consider hiring an accountant to help you monitor your finances. If you decide to DIY your own finances, you need to make a realistic budget and stick to it. It’s advisable to create a specific account for emergency funds to spend on the property. Prepare for Re-leasing in Advance Often turnover is not as quick as you might hope so it’s a good idea to prepare for the end-of-lease and re-leasing in advance. This will ensure a more constant cash flow coming in from your rental property. If your tenants’ contract is ending, start the re-leasing well in advance to give yourself time to find someone else. You should also be prepared to evict tenants. In the case that you encounter problems with your tenants, you need an eviction plan in place in accordance with the local legislation and your insurance policy. Remember you must reside on the Big Island of Hawaii to manage your own property. You may use an on-island associate to manage on your behalf, but our best advice is to hire a professional rental company familiar with the island, local laws and codes. As you can see, managing a rental property is not without its challenges. This is why many landlords outsource these services to professional residential property management companies. You can rest assured your property will be in the hands of the experts.