As a smart real estate investor your goal should be to get rich and acquire wealth over time. This can be achieved when real estate fundamentals are well respected in their true sense. Buying the right type of properties at the right prices, in the right neighbourhoods and rented to the right tenants are important aspects of real estate.
Cash flow is the key to real estate investing. An investor can expect different returns even from the same property based on property management services that he or she opts to choose.
Most landlords or real estate investors manage their own properties. When leasing a typical property, a real estate agent's job ends after finding the right tenant. Once the tenants move in, the landlord and tenant take care of day to day issues between themselves.
This helps landlords save costs on hiring a professional management company, and helps increase their cash flow.
Many landlords choose full service professional management companies who charge anywhere from 8% to 10% of the gross rent in today's market. Non-resident landlords pay another $300-$500 in annual fee to file non-resident taxes, with Revenue Canada. Property management companies also charge a fee to inspect properties every time a tenant moves in or out. Property management companies also undertake or coordinate repairs, regular maintenance service etc. Sometimes, property management companies charge from 8% to 10% of gross repair cost, as a surcharge or fee to oversee property improvement works. There are fees involved for visiting vacant properties. Then there are paralegal fees and other costs in some cases which require representation at the Rental Tribunal for non-payment of rent etc. These costs could be anywhere between $650 to a $1,000, or more.
With Amit's real estate experience in buying, selling and renting investment properties, Amit feels that a full-time property management company can erode an investor's cash flow. Landlords who undertake their own property management might agree that managing properties can sometimes become a daunting experience. There are so many things to consider and take care of. For a smart investor, hiring a full-time property management company may not always make sense.
In order to add value to your real estate investing, Amit offers a la carte program designed and introduced to give you peace of mind, sense of investing, boost your confidence, help you acquire more real estate and get wealthy.
A la Carte Program that will save you more when comparing a regular property management service.
Amit's a la carte services are a way to help you with not just investing, but hassle-free investing!
Any questions? Please feel free to contact Amit with any questions or clarifications you may have.